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Borneo Post
6 days ago
- Business
- Borneo Post
MADANI government fiscal consolidation on the right track
Malaysia's economy grew by 4.4 percent in the first quarter of 2025, supported by among others, the tourism industry. – File photo KOTA KINABALU: The strong fiscal performance of the MADANI Government indicates that Malaysia's fiscal consolidation efforts are on the right track despite ongoing global economic challenges. Institute for Development Studies Sabah (IDS) Chief Executive Officer Datuk Dr Ramzah Dambul said the national fiscal deficit was successfully reduced by 17 percent to RM21.9 billion in the first quarter of 2025, compared to RM26.4 billion in the same period last year. In addition,government revenue rose by three per cent to RM72.1 billion in the first quarter of 2025, driven by the collection of sales and service tax (SST) and individual income tax, he said. He added that a 2.5 per cent reduction in expenditure to RM94.2 billion – achieved through subsidy rationalisation and savings from lower global oil prices – also contributed to the improved fiscal performance. 'This reflects the success of the tax base expansion strategies and revenue reforms implemented through the MADANI Budget.' 'Moreover, the government plans to introduce capital gains tax and luxury goods tax as new sources of revenue without burdening the people.' 'Discipline in expenditure management is also evident, including through the restructuring of diesel subsidies, which has significantly reduced costs without compromising the welfare of low-income groups. 'Targeted aid initiatives such as the Rahmah Cash Contribution (STR), Basic Rahmah Aid (SARA), and rice seed subsidies are maintained,' he said. 'Spending efficiency has also been improved by optimising grants to statutory bodies,' he said. Datuk Dr Ramzah Dambul Ramzah, who is also an economic researcher, said the enactment of the Public Finance and Fiscal Responsibility Act 2023 sets a target to reduce the fiscal deficit to 3.8 per cent of Gross Domestic Product (GDP) by 2025 and to three per cent by 2028. Similar efforts are also being implemented at the state level, such as the Sabah Government's move to introduce taxes on silica sand and palm biomass products starting in April 2024, he said. 'This proves that governments at all levels are applying strong and disciplined strategies to strengthen revenue and fiscal sustainability. 'This performance also reflects fiscal discipline and the effectiveness of the government's economic reforms, with the 2024 deficit reduced to 4.1 percent of GDP – surpassing the 4.3 percent target – and a commitment to further lower it to 3.8 percent in 2025 under the Act. 'This clearly shows the government's ongoing efforts to strengthen the country's fiscal sustainability,' he said, adding that Malaysia's economic strengthening efforts are in line with its latest fiscal achievements. Ramzah, who is also former Deputy Vice-Chancellor (Research and Innovation) of Universiti Malaysia Sabah (UMS), said Malaysia recorded its highest-ever approved investments in 2024, amounting to RM378.5 billion – a 14.9 percent increase from the previous year – spanning over 6,700 projects and creating 207,000 job opportunities. As such, he said this reflects investor confidence in stable and business-friendly economic policies. He added that the economy grew by 4.4 percent in the first quarter of 2025, supported by household spending, a strong labour market, private investment, and increased exports – especially in the electrical and electronics (E&E) and tourism sectors. He also noted that government efforts to stimulate growth, including strategic industry incentives and skills upgrading programmes, have contributed to this momentum. 'However, the government remains aware that external risks such as trade tensions can have an impact.' 'Hence, efforts to diversify sources of growth, improve productivity, expand export markets, and enhance spending efficiency, and the tax base must continue to be strengthened proactively,' he said. Ramzah also refuted claims that the country's economy is deteriorating, saying they are inconsistent with current facts, especially considering the government's success in reducing the fiscal deficit. He said the national economy continued to grow at a rate of 4.4 percent in the first quarter of 2025, while inflation remained low at around 1.5 to 1.9 percent, with projections remaining below three percent for the year. He added that Malaysia's record-high approved investments of RM378.5 billion also affirm strong confidence from both domestic and foreign investors. 'In fact, the American Malaysian Chamber of Commerce (AmCham) has described this growth as a sign of economic resilience and a stable business environment.' 'Therefore, these fiscal and economic achievements are the best response to negative claims suggesting the country's economy is worsening.' 'The current administration must continue to present verified data, communicate real successes, and be transparent about challenges and solutions.' 'With this approach, public perception can be corrected, and confidence in government policies can be strengthened,' he said.
