Views

The latest economic data for Malaysia were mixed. Wholesale trade and domestic-oriented manufacturing production for July were resilient, consistent with the positive industrial production growth. However, the external sector remained weak as the latest exports for August fell at a steeper pace of 18.6% (July: -13.0%), dragged by softer demand from key trade partners. Going …

Monthly Review: Global risk-off sentiment drives local yield upsurge Read More »

Malaysia’s economy registered moderate growth of 2.9% in 2Q2023 (1Q2023: 5.6%), presaged by weaker performance of the external sector. Sustained economic expansion over two consecutive quarters has kept growth on track towards the official year-end gross domestic product (GDP) target of 4%-5%. Private consumption and recovering tourism activities remained key drivers, offsetting the weaker external …

Monthly Review: Improvement in foreign inflows into Malaysia’s markets Read More »

Malaysia’s latest exports in June fell by 14.1% (May: -0.9%), as exports to the US and EU slumped by double-digits of 19.0% and 21.8%. The weaker external sector performance in 2Q2023 reinforced our views of weaker domestic gross domestic product (GDP) growth for the quarter. A sustained trade moderation coupled with higher interest rates in …

Monthly Review: Monetary policies in transition could lead to bond market volatilities Read More »

The latest retail and exports data suggest a slower domestic economy in the second quarter of 2023 is imminent given the anticipated slowdown in the global economy. Notably, the second straight month of moderation in the seasonally adjusted volume index of wholesale & retail trade (April: 4.7%, Mar: 9.4%) along with interest rate tightening and …

Monthly Review: Monetary policy divergence exerts pressure on bond market Read More »

The local bond market saw the fifth consecutive month of net foreign inflows at RM3.0 billion in May, higher than the RM1.5 billion recorded in the prior month. The solid foreign demand reflected the attractiveness of local bonds amid the anticipated moderation in inflation this year. Local govvies continued to attract foreign interest with net …

Monthly Review: Easing inflation and potential peak in OPR to support bond market Read More »

April saw a fourth straight month of net foreign inflows into the local bond market, albeit at a softer pace of RM1.5 billion compared to RM6.6 billion in March. Foreign investors continued to pour into local govvies (Apr: RM1.4 billion; Mar: RM7.9 billion), while net foreign flows in local corporate bonds turned positive at RM90 …

A buoyant bond market on conducive indicators Read More »