U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
As Malaysia prepares to unveil its 2025 budget, analysts predict significant subsidy cuts and the introduction of new taxes to bolster its fiscal position amid expected declines in government revenue. Prime Minister Anwar Ibrahim will announce this spending plan in parliament on Friday, aiming to balance fiscal consolidation with economic growth while addressing rising living costs.
Key Tax Initiatives
Experts anticipate the implementation of a tax on high-value goods and a tax on sugar-sweetened beverages, originally proposed in the previous budget. However, calls for reintroducing a broad-based Goods and Services Tax (GST) appear to be dismissed, as the government braces for lower dividends from Petroliam Nasional Berhad (Petronas). Petronas, a major revenue source for the federal government, is expected to face income pressures due to declining crude oil prices.
Projected Economic Outlook
Under the 2024 budget, Petronas is projected to contribute 32 billion ringgit (approximately $7.45 billion) in dividends, down from 40 billion ringgit in 2023. Chief Economist Mohd Afzanizam Abdul Rashid highlights that ongoing low crude oil prices may challenge Petronas's ability to maintain substantial dividend payouts.
The government is likely to adjust its economic growth forecast for 2024 to a range of 4.5% to 5.1%, up from 4% to 5%. The central bank supports this outlook, projecting growth at the upper end of its estimates, while inflation is not expected to exceed 3%.
Fiscal Policy Changes
Budget 2025 is also expected to include adjustments to subsidies for RON95 petrol, sugar, and domestic rice, aligning with the government's shift towards targeted subsidies aimed at supporting low-income households. Analysts predict that the fiscal deficit will narrow to 3.5% to 3.9% of GDP, down from an estimated 4.3% in 2024, due to these subsidy reductions.
