Malaysia

EU deforestation ban creates a hazy trade future

23 Sep 2024

The European Union wants to ban agricultural imports from deforested land. The rules have laudable aims but will impact $400 bln worth of goods. Developing nations are already exporting elsewhere. To avoid losing vital supplies, Brussels can compensate farmers or lower standards.

Tiny Singapore’s chip hub retains a big punch

21 Jun 2024

NXP and Vanguard's new $8 bln factory in the country follows recent investments from GlobalFoundries and others. Singapore has an impressive edge in the semiconductor industry despite high costs and a shortage of space. Its neighbour Malaysia will soon test that advantage.

The world can survive a strong dollar – for now

13 May 2024

The greenback has gained 17% against major currencies in three years. Other countries avoided repeating past crises through better fiscal policies and less foreign borrowing. But in the long run a mighty buck will put economies under stress, especially in emerging markets.

Jho Low could create a new world of 1MDB pain

8 Aug 2023

The fugitive at the centre of Malaysia’s sovereign fund scandal, is in China. In this Exchange podcast Billion Dollar Whale co-author Bradley Hope explains why Beijing may soon give him up and how his return could be difficult for all involved, from global banks to celebrities.

Jho Low could rip scabs off 1MDB wounds

21 Apr 2023

The man at the centre of the sovereign fund scandal could be returned to Malaysia via a deal with China, a respected journalist says. It’s the final piece of the puzzle but given what Low knows, it would be a moment of public cheer and private fear for politicians and bankers.

Malaysia can move on from billion-dollar-whale hunt

8 Mar 2023

Kuala Lumpur is closer to recouping all debt from the 1MDB scandal after Abu Dhabi’s $1.8 bln settlement. Some mopping-up remains, though a punt to wrangle more out of Goldman Sachs looks a long shot. It’s time to draw a line under the ugly sovereign wealth fund saga.

Ex-Goldman conviction is partial justice for 1MDB

8 Apr 2022

A U.S. jury found Roger Ng guilty of corruption linked to the Malaysian fund. His ex-boss who helped organize the scheme may get a lesser penalty for cooperating with prosecutors; the Wall Street firm got off with a $5 bln fine. It’s an imperfect deterrent for future miscreants.

Glove maker’s governance spoils pandemic bounce

9 Dec 2021

Top Glove, the world’s largest maker of protective handwear, has won investor support for a third listing in Hong Kong. Labour concerns derailed the Malaysian firm’s earlier attempt when markets were hot. With shares back near pre-pandemic levels, the delay has cost it dearly.

Telenor dials up another promising Asian deal

23 Nov 2021

Following its jumbo Malaysian merger, the Norwegian telecom operator plans to combine its Thai unit with a rival owned by conglomerate CP. There’s a 25% premium on offer to sell, but $2 bln of intended synergies from the first transaction suggest sticking around is a better call.

Billion-dollar whales fill 1MDB’s wide net

28 Jul 2021

Malaysia has clawed back funds almost equal to the amount the U.S. says was misappropriated from the sovereign fund. After chasing down Goldman Sachs, it has plenty of targets left to cover $5 bln of unfunded dues. Infamous 1MDB’s shortfall could soon become a surplus.

Sea has a new reason to play a smart game

18 May 2021

The success of the $114 bln Southeast Asian giant’s gaming unit is tied to third parties like backer Tencent. Developing more of its own hits like “Free Fire” will provide a more stable core to offset losses in areas like e-commerce as rivals Gojek and Tokopedia tie up to compete.

Top Glove triple listing bid is a stretch

3 Mar 2021

The world’s largest rubber-handwear maker wants to sell shares in Hong Kong on top of Malaysia and Singapore. Firms with small home markets must often move to grow but few can juggle the complexities of three bourses. That may provide cover for it to ditch the least useful.

Goldman’s 1MDB pain looks light next to AmBank’s

1 Mar 2021

The Malaysian lender is paying what equates to 30% of its market value for its part in the sovereign fund scandal, more than four times the Wall Street firm’s ratio. Domestic politics is at play, but AmBank’s fine is ominous for global banks yet to draw a line under the affair.

Sea can pass on Southeast Asian deal frenzy

12 Jan 2021

The region’s hot tech companies, Tokopedia, Grab and Gojek, are mulling consolidation. Any of them could be swallowed by Singapore’s $106 bln gaming-to-shopping giant Sea which has a war chest of cash and rich stock. But boss Forrest Li has good reason to sit back.

Grab CEO will step into 2021’s tech limelight

21 Dec 2020

Anthony Tan has steered his $15 bln super-app through the pandemic. With growth in digital payments booming across Southeast Asia, Grab is now charging into wealth management and digital banking. A mooted merger with rival Gojek will only cement Tan’s rising star status.

Rubber-glove selloff gets out of hand

16 Dec 2020

The pandemic quadrupled the value of Malaysia’s Top Glove, the world’s biggest maker of protective handwear, to $13 bln. But investors eying vaccine developments are now deeply discounting its shares. As the herd hastily dumps Covid trades, there will be value left behind.

Subpar Asian trade deal shines in splintered world

16 Nov 2020

Fifteen nations accounting for 30% of global GDP will slash tariffs and ease the movement of goods in the region. India’s absence is among the disappointments of the long-awaited pact. Even modest progress counts for a lot considering the sad state of U.S. and UK trade affairs.

Goldman’s clawback is small but pointy

22 Oct 2020

CEO David Solomon and others will forfeit $174 mln of bonus payments to resolve the 1MDB bribery scandal. But there’s a question mark over former COO Gary Cohn, who cashed in when he went into politics in 2017. That career change shouldn't shield anyone from past sins.

Goldman fines are literally cost of doing business

22 Oct 2020

The Wall Street firm is drawing a line under the 1MDB scandal. A U.S. settlement worth under $3 bln looks trifling, but years of bad behavior cost it far more. The bank spent more on legal woes since 2012 than on rent or technology. Like those expenses, penalties are inevitable.

Goldman Sachs’ 1MDB scar is already fading

24 Jul 2020

It’s paying $2.5 bln to Malaysia over its role in the scandal, four times its fees. Next comes closure with U.S. regulators. The cost in cash and reputation no doubt stings, a bit. But it's too small to amount to more than one extra line on Wall Street’s mile-long rap sheet.