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%

A federal appeals court on Monday upheld a US$5 million (RM22.3 million) verdict that E Jean Carroll won against Donald Trump when a jury found the US president-elect liable for sexually abusing and later defaming the former magazine columnist.

Trump loses appeal of E Jean Carroll US$5m defamation verdict

EVENING 5: 2024: A data driven year

Fitch Ratings is expecting crude palm oil prices to retreat from the current level of over US$1,100 to US$800 (RM3,576) per tonne in 2025.

Fitch expects CPO prices to weaken in 2025 amid improved yield, higher soybean output

US stock indexes were poised for a lower open on Monday, as sparse trading volumes and the specter of rising Treasury yields cast a cloud over the traditionally strong year-end rally for equities.

At 08.33am ET, Dow E-minis 1YMcv1 were down 363 points, or 0.84%, S&P 500 E-minis EScv1 were down 61.75 points, or 1.02%, and Nasdaq 100 E-minis NQcv1 were down 248.75 points, or 1.15%.

Wall St faces lower open on pressure from elevated Treasury yields

Petroliam Nasional Bhd (Petronas), in response to an online news portal's report that it might be trimming its workforce due to its gas distribution agreement with Petroleum Sarawak Bhd, said it is conducting a comprehensive review of its own productivity.

Petronas says reviewing productivity in response to report of potential downsizing

The flood situation in Kelantan and Terengganu is improving as the number of evacuees continue to drop, while in Johor, one new relief centre has been opened as of 8pm.

Flood situation improves in Terengganu and Kelantan; evacuees on the rise in Johor

Chipmaker Nvidia has completed its acquisition of Israeli AI firm Run:ai, the startup said on Monday, following antitrust scrutiny over the buyout.

Nvidia closes US$700m Run:ai acquisition after regulatory hurdles

The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Monday, reversing earlier gains as traders booked profit amid the recent price rally, said a dealer.

Palm oil dealer David Ng said weaker seasonal export demand also weighed on demand for CPO.

CPO futures close lower due to profit taking from recent rally

EVENING 5: Five things you need to know today

GEORGE TOWN (Dec 30): Loong Air launched a new direct flight connecting Xi'an, China to Penang at the Penang International Airport on Monday.

Tourism Malaysia deputy chairman Datuk Yeoh Soon Hin said the new Xi’an-Penang route was the result of strong collaboration between the Tourism, ...

Loong Air launches direct flight from Xi’an to Penang

Gamuda Bhd is acquiring 389.7 acres of land in the Springhill Industrial Park, Port Dickson for RM424.4 million from a joint venture (JV) between MUI Properties Bhd (MUIPROP) and Chin Teck Plantations Bhd.

Gamuda buys land from MUI Properties-Chin Teck JV for RM424m cash, for data centre project

KUALA LUMPUR (Dec 30): Trading in MUI Properties Bhd (KL:MUIPROP) has been suspended on Monday, following a request for a material announcement.

MUI Properties’ shares suspended for corporate exercise announcement

Petroliam Nasional Bhd (Petronas), in response to an online news portal's report that it might be trimming its workforce due to its gas distribution agreement with Petroleum Sarawak Bhd, said it is conducting a comprehensive review of its own productivity.

The Malaysian automotive sector's total industry volume (TIV) is expected to grow to 805,000 units in 2025 for another record year for vehicle sales, said Kenanga Investment Bank.

Kenanga expects record automotive sales of 805,000 units in 2025

Apex Equity Holdings Bhd (KL:APEX), which is involved in stockbroking, property development and money lending services, said on Monday it is buying a boutique office building in Bangsar South, Kuala Lumpur for RM50 million.

Apex Equity buys office building in Bangsar South for RM50 mil for relocation

A businessman with a Datuk Seri title, his daughter, son-in-law, and two employees, pleaded not guilty in the Ayer Keroh magistrates court to charges of causing hurt and threatening an insurance manager last month.

Mohamad Fazil Shafie, 62, Nur Amalina Mohamad Fazil, 33, and Amran Azmi, 32, and their employees, Azian Ab Rahim, 37, and Muhammad Azrul Syafiq Rosman, 28, are accused of jointly and intentionally injuring Muhammad Nur Hakim Baharudin, 30.

