Lihat dan baca apa yang saya dapat dari Bloomberg. Please take note. The government’s spending restraint is aimed at maintaining confidence in Malaysia’s fiscal outlook as capital outflows from emerging markets deliver particular trauma to countries like India and Indonesia, which are grappling with current-account deficits and budgets burdened with subsidy costs. The ringgit weakened about 2 percent this quarter, among the worst performers in Asia. The country’s default risk rose above that of the Philippines for the first time this year. At 53.3 percent, Malaysia’s debt-to-GDP ratio is the highest among 13 emerging Asian markets after Sri Lanka, according to data compiled by Bloomberg. Fitch cited rising debt levels and a lack of budgetary reform when it cut the country’s rating outlook. Moody’s Investors Service said this month the budget deficit may exceed 4 percent of GDP this year, warning the government’s fiscal targets will become “increasingly out of reach” without additional measures to contain it. Malaysian consumers and businesses from builders to retailers are bracing for rising prices and slower economic growth, as the 11 percent increase in diesel and gasoline costs this month raises inflation risks while the potential slowdown in state spending cuts construction and maintenance contracts. “Food is going to be more expensive and I think we will have to reduce eating out,” said scrap-metal dealer Selvarajoo Sinnapan, 54, who has three cars and two trucks. “What I am more worried about is the price of food and other basic daily necessity things. I am sure many farmers and traders will start hiking up prices.” Economic growth may slow to 4.3 percent this year, the worst performance since the global recession in 2009, according to DBS Group Holdings Ltd. The banking group cut its forecast from 5 percent this month, saying the government’s efforts to improve fiscal health will dent consumer spending and investment. Najib went on a spending binge to woo voters before the May election, including smartphone rebates for youths, household electricity subsidies and higher wages for civil servants. He’s now focusing government spending on more specific areas, saying public projects with low import content will continue while those requiring more imports will be “sequenced accordingly.” umngok2 faham tak?
Posted on: Mon, 30 Sep 2013 04:00:23 +0000
Trending Topics
Recently Viewed Topics
© 2015