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Showing posts with label Anwar Ibrahim. Show all posts
Showing posts with label Anwar Ibrahim. Show all posts

Sunday 13 August 2023

Malaysia, China aim to enhance Research and Education; Malaysian hospitality a win for varsities

 



GEORGE TOWN: Malaysia and China will explore the need to increase collaboration in research and education, besides the export of durians, says Datuk Seri Anwar Ibrahim.

The Prime Minister said during a closed-door meeting with Chinese Foreign Minister Wang Yi that they also touched on regional matters such as an “Asean mechanism” for addressing pressing issues in the South China Sea.

“We discussed education since Malaysia hosts a substantial number of Chinese students at about 60,000, while there are about 7,000 Malaysian students studying in China.

“The Chinese minister also acknowledged the potential for further academic exchanges that could contribute to the growth and development of both countries,” he told reporters when met after the meeting here yesterday.

Anwar said despite sharing strong ties with China, Malaysia would strive to enhance normal diplomatic engagements through a strong, strategic partnership.

“Our strong relationship makes it easier for us to discuss other things because of the good ties we have,” he said, adding that he and Wang Yi touched on various aspects of cooperation and collaboration with a focus on investments, education and regional issues.

“Together with other Malaysian ministers, we also spoke on matters involving the strengthening of relationships on both sides.”

He also thanked Wang Yi for his role in facilitating significant Chinese investments in Malaysia, such as petrochemical giant Rongsheng and carmaker Geely, along with other key players.

The Chinese minister was in the country on a courtesy visit to meet Anwar.

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Malaysia and China to deepen ties in various fields









Malaysian hospitality a win for varsities



Home away home


Vibrant culture, lower cost, and ease of getting a visa among reasons more international students are flocking here.

MALAYSIANS are a friendly bunch and this, according to a recent global survey, is a pull factor for youths from other countries to study here.

The Global Student Experience Survey, conducted by the United Kingdom-based Tribal igraduate, found that overall, 89% of international students were satisfied with Malaysia, which is 2% more than the global benchmark.

In terms of making friends who are locals, 83% of those surveyed said they were satisfied. When it comes to making friends from other countries, 88% of the respondents said they were satisfied, while 85% said they were satisfied with how easy it was to make friends who were their countrymen.

These responses were all above the global average (see infographic), said Tribal igraduate Asia director Guy Perring.

“The friendliness aspect is a real positive for Malaysia,” he told StarEdu.

PerringPerring  

When international students go to the UK or Australia, they can sometimes find it difficult to make friends with the local British or Australians.

“Our data indicates that Malaysians are very friendly people and I think it’s because the country comprises a multicultural society,” he said, adding that the international students surveyed wanted to build a network and not just obtain a paper qualification from their places of study.

“They want to build a network as well as make friends for the future. Our survey contains 150 questions but in terms of friendliness, only three questions were asked.

“We asked about making friends. We asked if they were satisfied about making friends from Malaysia, from their home countries and from other countries.

“If they make friends from other countries, it shows they are in a good international university. If they are making friends from Malaysia, it shows they are integrating well into the society,” said Perring.

Of those surveyed, 84% described their courses as “value for money”.

The survey also showed that more international students were keen to study here with figures from the last quarter of 2022 showing that there was a 17% rise in the number of applications compared to the same period in 2021.

Perring said the nationalities most common in Malaysia – from China, Bangladesh, Indonesia, Nigeria, India, Yemen, Pakistan and Sudan – were drawn here by a combination of culture, cost and the relative ease of getting a visa.

“As well as the presence of overseas campuses from Australia and the UK, there is little doubt that the growth is likely to continue,” he said.

According to the survey report, there has been a sea of change in the student experience for both domestic and international students caused by investments in new campuses and facilities, as well as a greater desire to listen to the student voice and ensure student views are incorporated in long-term strategies and appropriate investments.

The rise in international student numbers is due to positive word of mouth, said Perring, adding that about 70% of the students surveyed said they would encourage their friends and family to study in Malaysia.

