KUALA LUMPUR: Budget 2025’s RM86bil development expenditure sets a strong foundation for sustainable economic growth but it requires close collaboration between the government and private sectors, says the National Chamber of Commerce and Industry of Malaysia (NCCIM).
NCCIM president Datuk Seri N. Gobalakrishnan said the significant allocation for development would enhance national consumer confidence but it will only happen once it is fully utilised for the rakyat.
“It’s a promise of new infrastructure, modernisation and progress. This injection will boost our economy, stimulating domestic consumption and breathing life into various sectors,” he said in a press conference at Menara Matrade here yesterday.
He added that the RM50mil for industry digitalisation grants, RM750mil for the Exporter Sustainability Incentive Scheme and RM40mil under Malaysia External Trade Development Corporation (Matrade) would enhance the productivity and competitiveness of local businesses to match foreign competition.
Gobalakrishnan also praised the support for local small and medium enterprises (SMEs) through its RM600mil special financing for halal SMEs under Budget 2025.
“Combined with the RM40bil business financing guarantee scheme and RM50mil for SME Digital Matching Grant and Vendor Digital Grant, this will keep local entrepreneurs competitive in the market.
“The new RM1bil Green Technology Financing Scheme will also help open up new business opportunities in our green economy revolution for these entrepreneurs to pursue while contributing to a sustainable future,” he said.
He also said the RM7.5bil for technical and vocational education and training (TVET) will be key to solving the current skilled workers shortage for local businesses.
Gobalakrishnan said that concerted efforts by both public and private sectors would make the projected gross domestic product (GDP) growth of 5.5% achievable.
“We at NCCIM look forward to playing our part to ensure the Budget benefits reach businesses effectively.
“We urge the government to maintain an open dialogue with industry stakeholders and remain flexible in adapting policies as economic conditions evolve,” he said.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) Environmental, Social and Governance Committee chairman Teoh Kok Lin said the positive forecasted economy would drive more investment to the country.
“For years, one of the biggest concerns among all stakeholders has been the increasing budget deficit and debt to GDP ratio.
“But with debt forecasted to decline to RM80bil in 2025 from RM85bil in 2024 and total expenditure marking a new record high of RM421bil in 2025, there will be better investor confidence,” he said.
However, Teoh said the ongoing brain drain of talents out of the country still needed to be addressed.
“The government must conduct studies to identify the pull factors of foreign countries that entice Malaysians away and the push factors in our country.
“The government should also consider more friendly and progressive policies to attract foreign talents,” he added.
