The US China Trade War is an ongoing economic conflict between the world’s two largest economies, China and the United States.It Started when in 2018 ,US President began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are “unfair trade practices”. Among those trade practices and their effects are the growing trade deficit, the theft of intellectual property, and the forced transfer of American technology to China.
And due to which various US organisations are shifting their business base from China, which in turn are benefitting other Asian Economies. With Malaysia benefiting the most as both US and China are looking to make their hold strong in the developing economy.Investors from the United States (US) and China seem to have confidence in Malaysia’s dynamic and robust business environment, which is supported by an open market-oriented economy and the government’s pro-business policies.
Malaysia’s trade with China eased by 1.2% year-on-year to RM203.73 billion during the January-August period this year.Exports to China fell by a marginal 0.1% to RM88.96 billion due to lower exports of electrical and electronics (E&E) products, rubber products, crude petroleum, as well as optical and scientific equipment, it said. But still the investment from China is on the rise. China has been Malaysia’s top trading partner for the past 10 years. Total bilateral trade last year stood at US$108.6bil (RM445bil), according to Chinese data that captured trade via Singapore and Hong Kong.
On the other hand, Investments into Malaysia from the United States was always on the rise, and with many U.S. and Chinese companies alike are looking at moving some of their manufacturing units out of China to escape the trade war after effects, it may rise even more. the country had approved a total of US$5.62bil (RM23.6bil) worth of investments from the US in the first half of the year compared to US$113mil in the previous year. A survey by the American Malaysian Chamber of Commerce (Amcham) on American electrical and electronics (E&E) companies based in Malaysia found that 76% of the companies intend to invest further in the country over the next five years.
Keeping the above matters in focus, can expect the Malaysian economy to grow in the long term view, and with that various segments of the the economy will grow, but some segments will be affected more prominently than others. And with that the best klse stocks from those segments as well.
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The healthcare industry of Singapore is expected to grow rapidly as the demand will be highly driven by medical tourism in Singapore and the ageing factor of the population. Globally, the country has one of the best healthcare infrastructures in the world.And by 2030, the expenditure of the healthcare industry is expected to triple, from $17 billion in 2013 to $44 billion. A clear sign that the total healthcare expenditure will go up 64% and the potential growth implies in the private healthcare. It is expected that the total health care spending will grow on an average 3,000 USD per capita.
The Singaporean government is highly focused on taking initiative in the healthcare sector to provide better facilities to the patient suffering from chronic diseases and towards the geriatric population to provide care. By 2022, more public hospitals are expected to start that will be driven by organic expansion.Singapore is a leading country in biomedical sciences manufacturing and R&D activities.
Singaporean government target to attract sector wise investment by focusing on government initiatives and friendly policies, permitting public-private partnership, making Singapore an easy preferred manufacturing base.Singapore’s vision is clear of becoming a Smart Nation, so the strategies are. The country is focusing on its strong and capable presence in IT sectors and Infocomm to work with the healthcare industry, to transform their competencies into applications within healthcare.
Keeping that in perspective. the stocks from this segment are expected to have a good demand going ahead and can give good returns in long term, to know more on the Stocks Of Healthcare system keep reading..
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With the trade war between the world’s biggest two economies not giving any signs of stopping, Many US companies are in a need step outside China to escape retaliatory tariffs, and which is the major factor in Penang’s resurgence after what a fund manager described as “a decade of sleepiness”. Penang is just one of the areas across Asia competing for supply chains seeking a new location and lower tariffs. The other factor going for Penang is that many semiconductors and other electronics products from Malaysia do not attract US tariffs, unlike the 25% rate for China.
Also, Foreign direct investments into Penang leaped 11 fold to about US$2bil (RM8.39bil) in the first half of this year – much more than it has attracted in any other full year. In its federal budget for next year, Malaysia said it would provide tax incentives to further promote high value-added activities in its E&E industry. Malaysia’s January-August E&E exports rose 0.7% on the year to RM247.6bil, while total exports slipped 0.4% to RM650.8bil. Electronics exports from other countries such as South Korea and Singapore have plunged in recent months.
US companies such as chipmaker Micron Technology and iPhone supplier Jabil Inc are building factories in Penang. The state is urgently freeing up more land, including through reclamation, to make space for new plants. Penang shot to the limelight in 1972 when Intel built its first international manufacturing plant there. Intel was followed by many other big US names such as Broadcom, Dell and Motorola.
So going ahead, the Malaysia IT firms are a good bet to go on. So to know the those Malaysian IT stocks in more details, which are expected to show positive developments, and to know more such KLSE daily stocks and tips, please visit