Budget 2025 maintains balance between fostering economic growth and strengthening ringgit: RHB Asset Management

KUALA LUMPUR: Budget 2025 maintains a balance between fostering economic growth and strengthening the ringgit, said RHB Asset Management (RHBAM) managing director and CEO Ng Chze How.

He also said the Budget ensures national prosperity and maintains the country’s fiscal sustainability.

“So all in all, in line with our earlier expectations, Budget 2025 maintains a balanced approach to GDP, ringgit, national prosperity and fiscal sustainability,” Ng told a press conference after the launch of the “Wake Up and Smell the Opportunity” campaign to share RHB Asian Income Fund’s innovative investment strategy, key investment themes and opportunities across the region, and why it is an essential addition to Malaysian investors’ portfolios today.

Ng said there is something concrete being presented to address the budget deficit. “We welcome some of the data being released, including the country’s revised GDP (gross domestic product).”

He pointed to positive indicators, such as the ringgit appreciating against the US dollar as well as against the Singapore dollar and other major currencies.

“There is a lot of good news surrounding us. If you look at some of the headlines over the last few months, many multinational corporations, the FDIs, are coming to this part of the world. It looks really exciting,” he said.

Ng said Malaysia has what it takes to attract FDI (foreign direct investment) because it has the infrastructure and skilled labour.

“Technology sectors are coming in, data centres are being built. Our country made Johor Special Zone, a duty-free zone, to attract some of these investments. It’s not just in Johor, but in Sarawak, Penang and Selangor, where we can witness many of those developments. All in all, we are upbeat about Malaysia,” he added.

However, Ng also pointed to inflationary pressure, noting that things have become slightly more expensive.

RHBAM, a wholly owned subsidiary of RHB Investment Bank Bhd, has unveiled its enhanced Asian Income strategy comprising RHB Asian Income Fund, RHB Asian Income Fund-SGD and RHB Asian Income Fund – Multi Currencies.

The RHB Asian Income Fund feeds into the Schroder Asian Income Fund, managed by Schroders Singapore.

“The enhanced Asian Income strategy is designed to provide consistent income and capital growth during volatile market cycles. We are optimistic that it will play an essential role in every investor’s portfolio,” Ng said.

Schroders head of South Asia and CEO Singapore Lily Choh said the enhanced Asian Income strategy is designed to benefit from Asia’s burgeoning influence and pivotal trends driving growth.

“Schroders, as one of the largest offshore managers in Malaysia, combines our regional expertise with a global perspective to deliver income stability while tapping into the next wave of growth opportunities,” she said.

The target fund features a broadened investment scope that now spans global and alternative assets, in addition to Asian multi-asset investments.

RHBAM said this diversification allows Malaysian investors to tap into broader growth opportunities while enjoying stable income and capital appreciation over the medium-to-long term amid an evolving investment landscape.

The RHB Asian Income Funds’ income distribution policy now allows for monthly income distribution. It targets a higher income distribution of 6% to 6.5% per annum’, an increase from 4% to 4.5% per annum.

RHBAM said the improvement is designed to offer flexibility and provide a more regular income stream in times of market volatility. The enhancement also aligns with the current economic environment, characterised by easing monetary policies and lower interest rates, which have brought dividends back into focus.

Coupled with ongoing corporate reforms across Asian capital markets, these factors are poised to drive stronger investor confidence and favourable dividend outcomes over the medium term, it added.

RHBAM said investors gain access to high-quality companies globally, positioning them to benefit from major growth themes such as artificial intelligence which are reshaping the market landscape.