The federal government has spent RM223.5 billion on subsidies between 2012 and 2022, equivalent to 8.9% of its total operating expenditure, according to the Economic Report 2023.

Malaysia govt spent RM223.5 bil on subsidies between 2012 and 2022

KUALA LUMPUR (Oct 13): Private investment is likely to grow by 5.4% year on year (y-o-y) in 2024 versus 4.3% estimated for 2023, in line with more favourables business sentiments and improved external environment, said the Ministry of Finance (MOF).

MOF: 2024 private investment to grow by 5.4% y-o-y; public investment up 8.3%

The share of employee compensation (CE) of gross domestic product (GDP) is projected to improve to 33.1% in 2024, from 32.4% in 2023, said the Ministry of Finance (MOF).

Workers’ compensation to improve to 33.1% of GDP in 2024, but lags behind advanced economies — MOF 

Malaysia’s current account balance is projected to register a surplus of RM62.24 billion in 2024 — slightly higher than the estimated RM61.97 billion in 2023 — equivalent to 3.2% of the gross national income (GNI), according to the Ministry of Finance’s (MOF) 2024 Economic Report Outlook.

MOF: Current account balance to record over RM62 bil surplus in 2024, 3.2% of GNI 

KUALA LUMPUR (Oct 13): The total assets of Islamic banking expanded by 8.1% to RM1.29 billion as at end of July this year, accounting for 36.4% of the market share, according to the Ministry of Finance’s (MOF) 2024 Economic Outlook report.

The ministry said the total Islamic financing o...

Islamic banking assets up 8.1% to RM1.3 bil at end July, says MOF

The federal government plans to spend RM90 billion for development in 2024, 7.2% less than the RM97 billion it planned for in 2023, on the back of a lower allocation for the economic sector of RM45.2 billion, compared with RM55 billion previously.

Malaysia plans RM90 bil development spending for 2024, down 7.2% from RM97 bil in 2023

KUALA LUMPUR (Oct 13): The federal government projects a marginal growth of 1.5% on its revenue for 2024 to RM307.6 billion — a smaller increase compared to 2023, when the pace is estimated at 3%.

Federal govt revenue to grow 1.5% to RM307.6 bil in 2024; lower Petronas dividend

The federal government's debt is projected to be around 64% of GDP as at end-2024 — only 1% away from the 65% statutory debt limit, according to the Ministry of Finance (MOF) in its Fiscal Outlook and Federal Government Revenue Estimates Report.

Federal govt debts anticipated to swell to RM1.26 tril in 2024, 64% of GDP

Employers must raise wages as part of the solution to Malaysia's productivity challenge, according to the Economic Outlook 2024 report.

"The issue of low wages in Malaysia is normally linked to the economy's productivity challenges, with the implied argument that employers should wait for productivity to rise before increasing the wages," the report stated.

Raising wages will help solve productivity problems, says govt

Household debt grew at a moderate pace of 5.1% as at June this year, largely driven by the purchase of residential properties facilitated by homeownership incentives and the purchase of motor vehicles following the extension of the sales tax exemption and new vehicle registration period, according to the Ministry of Finance (MOF).

Household debt grows 5.1% to above RM1.4 tril in 2023; higher than federal government debts

Expectations of the US Federal Reserve reaching the end of its hawkish stance, coupled with China’s economic recovery, is expected to provide support for the ringgit moving forward, according to the Ministry of Finance's (MOF) 2024 Economic Outlook report.

China’s economic recovery, pause in US rate hike to provide support for ringgit in near future, says MOF

Total outstanding government guarantees (GG) is expected to increase slightly to RM317.9 billion in 2023 (equivalent to 17.2% of GDP), from RM317.6 billion in 2022.

Outstanding govt guarantees stand at RM317.9 billion, 17.2% of GDP

Local sukuk and bonds will play a vital role as the financing instrument for programmes and projects featured in the National Energy Transition Roadmap (NETR), the New Industrial Master Plan 2030 (NIMP 2030) and the mid-term review of the 12th Malaysia Plan, according to the Economic Outlook 2024 report published by the Ministry of Finance (MOF).

Local sukuk, bonds to play vital role as financing instruments for various govt policy framework, says MOF

Malaysia’s unemployment rate is expected to return to the pre-pandemic level at 3.4% in 2024, driven by expectations of better economic growth that should stimulate stronger labour demand and spur more solid growth in employment opportunities, according to the Ministry of Finance (MOF).

