Budget 2016 - Recalibrated!



Prime Minister Datuk Seri Najib Tun Razak announced a recalibrated Budget 2016 to optimise the country's developmental and operational expenditures in the face of slower economic growth.

The budget included precautionary and proactive measures in managing national revenue and expenditures, while ensuring that the well-being of the people remained a priority.

Najib said the recalibration is necessary due to a slump in global oil prices and a slower economic growth in the United States and China. When Budget 2016 was unveiled last October, the crude oil price was at US$48 (RM203) per barrel. However, the current price per barrel stands at US$30 (RM127), a sharp fall since the Budget was presented.

Highlights.

- The 2016 global economy expected to be more challenging and economic growth expected to fall from 3.6% to 3.4%.
- Malaysia is not alone in facing global economic challenges. Current crude oil price stands at US$3o (RM127) per barrel.
- Latest developments indicate that the global economy is at a very volatile stage and requires a proactive move to revise Budget 2016.
- Malaysia is not in recession neither in a technical recession.

Eleven recalibrated measures announced.

1. EPF contributions by employees to be reduced by 3%. This is expected to increase private sector spending by RM8bil.
2. Tax relief of up to RM2,000 to those with income RM8,000 a month or lower. Two million taxpayers to benefit.
3. To reduce cost of living, the Government to liberalise APs for agricultural products including coffee beans and meats.
4. Domestic Trade, Cooperatives and Consumerism Ministry is to increase enforcement and action against unethical traders.
5. 30% of contributions to the human resource development (HRD) fund to be utilised for skills training, including those who are unemployed.
6. MyBeras programme to be introduced until Dec 2016. Each hard-core poor family will be given 20kg of rice every month.
7. The Government will update the management system of foreign workers, with levies clustered into two categories, not including foreign maids.
8. Government will exercise prudent spending on supplies and services and to continue with grant rationalisation.
9. Development budget to focus on projects and programmes that place the people first, have high multiplier effect and reduce imports.
10. Develop financial institutions and Government venture capital funds are to increase allocations by RM6bil for benefit of start-ups and SMEs.
11. GLCs are urged to implement initiatives to reduce the income gap between senior management and workers, to be monitored by the Economic Planning Unit.

Najib said that the recalibrated budget was based on the approach of "shared responsibility" by certain segments of society. Benefit measures such as the 1Malaysia People's Aid (BR1M) will continue and the present rate of the Goods and Services Tax (GST) will be remain at 6%.

Malaysia would not resort to imposing capital controls and pegging the Ringgit, such as was done during the 1997-1998 financial crisis.

"The Government remains committed to maintaining the fiscal consolidation measures for 2016, which is to achieve a GDP target of 3.1%. Our country's debt will be reduced and will not exceed 55% of the GDP."

/theSTAR 28-01-2016


Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

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Malaysia: Upbeat on Medical Device & TPPA



The export revenue of the medical device industry is expected to increase by double-digit percentage in 2016, in tandem with the projected growth of the Asean medical device market, which is expected to double to RM8bil by 2017 from RM4bil this year.

Malaysia External Trade Development Corp (Matrade) chief executive officer Datuk Dzulkifli Mahmud said that in 2015, the export revenue growth of the medical device market was expected to be around 15%. “From January to November 2015, the export of medical devices increased by 13.6% to RM14.1bil from RM13.5bil in 2014."

“Some 52% of the revenue came from the glove industry, while the non-glove segment contributed to the remainder. “The export of non-glove medical devices for the first 11 months of 2015 increased 16.6% to RM6.79bil."

“The products exported were medical instruments (RM1.5bil), disposable tubes for intravenous devices (RM1.4bil), and orthopaedic appliances (RM917mil)."

“The main export destinations for Malaysian medical device players include the United States, Germany, Japan, and Singapore,” he said.

Dzulkifli said the medical device industry was exploring for new markets in Turkey and Chile.

“Malaysia has signed 14 free trade agreements and the most recent one was with Turkey. In 2014, Turkey imported RM9.5bil and exported RM1.6bil worth of medical devices. Malaysia medical device export to Turkey in 2014 was valued at RM3.5bil.”
According to Dzulkifli, the Trans-Pacific Pact Agreement (TPPA) will expose the local medical device industry to a market size of over 800 million people.

“A TPPA market like Canada imports RM23.5bil of medical devices and exports RM7.2bil of medical devices,” he added.

Dzulkifli said the medical device in Asia Pacific is valued at around RM69.9bil in 2013, growing at a compounded annual growth rate of 9%.

Meanwhile, the Association of Malaysian Medical Industries (AMMI) supports the TPPA to provide wider access for ‘Made-in-Malaysia’ medical devices into TPPA countries, especially the US with whom Malaysia has no trade agreement.

/theSTAR 22-01-2016


Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

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IHH goes into Chengdu, China



IHH Healthcare Bhd will set up a 350-bed hospital in Chengdu, China after leasing a space in Perennial International Health and Medical Hub. This will be Chengdu’s first foreign tertiary hospital and IHH’s first hospital in Western China.


The hospital, which will be operated by its largest operating subsidiary Parkway Pantai, is scheduled to open in the second half of 2017.

The Hospital would provide specialised care and clinical services including obstetrics and gynaecology, paediatrics, cardiology, orthopaedics, ophthalmology and internal medicine.



IHH managing director & CEO Dr Tan See Leng said: “The development of a new tertiary hospital in Western China is a significant milestone for us, and leverages our decade of experience in operating medical centres in China."

Upon completion, ParkwayHealth Chengdu Hospital will serve a total population catchment of 148 million residents in the region, and reinforce IHH’s commitment to expand into Greater China.

IHH is a major foreign-owned private healthcare operator in China with10 medical centres in Shanghai, Beijing, Suzhou and Hong Kong. Its 500-bed Gleneagles Hong Kong Hospital is on track to open in early-2017.

IHH operates a global network of 49 hospitals across nine countries.

/theSTAR 15-01-2016

Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

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Malaysia: Dengue Vaccine - Needs more Answers



While a vaccine produced by Sanofi Pasteur has been the first in the world to be licensed for dengue prevention, Malaysia will continue to study its suitability for use in the country.


The Health Ministry is still poring over the data of the anti-dengue vaccine by the French-based company, as the dengue subtypes in its vaccine trials are different from Malaysia’s.
 
Director General of Health, Datuk Dr Noor Hisham Abdullah said they needed to study the research data carefully as the Ministry had more questions to be answered by the trial experts.
 
“We are engaging closely with them. I understand that the vaccine is least effective against serotype 2, therefore the Ministry is hesitant over its efficacy."
 
“Studies on the existing data will be continued until all questions and queries are answered.” 
 
Serotype 2, one of the four virus strains of dengue, can cause hae­morrhagic fever. It belongs to the South-East Asian geno­types.
 
On Wednesday, Sanofi Pasteur, the vaccines division of pharmaceutical giant Sanofi, announced that Mexican authorities had approved it to market the world’s first anti-dengue vaccine, Dengvaxia. 

/STAR 11-12-15


Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

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