KUALA LUMPUR (Sept 27): The Government may likely place a lot more emphasis on economic development that uses technology to make advancements in the upcoming Budget 2018, according to RHB Research Institute Sdn Bhd.
In a Pre-Budget 2018 note today, the research house said it believes the Government is shifting its focus from previous budgets (ie fiscal discipline) to one that emphasises on the country’s aspirations for the next 30 years under Transformasi National 2050 (TN50).
“In this regard, we believe that the Government’s measures and incentives would likely focus on the following in the upcoming budget:
1. Setting the foundation for TN50;
2. High-technology industries in areas of automation, robotic development, big data, cloud computing, etc;
3. Tackling the rising cost of living;
4. Further development of SMEs and affordable housing,” it said.
RHB Research said the budget would most likely have a positive impact on the construction sector amid higher allocation for development spending, along with ongoing large infrastructure projects.
“Also, government initiatives to aid spending are expected to benefit the consumer sector.
“Considering that the next general election is coming up, we reasonably believe that the Government would prefer to keep the existing property cooling measures in place so that price increases can be contained,” it said.
RHB Research said the 2018 budget would likely be a non-event for the auto, gaming and brewery & tobacco sectors, as fiscal changes related to the automotive sector are typically implemented through the National Automotive Policy, while it does not expect sin tax hikes in this budget.