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Free Malaysia Today
13 hours ago
- Business
- Free Malaysia Today
South Korea drafts second extra budget as new leader seeks to spur growth
The South Korean government is expected to submit the extra budget proposal to parliament on June 23. (EPA Images pic) SEOUL : South Korea's new administration proposed today US$14.7 billion in extra government spending to support sluggish domestic demand, as President Lee Jae-myung makes economic recovery his top policy agenda. The supplementary budget plan totalling ₩30.5 trillion announced by the finance ministry includes ₩20.2 trillion (US$14.7 billion) of new spending to spur economic growth and support vulnerable sectors, while it will also make up for ₩10.3 trillion from an expected shortfall in tax revenue. The second extra budget of the year comes two weeks after Lee, who has vowed expansionary fiscal policy, won a snap presidential election on June 3 and less than two months since the first supplementary budget of 13.8 trillion passed in May. 'Economic conditions and difficulties in people's livelihoods are very serious, and this extra budget means government finances will play a little more active role,' vice finance minister Lim Ki-keun told a media briefing. South Korea's central bank last month slashed its economic growth forecast for this year to 0.8% from 1.5%, citing heightened uncertainty over US tariffs, as it lowered interest rates for a fourth time in its current easing cycle and signaled more rate cuts. Asia's fourth-largest economy unexpectedly contracted in the first quarter amid US President Donald Trump's sweeping tariffs and domestic political turmoil sparked by former President Yoon Suk Yeol's martial law decree in December. The biggest spending will be Lee's flagship policy of a universal cash handout scheme for consumers, providing ₩150,000-500,000 in vouchers to every citizen and totalling ₩10.3 trillion. Lee was one of the first to introduce a cash handout scheme in South Korea when he was mayor of Seongnam City, which was adopted nationwide several times during the COVID-19 pandemic under the previous liberal administration of Moon Jae-in, even as critics questioned the effectiveness of the policy. Other spending plans include financial support for the construction sector, investment in artificial intelligence as well as small and medium-sized enterprises, and debt restructuring programmes for small businesses. Out of the combined total of ₩30.5 trillion, ₩19.8 trillion will be financed by issuing additional treasury bonds, according to the finance ministry. The second extra budget will raise the country's fiscal deficit to 4.2% of gross domestic product (GDP) this year, up from the previous estimate of 3.3% after the first extra budget, and government debt to 49.0% of GDP, from 48.4%. The government will submit the proposal to parliament, controlled by the left-leaning ruling Democratic Party, on June 23.
The Australian
a day ago
- Business
- The Australian
David Crisafulli orders Verian, The Lab Insight and Strategy, Fifty-Five Five polling
You can now listen to The Australian's articles. Give us your feedback. You can now listen to The Australian's articles. David Crisafulli's department has quietly commissioned more than $650,000 in taxpayer-funded polling and market research in just five months, after he criticised former premier Annastacia Palaszczuk for doing the same thing. Government spending disclosures show Mr Crisafulli's Department of Premier and Cabinet ordered four tranches of 'market research' and 'concept testing' from polling and research companies The Lab Insight and Strategy, Verian Group, and Fifty-Five Five between December and April, at a total cost of $651,107. The Australian revealed ahead of the 2020 state election that Labor premier Ms Palaszczuk's department had spent $528,000 for Ipsos to do Covid-19 polling and market research. She refused to release the data. But in February last year, her successor, Labor premier Steven Miles, eventually published thousands of pages of research dating back to 2020. The Labor government ended up spending more than $1m surveying Queenslanders on issues such as youth crime, the Brisbane 2032 Olympics, the Indigenous voice to parliament and pandemic border closures. As opposition leader, Mr Crisafulli was highly critical of Ms Palaszczuk's decision to order the research and not release it. In parliament in November 2023, he accused the premier and her government of having the 'wrong priorities' and focusing on spending 'hundreds of thousands of dollars to try to secure its political future'. 