OSADI Commercial Supplies Sdn Bhd’s Post

📢 June 2024 Monthly Roundup: Key updates and insights from Osadi. ✅ Diesel prices in Peninsular Malaysia increased by RM1.20 per litre as part of the government's subsidy rationalization plan. ✅ Economists maintain a calm outlook on inflation, with minimal direct impact on CPI but potential indirect effects. ✅ The move aims to save approximately RM4 billion annually, enhancing fiscal efficiency. #InsightMonthlyRoundup #Osadi #EthicalRecruitment #ResponsibleBusiness #ManpowerSolutions #ManpowerSupply #ManpowerAgency #ManpowerConsultancy

Malaysia's #RON95 Petrol Subsidy Rationalisation The Malaysian government is planning to cut subsidies on RON95 petrol. This is expected to happen sometime in the last quarter (Q4) of 2024, possibly coinciding with the announcement of the 2025 Budget on October 11th. • Govt Budget : #Impact Saves money ~ Every 10 sen increase saves RM2.5 billion per year. • Implementation Timeline: #Impact Affects savings and price increase ~ Earlier implementation leads to smaller price increases to achieve same savings target (e.g. July 1 vs. Oct 1). • Household Purchasing Power: #Impact Reduces purchasing power ~ RON95 gasoline has a wider impact on CPI compared to diesel (5.5% vs 0.02%). • Inflation: #Impact Increases #inflation ~ Every 10% increase in RON95 price increases inflation by 0.5%. • Govt Measures: #Impact May offer cash assistance ~ Cash aid might be offered to low-income groups to mitigate inflation impact. • Ringgit Exchange Rate: #Impact May strengthen ~ Fiscal consolidation and stable interest rates could strengthen Ringgit to 4.60 by year-end. • Stock Market: #Impact Limited impact expected ~ Diesel rationalisation had minimal impact, so RON95 impact may be small, especially for transport-related stocks. Overall, the RON95 petrol subsidy rationalisation is expected to save the government money but may also lead to inflation and higher costs for consumers.

The government’s plan to implement targeted subsidies for RON95 petrol by mid-2025 is expected to push inflation higher, with Allianz forecasting Malaysia’s inflation to reach 2.9% in 2025, up from its estimated 2.3% in 2024.

While March’s headline inflation of 1.8% year-on-year (y-o-y) came in slightly lower than consensus expectations of 2%, economists are maintaining their projection that Malaysia's headline inflation will progressively accelerate towards the end of the year on account of the government's fuel subsidy rationalisation plan, utility tariff hikes, and its recent adjustments of the service tax.

News Highlights - October 8, 2024 Zardari, Nawaz woo Fazl on amendments https://lnkd.in/dttx-GJ7 $3.2bn foreign loans pledges secured https://lnkd.in/dxHPiuHx Working group to be formed to project country’s stance globally https://lnkd.in/dWjrTc_T CPEC power projects: All set to ink $16bn debt re-profiling pacts during Li’s visit https://lnkd.in/d9Qr2kan SHC asks FBR to withdraw recovery notices issued to SOEs https://lnkd.in/dHU4uz34 SECP registers 2,617 new companies in September https://lnkd.in/dmjqy7SM New national housing policy on the cards https://lnkd.in/dk35Hr-M Ministry seeks proposals from REAP with a view to achieving export target https://lnkd.in/diMWsPRJ Telecom services deteriorate as CMOs meet KPIs partially https://lnkd.in/d4igp2hj SHC asks FBR to withdraw recovery notices issued to SOEs https://lnkd.in/dHU4uz34 Bidders demand full ownership as PIA privatisation nears https://lnkd.in/dmd_zS-2 Pak’s economic momentum builds in FY25: SCB https://lnkd.in/dSkwbdH9 Plan silent on debt restructuring: Pakistan unlikely to float bonds in global markets this year due to poor ratings https://lnkd.in/dNJDZAPq Oil prices extend gains on Mideast tensions, Wall Street retreats https://lnkd.in/dqujCEUH CCP green lights merger of security printing firms https://lnkd.in/dJppys5V Hubco likely to follow suit: Four IPPs ink deal to annul pacts early https://lnkd.in/dU8Yfkiz Exploration, uplift: PPL Asia reaches settlement with MdOC https://lnkd.in/dDCHZseb

