WEBVTT - 5 things you need to know about Malaysia’s general elections | EP 26

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<v Speaker 1>election fever is in full swing in Malaysia as it

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<v Speaker 1>prepares to head to the polls on november 19th, one

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<v Speaker 1>of the hot button, economic issues and how will the

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<v Speaker 1>outcome of the vote affect investor confidence. I'm Sona Ramesh

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<v Speaker 1>from the management team. This is five things you need

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<v Speaker 1>to know about the Malaysian elections joining me today.

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<v Speaker 1>Ser Jaime Elia's chief economist at Maybank Investment Banking group,

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<v Speaker 1>kevin chang, senior research officer at the ISIS use of

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<v Speaker 1>ISHA Institute in ceo of click through Malaysia. Now that's

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<v Speaker 1>a digital consultancy in Kuala Lumpur. Let's start off with

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<v Speaker 1>one of the key issues on voters minds as Malaysia

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<v Speaker 1>prepares to vote.

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<v Speaker 2>It's interesting because if you see Malaysia and especially from abroad,

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<v Speaker 2>it seems a lot of issues concerning race, religion in Malaysia.

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<v Speaker 2>But actually, if you look at the survey done by

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<v Speaker 2>medical center, which is arguably the most reputable polling agency Malaysia,

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<v Speaker 2>actually the biggest issue in Malaysia among the voters actually

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<v Speaker 2>economic concerns. And this probably is the most important factor

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<v Speaker 2>double or three

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<v Speaker 2>compared to what respondents mentioned as being a political instability

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<v Speaker 2>or even like race religion issue. So in other words,

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<v Speaker 2>economic concerns is, I would say the universal issue that

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<v Speaker 2>all Malaysians across all ethnic and racial groups are thinking

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<v Speaker 2>about rather than even political instability, which actually don't factor

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<v Speaker 2>so much into the everyday life of ordinary Malaysians. It

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<v Speaker 2>depends on which group of voters

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<v Speaker 2>or urban, lower income and rural households is pretty much

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<v Speaker 2>the common folks, socio economic concerns and issues like inflation

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<v Speaker 2>cost of living income, basic infrastructure, education, health care, but

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<v Speaker 2>at the same time, this election is about youth

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<v Speaker 2>Or young voters given the lowering of the eligible voting

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<v Speaker 2>age to 18 years from 21 years old. So for

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<v Speaker 2>this group of voters, I presume it's about their future

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<v Speaker 2>job security, better pay affordable housing as well as aspects

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<v Speaker 2>of quality of life and sustainable development like equality, inclusivity

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<v Speaker 2>and environment. The other key voting segment is the urban

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<v Speaker 2>high end

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<v Speaker 2>groups while sipping their coffees and dining at posh places

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<v Speaker 2>like era. It will be governance, corruption, integrity, democratic and

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<v Speaker 2>institutional reforms. The stuff that you can afford to ponder

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<v Speaker 2>and demand when you don't have to worry about income jobs, inflation,

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<v Speaker 2>putting food on the

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<v Speaker 1>table. Now, according to a recent World Bank report, there's

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<v Speaker 1>no easy fix for Malaysia's economic challenges. So what do

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<v Speaker 1>you think are the biggest red flags ahead?

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<v Speaker 2>The key thing that's mentioned is that Malaysia is facing

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<v Speaker 2>structural issues such as declining FBI. Over the last 10

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<v Speaker 2>to 15 years. Of course, there was a search in

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<v Speaker 2>FBI 2021 partly because of the trade wars between us

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<v Speaker 2>china and a lot of the diversion investments to Vietnam

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<v Speaker 2>and Malaysia in particular. So therefore there was abnormally in 2021.

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<v Speaker 2>But if you take 2021 aside, even for this year,

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<v Speaker 2>there's the declining FBI Guy

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<v Speaker 2>growth has been really like consistent and you can see

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<v Speaker 2>that each year there's been almost like a reduction in

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<v Speaker 2>FBI growth itself. So I think it's definitely one of

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<v Speaker 2>the key factors because without FBI that Malaysia is very

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<v Speaker 2>dependent or it will be difficult for the country to

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<v Speaker 2>get more foreign investment to propel growth. And I think

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<v Speaker 2>the other factor is also highlighted by World Bank, other

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<v Speaker 2>economic reports that Malaysia has been performing about 5%

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<v Speaker 2>GDP growth per year for the last about 10 years

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<v Speaker 2>or even longer. But actually Malaysia potential could be done

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<v Speaker 2>much higher than 5%. But of course we do understand

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<v Speaker 2>that especially related to labor regulations, foreign immigration, these are

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<v Speaker 2>the parts where Malaysia has been delaying some of the

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<v Speaker 2>very necessary forms and because of that slowing down its

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<v Speaker 2>economic potential, even though it is still growing at about 5%.

