Oil prices recover, driven by supply disruption fear from hurricane

Admin Sep 14, 2024

TOKYO: Oil prices climbed on Wednesday, paring some of the previous day’s losses, as concerns about Hurricane Francine disrupting output in the U.S., the world’s biggest producer, outweighed worries about weak global demand.

Brent crude futures climbed 34 cents, or 0.5%, to $69.53 a barrel by 0430 GMT while U.S. crude futures were at $66.10 a barrel, up 35 cents, or 0.5%.

Both benchmarks fell nearly $3 on Tuesday, with Brent hitting its lowest since December 2021 and WTI falling to a May 2023 trough, after OPEC+ revised down its demand forecast for this year and 2025.

“The market rebounded autonomously as Tuesday’s drop was substantial,” said Yuki Takashima, economist at Nomura Securities, adding supply disruption fears from Francine also lent support.

“Still, downward pressure will likely continue in the near term as investors are worried about a slowdown in demand due to economic slowdown in China and the United States,” he said, adding he had lowered his forecast range for WTI for the rest of the year to $60-$80 from $65-$85 this week.

Francine strengthened into a hurricane in the Gulf of Mexico, the U.S. National Hurricane Center said on Tuesday, prompting Louisiana residents to flee inland and oil and gas companies to shut production.

About 24% of crude production and 26% of natural gas output in the U.S. Gulf of Mexico were offline due to the storm, the U.S. Bureau of Safety and Environmental Enforcement (BSEE) said on Tuesday.

On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for world oil demand to rise by 2.03 million barrels per day (bpd) in 2024, from last month’s forecast for growth of 2.11 million bpd, it said in a monthly report.

OPEC also cut its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd.

But the U.S. Energy Information Administration (EIA) said on Tuesday global oil demand is set to grow to a bigger record this year while output growth will be smaller than prior forecasts.

Oil prices were also supported by a withdrawal in U.S. crude inventories.

U.S. crude oil stocks fell by 2.793 million barrels in the week ended Sept. 6 while gasoline inventories declined by 513,000 barrels, according to market sources citing American Petroleum Institute figures on Tuesday.

Eleven analysts polled by Reuters estimated on average that crude inventories rose by about 1 million barrels and gasoline stocks fell by 0.1 million barrels..

China’s daily crude oil imports rose last month to their highest in a year, customs data and Reuters records showed on Tuesday, but that was still 7% less than a year ago and year-to-date imports are 3% less than the year before period.

That has led Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, to predict the market will remain bearish due to fears about slowing global demand, including China’s. – Reuters

Sime Darby Motors, BYD launch new EV variants

Admin Sep 14, 2024

KUALA LUMPUR: Sime Darby Motors Sdn Bhd has completed the BYD Seal line-up with the unveiling of the BYD Seal Dynamic variant last Friday, following the launches of the BYD Premium and BYD Performance variants of the model earlier in February this year.

The automotive arm of conglomerate Sime Darby Bhd, Sime Darby Motors said the launch of the Seal Dynamic is in tandem with the company’s objective to offer a wider range of options to Malaysian consumers, before reporting that the former two variants had seen over 2,200 registrations as at the end of August.

The BYD Seal Dynamic is priced at RM163,800 per unit, way below the prices of the BYD Premium and BYD Performance at RM179,800 and RM199,800 per vehicle, respectively.

Sime Darby Motors managing director Andrew Basham observed that the BYD Seal has been the best selling electric vehicle (EV) in Malaysia at present, as he emphasised the company is enabling more Malaysians to enjoy a sporty EV at a competitive price, without compromising on design, technology and support.

“As one of the pioneers of EVs in the country, we understand what customers’ needs are especially in terms of after-sales support and we are committed to driving Malaysia’s EV aspirations,” he told reporters at the launch of the BYD Seal Dynamic here recently.

Basham, however, did not reveal a specific sales target for the new variant of the EV.

BYD Malaysia Sdn Bhd managing director Eagle Zhao commented that the launch of the new variant is a step in the direction of the company to make EVs accessible to more Malaysians, adding that the latest launch supports the shift towards a more sustainable, technology-driven mobility in Malaysia.

A purchase of the BYD Seal Dynamic includes a six-year or 150,000km vehicle warranty, as well as an eight-year or 160,000km high-voltage battery warranty.Springing a small surprise, Sime Darby Motors also unveiled the upgraded BYD Atto 3, which is priced at RM149,800 – RM18,000 cheaper than the previous BYD Atto 3 Extended Range launched in December 2022.

