The government has always recognised the contribution of the Malaysian Chinese community in the country’s socioeconomic developments, as well as in economic, cultural, educational and industrial sectors, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said he acknowledged and saluted the role of Chinese entrepreneurs in Malaysia and globally for assuming the task of propelling the local and international economy.

“In a world marked by complexities and fraught with increasing instability, uncertainties and unpredictability, Chinese entrepreneurs globally can assume a bigger role in safeguarding regional economic cooperation, ensuring the security of crucial supply chains and promoting our global socio-economic development agenda.

“From Southeast Asia to East Asia, the United States, Canada, Europe and Africa, Chinese entrepreneurs have collaborated closely with others and have laid the foundations for forging deeper and stronger business and economic links across national borders.”

Anwar said this in his keynote address at the 17th World Chinese Entrepreneurs Convention (WCEC) here on Tuesday.

The prime minister said that under the Madani Economy framework, the government will continue to prioritise the enhancement of the economic landscape, fostering an environment conducive to investment and innovation.

At the same time, he said the government is also open to suggestions on what else needs to be done to foster such an environment.

“We are not here to suggest that it (the Madani Economy framework) is a perfect system and policy; we are here to govern and to learn and make a necessary adjustment because the fundamentals remain economic advancement,” he said.

Anwar said that only through economic success can the government ensure better housing, healthcare and infrastructure for the people, including inclusivity.

Meanwhile, he said Malaysia and China have enjoyed a longstanding bilateral relationship, underpinned by robust trade and investment ties, which will not only benefit Malaysia but also help the region continue to advance this policy.

The prime minister added that the relationship extends beyond traditional investment policies and practices, and that it has evolved into a more competitive new economic framework that encompasses not only investment but also other sectors, including tourism.

Some 4,000 local business leaders and overseas delegates from Asia, Europe, the Middle East, as well as North and South America, are attending the three-day convention organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) at the Kuala Lumpur Convention Centre.

Source: Theedgemarkets

Alternatives are an effective portfolio stabilizer:

There is more than meets the eye in real estate:

There are secular growth opportunities in infrastructure:

Private equity exit activity, despite improving on the margin, remains sluggish: 

U.S. private equity exit volume remained below pre-pandemic levels in 1H24. While IPO activity has improved in recent quarters, exits will likely remain subdued until interest rates move lower. Against this backdrop, secondaries are an attractive avenue for investors to gain exposure to seasoned assets at discounted valuations.

Elevated public market valuations, historically low bond yields and positive stock-bond correlation are all challenges facing the traditional 60/40 portfolio. Moving forward, investors may need to rely on alternative asset allocations to enhance return, income, and diversification in their portfolios. Indeed, investors are already planning on allocating more to a broad range of alternative assets.

The government says the South Korea's headline inflation is trending down toward the central bank's target of 2 percent.

And yet, the prices of everything, especially food, remain just as high.

This is because the prices of frequently purchased daily staples have remained elevated since in the pandemic years, according to economists, Tuesday.

“A large number of consumers feel that prices are still high, despite government efforts to reassure them otherwise,” Joo Won, director of the Hyundai Research Institute, said.

According to Statistics Korea, Korea experienced a 2-percent increase in headline inflation last month compared to a year ago. This marks the lowest level since a 1.9 percent increase in March 2021.

Still, the cost of living remains high.

The fresh food index rose 3.2 percent in August compared to the previous year. The index for agricultural produce, livestock, and seafood increased 2.4 percent.

Prices of pears and apples rose 120 percent and 17 percent, respectively. Additionally, the prices of cabbages and radish, key ingredients for kimchi, jumped 94.6 percent and 58.6 percent.

The Bank of Korea (BOK) noted that the prices of necessities such as clothing, food, and housing are higher in Korea compared to other countries — about 55 percent above the average for OECD member countries.

The high prices, which result from structural issues such as closed markets, especially burden vulnerable groups like low-income households and senior citizens,who spend a larger portion of their income on daily necessities, the central bank explained.

Also straining household finances are high debt service costs resulting from rapid monetary tightening after the pandemic, Joo points out.

