Latest news with #RM12.7bil

Popular weight-loss jabs trigger pancreas problems in some patients

The Star

3 days ago

Health
The Star

Second life for dead EV batteries

PETALING JAYA: With the number of electric vehicles (EVs) in Malaysia on the rise, talks have begun with EV producers on what to do with the almost 900,000 depleted lithium-ion batteries by 2050. This is because if they are improperly disposed, the depleted EV batteries could pose environmental and health challenges for the nation. CLICK TO ENLARGE 'We are currently working towards introducing an Extended Producer Responsibility (EPR) initiative for EV batteries. 'If you manufacture EVs, you will also be responsible for the batteries at the end of their lifespan. 'This includes the retrieval of the batteries for recycling or otherwise,' said outgoing Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad ( pic ) during a recent interview with The Star. Special interview with Nik Nazmi15 MAY 2025 —CHAN TAK KONG/The Star The issue of depleted EV batteries, he said, needs to be addressed as the number of EVs in the country is expected to rise in the near future. 'We are looking at how best to deal with the increasing number of EV batteries as the number of EVs is set to rise. ALSO READ: 'EV ecosystem urgently needed' 'This is likely to happen when the RON95 targeted petrol subsidy is implemented and with the entry of cheaper EV models,' he added. It was reported that based on an eight-year battery lifecycle and registration data of EVs in the country, the number of depleted EV batteries that will need to be processed is estimated to increase drastically from 40,000 in 2030 to 330,000 by 2040 and 870,000 by 2050. The number of new EVs registered in Malaysia has surged in recent years, rising from 274 units in 2021 to 21,789 units last year. For this year alone, a total of 7,942 EVs have been registered as of April, representing a significant year-over-year growth of 79.7% compared to the same period in 2024. China, which is currently the world's top EV producer, has an EPR policy to recycle 70% of EV batteries by 2030, while the European Union (EU) has regulations for EV manufacturers to design batteries aimed at recycling. ALSO READ: Consumers, manufacturers key to enforcing EV battery recycling In Japan, the country's automakers work with the local councils to conduct battery collection and reuse programmes while the United States has set aside over US$3bil (RM12.7bil) under its Bipartisan Infrastructure Law for battery material recycling and second-life research. Nik Nazmi said talks have begun with EV manufacturers here on the EPR, although no formal decision has been made yet. 'Talks have begun but informally. It was done – not on a formal platform – but we (the ministry and EV makers) had the chance to meet at events. 'We have yet to formalise talks with the EV manufacturers,' he said, adding that the EPR would come under the responsibility of the Environment Department. The department, said Nik Nazmi, is also drafting designated guidelines for the disposal of EV batteries and solar panels which are listed as scheduled waste. 'The designated guidelines are needed to address the increase of EVs in the country as well as the use of solar panels. 'More and more people are turning to solar energy, and there has been an increase in the use of solar panels over the past few years. 'This is in line with the nation's transition to renewable energy and the increasing electricity tariffs,' he said. Nik Nazmi said recycling EV batteries is one of the main approaches to be taken when dealing with depleted batteries. 'We have agreed that this is the best way forward as it will also lessen our dependence on mining for the minerals required to produce the batteries,' he added. The global EV battery recycling market is expected to grow to US6.5bil (RM27.56bil) in the next five years. According to the Malaysian Investment Development Authority (Mida), the nation's battery market is projected to grow at an annual rate of 5.28% from 2022 to 2027.

Alcatraz prison restoration plan gets cold reception from tourists.

The Star

18-05-2025

The Star

Alcatraz prison restoration plan gets cold reception from tourists.

