Latest news with #RHB
New Straits Times
4 days ago
- Business
- New Straits Times
RHB unveils ringgit-based financing for property in UK, Australia
KUALA LUMPUR: RHB Banking Group has introduced a new housing loan designed to help Malaysian investors purchase residential properties overseas, specifically in Australia and the United Kingdom (UK). Known as RHB Overseas Property Financing, the ringgit-denominated full flexi loan is part of the bank's RHB Premier offering, targeting Malaysians who are not permanent residents or citizens of Australia or the UK. The facility is open for the purchase of prime residential properties located within 30 kilometres of the central business districts of Melbourne or Sydney, or within Zones 1 to 3 in London. RHB said clients have the option to request early financing disbursement during the property's construction phase to help manage foreign exchange risk, in line with Bank Negara Malaysia's guidelines on foreign currency asset investments. The ringgit-based financing will be converted into foreign currency and placed into RHB's interest-bearing multi-currency account. These funds will be earmarked as temporary security before being transferred to the overseas solicitor as part of the disbursement process once the property is completed. In a statement, group community banking managing director Jeffrey Ng Eow Oo said the bank is dedicated to supporting RHB Premier clients as a reliable partner in expanding their property investments internationally. "Our overseas property financing complements our clients' aspirations to tap into new growth opportunities, diversify their wealth portfolio and gain access to a new home at an attractive destination. "We are here to provide the right expertise to our clients for their real estate investment ambitions with confidence," he added.
Focus Malaysia
6 days ago
- Business
- Focus Malaysia
Aluminium prices hold strong despite US tariff concerns
DESPITE ongoing uncertainties due to the US tariffs, we believe aluminium prices will remain supportive amid the tight global supply, albeit offset by moderating demand. 'We remain positive on the outlook for aluminium smelters mainly due to easing alumina costs,' said RHB. LME aluminium prices have been more volatile with the imposition of US tariffs, dropping to a low of USD2,300/tonne in April, but prices have since recovered to USD2,600/tonne. While the tariffs have raised concerns on slower demand for aluminium, LME aluminium prices are supported as the overall global supply remains tight amid delays in the ramping up of new smelting capacity in Europe due to high energy costs, and limited room to grow in China as it nears the 45m tonne annual production cap. That said, the Main Japanese Port (MJP) premium has fallen by 58% year-to-date (YTD) due to the higher supply in Asia following reduced interest in exporting to the US, whereas the US Midwest premium has risen 200% YTD. On the cost side, alumina prices have decreased 46% YTD, accounting for only 14% of LME aluminium prices, down from a peak of 31% in Dec 2024, as supply chain disruptions from Guinea eased. This bodes well for aluminium smelters, with a ramp-up in new refinery capacities in Asia. In the longer term, we remain positive on PMAH as it targets increasing alumina self-sufficiency from 23% currently to c.99% by 2027, with the new refinery project in Indonesia. Even if alumina prices fall further, Indonesia remains costcompetitive for alumina refineries due to its bauxite export ban. Conversely, carbon anode costs have risen 23% YTD, driven by higher petroleum coke prices, following supply disruptions. That said, margin should still be supported as carbon anodes make up a relatively small portion of smelting costs. Last week, the Transport Ministry formally approved the scheme for MRT Circle Line, or also known as MRT 3. Land acquisition is expected to be completed by end-2026, with contract awards and construction of the 51.6km line to begin in 2027. We believe this will boost demand for cement in the midlong term, and anticipate LMC to be one of the biggest beneficiaries, given its huge market share of 60-70%. Additionally, while LMC's cement supply contract for the East Coast Rail Link Phase 1 ended in 2024, management guided that it is still supplying cement for Phase 2, albeit without an exclusive contract. We note that bulk cement prices have remained stable at MYR380/tonne since Jul 2023, while coal prices have declined by 12% YTD, easing cost pressures for cement producers. Key downside risks are rising input costs and a global slowdown, which could tamper construction activity and weaken demand for aluminium and cement. —July 23, 2025 Main image: Aluminium Online
Yahoo
21-07-2025
- Business
- Yahoo
Singapore NODX surges 13% y-o-y in June, economists mixed on forecasts
