This article first appeared in The Edge Malaysia Weekly on February 27, 2023 - March 5, 2023
Attention will be on the Dewan Rakyat this week, as members of parliament debate the revised Budget 2023, following its tabling by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim last Friday.
MPs will discuss the various budget measures and the unveiling of details of those measures, which include assistance to targeted groups, individual income tax cuts coupled with a new tax regime to help Malaysians address the high cost of living, as well as increase the momentum of the economic recovery.
The local economy is expected to see growth at a moderate pace of 4.5% this year, down from 8.7% in 2022.
The economic calendar this week will see the February preliminary Markit Manufacturing Purchasing Managers’ Index (PMI) for Malaysia release on March 1, along with other countries in the region such as Taiwan, Vietnam, Indonesia, Thailand and the Philippines.
Across the Causeway, Singapore’s parliament will remain in session to continue discussion on their own 2023 budget, which was announced on Feb 14. Singapore is expecting its gross domestic product to grow at a range of 0.5% to 2.5% in 2023.
Singapore’s national budget is focused on building the capabilities of Singaporeans and seizing new opportunities amid heightened global uncertainty.
Singapore is set to release its January money supply and January unemployment rate on Feb 28. The Markit Singapore PMI will be released on March 3.
There are no major central bank monetary policy decisions in Asia-Pacific this week, except for the Central Bank of Sri Lanka on March 2.
Other key Asia-Pacific economic data will include 4Q2022 GDP growth for India on Feb 28 and Australia on March 1. Bloomberg estimates that India will chart 4Q GDP growth of 4.6% year on year (y-o-y) and a full-year 2022 growth of 6.8%. For Australia, Bloomberg forecasts a 2.7% y-o-y growth for 4Q2022, while UOB Global Economics and Markets Research expects a 3.8% growth for the full-year 2022.
Elsewhere, Vietnam will release its February trade data and other key monthly economic variables on Feb 28, while South Korea is set to unveil its February trade on March 1 and industrial production data for January the following day. Both Indonesia and Australia are slated to release their inflation data on March 1.
In China, the official February manufacturing and non-manufacturing PMI is scheduled to be released on March 1, along with Caixin China manufacturing surveys.
In the developed economies, the US will see several economic data announcements this week, but no announcements from the US Federal Reserve. The data includes durable goods orders and advance goods trade balance for January, Conference Board consumer confidence for February, construction spending, ISM manufacturing index and initial jobless claims.
A total of 921 US firms will report their earnings this week, of which 29 are S&P 500-listed firms and focus may be on big-box retailers, says UOB in its weekly outlook report last Friday.
The key data in Europe will be the preliminary February Consumer Price Index and January Producer Price Index for the eurozone on March 2 and March 3 respectively, while Japan’s January retail sales and industrial production data will be unveiled on Tuesday.
In the courts, the Kuala Lumpur High Court has fixed March 3 to deliver its decision on whether to call Datuk Seri Najib Razak to enter his defence or to acquit the former premier in the 1Malaysia Development Bhd (1MDB) audit report tampering case. Trial judge Mohamed Zaini Mazlan had initially fixed Jan 30 to deliver his decision.
Najib is charged with abuse of power as a public officer in his capacity as the then prime minister and finance minister in altering the 1MDB audit report which was to be tabled to the Public Accounts Committee in 2016.
Among the information removed was fugitive financier Low Taek Jho’s presence at 1MDB board meetings and portions of 1MDB’s 2014 financial statements.
Former 1MDB president and CEO Arul Kanda Kandasamy is charged with abetting Najib. Mohamed Zaini will also make his ruling on Arul Kanda’s indemnity.
There is also the continued hearing of Najib’s review of his SRC International Sdn Bhd conviction and 12-year jail sentence at the Federal Court on Monday and Tuesday.
On March 1, the Sessions Court will hear the defence’s application to obtain WhatsApp conversations between two businessmen involving an alleged payment of RM2 million to former Penang chief minister Lim Guan Eng.
The two businessmen are G Gnanaraja and Consortium Zenith Construction Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli.
On the local corporate front, the 4Q results season comes to an end on Tuesday, with companies including Malaysia Airports Holdings Bhd, IHH Healthcare Bhd, IOI Corp Bhd, FGV Holdings Bhd, Senheng New Retail Bhd and Velesto Energy Bhd due to report their latest quarterly earnings.
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