JAKARTA (TheInsiderStories) – Good Morning! Happy Chinese New Year to our readers. A day before lunar year, President of United States (US) Joe Bidden has talked for the first time with President of China, Xi Jin Ping. In the phone call, they discusses various issues such as the coronavirus, Uighur, Hong Kong, and Taiwan.
According to the White House, Biden stressed the need for China to abandon “coercive and unfair” economic practices such as the use of slave labor. While, Xi pushed back, describing Taiwan, Hong Kong and Xinjiang as China’ “internal affairs”. The economic relation between the two countries are set to remain a cardinal factor for world markets.
In addition, Bidden had signed deals to acquire 200 million more COVID-19 vaccine doses as the country look to immunize the vast majority of the population by July. The deals with Pfizer and Moderna increase the total vaccine supply by 50 percent, to 600 million doses in America. Both vaccines currently authorized for emergency use in the US require two shots.
In Indonesia, President Joko Widodo, asserted the enforcement of a large-scale social distancing would be highly detrimental to the economy. He rated, the regional quarantine on a micro-level would be effective to stop the coronavirus transmission without affecting the economic activity of the community.
Furthermore, The Financial Services Authority noted the loan demands would fall if the vaccination program progresses slowly, and the pandemic continues to spread uncontrollably. The growth could be corrected to 5 percent. However, if the economy recovers faster in the first quarter of 2021, the demand could grow by seven to nine percent.
Then, foreign minister, Retno Marsudi, and deputy prime ninister and minister of foreign affairs of Qatar, Sheikh Mohamed bin Abdulrahman al-Thani met on Thursday. During the meeting, they reviewed the bilateral cooperation, especially the economy and employment affairs, in addition to issues of common concern.
In Asia, Malaysia‘ fourth quarter GDP fell by 3.4 percent, bigger than the 2.7 percent drop in the third quarter. Overall GDP in 2020 shrank to 5.6 percent, and became the worst contraction since the 1998 Asian Financial Crisis. The construction, mining and service sectors recorded the biggest decline last year, contracting respectively 19.4%, 10% and 5.5%.
Earlier, The governor of Bank Negara Malaysia (BNM), Nor Shamsiah Mohd Yunus, on said that the labor market was expected to remain weak in the first half of 2021 before improving. The unemployment rate hit by 4.8 percent at the end of 2020 after surpassing 5 percent in mid-year, the highest rate in three decades.
Yesterday, Indonesian Rupiah strengthened 0.07 percent to 13,970 per US Dollar and the Jakarta Composite Index (JCI) rose 0.33 percent to 6,222.52 levels. There are no transactions on the Indonesian financial market today.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia