KUALA LUMPUR – Budget 2023, which is expected to be tabled later today, is being awaited with great anticipation by Malaysians from all walks of life as it will chart the nation’s vision in the coming year.
The rising cost of living, ringgit valuation, food security, job security and foreign direct investment (FDI) are among the key topics that are expected to be addressed as the country exits the pandemic era.
Putra Business School associate professor Ahmed Razman Abdul Latiff said in order to boost confidence in the ringgit, the government needs to encourage more FDI into the country and reduce reliance on imported products, especially agro-food.
“The government needs to encourage more exports, not just of products but services as well, by taking advantage of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) to make the ringgit more attractive,” he said.
“I’m hoping for a budget that is responsive to the current needs of the people, businesses, and industries, while maintaining focus towards sustainability and resilience,” he said.
He emphasised that Budget 2023 needs to be expansive but, at the same time, able to generate a new source of income to reduce the country’s already-high debt level.
Razman also argued that the ringgit’s performance would still be heavily affected by the economic situation in the United States, especially with the current strong demand for the US dollar, rather than the budget presented today.
He said the budget should ensure the current focus of keeping the inflation rate low is maintained.
He cautioned that another round of unchecked fiscal stimulus might pressure the inflation rate to rise further.
Razman added that with rumours of the 15th general election being around the corner, political conditions would also probably affect the ringgit’s performance. – Bernama, October 7, 2022