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<v Speaker 2>The biggest economic concern heading into the next general election

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<v Speaker 2>is worry about global economic outlook. Given this environment of

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<v Speaker 2>high inflation, high interest rates and how this will affect Malaysia,

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<v Speaker 2>we are seeing signs of media western economies, especially europe

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<v Speaker 2>facing this situation already. Given the search and info

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<v Speaker 2>caused by the fallout from Russia Ukraine war in terms

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<v Speaker 2>of commodity, especially energy supply and price shocks that in

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<v Speaker 2>turn push up inflation prompted central banks to be hawkish

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<v Speaker 2>and aggressively raise interest rates, there's also uncertainty surrounding china's

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<v Speaker 2>economic prospects. These major economies, US europe china Malaysia key

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<v Speaker 2>export markets, accounting for

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<v Speaker 2>Around one third of total exports and at the same

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<v Speaker 2>time nearly 1/5 of Malaysia's GDP are exposed to the

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<v Speaker 2>final demand from us, Europe and China. I guess there

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<v Speaker 2>will be a long list to do as far as

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<v Speaker 2>the next government is concerned among others. And speaking in

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<v Speaker 2>general terms, perhaps I can sort of rattle off eight

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<v Speaker 2>areas that I think are important.

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<v Speaker 2>First address voter concern on the cost of living issue,

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<v Speaker 2>especially on necessities like food security, affordable housing. Second, improve

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<v Speaker 2>the quality and delivery of essential public services namely education,

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<v Speaker 2>health care and public transport. Third would be to bring

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<v Speaker 2>about a more balanced growth and equitable development across the country,

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<v Speaker 2>especially for the less developed poorer states so that no

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<v Speaker 2>part of the country will be left behind.

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<v Speaker 2>Fourth continue and enhance policy support to the economically important

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<v Speaker 2>smes to address the critical issues of human capital development,

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<v Speaker 2>especially on talent and skilled force to aid the recovery

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<v Speaker 2>of the tourism ecosystem as well as strengthen the Social

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<v Speaker 2>Security and safety net

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<v Speaker 2>For the vulnerable segment of the Society. five, I think

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<v Speaker 2>the government knows they have to undertake economic reforms and

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<v Speaker 2>restructuring to strengthen Malaysia's competitiveness,

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<v Speaker 2>attractiveness and value proposition to invent too much show political

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<v Speaker 2>will to tackle issues of governance, corruption integrity. Seven remain

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<v Speaker 2>committed to medium term fiscal consolidation to avoid what I

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<v Speaker 2>call UK style physical missteps that hit market and currency

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<v Speaker 2>and jeopardize sovereign credit rating and one more thing is

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<v Speaker 2>maybe over the longer term stay the cost on addressing

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<v Speaker 2>climate change. Not only in terms of

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<v Speaker 2>realizing commitments to lower emissions but also assist and guide

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<v Speaker 2>communities and smes for a just transition towards sustainability

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<v Speaker 1>And for more that sme perspective, let's bring in he's

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<v Speaker 1>the ceo of click through Malaysia, a digital marketing consultancy

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<v Speaker 1>in Kuala Lumpur. What's on the top of your wish list?

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<v Speaker 2>I don't think so. There will be a lot of

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<v Speaker 2>changes besides wanting a more stable government and the entire

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<v Speaker 2>system needed to be said not only for sme I

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<v Speaker 2>will say that the entire system for example in education

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<v Speaker 2>sme

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<v Speaker 2>to take care of the business mall, the policy need

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<v Speaker 2>to reset. The mindset in the reset is actually more

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<v Speaker 2>people friendly and business friendly as well and investor friendly.

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<v Speaker 2>Whoever that is going to be elected to the government right.

