KUALA LUMPUR, 03 September 2026 — Impact investing does not necessarily mean accepting lower returns, with investors increasingly looking at whether environmental and social outcomes – ESGs – can translate into stronger businesses, greater market share and ultimately better financial performance.

That was one of the key messages from the “Beyond Impact & ESG: Investing for Outcomes and Returns in Southeast Asia” panel at the Malaysia Private Capital Forum 2026, where speakers discussed efforts to establish a clearer relationship between impact outcomes and investment returns.

The session, moderated by Jamie He of Lockton Companies, brought together representatives from PRI, Impact Circle, AiSED and Bintang Capital. The official programme identified the panellists as Chee Leng Hor, Melissa Ong, Zehan Teoh and Ee Rong Song.

Impact Investing: Beyond the Label

One of the speakers said the aim was to generate empirical data showing whether improved environmental performance could translate into financial value through greater brand equity, larger market share and operating-cost savings.

On the social side, greater gender diversity and stronger employee engagement were cited as factors that could improve organisational performance and, eventually, financial returns.

But the speaker was careful not to claim that the relationship had already been conclusively established.

“It’s our own experiment … I don’t have the answer,” the speaker said, adding that the objective was to try different approaches and see how they performed.

That admission was significant: the argument for impact investing was not presented as a settled formula, but as an area where investors are increasingly attempting to establish a measurable link between non-financial outcomes and financial performance.

The panellists also challenged what they described as a misconception that incorporating impact necessarily compromises returns.

Examples were cited of impact funds that had consistently ranked in the top quartile of performance, as well as a Singapore-based impact fund pursuing venture-style returns.

There was, however, recognition that the time required to demonstrate outcomes can vary significantly between sectors.

Agriculture, for example, may require a longer investment horizon than the conventional 10-year fund period before the full impact of an investment can be demonstrated.

From ESG Reporting to Measurable Outcomes

The discussion also suggested that impact investing is increasingly moving beyond the traditional ESG reporting framework.

The panellists pointed to mainstream venture capital investors beginning to identify outcomes aligned with the United Nations Sustainable Development Goals, even when environmental considerations are not the original investment thesis.

An education-technology company in Vietnam was cited as an example. Rather than measuring only the number of students enrolled, investors were looking at improvements in students’ academic performance.

That shift — from counting activities to measuring outcomes — was central to the panel’s argument.

As one speaker put it, going “beyond ESG” does not mean abandoning ESG.

It means moving past labels and reporting requirements towards outcomes that are more concrete and measurable.

The distinction between public and private markets was also raised. Listed companies operate within more standardised ESG disclosure requirements, while private capital investors have greater flexibility to develop their own methods of measuring outcomes.

ECF and P2P: From Access to Capital to Getting a Return

The next discussion turned from impact investing to a more immediate question for Malaysian businesses: what happens after companies get access to alternative capital?

The panel on “From Crowd to Capital Stack: The Next Phase of ECF and P2P in Malaysia” examined the development of equity crowdfunding and peer-to-peer financing after more than a decade of operation.

Malaysia was the first jurisdiction in the Asia-Pacific region to establish an equity crowdfunding framework, with the framework introduced in 2015, while P2P financing was regulated in 2016. The moderator noted that ECF had raised close to RM1 billion through 445 campaigns, while P2P financing had raised RM11.3 billion across 150,000 campaigns.

But the headline numbers mask a significant challenge: exits.

For ECF investors, getting into a company is only the beginning. If there is no credible route to an exit, investors ultimately cannot realise their returns.

Elain Lockman said exits remained one of the biggest challenges after a decade of ECF activity, while Goh Boon Peng said his platform had only seen its first project exit after six years.

Investor education is another concern.

Lockman pointed to competition from other investment products and said retail investors needed to better understand alternative investments, particularly at a time when investment scams were also rising.

The Money Comes With Responsibility

For issuers, the challenge is not simply raising money.

Panellists repeatedly returned to governance, reporting and accountability.

Goh said some SME founders did not initially understand their responsibilities towards investors, while Lockman stressed that money raised from investors was not simply the founders’ own money.

“It’s this hard-earned income of other people’s money that you have to give a return,” she said.

The panel argued that companies need to treat fundraising as part of their broader business strategy rather than something they turn to only when cash runs short.

For companies hoping eventually to move towards an IPO, governance, internal controls, reporting and shareholder responsibilities become even more important.

Goh described efforts by his platform to encourage issuers to participate in CEO roundtables and regular sessions on compliance, internal controls and other aspects of running a company.

Building a Capital Stack

The discussion also highlighted a more mature view of alternative financing: ECF and P2P do not necessarily have to compete with venture capital, private equity or bank financing.

Instead, different forms of capital can work together.

P2P financing, for example, can provide working capital without requiring founders to dilute their equity, while ECF can provide equity capital for longer-term growth.

Vincent Soh said P2P financing could potentially serve a much larger portion of Malaysia’s alternative-debt market, while institutional investors were increasingly participating in the space.

The panellists also highlighted growing cooperation across different parts of the capital stack.

Rather than seeing ECF, P2P, venture capital and private equity as isolated channels, participants said greater collaboration could help fill financing gaps and create a more robust funding ecosystem.

From One-Off Fundraising to the Next Round

Another emerging theme was repeat capital.

Companies that raise money through ECF need to plan beyond their first fundraising round, particularly if they intend to scale.

Goh said his platform had companies that had raised at least twice, with several raising three times, while stressing that issuers should plan for two or three fundraising rounds rather than assuming one campaign would be sufficient.

But repeated fundraising also brings another issue: valuation.

The moderator warned that a high valuation at one stage is meaningless if the company cannot sustain it. A subsequent “down round” can create significant problems for both founders and investors.

The ultimate objective, Goh suggested, should be to build towards a credible destination — potentially an IPO — with valuations and growth expectations grounded in realistic benchmarks.

Taken together, the two afternoon discussions pointed to a common theme.

Whether the investment is driven by impact outcomes or alternative financing, the industry is moving beyond simply asking whether capital can be raised.

The harder questions are becoming: What does the capital achieve? Can those outcomes be measured? Can the business grow? Can investors ultimately realise a return? And can the company become strong enough to attract the next round of capital?

For Malaysia’s evolving private-capital ecosystem, those may be the questions that matter most. – NMH

The post Beyond ESG: Impact Investing Is About Better Business, Not Lower Returns first appeared on NMH.

KUALA LUMPUR, 03 September 2026 — The Malaysia private capital landscape has an opportunity to play a greater role in accelerating the country’s economic transformation by turning emerging challenges into solutions — and, crucially, into investable opportunities, Deputy Finance Minister Liew Chin Tong said today.

