Morning Brief

For the last 10 years, the return of the FBMKLCI has been a dismal -11%. Will 2023 prove to be a turning point for Malaysia? Imran Yusof, Head of Research at MIDF Amanah Investment Bank tells us while giving us his FBMKLCI target and top stock picks.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

After winning just 30 seats at the GE15, what will be the mood at Umno's General Assembly? We ask Dr Azmi Hassan, Senior Fellow, Nusantara Academy of Strategic Research that question and who might throw their hat into the ring to be the next President of the party.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Nikkei 225 is down 10% for the year while Japan’s GDP shrank an annualised 0.8 percent in the third quarter, as global recession risks and higher import costs weighed on consumption. Also, core inflation climbed 3.7 percent in November which is at its four-decade high and raising pressure on the central bank to roll back its massive stimulus. Japan has bucked the trend and continues to keep interest rates at ultra-low levels. How will all this play out in 2023 and what investment strategy should investors consider? For answers we speak to Zui Shiromoto, Investment Manager, Neuberger Berman.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Recently, health news portal Code Blue has raised the alarm on overcrowding at emergency wards in public hospitals. This can be seen in hospitals such as the Raja Permaisuri Bainun Hospital in Ipoh, where critically ill non-Covid patients had to wait for up to six days in the emergency department. In response to this, Health Minister Dr Zaliha Mustafa announced that the ministry will address this. So what are the long term initiatives needed for the public healthcare sector? For insights, we speak to Assistant Professor Dr Farhan Rusli, Public Health Medicine Specialist.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Recently on social media, renowned healthcare expert Prof. Dr. Adeeba Kamaruzzaman lamented the fact that Malaysia was losing its best and brightest medical graduates to Singapore every year. This reignited a long, ongoing debate on how to tackle the pervasive brain drain in key economic sectors. Dr Niaz Asadullah, Southeast Asia Lead at the Global Labor Organisation, Professor of Economics, at Monash University Malaysia tells us if we can reverse this structural issue.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Extra ingredients are usually a welcome addition in a dish but not when it comes to rodents and insects. We speak to Jeremy Lim, Vice-President at Persatuan Pemilik Restoran dan Bistro as to what are the minimum health and safety standards for the F&B sector and is compliance and enforcement the real issue?Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Shanghai Composite Index is down 15% year-to-date but has bounced off its October lows following the China Party Congress meeting that month. Since then, there were a slew of changes with regards to Covid-19 restrictions which were fast and abrupt. More recently China said it will remove quarantine requirements for inbound travellers from January 8. Has the Chinese economy passed its most challenging period and what sectors and stocks should investors be keeping their eyes on in 2023?Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

How can the Federal Territories be better managed? We discuss the decision to park the Federal Territories portfolio under the Prime Minister’s Department with Koh Cha-Ly, CEO of Urbanmetry and whether DBKL can shift from being an effective execution entity to a more strategic policy setting.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The technology heavy Nasdaq index is down 34% year-to-date, trading at close to year lows. Even Cathie Wood’s Ark Investment Management has lost almost $50 billion in assets from its stable of exchange traded funds since its 2021 peak. With the market expecting interest rates to peak in the US in 1Q23 with a Fed Funds rate of just above 5%, does this mean that the worst is behind us and funds could start to flow into the sector in 2023? For insights, we speak to Dan Ives, Managing Director of Wedbush Securities.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

2022 began on a high note for China with the successful hosting of the Beijing Winter Olympics in February, despite the strict zero-Covid policy in place. In contrast, as the year comes to a close, China is going through a rocky period following the loosening of pandemic restrictions this month; as a result Covid-19 infections are skyrocketing and impacting economic productivity. How will President Xi Jinping navigate these challenges and more in the year to come? Dr. Pradeep Taneja of the University of Melbourne weighs in.Image credit: EPA-EFESee omnystudio.com/listener for privacy information.

Dato’ Sri Anwar Ibrahim’s government announced further progress towards abolishing the mandatory death penalty. Minister of Law and Institutional Reform Datuk Seri Azalina Othman said that the government would table a series of bills related to amending the law in the coming February parliamentary sitting. What is the significance of abolishing the mandatory death penalty and what kind of implications will this have for the legal system? For insights we speak to Goh Cia Yee, a criminal lawyer.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

