KUALA LUMPUR – The absence of a prosperity tax in Budget 2023 will augur well for the capital market, said Bursa Malaysia chairman Tan Sri Abdul Wahid Omar.
He said this is a huge positive factor for the corporate sector, which would have potentially shaved off the FTSE Bursa Malaysia KLCI’s 2023 earnings per share (EPS) forecast by 5 to 6%.
“Without such a tax being imposed, analysts have a consensus forecast EPS growth rate of 11.5% for 2023 compared to -1.1% for 2022. This augurs well for the capital market,” he said in a statement.
Wahid also applauded the Budget 2023’s commitment to long-term financial sustainability and to building Malaysia’s resilience in facing any future crisis.
He said the commitment to reduce the fiscal deficit to 5.5% of gross domestic product in 2023 from 5.8% in 2022 and further to an average of 4.4% for 2023-2025 must be lauded.
The continued commitment towards sustainable development is also most welcomed, and overall, Budget 2023 is a positive budget, he said. – Bernama, October 7, 2022
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