22/07/2025

BIZ & FINANCE TUESDAY | JULY 22, 2025

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Malaysian Paper

/thesundaily /

Govt successful in reducing new debt: Anwar

PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim said the government has succeeded in reducing the annual debt to RM77 billion in 2024 from RM99 billion in 2022. This fulfils the commitment of more prudent fiscal management, and only the interest payments on old debts have not yet been reduced, he said. “The new debt that the government has incurred (was) RM99 billion in 2022, dropping to RM93 billion in 2023 and in 2024 the total is RM77 billion ... that is less. “They say the total amount (of debt) is more, added with the old debt and the interest that we have to pay, but I said the government promised to reduce new debt, we have fulfilled that. “But what is being spread around ... we are increasing (the debt), so it is as if we are deceiving the people. If you look at these figures, who is deceiving?” he asked when speaking at the Prime Minister’s Department monthly assembly here yesterday. Anwar, who is also the finance minister, said annual new debt had been successfully reduced in line with the reduction in the PETALING JAYA: The regulatory functions of the Malaysian Aviation Commission (Mavcom) will officially be transferred to the Civil Aviation Authority of Malaysia (CAAM) effective Aug 1, as part of the govern ment’s ongoing aviation sector rationalisation plan. This transition, announced by the transport minister on June 23, follows the enactment of the Malaysian Aviation Commission (Dissolution) Act 2024 [Act 856], which provides the legal framework for Mavcom’s dissolution and the consolidation of its responsibilities under CAAM. In a statement, Mavcom said CAAM will assume full regulatory authority over the

achievement since 2020, thus reflecting the progressive momentum in the country’s economic recovery and reform agenda. Miti said the rise of the country is on track to be among the 12 most competitive economies before 2033, as targeted by the Madani Economy Framework. Anwar said the International Monetary Fund in its Article IV consultation for 2025 had praised Malaysia’s commitment in imple menting fiscal reforms including the Public Finance and Fiscal Responsibility Act. “What does that mean? It means the Finance Minister has handed over some of his powers to parliament to assess if the target has been met,” he said. – Bernama

but the expenditure is RM7,000, that is a deficit. So now we are reducing the expenditure to RM6,500, RM6,000, RM5,500. If it drops suddenly, then (development) cannot pro ceed,” he said. The prime minister praised the work of the civil service team who carried out their responsibilities so that Malaysia jumped 11 places in the IMD World Competitiveness Ranking 2025, to 23rd compared to 2024 (34th), driven by improved economic performance and ad ministrative efficiency. In June, the Ministry of Investment, Trade and Industry announced that Malaysia had jumped 11 places in the World Competi-tiveness Ranking 2025 to 23rd place, which is the country’s best

o Prudent fiscal management has brought amount down to RM77 billion in 2024, from RM99 billion in 2022

Anwar said the move was in line with economic principles that emphasise financial discipline in the economic management of an entity, including the country. “We took over in 2022, the fiscal deficit at that time was 5.5%. What is a deficit? It means that spending exceeds national in come, which means we are in debt. “We manage the national economy like a household eco nomy. If the income is RM5,000

deficit, while giving the commit ment that the government would reduce the fiscal deficit in stages and responsibly without affecting national development. He said the government had reduced the country’s fiscal deficit from 5.5% in 2022 to 4.1% in 2024, with a target of 3.8% for this year. The government has chosen a “gradual” approach so that deficit reduction does not sacrifice development needs and market confidence.

CAAM takes over Mavcom regulatory role from Aug 1

Market waiting for measures to ease cost of living: Investment bank

He expressed appreciation to all past and present commission and committee members, as well as Mavcom staff, for their dedication and professionalism in upholding integrity and impartiality. Their efforts, he said, have significantly shaped aviation policy, protected consumer rights, and supported industry growth. “I also extend my heartfelt gratitude to all our stakeholders for their trust, support, and collaboration throughout the years. As we prepare to close this chapter, we do so with immense pride in the legacy we leave behind, and full confidence in CAAM’s leadership in the journey ahead,” he added. Mavcom affirmed it will continue to carry out its duties and responsibilities until the official transition date.

country’s civil aviation sector, taking on a broad range of functions including licensing, allocation of air traffic rights, airport development, rural air services, economic regu lation, competition matters and general industry oversight. CAAM will also manage digital platforms such as AeroFile and AeroLicence, which handle over flight and landing permits, as well as

