Finance Minister Datuk Seri Tengku Zafrul has declared that Budget 2021 will be an expansionary budget.  

What would an expansionary budget in the midst of a pandemic entail?  

Here are the insights from bankers from different segments of the banking business on this.

What could an expansionary budget entail?  

Budget 2020, which was announced last Friday (Oct 11) by Finance Minister Lim Guan Eng, has spurred various reactions from brokers.

"Unlike its austerity sounding predecessor, Budget 2020 certainly heard a change of tone," Hong Leong Investment Bank Research analysts said.

What equity strategists think about Budget 2020

The Government's economic growth projection of 4.8% in 2020 — slightly more than the estimated 4.7% in 2019 — may be a bit too ambitious, compared with the market consensus of 4.3% in 2020.

For OCBC Bank chief economist Selena Ling, even with the Government's overt efforts in Budget 2020 to prop up private consumption — which is an important part of the economy at close to 60% of the total Gross Domestic Product (GDP) by expenditure — she still thinks the overall growth target might be hard to reach.

Govt's GDP growth projection of 4.8% in 2020 may be too ambitious, say economists

Malaysia's Budget 2020 represents a prudent balance between the competing needs for Malaysia to preserve fiscal sustainability, while also responding to the realities of a slowing economic environment, said the World Bank's lead economist for Malaysia, Richard Record.

"We welcome the emphasis on measures to boost jobs and private investment, particularly by SMEs through increased digital adoption. Proposals to reform Malaysia’s investment incentives framework, focusing particularly on job creation and SME linkages as well as enhanced monitoring and evaluation, are an important step in the right direction," Record said in a statement

Malaysia's Budget 2020 strikes a prudent balance — World Bank

Budget 2020 is a testament to the fact that the Federal Government is committed to narrowing development between the peninsula and East Malaysia, said Works Minister Baru Bian.

“This is an improvement from the 2019 allocation Budget, I believe it has to be done in the capacity of the government of the day, you have to be reasonable, and at the same time we have to be responsible,” he told reporters after the tabling of Budget 2020 today

Budget 2020 shows Putrajaya pays attention to Sabah and Sarawak, Baru Bian says

KUALA LUMPUR (Oct 11): The expanded Budget 2020 may put the government’s original 3% deficit target for next year further out of reach, against a projected decline in revenues, said Moody’s Investors Service.

“Fiscal strength will continue to constrain Malaysia’s credit profile, although the focus on some inclusive growth measures will be credit positive for the country if sustained over time,” said its vice-president — senior analyst, sovereign risk group, Anushka Shah.

Expanded budget pushes govt’s 3% deficit goal further out of reach — Moody’s

KUALA LUMPUR (Oct 11): Audit firms lauded the measures announced in Budget 2020 as the budget is seen to be focused on driving growth for the long term, amid the current uncertain global environment.

Pricewaterhouse Coopers Malaysia tax leader Jagdev Singh pointed out that this is the first budget that provides some clarity on the nation’s approach in navigating the digital and high-technology economy.

Budget 2020: A growth-driven, long-term budget, say audit firms

The Malaysian Employers Federation (MEF) has raised concerns over the Government’s proposal to increase minimum wage in cities and major towns to RM1,200 a month from RM1,100 at present.

MEF also said that the proposals to increase maternity leave and extend eligibility of overtime to a bigger employee group would “further add to the cost of doing business”.

MEF raises concerns on minimum wage hike, Employees Act review

Further details about the Johor Bahru-Singapore Rapid transit System project will be revealed "within the next few weeks", said Transport Minister Anthony Loke.

“The Finance Minister has indicated that the Government is supportive of the project. We are now in the midst of discussions. I will make an announcement on the RTS very soon, within the next few weeks, because the extension of the suspension of the agreement is until Oct 31 this year,” he told reporters at Parliament lobby today, following the tabling of Budget 2020.

More details on Johor-Singapore RTS to be revealed in weeks — Loke

The proposal by the Government to merge Malaysia's development financial institutions (DFI) will lead to greater synergies, as well as fulfilling the needs of the new economy, according to Bank Pembangunan Malaysia Bhd (BPMB).

In a statement following the Budget 2020 announcement today, BPMB said the proposal is a "positive development" in the Government's efforts to strengthen the DFI eco-system

DFI merger will lead to greater synergies, says Bank Pembangunan

Several property-related measures were announced during the tabling of Budget 2020 by Finance Minister Lim Guan Eng, including adjustments to the real property gains tax (RPGT) and the lowering of the threshold for foreign buyers of high rise properties, as well as the introduction of a Rent-to-Own (RTO) scheme for first-time buyers.

Here’s what property developers think of the Budget measures

What property players are saying about the Budget

KUALA LUMPUR (Oct 11): The Armed Forces Fund Board (LTAT) has welcomed the 12% increment in the allocation for the Ministry of Defence to RM15.6 billion in Budget 2020, from RM13.9 billion in Budget 2019.

