VIENNA, May 3 — Seven Opec+ members are meeting today to make their first decision on oil-production quotas since the United Arab Emirates’ departure from the cartel, which added to the soaring price pressure unleashed by the Mideast war.

The UAE, one of the world’s top producers, announced April 28 it was withdrawing from the Organisation of the Petroleum Exporting Countries (Opec) and the expanded Opec+ group, after chafing at their production quotas. The withdrawal took effect on Friday.

Neither group has reacted publicly so far —meaning there will be intense focus on the tone of the statement at the end of Sunday’s online meeting by Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia and Saudi Arabia.

The production decision itself is already priced in by markets. The seven countries are widely expected to increase their quotas by 188,000 barrels per day (bpd), according to Arne Lohmann Rasmussen, chief analyst at Global Risk Management.

That is similar to a 206,000-barrel daily increase announced in March and April, subtracting the portion allotted to the UAE.

Quota question mark 

But raising the quota on paper may not have much impact on actual production, which is already short of the limit.

Untapped Opec+ reserves are mainly located in the Gulf region, and exports there are trapped by the blockade of the vital Strait of Hormuz, imposed by Iran in response to the US-Israeli strikes that started the war on February 28.

“Total Opec+ output with quota fell to 27.68 million bpd in March, against a monthly quota of 36.73 million bpd, a shortfall of approximately 9 million bpd driven almost entirely by war-related disruption rather than voluntary restraint,” said Priya Walia, an analyst at Rystad Energy.

The blockade is hitting Iraq, Kuwait, Saudi Arabia and the UAE. The latter’s production will no longer count towards Opec quotas.

Iran, whose exports are now the target of a retaliatory US blockade, is an Opec+ member but is not subject to quotas.

Russia, the group’s second-biggest producer, has been the main beneficiary of the situation. But despite soaring energy prices, it appears to be struggling to produce at the level of its current quotas as its own war in Ukraine drags on.

‘Big deal’ 

The UAE’s exit is “a big deal” for Opec, said Amena Bakr, an analyst at Kpler.

Previous withdrawals from the group by Qatar in 2019 and Angola in 2023 were less significant by comparison, she told a video conference on the UAE withdrawal.

Besides being the fourth-biggest Opec+ producer by output, the UAE has major untapped production capacity, an important lever when the group needs to regulate the market.

“The UAE had brought up grievances over its quotas” going back to 2021, said Bakr.

The UAE has invested massively in infrastructure in recent years, and state-owned oil company ADNOC plans to increase output by five million barrels a day by 2027 -- far above the country’s last quota of around 3.5 million barrels.

That makes the UAE a competitive player that can produce at low cost—potentially limiting the impact of efforts by Saudi Arabia and its allies to shape the market.

There is also the risk for Opec+ that other countries will leave such as Iraq and Kazakhstan, which have faced repeated accusations of surpassing their quotas. — AFP

HANOI, May 3 — Vietnam's consumer prices rose 5.46 per cent in April from the ‌same month last year, government data showed today, accelerating from 4.65 per cent in March, fuelled by higher energy costs due ‌to the Iran war.

The quickening of inflation was "due to higher domestic gas prices in accordance with global fuel prices," the National Statistics Office said in a report, adding rising material and transport costs also pushed up prices for services and construction.

April industrial production rose 9.9 per cent from a year earlier, higher than March's 4.6 per cent year-on-year expansion.

April exports ‌rose 21 per cent on year to US$45.52 billion, while imports ⁠rose 32.5 per cent to US$48.8 billion, ⁠the stats office said.

April's ⁠trade deficit widened to US$3.28 billion ⁠from US$677 million in ⁠March.

For the first four months of the year, exports rose 19.7 per cent to US$168.5 billion while imports ⁠increased 28.7 per cent to US$175.64 billion, creating a trade deficit of US$7.1 billion.

Foreign investment inflows in the first four months of this year rose 9.8 per cent to US$7.4 billion.

Public investment disbursement in the four-month period rose 16.4 per cent ⁠year-on-year to US$5.8 billion, accounting for 13.7 per cent of the government's full-year plan.

For the four months, Vietnam's ⁠trade surplus with the U.S. rose 24.4 per cent on year to US$46.9 ⁠billion, ⁠while the deficit with China expanded 33.4 per cent to US$46.4 billion.

Vietnam's Finance Ministry forecast inflation could reach 5.5 per cent this year, ‌above the government's 4.5 per cent target, driven mostly by the impact of the Iran war. — Reuters

WASHINGTON, May 2 — The war with Iran has boosted prices of globally traded natural gas by throttling exports from the Gulf. In West Texas, gas is so abundant that some producers must pay to have it taken away.