Some analysts see that frontloading could dampen growth in the second half, compounded by potential drag from US reciprocal tariffs. Singapore's non-oil domestic exports (NODX) 13% y-o-y climb in the month of June on the back of continued frontloading ahead of US President Donald Trump's July 8 deadline has inspired largely neutral outlooks from economists. Economists Chua Hak Bin and Brian Lee Shun Rong at Maybank Securities (Maybank) have upgraded their 2025 NODX forecast to 4%, which they note implies a slower growth of 2.8% in the second half. At the same time, the pair are reiterating their 2025 gross domestic product (GDP) growth forecast of 3.2%. Chua and Lee had previously upgraded their GDP forecast to 2.4%, following stronger-than-expected GDP growth in the second quarter. RHB Bank Singapore's (RHB) Barnabas Gan and Laalitha Raveenthar have also upgraded their NODX forecast for the full year to 2.0% from an initial 0.0%. At the same time, they retain their 2025 GDP forecast at 2.0% Fellow economist from UOB Global Economics and Market Research (UOB) Jester Koh is keeping his 2025 NODX forecast of 1.0% to 3.0% unchanged, while Oxford Economics' Sheana Yue has kept her 2025 GDP projection of 2.0% growth unchanged. The 13.3% surge included a $1.3 billion contribution from gold, without which NODX growth would have come in at 3.4% y-o-y. Non-oil re-export (NORX) growth meanwhile grew 18.5% y-o-y. Chua and Lee note that Singapore's exports of semiconductors, specialised machinery and other electronic components have benefited from broadening artificial intelligence (AI) demand and exemptions from reciprocal tariffs. Around 61% of Singapore's exports to the US, by their estimates, are currently exempted from reciprocal tariffs, including semiconductors, electronics, pharmaceuticals and energy. Electronics NODX accelerated, growing 8% y-o-y on the back of double-digit expansions in integrated circuits (IC), personal computers (PC) and bare printed circuit boards (PCB). By market, demand climbed the most in Japan at 76.6%, Hong Kong at 45.9%, Indonesia at 29.8% and South Korea at 27.2%. Meanwhile, electronics NORX grew by 26.2% y-o-y in June, owing to PCs, ICs and telecommunications equipment. Aggregate NORX rose by 18.5% y-o-y, after a 16.2% increase in the preceding month, led by Taiwan at 96%, the US at 64.3% and Hong Kong at 26.7%. Growth in non-electronics exports climbed to 14.5% y-o-y, driven by non-monetary gold which leapt 211.9% y-o-y, specialised machinery at 31.4% y-o-y and lastly, other specialty chemicals at 20.1%. On the other hand, the export of pharmaceuticals and petrochemicals contracted 13.7% y-o-y and 10.2% y-o-y respectively in June, with the latter declining for the fourth consecutive month. NODX declines in Europe (EU), Thailand, Malaysia, US, Indonesia and Japan were offset by growth across Hong Kong at 54.4%, Taiwan at 28.3%, South Korea at 33% and China at 8.5%. 'Some exports may have been diverted from the EU during the 90-day reprieve, as manufacturing supply cannot be ramped up quickly to meet import demand,' write Chua and Lee. Exports to Europe, note Chua and Lee, will 'likely recover and catch up' following the oncoming US reciprocal tariffs effective August. They add: 'This will help offset and cushion any export slowdown to the US in the second half.' In June, NODX to Hong Kong at 54.4% and Taiwan at 28.3% were led by specialised machinery and semiconductor chips, while exports to South Korea were driven by specialised machinery at 77.9%, measuring instruments at 202.7% and PCs at 195.3%. Chua and Lee note that non-monetary gold was a prominent driver of exports to China and Hong Kong, with gold exports to China surged 2222% y-o-y in June. Excluding gold, NODX to China fell 3.3% y-o-y, for the ninth consecutive month, while gold exports to Hong Kong jumped 71.1% y-o-y. Overall, Maybank's Chua and Lee expect the Ministry of Trade and Industry (MTI) to upgrade its GDP forecast range for 2025 to 2% to 3%, once final numbers on the 2Q2025 GDP are released in August. They also expect Enterprise Singapore to upgrade its full year export forecast from the current conservative 1% to 3% range, as first half NODX growth came in higher than expected at 5.2%. Exports and manufacturing growth will likely slow after higher reciprocal tariffs for the region kick in on Aug 1, note Chua and Lee. According to them, positives that will mitigate the payback and severity of the second half export slowdown are relatively lower US tariffs, broadening global AI demand and US-China de-escalation with a probable extension of the US-China tariff truce beyond Aug 12. 