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<v Speaker 2>They have to have a mindset of doing all this

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<v Speaker 2>reset and if they actually maintaining the status quo is

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<v Speaker 2>just changing on the top, which is the minister helming

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<v Speaker 2>the department without more robot

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<v Speaker 2>mindset and resetting is going to be the same. It's

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<v Speaker 2>going to be no different for us who is going

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<v Speaker 2>to be elected to be a government.

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<v Speaker 1>Could you tell us a bit more of that type

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<v Speaker 1>of reset that you'd like to see, for example, the U.

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<v Speaker 2>N. C. Your government put up a lot of effort

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<v Speaker 2>there 100 over grants available for sme to like but

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<v Speaker 2>they're not in touch with the market, the intention is good,

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<v Speaker 2>they're helping. But the main issue now with sme is

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<v Speaker 2>they are facing problem let's say in finance

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<v Speaker 2>Wise and all that and they need help. But you

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<v Speaker 2>are giving out a grant that you need to apply.

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<v Speaker 2>The grant is actually a 50,000 cash one off for

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<v Speaker 2>starting a new business and then you need to do

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<v Speaker 2>a projection while it's good. Yeah it actually has to

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<v Speaker 2>be available since without even pandemic but on pandemic it's

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<v Speaker 2>actually those smes facing problem which is cash flow problem

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<v Speaker 2>and wrong

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<v Speaker 2>material, increased price from these are the problems that they

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<v Speaker 2>are really facing it and what help they need. They

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<v Speaker 2>don't need all these I. D. Card you know the

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<v Speaker 2>kind where you need to go and apply and do

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<v Speaker 2>projection for them. This is actually starting a business to

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<v Speaker 2>help sme is actually to grant them more people friendly policy.

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<v Speaker 2>Like for example one of help in text.

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<v Speaker 2>These are the things that actually helping them instead of

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<v Speaker 2>you asking them to go and apply for you know

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<v Speaker 2>and then do a forecast for them and then your

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<v Speaker 2>cash flow is it okay or not? Okay then only

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<v Speaker 2>approve your loan and all that kind of stuff. This

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<v Speaker 2>is not so friendly. Well it's very interesting that comes

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<v Speaker 2>from smes leaders

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<v Speaker 2>typically I would say the most resistance to change but

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<v Speaker 2>I think when it comes to reset maybe a few

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<v Speaker 2>things first and foremost continue to support sme in terms

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<v Speaker 2>of adoption of technology in terms of

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<v Speaker 2>digitalization, mechanization automation to help them address one key issue

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<v Speaker 2>right now, which is a shortage of workers, especially foreign workers.

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<v Speaker 2>And I think shortage of workers is part and parcel

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<v Speaker 2>of this global, global phenomenon of shortage economy. So I

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<v Speaker 2>think that can help them in terms of addressing the

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<v Speaker 2>issue as well as boost their productivity and efficiency as

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<v Speaker 2>well as competitiveness.

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<v Speaker 2>Second, I guess continue to have them in terms of

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<v Speaker 2>funding because I think in this environment of rising interest rates,

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<v Speaker 2>certainly they're going to be a big challenge. So I

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<v Speaker 2>suppose the special schemes by the government will continue to

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<v Speaker 2>be rolling in as far as sme is concerned.

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<v Speaker 2>I think the budget 2023 that was announced recently have

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<v Speaker 2>one particularly good news for the smes, which is the

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<v Speaker 2>lowering of the preferential corporate income tax rate paid by

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<v Speaker 2>smes earlier, they were paying 17% against the standard corporate

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<v Speaker 2>tax rate of 24%. But in budget 2023, it was

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<v Speaker 2>proposed for that income tax rate to be lowered to 15%.

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<v Speaker 1>Here's what we've discussed so far with three political coalitions

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<v Speaker 1>vying for votes Malaysia's 15th, general elections on November 19

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<v Speaker 1>are likely to be closely fought cost of living issues

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<v Speaker 1>are the top of the minds of many voters and

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<v Speaker 1>sorting out the economy will be a key priority for

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<v Speaker 1>the incoming government

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<v Speaker 1>businesses are calling for more support to stay competitive, particularly

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<v Speaker 1>given a worsening labor crunch in the country. So we

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<v Speaker 1>heard earlier that call from a business owner to reset

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<v Speaker 1>the system so that it becomes more investor friendly. So

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<v Speaker 1>I mean, how do you think that Malaysia can boost

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<v Speaker 1>its value proposition to investors?

