China achieves key digital breakthroughs in 14th Five-Year Plan, ranks global second in computing power: official

 

AI Photo: VCG

China has made remarkable strides in digital infrastructure and technological innovation during the 14th Five-Year Plan period (2021-25) with its total computing power ranking second worldwide and technology breakthroughs in key digital sectors, Liu Liehong, head of the National Data Administration (NDA), told a press conference on Thursday.

In terms of digital infrastructure, by the end of June, the country had 4.55 million 5G base stations and 226 million gigabit broadband users, with its total computing power ranking second worldwide. These advancements have strongly driven economic and social development, Liu said.

Technological breakthroughs also shine in key digital sectors. The integrated circuit industry has formed a complete industrial chain covering design, manufacturing, packaging, testing, equipment and materials. Domestic operating systems are thriving, with China's self-developed HarmonyOS powering over 1.19 billion devices across over 1,200 product categories like smartphones, cars and home appliances. China's overall AI strength has seen systemic growth, holding 60 percent of global AI patents, according to the NDA.

The data industry has emerged as a new growth driver. In 2024, the number of data enterprises in China exceeded 400,000, and the scale of the data industry reached 5.86 trillion yuan ($817.24 billion), an increase of 117 percent compared with the end of the 13th Five-Year Plan period (2016-20). Digital economy growth has also created over 100 new occupations, generating fresh employment opportunities, according to the NDA.

By the end of 2024, China's software revenue had grown by 80 percent compared with 2020, while the added value of above-scale electronic information manufacturing had increased by over 70 percent. Meanwhile, intelligent transformation and digital upgrading are advancing at an accelerated pace. More than 10,000 smart factories have been established, covering over 80 percent of major manufacturing industry categories. Smart home appliances and smart wearables have emerged as new consumption trends. -  Global Times

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US national debt hits record $37 trillion amid mounting fiscal concerns

Photo taken on March 17, 2020 shows U.S. dollar banknotes in Washington, DC, the United States. Photo:XinhuaThe US government's gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America's balance sheet and increased cost pressures on taxpayers, the AP reported. The $37 trillion update is found in the latest Treasury Department report issued on Tuesday, which logs the nation's daily finances, according to the AP report.

Experts said that as the debt scale grows larger, future interest payment costs will continue to rise, posing risks to fiscal sustainability, while global investors may grow wary of US Treasury bonds amid credit downgrades and uncertainty.

The $37 trillion debt milestone comes less than eight months after the nation hit the $36 trillion threshold for the first time in late November 2024, and a little over one year after the $35 trillion mark was reached in late July 2024, Fox Business reported.

The $37 trillion debt amounts to about $280,000 per household or $108,000 per person, according to the Peter G. Peterson Foundation.
 
The national debt soaring past $37 trillion sends yet another clear message about America's unsustainable fiscal path, Chair and CEO of the Peter G. Peterson Foundation Michael Peterson said in a statement on its website.

"Our growing debt slowly damages our economy and the prospects of the next generation. As the government borrows trillion after trillion, it puts upward pressure on interest rates, adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing," Peterson said.
 
The Government Accountability Office outlines some of the impacts of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services, according to the AP.
 
The Joint Economic Committee estimates at the current average daily rate of growth, an increase of another trillion dollars in the debt would be reached in approximately 173 days, according to the AP.

Peterson warned that "As our debt continues to rise, at some point the financial markets will lose confidence in our ability to overcome the politics to solve this problem."
 
To repay maturing debt, the US government has been issuing new debts to repay old ones, leading to the continuous expansion of the overall debt load. As the debt scale grows larger, it means that the future interest payment costs will continue to rise, posing risks to fiscal sustainability, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Wednesday.

If maturing debts cannot be repaid, US debt will become unsustainable, and its credit ratings may be downgraded, creating significant risks for global investors, Zhou added.

The expansion of the US government's debt scale has brought more uncertain risks to investments in US Treasury bonds, making global investors more cautious, Zhou said.

"Factors such as rating agencies' changes in sovereign credit ratings and sharp swings in US tariff policies at the real-economy level have added to this uncertainty," Zhou added.

Yang Changjiang, a professor at Fudan University, told the Global Times on Wednesday that the expanding US government debt has also brought greater uncertainty to the global financial market and the stable operation of the international monetary system.

In May, Moody's downgraded the US sovereign credit rating. It is expected that US large-scale fiscal deficits will further increase the burden of government debt and interest payments, and the fiscal situation is likely to deteriorate, Yang said.