The war and Iran’s attacks on Gulf energy producers have halted 20 per cent of global liquefied natural gas (LNG) supply. Qatari LNG facilities have been damaged and tankers have been unable to sail through the Strait of Hormuz waterway at the Gulf’s entry because of Iranian threats to fire on them.

The crisis has exposed a major split in the global gas market: Import-dependent countries across Europe and Asia are scrambling for scarce supplies, but the US — the world’s largest gas producer, consumer and exporter — remains awash in fuel, with prices near 17-month lows. But US pipelines are full and LNG export plants are at capacity, so that cheap US gas cannot reach overseas buyers, creating a bifurcation much more stark than in the oil markets. Since the war with Iran began on February 28, gas futures at the US Henry Hub benchmark in Louisiana have dropped by as much as 12 per cent to a 17-month low of US$2.52 (RM10) per million British thermal units (mmBtu), while prices around the world have soared by as much as 84 per cent in Europe and 108 per cent in Asia, to around US$21 to US$22 per mmBtu.

By contrast, the international crude benchmark Brent is trading around US$111 a barrel, while the US benchmark is at US$104 a barrel, with both having risen more than 50 per cent as a result of the war.

‘Paying to take gas away’

The US has sufficient supply both to meet domestic demand and to fill the LNG export plants that chill gas to liquid form. However, those plants were already operating near maximum capacity before the war, so no matter how high global gas prices go, the US cannot turn much more gas into LNG for export.

US prices in the top shale field, the Permian Basin, are even lower than benchmark futures. Spot gas at the Waha Hub in West Texas has traded below zero almost every day this year, because gas pipelines out of the Permian are full, meaning there is no spare capacity to transport the fuel. Simply put, some producers have to pay others to take it away, as if it were a waste product. US gas production — already at a record 107.7 billion cubic feet per day (bcfd) in 2025 — is expected to keep rising to meet growing demand for power-hungry data centres and to supply new LNG export plants, according to a recent US Energy Department outlook.

Output is increasing also as oil producers increase output — and as their wells gradually produce more gas than they used to as oil reserves are depleted. Additional pipeline capacity is months away, at best.

“Meaningful transport relief doesn’t show up until late this year or early 2027, when larger pipeline projects are anticipated to start,” analysts at Bank of America said in a report.

Some parts of the country are more exposed to high international gas prices, including New England, which must import expensive LNG and burn oil to generate power during winter months because the region lacks enough connections to the national gas pipeline grid to meet heating demand.

‘Winners and losers’

Firms best able to take advantage of the global price dislocations from the Iran war, at least in the short term, have been those with excess LNG to sell. To replace gas deliveries cancelled by Qatar, energy firms around the world have purchased additional cargoes from US LNG producers such as Venture Global, the nation’s second-biggest LNG company behind Cheniere Energy.

“Venture Global is (relatively) new to the LNG game and had spot cargoes available to put out to the highest bidder,” said Bob Yawger, director of energy futures at Mizuho. “Suddenly everybody needs LNG now that QatarEnergy is out of the picture.”

US LNG capacity will almost double over the next five years from around 18 bcfd in 2025 to around 35 bcfd in 2030, based on the plants currently under construction.

US gas producers who sell to LNG companies, however, have not fared as well because they sell much of their output at the domestic price, which in addition to near-record production, has been held down by weak spring demand and ample supply in storage. Low US prices have even prompted some energy firms, such as EQT, the second-biggest US gas producer behind Expand Energy, to cut output while they wait for demand and prices to rise later in the year.

“Our strategic curtailments act as a form of storage, keeping gas in the ground (during) seasonally low periods of demand,” EQT CFO Jeremy Knop told analysts last week after the company reported earnings. — Reuters

TOKYO, May 2 — Japan spent at least ¥5.0 trillion (RM127 billion) in the foreign exchange market, according to multiple reports, in its first intervention to prop up the currency since 2024.

The yen, trading just shy of ¥160 to the dollar, is close to its level from the summer of 2024, when Japanese authorities spent billions of dollars to boost its value.

Officials had hinted in recent days at potential intervention for the currency, which has weakened against the dollar in recent months amid the Iran war and rising oil prices, as well as the gap between US and Japanese interest rates.

Thursday’s intervention was around ¥5.0 trillion-¥6.0 trillion, according to market participants’ estimates based on current account deposit data released by the Bank of Japan yesterday, Jiji Press and the Nikkei business daily reported.

The Yomiuri Shimbun reported similar figures today, citing an unnamed government source as confirming that the government had intervened.

The reports come after Japan’s finance minister hinted strongly Thursday that Tokyo was close to intervening in the market to support the yen, after the currency slipped to its lowest level against the dollar since mid-2024. — AFP

WASHINGTON, May 2 — Bankrupt discount carrier Spirit Airlines ceased operations today, the industry’s first casualty linked to the Iran war, after failing to secure creditor support for a US government bailout plan.

