KUALA LUMPUR (Oct 29): Industries are to shift towards high technologies and high-skilled labour to reduce dependency on foreign workers, the Ministry of Finance (MoF) said.

“As skills and expertise are needed for technology adoption and application, the affected sectors need to invest in upskilling and reskilling initiatives to increase their workers’ productivity and sectors’ performance,” the ministry said in its Economic Report 2021/2022

MOF: Industries to shift towards high tech, and high-skilled labour to reduce foreign labour dependency

KUALA LUMPUR (Oct 29): Malaysia’s capital markets remained vibrant, with gross funds raised increasing by 13.4% to RM163 billion as at the end of July 2021 from a year ago, according to the Economic Outlook 2022 Report published by the Ministry of Finance (MoF) on Friday.

Fundraising activities in the capital markets saw an improvement of 43.1% to RM65.6 billion by the private sector, while the public sector regressed marginally by 0.5% to RM97.4 billion according to MoF.

Malaysian capital markets remain vibrant, gross funds raised increased 16.3% to RM163b as at July 2021

Malaysia's current account balance is projected to record a surplus of RM55.6 billion or 3.5% of the gross national income (GNI) in 2022, according to the Ministry of Finance, down from the RM56.7 billion or 3.8% of the GNI recorded in 2021.

MoF: Robust trade to continue in 2022, current account balance to record RM55.6b surplus, gross exports to increase by 1.5%

Malaysia’s 2021 development expenditure (DE) has been revised lower to RM62 billion from the original budget of RM69 billion.

The 2021/22 Economic Report highlighted that the downward revision is also in line with the reassessment and deferment of several projects.

2021 development expenditure revised to RM62 bil from RM69 bil

The federal government's revenue for 2021 is estimated to be lower at RM221 billion or 14.6% of gross domestic product in 2021, a 6.7% shortfall from the budget estimates earlier.

6.7% shortfall in revenue to RM221 billion estimated for 2021 budget

Federal government's revenue collection in 2022 is estimated to come in at RM234 billion, or 14.3% of gross domestic product, higher than the revised estimate of RM221 billion for 2021.

Federal govt's 2022 revenue collection estimated to be RM234 billion, 14.3% of GDP

The Medium-Term Fiscal Framework (MTFF) for 2022 to 2024 projects the overall fiscal deficit to average at 5% of gross domestic product (GDP), representing a more gradual than initially projected fiscal consolidation trajectory.

Medium-term fiscal framework projects overall fiscal deficit to average at 5% of GDP for 2022 to 2024

A total of RM75.6 billion has been earmarked for development expenditure (DE) in 2022, higher than the RM62 billion revised allocation for 2021 as the country moves into the second year of the 12th Malaysia Plan.

Higher development expenditure of RM75.6b in 2022 vs RM62b in 2021

Budget 2022 will focus on driving economic recovery, rebuilding national resilience and catalysing reforms across the private and public sectors.

The Ministry of Finance (MoF) said in its 2022 Economic Outlook Report that the worst-hit sectors such as tourism and its related industries will be prioritised, while businesses will be encouraged to enhance their competitive edge and venture into new growth areas to build resilience and withstand future adversities.

Budget 2022 to focus on driving economic recovery, rebuilding resilience, catalysing reforms

The government is expecting its consolidated general revenue to decline by 3.3% to RM282.9 billion in 2021, mainly due to lower revenue from the federal government and federal statutory bodies.

Govt expects 3.3% drop in consolidated general revenue for 2021

Domestic demand in Malaysia is expected to expand by 6.6% in 2022 and return to pre-pandemic levels after a 3.1% rebound in 2021.

The Ministry of Finance (MoF) expects pent-up demand to spur economic growth amid expectations of a rebound in private and public consumption and investments.

Domestic demand expected to expand 6.6% in 2022, driven by pent-up private consumption and higher public spending

The government is currently considering options to reduce the reliance on direct taxes and widen the revenue base by shifting to consumption-based tax under the Medium-Term Revenue Strategy (MTRS) framework.

Government to consider consumption-based tax in order to reduce reliance on direct taxes

The Ministry of Finance (MoF) said the Malaysian federal government’s total expenditure is budgeted to be higher at RM332.1 billion in 2022, attributed to higher operating expenditure (OE) at RM233.5 billion and development expenditure (DE) at RM75.6 billion.

MoF: Higher operating, development expenditure in 2022 to revitalise economy

Malaysia's inflation, measured by the consumer price index (CPI), is expected to moderate from current levels to 2.1% next year, following better economic prospects and stable crude oil prices.

