Samantha Luan

Malaysia should capitalise on its multicultural milieus and multilingual professional workforce as well as its non-aligned geopolitical positioning, and make a concerted effort to make Kuala Lumpur a preferred choice for global and regional businesses to select as a hub.

Most currencies in emerging Asian markets rose on Wednesday as the dollar yielded some of its overnight gains, while equities in the region also advanced, as traders weighed the odds of an outsized rate cut by the US Federal Reserve (Fed) later in the day.

Total exports rose 5.6% year-on-year in August, up for a ninth straight month, data showed on Wednesday, well below a median market forecast for a 10% increase and following a 10.3% rise in July.

The Japanese Yen (JPY) retraces its losses against the US Dollar due to rising expectations of a 50 basis point Federal Reserve (Fed) rate cut on Wednesday.

The Aussie climbed to as far as US$0.6773, the highest since Sep 3.

Oil prices steadied on Wednesday, after rising in the previous two sessions, as investors await the US Federal Reserve's (Fed) anticipated interest rate cut, with the potential for more violence in the Middle East supporting the market.

The Fed is right to start a rate cut cycle. They haven’t defeated inflation yet, but they’re damn close. The big question of the week is, will it be a 25 or 50 bps cut?

Historical data suggests that significant Fed rate hikes and an inverted yield curve often precede major recessions and stock bear markets. Recent employment data, including declining job openings and full-time jobs, signals an imminent or ongoing recession. Proven recession indicators, such as rising unemployment and underperforming speculative assets, suggest a bear market is likely imminent.

While the PPP model is not new, UOB Global Economics & Markets Research views the updated framework as critical for reducing government fiscal burdens and fostering sustainable development.