KUALA LUMPUR (Oct 7): Chiefs of government-linked investment companies (GLICs) have welcomed Budget 2023 which entails the government continuing its spending spree with total expenditure of RM372.3 billion.
Presenting the Budget in Parliament on Friday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said it would ensure the well-being of the people, business continuity, economic prosperity and the efficiency of government services.
Below are excerpts of comments by GLIC leaders on Budget 2023:
Datuk Amirul Feisal Wan Zahir
Managing director of Khazanah Nasional Bhd
The Budget has been in line with the focus of the Ministry of Finance to be responsive to the short-term needs of people and businesses, and also on being responsible and reformist in building resilience. It forms a comprehensive policy package towards reinforcing Malaysia’s economic recovery, strengthening Malaysia’s overall resilience against future storms, advancing the agenda of inclusive and sustainable development, as well as implementing serious reforms for the nation to thrive in the new global environment.
Khazanah and our investee companies are excited to play our part in delivering the various initiatives within Budget 2023. Tenaga Nasional Bhd will pilot rural internet projects benefiting more than 60,000 rural residents as well as drive the clean energy transition through investing RM165 million in rooftop solar and EV charging infrastructure until 2025.
As part of Khazanah’s Advancing Malaysia agenda, Dana Impak is on course to help increase Malaysia’s economic competitiveness and national resilience. Dana Impak will allocate RM1 billion for strategic investments for the nation across its six themes. Of this, RM230 million has been identified for digitalisation and technology, focusing on building up the domestic start-up ecosystem and talent pool, RM200 million for investments in projects which seek to increase agrifood smallholders’ productivity and income, and RM150 million for supporting the development of nature-based solutions for Malaysia’s carbon markets ecosystem.
Taking an ecosystems-based approach, Khazanah will continue to seek and implement projects along the six Dana Impak themes, namely, Digital Society and Technology, Quality Health and Education for All, Decent Work and Social Mobility, Food and Energy Security, Building Climate Resilience and Competing in Global Markets. We believe this requires an all-of-Malaysia approach, and welcome partners as well as collaborators with shared goals.
Overall, Budget 2023 is another crucial step forward in Malaysia’s journey towards growing a competitive, inclusive and sustainable economy. While global conditions remain challenging, Budget 2023 promises to steer us on the right course towards a more positive future, in tandem with Khazanah’s overall long-term strategy of Advancing Malaysia.
Nik Amlizan Mohamed
Chief executive officer of Kumpulan Wang Persaraan (Diperbadankan) (KWAP)
KWAP along with fellow GLICs and GLCs will be investing up to RM50 billion in 2023. We are particularly keen on ensuring that our investee companies are fully environmental, social and corporate governance (ESG)-compliant and focused on carbon-neutral operations.
We can only have sustainable economic growth if we have food security, particularly a Malaysia-owned food security strategy. The Government’s initiative to highlight food security as one of the focus areas for this year’s Budget is indeed timely.
The fact that RM1 billion has been allocated for the Central Bank to drive its Malaysia Agrofood Financing Scheme focused on facilitating productivity improvement for entrepreneurs, augurs well for the future of Malaysia’s food security.
KWAP is also focused on impact investing in the area of food security as it will have direct positive spillover benefits for Malaysians as well as the nation’s sustainable development.
The Budget also champions the importance of women in Malaysia’s workforce. To this end, we are pleased to note that the contribution of women is being recognised through a five-year tax exemption for those returning to work after a career break.
Datuk Seri Amrin Awaluddin
Managing director and CEO of Lembaga Tabung Haji (TH)
It is a comprehensive Budget aimed at assisting Keluarga Malaysia. GLCs and GLICs will continue to support the government's efforts and strive to work together in strengthening the country's economic resilience amid external uncertainties.
TH will also continue with the targeted Haj Financial Assistance, funded from its investment income, to all Muassasah pilgrims although the cost of Haj is expected to rise to about RM31,000 per person next year compared with RM28,632 this year.
Get our comprehensive coverage of Budget 2023 here.