by Faiz Riziq | Mar 11, 2025 | Ekonomi, Perniagaan & Korporat, Fakta & Informasi, Kewangan, Keberhutangan & Pelaburan, Luar Negara, English & Other Country
Keputusan Presiden Donald Trump untuk mengenakan tarif terhadap negara-negara BRICS serta rakan dagang utama seperti Kanada, Mexico, dan China telah mencetuskan ketidaktentuan dalam pasaran Amerika Syarikat (AS). Langkah ini bukan sahaja memberi impak kepada hubungan perdagangan antarabangsa tetapi juga menjejaskan kestabilan ekonomi domestik.
Tambahan pula, situasi ini diperburuk dengan tindakan pemberhentian pekerja yang diumumkan oleh salah seorang penasihat ekonomi Trump, iaitu Elon Musk. Keputusan ini menambah kebimbangan di kalangan pengguna dan pelabur, sekali gus menurunkan tahap keyakinan mereka terhadap prospek ekonomi negara.
Menurut laporan AFP, sekiranya keadaan ini berlarutan, AS berkemungkinan mengalami kemerosotan ekonomi pada tahun 2025. Walaupun Trump menolak dakwaan ini, pentadbiran beliau tidak menafikan kemungkinan kesan negatif tarif tersebut. Sebaliknya, mereka mempertahankan langkah ini sebagai satu usaha untuk mengembalikan kekayaan AS dalam pasaran global.
Walaupun ramalan kemerosotan ekonomi belum terbukti, Trump sendiri mengakui bahawa pertumbuhan ekonomi AS mungkin menjadi lebih perlahan pada tahun ini. Ini disebabkan usaha untuk mengimbangi kesan negatif daripada pelaksanaan tarif yang ketat.
Kesimpulannya, dasar tarif yang diperkenalkan oleh Trump membawa kesan yang bercampur-baur terhadap ekonomi AS. Walaupun ia dilihat sebagai strategi untuk meningkatkan daya saing ekonomi negara, kesan jangka panjangnya terhadap pertumbuhan dan kestabilan pasaran masih menjadi tanda tanya. Jika tidak ditangani dengan bijak, AS mungkin berdepan dengan cabaran ekonomi yang lebih besar dalam tempoh mendatang.
by Faiz Riziq | Mar 6, 2025 | Ekonomi, Perniagaan & Korporat, Kewangan, Keberhutangan & Pelaburan, Luar Negara, English & Other Country
Malaysia is set to maintain its key interest rate at 3% this Thursday, as Bank Negara Malaysia (BNM) strategically preserves its monetary tools while navigating global trade uncertainties. The move comes in response to the US government’s latest round of tariffs, which could impact Malaysia’s trade-reliant economy.
BNM’s Cautious Approach
According to a Bloomberg survey of 23 economists, BNM is expected to keep the Overnight Policy Rate (OPR) unchanged at 3%. The central bank last adjusted rates in May 2023 with a quarter-point hike. Despite external economic pressures, Malaysian policymakers remain optimistic about the country’s growth prospects, making an immediate rate cut unlikely.
Malaysia’s economy remains one of Asia’s best-performing, and its stronger-than-expected fourth-quarter growth in 2023 allowed it to meet the government’s 2024 growth projections. This resilience provides the central bank with room to hold rates steady while monitoring global developments.
Trade Concerns and Growth Outlook
However, uncertainties loom over the economy due to potential US tariffs on semiconductors. Malaysia, a key player in the electrical and electronics (E&E) sector, saw these products account for 40% of its total exports last year. The government is actively seeking discussions with the US to mitigate the potential impact of these trade measures.
To counter external risks, Malaysia is banking on domestic spending and investment growth. The country secured a record RM378.5 billion (US$85.4 billion) in approved investments in 2023, marking a 15% increase from the previous year. These investments are projected to create over 200,000 new jobs, softening the impact of slowing trade growth.
Additionally, domestic consumption is expected to get a boost from salary hikes, including higher public sector wages and a planned increase in the private sector’s minimum wage. These measures will support household spending and help sustain economic growth in the coming months.
Inflation Under Control
Malaysia’s inflation has remained stable, staying below market expectations for three consecutive months. This provides policymakers with some flexibility as they prepare to introduce targeted petrol price adjustments for the wealthiest 15% of the population by mid-year.
BNM has reassured that any inflationary impact from these reforms will be manageable, provided they are rolled out gradually. The government forecasts consumer prices to rise between 2% and 3.5% in 2024, reflecting the uncertainties in global markets and domestic price adjustments.
Ringgit’s Performance and Future Trends
Malaysia’s currency, the ringgit, faces continued pressure as the US Federal Reserve maintains a cautious stance on interest rate cuts in 2025. However, analysts at MIDF Research expect the ringgit to strengthen against the US dollar, albeit at a slower pace. Notably, the ringgit was the best-performing currency among emerging markets in 2024, appreciating by 2.7% and reversing a three-year decline.
