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BusinessToday
29 minutes ago
- Business
- BusinessToday
Anwar: Malaysia Targets 3.8% Fiscal Deficit In 2025
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced that Malaysia is targeting a fiscal deficit of 3.8% of GDP in 2025 from 4.1% in 2024. Speaking at the Finance Ministry's monthly assembly, Anwar said the government's steady deficit reduction is part of a broader effort to build a more sustainable economy and boost investor confidence. 'Fiscal discipline is not about cutting support for the people. It's about creating the conditions for long-term growth, jobs and stronger public finances,' he said. Anwar also noted a reduction in government debt from RM100 billion in 2022 to RM85 billion in 2024, with a projected drop to RM80 billion this year. He emphasised that resolving the country's debt burden is a gradual process that requires consistency and patience. Rejecting claims that fiscal consolidation comes at the expense of public welfare, Anwar said sound economic management is essential to ensuring future stability and prosperity. The move comes amid Malaysia's push to attract investment and strengthen its economic fundamentals, reflected in improved global competitiveness rankings and renewed investor interest. Related
BusinessToday
29 minutes ago
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- BusinessToday
Commentary: Growing Foreign Reserves And What it All Means
Malaysia's central bank, Bank Negara Malaysia (BNM), recently reported an increase in its international reserves, reaching USD119.6 billion as of May 30, 2025, up from USD119.1 billion just two weeks earlier. This modest growth in foreign reserves signals positive developments in Malaysia's economy, reflecting its resilience in navigating global economic challenges. It highlights the country's ability to manage external pressures and provides a buffer against potential financial shocks. However, the key question remains: what does this mean for the everyday citizens? How can we interpret this trend as a sign of a strengthening economy, and how does it translate into tangible benefits for the people? Why Our Money Pile is Growing? One main reason our reserves are increasing is that Malaysia is selling more goods to other countries than it buys. For example, in April 2025, Malaysia sold RM10.5 billion more in goods than it bought, especially in electronics and gas. When we export a lot, more foreign money comes into the country. This extra foreign currency is then kept by BNM as part of its reserves. This shows Malaysia's strength in making and selling important products worldwide. Another big factor is that foreign investors are putting their money into Malaysian government bonds. These bonds offer better returns compared to those in countries like the U.S. or Japan, where interest rates might not be as good anymore. In May 2025 alone, foreign investors brought in RM2.6 billion. When these investors bring in foreign money and convert it to Ringgit to buy our bonds, it directly adds to BNM's foreign currency reserves. This trend highlights that investors trust Malaysia's economy. What This Extra Money Means for Malaysia? Having USD119.6 billion in reserves is a big deal. It means Malaysia has enough foreign money to pay for about 5 months of imported goods and services. This is well above the recommended 3 months by the IMF, a global financial body. This cushion helps Malaysia if import prices go up or if global trade faces problems. Also, these reserves are almost equal to our short-term foreign debts (0.9 times), showing that we don't rely too much on quick foreign loans to run our economy. This strong position makes us less vulnerable to sudden money outflows. Our reserves are also made up of different types of assets, which gives BNM more flexibility. Most of it, USD106.4 billion, is in foreign currencies. We also have USD5.8 billion in Special Drawing Rights (a type of international money from the IMF) and USD3.8 billion in gold. Having this mix of assets helps BNM act fast if there's a global money crisis or if a lot of foreign money suddenly leaves the country. It means BNM has many options to handle financial pressures. Impact on the Ringgit and Economic Policy This steady increase in our foreign reserves suggests that the Malaysian Ringgit might become more stable after being a bit weak. When investors worldwide see Malaysia has strong reserves and can attract foreign money, it makes them see Malaysia as a safe and attractive place among growing economies. This improved perception could boost confidence in the Ringgit, making its value more steady and potentially stronger against other major currencies. If our reserves keep growing, it means BNM will have more room to make decisions about our economy. For instance, BNM might be able to slightly lower interest rates if needed, without worrying too much about the Ringgit losing value or losing trust from investors. This flexibility is very important in today's uncertain global economy, allowing BNM to support Malaysia's economic growth without risking financial stability. Our 'Economic Shield' in a Shaky World Essentially, this rise in Malaysia's international reserves is more than just a number. It's a vital 'economic shield' that gives Malaysia significant power and freedom in managing its money and economy. In a world full of unclear interest rates, political tensions, and unpredictable supply chains, having a big financial buffer is extremely important. This 'shield' helps Malaysia handle unexpected global problems, like a sudden economic slowdown or a quick exit of foreign money, by lessening their impact. It also keeps investors confident, as they know BNM has the resources to protect the Ringgit and keep the financial system stable. Plus, strong reserves allow BNM to support economic growth when necessary, without being held back by a weak financial position. Overall, these strong reserves show Malaysia's smart economic planning and its ability to deal with global financial challenges. Conclusion As a conclusion, the growth in Malaysia's international reserves to USD119.6 billion is unequivocally a positive signal, extending beyond mere financial figures. For the average Malaysian, this translates into tangible benefits, a more stable Ringgit means greater purchasing power for imports and overseas travel, while reduced inflation helps stretch household budgets. Furthermore, these robust reserves act as a crucial national safety net, safeguarding jobs and businesses during global uncertainties and bolstering confidence in our financial system. Ultimately, this increased 'economic shield' empowers BNM to maintain stability and foster sustainable growth, directly enhancing the economic well-being and security of all Malaysians in a volatile global landscape. By Dr. Shahrul Azman Abd Razak Researcher and Islamic Finance Consultant Kuala Nerang, Kedah Related
BusinessToday
44 minutes ago
- Business
- BusinessToday
Govt Must Adopt Four Critical Measures To Safeguard The Public As Electricity Tariff Concerns Mount
As news heats up over impending electricity tariff hikes in the second half of the year, it's no surprise that many Malaysians feel uneasy. Recognising that rising costs confront energy companies, thanks to global price fluctuations, the worsening climate crisis and the need to invest more in renewable energy. But even so, any changes that directly affect people's daily lives must be handled with transparency, fairness and careful planning. While the short-term impact might not hit low-income families too hard straightaway, rising bills will eventually take a toll. For many households already struggling to make ends meet, higher electricity costs could be the tipping point, forcing them to cut back even more. That's not the kind of pressure families should be facing. Moreover, small and medium enterprises (SMEs) will bear the brunt of this increase. These 'economic giants in miniature' are the backbone of our national economy; hence, if their operating costs rise due to higher electricity charges, they will be forced to pass the burden onto consumers, triggering inflation and eroding the purchasing power of ordinary Malaysians. This, in turn, threatens the very foundation of our economy. It is irrefutable that energy reform is necessary and inevitable. But it shouldn't come at the expense of ordinary Malaysians. Hence, the government needs to take four key steps to help people and businesses manage these changes: Explain the rationale and intended use of the tariff increase: The public must be assured that the hike is not arbitrary but is directed towards upgrading infrastructure and accelerating the green transition. People need to see the value of this change. Expand electricity subsidies: While the bottom 40% income group must continue to be protected, support should also be extended to the middle 40% income group, who are increasingly feeling the pressure of the rising cost of living. Strengthen energy-saving and carbon reduction education: By cultivating a nationwide culture of energy efficiency, we can help Malaysians adjust their consumption habits and soften the blow of rising tariffs. Support SME transformation: Temporary subsidies or tax relief should be provided to help businesses through the transitional phase, preventing disruptions that could stall our economic engine. Switching to cleaner energy is a long journey, and we all have a role to play. But citizens shouldn't be left to bear the burden alone. Energy transition is a long-term battle that should not be fought on the backs of the people alone. The government needs to demonstrate greater empathy and forward-thinking leadership. As we pursue long-term national goals, we must not lose sight of the immediate need to protect the welfare and stability of our people. The above commentary is by MCA Deputy President Datuk Dr Mah Hang Soon Related
