KUALA LUMPUR, Oct 22 (Bernama) -- 
 
We wish to extend our appreciation to the Government for its commitment in ensuring the economy continues to expand at a healthy pace, and at the same time reduce the fiscal deficit and address the public debt with the overall objective of bringing prosperity to the nation and promoting the well-being of the Rakyat.
 
We appreciate the Government’s efforts to further invigorate the Capital Market by introducing the Small and Mid-Cap PLC Research Scheme with the aim to conduct research on 300 companies. Capital Market Research Institute will be established with initial funding of RM75 million, provided through Capital Market Development Fund. Also, the Government-linked investment companies will allocate a special fund up to RM3 billion to licensed fund managers to invest in potential small and midcap companies. Such measure will improve capital market transactions and banks non-interest income.
 
The Budget 2017 has also proposed to strengthen PR1MA House Financing Scheme by announcing 1Malaysia People's Housing (PR1MA) House End-Financing Scheme. This scheme will be offered by four financial institutions comprising of CIMB, Maybank, RHB and AmBank in collaboration with EPF and Government with the aim to assist low to middle income groups earning between RM2,500 to RM10,000 per month to acquire their first homes. It is through the special stepped-up feature for the financing allowing servicing of only interest by borrowers for the first 5 or 10 years of the loan tenure to be followed by a principal and interest repayment for the balance of the tenure. This measure is to improve the affordability of low to middle income for first time home buyers.

In an effort to encourage youths to embark on long-term investment through the Private Retirement Scheme, the Government unveiled a one-off increase of the existing RM500 incentive to RM1,000 to the Private Retirement Scheme contributors with a minimum accumulated investment of RM1,000 during the period of two years. Such measure will provide opportunities and inculcate the importance of saving by the youths from an early age to ensure sufficient savings after retirement.
 
To further boost the contribution of the Small and Medium Enterprises (SMEs), the Government unveiled a new scheme specifically for the year of assessment 2017 and 2018 which offers a reduction by stages based on a percentage increase in income compared to the previous year of assessment. The reduction in income tax are one percentage point for increase in chargeable income between 5% to below 10%; two percentage point for increase in chargeable income between 10% to below 15%; three percentage point for increase in chargeable income between 15% to below 20%; and four percentage point for increase in chargeable income of 20%. Other measures includes export promotion programmes through MATRADE, MIDA and SME Corp, loan financing and insurance credit facilities, 2% rebate on interest rates charges, tax reduction on chargeable income up to the first RM500,000 from 19% to 18% effective next year, revitalizing eUsahawan and eRezeki programmes and introducing new and various entrepreneurship programmes.
 
The Budget 2017 focus on empowering human capital which is a critical factor for the future of the nation. Towards this, emphasis is to improve access to preschool education and the development of children where Food Assistance and Per Capital Grant Continuing to primary and secondary school, destitute and new schools. The Government will continue to undertake to increase the level of English language proficiency. Also, the Government will strengthen the higher education as well as technical and vocational education. These efforts will help improve the overall efficiency as well as flexibility of the labour market.
 
We are also pleased to note that the Government is also placing priority on addressing the rising cost of living for the Rakyat, especially the low-and middle-income groups. To cushion the burden of the Rakyat, the Government continues to provide various assistances and incentives to the targeted groups.
 
We applaud the Government’s priority to continue focusing on providing quality healthcare services and civil servants. Furthermore, the Government is also focusing on strengthening the natural disaster management. For the small holders, we welcome the Government’s initiative to provide various income and productivity enhancement measures that will help alleviate the decline in income from the weak commodity prices.
 
About AmBank Group
AmBank Group is one of Malaysia’s premier financial solutions groups with nearly 40 years of legacy in understanding Malaysians and provides a wide range of both conventional and Islamic financial solutions and services, including retail banking, wholesale banking, as well as the underwriting of general insurance, life assurance and family takaful.
 
The Group’s purpose to help individuals and businesses in Malaysia grow and win together shows our renewed vision to support and empower our customers and our people to achieve their aspirations. This purpose underpins the Group’s holistic “Top Four” Aspiration, focused on sustenance, improvement and growth in key segments and products as well as our role as an Employer. AmBank Group – a modern Malaysian diversified financial solutions partner that understands and meets the diverse needs of modern Malaysians.
 
The Group receives strong support from the Australia and New Zealand Banking Group (“ANZ”) (one of Australia’s leading banks) particularly in Board and senior management representations, risk and financial governance, products offering and new business developments. In the general insurance business, the Group has partnered with Insurance Australia Group Ltd (“IAG”). Whilst in the life assurance and family takaful businesses, the Group has a partnership with MetLife International Holdings Inc. (“MetLife”). The Group benefits in terms of expertise transfer from IAG and MetLife.
 
AMMB Holdings Berhad is the holding company of AmBank Group and is a public listed company on the Main Market of Bursa Malaysia.
 
For more information, please visit www.ambankgroup.com  

Source : AmBank Group

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Syed Anuar Syed Ali
Head, Group Corporate Communications and Marketing
Tel : 03-2036 1703 
Email : sasa@ambankgroup.com 

--BERNAMA