Bank CEOs laud Budget 2019 measures

KUCHING: Malaysian banks welcomed the government’s targeted measures to promote growth, attract investment, reduce cost of mega projects, and the focus on private-public partnerships to drive the economy.

Standard Chartered Malaysia managing director and chief executive officer Abrar A. Anwar said artificial intelligence and digitisation are two areas in which he sees great potential, especially for the financial services sector, which should tap into the infinite potential of technology to innovate and improve.

“We welcome the move by the government to invest in the future and move into the Industrial Revolution 4.0 through the High Impact Fund,” he continued.

“AI will be a huge boost to the financial services industry as it helps to improve the client experience, lower costs and reduce fraud.

“We see the government continue to prioritise Islamic financing. Standard Chartered is the first international bank to offer Islamic products in the country, and we laud the move to grow this sphere via an extension on tax deductions when issuing sukuk.

“We also welcome the setting up of a special committee for Islamic finance, to be led by the Finance Ministry. These will ensure that Malaysia continues to lead the way in Islamic financing.”

Meanwhile, OCBC Bank chief executive officer Datuk Ong Eng Bin was equally heartened by the approach taken to spend more wisely and the much-need single-minded focus on the cross-section of society that deserves the most attention.

“Overall, Budget 2019 balances prudence with realistic spending in the current uncertain economic climate of rising global interest rates as well as tensions from the trade war between the US and China,” he said in a statement.

Abrab also lauded the government’s moves to grow the halal product industry in Malaysia and making the country into a global halal hub by 2020, with an RM100 million allocation to grow the SME segment.

“We also laud the further allocation of MYR1 billion for a syariah-compliant SME Financing Scheme to finance halal products exporters by Islamic financial institutions.

Meanwhile, Public Bank founder and chairman Tan Sri Dr Teh Hong Piow affirmed that Budget 2019 has been crafted with wholesome and inspiring approaches to enhance the well-being of the people as well as to promote the entrepreneurial culture among businesses for Malaysia to return to the status of “Asia Tiger”.

“Specifically, towards strengthening the fiscal management of the country, we applaud the unprecedented institutional reform initiatives proposed such as the Fiscal Responsibility Act, Government Procurement Act and zero-based budgeting,” he said in a statement.

“In promoting housing for all, we welcome the various measure proposed in the Budget 2019. These measures would benefit the low-income group, first time home buyers, government servants, and also addressing the current overhang situation of residential properties.”

CIMB Group’s group chief executive Tengku Dato’ Sri Zafrul Aziz saw that there was sharper focus on addressing bread-and-butter issues, as well as better public health care for the B40, through assistance such as petrol and electricity subsidies, cost of living allowance, the B40 National Health Protection Fund and free medical screening for those above 50.

With such holistic support, Zadfrul believed the B40 group should be in a better position to improve their livelihoods and live more productively.

“Various policies and incentives with beneficiaries such as ex-convicts, the differently abled, women in the workforce, senior citizens and minority groups reflect a sensitivity towards ensuring societal inclusion for as many Malaysians as possible, and to ensure that everyone will have a chance to contribute to and benefit from the nation’s economic progress.

“The government’s commitment to facilitate home ownership is evident in policies that will benefit both the B40 and M40. CIMB is equally committed to assisting the government in facilitating home ownership by eligible borrowers in the B40 category.

“As an alternative form of financing for homebuyers, the property crowdfunding and peer-to-peer lending for home ownership has its own unique risk-returns paradigm, which, if properly regulated and monitored, could work well.

“We support the Government’s effort to ensure minimal overlap of functions between agencies and entities, both public and private. Better streamlined roles and responsibilities would facilitate clarity and governance, which will pave the way for attracting more investments into the country.”