The collapse of the first carrier due to a doubling ‌in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is a blow to President Donald Trump, who had proposed US$500 million (RM1.9 billion) to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.

No US carrier of Spirit’s size — it accounted for 5 per cent of US flights at one point — has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.

A departure board displays cancelled Spirit Airlines flights at Orlando International Airport, as the airline announced it was ceasing operations early this morning following an impasse in talks with some creditors on a US$500 million government bailout plan, in Orlando, Florida May 2, 2026. — Reuters pic

All flights cancelled, rivals to benefit

A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told Reuters late yesterday.

“Unfortunately, despite the Company’s efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” Spirit said in a statement announcing “an orderly wind-down of operations.”

All flights have been cancelled, the statement said, asking passengers not to go to the airport.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to data from aviation analytics firm Cirium.

A spokesperson said Spirit had notified the Federal Aviation Administration before halting operations, declining to comment further.

Global carriers are contending with surging jet fuel prices after the US-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz. Spirit was already struggling to ‌turn a profit before the fuel shock.

Spirit built its brand around affordable fares for budget-conscious travellers ready to eschew add-ons like checked bags and seat assignments.

That demand tapered off quickly ⁠after the Covid-19 pandemic, as passengers preferred to opt for comfort and experience-based travel, leaving ultra-low-cost ⁠carriers struggling to adapt.

Spirit’s shutdown will benefit its rivals like JetBlue Airways and Frontier Airlines, who themselves are reeling from the cost ⁠shock. Spirit’s volatile over-the-counter stock plunged 25 per cent yesterday, ⁠while Frontier rose 10 per cent and JetBlue gained 4 per cent.

Trump ⁠said yesterday that the White House had given Spirit and its creditors a final rescue proposal, after talks hit an impasse over a US$500 million financing package that would have helped the airline keep operating through bankruptcy.

“If we can help them, we will, but we have to come first,” Trump told reporters. “If we could do it, we’d do it, but only if it’s ⁠a good deal.”

A Spirit Airlines operational update notice at Orlando International Airport, after Wall Street Journal reported that Spirit Airlines is preparing to cease operations around 3am today (0700 GMT/3pm Malaysian time), after hitting an impasse in talks with some creditors on a US$500 million government bailout plan, in Orlando, Florida May 2, 2026. — Reuters pic

Fuel-price shock threatens weaker airlines

The collapse shows how the Iran war’s fuel-price shock has exposed weaker airlines.

Spirit’s restructuring plan assumed jet fuel costs of about US$2.24 a gallon in 2026 and US$2.14 in 2027, but prices had climbed to around US$4.51 a gallon by the end of April, leaving the carrier unable to survive without fresh financing.

Transportation Secretary Sean Duffy told Reuters he had tried to get many airlines to buy Spirit but found no takers. “What would someone buy?” Duffy asked. “If no one else wants to buy them, why would we buy them?”

A creditor close to the deal said, “The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse. Given that, ⁠the company should make its intentions clear for the sake of its customers and employees.”

Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. But those plans derailed after the war triggered a spike in jet fuel prices, ⁠upending Spirit’s cost projections and complicating its bankruptcy exit.

The airline flew around 1.7 million US domestic passengers in February, with a 3.9 per cent market share, down from 5.1 per cent last year, Cirium data showed.

After Spirit’s ⁠announcement, major US carriers ⁠rolled out rescue-fare options for affected passengers. Frontier announced systemwide discounts and plans to add summer routes, JetBlue offered US$99 fares through Wednesday, Southwest introduced special fares, United capped prices on one-way tickets and American added rescue fares while reviewing options to boost capacity on key routes.

Last month, Trump said his administration was looking to buy the embattled carrier at the “right price.”

Sources said that the administration had proposed US$500 million in financing in ‌exchange for warrants equivalent to 90 per cent of Spirit’s equity.

There had been disagreements inside the Trump administration over whether and how to fund the bailout, the Wall Street Journal reported, citing people familiar with the matter. — Reuters

KUALA LUMPUR, May 2 — The continued strengthening of the ringgit and the improved economic projections by the International Monetary Fund (IMF) indicate the fundamental strength of the country’s economy and investor confidence in the direction of the Malaysia Madani administration.

The Political Secretary to the Minister of Finance (MOF), Muhammad Kamil Abdul Munim, said this development also sends a clear message that Malaysia is re-emerging as a trusted economic and investment destination in the region.

According to him, CNBC Indonesia reported that the ringgit recorded an appreciation of around 2.64 per cent against the United States (US) dollar as at the end of April 2026, thus placing Malaysia at the top among  Asian currencies, followed by China and Singapore.

“What is even more commendable is that this trend is not temporary or speculative.

“On the contrary, it shows a consistent and sustained trend due to the fundamental strength of the country’s economy and investor confidence in the direction of the Malaysia Madani administration,” he said in a statement today.

