World Bank revises Malaysia’s economic growth forecast to 3.3% in 2021
The World Bank has revised Malaysia’s economic growth projection to 3.3% in 2021, down from the 4.5% forecast in June. It said the ongoing Movement Control Orders, increased precautionary behaviour and subdued labour market conditions were expected to weigh down further on private consumption and overall economic growth, especially for services-related sectors, which had been heavily impacted by movement restrictions. “However, the external sector will continue to provide support to the economy, especially in the exports of electrical and electronic (E&E) goods and medical rubber gloves,” it said. The World Bank also said the number of Malaysians living below the national poverty line of US$10 per person per day (2011 PPP) was expected to decline gradually, and the poverty rate was expected to return to its pre-pandemic level by 2022. The pace and trajectory of recovery going forward would depend on several factors, namely the national vaccination programme and the effectiveness of pandemic containment measures. The World Bank has projected higher economic growth of 5.8% in 2022 and 4.5% in 2023 for Malaysia. (The Star)
National House Buyers Association urges govt to set up data bank on housing projects
The National House Buyers Association (HBA) has urged the government to set up a data bank where information on affordable housing projects can be made available to the public. HBA honorary secretary-general Datuk Chang Kim Loong said the data bank should contain information on projects under construction or planned by the various government or private housing providers, state economic agencies, federal bodies and funding schemes. “This will allow individuals to learn about the availability of those in the low, medium and affordable categories in their communities and the financing options available,” he said. On Monday, Prime Minister Datuk Seri Ismail Sabri Yaakob announced a RM2.25 billion allocation as housing assistance in the 12th Malaysia Plan (12MP). (The Edge)
Economists: New taxes possible to enable RM400b budget for 2021-2025 development
The Malaysian government could possibly still introduce new taxes in the country, in order to have sufficient funds for the historic RM400 billion allocation for government spending to develop the nation over five years under the 12th Malaysia Plan (2021-2025), economists have said. This is because the government has also planned for the annual budget deficit to be lower by the time the 12th Malaysia Plan ends in 2025, which means that the government has to collect more revenue to enable the meeting of the targeted deficit while still being able to earmark RM400 billion for the five-year period. Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said this RM400 billion allocation for development expenditure under the 12MP is the highest-ever amount, as compared to the country’s previous five-year plans. In Malaysia, the government’s revenue comes from non-tax revenue (such as licences, permits and investment income), as well as from tax revenue that is further divided to direct tax (such as income tax from companies and individuals, and petroleum income tax) and indirect tax (such as the sales and services tax, excise duties, import duties and export duties). There is still potential for the government to roll out other taxes, even as the 12MP did not make mention of such new taxes. (Malay Mail)
85.1% of Malaysia’s adult population fully vaccinated
A total of 19,912,566 individuals or 85.1% of the adult population in the country have completed their Covid-19 vaccination as of Tuesday (Sept 28). Based on the Health Ministry’s data on CovidNow, 94% or 21,993,709 individuals of the adults in the country have received at least one dose of the vaccine. It also showed 33,050 individuals or 1.1% of the adolescents, comprising those aged between 12 and 17, having completed the vaccination. (The Star)
Hatten Land to operate at least 1,000 cryptocurrency mining rigs at its Melaka retail malls
Singapore Exchange (SGX)’s Catalist-listed Hatten Land Ltd has signed an agreement with Frontier Digital Asset Management Pte Ltd to jointly operate at least 1,000 cryptocurrency mining (cryptomining) rigs within Hatten Group’s properties in Malaysia. Hatten Land said cryptomining rigs will be installed starting from the fourth quarter of this year (4Q21) in phases under the strategic collaboration and management agreement between Hatten Land’s wholly-owned subsidiary Hatten Technology (S) Pte Ltd (HTPL) and Singapore-based Frontier, which currently operates over 700 cryptomining rigs in Singapore. This comes after Hatten Land recently announced that it would repurpose its retail malls in Melaka for digital activities such as cryptomining and e-commerce, with these activities leveraging existing infrastructure and lower energy costs in Malaysia. It added that such costs may be lowered further as Hatten Land instals solar panels on malls in an effort to turn its malls into hubs for energy-efficient or “green” cryptomining. (The Edge)
Tioman, Genting Highlands tourism bubble put on hold
The Tioman Island and Genting Highlands tourism bubble scheduled to begin on Oct 1 has been suspended indefinitely, says Tourism Pahang general manager Kamaruddin Ibrahim. He said the move followed a statement by Prime Minister Datuk Seri Ismail Sabri Yaakob that the reopening of island resorts and tourism centres or destinations and inter-state travel would only be allowed when the vaccination rate of the country’s adult population had reached 90%. “Following this, only Pahang residents are allowed to travel to tourist destinations in the state while adhering to the strict SOPs,” he said. The Tourism, Arts and Culture Ministry had reportedly proposed that after Langkawi in Kedah, three other destinations namely Genting Highlands, Tioman Island and Melaka be reopened to tourists under the domestic tourism bubble. (The Star)
DBKL urged to gazette Federal Hill as green lung, review rezoned area
A green enclave in the city first developed by the British during the colonial era, Federal Hill (Bukit Persekutuan) is a low-density residential area amid some 18 acres of secondary forest. A group of residents living in its vicinity are questioning the authorities’ decision to rezone an area within it to mixed development despite its previous residential status. Alongside non-governmental organisation (NGO) Selamatkan Kuala Lumpur (SKL), these residents want the authorities to reverse any plans for mixed development in the “last sizable” green lung in the city. Local residents are worried about possible disasters such as landslides that could occur due to soil erosion. In the Kuala Lumpur City Plan 2020, it was found that the land parcel in Federal Hill had been rezoned to Mixed Development with a plot ratio of 1:6. (Malay Mail)
