Forex

       The ringgit’s future

       ONE of the biggest questions Malaysians with savings in ringgit have been asking is, what is going to happen to the currency in the medium to longer term. Such concern stems from the fact that the ringgit has been underperforming over the last 10 years, losing its value significantly not only against the US dollar but also many other currencies, including its regional peers. For instance, the ringgit has lost about 31% against the Taiwanese dollar; 26% to the South Korean won; 23% to the Chinese yuan; 22% to the Singapore dollar; and 21% against the Thai baht over the period. Downward pressure on ringgit continues The ringgit was lower on Monday amid lack of catalysts, domestically. At 9.14 am, the local note eased to 4.2235/2265 versus the greenback from Friday's close of 4.2190/2220. Bank Islam Malaysia Bhd economist Adam Mohamed Rahim opined that the ringgit will continue trading above 4.20 today and this week amid the heightened number of COVID-19 cases in the country despite the encouraging vaccination rates

       Corporate news

       DoJ: Over US$1b in misappropriated 1MDB funds repatriated to Malaysia

       The Justice Department announced on Thursday that it has repatriated an additional US$452 million in misappropriated 1Malaysia Development Berhad (1MDB) funds to the people of Malaysia, bringing the total returned to over US$1.2 billion. In a statement posted on its website, the DoJ said according to court documents, the funds from 1MDB, formerly Malaysia's investment development fund, were laundered through major financial institutions worldwide, including in the United States, Switzerland, Singapore, and Luxembourg. As alleged in the civil forfeiture complaints, from 2009 through 2015, more than US$4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, and Low Taek Jho (aka Jho Low), through a criminal scheme involving international money laundering and embezzlement. MDEC appoints Richard Loh as CITO The Malaysia Digital Economy Corporation (MDEC) has appointed Richard Loh Tian Hu as its chief innovation and technology officer. MDEC said in a statement on Friday Loh will be responsible to lead and develop MDEC’s Digital information technology strategy, plan and transformation. It added he will also be tasked to review, reorganise and integrate MDEC’s technology functions and infrastructures as to maximise MDEC’s capabilities.

       Covid-19

       S P Setia offers two additional venues for PPVs

       S P Setia Bhd is offering two additional venues to be part of the National Immunisation Programme, bringing the total number of its facilities operating as the government's vaccination centres (PPVs) to six. Of the six venues, four are mega PPVs, said S P Setia. S P Setia senior executive vice-president Datuk Seri Koe Peng Kang said the group's aim of helping to accelerate the government's National Covid-19 Immunisation Programme remains. China aims to provide 2 bln COVID-19 vaccine doses, Malaysia among producers Chinese President Xi Jinping on Thursday said China will strive to provide 2 billion doses of Covid-19 vaccines to other countries in 2021, state broadcaster CCTV reported. In his written message to an international Covid-19 vaccine cooperation forum, Xi also said China would donate $100 million to the COVAX global vaccine distribution scheme, according to the CCTV report. China had supplied over 770 million vaccine doses to other countries, a statement on the website of its foreign ministry quoted Foreign Minister Wang Yi as saying at the forum on Thursday.

       Economy

       Is the lockdown worse than the disease?

       When the lockdowns are done haphazardly and disjointedly, questions arise as to whether they should continue. Should the lockdown continue as it has failed to suppress the virus spread or should containment measures be eased as concerns swirl over new variants? It has been a long-drawn battle against the Covid-19 pandemic for more than 18 months, businesses and people are battle-weary, pandemic-fatigued and in despair. “Open-shut” containment measures have caused deeper scarring effects on the economy, households, individuals and businesses. Asia’s factories reflect North-South divide as Delta spreads Manufacturing managers in Southeast Asia saw a slump in activity as the region grapples with one of the world's worst Covid-19 outbreaks, while North Asia continued to see a pick up as the global economy recovers. In Southeast Asia, which has emerged as one of the world's worst-hit pandemic areas in recent weeks, Indonesia's IHS Markit manufacturing Purchasing Managers Index plunged to 40.1 from 53.5, its worst reading in 13 months. Thailand's fell to 48.7 from 49.5 -- shrinking for a third consecutive month -- while Malaysia's reading hovered at 40.1 from June's 39.9, and Vietnam's PMI stayed in contractionary territory at 45.1 from 44.1. Technology

       Infineon production outages in Malaysia compound automotive chip supply crunch

       Chipmaker Infineon Technologies said on Tuesday that production outages at two of its plants had hit deliveries to core automotive clients, as the German car industry battles the worst supply crunch in three decades. Just as Munich-based Infineon was recovering from a winter storm that crippled its plant in Austin, Texas, a new wave of coronavirus infections forced the shutdown of one of its plants in Malaysia in June. Under those circumstances, any government-imposed lockdowns - such as the one at Melaka in Malaysia where Infineon has a production site - were especially grave.

       Semiconductor sector outlook continues to be bullish

       Key downside risks to the semiconductor sector include a prolonged Covid-19 pandemic weighing on economic growth, a heightened trade war, weaker-than-expected sales, and a weakening of the US dollar against the ringgit. According to global industry association SEMI, the robust investments in semiconductor equipment reflects the industry's push to address the prevailing global chip shortage. The robust spending on equipment is also expected to extend into the years ahead alongside the ramp-up in fab capacity to meet strong demand for chips from emerging applications such as 5G to 6G communications, artificial intelligence, autonomous vehicles, and high-performance computing.