KUALA LUMPUR (June 3): Budget 2023 will prioritise reinforcing economic recovery momentum, enhancing the nation's competitiveness and facilitating reforms to strengthen economic resilience against future shocks while consolidating the fiscal position, said the Ministry of Finance (MoF).
In its pre-budget statement issued on Friday (June 3), the ministry said that as the recovery momentum gains traction in the post-Covid-19 period, the government will also focus more on reforms to improve people’s wellbeing, particularly income and social protection.
The statement said Budget 2023, which is slated to be tabled in Parliament on Oct 28, will be formulated in a way to ensure it is not just a recovery in gross domestic product (GDP) terms, but also a job and income recovery for Malaysians and businesses.
“Budget 2023 will emphasise a more sustainable fiscal position by improving revenue and expenditure efficiency; improving the rakyat’s wellbeing through increasing the income of the rakyat, improving social protection and providing government assistance in a more targeted manner,” said MoF.
It added that the national budget will also aim at driving the business sector by enhancing the competitiveness of small and medium enterprises, increasing productivity, and focusing on new growth opportunities.
Going into 2023, MoF said economic activities are expected to be fully normalised with improving consumer sentiments and increasing labour demand, resulting in more job opportunities while the income prospect is projected to improve, coupled with a more manageable inflation outlook.
“To achieve these outcomes, various initiatives and strategies to increase the income of the rakyat will be continued,” the ministry said.
“Among others, the main initiatives will focus on continuing the upskilling and reskilling programmes, enhancing productivity through digitalisation of economic activities and ensuring a decent wage among citizens including through a revision in the minimum wage,” the statement read.
MoF said strategies to expedite automation and high-value added in production activities will also be strengthened to encourage the creation of more high-paying jobs.
To ensure a more balanced development nationwide, the ministry said the government aims to attract high quality investment to all economic corridors.
“Therefore, emphasis will be given on improving business ecosystems, creating more jobs, and improving infrastructure in less developed regions or states, namely Sabah, Sarawak, Kelantan, Terengganu, Kedah, and Perlis,” it said.