MY Morning Wrap | I-Bhd Reports Tripling of Net Profit in Q2 Due to Leisure Turnaround

Foreign holdings of Malaysian bonds increased to RM279.1 billion in July, the highest since November last year, with a significant monthly jump of RM7.8 billion. The rise in foreign investments has led to a decrease in the 10-year Malaysian Government Securities yield to 3.72%. Government bond issuances held steady, and MIDF Amanah Investment Bank may revise its year-end targets if the uptrend continues.

The Socio-Economic Research Centre (SERC) in Malaysia anticipates that the country can navigate through a mild US recession due to its diversified exports and strong domestic demand. SERC's executive director, Lee Heng Guie, highlighted at a media briefing that Malaysia's economic fundamentals and governmental measures should help mitigate potential negative impacts from the US economic downturn. Despite the looming threat of a US recession, with JPMorgan Chase predicting a 35% chance of occurrence by year's end, Malaysia's position remains relatively optimistic. However, Lee also indicated that the global economic landscape faces additional risks, including China's slowing growth and ongoing international conflicts, which could collectively challenge the world's economic stability.

Prime Minister Anwar Ibrahim reports increased investments in Malaysia's electrical and electronics sector, undeterred by its stance on Gaza, which differs from the US and European positions. Anwar cites US and German investors' continued interest and plans to bolster technical education to support industry growth. The strengthening ringgit and upcoming Budget 2025 signal Malaysia's economic resilience and ambition to become a regional semiconductor hub.