Economics

Malaysia: Elevating strategic alliance with 'true friend' India

Malaysia and India have agreed to elevate their relationship from an enhanced strategic partnership (ESP) to a comprehensive strategic partnership (CSP), said Prime Minister Datuk Seri Anwar Ibrahim. “This must be further strengthened in a multitude of areas,” Anwar said, highlighting sectors such as digital investments, trade, construction, agriculture, education, research and military collaboration, including joint operations to safeguard borders. The prime minister also mentioned new initiatives and programmes that would encourage further collaboration between Indian and Malaysian companies, particularly in challenging areas like energy transition, digitalisation and food security. He specifically highlighted the importance of cooperation in the semiconductor industry, where Malaysia is recognised as a hub in Southeast Asia and acknowledged India’s achievements in this field. (Bernama)

US: Trump says he may end EV tax credit, open to naming Elon Musk as adviser

Republican presidential candidate Donald Trump said on Monday that if elected he would consider ending a US$7,500 (RM32,818) tax credit for electric-vehicle (EV) purchases, and that he would be open to naming Tesla Inc chief executive officer Elon Musk to a cabinet or advisory role. Trump also said on Monday he would take steps to discourage exports of vehicles produced by the Detroit Three automakers and others from Mexico for US consumers by imposing new tariffs and would prevent Chinese automakers from building new plants in Mexico for US market vehicles. But Trump is open to Chinese and other automakers building vehicles in the US. (Reuters)

US: Trump pledges to end pollution rule, block steel merger

Republican presidential candidate Donald Trump ratcheted up his pledge to radically limit foreign access to domestic markets, saying he would ensure the supply chain for essential goods would be 100% American if he wins the Nov 5 election. Trump also pledged to eliminate rules published by the Environmental Protection Agency (EPA) in April, which limit air and water pollution from power plants and are designed to cut over one billion metric tons of greenhouse gas emissions by 2047. Trump said his administration would bring more "advanced small, modular nuclear reactors" online, and that he would invoke the Defence Production Act to ramp up production of essential products. Even as he pledged broad tax cuts for families, businesses, Social Security disbursements and tips, he said he would slash the deficit, a claim that good government experts have cast doubt on. (Reuters)

Japan: BOJ highlights rising wage pressure from structural job market changes

Japan's dwindling working-age population is leading to structural changes in the labour market that are heightening pressure on firms to hike wages and services prices, the Bank of Japan (BOJ) said in two research papers released on Tuesday. Permanent workers' pay remained stagnant even as labour shortages intensified since the mid-2010s, as female and elderly workers filled the gap by taking on low- paid, part-time jobs. The trend is changing as a dwindling pool of female and elderly workers, rising job hoppers and an increase in pay for part-time jobs prod firms to hike permanent workers' pay, the BOJ said in a research paper on Japan's labour market. Such wage pressure is beginning to replace raw material costs as the main driver of inflation, the BOJ said in another research paper on Japan's service-sector prices. BOJ Governor Kazuo Ueda has said the central bank will keep raising interest rates if economic growth and inflation move in line with its projections. (Reuters)

Companies

TNB: Hit with additional RM1.4bn tax bill, planning appeal

Tenaga Nasional Bhd has received a new tax bill totalling RM1.4bn from the Inland Revenue Board (IRB). The additional assessments cover year 2020 (amounting to RM685.8m) and 2021 (amounting to RM705.2m), stated in a bourse filing on Tuesday. Based on legal advice it has received, TNB believes that IRB’s assessments are incorrect as it seeks to appeal the notices promptly. (The Edge)

South Malaysia Industries: Gets takeover offer at 45 sen per share

South Malaysia Industries Bhd (SMI) on Tuesday received a takeover offer worth more than RM47m from a group of major shareholders. Francis Leong and two subsidiaries of Techbase Industries Bhd are offering 45 sen per share to acquire the rest of the shares not already owned by them. The offer price represents a premium of 11% to SMI’s closing price of 40.5 sen on Monday. (The Edge)

Uzma: Signs pact with Taiwan’s Terawatt for battery, renewable energy projects

Uzma Bhd said on Tuesday it had signed a pact with Taiwan’s Terawatt Ltd to explore development of products or projects in energy storage and renewable energy (RE). Under the memorandum of understanding (MOU), the parties agree to work together including to conduct a feasibility study on product commercialisation via a pilot project and business plan in the area of energy storage, Uzma said in an exchange filing. The MOU is valid until Aug 19, 2025. The parties also agree to “facilitate knowledge exchange via joint activities including, but not limited to, programmes, workshops and seminars”, as well as “to explore additional areas of cooperation through mutual agreement”, Uzma said. (The Edge)

Solarvest, Agmo: Form joint venture to develop digital products

Solarvest Holdings Bhd on Tuesday said it is partnering with Agmo Holdings Bhd to jointly develop digital products catering to the clean energy sector. The two companies will set up a joint venture (JV) to produce the digital products, including software, digital platform, data analytics and technology integration services, Solarvest said in an exchange filing. Solarvest will hold 70% in the JV while Agmo will have the remaining 30%. “The collaboration is intended to capitalise on the emerging opportunities for digital solutions in the clean energy sector and to accelerate the adoption of these technologies,” the company said. Products to be developed by the JV company will include a renewable energy certificate platform, a home solar project management system, and an electric vehicle platform. (The Edge)

MCE Holdings: Secures contracts from Proton to supply components

MCE Holdings Bhd said it had secured contracts from Proton Holdings Bhd worth RM52.1m to supply automotive electronic and mechatronic components. The five-year contracts are expected to commence in the first financial quarter ending Oct 31, 2024 (1QFY2025), said MCE in an exchange filing on Tuesday. As part of the job, MCE will be providing parts such as the front reading lamp, rear reflector, and pull cup handle assembly for Proton vehicles. The estimated total investment cost for the project is RM2.2m. Besides clinching the new job from Proton, Goh updated that the group is on track to complete its new plant, the MCE Auto Hub, by early 2025. (The Edge)

Utilities: SEDA to allocate up to 190MW feed-in-tariff quota for non-solar RE via e-bidding

The Sustainable Energy Development Authority (SEDA) will allocate up to 190 megawatt (MW) feed-in tariff (FiT) quota for biogas, biomass, and mini-hydro development through an e-bidding process, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. During a press conference, Fadillah explained that the FiT quota will go through an open tender, “similar to large-scale solar (LSS)”. Meanwhile, the timeline and the details for the e-bidding will be announced soon, according to SEDA. (The Edge)

Source: Mercury Securities Research - 21 Aug 2024