Full transcript of PM Najib’s interview

(Bernama) – Prime Minister Datuk Seri Najib Razak today replied to questions on several issues raised by various quarters, including former prime minister Tun Dr Mahathir Mohamad.

Najib, while stressing that his priority was to the nation and people, answered all aspects of the criticisms, pertaining to the management of 1Malaysia Development Berhad (1MDB); implementation of the Goods and Services Tax (GST); 1Malaysia People’s Aid (BR1M); the murder of Mongolian model Altantuya Shaariibuu; Sedition Act; Prevention of Terrorism Act (POTA) and the economic prospects of the country.

He expounded on the issues in an interview with Hamdan Ahmir on a special edition of the TV ‘Soal Jawab’ (Question & Answer) programme aired tonight.

Following is the transcript of the interview:

Hamdan’s introduction: Of late, several quarters have criticised YAB Prime Minister over several issues pertaining to financial management and administration. In fact, there are those who have demanded the prime minister’s resignation because they feel that UMNO and the Barisan Nasional will lose in the next general election if YAB remains the country’s leader. To answer these questions, I hereby welcome the Prime Minister, Datuk Seri Najib Razak.

Question : I wish to begin our session by expressing our sympathies to Datuk Seri and the staff in the Prime Minister’s Office over the loss of Datuk Seri’s dear friend Tan Sri Jamaluddin Jarjis and two senior officers very close to Datuk Seri, Datuk Azlin Alias and Datuk Mohd Poad (Jelani). How were you able to tide over this difficult period?

Najib : Of course, their loss is a tragedy to the Prime Minister’s Office, even more so for me and, of course, for their families and friends. In the context of the national administration, the late Tan Sri Jamaluddin Jarjis had made a huge contribution in various capacities in the country and abroad.

The late Datuk Azlin, in the administration of my office, had discharged his duties with efficiency and trust. It is the same in the case of Datuk Poad; as my private secretary he had served well.

While I am saddened by their loss, I am more determined than ever to discharge my duties in leading our country towards realising all dreams and ideals and the country’s vision.

Question : We find, Datuk Seri, that the government has made a revaluation in terms of national economic development as a result of the pressures faced globally. In economic terms, how do you view the efforts carried out so far in strengthening the national economy to a higher level.

Najib : Indeed the revaluation was most appropriate following the drastic collapse in the oil price; the price dropped to half of what it was before. Of course, any oil-producing country would have to make adjustments to the country’s fiscal position, so that more proactive measures would guarantee that the national economic fundamentals are still strong.

This is what I want to emphasise. Although oil prices fell, the fundamentals of our national economy has remained intact and we could still achieve a moderately high growth rate.

We could still attract investments, we could still implement national transformation programmes, and we could continue to ensure that Malaysians are taken care of.

Question : We find many welcomed the efforts made by the government in terms of stabilising the economy. On the other hand, Datuk Seri, there are certain parties apparently not satisfied with the way you run the administration as the prime minister.

I would like to focus on the criticisms made lately by former Prime Minister Tun Dr Mahathir Mohamad on your leadership. How do you view these criticisms?

Najib : I remain respectful of Tun Dr Mahathir as how I respect the other people of Malaysia. I am open to criticism from anyone against my leadership, my administration.

I hope the criticisms were made with prudence and responsibility. I delve into and I consider the validity of every criticism. But I have to stress that in the end, as the prime minister, I have to make the decision, and as Umno president, and I am responsible to Malaysians and to the party. That is what I want to emphasise.

Whatever the individual opinion, in the end, I will be responsible to the people and the party.

Question : Let’s take the example of the introduction of the GST (Goods and Services Tax) on April 1. Some quarters feel that the timing of the GST introduction was inappropriate considering that the people were feeling the effects of the world economy on Malaysia. What is your comment, Datuk Seri?

Najib : Actually, there is no such thing as a suitable time to introduce the GST. Overall, among the factors said to be in the government’s favour in the introduction of the GST is the drop in the oil price.

When the price of oil drops, it means that the prices of petrol and diesel are lower than before. Firstly, the people benefit from the drop in the world oil price. Secondly, the government had long prepared for it.

The GST has been mulled since the 1980s. It is not new. So, in macro terms, the timing is right because the government needs additional sources of funds as the dividends from Petronas will decrease due to the drop in the oil price.

Therefore, it is most appropriate that we introduce it (GST) now, and we have also zero-rated or exempted many essential goods from the tax. More than 4,000. Never has any other country done this, and this is not a supplementary tax.

It replaces the service and sales tax. Besides, we have increased the payments under the 1Malaysia People’s Aid (BR1M). We have also reduced personal tax by between one and three per cent. And, we have also reduced the corporate tax, by one per cent. So, the package, overall, does not burden the people.

We want to ensure its implementation, that is the basis. Implementation in terms of enforcement. If some quarters complain, it is not because of the introduction of the GST. These are the opportunist traders; the irresponsible traders, not all traders.

Some (traders) have announced they will not raise prices, some have said prices will be reduced. For example, the prices of vehicles are lowered. Supermarket chains such as Mydin are retaining their prices, some textile shops said they will absorb the GST, and so on.

So, we want the enforcement authorities to act against the irresponsible traders.

