The Madani Budget 2024 bolsters fiscal discipline and yet, to stimulate equitable growth, is also one of the highest-ever with an allocation of MYR393.8 billion.
Mak Joon Nien, Chief Executive Officer, Standard Chartered Malaysia commends the Government for its clear intent to bolster the fiscal situation via the implementation of targeted subsidies and increased revenue measures; aside from ensuring that they only benefit deserving groups, the channelling of part of the savings from the subsidies to the Rahmah Cash Aid will further ease the burdens of the B40 segment.
The lower fiscal deficit, achieved via both revenue and subsidy spending measures, will help lay the ground for a more sustainable fiscal future.
“We believe that tax reformation measures such as raising the Sales & Service Tax to 8%, with exception of the F&B and telecommunications industry, as well as introducing the Luxury Goods Tax, will positively contribute to Malaysia’s revenue efficiently and effectively.
As a facilitator of trade, we are fully supportive of the decision to prioritise future investments in high growth high value sectors via giving incentives on a tiering basis. As the amount of incentives awarded is based on the commitment that companies carry out, it will spur companies to stimulate the economy via investments and subsequently, create a new cluster economy.”
Mak said with sustainability being core to our values, we laud the Government’s initiatives tied to the Energy Transition Roadmap (NETR), in which MYR2 billion has been allocated for a seed fund under the National Energy Transition Facility, as well as the efforts to improve the implementation of the Corporate Green Power Programme to achieve the country’s 70% renewable energy capacity target by 2050.
“We welcome the Government’s MYR44 billion for loans and financing guarantees in various initiatives and programmes for small and medium enterprises (SMEs), with the priority on boosting competitiveness of the business community and strengthen the industry through infrastructure improvements, boosting productivity and the use of digitisation and technology in business.
“As a Bank that is at the forefront of digital banking, we support the government’s commitment in moving Malaysia towards a digital economy via the allocations of MYR900 million to encourage SMEs to increase business productivity through automation and digitisation, among other initiatives. This will have a lasting and positive impact on the financial services industry, and we take pride in walking side by side with the government on its digital initiatives,” he added.
Standard Chartered Malaysia has always believed in lifting participation by fostering more entrepreneurs and start-ups, so we are pleased to see the Government stepping up to develop MYStartup as a single window to facilitate the business activities of start-up companies, alongside the MYR200 million as funds under various funding and venture capital agencies for startups, and the MYR1.5 billion dedicated to funds from GLCs and GLICs, to encourage start-ups, including Bumiputera SME entrepreneurs, to venture into the field of ‘high-growth high-capital’.
They laud the Government’s benchmark of increasing the participation rate of women in the labour force to 60%, as well as the tax incentive (extended until December 2027) to encourage women to return to work. We also welcome the Government’s allocation of MYR720 million for women and youths to start their own businesses under TEKUN to lift and drive greater economic participation for this segment.
Raising productivity and enhancing human capital amongst women are key to putting our economy back on track. In line with our diversity, equity and inclusion focus, we rolled out 20 weeks’ paternal leave for mothers and fathers. Mak said.