2022 has been the year of the King US dollar, with the greenback surging to a fresh two decade high in September. Recently, currency markets reacted with surprise to the Bank Of Japan taking a slightly hawkish tone and tightening policy, causing the yen to soar to a four month high against the dollar. How will currencies in APAC perform in 2023 and what are the risks involved? For answers, we speak to Lloyd Chan, Senior Economist, Oxford Economics.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Prime Minister Dato’ Sri Anwar Ibrahim is considering scrapping the National Centre for Governance, Integrity and Anti-Corruption (GIACC), the overseer of the National Anti-Corruption Plan (NACP) that was launched in 2019. Would the government’s anti-corruption efforts be hindered by the abolishment of this agency or can existing agencies fill the vacuum? Cynthia Gabriel, Executive Director of the C4 weighs in.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The implementation of the amended Employment Act 1955 will come into effect on January 1, 2023 after a postponement from September this year. Chin Chee Seong, National Secretary General of the SME Association of Malaysia tells us why their organisation is advocating for a delay of this legislation and their reasons for it whilst giving us an outlook for 2023.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The oil and gas sector has been one of the better performing sectors this year, despite volatility in demand due to geopolitical tensions and China’s zero Covid policy. And while demand uncertainty will carry on into the first half of 2023, analysts are largely upbeat about the prospects for oil and gas in the new year, specially on the back of Petronas’ recently released activity outlook for 2023 to 2025. TJ Liaw of Maybank Investment Bank gives us the key takeaways.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Jakarta Composite Index is still up by 3.6% year-to-date and remains one of the few Asia markets still in positive territory. The economy appears to be on a stronger footing and inflation more contained and the November print coming in at 5.4%. Meanwhile, Bank Indonesia expects GDP for 2023 to expand from 4.5% to 5.3%. What does all this mean for Indonesia equities going in 2023 and which sectors should investors be focusing on? For answers, we speak to Jerry Goh, ASEAN Equities, Investment Manager, ABRDN.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

One of the persistent economic themes this year has been the shortage of foreign workers in key sectors such as plantations, construction and services. Why have bottlenecks persisted despite agreements signed with source countries? We discuss ways to alleviate the labour shortage with political economist Khor Yu Leng.Image credit: Hafiz Johari / Shutterstock.comSee omnystudio.com/listener for privacy information.

The floods on the east coast have become a regular fixture during monsoon season, but this year is shaping up to be one of the worst in recent record for some areas. How are relief and rescue efforts being coordinated between government authorities and civil society, and what kind of help is most needed from those on the ground? For more insights, we speak to Amran Mahzan, Executive Director of MATCH Foundation.Image credit: EPA-EFESee omnystudio.com/listener for privacy information.

From early 2020, a surge in global demand for PCs and logistics disruptions created the perfect storm for semiconductor shortages. This pushed lead times to reach a new high of around 20 weeks in April last year. The chip shortage situation has brought attention to the outsized role played by Asia in semiconductor manufacturing. But with recession headwinds impacting the global economy and US Chip Act restricting exports to China, will the boom last for Asia Pacific’s semiconductor industry? For insights, we speak to Alex Holmes, Senior Economist, Oxford Economics.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The 15th Parliament convened yesterday for the first time since the general elections with the current seating chart reflecting the new political alliances in Malaysia. Crucially, the Prime Minister also succeeded in passing the motion of confidence via a voice vote. What tone does this sitting set for the agenda of the new government? Political analyst Dr. Oh Ei Sun weighs in with his analysis.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The glove industry rose like a phoenix in 2020 where it was the strongest beneficiary of the Covid-19 pandemic. The sharp expansion in average selling prices led to many small players jumping on the bandwagon, and even saw the rise of China as a glove manufacturer. Now, however, the industry has since fallen hard and is now reeling from overcapacity issues, deteriorating average selling prices and rising gas prices. What does the future hold for glove makers and when will the supply demand dynamics achieve equilibrium? For more insight, we speak to Dr Supramaniam Shanmugam, President, MARGMA.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

As the war in Ukraine continues with Russia intensifying their efforts, targeting infrastructure, we speak to Denys Mykhailiuk, Chargé d'Affaires at the Ukrainian Embassy in Malaysia for an update on the situation. We also ask if the Ukrainians are prepared for a cold long winter and if peace will prove elusive.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

