Array
(
    [_edit_lock] => Array
        (
            [0] => 1729314918:30
        )

    [tdc_icon_fonts] => Array
        (
            [0] => a:0:{}
        )

    [post_views_count] => Array
        (
            [0] => 192
        )

    [tdc_dirty_content] => Array
        (
            [0] => 1
        )

    [_thumbnail_id] => Array
        (
            [0] => 232341
        )

    [_stopmodifiedupdate] => Array
        (
            [0] => 1
        )

    [_modified_date] => Array
        (
            [0] => 
        )

    [footnotes] => Array
        (
            [0] => 
        )

    [_edit_last] => Array
        (
            [0] => 30
        )

    [onesignal_meta_box_present] => Array
        (
            [0] => 1
        )

    [onesignal_send_notification] => Array
        (
            [0] => 
        )

    [onesignal_modify_title_and_content] => Array
        (
            [0] => 
        )

    [onesignal_notification_custom_heading] => Array
        (
            [0] => 
        )

    [onesignal_notification_custom_content] => Array
        (
            [0] => 
        )

    [_post_language] => Array
        (
            [0] => English
        )

    [_molongui_author] => Array
        (
            [0] => guest-97702
        )

    [_molongui_main_author] => Array
        (
            [0] => guest-97702
        )

    [td_post_theme_settings] => Array
        (
            [0] => a:1:{s:11:"td_subtitle";s:98:"Impact on inflation hard to predict now, reason for wide 2%-3.5% inflation forecast range for 2025";}
        )

    [_yoast_wpseo_primary_category] => Array
        (
            [0] => 599
        )

    [_yoast_wpseo_content_score] => Array
        (
            [0] => 60
        )

    [_yoast_wpseo_estimated-reading-time-minutes] => Array
        (
            [0] => 2
        )

    [_yoast_wpseo_wordproof_timestamp] => Array
        (
            [0] => 
        )

    [post_views_count_7_day_arr] => Array
        (
            [0] => a:7:{i:0;a:3:{s:4:"date";s:10:"1752455627";s:5:"count";i:1;s:14:"per_hour_count";a:2:{i:17;i:1;i:1;i:1;}}i:1;a:2:{s:4:"date";i:0;s:5:"count";i:0;}i:2;a:2:{s:4:"date";i:0;s:5:"count";i:0;}i:3;a:2:{s:4:"date";i:0;s:5:"count";i:0;}i:4;a:2:{s:4:"date";i:0;s:5:"count";i:0;}i:5;a:2:{s:4:"date";i:0;s:5:"count";i:0;}i:6;a:2:{s:4:"date";i:0;s:5:"count";i:0;}}
        )

    [post_view_7days_last_day] => Array
        (
            [0] => 0
        )

    [post_views_count_7_day_last_date] => Array
        (
            [0] => 1752455627
        )

    [post_views_count_7_day_total] => Array
        (
            [0] => 1
        )

    [post_views_last_24_hours] => Array
        (
            [0] => 1
        )

    [post_views_last_48_hours] => Array
        (
            [0] => 1
        )

)
Targeted RON95 subsidy next year to reduce fiscal deficit, upside risk remains: StanChart | Scoop
Subsidy rationalisation for RON95 is expected to result in RM8 billion in annual savings, but with implementation planned for mid-year, only RM4 billion can be achieved in 2025. - Scoop file pic, October 19, 2024
News

Targeted RON95 subsidy next year to reduce fiscal deficit, upside risk remains: StanChart

Impact on inflation hard to predict now, reason for wide 2%-3.5% inflation forecast range for 2025

Bernama
Updated
1:14 PM MYT

 

KUALA LUMPUR —  The government’s RON 95 subsidiy rationalisation plan will drive Malaysia’s fiscal consolidation while there will be upside risks if oil prices rise, Standard Chartered (Stanchart) said in a reaction to Budget 2025 tabled yesterday.

The banking group said subsidy rationalisation for RON95 is expected to result in RM8 billion in annual savings, but with implementation planned for mid-year, only RM4 billion can be achieved in 2025.

“The bottom 85% of income earners will remain eligible for the RON 95 subsidy at a cost of RM12 billion per annum, based on the government’s oil price assumption of US$75-US$80 per barrel.

“Based on the Brent crude oil price of US$80 per barrel, Stanchart estimates the annualised inflationary impact of the RON95 subsidy rationalisation at 0.3 percentage points (or 0.15 ppt for half-year),” it said in a statement today.

The bank said it is difficult to estimate the impact of targeted subsidy rationalisation on inflation at this point.

Similar to 2024, the government has provided a wide 2%-3.5% inflation forecast range for 2025 to account for potential subsidy changes, the bank noted.

“The 2024 inflation forecast range was narrowed to 1.5%-2.5% (from 2.1%-3.6%) on lower-than-expected inflation year-to-date,” it said.

Stanchart also maintains its view that Bank Negara Malaysia is likely to look past any one-off increases in inflation due to subsidy rationalisation, with the risk biased towards one more hike if second-round inflationary effects take hold.

The bank sees the increase in minimum wage, effective in February 2025, as a bolster to the country’s consumer spending in 2025.  

“The wage increase is a key thrust of the 2025 budget, to that end, the government allocated RM105.9 billion to emoluments – a 6.2% increase from 2024, as basic civil servant salaries are raised between 7%-15%,” it said. – October 19, 2024

Topics

 

◉ Popular

Pelaksanaan DLP martabat bahasa Melayu, perkukuh bahasa Inggeris: Fadhlina Sidek

Kementerian Pendidikan (KPM) akan terus beriltizam untuk terus berusaha memartabatkan penguasaan bahasa Melayu dan meningkatkan mutu pendidikan bahasa Inggeris.

Pandelela, Dhabitah brace for possible RTG programme exit after missing Olympics

National divers Datuk Pandelela Rinong and Nur Dhabitah Sabri are prepared to accept the possibility of being dropped from the Road to Gold (RTG) programme after failing to qualify for the 2024 Paris Olympics.

Bill on compulsory secondary school education to be tabled in February 2025

The new policy aims to reduce the number of dropouts from secondary school

◉ Related

Copyright © 2023. All rights reserved.