Datuk Sulaiman Mohd Tahir, group CEO, AMMB Holdings Bhd.
DATUK SULAIMAN MOHD TAHIR
Group chief executive officer
STRIKING a balance between addressing immediate economic challenges and laying the groundwork for sustainable growth, Budget 2024 reflects the government’s commitment to strengthening the nation’s socioeconomic development and driving long-term resilience and prosperity.
Crucially, the target to narrow the budget deficit from 5% to 4.3% of the gross domestic product (GDP) is indeed a welcome step in terms of enhancing the nation’s financial health.Recognising the pivotal role of small and medium enterprises (SMEs) in economic growth, the allocation of RM44bil which will go towards loans and credit guarantees for SMEs is set to further empower and enhance their competitiveness.
With RM2.4bil earmarked for micro-entrepreneurs and small traders through agencies such as Bank Negara, Bank Simpanan Nasional and Tekun, this is expected to spur greater opportunities and ease the financial burden of SMEs, which is certainly timely amid the current economic volatility.
Supporting this, the allocation of additional funds of up to RM25mil in matching grants with financial institutions under the existing i-TEKAD social finance programme is set to benefit more entrepreneurs.
Alongside this, the RM900mil loan funds available under Bank Negara will unlock potential for SMEs to move up the global value chain and increase productivity through automation and digitalisation.
Furthermore, the government’s focus on environmental, social and governance (ESG) principles reflects a forward-looking approach that integrates sustainability into economic policies.
The allocation of RM2bil for the National Energy Transition Roadmap charts a strategic course towards a more sustainable future for Malaysia. This is complemented by financing funds of RM200bil by financial institutions, providing further impetus for industries to transition towards a low-carbon economy.
Indeed, Budget 2024 is exceptionally people-centric and timely.
Maybank group president and CEO Datuk Khairussaleh RamliDATUK KHAIRUSSALEH RAMLI
Group president and chief executive officer Maybank and chairman of The Association of Banks in Malaysia
WE applaud the reinforced commitment towards fiscal discipline with a target of reducing fiscal deficit to 4.3% next year.
The budget aims to navigate the country through a new economic direction by alleviating cost of living, creating jobs, boosting global competitiveness and supporting a conducive investment climate.
The intent to further support the underserved and unserved sustainably is clear, and we welcome the proposed increase in tax exempt spend to 35% to encourage greater social impact programmes.
The allocation of an additional RM10mil to enhance the effectiveness of the National Scam Response Centre is highly important.
The banking industry is committed to working closely with Bank Negara on the setting up of a national fraud portal by mid-2024, where key data collected can be used to detect patterns and connections between the accounts used by scammer.
The continued emphasis on Islamic finance will further Malaysia’s competitiveness in the global halal market and its capabilities to provide value based Islamic banking solutions.
DATUK ABDUL RAHMAN AHMAD
Group chief executive officer
CIMB Group
Holdings Bhd
IN accelerating economic growth, we are encouraged to see measures to support micro, small, and medium enterprises (MSMEs) as well as supporting the startup ecosystem. These include, among others, RM2.2bil in total funding support for MSMEs to automate business processes, digitalise their operations, and increase their international footprint.
In addition, we laud the focus on environmental sustainability and food security with specific allocation for MSMEs that operate within these two crucial areas.
This will help support their growth and resilience, and subsequently future proof the socioeconomic well-being of all Malaysians.
Public Bank managing director and CEO Tan Sri Tay Ah LekTAN SRI TAY AH LEK
Managing director and chief executive officer
WHILE Budget 2024 will see a total expenditure bill of RM393.8bil, the government’s resolve on continuing to champion fiscal prudence is to be applauded.
Balancing the diverse needs of all can be a tall order. The government’s success in achieving this with Budget 2024 should therefore be commended. Issues like high living costs, implementation of socio-economic measures to uplift the poor and low-income groups, empowerment of small-scale businesses, economic reforms, promotion of investments, enhancement of food security, affordable housing, improvement of basic public infrastructure and essential public services were addressed, amongst many others.
Hong Leong Bank Bhd group managing director and CEO Kevin Lam
KEVIN LAM
Group managing director and chief executive officer
Hong Leong Bank Bhd
WE are very encouraged to see the follow-through announcement of additional details and actionable plans outlined in Budget 2024, covering not only the welfare of the rakyat, but also enhancing the MSMEs ecosystem, strengthening the Islamic banking positioning, combating financial scam and fraud incidences and providing welcoming policies to attract foreign direct investments.
This could serve as a solid foundation to propel Malaysia towards meeting the New Industrial Master Plan 3 and the mid-term review of the 12th Malaysia Plan, contributing significantly to the long-term sustainability of the Malaysian economy.
Tan Sri Leong Hoy Kum, Founder & Group MD, Mah Sing Group Bhd.