Auckland's daily fuel prices have surpassed Regional Fuel Tax (RFT) levels. Introduced in 2018 to finance various transport projects, the RFT was eliminated on June 30, 2024. Proceeds were used to fund initiatives such as Mill Road, Penlink, cycle lanes, redlight cameras, speed humps, and the Eastern Busway. Despite an initial drop to $2.544 between July and October, fuel prices for unleaded 91 have since increased and now exceed those observed during the RFT period. Data from Card Smart's PriceWatch tool includes figures from the Mobil, BP, Caltex, Z Energy, Gull, Challenge, g.a.s., and Waitomo franchises. Following the decommissioning of the Marsden Point refinery in 2022, "100% of our refined fuel products come from overseas," according to former Minister of Energy Dr. Megan Woods. For the year ended September 2024, Stats NZ International Trade data indicates that 48.7% of domestic 'mineral fuels and oils' were imported from South Korea, 30.2% from Singapore, 7.2% from Malaysia, 6.1% from Japan, 3.6% from China, and 1.6% from Australia. On a trade-weighted basis, the New Zealand dollar has declined by -2% against these countries' currencies, increasing imported fuel costs. In addition, per The Business Times Singapore and Reuters, Q424 Korean refining margins were projected to rise. For shipping costs, S&P Global Market Intelligence notes that medium-range (MR) tanker freight rates experienced "pronounced upward pricing momentum" in November. Combined, increasing input costs for imported fuel and the weakening NZD, following dovish cuts by the Reserve Bank of New Zealand (RBNZ), have contributed to higher fuel prices. #macroeconomics #strategicinsights #businessintelligence

MPOA: Windfall Profit Levy Adjustment in Budget 2025 Falls Short 💼🌱 The Malaysian Palm Oil Association (MPOA) expressed disappointment over the slight increase in the windfall profit levy (WPL) thresholds announced in Budget 2025, stating it doesn’t alleviate the industry's financial strain. The MPOA had requested higher thresholds—RM4,000/metric tonne in Peninsular Malaysia and RM4,500 in Sabah and Sarawak—but the government raised them only by RM150. MPOA's CEO highlighted that WPL is triggered by revenue, not profit, further burdening producers amid rising operational costs. The association also called for better consultation on export duty revisions and urged longer tax incentives for automation to support investment in advanced technologies. Read more at: https://lnkd.in/g3dDCMhn #PalmOil #Budget2025 #WindfallProfitLevy #CPO #MPOA #Automation #Sustainability #Malaysia

The transition to targeted diesel subsidies in Malaysia is a strategic move aimed at enhancing fiscal efficiency. Economists project this change could save the government expenditure up to RM8 billion. These savings can be redirected other initiatives like cash assistance and improvements in education and health facilities. There is concern among the public, particularly consumer, about the non-subsidized diesel price at RM3.35 per liter, as this is expected to lead to high price of goods and services. Previously, the subsidized diesel price was RM2.15 per liter indicates a significant increase at 55.8% of diesel prices in Malaysia. However, SME Bank reports that inflation has could rise by 0.1%, indicating that the focused subsidy approach and gradual implementation have effectively contained inflationary pressures. The transition of subsidized to non-subsidized diesel prices could triggered a domino effect across various sectors, impacting costs even though the cash assistance is distributed. Given these potential economic impacts, how prepared is the government to support affected businesses and consumers? #subsidy #diesel #labour #market #euera #thefuture

In my latest column offering, I take a stab at how the Malaysian government has a habit of making big announcements that end up short on key details on implementation. It's not enough to just say why something needs to be done. People need to know who exactly will be affected and how it will be carried out. And maybe start talking to people first before deciding on something so big like the petrol subsidy cuts. https://lnkd.in/gEpK2Efr