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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona

South Korea to Tighten Fiscal Discipline in 2025 Amid Economic Challenges

South Korea's government has announced plans to increase budget spending to US$510 billion for 2025, marking a cautious approach to fiscal expansion as the country grapples with an aging population and slowing economic growth. The budget, detailed by the finance ministry, reflects a commitment to fiscal discipline under the conservative Yoon Suk Yeol administration, which has prioritized improving the nation's fiscal position since taking office.

Key Takeaways:

  1. Moderate Spending Increase: The government has set its total expenditure for 2025 at 677.4 trillion won (US$510.5 billion), a 3.2% increase from 2024. While this represents a slight increase compared to the 2.8% rise in 2024, it falls short of the previously projected 4.2% growth for 2025. This modest increase underscores the administration's focus on fiscal sustainability, particularly in the face of long-term challenges like an aging population and sluggish economic growth.

  2. Focus on Fiscal Responsibility: The Yoon administration continues to prioritize fiscal responsibility, with plans to reduce the fiscal deficit from 3.6% of GDP in 2024 to 2.9% in 2025. However, the debt-to-GDP ratio is expected to rise to 48.3% from 47.4%. Despite these efforts, the government is also planning to increase spending in critical areas, including social welfare, defense, and research, with a notable 11.8% increase in research funding to support sectors like the semiconductor industry.

  3. Economic Outlook and Legislative Challenges: South Korea's economy is forecasted to grow by 2.6% in 2024 and 2.2% in 2025, following a 1.4% expansion in 2023, its slowest in three years. The government's budget plans, which include substantial public housing projects and support for corporate investment in key industries, will need to navigate the political landscape, as the national assembly, currently controlled by the opposition, will have the final say on the budget's approval.

In summary, South Korea's 2025 budget reflects a careful balance between necessary fiscal expansion and the need for long-term sustainability, with the government aiming to address economic challenges while maintaining fiscal discipline.

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