Economy

Low inflation boosts real incomes, encouraging greater consumption that benefits sectors reliant on household spending 

by IFAST RESEARCH TEAM 

SENSEX Index earnings are projected to rebound in fiscal year 2027 (April 2026 to March 2027), supported by favourable economic conditions. Inflation, which stood at 0.71% in November 2025, is expected to remain subdued due to ample food supply and Goods and Services Tax (GST) cuts. 

Low inflation boosts real incomes, encouraging greater consumption and benefitting sectors that rely on household spending. 

The financial sector, which accounts for roughly 39% of the Sensex Index, is set to lead the earnings recovery with double-digit growth. As urban consumption recovers and loan rates decline, credit demand is likely to rise. The Reserve Bank of India (RBI) has cut the repo rate by 1.25% this year, making borrowing cheaper. 

At the same time, RBI has reduced the cash reserve ratio — percentage of deposits that banks must hold as cash — from 4% to 3% in 2025. 

This frees up more lendable funds, allowing banks to expand loan growth and, in turn, support revenue growth. While net interest margin is likely to remain tight in the near- term as deposit repricing lag loan rate cuts, we expect bank earnings to experience double-digit growth in the financial year 2027 (FY27) due to strong credit growth. 

The consumer discretionary sector is also likely to benefit, as higher real incomes, lower borrowing costs, and GST-driven price reductions drive spending on non-essential goods and services such as automobiles. 

Limited Exposure to Direct Beneficiaries of the AI Boom 

Globally, the artificial intelligence (AI) boom has driven outsized equity gains in markets with significant exposure to AI infrastructure and applications. 

In the US, chipmakers such as Nvidia Corp and Broadcom Inc, alongside hyperscalers including Alphabet Inc, Microsoft Corp and Amazon.com Inc, have been key beneficiaries, as investors sought exposure to AI-driven growth. 

Emerging markets such as China, Taiwan and South Korea have also benefited, supported by the presence of semiconductor leaders like Semiconductor Manufacturing International Corp (SMIC), Taiwan Semiconductor Manufacturing Co (TSMC) and SK Hynix Inc, as well as internet platforms with substantial AI initiatives, including Tencent Holdings Ltd and Alibaba Group Holding Ltd. 

In contrast, India’s participation in the global AI equity rally is likely to remain modest in 2026, given the absence of large AI names within its equity market. 

This limits the country’s ability to attract AI-driven foreign inflows in the near-to- medium term, constraining upside at the index level. 

To be fair, Indian IT services companies such as Tata Consultancy Services Ltd and HCL Technologies Ltd have been pivoting from traditional digital transformation projects toward AI-centric deals, while investing in their AI capabilities to deliver services more efficiently. This positions them as potential beneficiaries of an AI rally. 

However, the shift toward AI-led services could weigh on near-term revenue growth, as efficiency gains in service delivery may ironically reduce billable hours. 

At the same time, Indian IT services firms continue to face headwinds from subdued global IT spending and changes to the H-1B visa regime. 

Consequently, while certain firms may see earnings improvement, we do not expect a broad-based rebound across the sector in 2026 as Indian IT services companies navigate a transitional period from traditional headcount-driven revenue models to AI-led, outcome-based service offerings. 

Outside of IT services, investors have limited opportunities to gain meaningful AI exposure in India, with the country being a late entrant to the semiconductor space. 

Current efforts are focused on producing mature nodes in the 28-nanometre (nm) to 65nm range, rather than the advanced chips required for AI applications. 

India’s goal of achieving chipmaking parity with major producers such as the US, Taiwan or even China by 2032 appears ambitious, given infrastructure deficits, a shortage of specialised talent and the rapid pace of innovation by incumbent chipmakers. 

On Dec 31, 2025, Taiwan’s TSMC announced the mass production of cutting- edge two nm semiconductor chips — a milestone that remains far beyond India’s current capabilities. 

While India produces roughly 600,000 electronics-related engineering graduates each year, only around one percent possesses the skills needed for fabrication and advanced packaging without extensive retraining. 

Infrastructure constraints also remain an issue, with critical semiconductor inputs such as ultrapure water and silicon wafers largely imported. 

The Indian equity market is likely to remain primarily domestic-driven for the foreseeable future and may lag global peers should AI remain a key investment theme. 

