Economic Views

On 31 July 2025, the Malaysian government unveiled the 13th Malaysia Plan (13MP), outlining the country’s development framework for the next five years (2026–2030). Key highlights include total investments amounting to RM611 billion, of which RM430 billion is earmarked for development expenditure. This translates into RM86 billion annually, on par with the development allocations in …

MARC Ratings: Malaysia’s 13MP signals reform commitment Read More »

Global economic growth is expected to moderate in 2H2025 as trade tensions and geopolitical risks weigh on sentiment. The US’ sweeping tariffs have reignited protectionist concerns, contributing to slower global growth. The US economy contracted by 0.2% in 1Q2025, with the Purchasing Managers’ Index for both manufacturing and services falling below the neutral 50 mark …

2H2025 Outlook: Growth to moderate amid trade risks and policy uncertainty Read More »

On April 2, the US government launched baseline tariffs of 10% on all imports to the US and reciprocal tariffs on trade partners which were deemed to have existing tariffs on the imports of US goods. This action is in line with the Trump administration’s ongoing and evolving policy on imposing trade tariffs amid rising …

MARC Ratings evaluates impact of US tariffs Read More »

Global economic growth is expected to sustain, given the continuation of monetary easing policies despite the heightened level of trade protectionism. Global growth will be supported by the US economy which appears resilient, outperforming earlier projections of recession and hard landing, largely due to a robust services sector. This sector, buoyed by job creation policies, …

2025 Macroeconomic Outlook: Growth to sustain amid monetary easing and protectionism Read More »

The palm oil market continues to face significant uncertainties heading into 2025, with supply-side challenges exacerbated by adverse weather conditions and a slower pace of replanting. Palm oil prices in 2024 have remained elevated due to global supply constraints, driven by reduced exports from the largest palm oil producer, Indonesia, as well as recent adverse …

MARC Ratings: Crude palm oil price to average higher in 2025 Read More »

The global crude oil market is grappling with multiple challenges, each exerting pressure on the near-term price trajectory. Despite OPEC+ production cuts, slow demand growth and diminishing geopolitical risk premiums have kept Brent oil prices below USD80 per barrel (bbl) since 3Q2024. Heading into 2025, oil prices are expected to be weaker compared to those …

MARC Ratings: Oil prices to moderate in 2025 on supply dynamics Read More »

On October 18, 2024, the Malaysian government announced an allocation of RM421.0 billion for Budget 2025, marking a 3.3% increase from the previous year (2024: 1.5%). Of this amount, RM335.0 billion is designated for operating expenditure (2024: RM321.5 billion) while the allocation for development expenditure remains at RM86.0 billion (2024: RM86.0 billion). Budget 2025 underscores …

Budget 2025: Continuing the reform agenda Read More »

In the previous parts of this series pertaining to fiscal sustainability, we have discussed the country’s revenue, expenditures, and general balance sheet items. In this final part, we delve beyond traditional debt metrics to offer innovative insights into the country’s fiscal health. Fiscal sustainability is often benchmarked by debt-led indicators; however, this runs the risk …

Fiscal Sustainability (Part 3) – Surveillance of fiscal health beyond conventional measures Read More »

This is a multi-part series of articles where we analyse the elements of fiscal sustainability through: i) government revenue and expenditures, ii) on– and off–government balance sheet items, and iii) innovative sustainability ratios. In this second part, we discuss the state of the country’s balance sheet. Government debts can generate positive multiplier effects when allocated …

Fiscal Sustainability (Part 2): Malaysia’s pathway to a resilient balance sheet Read More »

This is a multi-part series of articles where we analyse the elements of fiscal sustainability through: i) government revenue and expenditures, ii) on– and off–government balance sheet items, and iii) innovative sustainability ratios. In this first part, we discuss Malaysia’s fiscal health through taxes and expenditures. Fiscal sustainability enables governments to meet future public expenditure …

Fiscal Sustainability (Part 1): Building a robust tax base and containing expenditure Read More »