KUALA LUMPUR (March 19): There was a lot of money talk in and outside Parliament in the fortnight leading up to the March 18 tabling of Malaysia’s first supplementary budget this year — seeking RM8.4 billion for spending done under Budget 2021.

There was no mention of whether that RM8.4 billion meant that last year’s (revised) fiscal deficit of RM98.78 billion, or 6.5% of gross domestic product (GDP), would have to be revised closer to 7% of GDP when the actual figures for 2021 are released later this year with the tabling of Budget 2023.

But that’s small money relative to the RM13 billion that Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia needs to repay 1Malaysia Development Bhd (1MDB) loans in 2023 or the RM28 billion that the government’s fuel subsidy bill could be this year if oil prices stay at US$100 (about RM419.30) levels.

In fact, The Edge’s calculations show that Malaysia needs RM16.2 billion this year and RM13.31 billion next year to cover 1MDB-related principal and interest. The RM15.76 billion left in the 1MDB Asset Recovery Fund (versus the RM38.8 billion outstanding obligation as at Feb 28, 2022 even after paying RM13.31 billion) means that there is a shortfall of RM23.04 billion that the government needs to cover with new debt.

These headline amounts are also small relative to the RM50 billion in financing that Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said the Ministry of Finance had commited to the Mass Rapid Transit 3 (MRT3) Circle Line project, which is expected to need RM31 billion for construction, RM8 billion for land acquisition and RM11 billion set aside for other related expenses.

The utilisation of the RM50 billion depends on how the project is managed over the next eight years, MRT Corp chief executive officer Datuk Mohd Zarif Hashim told reporters.

To be sure, these multibillion-ringgit expenses that the government needs to find money for are not entirely comparable in terms of their benefits to the people and the economy.

While some experts, including economist Dr Nungsari Ahmad Radhi, question whether now is the right time to implement MRT3, those supportive of the project say, if well implemented, MRT3 will benefit those using public transport, help reduce our carbon footprint and reinvigorate the sluggish construction sector.

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