Parti Gerakan welcomes the 2008 Budget, and credit should be given for the considerable emphasis on human capital development. After all, this is one of the thrusts of the Prime Minister’s vision for the nation.

The boost to human capital development comes in many forms this time.
1) At the school level, text-book loan scheme is extended to all, irrespective of income. Annual school fees have been abolished. These will certainly facilitate the schooling process, and allow students to enjoy easier education.

2) The increase in COLA for PSD scholarship holders is welcomed, as this will enable our aspiring graduates, both at home and abroad to have a better standard of living. The intention is to make it easier for them to study and finish their respective courses quickly and return to serve the country. In this respect, the Government is urged to distribute scholarships to deserving students of all ethnic groups. Students with wealthy parents do not need this facility.

3) The increase in monthly allowances for special education teachers, graduate substitute teachers and those teaching Mandarin and Tamil is welcomed as a further incentive to encourage human capital development in the field of education.

4) A major gift in this budget in the interest of human capital is tax relief for all post-graduate studies. This includes Master’s and Ph.D. programmes, and the RM100 million to train workers under the Master Skills Training Programme. Skilled workers are very much in need.

5) To assist human capital development, the waiver on import duty and sales tax on broadband equipment, and tax reduction on computer and broadband subscription for companies is a step in the right direction. This will not only promote procurement of IT equipment, but facilitate increased usage, both for the purpose of training.

6) Biotechnology has been recognized as a major sphere, and for its development, including manpower, RM236 million has been allocated for infrastructure and technology. Bionexus status companies will be permitted access to University research facilities. This will allow for the emergence of a new community of workers dedicated to biotech.

7) Single mothers have been identified as useful pool of human capital. RM782 million has been set-aside for them for skills development. NGOs will be given RM10 million to train housewives to cultivate baby and childcare as a business.

8) It is hoped that the lowering of corporate tax will stimulate companies, not only to expand and provide employment, but initiate more training programmes to improve their staff.

It is obvious that the Government is serious in improving the development of human capital. This is not surprising, as it has become a major component in an increasingly globalized and borderless world. It is also imperative so that Malaysia continues to be competitive. The incentives given to enhancement of IT skills, the teaching profession and biotechnology are well appreciated, and will go a long way towards achieving a fully-developed nation status by 2020.

Dato Dr. S. Vijayaratnam,
Vice President,
Parti Gerakan Rakyat Malaysia.