At a time when tensions between the two remain high, it’s always a cause for celebration when former prime minister Dr Mahathir Mohamad agrees with something his protege and current PM Najib Razak plans to do.
Dr M, who served as Malaysia’s premier for a record 22 years, said he agreed with the Federal Government’s plan to revise Budget 2016 in the face of a weakening Ringgit and plummeting global oil prices.
“Whether we want to or not, we will have to relook the Budget following the further drop in oil price as well as the devaluation of the ringgit,” Mahathir said in Shah Alam today, as quoted by Lidiana Rosli of the New Straits Times Online.
“Relooking the budget now is the appropriate step given the ongoing economic climate.”
Dr M also commented on national carmaker Proton’s impending price hike for its cars.
“It is inevitable considering that we do use some imported parts and the cost is higher now because of the ringgit devaluation. However we are doing our best to hold this.”
Dr Mahathir has been intensely critical of Najib’s handling of the Federal Government, and in paricular his response to the allegations of wrongdoing surrounding national investment fund 1Malaysia Development Berhad (1MDB).
The former premier even went so far as to attend the #BERSIH4 electoral reform demonstration last August to join public calls for Najib’s resignation.
Najib is expected to announce the amendments to Budget 2016 on January 28.
When Budget 2016 was presented in Parliament in October, the Federal Government’s expenditure was predicated on oil trading globally at around USD55 per barrel.
The global price of oil is now hovering at or under USD34 per barrel.
