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The Sun
3 days ago
- Business
- The Sun
Jalan Serkam-Bemban a boost to tourism access to Melaka City
JASIN: The newly opened three-kilometre road connecting Serkam and Bemban will serve as a strategic alternative route for tourists travelling from the south to Melaka, particularly to the main tourist attractions in the city centre via the Jasin Toll, said Chief Minister Datuk Seri Ab Rauf Yusoh. He said the new road, which links the Jalan Serkam-Bemban junction to the Jalan Kandang junction, would also help shorten travel time by up to five minutes, particularly for local residents travelling from Ayer Molek to the Jasin Toll. Ab Rauf said the RM20.2 million two-lane road project, which began on Nov 15, 2022 and was completed on April 25 this year, was funded through an allocation approved by the Rural and Regional Development Ministry under the First Rolling Plan of the 12th Malaysia Plan. 'This is an infrastructure project that not only links places but also connects the people's hopes for a brighter future. 'This is not just a road; it is a symbol of inclusive progress that proves the state government has never neglected the needs of the rural population,' he said after officiating the opening of Jalan Serkam-Bemban here today. Ab Rauf said the new road was also the result of close cooperation and shared determination between the state and federal governments, which would continue to serve as a catalyst for a more sustainable, inclusive and competitive Melaka. 'This project is also in line with the Melakaku Maju Jaya Strategic Plan 2035, as we aim to achieve not just rapid physical development but also balanced economic and social growth,' he said. Meanwhile, Ab Rauf said the federal government had approved nine new development and road upgrade projects following negotiations and applications submitted by the state government. He said all of the projects were currently at various stages of implementation, with the upgrading of Jalan Tun Hamzah from the JPJ Intersection to Semabok, involving an allocation of RM300 million, expected to begin in December. According to him, the construction of a new road from Kuala Linggi to Ayer Molek, Masjid Tanah, at a cost of RM125 million, is expected to begin in March next year, while the RM35.2 million road from the Rim junction to Kampung Ulu Jasin is slated for completion this August.
BusinessToday
16-05-2025
- Business
- BusinessToday
OCBC Revises Malaysia's Monetary Policy Forecast
Malaysia's economy expanded by 4.4% year-on-year in the first quarter of 2025, matching advance estimates, but signs of a broader slowdown have prompted OCBC Bank to revise its monetary policy forecast, bringing forward expectations of Bank Negara Malaysia (BNM) rate cuts to the second half of this year. According to OCBC Malaysia's Senior ASEAN Economist Lavanya Venkateswaran, the unchanged GDP print—down from 4.9% in Q4 2024—masks underlying weakness in domestic demand and exports, both of which are expected to weigh on growth in the coming quarters. 'The final Q1 GDP figure reflects softening domestic consumption and investments, coupled with slower goods exports,' OCBC noted in its latest economic update. 'Given the rising external risks, particularly from US trade tariffs, we now expect BNM to cut its policy rate by a total of 50 basis points in 2H25, earlier than our previous forecast of 1H26″ she said. Domestic Demand and Exports Show Signs of Fatigue OCBC noted that the domestic final demand contributed 5.7 percentage points (pp) to GDP growth in Q1 2025, down from 6.0pp in Q4 2024. Household consumption growth moderated to 5.0%, while investment activity cooled to 9.7% from 11.8% in the previous quarter. Public sector spending remained stable, while government expenditure edged slightly higher to 4.3% from 4.0%. Net exports added just 0.8pp to GDP growth, a sharp drop from 2.0pp in Q4 2024. Goods exports grew by only 1.6% year-on-year, while services exports held up relatively well, rising 16.9% amid continued strength in tourism inflows. However, the Bank said inventory drawdowns continued to drag on growth, subtracting 2.2pp from headline GDP—a fifth consecutive quarter of negative contribution from inventories. Sectoral Trends and External Balances On the supply side, downward revisions were made to growth in the manufacturing, construction, and services sectors, although the construction and services sectors remained relatively resilient. The contraction in the mining and quarrying sector was revised to -2.7% from an earlier estimate of -4.9%. Malaysia's current account surplus widened to RM16.7 billion (3.4% of GDP) in Q1 2025, up from RM12.9 billion in Q4, supported by a stronger goods trade surplus and a smaller secondary income deficit. However, the capital and financial account posted a wider deficit of RM20.2 billion, led by increased portfolio outflows and a slight decline in FDI inflows. Growth Outlook Dampened by Global Uncertainty OCBC projects Malaysia's GDP growth to slow further to 4.3% in 2025, down from 5.1% in 2024. Key downside risks include the imposition of US tariffs on Malaysian exports—particularly in sectors like semiconductors and pharmaceuticals—as well as a broader cooling in household and corporate spending due to growing global uncertainty. The bank expects Malaysia's current account surplus to narrow slightly to 1.7% of GDP in 2025, from 1.4% last year. 'With businesses adopting a wait-and-see approach and households turning cautious, economic momentum could ease further,' OCBC said. 'This makes the case for a more accommodative monetary policy.' BNM Signals Readiness to Act At its latest meeting on 8 May, BNM adopted a more dovish tone, citing increased downside risks to the economy. The central bank also reduced the Statutory Reserve Requirement (SRR) from 2% to 1%, effective 16 May, injecting RM19 billion in liquidity into the system. BNM Governor Tan Sri Abdul Rasheed Ghaffour commented that the central bank 'has the policy space to act if needed,' signaling readiness to support the economy if conditions deteriorate. OCBC believes that the upcoming BNM meetings—scheduled for 9 July, 4 September, and 6 November—will be closely watched for signs of a rate cut, depending on incoming economic data and the outcome of US-Malaysia trade negotiations. Related
