Morning Brief

The banking and crypto-currency sectors faced a triple whammy this past week, with the failure of Silvergate Capital, Silicon Valley Bank and Signature Bank in quick succession. The three were central banking partners to the crypto sector, acting as conduits between regulated financial institutions, centralised crypto services, and decentralised finance. How much of a setback are these developments for the growth of digital assets? Fintech expert Varun Mittal weighs in.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Last week, Prime Minister Datuk Seri Anwar Ibrahim announced plans to allow those in dire financial straits to apply for personal loans using their EPF funds as a form of collateral. Would the proposal placate those calling for another round of EPF withdrawals? We discuss ideas to revamp Malaysia's retirement system to address demographic challenges with Dr. Lee Hwok-Aun of the ISEAS-Yusof Ishak Institute.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Bersatu conducted their annual general meeting over the weekend, with the party rallying behind beleaguered party president Tan Sri Muhyiddin Yassin. How will the corruption charges against Bersatu leaders impact their chances at the state elections? We discuss the scenarios with Adib Zalkapli of BowerGroup Asia.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

France's Senate has passed by a vote of 195 to 112, President Emmanuel Macron’s pension reform plan to raise the retirement age by two years, from 62 to 64. It also proposes to increase the number of years of work required to claim a full pension. This proposal has sparked protests since 2018. Emeritus Professor of History Peter McPhee of the University of Melbourne breaks down how this might impact Macron's Renaissance party's fortunes and the country's social fabric.Image credit: EPA-EFESee omnystudio.com/listener for privacy information.

Since the reopening of the nation’s border in April last year, Malaysia has recorded more than 10 million tourist arrivals and 28 billion ringgit in tourist receipts but with a ban on luxury tax and shopping inclusion in tourists itinerary, we speak to Nigel Wong, Honorary Treasurer & Spokesperson, Malaysian Association of Tour and Travel Agents (MATTA) to get his perspective on the long term outlookImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Indonesia's GDP growth climbed to its strongest in nine years last year, and has been betting big on the EV industry. We ask Anthony Nafte, Senior Economist at CLSA the outlook for ASEAN economies and Indonesia's progress to transform itself to an EV hub.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Khair Mirza, Managing Partner, Integral Capital helps us answer the question to how should investments be prioritised to ensure that Malaysia’s existing airport infrastructure is improved as well as cater for expansion taking place across the country.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Silicon Valley Bank is the first US bank to collapse in a decade followed by New York's Signature Bank. We ask Christopher Whalen, investment banker and Chairman at Whalen Global Advisors about what gave rise to these fallouts and the key developments to watch out for.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Former Prime Minister Tan Sri Muhyiddin Yassin was charged in the KL High Court today with several counts of corruption under the MACC Act as well as the Anti-Money Laundering Act. What does this mean for the political career of the Pagoh MP and the prospects for the Perikatan Nasional coalition that he leads? Political analyst Dr. Oh Ei Sun weighs in. Image credit: BernamaSee omnystudio.com/listener for privacy information.

Bank Negara’s Monetary Policy Committee maintained the OPR rate at 2.75% in yesterday’s meeting. We parse through BNM’s statement and signals for the economy with Abdul Mui'zz Morhalim, Economist, MIDF Research.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Two years ago, the UN agreed to commemorate March 10th as International Day for Women Judges to raise awareness on the important role of women in the judiciary and legal system. Women make up half of the legal profession in Malaysia, but it wasn’t until recently that we see more women take on prominent roles in senior leadership of the judiciary. Annabel Kok, Partner at RDS Law shares her reflections on gender representation in the Malaysian judiciary.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

This week, the White House endorsed a bipartisan bill, known as the RESTRICT Act, that could give the President powers to ban or force the sale of foreign-owned technology platforms if they pose a national security threat. The RESTRICT Act would ensnare the TikTok app, owned by Chinese company Bytedance, which is viewed by lawmakers as a possible security backdoor for the CCP government to US data. How are investors reacting to the possibility of a ban on TikTok and which stocks could benefit? Mandeep Singh of Bloomberg Intelligence explains.Image credit: AscannioSee omnystudio.com/listener for privacy information.