“Years of high borrowing costs have left households strapped for spending. An easing by the central bank should help stimulate the subdued growth in consumption," he said.

In an economic outlook report released,last Sunday, Joo said the recent strong rebound in exports will not be sufficient to offset the weak domestic demand.

“The strong export performance driven by the semiconductor industry and stagnant domestic consumption will tell two different stories, depending on who you ask. The impressive results of a few leading IT exporters may not necessarily reflect a stronger purchasing power for the average consumer,” the report read.

The report also showed the monthly increase in debt service costs per household averaged 121,000 won ($90) in the first three months of this year. This represents a more than 40 percent rise from the April-June period of 2022.

“It marked the sixth consecutive quarter of double-digit increases since the third quarter of 2022,” he said.

Korea’s household surplus has been decreasing for the past eight quarters. The surplus represents the amount of money remaining after accounting for disposable income and consumption.

Disposable income refers to the amount remaining after deducting non-consumption expenditures, such as interest payments and social security premiums.

As of the second quarter, Korean households reported a monthly surplus of approximately 1 million won, down 18,000 won, or 1.7 percent, from the previous year.

Over the past two years, real household income has decreased by as much as 3.9 percent.

Market watchers say that stagnant private consumption is unlikely to see a breakthrough unless the BOK lowers key rate to end years of sustained high borrowing costs.

Source: Koreatimes

Bank of Japan (BOJ) officials see little need to raise the benchmark rate when board members gather next week, as they are still monitoring lingering volatility in financial markets and the impact of the July hike, according to people familiar with the matter.

The BOJ is likely to keep borrowing costs unchanged at 0.25% at the Sept. 20 conclusion of its two-day gathering, according to the people. The bank needs to carefully monitor financial markets given recent ructions that include the Nikkei 225’s biggest plunge in history on Aug 5, just days after the central bank raised its rate, the people said.

Most economists surveyed after the sharpest market moves in August expect the central bank to wait until December or January before raising rates again.

The BOJ’s board will meet after revised economic data showed that the second-quarter expansion was a tad slower than the initial estimate but still strong enough to keep authorities on track to adjust policy settings that remain ultra-easy by global standards even after two rate hikes this year.

For that reason, even with one eye on the markets, officials are likely to retain their stance that they should raise rates if the economy and inflation continue to meet expectations, the people said.

Recent market turmoil has so far had no major impact on the bank’s view set out in its quarterly outlook report in July, they said. So officials aren’t ruling out another rate hike later this year or in early 2025, depending on the state of the economy and financial markets, the people added.

Deputy governor Shinichi Uchida last month said the bank won’t raise rates when financial markets are unstable. Another deputy, Ryozo Himino, said the BOJ’s primary task for now is to closely monitor markets.

The possibility that the US economy may prove weaker than expected is a factor officials are keeping an eye on and that suggests the bank shouldn’t rush toward its next rate hike, they said.

BOJ officials are also closely watching domestic political developments as Japan is poised to get a new premier, according to the people. The ruling Liberal Democratic Party’s Sept 27 leadership election is all but certain to determine who will succeed Fumio Kishida as the prime minister, given the party’s dominance in Parliament.

BOJ officials don’t expect the new leader to push for drastic change in monetary policy as the ruling party is on board with the bank’s pursuit of its stable inflation target, they said.

As the BOJ raises rates, officials are carefully trying to determine the most appropriate level by examining the impact of each individual rate hike, the people said. For now it’s fine if market participants take the view that the central bank views the nominal neutral rate of interest for the economy at least around 1%, as indicated by a recent BOJ paper, the people said.

The BOJ’s nine-member policy board will kick off its meeting just hours after the Federal Reserve is widely expected to cut interest rates, joining the European Central Bank in a long-awaited policy pivot to easing.

Lower interest rates in the US would narrow the differential with interest rates in Japan, offering support for the yen. BOJ officials will monitor the immediate market reaction with great interest while also checking to see if a US rate cut helps restore stability in the market, the people said.

Source: Theedgemarkets