Business

Malaysia and Singapore are emerging as key regional centers for green and sustainable finance. The Climate Bonds Initiative, supported by HSBC, reports continued growth in sustainable financial markets. Malaysian securities and Sukuk market currently stands at US$2.6 billion, with 15 green bond and loan arrangements issued.

Luno Malaysia has accumulated approximately US$1 billion in cryptocurrency transactions this year, significantly up from US$300 million in 2020. Country manager Aaron Tang highlights the early stages of crypto adoption, with only 2.5% of the global population owning digital currencies, while noting growing acceptance as an investment and inflation hedge.

AT&S, an Austrian electronics manufacturing leader, is investing 8.5 billion ringgits in a new high-tech facility in Malaysia's Kulim High-Tech Park. The project, announced during a video conference with Prime Minister Muhyiddin Yassin, aims to produce advanced printed circuit boards and integrated circuit substrates while creating thousands of skilled jobs.

As the labour market faces pressure from lockdowns, the unemployment rate is expected to recover in the short term. The Malaysian workforce shows resilience, with manufacturing operating at 60% capacity and companies adapting to strict standard operating procedures during the recovery phase.

The Malaysian government has extended the current interest or deposit income tax exemption for corporate investors of retail money market funds until January 1, 2022. This move is part of the country's fiscal measures to support businesses during the ongoing economic impact of the COVID-19 pandemic.

Malaysia's Ministry of Finance plans to implement cashless payments for all government services by 2022. Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz aims to improve transaction safety, reduce corruption, and enhance service efficiency through digital payment methods.

Despite ongoing pandemic restrictions and record-high COVID-19 cases, Malaysia anticipates improved foreign direct investment this year. Economists suggest that while short-term sentiments may be impacted, the medium-term economic prospects remain promising, with total confirmed cases exceeding 595,000 and 3,096 deaths reported.

The semiconductor chip shortage is disrupting the automotive industry, leading to reduced production and higher prices. Caused by increased demand for electronics during the Covid-19 pandemic and compounded by natural disasters, this shortage is expected to continue through 2022, forcing automakers to develop strategic solutions.

Malaysian oil and gas service group Serba Dinamik is under investigation after auditor KPMG raised concerns about unverified contracts worth 3.5 billion ringgits. Top shareholders are worried, and the company plans to appoint an independent firm to review the contract issues while rejecting the auditor's claims.

The FAO Food Price Index reached its highest point since September 2011 in May, with prices rising 4.8% month-on-month and nearly 40% since last year. Vegetable oils, sugar, grains, and meats contributed to the continuous price increase, signaling potential global food market challenges.