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?  

KUALA LUMPUR (Oct 11): The following are the highlights of Budget 2020:

Malaysian economy


	Budget 2020 has four thrusts including boosting economic growth in new economy and digital era, investing in people.
	Approved foreign direct investment ...

Budget 2020 highlights

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

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

KUALA LUMPUR (Oct 11): The federal government plans to proceed with the Rapid Transit System (RTS) between Johor Bahru and Singapore to solve the long-standing traffic congestion on the Causeway. 

This was announced by Minister of Finance Lim Guan Eng during his presentation of Budget 2020 in Parliament today, although he did not offer any details on the next course of action. 

The four-kilometre RTS between Bukit Chagar (Johor Bahru) and Woodlands (Singapore) with proposed capacity to ferry 10,000 passengers per hour, was meant to be jointly operated between Prasarana Malaysia Bhd and Singapore’s SMRT Corp Ltd.

Johor-Singapore rail link to proceed, but details scarce

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

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

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): 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 government will introduce a new tax band for those earning over RM2 million a year, which will see them taxed 30% — two percentage points more than the 28% currently applied to those earning over RM1 million.

2,000 people earning over RM2m a year to be taxed 30%

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

Pragmatic, carefully curated to benefit the rakyat across ethnic groups and with timely incentives to reduce the country's dependence on foreign labour — these are among the comments from Malaysia's top bankers on Budget 2020, which was tabled in Parliament today by Finance Minister Lim Guan Eng.

What Malaysia's banking chiefs say about Budget 2020

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

Bitcoin’s chances of hitting US$40,000 (RM187,260) are top of mind for crypto speculators, as they head into the final stretch of a year during which the largest digital asset more than doubled in price.

Bitcoin brings US$40,000 into view after more than doubling in a chaotic year

Officials and investors are starting to worry that the world is sliding toward a new era of great-power conflict, as the number of flashpoints multiplies from West Africa through Ukraine to the Middle East.

Fears of a new world war prey on hedge fund titans and policymakers alike

Asian shares edged lower, starting the last month of the year on a weak note after the recent rally, although anticipated interest rate cuts in Europe and the US should help ease pressure on local currencies and central banks.

Asian shares start December on weak note, dollar on back foot

A client of Malaysia’s biggest bank recently discovered that her bank balance had mysteriously increased to more than US$86 million (RM404 million).

Woman discovers over RM404m mistakenly deposited in Maybank account

DBS Group Holdings Ltd’s customers may face slight delays in accessing their mobile banking accounts, due to “higher-than-normal concurrent logins”, the bank said in a Facebook post on Friday.

DBS says customers may face delays in mobile banking access

PUTRAJAYA (Dec 1): Outdated regulations in the civil service that are no longer suitable will be amended to speed up the process of implementing projects, especially those that will benefit the people, said Chief Secretary to the Government Tan Sri Mohd Zuki Ali.

Mohd Zuki: Outdated regulations to be amended to expedite people’s projects

United Nations Secretary General Antonio Guterres told world leaders on Friday that the burning of fossil fuels must be stopped outright and a reduction or abatement in their use would not be enough to stop global warming.

UN chief says ending fossil fuel use is only way to save burning planet

Mutual funds that hold bonds are selling like hot cakes in China as investors bet the central bank will cut interest rates further to aid the struggling economy.

China's weak economy spurs furious demand for bond funds

Banking and financial services stocks were among the top gainers in early morning trade on Friday, after they concluded the latest earnings reporting season with mostly encouraging results.

Banking stocks among top gainers in early trade

TOKYO (Dec 1): The Bank of Japan (BOJ)'s massive asset-buying scheme introduced in 2013 led to a sharp deterioration in bond market function, which continued to worsen after the adoption of yield curve control, a central bank survey of market participants showed on Friday.

BOJ survey highlights sharp bond market strains from ultra-easy policy

Texas Attorney General Ken Paxton sued Pfizer Inc&nbsp;for allegedly misrepresenting the effectiveness of the company’s Covid-19 vaccine.

Texas sues Pfizer over Covid-19 vaccine effectiveness claims

After ditching the airasia Superapp name and rebranding as Move in September, Capital A Bhd’s digital arm wants to become an established and widely recognised online travel agency in Southeast Asia.&nbsp;

Move CEO wants travel brand recognition in post-AirAsia era

Billionaires minted in the latest year accumulated more wealth through inheritance than entrepreneurship for the first time since UBS started tracking the fortunes of the world’s richest almost a decade ago, said CNN.

CNN: New billionaire heirs overtake self-made ones, with US$5.2 trillion wealth transfer over next 20 years

Prime Minister Datuk Seri Anwar Ibrahim on Friday registered with the National Digital Identity or Digital ID, making him the first person in the country to have&nbsp;the Digital ID facility.

Anwar first to have digital ID in Malaysia

Banking and financial services stocks were among the top gainers in early morning trade on Friday, after they concluded the latest earnings reporting season with mostly encouraging&nbsp;results.

