As usual, not all rosy in Budgets. Civil Servants the big winners

Malaysia’s record RM421 billion budget includes salary hikes for civil servants, expected to boost domestic consumption in key sectors like retail and hospitality. However, Kenanga Investment Bank cautioned that while increased wages could spur demand, they may also introduce inflationary pressures. The long-term success of the policy depends on balancing wage growth with fiscal sustainability. It notes that heightened consumer demand could contribute to inflation, especially as subsidy cuts for RON95 fuel and education come into play. Managing these risks will be essential for Malaysia’s economic stability moving forward.

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Civil servants winners

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