Category: Trading

KUALA LUMPUR— Malaysia’s economy will be able to bounce back quickly, whether at a rate of 4.5 per cent this year or 6.5 per cent later, but only if the country gets the recovery plan right, said crisis management analyst Nordin Abdullah.

 

He reckoned that the country’s economic recovery will be fast when the economy fully reopens later.

 

“Malaysia is a massive exporter… Exports will grow once the global economy picks up.

 

“Now we see Europe’s economy picking up, while China and other parts of Asia are also starting to pick up,” he said on Bernama TV’s Midday Update programme here Friday.

 

The 30-minute discussion, which highlighted the country’s National Recovery Plan and the COVID-19 vaccine rollout, was hosted by Jessy Chahal.

 

The World Bank has revised down Malaysia’s Gross Domestic Product growth for 2021 to 4.5 per cent from six per cent earlier amid a dramatic resurgence of COVID-19 infections beginning in mid-April 2021.

 

The global bank said the recent spike in infections has raised concerns about the overall capacity of Malaysia’s health system while the impact of repeated lockdowns on households and companies is also a major worry.

 

According to the World Bank’s Malaysia Economic Monitor report, “Weathering the Surge”, released on Wednesday, the lower economic forecast reflected a slower pathway towards suppressing the pandemic and a slower-than-expected vaccine rollout.

 

Malaysia’s immediate priority must focus on the efficient and sustained management of the ongoing pandemic and its effects on individuals, households and firms, the report said.

 

 

Source: NAM NEWS NETWORK

KUALA LUMPUR— Malaysia hopes to see a shift in thinking on total emissions and on how to incentivise low-carbon practices in fuelling global green growth in the post COVID-19 world, said Foreign Minister Hishammuddin Hussein.

 

Speaking at the Asia and Pacific High-level Conference on Belt and Road Cooperation held online on Wednesday, he said in this regard, it is important for the partner countries to reshape the way they finance their recovery from COVID-19.

 

“A focus on the COVID-19 pandemic does not mean we should let the ball drop on other fronts.

 

“Now, we must turn a fresh and keen eye to green energy, infrastructure and financing to ensure our economic recovery is sustainable, ahead of the Conference of Parties (COP26) in Glasgow, Scotland, this November,” he said in speech text made available to the media.

 

Hishammuddin said this is where Malaysia is ready and willing to share its expertise in Islamic finance, which it believes will play an increasingly important role in fuelling global green growth, and also infrastructure development.

 

He pointed out that in 2017, Malaysia was the first country in the world to launch a new climate finance instrument, an Islamic bond called green sukuk, which the proceeds have been used to fund environmentally sustainable infrastructure projects.

 

“More recently in April, Malaysia successfully raised US$1.3 billion through the world’s first sovereign US Dollar Sustainability Sukuk.

 

“Investor confidence towards this instrument was so overwhelming that it was oversubscribed by 6.4 times,” he said.

 

Hishammuddin said Kuala Lumpur is home to the Islamic Financial Services Board (ISFB), which is the international standard-setting organisation for this emerging sector.

 

On COVID-19, he called for an enhanced cooperation from the Belt and Road Initiative (BRI) partner countries to ensure that all nations have sufficient vaccines.

 

“While wealthy nations in the Global North have the privilege of stocking up on vaccines many times their population numbers, countries in the Global South are struggling. As we know, we are only safe when all of us are safe,” he said.

 

 

Source: NAM NEWS NETWORK

KUALA LUMPUR— Malaysia’s diverse export destinations and products should help to mitigate the impact of a prolonged national lockdown through the end of June, Moody’s Investors Service said Wednesday.

 

Malaysia imposed the nationwide Movement Control Order (MCO 3.0) starting June 1 after daily cases hit 8,000.

 

From an initial two weeks, it was extended for another two weeks to end on June 28, 2021.

