MY Morning Wrap | Berjaya Food Expands to Nordic Markets with Starbucks Operations in Iceland, Denmark, and Finland

Kenanga Investment Bank projects Malaysia's economic growth to moderate to 4.3%-4.6% in the second half of 2024, down from a 5.0% increase in the first half, due to heightened external risks including global monetary tightening and a sluggish recovery in China. Despite revising down the gross export growth forecast, Kenanga remains cautiously optimistic, citing strong domestic demand and the services sector as factors that will underpin the economy's resilience.

Malaysia's digital investments have reached a new high of RM66.22 billion in the first half of 2024, outpacing the entire previous year's total of RM46.2 billion. Digital Minister Gobind Singh Deo highlighted the surge as a reflection of enhanced investor confidence and the anticipated economic growth of 4-5%. This investment wave has generated 25,498 jobs, exceeding the previous year's figure, with digital exports fostered by the Malaysia Digital Economy Corporation (MDEC) amounting to over RM1.93 billion. The data center and cloud sectors led the investment values, while Information Technology (Infotech) and Global Business Services (GBS) dominated in digital job creation. Additionally, 451 tech companies received the Malaysia Digital (MD) Status in the first half of 2024, with incentives including tax breaks and access to funding.

The Malaysian ringgit has seen its largest daily appreciation against the US dollar since October 2015, soaring by 2.28% and outshining other Asian currencies with its year-to-date performance. Climbing to 4.4250, this marks the ringgit's strongest position since April 2023. Forex analysts from CIMB Treasury & Market Research anticipate further strengthening, driven by increased net forex inflows and a recovery in Malaysia’s electrical and electronics exports. The shift in Malaysian exporters converting more earnings into ringgit and the reduced preference for holding US dollars, due to narrowing yield differentials between the US and Malaysia, support the local currency's rise. Additionally, prospects of US rate cuts, strong export and foreign investment outlooks, and the normalization of non-resident bond and equity holdings contribute to a favorable scenario for the ringgit. Despite the US dollar's oversold status, UOB Global Economics & Markets Research believes the selling trend will persist, with the ringgit appreciating 6.2% over the past month and 3.64% year to date, in contrast to the general depreciation of its Asian counterparts.