KUALA LUMPUR, Oct 29 — The RM40 billion allocation announced during Budget 2022 for grants, guarantees and equities to all businesses ranging from micro, small and medium enterprises (MSMEs) to public-listed companies can further support industry and sector revivals as the economy reopens, local banks agreed.

Maybank group president and chief executive officer Datuk Abdul Farid Alias said it is important that the budget creates opportunities for individuals and businesses to transition into a recovering economy ripe for growth and focused on productivity measures.

The bank also welcomed the expansion in housing credit guarantee and micro credit schemes to workers and businesses in the informal sectors, specifically aimed at facilitating access to financing and enabling financial inclusion, he said.

"The banking industry, together with Agensi Kaunseling dan Pengurusan Kredit (AKPK) has also developed its own targeted programme to continue supporting the most vulnerable segment of individual customers through a comprehensive extended financial assistance scheme.

"This scheme, known as Financial Management and Resilience Programme (Programme Pengurusan & Ketahanan or URUS) will provide holistic financial management solutions for B50 customers,” he said in a statement today.

Meanwhile, CIMB chief executive officer Datuk Abdul Rahman Ahmad said the allocation would benefit the B40 group and businesses particularly MSMEs, the backbone of our economy.

"This includes, for example, access to financing for MSMEs and the informal sector. The government’s initiatives to promote inclusivity by targeting to reduce the income gap as well as the development gap between states, will lead to a greater income, wealth and social equity.”

Abdul Rahman also said the budget looks set to strengthen the country’s economic resilience and rebuild market confidence.

"It is optimal that the government continues to emphasise policies that are aligned to the UN Sustainable Development Goals (SDGs) of achieving carbon neutrality by 2050.

"The government will also double down on its commitment towards driving the environmental, social and governance (ESG) agenda, through investments that will stimulate economic activities and growth while minimising harm to the environment and our communities.”

In addition CIMB welcomed the government’s plans for sustainability sukuk issuance amounting up to RM10 billion in the year ahead to be channelled to qualified social and climate-friendly projects.

RHB Banking Group managing director and chief executive officer Datuk Khairussaleh Ramli is positive of the sustainability initiatives by the government through increased diversity in the workplace and empowering women in building a more robust economy post-Covid-19 as well as the country’s aspiration towards becoming carbon neutral by 2050.

The Finance Ministry today unveiled Budget 2022 which supports three main pillars: strengthening recovery, building resilience and driving innovation.

The budget’s amount, equivalent to 20.3 per cent of gross domestic product (GDP), is nearly 3 per cent higher than the RM322.5 billion announced for Budget 2021. — Bernama