With Malaysia's businesses and services now being permitted to operate, subject to strict guidelines and Standard Operating Procedures (SOPs) following months of uncertainty during the prolonged lockdown, Malaysia's Ministry of Finance (MOF) says the country's path to economic recovery from the COVID-19 pandemic is now under way. Providing a status report on the COVID-19 Prihatin Rakyat Economic Stimulus Package (ESP), Malaysia’s Minister of Finance, Tengku Datuk Seri Zafrul Tengku Abdul Aziz stated that the COVID-19 pandemic has impacted markets and economies across the globe and...

The United Arab Emirates’ (UAE) Ministry of Finance (MOF) is not currently planning to raise its value-added tax (VAT) rate of 5%, following Saudi Arabia announced it was tripling its rate. In a surprise move, Saudi Arabia increased the VAT rate from 5% to 15% effective June 2020, and also suspended the cost of living allowance to increase revenues. Younis Haji Al Khoori, the Undersecretary of the MOF stated that the MOF will reorient the financial resources to prepare for future and continued growth to ensure the se...

Axiata Group Berhad (Axiata) has completed the world’s first ever syndicated multi-currency Shariah-compliant sustainability-linked financing facilities worth USD 800 million, marking a major milestone for Axiata, according to the Axiata’s President and Chief Executive Officer, Tan Sri Jamaludin Ibrahim. Ibrahim stated that Axiata’s latest financing move showcases its approach towards business operations and financing avenues to deliver long-term growth and sustainable performance while adding that Axiata will continue to be guided by internati...

Kuwait-based First Takaful Insurance (FTI) has concluded all processes to sell its 35% holding in Turkey's Neova Sigorta Insurance Company (NSIC), for an approximate price of KWD 12.14 million as per the exchange rate on the date of the transaction. According to a Stock Exchange filing on the 10th of May 2020, FTI reported a loss of approximately KWD 4.7 million (at the exchange rate on the date of sale), compared to an expected loss of KWD 4.9 million. In addition, FTI also noted that 5% of the transaction’s value...

Malaysia's RHB Investment Bank (RHB) said that the country’s banking sector is set to be affected as it expects loan growth in the country to drop to 0.4% year-on-year (YoY), with both business and household demand faltering as the economy goes into a contraction. According to RHB, Malaysia’s banking sector loan growth increased marginally to 4.0% YoY in March 2020, compared to 3.9% YoY growth in February 2020. RHB added that growth in corporate loans increased to 4.4% YoY during March 2020, compared to 3.2% in February 2020,...

According to Abdul Razak Dawood, Adviser to the Minister of Commerce of Pakistan, Pakistan's exports are projected to decline by approximately USD 3 billion during the current fiscal year due to falling global demand and subsequent lockdowns amidst the COVID-19 pandemic. Data from the Pakistan Bureau of Statistics indicate that the nation's exports declined by 54% in April 2020 compared to April 2019 and stood at USD 957 million, while Pakistan's total exports declined by 3% to USD 18.4 billion during the pe...

The Ministry of Entrepreneur and Cooperative Development (MEDAC) is expected to simplify lending procedures for entrepreneurs following various standard operating procedures (SOPs) that they need to face in order to start their business, according to Datuk Seri Wan Junaidi Tuanku Jaafar, Malaysia’s Minister of Entrepreneur and Cooperative Development. Jaafar stated that this was due to many companies being affected by the implementation of the Movement Control Order (MCO) and the Conditional MCO, adding that the Secretary General o...

The Ministry of Finance of Indonesia has decided to scrap its plans of issuing “Pandemic Bonds” worth IDR 450 trillion in response to the impacts of the COVID-19 pandemic. The Financing and Risk Management Director General of the Ministry of Finance, Luky Alfirman, stated that the Government of Indonesia will not issue specific securities including the “Pandemic Bonds”. Alfirman added that the Government will instead issue debt securities through regular auctions, in order to finance the widening budget deficit. Alfirman added that the Governm...

In the light of concerns over the effect of COVID-19, rating agency, Pemeringkat Efek Indonesia (PEFINDO) has revised the outlook of several financial institutions such as Mandala Finance, Bank Capital, Bank Victoria and Trimegah Sekuritas. Furthermore, PEFINDO also lowered the ratings of asset-backed securities, KIK EBA Mandiri-Garuda GIAA01 issued by Mandiri Investasi and Garuda Indonesia.  According to Hendro Utomo, a Senior Vice President at PEFINDO, the revision i...

Saudi Arabia’s Minister of Finance and acting Minister of Economy and Planning, Mohammad Al Jadaan, announced on the 11th of May 2020, that the country will increase the rate of the value-added tax (VAT) from 5% to 15% effective from the 1st of July 2020. Al Jadaan also announced the decision to discontinue the cost of living allowance effective from the 1st of June 2020. This follows the decision by the Government of Saudi Arabia to reduce spending and increase revenue sources, as part of the steps taken aimed at protecting the country's economy. The move...