Petroleum-related revenue is forecast to fall to RM43.9 billion — or 18.8% of total revenue — in 2022, more than half of which will be in the form of Petroliam National Bhd (Petronas) dividends.

Petroleum-related revenue forecast to fall to 18.8% of total govt revenue in 2022

As at end-September 2020, a total of RM13.4 billion in assets linked to 1Malaysia Development Bhd's financial trail had been recovered and merged into a dedicated trust fund administered by the Ministry of Finance (MoF), according to MoF 2021 Fiscal Outlook and Federal Government Revenue Estimates released today.

RM13.4 billion recovered from 1MDB assets as at September

Malaysia's gross export earnings are expected to rebound 2.7% in 2021 after a projected 5.2% decline in 2020, helped by the recovery in global trade and supply chains, according to the Ministry of Finance's Economic Outlook 2021 report.

Malaysia's 2021 gross exports seen growing 2.7% after 5.2% decline in 2020

Malaysia's gross domestic product is expected to grow between 6.5% and 7.5% in 2021, after a 4.5% contraction in 2020 due to the Covid-19 pandemic.

Malaysia's economy expected to grow 6.5%-7.5% in 2021 after 4.5% contraction in 2020

The Government expects its fiscal deficit to swell to 6% of Gross Domestic Product (GDP) in 2020 — the largest gap since the Global Financial Crisis in 2009, due to the additional stimulus packages to lift the country’s economy out of the doldrum plus lower GDP as a result of the COVID-19 outbreak.

The original forecast of the fiscal deficit was at 3.2%, compared with 3.4% recorded in 2019, according to the Economic Report 2021 released by the Ministry of Finance.

Malaysia’s fiscal deficit rises to 6% of GDP — the highest since GFC

The Federal Government has revised upwards its 2020 total expenditure allocation to RM314.7 billion from the initial budget estimate of RM297 billion as the prolonged COVID-19 pandemic crisis necessitated the Government to implement an extensive expansionary fiscal stance, according to the Ministry of Finance's (MOF) Fiscal Outlook 2021 report.

The MOF said the net increase of RM17.7 billion in the total expenditure allocation is derived from the estimated fiscal stimulus injection at RM38 billion and savings from expenditure amounting to RM20.3 billion

Govt 2020 expenditure allocation revised to RM314.7b from RM297b

Debt service charges are expected to remain manageable at RM34.9 billion or 15.4% of total projected government revenue in 2020, despite being higher than the initial estimate of 14.3% announced under Budget 2020.

Debt service charges to increase to RM34.9b or 15.4% of govt revenue in 2020

Malaysia’s total debt rose to RM1 trillion or 69.7% of gross domestic product (GDP) as at end-June 2020, mainly contributed by net issuance of international bonds and notes from public enterprises and the private sector.

The Ministry of Finance’s (MoF) Fiscal Outlook 2021, however, noted that in general, Malaysia’s external debt position remains manageable. The external debt with medium- and long-term tenures accounted for 58.7% of total external debt, indicating low refinancing risk, the report highlighted.

Malaysia’s external debt up to RM1 trillion at end-June 2020

The government’s revenue is projected to drop by 14% to RM227.3 billion in 2020, compared with RM264.4 billion in 2019, as a result of lower tax collection, according to the Ministry of Finance (MoF) in its Fiscal Outlook 2021 report.

Public revenue to shrink to RM227.3b in 2020 amid lower tax collection

All supply-side sectors of the Malaysian economy are expected to contract in 2020 due to the unprecendented Covid-19 pandemic crisis before rebounding in 2021, the Ministry of Finance (MoF) said in its Economic Outlook 2021 report.

Malaysian economy's supply side seen rebounding in 2021 after 2020 contraction

The federal government is raising more debt to finance a wider fiscal deficit as it is in the driver seat to steer the economy out of recession. 

The national debt is expected to inch up further to hit 61% of gross domestic product (GDP) in 2021, up from 60.7% in 2020 and 52.5% in 2019.

Federal govt debt to increase to 61% of GDP in 2021

Malaysia’s current account surplus is expected to narrow to RM48.46 billion in 2020, from RM50.85 billion in 2019, due to a widening deficit in the services account despite a higher surplus in the goods account and as the nation registers a lower income account deficit, the Ministry of Finance (MoF) said in its Economic Outlook 2021 report.

Narrower current account surplus seen as Malaysia records first travel deficit since 1989

Total outstanding government guarantees (GGs) as at end-September 2020 climbed to RM289.8 billion or 20.1% of gross domestic product (GDP), from RM275.4 billion or 18.2% of GDP as at end-2019, according to the Ministry of Finance's (MoF) 2021 Fiscal Outlook released today.

