Malaysia: Budget 2021 to have 4 main themes

  • BUDGET 2021, to be unveiled on 6 Nov 20, will have four main themes, namely caring for the people, steering the economy, sustainable living and enhancing public service delivery, said Finance Minister Tengku Zafrul Tengku Abdul Aziz.
  • “First, on caring for the people. The first goals of the Prihatin Rakyat stimulus package and National Economic Recovery Plan (Penjana) are to protect and empower the people, respectively,” he said in his speech at Invest Malaysia 2020 in Kuala Lumpur on 7 Jul 20.
  • The theme of steering the economy includes ensuring gross domestic product growth for 2021, and increasing foreign direct investment and consumer confidence, he said.
  • Boosting the use of technology in both the public and private sectors to spur economic growth also falls under this theme.
  • He said Bursa Malaysia, the Securities Commission and Bank Negara Malaysia (BNM) have continuously introduced and supported measures to increase the transparency, dynamism and vibrancy of the country’s capital and financial markets.
  • On sustainable living, he said the coronavirus crisis has forced businesses and individuals to step up not just digitally, but also from an environmental, social and governance (ESG) perspective.
  • As for the theme of enhancing public service delivery, he said Putrajaya aims to be outcome-focused, and support people and businesses in a more targeted manner.
  • The minister said Malaysia has remained resilient despite strong headwinds, including the Asian and global financial crises, thanks to its sound economic fundamentals and well-developed institutional framework.
  • He said the country’s foreign currency external assets continue to exceed its foreign currency liabilities at 95% against 45%. He added that international agencies have forecast the nation’s GDP for 2021 to be within the range of 6.3% to 7.5%.
  • The projection is subject to Malaysia’s continued success in managing Covid-19 and its economic impact, he said.
  • “As Malaysia is an open economy, whether we will see a U-shaped or V-shaped recovery will depend on external factors, such as the recovery of our major trading partners and the restoration of global supply chains.”
  • For 2020, the GDP is estimated at between -3.8% and 0.5%, he said.
  • BNM has projected growth to be between -2% and 0.5%, the International Monetary Fund (-3.8%) and World Bank (-3.1%).

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