 

In its latest report, the ratings agency said the resurgence in coronavirus cases, along with low vaccination rates in the Asia Pacific (APAC), pose renewed risks to domestic demand, although the recovering global trade will support the region’s more export-oriented economies.

 

“Fresh movement restrictions to stem the spread of the virus will curb domestic demand and dampen consumer confidence.

 

“Meanwhile, vaccination rates are low in most parts of APAC, with only Maldives, Mongolia, Singapore and China having administered a first vaccine dose to at least 40 per cent of their populations,” said Nishad Majmudar, Moody’s assistant vice-president and analyst.

 

But in economies that are more export-oriented, including Vietnam (Ba3 positive), Taiwan, China (Aa3 positive) and Malaysia (A3 stable), large contributions from trade will compensate for weak domestic demand and bolster output – as long as coronavirus-related closures of factories and export-processing sites are limited.

 

Vietnam’s robust exports have helped its economy grow amidst the pandemic — its exports expanded eight per cent in the first quarter of 2021 (Q1 2021) compared with Q4 2020 on a seasonally adjusted basis.

 

Likewise, in Taiwan, exports grew eight per cent in Q1 2021 from Q4 2020 and 16 per cent from a year earlier, powering an 8.9 per cent surge in gross domestic product (GDP).

 

“Malaysia’s diverse export destinations and products should help to mitigate the impact of the extension of its national lockdown through the end of June.

 

“Moody’s forecasts a growth of 7.2 per cent, 4.2per cent and 5.3 per cent, respectively, for these economies,” it said.

 

Meanwhile, the rebound will be more tepid for economies that are also dependent on international tourism, such as Thailand (Baa1 stable).

 

Moody’s expects Thailand’s GDP to expand 2.8 per cent in 2021 — a relatively shallow pickup from a 6.1 per cent contraction in 2020, reflecting the lagged recovery in the tourism industry.

 

 

Source: NAM NEWS NETWORK

KUALA LUMPUR— Malaysia’s economy is projected to grow by 4.5 per cent in 2021 compared to an earlier forecast of 6.0 per cent, amid a dramatic resurgence of the COVID-19 infections beginning mid-April this year, said the World Bank.

 

According to its Malaysia Economic Monitor: Weathering the Surge report launched today, the recent spike in infections has raised concerns about the overall capacity of Malaysia’s health system and the effects of the ongoing cycle of opening and closing the economy on households and firms.

 

World Bank Group senior economist for macroeconomics, trade and investment Shakira Teh Sharifuddin said the ongoing pandemic and movement restrictions would have an impact on Malaysia’s economy in the near term.

 

“In the short term, the focus is on containing the pandemic and saving lives as well as livelihoods.

 

“Over the medium term, it is important to take the lesson learned from the pandemic and undertake strong measures such as rebuilding fiscal buffers and deepen as well as strengthen the social protection system,” she told a virtual media conference after the launch of Malaysia Economic Monitor – June 2021 Edition today.

 

In addition, the number of vulnerable households is likely to increase, said the report.

 

According to the report, Malaysia’s immediate priority must focus on the efficient and sustained management of the ongoing pandemic and its effects on individuals, households, and firms, while an effective find-test-trace-isolate-support strategy is essential to ensure a safe and gradual reopening of the economy and an easing of movement restrictions.

 

It added that protecting the lives and health of citizens – and thereby preventing further strains on the country’s health system – is vital to ensure a safe resumption of economic activities and prevention of a more protracted economic downturn.

 

Meanwhile, World Bank Group senior economist of finance, competitiveness and innovation Smita Kuriakose urged deep structural reforms in the medium to long term to ensure resilient post-pandemic recovery, led by the private sector.

 

She pointed out that Malaysian businesses were more vulnerable currently with less cash flow to withstand the present health crisis.

 

“This implies the fallout of the pandemic. We also have fiscal challenges and so the scarce public resources need to be channelled, such as the efficient reallocation of economic resources, where they can create the most value,” she said.

