MONEY MASTER

Malaysian equities  edged higher on Thursday , while the ringgit held steady after  Bank Negara Malaysia  kept interest rates unchanged, reinforcing confidence in the country’s growth outlook. The  FTSE Bursa Malaysia KLCI  climbed about  0.6% , leaving the benchmark just shy of a  seven-year high , as investors welcomed the central bank’s steady hand. The ringgit traded at  4.0420 per US dollar , remaining one of Asia’s strongest currencies after rising nearly  0.5% month-to-date  and gaining  9% in 2025 . BNM held the  overnight policy rate at 2.75% , as widely expected, and projected economic growth at the  upper end of its outlook range , underscoring resilience supported by strong domestic demand and  record-high trade performance in 2025 . The upbeat fundamentals have eased pressure on policymakers to deliver further rate cuts. Analysts noted the central bank struck a balanced tone. ANZ economist Krystal Tan sai...

Key Takeaways CBO cuts tariff-savings estimate by US$1 trillion , highlighting fiscal strain. Tariffs now expected to reduce deficits by  US$3 trillion  over 2025–2035 —  less than the US$3.4 trillion cost  of Trump’s tax cuts. Revision reflects  lower tariff rates , data updates, and bilateral trade deals. US deficit remains entrenched at  ~US$1.8 trillion , debt on track to break historic records. Tariff revenue assumptions may change if Trump proceeds with  US$2,000 dividend checks . A Supreme Court ruling against tariff hikes could further weaken revenue outlook. The US Congressional Budget Office (CBO) has sharply downgraded its estimate of federal budget savings from President Donald Trump’s sweeping tariff hikes, cutting the projected benefit by  US$1 trillion  and raising fresh questions about America’s long-term borrowing trajectory. In a Thursday update, the nonpartisan agency said higher customs duties are now expected to reduce cu...

 Market Snapshot STI : 4,241.61 (-0.35%) Volume / Value : 78.17M / S$90.33M Advancers / Decliners : 58 / 84 Singapore equities opened softer on Tuesday, tracking Wall Street losses overnight as investors brace for  Nvidia’s earnings  midweek and watch inflation data to gauge the Federal Reserve’s next policy move. Global Highlights Wall Street Slips Ahead of Nvidia Earnings Dow Jones: -0.8% to 45,282.47 S&P 500: -0.4% to 6,439.32 Nasdaq: -0.2% to 21,449.29 US stocks eased after Friday’s Fed-fuelled rally, with investors cautious ahead of Nvidia’s Q2 earnings on Wednesday and the Fed’s  preferred PCE inflation data  on Friday. Powell’s dovish Jackson Hole remarks lifted September rate-cut odds to  86% (CME FedWatch) , but sticky inflation could derail expectations. Trump Removes Fed Governor Cook In a move rattling markets, President  Donald Trump dismissed Fed Governor Lisa Cook , citing alleged mortgage fraud. The unprecedented dismissal raises qu...

  FBM KLCI Rises as Regional Peers Struggle Malaysia’s benchmark index, the  FBM KLCI , rose 0.33% to close at  1,590.24 , outperforming most regional markets as broad-based buying supported sentiment. Despite a mixed broader market—503 gainers versus 490 losers—the upward momentum has encouraged optimism, with  Rakuten Trade  projecting the index could extend gains to  1,620  if current momentum continues. Investor sentiment was buoyed by developments in international diplomacy, including President Trump’s initiative to mediate between  Russia and Ukraine , offering a slight geopolitical reprieve. Malaysia’s Macro Outlook Remains Constructive CIMB  economists  Vincent Loo  and  Azri Azhar  forecast  Malaysia’s GDP growth at 4.3% in 2025 , supported by: Resilient household spending Continued growth in  private investment Strength in the  electrical and electronics (E&E)  sector Recovery in  tou...

