In today’s episode of Malaysia Money Matters, we unpack a wave of major developments shaping Malaysia’s economy—from Sarawak’s energy power play and rising glove sector risks to the US-China tariff truce that boosted Bursa and rippled through global markets.
🇲🇾 Malaysian Company & Market News
🔹 Sarawak Set for LNG Shake-UpPetros expected to be named sole gas aggregator in Sarawak, with the state also boosting its LNG stake. A formal deal with Petronas is expected May 15, potentially transforming Sarawak’s control over its energy resources and regional gas exports.
🔹 BNM Holds OPR, Cuts SRRCentral bank keeps OPR at 3% for a 12th straight meeting but slashes SRR by 100bps to 1%—its lowest in 14 years—freeing up RM19B to support banking system liquidity.
🔹 Glove Sector Faces Renewed PressureUS tariff cuts on Chinese imports could drive down vinyl glove prices, making them more competitive vs. Malaysian nitrile gloves. Analysts are split; HLIB downgrades sector but favors Kossan, while CIMB stays neutral.
🔹 Palm Oil Output Surges, Stocks ClimbCPO production rose over 21% in April; inventories jumped nearly 20%. While exports are picking up—especially to India—rising stockpiles could weigh on prices if demand doesn't accelerate.
🔹 AI Chip Trade Easing May Boost Local SectorsKenanga sees upside for construction and utilities if US eases AI chip rules. Gamuda’s data centre deal and Tenaga Nasional’s 4,000 MW pipeline show rising demand linked to tech infrastructure.
🔹 DKSH Delivers Near-Record Q1Strong quarter driven by consumer goods and healthcare segments. Profit boosted by revenue gains, cost savings, and FX tailwinds. Company flags caution on global trade policy and subsidy shifts.
🔹 Duopharma Set for Strong GrowthCGS International projects 40% FY2025 earnings growth driven by APPL contracts, rising drug demand, and margin improvement. Keeps buy call.
🔹 Kerjaya Prospek Wins RM75M DisputeAwarded RM75.46M in adjudication against Yong Tai over Melaka project; legal process continues with a separate lawsuit still pending.
🔹 More Offshore Contracts: Keyfield & UzmaKeyfield secures Petronas Carigali workboat deal; Uzma wins 3-year electric wireline logging contract for East Malaysia. Adds to earnings visibility for both.
🔹 U Mobile Exits DNBSells stake in Digital Nasional Bhd to CelcomDigi, Maxis, YTL Power, and MOF Inc. for RM100K as it focuses on rolling out its second 5G network.
🌍 Global Trends & Their Impact on Malaysia
🌐 US-China Tariff Truce Lifts Global MarketsBoth nations slash tariffs for 90 days—US from 145% to 30%, China from 125% to 10%. Markets surge globally; JPMorgan drops US recession call, citing renewed trade optimism.
📊 Bursa Malaysia RalliesLocal equities hit two-month highs on improved global sentiment. Foreign inflows continued for a third week; tech and energy stocks outperformed.
📉 US & India Inflation CoolsUS core CPI rose just 0.2% in April; India's inflation hit a five-year low at 3.16%. Supports expectations of future rate cuts by Fed and RBI.
💼 US Considers Easing AI Chip Export RulesTrump administration eyes rollback of Biden-era AI diffusion rules—excluding China. Malaysian tech stocks like NationGate rise on policy clarity; Malaysia welcomes the shift.
📈 HSBC Upgrades Ringgit ForecastNow sees MYR strengthening to 4.20/USD by year-end on reduced FX buying, capital inflows, and global de-dollarisation trends.
💱 BNM Policy Outlook Post-SRR CutMoody’s Analytics expects OPR to stay at 3% through August, with a possible 25bps cut in September if inflation remains below 3% after RON95 subsidy reforms.
🛢 OPEC Output Dip Supports Oil PricesSupply declines from Venezuela, Iraq, and Libya limit expected increase. Oil prices up ~1%, buoyed by trade truce optimism.
⚡ Chinese Solar Stocks Jump on Output Cut RumoursReports suggest major producers may coordinate supply cuts to stabilise prices in an oversupplied market.
🤝 Malaysia-Russia Trade Talks DeepenPM Anwar visits Moscow to expand trade, investment, and explore tech collaboration. ASEAN-Russia ties also expected to deepen under Malaysia’s 2025 ASEAN chairmanship.
🧾 Targeted Fuel Subsidy Still Under ReviewRON95 subsidy plan remains under cabinet evaluation. Mid-2025 rollout likely with two-tier pricing using MyKad—pending inflation and economic impact assessments.
📌 Key Takeaways & Investor Insights
✅ Petros deal could mark a major turning point in Sarawak’s energy autonomy and LNG strategy.✅ BNM’s SRR cut injects liquidity but signals caution amid rising global risks.✅ US-China tariff truce offers temporary relief, boosting tech sentiment and market confidence.✅ Palm oil and glove sectors face near-term volatility; exports and tariff risks key watchpoints.✅ Malaysia’s construction and utility sectors stand to benefit from global tech shifts—watch data centre momentum.
🎧 Listen Now for a deep dive into Malaysia’s financial gems and global trends shaping 2025!
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