Budget 2018 ‘ranging and inclusive’ for economic expansion
KUALA LUMPUR: Malaysia’s banks commended the measures announced during Budget 2018 as the initiatives unveiled are said to be ‘ranging and inclusive’ measures to promote economic expansion.
In his post-budget commentary, Public Bank founder and chairman Tan Sri Dr Teh Hong Piow lauded the wholesome approach in crafting the Budget 2018.
“Budget 2018 touches all aspects of the society and rakyat from all walks of life. It provides wide ranging and inclusive measures to promote economic expansion and wellbeing of the rakyat, particularly the medium and lower income group.
“This sets the direction for the nation to embark on the journey towards the National Transformation 2050 (TN50),” he remarked.
He also pointed out that the Budget 2018 also addresses the needs of the rakyat amid rising cost of living.
Aside from that, Dr Teh also viewed positively the government’s firm and continuous commitment in strengthening its fiscal position, and Budget 2018 affirms this ongoing fiscal effort.
“Budget deficit is projected to reduce further to 2.8 per cent of gross domestic product (GDP) in 2018, supported by expectations of higher government revenue and prudent fiscal spending,” he added.
The implementation of new and ongoing infrastructure projects would also continue to stimulate investments, which in turn generate capacity expansion in high growth sectors.
“Domestic investment will complement private consumption activities, contributing to a broad-based economic growth,” he said.
Overall, Dr Teh said, “The global economic landscape will continue evolving owing to technological advancement, particularly in the area of digital economy.
“In the midst of the Fourth Industrial Revolution, raising value-added productivity, alongside innovation, technological advancements and human capital
Budget 2018 touches all aspects of the society and rakyat from all walks of life. It provides wide ranging and inclusive measures to promote economic expansion and wellbeing of the rakyat, particularly the medium and lower income group. Tan Sri Dr Teh Hong Piow, Public Bank founder and chairman
development could unleash further the growth potential of the Malaysian economy.”
Meanwhile, CIMB Group Holdings Bhd (CIMB) Group chief executive Tengku Datuk Seri Zafrul Aziz highlighted that the Budget 2018 reflects the government’s sensitivity towards the rakyat, through caring yet practical policies, particularly for the B40 and M40.
“Focus on bread-and-butter issues, like reducing income tax for the lower income group, increasing assistance for basic food and transportation items and providing more allocation for affordable homes will go a long way towards ensuring the rakyat’s short- and long-term interests,” he said.
On the announcement of the expansion of the government’s affordable housing programme, Zafrul said the focus on building more than 385,000 affordable homes showed that the government is taking firm steps to address head-on the challenge of home ownership for the lower-income group.
“Extending PR1MA’s step-up financing scheme to private housing developers is also a laudable move towards facilitating homeownership,” he said.
On enabling further a digital economy, the Digital Free Trade Zone that is already taking shape will make Malaysia a major fulfilment gateway and commercial hub for Asean, providing opportunities to the nation’s economic backbone, the SMEs, and more jobs.
“Related to this, CIMB Group, as a leading universal bank with a strong footprint in Asean, is ever ready to facilitate SMEs’ crossborder trade and business expansion regionally,” he added.
Zafrul also highlighted that the policies on GLC’s operations, particularly in ensuring the well-being of staff reflect a people-focused vision by the government.
“Indeed, quite a few of them, like flexi-work arrangements and childcare centres at work, have already been implemented by CIMB.
“On the whole, this appears to be a carefully crafted budget, addressing the rakyat’s immediate concerns, and yet forward-looking enough to ensure the nation’s future economic, social and spiritual development,” he concluded.