For insights on the situation in Sri Lanka, we ask Faraz Shauketaly, Editor of Ceylon Independent on whether the situation has improved following months of street protests that began early this year that culminated in the resignation of former President Gotabaya Rajapaksa in May.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Batang Kali landslide is a timely but a tragic reminder for Malaysia to relook its guidelines and laws with all things related to development. We speak to Assoc. Prof. Architect Sarly Adre Sarkum, President of the Malaysian Institute of Architects as to what the gaps are and how the realities of climate change can be incorporated.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Tragically, a total of 24 victims have been confirmed dead at last count due from the Batang Kali landslide. Meanwhile, sixty-one people have been rescued while nine are still missing. Search and rescue operations are continuing at the Father’s Organic Farm campsite and investigations have begun. Nik Nazmi Nik Ahmad, Minister of Natural Resources, Environment, and Climate Change gives us an update on the situation and what steps the government will take to prevent a repeat of this. Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Under the new government, the portfolio held previously by two ministries has been merged into one: the Ministry of Natural Resources, Environment and Climate Change. It’s a behemoth portfolio helmed by Setiawangsa MP Nik Nazmi Nik Ahmad with implications for the sustainability of the country, especially amid a global push towards renewable energy and reduction of fossil fuel usage. How should the government navigate the demands for sustainable economic activity while at the same time building resilience against climate change impact? We discuss policy recommendations with Alizan Mahadi of ISIS Malaysia.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Despite the disappointing lack of female representation among GE15 candidates, the Prime Minister has attempted to redress the imbalance in the Cabinet. The current line-up features five ministers and eight deputies who are women, making up 24% of the total composition, which is an improvement from previous administrations. What are the important gender-responsive policies that should be looked into by the new government? We discuss policy recommendations with Anis Farid of WAO.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The Bank of England is forecasting a recession that will last till 2024. Yet the FTSE100 has been surprisingly resilient. We ask Craig Erlam, Senior Market Analyst at OANDA whether it's time to invest in the UK and if so, what are the investment opportunities.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Prime Minister Datuk Seri Anwar Ibrahim has made tackling the cost of living a priority for the new government. In his first days in office, the PM set a two week deadline for the National Action Council on the Cost of Living to come up with a proposal on targeted subsidies and their implications. How should the subsidy mechanism be revised to improve effectiveness and efficiency? We get suggestions from Dr. Ahmed Razman Abudl Latiff of Putra Business School, UPM.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Wong Yan Ke, Activist and Former President of Universiti Malaya Association of New Youth (UMANY) makes the case why it is now high time for the Higher Education Ministry to repeal the Universities and University Colleges Act 1971 (AUKU), provide greater autonomy for campus elections and transparency in the appointment of vice-chancellors and managing boards.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

New Zealand has become the first country to legislate a generational end-game for smoking, with sale of tobacco products banned for those born in 2009 beginning next year. What lessons can Malaysia draw from the Kiwi experience? We speak to Tony Blakely, Professor of Epidemiology at the University of Melbourne for insights.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Prime Minister Dato’ Sri Anwar Ibrahim has signalled that institutional reform is a core pillar of his agenda with the appointment of Dato’ Sri Azalina Othman as the Minister for Law and Institutional Reform, and Ramkarpal Singh as her deputy. The policy wishlist of reforms is no doubt a long one - what does civil society see as the most important issues to tackle? Jerald Joseph, advisor to the CSO Platform for Reform weighs in.Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The World Tourism Organization said that international tourism is on track to reach 65% of pre-pandemic levels by the end of 2022. To what extent is Malaysia capturing this rebound in tourism? That’s a key question for the newly appointed Minister of Tourism, Bintulu MP Dato’ Sri Tiong King Sing. What do tourism industry players need to consider in light of this? For more insights, we speak to Nigel Wong, Honorary Treasurer and Spokesperson of Malaysian Association of Tour and Travel Agents (MATTA).Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

2022 was a record year for agriculture prices, no thanks to a perfect storm of climate change, the war in Ukraine and high energy prices but will this trend continue in 2023? Alvin Tai, Analyst at Bloomberg Intelligence tells us whilst explaining why the correlation between high agriculture prices is not translated to stock prices.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

With 4 MPs from Gabungan Rakyat Sabah (GRS) leaving Sabah Bersatu, lawyer Kee Hui Yee gives her perspective as the landmark anti-hopping law that came into force on 5th October is put to the test.Image credit: msyaraafiq / Shutterstock.comSee omnystudio.com/listener for privacy information.

Dr Zaliha Mustafa, the MP for Sekijang has the distinction of being the country’s first woman health minister in the new government. The portfolio is a demanding one, especially with the Covid-19 pandemic magnifying the inadequacies of our health system. What issues should be prioritised by the Ministry of Health? Azrul Mohd Khalib of the Galen Centre gives us his recommendations.Image credit: BernamaSee omnystudio.com/listener for privacy information.

With China showing signs of reopening, will 2023 be a smoother, less turbulent year for global aviation in particular in Asia? We speak to Shantanu Gangakhedkar at Frost & Sullivan on what he’s watching in the coming year.Image credit: Thanathip Rattanatum / Pexels.comSee omnystudio.com/listener for privacy information.

