Latest news with #MARC
BusinessToday
3 days ago
- Business
- BusinessToday
Tariff Pressures And Trade Shifts Dominate MARC's 2025 Economic Forum
Trade disruptions, strategic tariff manoeuvres and shifting global alliances took centre stage at Malaysian Rating Corporation Bhd's (MARC) 2025 forum, 'An Afternoon Talk with MARC: Global Economic & Market Outlook, Geopolitics and Tariff Agendas'. The forum brought together senior executives, economists and policymakers to explore how Malaysia and the region can adapt to an increasingly turbulent global economy. MARC Group Chief Executive Officer Arshad Mohamed Ismail described the current global climate as one where 'economic tools have become geopolitical weapons'. He warned that the resurgence of tariffs as a foreign policy instrument, particularly by the US, is reshaping trade flows, amplifying supply chain risk and demanding a fundamental rethink of how nations and businesses compete. 'Malaysia must recalibrate its competitiveness strategy — resilience, adaptability and the ability to form strategic alliances are now more critical than low costs or market access alone,' Arshad said during his opening remarks. Chief Economist Dr Ray Choy expanded on this view as he forecasted a slowing global growth driven by fragmented monetary policy, fragile consumer sentiment and sustained geopolitical uncertainty for the second half of 2025. 'While the eurozone is showing signs of cautious recovery, the US economy faces headwinds and China continues to struggle with soft domestic demand,' he said, while projecting that Malaysia's GDP to grow 4.4% this year, supported by robust domestic activity and a gradual tourism revival. Meanwhile, despite challenges such as a higher Sales and Service Tax, MARC said inflation is expected to remain under control. 'Bank Negara Malaysia's (BNM) recent rate cut to 2.75%, in line with global monetary easing, signals a more supportive policy stance aimed at sustaining domestic momentum,' it added. Separately, a panel discussion titled 'US Tariffs & Geopolitics: Demystifying Nested Agendas' featuring a distinguished lineup of BNM Assistant Governor Mohd Fraziali Ismail, academic and former deputy minister Prof Dr Ong Kian Ming and political analyst Prof Dr Bridget Welsh dissected the underlying motivations behind US trade policy shifts. The panellists highlighted that recent US actions, including selective tariff reductions and increases. indicate a recalibration of trade posture rather than a return to free trade. They shared that this evolving terrain has accelerated the formation of regional trade networks, with blocs like ASEAN and the European Union strengthening intra-regional cooperation to buffer against external shocks. Malaysia, they stressed, should adopt a strategic, non-confrontational approach. 'High-tech sectors such as semiconductors should be prioritised in tariff negotiations, while existing trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership should be fully leveraged to diversify export markets. 'Strengthening ties with fast-growing economies in Asia and the Middle East was also seen as vital,' the panellists said. The conversation also turned to monetary dynamics as the panellists agreed that the US dollar will remain dominant for the foreseeable future. Malaysia's approach, they said, should be framed as pragmatic risk management instead of an effort to challenge the dollar's global reserve status. Subsequently, the closing discussions pointed to cautious optimism for Malaysia's medium-term trajectory where it was shared that while global headwinds persist, the country's strong domestic fundamentals, reform momentum and strategic geographic position offer a buffer against external volatility. As tariff pressures and geopolitical shifts continue to reshape the global economic landscape, the MARC forum made one point clear: Malaysia's resilience will depend not just on reacting to global trends, but on anticipating them and shaping its own place within a rapidly evolving order. Related
New Straits Times
5 days ago
- Business
- New Straits Times
MARC: Inflation to stay manageable despite SST hike
KUALA LUMPUR: MARC Ratings Bhd expects Malaysia's inflation to remain manageable despite the recent upward revision to the sales and service tax (SST). MARC's chief economist Dr Ray Choy said the global monetary policy environment has turned more dovish, with Bank Negara Malaysia cutting its overnight policy rate to 2.75 per cent in July, following the European Central Bank's easing cycle in 2024. "Markets are also pricing in two interest rate cuts by the US Federal Reserve by the end of 2025," he said at MARC's recent forum, An Afternoon Talk with MARC: Global Economic & Market Outlook, Geopolitics and Tariff Agendas. On the domestic outlook, Choy said Malaysia's economy is projected to grow by 4.4 per cent in 2025, supported by resilient domestic demand, including private consumption, investment activity and a sustained recovery in tourism. He added that the Malaysian bond market remains steady, backed by robust foreign demand for government securities and a positive medium-term growth trajectory. Commenting on trade trends, Choy noted that the average US tariff rate since 1989 has been around 2.7 per cent, but ongoing trade tensions could push this higher, likely settling in the teens. "As of 10 July 2025, data shows that the Trump administration reduced initial tariff rates on 59.1 per cent of its trading partners, with average tariff increases of 1.5 per cent and reductions of 7.3 per cent. This reflects a complex recalibration of trade policy and hope for better outcomes on future negotiations," he said. Meanwhile, Malaysian Rating Corporation Bhd (MARC) group chief executive officer Arshad Mohamed Ismail said that the line between economics and geopolitics is becoming increasingly blurred, posing significant implications for global business strategies, policy decisions and financial stability. He said that the convergence of economic and geopolitical risks is now more evident than ever, with tariffs being used as strategic levers in US foreign policy and disruptions in global energy markets continuing to impact supply chains around the world. Arshad added that US tariffs have shifted beyond their traditional economic purpose and now reflect broader political and strategic priorities. "For corporations and financial institutions, understanding and navigating this complexity is vital for sound planning and risk management," he said. Arshad said that for open economies like Malaysia, the current global climate demands a more agile and multidimensional approach to competitiveness.