Malaysia's inflation set to moderate to 2.1% in 2022 on better economic prospects, stable oil prices

The ringgit opened lower against the US dollar on Thursday, as the greenback climbed, after data showed that the US economy grew faster in the third quarter, amid rising concerns of an early US interest rate cut, said an analyst.

Ringgit opens lower against US dollar in early trade

Bursa Malaysia opened lower on Thursday, extending Wednesday's selling activities in most indices, following a mixed performance on Wall Street overnight, a dealer said.

Bursa opens lower following mixed performance on Wall Street

Shares in Pharmaniaga Bhd fell in early trade on Thursday, after the pharmaceutical group proposed a regularisation plan that consists of a capital reduction exercise, renounceable rights issue of news shares plus private placement, to raise up to RM654.61 million to pare down debts.

Pharmaniaga shares slip on 3Q net loss, capital reduction plan

The Kemaman by-election is crucial to ensure the continued strength of the unity government, and its ability to carry out various efforts to safeguard the welfare of the people, said Prime Minister Datuk Seri Anwar Ibrahim.

Kemaman by-election on Saturday crucial to ensure unity govt's strength, says Anwar

The Indian economy is likely to continue its strong growth in the quarter to end of September, helped by a solid urban consumption and government spending, outpacing a slowing global economy squeezed by elevated interest rates and higher energy prices.

Indian economy expected to sustain strong growth amid global gloom

Analysts lowered their target prices (TPs) for Axiata Group Bhd, after the telecommunications company’s net loss widened to RM797.41 million for the third quarter ended Sept 30, 2023 (3QFY2023), from RM52.4 million a year ago, mainly due to asset impairment and lower share of results from subsidiary CelcomDigi Bhd.

Analysts lower target prices for Axiata on wider 3Q net loss, frontier market risks

RHB Research says Farm Fresh is out of the woods

MORNING CALL: 30/11/23

As a rush of Wall Street strategists call for all-time highs in US stocks in the year ahead, JPMorgan Chase & Co stands apart, releasing the gloomiest forecast so far among its peers.

JPMorgan’s S&P 500 outlook for 2024 is grimmest on Wall Street

Warren Buffett’s Berkshire Hathaway Inc said the billionaire former owner of Pilot Travel Centers sought to influence Pilot executives’ business decisions in order to juice the company’s quarterly earnings and pump up the value of his remaining stake in the truck stop chain.

Buffett's Berkshire says billionaire Haslam promised illicit payments to juice Pilot’s profit

Alphabet Inc’s Google struck a deal with Canadian Prime Minister Justin Trudeau’s government over a contentious law requiring digital platforms to pay for news.

Google strikes deal with Canada to pay for online news

Here is a brief recap of some corporate announcements that made news on Wednesday: Axiata Group Bhd, Cahya Mata Sarawak Bhd, Berjaya Corp Bhd, Mega First Corp Bhd, QL Resources Bhd, Sarawak Oil Palms Bhd, PPB Group Bhd, PJBumi Bhd, Apex Healthcare Bhd, Boustead Heavy Industries Corporation Bhd, FGV Holdings Bhd, Supermax Bhd, Genetec Technology Bhd, Icon Offshore Bhd, Titijaya Land Bhd, Public Bank Bhd, KSL Holdings Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, Pharmaniaga Bhd.

Axiata, CMSB, Berjaya Corp, Mega First, QL Resources, Sarawak Oil Palms, PPB, PJBumi, Apex Healthcare, Boustead Heavy, FGV, Supermax, Genetec, Icon Offshore, Titijaya, Public Bank, KSL, MHB, Pharmaniaga

Supermax Corp Bhd logged a net loss of RM2.05 million in the first quarter ended Sept 30, 2023 (1QFY2024), marking the group's fourth straight loss-making quarter, as revenue shrunk amid weaker demand and persistent lower selling prices.&nbsp;

Supermax remains in the red, but narrows net loss in 1QFY2024 

Pharmaniaga Bhd, which is making a cash call plus private placement to raise RM654.6 million in fresh equity, announced a net loss of RM49.34 million or 3.67 sen per share for the third quarter ended Sept 30, 2023 (3QFY2023), more than double the RM13.99 million net loss, or 1.07 sen per share, it logged a year earlier.

After vaccines impairment, Pharmaniaga makes RM65.2m provision for ‘stock obsolescence’

E-government service provider MyEG Services Bhd (MyEG) said it has received approval from the Road Transport Department (JPJ) to proceed with the pilot phase of the MyEG Drive Testing System (MYDTS) involving actual test candidates.

