PwC statement on Budget 2015 by our Executive Chairman, Dato' Mohammad Faiz Azmi

KUALA LUMPUR, 10 October 2014 -The good news about Budget 2015 is that there were no major surprises. This emphasises the Government’s commitment to be transparent in communicating their agenda, and to listen to the needs of the rakyat.

The Government should be lauded for continuing its goal of reducing the fiscal deficit to 3% which shows good fiscal governance.

The People Economy, the theme of Budget 2015, was reflected in the measures announced to assist in the development of human capital and entrepreneurship, and prioritising the well-being of the rakyat.

The Government has a target to grow the SME contribution to 41% of GDP by 2020. As a result, several initiatives were announced to assist the SMEs to reach this target by focussing on automating and increasing the use of technology.

To drive entrepreneurial activity amongst the various segments of the community, the Government announced measures to assist Bumiputera, Young Indian, Young Professional Women, Armed Forces Veteran and Chinese small traders.

As Malaysia embraces GST in 2015, the Government is continuing to ease the burden of the rakyat by widening the goods that will not be subject to GST and this extends to fruits, bread, coffee, newspaper and medication amongst other things. This is in addition to exempting RON95 petrol and a portion of the electricity cost.

The Government heeded the concerns of many quarters by providing assistance for first time home owners through interest subsidies and partial stamp duty exemption. Subsidies were also announced for the farming and fishing communities, and the upgrading of facilities and infrastructure in Sabah and Sarawak.

As accountants, we are pleased that the Government recognises the need to grow the profession by establishing a Professional Accounting Centre in University Teknologi MARA in collaboration with Malaysian Institute of Accountants. This will help enlarge the pool of Bumiputera professional accountants to serve the country.

The Government acknowledges that women play a pivotal role in national development. To enhance their participation in the workforce, a few programmes were introduced – Strengthening Women Directors Programme to train 125 potential women directors and TalentCorp’s Women Career Comeback Programme to encourage professional women to return to the job market.

Overall, Budget 2015 is responsive to the needs of the ordinary Malaysian whilst balancing the need for fiscal governance.

ENDS