BUDGET 2017 COMMENT Standard Chartered Bank Malaysia Berhad Managing Director & CEO Mahendra Gursahani

Budget 2017 has indeed proven to be a people-centric budget aimed at increasing the rakyat’s disposable income. Measures tailored for various groups such as B40, M40, fresh graduates and first time homebuyers would certainly ease the burden of high cost of living amidst the slowing global economy.
 
·         Domestic consumption and private investments are needed to support GDP growth, hence we are encouraged to see the pro-business strategies announced in Budget 2017. The RM2.1b allocation to the five economic corridors will be a positive for financial services as we support and participate in the country’s infrastructure development. We are also pleased to see that small and mid-cap companies are given attention in this Budget, opening up participation in the capital markets to more players.
 
·         As a leading Islamic Finance institution, we welcome the extension of the period of income tax exemption for entities carrying out Islamic banking and Takaful business through the International Currency Business Unit in foreign currencies as well as stamp duty exemption on instruments of such activities.
 
·         We look forward to 2017 as Start-ups and SME Promotion Year. SMEs are the backbone of the economy, contributing one third of the country’s GDP, and Standard Chartered will continue to help local enterprises seeking to internationalise their businesses.
 
·         Budget 2017 placed the financial system’s direct and facilitative role in encouraging Malaysian youth to make long-term investments through the Private Retirement Scheme. Such measures help them kick start their retirement savings at a young age.