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Russia Holds Key Rate at 21% Amid Surging Inflation

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

Malaysia Budget 2018 Highlights

* Najib: Malaysia has created 2.26 million jobs, representing 69% of the 3.3 million target by 2020

* Budget 2018 allocates a sum of RM280.25b, up from RM260.8b in 2017

* Per capita income expected to rise to RM42,777 in 2018, from RM40,713 now, says PM

* Federal government's revenue collection projected at RM239.86b in 2018

* Budget 2018 to see RM234.25 billion allocated for operating expenditure, RM46 billion for development expenditure

* Additional RM200m allocated to Amanah Ikhtiar Malaysia in Budget 2018, raising fund size to RM2.7b

* Budget 2018 allocates RM6.5b to assist farmers, fishermen, smallholders and rubber tappers

* Budget 2018 allocates RM200m to SMEs for training programmes, grants and soft loans under the SME Corp

* Najib declares 2020 as Visit Malaysia Year with APEC, WCIT, CHOGM being held

* Najib: Works on ECRL to start by January 2018

* Budget 2018 allocates RM2b to SME Tourism Fund to provide soft loans to tour operators with interest subsidy of 2%

* Najib: Listing Pulau Pangkor as tax free island, except for alcohol, cigarettes, motor vehicles

* Najib: New airport in Tioman is being planned

* Penang International Airport and Langkawi International Airport to be upgraded

* Upgrade of international airports in Penang, Langkawi, Kota Baru, Sandakan with new airport in Mukah

* Najib: Alternative trading system will be introduced

* Feasibility study to be conducted for the building of a bridge from Labuan to mainland Sabah

* Construction of MRT3 to be expedited, with completion by 2025 instead of targeted 2027

* BNM to monitor payments of salaries to foreign workers (except maids) via accounts registered with local banks

*  MRT2 project to cost about RM32b, says Najib

*  Amanah Dana Anak Malaysia 2050 — Malaysian child born between Jan 1 2018 to 2022 to be awarded starting fund of RM200 via Amanah Saham PNB Units

* Tax incentives for new four- and five-star hotel investments extended until Dec 31, 2020

* Govt to build 14 sports complexes in the country at cost of RM112m

* RM61.6b allocation for education sector in 2018. Malaysia's education expenses is twice as high than that of other countries in Asean on average

* Govt aid of RM100 for students from low-income families continues in 2018, with RM328m allocation which will benefit 3.2 million students

*  RM550m allocation for the maintenance and upgrading of schools in 2018

* PTPTN discounts until Dec 31, 2018: 20% discount for full settlement, 15% discount for 50% outstanding settlement, 10% through direct debit from salary

* RM4.9 billion allocated for TVET Malaysia Plan

* Najib: MRT is a ‘success story’ as it was completed ahead of time and RM2b less than originally projected

* Exemption of stamp duty on contract note for transaction of Exchange Traded Fund and Structured warrant over three years from Jan 2018 onwards

* Budget 2018: RM6.5b allocation for rural development

* RM300m to be allocated for National Blue Ocean Shift, including for the building of new Urban Transformation Centres

* Over RM14b to be allocated for the Malaysian Armed Forces, of which close to RM9b for the Royal Malaysian Police and RM900m to the Malaysia Maritime Enforcement Agency

* Najib: To increase equity holdings and investment in strategic sectors, RM150m to be allocated to Pelaburan Hartanah Bhd and RM150m to Ekuinas

* Najib proposes that private sector increase paid maternity leave for employees from 60 days to 90 days, to be in line with the public sector

* 12-month income tax exemption for women returning to workforce (after minimum 2-year break) proposed

* Personal income tax cut for all 2.3m tax payers, with 2% cut in the RM20,000 to RM70,000 tax income bands

* BR1M to continue in 2018, with 7 million BR1M recipients to receive a maximum payout of RM1,200 each in 2018

* Toll collection on Federal Highway (at Batu Tiga, Shah Alam and Sungai Rasau, Selangor); Bukit Kayu Hitam (Kedah) and Eastern Dispersal Link (Johor) abolished from Jan 2018

* Civil servants to get RM1,500 special payment: RM1,000 in early-Jan 2018 and remaining RM500 towards Hari Raya 2018

* Special payment of RM750 for pensioners in 2018

* RM2.5 billion allocated for MARA higher education scholarships, which is the highest ever allocation and to benefit 90,000 students

* Government retirees to receive RM750 special payment each: RM500 to be paid in January 2018 and remaining RM250 towards Hari Raya next year

* 50 Kedai Rakyat 1Malaysia outlets to be transformed to KRIM 2.0 in 2018, with 3,000 outlets set up within 3 years

* Domestic helpers can now be sourced directly from country of origin or online with Immigration Dept, at existing levy and processing fee rates

* Tax exemption on 50% of home rental income up to RM2,000 per month to Malaysians residing in Malaysia. Exemption given from Year Assessment 2018 to 2020

* Cost of hiring foreign domestic helpers to be reviewed, with a view on reducing it in future

* To encourage more affordable housing, Step Up Financing Scheme for PR1MA homes to be extended to private developers, based on criteria to be set

* RM27b allocation for healthcare, of which RM1.4b to maintain and upgrade facilities, RM50m for Voluntary Health Insurance Scheme

* RM1.5b allocated for PR1MA over two years to build 210,000 housing unit priced under RM250,000 per unit

* No GST for reading materials, including magazines, comics and journals, from Jan 1, 2018

* GST exemption for O&G firms that import rigs, floating structures from Jan 1

* RM5b to be allocated under Green Technology Financing Scheme to boost green technology investments

* Capital allowances on ICT equipment to be eligible for full claims between 2018 and 2020

* Civil servants who retire early due to health reasons to get retirement benefits similar to their retired counterparts


Source: The Edge

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