This week in Parliament, Prime Minister Datuk Seri Anwar Ibrahim said that the government is willing to relinquish its discretion in appointing the chief commissioner of the Malaysian Anti-Corruption Commission (MACC) to Parliament. How will placing the MACC under the parliamentary purview improve its independence? We discuss measures needed to strengthen the anti-graft body's role with Sudhagaran Stanley of the C4 Center.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The EU is set to introduce the Deforestation-Free Products Regulation (EUDR) that would require companies to produce a due diligence report with "verifiable" information that commodities such as palm oil, cocoa, soy and timber were not grown on land deforested after 2020. Will the new EUDR become another trade barrier for palm oil when it comes into force and how prepared are Malaysian palm oil players in meeting the standards? Political economist Khor Yu Leng weighs in on what the palm oil industry can do to adapt to new sustainability imperatives.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

China's National People’s Congress on Sunday saw the world’s second largest economy setting its lowest GDP growth target in decades at 5% for 2023. Beijing has also highlighted uncertain global challenges amid high youth unemployment. Lance Noble, Head of China Reality Research at CLSA, talks to us about where China might be heading, two months after it abandoned its zero-Covid policy and reopened its economy.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

During GE15, there was a considerable increase in support for Perikatan Nasional among the Malay vote base. This has sparked debate on how much opposition parties should be empowered, with measures to level the playing field such as the provision of equal constituency development funding put on hold. Dato' Sri Anwar Ibrahim has long campaigned for political reforms, but will populist concerns and a desire to stay in power affect the pace of progress? We discuss this with political scientist Dr. Wong Chin Huat.Image credit: aizaq abdullahSee omnystudio.com/listener for privacy information.

Under the Low Carbon Mobility Blueprint, Malaysia has set a target of achieving 700,000 EVs on the road by 2030 and 10,000 charging stations by 2025. However, given that we're starting from a 2023 base of 2000 EVs and 1000 charging stations, what kind of policies are needed to achieve these goals? Mohd Junaizee Mohd Noor of ZEVA gives us his assessment of Budget 2023 incentives and further measures to grow the Malaysian EV industry.Image credit: Friko KeiroSee omnystudio.com/listener for privacy information.

It has been a great start so far for Malaysian women in 2023. The Cabinet has agreed to amend the Federal Constitution to confer automatic Malaysian citizenship to children born overseas to Malaysian mothers, the Employment Act was amended to increase the duration of maternity and paternity leave, and Socso will have grants to encourage women to return to work. Louise Tan, Head of Campaigns at the Women’s Aid Organisation also breaks down the hits and misses of Budget 2023.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Covid-19 pandemic disproportionately affected women's share of employment, with the share of women in middle and senior leadership positions stagnating. If education and skills levels are comparable, why do women continue to have fewer opportunities for career progression? We discuss the implications of the underutilisation of women in the workforce with Katrina Ell of Moody's Analytics.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Over the weekend, United Nation member states finally agreed to a text on the first international treaty to protect the high seas. The treaty, which took years of negotiations, is crucial for enforcing the 30x30 pledge made by countries at the UN biodiversity conference in December. What is the significance and implications of the agreement for the conservation of ocean biodiversity? We discuss this with Shantini Guna Rajan of WWF Malaysia. Image credit: Ministry of Foreign Affairs, SingaporeSee omnystudio.com/listener for privacy information.

Last week, former Prime Minister Dato’ Sri Najib Razak was acquitted by the High Court over the tampering of the 1MDB audit report. Separately, the government announced that a deal had been reached with Abu Dhabi sovereign wealth funds IPIC and its subsidiary Aabar Investments for $1.8 billion US dollars. What's the update on all this and how much can Malaysia recoup from on-going settlements with other parties? For answers, we speak to P. Gunasegaram, independent business writer.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Monsoon season is far from over, as heavy rain in several states wreak havoc in Johor, Pahang and Melaka. At least 5 people have been killed so far, while more than 50,000 people have been forced to evacuate their homes. With climate change creating unprecedented weather events, how can flood risks be better mitigated? We get updates and recommendations from Dato' Dr Ahmad Faizal Mohd Perdaus, President, Mercy Malaysia.Image credit: ahmad faizalSee omnystudio.com/listener for privacy information.

The Employee Provident Fund (EPF) declared a dividend rate of 5.35% for conventional savings and 4.75% for Shariah Savings for 2022. This was lower than 2021’s rate of 6.1% and 5.65% respectively. Pankaj C. Kumar, Business Commentator gives us his comments on their performance and how we can rebuild the savings of Malaysia after RM145billion was withdrawn during the pandemic.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Prime Minister Dato’ Sri Anwar Ibrahim and his unity government have weathered 100 days in office to mixed results. Anwar has managed to marry parties that were once on opposing sides, namely PH and BN, and bring about a degree of stability in Malaysian politics. However with so many political stakeholders to please coupled with the upcoming State elections, the Prime Minister has a lot to ponder about. How will all these developments affect Malaysian politics? For answers, we speak to Dr. Azmi Hassan, Research Fellow, Nusantara Academy of Strategic Research.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

China’s annual National People’s Congress started yesterday morning, an important political event watched closely that will last until March 13. At the opening, Premier Li Keqiang gave his last government report whilst outlining a gross domestic product (GDP) target of 5% for 2023. Alfredo Montufar-Helu, Head of the China Center for Economics and Business, The Conference Board gives us observations of events so far and on the significant changes in leadership.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

