Banking Industry Seeks Well-balanced Strategic Initiatives In Budget 2025 - RHB
KUALA LUMPUR, Oct 13 (Bernama) -- RHB Banking Group has expressed optimism about Budget 2025, expecting it to deliver well-balanced strategic initiatives that address both immediate economic needs and lay a strong foundation for future growth.
Its acting group chief economist, Barnabas Gan noted key priorities such as investment in critical infrastructure projects, particularly those in transportation, utilities, and digital infrastructure, which are vital for enhancing regional connectivity and stimulating economic activity across various sectors.
“It is crucial for fostering long-term resilience, financial inclusion, and driving Malaysia’s sustainable growth trajectory,” he told Bernama about his expectations for Budget 2025, which will be tabled on Oct 18, 2024.
Gan also expressed hope for targeted measures supporting underserved communities, especially micro, small and medium enterprises (MSMEs) and small and medium enterprises (SMEs), which play an important role in the supply and value chains.
He emphasised that special funds, loan guarantees, and interest subsidies would be pivotal in ensuring these businesses could access financial services, enabling them to thrive in the current economic climate.
On sustainability, Gan noted the banking industry is optimistic about greater support for green financing and sustainable initiatives, aligning with the MADANI Economy Framework and the National Energy Transition Roadmap (NETR).
“We anticipate enhanced tax incentives and financial policies that encourage both public and private sectors to adopt sustainable practices, especially in renewable energy and other environmental, social, and governance-related investments.
“Green financing incentives, including tax breaks for long-term green deposits and renewable energy projects, will be crucial in accelerating Malaysia’s transition to a low-carbon economy,” he stressed.
Gan also suggested more targeted relief measures for individuals and businesses facing financial difficulties amid rising living costs.
He proposed expanded subsidy programmes, affordable housing schemes, and enhanced social safety nets.
Additionally, he highlighted the importance of promoting financial literacy and affordable financing solutions to help consumers manage inflationary pressures while fostering prudent financial habits.
“Budget 2025 presents an opportunity for stakeholders across industries to collaborate in fostering sustainable growth and financial inclusivity.
“We believe that a strategic, forward-thinking approach will enable Malaysia to navigate global economic uncertainties while positioning the nation for continued prosperity and resilience,” Gan said.
-- BERNAMA