The three survey questions on friendliness, he said, can be used as a guide for institutions of higher learning to foster greater integration on campus and to provide the necessary social support in terms of social activities.

“While international students should be encouraged to make more local friends, they also need friends from their own home countries,” he said.

The survey was carried out from September to December 2022, with the next round scheduled to be conducted from October to December this year.

Over 120,000 international students and 69,400 domestic students from 146 universities across 17 countries took part in the survey.

NovieNovie

In Malaysia, about 3,500 of the 12,441 international students studying here were involved in the survey.

Commenting on the findings, Education Malaysia Global Services (EMGS) chief executive officer Novie Tajuddin said the warm culture and hospitality of Malaysians make the country a great place to study.

EMGS, he added, is consistently working on promoting Malaysia and its tertiary education sector in untapped markets.

“To maintain the quality of our education providers, monthly engagement sessions with universities are held to ensure everything is okay.

“We also open the door and streamline Malaysia and various countries in terms of course accreditation. This will enable international students to study here seamlessly,” he said.

National Association of Private Educational Institutions (Napei) secretary-general Dr Teh Choon Jin said the country’s diversity creates acceptance and inclusivity, which make international students feel welcome.

TehTeh

“Malaysia, with our diverse culture and society, has a friendly environment so it is not surprising that international students rate us higher than other frontier markets known predominantly for being destinations for international students,” he said.

He said Malaysian universities that are very successful in attracting international students put great emphasis on enriching students’ experience and ensuring high student satisfaction.

Outside of the classroom, multicultural activities also take place on campus, he added.

With support from the universities, cultural activities and respective national days are celebrated on campus as part of student activities throughout the year, he said.

“Such events usually see a great number of students from different nationalities participating. When we see students of diverse backgrounds gaining an understanding of the many cultures that are different from theirs, it is evident that we have created a successful integration model.

“Our local students also benefit from the enriching learning experience, where they have friends from different countries which would help them in their future careers,” he said.

Asia Pacific University of Technology & Innovation (APU) chief executive officer Datuk Parmjit Singh said apart from a harmonious learning and living environment on campus, students benefit strongly through their engagement with those from various cultural backgrounds, as this provides them with perspectives on how people from different cultures respond to situations and how to communicate effectively with each other.

Parmjit

Parmjit

He said the varsity’s strategy has always been to achieve strong and meaningful integration rather than assimilation.

“Students are encouraged to maintain and showcase their rich cultural heritage while at the same time learning about other cultures and sharing their unique cultural identities. “To make this happen, mental and cultural barriers have to be broken from day one,” he added.

Parmjit said throughout the international students’ time at APU, they are encouraged to appreciate their own cultures, tolerate other cultures and learn from each other.

“These broaden their horizons and ensure that our students graduate as well-equipped global citizens who are capable of adapting to different challenges within the global business environment,” he explained.

APU, with its student body of over 130 nationalities, took part in the Global Student Experience Survey.

Almost half of the students at APU are international students.

Commenting on the survey, Parmjit said both the varsity’s Malaysian and international students experience a diverse cultural mix as global citizens and create long-lasting friendships in Malaysia.

“On the whole, all of APU’s students, regardless of nationality, are very positive about their multicultural experience.

“International students view their Malaysian counterparts to be very friendly and most of our students develop lifetime relationships across the continents that last well beyond graduation.

“APU has always believed in bringing together as many communities of international students as possible from all around the world, without allowing any one country to dominate,” he said.

'I find the people in Malaysia to be generally friendly and welcoming. They often display warm hospitality towards international students, which has made my stay here more enjoyable. The locals are open-minded and accepting of different cultures, making it easier for me to connect and build friendships with them. The country has a diverse and vibrant culture, so it is not at all difficult for me to adapt. I really feel at home here. Additionally, the affordable cost of living and tuition fees compared to other countries allows me to pursue quality education without breaking the bank. While studying in Malaysia has been a rewarding experience overall, I did face some challenges. Language barriers have always existed, especially considering I’m not well-versed in the local language. This made it difficult to get along with some of my coursemates and do classroom activities, and interact with the staff. '– Quazi Isha Nafisa, 24, Bangladesh

