The RM60 billion stimulus package, which is a lifeline to steer the country from the brink of a serious recession, will give a boost to companies including Proton, Perodua, property developers and also banking stocks on March 11.
The RM60 billion stimulus package and the tax proposals will have an impact of reducing businesses’ cash outflow through tax, and this would be helpful to them, says Deloitte
Palm oil producers will also benefit from the higher threshold for the windfall profit levy. Efficient producers like IOI Corp and Kuala Lumpur Kepong would be stocks to watch and also smaller players like IJM Plantations.
Proton and Perodua car owners who trade in their cars, which are at least 10 years old, to buy new Proton and Perodua cars, will get a RM5,000 discount.
This scheme is to stimulate car sales, as well as reduce carbon emission.
Banks are expected to benefit from the proposed deferred interest income as they will only be taxed when such interest income is received or paid by borrower. At present, such interest income is taxed even though it is not received yet.
Property developers will also benefit from the move to boost the sentiment in the sector. The government proposed to give house buyers tax relief on housing loans up to RM10,000 a year for three years.
Construction and infrastructure companies are expected to benefit from the RM8.4 billion package for projects under the Ninth Malaysia Plan, which have high local content and multiplier effect, people-centric and can be implemented immediately.
A total of RM2.28 billion had been allocated for basic amenities in rural areas, especially Sabah and
Palm oil producers will also benefit from the higher threshold for the windfall profit levy. Currently, the levy is imposed when crude palm oil is above RM2,000 per tonne. The threshold is increased to RM2,500 per tonne in peninsular and RM3,000 for Sabah and
Deloitte
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