Business

Toyota and Honda oppose a Democratic House proposal offering a $4,500 tax incentive exclusively for union-made electric vehicles in the United States, arguing the plan unfairly discriminates against non-union auto workers.

In a significant diplomatic move, President Joe Biden spoke directly with Chinese President Xi Jinping seven months after becoming president, raising hopes for potential de-escalation of the long-standing economic and trade tensions between the two nations.

World stocks experienced volatility as investors grew concerned about the pace of economic recovery. Wall Street and European markets declined, with the Dow Jones falling 0.2% and S&P 500 losing 0.13%. Challenges include rising coronavirus infections from the Delta variant and slower US job growth, raising questions about central bank responses.

Moody's reports global Sukuk issuance expected to remain flat in 2023 after five years of growth. Malaysian and Indonesian markets drive 3% increase to US$102 billion in first half, while Gulf Cooperation Council issuance declines by 19%.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Azizi emphasizes the importance of innovative business models and new production techniques to drive economic reform. He notes that addressing entrenched economic challenges requires creative strategies and quick implementation across the Malaysian economy.

Malaysia is working to reduce semiconductor order backlogs caused by COVID-19 lockdowns and global supply chain disruptions. Semiconductor shortages have been impacted by manufacturing limitations in Japan, US, and Taiwan, along with incidents like the Suez Canal blockage, affecting integrated circuit component availability.

China has offered a $31 million humanitarian aid package to Afghanistan, aimed at addressing the country's economic challenges, fighting the COVID-19 pandemic, and alleviating malnutrition. The aid was announced by Chinese Foreign Minister Wang Yi during a regional diplomatic meeting.

The Malaysian stock market experienced volatility in 2021, with initial optimism followed by COVID-19 Delta variant concerns. Despite early setbacks, foreign investors recently injected nearly RM1 billion, helping the FBM KLCI index recover approximately half of its previous losses.

Malaysian Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz plans to propose increasing the statutory debt limit to 65% of GDP. Currently at 58%, the proposed increase aims to provide financial flexibility and support for the nation's economic recovery and business needs.

MIDF research indicates a positive outlook for the automotive industry, with plant reopenings, resumed operations, and well-stocked completely-knocked-down kits promising to help the sector regain production losses from the past two and a half months.