FBM KLCI marginally higher at midday as tariff anxieties weigh on gobal markets
As regional markets turned lower, the FBM KLCI managed to stay positive, albeit a marginal 0.67 points at 1,540.05.
The biggest lift was seen in stocks such as Press Metal up 13 sen to RM5.48, PETRONAS Chemicals gaining 17 sne to RM3.78, PETRONAS Dagangan up 18 sen to RM21.62 and Sunway rising six sen to RM4.88.
IOI Corp, meanwhile, weighed on the index after falling 11 sen to RM3.76 and Nestle shed 70 sen to RM87.30 following the recent rally.
Outside of the blue chips, however, sentiment was dour with the number of declining issues nearly double the the number of advancing. Trading volume was 2.25 billion shares valued at RM1.08bil.
Some stand out performancer included British American Tobacco , surging 33 sen to RM4.90 following a positive quarterly result.
Westports jumped seven sen to RM5.69 while Malayan Cement climbed seven sen to RM5.41.
Of actives, Focus was down 0.5 sen to 0.5 sen. ACE Market debutant Oxford Innotech ended 9.5 sen higher at 38.5 sen, while Ekovest slumped 5.5 sen to 38.5 sen following the failure of its merger with Knusford.
In key Asian markets, Japan's Nikkei was down 0.95% to 26,154 and South Korea's Kospi rose 0.65% to 3,230. China's composite index was 0.01% down to 3,595 and Hong Kong's Hang Seng slid 0.95% to 25,319.
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The Star
6 minutes ago
- The Star
Malaysia to enhance foreign fishing vessel control with e-PSM system
KOTA KINABALU: Malaysia is enhancing its oversight of foreign fishing vessels entering national waters through the launch of the Electronic Port State Measures (e-PSM) system. This initiative, aligned with international standards and under Section 15(2) of the Fisheries Act 1985, aims to combat illegal, unreported, and unregulated (IUU) fishing. Fisheries Malaysia director-general Datuk Adnan Hussain stated that the e-PSM system streamlines the application process for foreign vessels entering Malaysian ports, boosts enforcement efficiency, and solidifies Malaysia's commitment to addressing IUU fishing. "Foreign vessels must secure prior approval from the Department of Fisheries before docking at any Malaysian port. Through e-PSM, vessel owners must submit an application with details of their proposed entry date, destination port, and intended catch for landing. This information is thoroughly evaluated for authorisation," he explained. Adnan emphasised that failing to enforce such measures could be seen as tacit support for IUU fishing. Although Malaysia has not ratified the Port State Measures Agreement, the country remains dedicated to its principles. During the launch ceremony of the e-PSM system, held as a sidebar event to the National Farmers, Breeders and Fishermen's Day 2025 on Saturday (Aug 2), Agriculture and Food Security Minister Datuk Seri Mohamad Sabu officially launched the system. He also highlighted that a key objective of e-PSM is to ensure only vessels free from IUU fishing records are granted access and that any landed catch adheres to international conservation regulations, including CITES-listed species. "Foreign vessels must declare their catch. If the species involved are restricted or banned under international law, landing will not be permitted. "Applications are assessed in collaboration with international agencies, including those from Australia, the European Union, and regional bodies like the Indian Ocean Tuna Commission and the Western Pacific Tuna Commission, to verify the registration and status of vessels applying for entry," he said. Between 2024 and 2025, 20 foreign vessels have been approved for entry into Malaysian ports, resulting in the landing of 550 metric tonnes of tuna and related species at the Port of Penang, he noted. The Department of Fisheries actively promotes the e-PSM system through its official website and local authorised agents, who are required to submit applications on behalf of vessel owners for approval and monitoring purposes.