'I’ve been here for four years and while the people are friendly, the language barrier is sometimes an obstacle for me to get along with people. The thing that first attracted me to study here is the fact that it has universities that are globally well ranked, and on top of that, they are affordable compared to universities in other countries with the same rankings. As a Muslim, I don’t face many challenges in Malaysia. I find many similarities between Malaysia and my home country. It is very convenient living here.' – Omar Elmanzalawy, 22, Egypt

'Malaysians are known for their warm hospitality and open-mindedness, which have made it easier for me to adjust to this new environment. Additionally, the university’s diverse student community has provided me with the chance to meet people from all over the world, and we’ve formed lasting friendships. The people around me have also been incredibly friendly and welcoming.' – Manaal Kurrumbacus, 21, Mauritius

'When I came to Malaysia, I spoke zero English. I thought I would feel like a stranger and everyone would judge me or not bother befriending me. However, it was completely the opposite. They made me feel like my English proficiency was not a barrier to forming friendships. I was treated like an old friend they’d known forever. Although they all spoke better English than me, it was not an issue to them. Instead, they would teach me English words. Each and every one of them acted like a teacher who is a friend. I will never forget how much it helped me to gain my confidence and build my self-esteem. Malaysians are very welcoming and kind. Most of the people here, be they local or from other countries, bring such a wonderful energy to the conversations we have. Everyone is trying to enjoy their time on campus and get the best out of the experience.' – Mohammed Adel Mohammed Ba Hamid, 22, Yemen

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Malaysia and China to deepen ties in various fields









Navigating the Future of China-Malaysia Relations 

Sunday 9 April 2023

'Dedollarisation' is feasible

 

CLICK TO ENLARGE

 “This is all part of a broader discussion of possibilities for reducing the use of the dollar. This discussion is not new and has happened in the past but it appears to be more serious now and the actual changes are taking place,” - Prof Geoffrey William

Of late, the hot topic that is rapidly gaining pace is many countries, including Malaysia, are mulling the idea of reducing their trade dependency on the US dollar.

Prime Minister Datuk Seri Anwar Ibrahim has also lent heavy support to the thought of reducing Malaysia’s dependency on the greenback in terms of attracting foreign direct investments into the country, as well as in bilateral trades not involving the United States.

This came as Anwar announced on Tuesday that investments worth about RM170bil by China-based companies would be kicking off next month.

The prime minister has also last week proposed the setting up of an Asian Monetary Fund (AMF), stressing the need to lower reliance on the greenback as well as the US-backed International Monetary Fund (IMF), an idea that he himself reported has been well received by Chinese President Xi Jinping, who is open to discussing its implementation.

According to Geoffrey Williams, economics professor at Malaysia University of Science and Technology (MUST), what Anwar was saying is in line with a growing group of international leaders seriously questioning the role of the dollar and the US/European Union systems, hence the prime minister’s comment is a change of tone with possible action points.

“This is all part of a broader discussion of possibilities for reducing the use of the dollar. This discussion is not new and has happened in the past but it appears to be more serious now and the actual changes are taking place,” Williams told StarBiz.

He concurred with Anwar’s view that bilateral trade between two nations could use the currencies of the countries involved instead of the dollar, calling it “feasible” and is in fact growing in popularity.

“Most commodities are priced and traded in dollars but direct sale of oil between Russia and China as well as India is circumventing that arrangement.

“There is an increasing probability this will extend to more countries and more commodities,” Williams said.

Some parties have even suggested that Anwar may not be taking any sides in the global balance of power between China and the United States, despite his preference for dollar independence.

However, uneasiness remains on the geopolitical implications of the suggested move and how it will affect relationships between countries such as Malaysia and the United States as well as its allies.

While acknowledging such concerns, Williams said: “At the moment, many countries are understandably questioning whether the dollar dominance is beneficial to them and if better exchange arrangements could be found.”

Meanwhile, economist and chief executive at Centre for Market Education, Dr Carmelo Ferlito, said that while countries can ponder over better options in a multipolar world, alternatives need to be weighed in with painstaking care.

