Why business is considered as an economic activity

The trend of Malaysia’s economic recovery is in a better direction, according to the chief statistician. (Photo by Low Yen Yeing/The Edge) - A + A KUALA LUMPUR (June 23): Malaysia’s economic recovery is in a better direction as the performance of the Leading Index (LI) for April 2022 eased to a better negative of 0.5% from a negative 1.4% in March 2022, said the Department of Statistics Malaysia (DOSM). The LI is a predictive tool used to anticipate economic upturns and downturns in an average of four to six months ahead. In a statement, the DOSM said the decrease in the LI was influenced mainly by a drop in the number of housing units approved caused by a decline in applications from developers during the said month. Based on a month-on-month comparison, LI slipped to a negative 0.5%, dragged by the number of housing units approved (-1.4%), the number of new companies registered (-0.5%), and the Bursa Malaysia Industrial Index (-0.3%). "Despite the … [Read more...] about DOSM: Leading Index signifies better economic recovery ahead

KUALA LUMPUR: The Malaysian property and casualty insurance market returned to growth with a solid 3% in 2021 after declining 0.6% in the previous year, said Allianz in its latest Global Insurance Report. In a statement, the insurer said the life segment continued to experience robust growth of 8% as it benefitted from the increased risk awareness in the wake of the Covid-19 crisis. On average, the total market expanded 6.5% in 2021. "For 2022, we expect growth to slightly accelerate to 8.3% (life: 9.1%, p&c: 6.3%). "Over the entire next decade, average growth should reach 6.7% per year (life: 6.9%, p&c: 6.1%). This would be above the pace of the previous decade (4.5%), reflecting the improved growth outlook," said Allianz. Meanwhile, global premiums rose 5.1% in 2021 (life:4.4%; p&c:6.3%), due to strong economic headwinds, rising risk awareness and record-high savings buoyed by booming markets Allianz added that total premium income reached EUR4.2 trillion with … [Read more...] about Malaysian property and casualty insurance segment returned to growth in 2021

- A + A MANILA (June 24): Chicago wheat futures on Friday (June 24) hit their lowest in nearly four months and headed to a second consecutive weekly slump, dragged down by growing concerns over a global economic downturn, while an improved outlook for US crops also added pressure. Ongoing talks over a shipping corridor for Ukrainian grain exports trapped amid a four-month-old war also weighed on prices this week. Corn futures fell, but soybeans edged higher after a four-day slide. Fundamentals The most-active September wheat contract on the Chicago Board of Trade was down 0.8% at US$9.42 (about RM41.50) a bushel as of 0140 GMT after earlier touching its lowest since March 1 at US$9.38-3/4. Most-traded November soybeans rose 0.1% to US$14.16-3/4 a bushel, while most-active December corn lost 0.2% to US$6.54 a bushel. Traders kept an eye on talks over a safe corridor for Ukrainian grain, while Washington has sought to avert repercussions of sanctions on Russian … [Read more...] about US wheat set for second weekly fall as economic worries grow

After long years of delay, Finance Minister Nirmala Sitharaman has announced the setting up of an entity to address the stressed assets of banks. The organization will be set up through an Asset Reconstruction Company (ARC) model, she said in the 2021 Budget Speech. Details of the proposals are still awaited. This institution, what is commonly known as ‘bad bank’, will be a major boost for bad asset resolution in the financial system and has been in discussions for long. Banks can transfer bad assets to this entity at a discount. Experts will then attempt for a resolution through a professional approach, while originating banks can focus on new business. On January 27, Moneycontrol reported that a bad bank is likely to be announced in the Budget. Nearly 8 percent of the total loans have gone bad (overdue more than 90 days) at this stage. What is a bad bank? To be sure, the idea of a bad bank itself is not new. In 2018, the government announced a plan for PSBs called … [Read more...] about Budget 2021: FM announces bad bank, why it is a big step towards addressing Indian banks’ toxic assets worries

Finance Minister Nirmala Sitharaman Market chatter is that Budget 202 1 may offer some roadmap to address the problem of bad loans in the banking system. Nearly 8 percent of the total loans have gone bad (overdue more than 90 days) at this stage. How can banks speed up bad asset resolution? Among options, the most favoured idea is the creation of a bad bank--a long-pending proposal in the Indian banking industry. What is a bad bank? A 'bad bank' is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. Once toxic assets are transferred to this entity, attempts for an early resolution by experts begins while originating banks can focus on their business. Banks can transfer NPAs to a bad bank at a discount. The price discovery can happen at a later stage. To be sure, the idea of a bad bank itself is not new. In 2018, the government announced a plan for PSBs called 'Project Sashakt', which had a five-point plan for bad loan resolution … [Read more...] about Budget 2021: Will ‘bad bank’ take off this time? 5 reasons why the timing could be just right

