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

BEIJING (Nov 9): China on Monday announced a two-month extension of export-control waivers due to expire this month, preserving part of a wide-ranging deal struck after a summit between Presidents Xi Jinping and Donald Trump.

China extends suspension of new rare earth controls until January

(Nov 9): BMW AG is adding South Korean battery-cell makers Samsung SDI Co and LG Energy Solution Ltd to its supplier networks in Europe and the US, as the German carmaker looks to reduce dependencies.

BMW widens battery component suppliers with Samsung, LG Energy

SYDNEY (Nov 9): Australian data centre operator NextDC said on Monday that it would stop work on all projects without customer contracts following a big setback on a facility in Melbourne, as two major rivals finalised buying an A$715 million (US$492 million) stake in the company.

NextDC pauses uncontracted projects after Australian data centre woes

BEIJING (Nov 9): A fire on Sunday at a high-rise building in Taiyuan, the capital of China's northern province of Shanxi, killed at least 14 people, the official Xinhua news agency said on Monday.

Building fire kills 14 in China's northern city of Taiyuan

LONDON (Nov 9): Oil prices fell on Monday after US President Donald Trump downplayed the likelihood of renewed strikes on Iran, though attacks on ships near the Strait of Hormuz kept supply concerns in focus.

Oil falls as Trump signals restraint on Iran despite fresh shipping attacks

TAIPEI (Nov 9): Taiwan's exports rose more than expected to a record monthly level for a third straight month in October, boosted by demand for the island's AI chips and technology.

Taiwan's October exports surge again on strong AI demand

(Nov 9): Vietnam plans to step up tax collection and state borrowing next year, reducing its reliance on banks to finance a major infrastructure drive that’s key to its bid for double-digit economic growth.

Vietnam turns to taxes, state borrowing to finance growth push

BENGALURU (Nov 9): Tesla will have to refund Cybertruck deposits for many customers as orders far exceed production capacity, CEO Elon Musk said, following last week's announcement that the electric vehicle maker is winding down the pickup truck's production at its Texas factory.

Tesla to refund many Cybertruck deposits as demand exceeds production, Musk says

TOKYO (Nov 9): SoftBank Group reports quarterly earnings on Tuesday, with investors wondering how much reassurance it will offer about its strategies amid a rout in AI stocks and after its takeover of ABB’s robotics unit was blocked by China.

SoftBank to face scrutiny of AI strategy at second-quarter earnings after selloff

I haven’t stopped being entertained by TuJu memes and videos. The mere thought of them cracks me up — especially the ones of actual on-the-road tests, where the route isn’t so much recalibrating as it is spinning and zooming in and out, like some Harry Potter detector machine gone wonky. If TuJu had been the first navigation app Klang Valley users had ever been introduced to, I suspect the Kuala Lumpur A to Z driver’s map guide would still be in print.

Coffee Break: Walau ke mana diTuJu, may humour take us there

(Nov 9):&nbsp;In a 257-word memo to employees, Nvidia Corp&nbsp;chief executive officer Jensen Huang left no doubt that the chip colossus was embroiled in a crisis like none before in its three-decade history.&nbsp;

Nvidia CEO’s affair engulfs AI giant in Chinese spying probe

Malaysia is producing more tertiary graduates. Yet, many of them work in jobs that do not require their qualifications (or even a qualification), earn modest salaries and struggle to find the careers they expected. Meanwhile, employers complain that they cannot find people with the skills they need.

Tong's Portfolio — More graduates. Where are the good jobs?

DOHA (Nov 9): Malaysia is considering accelerating its quantum migration process to strengthen national data security amid advances in quantum computing technology that are expected to pose new challenges to cybersecurity systems.

Fahmi: Malaysia considers accelerating quantum migration to boost data security

KUALA LUMPUR (Nov 9): While Malaysia’s inflation rate has moderated, the easing trend does not necessarily translate into a lower cost of living for households, highlighting the difference between changes in consumer prices and the actual affordability of everyday necessities.

BNM: Lower inflation does not mean lower cost of living, CPI only tells part of story

HONG KONG (Nov 9): Asian markets and US equity futures had an upbeat start on Monday, edging into positive territory after a wild week when tech-heavy markets in Asia suffered some of their steepest falls in years over AI.

