China's Major Commodity Imports Ease, Except For Iron Ore: Russell

Malaysia's banking industry is accelerating the use of artificial intelligence (AI) to strengthen compliance, risk management and fraud detection.

However, this must be done responsibly, with strong human oversight, said Asian Institute of Chartered Bankers (AICB) chief executive Edward Ling.

He said the rate of AI adoption among Malaysian financial institutions (FIs) is encouraging, as AICB's 2025 Workforce Survey found that 57 per cent of FIs indicated they are in the early stages of AI adoption, although the pace differs depending on each institution's readiness.

"A few years ago, our focus was on building awareness. Today, the landscape has evolved, and the conversation has shifted beyond awareness; we are firmly in the adoption and implementation phase," he said during a media roundtable held recently in conjunction with the 15th International Conference on Financial Crime and Counter Terrorism Financing (IFCTF).

He highlighted that AICB's Chief Risk Officers' (CRO) Forum, supported by Bank Negara Malaysia (BNM), has also spearheaded Malaysia's first AI Governance Framework for financial services.

Recently launched, the industry-led initiative is designed to help banks integrate technology responsibly and ensure public trust in the financial system remains intact.

"The CROs have come together to develop a comprehensive AI governance framework that will guide Malaysia's financial industry in adopting AI responsibly, safely and in a future-ready manner, underscoring the industry's commitment to maintaining trust in the financial system.

"As financial institutions accelerate their use of AI, those seeking to exploit technology are also becoming more sophisticated, and at times, they may move faster than us. This is precisely why Malaysia must begin its AI journey on the right footing, with clear safeguards and strong governance in place," he added.

Ling said the future of banking will be defined by how effectively the workforce adapts and upskills for an AI-driven era.

He added that AICB's Future Skills Framework (FSF), together with the newly launched FSF Xcel — Malaysia's first digital skills assessment platform for the financial sector — plays a pivotal role in helping financial professionals identify skill gaps and prepare for the industry's accelerating digital transformation.

"We introduced the FSF in July last year to identify current and emerging skills required for banking professionals. To make the framework more actionable, AICB has now launched FSF Xcel, an AI-driven platform that helps professionals identify their skill gaps, benchmark their capabilities and chart personalised learning pathways based on real-time data," he said.

With more than 40,000 employees expected to see their roles evolve due to automation and technological augmentation, and 67 per cent of institutions reporting moderate proficiency in key digital skills, this further underscores the need for targeted upskilling.

Ling added that the role of the compliance officer is evolving, with professionals now expected to become technologists and data storytellers — applying advanced digital literacy, data interpretation and analytical capabilities to strengthen governance and safeguard the integrity of the financial system.

Meanwhile, Oracle Financial Services senior vice president for finance, risk and compliance product development, Jason Wynne, said AI is helping FIs address the root causes of financial crime — shifting from predicting false positives to building intelligent behavioural models that better understand risk.

"We want to enable banks to have investigators spend less time gathering data and more time making high-impact decisions," he said.

Wynne said Oracle's proprietary multi-agent AI Investigators completely transform case investigation workflows by autonomously surfacing critical insights, building case evidence and generating recommendations that significantly enhance investigation quality, accuracy and speed.

"The future of compliance is not just technology; it is humans plus AI. Institutions that master the collaboration between the two — grounded in explainability, agility and control — will be better equipped to stay ahead of their risks," he added.

He said Oracle's enterprise-scale analytics platform enables behavioural models expertly tailored to identify high-risk indicators and red flags, while its data-driven and transparent approach to anti-money laundering and compliance has empowered more than 200 global financial institutions.

He added that Oracle's solutions integrate seamlessly with its robust suite of financial services applications, embedding a data-driven decision-making approach that reinforces the shared goal of future-proofing the financial ecosystem through collaboration, trust and innovation.

The IFCTF 2025, organised by AICB and its Compliance Officers' Networking Group, took place from Nov 4–6, 2025, at the Malaysia International Trade and Exhibition Centre (MITEC), Kuala Lumpur.

Supported by BNM, the Securities Commission Malaysia and the Labuan Financial Services Authority, the three-day conference brought together more than 1,200 banking and compliance professionals and over 50 global experts to explore how technology is transforming compliance, risk management and financial crime prevention.

Source: TradingView

Japanese Prime Minister Sanae Takaichi said on Monday she would instruct her cabinet in January next year to start work on setting a new fiscal target extending through several years.

She said her administration would not ditch the current primary budget target immediately.

The remarks followed those she made on Friday that her government would ditch the current annual fiscal target in favour of one that measures spending through several years, essentially watering down the country's commitment to fiscal consolidation.

Last week's remarks from Takaichi, known as an advocate of big spending, signal a major shift from past administrations that used the annual target as a key tool to show Japan's resolve to get its fiscal house in order in the long run.

Under a long-term fiscal blueprint set in June, the government said it will aim to deliver a primary budget surplus sometime through fiscal 2025 to 2026.

