Morning Brief

Budget 2021 is the largest to date at RM322.5 billion with goodies for the rakyat and businesses. Sim Kwang Gek, Tax Leader of Deloitte Malaysia, breaks down the details of it, explaining the tax breaks available and also the initiatives that will spur investments. Brought to you by Mah Sing.See omnystudio.com/listener for privacy information.

At a gargantuan RM322.5 billion, Budget 2021 is Malaysia’s biggest spending plan on record, aimed at staving off the Covid-19 crisis and supporting economic recovery. However, its affordability, optimistic assumptions on government revenue and a widening fiscal deficit that is estimated at -5.4% of GDP for 2021, remain material impediments to an effective implementation. Wellian Wiranto, Economist at OCBC Bank, discusses. Brought to you by Mah Sing. Image Credit: amadeustx / ShutterstockSee omnystudio.com/listener for privacy information.

Budget 2021 is the largest to date at RM322.5 billion with goodies for the rakyat and businesses. Sim Kwang Gek, Tax Leader of Deloitte Malaysia, breaks down the details of it, explaining the tax breaks available and also the initiatives that will spur investments.See omnystudio.com/listener for privacy information.

Joe Biden is now US President-Elect, but he inherits a divided country, crippled economy and a society still in the throes of Covid-19. Robert Shapiro, Professor of Government at Columbia University, discusses Biden's immediate, medium, and long-term priorities for America. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Joe Biden is now US President-Elect, but he inherits a divided country, crippled economy and a society still in the throes of Covid-19. Robert Shapiro, Professor of Government at Columbia University, discusses Biden's immediate, medium, and long-term priorities for America. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

SMEs remain the backbone of the Malaysian economy, contributing close to 40% of the GDP and hiring more than 50% of the country's workforce. So, does Budget 2021 offer enough incentives to help this sector overcome the crisis? Datuk Michael Kang, President of the SME Association of Malaysia, gives us his views. Brought to you by Mah Sing. Image Credit: Uwe Aranas / ShutterstockSee omnystudio.com/listener for privacy information.

Covid-19 has kicked off many changes in the way we travel, shop, and work. There are also signs that the pandemic may have long-term effects on our urban populations, with flight from cities to suburban areas expected. In the UK, however, the housing market appears to be booming. For more insights, we speak to Iwona Hovenko, Real Estate Analyst at Bloomberg Intelligence. Image Credit: ZGPhotography / ShutterstockSee omnystudio.com/listener for privacy information.

Neither candidate has won, and it looks like the race will come down to four states. Biden appears quietly optimistic and calls for patience, while President Trump has been threatening legal action against states he has lost. We get some insight here from Matt Dickinson about the differing approaches between both camps, as well as the potential legal mess and state of play in Georgia, Arizona, Pennsylvania and Nevada. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Suhaimi Ilias, Chief Economist at Maybank Kim Eng, discusses his predictions for Budget 2021, including the possibility of a windfall tax. Brought to you by Mah Sing. Image Credit: jamesteohart / ShutterstockSee omnystudio.com/listener for privacy information.

Ng Sue Lynn, Executive Director and Head of Indirect Tax at KPMG Tax Services, weighs in on where she thinks the government needs to prioritise in Budget 2021 for productive gains, and the likelihood of additional taxes to pad up government revenue. Brought to you by Mah Sing. Image Credit: SHAH AIZAD / ShutterstockSee omnystudio.com/listener for privacy information.

Lim Guan Eng, Former Finance Minister, explains Pakatan Harapan’s stand for Budget 2021 and where the lines of support will be drawn if the Budget does not include their recommendations. Image Credit: Holger Kleine / ShutterstockSee omnystudio.com/listener for privacy information.

In the first two days surrounding the US elections, neither President Donald Trump nor former Vice President Joe Biden has managed to secure the majority of 270 votes in the electoral college. Trump has already claimed victory, however, alleging fraud and pledging to bring the issue to the courts. To help us understand what comes next, we speak to Andrew Cohen, Associate Professor at Carleton University, about Trump's grounds for legal action, the magnitude of a flood of mail-in ballots, as well as the odds of a split Congress. Image Credit: EPA-EFESee omnystudio.com/listener for privacy information.

