Latest news with #MalaysianGovernmentSecurities
New Straits Times
3 days ago
- Business
- New Straits Times
Malaysia's headline inflation unchanged at 1.4pc in April: BNM
Bernama KUALA LUMPUR: Malaysia's headline inflation remained unchanged at 1.4 per cent in April 2025, while core inflation edged up to two per cent from 1.9 per cent in March 2025, according to Bank Negara Malaysia (BNM). In its Monthly Highlights for April 2025, the central bank said the rise in core inflation was driven by price increases in core components, including mobile communication services, jewellery and watches, as well as air passenger transport. "These were partially offset by lower inflation for non-core items such as fuels and lubricants, as well as fresh vegetables, amid an easing cost environment," it said. BNM also reported that gross exports grew by 16.4 per cent from 6.8 per cent last month, mainly due to the continued strong expansion of electrical and electronics (E&E) exports, supported by a rebound in non-E&E and commodities exports. "Malaysia imports expanded by 20 per cent (March 2025: -2.9 per cent), amid a sharp growth of capital imports. However, intensified trade tensions are expected to weigh on exports and increase downside risks. "This will be partly cushioned by sustained global demand for E&E and Malaysia's integral role in the global supply chain," said BNM. The central bank noted that credit to the private non-financial sector grew by 5.5 per cent (March 2025: 5.5 per cent), supported by steady growth in outstanding loans (5.5 per cent; March 2025: 5.6 per cent) and higher growth in outstanding corporate bonds (5.5 per cent; March 2025: 5.3 per cent). "Growth in business loans moderated slightly to 4.6 per cent (March 2025: 4.8 per cent), reflecting slower loan growth, particularly in the services sector. "Notwithstanding, demand for business financing remained forthcoming across both small and medium enterprises (SMEs) and non-SMEs. Household loan growth remained steady at six per cent with continued growth across most loan purposes," it noted. BNM highlighted that the global financial conditions became more volatile following tariffs announcement by the United States (US) administration. "Global investor sentiment also turned cautious amid rising concerns over a more subdued US economy and its negative spillovers to the global economy. Amid these developments, the ringgit appreciated by 2.7 per cent against the US dollar. "The FTSE Bursa Malaysia KLCI rose by 1.8 per cent (regional average: 1.1 per cent), while the yield on 10-year Malaysian Government Securities (MGS) declined by 11.0 basis points (regional average: -14.7 bps), in line with movements of global bond yields. "This trend was largely driven by net foreign inflows into the bond market, amid heightened global risk aversion," it noted. Additionally, it said the banking system continued to show healthy liquidity buffers, with an aggregate liquidity coverage ratio of 155.8 per cent (March 2025 to 151.6 per cent). "The aggregate loan-to-fund ratio decreased slightly to 83.3 per cent (March 2025: 83.8 per cent) as the increase in total funds outpaced loan growth," said BNM. Malaysia's gross and net impaired loans ratios remained stable at 1.4 per cent and 0.9 per cent, respectively. "The loan loss coverage ratio (including regulatory reserves) remained prudent at 131.0 per cent of gross impaired loans, compared to 131.3 per cent in the previous month," it added.
