MALAYSIA BUDGET 2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Equity-market related - Dividend Tax
The government plans to progressively broaden the tax base by introducing a 2% dividend tax on dividend income exceeding RM100k received by individual shareholders, starting from the assessment year of 2025. This initiative is being implemented to ensure that income tax collected does not solely rely on contributions from wage earners but also includes contributions from company owners and individuals with million-ringgit shareholdings.
____________
Construction Sector Flash Update 🏗️
Key Takeaways from Budget 2025
- As anticipated, nothing significant/share-price moving catalysts for the construction sector from Budget 2025.
- Firstly, government’s development expenditure shrank from RM90b (Budget 2024) to RM86b; -4.4%.
- That said, including RM9b Private Finance Initiatives (PFIs) and RM25b direct domestic investment from GLICs, public development expenditure for 2025 will be RM120b.
- Notably, Prime Minister Anwar highlighted that it’s not time for massive mega-projects roll-out yet (as we pointed out earlier), and government will be focusing more on social infrastructure or developments for key industrial areas (by states).
- Some notable projects highlighted were i) Johor-SG RTS (commencing operation in 2027); ii) expansion of Kulim Hi-tech park Kedah (to cater for semicon players like Infineon); iii) Penang LRT; iv) Penang Airport Expansion.
- No MRT3, Johor LRT/ART mentioned…
- Just a bit on flood mitigation projects, including Sungai Kelantan Phase 2 and Sungai Damansara. Out of 33 projects which was earlier estimated to be worth RM11.8b?
- To add on, development expenditure for Sabah and Sarawak are raised to amongst the highest within states at RM6.7b & RM5.9b (2024: RM6.6b & RM5.8b).
- Pan Borneo Phase 1B project already doled out 17 packages worth RM9.7b earlier, while Sabah - Sarawak Link Road (SSLR) phase 2 worth RM7.4b in total will announce another 2 packages around year end.
Summary 🌟:
Nothing meaningful, mega projects doesn’t seem to be government’s current focus, except selected fews like Penang LRT, Johor RTS and Pan Borneo 1B. Hopefully more momentum on mega-projects roll-out after potential removal of Ron 95 subsidies(in phases) in mid-2025.
____________
Gaming Sector Flash Update 🎰
Key Takeaways from Budget 2025
- No takeaways as nothing mentioned on gaming in Budget 2025.
- No gaming tax hike, No higher tax, No special draw cuts (for NFOs).
- This is however, positive to the sector as concerns on further detrimental policies from the government on gaming companies to increase tax base are allayed.
- Given that sector is already trading at depressed valuations, sentiment may re-rate especially lush dividends for gaming companies are usually backloaded to 2H24.
____________
Property Sector Flash Update 🎰
Key Takeaways from Budget 2025
- Mostly extension from previous budget on affordable housing scheme like RM900m allocated for Residensi Rakyat Programs (PRR) and Rumah Mesra Rakyat projects, Government guarantees RM12.8b for housing loans, helping over 57,000 first-time homebuyers, with an additional RM10b planned for further financing.
- No mention of LRT/ART Johor or JSSEZ incentives details
- No mention of housing grant as what we expected
- The only key item for property sector is property tax relief. Tax relief on interest payments for homes valued up to RM500,000 (up to RM7,000) and homes between RM500,000 and RM750,000 (up to RM5,000), available for three consecutive years.
____________
#MalaysiaBudget2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Equity-market related - Dividend Tax
The government plans to progressively broaden the tax base by introducing a 2% dividend tax on dividend income exceeding RM100k received by individual shareholders, starting from the assessment year of 2025. This initiative is being implemented to ensure that income tax collected does not solely rely on contributions from wage earners but also includes contributions from company owners and individuals with million-ringgit shareholdings.
____________
Construction Sector Flash Update 🏗️
Key Takeaways from Budget 2025
- As anticipated, nothing significant/share-price moving catalysts for the construction sector from Budget 2025.
- Firstly, government’s development expenditure shrank from RM90b (Budget 2024) to RM86b; -4.4%.
- That said, including RM9b Private Finance Initiatives (PFIs) and RM25b direct domestic investment from GLICs, public development expenditure for 2025 will be RM120b.
- Notably, Prime Minister Anwar highlighted that it’s not time for massive mega-projects roll-out yet (as we pointed out earlier), and government will be focusing more on social infrastructure or developments for key industrial areas (by states).
- Some notable projects highlighted were i) Johor-SG RTS (commencing operation in 2027); ii) expansion of Kulim Hi-tech park Kedah (to cater for semicon players like Infineon); iii) Penang LRT; iv) Penang Airport Expansion.