“This increment bodes well for us, given that it provides opportunities to companies under the current LTAT stable that are key participants in the maritime sector, with current projects with the Ministry,” the board’s chief executive Nik Amlizan Mohamed said in a statement.

LTAT pleased with increased budget allocation to Mindef

KUALA LUMPUR (Oct 11): The government’s Budget 2020 continues to allocate the largest amount to the Ministry of Education — increasing its allocation by 6.5% to RM64.1 billlion from RM60.2 billion this year.

Of this, the portion for school maintenance and upgrading works is also higher at RM735 million, from RM652 million last year.

Education ministry gets biggest chunk at RM64.1b

The Government is proposing to give wage and hiring incentives to employees and employers in a bid to address the high youth unemployment rate in the country, and to reduce the country’s over-dependence on low-skilled foreign workers.

Putrajaya proposes to spend RM6.5 billion across five years in an initiative called “Malaysian@Work”, Minister of Finance Lim Guan Eng announced in Budget 2020 today.

Incentives for employers, workers in bid to address employment woes

Meta CEO Mark Zuckerberg made a key concession at a US antitrust trial on Tuesday, saying he bought Instagram because it had a "better" camera than the one his company was trying to build for flagship app Facebook at the time.

At US antitrust trial, Meta's Zuckerberg admits he bought Instagram because it was 'better' 

Fraser & Neave Holdings Bhd (KL:F&N) marked a milestone with its first batch of 2,500 dairy heifers from Chile at its integrated dairy farm in Gemas, Negeri Sembilan.

F&N's first batch of 2,500 Chilean dairy cattles arrives in Gemas farm

OpenAI is working on its own X-like social media network, the Verge reported on Tuesday, citing multiple sources familiar with the matter.

OpenAI is working on X-like social media platform — report

Canadian Prime Minister Mark Carney said his government will allow automakers to import US-manufactured cars and trucks without tariffs, as long as the companies keep making vehicles in Canada.

Canada scraps tariffs for automakers that keep plants running

US importers looking to sidestep Trump administration tariffs are desperately seeking space in a type of warehouse that lets them stash merchandise for as long as five years without paying duties.

Trump trade war sparks run on US warehouses with tariff loophole

US consumer spending has benefited from strong wage growth and low unemployment so far, but it faces huge risks, bank executives warned, if the upheaval sparked by President Donald Trump's trade policy persists.

US banks flag risks to consumer spending from tariff policy uncertainties

Here is a brief recap of some business news and corporate announcements that made the headlines on Tuesday.

Petronas Gas, RHB Bank, Lien Hoe, Mayu Global, Binastra, Skygate, Tomei, Binasat, Aurelius Technologies, Kerjaya Prospek, Scope Industries, Keyfield International, Bank Rakyat

Apple's main India suppliers Foxconn and Tata shipped nearly US$2 billion (RM8.83 billion) worth of iPhones to the US in March, an all-time high, as the US company airlifted devices to bypass President Donald Trump's impending tariffs, customs data shows.

Apple airlifted iPhones worth a record US$2 bil from India in March as Trump tariffs loomed

LONDON (April 15): European credit ratings agency Scope has warned that the United States could be downgraded if a lengthy trade war erodes long-term trust in the dollar, or if President Donald Trump implements even more extreme measures such as capital controls.

The fallout from Trump'...

European rating agency Scope sends US downgrade warning

The first phase of the 2025 PKR election, involving the Angkatan Muda Keadilan (AMK) and Women's Division levels, has been completed. 

The party polls were held in seven states from last Friday to Sunday, said Party Election Committee (JPP) chairperson Datuk Seri Dr Zaliha Mustafa.

First phase of PKR election completed, focus shifts to second phase — Zaliha

The High Court here increased to RM10,000, from the RM5,000 fine imposed by a Magistrate against a former president of Universiti Malaya Association of New Youth (Umany) for insulting the university’s vice-chancellor by staging a protest during a convocation ceremony in 2019.

High Court doubles fine to RM10,000 for former UM student activist for insulting vice-chancellor

China hopes to begin another “50 golden years” in its bilateral relations with Malaysia, said President Xi Jinping, as he begins his three-day visit here for the first time in 12 years as part of his Asean tour.

China sees another ‘50 golden years’ with Malaysia, says Xi

RHB Bank Bhd (KL:RHBBANK),&nbsp;the country's fourth-largest lender by assets, has been named as the third defendant in a RM313.08 million lawsuit filed by Prismaworld Embassyview Sdn Bhd in the Kuala Lumpur High Court.

RHB confirms named as defendant in RM313m Taman U-Thant suit, to contest claims

The restoration of gas supply in Putra Heights, Subang Jaya — where a massive blaze took place two weeks ago after a pipeline leak — is currently estimated to take place no earlier than July 1, said Petronas Gas Bhd (KL:PETGAS).

