BUSINESS

MGS/GII ISSUANCE FORECAST AT RM175 BLN AMID LOWER FUNDING REQUIREMENT - RHB

25/02/2023 11:17 AM

KUALA LUMPUR, Feb 25 (Bernama) -- RHB Investment Bank Bhd has forecast a gross Malaysian Government Securities (MGS)/Government Investment Issues (GII) issuance of RM175 billion based on the revised Budget 2023.

The new borrowings target is RM94.6 billion and RM81 billion of maturity is scheduled this year. Nevertheless, it said, the final amount will depend on the blend of short-term Treasury Bills issued.

“The funding gap compared to the first budget is reduced by RM5 billion, which means MGS/GII overall issuance will be smaller, and hence favourable to its demand supply profile,” the bank said in a research note.

It said the budget deficit is targeted to improve from the earlier forecast of RM99 billion to RM93.9 billion, which is credit positive.

The government is targeting to reduce the fiscal deficit from 5.6 per cent of Gross Domestic Product in 2022 to 5.0 per cent in 2023.

RHB Investment Bank said the main improvement is due to the absence of COVID-19 fund, which totalled RM30.1 billion in 2022.

“We expect demand to be stable given the strong support from local institutions,” it said.

The bank said the Employees Provident Fund, Bank Negara and banks accounted for 84 per cent (about RM87 billion) of net MGS/GII purchases in the 12 months up to the third quarter of 2022. Total net purchases amounted to RM103 billion over that period.

-- BERNAMA


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2024 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy