MGM 4136 Prepared by Puan Hamimah Hassan

 Asia Financial Crisis  Global Financial crisis , STARTED FROM THE US AND SPREAD GLOBALLY  Global Economic Crisis

 1. Greece Factor  2. Oil Prices  3. China economy; Devalued of Yuan  4. USA;

 Reduce in Petronas Revenue  1MDB  GST –  Declining of Ringgit

International Reserves of Bank Negara Malaysia as at 28 August 2015 The international reserves of Bank Negara Malaysia amounted to RM357.7 billion (equivalent to USD94.7 billion) as at 28 August The reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time the short-term external debt [1

 The FBM KLCI declined 6.5 points or 0.4% as the ringgit depreciated ahead of Bank Negara Malaysia's announcement today on its international reserves.(4 SEPT) KLSE

 2014: 6%  2015: 5 % (EXPECTED) MALAYSA : GDP GROWTH

 2015 : has been reduced negative 6.7 % in a 2009, to 3.2 peratus

 ADEQUATE CAPITALISED  HIGH LIQUIDITY BANKING SECTOR

 Fitch Ratings,  Moody's,  Standard & Poor's dan  Tabung Kewangan Antarabangsa (IMF

 12TH FROM 60 COUNTRIES

Economic stimulus package Khazanah to invest RM6.77b in projects to boost economy- As announced in 14 sept 2015

 1) Desaru Coast Destination Resort, an integrated leisure and tourism resort in Desaru, Johor, with a development cost of approximately RM4.5bil between now and 2017 to 2022; 2) A new Tourism Venture Fund of RM50mil for qualified tourism entrepreneurs in the sub sectors of eco-tourism and cultural/heritage tourism; 3) New hospitals and extension of existing hospitals under IHH Healthcare Bhd costing approximately RM670mil between 2015 and 2017 in Medini, Iskandar; Kuala Lumpur, Klang, Melaka, and Kota Kinabalu;

 4) A new in-patient rehabilitation hospital business with investment totalling approximately RM100mil over the next two years until 2017, together with a foreign technical operator and equity partner to bring in global best practices; 5) Development of Dataran Muzium and Tugu Park at an estimated development cost of RM1.1bil between 2016 and 2018 to 2020, with Khazanah funding approximately RM730mil of the cost. The projects are a not-for-profit contribution to public spaces and are expected to be completed between 2018 and 2020;

 6) In the Creative Industries, the set-up of Sonneratia Capital, a RM50mil co-investments fund to finance production of local content for the export markets. Sonneratia Capital expects to see the release of the films in various regional markets starting from the end of 2015; 7) In Iskandar Malaysia, i2M Sdn Bhd, a 100% subsidiary of Khazanah, will accelerate an investment of RM90mil to attract a targeted RM2.2bil of additional foreign investment by 2020 in the BPO sector;

 8) An additional RM115mil for the domestic innovation and technology sector across several initiatives including the creation of physical innovation and accelerator space; startup bootcamps; angel matching co-investments in early-stage companies; and seed-stage venture capital funding for the Information Technology (IT) and non-IT sectors, respectively; and 9) In line with the Government’s call to increase the Skim Latihan 1Malaysia (SL1M) programme allocation from 10,000 to 15,000 participants in 2015 (from the overall SL1M programme total of 4,500 participants in 2014), Khazanah is committed to more than double its existing commitment from 1,330 to 3,800 participants, at an estimated total cost of RM95mil per annum.

 The Prime Minister also announced that  A) the government investment arm ValueCap, will be increased  B) the Government would increase the number of fair price shops such as  the 1Malaysia People's Shop (KR1M), 1Malaysia Textile Shop,  1Malaysia Book Shop  as well as the eateries offering the 1Malaysia Menu.

 A RM20bil package to support undervalued stocks through ValueCap sent the local bourse 36 points or 2.25% higher to 1,639.63, thanks to strong buying from local funds.

 Malaysia’s stock market rallied on Monday, with the FBM KLCI surging more than 36 points, as investors reacted positively to the government’s economic measures.  E.g Tenaga Nasional was the top mover among the KLCI stocks, up 74 sen to RM11.96 and boosting the 30-stock index up 7.19 points. Genting Malaysia gained 21 sen to RM4.40.

 Prime Minister Datuk Seri Najib Tun Razak on Monday announced proactive measures to boost the economy, including encouraging government-linked companies and government-linked investment companies, as well as private firms, to repatriate their profits back to the country to invest in high- multiplier local projects.

 TH said existing inititives include the RM200 million RIA Fund launched on April 2 to spur bumiputra small and medium enterprises' (SMEs) development, for which loans worth RM60.5 million have been approved as of July 31. TH will also invest in integrated livestock rearing to reduce the country's imports and has approved allocations to enable it to take in 700 people under the 1Malaysia Training Programme.