When asked about the target, Takaichi told parliament on Friday she would drop the idea of using the annual primary budget balance as Japan's fiscal consolidation goal.

Instead, the government will check progress in fixing Japan's finances "by looking at its balance in a span of several years," she said.

The primary budget balance, which excludes new bond sales and debt-servicing costs, measures the extent to which policy measures can be funded without resorting to debt.

Japan has repeatedly pushed back the timeframe for achieving a primary budget surplus as past governments continued to deploy massive spending packages to reflate the economy and fend off shocks such as the pandemic.

Takaichi has repeatedly criticised the primary budget balance as out of sync with global standards and constraining Japan's ability to use fiscal tools to prop up growth.

Takaichi has said her administration will compile a spending package aimed at cushioning the blow from rising living costs, boosting investment in growth areas and defence.

Japan is saddled with public debt twice the size of its economy, which is the worst among major economies.

Source: TradingView

The Reserve Bank of Australia has warned that the path to more interest rate cuts could be narrow given elevated levels of capacity utilization in the economy and an outlook that includes uncomfortably high inflation well into next year.

"The Australian economy is in a unique situation," RBA Deputy Governor Andrew Hauser said in a speech to money market participants on Monday.

The economy has seen one of the sharpest disinflations in decades and it has been achieved without a contraction in economic activity, and with the employment share at an all-time high, he said.

"That is a great outcome - but it also means that the recovery in GDP growth began last year with the highest level of capacity utilization in any recovery over the past 40 years," Hauser added.

"There is room to debate what that means for the precise stance of monetary policy in the near term," Hauser said.

"It's possible that the economy may find itself boxed in by its own capacity constraints, like a racehorse trapped against the course fence, unable to surge forward," he added.

"On that view, there may be little scope for demand growth to rise further without adding to inflationary pressures, and hence there may be little room for further policy easing," Hauser said.

The RBA's latest projections show inflation settling very slightly above the midpoint of the 2% to 3% target range if the cash rate follows a market-derived path of one more interest rate cut, he said.

The RBA has cut interest rates three times since February, but it passed on an opportunity to deliver a fourth cut at a policy meeting last week, citing a rise in inflation in the third quarter that exceeded its own expectations, and those of nearly all market economists.

The environment in which the RBA finds itself in strongly suggests that the easing cycle could already be over after just three reductions, which have seen the official cash rate lowered by just 75 basis points to 3.60%.

RBA Governor Michele Bullock highlighted last week that the central bank did not tighten interest rates nearly as much as other central banks when inflation rose after the pandemic, so it might be that the easing cycle might be shallow.

Hauser said that years of weak productivity growth meant the speed limit of the economy was lower, increasing inflation risks if the economy runs too hot, and curbing the RBA's ability to cut interest rates.

Still, if productivity could be raised through a process of economic reform, the economy would be "off to the races," he said.

"Expanding productive capacity further will require time and investment - and here there is work to do," Hauser said.

Real business investment has been flat over the past 18 months, and capital expenditure intentions suggest little or no growth over the current fiscal year. And private investment, which also includes housing investment, remains well below historic peaks, he said.

Source: TradingView

Chinese consumer price index inflation picked up in October on some support from the Golden Week holiday, while producer inflation shrank slightly less than expected.

But the print still showed China's deflationary trend in play, with PPI also shrinking for more than three consecutive years.

CPI grew 0.2% year-on-year, government data showed over the weekend. The print beat expectations that inflation will remain flat, and picked up from a 0.3% contraction in the prior month.

CPI also grew 0.2% month-on-month.

The print was China's first positive CPI reading since June, and was driven chiefly by increased spending during the Golden Week holiday in early-October. Consumers were seen spending more on discretionary items and travel, while key shopping events– specifically the Singles Day event– also boosted spending.

But the pick-up in CPI inflation came amid years of rampant deflation in the country, with heightened economic uncertainty and weak output prices still remaining in play. Increased trade tensions with the U.S. added to this trend.

On the producer front, producer price index inflation shrank 2.1% y-o-y in October, less than expectations for a 2.3% decline.

While the print benefited from some output curbs in China, it still marked a 37th consecutive month of factory gate deflation. China's massive manufacturing sector has been steadily declining over the past three years, with recent purchasing managers readings for October also signaling little improvement.

Beijing has pledged to dole out more stimulus measures to support growth in the coming months. Improving trade relations with the U.S. are also expected to help.

Source: Investing

Bank of Japan policymakers saw a growing case to raise interest rates in the near term, with some calling for the need to ensure companies' wage-hike momentum will be sustained, a summary of opinions at the October meeting showed on Monday.

Of the 13 opinions on monetary policy from the nine-member board, eight called for the need to raise interest rates soon or laid out specific conditions to hike borrowing costs in the near-term horizon, the summary showed.

"While the current situation may not require immediate action, the Bank should not miss the timing to raise the policy interest rate," one member was quoted as saying in the summary.

