While the reopening of the Malaysian economy would help save jobs and businesses, the pace of recovery may remain subdued. Hesitation among some state governments is one factor, as firms - big and small alike - contemplate kickstarting their business at a gingerly pace, as well. To help growth, monetary policy accommodation would remain the focus due to fiscal constraints.

As many countries contemplate lifting lockdowns and easing containment measures, the incoming economic data like the April manufacturing purchasing managers index (PMI) remain fairly grim. A re-escalation of US-China bilateral relations may pose a potential headwind for the 2H20 recovery story.

Investors are re-considering the importance of the underlying physical assets within REITs after years of yield-chasing. Our economists posit that Industrial REITs have income streams that are relatively more resilient compared to other REITs in this environment though pockets of stress exist, given the large divergence of property sub-types, which range from business parks to warehouses. 

The COVID-19 pandemic has sparked investments and research into developing a vaccine with certain segments of the healthcare sector expected to benefit from it. With markets likely to stay volatile for the near to medium term, Head of OCBC Investment Research Carmen Lee explains why healthcare stocks should form part of the core holdings in a diversified portfolio.

The broad USD seems hampered in the near term on the back of a sustained risk positive tilt. However, we remain cautious due to the impact of month-end flows for now. Meanwhile, Asian currencies may have strengthened beyond its implied valuations in the near term. Structurally, they probably have not adjusted enough relative to the negative macro hit. Overall, still prefer to be negative on the Asian currencies on the medium term horizon. (Recorded April 29, 2020)

After revisiting the assumptions for a return to normalcy, we found that the hype of reopening the economy could be overblown. Too many questions about antibodies and possible mutations remain unanswered. So what's next? 

The Hong Kong Dollar (HKD) repeatedly touched the strong end of trading band last week and triggered HKMA’s intervention for the first time since 2015. Will HKD continue to strengthen and trigger more intervention? Will this guide the local rates lower and render some support to the damaged economy? 

The Government has launched relief measures to help S-REITs such as extending deadlines for distribution of taxable income and raising the leverage limit and deferment of new regulatory requirements. While these are expected to help alleviate some pressure the sector is facing from the pandemic, Head of OCBC Investment Research Carmen Lee feels that investors should look towards government-linked REITs for the long term.

Will the additional $3.8b of extended support offset the economic pain of another month of circuit breaker? Will 2Q20 recession be deeper? Will we see a bounce back in 2H20? (Recorded April 22, 2020) 

MAS announced last Friday that it is raising the aggregate leverage limit for S-REITs to 50% from 45% with immediate effect. IRAS too is giving the S-REITs more time to distribute at least 90% of their FY2020 taxable income to unitholders. Tenants of S-REITs too are receiving support. What does this mean to S-REITs? Are these credit positive? (Recorded April 21, 2020)