Latest news with #RM5bil
The Star
7 days ago
- Business
- The Star
Ekuinas committed direct investments up to RM5bil for FY24
KUALA LUMPUR: Ekuiti Nasional Bhd's (Ekuinas) cumulative committed direct investments rose to RM4.9bil last year (FY24) from RM4.5bil a year ago, with total economic capital deployed at RM5.6bil. In a statement yesterday, the government-linked private equity company said funds under management increased by 19% to RM5bil. Its operating expenditure-to-funds under management ratio remained steady at 1.1%. The private-equity company said the gross internal rate of return (GIRR) for the Ekuinas Direct Tranche IV Fund was 38.9%, while Tranche II Fund was 12%. 'Ekuinas Direct Tranche III Fund showed modest improvement with a GIRR of 1.6%. Meanwhile, our outsourced programme reported GIRRs of 3.8% for Tranche I and minus 6.9% for Tranche II,' Ekuinas said. The earnings before interest, tax, depreciation and amortisation (Ebitda) of portfolio companies under Ekuinas Direct Funds grew by 3.3%, rebounding from a 7% contraction in 2023. Unitar Education group recorded Ebitda of 77.2% while Medispec (M) Sdn Bhd and Exabytes Capital Group achieved 48.7% and 30.9% Ebitda growth, respectively. — Bernama
The Star
26-05-2025
- Business
- The Star
Warisan calls for White Paper, audit on Sabah GLCs
KOTA KINABALU: Warisan is urging the Sabah government to table a Cabinet-level White Paper to address the underperformance of several government-linked companies (GLCs) and state agencies in Sabah. Warisan secretary-general Datuk Loretto Padua Jr the White Paper would allow concerned Sabahans to know what led to the underperformance and what the state government plans to do about it. He added that transparency is needed, saying: "The best watchdogs in this state are the people of Sabah themselves, not those appointed by the Chief Minister from the ruling party or coalition." "Prudent spending must be emphasised and all unnecessary overseas trips must be stopped immediately," he said in a statement on Monday (May 26) adding that if Warisan was given the mandate to govern, they would table a White Paper in the State Assembly within six months. He said the White Paper would address matters such as the RM5bil in non-performing loans at Sabah Development Bank and its use of "creative accounting"; the cancellation of Sabah Forest Industries concession land and its reallocation to peninsula-based companies; the water and electricity supply crises including exorbitant charges by private tanker contractors; and the RM1.2bil bailout of Sabah International Petroleum via a RM900mil Sukuk Wakalah issuance by SMJ Energy Sdn Bhd. It would also cover unresolved GLC-related issues previously raised by Warisan and other Opposition parties, which Loretto said were never addressed by GRS-Pakatan Harapan in the state assembly. He also said Warisan would also push for detailed investigations by the National Audit Committee into all problematic state agencies and GLCs. "I believe that a Cabinet White Paper and National Audit Committee investigations are the first steps towards improving the performance of GLCs and state agencies," he said.
The Star
16-05-2025
- Business
- The Star
Malaysia firm on justice for MH17 victims, says PM's political secretary
KAZAN: Malaysia remains firm in its position to seek justice and resolution, particularly for the families and victims of the Malaysia Airlines flight MH17 tragedy, which was shot down over Ukraine in 2014, says Muhammad Kamil Abdul Munim. The political secretary to Prime Minister Datuk Seri Anwar Ibrahim, said, however, that Malaysia must also act wisely in handling the issue. According to him, the fact that the latest report by the International Civil Aviation Organisation (ICAO), which found Russia responsible for downing flight MH17, was released a day before the Prime Minister's visit to Moscow, must be taken into account. "I believe, as the Prime Minister mentioned yesterday, this matter should not be politicised. At this point, what matters most is how we can find ways and means to resolve the crisis or issue that has arisen," he told Malaysian media covering the Prime Minister's official visit to Moscow and Kazan, Tatarstan. He noted that there had been calls for the Prime Minister to take a firm stand on the MH17 tragedy. "In a closed-door meeting with President Vladimir Putin yesterday, the Prime Minister directly raised this issue," he said on Friday (May 16). Meanwhile, Muhammad Kamil described the first segment of the Prime Minister's visit to Moscow as highly fruitful. "The Prime Minister met with the Russian Federation's Prime Minister, Mikhail Mishustin, and President Vladimir Putin, where several important matters were discussed, including volatile trade, as well as other issues. "We have seen developments that could further strengthen and expand economic trade opportunities, including confirmation and finalisation of arrangements for direct flights by Russian carrier Aeroflot, which will soon commence operations