BPMB’S RESPONSE TO BUDGET 2022 ANNOUNCEMENT
As you prepare your article(s) for corporate responses to Budget 2022, we hope that you can feature Bank Pembangunan Malaysia Berhad (BPMB). Thank you for your kind support.
The following responses are to be attributed to:
Name : Arshad Ismail
Designation : BPMB President/Group Chief Executive Officer
We would like to thank the Government for tabling the RM332.1 billion Budget 2022 with Rakyat-friendly incentives and various other timely and much-needed stimulus measures to revitalise the economy. The fiscal policy reflects a balanced approach by the Government in protecting lives and livelihoods, rebuilding national resilience and catalysing socio-economic reforms.
The additional measures to ease the impact of COVID-19 on the Rakyat and businesses are of particular significance and importance as we move towards returning to normalcy in support of Malaysia’s National Recovery Plan. With total expenditure raised by 3.6%, the Government expects economic recovery to accelerate next year, with the real GDP growth picking up to 5.5 - 6.5% from the estimated 3.0 – 4.0% in 2021.
The three main areas of focus, i.e. “Recovery, Resilience and Reform” (3R) is a testament that Budget 2022 is not merely a recovery budget, but also a step-up in efforts to spur the growth drivers and game changers targeted under the 12th Malaysia Plan, particularly in those high impact and strategic industries. The greater focus on healthcare spending as well as developmental spending for less developed states, will boost the well-being of the Rakyat and ensure more broad-based economic growth going forward.
We applaud the Government’s efforts in providing aid to those most affected by the pandemic, whilst providing incentives towards digitalisation and SDG-related goals as we continue to embrace the new normal. Some of these economic sectors have begun to see signs of firmer recovery hence they need to build up their resilience in order to ensure survivability and a sustainable growth path.
As a Development Financial Institution, we acknowledge that there is a need for BPMB to play an enhanced role in supporting the government towards meeting its medium-term growth aspirations. BPMB will be allocating up to RM100 million to the Malaysia Co-investment Fund whereby the objective is to provide financing support at low rates to Micro, Small and Medium Enterprises (MSMEs).
On top of that, BPMB will also be providing a new scheme i.e. Rehabilitation and Support through Equity (RESET) to help companies facing gearing or leverage problem. This scheme is an addition to our existing schemes namely the Industry Digitalisation Transformation Scheme, Sustainable Development Financing Scheme, Maritime & Logistics Scheme, Tourism Infrastructure Scheme, Public Transportation Scheme and National Development Scheme that remain until December 2023.
We are committed to supporting sustainable recovery as well as nurturing new growth sectors and pursuing regionally balanced growth for the country.