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With a fresh electoral mandate until November 2004 and no UMNO elections until 2003,
Barisan Nasional has to deliver a robust economy after the Asian economic crisis and its
lingering effects that continue to this day.
With two consecutive years of
growth peaking at the current year's 7.5 percent, this target seems to have been partially
achieved. Nevertheless, the indications are that 2001 will see a slowdown in gross domestic
product (GDP) growth figures. Domestic consumption, which soared in 1999 (from a low base), is
showing early signs of consolidation. The sales of big-ticket items like houses and cars are
leading indicators of a more tepid consumer sentiment this year.
In the wake of further market
turbulence as well as the impending slowdown of our main export markets to Europe and the
United States, it seems likely as well that our manufacturing sector will be negatively
impacted. On the brighter side, higher oil prices have provided the government coffers with a
much-needed shot in the arm.
Here's what the government has
been hinting:
Prime Minister Datuk Seri Dr
Mahathir Mohamad said: "... there will be a slight surplus in the 2001 Budget, It's a good
Budget ... we always think about the people."
Ministry of Finance advisor Datuk
Mustapa Mohamed said: "... we can expect the Budget 2001 to be supportive of growth ... inflation
on average is barely 1.5 percent month-on-month, the country continues to enjoy full employment
while bank lending has picked up consistently for six consecutive months."
What will Budget 2001 hold? At this stage, the answer is still anybody's guess. Typically,
speculation on the expected changes in the forthcoming Budget on October 27 is running rife.
To put things in perspective, zoomFinance has assembled a team of expert panelists to
navigate these murky waters and to provide insights into what we can expect.
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