Ferlito said the appearance of the euro in 1999 was met with a warm welcome since it forced the dollar to face a competitor characterised by stronger monetary discipline, and that the emergence of something new in the East, if properly conceived, could strengthen the path towards monetary stability.

However, he added: “If global currency competition were to move in the right direction, the path will remain incomplete without an actual competition between currencies within countries.

“A competition that enables individuals to choose the currency to be used for their daily transactions, favouring the emergence of a virtuous competition among currencies toward stability.

“Our point is thus that the new and vibrant developments in the international monetary scene can be a source of benefit – rather than spawn geopolitical tension – only if accompanied by a true opening of national economies to competition among available currencies. 

A novel Asean or BRICS (Brazil, Russia, India, China and South Africa) currency could become a strong alternative

“In this way, a novel Asean or BRICS (Brazil, Russia, India, China and South Africa) currency could become a strong alternative not as the result of a political will of power but simply as a consequence of market competition.”

On the setting up of an AMF, MUST’s Williams said such an idea is definitely attainable but would require participation across many Asian countries, especially to provide the finance and to agree to the terms on which access to that finance is made available.

As such, he remarked that it is not just a financial matter but also a geopolitical one.

“The main issue is who will fund the AMF and what will be the contribution rates for each member.

“It is likely that most will come from China, unless Japan and South Korea joins in. Otherwise most Asian countries are too small to contribute much.

“Ultimately, this will be driven by economic cost-benefit considerations and whether non-aligned countries like Malaysia can maintain good relationships with all parties without using the dollar,” he noted.

On the other hand, the move to bilateral currencies for trade and investment between two countries, while feasible, would be more at risk to exchange fluctuations and liquidity issues, Williams said, adding that this could be improved by a switch to multiple currency options.

Of note, and on something that has not been touched by Anwar, the economics professor said the dollar still provides stable, reliable and secure financial systems such as the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

“Cybersecurity is essential and the questions of geopolitical stability also arise but these may not be solved by breaking up international systems into smaller regional systems,” he said.

There certainly has been an influx of recent activities geared towards reducing the use of the dollar in international trade, such as the discussions between Brazil and Argentina to create a common currency or Saudi Arabia declaring its openness to trade in other currencies other than the greenback for the first time in 48 years.

But the fact that the International Monetary Fund data shows central banks worldwide are still holding about 60% of their foreign exchange reserves in dollars as at the fourth quarter of 2022 literally means it is extremely unlikely the currency would be losing its status as the global reserve unit anytime soon. 

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Crisis jolts Wall Street bankers

 

Crisis jolts Wall Street bankers already resigned to tough ...

 https://www.thesundaily.my/business/crisis-jolts-wall-street-bankers-already-resigned-to-tough-job-market-LK10837950

 

UPDATE 1-Crisis jolts Wall Street bankers already ...

 

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Abuse of hegemony is why de-dollarisation is trending 

 

China, Brazil to trade in local currencies

 

Sunday 26 February 2023

Malaysian Budget 2023 revised up to RM388.1bil, GDP to grow 4.5% in 2023 from the expanded 8.7% in 2022

Budget 2023 revised up to RM388.1bil, GDP growth at 4.5%

KUALA LUMPUR: Budget 2023 is revised upward to RM386.1 billion, making it the largest allocation in Malaysia’s history, as the government continues to provide support to steer the economy, according to the Ministry of Finance (MoF).

The budget allocation is an upward revision from the RM372.3 billion budget tabled by the previous government in October 2022, which could not be passed before Parliament was dissolved.

In its Updates on Economic & Fiscal Outlook and Revenue Estimates 2023 report released today, the ministry said of the amount, 74.8 per cent will be utilised for operating expenditure while the remaining 25.2 per cent is for development expenditure.

A substantial allocation of 23.5 per cent will be provided for emoluments, subsidies and social assistance (15.2 per cent), economic (14.3 per cent), debt service charges (11.9 per cent), supplies and services (8.3 per cent), retirement charges (8.0 per cent), social (6.9 per cent), security (3.0 per cent), grants and transfers to state governments (2.1 per cent), general administration (1.0 per cent) and others (5.8 per cent).

