AMMB: Budget 2018 expected to benefit SMEs, digital economy, M40, B40 households

PETALING JAYA: AMMB Holdings Bhd said the group is hopeful that the Budget 2018 will facilitate the advancement of digital economy, particularly high-technology industries, e-commerce as well as the manufacturing sector in terms of Industry 4.0.
In a statement today, its group CEO Datuk Sulaiman Mohd Tahir said the small and medium-sized enterprises together with the digital economy are key growth drivers and these segments should benefit from incentives that can stimulate further growth.
To address the current socio-economic conditions, Sulaiman said the group expects the Budget to continue with targeted incentives for households to address the rising cost of living, particularly for the M40 and B40 category.
He added the group also anticipates a continued focus on affordable housing with measures supporting home buyers as well as developers.
"With this year's theme of 'Shaping the Future', we believe the government will lay the foundation for TN50 in this Budget, with the aim of engaging the younger generation. As such, measures to promote technology such as improving internet connectivity and developing the digital economy is expected to be a highlight in Budget 2018," Sulaiman said.
He said the Malaysian economy performed strongly in the first half of 2017, demonstrated by gross domestic product (GDP) growth averaging at 5.7%, largely supported by a strong export market as well as healthy domestic demand.
Sulaiman said it expects this positive momentum to continue into the second half, adding this year's GDP growth is expected to surpass the government's projection of 4%-5% in Budget 2017 by a significant margin.
In addition, the group said the Budget deficit target for 2017 of 3% is likely to be attained given stabilising commodity prices, healthier tax collection, improving global growth paired with ongoing fiscal consolidation.
The fiscal deficit for 2018 is expected to reduce to 2.9% to GDP on anticipation of higher revenue from stronger crude oil prices, solid tax collection as well as prudent spending, it added.