Business

In a significant diplomatic development, President Joe Biden spoke directly with Chinese President Xi Jinping seven months after taking office, signaling a potential shift in the strained US-China relations that had escalated during the Trump administration.

World stocks tumble amid worries over economic recovery pace. Wall Street and European markets suffer losses as Delta variant spreads and US job growth slows. Dow drops 0.2%, S&P 500 loses 0.13%, Nasdaq falls 0.57%. Investors assess central bank responses to recent economic data.

Moody's reports global Sukuk issuance expected to remain flat in 2023 after five years of growth. Higher crude prices reduce Gulf governments' financing needs. First-half issuance predicted at US$102 billion, with Malaysia and Indonesia driving sales, while Gulf region sees decline.

Finance Minister Tengku Zafrul emphasizes the need for unorthodox ideas in economic reform, highlighting the importance of innovative business models and quick adaptation in addressing Malaysia's economic challenges during the pandemic era.

Malaysia is working to mitigate semiconductor order backlogs that emerged during the pandemic. Lockdown-induced operational limitations, combined with global incidents like factory disruptions, fires, and the Suez Canal blockage, have significantly impacted the industry's supply chain and production capabilities.

China has offered a $31 million humanitarian aid package to Afghanistan, announced by Foreign Minister Wang Yi during a regional meeting. The aid aims to revive the country's economy, combat the COVID-19 pandemic, and alleviate malnutrition while working with neighboring countries to support Afghanistan's reconstruction.

In early 2021, the stock market showed promising signs with rising commodity prices, but the Delta variant impacted investor sentiment. Recently, foreign investors purchased nearly RM1bil in equities, helping the FBM KLCI recover approximately half of its previous losses and signaling a potential market turnaround.

Malaysian Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz plans to propose increasing the statutory debt limit from 60% to 65% of GDP. Currently at 58%, the government expects the debt ratio to rise above 60% by year-end. The proposal will be presented to the cabinet next week to support economic recovery.

MIDF research indicates the automotive industry's potential rebound following government economic relaxation measures. With plant operations resuming from 16 August and CKD kits well-stocked, the sector aims to regain production lost during the lockdown period, setting the stage for recovery in the coming months.

The National Highway Traffic Safety Administration (NHTSA) is investigating Tesla's Autopilot after identifying 11 crashes involving emergency vehicle scenes since 2018. Approximately 765,000 U.S. Tesla vehicles with Autopilot built since 2014 are part of this safety probe, following a previous inconclusive investigation in 2017.