- No MRT3, Johor LRT/ART mentioned…
- Just a bit on flood mitigation projects, including Sungai Kelantan Phase 2 and Sungai Damansara. Out of 33 projects which was earlier estimated to be worth RM11.8b?
- To add on, development expenditure for Sabah and Sarawak are raised to amongst the highest within states at RM6.7b & RM5.9b (2024: RM6.6b & RM5.8b).
- Pan Borneo Phase 1B project already doled out 17 packages worth RM9.7b earlier, while Sabah - Sarawak Link Road (SSLR) phase 2 worth RM7.4b in total will announce another 2 packages around year end.
Summary 🌟:
Nothing meaningful, mega projects doesn’t seem to be government’s current focus, except selected fews like Penang LRT, Johor RTS and Pan Borneo 1B. Hopefully more momentum on mega-projects roll-out after potential removal of Ron 95 subsidies(in phases) in mid-2025.
____________
Gaming Sector Flash Update 🎰
Key Takeaways from Budget 2025
- No takeaways as nothing mentioned on gaming in Budget 2025.
- No gaming tax hike, No higher tax, No special draw cuts (for NFOs).
- This is however, positive to the sector as concerns on further detrimental policies from the government on gaming companies to increase tax base are allayed.
- Given that sector is already trading at depressed valuations, sentiment may re-rate especially lush dividends for gaming companies are usually backloaded to 2H24.
____________
Property Sector Flash Update 🎰
Key Takeaways from Budget 2025
- Mostly extension from previous budget on affordable housing scheme like RM900m allocated for Residensi Rakyat Programs (PRR) and Rumah Mesra Rakyat projects, Government guarantees RM12.8b for housing loans, helping over 57,000 first-time homebuyers, with an additional RM10b planned for further financing.
- No mention of LRT/ART Johor or JSSEZ incentives details
- No mention of housing grant as what we expected
- The only key item for property sector is property tax relief. Tax relief on interest payments for homes valued up to RM500,000 (up to RM7,000) and homes between RM500,000 and RM750,000 (up to RM5,000), available for three consecutive years.
____________
#MalaysiaBudget2025
👍5👏1
MALAYSIA BUDGET 2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Semicon, E&E and AI Sector Flash Update 🏗️
Key Takeaways from Budget 2025
- Semiconductor Hub: Malaysia continues to position itself as a global semiconductor hub with increased collaborations, including major partnerships with Intel and Infineon
- Semiconductor and AI Focus: Universiti Sains Malaysia (USM) focuses on AI in the semiconductor sector, aligning with the country’s semiconductor leadership.
- E&E Sector Growth: Malaysia’s E&E sector will benefit from new incentives focusing on high-value activities like IC design and advanced materials, with tax incentives extended to boost export growth
- Education system related to E&E: UiTM is allocated additional funding to produce more E&E engineers, emphasizing the importance of Bumiputera participation in the fast-growing semiconductor sector
- IC Design Focus: To elevate the E&E industry, tax incentives for IC design and advanced materials will be expanded, promoting high-value contributions from this sector
- Education system related to AI: AI education is being expanded across MY universities R&D with a budget increase from RM20m to RM50m, focusing on areas such as AI in medicine, quantum computing, and language translation.
- AI in medical field: Universiti Malaya focuses on AI applications in medical research, particularly in combating fatal diseases like cancer
- Quantum AI Research: Universiti Putra Malaysia is establishing a Cryptology Technology and Management Center in collaboration with NACSA to explore quantum computing AI for cybersecurity.
- AI and Language Translation: Universiti Kebangsaan Malaysia leads research in AI-driven language translation to elevate Bahasa Melayu as a language of knowledge.
- AI Collaboration for Startups: Initiatives like the Cradle Fund (RM65m) and National Fund-of-Funds (RM1b) are set to support local startups and encourage collaboration between corporations and AI-driven startups.
- AI-Driven Economic Zones: New economic clusters will emphasize AI-related jobs, digital technology, robotics, IoT, and FinTech, supported by tax incentives for private institutions developing such courses.
- National AI Office (NAIO): RM10m has been allocated to NAIO to drive AI integration across industries, enhancing AI adoption and national strategy.
- Digital Transformation and AI: The success of Malaysia’s digital transformation strategy has attracted major tech investments, with giants like AWS, Microsoft, Google, and Oracle investing USD16.9b in cloud infrastructure development.