Standing as the single variant, the upgraded Atto 3 includes improved specifications including a larger 60.48 kilowatts an hour lithium iron phosphate battery with a worldwide harmonised light vehicle test procedure-rated range of 420km on a single charge, larger 18-inch wheels, a total of eight speakers and a built-in air filter.

Moving forward, Zhao said the company will introduce its sub-brand Denza to the Malaysian market in the first quarter of 2025.

He believes that the new addition will further enhance the company’s presence and offer more options to Malaysians to meet the “huge demand” in the local market.

“We will introduce Denza, which will use BYD technology as well, with EV and plug-in hybrid electric vehicle technology,” he told a press conference at the launch of the BYD Seal Dynamic and the upgraded Atto 3.Zhao said BYD Malaysia is looking forward to upgrading its collaboration with Sime Darby Motors Sdn Bhd beyond the current distribution partnership with the arrival of Denza.

“We are embracing local partners to support us in a lot of fields for our brand introduction into Malaysia,” he said.

Maybank invests in Funding Societies

Admin Sep 14, 2024

PETALING JAYA: Maybank remains committed to driving financial inclusion as it announced a strategic investment in a unified digital platform for micro, small and medium enterprises in Southeast Asia, Funding Societies Modalku (Funding Societies).

Established in 2015, Funding Societies is a regional financial technology company that specialises in providing financing to micro, small and medium enterprises (MSMEs).

In a statement, Maybank said this investment is in conjunction with its move into exploring collaborative synergies with Funding Societies to promote inclusivity and bridge funding gaps within the communities it serves.

President and group chief executive officer (GCEO) Datuk Khairussaleh Ramli said this investment in Funding Societies underscores the group’s commitment to driving financial inclusion, in line with its purpose of humanising financial services.

“By leveraging our banking expertise alongside Funding Societies’ innovative digital platform, Maybank is committed to fostering a robust SME ecosystem and ensuring a brighter, more sustainable future for all,” he added.

The transaction represents the inaugural investment under a new initiative by the group to strategically invest and partner with best-in-class digitally-enabled organisations across Asean.

Additionally, the investment forms part of Maybank’s approach to accelerate innovation to serve the MSME community, aligning with the groups’ M25+ strategic thrust which aims to accelerate digitalisation through ecosystem orchestration within and beyond the banking sector.

Since its inception, Funding Societies has disbursed over US$4bil in business financing to over 100,000 businesses across Malaysia, Singapore, Indonesia, Thailand and Vietnam.

In Malaysia, Funding Societies was one of the first entities registered as a recognised market operator by the Securities Commission Malaysia.

“This partnership reaffirms our dedication to extending credit access to underserved MSMEs that face cash flow management challenges – an area we are progressively expanding to help these businesses fulfil their business potential,” said Funding Societies co-founder and GCEO Kelvin Teo.

Jaya Grocer appoints Daniel Teng as CEO

Admin Sep 14, 2024

KUALA LUMPUR: Supermarket chain operator Jaya Grocer has appointed Daniel Teng as its new chief executive officer (CEO) effective Oct 1, 2024.

He succeeds Adelene Foo, who will take on the role of chairperson.

“Teng, currently serving as deputy CEO and a key figure in the company’s growth, will now lead Jaya Grocer as it continues to provide a variety of high-quality and fresh produce at best value prices, while ensuring the best shopping experience for customers,” the company said in a statement today.

Jaya Grocer said the change is designed to reinforce its position as a leading mass premium retailer in Malaysia, supporting sustained growth and success.

It also ensures continuity of the ecosystem’s shared mission, vision, and values, it added. – Bernama

Singapore’s Changi to start work on huge new airport terminal

Admin Sep 14, 2024

SINGAPORE: Singapore’s Changi Airport, frequently voted among the world’s best, will finally start work on a massive new terminal next year as it seeks to keep up with an aviation building boom across Asia and the Middle East.

Work on the new Terminal 5, first floated more than a decade ago, will start in the first half of 2025, Prime Minister Lawrence Wong said at a dinner last Friday celebrating the 40th anniversary of the nation’s civil aviation authority.

The terminal will be able to handle 50 million more passengers a year, raising the airport’s total capacity to 140 million, and allow connections to more than 200 destinations, up from almost 150 now.

Regional airports from Seoul to Hong Kong and Bangkok are nearing completion, or are well ahead of Changi’s mid-2030s target, for new terminals that will push their annual capacity to over 100 million.

The combined investment of the four airports will top US$36bil.