TikTok chief executive officer Shou Chew and other top executives met recently with 40 influential leaders, including many from the tech industry, who were pushing for more moderation of antisemitic content and questioning why pro-Palestine videos were so popular on the short-video app.

TikTok CEO challenged by tech leaders on pro-Palestine posts

The defence in Datuk Seri Najib Razak’s second SRC International Sdn Bhd case on Friday applied for the former prime minister to be given a discharge not amounting to acquittal in the ongoing money-laundering case, as the attorney general had not made a decision over the representation letter submitted in July.

Defence applies to discharge Najib in second SRC case

BEIJING (Dec 1): Malaysia&nbsp;has invited China’s President Xi Jingping to visit, its ambassador to Beijing said on Friday, as the Southeast Asian country also seeks to boost the number of Chinese tourists to five million a year, to fuel economic growth.

Malaysia invites China’s Xi to visit, ramps up tourism target

November saw further moderation in the Malaysian manufacturing sector, as demand conditions remained subdued. That said, there were some tentative signs of improvement, resulting in less pronounced slowdowns in new orders, output and employment, while business confidence reached a seven-month high.

M'sian manufacturing PMI at seven-month high amid softer moderation in new orders

Petroliam Nasional Bhd (Petronas) and its petroleum arrangement contractors have recorded 19 exploration discoveries and two exploration-appraisal successes, contributing over one billion barrels of oil equivalent (bboe) of new resources for Malaysia in 2023.

Petronas finds over 1 bil barrels of oil equivalent exploration discoveries in 2023

Hong Leong Investment Bank (HLIB) has maintained its “buy” call on IHH Healthcare Bhd, with a target price of RM7.62, as it continued to favour IHH for its resilience in a defensive sector and positioning to benefit from global megatrends, such as an ageing population.

IHH Healthcare poised to benefit from megatrends such as ageing population, says HLIB

Global commercial real estate and investment management company JLL has announced the retirement of JLL Property Services (Malaysia) chairperson YY Lau, and a new strategic partnership with Appraisal Malaysia, a domestic real estate firm with over 50 years of valuations, consultancy and advisory services expertise, according to a press release issued on Friday.

JLL announces retirement of country head YY Lau, new partnership with Appraisal Malaysia

Prime Minister Datuk Seri Anwar Ibrahim on Friday stressed that the people's concerns&nbsp;over the implementation of the National Digital Identity or&nbsp;Digital ID, such as personal and banking records being leaked and chips implanted into the bodies of individuals, are completely unfounded.

Digital ID concerns such as personal data leaks and chip implants unfounded, says Anwar

Bursa Malaysia Bhd on Friday launched the IR4U programme, a comprehensive programme to support and enhance the standards and capabilities of investor relations (IR) practices&nbsp;to raise the visibility and investability of Malaysian&nbsp;listed companies.

Bursa launches IR4U programme to support, enhance investor relations practices

KUALA LUMPUR (Dec 1): Bursa Malaysia ended the morning session flat&nbsp;on Friday, as buying interest in selected heavyweight stocks&nbsp;was offset by selling in the mid- and lower liners, while worries over China’s economy further dampened sentiment,&nbsp;a dealer said.&nbsp;

Bursa Malaysia flat at midday break as China worries weigh on sentiment

Alibaba Group Holding Ltd received a rare downgrade from Wall Street on the same day it lost its crown as China’s most valuable e-commerce firm to one of its main rivals.

Morgan Stanley cut its rating on Alibaba’s American depositary receipts to equal-weight from overweight, lowering its price target to US$90 (RM420.93) from US$110.

Alibaba gets rare Wall Street downgrade as rival gains traction

A media statement by Dr&nbsp;Ong Kian Ming, a former deputy international trade and industry minister, on Dec 1, 2023.

Public interest must not be sacrificed in DNB shareholder agreement, says Ong Kian Ming

The Dow Jones Industrial Average closed at its highest level since January 2022 as investors crossed the finish line of a banner month for stocks and viewed cooling inflation data as a harbinger of easing Federal Reserve (Fed) monetary policy.

Dow rallies to year's highest close, caps blockbuster month

KUALA LUMPUR (Dec 1): RHB Investment Bank Research&nbsp;(RHB IB) has upgraded its rating on IJM Corp&nbsp;Bhd&nbsp;(IJM) to “buy”, with a higher target price of RM2.21 (previously RM1.99) based on sum-of-the-parts valuation, following the group’s better-than-expected financial performance in the first half of&nbsp;financial year&nbsp;ended Sept 30, 2023 (1HFY2024).&nbsp;

RHB IB upgrades IJM Corp on strong earnings and prospects, raises target price to RM2.21

KUALA LUMPUR (Nov 30): Analysts are expecting wider losses for Capital A Bhd for the financial year ending Dec&nbsp;31, 2023 (FY2023), after its recent nine-month results missed consensus, in line with lower-than-expected rebound in air travel.

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