Speaking at the opening of the Malaysia Private Capital Forum 2026 at Menara AFFIN @ TRX, Liew said the global economy was undergoing a fundamental shift from an era focused on efficiency towards one increasingly shaped by resilience.

Malaysia Private Capital at an Inflection Point

He described the current environment as an opportunity for Malaysia to “leapfrog” economically, while noting that the country must be prepared to tackle the challenges accompanying a changing global order.

The forum, organised by the Malaysian Private Capital Association (MPCA) under the theme “Malaysia Forward: Rewiring Capital Flows in an Ascending World”, brought together investors, fund managers, entrepreneurs, policymakers and other players in the private-capital ecosystem.

Liew’s keynote followed opening remarks by MPCA Organising Chairman Dr Chris Daniel Wong and MPCA Chairman Ng Sai Kit. The programme then moved into a series of discussions on private credit, institutional investors, venture capital, impact investing and Malaysia’s position as a regional private-capital hub.

From Efficiency to Resilience

Liew’s central argument was that the post-pandemic world is no longer organised around the same assumptions of global efficiency that dominated the previous era.

The move towards resilience, driven partly by geopolitical tensions and more fragmented global supply chains, could create openings for Malaysia.

He pointed to the country’s relatively strong economic performance as evidence of that resilience, with GDP expanding 6% in the second quarter of 2026 and first-half growth reaching 5.7%.

Among the areas contributing to growth, he highlighted Malaysia’s participation in the global artificial intelligence boom, particularly through semiconductors and data centres, alongside palm oil, oil and gas, tourism and services.

But for Liew, the opportunity is not simply to attract more investment into existing industries.

It is to move Malaysia further up the value chain.

From Trading Nation to Technology Nation

Liew said Malaysia needs to continue its transition from a trading nation towards becoming a technology nation.

That means strengthening the country’s position across the semiconductor ecosystem, including outsourced semiconductor assembly and testing (OSAT), advanced packaging, integrated circuit design and semiconductor equipment.

Malaysia’s position as a middle power could also become an advantage as geopolitical tensions increasingly divide the global technology landscape.

Liew described Malaysia as occupying an “indispensable middle” in the global technology and tax landscape, suggesting that the country could serve as a bridge between different economic and technology ecosystems.

Investment Opportunities Beyond Kuala Lumpur

Another theme in Liew’s address was the need to look beyond Kuala Lumpur when considering Malaysia’s next phase of growth.

He identified urban revitalisation as one potential investment opportunity, arguing that instead of continually expanding cities outward, Malaysia should look at rebuilding inner-city areas, repurposing vacant buildings and creating mixed-use urban spaces.

He cited the changing landscape of Kuala Lumpur itself, where the relocation of some financial institutions to newer centres such as Merdeka 118 and Tun Razak Exchange has contributed to vacant buildings in parts of the city. Rather than viewing this solely as a problem, he suggested it could create opportunities for redevelopment.

Liew also called for greater decentralisation of financial expertise.

Penang and Kulim, for example, could develop deeper financial capabilities around technology and semiconductors, while Sarawak’s economic opportunities are closely linked to energy. Johor, meanwhile, has the potential to become a hub for cross-border supply-chain integration with Singapore.

The idea is to bring capital and financial expertise closer to the industries and regions where new opportunities are emerging.

Malaysia’s ASEAN Opportunity

Liew also sees Malaysia’s existing financial infrastructure as an important advantage in the competition for regional capital.

In particular, he pointed to the country’s Islamic finance ecosystem and private-capital networks as platforms that could be leveraged to facilitate regional transactions and investments.

That would position Malaysia not merely as a domestic investment destination, but as a base from which capital can flow into the wider ASEAN market.

The emphasis on regional connectivity also echoed the broader objectives of the forum, where participants examined how Malaysia could strengthen its position within Southeast Asia’s increasingly competitive private-capital landscape.

Demographics: Challenge and Opportunity

Liew also highlighted demographic change as an area where a significant challenge could become an investment opportunity.

Malaysia remains relatively young, with a median age of around 31, but the country is simultaneously moving towards an ageing society.

He offered an unusually simple illustration of the trend: a local factory supplying Malaysia and neighbouring countries is now producing fewer baby diapers and more adult diapers.

For Liew, such changes point towards growing opportunities in healthcare, aged care and public-private investment in services for older Malaysians.

The broader point was that demographic changes should not simply be viewed as future policy burdens. They can also signal where new markets, businesses and investment opportunities will emerge.

From Challenges to Capital

Liew’s message to the private-capital community was ultimately about recognising where Malaysia’s next opportunities may lie — and having the ambition to convert them into investable propositions.

But as the forum’s subsequent sessions would demonstrate, identifying opportunities is only one part of the equation.

MPCA chairman Ng Sai Kit, in his opening remarks, stressed that global capital remains available but has become “more concentrated, more selective and more demanding.” He argued that Malaysia needs not only more deals, but stronger capital formation, credible exit pathways and the ability to return capital to investors.

That sets up perhaps the more difficult question for Malaysia’s private-capital ecosystem: can the opportunities identified today be translated into businesses that can scale, generate returns and ultimately give investors a credible route to exit?

It was a question that would run through many of the discussions that followed. – NMH

The post Malaysia Private Capital: Liew Urges Turning Economic Challenges Into Investable Opportunities first appeared on NMH.

Overarching Strategy

At the core of the strategic direction of the Employee Provident Fund (EPF) is its commitment to assist its members in achieving a better future through adequate and sustainable retirement income. This commitment is focused on five key priorities – improving adequacy, extending coverage, enhancing customer experience, delivering optimal yield and strengthening trust, which is reviewed annually to respond to members’ evolving needs.

EPF Facts at a Glance – 2023

Members = 16,073,317
Active members = 8,524,975 or 53%
Number of Contributing Employers = 606,187
Annual contributions received from Employees and Employers = RM97.56b
Total Withdrawals & Refunds = RM50.57b
•Operational & Business Efficiency is 22.9sen per RM100 AUM

•Retirement Well-being = 33% of active members meet basic savings by age.
•No of Branches = 68: 52 at Peninsula Malaysia, 9 at Sabah and Labuan and 7 in Sarawak
•Number of Staff = 5,537
•Total Employee Expenses = RM1.29 billion
•Total Operating Expenditures = RM1.81 billion
•EPF is the World’s 14th Largest Pension Fund.

