Following the tabling of Budget 2023, the National Tech Association of Malaysia (PIKOM) has expressed mixed opinions on the proposed budget and initiatives. While it welcomes relief measures for lower and middle-income groups to cope with rising costs of living amidst a volatile economic landscape, PIKOM feels a more radical plan is needed to accelerate Malaysia’s push towards a high-income economy.
From PIKOM’s perspective, it finds allocations for digitalisation, human capital development, infrastructure spending and start-up capital under the Budget, while expected, were underwhelming.
PIKOM Chairman Ong Chin Seong said “We applaud the government for taking steps to address the economic uncertainty that is enveloping the globe, especially for communities most impacted by the rising prices. However, this Budget seems to be a business-as-usual approach in digitalisation and is no game-changer that can spur digital economy growth for the country. This is what is needed as we look to the future.”
Ong added that the FDI impetus continues with the slew of incentives to attract investments and create jobs for Malaysians. While the move is commendable, he said incentives for domestic investments would be required to ensure local players as the key drivers of the Malaysian digital economy, stay competitive and grow into global players. He hopes the government would place as much support to the local players as given to FDIs.
PIKOM said among the measures welcomed by the industry include:
- RM1.5 billion investment for local innovative startups via Khazanah and KWSP and another RM10 billion in loan facilities for SMEs by BNM
- MAMPU to improve MyGovCloud function by combining Public Cloud by Cloud Service Provider in public sectors
- RM1 billion for training by HRDCorp
- RM50 million matching grant to support automation in agriculture through usage of robotics and AI
- RM100 mil SME automation and digitalisation matching grant
- RM725 mil for the Jendela digital infrastructure project
- RM300 for training of each gig workers
PIKOM is looking forward to a speedy rollout and less bureaucratic process in implementing the various measures that should benefit as many as possible. It also raised concerns of inflation taking its toll on the economy, and the increase in electricity tariff would have a knock-on effect which would negate the price cushioning measures introduced by the government.
Ong said they are looking forward to more clarity and details from the government on the definition of large companies that will be impacted by the increased electricity tariff and the quantum of reduction in subsidy. During the tabling of the Budget last Friday, Anwar Ibrahim said electricity tariffs will be maintained for domestic and SME users, but they will be increased for large-scale businesses.
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