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Towards the right direction

PETALING JAYA: The recent Budget 2020 announcement was received with welcome by some of the country’s leading businesses in various industries.

With the various measures laid out in the Budget, which charts the path for the country’s development, the industry players hope that next year’s economy will not only continue being resilient but also maintain its steady growth trajectory.

RHB Banking group managing director Datuk Khairussaleh Ramli said that the Budget was a comprehensive one, applauding the government’s fiscal disciplinary measures and continued focus on addressing the people’s welfare, particularly in improving the quality of life for the middle income (M40) and lower income (B40) segments.

“It has an eye trained on fiscal discipline and at the same time emphasises on stimulating the economy and strengthening public welfare, ” he opined, adding that the emphasis on education will increase job opportunities and increase earning capability, in line with the recently launched Shared Prosperity Vision 2030.

Moreover, he stressed that the government incentives offered to attract ‘global unicorns’ involved in high-tech areas will boost foreign direct investment (FDI) and in turn significantly benefit local small and medium enterprises (SMEs).

He said, “In addition to that, the government also encourages SME transformation through digitalisation and automation and being more export-oriented. This would further boost efficiency and productivity of the SMEs.

“We are also excited with developments in the digital space, especially in the ongoing digital transformation drive with the issuance of virtual bank licenses, as this would indeed accelerate shifts within the banking industry, which is in line with RHB’s FIT22 strategic aspirations.”

PUBLIC BANK BHD founder, chairman emeritus, director and advisor Tan Sri Dr Teh Hong Piow also lauded the holistic approach of the Budget.

“Budget 2020 has outlined a wide range of initiatives, action plans, fiscal measures and incentives seeking to address the challenges that Malaysia is facing, which include setting the new growth direction, intensifying growth momentum, addressing the high cost of living and increasing the income level of the rakyat, ” he noted.

This is reflected, he said, through the measures to make Malaysia a preferred destination for investment and driving growth in the new economy and digital era, as well as enhancing access to financing for businesses and strengthening the diversity of the country’s economy.

One example he pointed to was the development of relevant infrastructures to enhance the ecosystem to drive growth, such as economic zones, transportation, 5G connectivity and digital applications.

Public Bank, Teh affirmed, will continue to play its role as ‘a financial intermediary in support of the government’s measures’ in facilitating financing to businesses, especially SMEs. It will also continue supporting financing for affordable housing in line with governmental effort to increase home ownership.

He added, “As a bank, we will strengthen our efforts to promote higher adoption of e-payments among our customers, in support of Malaysia becoming a cashless society.”

Supporting businesses

Standard Chartered Bank Malaysia Bhd managing director and chief executive officer Abrar A Anwar also lauded the government’s targeted measures to promote economic growth, drive FDIs and help local companies to grow and connect globally.

He pointed to the welcome move by the government to introduce special investment packages worth up to RM1bil a year for a five year period to Fortune 500 companies, “global unicorns” and local companies looking to grow internationally.

Abrar also highlighted the RM300mil allocation to support SMEs with the potential to become regional players as a driver to the continued growth of SMEs and entrepreneurs, leading to a robust economy.

In addition, he said that Standard Chartered was in support of the government’s commitment to move Malaysia towards a digital economy through various tax incentives, setting up one-stop digital improvement centres nationwide, as well as stimulation packages to boost e-wallet adoption.

“We are also looking forward to the availability of virtual bank licenses by Bank Negara in 2020… we laud the government’s decision to continue supporting new digital financing innovations such as equity crowdfunding and peer-to-peer platforms, ” he said.

Continued tax exemptions on shariah-compliant and sustainable and responsible investment funds, he added, will further spur the growth of the country’s Islamic capital market.

Another area Abrar touched on was the acceleration of gender parity and women empowerment, which is important to Standard Chartered’s diversity and inclusion agenda.

He said, “In this regard, we laud the government’s guarantee schemes worth RM500mil to provide working capital financing to women entrepreneurs as well as the Women@Work initiative. Raising productivity and enhancing human capital amongst women are essential for sustainable economic growth.