Investment Performance

FY2023 witnessed significant global events that impacted the global economy, financial and currency markets. The Russian invasion of Ukraine added to inflationary pressures to the existing global supply chain disruption, causing a simultaneous food and energy crisis.

The global equity markets’ performance were mixed with indexes FTSE World Developed at +21.59%, FTSE ASEAN -2.09%, APAC Ex-Japan +4.60% n FBM KLCI -2.73%.

Higher inflation that led to higher interest rates, routed the bond market in most countries.
Despite these investment challenges, EPF diversification strategy continues to pay off with total gross investment income of RM67.39b up 21.80% fm 2022.

Dividend for Simpanan Konvensional (Conventional Savings) was 5.50% and Simpanan Shariah (Shariah Savings) at 5.40%, a commendable performance under these circumstances.

Total Assets of EPF

2019 – RM924.882b
2020 – RM1,003.372b
2021 – RM1,012.032b
2022 – RM1,008.312b
2023 – RM1,141.898b

Gross Investment Income

2019 – RM49.756b
2020 – RM55.743b
2021 – RM67.723b
2022 – RM51.909b
2023 – RM66.988b

Dividend Credited to Members

2019 – RM45.817b
2020 – RM47.642b
2021 – RM56.725b
2022 – RM51.138b
2023 – RM57.806b

Simpanan Konventional Dividend

2019 – 5.45%
2020 – 5.20%
2021 – 6.10%
2022 – 5.35%(RM45.4b)
2023 – 5.50%(RM50.33b)

Simpanan Shariah Dividend

2019 – 5.00%
2020 – 4.90%
2021 – 5.65%
2022 – 4.75% (RM5.70b)
2023 – 5.40% (RM7.48b)

Return on Investment

2019 – 5.71%
2020 – 6.13%
2021 – 6.50%
2022 – 6.20%
2023 – 6.36%

Total Withdrawals

2019 – RM44.776b
2020 – RM58.284b
2021 – RM131.078b
(i-Lestari, i-Sinar & i-Citra schemes)
2022 – RM91.025b**
(Special Withdrawal Facilities)
2023 – RM50.57b

Strategic Asset Allocation (SAA)

46% Fixed Income
42% Equities (plus PE)
7% Real Estate and Infra
5% Cash & Money Market

Fixed Income comprises MGS and Equivalent, Loan n Bonds. In 2023, FI contributed RM19.74b or 30% of total investment income yielding an ROI of 4.41%.

Equity portfolio comprises listed and private equity, contributing RM39.05b or 58% of income.

Equities portfolio achieved a strong ROI of 8.77%. Listed equity write downs for 2023 were minimal at RM0.40bil, compared to d RM3.43bil recorded in 2022.

Private equities ROI outperformed public equities and had a higher ROI of 9.69%. Overall ROI was 7.92%. Write down was RM3.43b for this asset class.

RE & Infrastructure recorded an investment income of RM6.03b or ROI of 5.04%.
Money market instruments totaled returns was RM2.17b or an ROI of 4.93%.

Domestic SAA = 62% or 702.48b
Overseas SAA = 38%
Domestic Income = 47% or 31.61b
Overseas Income = 53% or 35.28b
Overall ROI = 6.36%
Deployment of new money into domestic market is more that 80% of of 2023 investment allocation.

As at December 2023, EPF holds about 28% of the outstanding MGS and GII issuances and about 12% of the FTSE Bursa Msia Top 100 Index market capitalisation.

EPF participation in the Bursa Malaysia in terms of value was 23% for FBM100 stocks and 31% for FBMKLCI stocks. This includes trading by domestic external fund managers.

Active Members Savings Range as at 31 December 2023

•2.574m members have savings below 10k totaling RM12.0 billion
•2.567m members have savings between 10-50k totaling RM62.3 billion
•1.166m members have savings between 50-100k totaling RM84.2 billion
•1.372m members have savings between 100-250k totaling RM217.5 billion
•541,382 members have savings between 250-500k totaling RM186.4 billion
•217,223 members have saving between 500k-1m totaling RM147.5 billion
•90,334 members have savings above 1m totaling RM157.3 billion
•⁠ ⁠Total active members is 8,524,975 with savings totaling RM867.249b
•⁠ ⁠Male active members 4,646,149 and female 3,878,826.

EPF 2024 Performance

EPF declared a dividend rate of 6.30% for Simpanan Konventional, with a total payout of RM63.05 billion; and 6.30% for Simpanan Shariah, with a total payout of RM10.19 billion, bringing the total payout amount for 2024 to RM73.24 billion.

For the year ended 31 December 2024, the EPF recorded a total investment income of RM74.46 billion, 11% higher than the RM66.99 billion recorded in 2023.

EPF’s investment assets grew to RM1,249.71 billion, an increase of 10% fm RM1,135.82 billion in 2024. This increase was driven by portfolio income and net contributions of RM108.22 billion, an 11% increase fm RM97.56 billion in 2023.

This strong performance was driven by recovering global n domestic markets, resilient economic growth, and sound portfolio management.

The Malaysian economy expanded at 5.1% vs 3.6% in 2023 and FBM KLCI registered double-digit growth of 12.9% vs -2.7% in 2023.

Investment Portfolio Performance

The Equities asset class contributed RM49.79 billion, accounting for 67% of total investment income with an ROI of 9.90%.

Private Equity investments, which represents close to 10% of the equity investments, generated an ROI of 11.33%.

Fixed Income instruments contributed RM22.91 billion, or 29% of the total investment income, yielding an ROI of 4.27% vs RM19.74 billion in 2023, in line with the growing asset size.

Real Estate and Infrastructure registered an income of RM1.64 billion, recording an ROI of 5.13% on a constant currency basis.

Income from Money Market Instruments was RM1.12 billion, delivering an ROI of 1.89%, impacted by the Ringgit strength against US Dollar.

Fixed Income instruments made up 46.2% of investment assets, while Equities comprised 43.5%. Real Estate n Infrastructure as well as Money Market Instruments made up 6.3% and 4% of EPF assets, respectively.

Of the RM1,249.71 billion investment assets, 63% was invested domestically, generating RM37.02 billion, or 49.7% of total investment income. Global assets generated income of RM37.44 billion, or 50.3% of d total investment income recorded.

A total of RM63.59 billion out of d RM74.46 billion total investment income was generated for Simpanan Konvensional, and RM10.87 billion for Simpanan Shahriah.

Operationally, EPF recorded strong membership growth registering new members of 475,752, bringing EPF membership to 16.22 million, of which 8.78 were active members. This represents 51% of Malaysia’s 17.32 million labor force.

