Malaysia Money Matters Daily News Digest 9th May 2025

n today’s episode of Malaysia Money Matters, we break down key moves by Malaysia’s central bank, major corporate wins, and global trade developments shaking markets—from Bank Negara’s surprise liquidity boost to the evolving US AI chip export rules that could reshape Malaysia’s semiconductor future.🇲🇾 Malaysian Company & Market News🔹 Bank Negara Holds OPR, Cuts SRRKeeps OPR steady at 3% for the 12th meeting but surprises markets by slashing the SRR by 100bps to 1%, releasing RM19B into the system to boost liquidity.🔹 M&E Sector Faces Q1 SlowdownHLIB flags softer earnings for mechanical & electrical firms but remains bullish on long-term power infrastructure plays; top picks include MN Holdings and Southern Cable.🔹 Kerjaya Prospek Secures RM162M ContractWins major 47-storey serviced apartment project in Johor Bahru, pushing YTD wins over RM870M and lifting its order book to RM4.6B.🔹 Lotte Chemical Titan’s 10-Year Indonesia DealSigns RM743.5M ethylene supply deal tied to its massive new Indonesian plant set for late 2025—seen as a potential turnaround after eight straight quarterly losses.🔹 Perodua’s Affordable EV LaunchTargets local production of its first electric vehicle by year-end, priced under RM80,000, aiming at younger buyers and families.🔹 Public Bank Raises Dividend TargetLifts payout ratio goal to 60% of net profit for 2025; addresses founder’s family stake sale, pledges stability.🔹 Pavilion REIT, Citaglobal, Petronas Gas, and MorePositive Q1 for Pavilion REIT; Citaglobal eyes telecom and solar in Indonesia; Petronas Gas joins new Labuan power plant JV.🌍 Global Trends & Their Impact on Malaysia🌐 US-China Tariff Tensions EscalateChina demands removal of US tariffs before talks; EU readies €95B in counter-tariffs on US goods; Malaysia seeks tariff relief for aerospace MRO sector.💼 US AI Chip Export Rules RevisitedTrump administration plans to roll back Biden-era AI diffusion restrictions for some nations, lifting Malaysian tech stocks like NationGate; Malaysia welcomes the clarity and eyes new semiconductor growth opportunities.🏦 Bank of England Cuts RatesCites US tariffs’ drag on UK growth as it trims rates to 4.25%; Pimco warns US recession risks are at decade highs.🛢 OPEC Supply Dips, Oil Prices Edge UpUnexpected output drops from Venezuela, Iraq, Libya slightly tighten supply, offering mild price support.🤝 Russia-China Alignment DeepensPutin and Xi reaffirm ties, pushing for a multipolar world order, signaling continued geopolitical realignment.📌 Key Takeaways & Investor Insights✅ BNM’s SRR cut injects liquidity, signaling confidence but caution.✅ Malaysia’s tech sector could benefit if US eases AI chip rules—potential growth catalyst.✅ Perodua’s affordable EV may disrupt the local market, accelerating the shift to electric.✅ Global tariff tensions pose ongoing risks, but Malaysia is proactively negotiating relief.✅ Investors should watch semiconductor policy shifts and global negotiations for near-term market moves.🎧 Listen Now for a deep dive into Malaysia’s financial gems and global trends shaping 2025!🔗 Subscribe & Share the Malaysia Money Matters podcast on Substack, Spotify, or Apple Podcasts.Malaysia Money Matters is a one-person passion project. Subscribe for free or support me as a paid subscriber—it means the world to me! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit mmoneymatters.substack.com