The Sun
3 days ago
- Business
- The Sun
Malaysia's headline inflation unchanged at 1.4% in April
KUALA LUMPUR: Malaysia's headline inflation remained unchanged at 1.4 per cent in April 2025, while core inflation edged up to two per cent from 1.9 per cent in March 2025, according to Bank Negara Malaysia (BNM). In its Monthly Highlights for April 2025, the central bank said the rise in core inflation was driven by price increases in core components, including mobile communication services, jewellery and watches, as well as air passenger transport. 'These were partially offset by lower inflation for non-core items such as fuels and lubricants, as well as fresh vegetables, amid an easing cost environment,' it said. BNM also reported that gross exports grew by 16.4 per cent from 6.8 per cent last month, mainly due to the continued strong expansion of electrical and electronics (E&E) exports, supported by a rebound in non-E&E and commodities exports. 'Malaysia imports expanded by 20 per cent (March 2025: -2.9 per cent), amid a sharp growth of capital imports. However, intensified trade tensions are expected to weigh on exports and increase downside risks. 'This will be partly cushioned by sustained global demand for E&E and Malaysia's integral role in the global supply chain,' said BNM. The central bank noted that credit to the private non-financial sector grew by 5.5 per cent (March 2025: 5.5 per cent), supported by steady growth in outstanding loans (5.5 per cent; March 2025: 5.6 per cent) and higher growth in outstanding corporate bonds (5.5 per cent; March 2025: 5.3 per cent). 'Growth in business loans moderated slightly to 4.6 per cent (March 2025: 4.8 per cent), reflecting slower loan growth, particularly in the services sector. 'Notwithstanding, demand for business financing remained forthcoming across both small and medium enterprises (SMEs) and non-SMEs. Household loan growth remained steady at six per cent with continued growth across most loan purposes,' it noted. BNM highlighted that the global financial conditions became more volatile following tariffs announcement by the United States (US) administration. 'Global investor sentiment also turned cautious amid rising concerns over a more subdued US economy and its negative spillovers to the global economy. Amid these developments, the ringgit appreciated by 2.7 per cent against the US dollar. 'The FTSE Bursa Malaysia KLCI rose by 1.8 per cent (regional average: 1.1 per cent), while the yield on 10-year Malaysian Government Securities (MGS) declined by 11.0 basis points (regional average: -14.7 bps), in line with movements of global bond yields. 'This trend was largely driven by net foreign inflows into the bond market, amid heightened global risk aversion,' it noted. Additionally, it said the banking system continued to show healthy liquidity buffers, with an aggregate liquidity coverage ratio of 155.8 per cent (March 2025 to 151.6 per cent). 'The aggregate loan-to-fund ratio decreased slightly to 83.3 per cent (March 2025: 83.8 per cent) as the increase in total funds outpaced loan growth,' said BNM. Malaysia's gross and net impaired loans ratios remained stable at 1.4 per cent and 0.9 per cent, respectively. 'The loan loss coverage ratio (including regulatory reserves) remained prudent at 131.0 per cent of gross impaired loans, compared to 131.3 per cent in the previous month,' it added.
The Star
3 days ago
- Business
- The Star
Bank Negara: Malaysia's headline inflation unchanged at 1.4% in April
Shoppers buying vegetables at a wet market in the Klang Valley. — FAIHAN GHANI/The Star KUALA LUMPUR: Malaysia's headline inflation remained unchanged at 1.4 per cent in April 2025, while core inflation edged up to two per cent from 1.9 per cent in March 2025, according to Bank Negara Malaysia (BNM). In its Monthly Highlights for April 2025, the central bank said the rise in core inflation was driven by price increases in core components, including mobile communication services, jewellery and watches, as well as air passenger transport. "These were partially offset by lower inflation for non-core items such as fuels and lubricants, as well as fresh vegetables, amid an easing cost environment,' it said. BNM also reported that gross exports grew by 16.4 per cent from 6.8 per cent last month, mainly due to the continued strong expansion of electrical and electronics (E&E) exports, supported by a rebound in non-E&E and commodities exports. "Malaysia imports expanded by 20 per cent (March 2025: -2.9 per cent), amid a sharp growth of capital imports. However, intensified trade tensions are expected to weigh on exports and increase downside risks. "This will be partly cushioned by sustained global demand for E&E and Malaysia's integral role in the global supply chain,' said BNM. The central bank noted that credit to the private