Budget 2020 spelt out incentives cutting across various sectors of the economy, from health to infrastructure, and from digital payment systems to real estate.
Below we list some of the project and the listed companies which could potentially be involved.
> KLANG LOGISTICS CORRIDOR Government to spend RM8.3bil for the Serendah-Port Klang Rail Bypass as well as a dedicated privatised highway for commercial vehicles connecting Northport and Westport. Beneficiaries are likely to be Westports Holdings Bhd
, MMC Corp Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, GAMUDA BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Sunway Construction Bhd, MUHIBBAH ENGINEERING (M) BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
and Gabungan AQRS Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> DEVELOPMENT OF PULAU CAREY Sime Darby Bhd
is the biggest land owner there. Previously there were reports of a major port to be built there.
> NATIONAL FIBERISATION AND CONNECTIVITY PLAN (NFCP) Government to spend RM21.6bil to improve coverage of high speed digital connectivity nationwide. MCMC to finance at least half of the required investment with corresponding investments by the private sector telecommunications players via matching grant mechanism. Expected beneficiaries are telecommunication players such as TELEKOM MALAYSIA BHD
, Maxis Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Digi.com Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
and Axiata Group Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.>
ADOPTION OF DIGITALISATION MEASURES FOR SMES Government will provide a 50% matching grant amounting to RM500mil over five years to boost digital payment systems. Potential beneficiaries are payment system providers GHL Systems Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Revenue Group Bhd, and Managepay
image: https://cdn.thestar.com.my/Themes/img/chart.png
Systems Bhd.
> THE E-WALLET INITIATIVE There are some 45 companies providing e-wallet services. But the bigger non-bank players such as GREEN PACKET BHD
and Axiata Group Bhd are expected to move aggressively to capitalise on the digital stimulus incentive. In relation to this, the government is offering RM30 for those above 18 and earning less than RM100,000 annually to spur the usage of e-wallets. Khazanah Nasional to implement this digital stimulus.
> HEALTHCARE TOURISM Government to allocate RM25mil to strengthen Malaysia’s position as the preferred destination for health tourism in Asean for oncology, cardiology and fertility treatment.
The likely beneficiaries are private hospital operators: KPJ Healthcare Bhd
, IHH HEALTHCARE BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, TMC LIFE SCIENCES BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, and Sunway Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> UPGRADING OF MEDICAL EQUIPMENT The government to spend RM227mil on this.
There is also an initiative to encourage local medical equipment producers to supply to public clinics and hospitals.
Among the existing suppliers and manufacturers are BCM Alliance Bhd, Supercomnet Technologies Bhd
, DUFU TECHNOLOGY CORP BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
and UWC Bhd.
> IN-VITRO FERTILISATION (IVF) PROCEDURE The Employees Provident Fund (EPF) will introduce a new category of withdrawals, allowing for fertility treatments like IVF procedure. The leading healthcare provider in this area is TMC Life Sciences Bhd.
> CABINET APPROVED THE TAKEOVER OF FOUR HIGHWAYS IN KLANG VALLEY The shareholders of the highways are Gamuda Bhd, Litrak Bhd and KPS Bhd.
> LOWERED THRESHOLD ON HIGH RISE PROPERTY PRICES IN URBAN AREAS FOR FOREIGN OWNERSHIP FROM RM1 MILLION TO RM600,000 IN 2020 Generally it should benefit most property developers.
> STIFFER PENALTIES FOR ILLEGAL GAMBLING Illegal operators to be fined RM1mil and mandatory jail for 12 months while gamblers will be fined RM100,000 and face custodial sentence of six months.
Also, the government is reducing the number of special draws by the number forecast operators (NFO). Still, the stiffer penalties should mitigate this for Magnum Bhd
and BERJAYA SPORTS TOTO BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
which are bound to draw more betters.
> BANDAR MALAYSIA PROJECT The government is to proceed with the development of the mammoth property development project. It ends uncertainties on the project that was awarded to a joint venture of Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp. IWH is controlled by Tan Sri Lim Kang Hoo, who is a major shareholder of Iskandar Waterfront City Bhd
and Ekovest Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> CENTRALISED PROCUREMENT OF MEDICINE FOR MINISTRY OF HEALTH, MINISTRY OF DEFENCE AND UNIVERSITY HOSPITALS The centralised tender system is expected to see keen competition among players. Among the companies in pharmaceutical products are Pharmaniaga Bhd
, CCM Duopharma Biotech Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, HOVID BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Y.S.P Southeast Asia Bhd and KOTRA INDUSTRIES BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> RM4.85BIL FOR MAINTENANCE OF STATE ROADSLeading road care maintenance companies are PROTASCO BHD
and UEM EDGENTA BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
Read more at https://www.thestar.com.my/business/business-news/2019/10/12/how-the-budget-affects-listed-firms#AFJBRr8KBw83Lahh.99
Budget 2020 spelt out incentives cutting across various sectors of the economy, from health to infrastructure, and from digital payment systems to real estate.
