KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Rationalisation of subsidies is part of the government’s initiative to decrease annual borrowing to RM86 billion in 2024, from RM93 billion in 2023 and RM100 billion in 2022, said Prime Minister Datuk Seri Anwar Ibrahim.
Key Takeaways:
- Reduction in Borrowing: The government aims to reduce yearly borrowing to RM86 billion in 2024, from RM93 billion in 2023 and RM100 billion in 2022.
- Comprehensive Effort: Subsidy rationalisation is part of a broader effort to reduce borrowing, including tackling corruption, improving law enforcement, and enhancing taxation efforts.
- Focus on Prudent Spending: The government plans to ensure prudent spending, avoid waste, and borrow only for development purposes.
- Diesel Rationalisation: Currently, the government is focusing on mitigating diesel rationalisation and has not yet addressed the implementation of RON95 subsidy rationalisation.
- Economic Impact: Anwar emphasized the importance of subsidy rationalisation for increasing government revenue and preventing debt growth.
- Debt Management: The government's debt-to-GDP ratio stands at 64%, which Anwar stated is too high and exceeds the proper limit.
- Future Investment: Anwar noted that continued irresponsible fiscal policies could hinder investment and economic growth, despite Malaysia's projected GDP growth of 5.8% for the second quarter of 2024.
Prime Minister Anwar Ibrahim, also the Finance Minister, outlined these initiatives during his keynote address at the National Tax Conference 2024 in Kuala Lumpur. Deputy Finance Minister Lim Hui Ying, Treasury secretary-general Datuk Johan Mahmood Merican, and Inland Revenue Board Malaysia (LHDN) CEO Datuk Dr. Abu Tariq Jamaluddin were also present. Anwar stressed the need for public understanding and support in implementing these measures to ensure Malaysia's fiscal stability and growth.
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