Money & Finance

The Institute of Chartered Accountants in England and Wales (ICAEW) predicts a challenging start for Asian economies in 2023, but suggests Malaysia will remain relatively resilient. Despite warnings of a potential recession, the country is expected to maintain economic strength amid global inflation and supply chain issues.

Banking stocks remain a relatively safe investment despite emerging challenges. The industry anticipates strong retail loan growth while navigating increasing deposit competition, declining interest rates, and potential macroeconomic pressures. Non-interest revenues could become a strategic focus for banks.

Oil prices rose 2% as OPEC+ kept production targets and Chinese COVID restrictions ease. WTI crude futures climbed 0.9% to $80.68, while Brent crude increased 0.8% to $86.29, signaling potential increased global demand and market stability.

Sarawak Premier Tan Sri Abang Johari Openg reveals ambitious revenue plan for 2023, projecting over RM11 billion from diverse sources including state sales tax, crude oil, LNG, and palm oil products.

Taiwanese economic officials express concerns about recent US semiconductor legislation potentially harming Taiwan's critical chip export industries. The $50 billion Chips and Science Act aims to reduce reliance on Taiwanese technology, creating uncertainty for the island's tech manufacturing sector.

RHB Bank is poised to achieve most of its key performance targets for 2022, with a return on equity of 9.3% and loan growth on target. Group CEO Mohd Rashid Mohamad reported that four out of five KPI goals have been met, with only the CASA ratio falling slightly short of expectations.

Bursa Malaysia closed 1% lower with 629 losers versus 347 gainers. The ringgit rose to a three-month high at 4.4760, up 0.43% against the US dollar. Foreign investors bought RM341 million in stocks, signaling potential market recovery and interest in upcoming political and economic developments.

Bank Negara Malaysia has published an exposure draft detailing regulatory guidelines for Digital Insurers and Takaful Operators. The proposed framework aims to enhance market inclusiveness, competition, and operational efficiency while establishing clear licensing and business model standards for digital insurance providers.

The first session of the 15th Malaysian Parliament will commence on December 19, focusing on approving emoluments for civil employees and preparing a new or revised budget under Prime Minister Anwar Ibrahim's administration.

Boustead Plantations Bhd expects continued volatility in palm oil prices for the remainder of the year. High production costs from increased minimum wages, fertilizer, and diesel prices will impact profitability. The company remains optimistic about cost management and crop enhancement strategies for 2022.