Selangor government has no more objection against ECRL passing through state’s northern region — Menteri Besar - A + A KUALA LUMPUR (Dec 2): The Selangor government has no objection to the proposed East Coast Rail Link (ECRL) passing through the State’s northern region, according to Menteri Besar Datuk Seri Amirudin Shari. Amirudin said on Thursday (Dec 2) that the State government also has no intention to delay the construction of the East Coast Rail Link (ECRL), which is expected to have a positive impact on the people of the East Coast States and the Klang Valley. He emphasised that the decision by Selangor was made after taking into account discussions and arriving at a consensus with stakeholders involved in the ECRL project which include the Ministry of Transport (MOT), Malaysia Rail Link Sdn Bhd (MRLSB), local authorities as well as Federal and State government agencies. At the ECRL document handover ceremony for Section C (Northern Alignment), Amirudin … [Read more...] about Selangor greenlights ECRL’s original northern alignment

- A + A NEW YORK/BENGALURU (June 23): US stocks indexes were mixed on Thursday, as gains in healthcare and megacap technology stocks offset losses in energy and other economically sensitive sectors amid growing recession fears. Trading has remained volatile after a bruising selloff last week sparked by concerns that aggressive interest rate hikes to tame stubborn inflation could hurt economic growth and corporate profits. As government bond yields fell to two-week lows, rate-sensitive growth and technology stocks gained, with Apple Inc adding 0.8% and Microsoft Corp 0.9%. Sectors considered as safer bets in equities such as healthcare, consumer staples, real estate and utilities gained more than 1%, while energy stocks slid 4.7% as crude prices fell US$1 a barrel. "You're in the bottoming process and you'll get these little bounces," said Aaron Clark, portfolio manager at GW&K Investment Management. The benchmark S&P 500 has struggled to make a headway … [Read more...] about Wall Street struggles for direction on growing recession fears

By Seth Matlins Managing Director, Forbes CMO Network N o matter how you measure marketing influence, no matter the tweaks made to methodology over time, no matter the sea-change across the marketing landscape itself, the chief marketers being “inducted” into this first class of The Forbes CMO Hall of Fame, have been mainstays of The Forbes World’s Most Influential CMOs List since its launch in 2012. We consider this proof positive of their enduring influence on the brands and businesses they help lead, on industry, the marketing community and the attitudes and behaviors of people the world over. Individually and collectively, they have shown us what true (marketing) leadership and impact—in the face of unimaginable and unforeseen change—looks like. Given their influence, given the scope and scale of their achievements over time we thought their perspective on the changes these Chief Marketers have seen (and driven) over the past decade, and the ones they expect to … [Read more...] about Forbes CMO Hall Of Fame Inductees On The Evolution Of Marketing And Marketing Influence

This article first appeared in Forum, The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. The ECRL project became entangled with the 1MDB scandal, amid concerns that loans by Beijing were inflated to bail out the sovereign wealth fund - A + A When Malaysia agreed to participate in the Belt and Road Initiative (BRI) in 2016, a flock of mega­projects involving Chinese investments began to crop up around the country. Among them were two railway projects, the East Coast Rail Link (ECRL) and Gemas-Johor Baru Electrified Double-Tracking Project (G-JB); the Trans Sabah Gas Pipeline, pitched as a solution to Sabah’s power shortage problems; and the Melaka Gateway, a coastal property development expected to generate RM15 billion in revenue upon its completion. These projects — all of which have donned the elusive label of “BRI” throughout their existence — have undergone several shifts across the years. They have been suspended, cancelled, involved in … [Read more...] about Ideas: Monitoring the Belt and Road Initiative

- A + A NEW YORK/BENGALURU (June 24): US stock index futures rose on Friday, as signs of slowing economic growth and falling commodity prices eased expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Fears that aggressive tightening by major central banks will cause a sharp economic downturn have roiled financial markets this month, pushing the benchmark S&P 500 to confirm a bear market or a 20% fall from its recent peak. Data on Thursday showed US business activity slowed considerably in June, driving investors to scale back bets on where interest rates may peak and bring forward their views on the timing of rate cuts. Money markets see US interest rates peaking at around 3.4% by next March, far below the just above 4% priced for June 2023 before last Wednesday's Fed meeting. Copper prices on Friday were set for their biggest weekly fall in a year and other industrial metals also tumbled, while crude oil was headed … [Read more...] about Futures rise as investors scale back rate hike expectations