Morning Brief

Khazanah Research Institute released its second 2020 State of the Household report. Siti Aiysyah Tumin, author of the report and Research Associate at Khazanah Research Institute, helps us understand the numbers and underlying issues on growing disparities between labour groups and regions in Malaysia. Image Credit: Azami Adiputera / ShutterstockSee omnystudio.com/listener for privacy information.

As polls close across the United States, we discuss why results may not come out on the election night itself, as well as the key swing states that will influence who wins 270 electoral college votes. Image Credit: EPA-EFESee omnystudio.com/listener for privacy information.

Bank Negara Malaysia maintained the overnight policy rate at 1.75% on the back of better economic prospects despite the CMCO. Woon Khai Jhek, Senior Economist at RAM Rating Services, discusses his economic predictions. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Certain UMNO leaders are championing to allow EPF contributors to withdraw from Account 1 to survive the current economic hardship. Firdaos Rosli, Head of Economic Research at Malaysian Rating Corporation Berhad, weighs in from a macroeconomist perspective. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

How will the US election impact capital markets? US markets have had a rough few weeks, with the Dow Jones closing out October with a 4.6% loss, marking its worst monthly performance since March. Beyond that, the S&P 500 fell 2.8% and the Nasdaq slipped 2.3% last month, both suffering their second straight negative month. Aside from the Presidential elections, the Senate election could also be crucial for the markets as many key policy shifts, including further fiscal stimulus, hinge on who holds the majority control. Given the lingering uncertainty, how could markets play out following election day? Image Credit: Christos S / ShutterstockSee omnystudio.com/listener for privacy information.

With borders to remain closed for the foreseeable future, things are not looking up for the tour and travel industry. To make matters worse, tourism industry players have now been saddled with claims from consumers, after failing to make refunds for cancellations brought about by the Covid-19 pandemic. To help us get a better sense of the situation, we speak to Nigel Wong, Honorary Secretary General of the Malaysian Association of Tour and Travel Agents (MATTA) about the industry's pain points, and what he hopes to see out of Budget 2021. Brought to you by Mah Sing. Image Credit: Hafiz Johari / ShutterstockSee omnystudio.com/listener for privacy information.

Political jockeying continues with UMNO demanding for more political positions and power. We catch up with Dr. Hamidin Abdul Hamid, Research Fellow at the Ilham Centre, as Parliament sitting commences today. Will the motion of no-confidence against Tan Sri Muhyiddin Yassin (TSMY) see the light of the day? What concessions will TSMY make to appease UMNO warlords? If a Deputy Prime Minister is picked from UMNO, who is a likely candidate? Image Credit: Laboo Studio / ShutterstockSee omnystudio.com/listener for privacy information.

Last week, oil prices hit their lowest point since May, with Brent crude dipping below $37 per barrel. After some initial promising signs of recovery due to economies reopening and production cuts, Brent had been trading steadily between $40 to $45 a barrel for much of the summer, but now we’re seeing fresh restrictions placed on parts of Europe such as the UK and France. Here in Malaysia, Budget 2021 is also being announced later this week, and oil prices are a key thing to watch since the Budget will be made based on an oil price assumption. Last year, the budget was based on the assumption of oil prices averaging US$62 per barrel, but that will likely be much lower this year. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Last week, oil prices hit their lowest point since May, with Brent crude dipping below $37 per barrel. After some initial promising signs of recovery due to economies reopening and production cuts, Brent had been trading steadily between $40 to $45 a barrel for much of the summer, but now we’re seeing fresh restrictions placed on parts of Europe such as the UK and France. Here in Malaysia, Budget 2021 is also being announced later this week, and oil prices are a key thing to watch since the Budget will be made based on an oil price assumption. Last year, the budget was based on the assumption of oil prices averaging US$62 per barrel, but that will likely be much lower this year. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Local tourism saw a slight boost when the economy re-opened. During this CMCO, however, stepping inside hotels, you don’t see too many people. Yap Lip Seng, Chief Executive Officer (CEO) of the Malaysian Association of Hotels, tells us what he hopes for Budget 2021 to save hotels from going down south. Brought to you by Mah Sing. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

The A-TEAM of tech: Amazon, Alphabet and Apple, released their results last night along with Facebook and Twitter. Daniel Ives, Managing Director for Equities Research at Wedbush Securities, gives a detailed breakdown of their results and answers the million-dollar question of whether the sector is overpriced and ripe for a correction. Image Credit: Koshiro K / ShutterstockSee omnystudio.com/listener for privacy information.

