Thailand
Malaysia: Economic Reports 2017/18 Highlights
Highlights of the Economic Report 2017/2018:
* 2018 Federal Government Budget at RM280.25bil (RM260.80bil in 2017).
* GDP to grow at slower pace of 5% to 5.5% in 2018 from 5.2% to 5.7% in 2017.
* GDP by sector in 2018: Agriculture to slow down to 2.4% from 5.6%; Mining and quarry to grow slightly faster at 0.9% from 0.5%; Manufacturing to expand 5.3% versus 5.5%; Construction to increase by 7.5% from 7.6%;. Services to increase at slower pace of 5.8% from 5.9%.
* Inflation as measured by Consumer Price Index to increase at slower pace of 2.5% to 3.5% from 3% to 4% in 2017.
* Unemployment to decline to 3.3% from 3.4%.
* Palm oil price is expected to be about RM2,750 per tonne, a slight increase from RM2,700 in 2017.
* For 2018, Brent is expected to trade at an average US$52 per barrel from US$50 in 2017.
* GST collection to increase to RM43.80bil from RM41.50bil.
* Govt to reduce fiscal deficit to -2.8% from -3%.
2018 Federal Government Budget at RM280.25bil (vs RM260.80bil in 2017).
Federal Govt revenue
* Revenue to increase by 6.4% to RM239.86bil from RM225.337bil – comprising tax revenue and non-tax revenue.
* Tax revenue to increase by 2.4% to RM191.57bil from RM180.19bil a year ago, of which direct tax will be RM127.71bil, up 6.7% from RM119.699bil.
* The largest contributor to the direct tax will be companies income tax at RM72.475bil (RM67.822bil in 2017).
* Personal income tax will be higher RM32.234bil (from RM30.09bil); petroleum tax RM11.445bil (from RM10.937bil).
* Indirect tax will account for 26.6% of revenue at RM63.856bil, an increase from RM60.495bil in 2017, comprising GST at RM43.80bil, excise duties at RM12.33bil, import duty at RM3bil and export duty at RM1.4bil.
* Non-tax revenue is expected to be RM48.291bil, of which RM13.56bil is licences and permits and RM24.588bil is investment income.
Federal Govt operating expenditure
* Operating expenditure at RM234.250bil, up 6.5% from RM219.910bil.
* Of the RM234.250bil, emoluments to account for 33.8% of operating expenditure at RM79.149bil.
* Retirement charges to account for 10.5% at RM24.550bil;
* Debt service charges to account for 13.2% at RM30.882bil of which RM30.147bil is for domestic debt;
* Supplies and services to account for 14.4% at RM33.621bil;
* Subsidies and social assistance to account for 11.3% at RM26.544bil;
* Grants to statutory bodies to account for 5.6% at RM13.099bil;
* Others (includes grants to statutory bodies, public corporations, international organisations, insurance claims and gratuities) 7.2% at RM16.917bil – an increase from RM9.861bil in 2017.
Federal Government development expenditure for 2018:
* It is allocating RM26.342bil for economic activities or 57.3% of total expenditure. They include agriculture and rural development, energy and public utilities, trade and industry, transport, communications, environment and others.
* Transport will be allocated nearly one-quarter of economic activities budget, at 22.8% or RM10.479bil.
* Social activities will receive RM11.720bil or 25.5% of the development expenditure. Social activities include education and training which will be allocated RM5.256bil; others RM3.387bil; health RM1.910bil; housing RM1.167bil.
* Security – defence and internal security – will be allocated RM5.214bil or 11.3% of the development expenditure.
* Defence will be allocated a slightly lower amount at RM3.842bil (from RM4.250bil in 2017) and internal security RM1.372bil (up from RM1.036bil).
* Balance of payments (Net)
* Balance on current account RM32.940bil: goods (RM114.374bil); services (-RM22.689bil); primary income (-RM41.023bil); secondary income (-RM17.723bil).
External trade:
* Gross exports to increase 3.4% to RM948.674bil from RM917.474bil, of which manufactured to expand 3.1% to RM769.375bil; agriculture by 2.9% to RM769.375bil; and mining by 7.5% to RM86.329bil.
* Gross imports to expand 3.5% to RM851.681bil from RM822.881bil, of which intermediate goods to increase 3.6% to RM499.085bil; capital goods to rise 3.5% to RM121.790bil; and consumption goods by 3.5% to RM71.541bil.
Broader economy
* Average monthly salaries and wages of employees based on 2016 survey by Statistics Department increased 6.5% to RM2,463.
* Average monthly salaries of employees according to educational attainment, saw those with tertiary education rise 4.9%, secondary education 5.9%, primary education 8.4%, and no formal eduction 16.7%.
* At end-August 2017, total registered foreign workers fell to 1.8 million from 1.9 million a year ago. The manufacturing sector accounted for 35.8%; construction 19.5% and plantation 14.7%.
* Registered foreign workers were mainly from Indonesia (40.8%), Nepal (22.5%), Bangladesh (12.7%) and Myanmar (7%).
* The number of expatriates fell 10.3% to 147,868 at end-August 2017 from 164,937 a year ago.
* Manufacturing had the highest number of expatriates – Bangladesh (32.8%), India (16.8%), China (8.9%), and the Philippines (5.5%).
* Expatriates were mainly employed in services (47.6%), construction (15.6%) and manufacturing (11.8%) sectors.
Source: http://www.thestar.com.my/business/business-news/2017/10/27/economic-report-2018-highlights/#hqxBgpuZO6HoAAby.99