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<v Speaker 2>We need to have the kind of long term narrative

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<v Speaker 2>as far as where the economy is heading. I think

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<v Speaker 2>that's lacking over the last few years and for that matter,

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<v Speaker 2>perhaps not very clear after G14, the last general election

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<v Speaker 2>because we have too much politicking, it's not so much

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<v Speaker 2>policy making

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<v Speaker 2>that create a bit of uncertainty clouding the long term

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<v Speaker 2>outlook for the economy. So I think that is something

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<v Speaker 2>that needs to be done going forward to have that

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<v Speaker 2>kind of narrative. Of course it will come along with

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<v Speaker 2>a lot of reforms

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<v Speaker 2>structuring it will be tied to stuff like fiscal consolidation

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<v Speaker 2>because I think one thing that can happen when you

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<v Speaker 2>have fiscal consolidation is that the government perhaps can afford

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<v Speaker 2>to lower corporate income tax rates to attract F. D. I. S.

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<v Speaker 2>To boost domestic investment

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<v Speaker 2>because it is really a competition, a beauty contest among

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<v Speaker 2>regional economies. We have seen over the past few years,

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<v Speaker 2>some of the Asean economies like Indonesia and Philippines taking

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<v Speaker 2>steps to lower the corporate income tax rate, I believe

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<v Speaker 2>right now, our corporate income tax rate is among the

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<v Speaker 2>highest in Asean,

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<v Speaker 2>I'm not mistaken at 24%. So I think those are

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<v Speaker 2>among the things that need to be addressed. We really

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<v Speaker 2>really need to address the issue of human capital development,

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<v Speaker 2>especially the talent and skill workforce because the good thing

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<v Speaker 2>that's going on for Malaysia right now, FBI is not bad.

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<v Speaker 2>It's coming in,

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<v Speaker 2>we do benefit from, for example, the geopolitical race, the

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<v Speaker 2>geo economic tensions between us and china, for example, since 2018,

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<v Speaker 2>because of the US china trade war and now expanding

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<v Speaker 2>into tech war, we do see benefits to Malaysia

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<v Speaker 2>in terms of the relocation FBI to resilience in supply chain.

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<v Speaker 2>But from my conversation with companies in the electronics sectors,

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<v Speaker 2>the issue is skilled workforce and talent. So these are

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<v Speaker 2>the kind of things that we need to see.

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<v Speaker 2>One of the key things that Malaysia really needs to

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<v Speaker 2>reform is how does it regulates the foreign labor sector?

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<v Speaker 2>As most of us are where Malaysia has two million

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<v Speaker 2>of legalized foreign workers and maybe about two or even

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<v Speaker 2>three million of illegal foreign workers, which we are unsure

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<v Speaker 2>because of the nature of undocumented labor. So the thing

0:12:56.400 --> 0:12:59.470
<v Speaker 2>is Malaysia needs to be able to move away from

0:12:59.470 --> 0:13:01.800
<v Speaker 2>the low productivity that has been taking Malaysia for the

0:13:01.800 --> 0:13:03.620
<v Speaker 2>last 20 years or even longer.

0:13:03.635 --> 0:13:06.035
<v Speaker 2>And because of the influx of foreign labor, you do

0:13:06.035 --> 0:13:09.365
<v Speaker 2>have trends West Ministry in the manufacturing sector, the wages

0:13:09.365 --> 0:13:13.185
<v Speaker 2>for the local Malaysians are depressed right Because they're competing

0:13:13.184 --> 0:13:16.745
<v Speaker 2>with people from Indonesia Bangladesh and Malaysia needs to lean

0:13:16.745 --> 0:13:20.324
<v Speaker 2>off its reliance of cheap foreign labor or basically just

0:13:20.335 --> 0:13:24.824
<v Speaker 2>massive foreign labor in order to increase the productivity output

0:13:24.825 --> 0:13:27.385
<v Speaker 2>for each of its Malaysian workers rather than increasing just

0:13:27.385 --> 0:13:28.804
<v Speaker 2>the number of workers per se.

