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Market Highlights
Economic Update
Thu, 21 May 2026 07:29 am
Malaysia External Trade - Wary of rising risks despite strong headline growth

• Exports surged to +36.9% YoY in April (Mar: +8.4%), while imports accelerated to +20.0% (Mar: +10.4%). The trade surplus widened to RM28.8bn (Mar: RM24.5bn).
• Manufacturing exports (+40.1% YoY; Mar: +9.6%) accounted for the bulk of April’s surge, while commodity exports provided additional support.
• Exports should continue to benefit from sustained E&E demand and firmer commodity prices, although growth may moderate as frontloading activities gradually fade.
• External risks remain elevated, stemming from the prolonged Middle East conflict and persistent uncertainty surrounding US trade policy.
• We revise our 2026 export growth forecast to +8.1% YoY (previously +4.8%), reflecting robust year-to-date growth.

Economic Update
Wed, 20 May 2026 07:23 am
Malaysia Inflation Rate - Inflation contained but risks building up    

• Malaysia’s headline inflation rose to +1.9% YoY in April (Mar: +1.7%), in line with consensus, driven mainly by higher transport costs.
• Core inflation remained steady at +2.0% YoY (Mar: +2.1%), hovering just below its 2021–2025 average of +2.1%, suggesting relatively firm demand conditions.
• A gradual pickup in cost-push pressures is likely, driven by elevated energy prices and the passthrough of higher business input costs to consumers.
• We keep our 2026 inflation forecast at +2.1% YoY, with upside risks stemming from a potential RON95 price adjustment and larger-than-expected cost passthrough.
• A material overshoot in inflation beyond expectations could weigh on consumer spending and broader economic growth.

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.

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