Falling RM, slowing main street, weakening export demand by China, Europe and US.
Excitement needed for rural population to continue support BN. Sarawak and Sabah sweeteners and falling stock market. Stagnant property market. Of course foreign fund managers and credit rating agencies demands.
This will be a very tough budget that need to cheer everyone. We think will be very much in focus to have a slightly over temp budget deficit of 3.5 to 4%. Nothing can get worst unless BN going for own suicide.
The city folks or middle higher income group may be the only target for less subsidies or more collection.
We believe the market will response positively to the budget towards year end.