Budget 2021 to get economy into faster recovery mode - KPMG

KUALA LUMPUR: The initiative to encourage the domestic production sector with an allocation of RM300 million towards driving an online trading environment for local manufacturers and traders as spelled out in Budget 2021 is set to move the country and economy towards a faster recovery mode.

KPMG in Malaysia head of tax Tai Lai Kok said this was a good recognition that the traditional methods of doing business were rapidly getting outdated and businesses risked being left behind in a globalised world where one can purchase virtually anything online.

“Opening up our goods to the outside world using technology will do wonders to enable our locally made goods to enter markets that were inaccessible in the past,” he said in a statement.

Budget 2021 was tabled by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz in Parliament yesterday.

Tai said another innovative proposal involves the granting of a limited tax deduction to individuals for amounts invested in Equity Crowdfunding ventures.

“Equity Crowdfunding has been around for a while and it is interesting to see an incentive being introduced to give a boost to this sector,” he said.

Hence, he said it is to be noted that the Securities Commission Malaysia would be involved in monitoring these Equity Crowdfunding ventures to give some degree of comfort and assurance to investors who may wish to participate.

Tai said the budget is notable as it is a bold and expansionary one despite the expectation that Malaysia’s economy would contract by as much as 4.5 per cent this year.

“Critical areas and sectors are being addressed, fully acknowledging the pain and discomfort of Malaysians, particularly the B40 (household income group) and the worst affected economic sectors like tourism and travel,” he added.

--BERNAMA