Moody's Ratings in May cut the US' sovereign credit rating by one notch to Aa1 from Aaa.

"This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns," said a release by Moody's Ratings. 

The US fiscal performance is likely to deteriorate relative to its own past and compared with other highly rated sovereigns, according to the credit rating agency.

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Getting MyKads in order

 Many visit NRD ahead of R100 assistance

Aid on the cards: Malaysians rushing to replace their identity card at the Petaling Jaya NRD branch. — IZZRAFIQ ALIAS/The Star

PETALING JAYA: As the government prepares to roll out the RM100 aid for all adult citizens, many are heading to National Registration Department (NRD) offices to update their MyKad.

This is because the one-off RM100 assistance for Malaysians aged 18 and above will be credited directly to their MyKad under the Sumbangan Asas Rahmah (Sara) initiative from September.

Among those eager to renew their identification card was Chua from SS2, who has not renewed his MyKad for over 20 years.

“It was high time for a change,” he said at the NRD office here yesterday where he came to pick up his new MyKad, following a system glitch on Wednesday. 

Retiree K. Gunaseelan, 71, said he lost his MyKad recently.

“But I have a replacement and it is just in time for the government’s aid,” he said.

Gunaseelan said he is keen to find out more about how to use the RM100 aid.

“I’ve heard about the purchase scheme using the MyKad, but I’m not entirely sure how or where I can use it,” he added.

A civil servant, who identified herself as Atiqah, came to renew her MyKad which was damaged.

The 32-year-old said she appreciated the RM100 aid.

ALSO READ: Don't belittle RM100 cash aid under Sara, says Anwar

“Middle-income earners usually don’t receive much from the government,” she added.

She urged the government to do more to help those in need, such as tax rebates.

Business development manager GK Lim, 55, said he was happy with the process of replacing his MyKad.

“The crowd was manageable and the queue not long as many counters were opened. Everything was done in under 45 minutes,” he said.

Lim said he took leave from work to sort things out after realising the chip in his MyKad was faulty last week.

Nurul Najwa, a 29-year-old freelance graphic designer from Ampang, said everyone should take good care of their MyKad.

“I’m happy about the RM100 government aid.

“As a freelancer, every bit helps. I hope the government will consider long-term solutions for freelancers and small-scale business owners,” she added.

Rela

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Stakeholders await details on RON95 targeted subsidy

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https://www.thestar.com.my › comment › 2025/07/25

Malaysia PM announces cash handout for all adult citizen, Govt offering much-needed relief measures to ease living cost of rakyat

 

 

KUALA LUMPUR — Malaysia’s Prime Minister (PM) Anwar Ibrahim on Wednesday announced new measures to address growing public disquiet about the rising cost of living, including a cash handout for all adult citizens and a promise to lower fuel prices.

The announcement came ahead of a planned protest to be held in Malaysia’s capital Kuala Lumpur on Saturday, calling for Anwar to step down over escalating prices and a failure to deliver on promised reforms, among other concerns.

Anwar’s administration has carried out a number of measures to boost revenue and productivity this year, including a minimum wage hike, increased electricity tariffs on heavy power users, and new sales taxes on some imported fruits and luxury goods.

Anwar has said the moves were mainly targeted at large businesses and the wealthy, but critics have voiced fears that higher costs would eventually be passed down to consumers, including lower and middle income earners.

On Wednesday, Anwar said all adult Malaysians above 18 years old will receive a 100 ringgit ($23.67) one-off cash aid to be disbursed from Aug. 31.

The government will spend a total 15 billion ringgit ($3.55 billion) in cash aid in 2025, up from 13 billion ringgit originally allocated for the year, he said.

Police have said they expect between 10,000 and 15,000 people to attend the Saturday protest, which has been organized by opposition parties.

“I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far,” Anwar said.

He added that further initiatives to aid those in poverty will be launched on Thursday.

Anwar said the government will also announce details on a long-awaited plan to remove blanket subsidies on the widely used RON95 transport fuel before the end of September.

Once the subsidy changes are implemented, Malaysians will see fuel prices at the pump drop to 1.99 ringgit per liter, compared to the current price of 2.05 ringgit, Anwar said.

Foreign nationals however will have to pay unsubsidized market prices for the fuel, he added.

Anwar also announced additional allocations for a government program aimed at increasing access to affordable goods and necessities, and vowed to improve other existing aid measures.

