In today’s edition of Evening 5 — The government will roll out a targeted subsidy programme for RON95 petrol in the second half of 2024. Meanwhile, MIER sees Malaysia’s GDP growth at 4.3%-4.6% in 2024, with the ringgit at around 4.40 against the US dollar.
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00:00 [Music]
00:04 Economy Minister Mohamad Rafizi Romli said Putrajaya will roll out a targeted subsidy
00:09 programme for Rod 95 petrol in the second half of next year. Rafizi said this in his opening
00:15 address at the MIER organised National Economic Outlook conference today. He stressed the
00:21 unsustainability and unfairness of a system in which the top 20% of income earners receive 53%
00:28 of blanket fuel subsidies. He said the government is taking some time to prepare the foundation for
00:33 this policy to avoid implementing it in a haphazard manner. Previously, Rafizi had said
00:39 that targeted subsidies for petrol and diesel are likely to be introduced next year after the launch
00:44 of the central database system known as PADU in January 2024. This will be rolled out using three
00:51 approaches. The first determines eligibility based on individual net disposable income with
00:57 subsidy provisions through a social protection approach. The second will be based on net
01:02 disposable household income with subsidies to be provided via social protection or aid schemes.
01:09 The third will be based on household and individual earnings
01:12 with assistance to be rendered via the use of a subsidy card.
01:16 [Music]
01:21 Malaysia's economy is expected to grow between 4.3% and 4.6% in 2024, driven by the resurgence
01:29 of the tourism sector, an improved labour market and a rebound in the electrical and electronics
01:35 sector. MIER board member Tan Sri Dr Sulaiman Mahbub said today that mega projects announced
01:41 in budget 2024 can also boost the economy. For 2023, he projected economic growth of around 3.9%.
01:49 Sulaiman, who is also Mieder chairman, said Malaysia attracted RM703.7 billion worth of
01:56 approved investments in the last three years and the multiplier effect could boost the country's
02:01 employment growth. On the ringgit, he expects the local currency to hover around 4.4 against
02:07 the US dollar, propped up by the increase in SST to 8%, as the government will be able to generate
02:13 revenue and then put the country's fiscal position on a stronger footing. Separately,
02:18 Bank Negara Malaysia Assistant Governor Frazier Lee Ismail noted the probable soft landing of the
02:24 US economy and the factors impeding the recovery of currencies, including the ringgit, are gradually
02:30 diminishing. He said there is an increasing likelihood that the worst is behind us.
02:40 RHB Bank said its third quarter FY2023 net profit declined 6.5% to RM649.95 million,
02:48 mainly due to lower net fund-based income. Net interest income dropped 17% to RM915.61 million.
02:57 Group MD and CEO Mohamed Rashid Mohamed said despite headwinds, the group booked a strong
03:03 fiscal performance as it navigated the challenging operating environment. He noted that the lender's
03:09 fundamentals remained strong, as reflected in the healthy capital and liquidity position,
03:14 though it remains vigilant as risks from external factors, including recent developments in
03:20 geopolitical tensions as well as challenges in certain markets where it operates, may dampen
03:26 growth. RHB also remains on track to achieve its Sustainable Financial Services target
03:32 under its five-year sustainability strategy and roadmap. On a cumulative basis, it has attained
03:38 over RM19 billion, equivalent to 99% of its RM20 billion target. Shares in RHB trade a 0.5% lower
03:46 to close at RM5.57, giving the grouper market capitalisation of RM23.87 billion.
03:53 Saim Darby saw its first quarter FY2024 net profit more than double to RM589 million from
04:06 RM207 million as oil segments improved, led by the industrial segment. Coupled with a RM251
04:14 million gain on disposal of Malaysia Vision Valley land to Saim Darby property. Revenue
04:20 in the quarter rose 14.8% to RM13.98 billion, mainly on the back of higher revenue in the
04:26 motors segment. This was its strongest quarterly revenue since the fourth quarter of FY2012,
04:33 when it booked RM14.12 billion revenue with RM1.1 billion net profit, and when its plantation and
04:40 property divisions were still operating within the Saim Darby listed entity. In a statement,
04:45 Saim Darby's Group CEO Datuk Jeffrey Salim Davidson pointed to the successful acquisition
04:51 of Kev Power Group, as well as its divestment of Ramsey Saim Darby Healthcare. Looking forward,
04:58 he said Saim Darby is highly optimistic that the UMW Holdings deal will help to broaden its earnings
05:04 and allow it to capitalise on the mass volume segment. The stock rose 0.4% to RM2.38,
05:11 valuing it at RM16.22 billion.
05:14 The Kuala Lumpur High Court has awarded medical glove maker WRP Asia Pacific a sum of RM15.6
05:27 million from its CEO Datuk Lee Son Hong and his wife Tu Sui Keng, who are both directors of the
05:33 company, for breach of their fiduciary duties. In one of her last judgments before retiring as
05:40 High Court Judge, Liza Chan Sau Keng ordered the pair to pay the sum, comprising RM13.1 million
05:46 and a finance charge of RM2.53 million. She also ordered the interest be charged at 5% per annum
05:53 from the date of judgment until the full payment of the judgment sum.
05:57 This after she ruled that Lee and Tu had funnelled RM13.1 million from the RM32.78 million that was
06:05 paid by WRP Asia to its glove dipping line contractor KSG Engineering into Equatorian,
06:12 a company controlled by Tu with a 66.7% stake. The funds were channelled into Equatorian purportedly
06:19 for the supply of auxiliary equipment to WRP Asia, but no such equipment was provided,
06:25 causing WRP Asia a loss of RM13.1 million.
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