Economist: Budget 2022 finds balance in managing the country’s economy
01 Nov 2021
The approach implemented by the government in the presentation of Budget 2022 last Friday is seen as an effort to find a middle ground and balance to manage the country’s economy.
Bank Islam chief economist Mohd Afzanizam Abdul Rashid said the presentation of the Budget, with an allocation of RM332.1 billion, could provide convenience to all walks of life.
“As a result, the country’s economy is expected to recover better with a Gross Domestic Product rate of 5.5% to 6.5% next year.
“However, we are still facing a period of uncertainty over the Covid-19 situation,” he said in the Awani Agenda programme broadcast on Astro Awani on Monday night.
He said the country still needed allocations for the purchase of vaccines and to finance health costs as well as help the survival of the vulnerable, B40 and also small and medium enterprises (SMEs).
Apart from that, he opined that financial assistance for the long term should not be continued, instead the government should continue to create employment opportunities especially for the youth.
“Modernising or boosting the agricultural sector with ‘smart farming’ can create many new job opportunities,” he said.
Mohd Afzanizam also said that the allocation of RM14.2 billion could revive the SME sector which is the engine of national growth.
He also suggested SMEs should discuss with their banks to solve the problems faced and improve their cash flow.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz presented Budget 2022 themed Keluarga Malaysia, Makmur Sejahtera (A Prosperous Malaysian Family) in Parliament on Friday which involved an allocation of RM332.1 billion, which is the highest to date by focusing on efforts to restore every socio-economic segment of the country.
The amount includes RM233.5 billion for operating expenditure, RM75.6 billion for development expenditure and RM23 billion under the Covid-19 Fund.