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The Memorandum of Understanding (MOU) between Federal Government and Pakatan Harapan: What’s in it and its impact on the Malaysians | UMSU Press
A Memorandum of Understanding (MoU) on Transformation and Political Stability was signed by the federal government and Pakatan Harapan (PH). The government of Malaysia was represented by Prime Minister Ismail Sabri Yaakob while PH was represented by Anwar Ibrahim, Lim Guan Eng, and Mohamad Sabu. The duration of the MOU is from Sept 13 this year until the dissolution of the 14th session of Parliament. Both parties agreed to fully publish this MoU to the public as part of their commitment to openness and accountability.
The MoU strived to put an end to excessive politicking for the sake of the country's and people's welfare. It would form strong bipartisan cooperation based on the spirit of the Malaysian Family, which emphasizes unity, agreement and togetherness.Through bipartisan cooperation, this MoU aimed to restore political stability of the country in order to deal with the hectic Covid-19 pandemic and aid in the country’s economic recovery. Both parties shall place close attention and importance on the changing political environment through governance transformation and reform efforts, with particular emphasis on enhancing the role of parliamentary institutions.
The administration has agreed not to seek the dissolution of Parliament before July 31, 2022. It also commits to start on a transformation programme that the parties would design and mutually agreed upon.
The coalition of Pakatan Harapan agreed the obligations that in reciprocal consideration to the proposal and implementation of the transformation programme and subject always to the implementation of the transformation programme at such material time:
Below are the six-points of MoU which includes the empowerment of the Covid-19 plan, transformation of the administration, parliamentary reforms, independence of the judicial institution, Malaysia Agreement 1963, and the formation of steering committees:
The government is confident that this MoU will not only be able to set all political differences aside but also be able to ensure that the country's recovery runs holistically and inclusively. Political stability will contribute to a more stable and conducive environment for the development of the country's investment sector, capital market and economy.
At the same time, the Finance Ministry (MoF) is confident that the MoU signed will continue to support economic recovery and the GDP growth projection of between 3.0 percent and 4.0 percent for this year.
Also, the Cabinet had approved a proposal to amend the Temporary Measures for Government Financing (Coronavirus Disease 2019) Act 2020. Government will increase the ceiling cap for the COVID-19 Fund if necessary to continue supporting the people and businesses that are in need. This includes raising the ceiling for the COVID-19 Fund from RM65 billion to RM110 billion and increasing the government's statutory debt ceiling from 60 percent to 65 percent of the GDP. Overall, the implementation of stimulus packages, the reopening of economic sectors and Malaysia's diversified economic structure have successfully resulted in the nation's gross domestic product (GDP) growth of 16.1 percent in Q2 2021.
The MoU also aimed to strengthen the public health system, especially in curbing the spread of the COVID-19 epidemic and treating the COVID-19 patients; improving direct cash assistance to the people; and supporting business continuity, especially for small and medium enterprises (SMEs) and micro SMEs.
The Ministry of Finance (MoF) has instructed banking institutions to work towards waiving the interest payments for loan moratorium recipients immediately in order to involve moratorium recipients from the bottom 50 percent of Malaysia's population for a period of three months in Q4 2021.
For Budget 2022, the MoF will continue to accelerate the nation's economic recovery by drafting policies that are both business and investment-friendly, as well as strengthening the country's resiliency. The Budget will also implement several restructuring aspects that will support the objectives of the 12th Malaysia Plan in driving more sustainable, sustainable and competitive growth.
Written by Secretariat of Current Affairs 2021
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