The year 2021 had been one of thought, anticipation, and examination. Many people predicted that 2021 will be a year of economic and social revival at the start of the year. Malaysia was poised to benefit considerably from the economic rise as the year progressed, thanks to ambitious preparations in place, including a historic Covid-19 vaccine campaign.
Budget 2022 – Introduction
The past ten months have revealed that 2021 will be a more difficult year, with the worsening health crisis delaying economic recovery efforts significantly. The government's current priorities are to revive, recover, and revitalize the economy. Budget 2022 was presented against this context. Building on the economic goals announced in the previous year's budget, the Honorable Finance Minister presented the largest budget in Malaysian history in the hopes of hastening our recovery. Budget 2022, dubbed Keluarga Malaysia, Makmur Sejahtera, intends to address a variety of issues that Malaysian families face.
Budget Highlights
Direct cash assistance and the JaminKerja salary incentive show the government is serious about addressing challenges that affect Malaysia's most vulnerable citizens. While dealing with current difficulties, the government has kept an eye on the future, offering incentives for digital firms and reiterating its climate change goals with the launch of Malaysia's first ever voluntary carbon market
These precautions, however, have come at a price. A slew of reforms have been recommended to fix the budget. A one-time tax hike known as Tax Makmur would be imposed on corporations earning more than RM100 million in 2022, as well as the elimination of the long-standing tax exemption on foreign source revenue, are two of the most significant changes.
This expansionary budget not only contains built-in measures to promote resilience, but also appears to be taking strong action to address fiscal consolidation in the medium run. Despite its enormity, Budget 2022 provides a balanced and pragmatic approach to the country's finances, requiring all sectors of society to work together for the country's betterment. The budget will have a direct impact on the stock market as well. To get detailed insights about the aftereffects of the budget on the stock market, get in touch with our investment advisor now!
