Malaysia Logs Record Number Of Cases, But Vaccination Drive Gathers Pace

Spot USD/MYR has faltered, digesting overnight market moves in reaction to the latest FOMC MonPol decision and the subsequent presser with Fed Chair Powell. The rate last sits -70 pips at MYR4.2273, with bears looking for further losses past Jul 22 low of MYR4.2215, before targeting Jul 15 low of MYR4.1955. Meanwhile, a jump above MYR4.2360, where the rate peaked yesterday, would bring Jul 21 high of MYR4.2440 into view.

• FinMin Zafrul suggested that the gov't looks into ditching daily Covid-19 cases as a key metric for easing restrictions and replacing it with ICU capacity or death rates. Malaysia's case count surged by a record 17,405 on Wednesday, but 98% of cases showed light or no symptoms, according to data from the Health Ministry.
• Zafrul also brushed away speculation that factories are the main hotspot of new infections, noting that closing them would have little effect on new infections, but would massively affect workers and disrupt supply chains.
• Vaccine czar Khairy said that the goal of inoculating 80% of residents is well ahead of schedule and noted that "Malaysia is now one of the countries in the world that has the fastest vaccination rate per capita". Opposition lawmakers were unimpressed, with some criticising alleged equipment shortages in some vaccination centres. Meanwhile, the Ministry of Trade and Consumer Affairs said it is finalising plans to make vaccinations mandatory for all retail workers.
• Malaysia's June trade report is in the rear view mirror, trade surplus widened more than expected, on the back of above-forecast growth in imports and exports. Malaysian data docket is virtually empty during the remainder of this week.