Since the Government is asking for feedback on the Budget 2022 proposal, I would like to offer my comment and I trust the Government will take appropriate action.
On the first day after the Budget 2022 announcement, Bursa Malaysia took a beating. The FBM KLCI, which is a gauge of the 30 biggest companies on Bursa Malaysia, dipped by 2.2%. RM34bil of market capitalisation was wiped off from the stock market, 178 stocks went up, 996 stocks dropped with 327 unchanged.
The biggest culprit is the prosperity tax increase from 24% to 33% for companies whose annual profit exceeding Rm 100 million. All investors especially institutional and foreign investors can foresee that practically all the larger capitalised companies will report reduced profit next year.
Among all the stock selection criteria such as NTA, cashflow, debt or healthy balance sheet, EPS etc the most powerful catalyst to push up stock price is profit growth prospect. Investors will not buy any stock if the company reports reduced profit.
As a result, many larger capitalised companies have move away from Malaysia as follows:
Hyundai had closed its Asia Pacific regional headquarters in Malaysia and relocated to Indonesia, after splashing US$1.55 billion (RM6.26 billion) in a new factory there.
-IBM had closed down its Global Delivery Centre (GDC) in Cyberjaya and relocated to Singapore.
-Shell moved its IT operations from Cyberjaya to India.
-Citigroup exited retail banking in Malaysia, where Citi has been in for more than six decades and shifted to Singapore.
-German IT company T-Systems sold its business in Malaysia and quit the country.
-Toyota Motor Corp invested US$2 billion to develop EVs (electric vehicles) in Indonesia from 2019 until 2023 starting with hybrid vehicles.
-Tesla and SpaceX boss Elon Musk has agreed to explore investment opportunities in the electric car battery – and even space launch station – in Indonesia following a talk with President Joko “Jokowi” Widodo.
-Facebook, Lazada, Tencent, Byte Dance, Alibaba are some of the big names that have made Singapore as its regional hub, strategic location or data centre hub, leaving Malaysia behind.
-Indonesia, the Southeast Asia’s largest digital market, has attracted investments from four American tech giants – Google, Microsoft, Facebook and PayPal.
-Zoom Video Communications has chosen Singapore over Malaysia for their first R&D centre and new data centre in the region.
-Google and Facebook had bypassed Malaysia for the Apricot 12,000-km internet subsea cable project due to the unresolved cabotage policy because of “unknown “
reasons.
Malaysia must wake up and make the necessary changes. I trust the Government will take appropriate action.
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As shown on the chart below, Sendai has been dropping in the last few days. Today all shareholders must be wondering to sell, hold on or to buy some at a cheaper price.
Haha actually Indo already took over putrajaya with many so called Malay first Politicians can trace their root back to Indo and those found guilty in Malaysia can simply disappear back to Indonesia.
By another 10 years you will see many Malaysians working in Indo as cheap labor.
2021-11-22 16:15
OUR MARKET SO STRONG, GET READY FOR WINDOW DRESSING NEXT MONTH . ANALYST SAID 1650 YEAR END TARGET STILL INTACT.
2021-11-22 16:57
As long as those tribal chiefs in the govt continue to focus on Bangsa dan agama we are doomed and the sad part is, they are still at it. Now they also get annoyed when you speak to them in English.
2021-11-22 17:08
Trusting the gomen to take action is no different than trusting KYY stock recommendation
2021-11-23 09:49
This Mr. KYY can tahan this type of market? Or lose another 90%?
Its a matter of time before Mr. KYY becomes a pure blogger. Lol
2021-11-23 17:29
The govt has lost its strategy and way, where can they get the money they've thrown out last 2 years? They can only dig further from Malaysians. And we losing our competitiveness to Thailand, Indo, Viet, India, etc and soon our grandchildren will go to Bangladesh and Pakistan for job.
2021-11-23 18:11
SureWin1Woh
In future, we are the foreigners working for the Indon
2021-11-22 15:55