KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
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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