Malaysia makes the difficult choice of accepting the stricter MCO 3.5 vs a total lockdown. Bond markets was relatively steady despite the 92bp m/m increase in US core CPI but Huarong’s de-rating remains a persistent cause for concern for the offshore debt markets. Malaysia’s CPO sector is losing price competitiveness as Indonesia’s revamped progressive tax rates are giving palm oil refiners a comparative cost advantage. Will a repeat of 2012 low utilisation and high CPO inventories lead to a 30% collapse in CPO prices?