Economist, Centennial Asia Advisors

Nicholas Chia

Centennial Asia Advisors deliver timely and accurate economic and political analysis to investors, focused on anticipating key turning points that affect the client’s interests in the Asia-Pacific region. Clients include public agencies and central banks, as well as fund managers and investment banks. The company draws strength from its flexibility to tailor products to fit client’s specific interests. It provides detailed macro-economic forecasts, scenario analysis and timely assessments of how specific major economic and political developments may affect a client’s areas of interest. At Centennial Asia Advisors, we tell it like it is. We have no vested interests, no need for a China wall, and no reason to skew our outlook any other way.

Economist

Malaysia: In a Middle-Income Trap of Low Growth Despite Sustained Fiscal Deficits

Malaysia: Imminent Political Realignments Raise Uncertainty over Electoral Outcomes

Malaysia: Local and Foreign Investors Are Fleeing Despite the Commodity Boom

12th Malaysia Plan: Lofty Aspirations, Lacklustre Capacity

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Centennial Asia Advisors

At Centennial Asia Advisors, we tell it like it is. We have no vested interests, no need for a China wall, and no reason to skew our outlook any other way. With over 30 years experience covering Asia’s political economy, you can be sure our conclusions and analyses are based on the unadulterated facts. Through years of fine-tuning our research methodologies, we deliver a quality of macroeconomic analysis few other houses can match.

Centennial Asia Advisors is an independent research and advisory firm that works with governments, multilateral institutions, financial firms and leading MNCs.

Economic Policy and Strategic Advisors

Macroeconomics

<ul style="list-style-type: square;">
<li>Despite the economic difficulties and the political constraints, Malaysia’s Finance Minister presented a well-crafted budget, with realistic assumptions and an appropriately expansionary fiscal stance. The quality of spending improved, with more money allocated to productive development spending while growth in emoluments was kept down. The budget also made provisions for downside risks with money set aside for contingencies.</li>
<li>In addition, the budget sent some positive signals for the longer term. A Fiscal Responsibility Act will be passed which will mandate prudence in future budget planning.</li>
<li>The disappointment was in the budget statement’s lack of commitment on structural challenges. Climate change was highlighted but the announced measures lacked bite. Neither were there measures to improve Malaysia’s narrow tax base, which will constrain its fiscal space. There was little indication of the government’s thinking on competitiveness, nor was there a strategy to tackle Malaysia’s dependence on low-wage migrant workers.</li>
<li>In short, the budget was good enough for the immediate needs of the economy. Longer term issues will only be tackled once the elections are over and if a government with a strong majority emerges.</li>
</ul>


Despite the economic difficulties and the political constraints, Malaysia’s Finance Minister presented a well-crafted budget, with realistic assumptions and an appropriately expansionary fiscal stance. The quality of spending improved, with more money allocated to productive development spending while growth in emoluments was kept down. The budget also made provisions for downside risks with money set aside for contingencies.
In addition, the budget sent some positive signals for the longer term. A Fiscal Responsibility Act will be passed which will mandate prudence in future budget planning.
The disappointment was in the budget statement’s lack of commitment on structural challenges. Climate change was highlighted but the announced measures lacked bite. Neither were there measures to improve Malaysia’s narrow tax base, which will constrain its fiscal space. There was little indication of the government’s thinking on competitiveness, nor was there a strategy to tackle Malaysia’s dependence on low-wage migrant workers.
In short, the budget was good enough for the immediate needs of the economy. Longer term issues will only be tackled once the elections are over and if a government with a strong majority emerges.


Malaysia’s Budget 2022: Longer-Term Challenges Remain Unaddressed