The budget for next year is not a game changer, says Pikom



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Pikom believes that increasing the tax relief on lifestyle purchases to RM3,000 will boost sales of electronic devices and IT.

PETALING JAYA: The Malaysian National Technology Association (Pikom) said today that the 2021 budget appeared to be a continuation of the various Covid-19 recovery programs currently in place.

“The budget seems too focused on the Covid-19 recovery process, which had already started in June.

“Therefore, what is being presented is not a game changer for Malaysia as it lacks a long-term economic transformation momentum,” Pikom President Danny Lee said in a statement.

It helped that the focus on e-wallets and e-commerce was commendable, but the measure was not broad enough to cover all segments of society.

Under the budget, presented by Finance Minister Tengku Zafrul Aziz, last Friday, the government will grant a one-time RM50 credit to the e-wallet accounts of people between the ages of 18 and 20, an initiative expected to benefit more 1.5 million youth nationwide. .

Danny Lee.

There was also an allocation of RM150 million for training programs and sales assistance, as well as digital equipment for 100,000 entrepreneurs to foster e-commerce adoption under the SME & Micro-Enterprise E-Commerce Campaign.

This is in addition to RM150 million to implement the Shop Malaysia Online initiative together with the e-commerce platform to boost online spending, which according to Tengku Zafrul will benefit 500,000 local sellers.

The Pikom boss pointed out some positive aspects of the budget, such as the allocation of RM27 million for cybersecurity programs.

“Continued financing for digital transformation is also a boon that would provide continued momentum to companies embarking on their digital journey,” said Lee.

He said that the RM 100 million budget for MDEC to improve the workforce in the technology industry will complement the HRDF Penjana initiative currently underway until 2022, while the RM 100 million allocated for recycling and improvement programs in association with Industry associations will continue to positively impact employability. .

“We also anticipate an increase in IT and electronic device purchases with the lifestyle tax allowance increased to RM3,000.”

Pikom also welcomed the decision of the GLCs to contribute RM150 million towards the purchase of laptops for 150,000 students in 500 schools under the CERDIK fund.

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