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Asia News Network
2 hours ago
- Business
- Asia News Network
What's next after Malaysia's one-off cash aid?
July 24, 2025 KUALA LUMPUR – The special targeted relief announced by Prime Minister Datuk Seri Anwar Ibrahim must be complemented by long-term strategies to support those in need, says the Federation of Malaysian Consumers Associations (Fomca). Its vice-president Datuk Indrani Thuraisingham said while Fomca welcomes the measures, including the one-off RM100 cash assistance for eligible individuals and the adjustment of RON95 ceiling price, the impact of such initiatives remains limited due to its one-time nature and the escalating cost of basic goods and services. 'In the long term, Malaysia needs a more resilient and inclusive economic model that puts the welfare of ordinary consumers at the centre of policy-making. 'While short-term aid is necessary during times of economic uncertainty, it must be complemented by structural reforms that reduce cost burdens, protect vulnerable groups including the lower middle class segments, and ensure a fairer distribution of national wealth,' she said when contacted yesterday. Yesterday, Anwar announced several key initiatives as part of the Madani government's appreciation for the people, including a one-off RM100 Sara aid via MyKad for all Malaysian adults, postponement of toll rate hikes for 10 highways, and a lower subsidised RON95 petrol price of RM1.99 per litre. Kathleen Chem, an associate director in Fitch Ratings' Sovereigns team, said: 'Fitch estimates the total cost of these measures at RM2.3bil, or about 0.1% of GDP, which we believe can be accommodated within the Budget 2025 target of 3.8% of GDP. 'Eligible Malaysians will also benefit from a lower RON95 petrol price of RM1.99 per litre, below the current subsidised rate, when the targeted subsidy for RON95 petroleum is implemented,' added Chem. However, she said rationalisation of RON95 subsidies appeared to be further delayed as details would be announced only by the end of September. 'Further delays or insufficient progress on subsidy rationalisation could undermine consolidation efforts and jeopardise the government's goal to reduce the deficit to 3% by 2028. 'Fitch expects Malaysia's general government debt to remain high, at around 76.5% of GDP in 2025, with only a gradual decline in the medium term based on the current fiscal consolidation plan,' she added. Small Medium Enterprise Association of Malaysia president Dr Chin Chee Seong said the measures announced were more for the people and not for businesses. The RM100 cash incentive and the reduction in the electricity bill was meant to help the people cope with inflation, he said, but the cost of doing business, too, had been on the rise. The public holiday announced, too, would result in production loss, especially for the manufacturing sector. 'No concrete measures to ease the burden of SMEs (were announced), especially on the issue of increasing cost of doing business. 'We are to face additional cost when RON95 rationalisation is implemented,' he said. Welcoming the announcement, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said the measures would help ease the cost of living and spur household consumption expenditure. 'Pending the detailed announcement of the fuel subsidy rationalisation mechanism in terms of eligible criteria, a reduction of RM0.06 in RON95 price to RM1.99 per litre would benefit around 18 million car and motorcycle users,' it said in a statement. While the special holiday on Sept 15 – set in appreciation of the Malaysia Day celebrations on Sept 16 – would encourage more 'cuti-cuti Malaysia' over a long weekend, ACCCIM said this could also lead to additional labour costs. Saying that it is looking forward to the tabling of the 13th Malaysia Plan (13MP) on July 31 and Budget 2026, the group added that the government's five-year blueprint and spending plan would ensure the continuity of national development, as well as prioritising sustaining economic resilience and high-quality investment. It hopes no new tax measures or policies would be introduced under Budget 2026 as this would further burden businesses that are already reeling from cost increases. 'Malaysia must continue to maintain pro-investment and business-friendly policies to attract and retain both domestic and foreign investments, fostering economic growth,' said ACCCIM in the statement. Malay Businessmen and Industrialists Association of Malaysia (Perdasama) president Mohd Azamanizam Baharon said the measures announced were seen as proactive and people-friendly steps that would have a direct positive impact on the domestic economy. 'The drop in fuel prices, for example, will help reduce business, logistics and transportation costs, allowing traders to remain competitive. 'At the same time, the additional holiday (on Sept 15) is expected to boost local tourism and the hospitality sector. 'Perdasama members involved in this industry, including hotel operators, homestay owners, restaurants, hawkers and small traders, will certainly welcome this move, which is likely to increase bookings, tourist visits and sales during the long holiday,' he said.
