Budget 2021: Lack of incentives to attract foreign investors
PETALING JAYA (Nov 6): A sharper focus on driving in foreign investments is desirable for Budget 2021, said Professor of economics at Sunway University Business School Dr Yeah Kim Leng (pictured).
“Overall, the expansionary budget aimed at securing the recovery in 2021, it reduces the risk of companies and households having to withdraw fiscal support too early, since the economic recovery of both the domestic economy and global economy are battling numerous downside risks.
“This is especially so given the current resurgence of the coronavirus and the uncertainty over the availability of an effective and safe vaccine,” he told EdgeProp.my.
The Ministry of Finance (MOF) has projected that Malaysia’s GDP growth would range between 6.5% and 7.5% in 2021.
Yeah is positive that if the economy is able to recover, it would have a positive impact on the property market, as household income would increase, and there would be stronger employment growth and improvement in consumer confidence.
“The stamp duty exemption is helpful as it would translate to some cost savings to buyers. On a broader perspective, the spillover effects of the transport infrastructure projects will continue to spur interest in transit-oriented developments, while the better economic outlook next year will result in a revival of house buyers’ interest, especially for those who have put their decisions on hold due to the Covid-19 crisis,” he added.
Expert Cited
