Winners and losers from Budget 2021


KUALA LUMPUR (Bloomberg) -- Malaysia unveiled its biggest-ever budget to help the virus-ravaged economy get back on track for rapid growth.

Prime Minister Tan Sri Muhyiddin Yassin’s government allocated RM322.5bil billion for total expenditure next year, which it hopes will help the economy rebound with growth of 6.5%-7.5%. The administration also proposed a cut in personal income taxes, handed out monetary aid and eased costs for first-time home buyers.

Here’s a look at the biggest winners and losers.

WINNERS

Glove makers

Malaysia’s biggest rubber glove producers -- Top Glove Corp Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd -- were spared a windfall tax on their supernormal profits. Instead, they will contribute a combined RM400mil to bear some of the costs of a coronavirus vaccine and health equipment.

Builders

Builders including Gamuda Bhd and IJM Corp Bhd stand to gain. The government will go ahead in implementing transport infrastructure projects and will allocate RM15bil ringgit to fund the Pan Borneo Highway, Gemas-Johor Bahru electrified double-tracking rail project and phase one of the Klang Valley double tracking project.

The Rapid Transit System Link from Johor Bahru to Woodlands, Singapore and the MRT3 in Klang Valley will also continue. The government will also continue with the High-Speed Rail Project with Singapore because of its multiplier effect on the economy.

Property

To further boost home ownership, the government will extend full stamp duty exemption on transfer and loan agreements for first-time home buyers until the end of December 2025. The government will also set aside RM1.2bil for public housing projects.

Palm Oil

Planters The government will allocate RM400mil to write off interest on the debt of farmers under state-owned palm oil plantation agency Felda, as well as for development programs for them.

LOSERS

Smokers

Smokers, vapers and tobacco companies like British American Tobacco Malaysia Bhd may be impacted. The government will impose an excise duty of 10% on devices for all types of electronic and non-electronic cigarettes including vape effective starting Jan. 1.

Meanwhile, liquid used in electronic cigarettes will attract an excise duty at a rate of 40 sens per milliliter.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Budget 2021

   

Next In Business News

No trading for KLTM next week
CPO futures likely to experience technical correction next week
Essential economic contributors must be protected
Oil price hits multi-year highs in third weekly gain on demand recovery
Retail investor base doubles in Europe as US "meme" stock mania spreads
INSIGHT-GameStop lures Amazon talent with grand plans and no frills
Tin's ascent to decade highs fuelled by supply fears
GLOBAL MARKETS-Stocks set record highs as bond yields slide
Riding the commodities boom
Short Position - Green challenges, inflation, margin squeeze

Stories You'll Enjoy


Vouchers