According to Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Budget 2023 will need to include policies to reduce the negative impacts of the recession on the global economy.
Alexander Chia is an analyst of RHB Investment Bank. According to Alexander, the government needs to produce a market-friendly Budget in 2023 for individuals and businesses. The analyst expects that Budget 2023 will emphasize automation, technology and sustainability.
Budget 2023: Economists expect fiscal buffers
Furthermore, there might be more punitive taxes on counterproductive sectors like breweries and tobacco. However, Chia opined that the government might not increase gaming taxes as the sector faced huge setbacks due to the pandemic.
Lee Heng Guie is the ED of the Socio-Economic Research Centre. He suggested that Budget 2023 should focus on mitigating the negative effects of inflation, reviving private investment, and supporting the tourism industry.
According to Lee, Malaysia’s economy remains vulnerable. Thus, the country needs fiscal buffers to support the economy and prevent an economic contraction. He opined that the government would have to resolve the issue of inflation, which will reduce the spending power of individuals and businesses.
Lee said that most businesses do not welcome the increase in taxes in Budget 2023 because the businesses are facing difficulties in managing costs.
