HOW OUR ECONOMY WILL FARE IN 2020


	Malaysian economy to grow 4.8% in 2020 vs 4.7% in 2019. The stronger growth is underpinned by resilient domestic demand, particularly household spending thanks to stable labour market and low inflation.

Economic Report 2019/2020 Highlights

The federal government’s debt stood at RM799.1 billion, or 52.7% of gross domestic product, compared with RM741.05 billion in 2018. The increase in national debt was mainly to finance the budget deficit to stimulate economic growth.

Has the country's debt situation improved?

Civil servants’ emoluments to exceed RM82 billion

Civil servant pension will cost RM27.1 billion  

Govt to spend RM24.2 billion on subsidies and social assistance

Higher development expenditure of RM56 billion

How the Government intends to spend in 2020

Economic growth at 4.8% in 2020 vs 4.7% in 2019
	Only 1% growth in exports in 2020
	Current account surplus to narrow to 1.9% of GNI
	2% inflation in 2020, lifted by the introduction of targeted fuel subsidy
	Unemployment rate to remain healthy at 3.3% in 2020

How will our economy fare in 2020?

Malaysia's current account surplus is expected to decline to RM29 billion in 2020 from the estimated RM43.4 billion in 2019, as import growth outpaces export rise, according to the Ministry of Finance's (MoF) Economic Outlook 2020 report.

Malaysia current account surplus seen at RM29b in 2020 versus RM43.4b in 2019

The 2020 Budget deficit target has been revised to 3.2% of GDP, which is slightly higher than 3% originally announced in the 2019 Budget.

However, the overall deficit in 2020 is expected to be lower compared with 3.4% in 2019 with fiscal consolidation remaining on its trajectory and the debt position at a manageable level.

Federal Govt widens 2020 fiscal deficit target to stimulate growth

The overall household debt increased slightly to RM1.22 trillion, accounting for 82.2% of the nation's gross domestic product (GDP) as at end-June 2019, says the Ministry of Finance (MoF) in its Economic Outlook 2020 report.

Household debt increases slightly to RM1.22 tril

Lower public revenue in 2020 in absence of Petronas special dividend
	Government expects RM26.8 billion SST collection in 2019
	Government's tax revenue up 3.4% to RM180 billion in 2019
	With weakening growth in government revenue, tax reforms necessary

How will the government fill the nation’s coffers?

The Government’s revenue for 2020 to 2022 is expected to be RM764.9 billion or 15% of the nation’s gross domestic product (GDP).

Petroleum-related revenue is projected to be RM149.2 billion or 2.9% of GDP, while non-petroleum revenue is expected to contribute RM615.7 billion or 12% of GDP, said the Ministry of Finance in the 2020 Fiscal Outlook and Federal Government Revenue Estimates report

Govt revenue for 2020 to 2022 set to be 15% of GDP

The consolidated general government revenue for 2019 is estimated to increase by 11.3% to RM312.7 billion, while consolidated operating expenditure (OE) is estimated to increase by 13.5% to RM301.5 billion, according to the Ministry of Finance (MoF).

General government refers to institutional units that perform the princpal economic functions of government

Malaysia's general govt revenue to rise 11.3% to RM312.7 bil in 2019

Total debt, liabilities expanded to 77% of GDP, versus 75.4% of GDP as at end-2018
	Fed govt debt grew RM58.1 billion in the half-year period
	Committed guarantees increased RM24.6 billion   
	RM8.9 billion extended to 1MDB for debt servicing as at end-June

Malaysia's total debt, liabilities rose to RM1.17 tril as at end-June

Service sector to be the fastest-growing sector of the economy
	4.1% growth in the manufacturing sector in 2020
	Agriculture sector to grow the slower pace at 3.4%
	Stronger growth of 3.7% in construction sector in 2020, vs 1.7% in 2019
	Mining sector growth to moderate to 0.3%

Services to be fastest growth sector in 2020, construction sector sees strong recovery

Service sector to be fastest-growing sector of economy in 2020
	4.1% growth in manufacturing sector
	Agriculture sector to grow slower at 3.4%
	Stronger growth of 3.7% in construction sector in 2020 versus 1.7% in 2019
	Mining-sector growth to moderate to 0.3%

Faster growth projected for service sector in 2020, with strong rebound in growth of construction sector

Access to financing continues to be a challenge for small and medium enterprises (SMEs) and start-ups due mainly to inadequate cash flow to meet repayment obligations, according to the Ministry of Finance's (MoF) Economic Report 2019/20.

