Latest news with #Oversea-ChineseBankingCorp
Yahoo
a day ago
- Business
- Yahoo
Ringgit set for strong rally to one-year high as foreign investment surges to record levels
KUALA LUMPUR, Aug 18 — The ringgit is expected to resume its rally and potentially reach its strongest level against the US dollar in nearly a year, according to analysts who cite dovish central bank policies and fiscal commitments as key drivers. Oversea-Chinese Banking Corp. predicts the ringgit will strengthen to 4.15 per dollar in the fourth quarter due to anticipated central bank easing, while Malayan Banking Bhd. Forecasts 4.10 by December, Bloomberg reported. MUFG Bank Ltd. Expects a 1.5 per cent gain from current levels, attributing this to improved export competitiveness following a US tariff deal with Malaysia. The ringgit's recovery from its April low has recently stalled, but upcoming inflation data could revive expectations for Bank Negara Malaysia rate cuts and stimulate bond inflows. Global funds invested a record US$4.3 billion into Malaysian bonds in the second quarter, anticipating rate cuts from Southeast Asia's last holdout central bank, which delivered a 25-basis-point reduction in July. Christopher Wong of OCBC said that a stronger ringgit depends on sustained foreign inflows and the government's commitment to fiscal consolidation, with his bank projecting another rate cut this year. Last month, Prime Minister Datuk Seri Anwar Ibrahim announced an ambitious five-year growth plan through 2030, including a one-time RM2.8 billion stimulus package featuring cash handouts and reduced fuel prices. The government has simultaneously pursued fiscal discipline through measures such as cutting diesel subsidies and expanding the sales and service tax. Matthew Ryan of Ebury Partners warns that prolonged trade uncertainty and potential higher tariffs could moderately impact Malaysia's economy and trigger a more pronounced ringgit selloff. The ringgit closed at 4.2120 on Friday, with MUFG's Lloyd Chan pointing out government-led structural reforms aimed at boosting productivity and fiscal discipline as foundational factors for the currency's strength.
Malay Mail
a day ago
- Business
- Malay Mail
Ringgit set for strong rally to one-year high as foreign investment surges to record levels
KUALA LUMPUR, Aug 18 — The ringgit is expected to resume its rally and potentially reach its strongest level against the US dollar in nearly a year, according to analysts who cite dovish central bank policies and fiscal commitments as key drivers. Oversea-Chinese Banking Corp. predicts the ringgit will strengthen to 4.15 per dollar in the fourth quarter due to anticipated central bank easing, while Malayan Banking Bhd. Forecasts 4.10 by December, Bloomberg reported. MUFG Bank Ltd. Expects a 1.5 per cent gain from current levels, attributing this to improved export competitiveness following a US tariff deal with Malaysia. The ringgit's recovery from its April low has recently stalled, but upcoming inflation data could revive expectations for Bank Negara Malaysia rate cuts and stimulate bond inflows. Global funds invested a record US$4.3 billion into Malaysian bonds in the second quarter, anticipating rate cuts from Southeast Asia's last holdout central bank, which delivered a 25-basis-point reduction in July. Christopher Wong of OCBC said that a stronger ringgit depends on sustained foreign inflows and the government's commitment to fiscal consolidation, with his bank projecting another rate cut this year. Last month, Prime Minister Datuk Seri Anwar Ibrahim announced an ambitious five-year growth plan through 2030, including a one-time RM2.8 billion stimulus package featuring cash handouts and reduced fuel prices. The government has simultaneously pursued fiscal discipline through measures such as cutting diesel subsidies and expanding the sales and service tax. Matthew Ryan of Ebury Partners warns that prolonged trade uncertainty and potential higher tariffs could moderately impact Malaysia's economy and trigger a more pronounced ringgit selloff. The ringgit closed at 4.2120 on Friday, with MUFG's Lloyd Chan pointing out government-led structural reforms aimed at boosting productivity and fiscal discipline as foundational factors for the currency's strength.