Malaysia has seen inflation fall this year, but worries persist over increasing prices of basic necessities like food.

Data released this week showed consumer prices rising 1.1% from a year earlier last month, but the costs of food and beverages were up at a faster pace of 2.1%.

Govt offering much-needed relief measures to ease living cost of rakyat

PETALING JAYA: Malaysians can look forward to a series of measures aimed at easing cost of living, including a one-off RM100 cash aid for those 18 years and above, and cheaper RON95 soon.

The cash assistance will be credited directly into their MyKad under the Sumbangan Asas Rahmah (Sara) initiative.

Prime Minister Datuk Seri Anwar Ibrahim announced these measures in a special announcement aired live on his social media platforms yesterday.

Offered in conjunction with National Day on Aug 31, he said the incentives were aimed at easing the rising cost of living and a token of appreciation for the people.

“With this announcement, the combined allocation for Sumbangan Tunai Rahmah (STR) and Sara rises from RM13bil to RM15bil this year, marking the first time in history that cash aid is extended to all adult Malaysians,” he said.

Anwar, who is also Finance Minister, said this initiative would benefit 22 million Malaysians with an allocation of RM2bil.

This assistance, said Anwar, can be used from Aug 31 to Dec 31 this year, to buy essentials at over 4,100 outlets nationwide, including major supermarkets such as Mydin, Lotus’s, Econsave, 99Speedmart and participating grocers.

“It will be distributed on individual basis, not by household. So, for example, a household with a husband, wife and two adult children will receive a total of RM400,” he said.

Less is more: The price of RON95 petrol will soon be reduced to RM1.99 per litre under a targeted subsidy scheme with further details to be announced by the end of September. — IZZRAFIQ ALIAS/The Star

Anwar said the cost of living remained a pressing challenge that must be addressed wisely and urgently.

He added that while overall inflation in June 2025 dropped to 1.1%, the lowest in 52 months, food and beverage prices continued to rise above the national average.

“There may be some among us who are financially secure and do not need this aid. The government intends to reallocate any unspent funds by year-end towards assistance programmes for vulnerable groups next year,” he added.

In a separate statement, the Finance Ministry said collectively, households have the potential to receive a higher amount of Sara credit.

“For example, a family comprising a husband, wife, and two children aged 18 and above would receive a total of RM400, instead of just RM100,” it said.

The Sara credit can be used to buy over 90,000 essential items across 14 categories, including rice, egg, household cleaning products, medicine and school supplies.

“The RM100 credit is valid until its expiry date of Dec 31, 2025.

“Any unspent balance will be redistributed to vulnerable groups through a programme to be determined later,” said the ministry.

Sara complemented the Sumbangan Tunai Rahmah (STR) initiative, which provided monthly credits specifically for purchasing basic necessities, it added.

The initiative was introduced by the government in its first Madani Budget in 2023 and currently benefits 5.4 million active recipients.

“Both initiatives are a token of appreciation from the government to all Malaysians who continue to support the nation’s fiscal reform agenda.

“They also reflect the Madani government’s commitment to redistributing the nation’s growing wealth, a result of bold fiscal reforms and more efficient economic management, guided by the Madani Economic Framework.

Anwar also highlighted that the Jualan Rahmah Madani initiative will be enhanced to assist the public in managing living costs.

The government, he added, will double the initiative’s allocation from RM300mil to RM600mil.

This funding will increase the frequency and expand the Jualan Rahmah Madani to include all 600 state constituencies nationwide, said Anwar, who is also Finance Minister.

“The additional allocation will, among others, increase the frequency and expand the number of locations nationwide, covering all 600 state constituencies,” he said.

Anwar also said the price of RON95 petrol will soon be reduced to RM1.99 per litre under a targeted subsidy scheme with further details to be announced by the end of September.

The government, he said, was committed to optimising national subsidy spending by ensuring that ordinary Malaysians continued to benefit from subsidies, while curbing leakage to those not eligible.

“Once the targeted RON95 subsidy is implemented, the government will reduce the price of RON95 petrol to RM1.99 per litre exclusively for Malaysian citizens, while foreign nationals will have to pay the unsubsidised market price.”

The initiative, he said, would benefit about 18 million motorists, including youths as young as 16 and gig economy workers.

“In 2023 and 2024 alone, subsidies for RON95 were estimated to cost nearly RM20bil annually.

