Zafrul Endorses BNM GDP Outlook, Defends Decision To Tap National Trust Fund For Jab Purchases

Spot USD/MYR re-opened a touch higher and last changes hands at MYR4.1007, 30 pips better off. This has allowed the pair to tick away from a fresh multi-week low printed yesterday.

• Opposition leader Anwar speculated that the Perikatan Nasional gov't intends to extend the state of emergency for "as long as possible, even if doing so requires the level of Covid-19 infections to remain high."
• FinMin Zafrul defended the gov't's decision to use the National Trust Fund for purchasing Covid-19 vaccines and covering related expenditures, noting that "we are not using the (funds) capital but money generated from it. So it is fully justified."
• Zafrul added that Malaysia is in the "fifth stage" of its economic recovery and endorsed the central bank's 2021 growth forecast of +6.0-7.5% Y/Y.
• Malaysian trade balance hits the wires this Wednesday. Per BBG survey of analysts, trade surplus is expected to widen to MYR18.20bn from MYR17.90bn, amid firmer imports and exports.
• Renewed losses past yesterday's trough at MYR4.0975 would please bears, drawing their attention to the 100-DMA at MYR4.0762. Bulls need a jump above Apr 21 high of MYR4.1225 before targeting Apr 16 high of MYR4.1318.