Datuk Seri and four others charged with injuring insurance manager

Samaiden Group Bhd (KL:SAMAIDEN) said on Monday that it has been selected to develop a 99.99-megawatt large-scale solar photovoltaic plant in Pasir Mas, Kelantan.

Samaiden picked for Kelantan solar plant project

KUALA LUMPUR (Dec 30): <a href="https://theedgemalaysia.com/" target="_blank">theedgemalaysia.com</a> highlighted eight stocks with momentum at Bursa Malaysia’s afternoon close on Monday. Two stocks showed positive momentum, while six stocks showed negative momentum.

Stocks with momentum on Dec 30, 2024: Southern Cable, Crescendo, Eversendai, Xin Synergy, Willowglen, GDB, MN Holdings, ECA Integrated

KUALA LUMPUR (Dec 30): Higher electricity bills will harm steel companies’ competitiveness and impair the decarbonisation efforts of an industry grappling with losses over the past three years, a trade group said on Monday.

Steel trade group warns higher electricity tariffs will impair competitiveness, decarbonisation

A Jeju Air Co jet suffered a landing-gear malfunction on Monday before returning safely to Seoul, the airline’s second aircraft to experience the fault in two days.

Another Jeju Air jet has landing-gear issue, returns safely

MELAKA (Dec 30): Malaysia Airports Holdings Bhd’s (MAHB) (KL:AIRPORT) network development programme (NDP) holds the potential to attract airlines to begin operations at the Melaka International Airport (LTAM).

Malaysia Airports’ programme able to attract airlines at Melaka International Airport — exco

KUALA LUMPUR (Dec 30): Prime Minister Datuk Seri Anwar Ibrahim said immediate steps will be taken to stimulate growth, enhance the tourism sector, and ensure the preservation of biodiversity on Langkawi Island, Kedah.

Anwar: Immediate steps to boost Langkawi tourism industry

KUALA LUMPUR (Dec 30): Gadang Holdings Bhd (KL:GADANG) and its joint venture (JV) partners have successfully won a bid to develop a 15-megawatt alternating current (MWac) large-scale solar (LSS) photovoltaic (PV) plant in Tawau, Sabah.

Gadang unit’s JV wins bid to develop 15MWac solar plant in Tawau, Sabah

The new staffer was supposed to help Toronto-Dominion Bank spot money laundering from an outpost in New York.

She instead used her access to bank data to distribute customer details to a criminal network on Telegram, according to prosecutors in Manhattan.

Bank insiders are leaking data on client accounts as scams surge

KUALA LUMPUR (Dec 30): Former AEON BiG managing director Sheikh Farouk Sheikh Mohamed has been appointed as the chief executive of the Malaysian Employers Federation (MEF), effective Jan 1, 2025.

In a statement, MEF president Datuk Syed Hussain described Sheikh Farouk as the "ideal choi...

Former AEON BiG MD Sheikh Farouk appointed MEF chief executive

Shares of Kim Loong Resources Bhd (KL:KMLOONG) may have small upside in the next 12 months, analysts said, even as they raised earnings forecasts for the palm oil producer following a better-than-expected quarter.

Kim Loong shares may have limited upside, analysts stay wary despite better-than-expected results

The German government accused US billionaire Elon Musk on Monday of trying to influence its election due in February with articles supporting the far-right Alternative for Germany (AfD) party, even though it suggested they amounted to "nonsense".

Germany accuses Elon Musk of trying to influence its election

Commercial aviation has suffered its deadliest year since 2018 after the Jeju Air Co disaster in South Korea and last week’s downing of an Azerbaijan Airlines plane.

Two plane crashes lead to deadliest year in skies since 2018

Yinson Production, the offshore business arm of Yinson Holdings Bhd (KL:YINSON), has secured an 18-month extension for the bareboat charter contract of its floating production storage and offloading (FPSO) unit operating in offshore Vietnam.

Yinson unit secures RM161.8m bareboat charter extension for FPSO unit

Below is a summary of how key Bursa Malaysia indices and the ringgit performed on Monday

Economic Report 2020/2021

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Economic Report 2020/2021

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