Petroleum-related revenue is forecast to fall to RM43.9 billion — or 18.8% of total revenue — in 2022, more than half of which will be in the form of Petroliam National Bhd (Petronas) dividends.

Petroleum-related revenue forecast to fall to 18.8% of total govt revenue in 2022

The government’s revenue is projected to drop by 14% to RM227.3 billion in 2020, compared with RM264.4 billion in 2019, as a result of lower tax collection, according to the Ministry of Finance (MoF) in its Fiscal Outlook 2021 report.

Public revenue to shrink to RM227.3b in 2020 amid lower tax collection

The Federal Government has revised upwards its 2020 total expenditure allocation to RM314.7 billion from the initial budget estimate of RM297 billion as the prolonged COVID-19 pandemic crisis necessitated the Government to implement an extensive expansionary fiscal stance, according to the Ministry of Finance's (MOF) Fiscal Outlook 2021 report.

The MOF said the net increase of RM17.7 billion in the total expenditure allocation is derived from the estimated fiscal stimulus injection at RM38 billion and savings from expenditure amounting to RM20.3 billion

Govt 2020 expenditure allocation revised to RM314.7b from RM297b

Malaysia's gross export earnings are expected to rebound 2.7% in 2021 after a projected 5.2% decline in 2020, helped by the recovery in global trade and supply chains, according to the Ministry of Finance's Economic Outlook 2021 report.

Malaysia's 2021 gross exports seen growing 2.7% after 5.2% decline in 2020

As at end-September 2020, a total of RM13.4 billion in assets linked to 1Malaysia Development Bhd's financial trail had been recovered and merged into a dedicated trust fund administered by the Ministry of Finance (MoF), according to MoF 2021 Fiscal Outlook and Federal Government Revenue Estimates released today.

RM13.4 billion recovered from 1MDB assets as at September

Malaysia's gross domestic product is expected to grow between 6.5% and 7.5% in 2021, after a 4.5% contraction in 2020 due to the Covid-19 pandemic.

Malaysia's economy expected to grow 6.5%-7.5% in 2021 after 4.5% contraction in 2020

The Government expects its fiscal deficit to swell to 6% of Gross Domestic Product (GDP) in 2020 — the largest gap since the Global Financial Crisis in 2009, due to the additional stimulus packages to lift the country’s economy out of the doldrum plus lower GDP as a result of the COVID-19 outbreak.

The original forecast of the fiscal deficit was at 3.2%, compared with 3.4% recorded in 2019, according to the Economic Report 2021 released by the Ministry of Finance.

Malaysia’s fiscal deficit rises to 6% of GDP — the highest since GFC

Gross funds raised in the Malaysian capital market declined 14.4% to RM143.7 billion during the first seven months of 2020 from a year earlier due to lower fundraising activity in the private sector although public sector fundraising increased, the Ministry of Finance (MoF) said in its Economic Outlook 2021 report.

Gross funds raised in Malaysian capital market declined in first seven months of 2020

As at end-September, the ringgit recorded a depreciation of 1.6% against the US dollar, said the Ministry of Finance (MoF) in its Economic Outlook 2021 report.

The MoF said going forward, the expected recovery in the global and domestic economy will provide some support for the ringgit.

Ringgit depreciates 1.6% against US dollar as at September

The federal government is raising more debt to finance a wider fiscal deficit as it is in the driver seat to steer the economy out of recession. 

The national debt is expected to inch up further to hit 61% of gross domestic product (GDP) in 2021, up from 60.7% in 2020 and 52.5% in 2019.

Federal govt debt to increase to 61% of GDP in 2021

Malaysia's unemployment rate is projected to decrease to 3.5% in 2021, compared with an estimated 4.2% in 2020, as the country’s economy is expected to rebound firmly in 2021 after a dismal economic performance in 2020 due to the Covid-19 pandemic, according to the Ministry of Finance's (MoF) Economic Outlook 2021 report.

Malaysia's 2021 unemployment rate seen improving to 3.5%

Debt service charges are expected to remain manageable at RM34.9 billion or 15.4% of total projected government revenue in 2020, despite being higher than the initial estimate of 14.3% announced under Budget 2020.

