Malaysia Eases Curbs For Entertainment Sector, Gov't Still Reluctant To Hold Confidence Vote

Spot USD/MYR jumped at the reopen and last changes hands +62 pips at MYR4.1615. Bulls look to a move through the 100-DMA at MYR4.1630, which would shift focus to Aug 30 high of MYR4.1900. Conversely, a fall through Sep 6 low of MYR4.1425 would allow bears to pick up momentum.

• PM Ismail Sabri announced that the entertainment sector will be allowed to reopen tomorrow to fully vaccinated Malaysians, with capacity limits in place. The policy is set to benefit more than 19,000 companies and over one million people in the industry.
• Separately, FinMin Zafrul said that the gov't will look into job and income recovery in Budget 2022.
• Malaysia's de-facto Law Minister Wan Junaidi has backed Attorney General's opinion that the new gov't doesn't need to call a confidence vote, adding that King Sultan Abdullah Ahmad Shah has consented to "not having the confidence motion". His comment drew criticism from some opposition MPs, who said it is mere "hearsay" until the Istana Negra (Royal Palace) issues a decree clarifying its stance.
• Bank Negara Malaysia will release their monetary policy decision tomorrow (our usual preview is forthcoming, virtually all analysts expect them to stand pat), while Malaysia's Department of Statistics will release industrial output data on Friday.