4/9/2015

[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

[SHARE] 12 Expert Opinions On The Pros

And Cons Of Budget 2014
PublishedbyMeiMeiChu28Oct2013,03:58PMUpdatedabout1yearago

HowwillBudget2014affectourspendinghabitsandMalaysia'sfinancialgrowth?
AnalystsandeconomistssharetheirthoughtsonBudget2014here.

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#news #budget2014 #money #politics #najib

1. Global Movement of Moderates (GMM): Measures for prudent

govt spending and cutting corruption is missing from Budget 2014

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

Imageviaimgur.com

TheAuditorGeneral'sReport2013revealshundredsofbillionsofringgitwastedandmismanagedbygovernment
bodies.ImagefromTheStar.

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

2. The Edge: GST at 6% will cause a spike in inflation, but Budget

2014 is a brave and good budget

3. Deloitte Malaysia: More than 85% of Malaysians don't pay taxes,

GST will distribute the burden of paying tax across all Malaysians

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

4. IDEAS: The govt should set a time frame for GST at 6% as to not
arbitrarily increase the percentage

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5. KPMG Tax Services: Lowering income tax to give people more

disposable income balances the burden of GST

6. Economists: GST will boost the country's economy as it gives the

govt a steady source of revenue
TheGoodsandServices(GST)thatwasannouncedbyPrimeMinisterNajibTunRazak
lastFridayisexpectedtobeboosttheeconomyasitwouldnowallowthegovernment
tohaveapredictablesourceofrevenue,economistscontactedbyTheMalaysian
Reservesaid.
freemalaysiatoday.com

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

TOP

FEEDBACK

Imageviasavemoney.my

WillGSTcauseinflation?ImagefromSaveMoney.

WhiletheGSTisexpectedtoraisemorerevenuewithitsbroadertaxpayerbase,
corporateincometax,incometaxforsmall,mediumsizeenterprises,cooperative
incometaxandindividualincometaxrateshaveallbeenreducedinsomemeasures.
ibtimes.com

7. Economists: Budget 2014 shows the govt's commitment to

reducing fiscal deficit
JohanMahmoodMerican,TalentCorpMalaysiaBhdCEO:
TheGovernmenthasshowninthisbudgetthatbesidescommittingtomanagingthe
financesandreducingthefiscaldeficit,ithasshownacommitmenttoinvestingin
humancapitaldevelopment.
thestar.com.my
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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

TanSriTehHongPiow,PublicBankBhdchairman:WewelcometheGovernments
firmcommitmenttocontinueaddressingthecountrysfiscalchallengebyfurther
reducingthebudgetdeficitfrom4.0%ofGDPin2013to3.5%in2014,througha
combinationofeffortsinincreasingrevenueandcontrollingofexpenditureofthe
Government.
thestar.com.my

TanSriAzmanMokhtar,KhazanahNasionalBhdMD:Thisbudgetis,aboveall,for
economicrebalancing.ThisstatesclearlythatMalaysiasfuturegrowthshouldnotbe
drivenbytheexpansionofdebt,butratherbymovinguptheglobalvaluechaininan
inclusivemannerwhichleavesnocitizenbehind.
thestar.com.my

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

Imageviagoogleusercontent.com

Malaysia'sgovernmentexpenditureanddeficit

8. Economists: Budget 2014 structural reforms are essential to drive

higher market growth
TANSRIAZMANHASHIM,MalaysianInvestmentBankingAssociation:Budget2014s
effortsatstructuralreformsareessentialtogeneratehighergrowth.Itrelatesto
boostingcompetitiveness,improvingproductivity,embracinginnovationculture,while
focusingonboostingqualitygrowth.
thestar.com.my

GANENGPENG,HwangInvestmentManagement:Fromamarketperspective,the
budgetisastepintherightdirectionwhileareturnofglobalgrowthandthedelayin
quantitativeeasingtaperingwillprovideimpetustodrivethemarkethigherbytheyear
end.
thestar.com.my

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

DatukAbdulFaridAlias,MalayanBankingBhdpresident:Thecontinuationofhigh
impactmajorinfrastructureandinvestmentprojectsispositiveforthebankingindustry
andthecapitalmarketintermsofcontinuingtosupportingfundraisingandmarket
activities.
thestar.com.my

Imageviatheborneopost.com

Economists:Budget2014structuralreformsareessentialtodrivehighermarketgrowth

9. Fitch Ratings: Budget 2013 shows constructive steps to lower

deficit but implementation is key
Thelatestbudgetcontainsthreekeyannouncementswhicharepotentiallyconstructive
forMalaysia'ssovereigncreditprofile.Oneistherestatedcommitmenttotheexisting
objectiveofaFederalGovernmentdeficitof3.5%ofGDPin2014,and3%by2015,
signalingapotentialintensificationofeffortstoconsolidategovernmentfinances.
reuters.com
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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

Secondisabudgetedreductioninsubsidyexpenditure.However,Fitchpointsoutthat
thestepstoachievingthisoutcomearenotyetfullyidentified,andremainsubjectto
externalshocks.
reuters.com

ThirdistheproposedintroductionofthelongmootedGSTinApril2015,ataninitialrate
of6%.Fitchfeelsthisisakeyreformwhichcouldstrengthenthecreditprofileby
broadeningtherevenuebaseandlesseningthebudget'sdependenceonpetroleum
derivedrevenues.
reuters.com

Theupshotofallthisisthatbudgetdeficitreductionisheavilyreliantonexpenditure
restraint,andatrackrecordofsoundbudgetmanagementandimplementationwillbe
integraltoourassessment
reuters.com

Imageviathemalaysianinsider.com

FitchRatings:Budget2013showsconstructivestepstolowerdeficitbutimplementationiskey

10. BBC: Cut backs, such as the sugar subsidy, are needed as the
http://says.com/my/news/makingsenseofmalaysiabudget2014analysis

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

govt spends about RM4000 a year per family to keep the cost of
essential items artificially low

Imageviamkini.net

Petrolsubsidycutbacks

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

11. BBC: Businesses will only suffer from the price increase for a
short while. Once the government can cut back on spending and
boost revenues, it can then spend money to boost projects with
high paying jobs

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Imageviayimg.com

Budget2014breakdown

12. International Business Times: The increase of sugar price will

have a serious effect on the price of other products
Theincreaseinsugarpriceswillhaveaseriesofeffectsonotherproducts,andthose
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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

alreadystrugglingwiththehighcostoflivingmayneedtofurthertightentheirbelts.
ibtimes.com

Imageviagoogleusercontent.com

Inflationduetoincreaseofpetrolandsugarprice

"Shopsaregoingtoincreasethepriceofdrinksbyatleast10sen[0.1ringgit]perglass.
Otherpriceswillgoupaswellandwewillfeelthepinch,"JasonTan,a24yearold
insuranceagent,said.
ibtimes.com

Other Budget 2014 stories

8 Most Epic Lines From Najib In His Budget 2014
Announcement
NajibhasacareerinstandupcomedyafterhisPMdays.
[CLICKONLINKFORFULLSTORY]
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says.com

[INFOGRAPHICS] COMPLETE Budget 2014

Highlights And How You Fit In
NajibhastabledtheBudget2014inParliamentat4pmon25
October2013.Besidesjestingtheopposition,Najibmade...
says.com

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[SHARE]12ExpertOpinionsOnTheProsAndConsOfBudget2014

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