Budget 2021 saying that it is a deficit driven expansionary budget necessary to spur growth.PETALING JAYA: The Malaysia-China Chamber of Commerce (MCCC) welcomed the
“The MCCC applauds the government expansionary budget to sustain our economy in the current economic condition. It is important, however, that the level of debt to GDP ratio be managed well, ” it said in a press statement.
“The government has to be discipline to revert to a credible debt ratio level when things turn for the better, ” MCCC added.
The chamber said it welcomed the special incentives for FDI including new tax incentives for the establishment of the Global Trading Centre at a concessionary rate of 10% for a period of five years and special income tax treatment at a flat rate of 15% for a period of five years to non-resident individuals holding key positions for strategic new investment by companies relocating their operations to Malaysia.
“The presented budget (however) didn’t mention where the 2021 growth going to come from.
“Hopefully Malaysia can achieve the expected growth of 6.5-7.5% of GDP, ” it said.
MCCC said that under the current circumstances it welcomed the government to craft a budget that is inclusive and forward looking.
“The budget addresses many concerns that affect the people’s wellbeing, businesses, and the sustainability of our future economy, ” MCCC said.
The chamber said that there are ample funding provisions within the budget that would be a relief to many.
This is especially so in a situation where everyone is facing much hardship.
“It is assuring to see that the budget also provides a lot on emphasis on technology, especially on digitalisation and the internet of things, ” it said.
MCCC said the pandemic is requiring everyone to be more tech savvy including individuals, businesses, and government agencies.
“Regardless whether we will get the vaccines for the Covid-19 pandemic any time soon, the new normal would definitely require us to adapt to the new reality, ” MCCC said.
“The emphasis on TVET, retraining and reskilling of the workforce, the emphasis on high tech and R&D for businesses, are just among the many things provided in the budget to prepare us for the future, ” it added.
It said that the government is preparing industries for the future with the provisions certain industries.
These included an emphasis on industries such as the oil & gas, electrical & electronics, aerospace, and renewable energy which MCCC said will be very important for the country’s future.
“As a chamber that promotes the cooperation between Malaysia and China, we look forward to work closely with the government ministries and their agencies.
“Thi is to help promote trade and investment between the two countries, ” the MCCC said.
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