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

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

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

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

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 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

Gross funds raised in the Malaysian capital market declined 14.4% to RM143.7 billion during the first seven months of 2020 from a year earlier due to lower fundraising activity in the private sector although public sector fundraising increased, the Ministry of Finance (MoF) said in its Economic Outlook 2021 report.

Gross funds raised in Malaysian capital market declined in first seven months of 2020

As at end-September, the ringgit recorded a depreciation of 1.6% against the US dollar, said the Ministry of Finance (MoF) in its Economic Outlook 2021 report.

The MoF said going forward, the expected recovery in the global and domestic economy will provide some support for the ringgit.

Ringgit depreciates 1.6% against US dollar as at September

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 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%

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

Domestic demand in Malaysia is expected to post a recovery in 2021 expanding by 6.9% after a 3% decline in 2020, amid expectation that the key growth engines, for instance consumer spending, private investment and public investment would be functioning.

In the Economic Report 2020/2021, the Ministry of Finance (MoF) anticipates private consumption to grow by 7.1% in 2021, versus a 0.7% decline in 2020. The growth is primarily driven by higher disposable income stemming from buoyant economic activities, accommodative financial stance, an extension of tax relief on childcare and healthcare and favourable stock market conditions

Domestic demand to grow by 6.9% in 2021, to recover from 3% decline in 2020

Malaysia's inflation, as measured by the Consumer Price Index, is projected to normalise at 2.5% in 2021, after the domestic economy slipped into deflation as a result of the Covid-19 outbreak in 2020, according to the Ministry of Finance's Economic Report 2020/21.

Inflation seen stabilising at 2.5% next year after 2020's deflation

Asia Digital Engineering (ADE), a wholly-owned subsidiary of Capital A Bhd specialising in aircraft maintenance, repair, and overhaul (MRO), has successfully completed its 100th C-Check in just two and a half years, setting a record since its establishment in September 2020.

Capital A unit ADE achieves milestone with 100th C-Check completion

China’s imports unexpectedly shrank in November from a Covid-hit period one year ago, dashing hopes domestic demand would rebound from a low base to spur growth in the nation’s slowing economy.

China’s surprise import contraction sparks worries over demand

Prime Minister Datuk Seri Anwar Ibrahim on Thursday said that there should be no more excuses for delays in the development of projects for the people of Sabah, especially pertaining to water and electricity supply, as well as the Pan Borneo Highway.

No more excuses for project delays in Sabah, says Anwar

With Prime Minister Datuk Seri Anwar Ibrahim’s unity government hitting the one-year mark, 2024 will be the time for stakeholders to closely monitor Putrajaya’s execution of promised reforms, according to Socio-Economic Research Centre executive director Lee Heng Guie.

2024 time for unity government to execute reforms; 'moderate probability' of US recession, says economist

The structural transformation of Axiata Group Bhd’s Indonesian subsidiaries XL Axiata and Link Net to become ServeCo and FibreCo leaders may require substantial funding, which Axiata may seek from potential investors in future to fund the growth plans, said Kenanga Research.

Axiata may seek potential investors for Link Net fibre expansion, says Kenanga Research

The recent worldwide surge of inflation is forcing political change, reminding us how efficiently this old economic problem can topple governments. In democracies, election outcomes often hinge on price developments. But the effect on autocracies is no less pronounced because inflation erodes the implicit social compact on which they base their authority.

my Say: Inflation destroys rotten governments

‘Education is the most powerful weapon we can use to change the world.’ — Nelson Mendela, 1990

Addressing religious extremism (including fundamentalism) in Malaysia necessitates a comprehensive approach, with education at its forefront. The recent ou...

my Say:Education reforms are more important than economic reforms: Countering religious extremism in Malaysia

The trajectory of global finance in 2024 hinges upon one central actor — the US Federal Reserve. When will the Fed start easing?

Condivergence: The outlook for 2024

Unidentified governments are surveilling smartphone users via their apps' push notifications, a US senator warned on Wednesday.

US senator says governments spying on Apple, Google users through push notifications

Former attorney general (AG) Tan Sri Mohamed Apandi Ali has filed five questions of law in his motion for leave to appeal against the dismissal of his defamation suit against Tan Sri Lim Kit Siang over the DAP stalwart's Facebook post on the 1Malaysia Development Bhd (1MDB) fiasco.

Ex-AG poses five questions of law while seeking to reinstate RM10m defamation suit against Kit Siang

Main Market debutant CPE Technology Bhd opened at 90 sen on Thursday, a 17 sen or 15.89% discount over its initial public offering (IPO) price of RM1.07, with an opening volume of 6.31 million shares.&nbsp;

CPE Technology off to lacklustre Main Market debut, drops 16%

Hong Leong Investment Bank (HLIB) Research has downgraded the property sector to “neutral”, and said it had turned less bullish on the sector, as it expects billings to normalise, while sales and launches should see a more moderate growth ahead.

