MONEY MASTER

Market  Snapshot The  United  States  has  opened  a  Section 301  investigation  into  Malaysia ,  focusing  on  alleged  excess  production  capacity  in  electronics,  machinery  and  steel  industries . The  probe,  launched  by  the  Office  of  the  United  States  Trade  Representative ( USTR)   on  March 11 ,  is  part  of  a  broader  effort  by  the  Trump  administration  to  address  trade  imbalances  and  potentially  reinstate  tariffs  on  foreign  imports . Malaysia  is  among  16  economies  under  investigation ,  including  China,  Japan,  India,  Singapore,  Vietnam,  Taiwan  and  the  European  Union ,...

  Malaysia’s manufacturing sector slipped back into contraction in February, while global markets reacted to escalating tensions in the Middle East following US and Israeli strikes on Iran. Key Takeaways Wall Street volatile after US–Israel strike on Iran Bursa Malaysia slumps with over 1,000 stocks in the red Malaysia PMI falls to 49.3, back below 50 contraction line Stocks in focus: Optimax, Dagang NeXchange, OMH and others US Market Recap: Oil and Gold Surge on Geopolitical Tensions Nasdaq Composite  rose 0.36% to 22,748.86 S&P 500 Index  ed ged up 0.04% to 6,881.62 Dow Jones Industrial Average   slipped 0.15% to 48,904.78 Markets initially dropped after US and Israeli forces launched coordinated strikes targeting Iran’s alleged nuclear and missile facilities. Iran retaliated with missile attacks on Israel and US-linked targets in the region. Oil prices jumped as much as 12% before easing: West Texas Intermediate crude traded at US$72.54 per barrel. Safe-haven...

China’s factory sector extended its decline in October, marking the  longest manufacturing slump in nearly a decade  as economic headwinds deepen in the year’s final quarter. Manufacturing Weakens Further The  official manufacturing PMI fell to 49  in October from  49.8  in September — below the 50 mark that separates growth from contraction. This also missed economists’ expectations of  49.6 , according to Bloomberg. The  non-manufacturing PMI , covering construction and services, edged up slightly to  50.1 , suggesting only marginal improvement outside the factory floor. Analysts attributed part of the weakness to the  extended eight-day national holiday , which reduced working days. “Manufacturing firms’ production and market demand both fell,” said Huo Lihui, a statistician at the National Bureau of Statistics (NBS). Trade Relief Offers Only Temporary Boost The decline came just as  US President Donald Trump  and  Pres...

Singapore’s economy expanded  2.9% year-on-year in the third quarter , slower than the  revised 4.5% growth  recorded in the previous quarter, but still  ahead of economists’ expectations  of 1.9%, according to advance estimates from the  Ministry of Trade and Industry (MTI) . Manufacturing Stalls Amid Tariff Pressures Growth was dampened by  weak manufacturing activity , which was  unchanged from a year earlier  after rising 5.0% in the second quarter. The slowdown reflects the ongoing impact of  U.S. tariffs on Singapore’s exports  and ripple effects across regional supply chains. Non-oil domestic exports fell for a  second consecutive month in August , as earlier front-loading of shipments ahead of tariff hikes faded. Although the  10% U.S. tariff  on Singapore’s goods is among the lowest in Asia, the city-state’s  export-driven economy  remains highly exposed to external headwinds, especially in  ph...

Key Takeaway: China’s manufacturing sector showed signs of stabilization in June, driven by improved domestic demand following the  temporary US-China tariff truce . The latest  Caixin PMI print of 50.4  beat expectations and marked the first return to expansion territory in three months. What You Need to Know: Caixin Manufacturing PMI (June): Actual:  50.4 Forecast:  49.3 Prior:  48.3 First post-truce reading; signals moderate recovery in private manufacturing activity. Survey Details: Conducted by  Caixin and S&P Global , this index focuses on  small- and medium-sized, export-driven firms . Contrasts with the  official PMI , which remains below 50, reflecting persistent caution in larger SOEs. Macro Context: In  mid-May , Beijing and Washington agreed to a  90-day reduction in tariffs , reviving trade flows. Supply chains showed improvement, while domestic demand picked up — though  external demand remains weak . Economis...

China’s Industrial Slowdown Deepens China’s industrial profits  fell 9.1% in May , the steepest drop since October, as new  US tariffs bite  and  deflationary pressures persist . This reversed a modest gain earlier in the year and signals ongoing stress in the world’s second-largest economy. Key Stats: Industrial profits YTD are down  1.1% . May profit contraction occurred  despite 5.8% growth in output . Total profits at  2.72 trillion yuan  are  20% below 2021–2022 levels . What’s Driving the Weakness? Trump’s tariff policies are  hitting exporters hard . Deflation is weighing on prices and margins. Investment and hiring outlook dims due to weak confidence. MoneyMaster Take — Key Insights: Tariffs are dragging down China’s manufacturing sector , threatening global supply chains. Government subsidies for equipment upgrades  are cushioning the blow — but not reversing it. Markets should brace for more stimulus  from Beijing to ...

