Budget 2025 To Facilitate More Broad-based Wealth Creation In Capital Market 

KUALA LUMPUR, Oct 19 (Bernama) -- The measures in Budget 2025 are set to ensure that the capital market can facilitate greater and more broad-based wealth creation, said Securities Commission Malaysia.

In a statement, chairman Datuk Mohammad Faiz Azmi lauded the government’s commitment to broadening opportunities for businesses of all sizes, especially access to financing for startups, micro and small medium enterprises and mid-tier companies, and deepening investment choices and opportunities for investors.

“We are encouraged by specific measures to broaden diversity, a continuing focus on retirement needs, in particular the extension of tax relief for private retirement schemes, and steps towards a more sustainable economy with the introduction of a carbon tax.

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“Additionally, we look forward to onboarding founding family investors and family office investment professionals and supporting the inward flow of this form of capital,” he said.

Malaysian Rating Corporation Bhd group chief executive officer Arshad Mohamed Ismail welcomed the initiatives outlined in Budget 2025 to further solidify Malaysia’s position among global leaders in the capital market, particularly in Islamic finance.

He said that the allocation of RM100 million in matching funds to spur innovation in Islamic financial products, focusing on climate finance and food security, is a testament to the intersection of environmental, social, and governance principles with Islamic finance.

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“The forward-looking policies introduced to advance Islamic finance will play a crucial role in driving sustainable economic expansion and attracting global investments,” he said.

Meanwhile, Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar said Budget 2025 places a renewed emphasis on environmental and social action.

He said the introduction of a carbon tax on the steel and energy industries by 2026, aimed at encouraging the adoption of low-carbon technologies, is a significant step towards reducing the country’s carbon footprint.

“We are also hopeful that the multi-faceted incentives under Budget 2025 can drive business growth as the various initiatives cover human capital development and digital adoption.

“Apart from that, Bursa Malaysia will continue our efforts to encourage and support listed companies to grow and focus on performance (including having at least 30 per cent of women on the board of public listed companies, creating value for shareholders and contributing to the nation,” he said.

Fund manager Permodalan Nasional Bhd (PNB) opined that the initiatives aimed to bolster economic resilience and promote inclusivity and sustainable development for all citizens.

As a government-linked investment company, PNB reaffirmed its commitment to playing a proactive role in nation-building initiatives and working closely with the government to ensure a prosperous future for the country driven by collaboration, innovation, and a shared vision for progress.

“We fully support the initiatives outlined in the budget, especially on the continued targeted rationalisation of subsidies to further strengthen the government’s fiscal position.

“Focused promotion of new investments particularly in technology, automation and electrical and electronics sectors and initiatives to improve living wages and labour productivity,” it said in a statement.

PNB also expressed gratitude for the government’s support of Celik MADANI in encouraging student savings and tax exemption on dividends for Amanah Saham Nasional Bhd (ASNB) funds.

-- BERNAMA