Malaysia Morning News For November 6

Malaysia officially the second country in Southeast Asia to introduce a digital tax
Malaysia is officially the second country in Southeast Asia (SEA) to introduce a Digital Tax which could apply to both local and international players. Slated to be implemented by 1 January 2020, the tax is aimed to level the playing field and spark better competition in its e-commerce sector.
— The Drum

Malaysia to introduce tax on sugary soft drinks and juices
Malaysia will introduce a tax on high-sugar drinks and juices in a move to reduce levels of obesity. As of 1 April 2019, an excise duty of MYR 0.40 ($0.10) will apply to beverages containing more than 5g of sugar per 100ml and juices that contain more than 12g of sugar per 100ml. Malaysian finance minister Lim Guan Eng made the announcement when unveiling the country’s Budget 2019.
— Food Bev

Malaysia’s exports rebound in September
Malaysia’s exports rebounded by 6.7% in September 2018 to RM83 billion year-on-year (y-o-y) after a slight decrease in the previous month, according to Statistics Department.
— The Sun Daily

Malaysian budget highlights: 3 key areas of focus
Malaysia’s finance minister Lim Guan Eng delivered the Malaysian Government’s budget on Friday 2 November 2018, outlining three key areas of focus.
— In the Black

Malaysia’s September trade surplus widens most in decade
Malaysia’s September exports rose 6.7% from a year earlier thanks to stronger shipments of electronics, while imports slipped, widening the trade surplus to the highest in a decade, official data Monday showed.
— Nikkei Asian Review (paywall)

Petronas can absorb RM40b negative cash flows for 2 years: S&P
Malaysia’s state-owned oil company Petroliam Nasional Bhd’s balance sheet can absorb negative discretionary cash flows of RM40 billion for two years before headroom under its ‘aa’ stand-alone credit profile starts to reduce, S&P Global Ratings said in a report.
— New Straits Times

Genting Malaysia Falls Most on Record Amid Higher Casino Levies
The Malaysian casino operator tumbled as much as 30 percent, the biggest drop since its 1989 listing. Its parent Genting Bhd. fell as much as 12 percent, the most since 1998. Genting Malaysia was down 20 percent as of the midday break in Kuala Lumpur while Genting traded 3.8 percent lower.
— Bloomberg

MRCB-GK gets letter to resume LRT3 at fixed RM11.8b
MRCB George Kent Sdn Bhd (MRCB-GK) has received a Letter of Appointment from Prasarana Malaysia Bhd for the proposed Light Rail Transit Line 3 (LRT 3) project from Bandar Utama to Johan Setia for a fixed price contract of RM11.856 billion.
— New Straits Times

IPC and MyTOWN Shopping Centre Bring Iconic 11.11 Online Sale On-ground
IPC Shopping Centre and MyTOWN Shopping Centre in partnership with IKEA Malaysia are proud to unveil the “11.11 Carnival”. This is the first time the online 11.11 shopping phenomenon is brought on-ground to a physical retail environment. From 9 to 11 November 2018, IPC and MyTOWN will host multiple brands to provide shoppers with an even bigger and better unique shopping experience.
— AEC News Today/ PR Newswire (media release)

MAS seals $13.76b financial deal with Bank of Indonesia
It will make a local currency bilateral swap agreement where both central banks can exchange up to $9.5b.
— Singapore Business Review

Maybank Research cuts outlook on AirAsia Group, AirAsia X
Maybank Investment Bank Research has downgraded AirAsia Group (AAG) and AirAsia X after the government proposed to impose a levy for international departues.
— The Star Online

Important for Malaysia to strengthen resilience — Zeti
It is important for Malaysia to further strengthen its resilience against any uncertainties in the global economy as well as political developments that may affect growth, said Tan Sri Dr Zeti Akhtar Aziz.
— The Borneo Post

Malaysia charges another former ally of ex-PM Najib
Malaysian prosecutors charged another former ally of ex-Prime Minister Najib Razak with multiple counts of corruption on Monday as the government continues investigation into the alleged wrongdoing by its predecessor.
— The Nation

Foreign funds staged a comeback to Bursa Malaysia, accumulated RM322.7m net
International funds staged a solid comeback to Bursa Malaysia last week as they turned net buyers after four straight weeks of selling, MIDF Research said.
— New Straits Times

