The government has pledged to continue its financial commitment to national strategic projects in transport such as the light rail transit and the mass rapid transit, according to the revised 2023 Economic and Fiscal Outlook report.

Putrajaya pledges continued financial support in strategic transport projects in 2023

The Malaysian economy is expected to grow by 4.5% to RM1.57 trillion this year, supported by stable domestic demand, mainly from household spending, in line with the recovery in the labour market, according to the government’s revised 2023 Economic and Fiscal Outlook report.

Malaysia’s 2023 GDP growth seen moderating to 4.5% amid softening global economy

The government said it is exploring options to efficiently manage future pension obligations, including introducing defined contribution schemes.

Given that Malaysia is now an ageing nation by the United Nations definition, pension obligations are expected to continue to increase, according to the Finance Ministry's revised 2023 Economic and Fiscal Outlook report.

Govt exploring defined contribution scheme to manage future pension obligations

The government has estimated that operating expenditure (OE) in 2023 will decline by 1.2% to RM289.1 billion from RM292.7 billion in 2022, primarily due to lower subsidy allocations as commodity prices are expected to moderate while the targeted subsidy mechanism is gradually implemented.

The RM289.1 billion estimated OE is 15.3% of the gross domestic product, according to the Finance Ministry’s revised 2023 Economic & Fiscal Outlook report.

Govt operating expenditure falls 1.2% to RM289 bil in 2023 on lower subsidy allocations

Petroliam Nasional Bhd (Petronas) is expected to pay about RM40 billion in dividends to the government in 2023, slightly higher than the previous Budget 2023's headline RM35 billion.

Petronas to contribute RM40b dividend payout to govt in 2023

KUALA LUMPUR (Feb 24): Malaysia’s inflation rate is expected to rise to between 2.8% and 3.8% in 2023 amid slower economic prospects and stable commodity prices, according to the Ministry of Finance (MOF)’s revised Economic and Fiscal Outlook 2023 report.

Malaysia’s 2023 inflation seen at 2.8%-3.8%

KUALA LUMPUR (Feb 24): The Federal Government’s debt is estimated to reach around 62% of gross domestic products (GDP) by end-2023, up from 60.4% or RM1.08 trillion last year, as Putrajaya continues to borrow for the financing of development programmes and projects under the 12th Malaysia Plan, and also as the redemption of 1Malaysia Development Bhd (1MDB) bonds mature in March.

Fed govt debt likely to rise to 62% of GDP by end-2023 on higher borrowings to fund 12MP, 1MDB bond redemption

The government expects to be able to generate higher revenue of RM291.5 billion this year, mainly supported by a further growth of 6.9% in direct tax collection, thanks to improved corporate earnings prospects and “continuous efforts in enhancing auditing and tax compliance”.

With a budgeted expenditure of RM386.14 billion, the government is expecting a fiscal deficit of RM93.94 billion, equivalent to 5% of gross domestic product (GDP) in 2023, down from RM99.48 billion (5.6%) in 2022 and RM98.74 billion (6.4%) in 2021, according to the revised 2023 Economic and Fiscal Outlook report.

Govt sees higher direct tax collection supporting 2023 revenue, expects 5% fiscal deficit

The government has budgeted a slightly smaller amount for operating expenditure (OE) in 2023 due mainly to the expectation of less money required for subsidies.

Some RM272.34 billion has been allocated for 2023, which is 4.3% lower compared with RM285.7 billion in 2022 while it was RM231.5 billion in 2021. The 2023 OE is 15% of GDP.

Govt operating expenditure falls 4.3% despite 'subsidies & social aid' allocation shrinking by 28.7%

The labour market is anticipated to improve in 2023, with the unemployment rate forecasted to reduce to 3.5%-3.7%, according to the Economic Report released by the Ministry of Finance.

Unemployment in 2023 seen lower at 3.5%-3.7%

KUALA LUMPUR (Oct 7): The Malaysian government will still spend more than it earns in 2023 due partly to higher emolument for civil servants and debt service charges, expecting a budget deficit of RM99.07 billion, or 5.5% to gross development product (GDP).

Budget deficit in 2023 only about RM400 mil less than record high in 2022

Malaysia’s inflation rate is forecast to range between 2.8% and 3.3% in 2023, compared with 3.3% estimated for 2022 and 2.5% in 2021, according to the Ministry of Finance in its 2023 Economic Outlook report.

Inflation seen at 3.3% in 2022, 2.8%-3.3% in 2023

KUALA LUMPUR (Oct 7): The government has reduced the allocation of subsidy and social assistance to RM42 billion in Budget 2023 compared with RM58.9 billion in 2022.

