Friday 29 Mar 2024
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This article first appeared in The Edge Malaysia Weekly on October 14, 2019 - October 20, 2019

DATUK Abdul Farid Alias

Group president and CEO, Maybank, and chairman of the Association of Banks in Malaysia

Budget 2020 seeks to strike a balance between the immediate and medium-term needs of the country.

Prime Minister Tun Dr Mahathir Mohamad started Malaysia on a march towards becoming a “cyber” nation in 1996, ahead of other countries back then. The 1997/98 Asian financial crisis diverted our attention and now we need to get back on track.

There is an array of customised incentives targeted at stimulating investments and developing enabling infrastructure for 5G technology and Industry 4.0, which shows the government’s commitment to accelerate economic growth, supported by the growth in the digital economy.

There is also an initiative to encourage SMEs to digitise their operations. Perhaps, what we can add to this area is an effort to reskill the workforce and curate an environment where an evolution towards digital immersion is not only allowed but also encouraged.

We are glad to see the objective to maintain fiscal discipline. It is important to do this when we can do so, so that when we do not have much choice, we will still have other tools at our disposal.

We believe that the enhancements and additions to funding schemes by the government and development financial institutions to complement banking industry financing for SMEs and entrepreneurs are positive and will enhance the growth of these sectors. We believe SMEs are under-represented in our economy and this initiative can help them expand.”

 

Brian Sim

Managing director and country head, Kelly Services, Malaysia

In addition to the government’s allocation of RM500 million to Skim Jaminan Pinjaman Perniagaan, which is earmarked for women entrepreneurs, it is encouraging to see the government continue its efforts to achieve its 30% target through the introduction of #WanitaKerja (Women@Work) programme in Budget 2020. The programme aims to create 33,000 job opportunities for women aged between 30 and 50 each year.

The salary incentive of RM500 a month for two years for these women, along with the RM300 per month incentive for employers, will undoubtedly act as a pull factor for both employers and female employees to bolster the nation’s workforce.

This is a very realistic approach taken by the government to help empower female employees to return to work. It also encourages employers to start taking a more aggressive approach to recruiting more women in their organisations. However, it must be noted that while employment on its own is good, employers must think of ways to retain these employees in order to continue receiving the incentives from the government whilst building a long-term partnership with the employees.

A good first step would be to create a work culture that is conducive to women (especially mothers), who need to balance their responsibilities towards their family and their job. To this end, flexible work policies and the establishment of day-care centres within the organisation would go a long way towards retaining this segment of the workforce.

 

Datuk Khairussaleh Ramli

Group managing director, RHB Banking Group

Budget 2020 is comprehensive. It has an eye trained on fiscal discipline and at the same time emphasises stimulating the economy and strengthening public welfare.

Its emphasis on education will increase job opportunities and increase earning capability, in line with the recently launched Shared Prosperity Vision 2030.

The budget also offers incentives to attract global unicorns involved in high-tech areas, boosting foreign direct investment. This will, in turn, significantly benefit local SMEs. In addition to that, the government also encourages SME transformation through digitalisation and automation, and being more export-oriented. This will boost the efficiency and productivity of SMEs.

We are also excited about the developments in the digital space, especially in the ongoing digital transformation drive with the issuance of virtual bank licences as this will indeed accelerate shifts within the banking industry, which is in line with RHB’s FIT22 strategic aspirations.

 

Tan Sri Teh Hong Piow

Founder and chairman, Public Bank Bhd

The government is cognisant of driving growth in the new economy and digital era. We welcome the measures to make Malaysia a preferred destination for investment, accelerating the digital economy, enhancing access to financing for businesses as well as strengthening the diversity of the Malaysian economy. We also note that the government is developing the relevant infrastructure to enhance the ecosystem to drive growth, for example, economic zones, transport, 5G connectivity and digital applications.

We will continue to play our role as a financial intermediary in support of the government’s measures to facilitate financing access to businesses, particularly the small and medium enterprises. In addition, we will continue to support financing for affordable housing in line with the government’s efforts to increase homeownership.