Total contributions in 2024 rose 11% to RM108.22 billion, reflecting increased number of members, wage growth and sustained trust in the EPF. New employer registrations stood at 71,471, bringing total registered employers to 614,563. – NMH

About the writer:

WKWA has more than 40 years working experience in the Malaysian financial markets as a currency trader, money broker, fund management and pension fund. He is currently the Chairman at MBSB Bank and MBSB Group. His was also the former CEO of KWAP, a Malaysian government pension fund. His favourite sign-off is: Once a trader always a trader!

The post EPF Investment Performance 2023|2024 – Highs And Lows first appeared on NMH.

KUALA LUMPUR — In San Francisco last week, Malaysian Prime Minister Anwar Ibrahim was eagerly promoting his country, known as a Southeast Asian manufacturing hub and major commodity exporter.

“Malaysia and ASEAN are the most stable and vibrant places to invest, and I look forward to meeting you individually in Malaysia,” he said at the APEC CEO Summit. “I think we are on the right track to propel the economy of our country in the next few years.”

But as his government marks its first anniversary this week, political observers say mounting challenges may pose hurdles for Anwar to achieve economic and fiscal reforms that are necessary to create a more robust environment for the country’s future growth.

Meeting with representatives from tech giants such as Google, Microsoft and TikTok during the U.S. trip, he expressed Malaysia’s commitment to providing a speedy approval process for all investors.

“Hopefully, the meeting with all these giant companies can bring benefits to the country and the people as a whole, God willing,” he wrote on Facebook.

However, the domestic economy faces headwinds. The July-September gross domestic product data released last Friday showed that exports declined 12% from a year earlier, weighing on overall growth. Rising food prices and the falling ringgit currency, which hit a 25-year low last month, have also affected many businesses and households.

Anwar, a longtime opposition symbol who is now 76 years old, became Malaysia’s 10th prime minister on Nov. 24 last year after his Pakatan Harapan coalition won the general election that month. Forming a ruling coalition that he calls the “unity government,” he promised institutional and economic reforms.

Anwar 5th PM in less than five years

Malaysia had been politically unstable for years. Anwar is the fifth prime minister in less than five years, after Najib Razak (2009-2018), Mahathir Mohamad (2018-2020), Muhyiddin Yassin (2020-2021) and Ismail Sabri Yaakob (2021-2022). As such, Anwar’s victory raised hopes for a period of stability and progress at a time when Malaysia was recovering from the pandemic.

“For the first time I see a prime minister that Malaysia can be proud of when he goes overseas. He raises the name of the country,” said Kishan Buxani, a 26-year-old voter from Penang.

Indeed, there was a sense of a breath of fresh air when Anwar first took office. The stock market rallied in the first few months, and the ringgit strengthened to 4.24 per dollar in February. According to the local pollster Merdeka Center, Anwar enjoyed a high approval rating of 68% in that month.

However, Anwar’s first year has been a balancing act, with the prime minister grappling with economic woes, political tensions and the lingering effects of the pandemic while striving to deliver on his ambitious reform agenda.

The government has introduced the New Industrial Master Plan 2030, which includes a target of boosting the manufacturing sector’s GDP by 6.5% annually through 2030, and the National Energy Transition Roadmap, which seeks to restructure the economy, achieve sustainable growth and ensure an equitable distribution of wealth.

Statistics show some positive developments in his first year. The government received 132 billion ringgit ($28 billion) of direct investment in the first half of 2023, achieving 60% of this year’s target of 220 billion ringgit. According to the local think tank MIDF Research, the unemployment rate maintained a post-pandemic low of 3.4% in September, with the youth unemployment rate falling to 10.6%.

Global Economic Downturn

But Anwar’s government was not spared from the global economic downturn. The World Bank in October downgraded Malaysia’s economic growth for this year to 3.9% from an earlier projection of 4.3%, compared to 8.7% in 2022 and the pre-pandemic years’ 4% to 5%, citing a significant slowdown in external demand.

The ringgit is the worst-performing currency in the region this year, falling by more than 5% against the greenback and hitting its lowest value in 25 years, at 4.792 per dollar, on Oct. 23. About 4.19 billion ringgit flew out of the Malaysian equity market during the first half of 2023, according to MIDF Research.

“As an oil exporting country, exposure to oil price shocks and vulnerability to sudden and sizable capital outflows are the main factors that likely explain why the Malaysian ringgit stands apart” compared with other Asian currencies, the World Bank said in the October report. Economists say a widening interest rate gap with the U.S. and the slowing economy of its key trading partner, China, are also among the factors in the ringgit’s depreciation.

Several business owners and small traders in Kuala Lumpur told Nikkei Asia that the weak ringgit has affected their supply of food items and other goods and increased overhead costs due to their dependence on imported goods, equipment and services, adding to the global inflation that has in turn affected Malaysia.

Small Businesses Affected

Wong Mee Fang, a 70-year-old owner of a vegetarian food stall in the city of Petaling Jaya, west of Kuala Lumpur, says the rising costs of rice and other materials have severely affected her business, forcing her to raise prices. The retail price of imported rice was raised 36% in September, reflecting a global price surge.

“Business has been rather uncertain. It is more difficult for vegetarian food stalls like mine,” Wong told Nikkei Asia. “I know the government is trying [to address food inflation], but the rising food prices over the past year have affected many of us, especially small businesses like ours. I’m not sure how long I can continue.”

While these economic issues have caused dissatisfaction among Malaysians, Anwar is also feeling pressure on the political front.

Currently, he enjoys support from two-thirds of the members of the 222-seat House of Representatives, including 147 from the ruling coalition and four opposition lawmakers who recently announced they will support his government.

But local elections held in six of the country’s 13 states in August resulted in a blow to the prime minister, with the ruling coalition losing about 30% of its state assembly seats. The Islamist and right-leaning opposition party Perikatan Nasional increased its inroads into his coalition’s strongholds.

Bridget Welsh, an honorary research associate at the University of Nottingham Asia Research Institute Malaysia, explained that the outcome of the state elections highlighted his weakness among Malay voters and placed his government at risk of losing its non-Muslim base that voted for tolerance and moderation.

“Few recognize him as a reformer, and even fewer see a commitment to reform in his first year,” Welsh said, adding that the current political stability was achieved at the cost of any meaningful reform and a betrayal of trust. In September, the country’s authorities dropped corruption charges against Deputy Prime Minister Ahmad Zahid Hamidi, the leader of a key partner in the ruling coalition, which raised questions over Anwar’s pledge to fight corruption.

