KUALA LUMPUR: Khazanah Nasional Bhd expects the continuation of a pro-growth and pro-society focus in the 2017 Budget, with its companies remaining the nation’s growth engines.
Khazanah managing director Tan Sri Azman Mokhtar said at the same time, the government must be fiscally responsible in an uncertain global environment.
“Our companies in various sectors will continue contributing as engines of growth. We need to keep the growth engine running,” he said on the sidelines of Khazanah Megatrends Forum 2016, here, yesterday.
Khazanah is a major shareholder of public-listed companies such as CIMB Group Holdings Bhd, Axiata Group Bhd, Telekom Malaysia Bhd and UEM Sunrise Bhd.
CIMB Group chairman Datuk Seri Nazir Razak said it is important that the government shows its achievement of a low deficit of 3.1 per cent this year.
It should also demonstrate that the 2017 Budget will further reduce the deficit.
Nazir said the government’s balance sheet will also be scrutinised.
“Again, the important thing is that the debt ceiling is maintained prudently at 65 per cent of gross domestic product.”
He stressed on the importance of rigorous spending management.
“The government has to demonstrate fiscal prudence. It can actually spend more if it can save more. I also encourage the government to look into rigorous spending management. They must know where to cut and where to spend, such as infrastructure and education, etc.”
There should be cuts on less important areas in the operating expenditure.
“That is how the government can meet all of its objectives,” said Nazir.
He also said there could be another interest rate cut by Bank Negara Malaysia this year.
“But it should not be done in isolation and at our own national dynamics but rather at an international dynamics,” he added.