Things to Watch In Malaysia’s Budget 2019 and Key Sector to Watch on Bursa Malaysia on Friday!

Malaysia budget 2019
KUALA LUMPUR: 2nd November 2018 Will be Big Day For Malaysian People, As Financial Minister Lim Guan Eng will present the new government’s 2019 budget plan’s

Key Points to Note for Tomorrow Budget Session:

 
1. Budget Cuts
 
Marc expects the government to cut operating expenditure, with possible cuts in emoluments, pensions, and gratuities and in debt service charges.
 
Prime Minister Dr. Mahathir Mohamad announced two weeks ago that the government will slash its total development budget by 15% to an RM220 billion (US$52.66 billion) ceiling under its five-year development plan ending in 2020.
 
2. New Taxes Announcement
 
The government may introduce new taxes on specific sectors:
1.) E-commerce
2.)Soda or sugar Consumption
3.) Carbon Tax
 
To Increase Government Revenue
 
3. Increase in Tax Rates in Existing Taxes
 
Many Banks Expects the government to increase the tax on the following Sectors:
1.)Gambling
2.)Tobacco
3.)Alcohol
 
To Boost Revenue For Government
 
4. Welfare Aid Revision
 
Prime Minister Tun Mahathir told reporters that government will end an cash aid programme which was introduced by ex-prime minister Najib Razak
 
5. Ease and Affordable Housing Policy
 
The analyst expects affordable housing policy which will encourage lower wage earner and easing of policy will boost the property markets
 
6. Fuel Subsidies
 
The government will likely maintain a blanket fuel subsidy scheme in 2019, as it works on a more targeted scheme, according to Nomura.
 
7. Increase in Fiscal Deficit
 
United overseas banks expect a higher budget deficit of 3.5-4% of GDP in 2018, before settling at 3.0-3.5% next year, as the government works on settling outstanding tax refunds owed by the previous administration.
 
8. Hi-Tech Incentives
Prime Minister Tun Mahathir Government Will give incentives for companies to increase automation and information technology innovations for budget 2019 as country’s push towards the digital transformation of the manufacturing sector
 
Sectors Related to above Points like Information Technology, tobacco and Alcohol Etc may see movements on Friday Malaysian stock markets