Federal budget will be presented annually in Malaysia by Government of Malaysia before the

start of fiscal year. The 2018 Budget has been anouced recently which allocated a sum of
RM280.25 billion. There are RM234.25 billion for Operating Expenditure (OE) ,RM46
billion for Development Expenditure (DE) and contingencies which amounts to RM2 billion.
The Federal Government's revenue collection is expected to be RM239.86 billion. The
economic performance is expected as fiscal deficit at 2.8% of GDP for 2018, compared with
3.0% for 2017. This budget is proposed for the sake of the economic growth and people
prosperity. It did have impact on the banking sector which plays an important role in
supporting the financial markets. Most of the impacts are positives and the only limitation is
the risk that banks have to borne with the unpaid funding by the borrowers.

The decision to stimulate Sustainable and Responsible Investment (SRI) through tax
exemptions on Green Sukuk is very welcoming by banking sector especially the Islamic
finance provider. This decision will facilitate the growth of Green Sukuk and make its
position as a key driver in the Islamic financial market. Sukuk is an Islamic bond that can
generate returns to the investors without against Islamic Shariah laws. It sells a certificate and
their proceeds used to purchase an asset tht can be mutually owned by both sellers and
buyers. With Sukuk investment, it helps to secure the funding source of bank to make its
daily business operating. Through the exmption of tax, it encourages investors to make
investment with a lower cost of investment. The decision of SRI has been encouraged by
CEO of Standard Chartered Bank, Mahendra Gursahani( 1).

Besides, the government has focused on the development fo infrastructure as a potential

stimulus in driving the growth of domestic market and capital capital. This large scale
infrastructure development has been announced by government in the budget of 2018,
especially in the allocation of RM6.5 billion for infrastructure development in the rural areas.
With this huge infrastructure development plan, there is a need for a loan as a funding. With
the need of loan funding, it means the bank will have a big necessity to supply loan to the
developer. With huge need of loan funding, the banks may have to bear with the risk of
unreturn loan in the future. However, it also helps to boost for the economy growth.

Furthermore, the continue growth of the small and medium enterprises (SME) and
entrepreneurs by government is a key to boost economy. The allocation of RM200 million for
soft loans, training and grants through SME Corporation and addition to the RM7 billion for
Working Capital Guarantee Scheme for SMEs and microenterprises. These allocation sare the
initiatives for the continued growth for Malaysian SME segment. The growth of SME
segment means there is agrowth for the SME financial products in the banking sector.

From the idea of Talent and Careers of TN50, the graduate must alert and swift through
training and retraining in meeting the job market requirements. Due to the programme of
Talent and Careers of TN50, the unemployment rate for fresh graduate will be reduced which
in turn will boost the economy. With the availability and preparation of the job opportunity, it
will help the graduate to have their own job which speially for fresh graduate instead of focus
in employing those candidate which possess the job experience. It is crucial to prepare the job
opportunity for fresh graduate to fully utilize their knowledge and wisdom learn in class as
well as appreciate the future talents of Malaysia. With the income earned in job, graduates
can expense their income received and might able to make saving which will increase the
investment money for bank.

In conclusion,

References.

1. https://themalaysianreserve.com/2017/10/27/banking-sector-responses-budget-2018/