Latest news with #SunnyNguyen
The Star
13-05-2025
- Business
- The Star
Bank Negara's 100bps SRR cut gives room to assess US tariff impact - Moody's Analytics
KUALA LUMPUR: The 100-basis point cut in the Statutory Reserve Requirement (SRR) ratio by Bank Negara Malaysia (BNM) last Thursday is intended to give the Monetary Policy Committee some breathing room to assess the impact of the United States (US)-led tariff shock on exports, said Moody's Analytics. Moody's Analytics economist Sunny Nguyen said the move would also give the central bank time to determine whether the recent subsidy‐driven spike in inflation is a one-off and, crucially, to gauge the US Federal Reserve's next course of action. "A lower SRR allows banks to lend more, boosting economic growth by increasing credit availability. Liquidity injections are the policy equivalent of loosening your tie in case you decide to change shirts,' she said in a research note today. On the overnight policy rate (OPR), Nguyen said BNM is likely to keep it at three per cent through August. She explained that based on past patterns, BNM typically begins easing by cutting the SRR first, followed by interest rate cuts once data confirms a slowdown and inflation concerns ease. "This strategy eases pressure on the ringgit by giving banks immediate relief, while also reassuring foreign investors that the Malaysia-US yield gap won't narrow too quickly,' she added. Nguyen said this situation points to a possible 25‐basis point rate cut to 2.75 per cent in September, depending on the headline consumer price index, which is expected to rise as subsidies on RON95 fuel are gradually withdrawn. However, inflation must remain convincingly below three per cent year-on-year as the US Federal Reserve (Fed) resumes its easing cycle-something futures markets are tentatively signalling could begin in September. "If the Fed moves first, pressure will come off the ringgit, giving BNM room to trim without fear of a sharp impact on the local currency,' she said. She added that a lower Fed funds rate would also affect Malaysian growth, and that cheaper global financing would help cushion the impact of tariffs on Malaysia's export‐heavy electronics sector, while easing the burden of pandemic-era corporate debt rollovers. "For the broader outlook, we expect both central banks to cut rates in September. Real gross domestic product growth should ease to about four per cent from five per cent in 2024 and is projected at 3.9 per cent in 2026. "Domestic demand will remain the economy's main engine, drawing power from civil service pay rises and the construction of the East Coast Rail Link,' she concluded. - Bernama
Malay Mail
13-05-2025
- Business
- Malay Mail
Bank Negara's SRR cut gives room to assess US tariff fallout, says Moody's Analytics
KUALA LUMPUR, May 13 — The 100-basis point cut in the Statutory Reserve Requirement (SRR) ratio by Bank Negara Malaysia (BNM) last Thursday is intended to give the Monetary Policy Committee some breathing room to assess the impact of the United States (US)-led tariff shock on exports, said Moody's Analytics. Moody's Analytics economist Sunny Nguyen said the move would also give the central bank time to determine whether the recent subsidy‐driven spike in inflation is a one-off and, crucially, to gauge the US Federal Reserve's next course of action. 'A lower SRR allows banks to lend more, boosting economic growth by increasing credit availability. Liquidity injections are the policy equivalent of loosening your tie in case you decide to change shirts,' she said in a research note today. On the overnight policy rate (OPR), Nguyen said BNM is likely to keep it at three per cent through August. She explained that based on past patterns, BNM typically begins easing by cutting the SRR first, followed by interest rate cuts once data confirms a slowdown and inflation concerns ease. 'This strategy eases pressure on the ringgit by giving banks immediate relief, while also reassuring foreign investors that the Malaysia-US yield gap won't narrow too quickly,' she added. Nguyen said this situation points to a possible 25‐basis point rate cut to 2.75 per cent in September, depending on the headline consumer price index, which is expected to rise as subsidies on RON95 fuel are gradually withdrawn. However, inflation must remain convincingly below three per cent year-on-year as the US Federal Reserve (Fed) resumes its easing cycle — something futures markets are tentatively signalling could begin in September. 'If the Fed moves first, pressure will come off the ringgit, giving BNM room to trim without fear of a sharp impact on the local currency,' she said. She added that a lower Fed funds rate would also affect Malaysian growth, and that cheaper global financing would help cushion the impact of tariffs on Malaysia's export‐heavy electronics sector, while easing the burden of pandemic-era corporate debt rollovers. 'For the broader outlook, we expect both central banks to cut rates in September. Real gross domestic product growth should ease to about four per cent from five per cent in 2024 and is projected at 3.9 per cent in 2026. 'Domestic demand will remain the economy's main engine, drawing power from civil service pay rises and the construction of the East Coast Rail Link,' she concluded. — Bernama
New Straits Times
13-05-2025
- Business
- New Straits Times
BNM's surprise SRR cut sparks speculation of possible OPR reduction
