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%

Police are awaiting further instructions from the Attorney General’s Chambers (AGC) on a probe into Negeri Sembilan Menteri Besar Datuk Ismail Lasim’s claim that he was forced to sign a proclamation seeking to remove Tuanku Muhriz Tuanku Munawir as the state’s ruler.

Police await AGC instructions on probe into Negeri Sembilan MB’s ‘duress’ claim

Wall Street's main indices opened higher on Wednesday after quarterly results from SpaceX and Super Micro Computer improved appetite for artificial intelligence (AI) stocks, while Netflix slipped after its forecast failed to impress investors.

Wall St opens higher as SpaceX, Super Micro results lift AI stocks

President Emmanuel Macron said France will receive liquefied natural gas (LNG) from Qatar during the winter months and will work to lower fuel transport costs from the Persian Gulf as it seeks to curb soaring energy prices.

France to get LNG supplies from Qatar in winter, says Macron 

Government websites in Europe and elsewhere went offline on Wednesday after the disclosure of critical vulnerabilities in a widely used programming language sent website operators scrambling to protect their systems.

Govt websites go dark as vulnerabilities in programming language send shudder across internet

Every year, Malaysia’s federal budget announcement tends to draw the most attention to cash handouts, wage adjustments and personal income tax cuts. Yet beyond these immediate cost-of-living reliefs lie deeper messages on the kind of nation we aspire to build that often go unnoticed. In the recent Budget 2027 announcement, Prime Minister Datuk Seri Anwar Ibrahim invoked several philosophers and thinkers, offering a less conventional lens through which to understand the government’s broader vision.

Opinion: Budget 2027: Values to guide our collective future

Zetrix AI Bhd (KL) managing director Wong Thean Soon's stake in the digital services firm has shrunk further, diminishing the prospect of fixing a breached sukuk condition that he remains the company's largest shareholder.

TS Wong's Zetrix AI stake down to 1.841% ahead of Oct 22 deadline to fix sukuk covenant  

Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) said it will contest a RM57.3 million arbitration claim brought by its subcontractor over works for the Bokor Phase 3 Redevelopment Project in Sarawak.

MHB to contest RM57m arbitration claim over Bokor oilfield project in Sarawak

Former Hungarian central bank governor Gyorgy Matolcsy was detained on Wednesday on suspicion of fraud as as the crackdown on alleged corruption of the previous ruling elite continues.

Former Hungarian central bank governor detained, says report 

The El Niño weather phenomenon gripping the planet could be off the charts, the United Nations warned Wednesday, saying countries should take urgent action to prepare for the worst.

El Niño could be 'literally off the monitoring charts' — UN

Malaysia’s retail prices for unsubsidised RON95 and RON97 petrol will fall by 30 sen per litre, while unsubsidised diesel prices will decline by 10 sen, from Thursday (Oct 22) to Oct 28.

Unsubsidised petrol prices fall 30 sen, diesel down 10 sen for coming week — MOF

KUALA LUMPUR (Oct 21): Tan Sri Tan Kean Soon, the former deputy chairman of an oil-and-gas services firm, has been charged with fraud of over RM10 million.

Tan Kean Soon, former T7 Global deputy chairman, charged with RM10m fraud

Civil servants have been banned from using the Waze navigation app with immediate effect, following a decision by the National Cyber Security Committee (JKSN) at its meeting on Tuesday.

Malaysian civil servants banned from using Waze with immediate effect

The government is open to considering a proposal to establish a royal commission of inquiry (RCI) into Retirement Fund Inc&nbsp;(KWAP) and the Employees Provident Fund (EPF)&nbsp;should the need arise.

Azalina: Govt to consider commission to probe KWAP, EPF if needed

Temasek Holdings Pte Ltd and GIC Pte Ltd denied claims by a former Indonesian trade minister that Singapore’s two biggest state-owned investors helped instigate Indonesia’s recent stock market collapse.

Singapore’s Temasek and GIC deny instigating Indonesian stock rout

The Attorney General’s Chambers (AGC) and Datuk Seri Dr Ahmad Zahid Hamidi have obtained a stay on the Malaysian Bar’s judicial review&nbsp;challenging&nbsp;the discharge not amounting to an acquittal (DNAA) that had been given to Zahid for 47 charges of abuse of power, criminal breach of trust, and corruption related to Yayasan Akalbudi.

AGC, Zahid obtain stay of Malaysian Bar judicial review challenge over DNAA

CIMB Group Holdings Bhd (KL:CIMB) is exploring taking its Indonesian arm private as tough market conditions dim prospects for a potential secondary offering, analysts said.

CIMB weighs taking Indonesian unit private as potential secondary offering loses appeal — analysts

One of the strongest storms of the current season is set to bring heavy rain and roaring winds to parts of East Asia in the next week, with major cities in Taiwan and China bracing for impact within days.

Super Typhoon Champi poised to hit China, Taiwan within days

BENGALURU (Oct 21): Anthropic's net loss widened sharply to US$80.7 billion (RM329.4&nbsp;billion) in the first half of this year, in large part due to a rise in the fair value of bonds convertible into shares of the AI start-up, according to a draft prospectus for a planned initial public offering (IPO) that was reviewed by Reuters.

Anthropic logs first-half net loss of over US$80 bil as AI race weighs

The smog blanketing parts of Southeast Asia is threatening an army of tiny-but-crucial workers in the region’s palm industry — beetles that pollinate the trees and help keep the world supplied with the most-consumed vegetable oil. &nbsp;

Indonesian haze threatens tiny bugs that power palm oil output

Tourism operators are experiencing fewer bookings for this time of year — and even cancellations — as smog disrupts flights, obscures some of the country’s best-known attractions and threatens a key driver of the Southeast Asian economy.

Malaysia set for tourism fallout from Indonesian haze

Taiwan's Fair Trade Commission said on Wednesday it had blocked Grab's purchase of Delivery Hero's Foodpanda delivery business in Taiwan, citing competition concerns.

Taiwan regulator blocks Grab's purchase of Foodpanda delivery business

Westports Holdings Bhd (KL:WPRTS) reported a record-high revenue from tariff increases and higher income from value-added services, boosting its earnings in the third quarter.

Tariff increase, extra services lift Westports revenue to new record, boost earnings

ASML Holding NV and other key providers of chipmaking machines have expedited supplies for Tesla Inc&nbsp;and SpaceX’s Terafab, Elon Musk said, signalling that the billionaire is making fast progress on an ambitious semiconductor project.

Musk says ASML, others expediting chipmaking gear for Terafab

Boeing Co&nbsp;won US regulator approval for its 737 Max 10 jet, capping off a lengthy certification saga for the plane-maker’s family of narrowbody aircraft that was disrupted by two fatal crashes and a series of quality lapses.&nbsp;

Boeing wins US approval for largest variant of 737 Max jet

High capital requirements remain a major hurdle for Malaysian semiconductor design firms despite being granted subsidised access to UK-headquartered ARM Holdings plc's blueprints for chip components. &nbsp;

High capital requirements still hamper Malaysian semiconductor design firms, Johari tells Parliament 

Iskandar Regional Development Authority on Wednesday named career civil servant Datuk Ashari Kasnan as its chief executive officer.

Iskandar Malaysia development authority names Ashari Kasnan as CEO

CIMB Group Holdings Bhd (KL:CIMB) is expected to report softer earnings for the third quarter ended Sept 30, 2026, as higher funding costs and weaker trading income weigh on profitability, although its loan growth remains resilient, according to analysts.

CIMB's 3Q earnings expected to soften on weaker trading income, higher funding costs

DayOne Data Centers Ltd&nbsp;is weighing options for its US initial public offering (IPO), including a potential delay or size cut, as volatility around data centres increases, according to people familiar with the matter.

Singapore's DayOne said to weigh options for US IPO after data centre rout

ACE Market-listed Ramssol Group Bhd (KL:RAMSSOL) sees a business opportunity in allowing employees to draw part of their salaries before payday in exchange for a small fee multiplied across a sizeable workforce.

The human resources (HR) management solutions company charges RM5 each time...

Pay Day Now to offer Ramssol a pathway to recurring income

MALAYSIAN real estate investment trusts (M-REITs) have long been prized for their income-generating qualities. Listed REITs that distribute at least 90% of their total income qualify for a full tax exemption at the trust level, helping make regular distributions a central part of the asset class’...

Economic Report 2020/2021

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Economic Report 2020/2021

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