Latest news with #BankNegara
Malaysiakini
11 hours ago
- Business
- Malaysiakini
Heed BNM's wage reform call before expanding SST, urges ex-DAP MP
Former DAP MP Charles Santiago has urged Putrajaya to take heed of Bank Negara Malaysia's urgent call for wage reforms before expanding the scope for the Sales and Service Tax (SST). Charles referenced the central bank's deputy governor Marzunisham Omar's remark that controlling inflation alone is insufficient to alleviate cost-of-living pressures, as stagnant wage growth remains a concerning issue. "Is Bank Negara sending...
The Star
12 hours ago
- Business
- The Star
Bank Negara's international reserves edge up to US$119.9bil
KUALA LUMPUR: Bank Negara's international reserves rose to US$119.9bil as at June 13 compared with US$119.6bil as at May 30. 'The reserves position is sufficient to finance 5.0 months of imports of goods and services, and is 0.9 times the total short-term external debt,' the central bank said in a statement. The main components of the reserves were foreign currency reserves (US$106.7bil), the International Monetary Fund reserves position (US$1.3bil), special drawing rights (US$5.8bil), gold (US$3.8bil) and other reserve assets (US$2.3bil).
The Star
16 hours ago
- Business
- The Star
Malaysia forex reserves at three-year high
The country's net foreign exchange reserves rose to US$94.7bil at the end of April. KUALA LUMPUR: Malaysia's increasing currency reserves are bolstering its defences against market volatility. The country's net foreign exchange (forex) reserves rose to US$94.7bil at the end of April, according to the latest central bank data, the most since June 2022. Strong foreign inflows into local bonds and a weaker greenback, which enabled Bank Negara to unwind its net short forward forex position, both helped. These factors have strengthened the nation's bulwark against external shocks. 'The narrowing net shorts in forex forward book, combined with higher headline reserves, means that net reserves are rising at a faster pace,' said Winson Phoon, head of fixed-income research at Maybank Securities Pte, adding that Malaysia's improving external resilience 'helps support ringgit stability.' The extra buffer may be coming at a fortuitous time. US President Donald Trump's tariffs, Sino-American tensions and geopolitical uncertainty have boosted currency volatility, and a weakening of the US dollar has changed the forex dynamic for emerging markets. As a trade-dependent economy, Malaysia and its currency are particularly vulnerable to trade tensions between its two largest export destinations – the United States and China. The recent boost in foreign reserves comes partially from the US$5bil foreign inflow into the nation's conventional government securities in this quarter so far. That's on track to be the largest quarterly inflow on record in data going back to 2005. Global funds have poured in amid optimism over the outlook of the ringgit and on rate-cut wagers, as Bank Negara is the last rate-cut holdout in South-East Asia. The situation is different from December. Back then, Bank Negara's net short forward forex book had widened to US$29.2bil – just 0.2% shy of an all-time low – as the central bank utilised currency forwards to support the ringgit. — Bloomberg
New Straits Times
2 days ago
- Health
- New Straits Times
DRG payment plan to cover both public, private healthcare providers, Health Minister clarifies
KUALA LUMPUR: The government's plan to implement the diagnosis-related group (DRG) payment model will include both public and private healthcare providers, with particular focus on the private sector, said Health Minister Datuk Seri Dr Dzulkefly Ahmad. The health minister dismissed a report last month which claimed that private healthcare providers would be left out of the DRG framework. "Completely wrong. The DRG payment system is intended for both public and private healthcare providers, especially the private sector. "While we do want the public system to adopt it as well, the main focus is on the private sector," he told reporters after a panel discussion at Bank Negara Malaysia's Sasana Symposium 2025. The panel discussion on "Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation" featured Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour, Finance Ministry secretary general of treasury Datuk Johan Mahmood Merican, and World Bank senior economist Aakash Mohpal. Dzulkefly said the DRG is designed to provide a standardised, fair and equitable framework for healthcare remuneration. "It ensures there is no overcharging by basing payments on clearly defined groupings, such as diagnosis, procedures and complications," he said.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Fiscal reforms aimed at boosting public finances, protecting low-income groups
Treasury secretary-general Johan Mahmood Merican assured the public that the government is working to ensure that essential daily goods remain unaffected by the expansion of the sales and service tax. (Facebook pic) PETALING JAYA : The government's fiscal reform efforts, including the sales and service tax (SST) and the rationalisation of electricity and diesel subsidies, are aimed at strengthening public finances while protecting low-income groups and key economic sectors. Treasury secretary-general Johan Mahmood Merican today acknowledged recent public discussions on the SST expansion and said that the government was working to ensure that essential daily goods remain unaffected, reported Bernama. Speaking at the Sasana Symposium 2025 hosted by Bank Negara Malaysia, Johan stressed the need to broaden the country's tax base to ensure sustainable expenditure as well as to meet growing demands for social protection and basic infrastructure. 'We need to increase our tax base as our tax-to-GDP (ratio) is about 12.5%, which is among the lowest in this region,' he said. 'How do we then try to approach it more progressively? It is the government that needs to provide additional funding.' Johan also emphasised the importance of targeted subsidies and assistance, saying that providing the same aid to both high- and low-income groups undermines equity. He highlighted the increase in government cash assistance, with Sumbangan Tunai Rahmah (STR) rising from RM10 billion in 2024 to RM13 billion this year, and the inclusion of Sumbangan Asas Rahmah. He said while a progressive wealth tax was appealing and aligned with Islamic principles such as zakat, it presented major challenges in terms of administration, enforcement, and data availability. He said that income and consumption taxes were easier to manage due to the regular and traceable transactions, whereas wealth was harder to assess and value. 'I think the real challenge – and it is not just a Malaysian issue – is that it is quite challenging to administer a wealth tax compared to an income tax,' he added. Last week, the finance ministry announced that zero tax rates would remain for essential goods, while a rate of 5% to 10% would be imposed on non-essential items from July 1. The scope of the service tax will be expanded to cover rental, leasing, construction, financial services, and private healthcare and education services. Under the new tax regime, a 6% service tax will be imposed on construction services for infrastructure, commercial, and industrial buildings if the taxable value exceeds RM1.5 million annually. The same rate applies to private healthcare, traditional and complementary medicine, and allied health services provided to foreigners, on service providers exceeding the RM1.5 million threshold. Services directly impacting Malaysians such as public and some private healthcare will continue to be exempted from the service tax.
