This article first appeared in The Edge Malaysia Weekly on June 26, 2023 - July 2, 2023
Political developments in the run-up to upcoming state elections in Penang, Selangor, Kedah, Negeri Sembilan, Kelantan and Terengganu are likely to be in focus this week.
The Kelantan and Selangor state assemblies were dissolved last Thursday and Friday respectively. The Penang and Kedah governments are likely to dissolve their assemblies this Wednesday, followed by Negeri Sembilan on Friday. While Terengganu has not decided on a dissolution date, its state assembly will automatically dissolve on Friday.
Last Thursday, Perikatan Nasional (PN) chairman Tan Sri Muhyiddin Yassin announced that the opposition coalition had finalised the negotiation of seats among its three component parties. PN will contest all 245 seats in the six state elections. The largest share was entrusted to PAS with 126 seats, followed by Parti Pribumi Bersatu Malaysia with 83 seats and Parti Gerakan Rakyat Malaysia with 36 seats.
Prime Minister Datuk Seri Anwar Ibrahim will lead a delegation on an official visit to Laos on Monday and Tuesday, following an invitation from Lao PM Sonexay Siphandone.
In the courts, on Monday there will be a hearing of former Federal Land Development Authority (Felda) chairman Tan Sri Mohd Isa Samad’s appeal to set aside his conviction, six-year imprisonment and RM15.4 million fine for corruption. In February 2021, a High Court convicted him on nine charges of corruption involving RM3 million in relation to Felda’s purchase of the Merdeka Palace Hotel & Suites in Kuching, Sarawak.
On Tuesday, the apex court will hear an application by the Malaysia Competition Commission to review a previous Federal Court decision last year to not grant it leave to reinstate a RM10 million fine each imposed on AirAsia Bhd and Malaysian Airline System Bhd for violating competition laws during their short-lived collaboration in 2012.
Within the region, Vietnam will be the first Asian economy to release its 2Q2023 gross domestic product (GDP) numbers on Thursday, with Bloomberg estimating the economy to expand 4.3% year on year. UOB Global Economics & Markets Research, meanwhile, expects a higher growth of 5.9%.
Other key economic data releases during the week include Singapore’s May industrial production (June 26), China’s June official manufacturing and non-manufacturing Purchasing Managers’ Index (June 30), South Korean June trade data (July 1), Thailand’s May trade data (June 30), Hong Kong’s May trade data (June 27), South Korea’s May industrial production (June 30) and Australian May Consumer Price Index (June 28).
No major Asia-Pacific central bank monetary policy decisions are due this week.
Malaysia, India, Indonesia and Singapore will celebrate Hari Raya Haji on Thursday with Indonesia on an extended holiday (June 28 to 30) while Hong Kong will commemorate the 26th HK SAR Establishment Day on July 1. Although it has yet to be officially confirmed, Chinese President Xi Jinping may visit Hong Kong on July 1 and deliver a speech.
The World Economic Forum’s Annual Meeting of the New Champions will take place in Tianjin, China, from June 27 to 29. China’s Premier Li Qiang is scheduled to deliver the keynote address at the opening ceremony on June 26.
Meanwhile, the Group of Seven central banks’ focus this week will be on the European Central Bank’s ECB Forum on Central Banking 2023, which will be held in Sintra, Portugal, from June 26 to 28. The forum is titled “Macroeconomic stabilisation in a volatile inflation environment” and the key segment of the forum will be a policy panel discussion on the last day with ECB president Christine Lagarde, US Federal Reserve (Fed) chair Jerome Powell, Bank of England governor Andrew Bailey and Bank of Japan governor Kazuo Ueda.
On Wednesday, the Fed will release the latest annual US banking industry stress test results to assess whether banks are sufficiently capitalised to absorb losses during stressful conditions while meeting obligations to creditors and counterparties and continuing to be able to lend to households and businesses.
On the local corporate front, Bursa Malaysia-listed companies that will hold their annual general meetings include Eversendai Corp Bhd and Muhibbah Engineering (M) Bhd (June 26); Malaysia Building Society Bhd and Suria Capital Holdings Bhd (June 27); as well as OCK Group Bhd and Aurelius Technologies Bhd (June 28).
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