Business

- A + A KUALA LUMPUR (Jan 20): Bank Negara Malaysia (BNM) maintained its overnight policy rate (OPR) at 1.75% in its first monetary policy committee (MPC) meeting for the year. The central bank in a statement on Thursday (Jan 20) said the MPC considers the current stance of monetary policy to be appropriate and accommodative. "Fiscal and financial measures will continue to cushion the economic impact on businesses and households and provide support to economic activity. "The stance of monetary policy will continue to be determined by new data and their implications on the overall outlook for inflation and domestic growth," it elaborated. BNM added that headline inflation averaged 2.3% for the period of January-November last year and expected average headline inflation in 2022 to remain moderate as the base effect from fuel inflation dissipates. Meanwhile, underlying inflation as measured by core inflation is expected to edge upwards as economic activity … [Read more...] about BNM maintains OPR at 1.75% in first MPC meeting for 2022

- A + A (Jan 20): German Economy Minister Robert Habeck kicked off a charm offensive targeting major industrial companies and regional leaders this week as the government tries to accelerate its plan to cut emissions and meet elusive climate change goals. Habeck will visit a BMW AG factory in Munich on Thursday (Jan 20) after touring an Airbus SE facility near Hamburg earlier this week. The stops underscore that slashing emissions from transport will be one of the biggest challenges facing Germany’s new coalition government. The tour comes a week after Habeck said the country needs to triple the speed of its emissions reductions to transform Europe’s biggest economy into a climate neutral state by 2045. Meanwhile, companies like Airbus and BMW are looking to Habeck to help spur more government spending to pick up the pace in the transformation. “It’s a task with gigantic dimensions," Habeck said on Tuesday. “Not a day should be wasted.” The European Union … [Read more...] about Germany courts BMW, Airbus in bid to speed up green transition

- A + A SINGAPORE (Jan 20): A small blank-cheque firm backed by state investor Temasek made its Singapore debut on Thursday, marking the first such local listing as Singapore steps up a drive to emerge as a key venue for listings of this type. This came four months after Singapore Exchange (SGX) allowed special-purpose acquisition companies (SPACs) or shell firms to list, easing proposed rules in response to market feedback. The listing of Vertex Venture's SPAC also marks the first major debut of such vehicles in Asia since the frenzy seen in the United States in early 2021 prior to regulatory changes there. "As the first SPAC in Singapore, we had to tread through difficult and unchartered waters," Chua Kee Lock, chief executive officer of Vertex Venture, a Temasek subsidiary, told company executives, bankers, and lawyers at a listing ceremony. With an eye on sectors such as cybersecurity and fintech, Vertex Technology Acquisition Corp raised S$200 million … [Read more...] about Singapore lists first SPAC as Asia investors warm up to blank-cheque firms

- A + A KUALA LUMPUR (Jan 20): Manulife Investment Management (Manulife IM) says Malaysia’s accelerated vaccination rates, which was faster than what the market had anticipated, combined with increased government spending ahead of the next general election could support domestic demand amid the lingering effects of the pandemic. At a media briefing on Thursday (Jan 20), Manulife IM’s Head of Macro Strategy (Asia), Sue Trinh said the outlook for Asian countries in 2022 is a mixed bag as the cyclical macro conditions are favourable for reopening and recovery in Taiwan, select Asean countries such as Vietnam, Indonesia, Thailand, Singapore and Malaysia, as well as Japan. “Structurally, the Asian region has a lot of work to do to recoup lost output due to the pandemic. The biggest concern remains weak consumer demand which will be exposed by the looming downturn in export growth. “On the other hand, Asia’s milder inflation expectation comes down to one simple factor — … [Read more...] about Accelerated vaccination rates, higher govt spending to support domestic demand, says Manulife IM

- A + A KUALA LUMPUR (Jan 20): Clean energy specialist Solarvest Holdings Bhd, insurers QBE Insurance (Malaysia) Bhd and Anora Agency Sdn Bhd collaborate to provide solar photovoltaic (PV) investors a solar investment insurance product, namely the SolarPro Line-Stoppage insurance policy. In a joint statement on Thursday (Jan 20), the trio said they signed a tripartite memorandum of understanding (MoU) to enable Solarvest to be able to take up, as well as provide its solar PV investors with an all-new solar investment insurance product. The solar investment insurance product, namely the SolarPro Line-Stoppage insurance policy, is a comprehensive general liability policy with consequential loss underwritten by QBE Malaysia, through Anora. According to the three companies, this insurance product is aimed to offer solar PV investors better coverage to ensure business continuity and peace of mind. Solarvest executive director and chief executive officer (CEO) Davis … [Read more...] about Solarvest, QBE Malaysia, Anora collaborate to offer solar investment insurance product

