This article first appeared in The Edge Malaysia Weekly on April 16, 2018 - April 22, 2018

NOW that May 9 has been declared a public holiday, only time will tell how the choice of a Wednesday polling day will impact voter turnout for the long-awaited 14th general election (GE14). The highest ever turnout was 84.8% in 2013, which was when the ruling coalition lost the popular vote for the first time, after losing its two-thirds super majority in the 2008 election.

For businesses, the first mid-week polls since independence (in 1995 and 1999, polling was on a Monday) is estimated to cost RM600 million in terms of the foregone daily wage bill for an additional public holiday, Malaysian Employers Federation executive director Datuk Shamsuddin Bardan told The Edge Financial Daily. There is still time, though, for businesses to prepare for it, he added.

On the global scene, talk of the US potentially rejoining the Trans-Pacific Partnership (TPP) a year after President Donald Trump ended negotiations will be keenly followed here, as will the impact of the developing US-China tit-for-tat trade tensions and potential military strikes against Syria.

Oil prices rose to new multi-year highs last week on rising geopolitical risks in the Middle East, despite the Organization of Petroleum Exporting Countries’ recent upgrade of forecasts for production from those outside the cartel. Brent crude closed above US$72 a barrel last Thursday — a level last seen in November 2015.

The ringgit was also hovering near three-year highs at 3.8765 against the greenback at the time of writing. The ringgit breached the old 3.80 peg against the US dollar in July 2015.

The Hong Kong dollar’s strength is also likely to be closely watched. The Hong Kong Monetary Authority stepped in to defend its dollar peg last Thursday after the currency reached its lowest level against the greenback since 2005.

Key economic data releases this week include China’s 1Q gross domestic product release on Tuesday (April 17). China will also release retail sales and industrial production data on the same day. Japan and the US are also scheduled to release industrial production numbers on Tuesday.

Malaysia’s key data releases this week are employment data for February on Monday (April 16) and the Consumer Price Index (CPI) reading for March on Wednesday (April 18). Bank Negara Malaysia will release its mid-April foreign reserves data on Friday (April 20).

The Bank of Canada has a rate decision on Wednesday. CPI data is also scheduled for release in the UK and the eurozone on Wednesday and Canada on Friday. The eurozone will be releasing its latest ZEW Economic Sentiment Index on Tuesday and the consumer sentiment index on Friday.

Eyes will also be on Bank Indonesia, which has a rate decision on Thursday (April 19). Indonesia, which last week saw Moody’s following Fitch Rating in lifting its sovereign rating, will also be releasing its latest exports and trade balance data on Monday.

Singapore will release its latest non-oil domestic exports (NODX) reading on Tuesday while Australia’s latest unemployment data is out on Thursday. Over in the US, the latest retail sales and the Empire State Survey Index will be out on Monday and the US Philadelphia Fed Survey Index on Thursday.

On the Malaysian corporate front, companies having their annual general meeting (AGM) this week include Maxis Bhd and British American Tobacco (M) Bhd on Thursday (April 19) and Malaysia Marine and Heavy Engineering Holdings Bhd (April 17).

Shareholders of four real estate investment trusts are also meeting this week, namely Tower REIT (April 17) as well as Hektar REIT, Al-Salam REIT and Al-‘Aqar Healthcare REIT (April 19). Other companies having their AGMs this week include Integrated Logistics Bhd and PMB Technology Bhd on April 17, Ayer Holdings Bhd (April 18) and Bina Darulaman Bhd (April 19). DBE Gurney Resources Bhd (April 16), DutaLand Bhd (April 19) and VS Industry Bhd (April 20) are among companies having extraordinary general meetings (EGMs). VS Industry is seeking approval for a one-for-four bonus issue.

Loss-making poultry player DBE Gurney is seeking shareholders’ approval to diversify into property development and construction. It also wants approval to undertake a proposed joint development of residential units and shoplots in Taman Desa Harmoni, which it says is accessible via the Lumut-Ipoh highway and has a RM24.5 million gross development value. DBE Gurney’s unit will be entitled to 75% of the development profit that is estimated at RM6.96 million, according to its circular to shareholders. The landowner and joint developer, Misi Jutari Sdn Bhd, will have the remaining 25%.

DutaLand is seeking approval to sell 11,579.31ha of plantation assets in Sabah, for RM750 million to a unit of Boustead Plantations Bhd. DutaLand intends to distribute RM85 million of proceeds to shareholders, and is earmarking RM430 million to fund existing businesses (including the RM2.6 billion Kenny Heights development and RM2.4 billion Duta Grand Hotel in Kuala Lumpur) and RM188 million to acquire new businesses or assets.

The proposal requires at least 75% approval as the sale may result in DutaLand being no longer suitable for continued listing for the lack of a significant level of operations. Based on its audited accounts for the year ended June 30, 2017, however, DutaLand would not be considered an affected issuer. Independent adviser MIDF Amanah Investment Bank Bhd opines that the proposed disposal is “fair and reasonable” and recommends that shareholders “vote in favour” of it.

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