III. BUDGET STRATEGY 2001

12. The Government will be more focused in its strategies and measures to propel the nation towards achieving developed nation status. Our goal is clear and we shall not be distracted from 

this pursuit. As such, I have outlined five main strategies in this Budget, as follows:

First : stimulating the nation’s economic growth;

Second : identifying new sectors of growth;

Third : continuing fiscal and monetary policies to support growth;

Fourth : strengthening further the nation’s competitiveness; and

Fifth : enhancing the quality of life of rakyat. 

13. From these five strategies, I propose that we direct our focus to three main thrusts, that is:

First : stimulating the nation’s economic growth;

Second : implementing strategic initiatives to enhance the nation’s competitiveness; and

Third : continuing the agenda of a caring society

FIRST: STIMULATING ECONOMIC GROWTH

14. In our efforts to stimulate the nation’s economic growth, the Government will intensify the development of several new growth sectors which characterise the economy of the twenty-first

century. This includes K-Economy, ICT and venture capital. In addition, the Government will continue to develop the Eastern Corridor in the Peninsular, Sabah and Sarawak to ensure balanced

growth. These efforts will be supported with the provision of tax and non-tax incentives.

K-economy

15. We must accept the realities of the K-economy. We have no other alternative. We shall all become citizens of the K-economy. The Government wants every rakyat to be part of it and is convinced that Malaysians will reap enormous benefits from this transformation. The new economy will lead to increased productivity, higher incomes as well as a better quality of life. Survival in a borderless global economy based on knowledge requires everyone to be equipped with new skills and assimilate the

culture of high technology and dynamic entrepreneurship.

16. This is not wishful thinking. In fact, the Government has painstakingly endeavoured to build a strong foundation, in particular through education and human resource development. I am confident that there is someone in every village who has acquired skills and knowledge in the field of technology from an institution of higher learning. I believe this was not possible five or ten years ago.

17. Skills and entrepreneurship will together drive the new economy. In future, GDP growth will be spearheaded by knowledge-based industries in all sectors, particularly the manufacturing and services sectors. We are, therefore, intensifying investment in ICT, education and the retraining of workers. We

need knowledge workers to constantly upgrade their skills and efficiency, given that the K-economy is part of our daily lives. Human resource development will remain a national priority. This means a culture of life-long learning that does not cease on graduation or job promotion. This is the main ingredient of

prosperity. In fact, the nation has many intelligent and bright people who have reaped benefits from these changes. Some of them have not only worked for large domestic companies, but also

multinationals at home and abroad.

18. To ensure success from the new economy, we need a pool of the best talents from at home and abroad. Efforts need to be undertaken to hire the best brains regardless of race and nationality, from Bangalore to California. This is a step towards creating a world-class workforce. At the same time, skilled Malaysians who are working overseas must be encouraged to come home. As such, I propose Malaysian citizens abroad who have the required expertise be given the following incentives:

i. income remitted to Malaysia within the period of two years be exempted from income tax;

ii. all personal effects brought into Malaysia, including two motorcars, be given tax exemptions; and

iii. husband or wife and children who are not Malaysian citizens be given permanent resident status within six months.

19. The nation’s aspiration of creating a knowledge society must begin with the school children. The computer literacy programme for students and the Smart Schools programme have been implemented. The first phase of this pioneer project involving 90 schools is expected to be completed by next year. The success of this pioneer project will provide the basis for the extension of this programme nationwide. The Government is also implementing the computer laboratory programme, whereby each school will be provided with between 12 to 43 computers and equipped with multimedia and internet facilities. Priority will be given to rural schools. As a start, work to construct 2,200 computer laboratories has begun throughout the nation. By the end of year 2001, all schools with electricity supply and telephones are expected to be equipped with computers and software through this programme.

This measure is undertaken to produce more computer literate students who have initiative and are intelligent, creative and independent. It is my hope that students will also take the opportunity to learn the English language as it is the main language of the ICT world. We cannot deny the fact that there are benefits to be derived from learning more than one language apart from the National Language.

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