What to Expect in 2014
Malaysian consumers, will be directly
affected by electricity price hikes.
4.
Economists warn Malaysians to brace
themselves for higher costs of living and
aggressive price hikes in 2014, as a result of
government measures to address a national
fiscal deficit.
1.
Budget 2014
The national budget for 2014 is
structured toward resolving Malaysia’s
growing debt problems. As announced
by Prime Minister Datuk Seri Najib
Tun Razak, the government will start
implementing drastic measures
to alleviate investor concerns and
promote economic growth and
transformation. “The Malaysian
economy must remain resilient in order
to lay the foundation for future growth
and prosperity,” he said.
Highlights of this year’s budget plans
include the allocation of RM578
million for the construction of lowcost flats consisting of almost 16,500
housing units. The National Housing
Department will facilitate the lowcost housing project. A proposal to
offer a special tax relief of RM2,000 to
taxpayers who earned up to RM 8,000
monthly in 2013.
2.
3.
Subsidies
A higher cost of living, brought about
by the ‘gradual restructuring’ of the
government’s subsidy programme,
is something that Malaysians should
ultimately prepare for. According to
CIMB chief economist Lee Heng Guie,
a cutback in fuel subsidies – along
with the abolition of sugar subsidies
– will result in likely price hikes. What
the government is able to save from
the restructuring program will be
reallocated – in cash – to development
projects.
Fuel Prices
Fuel prices will keep increasing
this year, again as a result of the
government’s subsidy rationalisation
program meant to address the fiscal
deficit. As petroleum products are
among the nation’s most heavily
subsidised, the restructuring of
subsidies is expected to trigger
constant fuel price hikes.
5.
Inflation
Inflation will spike by up to 2.8%
in 2014, parallel to rising prices
of consumer goods, according to
economists. The increase will mostly
impact alcoholic beverages and
tobacco goods.
6.
GDP Growth
The government is expecting the
national GDP growth to reach 5% to
5.5% per cent in 2014. Economists
gave a more modest figure in light of
Malaysia’s fiscal deficit burdens. They
project a GDP growth of roughly 4.5%
this year.
7.
Average Salary
Workers can relax a bit despite
projected price increases because the
average salary of Malaysian employees
is expected to increase 5.7% this year,
higher than the increase of 5.3% in
2013. The growth outlook for local
businesses also remains positive.
8.
Housing
More Malaysians will be able to
afford their own homes, thanks to
government housing programmes
aimed at the construction of lowcost housing units. For 2014, plans
to build an estimated 223,000 new
housing units have been set in motion,
carried out in cooperation with the
private sector. The National Housing
Department will be allocated RM578
million for building additional low-cost
flats.
3 Real Estate Resolutions for
2014
Every January, people around the world examine
the victories and foibles of the previous 12 months
and vow to make smarter choices