INVE$T | Market Sentiments
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According to the Finance Ministry, in its inaugural pre-budget statement (PBS), the upcoming Budget 2022 will focus on protecting and driving the recovery of lives and livelihoods of Malaysians, rebuilding resilience of the economy, and catalysing socio-economic reforms. Budget 2022 will prioritise continuing programmes to support and spur economic recovery in line with the gradual reopening of the economic sectors through the National Recovery Plan. It will also address potential lingering and longer-term effects of the pandemic on public health and economic structure. Another theme of Budget 2022 will be to ensure the continuity in policy and assistance provided to the people and businesses. It will also focus on efforts to help the vulnerable and disadvantaged segments of society, women, indigenous people and the disabled to ensure no one is left behind in the nation’s developmental and recovery agenda. Efforts to protect and generate new job opportunities will continue to be a priority. Budget 2022 will catalyse structural reforms in the post-pandemic period to boost the nation’s competitiveness, apart from ensuring greater sustainability and inclusiveness in its development agenda.
Beginning this year, the PBS will be published ahead of the tabling of the budget to increase transparency in annual budget preparation, a move which is in line with the proposed framework in enacting the Fiscal Responsibility Act, which aims to improve the governance, transparency, and accountability of the country’s fiscal management. This effort will enhance Malaysia’s position in the Open Budget Index, an international report published by the International Budget Partnership (IBP). Based on the IBP report for 2019, Malaysia recorded a relatively low score of 47 for budget transparency compared to regional countries such as the Philippines (76), Indonesia (70) and Thailand (61). This Budget also serves as a catalyst towards the implementation of the 12th Malaysia Plan (12MP) that will drive economic growth, inclusiveness, and sustainability in the medium term, based on the Sustainable Development Goals and the Shared Prosperity Vision (SPV) 2030. The government is also considering measures to increase tax revenue through increased tax compliance. Among the measures under consideration are :- the implementation of the Special Voluntary Disclosure Programme for indirect taxes administered by the Royal Malaysian Customs Department; the introduction of a Tax Compliance Certificate as a pre-condition for tenderers to participate in government procurement; the implementation of the Tax Identification Number as well as reviewing tax treatment that is identified as having elements of revenue leakage or harmful practices.
ASNB launches ASN Equity Global for investors with high risk tolerance
Amanah Saham Nasional Bhd (ASNB), the wholly-owned unit trust management company of Permodalan Nasional Bhd (PNB), today introduced ASN Equity Global (ASNEG), the first ASNB fund to focus entirely on global equities, which will be available for subscription from September 1, 2021 onwards. ASNEG primarily caters to investors with high risk tolerance as the fund employs a capital growth investment strategy that involves a big degree of exposure to international markets. True to its name, the fund will heavily focus on global public equities with an asset allocation of up to 99 per cent as it adopts a strategy of investing in high quality international companies with strong growth prospects and companies that will benefit from global megatrends. According to PNB group chairman Tun Arifin Zakaria, the introduction of ASN Equity Global marks another major milestone for PNB and ASNB as the fund management companies continue to fulfil their mandate to all Malaysians by providing easy access to global markets at an affordable entry point. The comprehensive range of unit trust products now cuts across multiple geographies and fund categories, comprising conservative, balanced, and growth funds, allowing unit holders to fulfil their financial and investment goals. ASN Equity Global is managed by PNB’s team of professional fund managers based in Kuala Lumpur as well as its London office, to capture and capitalise on opportunities in more than 50 major global stock markets. The minimum initial investment is only RM10.00 and additional investment from as low as RM1.00. Starting from September 1, 2021, investors can subscribe to ASN Equity Global at the initial offer price of RM1.00 per unit until September 21, 2021 on all channels, including www.myasnb.com.my and myASNB mobile app, ASNB branches and agents nationwide, as well as ASNB agents’ internet banking facilities. Between September 1 and December 31, 2021, ASNB is offering a lower sales charge rate for all over-the-counter subscriptions.
Eye On The Markets
This week, on Friday (3 Sep), the Ringgit opened at 4.1510 against the USD from 4.1770 on Monday (30Aug). Meanwhile, the Ringgit was 3.0935 to the Sing Dollar on Friday (3 Sep). On Monday (30Aug), the FBM KLCI opened at 1593.19. As at Friday (3 Sep) 10:00am, the FBM KLCI is down 12.22 points for the week at 1580.97. Over in US, the overnight Dow Jones Industrial Average closed up 131.29 points (+0.37%) to 35,443.82 whilst the NASDAQ added 21.80 points (+0.14%) to 15,331.20.