Don't compromise on development expenditure, says CIMB's Tengku Zafrul

by **Cals** Sun 18 Oct 2015, 17:09

Don't compromise on development expenditure, says CIMB's Tengku Zafrul

By Chester Tay / theedgemarkets.com | October 16, 2015 : 9:29 PM MYT

KUALA LUMPUR (Oct 16): [size=16]CIMB Group Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.65, Fundamental: 1.05) hopes the federal government in it's Oct 23's Budget 2016 announcement, will continue to review and restructure its operating expenditure (opex) and keep the tax rates unchanged for the next few years, until Malaysia's economy is on a stronger footing.

Its group chief executive officer Tengku Datuk Zafrul Aziz said this will ensure that the allocation for development expenditure for the next five years under the 11th Malaysia Plan (11MP), will not be compromised.

Zafrul added that CIMB hopes the government will be able to find a balance between its constraints on opex and government’s spending, to ensure domestic consumption is not adversely affected.

He said the group also hopes the upcoming budget will ensure the plan to boost overall productivity, by among others, building rail and road infrastructure and broadband networks, investing in skills development, fostering small and medium enterprises and encouraging sustainable development remains on track.

"The rakyat's well-being programmes such as the affordable housing programmes should be continued alongside other programmes, to encourage the private sector to generate more broad-based jobs creation," said Zafrul in CIMB's budget wishlist for 2016, released today.

"Coupled with this, the rising cost of living, particularly in the urban areas, ought to be addressed quickly and effectively, to enable the rakyat to have more disposable income, and also to enable them to plan their finances more effectively," he added.

Zafrul also suggested apart from the private retirement scheme, the government could provide more incentives for the younger generation to plan their finances as early as possible in their working lives.
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