Washington Post
29-06-2025
- Business
- Washington Post
Cash-strapped Maryland revives plan for trains to Virginia and Delaware
Maryland is reviving plans to expand MARC, its regional rail service, into Delaware and Virginia and add more trains every hour, even as the state struggles to fund its current transit system. Under a proposal released last week by the Maryland Transit Administration, trains would run north to Wilmington and south to Alexandria, connecting MARC with regional rail systems in Pennsylvania and Virginia. They would reach further west to Cumberland. And they would travel more frequently between D.C. and Baltimore and Frederick, including on the weekend.
Business Wire
25-06-2025
- Business
- Business Wire
American Water CEO to Share Expertise at 2025 Mid-America Regulatory Conference
BUSINESS WIRE)-- American Water (NYSE: AWK), the largest regulated water and wastewater utility company in the U.S., is participating in the 2025 Mid-America Regulatory Conference (MARC), taking place June 22 through June 25, 2025, in Indianapolis, Indiana. "At American Water, we believe innovation, collaboration, and smart investments are essential to strengthening the critical services our customers and communities depend on daily,' said American Water President and Chief Executive Officer John Griffith. American Water President and Chief Executive Officer John Griffith will take part in the CEO Roundtable, which will focus on how critical infrastructure and utility service providers are adapting during a period of rapid change. Griffith will emphasize how American Water is fostering innovation while prioritizing customer affordability and maintaining public trust at the core of its mission. 'At American Water, we believe innovation, collaboration, and smart investments are essential to strengthening the critical services our customers and communities depend on daily,' said Griffith. 'Through our participation at MARC, we aim to share best practices on how American Water continues to build resilient infrastructure, enhance regulatory partnerships, and deliver long-term value to customers.' American Water plays a vital role in addressing infrastructure needs while advancing sustainable, customer-focused solutions. Through leadership participation in MARC, the company continues to engage in meaningful dialogue with regulators and industry partners to strengthen utility performance and public trust. For more information about MARC, visit: About American Water American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing ® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. As one of the fastest growing utilities in the U.S., American Water expects to invest $40 billion to $42 billion in infrastructure repairs and replacement, system resiliency and regulated acquisitions over the next 10 years. The company has a long-standing history of executing its core operations, aligned with sustainable best practices, through its commitments to safety, affordability, customer service, protecting the environment, an inclusive workforce and strengthening communities. American Water has been recognized as one of Forbes 2025 Most Trusted Companies in America, in addition to being ranked first in the utilities industry category on Forbes America's Best Large Employers List for 2024; recognized on Newsweek's America's Most Responsible Companies 2025 List; ranked on Barron's 100 Most Sustainable U.S. Companies 2024 List; and named one of America's Most JUST companies by JUST Capital and CNBC for its continued commitment to employees, customers, communities and shareholders.
New Straits Times
04-06-2025
- Business
- New Straits Times
MARC reaffirms AAA rating on Ranhill Sabah Energy sukuk
KUALA LUMPUR: MARC Ratings has reaffirmed its AAAIS(bg) rating on Ranhill Sabah Energy II Sdn Bhd (RSEII) RM250 million Islamic Medium-Term Notes Programme, maintaining a stable outlook. In a statement, MARC said the rating reflects the unconditional and irrevocable guarantee provided by Bank Pembangunan Malaysia Bhd (BPMB), which is itself rated AAA/Stable by the agency. "This rating continues to reflect strong liquidity and stable cash flow coverage, with sukukholder interests well protected by BPMB's guarantee," MARC said. RSEII owns and operates the 190-megawatt combined-cycle gas turbine Rugading Power Station in Sabah under a 21-year power purchase agreement (PPA) with Sabah Electricity Sdn Bhd, a subsidiary of Tenaga Nasional Bhd. MARC noted that the plant delivered strong performance in 2024, keeping its unplanned outage rate below the 4.0 per cent limit set by the PPA, which resulted in a full capacity payment of RM69.1 million. The plant also met heat rate efficiency targets, enabling full cost pass-through to the offtaker. Total energy payments for the year amounted to RM131.9 million. Operating profit improved to RM23.5 million in 2024, up from RM18.4 million the year before, which had been impacted by major maintenance work. RSEII's cash balance stood at RM85.6 million as of end-March 2025, sufficient to cover the RM56.9 million due in principal and profit payments by June 17. Based on base case cash flow projections, RSEII's average and minimum finance service coverage ratios are forecasted at two times and 1.9 times through 2029, respectively.
