KUALA LUMPUR: Hong Leong Bank Bhd (HLB) is confident that the 2025 Budget will contribute to the long-term growth and sustainability of the Malaysian economy.  

HLB group managing director and chief executive officer Kevin Lam said the bank is encouraged by the government's commitment to balancing economic growth with fiscal responsibility.

This is evident in the continued focus on high-impact projects and ongoing subsidy reforms.

"The emphasis on 'Raising the Ceiling' through initiatives that promote competitiveness and value-added activities aligns with HLB's focus on supporting businesses and driving innovation in key sectors," he said in a statement.  

HLB commends the government for demonstrating policy continuity and follow-through on initiatives from various strategic policies and master plans introduced earlier.  

Lam noted that while this is another expansionary budget with total allocation topping RM421 billion, the highest on record, the government remained mindful of its fiscal responsibility.

"As a result, the fiscal deficit is expected to further narrow to RM80 billion or 3.8 per cent of gross domestic product (GDP) next year, from RM84 billion or 4.3 per cent of GDP in 2024, bringing us closer to the 3.5 per cent target outlined in the Medium-Term Fiscal Framework (MTFF) 2025-2027.

"This is certainly positive for Malaysia's sovereign rating, further supported by continued moderate growth prospects of 4.5 to 5.5 per cent for 2025, and a manageable inflation outlook at 2.0 to 3.5 per cent," he said.

Meanwhile, Lam said the implementation of new and ongoing infrastructure projects and realisation of various approved investments will continue to underpin expansion in private investment and create more job opportunities.

He added that the continuation of cash assistance to targeted segments is a welcome initiative.

"This, coupled with earlier-announced civil servant pay hikes, is expected to help further alleviate the rising cost of living pressures, aligning with the government's priority of raising the floor by improving the quality of life.

"This should bode well for consumption and the services sector going forward," he said.

Lam said the bank looks forward to playing an active role in supporting the government's vision for a more prosperous and inclusive future.

https://www.nst.com.my/business/corporate/2024/10/1123250/2025-budget-contribute-malaysias-long-term-growth-hong-leong-bank