KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Forecast Cut on Softer Price Trends
CGS International has revised Malaysia’s 2025 inflation forecast to 1.6%, down from its earlier 2% projection. The adjustment follows August’s 1.3% year-on-year CPI increase, which was in line with expectations.
Limited Impact from Fuel Price Adjustment
The brokerage expects muted price pressure from the RON95 fuel price adjustment effective September 30, given the generous 300-litre monthly quota per consumer. While this limits the inflation impact for households, CGS noted that businesses and high-volume fuel users may face higher costs if excluded from subsidy reforms.
The firm estimates that partial fuel-cost pass-through could add 5–10 basis points to the CPI in October.
Consumer Offset Expected
On the upside, consumers benefiting from the new RON95 pump price of RM1.99 per litre could provide a larger offset, easing overall inflationary pressures. CGS highlighted that this downward effect from cheaper fuel for the general public may outweigh cost pressures from subsidy rationalisation.
Outlook
The house expects inflation to remain contained in the coming months, keeping price stability intact and limiting the drag on consumer spending.
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