World

The Malaysian consumer sector is expected to remain robust, driven by strong domestic demand and supply chain enhancements. Despite challenges like inflation and recessionary 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 have announced a €10 billion investment package for ASEAN countries. The Global Gateway initiative aims to support green transition, infrastructure development, and sustainable economic growth across energy, transportation, digital, and education sectors over the next 45 years.

The EU has approved a fresh round of sanctions against Russia, targeting the country's economy and support for the war in Ukraine. The sanctions package was agreed upon by ambassadors of the 27-nation bloc, with plans to finalize it on Friday.

IBM is collaborating with Rapidus, a new Japanese chipmaker backed by the government, to develop cutting-edge semiconductor technology. This partnership comes as Japan seeks to regain its competitive edge in chip production and amid ongoing US-China technological restrictions.

Bursa Malaysia has announced 21 new additions to the FTSE4Good Bursa Malaysia (F4GBM) Index, increasing its total constituents to 98. The index, which tracks companies with strong environmental, social, and governance (ESG) principles, continues its growth since launching in 2014. This expansion provides more options for investors seeking socially responsible investment opportunities.

[SEMI predicts semiconductor manufacturing equipment sales will reach US$108.5 billion in 2022, surpassing the previous record of US$102.5 billion in 2021. The industry expects growth in front-end and back-end categories, though sales are projected to decline to US$91.2 billion next year.]

Major US bank CEOs, including Jamie Dimon from JPMorgan Chase, are preparing for a potential economic downturn in 2023. They cite inflation, reduced consumer purchasing power, and the potential exhaustion of pandemic-era savings as key factors that could trigger a mild to hard recession.

The European Union is considering new sanctions against Russia, focusing on political figures, regional governors, and key players involved in missile attacks. The European Commission recommended travel bans and asset freezes, which must be approved by member states.

Asian stocks showed mixed performance as investors weighed economic slowdown fears and potential Federal Reserve interest rate hikes. The MSCI Asia-Pacific index edged up 0.19%, with Hong Kong's Hang Seng Index surging over 2%. Chinese stocks increased slightly following government COVID-19 policy relaxation, while Australian and Japanese markets experienced declines.

The Institute of Chartered Accountants in England and Wales (ICAEW) predicts a challenging start for Asian economies in 2023, but highlights Malaysia's relative economic strength. Despite global supply chain disruptions and inflation, the country is expected to maintain economic resilience in the face of potential recession.