31 August 2021

Malaysia's 1st Pre-Budget Statement, making history today!

Prior to the Budget 2022 announcement, which is expected to be tabled in the Dewan Rakyat on October 29, the Ministry of Finance (MOF) has agreed to publish a Pre-Budget Statement (PBS) for Budget 2022 today. This PBS is the first in the nation’s history.

Why PBS?

It was said that the move is in line with international best practices, whereby a PBS is published to enhance the transparency of the budget process in formulating the annual budget, as well as increase public confidence – particularly among investors – in the country’s fiscal management.

Through the publication of the PBS, the Rakyat can track specific metrics such as:
  • The economic outlook based on global economic scenario, performance review of the Gross Domestic Product and macroeconomic outlook for 2022 as well as fiscal targets for 2021/2022;

  • The tax revenue performance status and tax measures announced under Budget 2021 and stimulus packages in 2021. The PBS document also covers the management of revenue leakages, Malaysia’s international commitments as well as strategies to increase tax revenue and strengthen the tax system; and
  • The public expenditure status for 2021 and factors in optimising and controlling expenditure.

A preview of what's going to be announced in the upcoming Budget?

Budget 2022 themes

The PBS also provides a preliminary overview on the direction, approach, and expected benefits of Budget 2022, which will be crafted based on the following objectives:
  1. Protecting and driving recovery of lives and livelihood
    Budget 2022 will drive the national recovery process to ensure that the nation successfully exits from the COVID-19 crisis, as well as continue the post-crisis recovery agenda to help lives, livelihoods and badly-affected economic sectors. Efforts to help vulnerable groups and generate new job opportunities will continue to be prioritized;

  2. Rebuilding national resilience
    Budget 2022 will emphasise on rebuilding the resilience and capacity of the nation's public health system, enhancing digital and technological infrastructure, especially within the education sector, and facilitating the nation’s transition to high productivity industrial sectors based on automated technology and high skills; and

  3. Catalysing reforms
    Budget 2022 will ensure that reform measures are implemented while focusing on achieving the Sustainable Development Goals, the Twelfth Malaysia Plan, and the Shared Prosperity Vision 2030.

In summary, Budget 2022 will be formulated with the objective to protect and drive recovery of lives and livelihoods for the people, rebuild the resilience of the economy and catalyse socio-economic reforms. 

In addition, Budget 2022 also serves as a catalyst towards the implementation of the 12MP that will drive economic growth, inclusiveness, and sustainability in the medium term, based on the SDGs and SPV2030.

Click here to download the full PBS.

Let's see how would it be on October 29, 2021. 

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