“Otherwise it will potentially shave off the FBM KLCI’s 2023 EPS (earnings per share) forecast by 5% to 6%,” he said.

He added that without the tax, the consensus among analysts was that the EPS would grow at a rate of 11.5% in 2023, compared with a contraction of 1.1% this year.

“The new budget is in line with the ‘responsive, responsible and reformist’ theme.

“I am glad that the finance minister remains committed to long term financial sustainability and to build Malaysia’s resilience to face any future crisis,” he said.

“This augurs well for the capital market,” he added.

Securities Commission (SC) chairman Awang Adek Hussin noted that there were several key measures for the capital market announced by finance minister Tengku Zafrul Aziz.

He said the RM30 million allocated to the Malaysia Co-Investment Fund (MyCIF) would support the funding needs and catalyse the growth of the micro, small and medium-sized enterprises (MSMEs).

“Measures aimed at encouraging the growth of alternative financing for companies will provide new solutions to aid in their recovery, which has been lagging behind the wider economy,” he said.

Awang Adek said the public-private partnership to be established by the ministry with the cooperation of the SC to provide a structure programme for women would help to expand the talent pool.

He added that this would then give rise to more qualified and experienced women for leadership positions, including positions as directors on boards of companies.

Awang Adek said the graduate talent programme that would be introduced would help to develop a sustainable pipeline of skilled talent for the capital market. “This will contribute to nation-building and address the talent deficit,” he said.

“The talent deficit is a global phenomenon that will (have a negative) impact on the growth trajectory of economies globally,” he said.

“Therefore, it is apt that Budget 2023 prioritises the boosting of the talent pool across the various economic sectors,” he added.