Energy
Brent crude was 1.45% lower to US$32.62 per barrel at 2.17pm.
Forex
Ringgit up 1.18% to 4.2025 versus the US dollar at 2.42pm.
Top foreign stories
China floods financial system with US$52b to boost liquidity: China’s central bank said on Thursday it was funnelling 340 billion yuan (US$52 billion) into the financial system, the second injection in three days to meet surging demand for funds ahead of the Lunar New Year holiday. — AFP
UK announces help for struggling North Sea oil industry: Britain announced on Thursday a 250-million-pound (US$350 million) package of funding to boost the oil industry in northeast Scotland, which has been hit hard by slumping prices. — AFP
Iranian president in France for deals bonanza: Iranian President Hassan Rouhani will on Thursday agree a host of commercial deals during a visit to France that offers the clearest demonstration yet of the Islamic Republic’s post-sanctions intentions. — AFP
Big-spending Philippines posts strong Q4 growth: Growth in the Philippine economy picked up late in 2015 as strong domestic demand and government spending cushioned the impact of weak exports which are hurting many of its larger, trade-reliant Asian neighbours. — Reuters
Samsung Life to buy Samsung Electronics stake in Samsung Card: Samsung Life Insurance Co Ltd will buy sister company Samsung Electronics Co Ltd’s entire stake in affiliate Samsung Card Co Ltd, South Korean online publication Money Today reported on Thursday, as the country’s biggest conglomerate steps up move to streamline ownership.
Samsung Electronics posts 40% fall in Q4 net profit: Slowing global demand for smartphones as well as memory chips dealt a blow to Samsung Electronics as it reported a 40% on-year drop in fourth-quarter net profit. Net profit for October to December stood at 3.22 trillion won (RM11.26bil), below analyst expectations and down 39.7% from a year ago, the company said. — Reuters
Mortgages offer silver lining for India’s banks as corporate loans languish: India’s banks, struggling to boost mainstay corporate loans, are finding a bright spot in a home-buying spree in the country’s towns that has driven mortgage-loan growth to the fastest rate in at least six years. — Reuters
Top local stories
Highlights of recalibrated Budget 2016: Prime Minister Datuk Seri Najib Tun Razak on Thursday announced the revised Budget 2016 in the face of the fall in crude oil prices which has affected the government’s revenue. The main points of Budget 2016 revision are:
* Revised Budget 2016 will enable the government to save RM9bil.
* Govt will maintain the Goods and Services Tax.
* Fiscal deficit target at 3.1% of GDP.
* Govt revenue to be based on Brent crude oil at US$30 to US$35 per barrel from US$48.
* Trimmed GDP growth outlook for 2016 to 4%-4.5% from 4%-5%.
* Govt debt to be reduced to 55% of GDP.
* Govt will not peg the ringgit.
* Govt to reduce EPF contributions for employees by 3% from March 2016 to December 2017, contributors from employers unchanged.
* Govt to give special tax relief of RM2,000 to individual tax payers earning RM8,000 a month for year of assessment 2015.
* Malaysia to restructure foreign labour system.
* Govt to give special tax exemption for some selected income groups.
* Govt to allocate RM5bil for the Higher Education Fund (PTPTN).
* Govt will liberalise the control on import quotas or approved permits for eight agricultural produce for temporary period. It includes raw coffee beans, buffalo meat, beef and mutton
To enhance the efficiency and amount of tax collection, govt will double compliance and auditing efforts on tax evaders.
* Govt to give special consideration on relaxation for penalty on taxpayers to encourage them to come forward and declare their past years’ income. The tax arrears must be settled before 31 December 2016.
* For duty-free islands, to reduce leakages which resulted in revenue loss of nearly RM1bil, the government will restructure the selling channel of cigarettes and liquors limited to duty-free outlets licensed by the Royal Malaysian Customs Department.
* The free duty treatment on imported vehicles in duty-free islands will be tightened.
* Restructuring of sales on cigarettes, liquors and vehicle will not affect the tourists and locals who are residing in these duty-free islands.
* Govt will optimise the revenue from the telecommunications spectrum through a redistribution and bidding process which will be implemented soon.
FGV still in talks with Rajawali over Eagle High buy: Felda Global Ventures Holdings Bhd (FGV) reiterated that its discussions are ongoing with PT Rajawali Corpora for its proposed acquisition of a stake in PT Eagle High Plantations Tbk. — StarBiz
Chin Teck Q1 earnings halved on losses in Indonesia: Chin Teck Plantations Bhd
earnings fell 43.5% to RM5.98mil in the first quarter, partly because its associates sustained losses in their Indonesian oil palm plantations. It said on Thursday revenue was slightly higher at RM27.81mil from RM27.72mil a year ago due to slightly higher prices for the fresh fruit bunches. — StarBiz
MPI quarterly pre-tax profit rises to RM37m: Malaysian Pacific Industries Bhd (MPI)’s pre-tax profit for the second quarter ended Dec 31, 2015, rose to RM37.08 million from RM35.28 million a yaer earlier.
More challenging times for Islamic finance: The global Islamic financial system is now operating at a time when the international economic and financial environment has become immensely more challenging, said Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz. — StarBiz
Moody’s: Statutory reserve ratio cut credit positive for banks: Bank Negara’s move to cut the reserve ratio is credit positive for banks as it will have a moderating effect on funding costs, says Moody’s Investor Service. — Bernama
Pintaras gets Hilton project contract in I-City: I-Bhd unit City Centrepoint Sdn Bhd has awarded the contract for earthworks, piling and sub-structure works for the Hilton project in i-City, Shah Alam, to Pintaras Jaya Bhd subsidiary, Pintaras Geotechnics Sdn Bhd. — Bernama
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