Bankers: Balanced budget focused on long-term fiscal sustainability

 

Maybank group president and chief executive officer (CEO) Khairussaleh Ramli said socio-economic uplifting measures for the poor and low-income groups, tax cuts for middle-income group, empowering micro, small and medium enterprises (MSMEs), promoting investment and tourism are ingredients for a balanced Budget 2023.

“There are also redistributive and progressive tax proposals such as increases in the tax rate of higher-income groups, luxury goods tax, capital gains tax on disposal of unlisted shares and excise duties on vape products, coupled with strengthening governance and effectiveness of public spending,” he said in a statement.

He noted that the budget was not just about medium-term fiscal sustainability but also broader aspects of longer-term sustainability, including protecting biodiversity, preserving environment, greening the economy and addressing climate change.

RHB Banking group managing director and CEO Mohd Rashid Mohamad said Budget 2023 will increase the momentum for economic recovery with emphasis on structural reforms to strengthen economic resilience, measures to support the growth of MSMEs and priority sectors coupled with assistance to targeted groups.

He said in a statement today that the budget provides much-needed support in addressing the high cost of living, further strengthening the social safety net as well as enhancing the MSMEs ecosystem.

“The government remains steadfast in balancing the need to safeguard the well-being of people and the nation while ensuring a sound and sustainable fiscal position,” he said.

Meanwhile, AMMB Holdings Bhd group CEO Sulaiman Mohd Tahir lauded the government’s call to strengthen Islamic financing which will bode well for Malaysia as an Islamic financing hub.

Standard Chartered Malaysia CEO Mak Joon Nien said the budget was well curated, recognising the delicate balance of fiscal discipline and maintaining growth momentum in 2023.

“We laud the gradual reduction of operating expenditure to RM289.1 billion to further strengthen the nation’s fiscal position,” he said.

He also said the government’s initiative to ease the financial burdens of 8.7 million beneficiaries from the B40 community, with provisions close to RM8 billion would ensure that no one is left behind.

Budget 2023 was tabled by Prime Minister Anwar Ibrahim in Parliament earlier today.

- Bernama