• Government spending RM208 billion in 2009.
• Deficit up, estimated to be 3.6% of GDP in 2009 and 4.8% of GDP in 2008.
• Slower economic growth at 5.4% for 2009 and 5.7% for 2008.
• Reduction in income tax.
• Free electricity for customers using less than RM20 per month.
• Cigarette taxes increased.
• 50% reduction in toll charges for buses.
• Interest income exempted for fixed deposits exceeding RM100,000.
• Reduction of 50% of stamp duty for home owners.

Anwar Ibrahim was sworn in as MP for Permatang Pauh at 10.05am today in front of Dewan Rakyat Speaker, Pandikar Amin Mulia. He is accompanied by his wife Wan Azizah Wan Ismail who is also former MP for Permatang Pauh and their daughter Nurul Izzah, who is the MP for Lembah Pantai.

Greeting him at the Dewan Rakyat are other Pakatan Rakyat members, including Penang Chief Minister Lim Guan Eng (Bagan), Selangor Mentri Besar Abdul Khalid Ibrahim (Bandar Tun Razak), Lim Kit Siang (Ipoh Timur) and Abdul Hadi Awang (Marang).

A. Introduction

The DAP 2009 Malaysian budget brief focuses on the twin challenges of global economic slowdown and our high dependence on oil and gas resources.

(i) Expected Global Economic Slowdown

The International Monetary Fund has announced that there was a 25 per cent chance that global growth would also slump to below three per cent in 2008, which is equivalent of a world recession. The IMF said global expansion over the last several years had rapidly dwindled due to financial turmoil created by the ongoing sub-prime mortgage crisis in the US.

In this crisis which started in 2007, lenders offered loans to higher-risk borrowers who were unable to pay their mortgages when interest rates went up. It has been estimated that this crisis in the US could spawn total losses of $945 billion.

As a result, housing prices in the US are sliding downward very rapidly resulting in a major stress on the US financial system.

Warren Buffett, often regarded as the world’s wealthiest man, said the US economy is still in a recession and unlikely to improve before 2009. Optimism among US Chief Financial Officers have plummeted with three-quarters of them predicting a recession at some point during 2008 and nearly 90 percent say the economy will not rebound until 2009.

Therefore, Malaysia’s economy cannot be expected to escape unscathed from the global turbulence. The challenge for Malaysia’s 2009 budget is hence how to soften the impact of the global economic slowdown and at the same time cushion its impact on the lower and middle income segments of the rakyat.

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Newly elected MP for Permatang Pauh, Anwar Ibrahim, will be sworn in as an MP on Thursday, the Speaker of Dewan Rakyat, Pandikar Amin Mulia said.

With the swearing in completed tomorrow, Anwar will be able to participate in Parliament sessions, including attending the tabling of the 2009 Budget on Friday.

Parti Keadilan Rakyat (PKR) advisor, Anwar Ibrahim has won the Permatang Pauh parliamentary by-election with a thumping majority of 15,671 votes.

Anwar polled 31,195 votes against Barisan Nasional (BN) candidate, Arif Shah’s 15,524 while Akim candidate, Hanafi Mamat polled only 92 votes.

Voter turnout stands at 81.1%, which is 47,410 out of 58,459 eligible voters, which is much higher than the earlier announced 63.7%. A total of 599 votes were spoilt.