Friday 29 Mar 2024
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KUALA LUMPUR (Jan 28): The FBM KLCI rose 5.61 points or 0.3% after Prime Minister Datuk Seri Najib Tun Razak announced Malaysia's Budget 2016 revision, which aimed to sustain the country's economic growth amid cheaper crude oil.

Although the government cut its 2016 gross domestic product (GDP) growth forecast for the country to between 4% and 4.5%, assuming Brent oil at US$30 to US$35 per barrel, policy makers maintained the government's fiscal deficit at 3.1% of GDP.

At 3:11pm, the KLCI was traded at 1,637.15 points. The ringgit strengthened to 4.2178 against the US dollar.

Bloomberg reported that the ringgit rose to a seven-week high after Prime Minister Najib Razak maintained his fiscal-deficit target and announced measures to shore up an economy hit by a plunge in oil.

"The cut in the employee contribution rate will support domestic demand and growth. Keeping the budget deficit at 3.1% of GDP is a positive surprise to the market and for the currency," Irene Cheung, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd in Singapore, was quoted as saying.

 

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