Outstanding govt guarantees rise to RM289.8b or 20.1% of GDP

Malaysia's unemployment rate is projected to decrease to 3.5% in 2021, compared with an estimated 4.2% in 2020, as the country’s economy is expected to rebound firmly in 2021 after a dismal economic performance in 2020 due to the Covid-19 pandemic, according to the Ministry of Finance's (MoF) Economic Outlook 2021 report.

Malaysia's 2021 unemployment rate seen improving to 3.5%

Here is a brief recap of some corporate announcements that made the news on Thursday.

Bumi Armada, MISC, Berjaya Food, Mr DIY, Prolintas, Lysaght, Keyfield, Teo Seng, YTL Power, Ranhill Utilities, Seal and LBS Bina

US regulators led by the Federal Reserve have refused to endorse a plan that would have seen the Basel Committee on Banking Supervision push lenders to disclose their climate risk, according to people familiar with the matter.

Fed refuses to back Basel climate plan, leaving talks in limbo

Ford Motor Co agreed to a US$165 million (RM733.5 million) civil penalty to settle allegations the company failed to recall cars with defective rearview cameras in a timely manner, the second largest fine ever levied by the National Highway Traffic Safety Administration (NHTSA).

Ford hit with near-record US$165 mil penalty on recall failure

Small and medium enterprises (SMEs) play a crucial role in driving economic growth within the Asia-Pacific Economic Cooperation (Apec) region, particularly when it comes to fostering inclusive development, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

SMEs play crucial role in driving growth in Apec economies, fostering inclusivity — Tengku Zafrul

The government will draft the Government Procurement Bill (GP Bill) in taking specific steps to increase transparency in the government procurement process, according to the Ministry of Finance.

Govt procurement draft bill to be tabled in Parliament next year

Bina Puri Holdings Bhd (KL:BPURI) said on Thursday that its associate company KL-Kuala Selangor Expressway Bhd (Latar) has won an arbitration case against Prolintas Expressway Sdn Bhd and was awarded RM46.13 million.

Bina Puri's associate wins RM46 mil in arbitration case against Prolintas 

Walt Disney Co posted fiscal fourth-quarter (4Q) sales and profit that beat Wall Street estimates and forecast earnings growth for the next three years, a rare event for a company that historically hasn’t made long-range profit projections.

Disney 4Q profit beats expectations as movies, streaming gain

The number of women holding positions as Members of Parliament, State Assembly members and ministers in Malaysia remains low, said Deputy Minister of Communications Teo Nie Ching.

Female representation in Parliament, state assemblies still low, says Teo

Wall Street's main indexes edged lower in choppy trading on Thursday after monthly producer prices rose as expected, with investors awaiting Federal Reserve (Fed) Chair Jerome Powell's comments later in the day for clues on the outlook for interest rates.

Wall Street struggles for direction after in-line monthly producer prices

Chinese President Xi Jinping will arrive in Lima on Thursday, kicking off a week-long diplomatic blitz in Latin America by inaugurating the massive Chancay deepwater port, one of Beijing's most ambitious infrastructure investments in Latin America.

China's Xi arrives in Lima for Apec, to open Pacific megaport

Gold miner Niche Capital Emas Holdings Bhd (KL:NICE) has commenced gold mining operations at the Sokor North Gold Mine in Kelantan, with the successful commissioning of its heap leaching plant there.

Niche Capital Emas begins gold mining ops in Kelantan

Cash-rich Lysaght Galvanized Steel Bhd (KL:LYSAGHT) has declared a special dividend of 35 sen per share as its quarterly earnings rose to an eight-year high.

This brings the total dividend declared to 43 sen per share in the current financial year ending Dec 31, 2024 (FY2024) so far — the highest since FY2018 when it paid out 50 sen dividend per share.

Lysaght pays special dividend of 35 sen as earnings rise to eight-year high

Scomi Energy Services Bhd (KL:SCOMIES), a Practice Note 17 (PN17) company, said it is "in a preliminary discussion with a white knight to formulate a regularisation plan to be submitted before Jan 31, 2025". It did not elaborate.

Scomi Energy says in talks with another potential white knight after Dhaya Maju deal falls through

Berjaya Food Bhd (KL:BJFOOD) on Thursday posted its fourth consecutive quarter in the red as the anti-Israel boycott movement continued to affect the group, which operates the Starbucks coffee chain in Malaysia.