The BOJ is likely to raise rates if there is "no negative news" regarding the global economy or markets, and if it can confirm that firms' active wage-setting behaviour will be maintained, another opinion showed.

At the two-day meeting through October 30, the BOJ kept interest rates steady at 0.5%. Two board members dissented to the decision and instead proposed hiking rates to 0.75%.

In a news briefing after the meeting, BOJ Governor Kazuo Ueda said he wanted to await "a bit more data" to confirm whether companies will keep raising wages despite pressure from higher U.S. tariffs.

Source: Investing

The record-breaking US government shutdown is nearing an end after a group of moderate Senate Democrats agreed to support a deal to reopen the government and fund some departments and agencies for the next year, people familiar with the talks said.

Under the agreement, Congress would pass full-year funding for the departments of Agriculture, Veterans Affairs and Congress itself, while funding other agencies through Jan. 30. The bill would provide pay for furloughed government workers, resume withheld federal payments to states and localities and recall agency employees who were laid off during the shutdown.

The chamber is set to hold a procedural test vote on Sunday. If that vote succeeds, the Senate will need the consent of all members to end the shutdown quickly. Any one senator can force days of delay and votes. The House would then need to pass the bill for the government to reopen and Speaker Mike Johnson has said he will give lawmakers two days notice to return.

"It looks like we're getting closer to the shutdown ending," President Donald Trump told reporters Sunday evening as he returned to the White House.

House passage is not guaranteed. Democratic leaders have spoken out against any deal that doesn't include extending expiring Obamacare subsidies, which this bill does not do. Conservative Republican members want a bill that would fund the entire government until next Sept. 30.

The face-saving accord also falls far short of the goals of House and Senate Democratic leaders, who had demanded an extension of expiring Obamacare premium subsidies and a repeal of Medicaid cuts passed by Republicans earlier this year.

"We will fight the GOP bill in the House of Representatives," House Democratic leader Hakeem Jeffries said in a statement Sunday night.

Instead, the group of Democratic senators accepted the promise of a Senate vote this year on an extension of the Affordable Care Act subsidies — a pledge that was extended weeks ago by Senate Majority Leader John Thune.

Earlier: US to Send Some SNAP Funds Despite Trump Post, White House Says

The approaching resolution of the 40-day shutdown mirrors that of past showdowns where the party attempting to leverage a government closure for policy victories ends up without a victory. Trump failed to secure border wall funding through the 2018-2019 shutdown and Republicans failed to repeal Obamacare during the 2013 closure.

Democrats this year voted 14 times to block a no-strings stopgap measure passed by the House on Sept. 19 that would have kept departments and agencies open through Nov. 21. On Wednesday, the shutdown became the longest in US history, exceeding the 35-day closure in 2018 and 2019 under the first Trump administration.

On Friday, Senate Democratic leader Chuck Schumer said Democrats would allow the government to reopen in exchange for a one-year extension of the expiring Obamacare tax credits.

That offer was swiftly rejected by Republicans, many of whom are demanding a wholesale replacement of Obamacare with a yet-to-be unveiled GOP alternative.

Republicans decided to stonewall Democrats on their demands for $1.5 trillion in new spending by keeping the House out of session since Sept. 19. The White House escalated the pressure by firing government employees en masse, threatening not to pay more than 600,000 furloughed federal workers, and working to defy court orders to pay food stamp benefits.

As the busy Thanksgiving travel season neared, Transportation Secretary Sean Duffy ordered airlines to cancel flights, causing major headaches for travelers. On Sunday, he said it would only get worse in the holiday season.

The tactics largely worked in getting enough Senate Democrats to fold under pressure. Republicans, despite controlling both houses of Congress, needed eight Democrats to go along with a stopgap spending bill to shut off debate in the Senate.

Talks among a group of bipartisan senators accelerated after Democratic sweeps in the off-year elections in New York City, New Jersey, Virginia, California and elsewhere. Republicans said that Democrats appeared concerned that backing off their shutdown demands before voters went to the polls would depress turnout.

It's unclear whether Congress will come to a deal on extending the Obamacare subsidies before they expire at the end of December. House Republican leaders say they are opposed to the extension and instead have floated a series of conservative priorities that include expanding short-term health insurance plans to compete with the Obamacare exchange plans and imposing abortion-related restrictions.

Senate Republicans have said any extension would have to include major changes, such as income caps on who can receive subsidies and a requirement that recipients pay at least some premium. Some, however, are demanding a wholesale rewrite of the Affordable Care Act before agreeing to anything.

The shutdown consequences are costing the US economy about $15 billion a week. And the Congressional Budget Office estimates that the shutdown will reduce annualized quarterly growth rate of real GDP by 1.5 percentage points by mid-November. Consumer sentiment hit a three-year low on Friday amid heightened anxiety about the shutdown, prices and the job market.

It has led to a suspension of most government economic data, causing the Federal Reserve to fly blind as it navigates stubbornly high inflation and rising unemployment.

Source: Bloomberg Europe