However, the Ministry of Finance has revealed over the months that the country’s susbidy bill has ballooned to RM77 billion in 2022.

Lower subsidy and social aids at RM42 bil in 2023 amid expectation of lower oil prices

The Ministry of Finance has said investors are expected to remain cautious following the US Federal Reserve's indication of further interest rate hikes to curb high inflation.

MOF: Fed's hawkish stance may undermine Malaysian equities

Construction firm Taghill Holdings Bhd (KL:TAGHILL) signed a joint-venture agreement on Friday to develop a residential project on a Malay reservation land in Kelantan, with an estimated gross development value (GDV) of RM191.7 million.

Taghill enters joint venture to develop Kelantan land with estimated RM192 mil GDV

Indonesia will establish a National Peatland and Mangrove Management Agency (BPGMN) to strengthen efforts to prevent recurring forest and land fires, particularly in peatland areas.

Indonesia to establish new agency to curb wildfires 

Roofing and building material products manufacturer and supplier Astino Bhd's (KL:ASTINO) net profit rose 17.8% in the fourth quarter, helped by a higher-margin export sales mix, despite lower revenue.

Astino 4Q profit rises 17.8% on stronger export sales 

Touch ’n Go Group has called for stronger collaboration among mobility, financial services, technology and regulatory sectors to strengthen the resilience of services that Malaysians rely on to travel, make payments and access digital financial services.

TNG Group calls for stronger cross-sector collaboration to safeguard mobility, payment resilience

Microsoft Corp is merging the consumer and workplace versions of its Copilot artificial intelligence (AI) assistant into one product aimed at corporate customers, ceding the crowded market for personal chatbots to OpenAI, Alphabet Inc’s Google and, now, Meta Platforms Inc.

Microsoft abandons personal AI chatbot race with Copilot reboot

The Election Commission (EC) on Friday said there is currently no proposal to increase the number of parliamentary constituencies in Sarawak, contrary to a local newspaper report linking the matter to discussions on the Malaysia Agreement 1963.

EC: No proposal to increase Sarawak parliamentary seats

New orders for key US-manufactured capital goods increased more than expected in August and data for the prior month was revised sharply higher, pointing to another quarter of robust growth in business spending on equipment amid an artificial intelligence infrastructure buildout.

US core capital goods orders surge in August

Saudi, Turkish and Pakistani military chiefs are to discuss help for Saudi Arabia as it faces attacks by Yemen's Houthis, while Iraq further curtailed Iranian flights on Friday in line with US pressure, and an Iranian official threatened retaliation.

Allies unite behind Saudi Arabia as more Iranian flights curtailed

Engineering services and renewable energy provider Kawan Renergy Bhd (KL:KENERGY) posted a 72.8% decline in third-quarter net profit due partly to cost overruns at its power plant project in Sabah.

Kawan Renergy 3Q net profit falls 73% amid cost overruns at power plant project

Global stocks headed for their best weekly performance since early August on Friday, as AI euphoria and the prospect of an improvement in Middle East energy supplies won out over surging bond yields for now.

Global stocks weather bond volatility, oil eases slightly

KUALA LUMPUR (Sept 25): Former Dewan Negara speaker Tan Sri Dr Mohd Rais Yatim was charged with sedition on Friday for his role in the Negeri Sembilan constitutional crisis.

Rais Yatim charged with sedition over ongoing Negeri Sembilan crisis

Imprisoned former prime minister Datuk Seri Najib Razak does not have the RM50 million to secure his house arrest, said his lawyer Tan Sri Muhammad Shafee Abdullah.

Najib has no money to pay RM50 mil fine, says lawyer

Vantris Energy Bhd (KL:VANTNRG) said its unit has secured two offshore transportation and installation work orders with a combined value of about RM1.8 billion.

Vantris Energy unit secures RM1.8b offshore work orders

Malaysian plantation companies with sizeable operations in Indonesia face greater regulatory uncertainty following the country’s new agrarian reform law, with SD Guthrie Bhd (KL:SDG), Genting Plantations Bhd (KL:GENP) and Kuala Lumpur Kepong Bhd (KL:KLK) among those with the largest exposure, according to CIMB Securities.

Indonesia land reform raises uncertainty for Malaysian planters with exposure there — CIMB Securities

The High Court has set Oct 14 to hear former prime minister Datuk Seri Najib Razak's bid to stay the conviction and sentence in the 1Malaysia Development Bhd (1MDB) criminal case.