 

Datuk Khor Chap Jen

President and CEO, S P Setia Bhd

We applaud the government’s initiatives in Budget 2020 to raise the ceiling price of homes made available under the rent-to-own scheme, from RM300,000 to RM500,000, as this will give first-time homebuyers more options to choose from.

The increase in the allocation for the scheme, from RM1 billion to RM10 billion, including a guarantee of RM3 billion by the government, shows that it sees homeownership as a critical issue for the rakyat.

However, it is noted that under the current scheme, only RM156.2 million worth of loans were approved. We hope the lending guidelines and criteria will be reviewed, especially for first-time homebuyers for them to benefit from the scheme.

The reduction in the foreign ownership threshold value for unsold condominiums and apartments located in the city areas from RM1 million to RM600,000 will help reduce the overhang of these properties as developers can market these products to foreign buyers. We hope that the state authorities will follow suit on this criterion.”

 

Nik Amlizan Mohamed

Chief executive, Lembaga Tabung Angkatan Tentera

LTAT welcomes the 12% increment in the budget allocation for the Ministry of Defence from RM13.9 billion to RM15.6 billion for the 2020 fiscal year. This increment bodes well for us, given that it provides opportunities to companies in the current LTAT stable that are key participants in the maritime sector with current projects with the ministry.

In addition, the government’s move to expand Bantuan Sara Hidup is indeed great news, particularly for our Armed Forces veterans. This timely measure will help our veterans better manage the rising cost of living.

We are particularly pleased with the rent-to-own financing scheme that was announced as it will positively impact our ability to sell the unsold condominiums owned by LTAT.

With people-centric measures that are grounded in the reality of our current economic climate, LTAT is positive that Budget 2020 will stimulate a year of shared growth.

 

Tengku Zafrul Aziz

Group CEO, CIMB Group

We laud the sharper focus on advancing the nation’s digital transformation while also ensuring the benefits will be broad-based, enabling all segments of society to capitalise on the country’s enabling of 5G and other new technologies.

This is clear from the tax incentives for knowledge-based foreign investors and encouraging a cashless society to piloting technology such as autonomous vehicles and blockchain.

As a strong proponent and enabler of digital banking, we welcome the initiative to advance the nation’s cashless agenda by boosting the use of e-wallets through the one-time RM30 digital stimulus per qualified Malaysian.

Further, the enabling policies for SMEs to embrace digital in running their business are well thought out. Going digital is crucial for them to capitalise on the potential afforded by the regional and global e-commerce industry.

Overall, it is a budget with a good combination of conservative and creative measures that will collectively drive the nation towards a path of long-term sustainable and inclusive growth.

 

Datuk Ong Eng Bin

CEO, OCBC Bank

We are glad that despite the lower revenue projected for 2020, the government was pragmatic enough to surpass its earlier budget deficit targets. This is a good move that helps to support the local economy amidst the uncertainties brought about by the ongoing US-China trade war and the slowing global economy. We are heartened by the focus on growing the digital economy as well as the incentives and exemptions provided for green investments. At the same time, it is timely that incentives are in place to reduce our dependency on foreign labour. For the man in the street, whose key concerns are the rising cost of living and prices, it certainly comes as a great relief that GST will not be reintroduced despite earlier speculation to the contrary. Overall, this is a decent budget for all amidst the significant challenges faced.

 

Surina Shukri

CEO, MDEC

The government has allocated RM20 million to create a conducive, inclusive and competitive digital content ecosystem. With over RM7.6 billion in revenue, a fast growing RM1.3 billion export revenue and over 10,000 jobs, this industry is poised for the next stage of growth.

The government has also set aside RM10 million for MDEC to train micro-digital entrepreneurs and technology experts to leverage e-marketplaces and social media platforms.

In our view, Budget 2020 marks an inflection point in the government’s steering of the digital economy. We are turbo-charging Malaysia to become a nation driven by technology and innovation by building world-class infrastructures, investing in people and ecosystems, as well as implementing various catalytic industry programmes and initiatives.

 

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