MyEG gets JPJ nod to start driving test system on actual candidates

UEM Sunrise Bhd said its former Canadian unit has been sued for defects in one of its buildings in the mixed residential and commercial use complex located in the province of British Columbia, known as Quintet Tower D.

UEM Sunrise's Canadian unit sued for defects in building

KUALA LUMPUR (Nov 29): Rapid KL has denied a viral post that there was an explosion or fire involving a Mass Rail Transit (MRT) train along the Kajang route this afternoon.

Rapid KL in a statement on Wednesday informed that the incident only involved the sound of a spark from train numb...

Rapid KL denies explosion involving MRT train

Oil and gas (O&amp;G) services provider Velesto Energy Bhd's net profit for the third quarter ended Sept 30, 2023 (3QFY2023) dropped 91.9% to RM1.22 million from RM14.97 million in the corresponding quarter a year ago, despite higher revenue, as it incurred higher operating and finance costs.

Velesto Energy's 3Q profit drops 91%, dragged by higher costs

Titijaya Land Bhd reported an accident occurred on Tuesday night (Nov 28) at its purpose-built logistics facility construction site in Barat Daya, Penang, resulting in the death of a worker.

Titijaya Land confirms fatal accident at construction site in Penang

Malaysia Building Society Bhd’s (MBSB) net profit dropped 44.3% to RM32.84 million or 0.46 sen for the third quarter ended Sept 30, 2023 (3QFY2023), from RM58.96 million or 0.82 sen a year earlier.

MBSB's 3Q net profit down 44% on higher opex, impairment

Oriental Holdings Bhd's net profit jumped 190.59% to RM297.42 million for the third quarter ended Sept 30, 2023 (3QFY2023), from RM102.35 million a year earlier, thanks to a gain from a bargain purchase on step acquisition of RM102.4 million as well as a gain on disposal of its associate of RM116.4 million.

Oriental Holdings 3Q net profit jumps on gain on disposal of associate

Analysts lowered their target prices (TPs) for Axiata Group Bhd, after the telecommunications company’s net loss widened to RM797.41 million for the third quarter ended Sept 30, 2023 (3QFY2023), from RM52.4 million a year ago, mainly due to asset impairment and lower share of results from subsidiary CelcomDigi Bhd.

The US economy grew at an even faster pace in the third quarter than originally estimated, reflecting upward revisions to business investment and government spending.

US economy grew 5.2% in 3Q, more than first estimated 

MSCI's global equities index crept higher on Wednesday, while Treasury yields fell, as third-quarter data provided encouraging signs for the economy even as US&nbsp;Federal Reserve (Fed) officials provided mixed messages on monetary policy.

Equities gain while Treasury yields fall on data, talk of Fed rate cuts

Warren Buffett’s Berkshire Hathaway Inc&nbsp;said the billionaire former owner of Pilot Travel Centers sought to influence Pilot executives’ business decisions in order to juice the company’s quarterly earnings and pump up the value of his remaining stake in the truck stop chain.

As a rush of Wall Street strategists call for all-time highs in US stocks in the year ahead, JPMorgan Chase &amp; Co&nbsp;stands apart, releasing the gloomiest forecast so far among its peers.

US&nbsp;stocks edged lower on Wednesday as a robust upward gross domestic product (GDP) revision eased recession fears, while Federal Reserve (Fed) officials' remarks raised questions about the duration of the central bank's restrictive policy.

S&P 500 ends lower on mixed Fed messages, PCE on deck

Genetec Technology Bhd, which completed its transition to Main Market of Bursa Malaysia last month, saw its net profit fall 26.35% to RM18.45 million for the second quarter ended Sept 30, 2023 (2QFY2024) from RM25.06 million in the corresponding quarter a year ago, due to loss on foreign exchange and lower margin in product mix, despite higher revenue.

Genetec 2Q profit falls 26% amid forex loss, lower margin

Icon Offshore Bhd said third quarter net profit fell 18.83% to RM6.21 million, from RM7.65 million a year earlier, mainly due to the loss from its drilling segment.

Icon Offshore's 3Q profit falls 19% as drilling segment posts loss

Wall Street's three main indexes rose on Wednesday as US Treasury yields slipped to multi-month lows on growing rate cut optimism, while latest data on economic growth fueled hopes of a soft landing.

Wall Street gains on rate cut prospects, soft landing hopes

Shares in Pharmaniaga Bhd fell in early trade on Thursday, after the pharmaceutical group proposed a regularisation plan that consists of a capital reduction exercise, renounceable rights issue of news shares plus private placement, to raise up to RM654.61 million to pare down debts.

Economic Report 2021/2022

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