Budget 2021 reflects govt commitment to support B40, M40 - MIDF research

 

Budget 2021 reflects the government’s commitment to providing support to the B40 group impacted by the Covid-19 pandemic, opined MIDF Research.

In a statement today, it acknowledged the measures including the expansion of “Program Baucar Perlindungan Tenang”, assistance to children of poor families, and the improvement of Bantuan Sara Hidup (BSH) to Bantuan Prihatin Rakyat (BPR).

“Besides this, the government is also providing initiatives to ease the burden of the M40 group, such as reduction of income tax for a taxable income range of RM50,001 to RM70,000, reduction of contribution rate for the Employees Provident Fund (EPF), and allowing withdrawal of EPF Account 1 for targeted groups.

“Steps taken to support business continuity will ensure that businesses especially small and medium enterprises (SMEs) will not only be able to sustain but thrive under present economic conditions,” it said.

B40 represents the bottom 40 percent of income earners in the country, while M40 the middle 40 percent.

MIDF said various measures to drive investment in technology, supply chain, logistics, and sustainable development, as well as assistance to encourage the manufacturing and consumption of domestic-made products would foster a more conducive business environment.

“These activities would contribute towards the creation of new job opportunities. In tandem with the various initiatives on employment, we believe that this will ensure that employment will return on its growth path,” it added.

The research firm is also of the view that the large expansion of Development Expenditure of RM68.2 billion is positive, given the need to support the revitalisation of the economy and provide a better quality of life and living environment.

“We believe that it is important the Development Expenditure continues to be channelled to programmes and projects with high multiplier impact.

“Projects such as upgrading, expansion, and maintenance of transportation networks and projects such as the Electrified Double Track Gemas-Johor Bahru, Pan Borneo Highway, KVDT1, Rapid Transit System, as well as the expansion of the Kuantan Port and airport in Sandakan will give the impetus for the economy's recovery,” it said.

With the war on Covid-19 not over, MIDF said Budget 2021 highlights the government’s continuing effort to contain and win against the pandemic.

“Increasing the Covid-19 fund ceiling will provide the government with much-needed funds to continue to combat the pandemic. In addition to this, measures are there to ensure that Malaysia has access to the eventual vaccine,” it added.

- Bernama