 

Source: NAM NEWS NETWORK

Taiwan said seven employees of its trade office in Hong Kong left the financial hub on Sunday after authorities there demanded they sign a pledge recognizing China’s sovereignty over the self-ruled island.

The move comes after both Hong Kong and Macau closed their trade offices in Taipei and as Beijing seeks to pile diplomatic and economic pressure on Taiwan.

Taiwan’s Mainland Affairs Council (MAC) said Hong Kong’s government had demanded its trade office staff sign a “one China pledge,” which supports Beijing’s view that the island is part of its territory.

Taiwan’s current democratically elected government views the island as a de facto sovereign state.

“China and Hong Kong government use the ‘one China pledge’ to set up barriers and affect the rotation of staff and normal operations of our office in Hong Kong,” Taiwan’s MAC said in a statement on Sunday.

“We firmly reject the irrational political suppression of forcing our staff to sign the ‘one China pledge,’ and condemn the Chinese and Hong Kong authorities over this.”

Seven staff members flew out of Hong Kong on Sunday, MAC deputy chief Chiu Chui-cheng said.

Just one Taiwanese employee is left in the office, although their visa runs out next month. The only remaining members will be local staff.

Chiu said that the pledge Hong Kong demanded staff sign also included a promise not to “interfere with Hong Kong’s affairs, nor to do or say anything that undermines Hong Kong’s stability and prosperity or that embarrasses the Hong Kong government.”

Taiwan is a major trading partner with both China and Hong Kong but relations between their governments are cratering.

Last month, Hong Kong suspended operations of its trade office in Taiwan.

It accused Taiwan of “grossly interfering” in the city’s affairs and causing “irretrievable damage” to relations.

Macau followed in shutting its office last Wednesday, saying it was having trouble getting visas for staff.

Both Hong Kong and Macau are semi-autonomous cities, but Beijing decides foreign policy and is ramping up direct control in both former colonies.

China had encouraged trade offices when relations were warmer with Taiwan.

But after the 2016 election of Taiwan’s President Tsai Ing-wen, Beijing cut official contacts and began a concerted pressure campaign.

Tsai’s government is also a vocal supporter of democratic principles and has quietly helped open its doors to some Hong Kongers trying to escape Beijing’s crackdown on dissent after huge democracy protests rocked the financial hub in 2019.

Hong Kong says that amounts to “interference.”

 

Source: Voice of America

​The Bangko Sentral ng Pilipinas (BSP) advocates the mainstreaming of sustainable finance as part of broader efforts to promote a resilient, inclusive, and low-carbon economy.

“The BSP and financial institutions play a crucial part in mobilizing funds to finance green and sustainable projects, and at the same time, in safeguarding financial stability from shocks coming from climate and other environment-related factors,” BSP Governor Benjamin E. Diokno said during the recent Climate Defenders meeting organized by the British Embassy.

Governor Diokno highlighted the BSP’s relevant initiatives, which included the adoption of the Sustainable Central Banking Program as one of its strategic priorities and the issuance of the Sustainable Finance Framework in April 2020.

The BSP has also strengthened governance on treasury activities and streamlined processes to allow for more bond issuances of BSP-supervised financial institutions and contribute to the growth of capital markets.

The BSP Governor said more than USD 1.0 billion and PHP 85.4 billion worth of green, social, and sustainability bonds have already issued by “first mover” banks since 2017.

“We expect more banks to follow suit as enabling regulations had been laid down complemented by continued capacity-building activities for the industry,” he added.

“All these initiatives will be more meaningful and effective as we strengthen collaboration with local financial sector regulators, key government agencies through the Green Force, and with our counterpart foreign regulators and supervisors at the Network for Greening the Financial System, the Association of Southeast Asian Nations (ASEAN), Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) and Alliance for Financial Inclusion,” Governor Diokno concluded.

 

Source: Bangko Sentral ng Pilipinas (BSP)