Faced with the threat of inflationary pressures, price controls of key consumer goods like wheat flour and cooking oil needs to be continued.
PGF Capital Berhad, an investment holding company with subsidiaries involved in manufacturing, agriculture, property development and property investment stated that in order for the Malaysian economy to sustainable in the long run, the budget should include a mechanism to gradually remove subsidies for electricity, petrol and diesel. But, a total removal of these subsidies at one go will put more pressure on inflation rates as they correlate with production and transportation costs.
The budget should look into creating a more competitive environment by resolving supply chain issues, for example, expediting entry of migrant workers.
On improving the economic growth rate of the Malaysian economy, PGF Capital stated Malaysia has abundant of natural resources, these natural resources should be value added before being exported to other countries. This will spur investments in downstream industries instead of just exporting the natural resources in raw form.
PGF Capital believes that a fast implementation of 5G in key business areas and industrial zones to encourage new investment in Internet of Things (IoTs) and the development of Artificial Intelligence and new technology, are also factors needed to improve the economy.
Budget 2023 should take in account policies to prevent brain drain. There is also a greater need to encourage locally owned companies to invest more in Malaysia by introducing policies to spur LDI (Local Direct Investment).
Asked on what issues need to be addressed specifically in their own industry, PGF Capital said Budget 2023 should create incentives for workers’ skill upgrade through training and upskilling programmes that can improve employee engagement and retention, attract new talent, increase collaboration between departments and speed up the adoption of new technology within the company.
The company hopes that the budget looks into allocating government grants to promote automation, reduce the reliance on manual labour as well as to increase the efficiency in the industry, while facilitating export incentives to encourage international trade.
