Budget 2024 to focus on cost of living and ways to keep price of goods low
BUKIT MERTAJAM: The Federal Government has underlined the M40 group to get the bulk of the incentives under Budget 2024 to help them cope with the cost of living.
Deputy Finance Minister Steven Sim said a key strategy of Budget 2024 would be to help this group and also the small and medium-sized enterprises (SMEs).
“The issue here is not only productivity but also increasing the income of the middle class and at the same time finding ways to keep the cost of goods low for the people to benefit from real income,” he said after chairing a Budget 2024 Dialogue Roadshow here yesterday.
On the SMEs, Sim said there was a perception that they were seen as “second class” compared to foreign direct investments (FDIs), although the government had never regarded them as such.
“Yes, we are chasing FDI. But domestic direct investments (DDIs) are of utmost importance in providing jobs and they are a direct catalyst of our economy and the GDP,” he said.
Warm reception: Sim (centre) meeting with attendees after the dialogue session on Budget 2024 at a hotel in Bukit Mertajam. — ZHAFARAN NASIB/The Star
Earlier, when opening the dialogue session, Sim said the government’s focus was not to collect taxes from businesses but to ensure industries make profit from various incentives provided.
“We believe in businesses making good profits and the taxes will enable the government to fund the various strategies for economic growth.”
Sim said the government had set certain targets, such as improving the country’s global competitiveness which was ranked at number 27 now.
“The target is to be among the Top 12 and be among the largest Top 30 economies in the world,” he added.
As such, he said, the focus would be to lower the Budget deficit over the next two years to 3% of the GDP with prudent financial management.
Sim said that the RM40bil loan facilities, grants and financing guarantees provided under Budget 2023 had been a catalyst for the growth of SMEs after the Covid-19 pandemic.
About 300 people from various industries and non-governmental organisations attended the three-hour session.