MoF said funding for Budget 2023 will be sourced from income tax totalling 39.9 per cent of the total allocation, borrowings and use of government’s assets (24.5 per cent), non-tax revenue (19 per cent), indirect tax (14 per cent) and other direct tax (2.6 per cent).

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said Budget 2023 will focus on addressing the high cost of living, further strengthening the social safety net and enhancing the micro, small and medium enterprises (MSMEs) eco-system.

He said the government will also examine ways and means to reduce market disruptions as well as streamline business processes through the adoption of high technology and digitalisation.

"The government is committed to protecting the livelihood of the rakyat, upholding integrity, enhancing a caring and compassionate society, as well as improving the effectiveness of public and private sector delivery systems.

"These commitments can be achieved through a methodical approach focused on the aspect of thought, spirituality and infrastructure, which is centred on the framework of Malaysia Madani that focuses on shaping the future of the nation and realising its full potential,” he said.

Malaysia Madani framework is supported by six core values -- sustainability, prosperity, innovation, respect, trust, and lastly, care and compassion.

After Anwar was sworn in, the Dewan Rakyat had, on Dec 20, 2022, passed a RM163.7 billion temporary operating budget to allow the government to spend a portion of the total estimated expenses during the months prior to the retabling and passing of the Supply Bill for 2023.

The amount includes RM107.7 billion, which is from the Consolidated Fund, to pay for emoluments and aid for the first six months of 2023, and RM55.96 billion from the Development Fund to fund the ongoing development projects.

Moderate 2023 GDP Growth

Anwar said Malaysia’s gross domestic product (GDP) is poised to record a growth of approximately 4.5 per cent in 2023, backed by the nation’s sound macroeconomic fundamentals, robust domestic demand coupled with the effective implementation of the 12th Malaysia Plan (12MP).

With the transition to the endemic phase and the reopening of international borders, Malaysia has seen an increase in tourist arrivals as well as trade and business activities, contributing towards a steady recovery, especially in the services sector, he said.

"2023 is expected to be a challenging year. The government will continue to be vigilant of economic headwinds as well as any potential geopolitical conflict in order to devise the appropriate strategies and actions,” the Prime Minister said.

The report indicated that the services sector will continue to steer growth in 2023, expanding by 5.3 per cent on the back of better domestic demand buoyed by wholesale and retail trade, transportation and storage, information and communication, food and beverages and accommodation, and finance and insurance subsectors.

Anwar also said the government remains steadfast in balancing the need to safeguard the well-being of the rakyat and the nation while ensuring a sound and sustainable fiscal position.

This is crucial in maintaining the high standing of the country's sovereign ratings and to ensure the country’s premier position as an investor- and business-friendly country, especially in creating and attracting high value-added investments to achieve quality and inclusive growth, he said.

MoF said the acceleration of infrastructure projects with high multiplier effects, robust growth in private investment and continuous external demand particularly among major trading partners will further support the economy.

It also said the contribution of the tourism-related sector is expected to improve following an increase in tourist arrivals.

"Looking ahead, efforts will be intensified to position Malaysia as a major investment destination. Various measures will be implemented to uplift and enhance the economic potential for Malaysia to become more competitive, sustainable and inclusive,” it said.

It added that the government will continue to provide counter-cyclical policy support as well as expedite structural reforms to strengthen the country's growth prospects and resilience.

As for trade, the total trade is expected to expand further to RM2.887 trillion in 2023, with an estimated surplus of RM264.33 billion.

Strict Fiscal Discipline

Anwar said the government will prioritise strengthening the governance ecosystem at all levels to increase public trust in government institutions.

This initiative will focus on transparency, integrity and efficiency, particularly in government procurement, good governance, and the developmental role of government-linked companies (GLCs) and parliamentary institutions, he said.

He also said various initiatives have been identified to address issues related to public finances, including exploring new sources of sustainable revenue and minimising leakages.

