Malaysia’s budget for 2020 was tabled on 11 October 2019 and is seemingly targeting most if not all key constituents, channelling funds under a people-pleaser spending plan aimed at the most prominent issues such as creating jobs, increasing buying power, and welfare assistance.
The Budget 2020 saw some of the most economically vulnerable groups given focus, especially with regards to long-term goals aimed at elevating living standards in line with the Shared Prosperity Vision 2030 for inclusive growth. Education and digital growth in particular received a huge allocation in order to provide future-proofing for the future.
Totalling approximately RM297 billion (US$69 billion), every group is expected to gain in some way from the budget allocation; from the humble employee to the sprawling MNCs. Considering that SMEs are by far the nation’s largest employers by sector, billions were poured into assisting SMEs and spurring key industries.
The following are some of the views offered by key players of several industries regarding the Budget 2020:
CBRE | WTW
- Infrastructure improvements in the forms of Serendah-Port Klang Rail Bypass and road upgrades towards Port Klang are indeed a timely action to improve connectivity and resolve traffic congestion in that area. The development Carey Island will help to boost the capacity of Port Klang whereby the existing operators like Westport has been running at almost full capacity. These are parallel initiatives that complement the vision of Port Klang becoming a regional maritime centre and cargo logistics hub.
- The special investment incentive package by InvestKL to attract Fortune 500 companies and unicorn firms is very much welcomed as it may help to ease the office oversupply in Klang Valley especially.
- As a strong proponent and enabler of digital banking, we welcome the initiative to advance the nation’s cashless agenda by boosting the use of e-wallets, through the one-time RM30 digital stimulus per qualified Malaysian.
- The enabling policies for SMEs to embrace digital in running their business are well thought out. Going digital is crucial for them to capitalise on the potential afforded by the regional and global e-commerce industry.
- We welcome the government’s support for renewable energy technology In particular, the generous 10-year 70 per cent tax exemption for solar leasing technology will be a definite boost to SMEs’ adoption of renewable energy. All these will help support the nation’s move towards an eco-friendlier operating landscape.
- Lazada Malaysia applauds the Government’s efforts towards developing a holistic ecosystem for all Malaysians to remain at the forefront of the digital economy. With a large number of Malaysian SMEs still in the early stages of digital maturity, we believe that the way forward is to focus on the professional development of SMEs which begins with the adoption of digital tools and channels.
- Lazada also welcomes the development of infrastructure to improve connectivity and accessibility to increase the adoption of eCommerce and facilitate the transfer of goods. Initiatives such as the National Fibre Connectivity Plan (NFCP) play a huge role in the growth of eCommerce.
- Additionally, we believe that developments such as the Trans Borneo Highway will further boost digital entrepreneurship in less connected areas, and increase the availability of logistics solutions in the vast states of Sabah and Sarawak.
- We are pleased to note the allocation of RM70 million to build 14 one-stop Digital Enhancement Centres (DEC). This initiative will strengthen the nation’s position as the region’s tech and digital hub as it will facilitate access to financing and capacity building for businesses, specifically for SMEs.
- The Government has also allocated RM20 million towards creating a conducive, inclusive, and competitive Digital Content Ecosystem. The Malaysian digital content ecosystem represents an industry that has tremendous export potential, and is greatly reliant on our talent and ingenuity, and resonates very strongly with young Malaysians.
- SMEs and startups will continue to flourish next year thanks to the incentives that Budget 2020 is allocating. The emergence and continuous growth of Tech Startups will enhance the capabilities of Malaysia’s support ecosystem. This dynamic growth has been made possible through the Government’s policies and implemented by relevant agencies.
Malaysian Rubber Gloves Manufacturers Association
- President Denis Low commented that the wage increase to RM1200 for workers in urban area is inevitable, given the higher cost of living in the city.
- We will have to adjust and factor in this additional cost to our product. The budget is already set and done, we would like to urge the government to refrain from increasing the cost of water, electricity and any other amenities
- Overall, we believe that this is a liveable budget and we ought to understand the constraints faced by the Government.