Morning Brief

The Prime Minister and his cabinet attended a one day retreat to bolster consensus and solidarity among Ministers whilst discussing the future direction of the government and set KPIs for each ministry. Such a retreat appears imperative as the government comprises parties that contested against each other at GE 15. Additionally, with six state elections due this year, Anwar’s ministers will have t...

There are strong expectations that the average Chinese consumer will be back with a vengeance with the relaxation of Covid-19 restriction and the opening of borders effective January 8. But this reopening has not been without its headwinds as we have seen higher hospitalisation rates and also deaths in China. China remains a crucial market for categories geared toward consumers with higher incomes...

The Umno General Assembly concluded last Saturday where nearly 3,000 delegates convened and heard from party leaders on the future direction of the party. The biggest development was the passing of a resolution to not have the party’s top two positions open for contest in its upcoming election. But will this sit well with the grassroots and can this party recover from their poor performance at GE1...

The Malaysian government said it may consider a ban on exporting palm oil to the EU in response to the bloc’s latest law which bans imports of grown on deforested land including palm oil and its derivatives. Dr. Sathia Varqa, co-founder, Palm Oil Analytics tells us what this means for CPO prices and will such a ban work. Image credit: Shutterstock See omnystudio.com/listener for privacy informatio...

2022 was the era of the King Dollar led by the aggressive rate hiking cycle of 425 bps by the Fed. But there are expectations of the Fed being at the tail end of its hiking cycle and also supported by the modest inflation print for December. The Bloomberg dollar index is down 2% YTD. With this, we have seen Asia currencies appreciate across the board. What does this mean for the global currency ou...

Sri Lanka’s critical debt restructuring is facing further delays as China and India has yet to formally agree to a write-down of their loans. The IMF will not release the cash until China and India first agree to reduce Sri Lanka's debt and this would delay the bailout that Sri Lanka was supposed to get. We speak to Anushka Wijesinha of the think tank Centre for a Smart Future for some thoughts. I...

US inflation print was released yesterday where core inflation came in at 5.7%, which points to signs of interest peaking and reaching a point of stability. This may be the much needed inflection point for fixed income and drive interest in this asset class. With the era of the King Dollar likely behind us and we get closer to the terminal Fed Funds Rate will emerging market bonds outperform devel...

Since 1959, Malaysia has seen 14 single coalition simple majority governments until the fateful GE15 that resulted in a hung parliament for the first time in our history. And after what seemed like a very long 5 days from the time we voted, the political uncertainty ended with the country’s five major parties, PH, BN, GPS, GRS and Warisan agreed to a coalition government. But is a hung parliament...

The shortage of workers which is still plaguing many local industries. Recently, the Home minister said that employers applying for foreign workers from 15 countries will be able to get their applications approved within three days. This is limited to seven sectors and employers are now precluded from going through pre-conditional hiring qualification and quota eligibility. While this may be a wel...

At GE15, UMNO had its worst performance, winning just 26 seats. With that, at its General Assembly, how much soul searching will take place and will there be a leadership challenge? Dr Azmi Hassan, Senior Fellow of the Nusantara Academy of Strategic Research tells us what to expect. Image credit: Shutterstock See omnystudio.com/listener for privacy information.

2022 saw the selloff of most asset classes, no thanks to the Federal Reserve adopting a very hawkish monetary policy. And with the IMF warning that the global economy will slow in 2023, what are the investment opportunities and how important is it to stay invested?  This conversation is brought to you by Standard Chartered Malaysia. See omnystudio.com/listener for privacy information.

The prestigious Consumer Electronics Show (CES) in Las Vegas saw over 3,200 exhibitors from 173 countries showcasing their latest innovations. From Samsung’s bending display to a robot mechanised for elderly care and a slew of electric vehicles, the event is seen to highlight the tech trends that'll shape 2023 and beyond. The question is what innovations will see commercial value and perhaps be th...

At the opening ceremony for the 2023 legal year in Putrajaya, Chief Justice Tun Tengku Maimun Tuan Mat said that she welcomes improvements or amendments to the Judicial Appointments Commission Act 2009 to ensure it is completely independent of the executive body.  Dato' Mah Weng Kwai, Former Commissioner of SUHAKAM,  who also served as Judge at the Court of Appeal gives us his opinion on...

