KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
Hong Kong's Fiscal Plan & Economic Adjustments
- Hong Kong government to cut 10,000 civil servant jobs over the next two years, freezing public sector wagesto curb spending.
- Financial Secretary Paul Chan announced a focus on economic integration with China, aiming to drive growth amid property market struggles and trade uncertainty.
- New spending cuts include a 7% reduction in regular expenditures over three years due to declining land sales revenue.
Property Market & Stimulus Measures
- Stamp duty reduction for homes valued up to HK$4 million (previously HK$3 million).
- Developer stocks surged:
- China Overseas Land & Investment (+8.4%)
- Sun Hung Kai Properties (+3.1%)
- Hang Seng Index jumped 4.1%, hitting a three-year high on market optimism.
Innovation & Revenue Generation Efforts
- HK$1 billion pledged to an AI research center to promote innovation.
- HK$10 billion fund created to invest in emerging industries.
- Exploring regulated basketball betting to convert illegal gambling revenue (HK$90 billion) into taxable income.
- Increasing air passenger tax from HK$120 to HK$200 and reviewing tunnel tolls/traffic fines.
Economic Outlook & Risks
- Hong Kong’s budget deficit for 2025 projected at US$87.2 billion, exceeding earlier estimates.
- GDP forecasted to grow 2%-3%, slightly above last year's 2.5% growth.
- Sluggish consumer spending & property downturn remain major economic headwinds.
- Northern Metropolis project to move forward, with land tenders for pilot sites starting later this year.
Summary:
- Hong Kong will cut 10,000 government jobs and trim spending to stabilize its economy.
- Property sector gets a boost from lower stamp duties, lifting developer stocks.
- New AI and industrial investments announced, but fiscal constraints limit stimulus options.
- Revenue-boosting measures include new taxes, betting regulation, and infrastructure projects.
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