- AI in Reverse Vending Machines: Tax incentives will be extended for AI-driven Smart Reverse Vending Machines to promote recycling and environmental sustainability.
- TVET and AI: Technical and Vocational Education and Training (TVET) programs are being boosted with RM7.5b to prepare young talents, including AI and aerospace, aligned with Malaysia’s National Industrial Master Plan (NIMP).
Summary: These initiatives reflect Malaysia’s strategic emphasis on advancing its semiconductor, E&E, and AI sectors through education, R&D, and industrial collaboration.
____________
#MalaysiaBudget2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Semicon, E&E and AI Sector Flash Update 🏗️
Key Takeaways from Budget 2025
- Semiconductor Hub: Malaysia continues to position itself as a global semiconductor hub with increased collaborations, including major partnerships with Intel and Infineon
- Semiconductor and AI Focus: Universiti Sains Malaysia (USM) focuses on AI in the semiconductor sector, aligning with the country’s semiconductor leadership.
- E&E Sector Growth: Malaysia’s E&E sector will benefit from new incentives focusing on high-value activities like IC design and advanced materials, with tax incentives extended to boost export growth
- Education system related to E&E: UiTM is allocated additional funding to produce more E&E engineers, emphasizing the importance of Bumiputera participation in the fast-growing semiconductor sector
- IC Design Focus: To elevate the E&E industry, tax incentives for IC design and advanced materials will be expanded, promoting high-value contributions from this sector
- Education system related to AI: AI education is being expanded across MY universities R&D with a budget increase from RM20m to RM50m, focusing on areas such as AI in medicine, quantum computing, and language translation.
- AI in medical field: Universiti Malaya focuses on AI applications in medical research, particularly in combating fatal diseases like cancer
- Quantum AI Research: Universiti Putra Malaysia is establishing a Cryptology Technology and Management Center in collaboration with NACSA to explore quantum computing AI for cybersecurity.
- AI and Language Translation: Universiti Kebangsaan Malaysia leads research in AI-driven language translation to elevate Bahasa Melayu as a language of knowledge.
- AI Collaboration for Startups: Initiatives like the Cradle Fund (RM65m) and National Fund-of-Funds (RM1b) are set to support local startups and encourage collaboration between corporations and AI-driven startups.
- AI-Driven Economic Zones: New economic clusters will emphasize AI-related jobs, digital technology, robotics, IoT, and FinTech, supported by tax incentives for private institutions developing such courses.
- National AI Office (NAIO): RM10m has been allocated to NAIO to drive AI integration across industries, enhancing AI adoption and national strategy.
- Digital Transformation and AI: The success of Malaysia’s digital transformation strategy has attracted major tech investments, with giants like AWS, Microsoft, Google, and Oracle investing USD16.9b in cloud infrastructure development.
- AI in Reverse Vending Machines: Tax incentives will be extended for AI-driven Smart Reverse Vending Machines to promote recycling and environmental sustainability.
- TVET and AI: Technical and Vocational Education and Training (TVET) programs are being boosted with RM7.5b to prepare young talents, including AI and aerospace, aligned with Malaysia’s National Industrial Master Plan (NIMP).
Summary: These initiatives reflect Malaysia’s strategic emphasis on advancing its semiconductor, E&E, and AI sectors through education, R&D, and industrial collaboration.
____________
#MalaysiaBudget2025
👍1
MALAYSIA BUDGET 2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Automobile Sector Flash Update 🏗️
Key Takeaways from Budget 2025
🔸Support for Electric Motorcycles: Incentives of up to RM2,400 for CKD electric motorcycles will continue, with a RM10m allocation.
🔸Expansion of EV Charging Infrastructure: Tax relief for the purchase of EV chargers will be expanded and extended until 2027.
🔸TVET and EV Skills Training: RM500m has been allocated for TVET training in critical fields like EV maintenance, aerospace, AI, and MRO.
🔸Corporate Support for EV Skills: Collaborations, such as with PROTON through the Advanced Automotive Technology Institute, are aimed at enhancing workforce skills in the automotive and EV sectors.
NEUTRAL: As expected, there are no new direct incentives for consumers, the government’s focus on local EV production, infrastructure expansion, and workforce development demonstrates a long-term commitment to building a sustainable and skilled EV ecosystem in Malaysia.
____________
#MalaysiaBudget2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Automobile Sector Flash Update 🏗️
Key Takeaways from Budget 2025
🔸Support for Electric Motorcycles: Incentives of up to RM2,400 for CKD electric motorcycles will continue, with a RM10m allocation.
