Morning Brief

Under the revised Budget 2023, the government increased funding for the Ministry of Natural Resources, Environment and Climate Change (NRECC) and doubled allocations to the Ecological Fiscal Transfer for Biodiversity Conservation. How far do these measures go to protect the environment and wildlife? On World Wildlife Day, we discuss policy recommendations to improve environmental sustainability with forestry researcher Dr. Lim Teck Wyn.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Tesla CEO Elon Musk presented his long-awaited Master Plan Part 3 during the annual Investor Day conference this week. Musk and his team announced that  assembly costs would be cut by half in future generations of cars, but he did not unveil a small, affordable electric vehicle option as was hoped. What does this bode for the company's outlook? Dan Ives gives us his takeaways from Investor Day and the prospects ahead.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Last Saturday marked the 37th anniversary of the “People Power Revolution” that brought down the late Philippine dictator Ferdinand Marcos after two decades of rule. In a twist of fate, the son of the ousted leader is now the President of the country. How is President Ferdinand "Bong Bong" Marcos contending with his family's contentious legacy? We get insights from political analyst Andrea Chloe Wong, who also shares her views on the state of bilateral ties between Malaysia and the Philippines.Image credit: TwitterSee omnystudio.com/listener for privacy information.

Prime Minister Dato' Sri Anwar Ibrahim has made social justice and tackling inequality a benchmark of his MADANI philosophy. How well do his Budget 2023 initiatives achieve those aims? We get reactions from Dr. Michael Jeyakumar of Parti Sosialis Malaysia (PSM).Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The government has made tackling cybercrimes a priority, with RM10 million allocated to the National Scam Response Centre in Budget 2023. The Prime Minister has also called for banks to provide a "kill switch" to allow users to freeze their accounts when suspicious transactions are flagged. We speak to cybersecurity expert Dr. Selvakumar Manickam for his recommendations to counter online fraud and scams.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Budget 2023 introduced a luxury tax which would be implemented this year as a new step to broaden the tax base to those who had the means. However, details on what luxury goods actually are and what rate the tax will be have yet to be finalised. Tan Hai Hsin, Managing Director of Retail Group Malaysia, talks about how the local retail sector might be impacted.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Ministry of Health received the second highest budget allocation at RM36.3 billion ringgit, amounting to 9% of the total budget. While generous on paper, does it address the urgent needs of the public healthcare sector for both the short and long-term? Azrul Khalib of the Galen Centre gives us his assessment.  Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Export volumes for the Asia Pacific region have been seeing a steady decline as 2022 drew to a close, with China’s exports falling year-on-year in October, for the first time since May 2020. Alex Holmes, Senior Economist at Oxford Economics talks about the scenario going forward as consumption patterns change.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

There were a plethora of goodies for SMEs in Budget 2023, most notably the cut in corporate tax by 2% to 15%. But does this go far enough in terms of assistance needed? Chin Chee Seong, National Secretary General of the SME Association of Malaysia tells us whilst offering his own suggestions.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Education Ministry received the biggest slice of the Budget 2023 pie with an allocation of 55.2 billion ringgit. Close to 90% of this increase in allocation will be used to upgrade and maintain buildings and amenities of schools. Some other initiatives include distribution of 50 thousand laptops and increase in allocation for several food program to address poverty and malnutrition. So does Budget 2023 help the national education sector realise its potential? For insights, we speak to Shahnaz Al-Sadat, Chairperson, LeapEd ServicesImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Turkish President Recep Tayyip Erdogan's popularity was already declining even before the massive earthquakes that hit the country on February 6th, with the economy in the doldrums amplified by the President’s unconventional monetary policies. However the devastation from the disaster, which the World Bank estimates at USD$34 billion, has raised public furor towards the government. What impact might this have on Erdogan's re-election chances? We discuss the political impact of the earthquakes in Türkiye with Middle East expert Dr. James Dorsey.Image credit: EPA-EFESee omnystudio.com/listener for privacy information.

PKR announced that the dates of the anticipated 6 state elections will be unveiled before the end of March. The six states are the three PH-controlled Negeri Sembilan, Penang and Selangor, as well as PAS-led Kedah, Kelantan and Terengganu. While seat negotiations will be difficult to balance but more importantly, Prime Minister, Anwar will be under pressure to deliver and show that the current government is still relevant. For insights, we speak to Asrul Hadi Abdullah Sani, Deputy Managing Director BowerGroupAsia.See omnystudio.com/listener for privacy information.