0:13:29.210 --> 0:13:32.390
<v Speaker 2>And now, because post pandemic, many of the foreign workers

0:13:32.400 --> 0:13:35.390
<v Speaker 2>has not returned back to pre pandemic levels. Therefore, especially

0:13:35.390 --> 0:13:38.900
<v Speaker 2>labor incentive sectors like smes in the food and beverage

0:13:38.900 --> 0:13:42.490
<v Speaker 2>sector or even manufacturing are facing a very serious labor shortfall.

0:13:42.490 --> 0:13:44.329
<v Speaker 2>So I would say that this is maybe a timely

0:13:44.330 --> 0:13:48.240
<v Speaker 2>opportunity for Malaysia to considering moving its economy towards less

0:13:48.250 --> 0:13:49.820
<v Speaker 2>being dependent on manpower by

0:13:49.835 --> 0:13:51.295
<v Speaker 2>towards greater productivity.

0:13:51.304 --> 0:13:53.945
<v Speaker 1>It's not all bad news. What bright spots do you

0:13:53.945 --> 0:13:55.105
<v Speaker 1>see in the economy?

0:13:55.115 --> 0:13:58.975
<v Speaker 2>One is we expect the tail winds from full economic

0:13:58.985 --> 0:14:02.385
<v Speaker 2>opening this year rolling into next year, which also include

0:14:02.385 --> 0:14:06.235
<v Speaker 2>the opening of the country's international borders. That is leading

0:14:06.235 --> 0:14:10.445
<v Speaker 2>to the revival of tourism sector. Of course not complete recovery,

0:14:10.640 --> 0:14:14.030
<v Speaker 2>gradual slow process to return to the pre covid 19

0:14:14.030 --> 0:14:17.520
<v Speaker 2>levels in terms of international tourist arrivals. But when you

0:14:17.520 --> 0:14:21.720
<v Speaker 2>have recovery and tourism sector, it will also lift tourism

0:14:21.720 --> 0:14:26.150
<v Speaker 2>related industries like F and B. Accommodation, transport, especial

0:14:26.175 --> 0:14:30.955
<v Speaker 2>aviation, recreation and entertainment whose real GDP right now are

0:14:30.955 --> 0:14:33.735
<v Speaker 2>still below the pre covid level because they were the

0:14:33.735 --> 0:14:37.735
<v Speaker 2>others hit during the pandemic and currently still lagging in recovery.

0:14:37.735 --> 0:14:40.745
<v Speaker 2>So I think that's one area of bright sparks in

0:14:40.745 --> 0:14:41.710
<v Speaker 2>the economy

0:14:42.050 --> 0:14:47.150
<v Speaker 2>secondly, as I mentioned earlier about Malaysia benefiting from FBI.

0:14:47.160 --> 0:14:53.000
<v Speaker 2>There's encouraging signal for FBI outlook. Taking cue from 2021

0:14:53.010 --> 0:14:57.260
<v Speaker 2>there was this 200 plus percent third in approved FBI

0:14:57.270 --> 0:15:00.610
<v Speaker 2>to a record value of over 200 billion after the

0:15:00.610 --> 0:15:04.650
<v Speaker 2>pandemic trigger decline in 2020. And the momentum actually continued

0:15:04.660 --> 0:15:07.870
<v Speaker 2>into the first half of this year, where the approved

0:15:07.880 --> 0:15:10.760
<v Speaker 2>FBI amount of 87 billion

0:15:11.210 --> 0:15:13.160
<v Speaker 2>just for the first six months of this year is

0:15:13.160 --> 0:15:18.680
<v Speaker 2>higher than the historical pre 2021 annual or fully approved

0:15:18.680 --> 0:15:23.540
<v Speaker 2>FBI value. So it shows sustained momentum of strong approved

0:15:23.540 --> 0:15:27.630
<v Speaker 2>FBI since last year. So we have this positive outlook

0:15:27.630 --> 0:15:30.230
<v Speaker 2>in terms of realized FBI because of the search and

0:15:30.230 --> 0:15:31.330
<v Speaker 2>the proof of the other.

