The Malaysian Institute of Accountants (MIA) welcomes the well-thought out and diversified Budget 2019 that will chart the nation’s future development while restoring the nation’s credibility and protecting social wellbeing.

In particular, MIA extols the allocation of RM17.5 million over the next 5 years to the Malaysian Professional Accountancy Centre (MyPAC) as well as RM210 million as part of the Bumiputera Empowerment Agenda which will increase the number of Bumiputera accountants.

MIA chief executive officer, Dr Nurmazilah Datuk Mahzan believes this will further enhance the Institute’s initiatives to strengthen the development of the accountancy profession which supports economic growth.

“The RM4.5 billion SME Loan Fund and the allocation of RM2 billion worth of credit and takaful facilities for SME exports aimed at developing small and medium enterprises (SMEs), which are primarily served by MIA members who are small and medium practitioners (SMPs) and professional accountants in business (PAIB).

“Currently, SMEs constitute 98.5% of businesses in Malaysia. As SMEs grow, accountants can play an important role as trusted business partners by providing financial management and relevant business support services.”

MIA is also behind the government’s support for new technology developments and sufficient funding for entrepreneurs via conventional and alternative financing sources, as well as the Government’s plan to set up a new regulatory framework to approve and monitor Digital Coin and Token Exchanges.  

Dr Nurmazilah says these initiatives are aligned with the two key principles of funding and good governance stated in the MIA’s Digital Technology Blueprint that seeks to develop technology adoption in the accountancy profession.

Additionally, MIA also extols the Government’s intention to convert the current cash basis of accounting to an accrual basis by 2021.

As the national accountancy body, the MIA’s stance is that accrual accounting will drive better public financial management and good governance.

MIA has contributed to the move to accrual accounting since 2011 by nominating the former Accountant General to the International Public Sector Accounting Standards Board (IPSASB) in 2013, providing technical expertise to the Government Accounting Standards Advisory Committee - a committee that develops the public sector accounting standards in Malaysia, as well as providing comments to the IPSASB consultation documents.

“The Government’s call upon the private sector to emulate the Government by ensuring the objective of 30 per cent women participation in the Board of Directors is achieved by 2020.

“As more than 50 per cent of the MIA members are women, this will provide opportunities for women accountants to be in the Board of Directors, where their skills are particularly suited to serving on the Board Audit Committee.”

MIA also applauds the formation of the Tax Reform Committee to suggest improvement and create a progressive and effective taxation system.

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