The government invests in a more inclusive future through large-scale infrastructure projects, Finance Minister II Johari Abdul Ghani said today.
Speaking at the launch of the Finance Ministry’s annual open day, he said that Putrajaya was being strategic and prudent in investing in projects like the East Coast Railway Link (ECRL) and the Pan-Borneo Highway “ahead of time”.
“I know many people are very sceptical but let me share with you the theory of investing ahead of time.
“When we invest in these large infrastructure projects, we must invest at the right time... the right time is when people trust you, when people trust your economic system and when you still have a good rating among international rating agencies.
“We can wait, we can keep our money first… (but) by the time you are ready with the money, the cost may not be the same as if you do it today.
“The cost may be triple or quadruple (then),” he said at his ministry’s Putrajaya headquarters this morning.
Having such physical infrastructure in place would engender more “inclusive” economic development, Johari added.
“You cannot bring inclusivity if you don’t have efficient connectivity... everything has to be connected easily, from Perlis to Johor and to Sabah and Sarawak.
“When you invest ahead of time and build the economy with infrastructure (in place), everyone benefits,” he said.
Yesterday, former-prime minister-turned-opposition-leader Dr Mahathir Mohamad lambasted Prime Minister Najib Abdul Razak for incurring more debt by borrowing more money than needed for infrastructure projects like the RM55 billion East Coast Rail Link (above).
"The ECRL does not have the potential but its construction has been planned so that more money can be borrowed.
"RM50 billion is owed to China for the ECRL when only RM35 billion is needed," he had said.
Mahathir has been highly critical of the influx of foreign direct investment (FDI) from China for infrastructure projects, accusing Najib of pawning land to foreigners.
He has vowed to review and even cancel some of these projects should Harapan form the government in the 14th general election.
On his part, Mahathir is known for his many mega-projects during his 22-year tenure but he argues that he never needed to implement wide-ranging taxes such as the goods and services tax (GST) to finance them. -Mkini
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