“Anwar was supported for what people believed to be statesmanlike leadership and the hope for a clear vision of governance for the country. Neither have yet to materialize. A focus on trying to look good personally rather than actually laying out a clear program and governing has hurt Anwar’s government performance,” Welsh added.

Anwar’s government did introduce several reforms, including the repeal of the mandatory death penalty, decriminalization of suicide attempts, and rationalization of government agencies and departments to improve efficiency.

Anwar, who doubles as the finance minister, last month vowed his commitment to fiscal reforms. “Hence, reforms need to be implemented, notwithstanding that it may be an arduous and challenging process,” he said in his speech for the 2024 draft budget, referring to expanding the revenue base, implementing targeted subsidies and eradicating corruption and malpractice.

As his government enters its second year, Anwar must start delivering on his promises more, according to James Chin, a professor in Asia studies at the University of Tasmania.

“A lot of people don’t believe that he can do it, and that is why you can see the fall of the ringgit and you see the stock market is restless,” he argued. “He has to put in policies that will pay off in one or two years’ time. So time is running out for him.” – Nikkei Asia

Editor’s Note: This article was originally published in Nikkei Asia on November 21 2023.

The post Anwar Struggles To Boost Malaysian Economy A Year After Victory first appeared on NMH.

SAN FRANCISCO – Elon Musk has taken control of Twitter Inc (TWTR.N) with ruthless efficiency, immediately firing top executives while providing little clarity on how he will achieve the lofty ambitions he has outlined for the influential social media platform.

“The bird is freed,” he tweeted after completing his RM207.75 billion acquisition on Thursday, referring to Twitter’s bird logo in an apparent nod to his desire for the company to have fewer restrictions on what can be posted.

The CEO of electric car maker Tesla Inc (TSLA.O) and self-described free speech absolutist has, however, also said he wants to prevent the platform from becoming an echo chamber for hate and division.

Other goals include wanting to “defeat” spam bots on Twitter and make the algorithms that determine how content is presented to its users publicly available.

Yet Musk has not offered details on how he will achieve all this and who will run the company. He has said he plans to cut jobs, leaving Twitter’s 7,500 employees fretting about their future. He also said on Thursday he did not buy Twitter to make more money but “to try to help humanity, whom I love.”

Musk fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde, according to people familiar with the matter. He had accused them of misleading him and Twitter investors over the number of fake accounts on the platform.

Agrawal and Segal were in Twitter’s San Francisco headquarters when the deal closed and were escorted out, the sources added.

Musk, who also runs rocket company SpaceX, plans to become Twitter’s CEO after completing the acquisition and also plans to scrap permanent bans on users, Bloomberg reported, citing a person familiar with the matter.

Twitter, Musk and the executives did not immediately respond to requests for comment.

‘Chief Twit’

Before closing the deal, Musk walked into Twitter’s headquarters on Wednesday with a big grin and a porcelain sink, subsequently tweeting “let that sink in.” He changed his Twitter profile description to “Chief Twit.”

He also tried to calm employee fears that major layoffs are coming and assured advertisers that his past criticism of Twitter’s content moderation rules would not harm its appeal.

“Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!” Musk said in an open letter to advertisers on Thursday.

As news of the deal spread, some Twitter users were quick to flag their willingness to walk away.

“I will be happy to leave in a heartbeat if Musk, well, acts as we all expect him to,” said a user with the @mustlovedogsxo account.

In an indication of challenges to be addressed, Bollywood actress Kangana Ranaut, who was banned from Twitter last year for violating its rules on hateful and abusive conduct, applauded Musk’s takeover on Instagram and shared requests from fans to have her account restored.

Musk also said in May he would reverse the ban on Donald Trump, who was removed after the attack on the U.S. Capitol. The former U.S. president has said he won’t return to the platform and has instead launched his own social media app, Truth Social.

A representative for Trump did not immediately respond to a Reuters request for comment.

Musk has indicated he sees Twitter as a foundation for creating a “super app” that offers everything from money transfers to shopping and ride-hailing.

But Twitter is struggling to engage its most active users who are vital to the business. These “heavy tweeters” account for less than 10% of monthly overall users but generate 90% of all tweets and half of global revenue.

The Saga Begins

The deal’s road to fruition was full of twists and turns that sowed doubt over whether it would happen at all. It began on April 4, when Musk disclosed a 9.2% Twitter stake, becoming the company’s largest shareholder.

The world’s richest person then agreed to join Twitter’s board, only to balk at the last minute and offer to buy the company instead for RM255.91 per share, an offer that Twitter thought might be another of Musk’s cannabis jokes.

Musk’s offer was real, and over the course of just one weekend later in April, the two sides reached a deal at the suggested price. This happened without Musk carrying out any due diligence on the company’s confidential information.

In the weeks that followed, Musk had second thoughts. He complained publicly about Twitter’s spam accounts and his lawyers then accused Twitter of not complying with his requests for information on the subject.

The acrimony resulted in Musk telling Twitter on July 8 he was terminating the deal. Four days later, Twitter sued Musk to force him to complete the acquisition.

By then, the stock market had plunged on concerns about a potential recession. Twitter accused Musk of buyer’s remorse, arguing he wanted out of the deal because he thought he overpaid.

Most legal analysts said Twitter had the strongest arguments and would likely prevail in court.

On Oct. 4, just as Musk was set to be deposed by Twitter’s lawyers, he performed another U-turn, offering to complete the deal as promised. He managed to do that, just one day ahead of a deadline given by a judge to avoid going to trial.

Twitter shares ended trade on Thursday up 0.3% at RM254.30, just under the agreed price. The stock will be delisted from the New York Stock Exchange on Friday. – Reuters

The post Elon Musk Now Owns Twitter, Begins His Ownership With Firings first appeared on NMH.

The resignation of UK Prime Minister Liz Truss on Thursday, 20 Oct, just six weeks after having been sworn in has given emphasis that for Malaysia’s GE15, it is imperative that the winning coalition or party be capable of stabilising the economy.

Liz Truss took her pledge of office on 06 Sept after Boris Johnson was forced to resign in July. Prior to taking office as the PM, she was the Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom (2021 – 2022).

Her credentials are no less impressive, yet she failed, bringing down the Conservative Party with her for being the shortest-serving PM in the history of the United Kingdom. In the six weeks she was in office, as much as she tried, she was getting nowhere. In fact, things were getting from bad to worse.

Where is the Hope?

For me, this is like deja vu like when we just came back to Malaysia in 2018, weeks after the Pakatan Harapan (PH) government came into being. It was like coming back to a disaster zone, and I was thinking: Where is the ‘Harapan’ (hope)?

