CIMB : Budget 2024 Commentary

13 October 2023

To be attributed to Dato' Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group

We are pleased to see the Malaysian Government's continued focus on driving sustainable economic growth through the Malaysian 2024 Federal Budget, the Second MADANI Budget. The Budget forms a strong foundation towards achieving Malaysia's long-term goals of safeguarding the Rakyat's wellbeing and strengthening the country's business ecosystem within an increasingly volatile global macro-economic environment.

In accelerating economic growth, we are encouraged to see measures to support micro, small, and medium enterprises ("MSMEs") as well as supporting the start-up ecosystem. These include, among others, RM2.2 billion in total funding support for MSMEs to automate business processes, digitalise their operations, and increase their international footprint. In addition, we laud the focus on environmental sustainability and food security with specific allocation for MSMEs that operate within these two crucial areas. This will help support their growth and resilience, and subsequently futureproof the socioeconomic wellbeing of all Malaysians.

As a leading Islamic finance player, CIMB also supports the Government's focus on driving more active market participation as well as equitable distribution of wealth among the Rakyat through value-based intermediation ("VBI").

With the ongoing efforts by the financial industry to combat scams, we welcome the Government's continued commitment to combat financial scams by doubling the allocation to the National Scam Response Centre ("NSRC") to RM20 million and the establishment of the National Fraud Portal ("NFP") that will expedite the process of freezing and repatriation of funds. CIMB remains committed to undertaking all necessary measures to further support and strengthen banking security and work together with the relevant authorities and our customers to combat scams collectively.

Overall, the announced budget suitably balanced fiscal responsibility with supporting growth and meeting Rakyat's needs. Accordingly, CIMB is committed to collaborate with stakeholders across the private and public sectors and civil society in supporting the ambitions set out in the Malaysia MADANI Budget 2024 to create an inclusive and resilient economy that will help all Malaysians to thrive in an ever-challenging landscape.

Dato' Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group