‘INCLUSIVE MEASURES’

Budget promotes economic growth, focuses on rakyat’s well-being

BANKING players say the 2018 Budget boasts inclusive measures to promote economic expansion and well-being of the rakyat, particularly for the medium and lower income groups.

AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir said it was clear that the budget had taken a redistributive approach. This was reflected in the government’s commitment to reduce fiscal deficit to 2.8 per cent of gross domestic product (GDP) next year from 6.7 per cent in 2009.

“This redistributive approach will also see a narrower income gap in the nation, as the 2018 Budget has announced the reduction of income tax for midrange income household group (M40). Most notably, over 261,000 Malaysians will no longer be subject to income tax.

“We believe that this increased disposable income of an estimated RM1.5 billion should provide a positive impetus on consumer spending, easing cost of living for many,” said Sulaiman in a statement yesterday.

Public Bank Bhd founder and chairman Tan Sri Dr Teh Hong Piow said the government’s firm and continuous commitment in strengthening its fiscal position was further affirmed.

“The implementation of new and ongoing infrastructure projects will continue to stimulate investments and which, in turn, will generate capacity expansion in high growth sectors,” said Teh.

RHB Bank Bhd said the budget had put emphasis on investments in infrastructure, education, and skills and talent development.

“It has taken measures to address the Bottom 40 per cent (B40) income group, the M40 group and the rural population,” said group managing director Datuk Khairussaleh Ramli.

RHB Bank considers it a wellrounded and disciplined budget that should lead to revenue generation and reduction of fiscal deficit to 2.8 per cent of GDP, hence boosting consumer and investor sentiment.

Meanwhile, CIMB Group said the 2018 Budget, which focuses on building more than 385,000 affordable houses, showed that the government was taking firm steps to address head-on the challenge of home ownership for the lower-income group.

Extending the 1Malaysia People’s Housing Programme stepup financing scheme to private developers was a laudable move, said chief executive officer Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Standard Chartered Bank Bhd managing director Mahendra Gursahani said the continued fiscal consolidation discipline should allay concerns that the government might pause on narrowing its deficit.

He was also pleased with the government’s focus on the growth of small and medium enterprises and entrepreneurs by allocating RM200 million for soft loans, training and grants via SME Corp.