The economic crisis brought on by Covid-19 has meant unemployment rates have risen around the world. Malaysia is no different, with an increase of 5% seen in our unemployment numbers this year. Nevertheless, a survey by human resources consulting firm, Mercer, recently found that Malaysians' salaries are still expected to increase by 4.5% this year. We speak to Koay Gim Soon, Consulting Leader for Malaysia at Mercer, to find out more. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

For the next five years, it appears that China will be looking to emphasize quality growth over speed, in its quest to build itself into a self-reliant, technological powerhouse. Beijing's efforts are gaining urgency, particularly as the US has sought to curb its advancement, pressuring allies to shun equipment from Huawei and barring dozens of China's largest tech companies from buying American parts. For some insight, we reached out to Gary Ng, Asia-Pacific Economist at Natixis, for his take on the Five-Year Plan, and whether this will truly allow China to decouple from America. Image Credit: Mirko Kuzmanovic / ShutterstockSee omnystudio.com/listener for privacy information.

According to the Mercer CFA Institute Global Pension Index 2020 released last week, Malaysia ranked 19th out of 39 countries in terms of how well its retirement system functions. Dr Amjad Rabi, Visiting Fellow at the University of Malaya Social Wellbeing Research Centre, tells us how we can improve our rankings and what are the potential issues that Malaysia will face as the percentage of the ageing population increases. Image Credit: Lano Lan / ShutterstockSee omnystudio.com/listener for privacy information.

Credit Counselling and Debt Management Agency, better known as AKPK, has noted that debt repayment has been moving towards pre-pandemic levels this month. We speak to Nirmala Subramaniam, Manager at the Financial Education Department, to find out what are the existing pain points that Malaysians are facing especially with the re-imposition of the Conditional Movement Control Order (CMCO). Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Japan wants a cleaner, greener future, aiming to be carbon-neutral by 2050. But according to William Pesek, a Columnist at Nikkei Asian Review, that timeline could be more demanding and urgent, while also being contingent on Prime Minister Yoshihide Suga lasting the course in his role and his clean ambitions. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

The ongoing shift towards e-commerce has birthed a fiercely competitive logistics industry, with 109 courier license holders in operation in Malaysia as of October 2020. On the back of the fact that the Malaysian Communications and Multimedia Commission (MCMC) have suspended issuances of new licenses for two years, we speak to Cheong Yen Li, Associate Director at PwC, to give us a picture of the size of the industry, as well as what we can expect from it moving into this new normal. Image Credit: hkhtt hj / ShutterstockSee omnystudio.com/listener for privacy information.

Political intrigue continues in Malaysia with UMNO concluding their supreme council meeting with a reaffirmation of their support for the Perikatan Nasional government. We speak to Dr Oh Ei Sun, Senior Fellow at the Singapore Institute of International Affairs, on the future of this coalition and what options Tan Sri Muhyiddin Yassin has to secure bipartisan support for Budget 2021. Image Credit: Abdul Razak Latif / ShutterstockSee omnystudio.com/listener for privacy information.

Questions always arise over what is fair remuneration for directors and what should it be based on. Is there a sweet spot? We speak to Foo Lee Mei, Chief Regulatory Officer at the Securities Commission Malaysia, for her views. We also ask about the recent findings of their Corporate Governance Monitor 2020 report. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Google will release its third-quarter results on Thursday and as we look ahead to that, a shadow looms over the company as it is faced with a landmark lawsuit from the US Department of Justice in what will be the biggest antitrust suit in 20 years. The Justice Department argues that Google is a monopoly, is illegally maintaining that monopoly, and that Google’s dominance may stifle innovation and reduce choice in the long term. That being said, Google is free and isn't directly hurting consumers, so does the DOJ have a case? Image Credit: Jay Fog / ShutterstockSee omnystudio.com/listener for privacy information.

