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Borneo Post
29-05-2025
- 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.
New Straits Times
28-05-2025
- Business
- New Straits Times
E&O ends FY2025 with 95pct revenue surge on strong property, JV sales
KUALA LUMPUR: Eastern & Oriental Bhd (E&O) saw a strong finish to its financial year ended March 31, 2025 (FY2025), with fourth-quarter revenue surging 95.1 per cent year-on-year to RM236.7 million, up from RM121.3 million. Pre-tax profit rose 49.3 per cent to RM72.1 million, while net profit nearly doubled to RM74 million. For the full year, revenue climbed 75.3 per cent to RM741.1 million, and net profit increased by 28.8 per cent to RM181.7 million. Excluding unrealised forex losses and one-off items, recurring net profit stood at RM210.5 million, up 95 per cent. E&O said that the strong performance was largely driven by the property segment, which contributed RM630.5 million in revenue, a 102 per cent increase and 85.1 per cent of total group revenue. Joint venture projects, including Conlay, The Peak, and Avira Garden Terraces, contributed RM428.9 million in revenue, marking a 61.5 per cent increase. On an aggregate basis, the total revenue generated by the properties segment, including joint ventures, reached RM1.06 billion. Managing director Kok Tuck Cheong said, "We are encouraged to end FY2025 on a strong note. Our performance reflects the impact of our strategic direction and focus on sustainable growth." At Andaman Island, E&O currently has five ongoing projects with a total gross development value (GDV) of RM2.7 billion. "The group remains committed to delivering high-quality developments that cater to the expectations of discerning homebuyers and investors while enhancing community living and driving long-term value creation," Wong said. Looking ahead, the group plans to launch four residential and retail projects in Penang and the Klang Valley in Q2 or Q3 of FY2026. E&O's hospitality segment also remains steady, and the group expects stronger performance in the new financial year, supported by hotel refurbishments, increased international flights, and expanded visa-free travel between Malaysia and China.
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
