Total Foreign Outflow Hit RM4.1 Billion As US Monetary Policy Fear Grows
Foreign investors turned net sellers of MGS and GII in June, reducing their holdings by RM4.3 bil after a brief respite in May (+RM0.4 bil). RAM says, however, interest in short-term government securities (MTB & MITB) stayed keen, with net foreign purchases of RM233.1 mil in June extending their inflow streak to five consecutive months. Overall, the total foreign outflow amounted to RM4.1 bil last month.
The foreign outflow was largely induced by fears of more aggressive US monetary policy tightening as well as risk aversion amid rising concerns over a potential global economic slowdown. The flight-to-safety sentiment resulted in a broad rise in bond yields as 1-year and 10-year MGS yields respectively climbed 33.1 bps and 6.5 bps m-o-m as of the end-June. To read the full story click here
Malaysia’s Inflation in June Up 3.4% Driven By Rising Food Prices
Malaysia’s consumer price index (CPI) increased by 3.4% year-on-year (y-o-y) to 127.4 in June from 123.2 in June last year, surpassing the average inflation in Malaysia for the January 2011-June 2022 period by 1.9%, Department of Statistics Malaysia (DOSM).
It said that Food index increased 6.1 percent and remained the main contributor to the rise in the inflation during the month of June 2022. To read the full story click here
Savings Of RM 5 Billion To RM 6 Billion Expected From Remaining Operational Allocation In 2022; Tengku Zafrul
Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz is targeting an estimated RM5 billion to RM6 billion worth of savings from the remaining operating allocation in 2022.
He said the savings involved several things, including a reduction in the purchase of imported goods and expenditure out of the country. To read the full story click here
Ranil Wickeremesinghe Elected President
Sri Lankan lawmakers chose six-time Prime Minister Ranil Wickremesinghe as president Wednesday to succeed the ousted leader who fled the country in a vote that risks reigniting political turmoil in the troubled South Asian island nation.
He said he has spent 45 years of his life in Parliament and is happy it has given him the honor of becoming president. “I need not tell you the status our country is in. Now that the election is over we have to end this division. We had 48 hours to stay divided but from now on I am ready to have a dialog with you,” he said, asking other political parties to work with him. To read the full story click here
Malaysia’s Trade Performance In June Increased 43.4% To RM270.39 Billion
Malaysia’s trade performance in June 2022 increased by 43.4% to RM270.39 billion compared to June 2021, the 17th consecutive month of double-digit growth. Exports recorded the 11th consecutive month of double-digit expansion, registering a strong growth of 38.8% to RM146.16 billion. Imports rose by 49.3% to RM124.23 billion while the trade surplus declined marginally by 0.8% to RM21.93 billion.
In a statement by the Ministry Of Internal Trade And Industry, it said that the export growth was contributed by strong demand for electrical and electronic (E&E) products, petroleum products, liquefied natural gas (LNG) as well as palm oil and palm oil-based agriculture products. Exports to most major trading partners notably ASEAN, the United States (US), the European Union (EU) and Japan recorded double-digit growth. The highest monthly export value was registered to ASEAN, the US, and the EU. to read the full story click here
Allegations That Government Is Reducing Aid And Subsidies False; Tengku Zafrul
The Finance Ministry today stressed that allegations that the government is reducing aid and subsidies are untrue.
Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz said the fact is the government continues to provide various assistance and subsidies to the people, especially related to oil and petroleum. To read the full story click here