Apart from the massive job layoffs, dragging opposition politicians to court to prosecute them without following the rule of law, lies unto lies about our national debt and spendings by the previous administration, the PH government also took on what everyone was calling as The Great Malaysian Sale. Scores of government assets were sold off en bloc, mostly to foreign entities. These assets were actually making profits, thus the government was going to lose out on the potential earnings.

Apparently, PH sold off almost RM30b worth of national assets within 500 days of taking power as the chart below has listed.

That is why I was so surprised when I came across this article in FMT recently quoting Professor Geoffrey Williams who said, among other things that a PH win will appear more stable as they have a clear, united prime minister and finance minister team.

To tell you the truth, I was gobsmacked when I read this and wondered where the learned professor was during the 22 months of PH rule. I was then inspired to seek the comments of a Professor of Economics, Dr Wong Chin Yoong from Universiti Tunku Abdul Rahman (UTAR).

A Unique GE15

According to Prof Wong, GE15 is going to be unique on several fronts.

“For the very first time we have all the major contending alliances (I mean BN, PH and PN) with administrative experiences, and the electoral atmosphere is apparently different from GE14. Enthusiasm for PH is lesser, and criticism of BN is less intense.

“While the electoral outcome is hard to be judged a priority, it seems more likely, at least at this point of time, that no alliance is going to win a strong majority, and that post-election political bargaining and coalition becomes more likely,” Wong said.

He added that this brings to some important implications on policy making: Don’t expect political and policy stability from a strong ruling alliance. The era of strong majority/strong government/strong man politics is over.

Policy Arrogance

“This is probably good for the economy, as political monopoly typically ends with policy arrogance and mistakes with less ability for self-correction.

“That doesn’t mean we can’t have a good policy in such a political reality. As a matter of fact, a more balanced distribution of political powers means policy made by post-election political coalition will better reflect the needs of different segments of society. It also means that we are going to have a more decent opposition with stronger voices for check and balance in policy formulation and implementation,” he added.

In short, Prof Wong opines that power-sharing among alliances with effective checks and balances from the opposition, rather than a strong government/strong man politics, shall be the road to stability and prosperity ahead for Malaysia.

We shall learn from the mistakes of Truss’s government, but carefully. It is not about engaging in budget deficit. One shall not cry wolf on government debt, claiming that the financial market chaos is all about government debt. Because it is not.

Lessons to be Learnt

He pointed out two core lessons from Truss’s mistake:

1. Never forget about being and showing fiscal sustainability. The market reaction was neither about the temporary spending on energy-saving bills nor tax cut, but a tax cut without being serious about its financing. All the plan miraculously hopes for is the growth that follows tax cuts. The market just didn’t buy it.
2. Ignoring economic reality at its political perils. The interest rate is on rising cycle, and ordinary people are suffering from soaring energy prices. And yet, the plan pledges more tax cuts for the rich, funded by more borrowing on the rising cost. It doesn’t make any political sense.

NMH‘s feature writer on finance and economy, Zam Yahaya chipped in with his opinions too.

“It’s simple, really. On things that you are not certain of, look at the track record. In this case, look at Najib Razak’s track record both during the crisis as well as during other times.

“Not even Mahathir can match it. The latter failed at least three times during his 22-year rule to manage the impact of the economic crisis. Not to mention the domestic mess created during his time such as BMF, Maminco, FOREX scandal losses to name a few which directly, and indirectly, had a serious negative impact on the national economy then.”

Zam added that different alliances that ruled before did bring both good and damage to the economy. At the end, it is the policy and institution that matter to the economy, not the party.

Marked Differences

As for me, I would like to say this: if you take 22 months of PH rule and any 22 months of BN rule, we can tell the marked differences.

Even if they claim that PH had to inherit massive debts and service the 1MDB loans, we must always remember that PH themselves destroyed any potential of 1MDB recovering any losses via an IPO which they sabotaged.

They were sabotaging the country’s economy prior to GE14, and when they took over they were clueless about what to do and dug a bigger hole. Should we trust such people ever again? After all, our national debt has really reached over 1 trillion now (see poster).

What are PH lawmakers going to do about it if they were to take over the country again? Sell more assets until the country is left with just skin and bones?

Vote wisely, people of Malaysia. So much is at stake right now. – NMH

About the writer: Carole Raymond Abdullah is a freelance writer who used to domicile in Hongkong for many years. She is now back in Malaysia, totally surprised at the turn of events in the country lately.

The points expressed in this article are that of the writer and do not necessarily reflect the stand of the New Malaysia Herald.

The post GE15: Who Can Really Stabilise The Malaysian Economy? first appeared on NMH.

After blaming the markets and “global headwinds” for investors fleeing the pound and government bonds for weeks, Truss apologised for going “too far and too fast” with her radical economic plan to jolt Britain out of years of stagnant growth.

Markets are still reeling from Truss’s Sept. 23 “mini-budget,” despite Truss’s finance minister, Jeremy Hunt, tearing up her plans on Monday.

It was also unclear whether Truss’ apology would quell a growing rebellion within her governing Conservative Party, with a handful of lawmakers calling for her resignation and dozens more fearing job losses in a new election.

Even one of her ministers said she could not afford to make any more mistakes – something that could be difficult when her government looks for deep savings. Already Hunt has refused to guarantee the budgets of departments like health and defence.

Truss’s decision to pull her economic programme has so far eased some of the pressure on Britain’s elevated borrowing costs, but the scale of the reversal means she is now fighting to survive, just six weeks after she became prime minister.

The withdrawal of a two-year energy support scheme plus possible changes to pension and welfare benefit levels means the country’s looming recession is expected to deepen, as households struggle with surging energy and food costs.

“I do want to accept responsibility and say sorry for the mistakes that have been made,” Truss told the BBC late on Monday.

“I wanted to act to help people with their energy bills, to deal with the issue of high taxes, but we went too far and too fast.” She added she was “sticking around” and that she would lead the Conservatives into the next election due in about two years’ time, although the statement was accompanied by a laugh.

Truss watched silently in parliament on Monday as Hunt demolished the radical economic agenda she proposed less than a month ago, which triggered a bond market rout so deep that the Bank of England had to intervene to prevent pension funds from collapsing.

For some in the party, the sight of a prime minister humbled in parliament did little to offer any confidence she could fight on.

The Daily Mail, which had hailed Truss’s plan, ran a front page with the prime minister leaving parliament on Monday underneath the headline “In the office, but not in power” while the also supportive Sun newspaper called her “The Ghost PM”.

James Heappey, a minister for the armed forces, said Truss, his boss, could not afford to make any more mistakes. “To her credit, she has owned it and apologised,” he told Sky News.

