MONEY MASTER

China's manufacturing sector experienced a significant contraction in September, with factory activity shrinking as both domestic and international demand cooled. The Caixin/S&P Global manufacturing PMI dropped to 49.3 , down from 50.4 in August, missing analysts' forecasts of 50.5 . This marked the lowest reading since July 2023 and indicates a sharp decline in new orders, impacting factory owners' confidence , which is now near record lows. Despite aggressive government efforts to stimulate economic growth , including lowering interest rates and increasing banking liquidity , new orders—both domestically and abroad—fell sharply. The sub-index for new orders hit its lowest point in two years , signaling weakening demand. Foreign demand also declined at the fastest pace since August last year, with manufacturers attributing the drop to deteriorating global trade conditions. The United States' tariffs on Chinese products, including electric vehicles (EVs) , a...

As expected, the meeting today had an outcome...Bank Negara Malaysia decided to raise the Overnight Policy Rate (OPR) to 3.25%. The 25 basis points increase is the first in 3 years and has been expected by the market. The floor and ceiling rates of the corridor for the OPR has increased to 3% and 3.5% respectively. The Monetary Policy Committee believes that the country economy is going for a steady growth part. As to inflationary pressures, it said inflation has been relatively stable as the effects of the price adjustments for utilities and energy continue to moderate. Demand driven inflation remains contained. “Looking ahead, inflation is, however, expected to remain above its long-run average due to the higher domestic cost factors.” The increased in OPR will eventually effect commercial banks' Base Lending Rate. It will be interesting to see how the effect will impact the household in the country.