Persistent Indian Rupee Weakness Presents Additional Headwind 

The Indian rupee (INR) hit a record low in December 2025, crossing the psychologically important 90 US dollar per INR level as a widening trade deficit, foreign outflows and the RBI’s reduced intervention weighed on the currency. 

RBI has recently indicated a willingness to tolerate a weaker rupee, with chief economic advisor V Anantha Nageswaran said that he is “not losing sleep” over the rupee’s decline. 

Given low inflation, RBI has less of a need to defend the rupee to prevent imported inflation. 

In fact, a weaker rupee is necessary to boost export competitiveness, given US tariffs on Indian exports. As such, the depreciation of the rupee could continue to plague the Indian market in 2026. 

A US-India trade truce could lessen pressure on the rupee by improving India’s export outlook and narrowing the trade deficit. However, for the currency to stabilise — or appreciate sustainably — India would likely need to attract strong foreign institutional inflows back to its equity market. 

Less Compelling Investment Case for Indian Equities

With India’s economy on a strong footing and an earnings recovery in sight, many investors are anticipating a rebound in Indian equities in 2026. 

However, at current valuations, we do not find Indian equities attractive. Applying a fair price-to-earnings (P/E) of 19 times to estimated 2027 earnings, we derive a target price (TP) of 88,545 for the Sensex Index, implying a upside potential of just 4.1% (as of Jan 6). 

While a US-India trade deal may boost investor sentiment and foreign institutional investor (FII) inflows, any rally is likely to be short-lived, as projected earnings growth, factoring in lower reciprocal tariffs, still does not convincingly justify the high valuations. 

India also lacks the talent and infrastructure to compete with other emerging markets such as China, Taiwan and South Korea in advanced manufacturing. 

This limits its ability to move up the value chain and fully capitalise on structural megatrends, including the digitalisation of the global economy and rising AI adoption. 

The views expressed are of the research team and do not necessarily reflect the stand of the newspaper’s owners and editorial board. 

• This article first appeared in The Malaysian Reserve weekly print edition

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By AUFA MARDHIAH

FRANCE is looking to deepen critical minerals cooperation with Malaysia by backing a value-chain approach that prioritises refining and recycling alongside extraction, as global supply chains become increasingly strategic.

French Inter-Ministerial Delegate for Strategic Minerals and Metals Supply Benjamin Gallezot (picture) said France’s strategy looks beyond mining to include processing and downstream resilience.

“So the product that will be manufactured is not at all a raw material. It’s already a refined, very complex refined product. You have to understand that this separation technology is proven, but it’s a complex technology,” he said at a press conference on Jan 28.

Gallezot, who is also adviser to the French President on strategic minerals and metals, was visiting Malaysia following the signing of a Memorandum of Understanding between Malaco Mining Sdn Bhd and French rare earth refining and recycling expert Carester in Paris on July 4, 2025.

It was witnessed by Prime Minister Datuk Seri Anwar Ibrahim during his official visit to France.

French officials framed the cooperation as a “sovereignty partnership” aimed at reducing dependency risks while staying aligned with multilateralism and a rules-based order.

The industrial agreement was also positioned as supporting Malaysia’s ambition to move up the rare earth value chain, with an emphasis on meeting environmental, social and governance (ESG) standards.

Gallezot described France’s approach as spanning “not only extraction, but the whole value chain up to recycling”, with international cooperation forming one of its three pillars.

He added that France tracks around 50 critical minerals and metals, while pursuing multiple industrial projects supported by “several billions of euros” in investment and government backing.

Malaysia was positioned as a potential downstream player, with Gallezot saying the country has huge potential to expand processing and industrial activity given its existing manufacturing base.

The July 2025 tie-up was described as a technology transfer effort covering both extraction techniques and refining, intended to be carried out in a manner that is “respectful of environmental, social, and government responsibility”.

The project is already in the pilot phase, with the pilot plant under construction, and the French delegation visited the site during the Malaysia trip.

However, a key execution risk raised during the media briefing was whether the project can secure enough feedstock to justify separation investment, given the need to synchronise upstream mining with downstream processing timelines.

“The idea is to start with a pilot plant. A pilot plant is a medium-scale plant with a reasonable amount of feedstock that you need and this will be able to validate not only the separation technique, but also the mining technique at small scale,” Gallezot said.