from Moscow to Kuala Lumpur," he said. He added that this would further boost tourism between both countries, which has already seen a significant increase in visitor numbers between Russia and Malaysia over the past two years. In addition, he said discussions on other sectors also showed positive progress, including in the halal industry. "The Prime Minister also held meetings with industry players and saw great potential over the next five years. If all goes well, we could see investments valued between RM5bil and RM10bil in trade between Malaysia and Russia," he said. Meanwhile, Anwar is scheduled to attend the gala reception on the occasion of the XVI International Economic Forum "Russia - Islamic World: KazanForum 2025" at midnight Malaysian time. The Prime Minister, who is on a four-day official visit starting May 13, arrived in Kazan Friday for the second segment of his trip, which concludes on Saturday (May 17). - Bernama
The Star
13-05-2025
- Business
- The Star
Govt's fiscal path remains on track
KUALA LUMPUR: Malaysia's fiscal path this year remains on track, but timely execution of targeted fuel-subsidy reforms will be critical to offset short-term revenue shortfalls caused by delays in tax measures, BIMB Research says. In a report, the research house noted that while the government's fiscal strategy continues to emphasise economic growth, fiscal responsibility and social welfare, delays in the expansion of the sales and service tax (SST) and the rollout of phase three of e-invoicing are expected to result in 'a minor headwind to ongoing fiscal consolidation efforts'. 'Together, these postponements could result in a total revenue shortfall of about RM2.5bil, equivalent to roughly 0.1% to 0.15% of gross domestic product (GDP),' it said. Although this gap is modest, BIMB warned that 'it may put upward pressure on the fiscal deficit, particularly if not offset by other measures or expenditure controls'. The SST expansion, which was expected to begin on May 1, has been delayed to June 1, while the third phase of the e-invoicing rollout – initially set for July – is now being pushed to next January. The research house said the expanded SST was expected to raise RM5bil annually, while the full e-invoicing rollout could generate between RM3bil and RM4bil in additional tax revenue once fully adopted. It said the revised SST would apply to more non-essential goods, including imported premium goods like salmon and avocados, and extend to more commercial services, with 5% for food and beverages, 8% for logistics, and 10% for other services. The research firm said the third phase of e-invoicing, which targets medium-sized businesses, is seen as crucial, as it captures a broad swath of small and medium enterprises, where compliance gaps are most prevalent. It said the SST expansion, which was expected to generate about RM700mil a month in additional revenue, would now contribute a month later than planned, resulting in a RM700mil shortfall. Meanwhile, the research house estimated the deferment of e-invoicing for medium-sized businesses could cost the government an estimated RM1.8bil in tax revenue in the second half of the year (2H25). However, BIMB Research highlighted that the government still has fiscal space if it proceeds with rationalising the subsidy for RON95 petrol, which 'remains a high-impact policy lever'. 'If implemented in 2H25, even a partial rationalisation could yield savings in the range of RM4bil to RM6bil for the year, depending on global oil prices and the targeted coverage,' it said. It added that such savings could more than offset the RM2.5bil shortfall from the delayed SST and e-invoicing, while creating room for development spending or social support. 'Moreover, it would signal strong policy commitment to structural reforms, enhancing Malaysia's fiscal credibility and investor confidence amid heightened global economic uncertainty,' the research house said. It added that Malaysia's fiscal outlook remains stable, supported by sustained growth in tax collection, new revenue measures such as the capital gains tax and digital tax, and the government's commitment to fiscal discipline. 'The slight delay in implementing the expanded SST and third phase of e-invoicing is not expected to significantly derail Malaysia's economic growth trajectory. 'Momentum continues to be underpinned by a recovery in private consumption and strengthening export performance.' It also noted that the government's projected fiscal deficit of 3.8% of GDP for this year could widen slightly due to the delays, but could return to 3.85% with subsidy reforms in place. Meanwhile, the research house expects the country's debt-to-GDP ratio to stabilise around 62% to 63%, below the 65% statutory ceiling. 'Overall, Malaysia's fiscal outlook for this year remains stable. Continued focus on policy execution and the careful sequencing of fiscal initiatives will be key to ensuring both economic resilience and fiscal sustainability in the medium term,' BIMB Research said.