Alcatraz Island, on which the prison is located, welcomes more than a million tourists each year. — Photos: Reuters United States president Donald Trump's plan to turn Alcatraz back into a federal prison was summarily rejected earlier this week by some visitors to the tourist site in San Francisco Bay, California. Trump revealed a plan recently to rebuild and expand the notorious island prison, a historic landmark known as 'The Rock' and operated by the US government's National Park Service. It's '... just an idea I've had', he said. 'We need law and order in this country. So we're going to look at it,' he added on May 5. Once nearly impossible to leave, the island can be difficult to get to because of competition for tickets. Alcatraz prison held fewer than 300 inmates at a time before it was closed in 1963 and draws roughly 1.2 million tourists a year. US Bureau of Prisons director William Marshall said he would vigorously pursue the president's agenda and was looking at next steps. 'It's a waste of money,' said visitor Ben Stripe from Santa Ana, California. 'After walking around and seeing this place and the condition it's in, it is just way too expensive to refurbish,' he said. 'It's not feasible to have somebody still live here,' agreed Cindy Lacomb from Phoenix, Arizona, who imagined replacing all the metal in the cells and rebuilding the crumbling concrete. The sprawling site is in disrepair, with peeling paint and rusting locks and cell bars. Signs reading 'Area closed for your safety' block off access to many parts of the grounds. Chemical toilets sit next to permanent restrooms closed off for repair. The former home of notorious gangster Al Capone and other notable inmates was known for tough treatment, including pitch-black isolation cells. It was billed as the US' most secure prison given the island location, frigid waters and strong currents. It was closed because of high operating costs. The island also was claimed by Native American activists in 1969, an act of civil disobedience acknowledged by the National Park Service. Alcatraz opened to the public in 1973 under the US National Parks. Mike Forbes, visiting from Pittsburgh, Pennsylvania, said it should remain a part of history. 'I'm a former prison guard and rehabilitation is real. Punishment is best left in the past,' Forbes said. No successful escapes were ever officially recorded from Alcatraz, though five prisoners were listed as 'missing and presumed drowned'. Today a 'Supermax' facility located in Florence, Colorado, about 185km south of Denver, is nicknamed the 'Alcatraz of the Rockies'. No one has ever escaped from that 375-inmate facility since it opened in 1994. US Congress in fiscal year 2024 cut the Bureau of Prisons infrastructure budget by 38% and prison officials have previously reported a US$3bil (RM12.7bil) maintenance backlog. The bureau last year said it would close ageing prisons, as it struggled with funding cuts. – FRED GREAVES/Reuters

