KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Economists at UOB and RHB Bank Singapore have lowered their inflation forecasts for Singapore in 2025, while Maybank and DBS maintained their outlooks amid easing price pressures and ongoing global uncertainties.
UOB’s Jester Koh revised his 2025 core inflation estimate to 0.6% and 2026 to 1.1%, while RHB’s Barnabas Gan and Laalitha Raveenthar cut their full-year headline and core forecasts to 1.2% and 0.9% respectively. Both moves follow June’s core inflation holding steady at 0.6% y-o-y, below Bloomberg consensus and UOB’s earlier forecast.
By contrast, Maybank Securities’ Chua Hak Bin and Brian Lee Shun Rong held their 2025 core inflation at 0.5% and headline at 0.8%, citing a resilient domestic outlook despite tariff risks. DBS Research’s Chua Han Teng kept his forecast within the Monetary Authority of Singapore’s (MAS) official range, projecting 1.0% headline and 0.8% core inflation for 2025.
MAS Policy Outlook: July vs October
Economists expect MAS to keep policy steady in July but leave the door open for easing in October. UOB’s Koh flagged that both domestic and external indicators support a policy shift, but with 1H2025 growth outperforming and limited export payback so far, MAS may adopt a “wait-and-see” approach.
RHB expects inflation to “remain tame” due to weaker demand-pull pressures and the potential for a 2H2025 slowdown, despite GDP growing 4.2% y-o-y in 1H2025. They also forecast MAS to widen the S$NEER policy band to 3.0% from 2.0% in July to allow more flexibility in currency management.
Drivers and Risks
Cost-push moderation: Food and transport prices fell in June, pointing to weaker cost pressures.
Tariff risks: Higher reciprocal tariffs post-August 1 could weigh on manufacturing and trade.
Energy volatility: Lower energy prices support subdued inflation, though geopolitical shocks remain a risk.
Manufacturing resilience: June output rose 8% y-o-y, but economists warn of a slowdown in 2H2025 as tariff impacts kick in.
Maybank maintains a 3.2% GDP growth forecast for 2025 and expects MTI to upgrade its projection range once final 2Q data is released in August.
“Despite stronger 1H growth, lingering global uncertainties and soft demand pressures suggest a more subdued inflation environment ahead,” said RHB’s Gan and Raveenthar.
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