Once unthinkable, zero and negative interest rates have been the mainstay of monetary policy, particularly since the subprime crisis of 2007/08. Never mind that it was the low interest rates that led to the housing bubble and crisis in the first place. More than reducing the cost of debt, repressed interest rates being a deliberate distortion gave rise to perverse incentives. Very conveniently, ultra-low interest rates were blamed on a global savings glut, emanating largely from the exporters of East Asia. Central banks use printed money to buy debt instruments, thereby pumping money into the system.

Monetary financing rubbishedBut financial interests claim this enables central banks to finance government deficits, that is, monetary financing. Monetary financing undermines central bank independence — hence, the strict segregation of monetary from fiscal authorities — supposedly needed to prevent runaway inflation. Recent International Monetary Fund (IMF) research insists monetary financing “involves considerable risks”. But it acknowledges that monetary financing to cope with the pandemic did not jeopardise price stability. A Bank of International Settlements paper also found that monetary financing enabled developing countries to respond counter-cyclically to the pandemic.

KUALA LUMPUR (Nov 9): Engineering and energy solutions provider Kejuruteraan Asastera Bhd (KAB) is expanding its sustainable energy solutions (SES) segment through the proposed acquisition of the entire equity of Future Biomass Gasification Sdn Bhd (FBG) for RM15 million. In a Bursa Malaysia filing on Wednesday (Nov 9), KAB said FBG, a wholly owned subsidiary of Future NRG Sdn Bhd (FNSB), owns a biogas power plant in Kedah with an installed capacity of 2.4 megawatt. KAB said it would benefit from long-term recurring income via FBG’s existing renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB). “The plant would also contribute to building a stable stream of long-term income for the group,” said Lai. At the midday break on Wednesday, KAB dipped 2.08% or one sen to 47 sen with 13.74 million shares done.

KUALA LUMPUR (Nov 9): UEM Edgenta Bhd is selling its 51% stake in Faber Sindoori Management Services Pte Ltd for 700 million rupees (RM40 million) in cash to Apollo Sindoori Hotels Ltd (ASHL). According to UEM Edgenta, Faber Sindoori is mainly involved in the provision of integrated facilities management services in India. "The proposed disposal provides an opportunity for UEM Edgenta to monetise its investment from the promising business collaboration with Apollo Group in Faber Sindoori, achieving an internal rate of return of more than 20%. "Proceeds from the proposed disposal will allow UEM Edgenta to reinvest and allocate more resources to accelerate its international expansion strategy as it is moving towards realising the company’s Edgenta of The Future 2025 vision," it said. At the noon break, UEM Edgenta shed one sen or 0.92% to RM1.08, with a market capitalisation of RM898.15 million.

Being so close to China and increasingly integrated into its economy, Southeast Asia cannot avoid being impacted. It was quite telling that the work report Xi submitted excised the phrase used in every party work report since 2002, that China was in a “period of strategic opportunity”. • Fourth, we are likely to see a revamp of signature policies Xi used to raise China’s profile in the world. Second, a new approach in economic policy is also needed. We need to find niches of demand in China where China will still need value-added stuff produced in the region.

KUALA LUMPUR (Nov 8): Malaysia’s industrial production index (IPI) grew 10.8% year-on-year (y-o-y) in September 2022, driven by the increase in the mining and manufacturing sectors. The mining sector rose 15% y-o-y in September, followed by manufacturing (10.4%) and electricity (4.1%), according to the Department of Statistics Malaysia (DOSM). The increase in the manufacturing sector was driven by both domestic-oriented (11.2%) and export-oriented industries (10.1%). The performance of the manufacturing sector was also in line with the encouraging growth of exports,” it noted. For the third quarter of 2022, the IPI climbed 12.2% compared to the same period of the previous year, thanks to growth in the manufacturing index (13.4%), electricity index (9%) and mining index (8.6%), the department said.

Since the termination of his position in July 2021, Jaya Sudhir has not been engaged or employed by MySJ Sdn Bhd or in any way connected with the operations or management of MySJ Sdn Bhd. "Jaya Sudhir has never been a shareholder of MySJ Sdn Bhd," the statement said. Also, all matters between P2 Asset Management Sdn Bhd and the other shareholders of MySJ have been resolved with the pending legal proceedings withdrawn. P2 Asset Management entered the fray, by inking a share sale agreement with Revolusi Asia on Dec 31, 2020. However, P2 Asset Management claimed that Entomo needed money and it paid RM12.2 million as of July 19, 2021.