Although a state of emergency was not declared, what is the impact on the Malaysian economy and market? What is the perception of foreign investors and international rating agencies? Stephen Innes, Global Chief Market Strategist at Axi, gives us his views on the matter and also whether he is a bull or bear on the Malaysian market.See omnystudio.com/listener for privacy information.

The Yang di-Pertuan Agong Sultan Abdullah Sultan Ahmad Shah decided against a state of emergency yesterday evening in response to Prime Minister Tan Sri Muhyiddin Yassin’s proposal last Friday. In an official statement from the Palace, the King viewed the government’s measures to fight the pandemic as effective, and had confidence they would be able to continue doing so. In response, the Prime Minister thanked the King for having trust in his government, and that he will discuss what the next steps are with the Cabinet. For some expectations of what we could see next, we speak to Ben Suffian of Merdeka Center. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The US presidential debates are over, and up next is Election Day on Tuesday, November 3rd. Biden is leading in the polls, but will that actually translate into votes on the day? Also, what are the most important states to watch? We discuss this and more with Robert Shapiro. Image Credit: Christos S / Shutterstock.comSee omnystudio.com/listener for privacy information.

A lack of clarity over SOPs and the newest iteration of the Conditional Movement Control Order (CMCO) have caused significant disruption to businesses and confusion all around. As cases remain high, there is no disputing that movement restrictions are necessary - but could things have been done better? Laurence Todd, Director of Research and Development at IDEAS, gives us his thoughts on government communication strategies, the long term economic effect of Covid-19 restrictions, and what he would like to see in Budget 2021. Image Credit: kong ys / Shutterstock.comSee omnystudio.com/listener for privacy information.

Sales of new cars came back strong immediately after the Movement Control Order (MCO) ended, spurred on by pent-up demand and government incentives. But as Covid-19 cases rise and movement is once again curtailed, what does the future hold for the automotive sector? We speak to Vivek Vaidya, Associate Partner at Frost & Sullivan, about changing consumer trends, regional government support measures, and what Malaysia's automotive sector can do to remain competitive in this new normal. Image Credit: Yakov Oskanov / Shutterstock.comSee omnystudio.com/listener for privacy information.

Goldman Sachs has been slapped with penalties in the US to the tune of $2.9 billion, after pleading guilty to crimes linked with the 1MDB scandal. The bank will also claw back compensation worth $174 million from both past and current executives as a result. For some insight on whether this admission of guilt will actually impact Goldman Sachs, as well as thoughts on its effect on the ongoing 1MDB trial, we speak to P. Gunasegaram, Editorial Consultant for news portal The Vibes, and author of the book '1MDB: The Scandal That Brought Down A Government'. Image Credit: Faiz Zaki / ShutterstockSee omnystudio.com/listener for privacy information.

Chinese fintech giant Ant Group has cleared the final regulatory hurdle for its IPO after the China Securities Regulatory Commission gave it the all-clear to list simultaneously in Hong Kong and Shanghai. The Group is planning to raise $35 billion dollars in the dual listing and will split its stock issuance equally across Shanghai and Hong Kong, issuing 1.67 billion shares in each location. This could be the world’s largest IPO, surpassing the record set by Saudi Aramco's $29.4 billion float last December. Ant Group has also released some updated financial figures for the first nine months of 2020. According to an A-share prospectus posted on the Shanghai exchange, there was a 74% jump in gross profit to $10.4 billion from January to September and revenue was $17.73 billion, a more than 42% year-on-year rise. The Group’s next move is to hold a roadshow to market the IPO to investors and will likely price the shares next week on 27th October. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Dr Geoffrey Williams, HELP university updates on the challenges faced by private higher education institutions, and his hopes for Budget 2021. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Big Japanese clothing groups Fast Retailing and Ryohin Keikaku, the owners of Uniqlo and Muji, expect record profits for the year ahead despite a global retail downturn. The two companies are recovering far faster than their Western peers, so we reached out to Catherine Lim, Senior Analyst for Asia Consumer at Bloomberg Intelligence, to find out more. Image Credit: August_0802 / ShutterstockSee omnystudio.com/listener for privacy information.

