According to the Ministry of Finance, Budget 2022 will be prepared with the idea that the economy will recover from the consequences of Covid-19 following year (MoF).
According to the Ministry of Finance, the budget will endeavour to ensure that no individual or business is left behind in getting government assistance and support, particularly those who would be adversely impacted by the extended Movement Control Order (MCO) in 2021.
This budget also serves as a stimulus for the execution of the 12th Malaysia Plan (12MP), which is based on the Sustainable Development Goals (SDGs) and the Shared Prosperity Vision 2030 (SPV2030), and will drive economic growth, inclusion, and sustainability in the medium term.
According to the Pre-Budget Statement, the 12MP is the first step of implementing SPV2030, therefore Budget 2022 will be linked with the 12MP priorities, which will be introduced to Parliament in September.
In short, Budget 2022 will be written with the goal of protecting and promoting people’s lives and livelihoods, restoring economic resilience, and catalysing socio-economic reforms. “Protecting and promoting the recovery of lives and livelihoods,” the Ministry of Finance stated.
Budget 2022, according to the ministry, would ensure that the NRP – which was started in June as an exit strategy to progressively move out of the Covid-19 problem in phases – continues to drive economic recovery.
Budget 2022 would continue to preserve and drive the recovery of lives and livelihoods following the crisis, it added, in order to secure the country’s success and ability to escape the crisis.
The administration would also push for the revival of economic sectors, particularly those that have been hit hard, such as tourism and retail, according to the statement.
Budget 2022 will focus on boosting digital and technology infrastructure as a vital element for the country’s economic and social system’s future continuity, according to the Pre-Budget Statement, in addition to the development and maintenance of physical infrastructure.
Digital infrastructure and apps would also play a key role in the business sector during the MCO, ensuring that economic sectors remained functioning and productive. According to the Ministry of Finance, the crisis has highlighted the necessity for the country to move to industrial sectors with higher efficiency based on automated technology and higher skills.
As a result, it stated that an emphasis will be placed on speeding up the transition to IR4.0 and digital transformation, as well as increasing human capital capabilities through upskilling and reskilling programmes based on labour market needs.
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KUALA LUMPUR (Aug 31): Budget 2022 will be drafted with the expectation that the economic situation will recover from the effects of Covid-19 next year, said the Ministry of Finance (MoF).
“As such, Budget 2022 will focus primarily on continuing to protect and restore the lives and livelihoods of the people and businesses, rebuild national resilience and catalyse postpandemic reforms,” the ministry said in its 2022 Pre-Budget Statement released today.
MoF said the budget will strive to ensure that no person or business is left behind in receiving the government’s assistance and support, especially those severely affected by the prolonged Movement Control Order (MCO) in 2021.
In addition, this budget also serves as a catalyst towards implementation of the 12th Malaysia Plan (12MP) that will drive economic growth, inclusiveness and sustainability in the medium term, based on the sustainable development goals (SDGs) and Shared Prosperity Vision 2030 (SPV2030), it said.
“The government will undertake various engagement and consultation sessions to obtain input and suggestions from various parties to ensure that the drafted budget is comprehensive and inclusive, in line with ‘Keluarga Malaysia’ spirit,” it added.
The Pre-Budget Statement said the 12MP is the first phase of the implementation of SPV2030, and therefore Budget 2022 will also be aligned with 12MP priorities that are scheduled to be tabled to Parliament in September.
“Aspects emphasized in the 12MP, namely growth, inclusion and sustainability, as well as key catalysts will be the basis for formulating and implementing initiatives for Budget 2022.
“A coordinated implementation will ensure a more cohesive and structured actionable measures to achieve short- and medium-term goals for national prosperity;” it said.
According to the statement, with the scenario of the nation recovering from the health and economic crisis, Budget 2022 will be formulated with priority towards:
(a) Continuing programmes to support and spur economic recovery in line with the gradual reopening of the economic sectors through the National Recovery Plan (NRP), as well as addressing potential lingering and longer-term effects of the pandemic crisis on public health and economic structure;
(b) Ensuring continuity in policy and assistance provided to the people and businesses through strengthening resilience in facing crises by protecting means of livelihoods and income opportunities for people and businesses; and
(c) Catalysing structural reforms in the post pandemic period in order for the nation to emerge more competitive, in addition to ensuring greater sustainability and inclusiveness in its development agenda.
“In summary, Budget 2022 will be formulated with the objective to protect and drive recovery of lives and livelihoods for the people, rebuild resilience of the economy and catalyse socio-economic reforms. Protecting and driving recovery of lives and livelihoods,” MoF said.
The ministry said Budget 2022 will ensure continuity of the NRP – which was launched in June as an exit strategy to gradually transition in phases out of the Covid-19 crisis – in driving economic recovery.
To ensure the nation is successful and able to exit from this crisis, Budget 2022 will continue to protect and drive recovery of lives and livelihoods post crisis, it said.
The government will also drive recovery of economic sectors, especially those badly affected such as tourism and retail sectors, it said.
“Budget 2022 will also focus on efforts to help the vulnerable and disadvantaged segments of society, women, indigenous people and the disabled, to ensure no one is left behind in the nation’s developmental and recovery agenda.
“In addition, continued efforts to protect and generate new job opportunities will continue to be a priority,” it added.
The Pre-Budget Statement said in addition to the development and maintenance of physical infrastructure, Budget 2022 would also focus on enhancing digital and technological infrastructure as a core element for the continuity of the country’s economic and social system in the future.
“From an education perspective, digital infrastructure and applications also need to be upgraded to enable the education system to adjust towards supporting online education from home,” it said.
For the business sector, digital infrastructure and applications would also play an important role during the MCO, in ensuring economic sectors remain operational and productive.
MoF said this crisis has also exposed the need for the nation to transition to industrial sectors with a higher level of productivity based on automated technology and higher skills.
Hence, it said emphasis would also be given to accelerate the transition towards IR4.0 and digital transformation, in addition to raising human capital capabilities through upskilling and reskilling programmes based on the needs of the labour market.
“Budget 2022 will also evaluate the means to rebuild fiscal resilience that was affected by the high level of government commitments required to finance the stimulus packages and assistance to the people and businesses,” it added.
Source: Edge Prop