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Arab Times
6 days ago
- Business
- Arab Times
Economists see trade headwinds dragging on Malaysia's industrial output outlook
KUALA LUMPUR, Aug 11, (Xinhua): Economists have foreseen trade headwinds to remain a drag on Malaysia's industrial output outlook after the country's industrial production index (IPI) growth moderated to 2.2 percent in the first half. RHB Investment Bank said in its recent note that the renewed global tariffs, especially the proposed 100 percent US semiconductor tariff, posed risks to Malaysia's export-driven sectors. "Potential slower growth in major economies and persistent tariff tensions, especially following the end of the pause period, pose a significant impact on Malaysia's trade and manufacturing sector outlook, reinforcing our cautious stance," said the research house. Meanwhile, MBSB Research in its recent note maintained its projection that Malaysia's IPI growth will moderate to 2 percent this year, taking into account the possible impact of higher tariffs on external trade. "Earlier front-loading and growing domestic demand will still keep IPI growth in the positive," said the research house. It continues to expect sustained growth in domestic spending and local business activities will drive production of domestic-oriented goods. On the external front, it expects producers and exporters will closely monitor the risk of slower external demand due to higher import costs and potentially weaker economic growth in major markets. Kenanga Research opined that fresh uncertainty emerges following the latest US proposal to impose a 100 percent tariff on microchip and pharmaceutical imports. The research house, however, has maintained Malaysia's full-year manufacturing growth at 3.9 percent, anchored by domestic strength. "Domestic-oriented manufacturing is expected to stay resilient, supported by continued public spending and steady domestic demand," it noted.
The Sun
09-07-2025
- Business
- The Sun
Malaysia's OPR cut to 2.75% unlikely to start rate-cutting cycle
KUALA LUMPUR: MIDF Amanah Investment Bank does not expect Bank Negara Malaysia's recent 25-basis-point cut in the Overnight Policy Rate (OPR) to signal the beginning of a near-term rate-cutting cycle. The bank highlighted resilient domestic spending and a stable labour market as key reasons for this outlook. 'We opine that a targeted support to assist specific industries will be a better approach moving forward instead of further OPR adjustments, at least for the rest of the year,' the investment bank said in a research note. RHB Investment Bank shared a similar view, projecting the OPR to remain at 2.75 per cent for the rest of 2025, provided Malaysia's GDP growth stays within the 4.0 to 5.0 per cent range. The bank described the July rate cut as pre-emptive, given strong domestic economic conditions. In contrast, OCBC Bank anticipates another 25-basis-point reduction in either September or November, citing manageable inflation despite subsidy adjustments. The bank noted that even if RON95 fuel subsidies are rationalised in October 2025, inflation would likely stay at a benign 2.0 per cent. CIMB Bank, meanwhile, said future rate cuts would depend on economic data, particularly trade and growth indicators. The bank pointed to Malaysia's improving labour market, with unemployment at 3.0 per cent, and controlled inflation as factors supporting policy flexibility. BNM's Monetary Policy Committee reduced the OPR to 2.75 per cent, adjusting the ceiling and floor rates to 3.0 per cent and 2.5 per cent, respectively. The central bank framed the move as a pre-emptive step to sustain growth amid moderate inflation. - Bernama
Malaysia Sun
08-07-2025
- Business
- Malaysia Sun
Analysts see Malaysia's oil production to remain under pressure in 2H
Xinhua 08 Jul 2025, 15:15 GMT+10 KUALA LUMPUR, July 8 (Xinhua) -- Analysts have foreseen Malaysia's oil production to remain under pressure in the second half of 2025, continuing the soft decline seen in the first quarter where crude oil and condensate production dropped 5.2 percent year on year to 45.5 million barrels. RHB Investment Bank said in a note on Monday that this decline is moderating compared to previous quarters, indicating some stabilization due to improved field performance and operational efficiencies, especially in mature fields. According to the research house, natural gas production may also contract slightly in the second half, primarily due to planned maintenance shutdowns of key facilities in Sarawak and West Malaysia, as well as moderating demand from major liquefied natural gas (LNG) importers like Japan and South Korea. Meanwhile, MIDF Research also said in a recent note that the Malaysian upstream outlook is stable but cautious, as committed investments could be offset by global oil price volatility, supply chain disruptions, and the broader energy transition agenda. Cost discipline and efficiency also remain paramount.
New Straits Times
08-07-2025
- Business
- New Straits Times
Analysts see Malaysia's oil production to remain under pressure in H2
KUALA LUMPUR: Analysts have foreseen Malaysia's oil production to remain under pressure in the second half of 2025, continuing the soft decline seen in the first quarter, where crude oil and condensate production dropped 5.2 per cent year on year to 45.5 million barrels, reported Xinhua. RHB Investment Bank said in a note on Monday that this decline is moderating compared to previous quarters, indicating some stabilisation due to improved field performance and operational efficiencies, especially in mature fields. According to the research house, natural gas production may also contract slightly in the second half, primarily due to planned maintenance shutdowns of key facilities in Sarawak and West Malaysia, as well as moderating demand from major liquefied natural gas (LNG) importers like Japan and South Korea. Meanwhile, MIDF Research also said in a recent note that the Malaysian upstream outlook is stable but cautious, as committed investments could be offset by global oil price volatility, supply chain disruptions, and the broader energy transition agenda. Cost discipline and efficiency also remain paramount.
The Sun
08-07-2025
- Business
- The Sun
Analysts see Malaysia's oil production to remain under pressure in H2
KUALA LUMPUR: Analysts have foreseen Malaysia's oil production to remain under pressure in the second half of 2025, continuing the soft decline seen in the first quarter, where crude oil and condensate production dropped 5.2 per cent year on year to 45.5 million barrels, reported Xinhua. RHB Investment Bank said in a note on Monday that this decline is moderating compared to previous quarters, indicating some stabilisation due to improved field performance and operational efficiencies, especially in mature fields. According to the research house, natural gas production may also contract slightly in the second half, primarily due to planned maintenance shutdowns of key facilities in Sarawak and West Malaysia, as well as moderating demand from major liquefied natural gas (LNG) importers like Japan and South Korea. Meanwhile, MIDF Research also said in a recent note that the Malaysian upstream outlook is stable but cautious, as committed investments could be offset by global oil price volatility, supply chain disruptions, and the broader energy transition agenda. Cost discipline and efficiency also remain paramount. - Bernama