Asian stocks bounce as AI, Mideast jitters recede; dollar firm on Fed bets

(Nov 9):&nbsp;A Chinese state-run newspaper denied Beijing had any link to Nvidia Corp chief executive officer Jensen Huang’s extramarital affair, accusing American media outlets of spreading a fabricated spy narrative and warning the issue could hurt ties.

China newspaper dismisses Jensen Huang spy claim, warns on ties

BEIJING (Nov 9): China on Monday extended the suspension of its additional tariff of 24% on US imports and the suspension of special port fees on US-linked ships for two months.

China extends suspensions of 24% tariff on US goods, port fees on US ships for two months

(Nov 8): US&nbsp;President Donald Trump said on Sunday that he thinks he will meet Chinese President Xi Jinping and Russian President Vladimir Putin at an Apec leaders' summit in China next week and discuss ending the war in Iran and denuclearisation.

Trump thinks he will meet Xi and Putin at China Apec summit

LONDON (Nov 9): Oil prices fell on Monday after US President Donald Trump downplayed the likelihood of renewed strikes on Iran, though attacks on ships near the Strait of Hormuz kept supply concerns in focus.

While nine months is not a long time for a new index, it can still provide useful insight into whether it is capturing the characteristics it was designed to identify.

In the first nine months of the year, the Bursa Malaysia Quality 50 Index (BMQ) has gained 9.4%. Over the same period, ...

Has the Bursa Malaysia Quality 50 Index passed its first real test?

SYDNEY/BENGALURU (Nov 9): ANZ&nbsp;fell short of expectations for net interest margin and net interest income on Monday, dragging on its share price, as its CEO warned that global competition for capital from AI and other sectors would keep interest rates higher for longer.

ANZ misses some expectations, warns capital competition to keep rates higher

BENGALURU (Nov 9): Taiwan stocks rallied on Monday after the government activated its stock stabilisation fund following an AI-linked selloff last week that wiped out trillions of dollars from global markets.

Taiwan shares rally as state supports; South Korean equities extend loss

<div class="content-side-bar-box">
Summary

<ul>
	<li>Sources say the company had expected to secure a higher valuation</li>
	<li>A private equity firm is said to be keen on acquiring a stake</li>
</ul>
</div>

1 Doc Internation...

Beauty centre operator 1 Doc International’s IPO scrapped

WASHINGTON/CAIRO (Nov 8): US President Donald Trump said on Sunday that he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progress, even as both countries reported that shipping had been hit in or near the Strait of Hormuz.

Trump says he is highly unlikely to order Iran strikes if talks progress

(Nov 9):&nbsp;Nvidia Corp&nbsp;shares fell after the company’s board launched an investigation into chief executive officer Jensen Huang, following his admission of an affair with a woman identified in a series of reports as a suspected Chinese spy.

Nvidia shares drop after CEO Huang’s affair triggers board probe

THERE are around 137 living languages spoken in Malaysia, depending on how you count them.

Commentary: From Manglish to Bahasa Rojak in one sentence: Is AI ready for real conversations?

Country Heights Holdings Bhd (KL:CHHB) has failed to draw bidders for two of its forced auctions this year. The latest was for a 667,147 sq ft leasehold parcel in Mukim Petaling owned by Mines Waterfront Business Park (in liquidation) that had a reserve price of RM152.77 million.

Frankly Speaking: Why auctions of Country Heights assets failed

<div class="content-side-bar-box">
Summary

<ul>
	<li>Hektar REIT’s proposal to acquire KYS KL East International School for RM125 mil could be withdrawn, say sources</li>
	<li>Unitholders are to vote on the proposal on Nov 16</li>
	<...

Hektar REIT said to be withdrawing proposal to buy KYS KL East International School

The week ahead will get off to a slow start as the Deepavali public holiday falls on Monday, but will heat up towards the end of the week with the 16th Melaka state election on Saturday, Nov 14.

The Week Ahead: Melaka state election, lame-duck US Congress session to steal spotlight

BENGALURU (Nov 9): Gold rose more than 1% on Monday as softer oil prices eased inflation concerns, while investors awaited key US inflation data and fresh signals from the Federal Reserve on its policy outlook.

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