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KUALA LUMPUR: Malaysia's government on Friday offered tax cuts and perks in a 2009 budget designed to restore support for the beleaguered administration and spur growth in the face of a global slowdown.
Prime Minister Abdullah Ahmad Badawi defended his handling of the economy, which he forecast to grow by 5.7 percent this year and 5.4 percent in 2009, and attacked the resurgent opposition led by former finance minister Anwar Ibrahim.
"Political rhetoric cannot contribute to the wellbeing of Malaysians or the economic progress of the nation," he said in his budget speech.
"Efforts by certain parties to destabilise the country by attempting to seize power through illegitimate means and without the mandate of the people, must be rejected."
The opposition gained control of a third of parliamentary seats in March elections, and has promised to topple the government within weeks, rattling investors and Malaysia's stock market.
Abdullah announced a variety of measures aimed at easing the impact of rising prices of food and fuel, which have triggered public protests and diminished his support.
Income tax is to be cut by 1.0 percentage point for middle- and high-income earners, employees' transport allowances are to be made tax-deductible, and rebates were increased to remove some 100,000 taxpayers from the tax net.
Abdullah said the road tax on diesel vehicles would be lowered, and the government would build more low-cost homes and reduce the cost of buying medium-cost houses.
To ease the impact of rising prices on consumers, import duties on some food and household items, including microwaves and kettles as well as biscuits and fruit juice, have been slashed.
Abdullah said the "caring budget" showed the government was "responsive to the concerns of the people and has taken measures to lighten the burden of all Malaysians, particularly the lower-income group".
"The Barisan Nasional government will continue to manage the economy responsibly," he said.
"The opposition, on the other hand, continues to make populist claims which if implemented would undermine the government's financial position and bequeath a bankrupt nation to the next generation."
Anwar has promised to slash fuel prices if he becomes premier, in a powerful gesture after Abdullah's 41 percent overnight hike announced in June triggered widespread anger in a car-dependent nation.
- AFP/so
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