Kuala Lumpur, Friday, 25 October 2013 – The Association of Banks in Malaysia (ABM) supports the measures announced in Budget 2014 which are envisaged to boost the nation’s growth by reducing fiscal debt and strengthening the economy. It views the budget as a pragmatic one, setting the pace for Malaysia to be a high-income and developed nation.

The measures announced to raise the standard of living especially in the areas of education, healthcare, improving infrastructure and housing matters are indicative that the Government has taken into account the needs of the people.

ABM views the introduction of Goods and Services Tax (GST) in 2015 as a positive move for the country in the long-term. ABM and its member banks will work closely with the relevant authorities to ensure a smooth implementation of the GST for the commercial banking industry. The reduction in corporate tax and personal income tax in tandem with the introduction of GST will boost the development of Malaysia as a competitive financial centre in the region.

The revision in the real property gains tax will avert unhealthy speculative activities. ABM also welcomes PR1MA’s allocation of RM1 billion for 80,000 housing units and our participating member banks will continue to support this initiative by providing loans to eligible applicants.

Small and Medium Enterprises (SMEs) and budding entrepreneurs, which are integral contributors towards the growth of the economy, will also benefit from the Budget. Commercial banks will continue to engage with businesses, in particular the SMEs and entrepreneurs to guide them on the wide range of financial options and funding available besides conventional banking facilities in the form of SME funds and micro financing.

The commercial banking sector with its strong capitalization and high asset quality will continue to support the economic activities for Malaysia to become a high-income nation. ABM will continue to collaborate with its members to boost the banking industry towards becoming more resilient, competitive and effective in meeting the needs of the changing economy.