In the revised Budget 2023, Prime Minister Dato’ Sri Anwar Ibrahim said that people who were declared bankrupt deserved a second chance and announced several measures that would provide a lifeline to those who find themselves in these unwanted circumstances. We speak to Linnet Lee, CEO of Financial Planning Association of Malaysia to understand why the rise in bankruptcy cases and what are the possible solutions for this issue.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Under the revised Budget 2023, the government increased funding for the Ministry of Natural Resources, Environment and Climate Change (NRECC) and doubled allocations to the Ecological Fiscal Transfer for Biodiversity Conservation. How far do these measures go to protect the environment and wildlife? On World Wildlife Day, we discuss policy recommendations to improve environmental sustainability with forestry researcher Dr. Lim Teck Wyn.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Tesla CEO Elon Musk presented his long-awaited Master Plan Part 3 during the annual Investor Day conference this week. Musk and his team announced that  assembly costs would be cut by half in future generations of cars, but he did not unveil a small, affordable electric vehicle option as was hoped. What does this bode for the company's outlook? Dan Ives gives us his takeaways from Investor Day and the prospects ahead.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Last Saturday marked the 37th anniversary of the “People Power Revolution” that brought down the late Philippine dictator Ferdinand Marcos after two decades of rule. In a twist of fate, the son of the ousted leader is now the President of the country. How is President Ferdinand "Bong Bong" Marcos contending with his family's contentious legacy? We get insights from political analyst Andrea Chloe Wong, who also shares her views on the state of bilateral ties between Malaysia and the Philippines.Image credit: TwitterSee omnystudio.com/listener for privacy information.

Prime Minister Dato' Sri Anwar Ibrahim has made social justice and tackling inequality a benchmark of his MADANI philosophy. How well do his Budget 2023 initiatives achieve those aims? We get reactions from Dr. Michael Jeyakumar of Parti Sosialis Malaysia (PSM).Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The government has made tackling cybercrimes a priority, with RM10 million allocated to the National Scam Response Centre in Budget 2023. The Prime Minister has also called for banks to provide a "kill switch" to allow users to freeze their accounts when suspicious transactions are flagged. We speak to cybersecurity expert Dr. Selvakumar Manickam for his recommendations to counter online fraud and scams.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Budget 2023 introduced a luxury tax which would be implemented this year as a new step to broaden the tax base to those who had the means. However, details on what luxury goods actually are and what rate the tax will be have yet to be finalised. Tan Hai Hsin, Managing Director of Retail Group Malaysia, talks about how the local retail sector might be impacted.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Ministry of Health received the second highest budget allocation at RM36.3 billion ringgit, amounting to 9% of the total budget. While generous on paper, does it address the urgent needs of the public healthcare sector for both the short and long-term? Azrul Khalib of the Galen Centre gives us his assessment.  Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Export volumes for the Asia Pacific region have been seeing a steady decline as 2022 drew to a close, with China’s exports falling year-on-year in October, for the first time since May 2020. Alex Holmes, Senior Economist at Oxford Economics talks about the scenario going forward as consumption patterns change.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

There were a plethora of goodies for SMEs in Budget 2023, most notably the cut in corporate tax by 2% to 15%. But does this go far enough in terms of assistance needed? Chin Chee Seong, National Secretary General of the SME Association of Malaysia tells us whilst offering his own suggestions.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Education Ministry received the biggest slice of the Budget 2023 pie with an allocation of 55.2 billion ringgit. Close to 90% of this increase in allocation will be used to upgrade and maintain buildings and amenities of schools. Some other initiatives include distribution of 50 thousand laptops and increase in allocation for several food program to address poverty and malnutrition. So does Budget 2023 help the national education sector realise its potential? For insights, we speak to Shahnaz Al-Sadat, Chairperson, LeapEd ServicesImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Turkish President Recep Tayyip Erdogan's popularity was already declining even before the massive earthquakes that hit the country on February 6th, with the economy in the doldrums amplified by the President’s unconventional monetary policies. However the devastation from the disaster, which the World Bank estimates at USD$34 billion, has raised public furor towards the government. What impact might this have on Erdogan's re-election chances? We discuss the political impact of the earthquakes in Türkiye with Middle East expert Dr. James Dorsey.Image credit: EPA-EFESee omnystudio.com/listener for privacy information.

PKR announced that the dates of the anticipated 6 state elections will be unveiled before the end of March. The six states are the three PH-controlled Negeri Sembilan, Penang and Selangor, as well as PAS-led Kedah, Kelantan and Terengganu. While seat negotiations will be difficult to balance but more importantly, Prime Minister, Anwar will be under pressure to deliver and show that the current government is still relevant. For insights, we speak to Asrul Hadi Abdullah Sani, Deputy Managing Director BowerGroupAsia.See omnystudio.com/listener for privacy information.

