Malaysia

Malaysia’s central bank extended its policy-rate pause yet again, declining to join a growing group of peers starting their easing cycles as it keeps an eye on inflation, the Wall Street Journal reported. Bank Negara Malaysia on Thursday maintained its overnight policy rate at 3.00%, where it has been at since May last year. “At the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects,” Bank Negara Malaysia said.

Switzerland's federal criminal court on Wednesday convicted two top managers of a Saudi oil company on charges including fraud and money laundering in a vast scam that swiped at least $1.8 billion from a Malaysian state-owned investment fund, the Associated Press reported. PetroSaudi executive Tarek Obaid, a Saudi-Swiss dual national, received a seven-year sentence and British-Swiss associate Patrick Mahony was handed a six-year sentence from the Federal Criminal Court in southern Bellinzona, officials said.

Malaysia is weighing the return of a broad-based consumption tax instead of implementing subsidy cuts for a commonly-used gasoline as the government seeks to bolster its finances, Bloomberg News reported. Prime Minister Anwar Ibrahim’s cabinet has been discussing the viability of bringing back the goods and services tax, the people said, asking not to be identified as the information is private. No decision has been reached given the political sensitivities.

The Malaysian government said that it has surpassed its target by discharging approximately 142,510 bankruptcy cases, exceeding the initial goal of 130,000, following amendments to the Insolvency Act, the Malaysian Reserve reported. Prime Minister Datuk Seri Anwar Ibrahim said the Malaysia Department of Insolvency (MdI) Second Chance Policy aims to discharge 130,000 people declared bankrupt within one year after the enforcement of Act A1695.

Malaysia’s central bank held its benchmark interest rate unchanged again, extending its policy pause to a year as it keeps a watchful eye on growth and inflation, the Wall Street Journal reported. Bank Negara Malaysia kept its overnight policy rate at 3.00% on Thursday. That’s the same level as in May last year, when the bank delivered a surprise rate hike. Bank Negara reiterated that its policy stance remains supportive of the economy and gave an upbeat view of Malaysia’s economic prospects.

Liquidators of companies linked to the 1Malaysia Development Bhd scandal have filed for chapter 15 under the U.S. Bankruptcy Code, as they look to recover assets, Bloomberg News reported. A petition listing 1MDB Energy Holdings Ltd, Platinum Global Luxury Services Ltd, Aabar International Investments PJS Ltd, Blackrock Commodities (Global) Ltd, and Alsen Chance Holdings Ltd - all registered in the British Virgin Islands - was submitted in the Southern District of Florida court, dated Feb. 15.

Malaysia is considering initiating legal proceedings against banks related to the troubled 1MDB state fund, as the government works to recoup assets lost from the multibillion-dollar scandal, Bloomberg News reported. “A number of foreign banks” facilitated fund transfers linked to 1MDB without conducting proper processes “at that material time,” Johari Abdul Ghani, who leads a taskforce to recover 1MDB assets, said in a statement. He did not identify the banks.

Embattled Chinese developer Country Garden (2007.HK) said on Monday its $100-billion project in Malaysia was proceeding as planned and it had sufficient assets, despite concerns about its financial strength amid debt woes, Reuters reported. The comment by China's largest private developer came after it missed two dollar coupon payments this month totaling $22.5 million, fuelling fears that the country's property debt crisis could hamper a broader economic recovery and spill overseas.

Malaysia may pursue lawsuits against Goldman Sachs over the U.S. investment bank's role in the multi-billion dollar corruption scandal at state fund 1MDB, Prime Minister Anwar Ibrahim said in an interview with CNBC, Reuters reported. Goldman settled with Malaysia in 2020 by agreeing to pay $2.5 billion in cash and guaranteeing the return of $1.4 billion in assets to the country in exchange for dropping all criminal charges against the bank. But Anwar, who came to power in late 2022, said earlier this year that Malaysia was re-evaluating the deal as the settlement sum was small.