All eyes are on the US, where the results have yet to become clear as to who will lead the country into the next four years. With the S&P500 charting its best-ever day after an election, we speak to Ed Clissold, Chief US Strategist at Ned Davis Research, about how markets react to this highly volatile election. Image Credit: Marek Masik / ShutterstockSee omnystudio.com/listener for privacy information.

Parliament has tabled amendments to the Occupational Safety and Health Act 1994 (OSHA), which will now cover all workplaces and increase fines by 10 times for non-compliance. Kwan Will Sen, Partner at Lim Chee Wee Partnership, helps us understand the changes and what companies need to do next. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Despite government assistance offered since the start of movement control orders in the country, the E&E sector - a major contributor to the country's GDP - is still seeing some disruptions, not helped by the recent reimposition of the CMCO. We speak to Siew Choon Thye, President of The Electrical and Electronics Association of Malaysia, for more insight into the industry, as well as what they hope to see announced in the upcoming Budget 2021. Brought to you by Mah Sing. Image Credit: DmitrySteshenko / ShutterstockSee omnystudio.com/listener for privacy information.

Despite government assistance offered since the start of movement control orders in the country, the E&E sector - a major contributor to the country's GDP - is still seeing some disruptions, not helped by the recent reimposition of the CMCO. We speak to Siew Choon Thye, President of The Electrical and Electronics Association of Malaysia, for more insight into the industry, as well as what they hope to see announced in the upcoming Budget 2021. Brought to you by Mah Sing. Image Credit: DmitrySteshenko / ShutterstockSee omnystudio.com/listener for privacy information.

What does the life insurance sector want in Budget 2021? We speak to LIAM CEO, Mark O'Dell, to find out. Earlier this year, the Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) announced the option to defer the payment of life insurance premiums/takaful contributions from April 1st to Dec 31st. With that, it was reported in early September that more than a million people affected by the pandemic opted to defer their life insurance premium payments for three months, with LIAM estimating that the total amount of premium payments deferred was more than RM1 billion. We ask Mark about the current situation, pressing concerns, and LIAM's Budget 2021 wishlist. Brought to you by Mah Sing.See omnystudio.com/listener for privacy information.

Myanmar is set to hold elections this week, only the second semi-democratic elections the country has seen. However, the leader of the National League of Democracy (NLD), Aung San Suu Kyi, has come under fire for failing to address the Rohingya crisis, dashing hopes for her leadership. We speak to Kyaw Win, Executive Director of the Burma Human Rights Network, for his perspective of the NLD Government since they came into power in 2015, especially in their treatment of minority groups. Image Credit: EPA-EFESee omnystudio.com/listener for privacy information.

Khazanah Research Institute released its second 2020 State of the Household report. Siti Aiysyah Tumin, author of the report and Research Associate at Khazanah Research Institute, helps us understand the numbers and underlying issues on growing disparities between labour groups and regions in Malaysia. Image Credit: Azami Adiputera / ShutterstockSee omnystudio.com/listener for privacy information.

As polls close across the United States, we discuss why results may not come out on the election night itself, as well as the key swing states that will influence who wins 270 electoral college votes. Image Credit: EPA-EFESee omnystudio.com/listener for privacy information.

Bank Negara Malaysia maintained the overnight policy rate at 1.75% on the back of better economic prospects despite the CMCO. Woon Khai Jhek, Senior Economist at RAM Rating Services, discusses his economic predictions. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Certain UMNO leaders are championing to allow EPF contributors to withdraw from Account 1 to survive the current economic hardship. Firdaos Rosli, Head of Economic Research at Malaysian Rating Corporation Berhad, weighs in from a macroeconomist perspective. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

How will the US election impact capital markets? US markets have had a rough few weeks, with the Dow Jones closing out October with a 4.6% loss, marking its worst monthly performance since March. Beyond that, the S&P 500 fell 2.8% and the Nasdaq slipped 2.3% last month, both suffering their second straight negative month. Aside from the Presidential elections, the Senate election could also be crucial for the markets as many key policy shifts, including further fiscal stimulus, hinge on who holds the majority control. Given the lingering uncertainty, how could markets play out following election day? Image Credit: Christos S / ShutterstockSee omnystudio.com/listener for privacy information.

