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Budget 2022 was unveiled against the backdrop of projected economic growth of 3% to 4% this year and 5.5% to 6.5% in 2022, which is encouraging and signals a return to the pre-pandemic annual GDP growth trend.
With Malaysia moving into a post-pandemic economic recovery phase, the RM332.1 billion Budget 2022 is the largest ever Malaysian Budget. Budget 2022 is comprehensive and inclusive. In line with the “Keluarga Malaysia” spirit, Budget 2022 ensures that no person or business is left behind or neglected in Malaysia’s development. The focus on education, healthcare, sustainability, diversity, SMEs and the B40 group is commendable. Malaysia has shown her resilience during the pandemic and the Budget 2022 proposals will allow us to remain a competitive trading and exporting nation. We hope that the implementation of tax revenue-raising measures will be balanced against maintaining Malaysia’s attractiveness as an investment destination of choice. Where relevant, appropriate refinements to or transitional rules for the tax proposals should be introduced, to support businesses.
Guided by the 12th Malaysia Plan, Budget 2022 sets the economic compass for Malaysia’s recovery. As Malaysia transitions to the endemic phase, Budget 2022 proposes a balanced set of measures to strengthen recovery, build resilience and drive reforms.
Dato’ Abdul Rauf Rashid
EY Malaysia Managing Partner
The formulation of Budget 2022 shows a continuing trend of consultation, focus group discussions and engagement by the Ministry of Finance, including the publication of a Pre-Budget Statement and four Public Consultation Papers. Such initiatives are consistent with international best practices and help ensure that the Budget proposals have taken into account the views of a diverse range of stakeholders. The announcement that the Prime Minister will chair an oversight committee coordinated by the Ministry of Finance to ensure the proposals achieve the targeted objectives, will enhance the governance and effective implementation of the various programmes and projects.