BUDGET 2017 COMMENT Public Bank Bhd Founder and Chairman Tan Sri Datuk Seri Dr Teh Hong Piow

We view positively the government’s commitment to address the nation’s fiscal challenges. Budget 2017 affirms the ongoing fiscal reforms. Prudent fiscal spending together with an expected increase in government revenue enables further reduction in budget deficit to 3.0% of GDP in 2017. Thus, Malaysia should remain on track to achieve a near balanced budget as the economy progresses into a high-income nation by 2020.
We are delighted to note the continued pro-business measures in stimulating private investments in major infrastructure projects and economic corridors. The introduction of the new scheme of income tax for companies would help to lower the cost of business and stimulate further growth of businesses including the small and medium enterprises.
We welcome the government’s wide-ranging and targeted measures to enhance the well-being of the rakyat, particularly the lower income group. Budget 2017 reflects significant strategies and initiatives to address the need of the rakyat. We note that new sources of prosperity lie in the ingenuity to mine existing resources which uncover economic opportunities and elevate the growth potential of the Malaysian economy. Particularly, raising productivity and innovation, and enhancing human capital, are essential for a sustainable economic growth ahead.

Public Bank applauds the Honourable Prime Minister and Minister of Finance for formulating Budget 2017 ─ Ensuring Unity and Economic Growth, Inclusive Prudent Spending, Wellbeing of the Rakyat. While acknowledging that current economic condition remains challenging amid global uncertainties, Malaysia continues to evolve driven by transformation from a commodity-exporting nation to a modern diversified economy.