THE Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) is relieved to learn that the budget deficit estimated for 2015 has not worsened as speculated by many earlier.
“It is commendable that the Government is keeping the deficit for 2015 at 3.2%, and keeping total debts at 55% of the gross domestic product (GDP) during these trying times,” said ACCCIM president Datuk Ter Leong Yap in response to Budget 2016.
International rating agencies are watching Malaysia closely on its fiscal position. If it worsens, it could lead to a sovereign downgrade.
Ter welcomed the extension of reinvestment allowance for existing manufacturing and agriculture companies and incentives for small and medium enterprises.
On boosting tourism, Ter cautioned that introducing e-visa for targeted countries should not bring about higher cost, if the Government were to privatise the service.
Ter also said ACCCIM disagreed with the higher personal tax imposed on individuals with an annual income exceeding RM600,000.
“To march toward a high-income nation, we need a lot of talent. Increasing personal taxes of high income individuals will not help,” he said.
* More on Budget 2016
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