Money & Finance

Telenor and Axiata Group have gained crucial approval from the Securities Commission Malaysia for merging their local units Celcom Axiata and DiGi.Com. The proposed tie-up aims to create a stronger market leader in the competitive Malaysian telecommunications landscape, with an estimated enterprise value of $15 billion.

Malaysia is unlikely to enter a recession due to its diversified economy, with services contributing 57%, manufacturing 24.3%, and agriculture and mining only 14% of GDP. The country's varied trading partners further enhance its economic resilience.

The Hong Kong Special Administrative Region government celebrated its top ranking in the Fraser Institute's Economic Freedom of the World 2022 Annual Report. The territory maintained its position as the world's freest economy, particularly excelling in international trade freedom and regulatory efficiency.

Malaysia's franchise sector is experiencing rapid growth, with sales expected to increase from RM14.65bil in 2020 to RM22.66bil by 2025. The industry has registered 1,149 franchisers, opened 13,779 outlets in 2021, and created approximately 49,000 jobs, showcasing significant economic potential.

Bank Negara Malaysia's Monetary Policy Committee raised the overnight policy rate (OPR) by 25 basis points to 2.5% on September 8. This marks the third consecutive rate hike in 2022, aligning with economists' expectations and reflecting improving economic growth and inflationary pressures in the country.

Bursa Malaysia closed higher on Wednesday despite market challenges, with the FBM KLCI rising 3.08 points to 1,491.35. The Malaysian ringgit weakened to 4.5028 against the US dollar, marking its lowest point since 1998. Trading volume reached 2.36 billion shares valued at RM1.62 billion.

Sarawak is set to experience significantly improved internet connectivity with the launch of the Batam Sarawak Internet cable system (Basics) and a new data center. Developed by PP Telecommunication Sdn Bhd, these infrastructure upgrades aim to resolve latency issues and expand digital access, particularly in rural areas of the state.

OPEC and allied producers, including Russia, slightly reduced oil output for October, reflecting growing concerns about global demand. The 100,000 barrels per day reduction follows recent price drops from June's $120 per barrel peak, providing relief for consumers while challenging producer revenues.

SK Hynix plans to invest 15 trillion won ($10.9 billion) in a new M15X chip plant in Cheongju, South Korea. Construction begins in October 2023, with completion expected in early 2025. The investment underscores the company's commitment to expanding its semiconductor manufacturing infrastructure.

Malaysia's palm oil inventories surged 14.5% to 2.03 million tonnes in August, the highest in over two years. Production climbed 8% to 1.7 million tonnes, driven by favorable rainfall and soil conditions. Experts predict a production slowdown in September as yields stabilize.