KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
The Malaysian government’s RM421 billion Budget 2025 signals a transformative approach to economic growth, emphasizing the well-being of the rakyat over costly mega-projects. Prime Minister Datuk Seri Anwar Ibrahim’s Ekonomi Madani framework aims to address inefficiencies, uplift living standards, and create an inclusive society while fostering sustainable growth.
Key Pillars of Budget 2025
- Raising the Ceiling: Boosting national productivity through high-value investments.
- Raising the Floor: Enhancing social security and living standards.
- Strengthening Governance: Improving fiscal discipline and transparency.
Driving High-Value Investments
Budget 2025 focuses on attracting investments in sectors such as:
- Electrical and electronics (E&E)
- Green industries
- Semiconductors
Initiatives include:
- New investment incentives (3Q2025).
- Expanded export tax incentives for integrated circuit (IC) design.
- Tax deductions for AI, robotics, and FinTech courses.
Strategic projects like the Johor-Singapore RTS and the Kulim Hi-Tech Park aim to bolster connectivity and establish Malaysia as a regional investment hub. These efforts align with Malaysia’s digital infrastructure push and its goal of achieving net-zero emissions by 2050.
Relieving the Rakyat’s Burden
Targeted subsidies and expanded public services remain central to the government’s efforts. Key initiatives include:
- Increased health infrastructure spending (RM1.35 billion).
- Expanded and improved public transport (RM273 million for buses, RM1.6 billion for road upgrades).
- Higher minimum wage: RM1,700 effective February 2025.
- Financial aid programs: RM13 billion for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA).
Ensuring Fiscal Discipline
Budget 2025 focuses on reducing the deficit from 5% to 3.8% by 2025. Measures include:
- Transition to targeted subsidies, starting with RON95 petrol in mid-2025, projected to save RM8 billion.
- Expanding the sales and services tax (SST) to generate an additional RM5 billion.
- Promoting public-private partnerships (PPP) for infrastructure projects, reducing reliance on public funds.
Development Spending for the Future
Despite fiscal constraints, Malaysia commits RM120 billion for development projects in 2025, reflecting a balance between discipline and growth.
With inclusive policies and a focus on innovation, Malaysia positions itself for sustainable progress while uplifting its citizens.
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