Despite various extensions of rental relief, up to half of mall operators reported significant difficulties collecting rents from their tenants in the first half of 2021 (1H21), according to Bank Negara Malaysia (BNM).

Pressure on office and retail rents to remain as vacancy rates rise — BNM

The impact on insurers’ and takaful operators’ earnings from premium deferrals as well as Covid-19 claims is expected to remain manageable, with insurers and takaful operators assessed to be resilient against stressed scenarios assuming higher claims than observed thus far, according to Bank Negara Malaysia (BNM).

Insurers’ and takaful operators’ capital adequacy ratio well above regulatory minimum — BNM

Last year, close to seven million individual medical reimbursement policies/certificates were written by life insurers and family takaful operators, accounting for 68% of total protection insurance and takaful claims.

How has Covid-19 impacted medical claims trend?

First-time buyers of affordable residential property continued to support house prices in Malaysia in the first half of 2021 (1H21) despite the housing market reversing improvements observed in 2H20 as the effects of the positive response to various homeownership incentives introduced by the government subsided.

First-time buyers continued to support house prices in 1H21 — BNM

Bank Negara Malaysia (BNM) said banks in the country expect to continue bolstering loan-loss provisions in the second half of 2021 (2H21) given renewed stress faced by some borrowers.

BNM: Higher provisions seen in banks as borrowers face renewed stress

The application for the latest loan moratorium peaked in the first half of July, said Bank Negara Malaysia (BNM).

Nevertheless, the weekly applications declined steeply thereafter.

Application for latest loan moratorium peaked in first half of July

Bank Negara Malaysia (BNM) said that while recovery prospects for the Malaysian economy remain subjected to some degree of Covid-19 pandemic-driven uncertainty, the domestic financial system is expected to remain resilient against potential economic and financial shocks as banks and insurers continue to have sufficient financial buffers to absorb potential losses under severe macroeconomic and financial conditions while sustaining support for economic recovery.

BNM: Malaysia's financial system to remain resilient against economic, financial shocks

Malaysia’s banking system total deposit annual growth slowed to 3.9% in June 2021 from 6% in March 2021, but remained supported by precautionary savings by households and businesses, Bank Negara Malaysia (BNM) said.

Banking system deposit growth slows; preference grows for liquid assets

The business sector could suffer a setback in its financial recovery from the reimposition of nationwide movement restrictions towards the end of the second quarter of 2021 (2Q21).

Renewed pressure on business sector’s debt-servicing capacity seen

Small and medium enterprises (SMEs) in Malaysia saw their portion of bank loans under repayment assistance spike to 21.6% in June 2021 from below 8% in September 2020, according to Bank Negara Malaysia's (BNM) Financial Stability Review report for the first half of 2021 (1H21).

One-fifth of SME loans underwent repayment assistance — BNM report

Malaysia’s overall household debt-to-gross domestic product (GDP) ratio improved to 89.6% at end-June 2021 from 93.2% at end-December last year, but remained elevated amid the sluggish recovery in nominal GDP, said Bank Negara Malaysia (BNM).

Malaysia’s household debt-to-GDP ratio improves to 89.6% at end-June

Asian markets will likely come under pressure Tuesday after US stocks, bonds and the dollar were sold off as President Donald Trump ramped up criticism of Federal Reserve Chair Jerome Powell.

Asian stocks face pressure after selloff in US

Heavy selling lashed Wall Street anew Monday, with longer-dated Treasuries joining stocks and the dollar in a deepening slump, after President Donald Trump’s censure of Jerome Powell’s interest-rate policy sowed angst among investors already coping with a global trade war.

US stocks, bonds sink in broad retreat from American assets

The US set new duties on solar imports from four Southeast Asian nations that together provide the country with the bulk of its panels.

US imposes new duties on solar imports from Malaysia, Southeast Asia

(April 21): U.S. bond funds came under heavy selling pressure in the week to April 16, highlighting concerns that U.S. President Donald Trump's tariff measures could fuel inflation and push the economy into a recession.

Investors divested U.S. bond funds for a fifth successive week to t...

US bond funds suffer fifth weekly outflow on tariff-driven inflation fears

(April 22): The sell-America trade gathered momentum on Monday on concern President Donald Trump will act upon his threat of firing Federal Reserve Chairman Jerome Powell and implement policies that lead to a recession.

The dollar and US stocks slid in thinner-than-normal, post-hol...

Trump’s push against Powell adds to doubts of US’s haven status

(April 22): Analysts are busy slashing earnings estimates in the US due to the risk of a severe economic slowdown, according to Morgan Stanley’s Michael Wilson.

The S&P 500’s earnings revisions breadth — or analyst estimates upgrades versus downgrades — is now at levels rarely ...

US profit outlook rarely this sour, Morgan Stanley’s Wilson says

Cocoa futures climbed to the highest in more than two weeks after key processing data, often used as a proxy for global demand, beat expectations last week.

Cocoa extends gains after global processing topped expectations

Mexico’s President Claudia Sheinbaum said there’s no agreement yet with her US counterpart Donald Trump after the two spoke last week about US tariffs on some of its southern neighbour’s goods.

Mexico’s Sheinbaum says trade talks continue after Trump call

(April 21): Bitcoin rallied to its highest level since US President Donald Trump’s “Liberation Day” tariff announcements, as the dollar slumped amid renewed fears over the US president’s efforts to remove Federal Reserve chairman Jerome Powell.

