National ICT Association of Malaysia Responds to 2016 Budget Revision, Lays Out Impact on Tech Industry
PIKOM welcomed the recent revisions to Budget 2016 to spur domestic consumption and spending. However, a focus on driving economic performance, and strengthening the fundamentals of the country could have been more beneficial.
The association also welcomed the government’s decision to continue its plans for the Malaysian Vision Valley, and the introduction of open bidding for spectrums to promote greater competition in the telco sector.
According to PiKOM, reduction in broadband costs will have a catalytic effect on society and the economy in terms of reducing household expenses, the promotion of knowledge-based society, and other benefits.
On the Prime Minister Datuk Seri Najib Razak’s announcement of the RM2,000 tax relief for workers earning below RM8,000 a month, and the three-percent reduction in employees’ contributions to the Employees Provident Fund, PIKOM Chairman Chin Chee Seong commented that it may provide some boost in disposable income within the local retail sector, including the ICT sector. This will, in particular, benefit the lower to middle income group.
“The one-time salary increment for civil servants is also a welcomed move, though it cannot be ascertained as yet how much of a stimulus effect these measures will have on the economy,” added Chin in his statement.
The RM6 billion in additional funds for Development Financial Institutions (DFIs) and Venture Capitalists (VCs) is also a positive move,
Chin Chee Seong, PIKOM Chairman.
as investing in the development of technopreneurs and the start-up scene will deliver a long-term stimulus effect on the local economy in many ways. PIKOM also welcomed the emphasis on training, as evident by the allocation of 30 percent of levy contribution to reskilling programs, among others.