Effective Date and Scope The U.S. will implement  higher tariffs on dozens of nations effective Aug. 7 , following an executive order signed by President Trump. The move ends the temporary pause granted in April to allow for negotiations and gives U.S. Customs time to update the Harmonized Tariff Schedule. Tariff Structure Major Economies:  15% tariffs on the European Union, Japan and South Korea. Small Deficit Nations:  15% tariffs also applied to countries where the U.S. runs a small trade gap. Trade Surplus Nations:  10% tariffs imposed on partners where the U.S. runs a surplus. Southeast Asia:  Indonesia and the Philippines face 19%; Vietnam at 20%. China-Linked Goods:  Items containing Chinese content may face  higher unspecified levies . Market Implications The across-the-board hike signals a  broad-based protectionist shift , with potential ripple effects on  global supply chains and emerging-market exports . Southeast Asian exporters ...

Prime Minister Datuk Seri Anwar Ibrahim announced a massive  RM611 billion allocation  for the  13th Malaysia Plan (RMK13)  covering 2026–2030, with  RM430 billion set aside for development expenditure  to drive sustainable growth. Key Highlights: RMK13 aims to position Malaysia as a  high-income, globally competitive nation . The plan will emphasize  artificial intelligence (AI)  and promoting  ‘Made in Malaysia’ products  to boost economic competitiveness. The five-year theme,  Melakar Semula Pembangunan  (Redesigning Development), focuses on  value creation across all sectors . Strategic Goals: Build on the  Ekonomi MADANI framework  to raise growth potential and improve living standards. Pivot away from reliance on primary production toward  innovation and value-added industries . Tackle poverty and inequality to ensure growth benefits all Malaysians. Economic Outlook: GDP growth is projected at...

As geopolitical tensions and trade fragmentation rattle global markets,  Malaysia is fast emerging as a bright spot for investors seeking stability and sustainable growth , according to Franklin Templeton Institute strategist Christy Tan. Malaysia’s Strengths: 2Q25 GDP:  +4.5% YoY, driven by a  5.3% services boom  and  3.8% infrastructure expansion . Fiscal reforms:  Expansion of the Sales & Services Tax and rationalised electricity tariffs bolster public finances without hurting growth. Strategic positioning:  Digitisation, sustainability initiatives and the Johor-Singapore Special Economic Zone (SEZ) are turning Malaysia into a  regional trade diversification hub . Investor Insight:  Despite RM11 billion in foreign equity outflows in early 2025 due to global trade tensions, Malaysia’s  high-dividend defensive sectors  tied to infrastructure and digital transformation continue to attract interest. Asia’s Adaptive Edge India: ...

Hong Kong's Fiscal Plan & Economic Adjustments Hong Kong government to cut 10,000 civil servant jobs  over the next two years,  freezing public sector wages to curb spending. Financial Secretary Paul Chan announced a focus on economic integration with China , aiming to  drive growth amid property market struggles and trade uncertainty. New spending cuts include a 7% reduction in regular expenditures  over three years due to declining land sales revenue. Property Market & Stimulus Measures Stamp duty reduction for homes valued up to HK$4 million (previously HK$3 million). Developer stocks surged: China Overseas Land & Investment (+8.4%) Sun Hung Kai Properties (+3.1%) Hang Seng Index jumped 4.1% , hitting a  three-year high  on market optimism. Innovation & Revenue Generation Efforts HK$1 billion pledged to an AI research center  to promote innovation. HK$10 billion fund  created to invest in  emerging industries . Exploring re...

Bank of Japan (BOJ) policymakers, during their landmark decision to increase interest rates last month, considered additional rate hikes, according to a summary of the discussion released on Thursday. This hawkish shift has contributed to recent global market turmoil. Key Highlights: Potential Rate Increases: One policy board member suggested the central bank should eventually raise its policy rate to around 1% or higher, marking the first time a BOJ policymaker has specified a potential endpoint. July 31st Decision: The BOJ raised its short-term policy target to 0.25%, the highest in 15 years, from a zero-to-0.1% range, and outlined a plan to taper its massive asset purchases, signaling a shift from a decade-long stimulus program. Global Impact: The rate hike and subsequent comments from BOJ Governor Kazuo Ueda about potential further increases, coupled with signs that the Federal Reserve might cut US rates, caused a spike in the yen and contributed to global market volatility. Boar...