Short selling of Genting Malaysia suspended after plunging 27%
Bursa Malaysia Securities suspended all short-selling activities of Genting Malaysia (GentingM) early Monday after its share price tumbled in a knee-jerk reaction to the new casino tax under Budget 2019.
— The Star Online

Be serious, we are the army, says ATM
The Malaysian Armed Forces (ATM) have defended a directive to stop the use of light-hearted Malay folk poetry or pantun at official military functions, but said it was not sidelining local culture and customs.
— FMT

Great Eastern: RM2b contribution to Malaysia’s new health insurance plan being discussed
Great Eastern Holdings (GEH) on Monday said that it is in discussions with the Malaysian authorities on possible options to enable its unit, Great Eastern Life Assurance (Malaysia) Berhad (GELM), to satisfy prevailing foreign ownership requirements applicable to insurance companies in Malaysia.
— The Star Online

SC to issue regulations on property crowdfunding platforms
The Securities Commission Malaysia will be reviewing the details of the proposed structure and its guidelines on recognised markets to facilitate property crowdfunding platforms as announced in Budget 2019.
— The Star Online

DPI gets nod to list on ACE Market
DPI Holdings Bhd, an aerosol paints producer, has obtained the approval from Bursa Malaysia Securities Bhd to list on the ACE Market.
— The Sun Daily

RHB Research less optimistic on MoF’s 2019 GDP forecast
RHB Research Institute Sdn Bhd (RHB Research) is less optimistic than the Ministry of Finance (MoF) on its expectation that the economy will sustain at a slightly stronger pace of 4.9 per cent in 2019.
— The Borneo Post

Malaysia sets example by abandoning the noose
Malaysia’s decision to abandon the death penalty is winning praise and adds further momentum to a growing global trend that human rights advocates hope will spell an end to state-sanctioned killing.
— UCA News

Dr Mahathir hopes Japanese universities will open branches in Malaysia
Malaysian Prime Minister Tun Dr Mahathir Mohamad today expressed hope to see Japanese universities having their branches in Malaysia to enable Malaysian students to not only be exposed to Japan’s education system, but also to learn its culture.
— The Edge Markets

Former Malaysian PM Najib says higher fiscal deficit not due to 1MDB
Former Malaysian prime minister Najib Razak said the wider fiscal deficit projected in the country’s Budget 2019 was mainly on account of the removal of the Goods and Services Tax (GST) and not due to the scandal-ridden 1Malaysia Development Bhd (1MDB).
— DealStreetAsia

MIA commends govt’s Budget 2019’s efforts to develop more accountants
The Malaysian Institute of Accountants (MIA) has lauded the government’s efforts to develop more accountants through funding for Malaysian Professional Accountancy Centre (MyPAC) and the Bumiputera Empowerment Agenda in Budget 2019.
— The Borneo Post

Great Eastern in talks for RM2b contribution to Malaysia fund
Great Eastern Holdings Ltd in talks with Malaysian authorities on ways to satisfy country’s foreign ownership limit on insurers and one of the possible options is for co. to contribute initial seed funding of RM2b to a national health insurance fund, co. says in filing Monday.
— The Edge Markets

MALAYSIA TURNS TOWARDS DEMOCRACY—BUT LEAVES LGBT RIGHTS BEHIND
In the early hours of a Saturday morning in late August, Malaysian police stormed into the Blue Boy club in central Kuala Lumpur, one of the country’s oldest LGBT venues.
— News Week

Four Vietnamese women arrested in Malaysia nightclub raid
Four Vietnamese women were among 46 people detained as Malaysian authorities raided a Kuala Lumpur night club last week.
— VnExpress

Feature photo Max Pixel

This week’s Malaysia morning news feature photo acknowledges World Science Day for Peace and Development, November 10.

Find our previous morning news feature photos in the AEC News Today Morning News Feature Photos gallery where you will find a pictorial display of daily life throughout the Asean Economic Community (AEC).

Malaysia morning news by AEC News Today is your one stop source for Malaysia news on matters of governance and policies affecting Asean business communities. It is published M-F by AEC News Today: Governance, not government; policies not politics.