Malaysia Finance Ministry to publish a PBS for the first time
The Malaysian Ministry of Finance (MOF) has agreed to publish a Pre-Budget Statement (PBS) for Budget 2022. This PBS is the first in the nation’s history. This move is part of the Malaysian government’s effort to improve the annual budget preparation process.
This move is in line with international best practices. The main reason to publish a PBS is to enhance the transparency of the budget process in formulating the annual budget. This action will also increase public confidence in the country’s fiscal management. Investors, in particular, would welcome a PBS.
Through the publication of PBS, Malaysian citizens can track specific metrics. Metrics would include the economic outlook based on the global economic scenario. The performance review of the Gross Domestic Product (GDP). As well as the macroeconomic outlook for 2022 and fiscal targets for 2021/2022;
Malaysian citizens would also be privy to the tax revenue performance status. They would also have information on tax measures announced under Budget 2021 and stimulus packages in 2021. The PBS document also covers the management of revenue leakages. It also covers Malaysia’s international commitments and strategies to increase tax revenue and strengthen the tax system.
Another aspect covered under the PBS would be public expenditure status for 2021 and factors in optimising and controlling expenditure.
PBS and Budget 2022 will ensure reforms says, Minister
The PBS also provides a preliminary overview of the direction, approach and expected benefits of Budget 2022.
Recently re-appointed Finance Minister Tengku Zafrul had the following to say regarding the PBS and Budget 2022.
“Budget 2022 will drive the national recovery process to ensure that the nation successfully exits from the COVID-19 crisis, as well as continue the post-crisis recovery plan to help lives, livelihoods and badly-affected economic sectors. Efforts to help vulnerable groups and generate new job opportunities will continue to be a priority,” said Tengku Zafrul.
“Budget 2022 will emphasise rebuilding the resilience and capacity of the nation’s public health system. It will aim to enhance digital and technological infrastructure. In particular, within the education sector. The budget will facilitate the nation’s transition to high productivity industrial sectors based on automated technology and increased skills,” he added.
Tengku Zafrul finally concluded that Budget 2022 would ensure that reform measures are implemented. This would assist Malaysia in achieving the Sustainable Development Goals, the Twelfth Malaysia Plan and the Shared Prosperity Vision 2030.
MOF is inviting stakeholders to provide feedback on the PBS. MOF says the aim is to formulate a well-aligned budget to the needs of the Rakyat and the country’s policies and national objectives.
