Malaysia To Update GDP Forecast In Aug, Pressure Mounts On Gov't To Reopen Parliament

Spot USD/MYR has recouped its opening loss and last trades at MYR4.1525, just above neutral levels. Further gains past Jun 24 high of MYR4.1710 would bode well for the bullish case, while bears look for a retreat under the 50-DMA, which kicks in at MYR4.1269.

• FinMin Zafrul announced that Malaysia will release its updated GDP forecast for 2021 in mid-August, alongside GDP data for the second quarter. The off'l warned that the current growth target of +6.0%-7.5% may have to be revised lower, owing to the extension of nationwide lockdown. According to the FinMin, the economic relief package announced earlier this week is expected to boost GDP growth by 2pp via multiplier effects.
• Zafrul also noted that banks will refrain from imposing late payment penalties or compounded interest on applicants for a loan moratorium.
• Malaysia's Yang di-Pertuan Agong ramped up pressure on PM Muhyiddin to reopen parliament as soon as possible. The monarch voiced this view publicly for the second time, after granting audiences to leaders of both houses of parliament. Local analysts have flagged that the King's departure from the convention of advising the gov't privately is testament to the political gravity of the matter.
• Looking ahead, Malaysia's Markit M'fing PMI will be published on Thursday.