2017 BUDGET PROPOSALS - THREE PRIORITIES
Competitiveness
- Design a competitive tax rate to sustain as well as spur more investment
- Malaysia’s regional peers are ahead of the curve
Management of foreign workers, minimum wages
- Predictable and consistent policy
- More engagement with the industry players
Property sector
- Prevent an over-adjustment in the sector
- Review of selective propertycooling measures
GATHERING EXTERNAL HEADWINDS THREATHEN TO DAMPEN MALAYSIA’ ECONOMIC PROSPECTS
- Multiple external and domestic headwinds (global recession risk, slowing China economy, Brexit’s induced uncertainties as well as the ringgit’s volatility ) pose great challenges to Malaysia’s economic prospects.
- Sustaining domestic demand is paramount to counteract domestic economy from reeling external shocks.
- While measures to support consumer spending should continue, strong private investment activity needs to be sustained to create jobs.
- Must calibrate short-to medium-term measures to strengthen our economic and financial resilience.
- Continued fiscal consolidation whilst providing targeted fiscal support.
- With our export engine is under threat, 2017 Budget should focus on the following thrusts:
- Strengthening the nation’s competitiveness for the next take-off
- Sustaining domestic demand
- Enhancing exports capacity
- Safeguarding domestic price and financial stability