The Star
22-05-2025
- Business
- The Star
Malaysia's fiscal consolidation remains on track with lower 1Q deficit
KUALA LUMPUR: The federal government's fiscal deficit decreased to RM21.9 billion in the first quarter of 2025 (1Q 2025), compared to RM26.4 billion in the same period last year, indicating that fiscal consolidation remains on the right track. The Ministry of Finance (MoF) said the lower quarterly fiscal deficit was attributed to better revenue collection and expenditure optimisation in consonance with fiscal consolidation initiatives. The MoF today published its 1Q 2025 Malaysian Economy report, which provides an overview of the country's macroeconomic performance and fiscal position. The report was issued quarterly and was part of the MADANI Government's commitment to greater transparency and accountability in the stewardship of public finances. According to the report, the federal government revenue rebounded by three per cent from the corresponding quarter in 2024 to RM72.1 billion, driven by higher tax collection, particularly from a surge in sales and service tax (SST) receipts as well as higher collection of individual income tax. Meanwhile, total expenditure contracted by 2.5 per cent to RM94.2 billion, due primarily to lower subsidy spending following the implementation of the diesel subsidy retargeting programme as well as lower global oil prices. "Nevertheless, targeted social assistance programmes including Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah (SARA), Fish Landing Incentive and Paddy Price Subsidy Scheme have been strengthened. "In addition, grants to statutory bodies were optimised due to operational efficiency and effectiveness of the agencies,' the ministry said. Malaysia's real gross domestic product (GDP) grew by 4.4 per cent, outstripping the 4.2 per cent recorded in the corresponding quarter last year, driven by resilient domestic demand and sustained recovery across key sectors such as services, manufacturing and construction. The full 1Q 2025 Malaysian Economy report can be accessed at the MoF's official website: - Bernama
Malaysian Reserve
17-05-2025
- Business
- Malaysian Reserve
Short-term rates seen steady next week following BNM's operations
SHORT-TERM interbank rates are expected to stay stable next week, backed by Bank Negara Malaysia's (BNM) operations to absorb surplus liquidity in the financial system. This week, the central bank intervened daily by conducting reverse repo, Islamic reverse repo, as well as overnight reverse repo tenders to reduce excess funds in the financial system. On a Friday-to-Friday basis, surplus liquidity in the conventional system rose to RM33.7 billion from RM26.4 billion at the end of the preceding week. In the Islamic system, surplus liquidity climbed to RM25.9 billion from RM24.1 billion previously. The Malaysia Islamic Overnight Rate (MYOR-i) stood at 3.00 per cent as of May 15. — BERNAMA
The Sun
07-05-2025
- Business
- The Sun
I-Berhad kicks off FY25 with 150% surge in Q1 earnings
PETALING JAYA: I-Berhad posted a strong start to FY25, reporting a significant 150% year-on-year surge in profit before tax (PBT), reaching to RM12.36 million, alongside a 53% rise in revenue to RM62.06 million for the first quarter ended March 31, 2025. The performance was driven by steady contributions from the group's three core business segments – property development, property investment, and leisure and hospitality. The group's results validate its strategic pivot over the past year towards building a more resilient and sustainable asset-backed business model – an approach increasingly relevant in a volatile global environment marked with the rising importance of stable cash flows. Leisure and hospitality generated RM26.4 million in revenue during the quarter, remaining the group's leading revenue segment. The newly rebranded Wyndham Garden i-City (formerly Best Western Hotel) recorded healthy occupancy in its first full quarter of operations, contributing alongside DoubleTree by Hilton i-City and Wyndham Suites KLCC. I-Berhad in a statement said that these assets continue to underpin the company's strategy of yield optimisation and premiumisation within its hospitality portfolio. The property development segment recorded a turnaround, posting RM28.36 million in revenue and RM4.62 million in PBT, compared to a loss of RM2.23 million in the same period last year. This was driven by sustained demand for units at BeCentral, as well as a soon-to-be-launched branded residence within i-City Finance Avenue. As at March 31, 2025, unbilled sales stood at RM89.2 million, providing earnings visibility into the quarters ahead. Executive chairman Tan Sri Lim Kim Hong said the results reflected the company's evolution into a more balanced, asset-driven business. 