KUALA LUMPUR (Oct 29): The RM332.1 billion Budget 2022, Malaysia's largest budget to-date, sets out a holistic plan to rehabilitate Malaysia's socio-economy by providing support to segments of its people and businesses impacted by the Covid-19 pandemic, while catalysing the economy to ensure that growth returns stronger and is more sustainable, said MIDF Research.

"Measures such as 'Bantuan Keluarga Malaysia' with RM8.2 billion allocation, multiple initiatives to enhance areas of education, training and upskilling, and acknowledging the role of women in our society via various women development measures highlight this," the research house said in a statement.

Supporting and boosting business activities, especially for the micro, small and medium enterprises, have also been given strong emphasis, it noted.

"With the recovery in economic activities and the creation of new job opportunities, in tandem with the wage support provided by the government, these activities would contribute towards ensuring a lower unemployment rate next year. We believe that employment will return to its growth path," it said.

MIDF Research is also not surprised by the expansionary budget, especially with the larger development expenditure of RM75.6 billion, with the majority going to fund ongoing projects while the funding for new projects amounts to RM8.7 billion. "Projects and programmes with high multiplier impact will continue to be focused on, especially in transport, trade and industry, as well as energy and public utilities," it noted.

Meanwhile, the research house views positively that credence has been given to strengthen entrepreneurial capabilities including MSMEs, agriculture sub-sector, education and training, and the healthcare system. This, it believes, falls in line with the aspiration of the 12th Malaysia Plan and will provide the necessary impetus for the economy's recovery.

The government is projecting that Malaysia's economy will stage better growth next year, with a gross domestic product growth of 5.5%-6.5% in 2022, versus the 3%-4% estimated for this year.

MIDF, which is more optimistic about 2021's growth with an estimated 4.6% growth, is similarly expecting the economy to continue its recovery path in 2022.

In the same statement, MIDF group managing director Datuk Charon Mokhzani said this national budget will help the country recover from the effects of the pandemic and set it on the right path towards long-term growth.

In particular, Charon welcomed the cash aid to those in need as well as the focus on education and children. "The government has maintained a balance between investing for the future, such as in technology and enhancing TVET (technical, vocational education and training), while at the same providing aid to those who have been badly affected by the pandemic," he said.

See more Budget 2022 highlights here.