Gulf Business
9 hours ago
- Business
- Gulf Business
Dubai's Emirates NBD half-year profit dips 9%, hit by tax, lower recoveries
Image credit: Getty Images Emirates NBD, Dubai's biggest bank by assets, reported on Thursday a 9 per cent fall in its first-half net profit, as lower recoveries and a new higher tax rate impacted the lender's results. The bank posted a net profit of Dhs12.5bn ($3.40bn) in the six months to June 30, down from Dhs13.8bn over the same period in 2024. Read- ENBD, majority-owned by Dubai's government, said recoveries in the first half of 2025 were down by Dhs2bn, which compared with 'very strong recoveries' last year, the bank said in a statement. UAE banks have been benefitting from steady economic growth, rising demand for credit and government-driven investment in non-oil sectors in recent years. In Dubai, the Gulf's tourism and financial hub, a business-friendly environment has attracted a slew of companies and high-net-worth clients, contributing to a spike in real estate prices. However, Ratings agency Fitch expects a correction in real estate prices in the second half and in 2026, as new builds come to the market, it said in May. ENBD's total assets reached Dhs1.09tn as of end-June, up 17 per cent from a year earlier, with both net interest income and non-funded income rising by double digits. The bank's total gross loans rose 12 per cent to Dhs570bn in the first six months, with nearly half of the increase coming from international operations. They were outpaced by deposits, which grew 18 per cent to Dhs737bn. Its net interest margin dropped to 3.47 per cent at the end of June, its lowest since 2022, impacted in the second quarter by a rate hike in Turkey, where ENBD operates through its unit DenizBank.
New Straits Times
9 hours ago
- Business
- New Straits Times
Dubai's Emirates NBD half-year profit dips 9pct, hit by tax, lower recoveries
DUBAI: Emirates NBD, Dubai's biggest bank by assets, reported on Thursday a nine per cent fall in its first-half net profit, as lower recoveries and a new higher tax rate impacted the lender's results. The bank posted a net profit of 12.5 billion dirhams (US$3.40 billion) in the six months to June 30, down from 13.8 billion over the same period in 2024. ENBD, majority-owned by Dubai's government, said recoveries in the first half of 2025 were down by 2 billion dirhams, compared with "very strong recoveries" last year, the bank said in a statement. UAE banks have been benefitting from steady economic growth, rising demand for credit and government-driven investment in non-oil sectors in recent years. In Dubai, the Gulf's tourism and financial hub, a business-friendly environment has attracted a slew of companies and high-net-worth clients, contributing to a spike in real estate prices. However, ENBD said on Thursday that while in the first half, "property transactions in Dubai were higher compared with 2024", price growth "is moderating." Ratings agency Fitch expects a correction in real estate prices in the second half and in 2026, as new builds come to the market, it said in May. ENBD's total assets reached 1.09 trillion dirhams as of end-June, up 17 per cent from a year earlier, with both net interest income and non-funded income rising by double digits. The bank's total gross loans rose 12 per cent to 570 billion dirhams in the first six months, with nearly half of the increase coming from international operations. They were outpaced by deposits, which grew 18 per cent to 737 billion dirhams. Its net interest margin dropped to 3.47 per cent at the end of June, its lowest since 2022, impacted in the second quarter by a rate hike in Turkey, where ENBD operates through its unit DenizBank.
The Star
17 hours ago
- Business
- The Star
What's next after one-off cash aid?
Groups: Stronger economic model needed PETALING JAYA: The special targeted relief announced by Prime Minister Datuk Seri Anwar Ibrahim must be complemented by long-term strategies to support those in need, says the Federation of Malaysian Consumers Associations (Fomca). Its vice-president Datuk Indrani Thuraisingham said while Fomca welcomes the measures, including the one-off RM100 cash assistance for eligible individuals and the adjustment of RON95 ceiling price, the impact of such initiatives remains limited due to its one-time nature and the escalating cost of basic goods and services. 'In the long term, Malaysia needs a more resilient and inclusive economic model that puts the welfare of ordinary consumers at the centre of policy-making. 'While short-term aid is necessary during times of economic uncertainty, it must be complemented by structural reforms that reduce cost burdens, protect vulnerable groups including the lower middle class segments, and ensure a fairer distribution of national wealth,' she said when contacted yesterday. Yesterday, Anwar announced several key initiatives as part of the Madani government's appreciation for the people, including a one-off RM100 Sara aid via MyKad for all Malaysian adults, postponement of toll rate hikes for 10 highways, and a lower subsidised RON95 petrol price of RM1.99 per litre. Kathleen Chem, an associate director in Fitch Ratings' Sovereigns team, said: 'Fitch estimates the total cost of these measures at RM2.3bil, or about 0.1% of GDP, which we believe can be accommodated within the Budget 2025 target of 3.8% of GDP. 'Eligible Malaysians will also benefit from a lower RON95 petrol price of RM1.99 per litre, below the current subsidised rate, when the targeted subsidy for RON95 petroleum is implemented,' added Chem. However, she said rationalisation of RON95 subsidies appeared to be further delayed as details would be announced only by the end of September. 'Further delays or insufficient progress on subsidy rationalisation could undermine consolidation efforts and jeopardise the government's goal to reduce the deficit to 3% by 2028. 