Friday, 10 July 2020

2021 Budget

Our Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced that our 2021 budget will consist of four broad themes:-

  • Caring for the people
  • Steering the economy
  • Sustainable living
  • Enhancing public service delivery

Caring for the people

This theme will prominently feature education, employment, social protection and social mobility. The government wants to build new foundations for our economic and and social systems to create a fairer and more wholesome future. 

Steering the economy

This theme will consist ensuring gross domestic product (GDP) growth for 2021, increasing foreign direct investment (FDI) and consumer confidence. 

Sustainable living

Despite the Covid-19 pandemic, the momentum for sustainable investing had not slow down. In fact, companies that embraced and practised environmental, social and governance (ESG) performed better. In Malaysia, our current ESG related incentives include:
  • Tax exemptions for management fee incomes for fund management companies managing socially responsible investing (SRI) funds and syariah compliant funds
  • The extension of tax deduction for the cost of issuing SRI sukuk
  • The extension of the green investment tax allowance (GITA)
  • Green income tax exemption (GITE)

Enhancing public service delivery 

Under this scheme, the government intends to support the people and businesses and become more outcome-focused in a targeted manner. Tengku Zafrul said the measures introduced should be impacting live and livelihoods in a meaningful way and not just about the amount of funds disbursed. 

The upcoming budget is scheduled to be tabled on 6 November 2020. We'll just have to wait patiently until then! 

Lochana Nanthacumar
Content Management Analyst
Wolters Kluwer Malaysia


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