2018 Budget to boost Sabah economy – FSI
KOTA KINABALU: The Federation of Sabah Industries (FSI) is optimistic to see speedy economic growth in Sabah with the unveiling of Budget 2018 by Prime Minister Datuk Seri Najib Razak last Friday.
Its president, Datuk Mohd Basri Abd Gafar, said Budget 2018 had not only inspired the over 200 FSI members and majoirity of the stakeholders in the private business community but also helped boost their confidence in terms of investments and expansion programmes now and in the near future.
“FSI is hopeful that the Federal Government will be able to generate the revenue to implement the budget proposals ... planning or intention is just one part of the budget ... the implementation is the most important part,” Basri said.
In welcoming Budget 2018, Basri expressed belief that the budget has goodies for everybody, especially Sabah and Sarawak, including the industries in the country.
He said the association was very much concerned on four vital points in the budget which include the manufacturing (SMEs), tourism, digital economy and green technology.
Briefly elaborating on the four vital concerns, the FSI president said his members and the other parties concerned will surely benefit from the RM200 million allocated to SMEs for training programmes, grants and soft loans under the SME Corp.
At the same time, he said they also welcomed the allocation of RM150 million each given to MIDA, MATRADE, and SME Corp for promotional programmes and expanding the export market, incliding market development grants.
“We also appreciated the inclusion of RM2 billion for Exim Bank for insurance coverage credit facilities and another RM200 million for credit financing facilities to SME exporters,” he stressed.
He said it will also be of great help the allocation of RM80 million under the Rural Economic Financing Scheme through Bank Rakyat and SME Bank to provide financing facilities to rural Bumiputera entrepreneurs.
On the tourism aspect, Basri said FSI welcomed with open arms the declaration of the year 2020 as Visit Malaysia Year.
“We are also thankful for the allocation of RM2 billion to the SME Tourism Fund meant to provide soft loans to tour operstors with interest subsidy of two per cent and not forgetting the RM1 billion additional fund allocated to the Tourism Infrastructure Development Fund as soft loans.
On the digital economy, Basri said it was only logical and proper for the present administration to allocate RM1 billion through the Malaysia Communications and Multimedia Commission (MCMC) to develop communication and infrastructure and broadband facilities in Sabah and Sarawak.
The provision of a marching grant worth RM245 million under the Domestic Investment Strategic Fund to level up Smart Manufacturing facilities in supporting Industrial Revolution 4.0 is also timely, he said, adding that the same thing goes to the capital allowance for ICT equipment, which include spending on computer software development.
The FSI president said the RM5 billion allocation under the Green Technology Financing Scheme to promote investments in green technology industries will definitely be of much help to all the parties concerned in the near future.
“FSI is also suggesting that the allocation for Sabah at least 30 percent in all aspect be identified and provided for,” he added.