0:15:31.710 --> 0:15:36.610
<v Speaker 2>We believe this reflects the situation where Malaysia is benefiting

0:15:36.620 --> 0:15:41.080
<v Speaker 2>from relocation FBI for supply chain resilience and security in

0:15:41.080 --> 0:15:43.800
<v Speaker 2>the wake of the geopolitical and geo economic risk I

0:15:43.800 --> 0:15:49.500
<v Speaker 2>mentioned earlier. And unsurprisingly, the bulk of the approved FBI

0:15:49.510 --> 0:15:51.930
<v Speaker 2>in tech related sectors

0:15:52.170 --> 0:15:57.090
<v Speaker 2>where over half of the total approved FBI last year

0:15:57.100 --> 0:16:00.910
<v Speaker 2>and first half of this year, were in electronic sectors.

0:16:00.920 --> 0:16:05.340
<v Speaker 2>And there's another, I think 16% of the total in

0:16:05.340 --> 0:16:08.250
<v Speaker 2>the telco sector and when I dig deeper, it is

0:16:08.260 --> 0:16:13.220
<v Speaker 2>largely approved FBI in data centers because bright sparks in

0:16:13.220 --> 0:16:15.760
<v Speaker 2>Malaysia economy is that Malaysia inflation is actually one of

0:16:15.760 --> 0:16:18.369
<v Speaker 2>the lowest in the asean region effect, if not maybe

0:16:18.370 --> 0:16:18.720
<v Speaker 2>even in the

0:16:18.731 --> 0:16:23.421
<v Speaker 2>Asia pacific the East AsIA pacific region. So the low

0:16:23.421 --> 0:16:26.601
<v Speaker 2>inflation is providing a lot more kind of stability, especially

0:16:26.601 --> 0:16:29.021
<v Speaker 2>in terms of cost of living issues. But of course,

0:16:29.031 --> 0:16:33.201
<v Speaker 2>all these are contingent about continued government subsidies and also

0:16:33.201 --> 0:16:36.311
<v Speaker 2>price control, which we may not be certain that it

0:16:36.311 --> 0:16:39.201
<v Speaker 2>will definitely be continued under the new government post election.

0:16:39.211 --> 0:16:41.620
<v Speaker 2>The other bright sparks of the economy is also that

0:16:41.620 --> 0:16:44.760
<v Speaker 2>comedy prices. I mean, of course, there's been some of

0:16:44.760 --> 0:16:45.280
<v Speaker 2>the decline

0:16:45.290 --> 0:16:47.300
<v Speaker 2>commodity prices in the first half of this year, but

0:16:47.300 --> 0:16:50.340
<v Speaker 2>compared to pre pandemic commodity prices are still much higher

0:16:50.340 --> 0:16:53.640
<v Speaker 2>compared to 2019 or 2018, for example, palm oil prices,

0:16:53.640 --> 0:16:57.980
<v Speaker 2>petroleum prices. The Malaysian government budget estimates is based on

0:16:57.990 --> 0:17:03.010
<v Speaker 2>$90 per gallon for crude oil. So definitely with high

0:17:03.020 --> 0:17:06.390
<v Speaker 2>commodity prices, Malaysia economy is going to benefit because it

0:17:06.390 --> 0:17:09.590
<v Speaker 2>is ultimately a net fuel exporter and also exports a

0:17:09.600 --> 0:17:11.840
<v Speaker 2>lot of the pump oil. But will say that this

0:17:11.850 --> 0:17:15.100
<v Speaker 2>Resource export has been driving the Malaysia growth for the

0:17:15.100 --> 0:17:17.170
<v Speaker 2>last 30 years. And we have seen during COVID, when

0:17:17.170 --> 0:17:19.470
<v Speaker 2>you have a sharp drop in commodity prices, how badly

0:17:19.470 --> 0:17:21.530
<v Speaker 2>your markets can be affected. So you might be doing

0:17:21.530 --> 0:17:23.450
<v Speaker 2>in Malaysia's favor for now, but we can't take for

0:17:23.450 --> 0:17:25.560
<v Speaker 2>certain case in 3-5 years.