'Singapore faces the lowest US reciprocal tariff in Asia, at about 5.1% in effective terms by our estimates, below the 10% baseline tariff rate due to the current exemptions,' write Chua and Lee. In the US, wholesale inventories have been rising modestly over the last few months as companies stock up, but US retail inventories have not shown any visible increase. On this, Chua and Lee write: 'We think that the US inventory overhang post-reciprocal tariffs may only last several months before companies have to replenish their stock and order more imports.' While they see export growth to 'likely moderate' in the second half, given the stronger-than-expected growth in the first half, Chua and Lee expect the Monetary Authority of Singapore (MAS) to maintain its current modest appreciation bias for the upcoming meetings. 'We lower our three-month Singapore Overnight Rate Average (SORA) forecast to 1.5% by end-2025 and 1.2% by end-2026, as safe haven flows continue to dampen domestic interest rates,' write Chua and Lee. Should the US Federal Reserve (US Fed) cut rates in the second half, this could also drive short-term interest rates lower, the pair add. Looking ahead, UOB's Koh sees that 'payback' from earlier frontloading is likely to dampen growth in the second half, compounded by potential drag from US reciprocal tariffs. 'However, in our view, the eventual growth 'payback' may be more pronounced in trade-related services rather than in manufacturing, as frontloading seems to be more pronounced in electronics exports and less so in non-electronics exports and manufacturing,' writes Koh. Any further growth drag in these sectors, he adds, is likely to stem from weaker demand due to the tariffs themselves. RHB's Gan and Raveenthar note that although June's NODX numbers offer a 'welcome reprieve' and underscore the resilience of Singapore's trade architecture—especially its regional diversification—it 'should not be viewed' as a structural re-rating of the external sector. The pair adds: 'The fundamental backdrop remains mixed, with a delicate balance between cyclical recovery and looming protectionist headwinds.' Meanwhile, on Singapore's GDP in the second quarter, Oxford Economics' Yue sees that readings from the quarter will be 'revised upwards' from advanced estimates released earlier this week. On NODX, Yue has a slightly more prolonged outlook with regards to the frontloading boost than her fellow economists, noting that the process is "straightforward". 'The extension of the tariff suspension deadline to Aug 1 could further support goods exports. That said, we anticipate any remaining resilience to diminish over the upcoming months, especially if higher tariffs are imposed in the 3Q2025,' writes Yue. She adds that Singapore could benefit from an established re-exporting sector and a lower reciprocal tariff, while a structural shift in AI-linked electronics demand should continue to be a tailwind. Yue surmises: 'Therefore, although export growth is expected to decelerate, a collapse in 2025 is unlikely.' Senior economist at DBS Bank, Chua Han Teng, agrees that NODX of 16.5% y-o-y in the 1H2025 is unsustainable, with the front-loading of shipments eventually being followed by a 'payback' through decelerating trade and manufacturing production to materialise in the second half. 'The city-state's external demand will likely face downward pressures, due to still-high global trade frictions and continued uncertainty surrounding US tariffs, such as the potential imposition of US sectoral tariffs on semiconductors and pharmaceutical goods,' writes Chua. See Also: Click here to stay updated with the Latest Business & Investment News in Singapore Economists raise 2025 GDP forecast following 2Q flash estimate but stay wary on 2H Singapore, London are costliest cities for luxury spending New grant for local firms to seek advice, subsidies as Trump's tariffs bite Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? 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Straits Times
18-07-2025
- Business
- Straits Times
RHB Bank's Singapore unit to drive Malaysia lender's regional growth under new 3-year roadmap
Find out what's new on ST website and app. Singapore is part of RHB's group international business arm, which also covers Cambodia, Thailand, Laos and Brunei. SINGAPORE – The Singapore unit of Malaysian lender RHB will lead the bank's drive to expand in Asean in the next three years. Speaking on July 18 at the unveiling of the bank's new three-year roadmap for regional growth, the bank's managing director of group international business Danny Quah said that Singapore is a key growth engine to its international business arm. 'We will use Singapore as a growth engine, because we have been doing well here, and we have built enough fundamentals to be strong on its own to continue growing. It is also strong to be a strategic hub to the four countries that we have,' he said at a media briefing. Singapore is part of RHB's group international business (GIB) arm, which also covers Cambodia, Thailand, Laos and Brunei. GIB accounted for 12 per cent of the group's total income in 2024, with RHB Singapore contributing about 80 per cent of GIB's total income, said Mr Quah. 