Money & Finance

The International Monetary Fund and World Bank have developed contingency plans to offer financial assistance to countries struggling with the economic impact of the coronavirus outbreak. IMF spokesman Gerry Rice confirmed their readiness to lend capital and support countries experiencing balance of payment problems.

Singapore's core consumer price index rose 2.2% in February, lower than expected, but authorities warn of potential inflation pressures from global supply constraints and geopolitical tensions. The Monetary Authority of Singapore suggests ongoing challenges despite anticipated easing of external supply issues in the second half of 2022.

S&P Global Ratings predicts Malaysian banks will maintain loan growth between 5-6% in 2023, supported by a stable economy. The banking sector shows resilience with strong capitalization, 1.8% provisioning buffers, and a 14.3% common equity Tier 1 ratio, enabling banks to withstand potential asset quality pressures.

Malaysia's economy remains robust due to its diversified sectors, with services contributing 57% and manufacturing 24.3%. The country's reduced dependence on commodities and varied trading partners provide economic resilience against potential downturns.

Bursa Malaysia broke its losing streak on Wednesday, with the FBM KLCI index gaining 3.08 points to close at 1,491.35. The Malaysian ringgit weakened to 4.5028 against the US dollar, marking its lowest level since 1998. Trading volume reached 2.36 billion shares valued at RM1.62 billion.

Asian markets reversed early losses after the Bank of Japan and US Federal Reserve committed to stabilizing financial markets. BOJ Governor Haruhiko Kuroda pledged to monitor market developments and provide sufficient liquidity through strategic market operations and asset purchases.

In early 2021, the stock market initially showed promise with rising commodity prices and global economic recovery hopes. The Delta variant disrupted market momentum, causing the MSCI emerging market index to slip. Recently, foreign investors injected nearly RM1 billion into equities, helping the local benchmark index FBM KLCI recover approximately half its previous losses.

Asian shares gained ground on Wednesday, with Japan's Nikkei 225 jumping 1.7% and Hong Kong's Hang Seng rising 2.1%. Investors are anticipating the U.S. Federal Reserve's expected 0.25 percentage point interest rate increase, marking the first hike since 2018.

Eurozone consumer prices surged to a record 7.5% in March, marking the highest inflation rate since 1997. Rising energy and food costs, fueled by the conflict in Ukraine, are squeezing household budgets and forcing central banks to consider aggressive monetary policy responses.

The Malaysian stock market experienced a 1% decline with the KLCI index, while the ringgit reached a three-month high at 4.4760. Foreign investors returned to buying stocks, and potential political developments could drive pro-growth measures and domestic reforms.