Gallezot added that the approach is meant to scale progressively once the pilot is running and “everything is validated”, adding that mining can be modular with several sites and could begin with small sites before expanding.

On Malaysia’s policy against exporting raw rare earth elements, he said the partnership aligns with the push to export processed materials by anchoring the separation phase in Malaysia.

“The idea is really to have this separation phase here in Malaysia. So you see that we are conforming, I would say, to the wish of the Malaysian government not to export raw materials, but to export processed materials,” he said.

He also signalled downstream magnet-making interest, saying the Malaysian company involved has already been in touch with several magnet makers, while noting downstream participation does not necessarily need to be French-led and that European companies are also interested.

Gallezot noted that France’s own separation plant project is being carried out in partnership with Japan with support from the Japanese government, and said Japan is also interested in the Malaysia project given the scale of its magnet-making industry.

On the mining side, he highlighted that approvals and environmental authorisations sit with Malaysian authorities at local and federal levels, while leaving room for government-to-government cooperation on criteria and compliance support.

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KUALA LUMPUR — The Academy in Industry (ADI) programme under the Ministry of Human Resources (KESUMA) continues to demonstrate its effectiveness, with 86.3 per cent of its graduates securing employment, while 61 per cent of existing employees enjoyed a salary increase last year.

Deputy Minister of Human Resources Khairul Firdaus Akbar Khan (picture) said a total of 10,852 apprentices had registered under the programme, of whom 6,228 graduated, reflecting KESUMA’s efforts to strengthen the effectiveness of industry-based training.

He said the MADANI Government also places strong emphasis on improving job quality and aligning skills with industry needs through strategic collaborations with high-impact industry players such as PROTON, Huawei, PETRONAS and Daikin.

The move, he said, aims to ensure graduates are placed in jobs commensurate with their qualifications and high-value-added roles, in line with the government’s target of reducing the underemployment rate to 30 per cent by 2030.

“To achieve this, KESUMA has implemented an integrated strategy across agencies and departments to address underemployment, particularly among Technical and Vocational Education and Training (TVET) graduates, through coordinated training, expanded apprenticeship opportunities and job matching based on labour market data. 

“This effort is intended to better coordinate labour supply and demand by integrating various initiatives and platforms under KESUMA,” he said during a question-and-answer session at the Dewan Rakyat today.

He was responding to a question from Datuk Awang Hashim (PN–Pendang) on the government’s strategy to address graduate underemployment, including job placement rates by field of study and industry sector.

Khairul Firdaus said the measures are further strengthened through industry demand-driven training mapped to the National Occupational Skills Standards (NOSS) and complemented by In-Service Training.

These measures have raised the graduate employability rate to over 90 per cent, with 85.1 per cent securing jobs aligned with their fields of study, he said.

He added that four Advanced Technology Colleges under the Department of Manpower (ADTEC JTM) are projected to achieve a 100 per cent employability rate by 2025, namely the ADTEC JTM campuses in Pasir Gudang, Bukit Katil, Kota Kinabalu and Kepala Batas. 

According to him, the three highest-performing clusters in terms of field-relevant job placement are transportation (90.3 per cent), engineering services (88.6 per cent) and electrical maintenance (88.5 per cent), significantly surpassing the national averages of 57.6 per cent for postgraduate and 53.3 per cent for diploma graduates.

“This success is further reinforced by feedback showing that 97.5 per cent of employers are satisfied with the performance of ADTEC JTM students during their industrial training,” he said.

He added that as of December 2025, the Social Security Organisation (PERKESO) had implemented 3,715 job placement programmes, facilitating the placement of 61,997 individuals, primarily in the manufacturing, wholesale and retail trade sectors (25,481) as well as the professional, scientific and technical sectors (13,760). — BERNAMA

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KUALA LUMPUR — Malaysia’s exports rose by RM14.3 billion or 10.4 per cent year-on-year to RM153 billion in December 2025, said the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the increase in exports to the higher exports in Johor (+RM9.4 billion), Penang (+RM8.6 billion), Perak (+RM546.5 million) and Selangor (+RM90.8 million).

“However, exports decreased in Sarawak (-RM1.1 billion), Sabah (-RM921.8 million), Terengganu (-RM757.2 million), Melaka (-RM378.0 million), Pahang (-RM185.9 million), Kedah (-RM104.9 million), Kelantan (-RM103.0 million), Labuan (-RM89.9 million), Kuala Lumpur (-RM68.6 million), Negeri Sembilan (-RM41.6 million) and Perlis (-RM11.8 million),” he said.

He added that Penang remained the top exporter, accounting for 40.1 per cent of the nation’s exports, followed by Johor (22.5 per cent), Selangor (14.7 per cent), Sarawak (6.0 per cent) and Kuala Lumpur (3.3 per cent).

Meanwhile, imports increased by RM14.3 billion or 12.0 per cent year-on-year to RM133.7 billion, due to higher imports by Penang (+RM5.8 billion), Johor (+RM3.6 billion), Kedah (+RM2.3 billion), Selangor (+RM2.3 billion), Kuala Lumpur (+RM1.3 billion), Perak (+RM753.5 million), Negeri Sembilan (+RM265.6 million), Pahang (+RM207.0 million), Terengganu (+RM58.1 million) and Sabah (+RM50.6 million).

“However, imports decreased in Melaka (-RM1.3 billion), Sarawak (-RM359.5 million), Labuan (-RM282.0 million) and Kelantan (-RM21.8 million),” he said.

Mohd Uzir added that Selangor dominates Malaysia’s imports with a share of 27.0 per cent, followed by Penang (24.8 per cent), Johor (21.1 per cent), Kuala Lumpur (7.7 per cent) and Kedah (7.0 per cent). — BERNAMA

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KUALA LUMPUR — Malaysia’s producer price index (PPI), which measures price changes at the producer level, continued to decline by 2.7 per cent in December 2025, following a 1.8 per cent decrease in the previous month, according to the Department of Statistics Malaysia.

Chief statistician, Datuk Seri Dr Mohd Uzir Mahidin said the agriculture, forestry and fishing sector decreased by 12.1 per cent from 9.7 per cent in November 2025, mainly due to a 19.6 per cent decline in the growing of perennial crops index.

“The mining sector went down by 8.8 per cent from 7.2 per cent in November 2025, affected by declines in both the extraction of natural gas (-11.5 per cent) and the extraction of crude petroleum (-7.8 per cent) indices.

“The manufacturing sector also contracted by 1.3 per cent from 0.6 per cent in November 2025, with the manufacture of coke and refined petroleum products index declining by 6.2 per cent,” he said in the December 2025 PPI report for local production released today.

Meanwhile, the electricity and gas supply and water supply sectors increased by 4.1 per cent and 10.9 per cent, respectively.

Mohd Uzir said on a month-on-month basis, the PPI for local production recorded a marginal decline of 0.2 per cent in December 2025 from 0.3 per cent in November 2025.

“The mining sector decreased by 2.0 per cent, and the agriculture, forestry and fishing sector also declined by 1.1 per cent.

“Conversely, the manufacturing sector increased marginally by 0.1 per cent and the water supply index increased 0.4 per cent, while the electricity and gas supply index declined by 0.2 per cent during the month,” he added.

Elaborating further on the PPI local production by stage of processing, Mohd Uzir noted that all stages of processing posted negative year-on-year changes in December 2025.

He said the crude materials for further processing index decreased by 8.3 per cent; the intermediate materials, supplies and components index eased by 1.6 per cent; and the finished goods index declined by 0.7 per cent.

“On a month-on-month basis, the crude materials for further processing index decreased by 0.8 per cent, while the finished goods index dropped by 0.2 per cent. In contrast, the intermediate materials, supplies and components index remained unchanged in December 2025,” according to DoSM.

Quarter-on-quarter, the PPI local production continued to ease by 1.5 per cent in the fourth quarter of 2025 (4Q 2025), from a 2.4 per cent decrease in 3Q 2025 due to the decline in the agriculture, forestry and fishing (-6.7 per cent), mining (-5.7 per cent) and manufacturing (-0.8 per cent) sectors.

“However, the electricity, as well as gas and water supply sectors recorded increases of 4.1 per cent and 10.6 per cent, respectively,” said Mohd Uzir.

Overall, he noted that PPI local production declined 2.0 per cent in 2025, following an increase of 0.3 per cent in 2024.

Meanwhile, DoSM said that aPPI in several economies showed mixed trends in December 2025, with Japan’s PPI increasing by 2.4 per cent year-on-year, while China remained in producer deflation, with its PPI declining by 1.9 per cent.