Berjaya Food logs fourth quarter in the red due to anti-Israel boycott

Home-grown retailer Mr D.I.Y. Group (M) Bhd (KL:MRDIY) saw a marginal 1.9% drop in its third-quarter net profit, on higher administrative and other operating expenses, which increased by 25.6% and 10.2% year-on-year (y-o-y) to RM56.7 million and RM283.7 million respectively.

Higher administrative expenses drag down Mr DIY's 3Q net profit slightly, one sen dividend declared

Teo Seng Capital Bhd (KL:TEOSENG) posted a 32.4% jump in its third quarter net profit, lifted by strong gains in its key poultry farming business, as well as its segment on investments and trading of poultry-related products.

Net profit for its July-September quarter (3QFY2024) climbed to RM58.1 million from RM43.8 million a year ago.

Teo Seng signals strong prospects as it posts 32% jump in 3Q profit 

CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), the manager of CapitaLand Malaysia Trust (KL:CLMT), has appointed Yong Su-Lin as chief executive officer, designate (CEO designate) of the company effective Jan 2, 2025.

CapitaLand Malaysia Trust names Yong Su-Lin as CEO-designate from Jan 2

A summary of how key Bursa Malaysia indices and the ringgit performed on Thursday.

FBM KLCI down 0.67% to 1,600.68 on Nov 14, 2024

Prolintas Infra Business Trust (KL:PLINTAS), which owns highways, nearly tripled its net profit for the third quarter thanks to a jump in toll collection and tax credit.

Prolintas Infra's 3Q net profit nearly triples as toll collection jumps, on track to meet distribution target

Here is a brief recap of some corporate announcements that made the news on Thursday.

UOA REIT (KL:UOAREIT) saw its net rental income fall 12.6% to RM18.66 million in its third quarter ended Sept 30, 2024 (3QFY2024), from RM21.34 million a year ago, as gross rental dropped on the departure of an anchor tenant, while operating expenses climbed.

UOA REIT's 3Q rental income falls on loss of anchor tenant, higher expenses

Here’s a quick look at some of the stories that made headlines today.

EVENING 5: Five things you need to know today

ACE Market-listed Farm Price Holdings Bhd (KL:FPHB), a Johor-based wholesaler and distributor of fresh vegetables, food and beverage (F&amp;B) products, is expanding its distribution reach to Sabah.

Farm Price ventures into Sabah's fruit business via stake purchase in KK firm

YTL Power International Bhd's (KL:YTLP) 53.2%-owned subsidiary Ranhill Utilities Bhd (KL:RANHILL) has scrapped plans to jointly pursue a public-private partnership project with China Energy International Group Co Ltd (CEIG) for the proposed development of a regional drinking water supply facility project in Indonesia. This follows the expiry of a memorandum of understanding (MOU) on Oct 29.

Ranhill Utilities, China Energy scrap plan to pursue water supply facility project in Indonesia

Petroliam Nasional Bhd (Petronas) has made new investments totalling RM7.5 billion at the Pengerang Integrated Complex (PIC) near Kota Tinggi.

Petronas invests another RM7.5b in Pengerang Integrated Complex — Onn Hafiz

LBS Bina Group Bhd (KL:LBS) said it it looking into developing a 10-gigawatt (GW) green hydrogen plant in Kota Marudu, Sabah jointly with the Sabah Forestry Development Authority (Safoda) and two other companies.

LBS Bina inks MOU to develop green hydrogen plant in Sabah

Oil and gas services firm Keyfield International Bhd (KL:KEYFIELD) on Thursday reported record quarterly earnings and revenue, driven by higher vessels utilisation rates and increased vessel numbers.

Keyfield books record earnings for 3Q, pays four sen dividend

The number of Americans filing new applications for unemployment benefits fell last week, suggesting the labour market continued to chug along and that the abrupt slowdown in job growth in October was an aberration.

US weekly jobless claims fall; unemployment rolls shrink

Hume Cement Industries Bhd (KL:HUMEIND) posted a net profit of RM47.42 million for its first quarter ended Sept 30, 2024 (1QFY2025), down slightly from RM48.33 million a year ago, as lower market demand weighed on cement sales.

Hume Cement sees slight fall in 1Q profit, declares higher dividend

MELAKA (Nov 14): The Malaysian Institute of Road Safety Research (Miros) has introduced three safety guidelines for electric vehicles (EVs), aimed at improving the efficiency of EV safety management.

Economic Report 2020/2021

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Economic Report 2020/2021

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