KUALA LUMPUR: The market is waiting for the government’s announcement of fiscal measures this week, following Prime Minister Datuk Seri Anwar Ibrahim’s remarks describing the upcoming initiatives as an “extraordinary appreciation” to ease cost-of-living pressures, said CIMB Invest ment Bank Bhd. The investment bank said the increase in civil servant salaries, flagged in advance in 2024, by RM10 billion this year and RM8 billion in 2026, as well as higher cash handouts of RM23 billion in 2026 under Sumbangan Tunai Rahmah , are geared towards expenditure outlays in 2026. “We think those outlays can be partly offset by additional revenue collection from e invoicing, carbon tax and Sales and Service Tax expansion, in addition to operational expen diture rationalisation (fuel and electricity sub sidies),” it said in its Treasury and Markets Research. On bonds, CIMB Investment Bank said that Malaysia’s sovereign bond yield movements last week broadly tracked core rates, with a weakening bias through mid-week, as markets expect the US Federal Reserve (Fed) to maintain a wait-and-see approach following signs of tariff pass-through to consumer prices in June. However, it said lower internal revenue service (IRS) subsequently spurred a rally in local govvies, while Friday’s advance second quarter of 25 gross domestic product release surprised to the upside with the economy growing at a slightly faster pace of 4.5% year-on-year, supported by services, in tandem with seasonal festive celebrations. On the new 30-year Malaysian Government Securities 07/55 issuance, the investment bank noted that demand was softer than expected, describing it as lukewarm for the RM3 billion public tender, which was accompanied by an additional RM2 billion through private placement. “The 10-year Government Investment Issues (GII) 04/35 auction scheduled for July 21, 2025, will offer RM5 billion for auction, in line with our expectation, bringing the outstanding amount to RM10 billion for the vintage, which just became a 10-year GII benchmark in April,” it said. – Bernama

licensing applications. Mavcom executive chairman Datuk Seri Saripuddin Kasim ( pic ) said the priority during this transition is to ensure minimal disruption to stakeholders and the public, while maintaining the momentum of Malaysia’s aviation sector.

CIMB Thai’s first-half net profit slips to 1 billion baht KUALA LUMPUR: CIMB Thai Bank PCL, a 94.83%-owned indirect subsidiary of CIMB Group Holdings Bhd, saw its net profit fall 21.8% year-on-year (y-o-y) to 1.01 billion baht (RM132 million) in the first half ended June 30, 2025 (H1’25). declined by 832.7 million baht, or 19.1%, due to lower impairment losses on properties for sale and lower specific business tax resulting from lower interest income, partially offset by higher employee expenses.

“This consequently improved the cost-to income ratio to 52.1% in 1H 2025 compared to 62% in the first half of last year. “Net interest margin (NIM) over earning assets stood at 1.9%t in 1H 2025, compared to 2.2%in 1H 2024, arising from lower interest income on loans,”Wut added. As at June 30, 2025, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 244.2 billion baht, a decrease of 2.8% from Dec 31, 2024. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 316.5 billion baht, a decrease of 2.3% from 324 billion baht as at However, foreign investors extended their net selling streak to two consecutive weeks, registering a net outflow of RM206.1 million. “Foreign investors were net sellers on every trading day except Monday and Friday, with outflows ranging from RM61.9 million to RM173.3 million. The largest outflow was recorded on Wednesday, followed by Tuesday with RM88.3

In a filing with Bursa Malaysia yesterday, CIMB Thai president and CEO Wut Thanittiraporn said the lower net profit was primarily due to one-off items, namely the adjustment in revenue recognition based on the effective interest rate (EIR) methodology and the additional expected credit loss (ECL) overlay. He said CIMB Thai Group’s H1’25 consolidated operating income fell by 257.8 million baht to 6.78 billion baht, mainly due to lower interest income on loans. He added that this was partially offset by a higher net fee and service income, which increased 30.5 million baht. Operating expenses for the period also

end-December 2024. The gross non-performing loans (NPL) stood at 6.3 billion baht, with a flat gross NPL ratio of 2.6%. “The gross NPL ratio is reflective of CIMB Thai Group’s stringent credit risk underwriting, effective risk management policies, improvement in loan collection processes and the continued management of the Bank’s NPLs,” he said. Wut said CIMB Thai Group’s loan loss coverage ratio stood at 155.9% as at June 30, 2025, from 149% as at Dec 31, 2024. – Bernama

Local retail net buying on Bursa enters second successive week KUALA LUMPUR: Local retail investors contin ued their net buying on Bursa Malaysia into a second consecutive week, MIDF Amanah Investment Bank Bhd said yesterday. million and Thursday with RM61.9 million.” The average daily trading volume experienced a broad-based incline last week except local institutions.

MIDF Amanah said foreign investors and local retailers recorded increases of 6.9% and 9%, respectively, while local institutions saw a decrease of 2.6%. – Bernama

The investment bank said a net inflow of RM239.4 million was recorded last week, around four times higher than the previous week’s inflow of RM52.7 million.