The Star

07-05-2025

Business
The Star

Cautious sentiment likely to prevail

PETALING JAYA: A fluid macro environment and ongoing uncertainty over US trade tariffs negotiations will likely keep investors cautious until further clarity on such issues allow for better informed decisions. That is partly why analysts believe the 150-point rebound momentum from the April 9 low of 1,388 points the local equity market had made may be exhausted. As such, the FBM KLCI could experience range-bound trading in the short term until further details on the tariffs are made known. 'The FBM KLCI is expected to remain range-bound amid a fluid macro environment and ongoing uncertainty over US trade tariffs. While optimism over easing trade tensions and potential deals has supported the recent market rebound, no concrete developments have emerged from China. 'The prolonged delay continues to cloud market sentiment, keeping investors cautious and hesitant to take decisive positions,' Nixon Wong, chief investment officer at Tradeview Capital, told StarBiz. The 90-day reprieve to negotiate a tariff deal with the White House is set to be a catalyst for market trajectory and investors will keenly eye the approaching deadline in July. According to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz, the United States' four key demands on Malaysia are to address the trade imbalance, non-tariff barriers, technology safeguards and investment alignment. Should the 90-day period end with a proper deal being negotiated between Malaysia and the United States, it might form a catalyst to push the local market higher as investors prefer certainties. 'We believe investors have already accepted the fact that the trade environment ahead will be exposed in the elevated tariff (10% base rate at this juncture), hence investors are eager to have certainties about how many percent and what products are being excluded. 'Having said that, the short to mid-term market movement is being impacted by the outcome of negotiations and it is extremely tough to gauge the movement ahead,' said Kevin Khaw, assistant research manager at iFAST Capital. While it's still early days, optimists like Maybank Investment Bank are keeping their year-end target of 1,700 points for the index although in the near term, it expects the benchmark could hover around the 1,560-point levels. The foreign exchange (forex) market is where the negotiations between some countries and Washington are being played out live. The Taiwanese dollar and Japanese yen have appreciated against the greenback since talks began which has also seen other Asian currencies like the ringgit to rise to seven-month highs against the US dollar at RM4.22 yesterday. Would this see money inflows after the RM12.7bil in foreign net outflows year-to-date? Maybank noted the ringgit's strengthening against the US dollar has a strong positive correlation with the FBM KLCI and a stronger ringgit tends to add strength to the equities market. 'As such, we believe investors should warm up to Malaysian equities with more clarity on tariff discussions, and not forgetting Malaysia's numerous domestic policy initiatives. 'Positively, we note that equity foreign net selling has moderated in April and has been well absorbed by domestic institutions,' the bank said in a recent Malaysia strategy report. Khaw said the recent movement in the forex market is also driven by investors' expectation of a de-escalation of US-China trade tensions, followed by recent softening tones from both parties. He added despite the lower US dollar, from a ringgit perspective, it is still relatively expensive to import US goods, hence the conspiracy theory of the White House 'purposely' wanting a cheaper dollar to drive exports is untrue. Khaw believes the talk of a slowing global economic growth has led to a market consensus of one rate cut by Bank Negara, which has partly contributed to the recent rally on the local market. 'Investors are pricing in the possibility of recent ringgit strength alongside a possible 'insurance cut' from looming economic uncertainties, not to mention the upcoming subsidies rationalisation impact to consumers,' he said. Other analysts said the tariffs have just triggered a rebalancing in the US dollar, which has had a good run over the past decade with investors long in US assets like equities. The talk of de-dollarisation hence may be misplaced and the recent move in the greenback is more to do with rebalancing of asset allocation with global investors trimming their US dollar positions in US equities and the US treasuries as well. The weakness also coincided with the massive fiscal stimulus from Europe. Tradeview's Wong said any rate cuts by the Federal Reserve and fiscal support could weaken the US dollar, potentially driving capital flows into emerging markets like Malaysia—supporting the longer-term investment thesis. But even this may be quite challenging. 'The Nasdaq, being tech-centric, may see a stronger recovery following a better-than-expected results season. However, mixed corporate guidance and persistent trade uncertainties continue to weigh on investor sentiment, limiting fund inflows for now,' he said. Hence, Wong continues to favour quality, domestically oriented companies with strong fundamentals and attractive yields — particularly real estate investment trusts, financials and selected consumer staples. 'While we prefer clearer visibility before making significant growth allocations, current market levels appear attractive for selective bottom fishing, as much of the negative sentiment seems to be priced in. 'That said, investors should be prepared to endure heightened volatility in the near term, as trade-related news flow is likely to remain active and inconclusive until closer to the end of the 90-day period. Patience and selectivity will be key during this phase of uncertainty,' he warned. With the Trump administration stating it is close to making some deals with some countries on the tariffs issue and the softening stance on auto tariffs all point to the likelihood of another year of two halves for Bursa Malaysia in 2025.

