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Malaysian Lawmakers To Hold Crucial Budget Vote


Spot USD/MYR has crept higher this morning, last sits +83 pips at MYR4.0642, after climbing into the close of Monday's onshore MYR trade. The pair trades through yesterday's best levels as we type.

  • Two ex-PMs/lawmakers Mahathir Mohamad & Razaleigh Hamzah said that they have established cooperation ahead of today's crucial vote on the 2021 budget. They expressed willingness to contribute their expertise to developing the country, if the budget fails in the final committee vote, but did not explicitly say they would be seeking to form a new parliamentary majority. The joint presser with the two former political rivals has stoked speculation that they might try and challenge PM Muhyiddin's control over the legislature.
  • Razaleigh's remark that PM Muhyiddin's gov't is "illegitimate" provided another sign of fragility of the ruling coalition. Razaleigh is currently an MP from the UMNO party, supporting Muhyiddin's Cabinet. It is estimated that the PM commands only a single-digit majority in parliament if any and today's vote on the budget will be another occasion to probe lawmakers' approval for his gov't.
  • Bulls look to take out Dec 7 high of MYR4.0885 before targeting round figure/Nov 19 high of MYR4.1000/03. On the downside, focus falls on the lower 2.0% Bollinger band at MYR4.0481, followed by yesterday's cycle low of MYR4.0445.
  • There is nothing of note left on the local data docket this week.

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