With borders to remain closed for the foreseeable future, things are not looking up for the tour and travel industry. To make matters worse, tourism industry players have now been saddled with claims from consumers, after failing to make refunds for cancellations brought about by the Covid-19 pandemic. To help us get a better sense of the situation, we speak to Nigel Wong, Honorary Secretary General of the Malaysian Association of Tour and Travel Agents (MATTA) about the industry's pain points, and what he hopes to see out of Budget 2021. Brought to you by Mah Sing. Image Credit: Hafiz Johari / ShutterstockSee omnystudio.com/listener for privacy information.

Political jockeying continues with UMNO demanding for more political positions and power. We catch up with Dr. Hamidin Abdul Hamid, Research Fellow at the Ilham Centre, as Parliament sitting commences today. Will the motion of no-confidence against Tan Sri Muhyiddin Yassin (TSMY) see the light of the day? What concessions will TSMY make to appease UMNO warlords? If a Deputy Prime Minister is picked from UMNO, who is a likely candidate? Image Credit: Laboo Studio / ShutterstockSee omnystudio.com/listener for privacy information.

Last week, oil prices hit their lowest point since May, with Brent crude dipping below $37 per barrel. After some initial promising signs of recovery due to economies reopening and production cuts, Brent had been trading steadily between $40 to $45 a barrel for much of the summer, but now we’re seeing fresh restrictions placed on parts of Europe such as the UK and France. Here in Malaysia, Budget 2021 is also being announced later this week, and oil prices are a key thing to watch since the Budget will be made based on an oil price assumption. Last year, the budget was based on the assumption of oil prices averaging US$62 per barrel, but that will likely be much lower this year. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Last week, oil prices hit their lowest point since May, with Brent crude dipping below $37 per barrel. After some initial promising signs of recovery due to economies reopening and production cuts, Brent had been trading steadily between $40 to $45 a barrel for much of the summer, but now we’re seeing fresh restrictions placed on parts of Europe such as the UK and France. Here in Malaysia, Budget 2021 is also being announced later this week, and oil prices are a key thing to watch since the Budget will be made based on an oil price assumption. Last year, the budget was based on the assumption of oil prices averaging US$62 per barrel, but that will likely be much lower this year. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Local tourism saw a slight boost when the economy re-opened. During this CMCO, however, stepping inside hotels, you don’t see too many people. Yap Lip Seng, Chief Executive Officer (CEO) of the Malaysian Association of Hotels, tells us what he hopes for Budget 2021 to save hotels from going down south. Brought to you by Mah Sing. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

The A-TEAM of tech: Amazon, Alphabet and Apple, released their results last night along with Facebook and Twitter. Daniel Ives, Managing Director for Equities Research at Wedbush Securities, gives a detailed breakdown of their results and answers the million-dollar question of whether the sector is overpriced and ripe for a correction. Image Credit: Koshiro K / ShutterstockSee omnystudio.com/listener for privacy information.

The economic crisis brought on by Covid-19 has meant unemployment rates have risen around the world. Malaysia is no different, with an increase of 5% seen in our unemployment numbers this year. Nevertheless, a survey by human resources consulting firm, Mercer, recently found that Malaysians' salaries are still expected to increase by 4.5% this year. We speak to Koay Gim Soon, Consulting Leader for Malaysia at Mercer, to find out more. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

For the next five years, it appears that China will be looking to emphasize quality growth over speed, in its quest to build itself into a self-reliant, technological powerhouse. Beijing's efforts are gaining urgency, particularly as the US has sought to curb its advancement, pressuring allies to shun equipment from Huawei and barring dozens of China's largest tech companies from buying American parts. For some insight, we reached out to Gary Ng, Asia-Pacific Economist at Natixis, for his take on the Five-Year Plan, and whether this will truly allow China to decouple from America. Image Credit: Mirko Kuzmanovic / ShutterstockSee omnystudio.com/listener for privacy information.