'RHB Singapore has been designated the group's regional hub due to its strong and consistent contribution to GIB, mature capabilities and strategic proximity to both customer networks and capital flows,' he added. Profit before tax for Singapore in 2024 nearly doubled, reaching $98.7 million, a 95.6 per cent jump from a year earlier. Meanwhile, slower growth was observed from other Asean businesses. Top stories Swipe. Select. Stay informed. Singapore 30% of aviation jobs could be redesigned due to AI, automation; $200m fund to support workers: CAAS Singapore HSA looking to get anti-vape cyber surveillance tool with AI capabilities Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences Singapore NTU upholds zero grade for student who used AI in essay; panel found 14 false citations or data Singapore Character counts as much as grades: Desmond Lee tells students after a class on race and culture Singapore Residents in South West District get help to improve employability, find career opportunities Life Kinokuniya opens third bookstore at Raffles City, weeks ahead of schedule Business DBS shares rally to a new record as STI clocks yet another high The Singapore unit also expanded its sustainable financing portfolio by 40 per cent to $972 million. Mr Goh Ken-Yi, chief executive of RHB Singapore, said that the bank is targeting the larger commercial banking clients here, of which some are listed companies, by supporting them in investment banking. The bank has also been supporting Singapore-based clients' expansions into Malaysia with financing and advisory services. 'We've also helped Singapore-based clients or international private equity firms with financing and M&A (mergers and acquisitions) advisory solutions to invest into Malaysia. In fact, we are actually marketing Malaysia and Singapore as a single hub to support our private equity and larger corporate clients,' he said. RHB is also optimistic about expanding its cross-selling within Singapore, and will make efforts to market to corporate investment banking clients, especially the C-suite clients, its retail banking experience, said Mr Goh. The lender is planning on expanding its secured lending approach and continuing efforts to move away from non-performing loans. 'When I joined RHB about 10 years ago, there was an active effort to pivot the business away from some of the industries and sectors that were hurting us and causing us a fair bit of non-performing loans, to one where we did a lot more secured financing, specifically in the real estate space,' Mr Goh said. Currently, about two-thirds of the bank's Singapore loan book is made up of real estate-related loans and it hopes to deepen its support for other sectors such as healthcare and construction, he added. Under the three-year roadmap, RHB aims to achieve a return on equity of 12 per cent by 2027, up from 10 per cent in 2024. It also targets to reduce cost-to-income ratio, which measures operational efficiency, to below 44.8 per cent, down from 46.7 per cent in 2024. It further aims to maintain a gross impaired loan ratio not exceeding 1.3 per cent by 2027, down from 1.47 per cent in 2024.
The Sun
18-07-2025
- Business
- The Sun
RHB Singapore drives regional growth with 12% ROE target by 2027
SINGAPORE: RHB Singapore, a subsidiary of Malaysia's fourth-largest banking group RHB, is set to play a crucial role in the bank's regional expansion strategy. The unit aims to achieve a return on equity (ROE) of 12% by 2027, supported by Singapore's favourable business environment and growing Southeast Asian markets. Singapore's low taxes, political stability, and strategic location continue to attract ultra-high-net-worth investors and financial institutions, reinforcing its position as a leading financial hub in the region. Earlier this year, RHB Singapore appointed Goh Ken-Yi as its new CEO to enhance digital capabilities and introduce innovative financial solutions. The bank's pretax profit surged by 95.6% year-on-year in 2023, reaching S$98.7 million ($76.82 million). 'RHB Singapore's exceptional progress exemplifies the kind of forward momentum we aim to replicate across our key markets,' said RHB Group Managing Director Mohd Rashid Mohamad during a press briefing. Beyond Singapore, RHB operates in Cambodia, Thailand, Laos, and Brunei. The bank reported an ROE of 10.04% in 2023, with plans to further improve efficiency by reducing its cost-to-income ratio to below 44.8% and gross impaired loan ratio to under 1.3% by 2027. Last year, these ratios stood at 46.7% and 1.47%, respectively. - Reuters