HLIB downgrades property sector to 'neutral'; top picks Sunway, OSK, IOI Properties and SimeProp

A gauge of global equities rose on Wednesday following consecutive declines to start the week, while longer-dated US&nbsp;Treasury yields fell after economic data kept afloat expectations the Federal Reserve (Fed) has leeway to cut rates next year.

Stocks edge up, 10-year Treasury yield falls as rate cut timing weighed

US&nbsp;stocks ended down on Wednesday, pulled lower by megacaps and energy shares as signs of a cooling jobs market reinforced expectations that the Federal Reserve (Fed) could start cutting interest rates early next year.

Wall St ends lower as investors weigh fresh employment data

RHB Retail Research said Wellcall Holdings Bhd is set to propel higher, surpassing the RM1.69 breakout level, on a strong trading volume, printing a new high.

Wellcall set to propel higher, says RHB Retail Research

Advanced Micro Devices Inc (AMD), taking aim at a burgeoning market dominated by Nvidia Corp, unveiled new so-called accelerator chips that it said will be able to run artificial intelligence (AI) software faster than rival products.

AMD CEO debuts Nvidia chip rival, gives eye-popping forecast

Former attorney general (AG) Tan Sri Mohamed Apandi Ali has filed five questions of law in his motion for leave to appeal against the dismissal of his defamation suit against Tan Sri Lim Kit Siang over the DAP stalwart's Facebook post on the 1Malaysia Development Bhd (1MDB) fiasco.

The Software Alliance (BSA) has urged the Malaysian government to act on software copyright protections, following the discovery of illegitimate software use in the design and engineering of a railway project in Malaysia.

BSA urges Putrajaya to act after illegitimate software used in design and engineering of railway project

Bursa Malaysia slid further on Thursday, as Wall Street declined overnight.

At 9.09am, the FBM KLCI had given up 0.51 point&nbsp;to&nbsp;1,445.31, from Wednesday's close at 1,445.82.

Bursa makes soft opening following Wall St retreat

RHB Retail Research said MCE Holdings Bhd is set for a strong uptrend, as it broke above the RM1.97 recent high, accompanied by high trading volume.

MCE Holdings set for strong uptrend, says RHB Retail Research

President Joe Biden moved to forgive US$4.8 billion (RM22.42 billion) in student loans Wednesday, providing relief to more than 80,000 borrowers including public sector employees and Americans who have been repaying their federal debts for decades.

Biden moves to forgive nearly US$5b in student loans

President Joe Biden pleaded with Republicans on Wednesday for a fresh infusion of military aid for Ukraine, warning that a victory for Russia over Ukraine would leave Moscow in position to attack Nato allies and could draw US&nbsp;troops into a war.

Do not let Putin win, Biden pleads with Republicans on Ukraine

The ringgit traded lower against the US dollar at the opening on Thursday, as the&nbsp;US dollar index strengthened by&nbsp;0.1% to 104.153 points.

Ringgit opens easier as US dollar index strengthens

CGS-CIMB Securities has maintained its "add"&nbsp;rating and target price of 85 sen for wellness company DXN Holdings Bhd, which produces health products and dietary supplements and others. &nbsp;&nbsp;

CGS-CIMB remains bullish on DXN amid China expansion plans

Asian shares slipped with Wall Street on Thursday, while a sharp fall in oil prices to a five-month low promised to further reduce inflationary pressures, and helped boost the&nbsp;global&nbsp;bond market.

Asian shares slip with Wall Street; oil helps boost bonds

Hong Kong billionaire Henry Cheng’s family increased its stake in property developer New World Development Co&nbsp;this week, according to a person familiar with the matter, as the company’s shares reached a 20-year low.

Hong Kong billionaire Cheng family said to have boosted New World stake

Prime Minister&nbsp;Datuk Seri Anwar Ibrahim on Thursday said that there should be no more excuses for delays in the development of projects&nbsp;for the people of Sabah, especially pertaining to water and electricity supply, as well as the&nbsp;Pan Borneo Highway.

With Prime Minister Datuk Seri Anwar Ibrahim’s unity government hitting the one-year mark, 2024 will be the time for stakeholders to closely monitor Putrajaya’s execution of promised reforms, according to Socio-Economic Research Centre executive director Lee Heng Guie.&nbsp;

The structural transformation of Axiata Group Bhd’s Indonesian subsidiaries&nbsp;XL&nbsp;Axiata&nbsp;and Link Net to become&nbsp;ServeCo&nbsp;and&nbsp;FibreCo&nbsp;leaders may&nbsp;require&nbsp;substantial&nbsp;funding, which Axiata may&nbsp;seek&nbsp;from potential investors in future to fund the growth plans, said Kenanga Research.&nbsp;

Elon Musk’s SpaceX has initiated discussions about selling insider shares at a price that values the closely held company at US$175 billion (RM817.78 billion) or more, according to people familiar with the matter.

Economic Report 2020/2021

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