BusinessToday
3 hours ago
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DOSM Report Shows Ramadan Bazaars Drove RM3.2 Billion In Sales, 280,000 Jobs In 2025
Malaysia's vibrant Ramadan and Aidilfitri bazaars generated an impressive RM3.2 billion in total sales and engaged 281,876 workers in 2025, according to a report released today by the Department of Statistics, Malaysia (DOSM). The 'Report on Statistics Ramadan & Aidilfitri Bazaars 2025' highlights a notable improvement in performance compared to 2023. The total sales value for both bazaars in 2025 rose by 12.9% from RM2.5 billion in 2023. This growth was accompanied by a 17.6% increase in the number of persons engaged, underscoring the significant economic activity and local entrepreneurship fostered by these festive markets. The DOSM survey, conducted from March 2 to March 30, 2025, covered bazaars registered with Local Authorities (LAs) nationwide. State and District Highlights Selangor emerged as the top-performing state, recording the highest combined sales value of RM0.7 billion and engaging 38,811 persons. Johor followed with RM0.5 billion in sales and a leading 44,525 persons engaged, while W.P. Kuala Lumpur registered RM0.4 billion in sales with 16,142 persons engaged. Collectively, these three states contributed 47.5% of the total national sales value for Ramadan and Aidilfitri bazaars. At the administrative district level, Johor Bahru recorded the highest combined sales value at RM261.1 million, surpassing Petaling (RM184.7 million) and Gombak (RM122.0 million). Ramadan Bazaar Performance Specifically, Ramadan bazaars contributed RM2.6 billion in sales in 2025, reflecting a positive growth of 14.9% compared to 2023. Selangor led state-level sales for Ramadan bazaars at RM558.0 million, followed by W.P. Kuala Lumpur (RM361.9 million) and Johor (RM331.5 million). Petaling district topped the Ramadan bazaar sales with RM163.9 million. The number of persons engaged in Ramadan bazaars also saw a sharp increase of 18.7% to 241,379. Johor registered the highest number of persons engaged at 37,415, while Johor Bahru district led with 21,295 workers. Aidilfitri Bazaar Performance Aidilfitri bazaars also performed well, with total sales increasing by 5.1% to RM0.6 billion compared to RM0.5 billion in 2023. Johor led state-level sales for Aidilfitri bazaars with RM144.3 million. Johor Bahru district again recorded the highest sales at RM99.0 million. The number of persons engaged in Aidilfitri bazaars increased by 12.0% to 40,497, with Johor recording the highest number at 7,110 persons. Vendor Satisfaction and Food Waste Management A survey conducted by DOSM indicated high satisfaction among Ramadan and Aidilfitri bazaar vendors: 83.0% were satisfied with the bazaar locations. were satisfied with the bazaar locations. 70.5% were satisfied with promotional activities by organizers. were satisfied with promotional activities by organizers. 69.3% were satisfied with traffic control measures. were satisfied with traffic control measures. 73.2% expressed satisfaction with visitor turnout. In a commendable effort to reduce food waste, 56.0% of Ramadan Bazaar vendors reported offering discounted prices to minimize surplus. Furthermore, 77.3% expressed willingness to donate unsold food to selected institutions, and 84.2% were open to sharing excess food with fellow vendors. Systematic food waste management also saw 3.9% of vendors channeling surplus to processing factories, 6.2% collecting for organic composting, and 7.4% utilizing recycling methods for leftovers. These findings highlight the continuous efforts by vendors and organizers to improve both the economic and operational aspects of these culturally significant bazaars. Related
BusinessToday
6 hours ago
- Business
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Blue Chips Lift KLCI On Midday, Broader Bursa Drags
Bursa Malaysia's benchmark index edged higher at midday, supported by selective buying in blue chips despite mixed sentiment across the broader market. At 12.35pm, the FBM KLCI rose 3.35 points to 1,504.79, recovering from an intraday low of 1,500.04. The index touched a high of 1,505.16 earlier in the session, marking a modest 0.22% gain. The FBM Emas also posted a slight increase of 8.71 points to 11,232.45, while the FTSE4Good Bursa Malaysia Index (F4GBM) rose 0.99 points to 908.41. However, the broader market showed signs of cautious trading. The FBM 70 slipped 22.66 points to 16,070.79, and the FBM ACE dipped 33.46 points to 11,199.43. Among actives, PUC emerged as the most traded stock, gaining 0.005 sen to 2.5 sen on a volume of 825.6 million shares. Astro fell 1.5 sen to 16 sen with 162.5 million shares traded, while Pavilion REIT declined 2 sen to RM1.52 on 125.6 million shares. Market activity reflected cautious optimism as investors digested global cues ahead of key economic data releases. Related
