PETALING JAYA, Nov 3 (Sin Chew Daily) – The government is expected to continue distributing "candies" in the upcoming 2021 Budget in hope of lifting consumerism and reviving the market while offering more assistances to small- and medium-sized enterprises (SMEs).

Dr Teo Wing Leong, Head of School of Economics, University of Nottingham Malaysia, told Sin Chew Daily the government may provide more incentives to help local businesses migrate to e-commerce to help boost the local market.

He said the government may also need to provide more assistance to self-employed individuals who are the worst hit in the current COVID-19 pandemic.

He also said the government would continue to provide loans and salary allowances to companies suffering from cash flow problems.

While loan moratorium is still necessary, Dr Teo feels that this facility should be extended only to targeted groups, as many companies and individuals do not actually need such facility.

He pointed out the government is still able to distribute "candies" at this juncture, given the country's financial situation now, however the government will have to be more cautious in order to cap the budgetary deficit which could affect the country's international ratings.

Meanwhile, local financial expert and corporate consultant Dr Ch'ng Huck Khoon said the 2021 Budget would likely include the concept of 12th Malaysia Plan which should have been implemented from this July but has been postponed to early next year due to the pandemic.

"The Budget will focus on revitalizing the national economy, environment sustainability and social restructuring."

He said Malaysians could look forward to the government distributing cash through e-wallets in a bid to boost consumerism, adding that budgetary deficit is expected to rise further.

He told Sin Chew Daily the government may provide allowances for SMEs to keep them in business, because many people will be out of work if SMEs close down.