Debt service charges to increase to RM34.9b or 15.4% of govt revenue in 2020

Domestic demand in Malaysia is expected to post a recovery in 2021 expanding by 6.9% after a 3% decline in 2020, amid expectation that the key growth engines, for instance consumer spending, private investment and public investment would be functioning.

In the Economic Report 2020/2021, the Ministry of Finance (MoF) anticipates private consumption to grow by 7.1% in 2021, versus a 0.7% decline in 2020. The growth is primarily driven by higher disposable income stemming from buoyant economic activities, accommodative financial stance, an extension of tax relief on childcare and healthcare and favourable stock market conditions

Domestic demand to grow by 6.9% in 2021, to recover from 3% decline in 2020

Malaysia's inflation, as measured by the Consumer Price Index, is projected to normalise at 2.5% in 2021, after the domestic economy slipped into deflation as a result of the Covid-19 outbreak in 2020, according to the Ministry of Finance's Economic Report 2020/21.

Inflation seen stabilising at 2.5% next year after 2020's deflation

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

Supercomnet Technologies, MyEG, BP Plastics, LGMS, Turiya

Shares of YTL Power International Bhd and YTL Corp Bhd rose to fresh highs on Monday as investors piled on stocks with exposure in artificial intelligence (AI).

YTL Power, YTL Corp touch new highs

FROM confidence of an interest rate cut as early as March at the start of the year, market expectations on when the US Federal Reserve will begin trimming interest rates have changed so drastically that hardly anyone expects a rate cut when the Federal Open Market Committee (FOMC) next decides on...

The State of the Nation: Watching the ringgit as markets adjust to possible near-zero Fed cuts in 2024 

BOARDROOM changes are likely afoot at Affin Bank Bhd. Sarawak, which is awaiting regulatory approval to become the largest shareholder in the banking group, is said to be seeking two seats and chairmanship of the board.

“It wants representation via two board seats and the chairmanship,”...

Newsbreak: Sarawak seeking two board seats and chair in Affin Bank, sources say  

SEPANG (April 29): The Malaysian Aviation Commission (Mavcom) is aiming for a full implementation of its quality standard framework for the country’s two main airports by the end of this year.

Mavcom to fully implement Airports Quality of Service Framework at KLIA T1, T2 by year end

Engineering solutions provider Kawan Renergy Bhd, en route to list on Bursa Malaysia's ACE Market next month, said on Monday that it anticipates minimal effect on its financial performance due to the escalating steel prices driven by surging commodity costs.

ACE Market-bound Kawan Renergy sees minimal impact on earnings amid rising steel prices

Shares of YNH Property Bhd surged to their highest in three weeks after the real estate developer said it has remedied the technical default of its sukuk programme.

YNH Property surges 11% to three-week high after default remedy

Shares of Capital A Bhd and AirAsia X Bhd (AAX) climbed further during Monday’s morning trading session, riding on a proposal announced last Thursday to merge the short- and long-haul airline operations of both companies.

AAX, Capital A lift off on merger proposal to extend rally

The Jana Wibawa programme, which was established to assist Bumiputera contractors impacted by the Covid-19 pandemic, only took off following Cabinet approval in 2020, the court heard on Monday.

Jana Wibawa programme could only take off with Cabinet approval, says witness

In The Edge Malaysia this week — a deep dive into the EPF’s newly structured Account 3, also known as Flexible Account.

EDGE WEEKLY: Who pays for anytime EPF withdrawals?

QSR Brands (M) Holdings Bhd is suspending over 100 KFC outlets temporarily nationwide after about half a year of boycott movement, Nanyang Siang Pau reported, citing information from Google Maps.

Boycott causes over 100 KFC outlets to suspend ops, report says

Berjaya Corp Bhd (BCorp), which last week denied that its founder Tan Sri Vincent Tan Chee Yioun had participated in talks to revive a US$100 billion (RM477.60 billion) Forest City casino resort as reported recently, has lodged reports for the police to commence investigation into the above matter, specifically to, amongst others, ascertain and find out the purported “unnamed source” who disseminated complete untrue and false statements.

Berjaya Corp lodges police report to identify 'unnamed source' in Forest City casino resort debacle

Shares of YNH Property Bhd surged to their highest in three weeks after the real estate developer said it has remedied the technical default of its sukuk programme.

