2017 Budget: Focus on affordable housing, social security network

Budget 2017 is expected to focus on several critical issues, among them, affordable housing, social security network and re-skilling of graduates.

Minister in the Prime Minister's Department Datuk Abdul Rahman Dahlan said next year's budget would encompass steps to provide an efficient social security network for the people during a challenging economic environment.

"Besides, we also need many training programmes to teach fresh graduates new skills to make them more relevant to industry needs," he told reporters after officiating Softec Asia 2016' here today.

Abdul Rahman, who is in charge of the Economic Planning Unit, said for the middle 40 percent income bracket (M40), apart from tax reliefs, the government was also expected to study ways of reducing their monthly fixed expenses.

"If we can't increase salaries, as requested, maybe we can look at reducing the monthly payment component with the collaboration of the private sector," he said, adding that this would increase the purchasing power of the M40 and boost the country's economic growth.

In another development, Abdul Rahman blasted some irresponsible quarters and warned them to stop spreading messages on the social media, linking the closure of several bank branches in the country to the current economic downturn.

The ringgit was also projected to depreciate to RM4.50 against the US dollar and this, he pointed out, was politically-motivated to sabotage and negatively impact the country's economy and government.

Abdul Rahman explained that some banks closed their non-profitable branches as part of a cost cutting measure to rationalise operations and this did not denote a contraction of the Malaysian economy.

The closure, he said, was also decided after taking into account the rising use of digital banking services usage which was more convenient and time saving.

"They (the banking institutions) feel that Malaysians are ready to enter the digital era, that's why they closed some of the branches to reduce their operating costs. I think it has nothing to do with the economy," he said.