KUALA LUMPUR (Nov 7): Telekosang Hydro in Sabah, which reached its initial operation day (IOD) on Saturday (Nov 5), is set to be one of Malaysia’s largest run-of-river hydropower plants, generating an estimated 245,000 MWh of electricity annually. Announcing this in a joint statement with Telekosang Hydro One Sdn Bhd, Jentayu Sustainables Bhd said the IOD paves the way for Jentayu to conclude its acquisition of Telekosang Hydro, in line with the group’s aspiration to be a major green energy player in the country. “As a group, we will continue to advocate sustainability as the pulse of our business and in all our undertakings — including preservation and rehabilitation efforts. “We are finalising terms and conditions for Sabah Forestry Department to lead our restoration and reforestation exercise to ensure preservation of biodiversity surrounding the area of Telekosang Hydro,” he said. Jentayu’s share price finished 0.81% or half a sen lower at 61.5 sen on Monday, bringing the group a market capitalisation of RM217.2 million.

KUALA LUMPUR: The Health Ministry says it has never certified any product or food that can replace proper medication. In a Facebook post on Sunday (Nov 6) it said this included the use of insulin to treat diabetes and control blood sugar as recently claimed by a portal. The ministry said the claim was irresponsible and that the picture used was a modified picture from its website (http://myhealth.gov.my) aimed at misleading consumers. "The ministry calls on the public not to be deceived and influenced by statements and portals whose claims are unverified," read the post.

KUALA TERENGGANU (Nov 6): Determined to serve as a representative of the people, Alias Ismail, 54, quit his job as a language specialist officer to contest in the 15th General Election (GE15). The Pakatan Harapan (PH) candidate for the Hulu Terengganu Parliamentary seat opted for optional retirement leaving the post he had held for almost nine years at the Hulu Terengganu Education Office. Alias when met, admitted that his challenge begins today as it would not be easy to win votes for the parliamentary seat which has been UMNO's stronghold. In addition, the PKR Terengganu information chief said it would be quite a monumental task for him because Rosol and Rozi were known to be influential and have their loyal supporters in the area. Despite this setback, Alias said he was still willing to sacrifice his career as a civil servant to achieve his goal of serving the people of Hulu Terengganu.

It is in such a tense world that Malaysia is set to determine her destiny and her place in a rapidly changing world. In such a moment it is imperative that the implications of global, economic and political processes for South-East Asia in general and Malaysia in particular are examined, assessed and responded to. After nearly two decades, Malaysia has returned to its previous place at the high table of electronics exports. In 2004, 4.2% of world electronics exports originated from Malaysia, but following a dip thereafter, Malaysia once again accounts for more than 4% of the world’s electronics exports. When Malaysia opened up to ideas, immigration and capital; when Malaysia chose merit and equality; when Malaysia tolerated not impunity and corruption and, most of all, when Malaysia united behind a common purpose for all Malaysians, opportunity swiftly translated into prosperity.

The most well-known electric vehicle (EV) stock in the world has to be Tesla Inc. He worries that due to intense competition, Tesla could simply become just another albeit established EV company, among many other EV firms. No doubt, all this EV euphoria might be influencing some investors and companies to jump on the EV bandwagon. In Malaysia, a number of listed companies have announced their EV plans. Nevertheless, Yong notes that many EV startups have yet to be profitable and will likely face stiff competition when established automakers increase their EV production volumes.

BUTTERWORTH: Market-goers were caught by surprise when they came across a fallen crane near the Chai Leng Park market. The bucket crane, which was used to hoist Pakatan Harapan flags, toppled and crashed onto the ground. Seberang Prai city councillor P. David Marshel, who is Batu Kawan DAP’s campaign director, denied any involvement of the party in the crane incident. “Even the flags used do not belong to us,” he said. During the 14th General Election in 2018, party supporters erected a “mini tank” at the same place.

KOTA BARU (Nov 5): Barisan Nasional (BN) candidate for the Ketereh parliamentary seat Marzuani Ardila Ariffin said that incumbent Tan Sri Annuar Musa had promised not to leave her side during the campaigning period for the 15th general election (GE15). Marzuani Ardila said Annuar had always supported her, along with the party machinery. “Annuar has promised me that he will not leave my side, because he wants to ensure that the parliamentary seat remains under BN. “Insya-Allah, I have my own strategy throughout the campaigning period,” she told reporters after the nomination process for the Ketereh parliamentary constituency here on Saturday (Nov 5). In the GE14, Annuar won the Ketereh seat with a majority of 4,626 votes, defeating his challengers from PAS and PKR.

KUALA LUMPUR: The Malaysian stock market surged yesterday, closing at an intraday high amid a buoyant regional performance, driven by hopes that China will soon relax its strict Covid-19 restrictions, dealers say. On the broader market, gainers led decliners 588 to 269, while 391 counters were unchanged, 1,078 untraded, and 19 others suspended. Turnover was slightly lower at 2.39 billion units valued at RM1.72bil versus 2.63 billion units worth RM1.89bil on Thursday. Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the FBM KLCI staged a quick rebound yesterday with more than two-thirds of the key index components closing in the green. “The positive move was largely in line with gains across regional markets that were driven by optimism that China may relax its strict Covid-19 measures,” he told Bernama.