At first glance, Budget 2023 which is the largest in history at RM388.1bn seems at odds when the Prime Minister has repeatedly warned of our mounting debts. We speak to Sim Kwang Gek Country Tax Leader at Deloitte Malaysia for the her views on the new tax regime that offers tax cuts for the M40 whilst raising it for the T20. We also consider if the Government is serious about its net zero target by 2050 by examining the tax cuts and initiatives that support its Green agenda.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Budget 2023 was the highest spending allocation ever at RM 386.1 billion (or 20.4% of GDP) compared to the initial budget tabled last year which was RM 372.2 billion. The revised budget will see the government spending RM289.1 billion on operating expenditure and RM99 billion development expenditure. However, given there was an absence of GST and target rationalisation of subsidies, did this maiden Budget by the Unity Government hit the mark when it came to its objective whilst keeping to its fiscal consolidation promises? For answers, we speak to Julia Goh, Senior Economist, UOB Malaysia.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

The impact of the war in Ukraine has reverberated throughout the global economy, creating energy shortages, disrupting agriculture supply chains and fueling higher prices worldwide. Will these effects linger in 2023 and how much will this dampen global growth? Suan Teck Kin of UOB gives us his analysis.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Ahead of the Budget 2023 tabling this afternoon, we speak to Muar MP and MUDA President Syed Saddiq on the initiatives needed for Malaysian youth to gain foothold amid uncertain economic conditionsBrought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

24th February marks the one year anniversary of the war in Ukraine. We speak to Denys Mykhailiuk, Chargé d'Affaires of the Ukrainian Embassy in Malaysia for an update on the situation of the ground, their war efforts and what will bring about peace.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

What was envisioned as a short “special military operation” by Moscow has run for 12 months now with no end yet in sight. Despite setbacks, President Vladimir Putin in his latest state of the nation address maintained that the military operations would continue in order to protect Russian sovereignty. What are Moscow's ultimate goals in the conflict? We hear from His Excellency Naiyl Latypov, Russian Ambassador to Malaysia.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Minister of Health Dr. Zaliha Mustafa met with junior doctors in a town hall session on Thursday to solicit feedback on the state of public healthcare and how to resolve the myriad gaps in the system. This comes as surveys of Malaysian healthcare workers signal increasing frustration over the inertia in public health reforms. We speak to Dr. Helmy Haja Mydin, Special Adviser to the Minister of Health who moderated the event for insights into what happened behind closed doors.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

As part of our pre-Budget Series, we check in with the international business community based here in Malaysia as to their wish list. In the October 2023 budget, there was an extension of various tax incentives on eligible green projects and the implementation of a 15% global minimum tax in 2024. But is this enough or do MNCs here really want to see a stable government first and foremost and policies which are consistent and do not flip flop? For answers, we speak to Daniel Bernbeck, Executive Director of Malaysia-German Chamber of Commerce and Industry.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Hong Kong has been slower than other cities to recover from the pandemic, given the long running restrictions of China’s Covid zero policy. Many will be hoping that  the latest Hong Kong budget aims can spur recovery momentum. However, the government has the tricky challenge of also reducing a high deficit that has built up over the past three years. Did this budget manage to thread the needle in terms of balancing between recovery and prudence? Gary Ng of Natixis gives us the budget highlights.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

There are a myriad factors affecting the outlook for Singapore property, ranging from the strengthening currency, return of China tourists, sticky inflation and higher interest rate hikes. How would this affect the investment case for Singapore REITS? Krishna Guha of Maybank Investment Bank gives us his investment picks in this sector. Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Budget 2023 is going to get a redo this Friday and SMEs saw the October tabling as a preview for what's to come. Since then, challenges to how SMEs operate have become clearer amid rising cost of goods, labour shortages and a less-than-encouraging economic sentiment. Datuk William Ng, Chairman of the Small and Medium Enterprises Association (SAMENTA) outlines what the sector, which accounts for more than 90% of total business establishments in Malaysia, might be hoping to get.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Malaysian news media and journalism have come under the spotlight this past week both in and out of Parliament. In response to calls for ethical journalism standards to be adhered to, the Minister for Communications and Digital has said that his ministry will look to amend the Communications and Multimedia Act 1998 to this end. But is there a solution in plain sight to address this issue apart from legislative changes? Media expert Dr. Benjamin Loh makes the case for setting up an independent media council to improve journalism ethics.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Malaysia Buy Now Pay Later (BNPL) market is expected to have a compounded annual growth rate of 35% between 2022 and 2028. But concerns are growing that these schemes contribute to high debts levels among the vulnerable. Dato Paul Selvaraj, CEO, Federation of Malaysian Consumers Associations (FOMCA) tells us what policy measures should be considered to rein this issue in before it becomes a serious problem for Malaysians.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Despite making up 50% of the population and electorate, women unfortunately face systemic disadvantages at the economic, social and political levels. What should the government focus on to empower women in business and the economy? Nuraizah Shamsul Baharin, president of the Women Entrepreneur Network Association (WENA) and representative of the Gender Budget Group gives her recommendations.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: 123rf.comSee omnystudio.com/listener for privacy information.

