On May 10, 2018, Malaysians, and the rest of the world at large woke to the dawn of a new country. The 14th General Election (GE14) was an unexpected development for many Malaysians, but one that will inevitably provide many new opportunities which Malaysians and the world will stand to benefit from.
After a peaceful transition of power from the Barisan Nasional (BN) coalition to the Pakatan Harapan (PH - Coalition of Hope), major efforts are underway to reexamine the potential development opportunities for Malaysia, under the guidance of the Council of Elders. The council includes prominent figures from within the government, business, and economic and political industries, who have been tasked with the responsibility of reviewing the current state of business, educational, and government institutions, and will provide recommendations on enhancements to improve the economy as a whole.
There is no question that this resurgence of economic focus will be felt across the financial markets.
The Malaysian banking system is resilient; fuel subsidies have been reinstated (which could offset potential budgetary gains from rising oil and commodity prices); the goods and services tax (GST) has been scrapped and will change to sales & service tax (SST) in September 2018; there is a renewed focus on global trade; the projected forecast reflects continued financial growth.
Many business opportunities lie ahead, specifically in the following sectors:
- Consumer products: the cancellation of GST may positively spur consumer spending
- Trading/services: positive for exporters with lower Ringgit, higher USD, and Ringgit stability
- Oil & Gas: a possible upward trend with experienced leadership guidance and global oil prices showing an uptrend
- Industrial: a possible upward trend with positive policies expected, reduced corruption and new investments
- Plantation: a possible upward trend with positive development for plantation industry and increased demand led by policymakers
- Construction: mega projects may be reviewed, in turn, impacting existing/incoming contracts
BDP and its customers should benefit from long-term growth in Malaysia, with a more open market and transparent, FDI friendly policies, which will be introduced by the new government soon. The potential business growth and new opportunities for BDP and our customers are within consumer, oil & gas, petrochemical & chemicals, manufacturing industries & plantation - especially on palm oil & oleochemical related industry sectors. Our teams are prepared to meet the growing needs of the Malaysian market and the needs of our customers who will be investing in the fruitful opportunities that lie ahead in Malaysia.
Malaysia is on the move, and BDP is right there with it!