“Even this year, despite a drop in global oil prices, the unsubsidised price of RON95 remains around RM2.50 per litre, significantly higher than the subsidised rate Malaysians currently enjoy,” he said.

He explained that the move aims to ensure that ordinary citizens continued receiving fuel subsidy while leakage to ineligible groups, including foreigners, are addressed.

To address the critical need for doctors in hospitals and government healthcare facilities, Anwar also announced that over 4,000 positions for government doctors, including contract medical officers, would be available this year.

He confirmed that 4,352 new doctors, including those on contract, would be hired this year.

According to projections released in 2023 by Dr Hirman Ismail, deputy director of the Health Ministry’s medical development division, the public healthcare sector would require 63,040 doctors by 2025 and 79,931 by 2030.

As of last year, there were nearly 52,000 doctors employed in government service.

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CAP Calls for Vacancy Tax and Tighter Controls to Curb Property Speculation

 

The Consumers Association of Penang (CAP) strongly supports the introduction of a vacancy tax on residential properties that are left unoccupied for extended periods. We believe this measure is urgently needed to address the deepening problems of property speculation and declining housing affordability in Malaysia.

A vacancy tax typically applies to properties that remain vacant — unsold or unrented — for more than six months in a year. In countries such as Canada and Australia, particularly in cities like Melbourne, this tax is set at between one and three per cent of the property or land value. Its primary aim is to deter property speculation, particularly in the medium-cost segment, where rising prices in the subsale market have increasingly placed home ownership beyond the reach of middle-income earners.

According to the Khazanah Research Institute, housing prices in Malaysia rose by an average of 5.8 per cent per year between 2010 and 2022 — well above the healthy growth range of three to four per cent. As a result, many in the M40 income group find it difficult to purchase their own homes. In urban areas, the typical ‘modern’ three-bedroom apartment ranges from 800 to 1,000 square feet. This limited space is not conducive to multi-generational or extended family living, nor does it offer adequate privacy or comfort for those forced to share with other families.

Speculators often compete directly with genuine homebuyers, inflating demand and thereby encouraging developers to acquire more land to keep up with what is essentially artificial pressure. In land-scarce areas like Penang, this has resulted in a rise in land prices and a growing reliance on costly land reclamation from the sea.

It is also worth noting that many apartment blocks are not fully occupied, despite having been sold. In these developments, owners of vacant units — who are not living in them and cannot easily sell or rent them out — often neglect their obligations to pay maintenance fees. This undermines the upkeep of the building and penalises residents who do live there.

At present, many residential properties, particularly in urban centres, remain empty while thousands of Malaysians continue to struggle to find homes they can afford. The property market has become increasingly dominated by those who treat housing as a speculative investment rather than a basic human need. This trend has led to inflated prices and a false sense of scarcity, especially in cities where housing demand is greatest. A vacancy tax would act as a strong disincentive to leave properties idle and would encourage owners to either rent out or sell them, returning more units to the active housing market.

In addition to the vacancy tax, CAP calls on the government to review and strengthen the Real Property Gains Tax (RPGT). The current system fails to adequately discourage short-term speculation. We propose a more progressive model that imposes significantly higher tax rates on profits from properties sold within a short holding period.

We also urge a revision of stamp duty rates, with higher charges levied on the purchase of second and subsequent residential properties. These measures should be especially firm in cases where the property is not intended for owner-occupation, or when purchased by foreign buyers. In doing so, the government can help ensure that Malaysians are not priced out of home ownership by those seeking to profit from housing as an asset.

Moreover, CAP recommends tighter controls on housing loans. Banks and financial institutions should apply stricter lending criteria for individuals who already own multiple residential units. Loan-to-value ratios should be lowered in such cases to reduce excessive borrowing for speculative purposes.

Unless the government introduces comprehensive policy reforms, Malaysia’s housing sector will continue to favour investors at the expense of ordinary citizens. It is the government’s duty to uphold the principle that housing is a fundamental right, not a speculative commodity.

CAP therefore urges policymakers to act with urgency and resolve. The combined approach of introducing a vacancy tax, strengthening RPGT, revising stamp duties, and tightening housing loan regulations will go a long way towards restoring balance, fairness and accessibility in the property market.

 Mohideen Abdul Kader

President
Consumers Association of Penang

Growth expected as ‘stars aligning’ for country

Why Malaysia is Becoming a Semiconductor Powerhouse

Malaysia has become a winner amidst the ongoing chip war between the U.S. and China, and here's why.

