Economics

Malaysia: 2Q economic growth at 5.9%, faster than expected

Malaysia’s Gross Domestic Product (GDP) grew 5.9% year-on-year in the April-June quarter, Bank Negara Malaysia (BNM) announced on Friday. On a seasonally adjusted basis, GDP rose 2.9% quarter-on-quarter. On the demand side, private consumption rose 6%, while private investment climbed 12%, data showed. Public consumption gained 3.6%, while public investment was 9.1% higher. Net exports were up 3.4%. On the supply side, the services sector expanded 5.9%, and manufacturing activity advanced 4.7%. Mining production edged up 2.7%, while the construction sector was 17.3% higher. (The Edge)

US: Consumer sentiment rises in August; inflation expectations steady

The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 67.8 this month, compared to a final reading of 66.4 in July. The survey noted that for consumers surveyed, sentiment for Democrats jumped 6% in the wake of Vice President Kamala Harris replacing President Joe Biden as the Democratic nominee for president. For Republicans, sentiment moved in the opposite direction, declining 5% in August. The survey showed 41% of consumers viewed Harris as the better candidate for the economy, while 38% chose Republican nominee Donald Trump. (Reuters)

US: Home construction falls to slowest pace since May 2020

Total housing starts decreased 6.8% to a 1.2m annualised rate last month, dragged down the biggest decline in single-family units since April 2020, according to government data released Friday. A sizeable decline in the South may have reflected the impact of Hurricane Beryl. The Commerce Department’s report also showed the number of completed single-family units rose to the highest level in three months and remains well-above the pre-pandemic trend. (Reuters)

South Korea, Japan, US: Leaders renew pledge to cooperate on regional challenges

The leaders of South Korea, Japan and the United States issued a joint statement on Sunday, marking the anniversary of their summit at Camp David and reaffirmed a pledge to jointly tackle regional challenges, South Korea's presidential office said. US President Joe Biden, Japanese Prime Minister Fumio Kishida and Yoon met on Aug 18, and agreed to deepen military and economic cooperation and take a united stand against China's growing power and security threats from North Korea. (Reuters)

Malaysia: New minimum wage proposal to be presented to Cabinet next month — HR minister

The proposal for a new minimum wage is expected to be presented in a Cabinet meeting next month, said Human Resources Minister Steven Sim Chee Keong. Sim previously said that the government would review the minimum wage, which was last updated in May 2022, raising it from RM1,200 to RM1,500. On Friday, Prime Minister Datuk Seri Anwar Ibrahim expressed hope that the private sector, especially companies with high profits, would review their salary schemes to provide more reasonable remuneration to employees. (Bernama)

Companies

MBSB: Mohamed Rafe appointed MBSB Bank CEO

Mohamed Rafe Mohamed Haneef, group chief executive officer (CEO) of MBSB Bhd (MBSB), has taken up an additional role as the CEO of its Islamic banking unit MBSB Bank Bhd effective August 19. (The Edge)

ITMAX: Bags additional orders worth RM539m from DBKL

ITMAX System Bhd (ITMAX) said on Friday that it has secured an additional order worth RM539.5m for the installation of more surveillance cameras and video signages in Kuala Lumpur. The variation order from the Kuala Lumpur City Hall (DBKL) involves additional 5,000 closed circuit televisions (CCTVs) and video messaging signages (VMS), ITMAX said in an exchange filing on Friday. The contract would last 120 months, comprising 12 months’ installation and 108 months of service subscription. (The Edge)

Bumi Armada: Unit secures US$400m syndicated facilities to refinance RM1.5bn sukuk

Bumi Armada Bhd announced that its wholly-owned subsidiary Bumi Armada Holdings Labuan Ltd (BAHLL) has secured syndicated facilities with a six-year tenor at an aggregate principal amount of up to US$400m (RM1.8bn) to refinance an RM1.5bn sukuk. The company said the facilities comprise a US$135m conventional syndicated term loan and a US$265m Islamic syndicated commodity Murabahah facility. “The proceeds are to be applied inter alia (among others) towards the full redemption of the sukuk and its related cross currency and interest rate hedge liabilities,” it said in a stock exchange filing. (The Edge)

LKL: Signs pact with Karl Group to explore hospital furniture manufacturing in Philippines

Medical bed manufacturer LKL International Bhd (LKL) said on Friday it has signed a pact with Karl Group to explore opportunities and collaborate on manufacturing hospital furniture in the Philippines. Under the memorandum of understanding (MOU) signed, LKL will be responsible for providing technical expertise and technology, supporting training and capacity building, and assisting in identifying potential investors and financial support, the company said in an exchange filing. (The Edge)

Pestech: Acquire 51% stake in Pestech for RM160m

Dhaya Maju Infrastructure (Asia) Sdn Bhd has signed an agreement to acquire up to 51% stake in electrical engineering firm Pestech International Bhd. The latest proposal comes just a day after construction giant IJM Corp Bhd aborted its plan to acquire a 44.83% stake in Pestech for RM124m, due to unmet conditions in the acquisition agreement. A heads of agreement was signed for the proposed subscription of at least 1.03bn shares for 15.5 sen apiece totalling about RM160.1m, Pestech said in an exchange filing. Dhaya Maju will conduct a due diligence review of Pestech, it noted. The two parties will negotiate and executive a definitive agreement within two months, Pestech said. (The Edge)

SBC Corporation: Sells 2.2-acre land for RM37m

SBC Corporation Bhad said it is selling 2.2 acres of land in Kuala Lumpur for RM36.6m. In a bourse filing, the group said the disposal of the land, located in Taman Mastiara, off Jalan Ipoh, presents an opportunity to generate cash flow for its development projects.

Source: Mercury Securities Research - 19 Aug 2024