Malaysia has unnecessarily pulled the brakes on its economic progress further through its political inadequacies within a prevailing global macro economic slow-down. Prime Minister Abdullah Ahmad Badawi himself labelled the latest budget a “caring budget”, with most of the policies meant to address the immediate problems faced by Malaysians especially the impact of spiraling inflation on the price of food and fuel! These accommodating measures have also created a perspective among critics that the budget is angled towards a favorable election, though hopefully it does have a placating effect on the populace - which translates to a more stable socio-political environment for businesses to prosper.
As Malaysia tries to expand its business influence in the region, the government also recognises that the country’s ability to continually grow its pool of diverse skilled workers along with strong fiscal incentives will play a critical role in attracting foreign direct investment. This understanding is reflected in the budget with substantial government spend allocated for training and education and the incorporation of the Knowledge Workers Development Institute. In terms of fiscal measures, the Government has also several tax exemptions for businesses while hiring and investing in Malaysia and will also lower corporate tax to 25% in 2009. These definite steps taken to address inflation, education & business viability will hopefully support the country’s progress within the prevailing circumstances.
Friday, September 5, 2008
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