Photo by Suhaimi Yusuf/The Edge - A + A KUALA LUMPUR (Jan 20): FGV Holdings Bhd has signed 12 collective agreements (CAs) with its workers' unions for the years 2022 to 2024. In a statement on Thursday (Jan 20), FGV's group chief executive officer (CEO) Mohd Nazrul Izam Mansor said that the successful negotiations for the 12 CAs, amidst lingering pandemic challenges, demonstrated strong commitments and commendable industrial relations among all parties. "FGV is blessed with over 40,000 employees including workers who are covered under the unions, whom we recognise as the backbone of the company. "The agreements forge a better understanding between the employers and the employees, thus encouraging better cooperation and support to achieve FGV's aspiration to become a world-class agribusiness and food company. Mohd Nazrul added that in the midst of various challenges affecting the palm and its related industries over the past few years, unions and management … [Read more...] about FGV concludes signing of collective agreements with 12 workers’ union for 2022-2024

This article first appeared in The Edge Malaysia Weekly, on January 10, 2022 - January 16, 2022. The government has discussed flood mitigation plans and will have to come up with a long-term solution (Photo by Mohamad Shahril/The Edge) - A + A Finance Minister Tengku Datuk Seri Zafrul Aziz looks none the worse for wear after two years in the political hot seat of overseeing the country’s finances. The former investment banker knows tough measures need to be made fast but admits that changes to the status quo will not be easy to push through. Below are excerpts from his interview with The Edge’s Cindy Yeap and Esther Lee. The Edge: It’s been only two months since the tabling of Budget 2022 but so many things have happened that it looks like you need to redo the budget or table a supplementary budget. Zafrul : Every year, there is a supplementary budget but, yes, only just now I told the cabinet that we have to relook and reprioritise to make … [Read more...] about Cover Story: Ensuring fiscal sustainability

- A + A BENGALURU (Jan 20): Shares in Unilever inched roughly 2% higher on Thursday after the consumer goods giant said it would not raise its rejected £50 billion (US$68 billion) offer for GlaxoSmithKline's (GSK) consumer healthcare business. Shares in GSK fell by similar levels to the bottom of the FTSE 100 after the Dove and Lifebuoy soaps maker late on Wednesday effectively ended its pursuit of a business that the pharmaceuticals company plans to spin off later this year. GSK said on Saturday it had rejected three approaches from Unilever for the business which makes Sensodyne toothpaste and painkillers such as Panadol and is 32% owned by US drug maker Pfizer. The final proposal made on Dec 20 comprised £41.7 billion in cash and £8.3 billion in Unilever shares, but GSK said it failed to reflect the intrinsic value of the business and its potential. Unilever's decision not to increase its bid raises questions about its strategy under chief executive officer … [Read more...] about Unilever shares gain after opting not to lift bid for GSK consumer assets

- A + A LONDON (Jan 20): A group of investors of Unilever said on Thursday (Jan 20) they had filed a fresh resolution urging the company to fix a "crucial blind spot" in its strategy and set ambitious targets to sell healthier foods. The resolution by an 11-strong investor group with US$215 billion (about RM900.16 billion) in assets, including Candriam, Actiam and Greater Manchester Pension Fund, calls on Unilever to disclose the current proportion of sales linked to healthier products. It also urges the company to set a target to "significantly increase" that share by 2030, and publish an annual review of the progress. While Unilever, the owner of the Ben & Jerry's ice cream, Hellmann's mayonnaise and Pot Noodle brands, is seen as a leader in sustainable business by many funds, the investors said increasing regulations around health mean a failure to act could hit its finances. Governments in many of the company's main markets have introduced taxes on … [Read more...] about Unilever investors call AGM vote to push for healthy food targets

Suganuma (left) and Cheng showing the media the capabilities of nanoe technology - A + A KUALA LUMPUR (Jan 20): The exclusive nano-sized atomised water particles generating technology — nanoe technology — by Panasonic has proven its inhibitory effects against four novel coronavirus variants (SARS-CoV-1), namely Alpha, Beta, Gamma and Delta. It also improves indoor air quality. In a media briefing on Thursday (Jan 20), Managing Director of Panasonic Corp’s QAFL Business Promotion Office, Ichiro Suganuma said that although the virus inhibitory test on the latest Omicron variant has not been carried out yet, based on the previous record, the nanoe technology should be able to inhibit that variant too. “Panasonic has been conducting research on this [nanoe] technology since 1997 and has realised its effectiveness in a variety of areas, including inhibiting pathogenic microorganisms (bacteria, fungi, and viruses) and allergens, breaking down PM 2.5 components that … [Read more...] about Panasonic’s nanoe technology inhibits Covid-19 variants; improves indoor air quality