☕️ Budget 2027 - same same but different

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Over 80% – According to Health Minister Dr Dzulkefly Ahmad, that large a segment of young Malaysians aged 18 to 29 who have diabetes or high blood pressure are unaware of their condition. The minister told the Dewan Rakyat that non-communicable diseases (NCDs) are increasingly striking the nation’s youth, but often go unnoticed as they usually show no symptoms in the early stages. In the 18-29 age bracket, an estimated 192,464 people have diabetes while 339,853 have hypertension, with over 80% of cases undiagnosed. This trend continues into the 30-39 demographic, in which 378,508 people have diabetes, of which 60% are undiagnosed, and 938,865 have hypertension, of which over 70% are undiagnosed. This has led the Health Minister to declare that Malaysia is facing an “NCD pandemic”. On a similar note, do you know you can be pre-diabetic which can develop into Type II diabetes?

42 – That’s the number of building fires across the country triggered by lightning strikes between Jan and Aug, according to the Fire and Rescue Department. The highest number of cases was recorded in Apr at 13, followed by Jul at 6, then Feb, May, Jun, and Aug with 5 each. The last 3 cases were recorded in Mar. The sharp spike in Apr aligns with the intermonsoon period between Mar and May. No cases were recorded in Jan, based on investigation statistics. Department Director-General Nor Hisham Mohammad advised property owners to ensure buildings are equipped with properly installed lightning arresters and surge protection to safely ground electrical discharges and prevent damage.

Came across this lightning detection app used in various industries:

Nearly 40% – That much of Malaysia’s 40,000 metric tonnes of daily solid waste consists of food waste, according to Housing and Local Government Minister Nga Kor Ming. To combat this, Nga said that a “whole-of-nation” approach is needed, in which all parties involved collectively change their attitudes and practices to avoid this kind of waste. On a side note, the minister is also confident that the ministry would achieve its target of exceeding a 40% recycling rate by the end of the year, thanks to initiatives such as the “Trash to Cash” recycling programme, the zero-waste community initiative that established 17 active zero-waste community centres, and a school-based recycling competition that involved 1,680 schools. Through these initiatives, a total of almost 13 mil kg of recyclable materials was collected.

3. IN MALAYSIA 🇲🇾

Budget 2027
You can call this the election budget, simply because election is next year. There are good, there are bad but just like pretty much every other year, it’s same same but different (non-tax expert opinion). One thing that is constant - expenditure > revenue - government spending more than it takes in. Putrajaya is expected to generate RM380.8 bil in 2027, a 4.7% increase compared to 2026, not by any new initiative but from better e-invoicing enforcement and increased PETRONAS dividends.

On the expenditure side, although PM Anwar Ibrahim mooted that they will spend RM510 bil next year, after subtracting the contribution from GLICs, public-private partnerships and statutory bodies, the actual government outlay is only RM459.8 bil, a 9.7% increase compared to last year. To make matters worse, 82% of the total budget is for operating expenditure (OPEX), which is for your cash handouts, expanded civil service/emoluments, retirement charges, debt service, and fuel/social subsidies as opposed to spending on development expenditure.

Some of the good stuff:

• The individual tax relief limit, which has not been reviewed since 2010, is increased from RM9,000 to RM12,000;

• Full stamp duty exemption for developers and buyers of abandoned housing projects from 2027 to 2030;

• Khazanah Nasional Bhd and InvestPenang to establish a RM100 mil fund for semiconductor and advanced manufacturing firms;

• TNB to invest RM15 bil to strengthen the national grid and ensure the continuity of the nation's electricity supply

• Starting in 2027, the government will publicly disclose explicit project details. This includes the names of successful contractors, exact contract values, approval processes, and overall project progress.

• Full service tax exemption on senior care fees of up to RM96,000 annually to ease the financial burden of relying on professional nursing care.

• The establishment of two new National Integrated Care Centres of Excellence (NICE) located in Penang and Sarawak. These facilities will serve as pillars for elderly care, professional training, and demographic research. Plus, more than RM40 mil to be channelled through HRD Corp to train 8,000 workers in elderly care.

• The government is actively drafting a Senior Citizens Bill specifically designed to tackle elderly neglect and provide a stronger legal framework to fortify the country's care ecosystem.

• To protect retirement adequacy, EPF members reaching ages 55 and 60 can opt for structured monthly withdrawals under the new i-Emas scheme, allowing their remaining pool of retirement savings to continue generating dividends.

Apart from taking care of the elderly, PM Anwar is also safeguarding our history for future generations. Banking on the success of the Sultan Abdul Samad Building’s restoration, Putrajaya will expand the ‘Warisan KL’ initiative by restoring early 20th-century railway landmarks, including the historic Kuala Lumpur Railway Station and the Keretapi Tanah Melayu Berhad (KTMB) Headquarters. RM400 mil is allocated for this initiative, and included in the budget is the provision to construct 22km of covered walkways linking the historic landmarks.

Overall, although Budget 2027 will continue the fiscal consolidation exercise of the country’s wallet, projected to decline further to 3.3% of GDP in 2027, towards the 3% goal by 2028 or 2030. Unfortunately, Budget 2027 did not address the political instability that will affect the country or reassure the rakyat that PM Anwar Ibrahim should get another five years. If BN and Perikatan Nasional return to power, it could derail the PKR president’s vision for the economy and country.

Too many things to cover - you can read highlights from The Edge here.

Shorts

1. JPJ to temporarily suspend Chery Omoda 5

   After the incident in Johor where the rear axle of a Chery Omoda 5 just cleanly snapped out of the car frame, as if the car may run on human legs like in The Flintstones, the Road Transport Department (JPJ) said that the model’s Vehicle Type Approval (VTA) certificates will be temporarily suspended until a technical investigation is conducted. This means that no new registrations of the car model can be done, and a recall must be carried out for all vehicles identified as being at risk for inspection and appropriate corrective action. The suspension will only be lifted once all corrective and preventive measures have been fully implemented. Resell value of Omoda 5 will take a big hit even if all is good - perception dictates value.