Conclusion
As Malaysia braces for potential trade challenges, the central bank’s decision to keep interest rates steady reflects confidence in the nation’s economic fundamentals. With robust investment inflows, stable inflation, and a resilient currency, Malaysia remains well-positioned to navigate global economic uncertainties while sustaining domestic growth.
by Faiz Riziq | Mar 5, 2025 | Ekonomi, Perniagaan & Korporat, Fakta & Informasi, Luar Negara, English & Other Country
The Malaysian government has no plans to lower the corporate income tax rate as a means to attract foreign investments, according to the Ministry of Finance (MOF). Instead, the government is focusing on improving tax administration and services to enhance efficiency and provide better support for businesses.
Commitment to Fair and Progressive Taxation
In a written response published on the Senate website, the MOF emphasized that any future studies or reviews on income tax rates must balance economic growth with the nation’s fiscal stability. The government aims to maintain a fair and progressive taxation system that supports both local enterprises and foreign investors without compromising financial sustainability.
Previous Corporate Tax Reductions
Responding to a query from Senator Robert Lau Hui Yew on whether Malaysia would reduce its corporate tax rate, the ministry highlighted that the government had previously lowered the corporate income tax rate from 25% to 24% starting from the 2016 assessment year. Additionally, tax reductions for micro, small, and medium enterprises (MSMEs) have been implemented to boost their competitiveness and drive economic growth.
Competitive Tax Incentives for Businesses
The MOF clarified that despite maintaining the current corporate tax rate, companies in Malaysia effectively pay lower taxes due to various incentives, deductions, exemptions, reliefs, and capital allowances tailored to different industries. These measures ensure that Malaysia remains an attractive destination for investors while supporting sustainable business expansion.
By maintaining a stable corporate tax framework and enhancing tax services, the government is positioning Malaysia as a competitive and business-friendly environment in the region, fostering long-term economic prosperity.
by Faiz Riziq | Mar 4, 2025 | Ekonomi, Perniagaan & Korporat, Fakta & Informasi, Kewangan, Keberhutangan & Pelaburan, Luar Negara, English & Other Country
The Malaysian government remains steadfast in its commitment to reducing the fiscal deficit, projecting a decline to 3.8% by 2025. Finance Minister II, Datuk Seri Amir Hamzah Azizan, emphasized that the Madani government is dedicated to a gradual and consistent approach in lowering the deficit rate—from 5.5% in 2022 to 5% in 2023, followed by 4.1% in 2024.
This strategic deficit reduction is accompanied by a decrease in new debt issuance, with government borrowings reducing from nearly RM100 billion in 2022 to RM92.6 billion in 2023, and further down to approximately RM77 billion in 2024. The government’s efforts are aligned with ensuring the debt-to-GDP ratio remains below 60%, reinforcing economic stability.
Achieving Fiscal Responsibility for a Stronger Economy
According to Datuk Seri Amir Hamzah, the government is on track to meet the fiscal targets outlined in the Public Financial Act and Fiscal Responsibility Act (FRA) 2023. The aim is to achieve a 3% deficit by the end of 2028, reinforcing sustainable financial management practices.
To support this goal, the government plans to reduce development expenditure allocation to RM86 billion under Budget 2025. However, economic growth will still be stimulated through:
- Public-Private Partnership (PPP) Projects valued at RM9 billion.
- Direct Domestic Investments by Government-Linked Investment Companies (GLIC) amounting to RM25 billion.
This strategic approach increases public investment to RM120 billion for 2025, ensuring continuous economic growth while maintaining prudent financial management.
The government’s strong fiscal policies and responsible debt management highlight its dedication to long-term economic stability. With these measures in place, Malaysia is poised to achieve a healthier financial outlook while fostering growth and investment in key sectors.
by Faiz Riziq | Mar 3, 2025 | Ekonomi, Perniagaan & Korporat, Fakta & Informasi, Luar Negara, English & Other Country
For the past 50 years, PETRONAS has been at the forefront of the energy industry, pioneering innovation and transformation. Now, in its efforts to accelerate the transition towards clean and sustainable energy, PETRONAS has formed a strategic partnership with the United Kingdom-based Energy Institute (EI). This makes PETRONAS the first Southeast Asia-headquartered company to establish a technical partnership with EI to accelerate the global energy transition in a fair and inclusive manner.
PETRONAS’ Commitment to Energy Transition
This collaboration aims to drive innovation in energy efficiency and decarbonization by implementing the latest strategies and technologies.
