Selangor Journal
Menteri Besar Dato’ Seri Amirudin Shari tabling the 2022 Selangor Budget (#Selangor2022) at the Selangor State Legislative Assembly sitting, Shah Alam, on November 26, 2021. — Picture by FIKRI YUSOF/SELANGORKINI

#Selangor2022 ensures state remains an economic powerhouse — Economist

By Alang Bendahara

SHAH ALAM, Nov 29 — Selangor’s success in meeting its 2021 revenue target despite the ongoing pandemic and multiple economic shutdowns is seen as a remarkable achievement.

Responding to the recently tabled 2022 Selangor Budget (#Selangor2022), AmBank Research group chief economist and head Dr Anthony Dass said this came as no surprise as Selangor had successfully continued to contribute the most significant slice of the cake to Malaysia’s gross domestic product (GDP) compared to other states.

“We can expect Selangor to remain as the economic powerhouse and the highest contributor to the national GDP going forward. The state will continue to play a vital role in helping the nation recover and grow sustainably,” he told the Selangor Journal when recently contacted.

Although #Selangor2022 shows an estimated deficit of RM222.72 million, which is RM99.72 million more than the RM123 million deficit in last year’s budget, Dass said continuing with another year of a deficit budget is welcoming.

“Underpinned by the current ongoing uncertainties and still concern over the Covid-19 virus spread and new variants emerging, it remains too premature to focus on budget consolidation.

“Most importantly, out of the RM2.34 billion in expense, about 48 per cent or RM1.12 billion will be spent on development expenditure. In comparison, the balance of 52 per cent or RM1.22 billion will go towards administrative expenses.

“Such a huge focus on development expenditure in this budget is vital to get the state economy to recover and withstand the ongoing and potential challenges,” he said, adding that an emphasis on high impact projects would not only jive with the national policy but also provide a big multiplier effect to the state economy.

Dass had commended the state’s effort in coming up with a budget that focused on the development and welfare of the people following the Covid-19 pandemic.

“This budget has tried to balance its overall expenditure between operating and development as well as the elements of post-pandemic.

“Initiative on public health care, jobs, the well-being of the people, creation of economic activities and positioning the state to be more competitive and a centre of attraction for investments, and streamline businesses, is welcoming,” he added.

Meanwhile, Universiti Tun Abdul Razak (UniRazak) economist Professor Emeritus Dr Barjoyai Bardai had said the Selangor budget projected the needed focus in the economic recovery programme covering the short, medium and long term strategies.

He said the state should continue to focus on the caring society theme for the people’s wellbeing and make it a short term strategy for 2022 as it is seen to be the urgency right now.

On the continuation of the Smart Selangor agenda and the RM316 million allocation for the state’s digitalisation plans, Barjoyai said the smart state vision is a substantial investment that may give the needed impact on the state development strategy.

The state administration had also allocated RM15 million to Invest Selangor Berhad to organise the Selangor International Business Summit 2022 (SIBS 2022) and RM5 million for the next edition of the Selangor Aviation Show (SAS) in 2022.

“Additional effort and investment should be made to promote the rapid migration of business and household into Industrial Revolution 4.0, and for micro-businesses to adopt technologies to enhance the productivity of their workers, This will ensure that the medium and long term well-being of the working population in the state be well-taken care of,” he said.

“It is suggested that the state create a special endowment fund to invest with the objective of using the investment return to spend on investment promotion, relation and development programmes.

“The state could make an annual contribution of say RM100 million each year and invited all industry players in the state to also contribute. The fund can also be targeted to assist the micro businesses in Selangor to adopt the digital economy and to invest in technology to improve their productivity,” he said.

On Friday, Menteri Besar Dato’ Seri Amirudin Shari announced the RM2.343 billion allocation under the 2022 Selangor Budget (#Selangor2022), dispersed to the people through five core strategies.

The strategies’ aims include spurring a high-impact economy, building a better delivery system, to grow a caring society and ensure the people’s wellbeing, to strengthen Selangor’s public healthcare system, to create a green environment and practise sustainable development, and to optimise smart technology and digitalisation.

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