Tensions Between Malaysia's Uneasy Gov't Coalition Partners Simmer

Spot USD/MYR snapped its six-day losing streak Tuesday despite broad-based greenback sales. The rate resumed losses this morning and last deals -87 pips at MYR4.0075, hovering just above yesterday's cycle low of MYR3.9957.

• Losses past MYR3.9957 would confirm that bearish momentum remains intact, opening up the 76.4% retracement of the 2018 -2020 rally at MYR3.9939. Bulls look for a jump above yesterday's peak at MYR4.0173 before taking aim at Dec 28 high of MYR4.0673.
• Malaysian pollster Merdeka Centre released the results of a survey conducted in Dec, which showed that voters want the UMNO party to remain part of PM Muhyiddin's gov't, despite calls within UMNO to abandon the gov't and push for a snap election.
• Fractures within UMNO over its alliance with PM Muhyiddin's Parti Pribumi Bersatu Malaysia have resurfaced as Tan Sri Annuar Musa was sacked as SecGen of Barisan Nasional (a coalition of UMNO, MCA and MIC). Annuar was a key opponend of calls by his successor to pull out from the gov't.
• Elsewhere, Cabinet Min Mustapa told Astro Awani TV that Malaysia expects to pay less than $270mn to Singapore for cancelling the joint high-speed rail project.
• Science, Technology & Innovation Min Khairy Jamaluddin delivered a speech on Malaysia's vaccine procurement Tuesday, noting that the gov't will spend MYR16.6mn on ultra-low temperature freezers, cold boxes and other supplies needed to store the Pfizer jab.
• Malaysia's update on foreign reserves is due Friday, as usual.