MY Morning Wrap | MAHB's Passenger Traffic Soars 22.3% in November, Hits 9.6 Million

AmInvestment Bank Research highlights a deceleration in Malaysia's House Price Index growth post-2013 boom, with housing affordability remaining a key issue due to a supply-demand imbalance and stagnant wages. Despite these challenges, the property sector is poised for recovery, fueled by factors like GDP growth, job market improvements, and government developmental initiatives. The firm maintains an optimistic 'overweight' outlook, expecting transaction volumes to rise and sentiment to brighten, particularly as easing material costs and labor issues begin to bolster developer cash flows and facilitate new project launches.

UOB predicts that Malaysia's inflation will be contained at 1.5-1.7% in December, averaging at 2.5% for 2023. Looking ahead to 2024, the bank expects a slight increase to 2.6%, considering a service tax hike set for March. While the forecast doesn't account for other policy changes such as the new sales tax on low-value goods and selective electricity tariff hikes, these factors, along with volatile commodity prices and policy shifts, could push inflation higher. Nonetheless, UOB foresees the overnight policy rate holding steady at 3.00% through 2024.

Malaysia is advancing as a leader in the halal pharmaceutical sector, adhering to Islamic production standards and expanding through rigorous certification and industry growth. With the industry ranking just behind halal food in size, the country has seen an increase in exports and demand, supported by government initiatives and a booming Muslim population. Despite facing global certification challenges, Malaysia's strategic innovations and established standards position it as a key player in the halal pharmaceutical market.