Bitcoin rebounds as Trump’s push against Powell weakens dollar

A gauge of future US economic activity fell sharply in March, potentially flagging tepid growth this year amid tariffs.

US leading indicator declines sharply in March amid tariffs

Medium-haul low-cost carrier AirAsia X Bhd (KL:AAX) on Monday said that it will be increasing its flight frequency for the Kuala Lumpur to Almaty, Kazakhstan, route in the next quarter amid surging demand.

AirAsia X to increase flight frequency for KL-Almaty route as travel demand grows

The US set new duties on solar imports from four Southeast Asian nations that together provide the country with the bulk of its panels.

Here is a brief recap of some business news and corporate announcements that made the headlines on Monday.

Panasonic Manufacturing, CIMB, WCE, Cahya Mata, Astino, KIP REIT, Salcon, HHRG, GDP, Ho Hup Construction Co, Malaysia Marine and Heavy Engineering

The US economy could slow down unless interest rates are lowered immediately, President Donald Trump said on Monday, repeating his criticism of Federal Reserve chair Jerome Powell.

Trump warns of economic slowdown unless Fed cuts rates

Malaysia Marine and Heavy Engineering Holdings Bhd’s (KL:MHB) wholly owned unit received a notice of arbitration from its subcontractor Haumea Offshore Sdn Bhd (previously known as Trans Fame Offshore Sdn Bhd or TFO) in relation to the Bokor Phase 3 redevelopment project in Sarawak.

MHB unit receives RM57 mil arbitration notice from subcontractor in relation to Bokor Phase 3 project

Malaysia appreciates the recent policies introduced in China, as the government actively formulates measures to stimulate domestic consumption.

Malaysia welcomes China’s policies to boost domestic consumption — Zafrul

After defaulting on loan facilities last week, Ho Hup Construction Co Bhd (KL:HOHUP) is seeking a court order to facilitate the restructure of its debt.

Ho Hup seeks court order to formulate scheme of arrangement

The Malaysian Anti-Corruption Commission (MACC) has launched an internal investigation after one of its officers was inspected by police in the recent Op Noda Khas at an entertainment outlet in Kuala Lumpur.

MACC officer facing internal probe after being inspected by cops in entertainment outlet

Indonesia’s rapidly expanding franchise industry presents significant growth opportunities for Malaysian businesses seeking to strengthen their regional footprint, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

Indonesia, with a population exceeding 270 million and a growing middle class, is now recognised as one of the most dynamic and strategic markets for franchising in Southeast Asia.

Indonesia’s booming franchise market opens doors for Malaysian brands — Ahmad Zahid

(April 22):&nbsp;Analysts are busy slashing earnings estimates in the US due to the risk of a severe economic slowdown, according to Morgan Stanley’s Michael Wilson.

The S&amp;P 500’s earnings revisions breadth — or analyst estimates upgrades versus downgrades — is now at levels rarely ...

Asian markets will likely come under pressure Tuesday after US stocks, bonds and the dollar were sold off as President Donald Trump ramped up criticism of Federal Reserve Chair Jerome Powell.

European equity funds drew massive inflows in the week ended April 16, while US funds faced hefty outflows, as investors continued to shift capital on concerns over US trade tariffs and mounting worries over the strength of the US economy.

Investors pour into European equity funds, flee US on tariff woes

(April 21): U.S. bond funds came under heavy selling pressure in the week to April 16, highlighting concerns that U.S. President Donald Trump's tariff measures could fuel inflation and push the economy into a recession.

Investors divested U.S. bond funds for a fifth successive week to t...

Heavy selling lashed Wall Street anew Monday, with longer-dated Treasuries joining stocks and the dollar in a deepening slump, after President Donald Trump’s censure of Jerome Powell’s interest-rate policy sowed angst among investors already coping with a global trade war.

As goes the price of oil, so go US rig fleets, which have been getting idled on the shale patch. BloombergNEF has issued its latest energy outlook before the group holds a summit in New York later this month. And exactly what are those rare earth metals China is guarding?

Five key charts to watch in commodity markets this week

The Malaysian Communications and Multimedia Commission (MCMC) has entered into a strategic collaboration with the Johor government to strengthen infrastructure, expand Internet network coverage and enhance public awareness of cybersecurity and digital literacy.

Communications Minister Datuk Fahmi Fadzil said RM300 million in funding has been allocated over two years to ensure the successful implementation of the initiatives under the Memorandum of Understanding (MoU) signed on Monday.

MCMC, Johor govt sign MOU to boost digital infrastructure, programmes

A gauge of future US economic activity fell sharply in March, potentially flagging tepid growth this year amid tariffs.

Cocoa futures climbed to the highest in more than two weeks after key processing data, often used as a proxy for global demand, beat expectations last week.

Mexico’s President Claudia Sheinbaum said there’s no agreement yet with her US counterpart Donald Trump after the two spoke last week about US tariffs on some of its southern neighbour’s goods.

(April 22):&nbsp;The sell-America trade gathered momentum on Monday on concern President Donald Trump will act upon his threat of firing Federal Reserve Chairman Jerome Powell and implement policies that lead to a recession.

The dollar and US stocks slid in thinner-than-normal, post-hol...

BNM Financial Stability Review 1H2021

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BNM Financial Stability Review 1H2021

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