This video is based on publicly available data and analysis. It represents the author’s perspective and should not be taken as professional or financial advice.

Bursa Malaysia chairman Tan Sri Abdul Wahid Omar

 KUALA LUMPUR: Malaysia is in a “sweet spot” for economic growth and investment, with the “stars aligning” in its favour, according to industry leaders and market analysts.

This optimism stems from the country’s robust macroeconomic fundamentals, improving investment climate and strategic positioning in the global supply chain.

Maybank Investment Bank head of regional equity research Anand Pathmakanthan highlighted Malaysia’s acceleration in gross fixed capital formation, driven by a blend of domestic direct investment (DDI) and foreign direct investment (FDI).

“The good news is it’s not just FDI, it’s also DDI, which is far more important in terms of job creation and tax generation,” he said during his presentation at the Institute of Chartered Accountants in England and Wales Economy Insight Conference 2024 yesterday.

Anand said for the last 10 years, local companies have not been investing, which has a lot to do with political instability.

“They’ve been investing less and less in Malaysia, which is always a bad sign for any country,” he said.

But in the last two years, he said Malaysia is seeing a recovery in DDI.

“The recovery in DDI reflects the confidence that domestic businesses are feeling better about the environment. That (DDI) is going to be a key support when issues about trade crop up next year with Trump 2.0,” he said.

Meanwhile, Anand said Budget 2025 is “very well-balanced,” emphasising initiatives to crowd-in private sector investments.

He projected continued economic growth, supported by a civil service pay hike, minimum wage increases and enhanced cash handouts, which would sustain domestic consumption in 2025.

“Malaysia is in a very sweet spot, especially when it comes to attracting supply chain relocation and FDI,” he said.

Anand projected Malaysia’s gross domestic product (GDP) to conclude at 5.2% in 2024 and 4.9% in 2025, outpacing the Asean-6 regional average of 4.8% in 2024 and 4.7% in 2025.

Affin Bank Bhd president and chief executive officer Datuk Wan Razly Abdullah echoed the optimism, projecting GDP growth of 5.2% in 2025, up from the bank’s projection of 5% for this year.

He attributed this to stable oil prices, elevated crude palm oil (CPO) prices and active construction and technology sectors.

“The elevated price of oil and CPO will provide good income streams,” he said, adding that Johor and Klang Valley developments would boost the property sector.

“The stars are aligning for Malaysia thanks to our stable political environment and strong FDI flows.”

Wan Razly also expressed bullishness on the ringgit, predicting it to strengthen to RM4.10 against the US dollar by end-2025, supported by the US Federal Reserve interest rate cuts.

Adding to the optimism for Malaysia’s economic prospects, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar highlighted the robust performance of the local bourse, driven by a favourable investment environment and strong macroeconomic fundamentals.

“Malaysia has been a vibrant market for initial public offerings (IPOs) this year. Up to the end of November, we had 47 listings that raised a total of US$1.5bil. By year-end, we expect to close with 54 or 55 listings,” he said.

He noted that the average daily trading value for 2024 has increased by over 50% year-to-date, reaching approximately RM3.1bil.

Abdul Wahid believes this momentum will be sustained into 2025, with 19 IPO approvals in hand for next year.

“Looking at the pipeline, I think 2025 should be another good year,” he said.

He said “the overall good macroeconomics are being translated into the real world and capital markets,” coupled with a shorter processing time for IPO listings of just three months.

Separately, Abdul Wahid said Malaysia should further tap into the Asean market and leverage its strategic advantages, as the regional bloc is well-positioned amidst global uncertainties, particularly ahead of the United States’ tariff threats on China.

Abdul Wahid urged Malaysia to continue to pursue its relationship with Asean in a pragmatic and constructive manner to further capitalise on the bloc’s 670 million consumers.

“The biggest potential that we have is in Asean. Our trade and investments (in the bloc) is relatively low compared to other trade partners and that can be enhanced further,” he said.

Abdul Wahid also emphasised that Malaysia should not be mutually exclusive to any specific trade groupings, trade talks or bilateral agreements and should focus on further strengthening trade relationships.

In the realm of inflation, both Anand and Wan Razly anticipate a rise to 3% in 2025, up from the current 1.9%, mainly due to the targeted petrol subsidy scheduled to take effect mid next year.

Despite the projected uptick, both of them said Malaysia’s inflation rate will stay within a healthy range, underpinned by strong macroeconomic fundamentals and effective policy measures.

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