'Over the past year, we've restructured our growth engine to ensure we create an ecosystem that generates recurring income across our existing assets. The performance we are seeing today shows that our strategy is working – our earnings are broad-based, resilient, and supported by both recurring income and market-responsive development,' he added. The property investment segment contributed RM6.66 million in revenue and RM5.28 million in PBT – a 42% increase from the previous year. High occupancy levels at Mercu Maybank Premium Corporate Tower and Central i-City Mall, together with active rental management strategies, helped anchor this recurring income stream. The leisure and hospitality segment's PBT eased to RM2.97 million from RM4.16 million a year ago, mainly due to Ramadan seasonality and initial costs from new offerings. The group expects a stronger second quarter, supported by school holiday tourism and yield optimisation, especially with Visit Selangor 2025 and Visit Malaysia 2026 gaining momentum. Lim said that the group's diversified income sources place it in a strong position to manage changing market cycles. 'We are focused on quality over speed. Each business vertical plays a specific role – some offer growth, others provide stability. This balance allows us to reinvest selectively and protect long-term value.' Looking ahead, I-Berhad will focus on phased development, operational efficiency, and strengthening its commercial leasing. With RM5 billion in remaining GDV at i-City, the group will time future launches to maximise value and align with market conditions. 'With a stabilised earnings base and significant GDV held in reserve, we are entering a new phase – one where disciplined execution, yield optimisation, and long-term ecosystem value will define our performance. We are building more than just structures but a destination, while we are curating experiences, enabling connectivity, and cultivating a future-forward lifestyle hub,' Lim said.
New Straits Times
07-05-2025
- Business
- New Straits Times
I-Berhad records 150pct surge in Q1 profit, driven by diversified asset-backed strategy
KUALA LUMPUR: I-Berhad reported a robust start to its financial year 2025 (FY2025), registering a 150 per cent year-on-year increase in pre-tax profit (PBT) to RM12.36 million and a 53 per cent jump in revenue to RM62.06 million for the first quarter ended March 31, 2025 (Q1). Executive chairman Tan Sri Lim Kim Hong said the Q1 results reaffirm I-Berhad's successful transformation into a balanced, asset-focused company. "Over the past year, we've restructured our growth engine to ensure we create an ecosystem that generates recurring income across our existing assets. The performance we are seeing today shows that our strategy is working. Our earnings are broad-based, resilient, and supported by both recurring income and market-responsive development," he said. I-Berhad's stellar performance was underpinned by solid contributions across the company's three core business segments—property development, property investment, and leisure and hospitality—reflecting the success of its ongoing shift toward a resilient, asset-backed business model that emphasises recurring income. The leisure and hospitality segment remained the company's top revenue generator, delivering RM26.4 million in Q1. The recently rebranded Wyndham Garden i-City (previously Best Western i-City) performed well in its first full quarter of operations, supported by strong occupancy. Alongside DoubleTree by Hilton i-City and Wyndham Suites KLCC, these premium hospitality assets reflect I-Berhad's yield optimisation strategy and focus on delivering elevated guest experiences. The property development division staged a solid turnaround, reporting RM28.36 million in revenue and RM4.62 million in PBT, a marked improvement from the RM2.23 million loss in the same period last year. The rebound was driven by sustained interest in BeCentral units and the upcoming launch of a branded residence within i-City Finance Avenue. As of March 31, 2025, unbilled sales stood at RM89.2 million, offering clear visibility for future earnings, the company said in a statement. The property investment segment saw revenue increase to RM6.66 million, while PBT grew 42 per cent year-on-year to RM5.28 million. This was supported by strong occupancy at Mercu Maybank Premium Corporate Tower and Central i-City Mall, alongside proactive rental management strategies that continue to deliver stable recurring income. PBT from leisure and hospitality eased to RM2.97 million from RM4.16 million a year earlier, mainly due to the seasonal impact of Ramadan and initial ramp-up costs for newly introduced offerings. However, the company expects a stronger second quarter, buoyed by school holiday travel, rising domestic tourism, and upcoming campaigns under Visit Selangor 2025 and Visit Malaysia 2026. Lim said that with RM5 billion in remaining gross development value (GDV) at i-City, the company will continue adopting a phased development strategy, focusing on operational efficiency and strengthening its commercial leasing business. Project launches will be carefully timed to align with market conditions and optimise returns. "With a stabilised earnings base and significant GDV held in reserve, we are entering a new phase, one where disciplined execution, yield optimisation, and long-term ecosystem value will define our performance," said Lim.