“Similarly, Thailand’s PPI decreased by 1.8 per cent, following a 1.6 per cent decline in the previous month. This marked the tenth straight month of year-on-year negative producer inflation, a similar trend in Malaysia,” it said.

Looking at selected Malaysian commodity prices, Mohd Uzir said that according to the World Bank, the average Brent crude oil price in December 2025 stood at US$62.72 per barrel, declining from US$63.61 per barrel in the previous month.

“The decline in global crude oil prices during the month was primarily attributed to persistent oversupply conditions and weak demand growth across global markets,” he said. 

Meanwhile, he said Malaysia’s oil palm fresh fruit bunch and crude palm oil (CPO) prices also declined in December 2025, and data from the Malaysian Palm Oil Board showed that the average price of CPO decreased to RM4,042.50 per tonne, down from RM 4,089.50 per tonne in November 2025. 

“The decrease in the average price of CPO was mainly due to rising palm oil inventories during the month. Inventories are also expected to remain elevated, which is likely to continue to cap price increases,” he added. — BERNAMA

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by SHAUQI WAHAB

THE government is stepping up targeted interventions to revive Sabah’s economy after the state recorded just 1.1% growth in 2024, compared with the national average of 5.1%, with a focus on infrastructure, high-impact industries and inclusive regional development.

Deputy economy minister Datuk Shahar Abdullah said that the Madani Economic Framework and the 12th and upcoming 13th Malaysia Plans (MP12 and MP13) are being used to restructure Sabah’s economy and narrow the regional development gap.

“The government is fully aware that Sabah’s economy grew at only 1.1% in 2024, and our approach is to restructure growth so that no region is left behind,” he said in Dewan Rakyat today.

Among key measures already delivered are the resolution of 13 Malaysia Agreement 1963 (MA63) claims, including the handover of electricity regulatory powers to Sabah, a sharp increase in the Federal Special Grant from RM26.7 million to RM600 million in 2025, and RM28.64 billion allocated for basic development projects.

Approved investments in Sabah reached RM11.91 billion between January and September 2025, while household incomes for Sabahans rose from RM5,087 in 2019 to RM5,836 in 2024.

Looking ahead, Shahar said MP13 will prioritise access to healthcare and housing, wealth creation, digital and artificial intelligence (AI) transformation, labour market and Technical and Vocational Education and Training (TVET) reforms.

“Under MP13, Sabah’s natural resources, biodiversity and strategic location will be leveraged alongside modern infrastructure, green technology and new economic sectors,” he added.

Sabah has been identified as a potential blue economy hub, with plans to explore special economic zones, including food production zones.

Development spending for Sabah in 2026 under MP13’s first phase will rise to RM6.9 billion, up 13.8% from the previous year, funding projects such as the Sabah Heart Centre, the Kalabakan–Simanggaris Road, Pan Borneo Highway Phase 1B and the Sabah Water Project.

On border and industrial development, Shahar said integrated strategies will strengthen infrastructure, security and cross-border economic activity in Sabah and Sarawak, while attracting high-quality investments in renewable energy, green and blue economy sectors, modern agri-food, advanced manufacturing and sustainable resource-based industries.

He stressed that coordinated federal–state implementation will be key to ensuring these initiatives translate into jobs, higher incomes and long-term, inclusive growth for East Malaysia.

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ASEAN risks being pushed to the sidelines of major geopolitical and economic decisions unless it responds to great power rivalry with a firmer, more unified posture.

The warning was among the central points raised at a high-level conference in London, where ASEAN and UK leaders from government, business and academia assessed the bloc’s place in a more fragmented global order, an English daily reported. 

ASEAN, with more than 680 million people and an economy nearing US$4 trillion (RM15.68 trillion), remains a key growth centre, but faces rising pressure from strategic competition between major powers, more restrictive trade policies and a multilateral system that is losing influence.

The conference, “ASEAN at the Geopolitical Crossroads”, was jointly organised by LSE Ideas at the London School of Economics and Political Science, the KSI Strategic Institute for Asia Pacific and the ASEAN Business Club.

LSE president and vice-chancellor Prof Larry Kramer and Malaysia Investment Development Authority (MIDA) chairman Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the shifting global landscape makes it more important for countries and regions to strengthen trade and investment links that can withstand shocks.

