This article first appeared in The Edge Malaysia Weekly on June 11, 2018 - June 17, 2018

The world will be watching two of the greatest shows this week — the momentous meeting between US President Donald Trump and North Korean leader Kim Jong-un at the Capella Hotel in Singapore on June 12, and the kick-off of the 2018 Fifa World Cup in Moscow on Thursday, just ahead of the Hari Raya celebrations on Friday.

The month-long sporting event — from June 14 to July 15 — is seen as good for consumer spending, especially in Malaysia, where there is a “tax holiday” after the zero-rating of the Goods and Services Tax, pending the re-implementation of an improved Sales and Services Tax from September. (See our “SST versus GST” story in The State of the Nation on Page 12.)

Over in the US, the Federal Open Market Committee (FOMC) is expected to lift interest rates for the seventh time since December 2015 on June 13 (2am Thursday, Kuala Lumpur time). On March 22, Federal Reserve chairman Jerome Powell guided for three hikes this year, after raising rates by 25 basis points.

Other central bank releases this week include China’s latest money supply data, the European Central Bank’s rate decision and press conference on June 14 as well as the Bank of Japan’s rate decision and press conference on June 15.

In Malaysia, the full Cabinet line-up could be announced this week, possibly after the Cabinet meeting, which usually takes place on a Wednesday. Meanwhile, a new central bank governor will only be named after royal consent is received. Tan Sri Muhammad Ibrahim’s resignation was accepted on June 6.

Tun Dr Mahathir Mohamad will be in Tokyo for the 24th International Conference on The Future of Asia on June 11 and 12, his first overseas trip since being sworn in as prime minister on May 10. Last Friday, Mahathir said ministers, deputy ministers and political secretaries will need to declare their assets to the prime minister, who will share this information with bodies responsible for curbing corruption.

The 14th parliament session’s first sitting will begin on July 16, right after the Fifa World Cup ends. Thirteen ministers have been appointed so far and they were sworn in on May 21. The ministries are Women, Family and Community Development; Home Affairs; Finance; Defence; Education; Rural Development; Economic Affairs; Housing and Local Government; Transport; Communications and Multimedia; Human Resources; Agriculture and Agro-based Industry; and Health.

Ongoing investigations into 1Malaysia Development Bhd will also be watched after Mahathir said Malaysia is looking to arrest Low Taek Jho, better known as Jho Low, but it does not have an extradition agreement with the country that he is believed to be in. On June 8, Singapore’s Attorney-General’s Chambers said an Interpol Red Notice was issued in October 2016 for the arrest of Low and Tan Kim Loong for having dealt with illicit funds in Singapore.

Economic releases this week include a series of industrial production, Producer Price Index (PPI), Consumer Price Index (CPI), unemployment, trade balance and retail sales data.

Malaysia will report its industrial production data for April on June 11, the same day as the UK. India will report its data on June 12, followed by the eurozone (June 13), China and Japan (June 14), and the US (June 15).

Meanwhile, PPI numbers are slated for release in China (June 9), Japan (June 11) and the US (June 13). The UK will report its latest trade balance figures on June 11 while the eurozone and India will report their numbers on June 15.

Unemployment data releases are scheduled in Malaysia (for April) and the UK on June 12, Singapore (June 13), and Australia and South Korea (June 14). Also on June 14 is the latest retail sales data from China, the UK and the US.

The CPI data will be out in India and the US (June 12), the UK (June 13) and the eurozone (June 15). The eurozone ZEW (Economic Sentiment) Index will be released on June 12, followed by the Australia Westpac Consumer Confidence Index (June 13) and the University of Michigan consumer sentiment index in the US (June 15).

On the Malaysian corporate front, companies having their respective annual shareholders’ meeting this week include Lien Hoe Corp Bhd, Daya Materials Bhd and Ideal United Bintang International Bhd on Monday; Sumatec Resources Bhd, Mesiniaga Bhd and Sycal Ventures Bhd on Tuesday; Lii Hen Industries Bhd, Pesona Metro Holdings Bhd, Progressive Impact Corp Bhd, Kelington Group Bhd, Mudajaya Group Bhd and Ralco Corp Bhd on Wednesday; and Datasonic Group Bhd on Thursday.

MWE Holdings Bhd is having an extraordinary general meeting (EGM) on Monday. Tan Sri Surin Upatkoon, through Pinjaya Sdn Bhd, is taking MWE private via a proposed selective capital reduction and repayment exercise that will give entitled shareholders RM1.75 cash per share. Independent adviser M&A Securities says the offer is “not fair” (due to a sizeable discount to fair value) but “reasonable” (due to illiquid trading) and recommends that shareholders vote in favour of the special resolution.

On Tuesday, DGB Asia Bhd is having its EGM to pass a proposed one-for-two bonus issue of warrants.

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