non-financial sector grew by 5.5 per cent (March 2025: 5.5 per cent), supported by steady growth in outstanding loans (5.5 per cent; March 2025: 5.6 per cent) and higher growth in outstanding corporate bonds (5.5 per cent; March 2025: 5.3 per cent). "Growth in business loans moderated slightly to 4.6 per cent (March 2025: 4.8 per cent), reflecting slower loan growth, particularly in the services sector. "Notwithstanding, demand for business financing remained forthcoming across both small and medium enterprises (SMEs) and non-SMEs. Household loan growth remained steady at six per cent with continued growth across most loan purposes,' it noted. BNM highlighted that the global financial conditions became more volatile following tariffs announcement by the United States (US) administration. "Global investor sentiment also turned cautious amid rising concerns over a more subdued US economy and its negative spillovers to the global economy. Amid these developments, the ringgit appreciated by 2.7 per cent against the US dollar. "The FTSE Bursa Malaysia KLCI rose by 1.8 per cent (regional average: 1.1 per cent), while the yield on 10-year Malaysian Government Securities (MGS) declined by 11.0 basis points (regional average: -14.7 bps), in line with movements of global bond yields. "This trend was largely driven by net foreign inflows into the bond market, amid heightened global risk aversion,' it noted. Additionally, it said the banking system continued to show healthy liquidity buffers, with an aggregate liquidity coverage ratio of 155.8 per cent (March 2025 to 151.6 per cent). "The aggregate loan-to-fund ratio decreased slightly to 83.3 per cent (March 2025: 83.8 per cent) as the increase in total funds outpaced loan growth,' said BNM. Malaysia's gross and net impaired loans ratios remained stable at 1.4 per cent and 0.9 per cent, respectively. "The loan loss coverage ratio (including regulatory reserves) remained prudent at 131.0 per cent of gross impaired loans, compared to 131.3 per cent in the previous month,' it added. - Bernama
New Straits Times
20-05-2025
- Business
- New Straits Times
Foreign investors flock to Malaysian bonds with RM10.2bil inflow in April
KUALA LUMPUR: Foreign investors remained as net buyers of the Malaysian bond, with net inflows surging to RM10.2 billion in April, more than triple the RM3.2 billion recorded in March. According to RAM Ratings Service Bhd (RAM Ratings), the inflows were mainly driven by strong demand for Malaysian Government Securities (MGS) and Government Investment Issues (GII), which collectively drew RM9.7 billion in net foreign investment, up sharply from RM3.0 billion in March. Additionally, it said Malaysian Treasury Bills (MTB) and Islamic Treasury Bills (MITB) attracted RM480 million in net inflows — a notable reversal from the RM252 million net outflow seen in the previous month. RAM Ratings noted that the sweeping set of "reciprocal" tariffs announced at the start of last month sparked a sharp surge in market turmoil, with the volatility index published by the Chicago Board Options Exchange rising to a high not seen since the start of the Covid-19 pandemic. "Heightened risk aversion contributed to a weakening of the ringgit against the USD in the first week of April, as the local currency swiftly depreciated to 4.50 against the greenback as of 9 April from 4.43 as of end-March," it said. RAM Ratings said the 10-year US Treasury (UST) yield soared to a high 4.48 per cent as of April 11 from 4.23 per cent as of end-March. Market jitters, however, soon subsided amid signs of easing US-China trade tensions. "The ringgit rose to 4.32 against the US dollar at the end of April while the 10-year UST yield retreated to 4.17 per cent," it said. Meanwhile, RAM Ratings noted that at the May Federal Open Market Committee meeting, the Fed kept the interest rate unchanged at 4.25 per cent 4.5 per cent, citing persistent inflationary pressures and economic uncertainties stemming from recent tariff implementations. The rating agency said market consensus now expects the Fed's first rate cut to come in September, with a 71 per cent probability priced in. Adding further complexity to global yield dynamics, RAM Ratings said Moody's downgraded the US sovereign credit rating from Aaa to Aa1 on 16 May, citing long-term fiscal concerns. "This contributed to renewed weakness in US treasuries, triggering another round of repricing of US government debt. "The 10-year UST yield jumped to 4.46 per cent as of May 19, from 4.17 per cent as of end-April, as markets digest the downgrade alongside concerns of reduced foreign appetite for US debt. "The selloff pressure was relatively contained within the US as MGS yields largely trended sideways, with the benchmark 10-year MGS yield sitting at 3.64 per cent as of 19 May from 3.68 per cent as of end-April," it added.