🔸Expansion of EV Charging Infrastructure: Tax relief for the purchase of EV chargers will be expanded and extended until 2027.
🔸TVET and EV Skills Training: RM500m has been allocated for TVET training in critical fields like EV maintenance, aerospace, AI, and MRO.
🔸Corporate Support for EV Skills: Collaborations, such as with PROTON through the Advanced Automotive Technology Institute, are aimed at enhancing workforce skills in the automotive and EV sectors.
NEUTRAL: As expected, there are no new direct incentives for consumers, the government’s focus on local EV production, infrastructure expansion, and workforce development demonstrates a long-term commitment to building a sustainable and skilled EV ecosystem in Malaysia.
____________
#MalaysiaBudget2025
MALAYSIA BUDGET 2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Summary from UOB's economist - Julia Goh
Msia Budget 2025 - New taxes and targeted subsidies in focus
🔸 Budget 2025 targets narrower fiscal deficit MYR80bn (2025F: 3.8% of GDP, 2024F: 4.3%)
🔸 Total expenditure +3.3% to MYR421bn or 20.2% of GDP
🔸 Operating expenditure +4.2% to MYR335bn or 16.1% of GDP
🔸 Development expenditure unchanged at MYR86bn or 4.1% of GDP
🔸 Record revenue collections +5.5% to MYR339.7bn or 16.3% of GDP
🔸 Real GDP growth targets raised to 4.8%-5.3% for 2024, 4.5%-5.5% in 2025
🔸 Inflation expected between 2%-3.5% in 2025 (2024F: 1.5%-2.5%)
🔸 Unemployment rate to improve further to 3.1% (2024F: 3.2%)
🔸 Gross exports projected +3.9% in 2025 (2024: 5.6%)
🔸 Current account surplus to widen to +MYR49.1bn or 2.4% of GNI (2024F: 2.3%)
🔸 Public debt-to-GDP to stay at 64% in 2024-25
____________
#MalaysiaBudget2025
♨️ Fresh from Oven - An Update from UOB Kay Hian ♨️
Summary from UOB's economist - Julia Goh
Msia Budget 2025 - New taxes and targeted subsidies in focus
🔸 Budget 2025 targets narrower fiscal deficit MYR80bn (2025F: 3.8% of GDP, 2024F: 4.3%)
🔸 Total expenditure +3.3% to MYR421bn or 20.2% of GDP
🔸 Operating expenditure +4.2% to MYR335bn or 16.1% of GDP
🔸 Development expenditure unchanged at MYR86bn or 4.1% of GDP
🔸 Record revenue collections +5.5% to MYR339.7bn or 16.3% of GDP
🔸 Real GDP growth targets raised to 4.8%-5.3% for 2024, 4.5%-5.5% in 2025
🔸 Inflation expected between 2%-3.5% in 2025 (2024F: 1.5%-2.5%)
🔸 Unemployment rate to improve further to 3.1% (2024F: 3.2%)
🔸 Gross exports projected +3.9% in 2025 (2024: 5.6%)
🔸 Current account surplus to widen to +MYR49.1bn or 2.4% of GNI (2024F: 2.3%)
🔸 Public debt-to-GDP to stay at 64% in 2024-25
____________
#MalaysiaBudget2025
👍2
Beyond Headlines Series
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025
👍3❤1
Forwarded from UOB Kay Hian Malaysia (Official)
Beyond Headlines Series
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025
Forwarded from UOB Kay Hian Malaysia (Official)
Beyond Headlines Series
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025
Forwarded from UOB Kay Hian Malaysia (Official)
Beyond Headlines Series
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025
MALAYSIA POST-BUDGET DISCUSSION
Curious about how Budget 2025 will transform Malaysia's economic landscape under the Ekonomi Madani framework? Don’t miss this chance to hear cutting-edge insights from top experts on how the latest budget is driving strategic investments, boosting government efficiency, and ensuring inclusive growth for all Malaysians.
Secure your spot in this must-attend event.
📅 Date: Saturday, 26 Oct 2024
🕔 Time: 11:30am - 12:30am (1hr)
📈 Mode: Online Webinar
🗣️ Language: English
🔗 REGISTER NOW! OPEN TO PUBLIC
https://bit.ly/MalaysiaBudget2024Review
Organiser: UOB Kay Hian Wealth Advisors Sdn Bhd
Co-Organiser: Faculty of Business sand Economics, Universiti Malaya
__
#UOBKayHianMalaysia
#UOBKayHian
#BeyondHeadlines
#MalaysiaBudget2025 #Budget2025
#Belanjawan2025