The new Works Minister Datuk Seri Alexander Nanta Linggi will have his hands full. One of his top priorities include ensuring the completion of Pan Borneo Highway in Sarawak and Sabah. Additionally, the condition of federal roads in the country remains in focus where in September, the works ministry announced that an allocation of 3.4 billion ringgit is needed to repair damaged federal roads throughout peninsular Malaysia. What role does the Works Ministry play in the development of infrastructure in the country? For insights we speak to Dr Ahmad Farhan Mohd Sadullah, Professor of Transport Engineering, Universiti Sains Malaysia.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The line up of twenty seven Deputy Ministers was finally revealed with a mix of old and new faces from the various parties. Ibrahim Suffian, Program Director at Merdeka Centre helps us to unpack the nuances of this whilst diving into the recent news headlines on Perikatan Nasional including the Gabungan Rakyat Sabah (GRS) split from Bersatu.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Japan has revised its third quarter GDP figures, under the expectation that it will shrink to 0.8% on an annualised basis instead of 1.2%. But this doesn’t eliminate concerns over the economy’s resilience heading into 2023, even with the 210 billion US dollars. Moreover, the yen's persistent weakness against the US dollar has impacted prices of imports; Japan recorded a current account deficit of 4.5 billion US dollars in October. How long can The Bank of Japan keep the policy of low-interest rates? For answers, we speak to William Pesek, Tokyo-based journalist and columnist, Nikkei Asia.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Prime Minister Datuk Seri Anwar Ibrahim is in the midst of calling for an investigation on Digital Nasional Berhad (DNB), the government entity tasked for the 5G rollout in Malaysia. Part of the review will be on the tender process which was perceived to not be done in a transparent manner. New Communications and Digital Minister Fahmi Fadzil also assured that the current 5G rollout will still continue. How will Malaysia's 5G initiative pan out with all these delays and especially when the country is already behind regionally? For answers, we speak to Alexander Wong, Managing Editor and Co-Founder of SoyaCincau.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Segambut MP, Hannah Yeoh, as the newly appointed Minister of Youth and Sports has said that she will not introduce new programmes or policies but instead work with what is already in place. We speak to Haresh Deol, Editor of the online portal twentytwo13.my as to what her priorities will be nonetheless and whether sports in the country needs a shake up.Image credit: Kementerian Belia dan Sukan MalaysiaSee omnystudio.com/listener for privacy information.

Indonesian lawmakers have ratified changes to its colonial-era criminal code that impose bans on insulting the President and state institutions, views that contradict state ideology, protests without a permit, sex outside marriage and non-marital cohabitation. Dr Ross Tapsell, Senior Lecturer at Australian National University tells us why the government wants to impose these laws and what it means for civil liberties in the 3rd largest democratic country in the world.Image credit: Willy Kurniawan/ReutersSee omnystudio.com/listener for privacy information.

With growing calls from all quarters to relook and even pull out from the CP-TPP that was ratified by the Dato Sri Ismail Sabri administration, Professor Rajah Rasiah from Universiti Malaya outlines the challenges and complexities that come with this controversial agreement.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Jerald Joseph, Director of Pusat KOMAS and former SUHAKAM commissioner outlines the policies and personnel actions that the new Home Minister Saifuddin Nasution must prioritise.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

A year ago, global manufacturing activity took a huge hit no thanks to supply chain bottlenecks that were exacerbated by Covid induced factory shutdowns. This reversed in early 2022 with recovery in demand and the revenge shopping phenomenon. However, with rising inflation and a global economic slowdown, can Asia Pacific still see strong manufacturing activity as financial conditions tighten? For answers, we speak to Sung Eun Jung, Senior Economist, Oxford Economics.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

Klang Valley residents have had to endure long commutes on roads and on trains. Is this due to our flawed transportation model? What should the priorities of our new Minister of Transport be? We ask Dr Rosli Khan, Transport Consultant, that question.Image credit: Anthony Loke Siew Fook / FacebookSee omnystudio.com/listener for privacy information.

This week marks the first working week for Dato' Sri Anwar Ibrahim's administration, in the new reality where Pakatan Harapan and Barisan Nasional are on the same rather than opposing sides of the aisle. The PH-BN cooperation is also being displayed in the Padang Serai and Pulau Tioman by-elections. Will this fragile alliance survive the Umno party elections? Political analyst Dr. Azmi Hassan weighs in.Image credit: EPA-EFESee omnystudio.com/listener for privacy information.

Oil prices had a good run in 2022 but it has given up all of its gains and is flat YTD at under US$80 per barrel. Meanwhile, the Group of Seven nations, Australia and the 27 European Union states imposed a US$60 per barrel price cap on Russian seaborne crude oil this week. Will this price cap work and how will Russia retaliate? Also, what does this mean for oil prices especially with China looking to re-open its borders in 2023? For insights and stock picks, we speak to TJ Liaw, Regional oil and gas analyst at Maybank Investment Bank.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.

The recent appointment of first time elected MP Fadhlina Sidek as the new Minister of Education certainly raised some eyebrows. Many wonder if the first time MP and minister is able to tackle many challenges afflicting the ministry, ranging from reading proficiency, learning poverty and effect of lockdowns on learning. For reactions and recommendations for the new minister, we speak to Shahnaz Al-Sadat, Chairperson of LeapEd Services.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.