MY Morning Wrap | Bursa Malaysia's Q2 Net Profit Hits Three-year High

The Ministry of Finance (MOF) of Malaysia is contemplating the introduction of a new Public-Private Partnership (PPP) Masterplan in Budget 2025, aiming to boost private investment in vital public infrastructure. This initiative, set to be discussed in Parliament on October 18, seeks to enhance the sharing of risks and rewards with the private sector. The MOF is also focused on broadening the nation's low tax revenue base to ensure a progressive tax system and improve tax compliance. Upcoming budget measures will target various sectors, including defense, the green economy, micro, small, and medium enterprises (MSMEs), as well as Islamic finance and tourism, with the goal of strengthening Malaysia's position as a leader in ethical finance and preparing for Visit Malaysia 2026.

The Ministry of Finance (MOF) of Malaysia has set three immediate priorities for the forthcoming Budget 2025, focusing on the tenets of the Madani Economy. These priorities include: 1) enhancing economic restructuring for better competitiveness and value-added activities, 2) improving quality of life and inclusivity of opportunities, and 3) bolstering governance and public service delivery. The Finance Minister II reaffirmed the commitment to fiscal reforms and supporting private sector growth within the framework of the Fiscal Responsibility Act. With the economy showing signs of robust growth, the MOF aims to foster public engagement and transparency in the budget process, inviting stakeholders to contribute through consultations and the Budget 2025 portal. The budget is set to be presented in Parliament on October 18.

Malaysia's glove industry is facing a significant challenge as local glove stocks take a hit from the aggressive expansion of Chinese glove manufacturers. Maybank's investment banking research team has adjusted their rating on Malaysian glove stocks from "positive" to "tactical positive" in response to the escalating competition. Top Glove, Kossan, and Hartalega, three of Malaysia's leading glove companies, experienced a continued decline in stock prices, contributing to a 2.104% fall in the healthcare index that led the FTSE Bursa Malaysia KLCI index lower. Maybank's report highlighted the impressive advanced technology of Chinese firms like Shenzhou and Blue Sail, which analysts observed during a visit to Shandong Province. While acknowledging the potential for strong profitability for local manufacturers in the near term due to rising demand, the report cautions of a looming price war with Chinese competitors.