Federation of Malaysian Consumers Assocations (Fomca) president Professor Mohd Hamdan Adnan, was upbeat about Budget 2003 but warned that the aim of increasing consumer purchasing power could lead to inflation .

"The budget is trying to enhance consumer purchasing power, but just giving people higher salaries may actually cause inflation. It is hoped that consumers will spend wisely," he said.

On a more positive note, he praised the new budget as being "fair and balanced" for highlighting the importance of human as well as consumer rights in areas like education.

"The introduction of community colleges is a very good idea. They will enhance the skill of our people. Even the allocation of tution money for the very poor is commendable," he said.

He embraced the budget's emphasis on Information Technology (IT), which he said was an essential sector for future growth of the Malaysian economy.

"Malaysians should take advantage of the fact that a lot of money has been allocated for IT. During the industrial revolution, we were still colonised, but now we can be as good or better than any other countries in terms of IT," he said.

Beneficial to NGOs

He also welcomed the fact that the new budget would be beneficial to non-governmental organisations (NGOs).

"When the Prime Minister talked about 'Malaysia Inc' it usually means just government and industry. In this budget, however, both industry and NGOs are on equal terms to help develop the nation," he said.

He added that he believed government efforts to boost the economy would help the country to "grow in strength".

He also approved of the fact that no new taxes were introduced in the new budget, saying that this was "good news for everybody".