Unemployment rate to improve further to 3.4% in 2024, says MOF

MORNING CALL: 15/11/24

While trade tensions between the US and China are bringing more investments to Southeast Asia, including Malaysia, worries over slower global growth and higher costs loom, according to Malaysia’s trade and investment chief.

Malaysia’s trade chief flags longer term pain from US-China rift

Vietnam President Luong Cuong forcefully warned of the dangers of a world with higher tariffs, one of the strongest criticisms so far of US President-elect Donald Trump’s approach to trade as world leaders gather this week in Peru.

Vietnam leader warns trade wars lead to poverty in dig at Trump

Asian equities were set to climb early Friday even as traders scaled back expectations for a Federal Reserve rate cut next month which weighed on US stocks and strengthened the dollar.

Japanese, Australian and Hong Kong equity futures all rose. Contracts for Tokyo benchmarks were supported by further weakness in the yen as an index of greenback strength advanced for a fifth day on Thursday.

Dollar rises with December Fed cut now in doubt

Nissan Motor Co. will have a year of breathing space in 2025 before hitting a record bond maturity wall as concerns mount about its ability to generate cash.

The automaker and its group firms have about $1.6 billion of debt due next year, a slight decrease from 2024, but that figure will jump to around $5.6 billion in 2026, the most in Bloomberg-compiled data going back to 1996.

Nissan faces record debt bill with one year left to fix finances

Stocks fell after Jerome Powell signaled there’s no need for the Federal Reserve to rush with rate cuts as the economy is holding up.

The equity market closed near session lows, US two-year yields spiked and the dollar climbed after Powell’s remarks

Stocks get hit as Powell’s remarks curb Fed wagers

Here is a brief recap of some corporate announcements that made the news on Thursday.

Bumi Armada, MISC, Berjaya Food, Mr DIY, Prolintas, Lysaght, Keyfield, Teo Seng, YTL Power, Ranhill Utilities, Seal and LBS Bina

US regulators led by the Federal Reserve have refused to endorse a plan that would have seen the Basel Committee on Banking Supervision push lenders to disclose their climate risk, according to people familiar with the matter.

Fed refuses to back Basel climate plan, leaving talks in limbo

Ford Motor Co agreed to a US$165 million (RM733.5 million) civil penalty to settle allegations the company failed to recall cars with defective rearview cameras in a timely manner, the second largest fine ever levied by the National Highway Traffic Safety Administration (NHTSA).

Ford hit with near-record US$165 mil penalty on recall failure

Small and medium enterprises (SMEs) play a crucial role in driving economic growth within the Asia-Pacific Economic Cooperation (Apec) region, particularly when it comes to fostering inclusive development, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

SMEs play crucial role in driving growth in Apec economies, fostering inclusivity — Tengku Zafrul

Here is a brief recap of some corporate announcements that made the news on Thursday.

ACE Market-listed Farm Price Holdings Bhd (KL:FPHB), a Johor-based wholesaler and distributor of fresh vegetables, food and beverage (F&amp;B) products, is expanding its distribution reach to Sabah.

Farm Price ventures into Sabah's fruit business via stake purchase in KK firm

Petroliam Nasional Bhd (Petronas) has made new investments totalling RM7.5 billion at the Pengerang Integrated Complex (PIC) near Kota Tinggi.

Petronas invests another RM7.5b in Pengerang Integrated Complex — Onn Hafiz

The number of Americans filing new applications for unemployment benefits fell last week, suggesting the labour market continued to chug along and that the abrupt slowdown in job growth in October was an aberration.

US weekly jobless claims fall; unemployment rolls shrink

Bina Puri Holdings Bhd (KL:BPURI) said on Thursday that its associate company KL-Kuala Selangor Expressway Bhd (Latar) has won an arbitration case against Prolintas Expressway Sdn Bhd and was awarded RM46.13 million.

Bina Puri's associate wins RM46 mil in arbitration case against Prolintas 

Engineering outfit Pestech International Bhd (KL:PESTECH) said Shandong Power Equipment Co Ltd (Speco) has initiated arbitration proceedings against its wholly owned PESTECH Sdn Bhd (PSB) over what Speco claimed were unpaid dues related to the supply of transformers.