“Through innovative technologies, decarbonization strategies, and global best practices, this partnership aims to enhance safety, efficiency, and environmental responsibility across the energy industry,” said Ir Mohd Yusri Mohamed Yusof, PETRONAS Senior Vice President of Project Delivery and Technology.
Echoing the sentiment, EI CEO Dr. Nick Wayth emphasized that this collaboration will help accelerate the global energy transition.
“As a major global energy player, PETRONAS brings exceptional expertise and experience to accelerate the Net Zero agenda,” he said.
Benefits of the PETRONAS and Energy Institute Partnership
This partnership will enable stakeholders in the energy sector to make well-informed, data-driven strategic decisions. By integrating EI’s technical expertise with PETRONAS’ deep industry insights, this collaboration is expected to bring significant transformation to the global energy sector.
“Our goal is to support the Asian region in navigating the complexities of the energy transition with confidence and clarity,” added Ir Mohd Yusri.
Additionally, the partnership will focus on developing the next generation of energy professionals. Education, training, and leadership in sustainable energy practices will be prioritized to ensure continuous development in clean energy.
PETRONAS’ Pioneering Projects & Sustainable Technologies
PETRONAS has achieved key milestones through various innovative projects:
- Kasawari Carbon Capture and Storage (CCS): Capable of reducing 3.3 million tons of CO2 emissions annually, marking a major step towards decarbonization.
- Artificial Intelligence (AI): Enhancing operational efficiency and sustainability.
- Green Energy: Focused on hydrogen, renewable energy, and bio-based solutions to shape a cleaner energy future.
With Asia being the fastest-growing region influencing global energy trends, PETRONAS emphasizes the importance of collaboration to ensure a fair energy transition.
Energy Asia 2025: A Platform for Energy Transformation in Kuala Lumpur
As part of its efforts, PETRONAS will host Energy Asia 2025, in collaboration with Knowledge Partner CERAWeek by S&P Global, from June 16 to 18, 2025, at the Kuala Lumpur Convention Centre. With the theme ‘Delivering Asia’s Energy Transition’, this event will serve as a crucial platform for industry leaders, policymakers, and energy experts to discuss practical solutions for Asia’s energy challenges.
“We must turn dialogue into action and collaboration into a collective movement. The future of our planet depends on it,” urged Ir Mohd Yusri. Through strategic partnerships and technological innovation, PETRONAS continues to lead the energy industry towards a more sustainable and resilient future.
by Faiz Riziq | Feb 28, 2025 | Luar Negara, English & Other Country
Mr DIY Group (M) Bhd has reported a 7.2% decline in net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024), recording RM147.2 million compared to RM158.63 million a year earlier. The drop was attributed to higher costs linked to business expansion and a growing store network.
Rising Expenses Amid Growth
The company saw a substantial rise in administrative and operating expenses, which increased by 25% and 12% to RM55.7 million and RM291 million, respectively. Key cost drivers included higher staff wages, increased utility expenses, and depreciation of right-of-use assets and fixed assets. Additionally, an extra RM4.9 million was allocated to support the operation of new automated warehouses and other warehouse facilities.
Revenue Growth Despite Challenges
Despite the profit decline, Mr DIY’s revenue saw a 2.6% increase to RM1.18 billion from RM1.15 billion in 4QFY2023, fueled by a 13.8% expansion in store count. The retailer now operates 1,435 outlets, up from 1,261 a year ago.
Dividend Payout Reaches Record High
Mr DIY declared an interim dividend of 1.8 sen per share for the quarter, amounting to RM170.3 million, scheduled for payment on March 28. This brings the total payout for FY2024 to five sen per share (RM472.9 million), marking a significant increase from 3.2 sen per share (RM264.25 million) in FY2023—the highest payout since its listing in October 2020.
Full-Year Performance and Future Strategy
For the full financial year, net profit grew by 1.5% to RM568.94 million from RM560.68 million in FY2023, with revenue climbing 6.7% to RM4.65 billion from RM4.36 billion. Mr DIY’s CEO, Adrian Ong, described 2024 as a year of “moderation and strategic opportunity.” While acknowledging weak consumer sentiment and limited household disposable income, he emphasized that the company used this period to refine its strategies—reassessing its product mix, strengthening its value proposition, and deepening customer engagement.
“We have actively diversified our offerings through meaningful collaborations with like-minded, growth-focused retailers and established local brands, ensuring we stay ahead of evolving customer needs,” said Ong.
Market Outlook
Despite recent financial headwinds, Ong remains confident in Mr DIY’s long-term growth potential. The company’s shares closed at RM1.58 on Thursday, up four sen (2.6%), giving it a market capitalisation of RM14.58 billion. However, the stock has declined over 15% year-to-date, reflecting market adjustments amid ongoing economic challenges. As Mr DIY continues to expand, investors and consumers alike will be keen to see how its strategic refinements translate into sustainable growth in the coming years.
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