Gas supply restoration in Putra Heights expected by July 1 at the earliest, says Petronas Gas

Chinese President Xi Jinping arrived in Malaysia on Tuesday for a three-day state visit at the invitation of the King,&nbsp;Sultan Ibrahim Sultan Iskandar.

China's Xi arrives in Malaysia for three-day state visit

China is "tearing down walls" and expanding its circle of trading partners, "shaking hands" instead of "shaking fists", its foreign ministry said on Tuesday, as Beijing works on diversifying ties amid an escalating trade war with the US.

China says it is 'tearing down walls' to expand trade alliances amid US stand-off

Signature Alliance Group Bhd, a subsidiary of kitchen and wardrobe maker Signature International Bhd (KL:SIGN), has secured M&amp;A Securities Sdn Bhd and Affin Hwang Investment Bank Bhd as the underwriters for its initial public offering on the ACE Market of Bursa Malaysia.

M&A Securities, Affin Hwang to underwrite Signature Alliance Group's IPO

Investor sentiment regarding economic prospects is the most negative in three decades, yet fund managers’ pessimism isn’t fully reflected in their asset allocation which could mean more losses for US stocks, a Bank of America Corp survey shows.

Investors haven’t been this bearish in 30 years, BofA poll shows

Lien Hoe Corp Bhd (KL:LIENHOE) announced that its audited accounts for the financial year ended Dec 31, 2024 (FY2024) raised a material uncertainty related to its ability to continue as a going concern, according to its independent auditors, UHY Malaysia PLT.&nbsp;

Lien Hoe’s independent auditors raise going concern doubts following FY2024 audit

Former 1Malaysia Development Bhd (1MDB) CEO Arul Kanda Kandasamy said it was within his rights to comment publicly about the company in 2018, even when he was on garden leave.

Arul Kanda denies breaching 1MDB duty with public remarks

Honda is considering switching some car production from Mexico and Canada to the United States, aiming for 90% of cars sold in the country to be made locally in response to new US auto tariffs, the Nikkei newspaper reported on Tuesday.

Honda to make 90% of US sales locally by relocating Mexico, Canada production — report

Bank Rakyat has appointed Ahmad Shahril Mohd Shariff as its new chief executive officer (CEO), effective April 9.

Ahmad Shahril has been serving as the acting CEO of the bank since Nov 9, 2024, following the resignation of Datuk Mohammad Hanis Osman, who held the top job for nearly three years from July 2022.

Ahmad Shahril appointed as Bank Rakyat CEO

Binasat Communications Bhd (KL:BINACOM) said a RM13.2 million civil works contract involving a high-voltage substation in Kuala Lumpur that was awarded to the group late last year has been terminated.

Binasat loses civil works job for Amazon-linked KL substation project

Here is a brief recap of some business news and corporate announcements that made the headlines on Tuesday.

The federal government has approved an allocation of RM16.45 billion for the setting up of a helicopter assembly factory at the Melaka International Airport (LTAM) in Batu Berendam here, said Chief Minister Datuk Seri Ab Rauf Yusoh.

Putrajaya has greenlit RM16.4b helicopter assembly plant in Melaka, says CM

Skygate Solutions Bhd (KL:SKYGATE), formerly Ewein Bhd, is buying a 51% stake in Leader Range Technology (LRT) for RM10.71 million in cash. In a share sale agreement signed on Tuesday, Skygate said it will acquire 255,003 shares from founder and managing director Ong Chee Fui and Kumpulan Modal Perdana Sdn Bhd (KMP), along with all preference shares held by KMP.

Skygate Solutions buys 51% stake in engineering firm from MOF Inc unit and founder for RM10.7m

China has ordered its airlines not to take any further deliveries of Boeing jets in response to the US decision to impose 145% tariffs on Chinese goods, Bloomberg News reported on Tuesday, citing people familiar with the matter.

China orders airlines to suspend Boeing jet deliveries amid trade war — Bloomberg News 

Binastra Corp Bhd (KL:BNASTRA) has secured two construction contracts worth a combined RM458.5 million to build serviced apartments along Jalan Kebun Teh in Johor Bahru, Johor.

Binastra bags two serviced apartment contracts in JB worth RM459 mil

The US economy is set to lose billions of dollars in revenue in 2025 from a pullback in foreign tourism and boycotts of American products, adding to a growing list of headwinds keeping recession risk elevated.

US economy set to lose billions as foreign tourists stay away 

Malaysian oil and gas services firm Keyfield International Bhd (KL:KEYFIELD) is buying a new long cable-laying barge for US$20.55 million (RM90.8 million) cash, which it will then charter out for a year for US$9.1 million.

Application error: a client-side exception has occurred (see the browser console for more information).