KUALA LUMPUR (Oct 27): The banking sector has responded positively to Budget 2018, applauding the central theme on inclusiveness which sees initiatives to address the need to reduce income inequality, narrow the wealth distribution gap and bring socio-economic development to all Malaysians.

CIMB Group’s Group Chief Executive Datuk Sri Zafrul Aziz said the Budget appears to be a carefully crafted one, addressing the rakyat’s immediate concerns while forward-looking enough to ensure the nation’s future economic, social and spiritual development.

“The focus on building more than 385,000 affordable homes shows that the government is taking firm steps to address head-on the challenge of home ownership for the lower-income group. Extending PR1MA’s step-up financing scheme to private housing developers is also a laudable move towards facilitating home-ownership,” said Zafrul in a statement.

Public Bank Bhd chairman Tan Sri Teh Hong Piow said the theme on inclusivity will also help set the direction for the nation to embark on the journey towards the National Transformation 2050 (TN50),

RHB group managing director Datuk Khairussaleh Ramli said one clear focus of this Budget is to "shape the future" for all Malaysians, with emphasis on investments in infrastructure, education, and skills and talent development, which will boost growth and make the economy more inclusive.

“We consider it a well-rounded and disciplined Budget that should lead to revenue generation and reduction of fiscal deficit to 2.8% of GDP, hence boosting consumer and investor sentiment,” said Khairussaleh.

The government expects the fiscal deficit to reduce to 3% of gross domestic product in 2017, improving to 2.8% in 2018. Revenue collection is expected to record RM239.86 billion.

Standard Chartered Bank Malaysia’s managing director Mahendra Gursahani added that the government’s focus to improve fiscal discipline will dispel the negative perception that the government is not concerned.

Gursahani added that as a leading Islamic finance provider, Standard Chartered welcomes the government’s decision to stimulate Sustainable and Responsible Investment (SRI) in Malaysia through tax exemptions on Green Sukuk, which will help to facilitate its growth and strengthen the bank’s position as a key driver in the Islamic financial market.

“We appreciate the government’s efforts to further invigorate the capital market by introducing the Alternative Trading System (ATS). The demand for ATS in South East Asia is growing, and we are eager to see how this can drive capital market growth, bring improvements in execution speed, and reduce transaction cost,” said Gursahani.