Browsed by
Tag: politics

Budget 2021 – Amidst Malaysia’s Political & Economic Uncertainty (Guest Post)

Budget 2021 – Amidst Malaysia’s Political & Economic Uncertainty (Guest Post)

At RM322.5billion, Malaysia Budget 2021 is the largest budget in the country’s history. But will it pass?

amidst-malaysias-1

This post was originally posted here. The contributor to this article,@Denise is one of our many community members on InvestingNote.

While the World Bank has come forward to welcome the overall stance of Malaysia budget 2021, it is still unclear if the bill will pass.

Malaysian finance minister Tengku Zafrul Tengku Abdul Aziz tabled the 2021 national budget in parliament last Friday on Nov6; also the first budget under Prime Minister Muhyiddin Yassin’s administration.

But already, it appears the current administration is in for a bumpy road ahead. There are a lot of doubts if the budget is even able to pass because of politics.

In his budget speech, the Finance Minister has projected the economy to expand between 6% and 7% next year.
In response to that, Mr Anwar argued that the projections of development figures in the budget proposals were unrealistic and “not responsible”. He also commented that the budget was “misleading” and benefits cronies instead of the people.

Besides Anwar, The Pejuang party leader, Mahathir, also joined the disapproval of the budget in a Facebook post saying he wants it modified so that it is “more realistic”. His reasons were that the pandemic requires more money to be spent by the government, but it has also affected the Government’s revenue.
Mahathir further questioned where the money will come from, considering the deficit of about RM85 billion is much bigger than the development budget of RM69 billion.

Accordingly, there is a high possibility the passage of the budget would be blocked by Members of Parliament with a no-confidence vote against Mr Muhyiddin.

However should the bill is passed, these could mean the following for Malaysians and the economy:

i) Employee Provident Fund (EPF) account-holders will be entitled to withdraw up to RM500 per month, for one year from their EPF Account 1. Before this, account holders are only allowed to withdraw once they reach 50 years old.

ii) Certain sectors are bound to benefit from the budget 2021, and others not:

On a more positive side, the setback seemed to be avoided after the king pressed MPs from both sides of the political divide to support the Bill. It was the first time in Malaysia’s history that opinions have been sought from opposition lawmakers on the Budget’s formulation.

It is worth pointing out that the Government usually makes additional changes before the final bill is passed. After all, this is just the first reading of the budget.

Let’s hope Malaysia is able to tide through this crisis! ??? $KLCI(^KLSE.IN)

 

Once again, this article is a guest post and was originally posted on Denises profile on InvestingNote.

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

button_view-now


InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

apple android

Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings, and updates!

Trump-Kim summit will cost Singapore about $20mil to host ??️

Trump-Kim summit will cost Singapore about $20mil to host ??️

It’s official: Trump-Kim summit will cost Singapore about $20mil to host ??

North Korean leader Kim Jong Un and United States President Donald Trump both touched down in Singapore on yesterday, June 10th.

kim3For a summit that was planned months before.

This summit is significant because this is the very first time both Trump and Kim are meeting each other. This summit also lays out the possibilities that could impact the security of not only the Korean peninsula, but also the rest of the region and world. At this summit, the two leaders are expected to address the complete denuclearisation of the peninsula and possibly declare an end to the Korean War, which has been going on for nearly seventy years.

The summit is the first of its kind, for it is setting in motion a series of events that could have lasting global ramifications.

kimw

trumplee-handshake

Prime Minister Lee Hsien Loong also said that the bill for hosting the historic Trump-Kim summit will come up to about $20 million. He added that this is Singapore’s contribution to an international endeavour that is “in our profound interest”, as cited by The Straits Times.

Read More Read More