KUALA LUMPUR, Oct 8 — Budget 2023 will increase the momentum for economic recovery with emphasis on structural reforms to strengthen economic resilience, measures to support the growth of SMEs and priority sectors as well as improve the people’s well-being.

RHB Banking Group managing director/chief executive officer (CEO) Mohd Rashid Mohamad said the expansionary nature of the budget, would provide substantial support to ease the financial burdens of the targeted groups.

"This includes providing the much needed social assistance while maintaining the government’s commitment to ensuring fiscal sustainability via the review of public expenditure and a plan to have a more targeted subsidy plan towards vulnerable groups.

"Coupled with consumer spending related measures and targeted tax cuts for certain groups, this would result in multiplier effects on economic activity,” he said in a statement today.

OCBC Bank (Malaysia) Bhd CEO Datuk Ong Eng Bin said that true to its mantra, Budget 2023 is responsive, responsible and reformist, even if much more can and remained to be done.

He said it is heartening to see the needs of the lower income and marginalised groups continuing to be attended to through an emphasis on their wellbeing.

The reduction in personal income tax for those in the RM50,000 to RM100,000 income category is welcome news even as those in this group continue to face the hardships associated with the ever rising cost of living, he noted.

"We are also delighted to see education continuing to be given priority through the increase in budget allocation to RM55.6 billion and the numerous forward-looking initiatives contained in the related plans, the commitment to creating job opportunities for those struggling to find one and the emphasis on woman empowerment.

"We hoped that these will pave the way for further responsiveness and an even more responsible posture as we attend to the underlying needs of the nation as a whole so we can renew our journey toward becoming a developed and high income nation, one where the needs of everyone regardless of social status is seen to,” he said.

Standard Chartered Malaysia CEO Mak Joon Nien said the RM327.3 billion budget is an inclusive budget that balances modest fiscal consolidation with the need to support the economy and improve the rakyat’s wellbeing.

Amid global headwinds, the budget will strengthen the country’s resilience over the long term with a record RM95 billion being allocated for development expenditure.

"The provision of RM92 million for the development of the halal industry will boost the country’s halal export value. We take pride in being the first international Islamic bank in Malaysia to offer Halal360 to help local halal businesses thrive within the global halal trade economic landscape.

"As facilitators of cross-border trade, the introduction of an investment fund with an allocation of over RM1 billion is timely and will enhance Malaysia’s ability to continue attracting quality investment,” he shared.

He said the introduction of more efficient tax processes such as e-invoicing and Tax Identification Number (TIN) will elevate tax experience and reduce administrative burden for companies, particularly for smaller businesses.

This new tax incentive framework will position Malaysia as an attractive investment destination in light of global tax developments,” he added. — Bernama