24-07-2018
Focus Malaysia - Fencing off Market Fatigue
We would like to share with you a recent article written by CEO/Executive Director of Kenanga Investors, Ismitz Matthew De Alwis entitled “Fencing off Market Fatigue” which was published in Focus Malaysia this past weekend. He provides his thoughts on the current trade war that is occurring between two of the biggest economies in the world; the US and China. As no economist can foretell how devastating the impact from the ensuing battle royale will be to the global economy, it makes sense to view the duel from three varying degrees, namely, 'big battle,' 'medium battle' and 'small battle. Many economist have noted that Asia would bear the brunt of the trade dispute which is touted as the biggest trade war in history given its economy is deeply embedded in China's supply chains. However, it is not all bad news; Malaysia's economic reform agenda will not be derailed as long as the pricing of Brent crude maintains its current range. In all likelihood, the second half of 2018 could see the restoration of business confidence with the tabling of Budget 2019 in November and the mid-term review of the 11th Malaysian Plan.