TAN SRI LEONG HOY KUM
Founder and group managing director
Mah Sing Group Bhd
MAH Sing commends the government’s plan in easing the current conditions of Malaysia My Second Home applications aimed at attracting foreign tourists and investors into Malaysia.
On top of this, the new initiatives under the visa liberalisation plan for easier employment procedure to attract strategic investors will give Malaysia an extra boost as the investment destination for this region.
These adjustments are expected to stimulate investment in both the Malaysian financial market and the country’s property industry.
The government’s announcement of increasing the guaranteed loans under Syarikat Jaminan Kredit Perumahan Bhd to RM10bil for the benefit of 40,000 required borrowers will make home ownership more accessible to first-time buyers and individuals without a steady income.
S P Setia Bhd president and CEO Datuk Choong Kai WaiDATUK CHOONG KAI WAI
President and chief executive officer
S P Setia Bhd
WE applaud the government’s special task force under the Local Government Development Ministry to address delayed and abandoned private housing projects.
Efforts to restore 256 projects, involving over 28,000 housing units, with a gross development value of RM23.37bil, are commendable. We are encouraged by the allocation of RM2.47bil for affordable housing projects in 2024, which will support the recovery of abandoned projects and contribute to housing development.
The special guarantee fund of RM1bil for reputable developers to restore abandoned projects is a positive step. The allocation of RM546mil to continue the People’s Housing Programme will provide much-needed housing with 15 projects expected to be completed next year.
We appreciate the government’s takeover of the Bandar Malaysia development, highlighting people-centric projects and affordable housing.
The proposal to impose a flat stamp duty rate of 4% on property transfers by non-citizens and foreign-owned companies is necessary to control land prices.
DATUK SERI DR AWANG ADEK HUSSIN
Chairman
Securities Commission
WE are encouraged by measures to spur a more vibrant ecosystem to encourage entrepreneurship in Malaysia. The allocation of RM100mil to the Malaysia CoInvestment Fund’s initiatives over the next three years and tax incentives for the equity crowdfunding market will stimulate investment into promising startups and small businesses.
In balancing the need to broaden the tax base, as well as supporting the fundraising needs for corporations of all sizes, we are grateful that the government has considered targeted exemptions on Capital Gains Tax impositions on activities relating to approved initial public offerings and venture capital. This would ensure continued fundraising activities in the capital market.
TAN SRI ABDUL WAHID OMAR
Chairman
Bursa Malaysia
WE are encouraged by the government’s support for the development of voluntary carbon market with additional tax deduction of up to RM300,000 for measurement, reporting and verification expenses related to carbon credit project development which can be deducted from sales proceeds from carbon credits traded on Bursa Carbon Exchange.
The enhanced commitment towards net-zero greenhouse gas emissions with RM2bil National Energy Transition Facilitation Fund and numerous incentives for adoption of electric vehicles (EVs) are most welcome.
Similarly, for nature conservation initiatives including increasing the Ecological Fiscal Transfer for Biodiversity Conservation to RM200mil, doubling the number of community rangers to 2,000 to curb illegal logging and mining and wildlife poaching, and pioneering the issuance of biodiversity sukuk of up to RM1bil must be lauded.
SUSHIL PUROHIT
Chief executive officer
Gentari
THE tax incentives aligned for EV players, together with the introduction of the Electric Motorcycle Usage Incentive Scheme, will decisively stimulate the transition to EVs.
This inclusive initiative, offering a rebate of up to RM2,400 to buyers with an annual income of RM120,000 and below, will enable a wider demographic of Malaysians to pivot towards green mobility.
These incentives will not only enable Malaysians to transition to green mobility in tandem with the booming global demand for EVs, but also contribute to the government’s target to have 10,000 EV charging points installed by 2025 under the Low Carbon Mobility Blueprint 2021-2030.
As more EVs hit Malaysian roads, there will be a greater impetus for stakeholders to install more charging points.
MAK JOON NIEN
Chief executive officer
Standard Chartered Malaysia
WE believe that tax reformation measures such as raising the Sales & Service Tax to 8%, with exception of the food and beverage and telecommunications industry, as well as introducing the Luxury Goods Tax, will positively contribute to Malaysia’s revenue efficiently and effectively.
As a facilitator of trade, we are fully supportive of the decision to prioritise future investments in high growth high value sectors via giving incentives on a tiering basis.
NG WEI WEI
Chief executive officer
UOB Malaysia
Budget 2024 is a pro-growth budget that strikes a fine balance between ensuring sufficient support for the domestic economy amid continued external challenges, while staying committed to fiscal prudence and enhancing the people’s well-being.
The measures announced such as the reinvestment incentives for high-value activities under the New Industrial Master Plan 2030, tax incentives for Global Services Hub, expansion of green technology tax incentives, and tax deductions for Voluntary Carbon Market will help strengthen the economy and pave the way for macro stability in the medium to long term.