China's manufacturing activity dropped to its lowest in five months in July, reflecting the struggles of factories dealing with declining new orders and reduced prices, according to an official survey released on Wednesday. The National Bureau of Statistics (NBS) reported the purchasing managers' index (PMI) at 49.4, slightly down from 49.5 in June and below the 50-mark that indicates growth, though marginally above the Reuters poll forecast of 49.3. Key Highlights: Continued Contraction: The PMI contracted for the third consecutive month, signaling ongoing challenges for China's $18.6 trillion economy, which saw slower-than-expected growth in Q2. Demand and Prices: Both new orders and new export orders sub-indices contracted again in July. Employment and factory gate prices also remained negative. Economic Sentiment: Domestic demand is weakening, and external trade tensions are impacting sentiment among manufacturers. Policy Response: There are signals from Chinese lea...

UK mortgage approvals remained steady in June, signaling a stable housing market despite the highest interest rates in 16 years. Key Takeaways: Mortgage Approvals: The Bank of England (BOE) reported that 60,000 new mortgages were approved in June, similar to the 60,100 approvals in May. This marks the strongest level in 1½ years. Lending on Properties: Total lending secured on properties rose to £2.7 billion (RM16.17 billion) from £1.2 billion the previous month. Market Stability: The UK property market has shown resilience, picking up pace in recent months after a slight dip last year. This stability defies forecasts of a sharp drop in prices expected due to increased mortgage costs. Interest Rates and Home Buyer Confidence: The BOE is considering when to lower interest rates, which could further boost confidence among home buyers. Industry Insights: Nathan Emerson, CEO of Propertymark, noted that the housing market's momentum has sustained itself. He expressed optimism that ...

Indonesia has adjusted its 2025 budget deficit projections, indicating a smaller shortfall than previously estimated. This update provides key insights for those interested in global markets and the economy. Key Updates: Budget Deficit Adjustments: New Target Range: The 2025 budget deficit is now projected to be between 2.29% and 2.82% of GDP, lower than the previous lower estimate of 2.45%. Revenue Strategies: Indonesia plans to boost state revenues by expanding the tax base and optimizing fiscal incentives. Additionally, streamlining energy subsidies will free up more funds. Economic Impact: Investor Confidence: Keeping the deficit below the legal limit of 3% of GDP aims to reassure investors, particularly as President-elect Prabowo Subianto prepares to implement new initiatives, such as a US$4.3 billion free meal project. Debt Ratio Target: Lawmakers approved a target debt ratio of 37.82%-38.71% of GDP for 2025, improving from roughly 39% this year. This move indicates a commitm...

Finally some good news after so many uncertainties surrounding Malaysia's 1MDB. The $9.4 billion (RM40.4 billion) debt is one of the biggest financial scandal in the country. Prime Minister Najib Razak has been criticized heavily both by Opposition party and within UMNO, especially by former Prime Minister Tun Mahathir but he has persevered on...the result: a reduction of the billion of debt. Prime Minister Najib Razak has pleaded for patience from all parties and to give 1MDB til end of last year (2015) to settle the huge debt and on Thursday, 31st December 2015, Prime Minister Najib Razak said that 1Malaysia Development Bhd. will trim its debt by 40.4 billion ringgit ($9.4 billion) once it completes agreed asset sales, after the state-owned fund announced its latest asset-disposal pact.  Photos credit to http://1mdb.net/ 1MDB said earlier Thursday it would sell a 60 percent stake in a Kuala Lumpur project known as Bandar Malaysia Sdn. to a joint venture between Iskandar W...