2. Which schools are closed on Monday

   Unfortunately, due to the haze, schools must be closed under the new guideline that states all schools in areas that record Air Pollutant Index (API) readings between 150 and 180 for prolonged periods. Thus, below is the list of districts that will be practising Home-Based Teaching and Learning (PdPR) today:

   1. Johor: All schools and educational institutions statewide will be closed from October 12 to 16.

   2. Selangor: Schools under the Hulu Langat, Gombak and Petaling Perdana district education offices (PPD).

   3. Kuala Lumpur/Putrajaya: Schools under the Bangsar/Pudu PPD.

4. AROUND THE WORLD 🌎

In West Asia

Riyadh international airport hit, 12 killed and hundreds injured
More attacks have hit Riyadh: On Saturday, Saudi Arabia confirmed that at least 12 people were killed, and more than 300 were wounded in an attack by Yemen’s Houthis on the King Khalid International Airport in the capital. The attack marked the third assault by the Houthis on the international airport this week. As a response, the Saudi-led coalition fighting in Yemen called the attack a “full-fledged war crime” and said the coalition would “respond decisively to this terrorist attack in accordance with the Customary International Humanitarian Law”. The attacks came as fighting intensified in Yemen, with forces loyal to the country’s internationally recognised government fighting the Iran-backed Houthis for control of the country. Trump described the attack as “terrible” and said he was evaluating whether the US should join the war against the Houthis.

Trump says US will not strike Iran before midterm elections
Meanwhile, Trump said that the US will not be attacking Iran at any time before the midterm elections to be held in the United States on Nov 3, adding that they are having a “productive discussion” with Tehran. Oil prices fell early on Friday as West Asia supply concerns eased after that, as the possibility of renewed fighting had appeared to drive the prices in trading on Thursday. Some analysts believe Trump’s comments were an attempt to try and bring prices back down. Hard to tell if Trump’s statements are ever true these days.

In the US

Pentagon confirms livestream of firing squad execution
US Defence Secretary Pete Hegseth has said that the public will be able to watch the firing squad execution of former US Army major Nidal Hasan, who was sentenced to the death penalty after he fatally shot 13 unarmed US soldiers at the Fort Hood military base in 2009. The execution, due to be carried out on Dec 3, is believed to be the first public execution in the US in almost a century. However, the decision to livestream the execution is said to be "unprecedented in the modern era" and "on uncertain legal terrain", and the UN human rights office said that it would be "tantamount to a public execution and would breach the absolute prohibition of torture". Despite that, Trump said he has “absolutely” approved of the livestream plan, but added that the Pentagon was still deciding on it. However, US Vice President JD Vance expressed uncertainty if it will ever happen and said that he would not be watching if it ever does.

US sanctions the International Criminal Court
The Trump administration has imposed sweeping sanctions on the International Criminal Court (ICC), only hours after former ICC judge Navi Pillay was awarded the 2026 Nobel Peace Prize for her efforts to promote peace and international law. The US has already sanctioned 17 of the ICC's judges and officials, but this move sanctions the court itself as an institution and is intended to collapse its ability to operate financially. All this because the US perceives the ICC as a “rogue” institution that is out to threaten American sovereignty. The ICC was founded in 2002 to prosecute war crimes, crimes against humanity and genocide, and counts 125 countries as member states. But several major countries remain outside the ICC, including the US, Russia, China, India and Israel. Guess who supports the sanctions wholeheartedly? Netanyahu, of course.

Shorts

1. Another episode of Anthropic AI gone rogue

   The Philadelphia Police Department has reported that an Anthropic AI agent went rogue and sent them a fake tip about an unsolved murder earlier this year. The tip came through a public website where people can share information on unsolved murders, and the AI agent had claimed to have seen "someone matching the description". However, the authorities have criticised Anthropic for taking more than two months to detect and report the breach and called for the tech company to strengthen its safeguards to prevent similar incidents.

2. ‘Naruto’ unveils new anime and manga
   Naruto fans are in for a treat - the long-running Naruto franchise has announced a new anime TV series that is a crossover of Naruto with the popular manga “NINKŪ”. The new series will be supervised by Naruto author Masashi Kishimoto and “NINKŪ” creator Koji Kiriyama himself. In addition to the new anime series, Kishimoto also announced a new upcoming Naruto manga entitled “Shadow Rising”.

   Watch the trailers for the anime here and for the new manga here.

3. Crazy Rich Asians is gonna be on TV

   The Crazy Rich Asians cast is set for a “family reunion” in a TV show continuation of the 2018 Crazy Rich Asians movie, featuring Constance Wu and Henry Golding as the lead roles. Four of the stars of the 2018 movie will be reprising their roles in the TV show, including Wu as Rachel, Golding as Nick and Ronny Chieng as Eddie, as well as our Malaysian Oscar winner Michelle Yeoh as Nick's mother Eleanor. The series, co-produced by HBO and Warner Bros Television, will start production next year.

5. FOR YOUR EYES 📺

1. Still seeing people jogging amidst this haze.

2. “Pergi haji, pergi umrah, balik sini makan rasuah” - former Deputy IGP Tan Sri Ayob Khan Mydin Pitchay. Makan rasuah vs makan khinzir - which is worse? Watch on.

3. Another masterpiece by Zunar. Even got a like from PMX’s IG account.

4. A good reflection to start the week. If your job involves explaining, guiding, teaching, instructing - this might just boost your patience a little.