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Market Highlights
Economic Update
Mon, 11 May 2026 07:19 am
Malaysia Industrial Production - Steady outlook amid inventory frontloading

The Industrial Production Index (IPI) remained firm at +3.1% YoY in March (Feb: +3.1%), although below consensus of +3.5%, underpinned by firmer manufacturing output.
Rebound in the refined petroleum products subsector suggests no immediate drag on domestic fuel production.
Frontloading and stockpiling activities should help cushion short-term risks from raw material supply disruptions.
We maintain our 2026 manufacturing growth forecast at +4.5% YoY (YTD: +5.7%; 2025: +4.5%) and GDP forecast at +4.7% (2025: +5.2%).

Economic Update
Fri, 08 May 2026 09:47 am
BNM MPC Meeting: BNM to remain data-dependent

• BNM kept the OPR at 2.75% at its May MPC meeting, in line with our expectations.
• The policy tone was slightly cautious, particularly on the balance of risks surrounding the growth and inflation outlook amid fluid Middle East developments.
• BNM will remain data-dependent. While the hurdle for a rate hike remains high, a rate cut cannot be ruled out should the conflict materially weigh on the domestic economy.
• Given that the growth and inflation outlook remain intact, we continue to expect BNM to maintain the OPR at 2.75% through 2026.

Market Outlook
Mon, 04 May 2026 07:38 am
Market Outlook - Oil, AI and Uncertainty: What Drives Markets in May?

• The FBM KLCI rose 31.66 points, or 1.9% month-on-month, in April 2026 as investors looked past near-term tensions, supported by AI-driven tech strength and hopes of renewed diplomacy. 
• We are of the view that market will likely remain range-bound in May.
• Key events to watch out for: the release of CPI and PPI on 12 and 13 May, the FOMC minutes on 21 May, the upcoming Fed chair transition, a potential meeting between Donald Trump and Xi Jinping in Beijing, and domestic earnings season.
• Our top three picks are ViTrox, Mi Technovation, and MSC.

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