Organisers said a policy report with strategic recommendations will be prepared and submitted to ASEAN leaders ahead of the ASEAN Summit in May 2026.

“We need an ASEAN, but we need a strengthened ASEAN for the times we are in,” said ASEAN Business Club president Tan Sri Dr Munir Majid.

Discussions at the event centred on how ASEAN can respond to protectionist trends while also identifying areas where UK-ASEAN cooperation can be deepened, including trade, technology and education.

The conference also featured the UK-ASEAN Business Excellence Awards, which recognised business figures seen as contributing to stronger UK-ASEAN commercial ties.

Corporate partners supporting the conference included YTL Corp Bhd, Standard Chartered plc, Affin Bank Bhd, Bank Mayapada and The Petra Group.

Among the award recipients was Tan Sri (Sir) Francis Yeoh, founder and executive chairman of YTL, who received the recognition from Datuk Zakri Jaafar, Malaysia’s High Commissioner to the UK.

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KUALA LUMPUR — Both Malaysia’s export and import volume indices increased 13.8 per cent and 4.0 per cent in December 2025, respectively, according to the Department of Statistics Malaysia (DOSM).

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the increase in export volume index was in line with the increment in the indices of machinery and transport equipment (+23.6 per cent), manufactured goods (+22.2 per cent) and animal and vegetable oils and fats (+14.5 per cent), while the seasonally adjusted export volume index also gained by 7.0 per cent to 177.4 points from 165.8 points.

He said the export unit value index declined by 0.4 per cent in December 2025, due to decreases in the indices for animal and vegetable oils and fats (-2.7 per cent), miscellaneous manufactured articles (-0.5 per cent), and machinery and transport equipment (-0.3 per cent).

“Referring to the annual comparison, both the export unit value index and volume index expanded 1.8 per cent and 8.4 per cent, respectively,” he added.

Meanwhile, the import volume index rose by 4.0 per cent in December 2025 against the previous month, contributed by the increment in the index of miscellaneous manufactured articles (+32.3 per cent), chemicals (+27.9 per cent) and food (+25.2 per cent), while the seasonally adjusted import volume index increased by 3.4 per cent to 242.3 points from 234.3 points.

The DOSM said the import unit value index also dipped by 0.3 per cent in December 2025, due to the reductions in the indices of mineral fuels (-1.8 per cent), chemicals (-0.5 pr cent) and machinery and transport equipment (-0.3 per cent).

“A year-on-year comparison showed that the import unit value index declined by 3.0 per cent, while volume index edged up by 15.4 per cent,” it said.

The department said Malaysia’s terms of trade dropped 0.1 per cent month-on-month to 123.6 points in December 2025, due to decreases in the indices for animal and vegetable oils and fats (-1.3 per cent), miscellaneous manufactured articles (-0.2 per cent), and chemicals (-0.2 per cent).

Meanwhile, Malaysia’s terms of trade expanded 4.9 per cent year-on-year from 117.8 points in December the year before. — BERNAMA

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KUALA LUMPUR — Malaysia’s economic growth outlook continues to be supported by solid fundamentals. Our economy is highly diversified and our domestic demand is resilient, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour (picture).

In an exclusive interview with Bernama, he said Malaysia’s economy and trade structures are diversified as they are not overly dependent on one particular sector, industry or product segment.

“Even our export market is diversified. We don’t trade with just one country. We trade with many economies. No single country accounts for more than 15 per cent of Malaysia’s exports. That shows how diversified we are,” he said. 

Abdul Rasheed said Malaysia’s growth also exceeded expectations last year with its major growth engines supporting growth: consumption, investment, exports and tourism.

On fiscal policy, Abdul Rasheed said the government has demonstrated policy credibility by following through on its subsidy rationalisation measures involving fuel, electricity, water and diesel.

“The government has communicated its resolve to push through with its economic reform agenda. The government has promised reform, and has implemented it in a way that does not affect growth. 

“The government has also stuck to its commitment to fiscal reforms. This has allowed fiscal savings to be channelled back to the rakyat in a targeted manner,” he said. 

He added that long-term national frameworks such as the National Energy Transition Roadmap (NETR), New Industrial Master Plan (NIMP) and National Semiconductor Strategy (NSS) also provide clear policy direction for investors.

“These positive domestic factors make Malaysia an attractive destination for global investors, thus lending greater support to the ringgit,” he said. — BERNAMA 

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