MONEY MASTER

Quick Summary Investment commitments rose , but  job creation fell to the lowest level since at least 2006 AI, electronics and manufacturing dominated new investments China emerged as a major investment source , while the US share dropped sharply The shift highlights  capital-intensive growth over labour-intensive expansion What’s Happening Singapore is pulling in  larger and more capital-heavy investments , yet generating  fewer jobs  in return. According to the annual review by  Singapore Economic Development Board , projects committed last year are expected to create just  15,700 jobs over the next five years  — the  lowest projection in nearly two decades . At the same time, these projects are forecast to deliver  S$18 billion in value-added per year  once fully realised, also the weakest outcome since 2021. Investment Keeps Growing Despite softer employment outcomes: Fixed-asset investment commitments reached S$14.2 billion in ...

Record-High RM163.6 Billion Poured into Malaysia’s Digital Sector Digital investments in Malaysia more than tripled to RM163.6 billion in 2024 , up from RM46.8 billion in 2023. Government's push into AI and advanced computing  played a key role in attracting capital. Malaysia Digital Economy Corporation (MDEC)  led efforts in collaboration with other government agencies. Data Centres and Cloud Infrastructure Dominate Investment Landscape 76.8% of total approved digital investments went into data centres and cloud infrastructure . Malaysia has  established a Data Centre Task Force  to ensure growth aligns with sustainability goals. Foreign Direct Investment (FDI) Breakdown Singapore : RM57 billion (largest contributor). United States : RM23 billion. China : RM12 billion. Australia : RM2.6 billion. India : RM2 billion. Domestic Direct Investments Concentrated in Klang Valley Klang Valley : RM136 billion. Johor : RM22 billion. Penang : RM3 billion. Sabah : RM423 million...

Bank Reverses Expansion Plans in China’s Digital Wealth Market HSBC is cutting nearly half of its workforce at Pinnacle, its China digital wealth business , with around  900 job reductions , sources told  Reuters . Pinnacle, launched in  2020 , was meant to drive HSBC’s digital insurance and fund sales in China. The  cost-saving move highlights the challenges HSBC faces in growing its China business amid a broader restructuring push . Cost Review & Workforce Reduction HSBC  reviewed Pinnacle’s staff compensation and supplier expenses last year , finding a sharp increase in costs outpacing revenue. More than 500 insurance agents  have already left since June 2024 as the bank scaled back operations. The  layoffs will affect 100 staff at Pinnacle’s fintech unit , while another  300 will be reassigned within HSBC China . HSBC’s China Strategy & Restructuring HSBC has  long positioned China as a key growth market , committing  $6 bill...

  Malaysia’s Position as a Top Investment Hub Malaysia continues to attract  significant foreign investments , with nearly  RM20 billion  in commitments identified from the  US and Europe , according to the  Investment, Trade, and Industry Ministry (MITI) . Leading global corporations, including  Intel, Amazon Web Services, Oracle, Google, and Plexus , are expanding their investments, solidifying Malaysia’s status as a prime business destination for over  600 US companies . Balancing US-Europe Trade with BRICS Membership Malaysia officially joined BRICS on Jan 1, 2025 , but  maintains strong ties with traditional partners  in the US and Europe. BRICS offers Malaysia new trade opportunities , particularly with non-FTA countries such as  Russia, Brazil, South Africa, and India . The move is expected to  broaden market access, enhance trade relations, and strengthen Malaysia’s global economic position . Trade Growth with US & ...

Local institutional investors sustained their buying momentum on  Bursa Malaysia  for the  ninth consecutive week , recording net equity purchases of  RM1.05 billion  last week, up from  RM995.5 million  the prior week, according to MIDF Research. Key Insights Foreign Investors : Continued to exit the market with a  net outflow of RM1.07 billion , marking another week of selling. Sector Trends : Highest Net Foreign Inflows : Property (RM42.6M), Technology (RM40.2M), Plantation (RM29.4M). Highest Net Foreign Outflows : Financial Services (-RM500.5M), Healthcare (-RM168.9M), Utilities (-RM160.5M). Retail Investors Return to Buying After four weeks of net selling, local retail investors turned net buyers with  RM13.8 million  in net purchases. Regional Context Asia-Wide Trend : Foreign investors recorded  US$4.7 billion  in net outflows across eight Asian markets, a 2.6x increase from the previous week. Key Contributors : Taiwan :...

Foreign investors sold off Malaysian equities for the third consecutive week, though the pace of outflows slowed to RM45.7 million , according to a report from MIDF Research on Monday. The outflows were driven by large sell-offs at the start and end of the week, with foreign investors selling RM147.9 million worth of equities on Monday and RM216.6 million on Friday. However, this was offset by net inflows from Tuesday to Thursday , ranging from RM44.4 million to RM70.2 million . The consumer products and services sector saw the highest net foreign inflows at RM98.0 million , followed by property at RM31.8 million , and plantation at RM23.7 million . In contrast, financial services experienced the largest net outflows at RM184.5 million , followed by transportation and logistics at RM48.0 million , and healthcare at RM44.0 million . Local institutional investors continued to show support, marking their fifth consecutive week of net buying , with a total of RM93.4 million . ...

  Malaysian bonds are drawing significant unhedged foreign investments, leading to a strong rally in the ringgit, which is Asia's best-performing currency this year. In August, global funds invested RM8.1 billion in Malaysian government bills and bonds, the largest inflows since July 2023, driven by expectations of ringgit appreciation. Key Highlights: Surge in Unhedged Investments : The increased demand for Malaysian bonds has largely been unhedged, which means investors are not taking protective measures against currency fluctuations. This has amplified the ringgit's 6% gain in August as foreign funds flow into the country. Attractive Returns and Economic Outlook : An unhedged Bloomberg index of Malaysian bonds provided a total return of 9.74% for dollar-based investors this quarter, the highest in emerging Asia, compared to a 1.7% return for a hedged index. Malaysia's improving economic prospects, including stable inflation, adherence to fiscal deficit targets, and polit...