Budget 2018: Reactions from banking sector

Cost management: CIMB is a stock loved by investors for its liquidity, but they are also quick to punish it at the slightest hint of bearish sentiment.

Tengku Datuk Sri Zafrul Aziz, group chief executive, CIMB Group

Tengku Datuk Sri Zafrul Aziz said that Budget 2018's focus on bread-and-butter issues will go a long way towards ensuring the rakyat's interest.

"The focus on building more than 385,000 affordable homes shows that the Government is taking firm steps to address head-on the challenge of home ownership for the lower-income group," he said.

"Extending PR1MA’s step-up financing scheme to private housing developers is also a laudable move towards facilitating home-ownership."

He added that initiatives to enable a ditial economy such as the establishment of the Digital Free Trade Zone, will provide more opportunities to the SMEs as well as more jobs.  

"Related to this, CIMB Group, as a leading universal bank with a strong footprint in ASEAN, is ever ready to facilitate SMEs’ cross-border trade and business expansion regionally," he said.

He added that the focus on the well-being of staff in government-linked companies such as flexi-work arrangements and childcare centres at work reflect a people-focused vision, one that CIMB shares.



Tan Sri Teh Hong Piow, founder & chairman, Public Bank

Public Bank chairman Tan Sri Teh Hong Piow applauded the government's approach to Budget 2018, which he said "provides wide ranging and inclusive measures to promote economic expansion and wellbeing of the rakyat, particularly the medium and lower income group".

He added that the bank has a positive view on the government's commitment to strengthening its fiscal position and the reduction of the budget deficit to 2.8% of GDP in 2018. 

"The implementation of new and ongoing infrastructure projects will continue to stimulate investments, which in turn generate capacity expansion in high growth sectors. Domestic investment will complement private consumption activities, contributing to a broad-based economic growth," he added.

"The global economic landscape will continue evolving owing to technological advancement, particularly in the area of digital economy. In the midst of the Fourth Industrial Revolution, raising value-added productivity, alongside innovation, technological advancements and human capital development could unleash further the growth potential of the Malaysian economy."