"In achieving these initiatives, the government will prioritise on public expenditure review while ensuring debt sustainability and enhancing public spending efficiency in the long run.

"These measures will improve the nation's fiscal flexibility, allowing the government to implement counter-cyclical measures and maintain our economic resilience,” he said.

According to MoF, the fiscal deficit is expected to consolidate further to 5.0 per cent of GDP, to -RM93.94 billion from -RM99.48 billion in 2022.

Stellar 2022 Performance

Despite the softened global growth and escalating inflationary pressure, the Malaysian economy has performed better-than-expected in 2022, spearheaded by strong domestic demand and higher export performance in the aftermath of the COVID-19 pandemic.

Anwar said the country’s economic growth outperformed regional and global trends, rebounding to the pre-crisis level of 8.7 per cent, thanks to the swift policy responses and strong economic fundamentals.

MoF said in the report that growth in 2022 was anchored by the services sector, which grew by 10.9 per cent and contributed 58.2 per cent share to the GDP, mainly supported by the wholesale and retail trade, transportation and storage, as well as real estate and business services sub-sectors.

It said the manufacturing sector grew by 8.1 per cent with 24.2 per cent contribution to the GDP, while agriculture (0.1 per cent/6.6 per cent), mining (3.4 per cent/6.4 per cent), and construction (5.0 per cent/3.5 per cent).

The growth was also attributed to robust external demand, especially among Malaysia’s major trading partners, which resulted in a 27.8 per cent increment to RM2.848 trillion total trade last year. Similarly, the trade surplus expanded by 0.6 per cent to RM255.1 billion. - Bernama
 
 

Restoring confidence Largest one in M’sian history heralds overhaul of country’s finances

Prime Minister Datuk Seri Anwar Ibrahim has unveiled a Rm388bil Budget, the largest in Malaysian history, and one that is inclusive and holistic as well. His approach to dishing out goodies is novel, taking care of priority areas while also setting the country up for a financial overhaul.

Budget 2023 will be based on three thrusts, that is spurring the economy, reforming institutions to ensure investor confidence and ensuring social justice to balance inequality. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim

PETALING JAYA: Budget 2023, unlike many earlier ones, is not one that is a continuation of promises laid out in larger umbrella plans like the Malaysia Plans.

Instead, it is a unique creation under Prime Minister Datuk Seri Anwar Ibrahim’s Malaysia Madani concept, which is a manifestation of the more inclusive approach promoted by the unity government.

The Rm388.1bil budget is the largest in Malaysian history, with Rm97bil being earmarked for development expenditure, also the highest allocation yet.

While the government has been drumming home a message about the mounting debts of the Federal Government, why did it propose such a huge spending Bill?

The answer lies in government taxes, which rose strongly last year to Rm294.4bil due to much stronger economic growth than forecast. With the economy clocking an 8.7% growth rate, tax collection will mirror the performance.

Still, there will be a relatively high deficit in the budget at 5% of GDP. This, however, will be less than an earlier estimate of 5.5%.

The plan is to bring it down to 3.2% by 2025. That debt reduction schedule is going in the right direction.

Higher tax revenues are only part of the cash-raising proposals. Asking the well-heeled populace to foot their fair share of tax revenue is a good step.

High-income earners are not going to make too much of a fuss about paying their fair share in raising government finances. It was also good that vape and e-liquids be subjected to tax.

It is a huge grey area that has flourished without government control. The best thing now is to tax such products as they are substitutes for cigarettes and basically perform the same function.

Then there is the tax on sale of shares in unlisted companies. This is basically a capital gains tax on unlisted companies that sell their business for a profit. This will also be an equitable approach.

It is not an inheritance tax, but just a case of the government taking a slice for enabling companies to sell their assets at a profit. Maybe it is a different approach from the prosperity tax (or windfall tax), but in an era of high indebtedness by countries and greater calls for progressive taxes, such a tax was inevitable.

The tax on luxury goods will have to be balanced against the need to maintain tourism receipts. Will this put off potential tourists given that Malaysia is one of the cheapest destinations for luxury goods? The devil will be in the details. Budget 2023 also reflects a different approach to addressing the issues of the past.

