Malaysia Unveils Economic Relief Package As Lockdown Continues

Spot USD/MYR retreated Monday, even as Malaysia extended its lockdown until the daily number of infections falls below 4,000. Officials also unveiled new support measures after hours, but the ringgit was unfazed as trading resumed in Kuala Lumpur this morning.

• PM Muhyiddin announced a MYR150bn economic assistance package, which includes MYR10bn to be disbursed in direct cash aid by the end of the year. The gov't has also unveiled a six-month debt moratorium for all borrowers regardless of income group. PM Muhyiddin added that companies whose workers have been fully vaccinated against Covid-19 might be allowed to resume operations.
• Malaysia's trade surplus unexpectedly shrank to MYR13.74bn in May from MYR20.36bn recorded in Apr, as exports growth printed at +47.3% Y/Y, missing sell-side forecast of +57.5%.
• Later this week, Malaysian Markit M'fing PMI comes out on Thursday.
• Spot USD/MYR last changes hands +5 pips at MYR4.1475, with bears looking for a slide through Jun 25 low of MYR4.1423, towards the 50-DMA at MYR4.1263. Bulls need a clearance of Jun 24 high of MYR4.1710, before targeting Nov 4, 2020 high of MYR4.1745.