Annual budget for the year 2009

The coming national budget for the year 2009 which will be presented on 29 August 2008 should be all under full attention. Which it will be the first budget tabled by Barisan Nasional federal government after the loss of 2/3 majority parliament seats on March 2008.

Topics to be taken as consideration:
1. National financial deficit
Prime minister has been focus on reducing the financial deficit since his appointment as the successor of Tun Mahathir to ensure the financial condition of the country is well enough for the development of economy. However, it is a big question on whether to focus on reducing deficit or to table a well benefiting Malaysian budget.

2. World crude oil price and nation petrol retail price
With the current down trend of world crude oil, it is now the best time for the government to consider a reduction on the nation petrol retail price to encounter the current stressful high inflation rate recorded for the two consecutive months upon the petrol price hike.

3. BN game plan after general election
Since losing 2/3 majority in the parliament house and hike on the petrol retail price, it is should be the right time for BN government to improve their reputation and supports amongst Malaysian before the independent day.

4. Historical inflation high
Consumer Price index has been in a high level for the last 2 months after the petrol retail price hike to RM2.70. With this trend keep on, it could mean that the burden of living cost for the general public will definitely going sky high.

5. Non-performing loan concern
Although the central bank has decided not to increase the interest rate after the lately meeting, all commercial banks have start to be extra caution on loan facility approval in order to ensure the crisis of Non-performing loans will be happened again.

6. Pressure on central bank for interest rate hike
Since the CPI and financing risk moving upward, central bank has been under pressure to increase the interest rate although governor was not agree with it but it should be the time for central bank to pass “the ball” to the ministry of finance.

1st august 2008

On this day, I found a bank transaction which has no source of fund stated coming into my account. Moreover, the amount of this transaction is just the same that the university should return back to me as caution money refund.

However, seniors have told us that those caution money and deposit will only be available in our account weeks after convocation held.

So if that is the caution money from the university, the remaining will be the convocation deposits that yet to refund. Once both done, the visit to Wisma MCA on October will have to be called off and cancelled.

Not raising the interest is just matter of time or there is a better option?

The market has put full attention on the decision of BNM whether to keep or raise the current rate which has been a hot topic for all financial press and magazines for the past few months. Speculation on BNM will be increase the rate has been ongoing when the governor and second finance minister have both refuse to say no to the said proposal of the market.

However, on the date of 25^th July , the final decision that everyone is waiting for are surprising where BNM final decision was to remain the current rate as for the coming near future as concern. Majority of the market has been a bit shocked with the decision of BNM whereas press report has suggest that numbers of commercial banks has revised their rates respectively before the decision and meeting of BNM.

Now the focus should be on what is the BNM solution in their mind to encounter the inflation effect from the hike of petrol price and the CPI drastically to the record high? I able recall a report that I came through before this which highlight that if say the BNM is not getting with the rate, would they put their hand and mind into the MYR? This could be a very interesting topic which could be look into and to study on the viability and the effect of such action.

At the moment, central bank decision on whether to take action on increase or decrease the rate and the strategy and policy on the forex has been the major concern and hot topic for the market.