Malaysians Urged To Stay At Home

Spot USD/MYR trades flat at MYR4.1250 as we type, after falling onto its 50-DMA on Tuesday. A break below that moving average, intersecting at MYR4.1225, would open up the 200-DMA at MYR4.1121. Conversely, a jump above May 17 high of MYR4.1372 would give bulls a green light for targeting Apr 9 high of MYR4.1454.

• FinMin Zafrul insisted that there is no need to return to MCO 1.0, i.e. strict lockdown imposed at the beginning of the local Covid-19 outbreak, as targeted measures employed this year allowed to reduce infections at a lower economic cost. Zafrul estimated that shutting down the economy would lead to the loss of 1mn jobs and affect the incomes of 2.8mn people in the informal sector.
• Malaysia's vaccine czar Khairy said that the federal gov't has allowed states to procure their own supply of covid-19 vaccines, which received the approval of national regulator. Separately, Director-General of Health Noor Hisham urged citizens to "not leave home unless it is for an important matter."
• The gov't also said that it will instruct police officers to be more thorough in reviewing application for inter-state & inter-district travel permissions. Elsewhere, Sabah Covid-19 Minister said that rules for those willing to enter the state will be tightened from May 20.
• Meanwhile, buoyant palm oil prices may help cushion some of the Covid-related hit to the ringgit. Futures surged in Kuala Lumpur Tuesday, nearing all-time highs.
• Bank Negara Malaysia will release foreign reserves data on Friday.