Money & Finance

Senate Democrats are exploring a new tax on stock buybacks to help finance their $3.5 trillion spending bill. This comes as they seek alternative revenue sources amid challenges to raising taxes on wealthy individuals and corporations. The proposal is part of ongoing budget negotiations and political positioning for the upcoming midterm elections.

Toyota and Honda have spoken out against a proposed tax incentive plan by House Democrats that would provide an additional $4,500 tax break for union-made electric vehicles. The automakers argue the bill discriminates against workers who choose not to unionize, potentially benefiting Detroit's Big Three automakers with union-represented plants.

In a significant diplomatic breakthrough, President Biden spoke with Chinese President Xi Jinping seven months after taking office, signaling a potential shift in the strained US-China relations that intensified during the Trump administration's trade war.

Wall Street and European stocks experience significant drops amid worries about economic recovery pace. Dow Jones falls 0.2%, S&P 500 loses 0.13%, and Nasdaq drops 0.57% as markets assess recent US job data and potential central bank responses.

Moody's reports global Sukuk issuance expected to remain flat in 2023 after five consecutive years of growth. While Gulf region shows reduced financing needs, Southeast Asian markets like Malaysia and Indonesia continue to drive issuance, with corporate sector activity partially offsetting government reductions.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Azizi highlights the need for innovative economic strategies, focusing on unique business models and quick adaptation to overcome pandemic-induced challenges in Malaysia's economic landscape.

Malaysia is working to resolve semiconductor order backlogs accumulated during COVID-19 lockdowns. Global supply chain challenges, including factory disruptions in Japan, the US, and Taiwan, along with incidents like the Suez Canal blockage, have complicated semiconductor component production and delivery.

China has announced a $31 million humanitarian aid package for Afghanistan, focusing on economic revival, COVID-19 mitigation, and addressing malnutrition. The aid was proposed by Foreign Minister Wang Yi during a regional diplomatic meeting with neighboring countries.

The Malaysian stock market experienced volatility in 2021, with initial optimism followed by challenges from the Delta variant. Recently, foreign investors injected nearly RM1 billion, helping the FBM KLCI index recover approximately half its previous losses and signaling a potential market turnaround.

Malaysia's Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz plans to propose raising the statutory debt limit to 65% of GDP. Currently at 58%, the government aims to provide financial support for people and businesses, with the proposal set to be presented to the cabinet next week.