Additionally, SMEs and start-ups are also facing issues with the complex application processes, insufficient collateral and documentation, as well as high risks related to business ventures.

Lack of financing, tight cash flow among problems faced by SMEs

WASHINGTON (May 16): US President Joe Biden signed on Thursday a sweeping aviation legislation that will boost US air traffic controller staffing, increase funding to avert runway close-call incidents, and speed up refunds for cancelled flights.

Biden signs sweeping aviation safety, reform bill into law

The male suspect who was shot dead in the attack at the Ulu Tiram Police Station here earlier on Friday is believed to be a member of Jemaah Islamiyah.

Suspect in Ulu Tiram police station attack believed to be member of Jemaah Islamiyah, says IGP

BWYS Group Bhd has signed an agreement with M&A Securities Sdn Bhd to underwrite the sheet metal products manufacturer and scaffoldings supplier's upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.

BWYS Group signs underwriting agreement with M&A Securities for ACE Market IPO

Malaysia’s economic growth accelerated faster than expected in the first three months of 2024, thanks to higher household spending, stronger investment activities, improvement in labour market conditions, and higher exports and tourist arrivals.

Malaysia's 1Q GDP beats consensus estimates, grows 4.2% y-o-y

The credit impact of a potential merger Axiata Group Bhd (KL:AXIATA) is considering in Indonesia hinges on the deal structure, according to S&P Global Ratings.

In a statement on Friday, the rating agency said a key factor would be the extent of control over the cash flow of the merged entity.

S&P: Credit impact of Axiata's potential Indonesian merger hinges on deal structure

Shares of Chinese property developers rose on Friday as investors expected authorities to announce more measures to stabilise the crisis-hit sector, with fresh data showing the fastest drop in new home prices in more than nine years.

China property shares rise on bets for new steps to ease deepening crisis

Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor's sedition trial will proceed in the High Court here in July.

This follows deputy public prosecutor (DPP) Datuk Masri Mohd Daud informing judge Datuk Aslam Zainuddin that the Perikatan Nasional election director’s representation letter has been rejected.

Kedah MB Sanusi's representation bid fails, sedition trial to proceed in July

Under Armour announced a broad restructuring plan on Thursday as it said sales in its largest market, North America, plunged 10% and predicted the trend will get worse throughout its current fiscal year, CNBC said.

Under Armour is laying off workers as retailer says North America sales will plunge this year — report

Kellogg's is to close its factory in Greater Manchester, the UK, at the end of 2026 with the loss of about 360 jobs, said BBC News.

Kellogg's to close factory with 360 job losses — report

Oil prices gained on Friday, with global benchmark Brent set for its first weekly increase in three weeks on signs of improving global demand amid stronger economic indicators from key consumers China and the US.

Oil set for weekly gain on signs of improving demand

KUALA LUMPUR (May 17): Shares of S P Setia Bhd (KL:SPSETIA) soared to their highest in nearly six years on Friday, as analysts continue to urge investors to buy the stock, even as its stock price has nearly doubled so far this year.

S P Setia soars to near six-year high as analysts bet on extended rally

Malaysia’s economic growth accelerated faster than expected in the first three months of 2024, thanks to higher household spending, stronger investment activities, improvement in labour market conditions, and higher exports and tourist arrivals.

Two policemen were killed and another was injured in an attack on the Ulu Tiram Police Station early on Friday morning.

State police chief Commissioner M Kumar confirmed the incident, stating that it occurred at 2.45am and involved a masked intruder armed with pistols and a machete.

Two policeman killed in attack at Ulu Tiram police station

Hong Leong Investment Bank (HLIB) Research said the anticipated rebound in construction activities, particularly in railway projects, is expected to generate more contract opportunities for companies like Econpile Holdings Bhd (KL:ECONBHD).

Econpile to ride on construction upcycle, says HLIB 

Asian stocks inched lower on Friday as traders pondered the near term US monetary policy path after Federal Reserve (Fed) officials suggested that interest rates may need to stay higher for longer even as inflation shows early signs of easing.