KUALA LUMPUR: Bank Negara Malaysia (BNM) is laying the groundwork for potential interest rate cuts after its surprise move to reduce the statutory reserve requirement (SRR) by 100 basis points last week, according to Moody's Analytics. In a report, economist Sunny Nguyen said the SRR cut, which injects about RM19 billion in liquidity into the banking system, gives BNM crucial time to assess the impact of US-led trade tariffs on exports, determine whether recent inflationary pressure is temporary, and monitor the next steps by the US Federal Reserve. "A lower SSR allows banks to lend more, boosting economic growth by increasing credit availability. Liquidity injections are the policy equivalent of loosening your tie in case you decide to change shirts," she said in a note. She expects the overnight policy rate (OPR) to remain at 3.00 per cent through August, with a likely 25-basis point cut to 2.75 per cent in September—provided inflation remains under control and the Fed begins easing. Nguyen noted that in the past (namely in 2009, 2016 and 2020), the central bank's playbook when markets were jumpy and the ringgit was on the defensive opened with an SRR cut. Once data confirmed an economic slowdown and inflation was no longer a concern, it followed with rate cuts. "That sequencing minimises foreign exchange volatility. Banks feel the relief immediately, and portfolio investors don't panic about a narrowing Malaysia‐US yield gap," she said. Historically, BNM has followed a predictable sequence of loosening the SRR ahead of rate cuts when inflation is under control and economic conditions weaken. This approach helps reduce volatility in the foreign exchange market, offers immediate relief to banks, and reassures investors concerned about narrowing interest differentials with the US. Nguyen noted that if the US Federal Reserve cuts rates first, it would ease pressure on the ringgit, allowing BNM to act without causing significant damage to the local currency. She also said that a lower Fed funds rate would benefit Malaysia by providing cheaper global financing, which would help mitigate the impact of tariffs on Malaysia's export-heavy electronics sector. Additionally, it would ease the rollover of pandemic-related debt. "In that environment, a token 25‐basis point cut to the OPR would be more about signalling that the central bank stands ready to act. However, if the Fed stays on hold for longer, or the unwinding of fuel subsidies sends inflation too high, BNM may be content to keep the OPR at 3 per cent. "The extra liquidity in the system will keep money market rates soft and ensure that credit flows, while the headline policy rate would protect the ringgit by maintaining the yield advantage," she said. Despite these challenges, Malaysia's inflation is projected to rise to 2.5 per cent by year-end, while GDP growth is expected to slow to 4 per cent in 2025 from 5 per cent in 2024. Domestic demand, buoyed by civil service pay increases and infrastructure projects like the East Coast Rail Link, will remain a key economic driver even as net export momentum slows.
Yahoo
12-05-2025
- General
- Yahoo
13-year-old Vietnamese American accepted to over 100 US colleges
[Source] Sunny Nguyen, a 13-year-old Vietnamese American boy from San Jose, California, has been accepted to more than 100 universities across the U.S., receiving scholarship offers totaling around $3 million. The teen, who has been homeschooled for most of his life, credited his parents for shaping his early education. 'They not only supported my education but also taught me various subjects, fostering my growth and ensuring that I had access to a well-rounded and challenging curriculum,' he writes on his personal website. His father, Tommy Nguyen, told KTVU that Sunny's passion for math was evident from a young age. 'He studied math everywhere he went. He could see math in everything, everywhere,' he said. Sunny began receiving college acceptances and scholarship offers earlier this year from prestigious schools such as the University of California, Berkeley and UC San Diego. Trending on NextShark: He previously ran a YouTube channel that amassed nearly 60,000 subscribers, though he has since shifted focus to his academic interests, particularly in computer science and artificial intelligence. 'I'm deeply grateful for the incredible support I've received from all the universities,' he said. 'Their recognition of my hard work and dedication is an honor, and their support has made it possible for me to continue pursuing my dreams without financial barriers.' Trending on NextShark: This story is part of The Rebel Yellow Newsletter — a bold weekly newsletter from the creators of NextShark, reclaiming our stories and celebrating Asian American voices. Subscribe free to join the movement. If you love what we're building, consider becoming a paid member — your support helps us grow our team, investigate impactful stories, and uplift our community. Subscribe here now! Trending on NextShark: Download the NextShark App: Want to keep up to date on Asian American News? Download the NextShark App today!
Yahoo
12-05-2025
- General
- Yahoo
13-year-old Vietnamese American accepted to over 100 US colleges
[Source] Sunny Nguyen, a 13-year-old Vietnamese American boy from San Jose, California, has been accepted to more than 100 universities across the U.S., receiving scholarship offers totaling around $3 million. The teen, who has been homeschooled for most of his life, credited his parents for shaping his early education. 'They not only supported my education but also taught me various subjects, fostering my growth and ensuring that I had access to a well-rounded and challenging curriculum,' he writes on his personal website. His father, Tommy Nguyen, told KTVU that Sunny's passion for math was evident from a young age. 'He studied math everywhere he went. He could see math in everything, everywhere,' he said. Sunny began receiving college acceptances and scholarship offers earlier this year from prestigious schools such as the University of California, Berkeley and UC San Diego. Trending on NextShark: He previously ran a YouTube channel that amassed nearly 60,000 subscribers, though he has since shifted focus to his academic interests, particularly in computer science and artificial intelligence. 'I'm deeply grateful for the incredible support I've received from all the universities,' he said. 'Their recognition of my hard work and dedication is an honor, and their support has made it possible for me to continue pursuing my dreams without financial barriers.' Trending on NextShark: This story is part of The Rebel Yellow Newsletter — a bold weekly newsletter from the creators of NextShark, reclaiming our stories and celebrating Asian American voices. Subscribe free to join the movement. If you love what we're building, consider becoming a paid member — your support helps us grow our team, investigate impactful stories, and uplift our community. Subscribe here now! Trending on NextShark: Download the NextShark App: Want to keep up to date on Asian American News? Download the NextShark App today!
