Latest news with #BankMuamalatMalaysiaBhd
The Star
5 hours ago
- Business
- The Star
Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR: The ringgit is expected to trade firmer next week following the US labour market data, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate - and the expiry of the 90-day pause on US tariff implementation. "The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment "With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,' he told Bernama. Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year. The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added. On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation. "With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,' he said. The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday. The local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week. The ringgit also traded lower against ASEAN currencies. The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week. It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously. The market was closed on Friday for the Maal Hijrah public holiday. - Bernama
Malaysian Reserve
11 hours ago
- Business
- Malaysian Reserve
Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR — The ringgit is expected to trade firmer next week following the US labour market data, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate — and the expiry of the 90-day pause on US tariff implementation. 'The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment 'With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,' he told Bernama. Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year. The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added. On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation. 'With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,' he said. The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday. The local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week. The ringgit also traded lower against ASEAN currencies. The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week. It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously. The market was closed on Friday for the Maal Hijrah public holiday. — BERNAMA
New Straits Times
14 hours ago
- Business
- New Straits Times
SST tweaks bring big relief for rakyat
KUALA LUMPUR: The government's move to fine-tune the Sales and Service Tax (SST) will not significantly affect its revenue collection but will have a positive impact on the people, said an economist. Professor Emeritus Dr Barjoyai Bardai, provost at Malaysia University of Science and Technology, said the expanded SST was expected to boost tax collection to RM51.7 billion in 2025, up from the earlier forecast of RM46.7 billion. "I don't see this (tax collection) being affected too much by the exemptions for the beauty sector, apples, oranges and dates, as well as the increased SST registration threshold from RM500,000 to RM1 million for leasing, rental and financial services. "At most, I believe that it would be around RM1 billion to RM2 billion. However, the tweaks will be a big relief for those on the ground." Barjoyai said the exemption for the entire beauty sector would help control inflation as personal care was a key expenditure for many people. "In May, the inflation rate for personal care stood at 3.7 per cent, so this is the right move," he said, citing Statistics Department figures. Barjoyai said the increase of the SST registration threshold to RM1 million would see many micro, small and medium enterprises exempt from paying the eight per cent tax on leasing, rental and financial services. "This is especially important in rural and suburban areas, and for small shops in apartments and flats. Their sales will not reach RM1 million a year." Still, he said, retailers in malls and those with many branches would likely be affected, though he did not believe they would immediately raise prices. "The retail sector is price-sensitive, and competition is fierce. I think they will absorb the increase in costs in the short run and only pass on the costs in the longer run." On the SST exemption for apples, oranges and dates, Barjoyai said this was appropriate as local fruits were not always cheaper than imported fruits. "Mangoes, rambutans and durians, for example, can cost a lot more than apples and oranges. "Overall, the tweaks are a good move, and it indicates that the government is listening to the people." Economist Dr Geoffrey Williams said the SST adjustments would not significantly alter the government's overall tax collection. "The SST will still be effective in improving government income to provide more money for priorities such as health, education and social protection." He added that exempting imported fruits and beauty services would keep prices steady and prevent disruptions to consumer behaviour. Consumers, however, must remain alert and ensure businesses did not take advantage of the situation by unjustifiably raising prices, he added. "Overall, it is a signal that the government is making modest changes and taking stakeholder views into account. "This is a positive approach to tax policy and should make implementation easier," he said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said he believed the tweaks reflected the government's intention to strike a balance between financial discipline and taking care of the people's interests. "To some degree, it is a pragmatic move. Perhaps, there should be more time for consultation with industry players so that any final adjustments can be made before the rollout of such measures," he added.
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
Ringgit rises against US dollar at the close on easing tensions in Middle East
KUALA LUMPUR — The ringgit ended higher against the US dollar, buoyed by the apparent ceasefire in the Israel-Iran conflict, said an economist. At 6 pm, the local note rose to 4.2410/2465 versus the greenback from Monday's close of 4.2915/2980. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the de-escalation also led benchmark Brent crude oil prices to retreat to US$69.56 per barrel as risks to global oil supply appear contained for now. 'Financial markets are responding with a sense of relief, and risk appetite is gradually returning. 'Still, it's early days. Investors remain cautious amid lingering uncertainties — particularly with the US tariff pause set to expire in early July,' he told Bernama. On the domestic front, Mohd Afzanizam said Malaysia's latest consumer price index (CPI) reading of 1.2 per cent reinforces the view that monetary policy remains tight, with real interest rates rising further. 'In summary, market sentiment may stay guarded in the short term, while policymakers are likely to remain vigilant in balancing growth and stability,' he added. At the closing, the ringgit traded mostly lower against a basket of major currencies. It trended lower against the Japanese yen at 2.9256/9296 from 2.9028/9074 at Monday's close, declined versus the British pound to 5.7707/7782 from 5.7437/7524, but improved against the euro to 4.9225/9289 from 4.9236/9311 previously. The local note trended higher against its ASEAN counterparts. It advanced vis-a-vis the Indonesian rupiah to 259.3/259.7 from 260.2/260.7 at yesterday's close and gained against the Philippine peso to 7.41/7.44 from 7.44/7.46. The ringgit also appreciated against the Singapore dollar to 3.3130/3178 from 3.3188/3243 and strengthened to 12.9793/13.0021 from 12.9998/13.0250 versus the Thai baht previously. — BERNAMA
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
Ringgit climbs as Trump ramps up pressure on Fed to cut interest rates
KUALA LUMPUR — The ringgit extended its gains against the greenback at the close on Wednesday, as US President Donald Trump ramped up pressure on the US Federal Reserve (Fed) to cut interest rates. It has been reported that Trump is considering naming a new Fed chairman early, a move seen as undermining the current chairman, Jerome Powell, who has been reluctant to cut interest rates as demanded by the US president. At 6pm, the local note inched up to 4.2300/2355 versus the greenback from Wednesday's close of 4.2335/2405. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said news of Trump's intention to name the next Fed chair early caused the US Dollar Index (DXY) to fall 0.60 per cent to 97.093 points. 'It remains to be seen how this can be made possible as the current chairman's term will end in May next year. Despite that, the underlying tone is about pressing the Fed to lower the Fed funds rate as soon as possible,' he told Bernama. At the close, the ringgit traded lower against a basket of major currencies and ASEAN countries. It depreciated against the Japanese yen to 2.9359/9399 from 2.9070/9120, slid versus the British pound to 5.8141/8217 from 5.7631/7726, and slid against the euro to 4.9597/9661 from 4.9113/9194 yesterday. Against its ASEAN peers, the ringgit declined vis-à-vis the Singapore dollar to 3.3192/3240 from 3.3061/3121, and dipped against the Thai baht to 13.0254/0488 from 12.9584/9858 at Wednesday's close. It eased against the Indonesian rupiah to 260.9/261.4 from 259.7/260.2, and slipped against the Philippine peso to 7.47/7.49 from 7.46/7.48, previously. — BERNAMA