Asian stocks ease on uncertainty over timing of US rate cuts

The International Monetary Fund (IMF) criticised the Biden administration’s decision to aggressively raise tariffs on some Chinese goods, underscoring its warning that tensions between the world’s top two economies risk hurting global trade and growth.

IMF knocks Biden’s China tariffs as risk to US, world growth

KUALA LUMPUR (May 17): Shares of Hong Leong Industries Bhd (KL:HLIND), or HLI, climbed to near their record high on Friday, after the motorcycle assembler reported a 51% year-on-year jump in net profit for the three months ended March 31, 2024.

Hong Leong Industries’ shares retest all-time high after profit jump

Shares of Hup Seng Industries Bhd (KL:HUPSENG) climbed to their highest in nearly three years after the biscuit maker reported that its net profit surged 45% year-on-year in the first quarter.

Hup Seng shares climb to near three-year high after 1Q profit surge

KUALA LUMPUR (May 17): Shares of Malaysian Pacific Industries Bhd (KL:MPI) climbed to their highest in 15 months, as analysts flagged stronger quarters ahead following the semiconductor company’s return to the black.

Malaysian Pacific Industries climbs to 15-month high on return to profit

Rakuten Trade said Poh Kong Holdings Bhd (KL:POHKONG) is back on the radar after it pushed out from the pennant pattern with a long white candle on Thursday.

Poh Kong back on the radar, says Rakuten Trade 

The Dow reached an intra-day high of 40,000 for the first time on Thursday, but it ended lower after paring earlier gains, as investor hopes of interest-rate cuts by the Federal Reserve (Fed) were buoyed by data showing inflation slowdown, as well as strong corporate earnings results.

Dow hits milestone 40,000 mark as rate-cut hopes fuel rally

Noland Arbaugh still doesn’t quite know what happened. He doesn’t know many of the key details about how his life took such a drastic and now extraordinary turn. How he became Noland Arbaugh, celebrity cyborg.

Neuralink’s first patient: ‘It blows my mind so much’

Shut out of US markets and under fire in Europe, China’s electric carmakers are zeroing in on the countries where they’re welcome. One of the big ones is Brazil.

Chinese EV giants hammered by Biden tariff are welcome in Brazil

A suitable list of names for the position of the Election Commission (EC) chairman should be submitted to the Special Parliamentary Select Committee on Human Rights, Elections, and Institutional Reform for vetting before being proposed to the Yang di-Pertuan Agong (YDPA) for consideration as per Article 114 of the Federal Constitution.

List of EC chairman candidates must be vetted before being submitted to Agong

Kedah Menteri Besar Datuk Seri Muhammad&nbsp;Sanusi&nbsp;Md&nbsp;Nor's sedition trial will proceed in the High Court here in July.

This follows deputy public prosecutor (DPP) Datuk Masri Mohd Daud informing judge Datuk Aslam Zainuddin that the Perikatan Nasional election director’s representation letter has been rejected.

The first Hong Kong exchange-traded funds (ETFs) investing directly in crypto have so far failed to spark the kind of excitement that greeted rival US products, a blow for the city’s push to foster a preeminent digital-asset hub.

Hong Kong’s shaky crypto ETF debuts dent global hub aspirations

China's factory output topped forecasts in April, helped by improving external demand, although retail sales unexpectedly slowed and the property sector remained a drag on the economy, piling pressure on Beijing to do more to support growth.

China's factories fire up but consumer, property weakness persists

Spirit AeroSystems is laying off several hundred members of its workforce in Wichita, Kansas, according to an internal memo, as the company deals with high debt and slowed production at Boeing, its key customer.

Boeing supplier Spirit AeroSystems to lay off about 400 employees, memo says

Two voice actors sued artificial intelligence (AI) startup Lovo in Manhattan federal court on Thursday, accusing the company of illegally copying their voices and using them without permission in its AI voiceover technology.

AI voiceover company stole voices of actors, New York lawsuit claims

Kellogg's is to close its factory in Greater Manchester, the UK, at the end of 2026 with the loss of about 360 jobs, said BBC News.

Economic Report 2019/2020

‌‌

‌
‌