Borneo Post
6 minutes ago
- Borneo Post
Multiplier effect of RM2.6 billion in economic stimulus
Do our part, spend the RM100 wisely, and help to stimulate the economy. Rotarians purchasing essential items to be donated to a rural school hostel. In a move aimed at stimulating domestic consumption and offering some financial relief to the rakyat, Prime Minister Datuk Seri Anwar Ibrahim recently unveiled a nationwide initiative: every Malaysian aged 18 and above will receive RM100. While the announcement inevitably carries political undertones, that is a discussion for another day. To benefit from the initiative, recipients must spend the RM100 between 31 August and 31 December 2025, using their MyKad to make transactions. After the Prime Minister's announcement, some quarters reacted with skepticism, scoffing, 'Just RM100? That's hardly enough to make a real difference.' While RM100 per person may appear modest, the collective impact of this move is anything but small. With an estimated 26 million Malaysians eligible for this benefit, the total government spending for this initiative could amount to RM2.6 billion. But the story does not end there. When we take into account the concept of the economic multiplier effect, the overall impact on the Malaysian economy could be far greater. To understand this impact better, let us first explore the concept of the economic multiplier effect in layman's terms. Simply put, when money is injected into an economy, it does not just benefit the first person who receives it. That person, in turn, spends part of it, which becomes income for someone else. That second person then spends part of the income, passing it on to a third, and so the cycle continues. Each round of spending becomes slightly smaller than the last, but altogether, they add up to a much larger total economic impact than the original amount spent. This chain reaction is measured by what economists call the multiplier, which depends largely on a factor known as the Marginal Propensity to Consume (MPC). The MPC is a number between 0 and 1 that reflects the amount of every additional Ringgit of income a person is likely to spend rather than save. For example, if a person has an MPC of 0.80, it means the person is likely to spend 80 sen out of every additional Ringgit earned. The remaining 20 sen is either saved or used to pay off debts. The higher the MPC, the more powerful the multiplier effect will be. In the Malaysian context, research indicates that the MPC varies significantly across income groups. Low-income households generally exhibit a high MPC, sometimes reaching 0.81, as they must spend most of their earnings on essential items such as food, rent, transportation and utilities. In contrast, high-income households tend to exhibit a higher capacity to save. When crafting policies to stimulate economic activity, governments often target groups with higher MPCs, as their spending is more likely to generate a stronger and more immediate multiplier effect by circulating rapidly and repeatedly within the economy. The multiplier effect formula calculates the total increase in economic activity resulting from an initial injection of spending. The formula is 1 / 1 – MPC, where MPC is the Marginal Propensity to Consume. If we assume an MPC of 0.81, which is a reasonable estimate for the lower and middle-income groups in Malaysia, the multiplier becomes: 1 / 1 – 0.81 = 1 / 0.19 = 5.26 This calculation means that for every RM1 the government injects into the economy, the total economic activity generated could be as much as RM5.26. Applying this to the RM2.6 billion initiative, the total impact on the Malaysian economy could reach approximately RM13.7 billion. This kind of impact is especially significant during periods of economic uncertainty, rising living costs or when domestic demand requires a boost. For many small businesses and vendors, even a modest increase in consumer spending can make the difference between staying afloat and shutting down. By requiring the RM100 to be spent, rather than saved, and within a defined timeframe, the government is promoting a rapid cycle of consumption. This measure carries the potential to revitalise key sectors such as retail, food and beverage, transportation and services, industries largely driven by micro, small and medium enterprises (MSMEs). Another strategic feature of this policy is the use of MyKad as the mechanism for spending. This creates an efficient, transparent and traceable way of ensuring the funds are used as intended. It also allows policymakers to collect useful data on consumption patterns, which can be used to guide future economic planning. The requirement that the RM100 be spent within a four-month period ensures that the money enters the economy quickly, amplifying its short-term impact. Beyond the numbers, there are social and psychological benefits to this initiative. At a time when many Malaysians are grappling with economic pressure, the gesture of direct financial support can help restore confidence and morale. It signals that the government is attentive to the needs of the rakyat and willing to take action to support them. This reassurance, in turn, can increase consumer confidence, which is an important driver of economic activity. When