Tariff negotiations to drive Bursa's direction

The Star

23-04-2025

Business
The Star

Tariff negotiations to drive Bursa's direction

PETALING JAYA: Bursa Malaysia's recovery hinges upon a positive outcome from Malaysia's tariff negotiations with Washington. Tradeview Capital chief executive officer and founder Ng Zhu Hann said all eyes are still on the outcome of ongoing negotiations between the United States and its trading partners during the current 90-day pause on country-specific tariffs – excluding China – enacted by President DonaldTrump on April 10. The FBM KLCI is down by 9% year-to-date. It hit a session low of 1,386.63 points on April 9 before closing at 1400.59 points, marking a 21-month low since July 2023 after Trump announced reciprocal tariff rates on US trading partners. The index has since rebounded, ending at 1486.25 points yesterday, after briefly testing the 1,500 mark during intraday trade on Monday. 'It (1386.63 points) was a very low level and I would say this is a strong support. I do not expect the index to revisit this level in the short term unless the tariff rhetoric from Trump escalates again. 'However, if the ongoing trade negotiations with the United States show no meaningful progress after the 90-day period, the FBM KLCI could potentially trend lower,' he told StarBiz. Meanwhile, foreign investors continued their net-sell streak for the 26th consecutive week last week, although outflows have moderated significantly. Net outflows tapered by 83.3% week-on-week to RM330mil from a net outflow of RM1.97bil in the previous week. This brings foreign investors' year-to-date net-sell value to RM12.7bil. Local institutions extended their support, cushioning foreign outflows, recording their 26th straight week of net buying with inflows of RM356.2mil. Ng said the easing of foreign fund outflows is not so much because anything has changed predominantly, but it is due to the selling of US assets including bonds and equities by global funds, driven by the unpredictability of Trump's policies. 'A majority of these fund flows have been directed to Europe, while a smaller portion has made its way to Asian markets. 'Nevertheless, foreign funds have not returned to Asia in a significant way. Investors remain cautious given that a number of countries in Asia are net exporters and run trade surpluses with the United States, making them vulnerable to trade tensions. 'Even if foreign investors are looking to return to Asian markets, they are only positioning a small bit, and this includes Malaysia,' he said. Hence, although the foreign sell-off has eased, it is largely because the magnitude of outflows in the first quarter was already quite substantial. At this juncture, Ng added it remains unclear whether selling pressures will persist. 'Unfortunately, aside from the fact that our market is undervalued, I do not see any big wave of buying. This suggests that the key catalyst for renewed foreign interest would be a resolution to the ongoing tariff negotiations,' Ng said. Last week, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said government officials are scheduled to meet with the US Trade Representative and other officials on April 24 for talks about the US tariffs imposed on the country. Rakuten Trade head of equity sales Vincent Lau said the recent visit by Chinese President Xi Jinping also provided some support to the FBM KLCI, which helped push the market to test the 1,500 level on Monday, although it did not close above that mark. Lau said the FBM KLCI had found its bottom when it hit a low of 1,386.63 points earlier this month. He opined that the index is not expected to see new lows, unless the trade tariff war between the United States and China escalates further. 'However, this will not likely happen as both the United States and China have indicated that they have reached the peak of their tariff hikes against each other. 'There is not much negative news for Malaysia at the moment, so the FBM KLCI should remain stable or trade sideways. 'The index is unlikely to see another sharp drop unless new catalysts emerge, such as major countries like Japan or India striking a deal with the United States in the ongoing negotiations,' he said. Given the current backdrop, Ng expects there to be weakness in some of the export plays like technology in the upcoming first quarter's earnings season, which is unavoidable. However, he noted that investors should be less worried because the weakness has already been factored in. 'Meanwhile, some positive surprises are expected from local consumer names. Investors can focus on import-oriented and domestically driven names, while avoiding export-oriented and technology players. 'Domestic consumer-related industries are more insulated and defensive. They are also less exposed to the impacts of tariffs or the ongoing trade war,' he said. Lau, however, projects that corporate results would mostly be flattish with no particular surprises on the upside or downside. Rather than focusing on any specific themes, Lau added that selected initial public offering (IPO) stocks that have dipped below their listing prices could present some opportunities. 'As we know, the IPO market is currently quite depressed, with many recent listings trading below their IPO prices. It may be worth looking into some of these names that are now undervalued,' he said This temporary suspension, initiated by Trump after more than 75 countries expressed interest in negotiating, is widely seen as a critical window for countries to reach new trade agreements with the United States. The 90-day period is expected to be a pivotal phase, as officials and markets closely monitor whether substantive progress can be achieved before the pause expires. Current market pricing implies that the Federal Reserve (Fed) will begin to cut short-term interest rates at the mid-June monetary policy meeting. Futures imply that by the end of the year, the central bank will have reduced its target for the federal funds rate target by 75 basis points (bps) to 100 bps. Last week, Fed chair Jerome Powell pushed back on these expectations. He noted that because the Trump's administration's tariff policies will pressure prices higher and depress growth, it will likely push the Fed away from its objectives for full employment and stable inflation. 'I do think we'll be moving away from these goals, probably for the balance of this year,' he said. The Fed will be patient for four reasons. First, the economic outlook is unusually cloudy. There is no precedent for the rapid increase in US tariffs that have been far larger than Fed officials anticipated. Knowing how to respond to an unprecedented change in trade policies is difficult on its own but even more so when those policies are in flux. Moreover, the imposition of higher tariffs may temporarily boost economic growth as households and businesses front-load their purchases in anticipation of higher prices later. The 5.3% surge in motor vehicle and parts sales in March was the biggest in two years and is, perhaps, the most compelling example.

Latest news with #RM12.7bil

Popular weight-loss jabs trigger pancreas problems in some patients

Second life for dead EV batteries

Alcatraz prison restoration plan gets cold reception from tourists.

Cautious sentiment likely to prevail

Tariff negotiations to drive Bursa's direction

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