The 2004 Budget Speech
Dewan Rakyat, 12 September 2003 
 
"BUILDING ON SUCCESS, INVESTING FOR THE FUTURE"
 
Mr. Speaker Sir,
 
1. I beg to move the Bill entitled "An Act to apply a sum from the Consolidated Fund for the service of the year 2004 and to appropriate that sum for the service of that year'' be read a second time.
 
INTRODUCTION
 
In the name of Allah, the most gracious and most merciful.
 
2. Praise be to Allah, for enabling the Government to once again table the 2004 National Budget in this Honorable House. The Mid-Term Review of the Eighth Malaysia Plan (8thMP), which is currently being undertaken will be tabled in this House on 30 October 2003.
 
3. In formulating the 2004 Budget, we have therefore, taken into account the performance of the first half of the 8thMP period with the view to ensuring the full implementation of development policies and strategies.
 
HALF A CENTURY OF RAPID PROGRESS
 
Mr. Speaker Sir,
 
4. The nation has just celebrated its 46th year of independence. We are grateful to the Almighty as Malaysians from all walks of life were able to celebrate the occasion in an environment of peace, prosperity and jubilance. We value our independence. We are free from colonisation. We are also free from domination by super powers. We are also able to regain our honour and dignity. We are able to manage our country. Our country has achieved significant progress as well as gained recognition and respect of the world.
 
5. When we gained independence, our economy was completely dependent on rubber and tin. However, our efforts to transform the economy since the 70s have turned Malaysia into a modern economy, with the industrial and services sectors contributing almost 90% to the Gross Domestic Product (GDP). The nation has embarked on the development of heavy industries and is now producing our very own national cars, which have penetrated nearly 80% of the domestic market. Today, we are the 17th largest trading nation in the world and a major exporter of electronic products. Exports of manufactured goods exceed 85% of the nation's exports.
 
6. To meet our industrialisation needs, we have also put in place a network of modern and efficient infrastructure. The nation is now connected by the North-South and East-West Highways. We have also built modern urban transportation in Kuala Lumpur and its surroundings with the construction of the Light Rail Transit (LRT), monorail and electric rail commuter. We have also constructed ports and world-class international airports. Malaysian ports presently have the capacity to handle 11 million TEU containers and about 450 million tonnes of cargo. Port Klang presently ranks 11th while the Port of Tanjung Pelepas 22nd in the World Container Port League. The Kuala Lumpur International Airport (KLIA), which has the capacity to handle 25 million passengers and 5 million tonnes of cargo, is the most modern airport in the region.
 
7. We have also made headways in the area of ICT. The Multimedia Super Corridor (MSC) has been developed with state-of-the-art multimedia infrastructure. Indeed, MSC marks yet another significant step towards propelling the nation into an ICT-based economy. To date, MSC has attracted more than 900 local and international ICT companies, far exceeding the target of 500 for 2003. Clearly, earlier skeptics have now been proven wrong.
 
8. In the past, the construction of such large infrastructure was carried out by foreigners. Now Malaysians have the expertise and technological capability to undertake these projects ourselves. The nation has nearly 44,000 engineers in civil, mechanical and electrical engineering as well as 3,000 architects and 2,000 quantity surveyors. With our experience in the construction of the Second Link, the Kuala Lumpur Telecommunications Tower and Petronas Twin Towers, Malaysians have successfully built the Putrajaya Administrative Centre, a well-planned and beautiful city, a model for other countries.
 
9. We have been successful in the construction of the Sepang F1 track, which is acclaimed as one of the best in the Grand Prix circuits. Our young engineers participated in the venture to further enhance high- performance cars used by Sauber Petronas to compete in the FI race. Such experience has contributed towards further developing the engineering capability of Petronas to produce petroleum products for the automobile industry.
 
10. Many Malaysian companies have ventured abroad. The largest is Petronas, which is now one of the major international petroleum companies, operating in 34 countries across the world. Petronas is involved in exploration, production, refinery and marketing of oil and gas and is listed in the Fortune Global 500.
 
11. We have also become a centre of excellence in education. Today, we have 18 public institutions of higher learning, including an International Islamic University, as well as hundreds of private colleges to meet the educational needs of Malaysians. A total of 70 colleges has also been established to produce technical manpower. We have also been recognised as a centre of excellence in education by foreign students. Currently, there are more than 36,000 foreign students from 150 countries studying in our local institutions.
 
Mr. Speaker Sir,
 
12. These achievements require a shift in the mindset of Malaysians towards the adoption of positive values and attitudes, especially perseverance and determination, ability to compete, to be confident and innovative as well as resilient. We began 21 years ago with the adoption of the Look East Policy to emulate the work ethics and culture of the Japanese and Koreans that emphasises dedication, discipline and loyalty as well as diligence towards attaining national development. We also instilled the principle of clean, efficient and trustworthiness as well as leadership by example. The public service has been built on the principle of efficiency, discipline and quality.
 
13. The Government also adopted the Malaysia Incorporated Policy, recognizing the paramount importance of closer cooperation between the public and the private sectors as well as the employees to work together to achieve economic growth. The Privatisation Policy was implemented to meet the increasing demand for public infrastructure facilities apart from reducing the financial burden of the Government.
 
14. We are a country with a vision. We are almost mid-way towards our Vision 2020 to become a fully developed nation in our own mould. We have succeeded in diversifying our economy. We have also achieved a paradigm shift in the mindset of Malaysians so that we can become a more responsible, modern and progressive society, with astute thinking skills and proud of our achievements and have confidence in our abilities, in line with the information age.
 
Mr. Speaker Sir,
 
15. In the span of almost half a century, our ability to manage the economy has often been put to test. Malaysia experienced its first recession since independence in 1985, following sharp declines in commodity prices. We experienced deficits in the balance of payments and the Government financial account. We have not forgotten the Black Monday incident on 19 October 1987 when major stock markets in the world crashed and adversely affected our stock market.
 
16. These experiences have made us wiser and more confident in planning and managing our economy. The high level of economic growth averaging more than 9% achieved during the period 1988-1996 bears testimony to our success.
 
17. The regional financial crisis was yet another test of our resilience and capability. We have thwarted the attempts of international currency speculators to impoverish the nation by devaluing the ringgit. The Government implemented unorthodox measures and did not yield to pressures to seek IMF financial assistance and subjecting the nation to IMF policy prescriptions. Our measures were severely criticised then and were said to be doomed to failure. The ringgit peg and capital controls were strongly o