Question : We know that essential items are exempted from the GST. But there are also people who question that when they go to eateries, Malaysian food like ‘nasi lemak’ or ‘roti canai’ with ‘teh tarik’ are also subjected to the tax.

If we buy tomato ketchup, for example, GST will be imposed. So they ask how the GST will not burden them. Eating out everyday at the coffee shop is subjected to GST.

Najib : If they are not supposed to charge GST, please report to the ministry of domestic trade. Here lies the power of the consumer. We must know that we have the power.

Firstly, we could choose any shop to buy goods or go to any eatery, we could choose. The irresponsible traders are the ones who raise prices unnecessarily, and then blame the government.

Don’t go to these shops. There are many other shops. Other alternative shops. Secondly, we must report to the ministry and the customs. So use our power as consumers. Sooner or later, those who exploit this situation, will lose their buyers.

Question : I want to relate between BR1M and GST, as pointed out by Tun Dr Mahathir that the timing is not right, but it may not necessarily be correct. It is not suitable to implement the GST and the BR1M handout is not an effective measure to be taken by the government.

Najib : BR1M is not a handout. BR1M is actually a social safety net that was proposed by the Fiscal Committee, not me. The Fiscal Committee consists of government departments, including the Bank Negara, EPU (Economic Planning Unit), Finance Ministry and the like. When they had discussions, at first it was because we wanted to reduce the bulk subsidy.

It means that we want to reduce the oil subsidy because there are many leakages. Much wastage. Many people who don’t deserve subsidies benefit from them. So we said, we reduce. But we have to reduce in stages.

If we reduce, we save government expenditure. When we save, part of the savings are distributed back to the people. So, if the people have to pay more for petrol, it offsets BR1M for those earning RM3,000 and below. Now we add a bit to RM4,000, but RM3,000 and below has countervailing. So that’s actually the philosophy.

The social safety net system is not practised only in Malaysia. Many other countries practise the system in various ways.

Question : Coming back to the criticism of Tun Mahathir, he had mentioned the case of (the late Mongolian model) Altantuya Shaariibuu. We all concur that the court had decided in this case … it is past. But a criticism has surfaced from Tun Mahathir who asked who had ordered the police officers involved to kill Altantuya. It is weird because the case is over. Were you involved in this?

Najib: This thing happened in 2008 … a long time ago. Actually, I have recited the oath, Wallahi Wabillahi Watallahi, thrice, including at a mosque in Permatang Pauh in 2008 … that I had not known Altantuya and I was not at all involved, directly or indirectly. And the police conducted an investigation. And, at that time, Pak Lah (Tun Abdullah Ahmad Badawi), as the prime minister, had reported, and the Inspector-General of Police had issued a statement saying that I was not involved.

And there is no proof at all, whatsoever, that I had known Altantuya. None at all … no photographs, no documents, no witnesses and what not. The case went through the courts up to the Federal Court. Are we going to question the integrity of the courts which we had safeguarded for so long?

Question : It is understood that you, Datuk Seri, have met with Tun Dr Mahathir on several issues. Did he ask you about the Altantuya case?

Najib : Not directly, but we did discuss it at one time. During the discussion, I noticed that he did not ask whether I was involved in the Altantuya case. And I assumed that the matter did not arise at all. When I had my discussion with Tun Dr Mahathir, I showed my respect for him. For example, although I am the prime minister, I went to his residence rather than insisting that he come to mine. Nevertheless, whatever it is that we discussed, I had to decide as the prime minister.

Question : He (Tun Dr Mahathir) understood when you met him and gave an explanation but why is the matter being raised again?

Najib : He has one or two things that he wants me to do. But I have given my views on the matter. For example, he does not agree with BR1M; he asked me to build a crooked bridge to replace the Causeway. I have given my views on these.

I regard this as a discussion between two individuals … it is quite healthy if there is a difference of opinion but, regardless, in the end I have to be responsible to the people and party. And most of these matters, I bring to the Cabinet and the Cabinet decides.

Question : Datuk Seri, I want to switch over to the question of 1MDB. The claim by certain quarters that the 1MDB transactions are master-minded by certain personalities is most doubtful. What is your comment?

Najib : I want to clarify that 1MDB is a body which we regard as an investment company. With a start-up capital of only RM1 million compared to PNB, Khazanah and other bodies to which we gave numerous capital injections. But for 1MDB, only RM1 million.

1MDB was forced to borrow when it wanted to expand its business, but the assets obtained by 1MDB had exceeded liability. This I want to stress … exceeding liability. We need to give time to 1MDB to develop or liquify these assets so that it can settle its loans. We can question the business model; I am prepared to listen to differing views but I want to stress here that I don’t condone, I cannot accept any abuse of power in 1MDB. For example, money being dissipated … and so on.

As such, when Dlloyd, as the auditor, verified its audit, I was still not satisfied. I proposed to the Cabinet for the Auditor-General to conduct a review. And after the Auditor-General had done so, I asked PAC (Public Accounts Committee) to scrutinise. There are opposition party representatives in the PAC; they can discuss the audit report.

What I want to say is, let the process go through its course … give it time. If we prosecute, there is a lot of difference if we say the money has disappeared or was borrowed, reserved. I also asked the Auditor-General to verify if 1MDB funds were used to make a film, for example. I want to know and these are among the things which must be determined by the Auditor-General and must be verified or otherwise by the PAC.