She meets her cabinet team of top ministers on Tuesday and then will speak to her lawmakers, who have been urged by some close to the government to hold off from any move to oust her until Oct. 31 when the government presents its full fiscal plan.

Markets In Turmoil

Truss was elected by party members and not the broader electorate on a promise to slash taxes and regulation to fire up the economy in a policy that was dubbed by critics as a return to 1980s Thatcherite-style “trickle-down” economics.

But the market reaction was so dramatic that borrowing costs surged, lenders pulled mortgage offers and pension funds fell into a tailspin.

The Bank of England said a report in the Financial Times about a new delay to the start of its sales of government bonds was inaccurate. The FT said it had learned that top officials were likely to decide a delay was needed after judging the gilts market to be “very distressed” in recent weeks.

Ryanair (RYA.I) boss Michael O’Leary described Britain’s economic situation as a “car crash” which he blamed on the country’s decision to vote to leave the European Union in 2016.

With Britain’s economic reputation shattered, Hunt may now have to go further in finding public spending cuts than the government would have done had Truss not unleashed her economic plan at a time of surging inflation.

Torsten Bell, the head of the Resolution Foundation, a think tank, told BBC radio that the government may now need to find public spending cuts of around 30 billion pounds, a task that will be made more difficult by successive Conservative governments cutting departmental budgets over the last 10 years.

One area of spending all ready to go is Truss’s vast two-year energy support package that was expected to cost well over 100 billion pounds (RM535.15 billion).

Hunt has said support to households and businesses will now last until April, before it is reviewed, prompting analysts to say families could face energy bills of 5,000 pounds next year.

On Monday, Hunt refused to guarantee previous policies, such as a commitment to increase pensions in line with inflation.

Showing the pressures that will grow on the government as it tries to cut spending, Heappey, a junior minister, said he would quit if the government dropped its plan to increase defence spending to 3% of GDP by 2030. “There is no prosperity without security,” he told LBC Radio.

Truss also faces a struggle to win back not only her own lawmakers but also the public, who according to YouGov, ranks her as the most unpopular leader the company has ever tracked. – Reuters

The post Liz Truss Apologises For Economic Plan As Spending Cuts On The Way first appeared on NMH.

Unfazed by a price drop over the last 11 months, investment firms have launched a flood of exchange-traded funds, betting that elite cryptocurrencies and their underlying technology will triumph in the end.

Morgan Stanley said in a note published this month that half of the world’s active crypto exchange-traded products (ETPs) and trust products have launched since the bitcoin bear market began. The proliferation occurred despite the fact that the total market value of assets fell 70% to RM113.21 billion during that time period as crypto prices plummeted.

About 95% of those 180 funds are focused on the top two coins, bitcoin and ether , Morgan Stanley said.

“Naturally when the market is slower, prices are lower, people have lost money, the intensity of the appetite does diminish,” said Chen Arad, co-founder of crypto risk monitoring firm Solidus Labs. “But it’s not the case in the long run. As a whole, I don’t think anyone is giving up.”

The attraction of ETPs is that they provide exposure to digital assets on a regulated stock exchange, so retail and institutional investors don’t have to worry about securely storing their crypto and eluding hacks and heists.

In terms of money, cryptocurrency investment products have attracted about RM2136.80 million in net inflows this year with much of it going into bitcoin and investment vehicles that include the biggest cryptocurrencies, according to a report from digital asset manager Coinshares.

“There is more asset allocation towards baskets that combine the top five or 10 crypto assets by market cap. It’s a flight to quality compared to alternative assets in the crypto industry,” said Eliezer Ndinga, director of research at 21shares.

Other major cryptocurrencies include solana , cardano and ripple .

Clock is Ticking

Reuters Graphics

Most active crypto ETP products are registered outside the United States, though, with Switzerland, Canada, Australia and Brazil racing ahead with spot crypto offerings.

One reason is that U.S. regulators have turned down several applications for spot bitcoin funds, which mirror the cryptocurrency’s price movements tick-by-tick, citing multiple reasons including a lack of surveillance-sharing agreements with regulated markets relating to the spot funds’ underlying assets.

Investors in futures-based funds must often shoulder the additional cost of the futures rollover as contracts approach settlement day, to maintain their position.

Bitcoin has lost 17% in the past three months, while ProShares Bitcoin Strategy’s ETF , which tracks bitcoin futures, has shed about 21%. The world’s largest bitcoin fund, Grayscale Bitcoin Trust (GBTC.PK), is down 34% in the same time.

ProShares Bitcoin Strategy ETF, has seen assets under management (AUM) shrink to just over RM2830.20 million as of the end of September, according to Refinitiv Lipper data. At its debut a year ago it pulled in over RM4.72 billion in a matter of days.

At Grayscale’s Bitcoin Trust, the AUM have tumbled to RM57.55 billion from over RM141.51 billion at the end of 2021, data from the firm showed.

Will Peck, head of digital assets at WisdomTree, whose spot bitcoin ETF was blocked by U.S. watchdogs last week, said he wasn’t surprised by the decision, but expressed hope that an agreement could be reached.

“I think we’ll ultimately get there. But we’ll be in a holding pattern for the foreseeable future.” – Reuters

The post Flurry Of Funds Bet On New Allure For Bitcoin first appeared on NMH.

Truss appointed Hunt on Friday in an attempt to save her leadership as confidence in her ability to lead the country dwindled within her own Conservative Party as well as in international financial markets.

Since September 23, when Hunt’s predecessor, Kwasi Kwarteng, announced a series of unfunded tax cuts without publishing a set of independent economic forecasts, investors have been selling British government bonds aggressively.

The consequences forced the Bank of England to intervene in an emergency to protect pension funds, and mortgage rates rose, adding to the strain on Britons’ finances.

“No government can control the markets. No Chancellor should seek to do that,” Hunt told BBC television in an interview broadcast on Sunday.

“There is one thing we can do and that’s what I’m going to do, which is to show the markets, the world, indeed people watching at home, that we can properly account for every penny of our tax and spending plans.”

Britain’s economy is at risk of going into recession at the same time as the Bank of England is raising interest rates to control soaring inflation. Bank of England Governor Andrew Bailey said on Saturday he thought a big increase in interest rates would be needed in early November.