One of the best performing asset classes this year has been cryptocurrencies. Bitcoin is up close to 50% on a year to date basis albeit still less than half the value of its peak of 67,000 US dollar in October 2021. With the collapse of FTX, this has invited greater scrutiny by the US Securities and Exchange Commission which recently proposed changes to federal custody requirements to include assets like crypto. How will this pan out and what has been the reason for the sudden surge in cryptocurrency prices? For answers, we speak to Zhong Yang Chan, Head Of Research, CoinGecko.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Cabinet had agreed to amend the Federal Constitution to allow children born abroad to Malaysian mothers to gain automatic Malaysian citizenship. Suriani Kempe, President of Family Frontiers tells us what are the next legal hurdles to overcome and why this change in law was much needed.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

UMNO announced changes to its Supreme Council membership last week, with Selangor Umno treasurer Tengku Datuk Zafrul Aziz appointed whilst Dato’ Lokman Noor Adam who had been expelled, was readmitted. Dr Oh Ei Sun, Principal Adviser at Pacific Research Centre tells us the consequences of such moves and the importance of the upcoming state elections.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The revised Budget 2023 is to be tabled this Friday. The electrical and electronic industry accounts for 7.2% of the Gross Development Product and around 40% of exported manufactured goods making it a crucial part of the economy. The previous 2023 Budget included initiatives to attract more high-quality investments in particular the front end of the supply chain. However, will the incentives from this new Budget 2023 be enough to drive investments in the sector and ensure Malaysia as an E&E sector and also destination stays relevant? We speak to Dato' Seri Wong Siew Hai, President of Malaysia Semiconductor Industry Association (MSIA) for insights.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

With US Secretary of State Anthony Blinken and Chinese Foreign Minister Wang Yi meeting on the sidelines of the Munich Security Conference, we ask if US-China can reset turbulent ties spurred by the spy balloon saga? We discuss superpower geopolitics with Dr. Pradeep Taneja of Melbourne University.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

As Malaysia's national debt including liabilities has reached 1.5 trillion ringgit, Prime Minister Datuk Seri Anwar Ibrahim’s administration has set their eyes on reducing opex and expanding revenue. And one elephant in the room that cannot be ignored would be the size of civil service, their emoluments and pensions. So as reduction of fiscal deficit takes priority, how should we relook at the size of civil service in Malaysia? For answers, we speak to Dr Tricia Yeoh, CEO, IDEAS.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The 2023 State of Southeast Asia report was issued last week, shedding light on how the rivalry between the US and China is seen from the perspective of those caught in the middle. How have the developments of the past year affected how those in Southeast Asia view the power competition, and the effectiveness of ASEAN as a multilateral bloc to navigate the dynamics? Sharon Seah of the ISEAS Yusof-Ishak Institute shares insights from the report.Image credit: Thapakorn HemgoSee omnystudio.com/listener for privacy information.

There are international laws governing how children should be held in detention by governments. Is Malaysia abiding by these laws and how can we ensure the protection of children being held in state detention? We discuss this issue with child rights activist Dr. Hartini Zainuddin, Co-Founder of Yayasan Chow Kit.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Japanese economy averted recession in  the fourth quarter of 2022, expanding by an annualised 0.6%, but this was much smaller than the median forecast of 2% GDP growth. The latest data point to the challenge for incoming Bank of Japan governor, Kazuo Ueda, in normalising the bank’s ultra-loose policy without derailing the fragile economic recovery. What options does the Japanese central bank and government have to navigate the delicate policy tightrope? Tokyo-based journalist William Pesek shares his insights.Image credit: Saranya Phu akatSee omnystudio.com/listener for privacy information.

The Minister of Defence Datuk Seri Mohamad Hasan has warned of a leaner budget for military services this year, after taking into account lower government revenue. But with rising geopolitical tensions, is this the time to trim allocation for the country's defence sector? Defence analyst Ridzwan Rahmat discusses the implications for Malaysia's security apparatus.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The government’s debts and liabilities currently stand at a record RM1.5 trillion ringgit, or 82% of GDP according to Prime Minister Dato’ Sri Anwar Ibrahim. Wong Chen, MP for Subang has suggested that we list the national oil & gas company, Petronas. We speak to him for the thinking behind this suggestion and what could potentially be the pitfalls.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Minister for Education Fadhlina Siddique is helming a portfolio with enormous economic and social implications. As the academic year draws to a close, we discuss the policy signals so far from the government and priority areas that should be considered with Datin Noor Azimah Abdul Rahim of PAGE.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

