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Budget 2021 reflects govt's commitment to support B40, M40 - MIDF
KUALA LUMPUR, Nov 6 -- Budget 2021 reflects the government’s commitment to provide support to the Bottom 40 (B40) group impacted by the COVID-19 pandemic, opines MIDF Research.
In a statement today, it acknowledged the measures including expansion of “Program Baucar Perlindungan Tenang”, assistance to children of poor families, and replacement and improvement of “Bantuan Sara Hidup (BSH)” to “Bantuan Prihatin Rakyat (BPR)”.
“Besides this, the government is also providing initiatives to ease the burden of Middle 40 (M40) group, such as reduction of income tax for taxable income range of RM50,001 to RM70,000, reduction of contribution rate for the Employees Provident Fund (EPF) and withdrawal of EPF Account 1 for targeted group.
“Steps taken to support business continuity will ensure that businesses especially small and medium enterprises (SMEs) will be able to not only sustain but thrive under present economic conditions,” it said.
MIDF said various measures to drive investment in technology, supply chain, logistics and sustainable development and assistance to encourage the manufacturing as well as the consumption of domestic made products would foster a more conducive business environment.
“These activities would contribute towards creation of new job opportunities. In tandem with the various initiatives on employment, we believe that this will ensure that employment will return on its growth path,” it added.
The research firm is also of the view that the large expansion of the Development Expenditure (DE) of RM68.2 billion is positive given the need to support the revitalisation of the economy and provide a better quality of life and living environment.
“We believe that it is important the DE continues to be channelled to programmes and projects with high multiplier impact.
“Projects such as upgrading, expansion and maintenance of transportation networks and projects such as Electrified Double Track Gemas – Johor Bahru, Pan Borneo Highway, KVDT1, Rapid Transit System as well as the expansion of Kuantan Port and airport in Sandakan will give the impetus for the recovery to the economy,” it said.
Last but not least, with the war on COVID-19 not over, MIDF said Budget 2021 highlights the government’s continuing effort to contain and win against the pandemic.
“Increasing the COVID-19 fund ceiling will provide the government with much needed funds to continue to combat the pandemic. In addition to this, measures are there to ensure that Malaysia has access to the eventual vaccine,” it added.
-- BERNAMA
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