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Market Highlights
Market Outlook
Mon, 18 May 2026 07:19 am
Market Outlook - Trump–Xi Summit: Taiwan, AI & Semiconductors: The Fault Lines Remain

• Trump–Xi summit signals tactical stabilisation, not a structural reset.
• Near-term tariff risks eased, supporting short-term market sentiment.
• Core tensions on AI, semiconductors, supply chains, and Taiwan remain unresolved.
• “China+1” and ASEAN supply-chain diversification trends remain intact.
• Malaysia could continue benefiting from semiconductor regionalisation, AI infrastructure, and manufacturing relocation.
• Malaysia-listed technology names such as Frontken, Mi Technovation, and ViTrox could emerge as medium- to long-term beneficiaries of ongoing supply-chain restructuring.
• Maintain FBM KLCI year-end target of 1,787.

Economic Update
Mon, 18 May 2026 07:19 am
Malaysia 1Q26 GDP - Resilience amid rising headwinds

• Malaysia’s GDP held firm at +5.4% YoY in 1Q26 (4Q25: +6.2%), above the advance estimate of +5.3%, supported by a rebound in net exports.
• The current account recorded a surplus of 3.0% of GDP (4Q25: 0.5%), supported by goods and services surpluses. We maintain our current account surplus projection at 1.5% of GDP in 2026.
• We maintain our 2026 GDP growth forecast at +4.7% YoY, with near-term supply disruption risks remaining manageable for now.
• Risks are increasingly tilted to the downside in 2H26, particularly if the Middle East conflict prolongs into 3Q26, with spillovers to Malaysia’s domestic demand.

Economic Update
Wed, 13 May 2026 07:41 am
Malaysia Labour Market - Steady outlook despite headwinds ahead

• The unemployment rate held at 2.9% in March, in line with still-firm domestic activity.

• Resilient domestic demand and sustained global demand for the E&E segment should continue to anchor labour market resilience.

• In the near term, continued frontloading activities should help stabilise business operations and provide some support to overall employment.

• That said, downside risks to employment remain, as prolonged supply disruptions could weigh on businesses, particularly SMEs.

• We expect labour market conditions to remain broadly resilient, with the unemployment rate averaging 3.0% in 2026 (2025: 3.0%).

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Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.941293 3.969002
EUR 4.596428 4.601179
CNY 0.580348 0.580971
HKD 0.503377 0.506936
SGD 3.079022 3.100895
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