What industry captains say ...
THE actual 2016 fiscal deficit will come in at around a low three per cent region and this is still an acceptable rate to international rating agencies, given the challenging global economic climate. Infrastructure development projects are one of the key fiscal spendings that can benefit the economy if it is targeted and transparently distributed due to its resultant multiplier effect on other sectors such as construction, manufacturing and services. The country’s trade surplus remains healthy, foreign reserve can support 8.5 months of retained imports, and gross domestic product growth for the full year can come in at four per cent, which will be commendable, given a slower global growth. THE 2017 Budget represents a delicate balance to spend and distribute among key socio economic segments while achieving reduced budget deficit. Clear emphasis was also given to improve B40 income level via higher BRIM payout and various subsidies/incentives. SMEs have been given a lot of attention to help grow the economy next year. In the medium term, since the economic growth would largely be driven by local investments, SMEs are given numerous incentives including tax incentives. We welcome the introduction of step-up financing scheme for PR1MA houses, the increase of government servants loan entitlement and utilising GLC landbanks in strategic locations to develop affordable houses.