Increase in development expenditure to provide impetus for more inclusive economy

KUALA LUMPUR: The significant increase in gross development expenditure (DE) in Budget 2023 is in line with the aspiration of the 12th Malaysia Plan and will provide the necessary impetus for a more inclusive boost to the economy.

MIDF Research said Budget 2023 has lined up a comprehensive development of the nation's infrastructure as it includes building and upgrading of road, rail as well as rural and urban infrastructures.

"The expansionary budget is unsurprising. However, we were surprised by the significant increase in DE to RM95 billion from RM75.6 billion allocated in Budget 2022,'' MIDF Group managing director, Datuk Charon Wardini Mokhzani said in a statement yesterday.

He said MIDF Research also believed the efforts to increase foreign direct investments (FDI) via various incentives such as relocation incentives to attract affected electrical and electronics sector investors and proposing granting Pengerang Petroleum Complex a special status for chemical and petrochemical industry investment as cognisant of the opportunities that might stem from changing geopolitical realities.

"The magisterial Responsive, Responsible and Reformist Budget 2023 focuses on the well-being of the people.

"The business community will welcome these initiatives and the desire to bring our economy to the next level in the midst of a still challenging global business environment," he added.

Meanwhile, Khazanah Research Institute (KRI) is confident that Budget 2023 can achieve its goals towards strengthening economic recovery and the well-being of Keluarga Malaysia.

Chairman Tan Sri Nor Mohamed Yakcop said the measures announced are in line with the challenges the country will face in 2023, the continuation of global economic uncertainty as well as geopolitical conflicts and supply chain disruptions that contribute to inflation.

"KRI strongly agrees with the focus given to the four main segments, namely the people, business, economy and government," he said in a statement yesterday.

Nor Mohamed said Budget 2023 continues to support the creation of job opportunities, strengthening social protection, guaranteeing food security, addressing the impact of climate change and boosting economic activities driven by digital technology in line with the Shared Prosperity Vision 2030.

-- BERNAMA