CIMB: Govt must address issues, investments

PETALING JAYA: The Government will have its hands full trying to address issues on rising costs of living, crime and affordable housing while continuing to ensure a friendly investment climate at the upcoming Budget 2013 amid a more challenging external environment.

CIMB Investment Bank Bhd economic research head Lee Heng Guie said in a report that the budget would have to take into account the country’s narrow revenue base, sizable subsidies and apparent lack of fiscal discipline, as reflected in the continued rise in government debt towards a self-imposed ceiling of 55% of gross domestic product (GDP) despite periods of solid growth.