The Prime Minister has hinted that sustainable development will be given a special focus in Budget 2021. Frederik Paulus, Economic Advisor of REFSA, discusses Malaysia’s climate change commitments and what more needs to be done. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

Are regular spikes and lockdowns the new normal? On the back of positive cases crossing the 40 million mark this week, we speak to Benjamin Cowling for his thoughts on the surge, efforts to contain the virus, whether lockdowns are the way to curb the spread, and vaccine expectations. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

The number of Covid-19 cases has been rising quickly in Sabah, accounting for close to 75% of active cases in Malaysia. Dr Anbarasu Ramalingam, Chairperson of MERCY Malaysia Sabah, updates in the trenches. Image Credit: Lano Lan / Shutterstock.comSee omnystudio.com/listener for privacy information.

S. Piarapakaran, President of the Association of Water and Energy Research Malaysia (AWER), helps us understand why water cuts occur in Selangor, the most developed state in the country, and suggests proposals to resolve our woes. Image Credit: Afif Abd. Halim / Shutterstock.comSee omnystudio.com/listener for privacy information.

The end of the blanket loan moratorium in September has triggered concern that people whose income is still suppressed as a result of the pandemic will not be able to service their loans. Although there is a targeted loan moratorium in place, the National Union of Bank Employees is calling for the government to reinstate the blanket moratorium for low-wage groups and SMEs. To find out more, we speak to J Solomon, NUBE General Secretary, about funding trials, inconsistency in conditions set, as well as the impending Budget 2021. Image Credit: Laboo Studio / ShutterstockSee omnystudio.com/listener for privacy information.

Richard Shaw, Professor of Politics at Massey University in New Zealand discusses Jacinda Ardern’s priorities after her landslide victory, if having a high number of inexperienced MPs would be a setback, and direction on foreign policy with China. Image Credit: ShuttlestockSee omnystudio.com/listener for privacy information.

With Prime Minister Tan Sri Muhyiddin Yassin's majority in the Dewan Rakyat in doubt and a flood of no-confidence motions, all eyes are now set on the upcoming parliamentary session beginning November 2nd. Will these motions see the light of day on the parliament floor or be buried under government business? We also get into the importance of Budget 2021 as a motion of confidence in the prime minister. Image Credit: Lens Hitam / Shutterstock.comSee omnystudio.com/listener for privacy information.

Thousands of people in Bangkok continue to take the streets despite a ban on gatherings. Dr. James Gomez, Regional Director of Asia Centre discusses possible scenarios for the government and the monarchy. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

Political jockeying continues, the latest being Dato' Seri Anwar Ibrahim claiming to have majority MP support and UMNO’s hints of withdrawing support for Perikatan Nasional unless given more plum positions. Dr. Hamidin Abdul Hamid, Research Fellow at Ilham Centre, discusses the potential winner and loser in our version of the Hunger Games. Image Credit: Shahjehan / Shutterstock.comSee omnystudio.com/listener for privacy information.

Political jockeying continues, the latest being Dato' Seri Anwar Ibrahim claiming to have majority MP support and UMNO’s hints of withdrawing support for Perikatan Nasional unless given more plum positions. Dr. Hamidin Abdul Hamid, Research Fellow at Ilham Centre, discusses the potential winner and loser in our version of the Hunger Games. Image Credit: Shahjehan / Shutterstock.comSee omnystudio.com/listener for privacy information.

Thousands of people in Bangkok continue to take the streets despite a ban on gatherings. Dr. James Gomez, Regional Director of Asia Centre discusses possible scenarios for the government and the monarchy. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

What will be the fate of the beleaguered Malaysia Airlines? Khazanah, the national carrier’s sole shareholder, could inject funds into its sister airline Firefly, which would subsequently become the national airline.Reports suggest this could become a reality if the current debt restructuring plan fails. So for on the implications of this, we get analyst Khair Mirza's thoughts on this. On The Breakfast Grille a couple of weeks ago, Finance Minister Tengku Datuk Seri Zafrul Aziz said the government will not pour funds into Malaysia Airlines, nor guarantee its debts. And it’s up to Khazanah to decide what’s next. You can listen in on this conversation here. Image Credit: Lens Hitam / Shutterstock.comSee omnystudio.com/listener for privacy information.

