Bank Negara cuts interest rates

Malaysia's central bank surprised markets yesterday by cutting interest rates for the first time in seven years.

Bank Negara Malaysia slashed its key interest rate by 25 basis points to 3 per cent, citing uncertainties in the global environment.

The move is seen as a response to the Malaysian economy struggling with weak exports while facing an uncertain global outlook. The decision to slash borrowing costs follows similar moves by Singapore and Indonesia, as major central banks around the world look to ease monetary policy to kickstart growth.

"Exports are projected to remain weak following more subdued demand from Malaysia's key trading partners," Bank Negara said in a statement.

"While the domestic economy remains on track to expand in 2016 and 2017, the uncertainties in the global environment could weigh on Malaysia's growth prospects," it added.

AGENCE FRANCE-PRESSE

GIC invests in real estate fund

GIC has invested in a real estate fund which acquired the newly-built Hyundai Logistics Distribution Centre in Icheon, South Korea, for US$130 million (S$175 million) from LogisKoel, the asset developer. The real estate fund is managed by ADF Asset Management.

GIC expressed confidence in the potential of South Korea's growing industrial sector and logistics services.