Malaysia focuses on poverty

Malaysia focuses on poverty

KUALA LUMPUR (AFP): Finance Minister Anwar Ibrahim has promised to take a middle line on taxes in his October budget, as he was urged yesterday to provide incentives for small and medium size businesses.

Anwar, who is also deputy prime minister, said Malaysia will adopt a moderate path to promote economic growth and encourage foreign investment but will not neglect the poor.

"Our policies have been consistent. We take the middle path. We have opted for this," he said in an address Saturday at celebrations marking the 50th anniversary of Unilever Malaysia Holdings.

He said that when preparing his October budget he had to decide whether to be "the Sheriff of Nottingham (to tax the poor) or to be Robin Hood (to tax the rich). Malaysia will adopt a policy somewhere in-between."

R.V. Navaratnam, corporate advisor to Malaysian construction and development giant the Sungeiway group, told AFP the October budget could spell out tax incentives for the creation and development of small and medium size businesses.

The government may also work on an expenditure program to rehabilitate small and rural towns to reduce urban migration, he said.