YAB Perdana Menteri today tabled a fiscally responsible, balanced and ‘rakyat-centric’ budget, highlighting the Government’s continuous care for the well-being of all Malaysians as reflected in its theme “Prospering The Nation, Enhancing the Well-Being of the Rakyat: A Promise Fulfilled” (”Memakmur Negara, Mensejahtera Rakyat: Sebuah Janji Ditepati”).
Malaysia’s economic fundamentals remain strong. It is estimated that national growth for 2012 will expand between 4.5% and 5%. For 2013, the Malaysian economy is estimated to further expand between 4.5% and 5.5%. The fiscal deficit is expected to be reduced to 4% of GDP in 2013 from 4.5% in 2012. The nominal GDP is expected to exceed RM1 trillion for the first time in 2013. This higher growth will be driven by private investment and consumption.
Private sector activity will be supported by an accommodative monetary policy in an environment of low inflation coupled with a robust financial sector. On the supply side, growth in 2013 is expected to be broad-based, supported by expansion in all sectors of the economy. The services and manufacturing sectors will contribute 4.2% to the GDP growth. The services sector is expected to grow 5.6% in 2013 from 5.5% in 2012. This will be supported by the full implementation of the liberalisation of the 18 services subsectors.
The 2013 Budget reflects the Government’s commitment towards improving the investment environment and support for domestic companies, including Bumiputera SMEs. The RM1 billion Domestic Investment Strategic Fund, the RM 1 billion SME Development Fund, RM200 million Halal Industry Fund, RM50 million Young Entrepreneurs Fund are all aimed at facilitating access to financing, encourage business expansion and diversification.
The Domestic Investment Strategic Fund is to accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industries.
The Fund aims to harness and leverage on outsourcing opportunities created by MNCs operating in Malaysia; intensify technology acquisition by Malaysian-owned companies; and enable Malaysian-owned companies to obtain international standards/certifications in strategic industries as well merge into larger entities.
The SME Development Scheme sees the implementation of the SME Masterplan 2012-2020. This Fund will help ease the burden of SMEs with respect to financing, which in turn would accelerate their growth, innovation and productivity.
Malaysia must lead the way in the development of Halal products and services. The Halal Industry Fund will ensure that SMEs involved in this sector will have the necessary support to help them expand into the global market. This would include Halal certification, meeting standards and marketing and promotion.
The Budget has also made available funds to encourage further innovation. This is specifically through the recognition of IPs as collateral to obtain financing. This fund is timely and significant as it creates the appropriate environment for more innovative and creative SMEs.
Clearly this Budget is inclusive and reaffirms that this Government is determined to fulfill its promises to the business community. We will work with the private sector to create a conducive, business-friendly environment, supporting domestic investment.
YB Dato’ Sri Mustapa Mohamed
Ministry of International Trade and Industry
Malaysia
28 September 2012
Malaysia’s economic fundamentals remain strong. It is estimated that national growth for 2012 will expand between 4.5% and 5%. For 2013, the Malaysian economy is estimated to further expand between 4.5% and 5.5%. The fiscal deficit is expected to be reduced to 4% of GDP in 2013 from 4.5% in 2012. The nominal GDP is expected to exceed RM1 trillion for the first time in 2013. This higher growth will be driven by private investment and consumption.
Private sector activity will be supported by an accommodative monetary policy in an environment of low inflation coupled with a robust financial sector. On the supply side, growth in 2013 is expected to be broad-based, supported by expansion in all sectors of the economy. The services and manufacturing sectors will contribute 4.2% to the GDP growth. The services sector is expected to grow 5.6% in 2013 from 5.5% in 2012. This will be supported by the full implementation of the liberalisation of the 18 services subsectors.
The 2013 Budget reflects the Government’s commitment towards improving the investment environment and support for domestic companies, including Bumiputera SMEs. The RM1 billion Domestic Investment Strategic Fund, the RM 1 billion SME Development Fund, RM200 million Halal Industry Fund, RM50 million Young Entrepreneurs Fund are all aimed at facilitating access to financing, encourage business expansion and diversification.
The Domestic Investment Strategic Fund is to accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industries.
The Fund aims to harness and leverage on outsourcing opportunities created by MNCs operating in Malaysia; intensify technology acquisition by Malaysian-owned companies; and enable Malaysian-owned companies to obtain international standards/certifications in strategic industries as well merge into larger entities.
The SME Development Scheme sees the implementation of the SME Masterplan 2012-2020. This Fund will help ease the burden of SMEs with respect to financing, which in turn would accelerate their growth, innovation and productivity.
Malaysia must lead the way in the development of Halal products and services. The Halal Industry Fund will ensure that SMEs involved in this sector will have the necessary support to help them expand into the global market. This would include Halal certification, meeting standards and marketing and promotion.
The Budget has also made available funds to encourage further innovation. This is specifically through the recognition of IPs as collateral to obtain financing. This fund is timely and significant as it creates the appropriate environment for more innovative and creative SMEs.
Clearly this Budget is inclusive and reaffirms that this Government is determined to fulfill its promises to the business community. We will work with the private sector to create a conducive, business-friendly environment, supporting domestic investment.
YB Dato’ Sri Mustapa Mohamed
Ministry of International Trade and Industry
Malaysia
28 September 2012