KUALA LUMPUR (April 29): Mercury Securities Sdn Bhd has recommended investors “subscribe” ACE Market-bound Farm Price Holdings Bhd at an initial public offering (IPO) price of 24 sen and a fair value (FV) of 29 sen based on 13x FY2024F earnings per share, translating to 21% upside to IPO price.</...

Mercury Securities advises investors to subscribe ACE Market-bound Farm Price with fair value of 29 sen 

Engineering solutions provider Kawan Renergy Bhd on Monday began taking orders from investors for its ACE Market initial public offering (IPO) that would raise up to RM33 million.

Kawan Renergy sets IPO price at 30 sen apiece in bid to raise RM33m 

Real estate developer UOA Development Bhd said it plans to launch two new projects worth an estimated RM2.7 billion in gross development value (GDV) this year.

UOA Development to launch two projects worth RM2.7b by June

Top Glove Corporation Bhd bagged the Platinum Trusted Brand Award in the Hygiene/Disposable Gloves category at the Reader’s Digest Malaysian Trusted Brand 2024 awards.

TotalEnergies has stated commitment to boost investment in Malaysia's upstream O&G sector — Anwar

When South Korea decided to host a US anti-ballistic missile system, the lucrative flow of tourists from neighboring China suddenly dried up. When Australia accused Beijing of meddling in its domestic politics and demanded answers over the origins of Covid-19, China stopped buying exports like coal, wine and beef.

US ramps up help as countries plan response to China’s bullying

Three people, including a two-year-old boy, died after a Huawei-backed Aito M7 SUV burst into flames following a collision with a truck on a highway in the Chinese city of Yuncheng in the northern province of Shanxi, state media said.

China crash involving Huawei-backed Aito electric vehicle kills three

An appliance maker in southern China is finding it hard to ship its products to Russia, not because of any problems with the gadgets but because China's big banks are throttling payments for such transactions out of concern over US sanctions.

China firms go 'underground' on Russia payments as banks pull back

Shares of Turiya Bhd rallied on Monday to their highest in over three years after Tan Sri Mohan MK Swami and his partner agreed to acquire a 58% stake in the property management firm for RM52.86 million.

Turiya rallies to over three-year high with entry of Mohan Swami, partner

The yen jumped suddenly against the dollar on Monday, with traders citing yen-buying intervention by Japanese authorities to try to underpin a relentless tumble in the currency to levels last seen over three decades ago.

Japan's yen jumps against the dollar on suspected intervention

After eight consecutive weeks of net selling, foreign investors shifted to become net buyers on Bursa Malaysia last week, with a total investment of RM292.2 million.

MIDF: Foreign investors ended eight weeks of selling with total inflow of RM292m last week

General insurer LPI Capital Bhd said on Monday its net profit surged 37% year-on-year in the first quarter, thanks largely to sharply lower net expenses from reinsurance contracts held and higher investment income.

LPI Capital's 1Q net profit surges 37% on lower reinsurance expenses, higher investment income

Malakoff Corp Bhd has inked a partnership with China Northeast Electric Power Engineering &amp; Services Co Ltd (NEPCS) for technical manpower supply for the operation and maintenance (O&amp;M) of combined cycle power plant (CCPP) projects under NEPCS in Bangladesh.

Malakoff inks deal to expand operation and maintenance services to Bangladesh

The yen jumped sharply against its peers on Monday after it slid past 160 per dollar earlier in the session, leading to speculation that Tokyo could have intervened in the currency market while the country was out for a holiday.

Yen surges on suspected intervention, Asian shares rise

Once renowned as avid overseas tourists, the Japanese are staying closer to home these days.

Weaker yen keeps Japanese tourists at home while visitors throng

Shares of Singapore Telecommunications (Singtel) fell as much as 3.3% on Monday to a more than one-week low after it forecast non-cash impairment provisions of S$3.1 billion (RM10.8 billion) for the second half of 2024.

Singtel falls up to 3% after US$2.3b impairment 

OpenSys (M) Bhd, which makes automated teller machines, expects a revenue boost from an estimated 3,000 units of cash machines due for replacement in the next three years.

Economic Report 2020/2021

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