On the right track to commitment
Datuk Sulaiman Mohd Tahir Group CEO
AMMB Holdings Bhd
With the Government’s commitment to reduce fiscal deficit to 2.8% of gross domestic product (GDP) from 6.7% in 2009, it is clear that Budget 2018 has taken a redistributive approach.
AmBank Group applauds this goal, along with the move to reduce the federal government debt-to-GDP ratio from 55% to about 50%.
Moreover, this redistributive approach will also see a narrower income gap in the nation, as Budget 2018 has announced the reduction of income tax for mid-range income households (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 RM1.5bil should provide a positive impetus to consumer spending, easing the cost of living for many.
AmBank is also heartened to note that the budget has facilitated the advance of the digital economy via the creation of the Digital Free Trade Zone, which is expected to serve as a hub for small and medium-sized enterprises (SMEs).
Given that SMEs are major contributors to our nation’s economy, the incentives allocated to the SME sector will better enable entrepreneurs to gain global market access, adapt quickly to a fast-changing business environment, participate in the global supply chain actively and adopt Industrial Revolution 4.0. Datuk Khairussaleh Ramli Group managing director RHB Banking Group
The budget is largely built on addressing the rising cost of living while maintaining a commitment to fiscal discipline. It has taken measures to address the Bottom 40% (B40) income group, Middle 40% (M40) income group and the rural population.
One clear focus of this budget is to “shape the future” for all Malaysians, with emphasis on investments in infrastructure, education, and skills and talent development; measures that will boost growth and make the economy more inclusive. We consider it a well-rounded and disciplined budget that should lead to revenue generation and reduction of fiscal deficit to 2.8% of GDP, hence boosting consumer and investor sentiment.” Mah Sing Group commends the various initiatives in Budget 2018, which focuses on the lower and middle-income segments, addressing the cost of living, affordable housing issues and new technology to spur growth.
These incentives will further boost the economy, which ultimately enables the property industry to grow, benefitting home buyers.
Aiming to be the leading property developer in the affordable segment, Mah Sing will be launching more affordably-priced projects in line with market needs.
We hope the government will continue expanding the transportation system by extending either the MRT1 (from Kajang) or MRT2 (Putrajaya) alignment to Bangi. Ideally, an integrated station can be developed for the two lines to meet, providing a seamless journey for all commuters. This budget continues to address the Government’s present objective of boosting disposable incomes for the B40 to ease cost of living pressures and support consumer spending.
At the same time, we are pleased to see plenty of measures to help Malaysia and Malaysians prepare themselves for the demands of the future.
We are also encouraged by the Government’s continuing support for small and medium sized enterprises through funding and credit provisions, and also providing tax exemptions for capital markets covering a broad range of activities, products and investors such as ETFs, structured warrants, social & responsible investing, venture capitalist and angel investors for the capital markets.
Finally, we are happy to see Government continuing with its prudent approach in fiscal management as can be seen by the gradual improvement in our fiscal deficit. We acknowledge that this is extremely challenging to execute when external markets continue to be volatile, while at the same time trying to minimize the negative impact on the domestic market and the general population.
Overall, we see this budget to be positive for the consumption, infrastructure, tourism and finance sectors. Tengku Datuk Seri Zafrul Aziz Group chief executive CIMB Group
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.
The focus on building more than 385,000 affordable homes shows that the Government is taking firm steps to address head-on the challenge of home ownership for the lower-income group.
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. Tan Sri Abdul Wahid Omar Chairman Permodalan Nasional Bhd (PNB)
The Amanah Dana Anak Malaysia (ADAM50) will be implementedin Jan 1, 2018.
The total cost for ADAM50 from 2018 to 2022 is estimated to reach RM560mil and will benefit about 2.8 million Malaysian infants.
Through ADAM50, all Malaysian babies born from 1 Jan 2018 to 31 Dec 2022 will receive 200 free incentive trust fund units, which will be credited automatically in the unit trust funds managed by Amanah Saham Nasional Bhd (ASNB) after the registration process is completed by their parents or guardian.
The 200 incentive units and all dividends received on this initial amount can only be redeemed when the child reaches 18 years old. PNB also has two joint initiatives between PNB and the Socio-Economic Development Unit of the Indian Community, Prime Minister’s Department (SEDIC) - a special investment scheme for the lower income group (B40) and an investment top-up scheme for the Indian community.
The Government has allocated a total of RM500mil for a five-year period for this special investment loan scheme. Tan Sri Azman Hashim Chairman AmBank Group
We wish to extend our appreciation to the Government for its comprehensive budget which shows commitment in ensuring the economy continues to expand at a healthy pace and at the same time reduce the fiscal deficit since 2009 while maintaining the Federal Government debt to GDP below the self-imposed limit of 55%.
The Budget is seen to have expressed the sound economic and financial management of the country and at the same time cares for the interests of the rakyat reflected by the targeted incentives and measures and create more high impact programmes.
We applaud the Government’s priority to continue focusing on providing quality healthcare services and civil servants. Paddy farmers, farmers, small holders, fishermen and others in the agriculture are also given attention with measures that will help alleviate the decline in income from the weak commodity prices.
To further strengthen the contribution of the Capital Market, the Budget has introduced several measures such as the exemption of stamp duty which will promote a more active trading for Exchange-Traded Funds and Structured Warrants while the income tax exemption of management fees will incentivise the creation of a wider range of SRI financial products to be offered to the market and the introduction of an Alternative Trading System is expected to allow trading of securities to be time-efficient. Mahendra Gursahani Managing director & CEO Standard Chartered Bank Malaysia
We are pleased to see that the government remains focused on fiscal discipline and consolidation which should allay concerns that the government may pause on narrowing its deficit.
As a leading Islamic finance provider, we welcome the decision to stimulate Sustainable and Responsible Investment (SRI) in Malaysia through tax exemptions on Green Sukuk. This will facilitate the growth of Green Sukuk and bolster its position as a key driver in the Islamic financial market
We appreciate the government’s efforts to further invigorate the capital market by introducing the Alternative Trading System. The demand for ATS in South East Asia is growing, and we are eager to see how this can drive capital market growth, bring improvements in execution speed, and reduce transaction cost.