'The premier always says that the only poll that matters is the one on election day. Why, then, would she spend hundreds of thousands of Queensland taxpayers' dollars to save her job today?' Mr Crisafulli said. 'Why do we have a government so focused on its own survival rather than on what Queenslanders are experiencing in their lives? 'Queenslanders are living with a health crisis, a youth crime crisis, a cost-of-living crisis and a housing crisis. This government's focus is on how it can get secret polling to try to save itself from facing its date with destiny.' During the Covid pandemic, then Queensland premier Annastacia Palaszczuk commissioned taxpayer-funded polling and market research but refused to release it. Picture: Dan Peled When Steven Miles succeeded Ms Palaszczuk as premier, he published the taxpayer-funded polling. Picture: Lyndon Mechielsen At the same time, Mr Crisafulli's LNP opposition moved a motion in parliament in an unsuccessful attempt to force Ms Palaszczuk to release the Ipsos polling. Then opposition integrity in government spokeswoman Fiona Simpson – now Mr Crisafulli's Minister for Women – said there was 'simply no justification for this secret polling to continue to be locked away from public view'. On Thursday, The Australian asked Mr Crisafulli's office to release the research, to commit to releasing any in-progress research once complete, and to detail the terms of reference for each contract, but was rebuffed. A government spokesman said 'concept development of policy campaigns and the development of their corresponding communication campaigns is a longstanding practice employed across the Queensland government, and is a vital step to ensure critical communications resonate with Queenslanders and is effective'. 'An example of this work undertaken by the Queensland government is the anti-bullying campaign, which engaged directly with parents, teachers and students to ensure anti-bullying messaging was as effective as possible in driving down bullying in schools,' he said. The spokesman did not answer questions about what methodology – such as focus groups – the market research companies were using, and declined to give a full list of what topics or policies were being canvassed with voters. In parliament in September 2021, opposition MP Laura Gerber – now Mr Crisafulli's Youth Justice Minister – called for the Palaszczuk government to release the pandemic-related polling and be 'open and accountable'. 'This is public money,' Ms Gerber said. 'At the very least, Queenslanders deserve to see what they got for their half a million dollars. Taxpayers deserve to see the results of the secret polling they paid for.' Sarah Elks Senior Reporter Sarah Elks is a senior reporter for The Australian in its Brisbane bureau, focusing on investigations into politics, business and industry. Sarah has worked for the paper for 15 years, primarily in Brisbane, but also in Sydney, and in Cairns as north Queensland correspondent. She has covered election campaigns, high-profile murder trials, and natural disasters, and was named Queensland Journalist of the Year in 2016 for a series of exclusive stories exposing the failure of Clive Palmer's Queensland Nickel business. Sarah has been nominated for four Walkley awards. @sarahelks Sarah Elks
South China Morning Post
5 days ago
- Business
- South China Morning Post
Why China's officials are braced for yet another round of inspections to check their work
Chinese officials already have to deal with a series of inspectors knocking on their doors to keep tabs on their activities, but now they will also have a new group of 'performance observers' looking over their shoulders to check that they are not wasting government funds. Local officials in China are often castigated for spending money on 'white elephants' , such as flashy construction projects, in the hope these will provide a quick fix for the local economy and win favour with their supervisors. But in recent years, as local government debts mounted, the central government has been trying to rein in such excesses, with President Xi Jinping saying officials should prioritise quality development over rapid growth. Several provinces have started pilot programmes in recent months, especially after the Communist Party gave its austerity campaign a further push in March in an effort to cut waste and improve administrative efficiency. Local officials already face a raft of inspections, covering areas such as party discipline, their conduct and the environmental impact of their work, but the emergence of the new performance observers may be the result of regional party bodies taking the initiative. Although the central government has called for wasteful spending to be eliminated nationwide, it has not issued a public decree calling for the new inspection teams.
Jordan Times
12-05-2025
- Business
- Jordan Times
Fitch rating: A certificate of the stability of the Jordanian economy
The Jordanian economy enjoys international financial support, a positive global reputation and ability to meet debt obligations, which prompted international credit rating agencies, including Fitch, to affirm Jordan's long-term foreign currency rating at -BB with a stable outlook. This stabilization confirms the creditworthiness of the Jordanian economy and indicates the confidence of international credit institutions in Jordan despite regional shocks and increasing geopolitical risks due to the continuation of the war in Gaza in addition to the financial pressures arising from the slowdown in the global economy in general. This rating is a positive sign of the improvement in the financial performance of the Jordanian economy and the improvement of growth opportunities despite the high levels of public debt and pressures resulting from unemployment, indicating that the confirmation of Jordan's credit rating came as a result of economic and financial stability, prudent government spending, reducing the budget deficit, high levels of foreign reserves and improving the level of financial and administrative reforms arising from the vision of economic modernization and strengthening governance. The rating is reinforced by the availability of financing for the local economy, the strength of the banking sector and the continued international support to the Kingdom, as Jordan has maintained its economic stability despite high public debt, limited growth, and high current account deficit. The growth rates in the Jordanian economy are still below the level of desire, as the Jordanian economy achieved a growth of 2.5 per cent in 2024 due to the decline in tourism revenues and the decline in intra-regional trade as a result of regional conditions, while credit rating agencies, including Fitch, expect economic growth in Jordan to improve from 2.8 per cent to 3 per cent by the years 25 and 26, supported by the recovery of European tourism, high trade rates with Iraq and Syria and the implementation of strategic projects such as the National Carrier. As such, the government is required to continue adopting innovative economic initiatives that contribute to the recovery of the local economy and supporting economic openness.
Daily Mail
10-05-2025
- Business
- Daily Mail
Fat cats housing asylum seekers rake in millions
Bosses of companies paid billions of pounds to arrange asylum seekers' hotels are in line for bumper pay rises. Their jackpots come as a report by Government spending watchdogs found asylum accommodation will cost taxpayers £15 billion over ten years, triple the first estimate. Lucas Critchley, boss of Mears, one of three firms given the lucrative contracts, could receive a maximum 100 per cent pay rise this year. The new head of Serco, Anthony Kirby, could take home double what his predecessor received in 2024. The third company, Clearsprings Ready Homes, is run by its majority owner, Essex businessman Graham King. It made a £91 million profit in 2023 and paid a £90 million dividend, according to its accounts. The National Audit Office (NAO) last week revealed Government spending on accommodation for asylum seekers arriving on small boats had ballooned out of control. The three firms were handed contracts to run asylum accommodation from 2019 to 2029. Clearsprings, covering Southern England and Wales, is set to receive £7.3 billion over the period, seven times the anticipated £1 billion when the contract was drawn up. Serco, covering the Midlands, East Anglia and the North-West, is in line for £5.5 billion, two and a half times a forecast £2.1 billion. Mears is set to be paid £2.5 billion for arranging accommodation in Yorkshire, the North-East, Scotland and Northern Ireland. The predicted cost was £1.4 billion. This could be a lucrative year for its boss, whose maximum pay is set at £1,336,000, including shares, long-term incentives and a bonus. Critchley, 43, answered the door at his large, Georgian home on a winding country lane in Essex, but did not comment. Serco, which handles a swathe of public sector contracts, appointed Kirby, 44, in March. He is to receive a base salary of £845,000, but his total package for this year could reach £4.08 million including bonus, long-term incentives and pension. He has been contacted for comment. The NAO said asylum accommodation in 2024-25 alone was £1.67 billion, with hotels accounting for 76 per cent of this. The auditors said asylum hotels 'may be more profitable' for the companies than other types of housing. Clearsprings is by far the biggest earner of the three, receiving nearly half of the entire £15.3 billion projected cost from its contract for southern England. Its boss, King, 57, started out running a caravan park on Canvey Island. He has a personal fortune of £750 million and is set to become the first 'immigration industry' billionaire. The tycoon, who split from his wife and was later with a glamorous Latvian businesswoman, Lolita Lace, 39, could not be reached for comment. A neighbour of Clearsprings' finance chief, Randle Slatter, told The Mail on Sunday about how he was invited to a party at the director's house in Hornchurch, Essex, where 'we were all saying what we did'. 'Randle said 'you're not going to like what I do', and then he explained, and I didn't,' the neighbour said. 'I don't think we should be spending all that money on hotels. We should put them all on an island and process them there.' Clearsprings' accounts show its turnover rose to £1.74 billion in 2024 from £1.29 billion in 2023. The Commons' Home Affairs Select Committee is due to question directors from Clearsprings and Serco this week. Downing Street has concluded the policy of housing asylum seekers in hotels has fuelled the recent surge in support for Reform. Mears said board pay reflected performance across the company's activities, and that profit on the asylum seeker contract was at a 'low margin' of 6 per cent. Serco said its chief executives have earned on average 53 per cent of the maximum available – and that asylum contracts make up 'a small part' of its £5.3 billion annual revenue. Clearsprings has been approached for comment.