According to the Mercer CFA Institute Global Pension Index 2020 released last week, Malaysia ranked 19th out of 39 countries in terms of how well its retirement system functions. Dr Amjad Rabi, Visiting Fellow at the University of Malaya Social Wellbeing Research Centre, tells us how we can improve our rankings and what are the potential issues that Malaysia will face as the percentage of the ageing population increases. Image Credit: Lano Lan / ShutterstockSee omnystudio.com/listener for privacy information.

Credit Counselling and Debt Management Agency, better known as AKPK, has noted that debt repayment has been moving towards pre-pandemic levels this month. We speak to Nirmala Subramaniam, Manager at the Financial Education Department, to find out what are the existing pain points that Malaysians are facing especially with the re-imposition of the Conditional Movement Control Order (CMCO). Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Japan wants a cleaner, greener future, aiming to be carbon-neutral by 2050. But according to William Pesek, a Columnist at Nikkei Asian Review, that timeline could be more demanding and urgent, while also being contingent on Prime Minister Yoshihide Suga lasting the course in his role and his clean ambitions. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

The ongoing shift towards e-commerce has birthed a fiercely competitive logistics industry, with 109 courier license holders in operation in Malaysia as of October 2020. On the back of the fact that the Malaysian Communications and Multimedia Commission (MCMC) have suspended issuances of new licenses for two years, we speak to Cheong Yen Li, Associate Director at PwC, to give us a picture of the size of the industry, as well as what we can expect from it moving into this new normal. Image Credit: hkhtt hj / ShutterstockSee omnystudio.com/listener for privacy information.

Political intrigue continues in Malaysia with UMNO concluding their supreme council meeting with a reaffirmation of their support for the Perikatan Nasional government. We speak to Dr Oh Ei Sun, Senior Fellow at the Singapore Institute of International Affairs, on the future of this coalition and what options Tan Sri Muhyiddin Yassin has to secure bipartisan support for Budget 2021. Image Credit: Abdul Razak Latif / ShutterstockSee omnystudio.com/listener for privacy information.

Questions always arise over what is fair remuneration for directors and what should it be based on. Is there a sweet spot? We speak to Foo Lee Mei, Chief Regulatory Officer at the Securities Commission Malaysia, for her views. We also ask about the recent findings of their Corporate Governance Monitor 2020 report. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Google will release its third-quarter results on Thursday and as we look ahead to that, a shadow looms over the company as it is faced with a landmark lawsuit from the US Department of Justice in what will be the biggest antitrust suit in 20 years. The Justice Department argues that Google is a monopoly, is illegally maintaining that monopoly, and that Google’s dominance may stifle innovation and reduce choice in the long term. That being said, Google is free and isn't directly hurting consumers, so does the DOJ have a case? Image Credit: Jay Fog / ShutterstockSee omnystudio.com/listener for privacy information.

Although a state of emergency was not declared, what is the impact on the Malaysian economy and market? What is the perception of foreign investors and international rating agencies? Stephen Innes, Global Chief Market Strategist at Axi, gives us his views on the matter and also whether he is a bull or bear on the Malaysian market.See omnystudio.com/listener for privacy information.

The Yang di-Pertuan Agong Sultan Abdullah Sultan Ahmad Shah decided against a state of emergency yesterday evening in response to Prime Minister Tan Sri Muhyiddin Yassin’s proposal last Friday. In an official statement from the Palace, the King viewed the government’s measures to fight the pandemic as effective, and had confidence they would be able to continue doing so. In response, the Prime Minister thanked the King for having trust in his government, and that he will discuss what the next steps are with the Cabinet. For some expectations of what we could see next, we speak to Ben Suffian of Merdeka Center. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The US presidential debates are over, and up next is Election Day on Tuesday, November 3rd. Biden is leading in the polls, but will that actually translate into votes on the day? Also, what are the most important states to watch? We discuss this and more with Robert Shapiro. Image Credit: Christos S / Shutterstock.comSee omnystudio.com/listener for privacy information.

