Key terms, in plain language.

Advance estimate

An early estimate of GDP published before all data are available; it is revised in the full release. Insight 02

Appraisal valuation

A valuer's estimate of an asset's worth, used when no market price exists. Insight 05

Approved investment

Investment that has received official approval; it may not yet be spent. Insight 08

Breadth

How many companies take part in a rise or fall, rather than how far the index moves. Insight 01

Capitalisation-weighted

Bigger companies count for more in the index, in proportion to their market value. Insight 01

Cash flow

The actual money coming into and going out of a business, as distinct from accounting profit. Insight 03

Closed-ended fund

A fund in which investors cannot redeem their money before the fund's term ends. Insight 04

Co-located CIQ

Customs, immigration and quarantine for both countries handled at one point of departure. Insight 08

Collateral

Assets pledged as security in case a loan is not repaid. Insight 03

Covenant

A condition in a loan agreement that acts as an early warning for the lender. Insight 03

Covenant-lite

A loan with few or no regularly tested covenants. Insight 03

Credit spread

The extra interest a borrower pays above the benchmark rate to compensate for credit risk. Insight 04

Currency translation

Converting a return earned in one currency into the investor's home currency. Insight 01

Delayed data

Market prices shown after a time lag, often about 15 minutes, rather than in real time. Market Intelligence

Direct lending

Loans made by a fund directly to a company, rather than arranged through banks or public markets. Insight 04

Diversifier

An asset whose returns tend to differ from those of the rest of a portfolio. Insight 06

Equal-weighted

Every company counts the same, so the result reflects the typical company. Insight 01

Exchange-traded fund (ETF)

A fund listed on a stock exchange. Some ETFs track an index, so their price follows the index without being the index level itself. Market Intelligence

Expected inflation

The inflation rate investors anticipate, as distinct from surprises. Insight 05

FATF Mutual Evaluation

A peer review of a country's anti-money-laundering and counter-terrorist-financing regime. Insight 09

Floating rate

An interest rate that resets periodically in line with a benchmark rate. Insight 04

GDP

The total value of goods and services an economy produces over a period. Insight 02

Gold-backed ETF

An exchange-traded fund that holds physical gold on behalf of investors. Insight 06

Headline and core inflation

Headline covers all consumer prices; core removes volatile items such as fuel and fresh food. Insight 02

Ijarah

A leasing structure commonly used in sukuk. Insight 07

Indexation

A contract clause that raises rents or tariffs in line with an inflation measure. Insight 05

Industrial production index (IPI)

A measure of output from manufacturing, mining and electricity, published monthly by DOSM. Insight 02

Interbank rate

The interest rate at which banks lend to one another for short periods, such as overnight or three months. Market Intelligence

Kijang Emas

Malaysia's official gold bullion coin, priced daily by Bank Negara Malaysia. Market Intelligence

KL USD/MYR reference rate

A daily reference rate for the US dollar against the ringgit, published by Bank Negara Malaysia. Market Intelligence

Labuan FSA

The Labuan Financial Services Authority, the jurisdiction's regulator. Insight 09

Labuan IBFC

Malaysia's International Business and Financial Centre on the island of Labuan. Insight 09

LBMA gold price

The benchmark gold price set in London and widely used for contracts and reporting. Insight 06

Level 3 inputs

Valuation inputs that cannot be observed in a market and rely on the valuer's own assumptions (IFRS 13). Insight 03

Market index

A single number tracking the combined value of a group of listed companies, such as the FBM KLCI. Insight 01

Mean reversion

The tendency of a price or ratio to move back towards its long-run average. Insight 06

Middle rate

The midpoint between the buying and selling rates for a currency. Market Intelligence

Nominal effective exchange rate

The ringgit's value against a weighted basket of trading-partner currencies. Insight 02

Overhang

Completed property units that remain unsold for an extended period. Insight 05

Overnight Policy Rate (OPR)

Bank Negara Malaysia's main interest rate, which influences lending and deposit rates. Insight 02

Private fund

A fund not offered to the general public, with limits on investor numbers or minimum investment. Insight 09

Purification

Giving away the portion of income derived from non-permitted sources. Insight 07

Real asset

A physical asset such as property, infrastructure or farmland. Insight 05

Real interest rate

An interest rate after subtracting inflation; a key influence on gold's appeal. Insight 06

Real policy rate

The policy interest rate minus inflation: a simple gauge of how tight borrowing conditions are. Insight 02

Realised investment

Investment that has actually been spent on assets and operations. Insight 08

Refinancing

Replacing an existing loan with a new one, often when the old one falls due. Insight 03

Riba

Interest or usury, which Shariah principles prohibit. Insight 07

Sensitivity analysis

Testing how a result changes when key assumptions, such as interest rates or sales, move. Insight 03

Shariah Advisory Council (SAC)

The SC body that rules on Shariah matters for Malaysia's capital market. Insight 07

Special economic zone

A defined area with its own incentives and rules designed to attract investment. Insight 08

Substance requirements

Minimum levels of staff and spending in Labuan needed to qualify for Labuan tax treatment. Insight 09

Sukuk

Islamic certificates giving holders an interest in underlying assets or ventures and the returns they generate. Insight 07

Valuation multiple (P/E)

The price investors pay for each ringgit of a company's earnings. Insight 01

VIX

An index of expected volatility in US shares, widely used as a gauge of global investor anxiety. Insight 02

Definitions are simplified for general readers. See also: Editorial policy