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00:00The country's economy expanded 4.2% in the first quarter this year, from 2.9% in the fourth quarter of 2023.
00:23Department of Statistics Malaysia, DOSM Chief Statistician Datuk Seri Muhammad Uzir Mahedin said the growth was driven by stronger private expenditure and positive turnaround in exports.
00:35This was supported by higher household spending, export turnaround and higher tourist arrivals, improving labour market condition and stronger investment activities.
00:49Household expenditure, which contributed 61.9% to GDP, grew 4.7%.
00:59It was reported that festive seasons and the beginning of school sessions are factors that contributed to the increase in household spending.
01:07The services sector steered the overall performance with 59.3% share in the country's first quarter performance, as well as manufacturing sector, which expanded after recording a decline in the previous quarter.
01:21Meanwhile, headline inflation remained moderate at 1.7% during the quarter.
01:27Meanwhile, Bank Negara predicts headline inflation to remain moderate between 2.2% and 3.5% this year, broadly reflecting stabilizing demand and contained cost pressures.
01:44Its governor, Datuk Abdul Rashid Kafur, said the inflation outlook could rise from the implementation of the fuel subsidy rationalization.
01:52The outlook remains dependent on the implementation of domestic policy on subsidies and price controls, global commodity prices and financial market developments.
02:07He added Malaysia's economic growth is set to be driven by resilient domestic spending, a recovery in external demand, continued employment and wage growth.
02:17Meanwhile, investment activities will benefit from both public and private sector projects.
02:23The central bank is also optimistic about growth in the tech sector, robust tourism and faster implementation of investment projects.
02:31This despite the risk from weaker global demand, geopolitical tensions and potential declines in commodity production.
02:38The ringgit may strengthen steadily over the coming months, supported by domestic indicators such as stable interest rates, easing inflation and commendable economic growth.
02:52According to economist Jeffrey Williams, intervention from Bank Negara played a crucial role in ensuring market stability and liquidity.
03:00As such, he expects the ringgit to gradually strengthen, with a fair value of 4.20 to 4.30 against the U.S. dollar.
03:09Meanwhile, Bank Mwamalat chief economist Mohamed Abdul Rashid said the market participants had been concerned over the Fed's hawkish stance
03:19as the U.S. inflation remains stubbornly high, despite successive rate hikes since 2022.
03:25The assurance that another rate hike is not an option and the continued disinflationary trends have contributed to the weakening of the greenback.
03:34For now, he is looking at the ringgit ending the year at 4.65 versus the U.S. dollar.
03:43Bursa Malaysia ended higher today, supported by strong buying interest, mainly in commodity-related telco and gaming stocks.
03:51At 5 p.m., the FBM-KLCI increased by 5.51 points to 1,616.62 points.
04:00Market breathe was positive, with 846 gainers against 374 losers, while 497 counters traded unchanged.
04:10According to Rakuten Trade, the benchmark index sustains its upward trend, driven by continuous foreign buying support.
04:17The increased emolument spending from civil servants' salary hike could be funded by boosting revenue collection,
04:26savings from operating expenditure rationalization, as well as higher government borrowings.
04:31According to RHB research, given that a significant portion of operating expenditure is dedicated to emoluments,
04:39rationalization of subsidy and implementation of new tax measures are necessary.
04:43This is intended to offset the increased operational costs and manage the national debt.
04:49Assuming the allocation for emoluments is increased by RM10 billion in 2025,
04:56the research house said the total allocation for that year is projected to be at least RM105.6 billion,
05:04compared to RM95.6 billion this year.
05:07However, it's stated that there is a potential shortfall of about RM4 billion after accounting for potential revenue sources
05:15and savings from fuel subsidy rationalization.
05:22And that's all the time we have for BizWorld.
05:24I'm Nguyen Razman. Keep tuning in to TV3.
05:37I'm Nguyen Razman biz.
05:53This is the mayfair.