By KINIBIZ
On Jan 8, 2016, the prime minister said Budget 2016 will be amended “soon” to accommodate the challenges faced this year, Bernama quoted him as saying.
This is likely driven by lower crude oil prices. When the Budget was tabled in end-October 2015, it assumed global oil prices would average US$48 per barrel. At the time of writing, it is slightly below the US$35 per barrel threshold.
Much attention would closely follow what sort of amendments are unveiled because the Budget was seen as a “survival” Budget – when it was tabled, one economist immediately remarked that it seemed to be designed for election despite the next general election being years away.
To recap, there were goodies for politically crucial Sabah and Sarawak, a strong base of support for Barisan Nasional. Civil servants got pay bumps. BR1M payouts were increased. The poor and middle-income group saw more affordable housing and relief measures to help them.
The prime minister has not specified what sort of cuts or adjustments may be in order. Depending on whether oil prices drop much lower, one question in the air is whether there is enough room to cut and reshuffle in the existing Budget – and the implications that may follow.
In any case, here’s a selection of our best news, analyses and comments over this past week for your reading pleasure:
OCBC Malaysia raises lending rates. OCBC Bank Malaysia has raised its base lending rate (BLR) from 6.85% to 6.92% with effect from Jan 7, 2015. It is a surprising move as the overnight policy rate (OPR) was not raised after the last policy meeting by Bank Negara Malaysia’s Monetary Policy Committee. Read here.
1MDB’s deal confusion, explained. So is 1MDB getting RM7.41 billion or RM5.28 billion for the 60% interest in Bandar Malaysia that it is selling? That is the core of the confusion and controversy that erupted this week following what seemed a discrepancy in what 1MDB is saying and what a buying party said. Read here.
Mueller’s faux pas at Malaysia Airlines. Malaysia Airlines’ temporary baggage restrictions have landed it in the international press again and for all the wrong reasons. Safety might have been its utmost priority, but the airline must remember to manage its brand as well. Read more here.
Conflicts over Pahang royalty in bauxite business? Pahang Crown Prince Tengku Abdullah is a major shareholder in bauxite mining company Tanah Makmur Bhd. Could this compromise his role as a ruler in solving the myriad mining problems plaguing the state? Read here.
Bauxite poser for Pahang royal couple. As controversy rages on over the effects of bauxite mining in Pahang, the Pahang crown prince’s interests in bauxite mining activities may cast an awkward situation as his first wife is apparently supporting the anti-bauxite lobby. Read further here.
Netflix comes to Malaysia and iflix is happy. Global Internet TV service provider Netflix believes that because the entertainment market in Malaysia is so broad that multiple brands can be successful, speaking to KINIBIZ after its services have become available here. Meantime competitor iflix seems happy about it. Read here and here.
Ridesharing, Spad and taxis – the drama continues. A new year but the drama revolving around ridesharing services, taxis and land public transport regulator Suruhanjaya Pengangkutan Awam Darat (Spad) does not seem closer to resolution. What might be needed to usher in a finale that would end it? Read here.
Starting the new year in limbo. When it comes down to it, there is enough “blame” to go around for everyone to have a share when the topic turns to the success of ridesharing services in the Klang Valley seemingly at the expense of other industry players. Germany, though, is an interesting lesson to ponder. Read why here.
How Xin Hwa grew big by moving larger. Logistics player Xin Hwa Holdings Bhd came from humble beginnings back in the 1960s when it was a small-scale operations moving rubber, pineapple and the like. Co-founder Ng Aik Chuan shares with KINIBIZ on how his grandfather started the tyres rolling and the journey since. Read here.
Four questions to watch out for in 2016 (so far). After a turbulent 2015 on many fronts, here comes 2016. So what key issues should the average Malaysian watch out for this year? In no particular order and by no means an exhaustive examination, KINIBIZ lists four big question marks to follow. Read here.
If you like these stories, get more for just 87 sen a day. At a promotional price of RM318 per year, you can have full access to KINIBIZ online for your daily dose of business updates plus a free copy of our fortnightly KINIBIZ magazine. Click here.
Because whether you prefer online or print, morning coffee tastes so much better when you have the sharpest reads in town to sip to – for a sweet deal at that.
— by Khairie Hisyam Aliman, News Editor
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