Wednesday, 27 Jan 2021
UOB Francis EngUOB Asset Management (M) Bhd chief investment officer Francis Eng said that the long road to recovery would hinge on the duration of the second movement control order (MCO 2.0) and whether stricter measures are enforced.
KUALA LUMPUR: The surge in Covid-19 cases in Malaysia could possibly delay the recovery in Malaysia’s economy to 2022, says UOB Asset Management (M) Bhd chief investment officer Francis Eng.
He pointed out that the long road to recovery would hinge on the duration of the second movement control order (MCO 2.0) and whether stricter measures are enforced.
“There is a possibility that we have to wait until next year for the economy to get back to pre-Covid-19 levels.
UOB Asset Management (M) Bhd chief investment officer Francis Eng said: With a lot of liquidity out there, we think the yield here (in Malaysia) is still attractive enough .
KUALA LUMPUR: UOB Asset Management (M) Bhd expects another Overnight Policy Rate (OPR) cut to take place this year if the Movement Control Order (MCO 2.0) is extended beyond Feb 4,2021, or stricter measures are enforced by the government.
Chief investment officer Francis Eng said however, a further interest rate reduction would not make Malaysia’s fixed income market less attractive to foreign investors. We are now in an environment where the global interest rates are at very low levels, and there are trillions of bonds with negative yields out there.
Malaysia’s bond market continued to see net positive foreign inflows in December for the eighth consecutive month, despite Fitch's downgrade of Malaysia’s sovereign credit rating amid the Covid-19 pandemic, said Malaysian Rating Corp Bhd (MARC).
Most banks opened up higher this morning after Bank Negara Malaysia’s (BNM) decision to keep the overnight policy rate (OPR) at 1.75% yesterday. Seven banks were in the green, while three were in the red. Malayan Banking Bhd (Maybank) opened 0.49% or four sen higher at RM8.13, Public Bank Bhd increased 1.31% or 28 sen to RM21.60, CIMB Group Holdings Bhd was up 0.74% or three sen at RM4.07, and RHB Bank Bhd gained 0.19% or one sen to RM5.30.
KUALA LUMPUR (Jan 21): Malaysia has the right formula to position it on the recovery path in terms of both public health and the economy, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said the combination of the recent decisions involving the Overnight Policy Rate (OPR) and the Statutory Reserve Requirement (SRR) as well as Budget 2021 initiatives and the Malaysian Economic and Rakyat’s Protection (PERMAI) assistance package including the expediting of vaccine procurement and encouraging screening of employees were seen as the right formula.
“Most importantly, the measures must be seen in totality, not in isolation,” he said in presenting the 37th Implementation and Coordination Unit Between National Agencies (LAKSANA) Report today.