MONEY MASTER

The government will keep the  Sales and Services Tax (SST)  revenue threshold for construction services at  RM1.5 million , rejecting industry appeals to raise it to RM3 million, Deputy Works Minister  Datuk Seri Ahmad Maslan  told the Dewan Rakyat. Ahmad said the current threshold is  “appropriate” , ensuring that  small-scale contractors with project values below RM1.5 million remain unaffected . He added that the government had communicated the July 1 implementation timeline early to allow industry players to prepare. “There has been no discussion to raise the threshold, and I do not foresee it happening. At this point, the RM1.5 million threshold is sufficient,” Ahmad said. Under the revised policy, a  6% SST  applies to construction service providers whose taxable revenue exceeds RM1.5 million within any 12-month period. Exemptions include residential buildings, public amenities within residential developments, religious facilities, publ...

Malaysia’s inflation outlook continues to soften, with OCBC Bank revising its  2025 headline CPI forecast down to 1.5% , from an earlier 2.0%, following a softer-than-expected June reading. Key Highlights: June 2025 Inflation : Headline inflation eased to  1.1% YoY , down from 1.2% in May and below consensus expectations. Core Inflation : Held steady at  1.8% YoY . Deflationary Pressure : Transportation inflation slowed to  0.3% , while communication services saw deeper deflation at  -5.4% . Flat Categories : Food, utilities, education, and insurance inflation remained unchanged. What’s Driving the Forecast Revision? OCBC’s downward revision is attributed to: Weaker-than-expected H1 inflation  (1.4% average). Unlikely near-term rationalisation of RON95 fuel subsidies , which were previously expected to rise 20–25% by October. Economic Outlook: With GDP growth expected to  moderate to 3.5% YoY  in H2 2025 (vs. 4.4% in H1), and inflation staying sub...

Malaysia’s exports fell  3.5% year-on-year  in June, marking the second consecutive month of contraction, as a steep drop in petroleum product shipments offset gains in electronics and agriculture.   June exports : Totalled  RM121.7 billion  (~$28.7 billion) Fell  3.9%  month-on-month Down from  -1.1% YoY  in May Key Drivers of Export Decline : Petroleum products :  -28.1% YoY  to RM8.38 billion Shipments to China  (Malaysia’s top trade partner):  -9.3% YoY  to RM14.84 billion Offsetting Gains : Electronics & electrical products  (over ⅓ of exports):  +1.3% YoY  to RM53.95 billion Palm oil & related products :  +24.7% YoY  to RM6.93 billion Imports : Rose  1.2% YoY  to  RM113.1 billion Driven by capital and consumption goods Purchases of intermediate goods declined Trade Surplus : RM8.6 billion , down  40.1% YoY Summary : June’s trade data highlights weakening globa...

Malaysia has launched a new chip design hub in Selangor, marking a significant step forward for the country's semiconductor industry. Here's what you need to know: Key Points: Boosting Local Capabilities: The new hub aims to improve Malaysia's chip design skills, moving beyond traditional testing and packaging to more advanced and valuable activities. Growing Demand: As the need for data centers increases, so does the demand for semiconductors. Malaysia plans to design its own chips, reducing dependence on foreign designs. Strategic Partnerships: The Malaysia Semiconductor IC Design Park has partnered with major industry players like Cadence Design Systems Inc and Arm Holdings Plc. This hub is strategically located in Puchong, near Kuala Lumpur. Regional Impact: Malaysia is already a key player in the global semiconductor supply chain, hosting facilities for Intel, GlobalFoundries, and Infineon. The new hub will further strengthen its position. Investment in the Future:...

Malaysia's manufacturing sector experienced a slight moderation in July due to muted demand conditions, according to S&P Global Market Intelligence. Key Points: PMI Reading: The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI) dipped to 49.7 in July from 49.9 in June, indicating a slight decline in the sector's health. Demand Conditions: There were slowdowns in new orders, output, employment, and stocks. However, firms reported firmer conditions overseas, leading to increased new export orders. Input Costs and Prices: Input cost inflation edged higher to an eight-month high, resulting in the steepest rise in output prices since September 2022. GDP Impact: The PMI and GDP data suggest continued growth in the second quarter of 2024, though with a slight slowdown in manufacturing production on an annual basis. New Orders: Eased for the first time in three months due to weak domestic demand, although the reduction was slight. Inter...

The Department of Statistics Malaysia (DOSM) reported that the manufacturing sector's gross output value surged to RM1.89 trillion in 2022, reflecting a 7.5% annual increase since 2015. This significant growth was primarily driven by the petroleum, chemical, rubber, and plastic products sub-sector, which saw an increase from RM299.1 billion in 2015 to RM579.6 billion in 2022. Key Takeaways: Overall Growth: Gross output value in the manufacturing sector grew by 7.5% annually to reach RM1.89 trillion in 2022. The petroleum, chemical, rubber, and plastic products sub-sector was a major contributor, growing to RM579.6 billion. Sub-Sector Performance: The electrical, electronic, and optical products sub-sector saw a 29.6% share, increasing to RM560.7 billion from RM321.18 billion in 2015. These sub-sectors benefited from heightened global demand for medical supplies and electronic devices during the Covid-19 pandemic. Manufacturing Establishments: The number of manufacturing establishme...