Finance Minister Tengku Zafrul Tengku Abdul Aziz’s statement that Perikatan Nasional (PN) will create 500,000 new jobs without the backing of concrete policies seems like a total political gimmick. Zafrul’s lack of basic knowledge on “ekonomi-rakyat” and job creation is really hurting the people.
Jobs are created when production of goods and services is increased to match consumption. Hence, Perikatan Nasional (PN) must focus on raising people’s consumption.
Private sectors are not deprived of capital because most business had accumulated profits for decades before the recession so government does not need to provide free money to businesses.
PN had pumped hundreds of billions in incentives, tax rebates, wage subsidies and credit lines for the private sector. However, the formal and informal sectors continue to lose their jobs or income due to overall declining private consumption.
Parti Sosialis Malaysia (PSM) had fought hard for 3 years to force Barisan Nasional (BN) government to introduce “Skim Insurans Pekerja (SIP)” in 2018 which is helping retrenched formal workers today.
However, the Department o Statistics estimated half of the 1.36 million informal workers in Malaysia such as dishwashers, individual tour guides, independent bas persiaran drivers, child-care workers and rickshaw cyclists are in economic misery.
The loss of household income for 15% of the Malaysian population has depressed consumer spending. While the top 20% continues to buy new the cars the bottom 20% (B20) cannot afford a bag of rice.
PN must introduce a Modified Universal Basic Income (MUBI) which provides cash monthly to no-income households and single mothers to purchase basic necessities to revitalise people’s consumption.
Subsequently, the private sector will start ramp up production and increase employment to meet rising consumption. The PN government is urged to implement MUBI immediately to stop consumption decline of basic necessity amongst the B20 to allow job creation.
Parti Sosialis Malaysia (PSM)
Parti Sosialis Malaysia Negeri Melaka (PSM Melaka)