World

Malaysia's consumer sector is expected to remain robust, supported by strong domestic demand and supply chain enhancements. Despite challenges like inflation and potential recession concerns, businesses adapting to customer needs are likely to capture market opportunities. Hong Leong Investment Bank Research maintains a neutral outlook on the sector.

The European Union and its member states are mobilizing €10 billion to support infrastructure investments in ASEAN countries. The initiative, marking 45 years of cooperation, will focus on green transition, energy, transportation, digitalization, and sustainable economic development in South-East Asia.

The European Union has agreed on a fresh round of sanctions against Russia, aimed at intensifying economic pressure over the ongoing conflict in Ukraine. The package was finalized after extensive discussions among EU ambassadors in Brussels.

IBM is partnering with Rapidus, a new Japanese government-backed chipmaker, to develop cutting-edge semiconductor technology. This collaboration comes amidst tight US-China relations and global efforts to secure advanced chip production capabilities, with Japan investing significantly to regain its competitive edge in the semiconductor industry.

Bursa Malaysia Bhd announced 21 new additions to the FTSE4Good Bursa Malaysia (F4GBM) Index, increasing total constituents to 98. The index, which launched in 2014, tracks publicly traded companies demonstrating strong environmental, social, and governance (ESG) principles, reflecting continued growth in sustainable investing.

[SEMI predicts record semiconductor equipment sales of US$108.5 billion in 2022, representing a 5.9% increase from 2021. Front-end and back-end categories expected to drive growth in 2024 and 2026, though market anticipated to decline to US$91.2 billion next year.]

JPMorgan CEO Jamie Dimon warns of potential mild to hard recession as pandemic savings dwindle and consumer purchasing power decreases. Federal Reserve's interest rate strategy may influence economic trajectory in the coming months.

The European Union recommends travel bans and asset freezes on over 200 Russian politicians and military officers. The European Commission's proposals target political parties, regional governors, and government ministers involved in actions against Ukraine.

Asian markets showed mixed performance, with Hong Kong's Hang Seng Index surging over 2% and China's stocks rising slightly. Despite worries about global economic slowdown and Fed rate hikes, the MSCI Asia-Pacific index edged up 0.19%. Australia's ASX 200 fell 0.67%, while Japan's Nikkei approached a one-month low.

The Institute of Chartered Accountants in England and Wales (ICAEW) suggests Malaysia will remain economically robust in 2023, despite global challenges. While supply chain disruptions and inflation pose risks, the Malaysian economy is expected to demonstrate significant resilience compared to other Asian nations.