Budget to Facilitate More Broad-Based Wealth Creation, Says SC
The Securities Commission Malaysia (SC) has lauded the measures in the 2025 budget, saying they will ensure that the capital market can facilitate greater and more broad-based wealth creation.
Broad-Based Wealth Creation
Specifically, the SC chairman, Faiz Azmi, praised the government’s commitment to broadening opportunities for businesses of all sizes, particularly access to financing for startups, micro- and small-medium enterprises, and mid-tier companies, as well as deepening investment choices and opportunities for investors.
"We are encouraged by specific measures to broaden diversity, a continuing focus on retirement needs, in particular the extension of tax relief for private retirement schemes, and steps towards a more sustainable economy with the introduction of a carbon tax," he said in a statement.
Islamic Finance and Sustainability
Malaysian Rating Corporation group CEO Arshad Ismail also welcomed the initiatives outlined in the budget, particularly those related to Islamic finance and sustainability. He noted that the allocation of RM100 million in matching funds to spur innovation in Islamic financial products, focusing on climate finance and food security, is a testament to the intersection of environmental, social, and governance principles with Islamic finance.
"The forward-looking policies introduced to advance Islamic finance will play a crucial role in driving sustainable economic expansion and attracting global investments," he said.
Adoption of Low-Carbon Technologies
Bursa Malaysia chairman Abdul Wahid Omar noted that the 2025 budget places a renewed emphasis on environmental and social action. He highlighted the introduction of a carbon tax on the steel and energy industries by 2026, aimed at encouraging the adoption of low-carbon technologies, as a significant step towards reducing the country’s carbon footprint.
Economic Development and Resilience
Permodalan Nasional Bhd (PNB), a government-linked investment company, reiterated its commitment to playing a proactive role in nation-building initiatives and working closely with the government to ensure a prosperous future for the country driven by collaboration, innovation, and a shared vision for progress.
"We fully support the initiatives outlined in the budget, especially on the continued targeted rationalisation of subsidies to further strengthen the government’s fiscal position," it said in a statement.
Conclusion
The 2025 budget is expected to further solidify Malaysia’s position among global leaders in the capital market, with a range of measures aimed at facilitating greater and more broad-based wealth creation, promoting sustainability, and driving economic development and resilience.
Frequently Asked Questions
- What are the key measures in the 2025 budget to promote wealth creation?
- Broad-based opportunities for businesses of all sizes
- Access to financing for startups, micro- and small-medium enterprises, and mid-tier companies
- Deepening investment choices and opportunities for investors
- What is the focus on Islamic finance and sustainability?
- Introduction of a carbon tax on the steel and energy industries by 2026
- RM100 million in matching funds to spur innovation in Islamic financial products
- How will the budget support economic development and resilience?
- Targeted rationalisation of subsidies to strengthen the government’s fiscal position
- Promotion of new investments in technology, automation, and electrical and electronics sectors
- Initiatives to improve living wages and labour productivity