It is that time of the year again, where we await to see what’s in store for us Malaysians in 2018. The 2018 budget is expected to be tabled on 27th October 2017. This year has indeed been a tough year for us whether or not you were or were not in the market. No matter it was the currency or oil price, boy has it not gone our way. Fortunately, we still saw some positive changes in the country; our all new MRT and some schemes from the government to lighten our burdens, but that’s last year’s story! Today we will be looking into what we expect to hear from the government next week.

Employee Insurance Scheme

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img source: humanresource online

We simply cannot doubt that unemployment has been on a rise, we can see retrenchment beginning in 2016. This was what triggered the government to introduce the Employee Insurance Scheme (EIS) for retrenched workers to protect the welfare of workers if they are affected. This scheme will keep the recently retrenched by providing financial aids for 6 months.

Construction Sector

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img source: smartsheet.com

We’ve heard a lot, read a lot and seen a whole lot of news on several infrastructure plans this year. The ECRL, Bandar Malaysia, Pan Borneo Highway, KL – SG High Speed Rail and more. These are all on-going projects. We should be expecting the budget to mention, infrastructure related projects that will be able to create more jobs as well as to stimulate the country’s economy.

Looking at the High-Speed Rail (HSR) it is expected to shorten the travel time to 1.5 hours in comparison to motor vehicles which takes approximately 4 hours. The rail is estimated to span 350km from KL to Singapore. The project is estimated to cost approximately RM50 to 60 billion.

Stocks to monitor: GAMUDA, IJM, IWCITY

The Pan Borneo Highway spanning 2,000 KM across Telok Melano at the southwestern tip of Sarawak to Serudong in Sabah, will cost an estimate of RM29 billion! It is expected to be completed in 2023

Stocks to monitor: UEM, MMC-CORP

As most of you might have heard the lapse of the Bandar Malaysia project to IWC-CREC, the government is now seeking for interested parties to keep this project going. The new master developer is expected to be announced anytime soon.

Stocks to monitor: IWCITY, MALTON

 

Healthcare

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img source: freepik.com

The healthcare industry, according to the Ministry of Health (MoH), was the fastest growing industry from 2000 to 2009 and it is recognizably the key driver to Malaysia’s economic growth. We can expect the expenditure on healthcare to increase next year. This would definitely benefit the few counters in this sector

Stocks to Monitor: IHH, TMCLIFE, BIOHLDG

Property Sector

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img source: freepik.com

Base on Bank Negara’s findings, there is a need of 960,000 additional affordable homes nationwide. The central bank is concerned of the widening of gap between the supply and demand. This issue could potentially be raised and solve in the upcoming budget to tighten the gap for the citizens.

Stocks to Monitor: KIMLUN, AJIYA

 

 

 


So, what are your thoughts on the upcoming budget 2018? Will it boost the market?

Want to know more? Join us on Tuesday, 24th of October 2017, 7.00pm to 9.00pm as our speaker gives you his thoughts on what to expect from Budget 2018!

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Disclaimer: The above stocks are merely suggestions by related sectors, and are NOT whatsoever buy calls or stock picks. Neither the company nor the authors of the blog are liable to any losses including, but not limited to, indirect and resulting losses incurred from the above article. Please do consult your dealer/remisier for advice!

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