KUALA LUMPUR: At the outset, the retabled 2023 Budget commits to fiscal consolidation with further reduction in budget deficit to gross domestic product ratio to 5.0 per cent this year and to 3.2 per cent by 2025.
However, Malayan Banking Bhd group president and chief executive officer Datuk Khairussaleh Ramli believes the government will continue to remain steadfast in addressing issues like high cost of living, better-paying jobs and adequacy of retirement savings.
Equally important, he said, the budget was not just about medium-term fiscal sustainability but also broader aspects of longer-term sustainability.
This includes protecting biodiversity, preserving environment, greening the economy and addressing climate change.
The government, Khairussaleh said, would also continue to implement measures for socio-economic uplift of the poor and low-income groups, and the masses and businesses as a whole.
This includes reducing tax for middle-income taxpayers, empowering MSMEs, promoting investment, boosting tourism, enhancing food security as well as improving basic public infrastructure and essential public services.
"These are balanced with redistributive and progressive tax proposals such as increases in tax rate of higher income taxpayers, luxury goods tax, capital gains tax on disposal of unlisted shares and excise duties on vape products, coupled with strengthening governance and effectiveness of public spending," said Khairussaleh, who is also chairman of the Association of Banks in Malaysia.
"We welcome the budget initiatives that are relevant to the financial sector, including tax incentives for ACE and LEAP listings and Bankruptcy Act reform which will catalyse entrepreneurship, the renewed focus on Islamic finance and the proposed consumer credit act and monitoring authority to create a level regulatory playing field," he added.
Source : https://www.nst.com.my/business/2023/02/883347/budget-broader-aspects-longer-term-sustainability-maybank-president