Budget 2020: Move to restore confidence in govt depts welcomed

Budget 2020: Move to restore confidence in govt depts welcomed

KUALA LUMPUR: The government’s focus on strengthening institutions, governance and integrity is critical in restoring trust and confidence in the marketplace, Institute of Corporate Directors Malaysia (ICDM)’s president and chief executive officer, Michele Kythe Lin said.

“This effort is key in addressing some of the key legacy issues that have stifled the country’s growth and development to set it on a much stronger footing moving forward,” she said.

Among others, the government in Budget 2020 will further beef up the Malaysian Anti-Corruption Commission (MACC) by adding 100 more personnel next year, besides allocating RM10 million to undertake Risk Assessment Tests at all ministries, departments and agencies.

The government would also implement much-needed reforms, which includes establishing laws and institutions such as the Independent Police Complaints and Misconduct Commission (IPCMC) to raise public confidence in the Royal Malaysian Police Force (PDRM).

Finance Minister Lim Guan Eng, in tabling Budget 2020 yesterday, also announced the establishment of the Malaysian Ombudsman to replace the Bureau of Public Complaints to enhance governance and delivery systems of the government.

“Coupled with the incentives to further catalyse the digital economy – specifically the RM1 billion in incentives to attract investments from Fortune 500 and global unicorn companies in high technologies, manufacturing and new economic sectors, bolstered by talent readiness initiatives to prepare the Malaysian workforce for the new economy, the government’s holistic approach to lifting the overall economic landscape is commendable,” said Lin.

Investing in the necessary platforms and infrastructure to strengthen socioeconomic well-being sets a clear precedent on how they intend to execute on the new Shared Prosperity Vision 2030 (SPV2030).

“Businesses should take the cue from the government in running their business, which is to broaden their focus beyond profitability to the overall impact businesses have on its environment and communities, taking into consideration the objectives of SPV2030.”

On this front, boards and directors have a key role in setting the priorities and direction of businesses to ensure they uphold the highest standards of corporate governance and accountability whilst taking into consideration the broader impact on its stakeholders – such as its customers, staff, surrounding communities, parties within their supply chain in addition to their investors, financiers and regulators, she said.

“In short, it is the responsibility of boards and directors to ensure businesses are focused on creating a positive impact, which will create a ripple effect within these different community segments,” added Lin.