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
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.
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
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
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