KUALA LUMPUR: The 2023 Budget seeks to balance the need for sustained domestic growth amid global economic headwinds while ensuring fiscal prudence given the current volatility seen in financial and currency markets.
Malayan Banking Bhd (Maybank) group president and chief executive officer Datuk Khairussaleh Ramli said the bank welcomed budget allocations, tax incentives and fiscal measures that supported domestic economic growth.
These initiatives are channelled towards themes of inclusivity, equality, sustainability, security and building resilience, which applies to all segments of society and business sectors.
"Such incentives and measures are demonstrated through the two percentage points reduction in personal and SME (small and medium enterprise) income tax rates, the enhancements in financial assistance and welfare payments to lower income and vulnerable groups and re-building of retirement and voluntary savings, among others.
"Other measures that help continue to build the nation's and people's resiliency include the incentivising of human capital development and job creations, and prioritisation of rural areas and less developed states," he said in a statement.
Khairussaleh is also the Association of Banks in Malaysia (ABM) chairman.
He said equally important was that the budget laid the foundations for fiscal reforms, starting with the shift to targeted subsidies.
"This must be complemented by sustainable revenue sources to reduce dependence on volatile commodity-related incomes and one-off tax revenues as seen in 2022," he said.
He added that the budget 2023 also highlighted the latest measures that would be adopted by the banks in the country to combat financial scams as announced recently by Bank Negara Malaysia.
"This includes the migration from SMS One Time Password to a more secure authentication method for certain transactions including fund transfers and payments, change of personal information and account settings. Banks will also have a 24/7 dedicated complaint channel/hotline for customers to report incidents of scams/fraud.
"On top of this, a National Scam Response Centre involving Royal Malaysia Police (PDRM), Bank Negara, the Malaysian Communications and Multimedia Commission (MCMC) and the financial institutions will be launched soon.
Khairussaleh said Maybank supported the continued emphasis to drive the environmental, social and governance (ESG) and climate change agenda.
"ABM members have already agreed on a set of seven broad ESG principles for the Malaysian banking industry.
"This includes the commitment to achieve Carbon Net Zero across the entire business and financed customer portfolio, incorporate ESG into governance and risk management, as well as the commitment to identify, mitigate and manage risks of modern slavery and human rights across the supply chain," he said.
Source: https://www.nst.com.my/business/2022/10/839098/2023-budget-balance-need-sustained-domestic-growth-says-maybank-president