Bursa Malaysia cited that in line with the theme of a Responsive, Responsible and Reformist as a basis for Budget 2023, the exchange was glad the finance minister remains committed to long term financial sustainability and to build Malaysia’s resilience to face any future crisis.
The commitment to reduce fiscal deficit to 5.5% of GDP in 2023 from 5.8% in 2022 and further to an average of 4.4% for 2023-2025 must be lauded, said Bursa Malaysia Chairman Tan Sri Abdul Wahid Omar.
One huge positive factor for the corporate sector is the absence of prosperity tax in Budget 2023 which would have potentially shaved off the FBMKLCI’s 2023 EPS forecast by 5%-6%.
Without such tax being imposed, analysts have a consensus forecast EPS growth rate of 11.5% for 2023 compared to -1.1% for 2022. This augurs well for the capital market.
The continued commitment towards sustainable development is also most welcomed. Overall a positive Budget 2023, he added.
