Samsung’s Stock Hits Lowest Since 2020 as Trump Tariff Fears and AI Rivalry Grow 
COP29 Summit: Azerbaijan Hosts Critical Talks on Climate Finance and Trade Disputes 
Jobs of the future: South Africa has major gaps in skills needed to shape the green economy 
China Slams US TSMC Restrictions, Claims Weaponizing Tech to Inflame Strait Tensions 
‘Fed’s Rate Cuts Can Wait,’ Powell Declares as Economy Stays Strong and Inflation Lingers 
The Trump presidency could hammer global growth – here’s what the UK could do 
OpenAI’s Game-Changing ‘Thinking’ Model Redefines AI Development: ‘Scaling Up Is No Longer Enough' 
Public-Sector Pay Rises Outpace Private Sector for the First Time Since 2020 
SoftBank Teams With Nvidia To Bring Japan’s Largest AI Supercomputer With Blackwell Chip Power 
Instacart Lowers Q4 Forecasts as Holiday Spending Softens, Intensifying Online Delivery Competition 
China’s Sluggish Inflation and Deepening Deflation Spur New Stimulus Measures 
China's CPI and PPI Fall in October Despite Major Stimulus Efforts 
Gold Prices Decline Amid Trump’s Victory and Dollar Strength 
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.
