This article first appeared in The Edge Malaysia Weekly on February 3, 2025 - February 9, 2025

Market activities in Asia are expected to ramp up this week after the Chinese New Year holidays, which fell on Jan 29 and 30. Malaysia is set to announce its December 2024 industrial production data on Friday. On the same day, Bank Negara Malaysia will publish its latest international reserves as at Jan 31, 2025. Foreign exchange reserves amounted to US$115.5 billion (RM515 billion) as at Jan 15, 2025.

Bloomberg consensus expectations point to faster growth of between 3.9% and 5.3% year on year in December 2024. Malaysia’s Industrial Production Index (IPI), which measures output in the manufacturing, mining, electricity and gas industries, expanded 3.6% y-o-y in November 2024.

On Monday, S&P Global’s manufacturing Purchasing Managers’ Index (PMI) data for January will be released for Asean economies including Indonesia, Malaysia, the Philippines, Thailand and Vietnam, as well as major developed markets such as South Korea and Taiwan.

In December 2024, S&P Global’s Malaysia manufacturing PMI fell to 48.6 from 49.2 in November, indicating a modest slowdown in the manufacturing sector.

Notably, Malaysia is set to implement the minimum wage of RM1,700 per month for employers with five or more employees on Feb 1.

Across the Causeway, highlights of the week will be the release of Singapore’s December retail sales, a mid-week automobile Certificate of Entitlement bidding exercise and January official reserves. “Focus will also stay on the news flow relating to the upcoming Singapore FY2025 Budget Statement to be announced on Feb 18,” says UOB Global Economics and Markets Research in its weekly outlook report released last Friday.

Elsewhere in Asia, Indonesia is set to publish its 4Q2024 gross domestic product data on Wednesday. Bloomberg consensus estimates a 4.97% y-o-y growth in 4Q2024, from 4.95% y-o-y in 3Q2023, taking its full-year 2024 growth to 5.02% from 5.05% in 2023.

January inflation data will also be released for Indonesia, South Korea, the Philippines, Vietnam, Thailand, Taiwan and China this week.

South Korea, Vietnam and Taiwan are also set to unveil their trade data. Other than trade and inflation data, Vietnam will also release its January IPI and retail sales figures on Thursday.

In the US, President Donald Trump is said to be deciding by Jan 31 on whether to impose 25% tariffs on imports from Canada and Mexico beginning Feb 1, according to UOB.

Markets will continue to pay close attention to the US earnings calendar as 822 US companies will release their quarterly earnings in the first week of February, of which 125 are S&P 500 listed firms, and two major technology companies will be in focus, it adds.

Meanwhile, the Bank of England (BoE) is the only G7 central bank with a monetary policy decision this week on Thursday. According to a Bloomberg survey, all four analysts polled expect the BoE to cut its policy rate by 25 basis points to 4.50%. UOB economist Lee Sue Ann also expects the BoE to cut rates by 25bps at the February meeting, largely on the back of a weak economy and loosening labour market.

The key European data set to be unveiled this week will be preliminary Consumer Price Index data for January for the eurozone on Monday. Other notable eurozone data include December Producer Price Index and retail sales.

In the courts, the hearing of 1Malaysia Development Bhd’s (1MDB) US$6.59 billion lawsuit against its former CEO Arul Kanda Kandasamy and former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah continues.

On Jan 17, Arul Kanda admitted in the Kuala Lumpur High Court that even though he had knowledge of 1MDB’s fraudulent asset claims and debts via articles published in The Edge and various other media soon after he joined the company in 2015, he did not carry out any investigation on the matter.

On the local corporate front, Bursa Malaysia-listed companies scheduled to release their 4Q2024 financial results this week include Sunway Real Estate Investment Trust (KL:SUNREIT) on Monday and KLCCP Stapled Group (KL:KLCC) on Wednesday. Solar renewable energy specialist Northern Solar Holdings Bhd will be making its debut on the ACE Market of Bursa Malaysia on Thursday.

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