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Date
28 November 2020
Title Budget 2021 – Highlights for Malaysian individuals
Moderator Danny Chang
Executive Director
Head of Managed Investment and Investment Advisory
Standard Chartered Bank Malaysia
Speaker 1. Doreen Choo
Chief Investment Officer
Eastspring Investment Berhad
2. Lim Wai Yin
Executive Director, Corporate Tax Services
KPMG Tax Services Sdn Bhd
Key Takeaways
  1. 1. KPMG Tax Services summarised the tax relief benefits to Malaysian individual taxpayers during the webinar.
                   
  2. 2. Eastspring Investments pointed the Budget 2021 is the largest expenditure in Malaysian history. This is to combat the third wave of Covid and prop up growth; but may potentially strain on country’s deficit especially if tax collection in 2021 falls short. This could impact Malaysia’s A- sovereign rating, leading to potentially weaker MYR due to foreign funds outflow.
                   
  3. 3. In Malaysia, foreign participation in small-medium cap stocks are very low and less susceptible (than large caps) from foreign fund portfolio withdrawal. This is evident in the Eastspring Small Cap fund performance over 1/3/5 years; which are positive despite negative benchmark returns. Small-medium cap valuations are attractive, supported by stronger earnings growth.
                       
  4. 4. China’s recovery post Covid may contribute indirectly to Malaysian export growth. With fixed deposit expected to stay low in 2021 and Chinese onshore equities valuation more attractively valued than Malaysia large caps; we remain constructive. The China onshore equity fund managed by Affin Hwang China A Opportunities are focus on domestic oriented companies benefiting from local consumer spending that remains insulated from US trade war effects.

Budget 2021

Highlights for Malaysian individuals