Prime Minister Najib Abdul Razak, who is scheduled to table Budget 2016 in Parliament tomorrow, revealed that he has a plan.

"I have a plan, and the plan is working. I will not be distracted, for there are serious consequences of not seeing the plan through.

"Budget 2016 will demonstrate how the plan will improve the lives of all Malaysians, and our next steps towards achieving Vision 2020 and achieving developed nation status.

"The future and welfare of all Malaysians is my top priority," he was quoted as saying in a statement issued by the Prime Minister's Office today.

The prime minister, who is facing calls to step down and the possibility of a no-confidence vote, also outlined the measures the government is taking to safeguard the economy given the challenging global environment.

"This year, we have been focused on strengthening the resilience of our economy, managing the impact of external vulnerabilities, and safeguarding the well-being of the people," he said.

Acknowledging that the fall in the price of oil and gas has resulted in a decline in government revenues, Najib highlighted the pro-active measures being taken by the government.

Pro-business policies

These measures are designed to mitigate the impact – specifically the various steps implemented to diversify the economy over the past year.

"Two things we have done to increase resilience is to introduce GST and rationalise subsidies. These decisions have been our saviour.

"GST collection is higher than anticipated due to higher compliance, and fortunately we have other resources – plus the government has been prudent with expenditure,” he said.

Najib said despite the oil price fall, and the challenges emerging markets around the world are facing, Malaysia’s economic fundamentals remain strong with growth expected to be 4.5 to 5.5 percent this year, inflation at 2 to 2.5 percent and unemployment stable.

In view of this, the PMO statement pointed out that the government is therefore well-placed to continue to put the people first and provide assistance, especially to vulnerable groups, to help with rising living costs.

The government, it added, would also support the private sector with pro-business policies, and ensure inclusive growth, enhance human capital development, and increase productivity, innovation and green technology.