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%

The Malaysian Communications and Multimedia Commission (MCMC) has assured that its directive to internet service providers (ISPs) to redirect domain name system (DNS) traffic using third-party DNS servers back to their servers will not affect, disrupt, or block users from accessing legitimate websites.

MCMC assures DNS redirection will safeguard access to legitimate websites

Kluang Umno Youth chief Syed Hussien Syed Abdullah has been picked as the Barisan Nasional (BN) candidate for the Mahkota state by-election on Sept 28.

Kluang Umno Youth chief Syed Hussien is BN candidate for Mahkota polls

Asia's most powerful storm this year made landfall in northern Vietnam on Saturday, the meteorological agency said, killing at least two people after tearing through China's island of Hainan, where it reportedly killed another two and injured dozens more.

Super Typhoon Yagi makes landfall in Vietnam after casualties in China

Communications Minister Fahmi Fadzil said the actions of social media providers in curbing criminal activities are still weak even though 21 discussions have been held between the ministry and all platforms so far.

Actions by social media providers to curb crime still weak, says Fahmi

Sultan of Perak Sultan Nazrin Shah has called for the restoration of humanity in finance, emphasising the importance of balancing economic growth with environmental stewardship and social inclusion.

Sultan Nazrin calls for restoration of humanity in finance

Indian education technology company Byju's auditor BDO Global has resigned after the startup did not provide documents requested following the start of insolvency proceedings, Byju's said on Saturday.

Byju's auditor BDO resigns after start of bankruptcy proceedings, company says

Thailand’s newly appointed Prime Minister Paetongtarn Shinawatra vowed to push ahead with a controversial US$14 billion (RM60.67 billion) cash stimulus plan as her cabinet finalised a blueprint to free Southeast Asia’s second-largest economy from a prolonged period of low growth and chronic household debt.

New Thai PM to push ahead with cash stimulus to revive economy

His Majesty Sultan Ibrahim, King of Malaysia, on Saturday expressed his joy over improvements in the country’s economic situation and trade performance.

His Majesty hoped that the government would continue to work to stimulate the country’s economy to create more job opportunities and increase the income and living standards of the people.

King happy with country's economic, trade performance

Seven people were injured, with one hospitalised after a plane operated by Singapore Airlines Ltd’s budget carrier Scoot encountered turbulence during a flight from the city state to Guangzhou in China on Friday, the Straits Times reported on Saturday.

Seven injured on Singapore Airlines’ Scoot flight to China, says Straits Times

Boeing's Starliner spacecraft landed uncrewed in a New Mexico desert late on Friday, capping a three-month test mission hobbled by technical issues that forced the astronauts it had flown to the International Space Station to remain there until next year.

Without astronauts, Boeing's Starliner returns to Earth

The Malaysian Communications and Multimedia Commission (MCMC) has assured that its directive to internet service providers (ISPs) to redirect domain name system (DNS) traffic using third-party DNS servers back to their servers will not affect, disrupt, or block users from accessing legitimate websites.

Kluang Umno Youth chief Syed Hussien Syed Abdullah has been picked as the Barisan Nasional (BN) candidate for the Mahkota state by-election on Sept 28.

Communications Minister Fahmi Fadzil said the actions of social media providers in curbing criminal activities are still weak even though 21 discussions have been held between the ministry and all platforms so far.

Economic Report 2020/2021

‌
‌

Economic Report 2020/2021

‌‌

‌
‌