S$104 billion Singaporean dollars - that’s the ticket price of the 2023 Singapore Budget aimed at positioning the city state in an era of great competition. There were several initiatives to alleviate near-term cost-of-living pressures such as an increase subsidies by 3 billion dollars to lower-income households. It also aims to narrow the budget deficit to 0.1% of GDP, from a revised 0.3% gap this year. Will the measures announced be effective in addressing Singapore’s economy and the cost of living issues faced by its people? For answers, we speak to Lee Ju Ye, Economist, Maybank Investment Bank.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Lynas rare-earth processing plant in Kuantan has had its license renewed for another 3 years, subject to conditions including relocating the “cracking and leaching” facility, which produces radioactive residue out of Malaysia before July 2023.  Do these conditions adequately address concerns over health and environmental safety? Mageswari Sangaralingam of Sahabat Alam Malaysia breaks down the Lynas controversy for us.Image credit: T. SchneiderSee omnystudio.com/listener for privacy information.

Malaysia's property market continues to face headwinds. An issue which is seldom focused on is the level of property overhang in Malaysia. According to the National Property Information Centre (Napic), the residential overhang at the end of 3Q22 stood at 30,000 units worth RM20 bn. More worrying is Napic's revelation on ageing of the total overhang numbers where 71% of the properties have not been sold for the past 5 to 10 years. What does this mean for the state of developers' balance sheets as inventory has to written down and what sort of policies should the government be looking at to address this? For insights, we speak to Pankaj C Kumar, Business Commentator.See omnystudio.com/listener for privacy information.

Last year, record high inflation spelled trouble for economies, capital markets and governments. After losing the transitory-vs-sticky debate, the Fed delivered a cumulative of 4.25% increase in rates last year. Asia Pacific meanwhile did not escape unscathed from elevated prices. In Malaysia, to shield households and firms from higher prices, it was estimated that the total subsidy bill and cash aid reached a record high of 77 billion ringgit for 2022. So will inflation loosen its grip this year or will governments have to battle between elevated prices and a recession? For answers we speak to Sarah Tan, Economist, Moody's Analytics.See omnystudio.com/listener for privacy information.

Last year saw the incredible reversal of fortunes of high-profile Southeast Asia tech start-ups. At the end of 2022, the combined market cap of Grab, GoTo and BukaLapak fell by USD51 billion, a far cry from the lofty valuations the trio commanded when they each made their IPO debuts. How might 2023 play out for the regional tech sector - can companies reverse the decline in share price and improve prospects? Nathan Naidu of Bloomberg Intelligence gives his take.Image Credit: Adansijav Official / Shutterstock.comSee omnystudio.com/listener for privacy information.

How is humanitarian aid being channelled to those affected by the earthquake in Turkey and Syria? We get updates from Dato’ Dr. Ahmad Faizal Perdaus, President of Mercy Malaysia of the situation on the ground.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Six states are heading to state elections this year. Will this be the first test for the unity government? Dr James Chin, Professor of Asian Studies, University of Tasmania gives us his views on how seats will be allocated and will there be a green wave for PH controlled states?Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Malaysia’s GDP in 2022 recorded the highest annual growth rate in more than 2 decades at 8.7%, which was higher than the median estimate of 8.6% in a Bloomberg survey. As for the last quarter of the year, the economy expanded by 7% y-o-y. The services sector recorded the highest growth in 2022 at 10.9%. Can Malaysia be shielded from a challenging global environment and what growth can we expect for 2023? For answers we speak to Woon Khai Jhek, Head of Economic Research and Senior Economist at RAM Ratings.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Despite Malaysia ‘s efforts to be carbon neutral by 2050, solar players had a challenging 2022 with the intense competition and rising panel prices. We speak to Sean Lim, Regional Oil & Gas Head from RHB Investment Bank for an outlook and who are the winners in this growing sector.Image credit: PixabaySee omnystudio.com/listener for privacy information.

Prime Minister Datuk Seri Anwar Ibrahim arrived in Thailand yesterday for a two-day official visit to elevate bilateral ties between Malaysia and Thailand. The focus areas of the visit include economic cooperation, border area development and key connectivity projects crossing the land borders. Will this trip be fruitful as Anwar’s previous diplomatic visits to our neighbours? For some answers, we speak to Dr Rahul Mishra, Director at the Centre of ASEAN RegionalismSee omnystudio.com/listener for privacy information.

The Economist Intelligence Unit (EIU) released its 2022 Democracy Index recently, which showed that despite a broad easing of pandemic-era restrictions, the status of global democracy remains at similar levels to the prior year. What impacted trends in democracy over the past year, and is the world heading in the right direction? Syetarn Hansakul of EIU shares insights from the report.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The public healthcare system is in crisis, with many healthcare workers contemplating leaving the service. What urgent policy measures are needed to prevent the system from collapsing? Dr. Khor Swee Keng of the Malaysian Health Coalition weighs in on this debate.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.