people feel more secure about their financial future, they are more likely to spend, which further fuels the multiplier effect. However, the effectiveness of this RM2.6 billion stimulus also depends on several key factors. Firstly, it is important that the money is spent primarily on goods and services produced within Malaysia. If a significant portion is spent on imported products, the multiplier effect will 'leak' out of the economy, benefitting foreign producers instead. Secondly, the initiative should ideally be complemented by other policies that support local businesses, such as training, grants, subsidies or tax reliefs to enable them to meet the increased demand. Thirdly, attention must be paid to inflationary pressures. A sudden surge in demand, if not matched by supply, could lead to price increases that erode the purchasing power of consumers. An equally important component in the success of this initiative lies in the role of the rakyat. The effectiveness of the multiplier effect relies on their willingness to actively participate in the programme. The rakyat should be mindful to spend the RM100 in ways that support local businesses and essential services, rather than on imported or non-productive items. By choosing to buy from neighbourhood shops, local markets and Malaysian-owned enterprises, consumers can help ensure that the money remains within the domestic economy for as long as possible. Moreover, responsible and purposeful spending on food, school supplies, daily essentials or healthcare can contribute to both personal well-being and the broader national interest. The collective participation of millions of Malaysians in this initiative can significantly magnify its economic impact. Thus, the rakyat are not just recipients of financial aid, but active agents in revitalising the economy. The multiplier effect remains a powerful concept in economic planning. It tells us that the real value of government spending is not just in the initial amount disbursed, but in the way that money travels through the economy, creating layers of benefit as it goes. In this case, RM2.6 billion is not just a financial injection; it is a catalyst for RM13.7 billion worth of economic activity, livelihoods sustained and hopes renewed. While RM100 per person may seem insignificant on the surface, the strategic design and targetted timing of this initiative give it the potential to significantly uplift the Malaysian economy. By tapping into the high MPC of the population, especially among the lower-income groups, the government is leveraging a tried-and-tested economic principle to maximise impact. If well-executed, this policy will not only stimulate spending but also support local businesses, safeguard jobs and strengthen consumer confidence. It serves as a timely reminder that in economics, small actions when multiplied wisely, can lead to powerful results. Let us support this government initiative with a broader perspective. RM100 may seem little in terms of personal financial impact to high income earners, but its true value lies in the collective economic ripple it can create. When viewed on a national scale, this contribution carries the potential to stimulate substantial economic activity and generate meaningful income across various sectors. By participating in this effort, we are not merely spending, we are playing an active role in revitalising our economy and supporting fellow Malaysians whose livelihoods depend on it Footnote Dr Richard A. Gontusan is a Human Resource Skills Training and Investment Consultant. He earned a Master of Arts Degree in Economics from the Southern Illinois University at Carbondale, USA, and has lectured in Economics at the tertiary level. His views expressed in the article are not necessarily the views of The Borneo Post.
The Star
2 hours ago
- The Star
Fewer than 1,500 property purchases by foreigners in 2024, says minister
PETALING JAYA: There were 1,459 property purchases by foreigners last year, says Housing and Local Government Minister Nga Kor Ming. He said this accounts for 0.56% or RM3.054bil of the total 259,058 property transactions worth RM103.9bil by Malaysian citizens last year. "The Ministry's priority is to ensure every citizen has a place to live, whether owned or rented, under the concept of housing as a place to live (shelter for all), in line with the aspirations and goals of the National Housing Policy (2018-2025)," he said. Nga stated this in a parliamentary written reply dated July 31 in response to Ismail Muttalib (Perikatan-Maran), who asked about the statistics on foreigners owning houses in Malaysia. Ismail also inquired about the number of Malaysians owning more than two homes. According to Nga, the Basic Amenities Survey report 2022 by the Statistics Department noted 76.5% of Malaysians owned a home but did not specify if they owned more than two. Meanwhile, Nga said the Housing Credit Guarantee Scheme under the Syarikat Jaminan Kredit Perumahan Bhd (SJKP) has approved guaranteed loans totalling RM20.9bil based on 88,507 applications. Nga also said the government is considering expanding the rent-to-buy scheme for the people's housing programme (PPR), considering changing trends where buyers are concerned about economic stability.
