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

KUALA LUMPUR (April 28): The Malaysian Anti-Corruption Commission (MACC) has requested information from German authorities concerning the alleged acquisition of luxury vehicles in Germany, financed by 1Malaysia Development Bhd (1MDB) funds, according to MACC chief commissioner Tan Sri Azam Baki.

MACC probes alleged luxury car buys in Germany with 1MDB funds

RIYADH (April 28): Malaysia adopts a balanced foreign policy approach between the West and East and stands clear of any sort of position that is deemed provocative, Prime Minister Datuk Seri Anwar Ibrahim said on Sunday.

Anwar: Malaysia adopts a balanced foreign policy, stands clear of provocations

RIYADH/DUBAI (April 28): Saudi Arabia, the world's top oil exporter, will adjust its Vision 2030 plan to transform its economy as needed, scaling back some projects and accelerating others, its finance minister said on Sunday.

Saudi Arabia's Vision 2030 projects to be adjusted as needed, finmin says

KUCHING (April 28): Sarawak Premier Tan Sri Abang Johari Tun Openg said on Sunday that prospective investors must deposit at least RM2 million or purchase property worth not less than RM1.5 million to obtain permanent residency (PR) in the state.

Abang Johari: Investors must deposit minimum RM2 mil to migrate to Sarawak

BANGKOK (April 28): Thai Foreign Minister Parnpree Bahiddha-Nukara has abruptly resigned after losing the role of deputy prime minister in a Cabinet reshuffle, local media reported on Sunday.

Thai foreign minister resigns, local media report

SEREMBAN (April 28): Tabung Haji (TH) bore over RM350 million in direct and indirect financial assistance costs for this year's haj operations, its haj management general manager Mohamed Heikal Mohamed Yusuff revealed on Sunday.

Tabung Haji bore more than RM350m in assistance cost for this year's haj ops

KUCHING (April 28): Water is an important component which acts as a stabiliser and catalyst for sustainable national development, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Water acts as stabiliser, catalyst for sustainable national development — Fadillah

LISBON (April 28): Russia's air defence systems destroyed 17 drones launched by Ukraine over its territory, Russia's defence ministry said on Sunday, with a regional official saying the attack targeted an oil storage facility in the Kaluga region.

Russia says it destroyed 17 drones launched by Ukraine

CYBERJAYA (April 28): The Occupational Safety and Health (Amendment) Act 2022 will come into effect on June 1, thus further increasing the level of safety and health at workplaces nationwide, said Human Resources Minister Steven Sim Chee Keong.

Minister: Occupational Safety and Health (Amendment) Act 2022 comes into force on June 1

SHANGHAI (April 28): A private jet linked to Tesla chief executive officer (CEO) Elon Musk landed in Beijing on Sunday, a flight tracking app showed, as two people with knowledge of the matter said the billionaire was kicking off a surprise visit to the automaker's second-biggest market.

Tesla CEO Elon Musk kicks off surprise trip to Beijing, sources say

Companies Commission of Malaysia issues directive to Ewog’s trustee to freeze trust account funds

Companies Commission of Malaysia orders East West One Group’s trustee to freeze trust account funds

HULU SELANGOR (April 27): The Selangor government, via several subsidiaries, including the Selangor Menteri Besar (Incorporation) or MBI, has signed memoranda of understanding (MOUs) with several technology companies in Germany, in an effort to further develop the state.

Selangor signs MOU with tech firms in Germany

(April 28):&nbsp;A higher-for-longer interest rate environment is burnishing the credentials of cheap Chinese stocks and driving value investment strategies in Asia.&nbsp;

Fed repricing gives rise to new equities playbook in Asia

SHANGHAI (April 28): A private jet linked to Tesla chief executive officer (CEO) Elon Musk landed in Beijing on Sunday, a flight tracking app showed, as two people with knowledge of the matter said the billionaire was kicking off a surprise visit to the automaker's second-biggest market.

RIYADH (April 28): Malaysian Prime Minister Datuk Seri Anwar Ibrahim arrived here on Saturday (April 27) night for a three-day working visit to participate in the World Economic Forum’s (WEF) Special Meeting.&nbsp;

Anwar arrives in Riyadh for World Economic Forum's Special Meeting

KUCHING (April 28): Sarawak Premier Tan Sri Abang Johari Tun Openg said on Sunday that prospective investors must deposit at least RM2 million or purchase property worth not less than RM1.5 million to obtain permanent residency (PR) in the state.

CYBERJAYA (April 28): The Occupational Safety and Health (Amendment) Act 2022 will come into effect on June 1, thus further increasing the level of safety and health at workplaces nationwide, said Human Resources Minister Steven Sim Chee Keong.

BANGKOK (April 28): Thai former energy executive Pichai Chunhavajira was named the country's finance minister on Sunday, facing a tough task to revive Southeast Asia's second-largest economy.

Former exec Pichai named as Thai finance minister, faces growth challenges

KUALA LUMPUR (April 28): Malaysia is on a mission to explore various economic opportunities and attract new investments at the World Economic Forum (WEF) Special Meeting in Riyadh, Saudi Arabia, which will last two days starting Sunday.

Anwar on a mission to explore economic opportunities, attract new investments at WEF

RIYADH (April 28): The World Economic Forum’s (WEF) Special Meeting commences in Riyadh, Saudi Arabia&nbsp;on Sunday, to find solutions to a host of global challenges relating to humanitarian issues, the climate and the economy.&nbsp;

World Economic Forum’s Special Meeting commences in Riyadh

KUCHING (April 28): Water is an important component which acts as a stabiliser and catalyst for sustainable national development, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

SEREMBAN (April 28): Tabung Haji (TH) bore over RM350 million in direct and indirect financial assistance costs for this year's haj operations, its haj&nbsp;management general manager Mohamed Heikal Mohamed Yusuff revealed on Sunday. &nbsp;

RIYADH/DUBAI (April 28): Saudi Arabia, the world's top oil exporter, will adjust its Vision 2030 plan to transform its economy as needed, scaling back some projects and accelerating others, its finance minister said on Sunday.

BANGKOK (April 28): Thai Foreign Minister Parnpree Bahiddha-Nukara has abruptly resigned after losing the role of deputy prime minister in a Cabinet reshuffle, local media reported on Sunday.

RIYADH (April 28): Malaysia adopts a balanced foreign policy approach between the West and East and stands clear of any sort of position that is deemed provocative, Prime Minister Datuk Seri Anwar Ibrahim said on Sunday.

WASHINGTON (April 27): US&nbsp;President Joe Biden delivered an election-year roast on Saturday night at the annual White House Correspondents' Association dinner, as protesters outside criticised his support for Israel's war against Hamas.

Biden jabs Trump in election-year roast at correspondents' dinner

LISBON (April 28): Russia's air defence systems destroyed 17 drones launched by Ukraine over its territory, Russia's defence ministry said on Sunday, with a regional official saying the attack targeted an oil storage facility in the Kaluga region.

BEIRUT (April 28): France's foreign minister will push proposals to prevent further escalation and a potential war between Israel and Iran-backed Hezbollah during a visit to Lebanon on Sunday, as Paris seeks to refine a roadmap that both sides could accept to ease tensions.

France's foreign minister looks to prevent Israel-Hezbollah conflict escalation in Lebanon visit

KUALA LUMPUR (April 28): The Malaysian Anti-Corruption Commission (MACC) has requested information from German authorities concerning the alleged acquisition of luxury vehicles in Germany, financed by 1Malaysia Development Bhd (1MDB) funds, according to MACC chief commissioner Tan Sri Azam Baki.

Economic Report 2019/2020

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