Budget sparks poll buzz

Malaysian Prime Minister Najib Razak (centre) holding up the bag containing the 2011 budget document as he leaves the Treasury Office for Parliament in Putrajaya yesterday. -- PHOTO: REUTERS

KUALA LUMPUR - MALAYSIAN Prime Minister Najib Razak yesterday presented a 2011 budget that sought to spur rapid growth through massive infrastructure spending while offering some sweeteners, heightening speculation about possible early polls.

They included several massive projects like a mass rapid transit (MRT) in Kuala Lumpur and a new 100-storey tower that would surpass the Petronas Twin Towers in height.

The Malaysian government plans to spend RM212 billion (S$89.1 billion) next year, 2.8 per cent more than this year. Of this, RM162.4 billion will be on operational spending, and RM49.2 billion on development.

Datuk Seri Najib pledged to continue reducing the deficit to 5.4 per cent from the current 5.6 per cent of gross domestic product. This year's growth is expected to be 6 per cent, with a target of 5 to 6 per cent next year.

He outlined four strategies to kick-start Malaysia's efforts to double per capita income in 10 years as part of larger efforts to become a high-income nation.

These included encouraging private investments, building workers' skills, raising the standard of living, and upgrading public service performance.