Asia is seen as one of the biggest growth markets for global aviation in the coming decades, fuelled by the rising wealth of the middle classes in China, India and emerging economies across South-East Asia.

Seoul Incheon, South Korea’s biggest airport, is nearing completion of a US$412mil expansion, lifting its capacity to 106 million people and capping a wider US$11.8bil development over the past 25 years.

Hong Kong will be capable of handling 120 million travellers in the coming years, up from 80 million currently, at a cost of around US$18.2bil.

Bangkok’s Suvarnabhumi airport this year kicked off a US$4.1bil project to more than double annual capacity to 135 million passengers by the end of the decade.

The airports, well-known and well-used for international travel, face increasing competition from a raft of Chinese and Indian hubs – from Mumbai’s new Adani-anchored US$2.1bil project to host 90 million passengers to Guangzhou expanding to cope with 120 million people.

The projects across Asia seem small in comparison to the US$35bil mega airport at Dubai’s Al Maktoum, designed to handle more than 260 million passengers a year in the decades to come. — Bloomberg

Marriott to open 20 hotels in Malaysia amid travel surge

Admin Sep 14, 2024

KUALA LUMPUR: Marriott International is embarking on an ambitious expansion plan in Malaysia with 20 new hotels on the horizon, capitalising on the booming tourism and leisure sectors in Southeast Asia.

Marriott International chairman of the board, David S. Marriott said the group, which consists of 30 hotel brands, is open to mergers, acquisitions, and partnerships to achieve the target.

He highlighted Marriott’s long-standing presence in Malaysia, which began nearly three decades ago with the opening of the Renaissance Hotel Kuala Lumpur in 1996. Today, the brand operates 50 hotels across the country.

“I spoke to my father (Bill Marriott) before coming here, and he recalled how we had two hotels back in 2003 during his first visit to Malaysia, more than 20 years ago. He was in awe to learn the incredible growth that we have had in Malaysia,” David said during a media roundtable today.

The new hotels are expected to open between this year and 2029, starting with The Millen, an Autograph Collection, slated to launch in Penang this year.

Marriott has also sealed a franchise agreement with Iconic Penang Sdn Bhd to open the Iconic Marjorie Hotel, Penang, a Tribute Portfolio Hotel, in 2024.

Sheraton Johor Bahru and AC Hotel in Ipoh are slated to open in 2025.

The group has also entered into management agreements with Westfield Global Sdn Bhd to bring The Westin brand to Penang, and with SKS Group to open Courtyard by Marriott Subang, both in 2026.

In July this year, Marriott inked a deal with Ideal Property Group to open Penang Marriott Hotel Queens Waterfront and Marriott Residences Queens Waterfront, in Bayan Lepas, Penang, scheduled to open in 2029.

Supporting growth with more direct flights

During the media roundtable, David highlighted that he had a productive meeting with Prime Minister Datuk Seri Anwar Ibrahim earlier in the day.

“We discussed the opportunities and impressions we gathered in Malaysia, including the need for more airlines and direct flights into the country, particularly for high-value markets.

“We also talked about how Malaysia needs to better promote its unique attractions to the world,” he said.

David expressed excitement about returning to Malaysia, noting his eagerness to experience the country’s rich eco-tourism offerings, including orangutans, tigers, and other wildlife, which he did not have the chance to see on this visit.

David’s visit coincides with the launch of the Penang Marriott Complex, Marriott’s 50th property in Malaysia. He is the third chairman of Marriott International in the company’s 97-year history.

“My dad and grandfather paved the way for the company, setting us up for the success we have today,” he said.

South Korea’s financial watchdog chief warns of household debt turning into systemic risk

Admin Sep 14, 2024

SEOUL: South Korea’s financial watchdog chief on Tuesday expressed concern about a rapid pick-up in household debt and said such financial imbalance may turn into systemic risk.

“There are concerns that it may turn into a systemic risk, as financial imbalances accumulate and soundness deteriorates should home prices undergo correction,” Lee Bok-hyun said at a meeting with local banks.

South Korea has one of the world’s highest household debt-to-economy ratios, with more than 60 per cent of loans tied to mortgages at local banks.

Bursa Malaysia ends midday in negative territory in line with reginal peers

Admin Sep 14, 2024

KUALA LUMPUR: Bursa Malaysia extended its decline, ending lower at midday in line with regional peers.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dipped 13.14 points to 1,647.21 from yesterday’s close of 1,660.35.

The benchmark index opened 6.78 points lower at 1,653.57 and fluctuated between 1,642.80 and 1,654.38 during the morning session.

On the broader market, losers trumped gainers 749 to 205, with 392 counters unchanged.

