PETALING JAYA, Nov 2 — Business and banking organisations have hailed Budget 2019 as striking the right balance between monetary discipline and economic growth.

CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz said the Budget was carefully curated to address the rakyat’s immediate concerns, but also ensuring Malaysia’s socio-economic wellbeing by strongly focusing on fiscal restraint.

"The B40 category should be in a better position to improve their livelihoods and live more productively, with the sharper focus on addressing bread-and-butter issues, improved public health care, petrol and electricity subsidies, living costs allowance, the B40 National Health Protection Fund, and free medical screening for those above 50 years old,” he said in a statement.

"Various policies and incentives with beneficiaries including ex-convicts, the differently abled, women in the workforce, senior citizens and minority groups reflect a sensitivity towards ensuring societal inclusion for as many Malaysians as possible.

"This will ensure everyone has a chance at contributing to and benefitting from Malaysia’s economic progress. Similarly, this will also feature strongly in CIMB’s next mid-term growth plan, of which sustainability of our people, planet and profitability will be key,” he said.

Small and Medium Enterprises Association Malaysia’s (Samenta) chairman of policy and government relations Datuk William Ng said the Budget managed to be balanced given contemporary challenges and limitations.

"We are happy to note the government is introducing the credit system for sales tax deduction and Sales and Services Tax exemption for specific services provided by registered businesses to other registered businesses,” he said in a statement.

"Although disappointed the SMEs incremental income tax reduction scheme will not be retained, we are grateful that government will incorporate a number of measures to assist SMEs.

"This includes RM100 million fund for the National Entrepreneur Group Economic Fund, RM20 million for the Buy Malaysian Products campaign, RM210 million fund to promote, and RM2 billion soft loan for modernisation under the Business Loan Guarantee Scheme, among others,” Ng said.

Financial analytics company RAM Ratings Sdn Bhd said the Budget’s targeted approach is to support growth while ensuring Malaysia’s fiscal position remains manageable.

"The budgeted development expenditure of RM54.0 billion for 2019 is significantly higher than the 2010-2017 average of RM44.4 billion. This underlines de-emphasising the off-balance-sheet financing for big-ticket infrastructure projects, improving transparency and stem the government’s contingent liabilities from building up,” it said in a statement.

RAM Ratings added this is also a step in the right direction towards alleviating the overall debt service burden in the long run, since the government’s cost of financing is cheaper than government-guaranteed debts.

"Next year’s fiscal revenue increase (projected at RM261.8 billion) is sizeable, due to fees

and licences, imposing an excise tax on sugary drinks, ongoing tax reforms and the government’s intention of elevating dividend receipts from its investee companies are positive signs.

"These commendable efforts to diversify its revenue base over the longer term highlights the government’s commitment to maintaining its fiscal position despite potentially unpopular political implications,” it said.