The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
Mortgage rates in the US have risen to their highest levels since July, potentially dampening homebuyer activity amid already elevated home prices.
The average rate on a 30-year fixed mortgage hit 6.84% this week, up from 6.785% the previous week, according to Freddie Mac. This is the highest rate in four months and comes close to the 7.29% average recorded a year ago during the same period.
Despite the Federal Reserve cutting interest rates twice since September, US treasury yields have surged in response to strong economic data and concerns over potential inflationary effects from policies proposed by President-elect Donald Trump, such as higher tariffs on imports and mass deportations.
Mortgage rates closely follow the 10-year Treasury note, which has been affected by these economic conditions.
The rise in mortgage rates, combined with high home prices, is expected to sideline many potential buyers in the near term, adding further uncertainty to the housing market.
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