Below we list some of the project and the listed companies which could potentially be involved.
> KLANG LOGISTICS CORRIDOR Government to spend RM8.3bil for the Serendah-Port Klang Rail Bypass as well as a dedicated privatised highway for commercial vehicles connecting Northport and Westport. Beneficiaries are likely to be Westports Holdings Bhd
, MMC Corp Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, GAMUDA BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Sunway Construction Bhd, MUHIBBAH ENGINEERING (M) BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
and Gabungan AQRS Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> DEVELOPMENT OF PULAU CAREY Sime Darby Bhd
is the biggest land owner there. Previously there were reports of a major port to be built there.
> NATIONAL FIBERISATION AND CONNECTIVITY PLAN (NFCP) Government to spend RM21.6bil to improve coverage of high speed digital connectivity nationwide. MCMC to finance at least half of the required investment with corresponding investments by the private sector telecommunications players via matching grant mechanism. Expected beneficiaries are telecommunication players such as TELEKOM MALAYSIA BHD
, Maxis Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Digi.com Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
and Axiata Group Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.>ADOPTION OF DIGITALISATION MEASURES FOR SMES Government will provide a 50% matching grant amounting to RM500mil over five years to boost digital payment systems. Potential beneficiaries are payment system providers GHL Systems Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Revenue Group Bhd, and Managepay
image: https://cdn.thestar.com.my/Themes/img/chart.png
Systems Bhd.
> THE E-WALLET INITIATIVE There are some 45 companies providing e-wallet services. But the bigger non-bank players such as GREEN PACKET BHD
and Axiata Group Bhd are expected to move aggressively to capitalise on the digital stimulus incentive. In relation to this, the government is offering RM30 for those above 18 and earning less than RM100,000 annually to spur the usage of e-wallets. Khazanah Nasional to implement this digital stimulus.
> HEALTHCARE TOURISM Government to allocate RM25mil to strengthen Malaysia’s position as the preferred destination for health tourism in Asean for oncology, cardiology and fertility treatment.
The likely beneficiaries are private hospital operators: KPJ Healthcare Bhd
, IHH HEALTHCARE BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, TMC LIFE SCIENCES BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, and Sunway Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> UPGRADING OF MEDICAL EQUIPMENT The government to spend RM227mil on this.
There is also an initiative to encourage local medical equipment producers to supply to public clinics and hospitals.
Among the existing suppliers and manufacturers are BCM Alliance Bhd, Supercomnet Technologies Bhd
, DUFU TECHNOLOGY CORP BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
and UWC Bhd.
> IN-VITRO FERTILISATION (IVF) PROCEDURE The Employees Provident Fund (EPF) will introduce a new category of withdrawals, allowing for fertility treatments like IVF procedure. The leading healthcare provider in this area is TMC Life Sciences Bhd.
> CABINET APPROVED THE TAKEOVER OF FOUR HIGHWAYS IN KLANG VALLEY The shareholders of the highways are Gamuda Bhd, Litrak Bhd and KPS Bhd.
> LOWERED THRESHOLD ON HIGH RISE PROPERTY PRICES IN URBAN AREAS FOR FOREIGN OWNERSHIP FROM RM1 MILLION TO RM600,000 IN 2020 Generally it should benefit most property developers.
> STIFFER PENALTIES FOR ILLEGAL GAMBLING Illegal operators to be fined RM1mil and mandatory jail for 12 months while gamblers will be fined RM100,000 and face custodial sentence of six months.
Also, the government is reducing the number of special draws by the number forecast operators (NFO). Still, the stiffer penalties should mitigate this for Magnum Bhd
and BERJAYA SPORTS TOTO BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
which are bound to draw more betters.
> BANDAR MALAYSIA PROJECT The government is to proceed with the development of the mammoth property development project. It ends uncertainties on the project that was awarded to a joint venture of Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp. IWH is controlled by Tan Sri Lim Kang Hoo, who is a major shareholder of Iskandar Waterfront City Bhd
and Ekovest Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> CENTRALISED PROCUREMENT OF MEDICINE FOR MINISTRY OF HEALTH, MINISTRY OF DEFENCE AND UNIVERSITY HOSPITALS The centralised tender system is expected to see keen competition among players. Among the companies in pharmaceutical products are Pharmaniaga Bhd
, CCM Duopharma Biotech Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png
, HOVID BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
, Y.S.P Southeast Asia Bhd and KOTRA INDUSTRIES BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
.
> RM4.85BIL FOR MAINTENANCE OF STATE ROADSLeading road care maintenance companies are PROTASCO BHD
and UEM EDGENTA BHD
image: https://cdn.thestar.com.my/Themes/img/chart.png
.