Court sets Oct 14 to hear Najib's bid to pause 15-year jail term, fine in 1MDB case pending appeal

KUALA LUMPUR (Sept 25): Khazanah Nasional Bhd’s venture capital fund-of-funds, Jelawang Capital Sdn Bhd, has appointed Howard Soh as CEO, effective Oct 1.

Soh’s appointment comes about 15 months after former CEO Bryan Lim left Jelawang and its parent, Khazanah, at the end of June 2025, ...

Jelawang Capital appoints new CEO Howard Soh after long vacancy

Northern Solar Holdings Bhd (KL:NORTHERN) extended its rally to a new record on Friday after an analyst flagged earnings jump ahead for the renewable energy company.

Northern Solar hits new all-time high as winning streak continues

Lembaga Tabung Haji's former chief operating officer Datuk Adi Azuan Abdul Ghani has claimed trial to another charge, this time for allegedly accepting RM8,882.77 in renovation costs for a house in 2017.

Tabung Haji ex-COO in court again, charged with accepting over RM8k for house renovations

The Malaysian Anti-Corruption Commission (MACC) will issue notices to former human resources minister Datuk Seri M Saravanan, his wife and their three children to declare their assets within a month.

Ex-HR minister Saravanan, family ordered to declare assets within a month

KUALA LUMPUR (Sept 25): Teck Guan Perdana Bhd (KL:TECGUAN) saw its net profit more than triple in the second quarter, driven by higher operating margins in its palm oil products segment.

Teck Guan Perdana’s 2Q net profit more than triples on stronger palm oil margins

KUALA LUMPUR (Sept 25): Despite the announcement of imprisoned former prime minister Datuk Seri Najib Razak's conditional pardon last week, the 73-year-old has yet to receive the official pardon letter from the King.

Najib has yet to receive official pardon letter from the King, lawyer says

theedgemalaysia.com highlighted two stocks with positive momentum and six stocks with negative momentum at Bursa Malaysia's afternoon close on Friday.

Stocks with momentum on Sept 25, 2026: Wegmans, Northern Solar, Samaiden, Southern Cable, Verdant Solar, Cypark, Eita Resources, Iconic Worldwide

Permodalan Nasional Bhd (PNB) is targeting RM15 billion in green and transition asset investments and RM500 million in impactful social investments by 2030 under its newly unveiled Sustainability Framework 2026 (SF 2026).

PNB unveils 2026 sustainability framework, targeting RM15b investment in green and transition assets

UUE Holdings Bhd (KL:UUE) has limited near-term upside following a rally in its share price, RHB Investment Bank Bhd (RHB IB) said as it downgraded the stock.

UUE has limited near-term upside after share rally, RHB IB says in downgrade

Sustained&nbsp;electrical and electronics (E&amp;E) sector interest has put ViTrox Corp Bhd (KL:VITROX) in an upcycle that BIMB Securities Research says is more sustainable than its Covid-era boom, leaving room to grow — even after the stock soared 147% year to date.

ViTrox's AI-driven upcycle more durable than Covid boom, still has more room to rally — BIMB

Sarawak Plantation Bhd (KL:SWKPLNT) is a standout dividend play, with maturing estates driving above-industry production growth and its Sarawak-only operations shielding it from Indonesian regulatory risks, according to BIMB Securities.

Sarawak Plantation stands out as dividend play with maturing estates, Sarawak-only ops — BIMB

Two individuals being investigated over alleged misappropriation involving the Kuala Lumpur Vertical City (KLVC) project linked to Felda will be charged next week, Malaysian Anti-Corruption Commission (MACC) chief commissioner Datuk Seri Abd Halim Aman said.

Two former top Felda officials to face charges over KLVC case — MACC

A witness told the Sessions Court on Friday that she had seen the contents of an email including operational and financial performance reports for the first quarter of 2024 sent by former PETRONAS manager Mohd Khairul Akmal to two senior officials of Petroleum Sarawak Bhd (Petros).

Ex-PETRONAS manager leaked confidential information, spoke of wish to join Petros in email, court told

BENGALURU (Sept 24): Anthropic is asking shareholders to approve a new corporate structure that would award CEO Dario Amodei and his six co-founders a combined 50.1% of voting power, The Information reported on Thursday, citing people familiar with the planning.

Anthropic seeks 50.1% voting control for co-founders ahead of IPO, The Information reports

The Ministry of Natural Resources and Environmental Sustainability (NRES) is examining mechanisms to draft specific legislation addressing the issue of transboundary haze, including considering the approach implemented by Singapore.

Economic Report 2022/2023

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Economic Report 2022/2023

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