KUALA LUMPUR – Budget 2023 is the right step in facing difficult challenges, especially amid global supply chain disruptions and rising food prices, said the Khazanah Research Institute (KRI).
Its chairman Tan Sri Nor Mohamed Yakcop said the New Industrial Master Plan 2030 to be announced is a significant step towards achieving high value-added growth.
“KRI believes that Budget 2023 can ensure inclusive and sustainable economic growth, instil confidence through institutional and governance reforms, and improve social justice,” he said in a statement.
He said targeted funding of RM1.5 billion by government-linked companies for local start-ups could encourage innovation-based economic growth.
In addition, a total of RM40 billion is also provided in the form of grants and loans for the business development of micro, small and medium enterprises.
Additional funding for digitisation and automation is also available to enable businesses to remain viable and competitive.
“Measures to empower the potential of low-income households through the People’s Income Initiative, incentives for employers to increase wages for target groups, as well as tax rate reductions for M40 households, truly reflect the concept of well-being for all Malaysians,” he said.
In the meantime, the extension of the Social Security Organisation’s social protection to those who are self-employed through an 80% contribution by the government, as well as a contribution of RM500 to EPF Account 1 for those aged 40-54 years with low retirement savings, is a significant initiative for the well-being of low-income groups.
In dealing with the increasing risk of climate change, the focus of Budget 2023 is also translated through increasing the Ecological Fiscal Transfer to protect natural treasures.
Budget 2023 was presented in Parliament yesterday by Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister.
With the theme “Developing Malaysia Madani”, it focuses on 12 main initiatives based on three aspirations, namely, inclusive and sustainable economic drive, institutional and governance reforms to restore confidence, and social justice to moderate disparities.
This is the first budget presented under the Anwar-led unity government. – Bernama, February 25, 2023