The Malaysian manufacturing sector recorded its sixth consecutive month of contraction , with the S&P Global Manufacturing PMI falling to 49.2 , the lowest reading in seven months, according to MIDF Amanah Investment Bank Bhd (MIDF Research) . Key Highlights Sector Weaknesses New Orders : Experienced the sharpest decline in seven months , reflecting weak domestic demand. Output and Inventory Levels : Declined further, indicating broad-based challenges. Backlogs of Work : Stabilized, reaching a four-month high , due to limited production capacity. Export and Supply Chain Trends Export Orders : Showed growth, likely driven by rising demand in the Asia-Pacific region . Supply Chain Disruptions : Persisted for the seventh consecutive month , worsened by the Red Sea crisis , causing longer delivery times. Cost Pressures Higher Commodity Prices and the weaker ringgit drove up costs, though input price inflation eased to a nine-month low. Employment and Business Confidence Employment...

Malaysia's producer price index (PPI) , which tracks price changes of goods at the producer level, declined by 2.1% year-on-year in September, marking a downturn after seven consecutive months of growth , according to the Department of Statistics Malaysia (DOSM) . Chief statistician Datuk Seri Dr. Mohd Uzir Mahidin attributed the biggest decline to the mining sector , which saw a 16.1% drop (August: -8.3%), driven by reductions in the extraction of crude petroleum (-18.6%) and natural gas (-7.9%) . The manufacturing sector also contracted, falling 1.5% (August: +1.0%), largely due to a steep decline in the manufacture of coke and refined petroleum products (-18.7%) . In contrast, the agriculture, forestry, and fishing sector grew by 5.8% (August: 2.7%), with a notable increase in the growing of perennial crops index (11.2%) . Utility sectors also showed positive growth, with the water supply index rising 7.8% and the electricity and gas supply index inching up by 0.3% . ...

Malaysia's manufacturing sector experienced further easing in September, with production levels moderating and new order growth remaining tepid, according to the latest report from S&P Global . The seasonally-adjusted Manufacturing Purchasing Managers’ Index (PMI) fell to 49.5 in September, down from 49.7 in August. A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signifies contraction. Usamah Bhatti, an economist at S&P Global, noted that economic growth in the third quarter has continued along a trajectory similar to that observed in the second quarter. “Sentiment stayed positive, with firms expecting higher output in the coming year,” he stated. Economic Context and Factory Activity Trends Malaysia's economy accelerated with a 5.9% growth in the second quarter compared to the previous year, driven by stronger household spending, business investments, and exports. However, factory activity has now declined for the ...

The sales value of Malaysia's manufacturing sector reached RM157.1 billion in July 2024, reflecting a 9.1% year-on-year increase and marking the highest growth rate since February 2023, according to the Department of Statistics Malaysia (DOSM). Key Highlights: Strong Growth in Key Sub-Sectors : The increase was primarily driven by significant growth in the food, beverages, and tobacco sub-sector, which rose by 16.0%. Other notable contributors included electrical and electronics products, which grew by 8.2%, and the petroleum, chemical, rubber, and plastic sub-sectors, which increased by 6.2%. Month-on-Month Sales Growth : On a month-on-month basis, the sales value saw a 0.6% increase from RM156.1 billion in June 2024, following a 0.8% rise in the previous month. The robust performance of Malaysia's manufacturing sector reflects positive momentum, supported by growth in diverse sub-sectors.

The Federation of Malaysian Manufacturers (FMM) has forecasted “optimum growth” for Malaysia's manufacturing sector in the second half of 2024 (2H2024), fueled by favorable domestic policies and robust global demand. Key indicators such as business activity and production volumes suggest a positive outlook, according to FMM president Tan Sri Datuk Soh Thian Lai, who presented findings from the 25th edition of FMM’s Business Conditions Index survey. Key Takeaways: Positive Export Outlook : Malaysian manufacturers expect a continued rebound in exports during 2H2024, with the export index rising by 11 points to 100, while domestic sales are projected to increase modestly by three points to 95. The FMM has revised its forecast for Malaysia’s GDP growth to 5.1% (up from 4.1%), driven by strong export performance, higher private consumption demand, and increased investments. Improved Manufacturing Performance : The sector grew by 1.9% year-on-year in 1Q2024, accelerating to 4.7% in 2Q202...