The usual ministries received an allocation bump and for good reason, but with a twist. Healthcare got a raise but there is acknowledgement that fixing the bottlenecks will use “the whole of nation” approach with spare beds and doctors from university and army hospitals, along with private hospitals, being utilised.

The move to tackle the problem of the hardcore poor is to be applauded. The call to alleviate the scourge of poverty within a year is formidable, but for Malaysia, which is on the cusp of high-income nation status, having 130,000 people on the wrong side of the poverty line is a shame.

Fixing the amenities at schools fast is also an urgent need, thus the increased allocation for the Education Ministry.

Defence too got higher allocations, as these are the basic foundations of any country.

The caring side of the budget was shown when it looked to help micro, small and medium enterprise sectors. These small companies employ a lot of people, and for them to get a tax deduction will go some way towards helping to shore up their finances.

The overall tone of Budget 2023 was appropriate.

It showed care and compassion for a large cross section of Malaysians. It is surely the start of an overhaul of the country’s finances as we head towards a national revitalisation over the next few years

By the Star Malaysia25 Feb 2023By JAGDEV SINGH SIDHU jagdev@thestar.com.my 

 

Highlights of Budget 2023/Belanjawan 2023


1. Bankrupts with debts of less than RM50,000 who fulfil certain requirements will be released from bankruptcy on March 1. This is expected to benefit 130,000 people.
2. The government will amend the Insolvency Act 1967 to release bankrupts automatically.
3. Bank Negara will allow consumers to freeze their accounts should they detect any suspicious activities.
4. RM10 million to support the National Scam Response Centre.
5. A special task force to reform government agencies, known as STAR, will be set up. It will be led by the chief secretary to the government.
6. Malaysian Road Records Information System (Marris) allocations increased to RM5.2 billion.
7. RM50 million to install lampposts in accident-prone areas.
8. Government will use district engineers to speed up the repairing of federal roads.
9. RM2.7 billion to repair and upgrade federal roads.
10. RM1.2 billion to repair 400 dilapidated clinics and 380 dilapidated schools.
11. The government plans to table amendments to the Whistleblowers Act to better protect whistleblowers.
12. The government plans to table the Government Procurement Act.
13. Government procurement must be transparent. RM22 billion worth of contracts linked to flood mitigation projects and the Jana Wibawa project were awarded via direct negotiation.
14. Private sector to establish a “Madani wakaf” involving assets worth more than RM1 billion.
15. The government will increase the availability of Islamic financing.
16. The government will also support the plans for the private sector to develop a port in Pulau Carey.
17. The government will support the development of the Sanglang port in Perlis.
18. Putrajaya to expand Subang and Penang airports to attract investments. This is more economical than the proposed construction of a RM7 billion airport in Kulim, says the prime minister.
19. The Tun Razak Exchange will become the country’s international financial hub.
20. Bank Pembangunan Malaysia Berhad to provide RM6 billion in strategic funding to encourage automation.
21. Tax incentives for aerospace industry will be extended to Dec 31, 2025.
22. Tax incentives for manufacturers to move operations to Malaysia will be extended to 2024.
23. The government will introduce a New Industry Master Plan 2030. This will include the restructuring of investment incentives.
24. The government will give incentives to local councils that make it easier for businesses to be set up.
25. Government proposes extending the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) incentives until Dec 31, 2025.
26. Bank Negara to provide RM2 billion in loans to support green technology startups and help SMEs embrace low-carbon practices.
27. RM50 million to increase the number of wildlife rangers to 1,500 people.
28. RM38 million allocated to protect endangered wildlife including tigers and elephants.
29. The government will increase allocations given to states to preserve forests from RM70 million a year to RM150 million a year.
30. RM50 million for the armed forces, fire and rescue department, and Rela to prepare for natural disasters.
31. RM150 million for Nadma to prepare for natural disasters.
32. Six flood mitigation projects will be re-tendered.
33. Anwar gave the example of flood mitigation projects. He said the government could have saved RM2 billion for the projects awarded by the previous government.
34. High impact projects must be awarded via tenders to ensure the government enjoys the best value and savings.
35. Bank Negara to provide nearly RM10 billion in loans for SMEs.
36. Government to waive driving test fees for taxi, bus, e-hailing and B2 motorcycle licenses.
37. Syarikat Jaminan Pembiayaan Perniagaan will provide RM20 billion in loans to SMEs in high value sectors.
38. RM1.7 billion in loan facilities under Bank Negara, BSN and TEKUN.
39. Government agencies to provide RM40 billion in loan facilities for MSMEs.
40. RM176 million to upgrade business premises and facilities under Mara, DBKL, PUNB and UDA.
41. RM50 million to build and upgrade 3,000 stalls and kiosks nationwide
42. Income tax for micro SMEs reduced from 17% to 15% for the first RM150,000.
43. The government will incentivise self declaration for income tax arrears beginning June 1.
44. Half of revenue from excise duties collected under the Generational Endgame (GEG) law will be channelled to the health ministry.
45. Putrajaya to introduce excise duties on vape and e-cigarette liquids containing nicotine.
46. The government will study the possibility of introducing a capital gains tax from 2024.
47. The government will introduce wealth tax. Luxury watches and goods will be taxed.
48. The government will maintain electricity subsidies for all domestic users and SMEs.
49. Lower income Amanah Saham Bumiputera (ASB) contributors will be given more dividends.
50. The government will table a Fiscal Responsibility Act in Parliament this year to ensure better management of the economy in the future.
51. Government aims to reduce fiscal deficit to 5% this year, compared to 5.6% in 2022.
52. Government aims to collect RM291.5 billion in revenue, a decrease compared to RM294.4 billion in 2022.