At first glance, Budget 2023 which is the largest in history at RM388.1bn seems at odds when the Prime Minister has repeatedly warned of our mounting debts. We speak to Sim Kwang Gek Country Tax Leader at Deloitte Malaysia for the her views on the new tax regime that offers tax cuts for the M40 whilst raising it for the T20. We also consider if the Government is serious about its net zero target by 2050 by examining the tax cuts and initiatives that support its Green agenda.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Budget 2023 was the highest spending allocation ever at RM 386.1 billion (or 20.4% of GDP) compared to the initial budget tabled last year which was RM 372.2 billion. The revised budget will see the government spending RM289.1 billion on operating expenditure and RM99 billion development expenditure. However, given there was an absence of GST and target rationalisation of subsidies, did this maiden Budget by the Unity Government hit the mark when it came to its objective whilst keeping to its fiscal consolidation promises? For answers, we speak to Julia Goh, Senior Economist, UOB Malaysia.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

The impact of the war in Ukraine has reverberated throughout the global economy, creating energy shortages, disrupting agriculture supply chains and fueling higher prices worldwide. Will these effects linger in 2023 and how much will this dampen global growth? Suan Teck Kin of UOB gives us his analysis.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Ahead of the Budget 2023 tabling this afternoon, we speak to Muar MP and MUDA President Syed Saddiq on the initiatives needed for Malaysian youth to gain foothold amid uncertain economic conditionsBrought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

24th February marks the one year anniversary of the war in Ukraine. We speak to Denys Mykhailiuk, Chargé d'Affaires of the Ukrainian Embassy in Malaysia for an update on the situation of the ground, their war efforts and what will bring about peace.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

What was envisioned as a short “special military operation” by Moscow has run for 12 months now with no end yet in sight. Despite setbacks, President Vladimir Putin in his latest state of the nation address maintained that the military operations would continue in order to protect Russian sovereignty. What are Moscow's ultimate goals in the conflict? We hear from His Excellency Naiyl Latypov, Russian Ambassador to Malaysia.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Minister of Health Dr. Zaliha Mustafa met with junior doctors in a town hall session on Thursday to solicit feedback on the state of public healthcare and how to resolve the myriad gaps in the system. This comes as surveys of Malaysian healthcare workers signal increasing frustration over the inertia in public health reforms. We speak to Dr. Helmy Haja Mydin, Special Adviser to the Minister of Health who moderated the event for insights into what happened behind closed doors.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

As part of our pre-Budget Series, we check in with the international business community based here in Malaysia as to their wish list. In the October 2023 budget, there was an extension of various tax incentives on eligible green projects and the implementation of a 15% global minimum tax in 2024. But is this enough or do MNCs here really want to see a stable government first and foremost and policies which are consistent and do not flip flop? For answers, we speak to Daniel Bernbeck, Executive Director of Malaysia-German Chamber of Commerce and Industry.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Hong Kong has been slower than other cities to recover from the pandemic, given the long running restrictions of China’s Covid zero policy. Many will be hoping that  the latest Hong Kong budget aims can spur recovery momentum. However, the government has the tricky challenge of also reducing a high deficit that has built up over the past three years. Did this budget manage to thread the needle in terms of balancing between recovery and prudence? Gary Ng of Natixis gives us the budget highlights.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

There are a myriad factors affecting the outlook for Singapore property, ranging from the strengthening currency, return of China tourists, sticky inflation and higher interest rate hikes. How would this affect the investment case for Singapore REITS? Krishna Guha of Maybank Investment Bank gives us his investment picks in this sector. Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Budget 2023 is going to get a redo this Friday and SMEs saw the October tabling as a preview for what's to come. Since then, challenges to how SMEs operate have become clearer amid rising cost of goods, labour shortages and a less-than-encouraging economic sentiment. Datuk William Ng, Chairman of the Small and Medium Enterprises Association (SAMENTA) outlines what the sector, which accounts for more than 90% of total business establishments in Malaysia, might be hoping to get.Brought to you by Mah Sing. Reinvent Spaces. Enhance LifeImage credit: ShutterstockSee omnystudio.com/listener for privacy information.

Malaysian news media and journalism have come under the spotlight this past week both in and out of Parliament. In response to calls for ethical journalism standards to be adhered to, the Minister for Communications and Digital has said that his ministry will look to amend the Communications and Multimedia Act 1998 to this end. But is there a solution in plain sight to address this issue apart from legislative changes? Media expert Dr. Benjamin Loh makes the case for setting up an independent media council to improve journalism ethics.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.