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Market Highlights
Economic Update
Wed, 12 Aug 2026 07:10 am
Malaysia Industrial Production - Wary of headwinds in 2H26      

• The Industrial Production Index (IPI) rose +6.5% YoY in June (May: +8.5%), albeit below market expectations of +7.2%, led by firmer manufacturing output.
• Latest indicators suggest manufacturing momentum should remain firm in July.
• A moderation could become more pronounced towards year-end amid a high base and fading stockpiling support.
• Key risks include elevated production costs and potentially unfavourable US trade policy.
• We have revised our manufacturing growth forecast higher to +6.2% (previously: +4.5%).

Economic Update
Wed, 12 Aug 2026 07:04 am
Malaysia Labour Market - More pronounced headwinds in 2H26

• The unemployment rate held at 3.0% in June despite external headwinds.
• Labour market outlook remains positive, underpinned by continued strength in services and manufacturing employment.
• We remain cognisant of moderating hiring momentum as lingering Middle East tensions add to business uncertainty and operating costs.
• We maintain our unemployment rate forecast of 3.0% in 2026 (2025: 3.0%).

Market Outlook
Mon, 03 Aug 2026 07:19 am
Market Strategy: Negeri Sembilan State Election: GE16 Momentum Accelerates

• BN’s stronger showing in Negeri Sembilan, following its decisive victory in Johor, reinforces our conviction that GE16 is likely to be held in 2H26 as UMNO’s confidence continues to strengthen.
• Turn more cautious on Malaysian equities as rising political uncertainty, regional market volatility and persistent foreign fund outflows are expected to keep sentiment fragile in the near term.
• Revise our FBM KLCI year-end target to 1,770 (from 1,787) after adopting a more conservative technical outlook, while continuing to view election-related weakness as temporary.
• Recommend a Barbell Strategy, favouring a combination of defensive, earnings-resilient companies and structural growth names.

Technical Calls
Stock Research
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EUR 4.719654 4.723326
CNY 0.606355 0.606824
HKD 0.519557 0.523596
SGD 3.183816 3.205474
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