Malaysia Reopens Langkawi Islands For Domestic Tourists

Spot USD/MYR has slipped after the greenback's slide seen yesterday. The rate has shed 60 pips and last changes hands at MYR4.1525. A fall through Sep 1 low of MYR4.1435 would bring Jun 25 low of MYR4.1423 into view. On the flip side, a rally above the 100-DMA at MYR4.1625 would turn focus to the 50-DMA at MYR4.2006.

• PM Ismail Sabri informed that the government is planning to reopen the Langkawi Islands in Kedah to domestic tourists from Sep 16 in a bid to revive the tourism sector. Other tourist spots may be reopened once the vaccination rate in a given locality reaches 80%.
• The Premier noted that the Covid-10 reproduction rate (R0) is below 1.0 "for the first time in several months," adding that the revamped Covid-19 task force will include members of the opposition.
• FinMin Zafrul told the Straits Times that investors have shown positive reaction to the formation of PM Ismail Sabri's Cabinet and its inclusive approach. Zafrul also said that Malaysia cannot affort a cut to the corporate tax until the tax base is broadened and economic growth picks up. Malaysia's corporate tax rate is among the highest in the ASEAN.
• Looking ahead, Bank Negara Malaysia will announce their next monetary policy decision on Sep 9.