BUDGET 2017 COMMENT AmBank group CEO Datuk Sulaiman Mohd Tahir

The 2017 Budget continues to focus on ensuring the economy continues to expand at a healthy pace, and at the same time reduce the fiscal deficit and address public debt, with the overall objective of bringing prosperity to the nation and promoting the wellbeing of the Rakyat.

Affordable Homes
One of the key initiatives of the Budget 2017 is on the affordable homes. The introduction of PR1MA house end-financing scheme bodes well. In particular, it will benefit those household in the M40 category whose salary bracket falls between RM3860 to RM8319 per month as well as the B40 category whose salary bracket is RM3855 and below. This scheme will help address the first time home buyers' in these income categories who are currently experiencing difficulties to own affordable homes due to its limited supply.

SME
Another initiative under the Budget 2017 which will bode well for the economy is the introduction of reduction of tax payable by stages based on percentage increase income for the SME sector. Also, the tax reduction on chargeable income up to the first RM500,000 from 19% to 18% effective next year. Such incentives are expected to place the SMEs on a better footing and will enable them to contribute more significantly to the economy.