Pestech hit by arbitration claim over RM7.7m worth of alleged unpaid dues

Asian equities were set to climb early Friday even as traders scaled back expectations for a Federal Reserve rate cut next month which weighed on US stocks and strengthened the dollar.

Japanese, Australian and Hong Kong equity futures all rose. Contracts for Tokyo benchmarks were supported by further weakness in the yen as an index of greenback strength advanced for a fifth day on Thursday.

While trade tensions between the US and China are bringing more investments to Southeast Asia, including Malaysia, worries over slower global growth and higher costs loom, according to Malaysia’s trade and investment chief.

Vietnam President Luong Cuong forcefully warned of the dangers of a world with higher tariffs, one of the strongest criticisms so far of US President-elect Donald Trump’s approach to trade as world leaders gather this week in Peru.

Property developer Seal Incorporated Bhd (KL:SEAL) is seeking its shareholders' approval at an extraordinary general meeting to be convened to provide corporate guarantee to a RM293 million banking facility that its 20%-owned associate MSR Green Energy Sdn Bhd (MSRGE) is obtaining from a licensed financial institution based in Malaysia.

Seal Inc seeks shareholder nod to guarantee associate's RM293m loan facility

US regulators led by the Federal Reserve have refused to endorse a plan that would have seen the Basel Committee on Banking Supervision push lenders to disclose their climate risk, according to people familiar with the matter.

Sunway Real Estate Investment Trust (KL:SUNREIT), which recently completed its acquisition of shopping mall 163 Retail Park in Mont Kiara, announced that its net property income (NPI) increased 5.5% to RM144.3 million for the third quarter ended Sept 30, 2024 (3QFY2024) on back of a 9.3% growth on revenue.

Sunway REIT's NPI up 5.5% in 3QFY2024

The Ministry of Economy is committed to ensuring that phase one of the Kedah Rubber City (KRC) development will be completed within a year, said Economy Minister Rafizi Ramli.

Rafizi: Govt committed to ensuring phase one of Kedah Rubber City development completed within a year

JD.com Inc’s quarterly revenue rose 5.1%, a moderate expansion that suggests Chinese consumers are only cautiously spending again as Beijing tries to revitalise the economy.

Sales rose to 260.4 billion yuan (RM160.27 billion) for the three months ended September, barely surpassing the average estimate for 259.7 billion yuan.

JD’s results fail to impress as Chinese economic fears persist

Prime Minister Datuk Seri Anwar Ibrahim is scheduled to participate at the Asia Pacific Economic Cooperation (Apec) CEO’s Summit here on Thursday as part of his engagement at the APEC Economic Leaders Week (AELW).

He will be a panellist in the session entitled 'Opportunities and Challenges in the AI Revolution', along with Microsoft vice-president of Data &amp; AI, Zia Mansoor, Vobile chief executive officer, Yangbin Wang and Google vice-president, Government Affairs &amp; Public Policy, Karan Bhatia.

Anwar to participate in Apec CEO Summit, meet Google vice-president

Stocks fell after Jerome Powell signaled there’s no need for the Federal Reserve to rush with rate cuts as the economy is holding up.

The equity market closed near session lows, US two-year yields spiked and the dollar climbed after Powell’s remarks

Nissan Motor Co. will have a year of breathing space in 2025 before hitting a record bond maturity wall as concerns mount about its ability to generate cash.

The automaker and its group firms have about $1.6 billion of debt due next year, a slight decrease from 2024, but that figure will jump to around $5.6 billion in 2026, the most in Bloomberg-compiled data going back to 1996.

US producer prices picked up in October, fuelled in part by gains in portfolio management and other categories that feed into the Federal Reserve’s preferred inflation gauge.

The producer price index (PPI) for final demand increased 0.2% from a month earlier after rising a revised 0.1% in September, Bureau of Labor Statistics data showed on Thursday.

US producer prices rise, risking pressure in Fed’s favoured gauge

Walt Disney Co posted fiscal fourth-quarter (4Q) sales and profit that beat Wall Street estimates and forecast earnings growth for the next three years, a rare event for a company that historically hasn’t made long-range profit projections.

Disney 4Q profit beats expectations as movies, streaming gain

Small and medium enterprises (SMEs) play a crucial role in driving economic growth within the Asia-Pacific Economic Cooperation (Apec) region, particularly when it comes to fostering inclusive development, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Economic Report 2023/2024

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Economic Report 2023/2024

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