Budget 2023 highlights

Budget 2023; Highlights from updates on economic & fiscal outlook
and revenue estimates 2023

GDP to grow 4.5% in 2023 

 

PETALING JAYA: The Malaysian economy is projected to grow by 4.5% in 2023, even as the World Bank warned about the global economy being “perilously close” to falling into recession this year.

In the first section of the 2023 Economic Report, the Finance Ministry said all economic sectors are expected to remain in the positive growth trajectory in 2023, driven by the services and manufacturing sectors.

Other sectors, namely agriculture, mining and construction - which remained below pre-pandemic levels as of 2022 - are also expected to grow further in line with the improvement in economic activities.

“However, downside risks such as prolonged geopolitical conflict, climate-related disasters and persistently high inflation are expected to further hamper the global economic growth, hence, affecting Malaysia's performance.

Overall, the nation’s gross domestic product (GDP) is forecast to grow approximately 4.5% in 2023,” the ministry said.

Earlier this month, Bank Negara said the economy could grow by 4% to 5% this year. In 2022, the GDP expanded by 8.7% - the strongest growth since 2000.

The growth in 2023 would be mainly supported by steady domestic demand primarily private expenditure as well as initiatives under Budget 2023 and development expenditure under the 12th Malaysia Plan 2021-2025.

“However, a slowdown in external demand is expected to moderate exports growth, particularly in the electrical and electronic products and major commodities,” the Finance Ministry said.

The ministry projects the local services sector’s GDP to expand by 5.3% in 2023, down from a growth of 10.9% last year.

Manufacturing growth was forecast at 3.9% this year, as compared to 8.1% in 2022.

It is noteworthy that last year’s strong growth rate was largely attributed to the low-base effect as the economy was still impacted by Covid-19-related restrictions in 2021.

The mining sector is also forecast to record a slower growth next year by 1.2%, as compared to 3.4% in 2022.

However, the agriculture and construction sectors are projected to witness stronger growth rates, at 1.1% and 6.1% respectively.

In 2022, the agriculture sector’s GDP grew by a mere 0.1% and the construction sector expanded by 5%.

Commenting on the global growth, the Finance Ministry said the world economy is expected to further soften in 2023 at 2.9%.

The global economy would be weighed down by persistent pressures such as inflation, tightening global financial conditions and economic deceleration among major economies. 

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