OCTOBERASIA BUSINESS OUTLOOK8NEWSROOMUAE & OMAN SET UP $35BN INVESTMENT TIES ACROSS DIVERSE SECTORSAs Malaysia prepares for the unveiling of Budget 2025 on October 18, public attention has centered on whether the government will cut petrol subsidies, a significant issue given the country's efforts to improve public finances. Prime Minister Anwar Ibrahim has expressed confidence in Malaysia's economic growth but acknowledges the need to manage government spending, which involves carefully reducing subsidies without triggering widespread discontent.In June 2024, Malaysia took a step by cutting diesel subsidies, saving approximately RM4 billion annually. Diesel prices rose by 56 percent, leading to public dissatisfaction despite cash assistance for certain affected groups, such as low-income diesel vehicle owners who received RM200 monthly to offset fuel costs.The next likely target is the RON95 petrol subsidies, which accounted for a significant portion of the RM81 billion spent on subsidies in 2023. These subsidies, seen as benefiting higher-income households more than low-income ones, are expected to be reduced as part of the government's plan to cut the subsidy bill to RM52.8 billion in 2024.However, analysts predict that Budget 2025 will not immediately eliminate blanket petrol subsidies or reintroduce the Goods and Services Tax (GST). Instead, the government is expected to gradually implement these changes, giving time for smoother execution and addressing public concerns about the cost of living. Additionally, wage adjustments may be introduced to help Malaysians cope with inflation, which could provide some relief as the government navigates its fiscal reforms. The UAE and Oman are expected to enhance their trade and economic relations through the signing of investment agreements totaling 129 billion dirhams ($35.12 billion). As stated in a press release, these deals include various industries such as renewable energy, sustainable metals, rail, digital infrastructure, and tech investments.In recent years, economic relations between the UAE and Oman have remained strong, with non-oil trade reaching around 50 billion dirhams in 2023."The UAE and Oman have strong historical relations that are founded on shared values, goals and principles. The agreements represent a major milestone in our bilateral ties, as they pave the way for us to leverage our collective strength to realize our shared vision of advancement and prosperity," said Mohamed Hassan Al-Suwaidi, UAE's minister of investment. One of the key deals inked by the two nations was a major industrial and energy project worth 117 billion dirhams. This project involves renewable energy efforts, such as solar and wind projects, in addition to facilities for producing green metals.The agreement was signed by Abu Dhabi National Energy Co., Abu Dhabi Future Energy Co., Emirates Global Aluminium, Emirates Steel Arkan, OQ Alternative Energy, and Oman Electricity Transmission Co. Another deal worth 660 million dirhams was made between Abu Dhabi Developmental Holding Co. and Oman Investment Authority to create a fund focused on technology.Both countries signed a rail connectivity project between UAE and Oman worth 11 billion dirhams. Furthermore, the Ministry of Investment and the Ministry of Commerce and Trade in the UAE also entered into an agreement with Oman's Ministry of Investment Promotion to collaborate in various areas such as digital infrastructure, food security, and energy. MALAYSIAN PUBLIC ANTICIPATE REMOVAL OF PETROL SUBSIDIES IN UPCOMING BUDGET
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