0:17:25.570 --> 0:17:28.310
<v Speaker 1>And what are some opportunities investors should be looking out

0:17:28.310 --> 0:17:28.840
<v Speaker 1>for

0:17:28.850 --> 0:17:34.050
<v Speaker 2>in view of the macro challenges from your political tensions,

0:17:34.050 --> 0:17:38.250
<v Speaker 2>high inflation, high interest rates, environment recessions that

0:17:38.590 --> 0:17:42.369
<v Speaker 2>raised globally as well as I suppose some overhang on

0:17:42.380 --> 0:17:46.900
<v Speaker 2>domestic politics pending the outcome of the general elections. Our

0:17:46.900 --> 0:17:52.250
<v Speaker 2>equity research team, basically advocating to maintain a balanced growth

0:17:52.250 --> 0:17:56.750
<v Speaker 2>value portfolio positioning that is overlaid with E. S. G.

0:17:56.750 --> 0:18:02.200
<v Speaker 2>And yield themes assuming budget 2023 will be eventually passed

0:18:02.210 --> 0:18:04.959
<v Speaker 2>after the election without me,

0:18:04.970 --> 0:18:09.159
<v Speaker 2>minimal changes. It will be good for three particular sectors.

0:18:09.160 --> 0:18:12.280
<v Speaker 2>The measures like income tax cuts for the middle income

0:18:12.290 --> 0:18:17.680
<v Speaker 2>taxpayers and the continued tax handouts for lower income households

0:18:17.690 --> 0:18:21.820
<v Speaker 2>will be positive for consumer staples. Talk the technology and

0:18:21.820 --> 0:18:26.310
<v Speaker 2>renewable energy sectors we think will benefit from the supportive

0:18:26.320 --> 0:18:29.830
<v Speaker 2>tax and investment incentives and at the same time the

0:18:29.840 --> 0:18:31.530
<v Speaker 2>additional exemption

0:18:31.630 --> 0:18:37.250
<v Speaker 2>and incentives for accelerating electric vehicle adoptions and development of

0:18:37.250 --> 0:18:41.920
<v Speaker 2>national charging infrastructure is favorable for automotive sectors.

0:18:41.930 --> 0:18:45.189
<v Speaker 1>So it all adds up to a daunting in trade

0:18:45.190 --> 0:18:48.209
<v Speaker 1>for Malaysia's next government as the clock ticks down to

0:18:48.210 --> 0:18:52.400
<v Speaker 1>the November 19 election. After the politicking of the past

0:18:52.400 --> 0:18:55.439
<v Speaker 1>few years. Many voters are hoping that the outcome of

0:18:55.440 --> 0:18:58.090
<v Speaker 1>these elections will be a stable government.

0:18:58.580 --> 0:19:01.540
<v Speaker 1>So having that long term certainty could help Malaysia live

0:19:01.540 --> 0:19:03.890
<v Speaker 1>up to its economic growth potential

0:19:04.600 --> 0:19:08.070
<v Speaker 1>with foreign direct investment growth slowing down. That could also

0:19:08.070 --> 0:19:12.040
<v Speaker 1>help Malaysia compete with other up and coming asian economies.

0:19:12.570 --> 0:19:14.600
<v Speaker 1>It could also be a good time for a reset

0:19:14.600 --> 0:19:17.770
<v Speaker 1>to the country's labor ecosystem so that it can turn

0:19:17.770 --> 0:19:22.220
<v Speaker 1>out better skills and more productive workers. Finally, investors can

0:19:22.220 --> 0:19:26.290
<v Speaker 1>expect some bright spots from post pandemic opening from commodity

0:19:26.290 --> 0:19:29.250
<v Speaker 1>prices and the renewable energy sector.

0:19:29.840 --> 0:19:32.190
<v Speaker 1>Those are the five things you need to know about

0:19:32.190 --> 0:19:35.750
<v Speaker 1>the Malaysian elections and the economy. My thanks to my

0:19:35.750 --> 0:19:40.659
<v Speaker 1>guest today, Amelia's chief economist at Maybank Investment Banking Group,

0:19:40.670 --> 0:19:44.060
<v Speaker 1>Kevin Tang, senior research officer at the I. C. S.

0:19:44.070 --> 0:19:49.090
<v Speaker 1>Use of institute and ceo of click to Malaysia

0:19:49.910 --> 0:19:53.440
<v Speaker 1>money mind as every saturday at 10:30 p.m. On mediacorp

0:19:53.440 --> 0:19:56.260
<v Speaker 1>c n a. You can also catch us online at

0:19:56.260 --> 0:19:58.640
<v Speaker 1>CNN dot asia on youtube.