What will be the fate of the beleaguered Malaysia Airlines? Khazanah, the national carrier’s sole shareholder, could inject funds into its sister airline Firefly, which would subsequently become the national airline.Reports suggest this could become a reality if the current debt restructuring plan fails. So for on the implications of this, we get analyst Khair Mirza's thoughts on this. On The Breakfast Grille a couple of weeks ago, Finance Minister Tengku Datuk Seri Zafrul Aziz said the government will not pour funds into Malaysia Airlines, nor guarantee its debts. And it’s up to Khazanah to decide what’s next. You can listen in on this conversation by clicking on the link below: https://www.bfm.my/podcast/morning-run/the-breakfast-grille/what-next-for-malaysias-economy Image Credit: Lens Hitam / Shutterstock.comSee omnystudio.com/listener for privacy information.

The Khazanah Research Institute’s State of Households 2020 report has highlighted a concerning trend of rising living costs, insufficient social security systems and a fast-growing wealth divide, even as the pandemic and socio-political issues further threaten policies to mitigate these challenges. Adam Firouz, Research Associate at the Khazanah Research Institute, discusses. Image credit: Deva Darshan on UnsplashSee omnystudio.com/listener for privacy information.

A third wave of Covid-19 means yet another fortnight of Conditional Movement Control Orders, throwing yet another spanner in the works of a much-needed recovery in the local retail scene. Tan Hai Hsin, Managing Director of Retail Group Malaysia, discusses the state of play. Image credit TY Lim / ShutterstockSee omnystudio.com/listener for privacy information.

Food security has long been a problem, but COVID-19 has raised the urgency to address it even more. While the stereotypical image of food insecurity is one of famine and hunger, the pandemic has also exacerbated a lack of access to food due to economic poverty. On the event of World Food Day, we discuss with David Dawe of the Food Agricultural Organization. Image Credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

With the Klang Valley, Selangor and Putrajaya under a conditional movement control order for 2 weeks till 27 October , what will the impact be on the Malaysian economy especially since this area is 40% of the country's GDP? Wellian Wiranto, Economist at OCBC Bank weighs in on his views while giving us a preview of Budget 2021. Image credit: Abdul Razak Latif_ShutterstockSee omnystudio.com/listener for privacy information.

Mass test or target test? Lockdown or don't? Target more or less? And do alternatives exist? Professor Dr. Sanjay Rampal Lekhraj Rampal, Public Health Medical Specialist at the University Malaya Medical Centre, discusses. Image credit: Shutterstock.comSee omnystudio.com/listener for privacy information.

China's Foreign Minister Wang Yi is on a charm offensive in Southeast Asia at a time when the pandemic savages the region's economies and its biggest rival, America, faces a period of uncertainty with its polls.Dr. Ngeow Chow Bing, Director of the Institute for China Studies at University Malaya, explains what this means for Malaysia and the region. Image Credit: EPA-EFESee omnystudio.com/listener for privacy information.

Dato’ Seri Anwar Ibrahim finally had an audience with the Yang di-Pertuan Agong yesterday morning, 3 weeks after he first announced that he had the support of a “convincing majority” of MPs.  However his bid to become the Prime Minister of Malaysia is far from certain as after the press conference, it was revealed that the Agong would be meeting with the respective political parties to ascertain their support. Meanwhile Umno issued a press statement stating it is considering withdrawing its support for Perikatan Nasional. To help us unpack all this, we spoke to Dr. Bridget Welsh, Honorary Research Associate, University of Nottingham Asia Institute. Image Credit:  Lens Hitam / Shutterstock.comSee omnystudio.com/listener for privacy information.

The Conditional Movement Control Order (CMCO) in Selangor, Kuala Lumpur and Putrajaya has started and will be on until 27th October. When first announced, there was confusion especially for the food and beverage industry. Jennifer Ong, Founder and CEO of HAPA Group tells us what issues this industry faces and will these new SOPs affect their business. image credit: AhBoon.Net / ShutterstockSee omnystudio.com/listener for privacy information.