CNBC
5 days ago
- Business
- CNBC
In one of the world's most expensive cities, more workers are living paycheck to paycheck
Singapore's reputation for financial prudence and high savings is showing signs of strain. Rising costs and a growing prioritization for experiences and self-care are taking precedence over long-term financial planning, experts observed. "At the end of every month, when my salary is in, I use it to pay my credit bills, parents' allowance, insurances and investments," said 32-year-old Singaporean Jovan Yeo, who works for a digital bank services firm. "After all these, my salary is back to zero again, with nothing much to save," he said, adding that other expenses go into travel, dining out and fitness class memberships. 60% of workers in Singapore were living paycheck to paycheck in 2024 — notably higher than regional peers including China, South Korea, Japan and Indonesia, and above the Asia-Pacific average of 48%, a recent 2025 research from the payroll company ADP found. While this was the first time the research by ADP, which surveyed nearly 38,000 people in 34 markets, had this specific paycheck metric, other reports paint a similar picture. A survey conducted by global research advisory firm Forrester Research found that back in 2021, the percentage of Singaporean consumers who lived paycheck to paycheck was lower at 53%. Furthermore, while young Singaporeans in their 20s are more likely than other age groups to spend beyond their means in order to keep up with their peers, fewer Singaporeans between their 20s and 50s have started making financial plans for their retirement as compared to 2023, Oversea-Chinese Banking Corp's most recent financial wellness report published in late 2024 showed. Yeo acknowledged the importance of saving, but told CNBC that it is an increasingly herculean feat to save with the country's rising costs of living. "I can save if I don't go out, but I want to have a life and experience life too!" Maybank Research's economist Brian Lee noted that certain macroeconomic factors have made saving in Singapore objectively harder. Even though Singapore's inflation has recently cooled to a four-year low, the country still has one of the highest costs of living, according to multiple surveys, due to structural factors like expensive housing and import costs. According to Numbeo's cost of living indices, which pools crowdsourced data across groceries, utilities and transportation fares, among other indicators, Singapore's Cost of Living Index came in fifth globally at 85.3 as of mid-2025, but first in the region. The reading also marked an 11% jump year over year.A survey published in April by data analytics firm YouGov found that the cost of living was the top concern of 72% of the 1,845 Singaporeans polled, followed by healthcare and the challenges of an aging population. Living expenses have risen faster than incomes during the post-pandemic bout of elevated consumer price inflation," Lee said. This means that the typical worker's purchasing power has shrunk slightly on average each year since the pandemic, instead of growing as it did in the past. Real median employment income fell by 0.4% per annum between 2019 and 2024, reversing the average annual growth of 2.2% seen from 2014 to 2019, according to data from Maybank. While real wage growth recovered in 2024, it is expected to moderate in 2025 as a result of tariff-related impact, in particular for trade-reliant sectors like wholesale trade and manufacturing, said the country's Ministry of Manpower. Housing costs have further compounded the pressure, Lee added. Resale prices of Singapore's public apartments — which house nearly 80% of residents — rose 9.6% in 2024, quicker than the 4.9% in 2023, data from the country's Housing Development Board showed. "Singapore has limited land, space and natural resources. This translates into high property prices, high car prices, and a reliance on imported food," the Maybank economist said. "Due to our reliance on imports, our domestic inflation is very much correlated to global inflation, which has been high due to pandemic disruptions associated with increased goods demand, labor shortages and supply chain snags," he added. Other experts CNBC spoke to observed that the issue goes beyond the higher cost of living — it reflects deeper social and cultural shifts, such as not feeling as much need to save, or spending beyond their means. PhillipCapital's wealth manager, Joshua Lim, observed that spending has become increasingly aspirational. "Luxury is a big thing here — Mercedes is one of the top-selling brands. People are pushing for a certain image, a certain lifestyle." Cars are significantly more expensive in Singapore because of the Certificate of Entitlement system, which requires buyers to bid for a limited permit just to own a vehicle. The COE alone, which was introduced to manage road congestion, can cost over 100,000 Singapore dollars, sometimes exceeding the price of the car itself. "For 100% spenders, or those who don't really like to save, it's also because they're spending what they haven't even received yet," Lim said, noting that buy now, pay later plans are also making it easier for Singaporeans to commit to future spending before they have the cash. According to Singapore's central bank, BNPL transactions reached around SG$440 million in 2021, a nearly fourfold increase from 2020. Research firm IDC expects BNPL payments in e-commerce transactions in Singapore to increase from 4% in 2023 to 6% by 2028. This shift, Lim argues, is part of a broader "debt society," where instant gratification and lifestyle signaling trump long-term financial prudence, as compared to earlier-generation Singaporeans. Lim also mentioned that most of his clients who live paycheck to paycheck are largely the middle-income earners, which make up 60% to 70% of his clientele seeking consultations on how to save more. High-income earners make up 20% of his client base, while those in the low-income bracket make up the least at 10%. Consumerism is more deeply entrenched than ever, which can make saving harder, said He Ruiming, co-founder of The Woke Salaryman, a Singapore-based blog focusing on personal finance education. "This is the generation who grew up on a lot more marketing, so the urge to buy is a lot more, and they compare themselves to a lot more people," said He, who is currently a council member in Singapore's National Youth Council, a government body focused on youth development. 34-year-old Singaporean Joyce Ang echoed that she does not feel the same urgency as her parents did when it came to saving. "I feel safe to spend, because I don't have a partner yet, and I still live with my parents, so I don't have a house to worry about. I'm not in need of money immediately," she added. Compared to her parents' generation, she believes the priorities of the younger generation have changed. "In my parents' time, they were saving to have children. But nowadays not every one of us wants kids… so we don't have to actually scrimp and save so much," said Ang, who has a take-home pay of around SG$3,800 ($2,949) per month. Singaporeans' take-home pay is lower than their full salary because of mandatory Central Provident Fund (CPF) contributions. Every month, a portion of their salary — up to 20% for employees under 55 — is automatically deducted for retirement, housing, and healthcare savings. While Singaporeans can only withdraw $5,000 or more from CPF savings once they hit 55, they can tap on these savings to pay for housing and some medical costs at any age. "It's not that difficult to save. I set aside some of my allowance for my parents so if I wanted to, I can just set aside another pool of money for savings," said Ang. "But I don't think I need to do that at this point in time," she chuckled.
Mint
08-08-2025
- Business
- Mint
China Tells Brokers to Stop Touting Stablecoins to Cool Frenzy
China told local brokers and other bodies to stop publishing research or hold seminars to promote stablecoins, seeking to rein in the asset class to avoid instability. Some leading brokerages and think tanks in late July and earlier this month received guidance from financial regulators, urging them to cancel seminars and halt disseminating research on stablecoins, people familiar with the matter said. Regulators are also concerned that stablecoins could be exploited as a new tool for fraudulent activities in mainland China, said the people, who asked not to be identified because the details are private. While China has a blanket ban on crypto-related transactions, recent official comments have stoked speculation the country is warming to the industry. Authorities have also given the green light to develop Hong Kong as a digital asset hub and the city this month rolled out new legislation governing stablecoin issuers, prompting a surge in interest from mainland Chinese firms. The China Securities Regulatory Commission and The People's Bank of China didn't immediately respond to faxed requests for comments. 'Chinese policymakers don't favor too much fanfare in some topics just to avoid a herd rush to any particular asset class,' said Christopher Wong, a Singapore based currency strategist at Oversea-Chinese Banking Corp. 'There's still a worry that not everyone knows adequately about crypto and policymakers being pragmatic don't want herd mentality when investors buy into something that they do not know what the risks are.' Despite China's crypto ban, there has been brisk over-the-counter digital asset trading in the country. It reached $75 billion in the first nine months of 2024, according to estimates from Chainalysis Inc., in evidence of a large presence of avenues for such transactions. Illicit fundraising activities linked to virtual currencies and stablecoins have also flourished amid the hype, prompting China's local authorities including those in Beijing, Suzhou and Zhejiang province to issue risk warnings in the past month. Stablecoins, typically backed by cash-like assets and issued by private firms, are gaining traction as a faster, cheaper option for cross-border payments. Most are pegged to the dollar and backed by US assets like short-term Treasuries, with the world's total supply projected to reach as much as $3.7 trillion by 2030. The regulators are stepping in after recent official comments stoked speculation the country is warming to the notion of cyptocurrencies that track the yuan, as it seeks to challenge the US dollar's dominance in global finance and promote the usage of the Chinese currency. PBOC Governor Pan Gongsheng said in June that stablecoins could revolutionize international finance, particularly as rising geopolitical tensions highlight the fragility of traditional payment systems. Hong Kong, widely viewed as a regulatory sandbox for China, is one of a number of markets in the Asia-Pacific region to have pushed forward with a licensing regime of its own in recent months. As of Friday, Hong Kong has granted license for 11 crypto exchanges, alongside 44 companies with permit to trade digital assets for clients. These include Chinese state-backed firms such as CMB International Securities Ltd., Guotai Junan Securities Ltd. and TFI Securities and Futures Ltd. US President Donald Trump on July 18 signed the first federal bill to regulate stablecoins, hailing it as 'giant step to cement American dominance of global finance and crypto technology.' The vast majority of stablecoins in circulation today are pegged to the US dollar. With assistance from Suvashree Ghosh, Julia Zhong and Kiuyan Wong. This article was generated from an automated news agency feed without modifications to text.
Nikkei Asia
01-08-2025
- Business
- Nikkei Asia
Singapore's OCBC flags tariff headwinds as Q2 profit falls
OCBC CEO Helen Wong, who is retiring at the end of the year, says the Trump tariffs are having an impact on the Singapore-based lender. © Reuters DYLAN LOH SINGAPORE -- Singapore's Oversea-Chinese Banking Corp. (OCBC) on Friday flagged 'continued headwinds from tariffs and geopolitical tensions,' as the lender reported a 7% year-on-year decline in net profit in the second quarter. OCBC, one of the biggest banks by assets in Southeast Asia, logged a net profit of 1.82 billion Singapore dollars ($1.4 billion) for the April to June quarter, down from SG$1.9 billion in the same period last year.