We have reports of train services being delayed and breakdowns are frequent while trains are often packed to the brim at peak hours. In response to this,  Prasarana Malaysia will spend a total of 2.8 billion ringgit to improve train and bus services which also replacing train equipment and increasing the number of trains and buses to improve frequency. But is this 2.8 billion ringgit allocati...

2022 was a challenging year for most asset classes but in this late cycle, what are the investment opportunities? Alessia Berardi, Head of Emerging Macro and Strategy Research at Amundi gives us her outlook including monetary policy direction for key central banks in light of the stubbornly high inflation. Image credit: Shutterstock See omnystudio.com/listener for privacy information.

Nothing is certain except death and taxes, famous last words by Benjamin Franklin which is a timely reminder to discuss what are the new taxes to be aware of in 2023. We check in with Dr Veerinderjeet Singh, Immediate Past President, Malaysian Institute of Accountants to find out whilst discussing tax reform that Malaysia needs as the tabling of Budget 2023 draws close. Image credit: Shutterstock...

Prime Minister Datuk Seri Anwar Ibrahim said his two-day official visit to Indonesia at the invitation of President Joko Widodo has met its objectives. Various issues were addressed including matters involving the economy and bilateral investments. Anwar also witnessed the exchange of nine MOUs involving Malaysian companies and also letters of intents. So how will Anwar improve bilateral relations...

Over the weekend, supporters of Brazil’s far-right former president Jair Bolsonaro invaded the country’s Congress, presidential palace and Supreme Court. Parallels are being drawn to the 6th January attacks in the US which then begs the question, how polarised is South America's largest economy and what precipitated these attacks? Questions we pose to Clara Ferreira Marques, Columnist at Bloomberg...

Dr. Oh Ei Sun, Principal Adviser, Pacific Research Centre gives us a run down of the political crisis taking place in Sabah after a majority of BN assemblymen led by Kinabatangan MP Datuk Bung Mokhtar, withdrew support from Chief Minister Datuk Seri Hajiji Noor on Friday. Image credit: Shutterstock See omnystudio.com/listener for privacy information.

With inflation increasing by 4% year-on-year and food inflation continuing to be the main driver in November, we ask Firdaos Rosli, Chief Economist, Bank Islam Malaysia on the likely response by BNM and how will this impact the lower income group and ailing businesses. Image credit: Shutterstock See omnystudio.com/listener for privacy information.

After three long years, checkpoints at the Hong Kong China border reopened yesterday. Businesses and residents are breathing a sigh of relief as the cost of separation has been huge. Natixis SA, an Investment Bank estimates Hong Kong’s economy lost $27 billion in potential growth. We speak to their economist, Gary Ng for an outlook. Image credit: Shutterstock See omnystudio.com/listener for privac...

The tragic landslide at Batang Kali last month highlighted the dearth of regulatory oversight on campsites and recreational venues in the country. With landslides becoming increasingly common especially after heavy rains, what should be included in these guidelines and how can the government better regulate outdoor activities without restricting business and leisure?  Image credit: Shuttersto...

Datuk Seri Anwar Ibrahim is set to meet the Sarawak Premier and the Sabah Chief Minister in their first meeting of the MA63 Implementation Action Council. But what is the federal government’s commitment to resolve MA63 issues? Ariff Adi Putera Anwar, Research Officer, Institute for Development Studies tells us whilst reminding us what the pending issues are. Image credit: Shutterstock See omnystud...

The appointment of the Speaker of the US House of Representatives is typically a formality; the party with majority seats in the house votes for their chosen candidate with relative ease. Yet, although Republicans have a slim majority in the House, holding 222 seats vs Democrats’ 212, they have been unable to build consensus around the party’s Speaker candidate, Kevin McCarthy. Public opinion poll...

Foreign direct investment (FDI) to Malaysia grew to a record RM861 billion at the end of 3Q23, with the US as the second largest investor contributing 12%. However with a global recession potentially on the horizon, will investors remain upbeat on Malaysia? Siobhan Das of AMCHAM weighs in on business sentiment among its members and their policy wishlist for the government. Image credit: Shuttersto...