Latest news with #MalaysiaEconomy
Bloomberg
09-07-2025
- Business
- Bloomberg
Malaysia Cuts Rate for First Time Since 2020 After Tariff Threat
Malaysia lowered its benchmark interest rate for the first time in five years, acting after US President Donald Trump increased a threatened tariff on the Southeast Asian country to 25%. Bank Negara Malaysia cut the overnight policy rate by 25 basis points to 2.75% on Wednesday, the first easing since July 2020. Some 13 of 23 economists surveyed by Bloomberg News expected a cut, a slight increase from Monday, with the rest predicting no change.
Free Malaysia Today
30-06-2025
- Business
- Free Malaysia Today
Iran-Israel conflict could see Malaysians pay more for groceries
Food prices in Malaysia could go up by 10% if global oil prices hit US$110, says Barjoyai Bardai. PETALING JAYA : Malaysians could end up paying more for groceries if tensions in the Middle East continue to escalate, economists have warned. Malaysia University of Science and Technology's Barjoyai Bardai, Putra Business School's Ahmed Razman Abdul Latiff, and Sunway University's Yeah Kim Leng say Malaysians will start feeling the pinch if the conflict between Israel and Iran were to push oil prices to US$120 per barrel. Such a surge would trigger a hike in transportation and food costs, they say. Global benchmark Brent crude futures closed at $72.34 a barrel on Friday, up some 3.6% in the week Barjoyai Bardai. 'Even if global oil prices hit US$110, food prices in Malaysia could go up by 10%,' Barjoyai told FMT. He said although Malaysia is a net oil exporter, it will still be vulnerable to supply chain disruptions, especially if Iran moves to block the Strait of Hormuz which is a critical passage for global oil shipments. 'Logistics costs will go up, supply will be limited, and prices will rise.' On Thursday, CNBC reported that crude oil futures rose more than 1% after Israeli prime minister Benjamin Netanyahu ordered the country's military to intensify attacks against Iran. On the same day, Prime Minister Anwar Ibrahim gave an assurance that the government will not raise the price of RON95 petrol, even if global crude oil prices were to increase sharply due to geopolitical tensions in the Middle East. Barjoyai praised the government's decision to maintain its current fuel subsidy structure, and its commitment to putting in place the targeted RON95 subsidy plan. However, he said, its implementation may have to be deferred. 'If oil prices go up, government expenditure will go up. Cost of goods will follow as businesses will factor in the higher transport costs,' he said. Ahmed Razman Abdul Latiff. Razman said high oil prices would benefit national oil company Petronas and boost the country's coffers. However, this would see an escalation in the government's expenditure to maintain the fuel subsidy. 'Fuel prices affect every industry. Operating costs will rise, and most businesses will pass that on to consumers. 'Energy drives everything from transportation to food and housing. Malaysians should prepare for a tighter second half of the year,' he said, adding that even if inflation stays under 3%, the B40 and M40 groups will feel the squeeze. Yeah Kim Leng. Yeah said Malaysia, as a net oil exporter, stands to benefit from higher oil prices. 'If oil prices go up, the increased revenue from Petronas could help offset the subsidy burden. But government expenditure will be higher than revenue,' he said. He said a similar scenario was experienced in 2022, when oil hit around US$100. 'Our subsidy bill nearly tripled from RM20 billion to RM30 billion to triple the amount. If oil hits US$120, we could see a repeat,' he said. Yeah also warned that attacks on oil infrastructure and facilities, particularly involving Iran and Israel, could trigger a global shortage. 'If the Middle Eastern producers reduce output or if shipping routes in the Persian Gulf are disrupted, we're looking at major supply shocks. Oil could easily shoot past US$100 a barrel,' he said. He said such a scenario would have broad inflationary effects and could see consumers tightening their belts which could cause the economy to slow down.
Malay Mail
24-06-2025
- Business
- Malay Mail
Stats Dept: Malaysia's leading index edges up 0.5pc in April, driven by jump in semiconductor imports, new business registrations
KUALA LUMPUR, June 24 — Malaysia's leading index (LI) maintained its positive annual growth at a rate of 0.5 per cent, registering 113.6 points in April 2025 versus 113.0 points in April 2024, according to the Department of Statistics Malaysia (DOSM). The LI is used to provide an early indication of turning points in the business cycle and the direction of the economy in the near term. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said double-digit increases in the real imports of semiconductors (27.2 per cent) and the number of new companies registered (24.1 per cent) contributed to this improvement, despite declines in four other components. 'Simultaneously, the monthly performance of the LI recorded an increase for the second consecutive month with 0.8 per cent, supported by a 0.5 per cent rise in the number of new companies registered,' he said in a statement today. DOSM said the smoothed growth rate of the LI for April 2025 remained below 100.0 points, reflecting Malaysia's resilient economic prospects supported by a positive labour market and sustained domestic demand. 'These fundamentals are further strengthened by improving household spending and encouraging consumption patterns,' it added. Regarding the current economic performance, DOSM stated that the coincident index (CI) posted an annual uptrend of 1.0 per cent, reaching 126.7 points in April 2025 against 125.4 points in April 2024, driven by the improvements in five out of six components, particularly the capacity utilisation in manufacturing (3.4 per cent). 'Conversely, on a monthly basis, the CI slipped by 0.1 per cent due to the declines in the real contributions to the Employees Provident Fund (-0.5 per cent) and the volume index of retail trade (-0.4 per cent),' it added. — Bernama
Free Malaysia Today
17-06-2025
- Business
- Free Malaysia Today
Shell to invest RM9bil more in Malaysia over next few years
Shell's CEO Wael Sawan paid Prime Minister Anwar Ibrahim a courtesy call in Putrajaya today. (X pic) PETALING JAYA : Global energy giant Shell has pledged to invest over RM9 billion in Malaysia over the next two to three years, says Prime Minister Anwar Ibrahim. He said Shell's CEO Wael Sawan conveyed the commitment during a courtesy call today. 'This decision stands as a resounding vote of confidence from a world-class investor in our sound economic policies, clarity in our leadership, and promise in our future,' Anwar said in an X posting. During the courtesy call, Anwar said he shared the Malaysian government's strategic vision in positioning the country as a stable and sustainable investment destination. He said Sawan, in turn, expressed Shell's strong confidence in the country's direction, adding that Shell's upcoming investments would help create high-skilled job opportunities for Malaysians. 'Malaysia will continue to chart a course that is prosperous, resilient and worthy of its people's highest hopes,' Anwar added. Shell owns about 950 petrol stations in Malaysia, with only Petroliam Nasional Bhd (Petronas) operating a wider network. It also sells industrial lubricants and produces crude oil and natural gas off Sabah and Sarawak's shores. The company is also a joint venture partner in liquefied natural gas projects.
Reuters
17-06-2025
- Business
- Reuters
Malaysia PM says Shell to boost its investments in country by $2 billion
KUALA LUMPUR, June 17 (Reuters) - Malaysian Prime Minister Anwar Ibrahim said on Tuesday that Shell (SHEL.L), opens new tab has committed to increasing its investments in Malaysia by 9 billion ringgit ($2.12 billion) over the next two to three years. The boost in Shell's investments will create high-skilled job opportunities for Malaysians, Anwar said in a Facebook post following a meeting with Shell CEO Wael Sawan. He did not provide further details. "This decision stands as a resounding vote of confidence from a world-class investor in our sound economic policies, clarity in our leadership, and promise in our future," Anwar said. Shell did not immediately respond to a request for comment. ($1 = 4.2430 ringgit)
