PETALING JAYA: The continuation of wage subsidy for tourism, rental rebate and tax deductions on the rental of premises for workers’ accommodation will help ease some of the burden of operating cost, says Associated Chinese Chambers of Commerce and Industry of Malaysia president Datuk Dr Low Kian Chuan.

       Given the uneven pace of recovery and the pandemic’s deep economic scarring effects that were still unfolding, he said it was of utmost importance that the ministries and government agencies enhance their efficiency, strengthen the capacity to implement projects and programmes as well as disburse the money in a timely manner.

       “Expansionary spending will not necessarily lead to a positive impact on economic output and income growth if the multiplier effect is restrained by inefficiencies, delay in implementation and cost overrun,” said Low.

       In reference to Budget 2022 which was tabled on Friday, World Trade Centre Kuala Lumpur (WTCKL) group executive director Datuk Seri Dr Irmohizam Ibrahim (pic) said the RM40bil Semarak Niaga programme which include direct loans, financing guarantees and equity injections to benefit every group of entrepreneurs regardless of micro-enterprises or public-listed companies, is seen as able to aid industry recovery.

       However, he said the aid would be able to deliver better impact towards economic recovery if the allocation was bigger.

       “I also hope that the RM60mil alloted to boost domestic tourism can be increased, as well as the RM600mil allocated to support the tourism industry (through Penjana Tourism Financing).

       “The events industry is closely related to this sector and if tax exemptions can be given to individuals, groups or organisations who wish to use this service, then there will be more attractions at both the domestic and international levels,” he said.

       MTUC president Datuk Abdul Halim Mansor felt that Budget 2022 could have done more for private sector workers, who were seemingly left out.

       He said the MTUC was against the government’s decision to extend the reduced EPF contribution rate from 11% to 9% until June 2022.

       “Covid-19 has hit workers’ old age savings. The Finance Ministry should not lower workers’ contributions to 9% as this will reduce their savings when they retire,” he said.

       Instead, he said the government should help cover 2% of the contribution for those who were financially affected and had to resort to contributing a smaller amount to their EPF or had to withdraw their money during the pandemic.