5 minute readOctober 16, 20228:47 PM GMT+8Last Updated 28 min ago

UK finance minister Hunt vows to win back financial market trust

By William James

 and William Schomberg

1/2

FILE PHOTO – British Chancellor of the Exchequer Jeremy Hunt speaks during an interview with television correspondent Robert Peston outside the BBC headquarters, in London, Britain, October 15, 2022. REUTERS/Henry Nicholls

• Summary

• No government can control financial markets – Hunt
• PM Truss remains under intense political pressure
• Hunt promises to make “difficult decisions” on spending and tax

LONDON, Oct 16 (Reuters) – New finance minister Jeremy Hunt promised to win back Britain’s economic credibility by accounting for every penny of the government’s tax and spending plans, while insisting that his boss Prime Minister Liz Truss remained in overall charge.

Truss appointed Hunt on Friday in an attempt to rescue her leadership as confidence in her ability to run the country drained away within both her own Conservative Party and international financial markets.

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Investors have sold British government bonds heavily since Sept. 23 when Hunt’s predecessor, Kwasi Kwarteng, announced a string of unfunded tax cuts without publishing a set of independent economic forecasts.

The knock on effects forced the Bank of England to make an emergency intervention to protect pension funds and drove up mortgage costs – adding to the squeeze on Britons’ finances.

“No government can control the markets. No Chancellor should seek to do that,” Hunt told BBC television in an interview broadcast on Sunday.

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“There is one thing we can do and that’s what I’m going to do, which is to show the markets, the world, indeed people watching at home, that we can properly account for every penny of our tax and spending plans.”

Britain’s economy is at risk of going into recession at the same time as the Bank of England is raising interest rates to control soaring inflation. Bank of England Governor Andrew Bailey said on Saturday he thought a big increase in interest rates would be needed in early November. read more

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Truss – who won the leadership of the Conservative Party barely a month ago after promising to slash taxes – fired Kwarteng on Friday and has ditched key parts of the programme they agreed together.

The chaos has fuelled discontent in the governing party, who before Friday were already splintered and falling far behind the opposition Labour Party in opinion polls. Sunday’s newspapers were rife with stories of plans to replace Truss.

Even U.S. president Joe Biden criticized Truss’s original economic plan as a mistake.

“I think that the idea of cutting taxes on the super wealthy at a time when – anyway, I just think – I disagreed with the policy, but that’s up to Great Britain to make that judgment, not me,” he said.

Hard Decisions

After effectively dismantling Truss’s gamble that tax cuts would spur increased growth and pay for public spending, Hunt has said he will go further including imposing tighter spending controls and some tax rises.

“I’m going to be asking every government department to find further efficiency savings,” he said, adding that while he wanted to keep other tax cuts the government has promised, he ruled nothing out in his drive to balance the books.

He said he would set out the details in a fiscal statement already scheduled for Oct. 31.

The Sunday Times said that initial forecasts from the Office for Budget Responsibility showed a 72 billion pound (RM378.13 billion) shortfall in the current plans. The paper also said Hunt would delay a planned cut to the basic rate of income tax.

The Treasury declined to comment on the report.

Asked if he thought financial markets would have confidence in his plans, Hunt told the BBC: “Well, I think, you know, for people trading the markets, actions speak louder than words.”

A first test will come on Monday morning when trading in Britain’s battered government bonds resumes without the support of the Bank of England’s emergency bond-buying programme which expired on Friday.

“Basically we’ve moved from looking not too dissimilar from the U.S. or Germany as a proposition to lend, to looking more like Italy and Greece,” former Bank of England Deputy Governor Charlie Bean told Sky.

The PM Is In Charge

While Hunt seeks to fend off financial market pressure, Truss has to deal with mutiny from within her party.

Reports citing anonymous sources filled Sunday’s newspapers, with defence minister Ben Wallace touted as the preferred replacement of senior lawmakers by the Sunday Mirror, and Rishi Sunak – who Truss defeated last month in a leadership contest – named as another possible successor by the Sun on Sunday.

Truss wrote an article in the Sun admitting that her plans had gone “further and faster than the markets were expecting”.

“I’ve listened, I get it,” she wrote. “We cannot pave the way to a low-tax, high-growth economy without maintaining the confidence of the markets in our commitment to sound money.”

Conservative lawmaker Robert Halfon said her initial plans had made the government look like “libertarian jihadists” who had treated the whole country as laboratory mice on which to carry out ultra free market experiments.

He told Sky that while he was not calling for her resignation now, things had to improve.

Hunt was asked whether, given the drastic policy change he has overseen, he was now effectively running the government.

“The prime minister is in charge,” he said. “She has changed the way we’re going to get there. She hasn’t changed the destination, which is to get the country growing.” – Reuters

The post UK Finance Minister Jeremy Hunt Vows To Restore Trust In Financial Markets first appeared on NMH.

KUALA LUMPUR — Two million youths aged 18 to 20, and full-time students aged 21 and above, will receive the benefits of the E-Pemula, an e-wallet credit programme, as its one-off credit will be increased to RM200 next year.

When tabling the Supply Bill 2023 in the Dewan Rakyat today, Finance Minister Tengku Zafrul Abdul Aziz stated that the programme will continue, involving RM400 million in allocation, an increase from the original amount of RM150, as part of improvement efforts.

Reactions to the announcement have been mixed, as some on Twitter have praised the increased but prefer a wage increase or basic income over an e-Pemula increase.

Furthermore, he stated that the Social Security Organisation (Socso) employment initiative will be provided to employers who hired youths aged 18 to 30, who had been looking for work for more than three months.

This initiative is also extended to employers who hire graduates of Technical and Vocational Education and Training (TVET).

“To encourage more young people to do business, a total of RM305 million will be provided as special loan facilities for youths through SME Bank, Tekun (National Entrepreneur Group Economic Fund), Mara (Majlis Amanah Rakyat), BSN (Bank Simpanan Nasional) and Agrobank,” he said.

Furthermore, the Finance Minister stated that RM50 million will be provided through BSN for the Skim Penjaja Muda Keluarga Malaysia, which provides loans of up to RM50,000 to ten thousand young people to generate their own income, such as operating a food truck business.

Tengku Zafrul stated that the government agreed to bear the licence fee under the MyPSV programme, as well as the B2 class motorcycle driving licence fee, to assist B40 youth who generate income through services such as taxis, buses, and e-hailing.

“To encourage youths to work, the Tekun Youth Mobilepreneur Scheme continues, with an RM10 million fund to finance the capital of young individuals involved in delivery services using motorcycles,” he said.

Meanwhile, he also announced that the Malaysian Family Youth Package, which helps youths get a pre-paid internet data plan subscription package for RM30 for a period of three months, has been extended until April 2023. — Bernama

More to come …

The post Budget 2023: E-Pemula Credit Increased, Gov’t To Pay E-Hailing Licence Fee first appeared on NMH.