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

Malaysia is due to announce an interest rate decision this week but analysts do not expect any changes afoot.

According to a Bloomberg survey, Bank Negara Malaysia is likely to keep its overnight policy rate (OPR) unchanged at 3% on March 6. UOB Global Economics and Markets Research expects the central bank to maintain the OPR at 3%, given that both inflation and economic prospects remain broadly in line with its assessment.

UOB says a prolonged pause in policy rates will allow policymakers to better assess the potential implication of the US’ tariff policies on domestic growth, inflation and financial systems in the near term.

The Department of Statistics Malaysia will be releasing the mining of petroleum and natural gas statistics data for 4Q2024 on Tuesday (March 4).

Meanwhile, steel pipe manufacturer Pantech Global Bhd’s listing is slated for Monday (March 3).

In Singapore, Feb 28 marked the last debate in parliament on the 2025 budget. Parliament will remain in session until March 10 to continue discussions and to hear details at the Committee of Supply debates, allowing lawmakers to examine the plans of each ministry.

South Korea celebrates Independence Movement Day on March 1 (Saturday), with the holiday observed on March 3. The country’s final 4Q2024 gross domestic product (GDP) will be released on March 5, with Bloomberg estimating growth to inch up 0.1% q-o-q and increase 2% for the full year.

China’s Two Sessions 2024 will be the key focus in Asia this week. The Two Sessions refer to the concurrent annual meetings of the National Committee of the Chinese People’s Political Consultative Conference, which begins on March 4, and the National People’s Congress (NPC), which commences on March 5. Both meetings are expected to conclude by March 11. Chinese Premier Li Qiang will deliver the government work report at the opening of the NPC.

Over in the US, there are expectations that another round of tariffs will take effect after President Donald Trump said the delayed 25% tariffs on imports from Canada and Mexico would be implemented starting March 4. Also on the same day, China will be charged an extra 10% tariff, on top of the previous 10% tariff that took effect on Feb 4, making it a total of 20%.

It will be a busy week for corporate earnings as 925 US companies will release their quarterly earnings, out of which only 12 are S&P 500-listed firms, UOB says in its weekly outlook report last Friday.

The UK will host European leaders in London on March 2 for further discussion on the Russia-Ukraine war.

The European Central Bank (ECB), on March 6, will be the only G7 central bank due for a monetary policy decision this week. UOB economist Lee Sue Ann opines that the ECB will go on a cautious approach towards neutral, which is estimated to be around 2%. For now, she expects the ECB to cut rates by 25 basis points (bps) again when ECB policymakers convene at this meeting. Lee also expects another 25bps move at the April and June meetings, and for the deposit rate to reach 2% by the end of 2Q2025, assuming the economic data evolves in line with expectations.

Over in Australia, the Reserve Bank of Australia is expected to release the minutes of its February policy meeting on March 4 (Tuesday) while its 4Q2024 GDP data will be shared on March 5. Bloomberg estimates 0.7% q-o-q growth, taking full-year 2024 growth to 1.4%, while UOB estimates a 2% full-year growth, from 1.1% in 2023.

In the local courts, the hearing of former prime minister Datuk Seri Najib Razak’s 1Malaysia Development Bhd (1MDB)-Tanore trial continues this week before Judge Datuk Collin Lawrence Sequerah. The former premier is on trial for four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion of 1MDB funds.

Scheduled to be heard on Tuesday (March 4) is the government and public service department’s (PSD) stay of the High Court’s decision last month allowing a pension increase for retirees, based on their final salaries. Pensioner Aminah Ahmad, a former Wisma Putra staff who retired in 2002, had brought the action in 2017, naming the government and PSD as respondents.

On March 5, the Court of Appeal is set to hear a recusal appeal by Datin Seri Rosmah Mansor, the wife of Najib, who is seeking to recuse the trial judge who sentenced her to 10 years and a fine of RM970 million for corruption over a RM1.25 billion hybrid solar project for 369 rural schools in Sarawak. Should the appeals court deny Rosmah the recusal, it will proceed to hear the merits of her appeal against her conviction and sentence on March 19.

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