Azman says the budget would also likely to be fiscally responsible on the back of a challenging global economic environment. — Bernama photo
KUALA LUMPUR: Khazanah Nasional Bhd sees a continuation of a pro-growth and pro-society focus in the upcoming Budget 2017.
Managing director Tan Sri Azman Mokhtar said the budget would also likely to be fiscally responsible on the back of a challenging global economic environment.
He added that the country needs to keep the growth engine going to support its development.
“The global conditions are quite challenging, but I think Malaysia has many strengths, with geography being one.
“I think we can build on that and we look forward to playing our part,” he told reporters on the sidelines of the first day of the Khazanah Megatrends Forum 2016 yesterday.
Meanwhile, CIMB Group Holdings chairman Datuk Seri Nazir Razak said the government must show fiscal prudence in the upcoming budget announcement to show that despite the difficult external conditions, it can achieve a lower fiscal deficit.
The government targets to reduce the fiscal deficit to 3.1 per cent in 2016 and further improve it next year.
“The 2017 Budget must confirm that lower fiscal deficit will be achieved through rigorous spending management.
“Of course the government will announce plenty of incentives, and that is fine. However, they must know where to cut and where to spend,” he said.
Citing an example, Nazir said good areas that should be allocated more funding would be education and infrastructure.
Meanwhile, when asked wether CIMB Bank expects another overnight policy rate cut by Bank Negara Malaysia this year, Nazir did not discount the posibility, “These cuts cannot be done in isolation.
It is not just your own national dynamics but an international dynamics.
“It can impact the currency, so you have to look at it on the relative value perspective,” he added.
Themed “Geography as Destiny”, the two-day forum has attracted more than 1,000 local and foreign participants. — Bernama