The Star
06-05-2025
- Business
- The Star
Reversal possible for ringgit after recent rally
PETALING JAYA: As the ringgit hits a seven-month high against the weakening US dollar, analysts say the local currency still has legs to run. The local currency touched RM4.20 against the greenback yesterday. Barely a month ago, the exchange rate was nearing RM4.50 per US dollar. Despite the recent strength, the ringgit's trajectory will remain vulnerable to shifts in global risk sentiment and data surprises. SPI Asset Management managing director Stephen Innes told StarBiz that a reversal cannot be ruled out. 'For now, the path of least resistance is a stronger ringgit, firmer equities and a little more global confidence in Asia's trade deal script,' he said. Innes explained that the ringgit's gains reflect a larger regional shift as investors re-enter Asian markets on expectations of easing trade tensions and a weaker greenback. 'What we're seeing across Malaysian markets fits neatly into a broader risk-on, dollar-light narrative that's been building steam since the first whiff of trade détente,' he said in a written response. 'Cross-asset flows have been eerily predictable on the Asia open: dump the dollar, chase gold.' While part of the ringgit's rally is technical – driven by exporters' front-running foreign exchange strength ahead of settlements – Innes believes there is a deeper structural story at play. 'I'd argue traders are pricing in the possibility of a coordinated, even if unspoken, regional ceasefire on competitive devaluations,' he said. 'Not quite a 'Mar-a-Lago Accord,' but certainly a tacit nod toward a slightly weaker US dollar as part of trade normalisation.' Innes said Malaysia's 'surprisingly firm growth data and continued tech sector resilience' have further supported the currency and attracted foreign inflows into bonds and equities. 'You've got the perfect cocktail for foreign inflows into both the bond markets, and the local bourse,' he said. Foreign investors returned to Malaysian bonds in March with RM2.8bil in net inflows, reversing the RM1.7bil outflow recorded in February, even as they withdrew RM4.7bil from equities amid ongoing geopolitical and trade concerns. Foreign holdings of Malaysian Government Securities or MGS and Government Investment Issues or GII rose to 21% in March – the highest level since August 2024. More recently, sentiment has also improved on the equity front. Foreign investors net bought RM853.8mil worth of equities last week, following RM332.3mil in the week before – marking the first back-to-back weekly inflows since September 2024. Still, Innes warned that global markets remain highly sensitive to external developments. 'This market trades every headline like it's a referendum on global risk,' he said. 'While the tariff bogeyman is back in the closet for now, I wouldn't be shocked if the next data hiccup or policy swerve shakes things up again.' Echoing similar concerns, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that recent weakness in the US dollar may reflect deeper concerns over the credibility of US economic policy. 'My sense is that there seems to be a confidence issue with regards to the US dollar. 'Typically, the US dollar would rise during heightened economic uncertainties as the greenback is always deemed as the safe haven. And the fall in the US dollar appears in tandem with the Trump administration measures on tariff,' he said in a written reply. 'On that note, there seems to be weak confidence in the US economy and the tariff measures are set to take a toll on the US economy due to higher cost of doing business and disruption in the supply chains.' Mohd Afzanizam added that 'the way I see it, it appears that the de-dollarisation has been accelerated,' as more countries seek alternatives for trade settlements. From a policy standpoint, he said, various jurisdictions have started to diversify away from the greenback, including Malaysia's Local Currency Settlement Framework with Thailand and Indonesia, and the increased use of the yuan and ringgit in China-related trade. While a reversal in the dollar's decline is possible, Mohd Afzanizam cautioned that inconsistent policy signals from Washington could further dent confidence. 'Will the US dollar decline be reversed? I suppose it can if the Trump administration decides to relax the tariffs. But this could also run the risk of policy inconsistencies which might jeopardise the confidence. So either way, it seems a bearish view on the US dollar.'