The Star
30-04-2025
- Business
- The Star
Revenue drawback with SST delay
PETALING JAYA: The postponement of the expanded scope of the sales and service tax (SST) is expected to help safeguard economic stability at a time of heightened global uncertainty, say economists. Nevertheless, they cautioned that the move is not without costs, as the delay in implementation could result in a short-term decline in government revenue. UCSI University Malaysia finance associate professor and CME research fellow Dr Liew Chee Yoong pointed out the delay in rolling out a wider scope of SST will 'almost certainly' cause the country to miss at least 'a portion' of the additional RM5bil revenue target initially set for 2025. Liew added that given the deferment will likely push the implementation to September or later, the government will lose roughly one-third of its potential taxable period. 'Assuming a steady rate of revenue collection, this would amount to a loss of about RM1.6bil to RM1.8bil,' he told StarBiz. He said when positioned against the government's total projected revenue of RM339.71bil for 2025, the RM5bil expected from the expansion of the SST scope would have contributed about 1.47% of the total. Consequently, the estimated shortfall of RM1.6bil to RM1.8bil corresponds to about 0.47% to 0.53% of total projected revenue. 'Though numerically small, this shortfall is significant in a context where Malaysia is aiming to reduce its fiscal deficit to 3.8% of gross domestic product (GDP) this year. Even minor setbacks in revenue can have disproportionate impacts on fiscal consolidation targets, making the delay fiscally meaningful,' Liew said. The expansion of the SST scope was announced during the tabling of Budget 2025 last year by Prime Minister Datuk Seri Anwar Ibrahim. Back then, Anwar said the sales tax will be imposed on non-essential items, including imported premium items like salmon and avocado. Further, the service tax will be expanded to include business-to-business commercial transactions, particularly fee-based services, that were previously exempted. On Monday, the Finance Ministry announced that the enforcement of the SST scope expansion, which was slated to take place on May 1, will be implemented at a later date. The gazettement of the new tax changes, which was originally supposed to take place in the first quarter of this year, is now scheduled for June 1. It was noted that nationwide engagements with industries to finalise the scope of the expansion and applicable tax rates have been completed. Last November, the government said it expects to raise an extra RM5bil in revenue by enlarging the scope of the SST. Revenue was projected to hit RM51.7bil from the initiative, up from the forecast of RM46.7bil for 2025. While Liew said the decision to delay the expansion of SST scope is 'justified and strategically sound', he also noted the move is not without costs, though the pros outweigh the cons at least in the short term. 'The delay protects domestic consumption, which is pivotal to economic recovery. It supports overall growth momentum and shields households from the rising cost of living. 'Furthermore, it aligns Malaysia's policy approach with other global economies that are favouring fiscal caution over aggressive revenue measures amidst a fragile recovery,' he said. However, beyond the expected revenue loss, Liew also cautioned that there may be a reputational risk regarding the country's fiscal discipline, as delays may send mixed signals to investors and international credit rating agencies. 'Despite these drawbacks, safeguarding economic stability at a time of heightened global uncertainty is a more critical priority. Thus, the decision reflects a pragmatic balancing of risks where protecting the economy outweighs immediate revenue considerations,' he said. Bank Muamalat Malaysia Bhd head of economics, market analysis and social finance Dr Mohd Afzanizam Abdul Rashid said the postponement of the SST scope expansion should be seen in the context of broader global developments. Specifically, he stated the tariff shocks imposed by US President Donald Trump on April 2 present a challenging prospect, especially for the local manufacturing sector, where more than two-thirds operate in export-oriented industries. 'Already, we have seen major organisations such as the International Monetary Fund and World Bank revise down their global growth forecast including Malaysia's GDP growth this year,' Mohd Afzanizam said. Hence, he is of the view that the deferment of the SST scope expansion reflects the government's pragmatic approach in enacting policy measures by constantly looking at the current economic trajectory in order to arrive at a realistic outcome. Since the expansion of SST scope has been deferred, Mohd Afzanizam said the RON95 subsidy rationalisation plan is expected to go ahead as planned. 'If that is the case, then perhaps the government's fiscal deficit-to-GDP target of 3.8% for 2025 would not deviate much,' he said. Meanwhile, Universiti Tunku Abdul Rahman economics professor Wong Chin Yoong said the brief delay in the enforcement of the SST scope expansion is unlikely to cause the government to miss its target of obtaining the additional RM5bil in revenue. Wong opined the reason for the deferment is probably because the authorities and relevant ministries needed more time to fine tune the details of the SST scope expansion, rather than the uncertainties arising from the US' tariffs. 'If the delay was due to the latter, it would likely extend beyond a month, possibly until after the ongoing 90-day pause, allowing businesses to better assess the impact of the tariffs,' he said. Wong said what is more important at this juncture is the implementation of e-invoicing to ensure the proper and effective rollout of the expanded SST scope. The government has announced a six-month delay for the implementation of Phase 3 of e-invoicing earlier this year, pushing it to Jan 1, 2026, from the initially scheduled date of July 1, 2025. 'The SST scope expansion is not the only aspect that matters when it comes to revenue collection, but it is the e-invoicing system that matters the most,' said Wong. He added that the enlarged scope includes fee-based commercial service provisions, which more often than not are not properly recorded as income revenue by the providers. This will end up becoming part of the informal economy. 'With e-invoicing, every such transaction will be invoiced and submitted to the Inland Revenue Board, enabling the government to better capture the corresponding tax revenues,' he said. To this end, Liew said the country has several viable fiscal strategies to strengthen its financial position, in response to the revenue shortfall created by the delay in the SST scope expansion. One major approach is in enhancing tax compliance. 'The informal and shadow economy accounts for roughly 18% to 20% of Malaysia's GDP. Strengthened enforcement and digitisation initiatives like e-invoicing, could yield between RM3bil and RM5bil annually,' he said. Other recommendations include the introduction of new taxes, public asset monetisation for one-off revenues and the potential reintroduction of a more targeted and progressive form of the Goods and Services Tax (GST-lite). 'Strategic divestments of non-essential government land or government-linked companies could result in one-off revenues of between RM5bil and RM10bil. 'Broader structural tax reforms like GST-lite could be deferred until the nation's economic recovery is firmly anchored, likely post-2026, to minimise shocks to household consumption and business investment,' Liew said.