A lack of clarity over SOPs and the newest iteration of the Conditional Movement Control Order (CMCO) have caused significant disruption to businesses and confusion all around. As cases remain high, there is no disputing that movement restrictions are necessary - but could things have been done better? Laurence Todd, Director of Research and Development at IDEAS, gives us his thoughts on government communication strategies, the long term economic effect of Covid-19 restrictions, and what he would like to see in Budget 2021. Image Credit: kong ys / Shutterstock.comSee omnystudio.com/listener for privacy information.

Sales of new cars came back strong immediately after the Movement Control Order (MCO) ended, spurred on by pent-up demand and government incentives. But as Covid-19 cases rise and movement is once again curtailed, what does the future hold for the automotive sector? We speak to Vivek Vaidya, Associate Partner at Frost & Sullivan, about changing consumer trends, regional government support measures, and what Malaysia's automotive sector can do to remain competitive in this new normal. Image Credit: Yakov Oskanov / Shutterstock.comSee omnystudio.com/listener for privacy information.

Goldman Sachs has been slapped with penalties in the US to the tune of $2.9 billion, after pleading guilty to crimes linked with the 1MDB scandal. The bank will also claw back compensation worth $174 million from both past and current executives as a result. For some insight on whether this admission of guilt will actually impact Goldman Sachs, as well as thoughts on its effect on the ongoing 1MDB trial, we speak to P. Gunasegaram, Editorial Consultant for news portal The Vibes, and author of the book '1MDB: The Scandal That Brought Down A Government'. Image Credit: Faiz Zaki / ShutterstockSee omnystudio.com/listener for privacy information.

Chinese fintech giant Ant Group has cleared the final regulatory hurdle for its IPO after the China Securities Regulatory Commission gave it the all-clear to list simultaneously in Hong Kong and Shanghai. The Group is planning to raise $35 billion dollars in the dual listing and will split its stock issuance equally across Shanghai and Hong Kong, issuing 1.67 billion shares in each location. This could be the world’s largest IPO, surpassing the record set by Saudi Aramco's $29.4 billion float last December. Ant Group has also released some updated financial figures for the first nine months of 2020. According to an A-share prospectus posted on the Shanghai exchange, there was a 74% jump in gross profit to $10.4 billion from January to September and revenue was $17.73 billion, a more than 42% year-on-year rise. The Group’s next move is to hold a roadshow to market the IPO to investors and will likely price the shares next week on 27th October. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Dr Geoffrey Williams, HELP university updates on the challenges faced by private higher education institutions, and his hopes for Budget 2021. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Big Japanese clothing groups Fast Retailing and Ryohin Keikaku, the owners of Uniqlo and Muji, expect record profits for the year ahead despite a global retail downturn. The two companies are recovering far faster than their Western peers, so we reached out to Catherine Lim, Senior Analyst for Asia Consumer at Bloomberg Intelligence, to find out more. Image Credit: August_0802 / ShutterstockSee omnystudio.com/listener for privacy information.

The Prime Minister has hinted that sustainable development will be given a special focus in Budget 2021. Frederik Paulus, Economic Advisor of REFSA, discusses Malaysia’s climate change commitments and what more needs to be done. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Are regular spikes and lockdowns the new normal? On the back of positive cases crossing the 40 million mark this week, we speak to Benjamin Cowling for his thoughts on the surge, efforts to contain the virus, whether lockdowns are the way to curb the spread, and vaccine expectations. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The number of Covid-19 cases has been rising quickly in Sabah, accounting for close to 75% of active cases in Malaysia. Dr Anbarasu Ramalingam, Chairperson of MERCY Malaysia Sabah, updates in the trenches. Image Credit: Lano Lan / Shutterstock.comSee omnystudio.com/listener for privacy information.