economic Archives - IKON Malaysia

CNA: Malaysia’s Pandemic Withdrawals from Pension Funds Raise Concerns

29Oct

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Finance

CNA: Malaysia’s Pandemic Withdrawals from Pension Funds Raise Concerns

Between 2020 and last year, due to four rounds of COVID-19 withdrawals, 8.1 million Malaysians withdrew RM145 billion from their pension fund. By February 2021, the Employees Provident Fund (EPF) reported that approximately 30% of its members had depleted their retirement savings in Account 1, which cannot typically be accessed before age 55. By the end of the previous year, around 51.5% of members under the age of 55, almost 6.7 million people, had less than RM10,000 in their accounts. Based on the EPF's calculations from the previous year, only about 4% of Malaysians could afford to retire. Calls for further EPF withdrawals have been growing, exacerbated by inflation. Prime Minister Anwar Ibrahim has proposed a new EPF account for flexible access during emergencies. H...

EPF’s Domestic Investments Surge to RM665 Billion, Anticipating Further Growth in 2023

25Oct

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Business

EPF’s Domestic Investments Surge to RM665 Billion, Anticipating Further Growth in 2023

The Employees Provident Fund (EPF) has reported substantial growth in its domestic investments, reaching RM665 billion as of June 2023, reflecting a 9% increase compared to the previous year. Deputy Finance Minister Datuk Seri Ahmad Maslan shared this information, projecting that the total domestic investment would reach RM700 billion by the end of 2023. Ahmad Maslan explained that the EPF's investment decisions are guided by the annual fund allocation determined by the EPF investment panel. In recent years, over 80% of the total fund allocation was typically earmarked for investments in the domestic market. "For the year 2023, the EPF has allocated RM97 billion, which represents 83% of its total investment funds, for domestic investments," stated Ahmad Maslan during a par...

20Oct

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Business

Olive oil is getting pricier?

Severe weather conditions are driving olive oil prices to record highs, making it the latest commodity to experience a notable surge in cost. As per the United States Department of Agriculture's data, global olive oil prices reached an astounding $8,900 per ton in September. This remarkable price increase is attributed to the extremely dry weather conditions in the Mediterranean, which have heightened concerns of supply disruptions. In August, the average price was 130 percent higher than the previous year, surpassing the prior record of $6,242 per ton, which was set in 1996. Regrettably, there are no indications of this price surge abating, according to the USDA. Despite these soaring prices, the consumption of olive oil has been moderately impacted. The enduring consumer an...

LinkedIn dismisses 668 employees due to a slowdown in hiring

18Oct

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Business

LinkedIn dismisses 668 employees due to a slowdown in hiring

As the demand for recruiting services declines, Microsoft's LinkedIn announced on Monday that it would fire 668 employees from its engineering, talent, and finance teams. This is the second wave of job cutbacks for LinkedIn this year. The layoffs, which affect more than 3% of the 20,000-person workforce, come amid a bleak economic forecast and the technology sector has already lost tens of thousands of jobs this year. According to recruitment company Challenger, Grey & Christmas, the sector has let go 141,516 workers in the first half of the year compared to approximately 6,000 a year ago. LinkedIn generates revenue by selling ads and charging sales and recruiting professionals who use the network to discover qualified job applicants a subscription fee. The social medi...

14Oct

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Business, News

Budget 2024, The Key Takeaways

These are the highlights of Budget 2024 tabled in Dewan Rakyat on Friday (Oct 13) by Prime Minister Datuk Seri Anwar Ibrahim. Themed "Reformasi Ekonomi, Memperkasakan Rakyat" (Economic Reform, Empowering People), Budget 2024 involves an allocation of RM393.8bil with RM303.8bil for operating expenditure and the remaining RM90bil for development expenditure, with RM2bil in contingency savings. This is the second budget presented by Anwar, who is also Finance Minister, since the formation of the unity government in November 2022. Last February, Anwar presented a revised budget amounting to RM388.1bil. – Unemployment rate stands at 3.4% as of August 2023 – Government proposes to increase Service Tax to 8% compared to 6% currently – Proposed Service Tax hike excludes food, b...

Generational Endgame policy may result in RM346 mil loss to GDP by 2040 — Oxford Economics

11Oct

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Business, Finance

Generational Endgame policy may result in RM346 mil loss to GDP by 2040 — Oxford Economics

The Generational Endgame (GEG) policy can potentially result in losses of up to RM346 million in gross domestic product (GDP) contributions by 2040, according to a study by research firm Oxford Economics. The report revealed that the implementation of GEG could also lead to the loss of over 2,700 jobs in the formal economy and an additional RM1.2 billion in annual tax revenue leakage due to illicit trade by 2040. Oxford Economics said the actual losses could be even greater as it does not account for the recent contributions of the vape industry since its legalisation in Malaysia. “Oxford Economics’ study indicates that banning vaping could affect the potential tax contributions of the sector, which is estimated at RM1 billion per year,” the report said. The study also rev...

Data reveals that M’sian business conditions have deteriorated to their worst level since January

4Oct

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Business, Finance

Data reveals that M’sian business conditions have deteriorated to their worst level since January

Malaysian manufacturers reported sluggish demand at the end of the third quarter of 2023, as evidenced by a variety of indicators in the most recent purchasing managers index (PMI) data. S&P Global Market Intelligence said in a statement on Monday that output and new orders both moderated more than they did in August, while new export orders decreased at the third-fastest rate in the series' history. Moreover, it noted that purchasing activity slowed to the largest extent since September 2021, while employment levels declined for the sixth consecutive month. This drop in input demand had an impact on stockpiles of purchases as well. The level of outstanding business decreased at one of the fastest rates in the series' history since July 2012, which indicated some spare...

The World Bank lowers its prediction for Malaysia’s GDP growth to 3.9 percent in 2023

4Oct

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Business, Finance, News

The World Bank lowers its prediction for Malaysia’s GDP growth to 3.9 percent in 2023

Amid a significant slowdown in foreign demand, the World Bank lowered its projection for Malaysian GDP growth, which is measured by the country's economy, to 3.9 percent this year from its earlier forecast of 4.3 percent. However, in its East Asia and Pacific October 2023 Economic Update, which was released on Monday, the bank increased its projection for Malaysia's GDP growth to 4.3 percent in 2024 from its prior forecast of 4.2 percent. The country's economy is projected to be led by a resurgence in global growth, the tourism industry, and anticipated increased oil prices, according to Dr. Apurva Sanghi, the World Bank's head economist for Malaysia. “The economy is expected to face significant external risks. Deeper global growth shocks could potentially result in a more si...