KUALA LUMPUR: CGS-CIMB Securities is upbeat on the potential market impacts from the signing of the Memorandum of Understanding (MoU) on Transformation and Political Stability between the federal government and heads of the Pakatan Harapan component parties.
"We are positive on the signing of the MoU as it could lead to political stability, and if carried out, will allow for parliamentary and institutional reforms which will be positive for the country in the medium- to long-term.
"It is also a sign that the 15th General Elections would unlikely be held before July 31, 2022," the research house said in a note today.
Under the MoU, the government has promised a series of reforms and a time frame to achieve them.
In return, PH promises not to use its votes to block Budget 2022 if the reforms proceed on schedule, and that it is consulted on the Budget Bill.
The government has also agreed to PH's push for a RM45 billion fiscal injection to fight the COVID-19 pandemic, including additional funding for the healthcare system, additional aid for the vulnerable and support for businesses.
The government will also seek interest exemptions for loan moratorium recipients from the bottom 50 per cent of the population for the fourth quarter of 2021 (Q4 2021).
However, CGS-CIMB Securities noted that this would be a potential earnings disappointment for banks.
"Our banking analyst estimated that this could reduce our net profit forecasts for banks by 5.0 per cent," it said, adding that it viewed the move as a 'neutral' for the banking sector.
It said investors are likely to look for signs of recovery as the government rolls back on movement restrictions in the coming weeks.
As of Sept 13, 65.4 per cent of Malaysia's total population have received at least the first dose of the COVID-19 vaccine, and 53.5 per cent have been fully vaccinated.
Malaysia's new COVID-19 cases fell to a 50-day low of 15,699 yesterday.
"There are also plans to reduce the number of standard operating procedures in the National Recovery Plan from 181 to only 10 soon as the country transitions to the endemic phase.
"This will likely revive business activities and corporate earnings in Q4 2021 forecast, in turn potentially boosting sentiment on recovery stocks," it added.
-- BERNAMA
Bernama
Wed Sep 15 2021
Under the MoU, the government has promised a series of reforms and a time frame to achieve them. - Pic via Parliament
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.