'Fitch expects Malaysia's general government debt to remain high, at around 76.5% of GDP in 2025, with only a gradual decline in the medium term based on the current fiscal consolidation plan,' she added. Small Medium Enterprise Association of Malaysia president Dr Chin Chee Seong said the measures announced were more for the people and not for businesses. The RM100 cash incentive and the reduction in the electricity bill was meant to help the people cope with inflation, he said, but the cost of doing business, too, had been on the rise. The public holiday announced, too, would result in production loss, especially for the manufacturing sector. 'No concrete measures to ease the burden of SMEs (were announced), especially on the issue of increasing cost of doing business. 'We are to face additional cost when RON95 rationalisation is implemented,' he said. Welcoming the announcement, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said the measures would help ease the cost of living and spur household consumption expenditure. 'Pending the detailed announcement of the fuel subsidy rationalisation mechanism in terms of eligible criteria, a reduction of RM0.06 in RON95 price to RM1.99 per litre would benefit around 18 million car and motorcycle users,' it said in a statement. While the special holiday on Sept 15 – set in appreciation of the Malaysia Day celebrations on Sept 16 – would encourage more 'cuti-cuti Malaysia' over a long weekend, ACCCIM said this could also lead to additional labour costs. Saying that it is looking forward to the tabling of the 13th Malaysia Plan (13MP) on July 31 and Budget 2026, the group added that the government's five-year blueprint and spending plan would ensure the continuity of national development, as well as prioritising sustaining economic resilience and high-quality investment. It hopes no new tax measures or policies would be introduced under Budget 2026 as this would further burden businesses that are already reeling from cost increases. 'Malaysia must continue to maintain pro-investment and business-friendly policies to attract and retain both domestic and foreign investments, fostering economic growth,' said ACCCIM in the statement. Malay Businessmen and Industrialists Association of Malaysia (Perdasama) president Mohd Azamanizam Baharon said the measures announced were seen as proactive and people-friendly steps that would have a direct positive impact on the domestic economy. 'The drop in fuel prices, for example, will help reduce business, logistics and transportation costs, allowing traders to remain competitive. 'At the same time, the additional holiday (on Sept 15) is expected to boost local tourism and the hospitality sector. 'Perdasama members involved in this industry, including hotel operators, homestay owners, restaurants, hawkers and small traders, will certainly welcome this move, which is likely to increase bookings, tourist visits and sales during the long holiday,' he said.
Chicago Tribune
a day ago
- Business
- Chicago Tribune
Mayor Brandon Johnson's CFO says property tax hike ‘likely' in 2026 budget
Mayor Brandon Johnson's team teased plans this week to take another swing at raising property taxes to close the city's more than $1 billion budget gap, despite an aldermanic revolt last year and continued resistance to such a hike. Asked in an interview with Bloomberg's Romaine Bostick whether a property tax increase would again be proposed for the city's 2026 budget, Chief Financial Officer Jill Jaworski said 'it is likely that that will be part of the package,' without addressing how to garner support from the City Council to pass it. One of Johnson's 'budgeteers' last year, Ald. Matt O'Shea, 19th, said he would need to see major cuts and efficiencies to be won over. 'And if it doesn't happen, I'm a no vote, and so are the majority of my colleagues,' he said. 'We need to start talking about stuff we never talked about before.' Jaworksi affirmed cuts will also be part of the mayor's budget package, but said the administration is 'hoping to avoid' reducing services. She suggested the city would be addressing a chief complaint from the business community about the unpredictability of property taxes. 'You're thinking about investment, uncertainty is the enemy, right?' It's a similar line to the one Mayor Lori Lightfoot used when she successfully proposed tying annual property tax hikes to 5% or the rate of inflation, whichever was lower. Johnson, who campaigned against raising property taxes and instead pitched other progressive revenues, backed off of Lightfoot's policy in his first budget, only to renege last year amid a nearly $1 billion deficit. Aldermen preemptively voted against that hike. The final budget instead included a bigger share of one-time fixes — including using federal pandemic dollars and prior-year surplus — to close the gap. Ratings agencies that help determine how much the city will owe on debt have cited a lack of progress finding 'permanent and high impact solutions' to close its budget gap as black marks. Property taxes are among the most stable and predictable revenues the city can raise on its own. Fitch also dinged the city earlier this year for its pursuit of other revenues 'that require state or voter support, which do not appear to be forthcoming in the near term.' Jaworski has argued the state should legalize taxing services. Johnson has called for taxing the rich, but since the failure of the 'Bring Chicago Home' referendum, has not proposed how the city would do it. Ald. Brian Hopkins, 2nd, said he appreciated Jaworski's commitment to a balanced budget, but cautioned Johnson's administration to not start discussions by saying a property tax hike is necessary. It is the mayor's job — not Jaworski's — to sell the public on such a tax hike, and a critical part of doing that is showing the math that would make it necessary, Hopkins said. 'People don't want to be told it's inevitable and unavoidable, because they don't believe that,' he said. 'It'll spark a rebellion. People will feel manipulated and like something is being forced down their throats.' While currently opposed to a property tax hike, Hopkins said 'I don't think we can rule out anything.'