The Women@Work initiative aims to create 33,000 job opportunities a year for women aged between 30 and 50 years.

Brewery industry player HEINEKEN MALAYSIA BHD managing director Roland Bala, on the other hand, commended the government’s decision to maintain current tax rates, including the excise duties on beer and the Sales and Services Tax.

“The excise on beer in Malaysia is already amongst the highest in the world, resulting in a big gap between duty paid and duty not paid beers and stouts. This wide gap has led the influx of illicit trade to thrive over the years.

“We also thank the government and the Royal Malaysian Customs Department for their ongoing efforts in addressing the illicit alcohol issue, as this represents revenue leakages to both government and industry, ” it said in a statement.

For the nation’s betterment

For property stalwart MAH SING GROUP BHD founder and group managing director Tan Sri Leong Hoy Kum, the lowering of the high-rise property price threshold for foreign ownership in urban areas from RM1mil to RM600,000 next year will be positive for the sector, as there is growing interest in Malaysian properties among these potential buyers.

“Foreign buyers are a blue-ocean pool of potential buyers, which can reduce the overhang of properties at this price point. It is crucial that respective state governments respond to this positively and revise their ceiling price accordingly, ” he opined.

He cited the encouraging response from foreign buyers at a recent Hong Kong private event showcasing 10 of its projects as “a testament that our properties are competitive at the international level” that the property group will continue to promote to overseas buyers.

In addition, he expressed appreciation for the government’s willingness to listen to market feedback in improving the Real Property Gains Tax (RPGT) policy. Under the new Budget, the policy revises the base year of Jan 1,2000 to a later date, thus enabling sellers to pay lower RPGT.

He said, “We hope continuous improvements to the RPGT policy can be considered to boost more interest and activities in the secondary property market, as many buyers are looking to upgrade after disposing their older units.”

The announcement of the new rent-to-own (RTO) scheme for properties up to RM500,000, he added, is also favourable as an alternative option for home ownership for first-time homebuyers, who face difficulties in coming up with the initial 10% downpayment and securing end-financing.

“We believe that the RTO scheme would help to stimulate the market as first-time homebuyers are now given aid and flexibility to own their preferred homes at the agreed purchase price during the leasing tenure, once their financial position strengthens.

“We also commend the government for providing stamp duty exemptions on the instruments of transfer in this scheme, as this helps to reduce the financial burden that first-time homebuyers need to bear when purchasing a home, ” he said.

Another area Leong highlighted was the extension of the Bank Simpanan Nasional Youth Housing Scheme, as the initiative to help youths and young married couples to own their first homes has been extended from Jan 1,2020 to Dec 31,2021.

The scheme is offered for financing the purchase of completed, under construction or sub-sales properties priced from RM100,000 to RM500,000.

He explained, “Obtaining a housing loan has been the number one challenge of owning a home, hence offering a 10% loan guarantee to enable borrowers full financing and RM200 per month installment assistance that will be credited to the customer’s financing account for two years will greatly help more youths and young married couples to own their first home.”

On behalf of Mah Sing’s corporate responsibility arm, Mah Sing Foundation, he lauded the initiatives by the government to empower the B40 communities and under-served children through education, community development and healthcare.

Among the initiatives announced by the government in Budget 2020 include the RM23mil allocation to equip national schools across Malaysia with disabled-friendly facilities, the RM735mil for the upgrading and maintenance of schools and the RM783mil to build and repair schools in dire need.

“These allocations will benefit students across Malaysia, especially those who are from the B40 families, ” he said.

Leong also welcomed the continuation and improvement of the Bantuan Sara Hidup to the B40 group by providing more assistance and the launch of the Skim Peduli Kesihatan B40.

He shared that Mah Sing Foundation will assist and work alongside other non-governmental organisations and government agencies to reach out to more needy groups and added, “With the new policies being in place, the children [and those in the] B40 communities will have better chances to break out of the cycle of poverty and contribute to the nation in their own way.”

Source: TheStar