MY Morning Wrap | ILB Group Acquires Solar Energy Company and Assets for RM98 Million

Standard Chartered Bank (StanChart) Malaysia predicts that the FBM KLCI will see an upside potential in H2 2024 due to the expectation of easing US monetary policy and increased foreign interest. The bank's head of asset allocation and thematic strategy, Audrey Goh Sze Chieh, expects Malaysia to perform in line with the regional market as long as global equities continue to do well. StanChart Malaysia is also expecting the US Federal Reserve to cut interest rates up to twice for the remainder of the year. The data centre boom and structural reforms are attracting foreign investors to the equity market, with foreign participation accounting for only 20% of the local equity market. The bank has maintained Malaysia's economic growth forecast at 4.8% this year and expects Bank Negara Malaysia to keep the interest rate steady at 3% for the remainder of the year.

Malaysia's Investment, Trade, and Industry Deputy Minister Liu Zhendong has stated that the government will ensure the effective use of water and electricity supply with the increase in investment in data centers. He said that the National Recovery Council (MPN) agreed at a meeting last month that the Ministry of Investment, Trade, and the Malaysian Investment Development Authority unanimously agreed that the data center investment policy should be fundamentally improved based on several factors, including providing guidelines for the efficient use of electricity and water sources. The government aims to promote investment in the country's artificial intelligence (AI) data centers by providing sufficient renewable energy. The ministry aims to develop a comprehensive digital economic ecosystem and encourage the use of AI technology in various fields, including intelligent manufacturing.