Turnover was at 1.68 billion units worth RM1.53 billion.

In a note today, Malacca Securities Research believes the local technology sector may face headwinds due to the strengthening ringgit, despite the rebound in US technology stocks.

It added that Globetronics’ auditor resignation presents a potential affect to the sentiment for the sector. 

“On the flip side, we favour sectors that benefit from a stronger ringgit, such as consumer and financials,” it said.

Additionally, the firm is also positive on selected construction and building materials stocks, supported by the data centre segment.

Malaysia’s drug problem a looming security threat? Home minister says 68pc of inmates in prison due to drug-related offences

Admin Sep 3, 2024

PUTRAJAYA, Sept 2 – More than half of the inmates in Malaysia are behind bars due to drug-related offences, whether for consumption or trafficking.

“Sixty-eight per cent of prisoners have drug-related offences whether under the Dangerous Drugs Act 1952 or another Act,” Home Minister Datuk Seri Saifuddin Nasution Ismail told the press after the conference, here, today.

There are about 10,000 patients in the Narcotics Addiction Rehabilitation Centre (Puspen) and about 7,000 are undergoing rehabilitation within the community, he said.

Saifuddin was speaking at the Domestic Security Conference 2024 that was attended by 800 participants from various sectors, including government agencies, non-governmental organisations and security officials, among others.

At the conference, a resolution was agreed on to name drug and substance crimes as the main threat to the country’s security.

The resolution was decided after the presentation of 30 papers across four areas, in Putrajaya, today. The four areas in discussion were border security, cyber safety, public peace and social security.

Other matters brought up in the conference will still be considered by the government. However, the drug problem remained the core issue.

“Drugs and substance-related offences are the main issues, including smuggling and (drug) misuse that invites serious implications to our political, economic and social stability,” Home Ministry secretary-general Datuk Seri Ruji Ubi said as he presented the resolution here, today.

Saifuddin also said that some violent criminals begin as drug offenders, thus stopping the root of the problem was essential.

He said the planned amendments to the Drug Dependants (Treatment and Rehabilitation) Act 1983 are a big step as it would end the criminalisation of drug users and provide rehabilitation instead, especially for “those who come voluntarily.”

However, the punitive laws in the Dangerous Drugs Act 1952 remained.

Based on the resolution, the government will utilise technology maximally by using drones, satellite monitoring and automatic detection systems in high-risk areas at the borders.

Putrajaya also will increase collaborations with security agencies at a national and international level, increase manpower, strengthen the integrity of enforcement officers, build resilient infrastructure, implement more aggressive operations at a national and global level, and enforce existing laws.

Further, the government plans to fortify the current rehabilitation and treatment programs holistically and promote public awareness programs against drugs and substance use.

The government also will encourage economic development at the nation’s borders to reduce the prevalence of the illegal drug trade in the area via public participation in the local economy.

Mavcom: Airlines must refund within 30 days in original payment mode

Admin Sep 3, 2024

KUALA LUMPUR: The final Malaysian Aviation Consumer Protection Code 2016 (MACPC) mandates that airlines must issue refunds to consumers in the original mode of payment within 30 days.

Malaysian Aviation Commission (Mavcom) director of consumer and public affairs, Pushpalatha Subramaniam, highlighted that consumers are also entitled to refunds for carbon fee charges if these are imposed by airlines.

“So far, only Malaysia Airlines has embarked on a voluntary carbon offset programme, under which, in the case of flight delays or cancellations, consumers are entitled to receive refunds,” she said during a question and answer session held in conjunction with today’s MACPC amendments briefing.

Regarding the carbon fee, she reiterated that Mavcom does not regulate this matter, and it is up to the carriers to decide whether to impose it and to determine its value.

“The other carriers can impose it too, but in cases where airlines impose a carbon fee, consumers with refundable or non-refundable tickets can get refunds. This is in addition to other mandatory refunds, such as fuel surcharges, taxes, fees, and other charges like the departure levy and passenger services charges,” she added.

Addressing the recent situation involving a Seoul-bound Malaysia Airlines flight, Pushpalatha confirmed that passengers are entitled to refunds under the latest MACPC.

It was reported that a Malaysia Airlines flight to Incheon Airport in Seoul, South Korea, was forced to turn back shortly after taking off from Kuala Lumpur International Airport (KLIA).

In response to a question about the implications of Mavcom’s dissolution and its merger with the Civil Aviation Authority of Malaysia on the MACPC, she emphasised that the ongoing process will not affect the MACPC. – Bernama