MY Morning Wrap | AirAsia Anticipates Revenue Boost with Expanded Domestic Network

The Malaysian Rubber Council (MRC) projects that Malaysia's rubber and related product exports will surpass RM30 billion by the end of 2024, fueled by a robust first-half performance with exports reaching RM15.5 billion, a 16.3% increase from the previous year. Rubber gloves remained the dominant export, contributing RM6.8 billion, followed by significant contributions from medical gloves and other rubber products. The United States continues to be the largest market, with substantial growth also seen in other key markets including China, Japan, Germany, and Singapore. This positive trend highlights the strong global demand for Malaysian rubber products and the country's pivotal role in the international rubber market.

Penang Port Sdn Bhd, operated by MMC Corp, expects a shortfall in its container throughput for 2024, projecting a loss of 50,000 to 60,000 twenty-foot equivalent units (TEUs) due to the ongoing Red Sea crisis. This disruption stems from the conflict initiated when Houthi militants attacked Israel in October 2023, leading to increased hostilities and necessitating major shipping reroutes around the Cape of Good Hope instead of passing through the crucial Red Sea route. This route diversion has significantly increased transit times and operational costs globally. Despite the current challenges, CEO Datuk Sasedharan Vasudevan remains optimistic that the situation will stabilize, potentially by next year, as new capacities and routes are explored, including opportunities in the Bay of Bengal and North Sumatra. Meanwhile, Penang Port is seeking tariff increases to mitigate rising operational costs, although approval is still pending.

Singapore shares reached a near 17-year peak on Monday, driven by significant gains in the city-state's major banks, which benefited from strong investor inflows due to attractive dividend yields. The Straits Times index rose 0.7% to its highest since November 2007, with banks like DBS Group, OCBC, and UOB hitting record levels. Meanwhile, currencies in emerging Asia faltered against a resilient US dollar, influenced by the US Federal Reserve's recent substantial rate cut. In other parts of Asia, markets showed mixed results, with the Philippine stocks rising and the Thai stocks slipping, while the Malaysian ringgit remained stable but poised for a strong quarterly performance.