Muhammad Kamil said that the ringgit’s strength today is not coincidental, but is supported by factors such as sustained national economic growth, positive foreign investment inflows, political stability, clear economic reforms, and international investors’ confidence in the government’s policies and Bank Negara Malaysia.

“The strengthening of the ringgit is not just a number in the financial market, but a symbol of the world’s confidence in the stability and future of Malaysia’s economy,” he said.

Muhammad Kamil said that at the same time, the IMF has raised its projection for Malaysia’s gross domestic product (GDP) growth in 2026 to 4.7 per cent from 4.3 per cent previously, reflecting greater confidence in Malaysia’s economy despite global economic uncertainty.

“The increase in this projection clearly shows that Malaysia is on a stronger economic path compared to many other countries, driven by robust domestic demand, a diverse export base, and investor confidence in the stability of the country’s policies,” he added. — Bernama

KUALA LUMPUR, May 2 — The ringgit is expected to trade within a narrow range next week, hovering between RM3.96 and RM3.98 against the US dollar ahead of key United States data.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the focus next week would be on the US labour market data, particularly the Nonfarm Payrolls (NFP).

“This is a critical data point as the Federal Reserve needs to see convincing evidence that the labour market is softening. Otherwise, it is likely to maintain its restrictive monetary stance,” he told Bernama.

The ringgit was marginally lower against the US dollar at 3.9690/9740 on Thursday, compared with 3.9630/9670 at the end of the previous trading week.

The local note traded weaker against a basket of major currencies this week.

It eased against the British pound to 5.3593/3661 from 5.3429/3483, depreciated against the euro to 4.6417/6476 from 4.6312/6358, and it shaved versus the Japanese yen to 2.4907/4942 from 2.4808/4834.

However, the ringgit traded mostly higher against its Asean peers.

It strengthened against the Thai baht to 12.1711/1932 from 12.2183/2363, elevated against the Philippine peso to 6.45/6.47 from 6.52/6.53, and gained versus the Indonesian rupiah to 228.7/229.2 from 230.0/230.3.

Meanwhile, it was marginally lower versus the Singapore dollar to 3.1061/1103 from 3.1009/1043.

The local market was closed on Friday in conjunction with the Labour Day public holiday. — Bernama

KUALA LUMPUR, May 2 — Bursa Malaysia’s benchmark index is expected to trade in a range-bound mode with a cautious bias within the 1,700-1,730 range next week.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said this is due to the absence of strong positive catalysts.

He said volatility is likely to remain elevated as markets track developments in West Asia and oil price movements.

“We maintain a cautious outlook on the domestic front, despite selective bargain hunting, as persistent geopolitical tensions and elevated crude oil prices raise concerns over inflation and cost pressures.

“While energy-related stocks may find some support, broader market participation is expected to stay subdued as investors adopt a defensive stance,” Thong told Bernama.

For the shortened week just ended, Bursa Malaysia traded mixed, with sentiment influenced by the West Asia conflict, US megacap earnings, the United Arab Emirates’ decision to exit the Organisation of the Petroleum Exporting Countries and its allies, and elevated oil prices.

Bursa Malaysia and its subsidiaries were closed yesterday (May 1), in conjunction with the Labour Day public holiday.

On a Thursday-to-Friday basis, the FBM KLCI added 1.68 points to 1,722.02 from 1,720.34 a week earlier.

On the index board, the FBM Top 100 Index gained 10.76 points to 12,560.06, the FBM Emas Index increased 8.02 points to 12,723.74, the FBM Emas Shariah Index grew 131.75 points to 12,718.36, the FBM ACE Index fell 34.21 points to 4,618.11, while the FBM Mid 70 Index climbed 13.54 points to 18,085.97.

By sector, the Financial Services Index sank 337.78 points to 19,885.03, the Industrial Products and Services Index added 3.95 points to 196.31, the Energy Index increased 10.36 points to 840.67, and the Plantation Index improved 94.05 points to 8,939.31.

Weekly turnover slipped to 14.15 billion units valued at RM13.03 billion from 16.39 billion units valued at RM15.16 billion a week earlier.

The Main Market volume decreased to 8.86 billion units valued at RM111.94 billion from 9.33 billion units valued at RM13.66 billion previously.

Warrants turnover reduced to 4.02 billion units valued at RM539.16 million compared with 5.00 billion units valued at RM681.05 million last week.

The ACE Market volume slid to 1.47 billion units valued at RM553.62 million from 2.06 billion units valued at RM812.78 million in the previous week. — Bernama

WASHINGTON, May 2 — President Donald Trump said yesterday that he will hike US tariffs on cars and trucks from the European Union next week, charging that the bloc is not complying with an earlier trade deal.

The pact, which was struck last summer, had capped the US tariff on EU autos and parts at 15 per cent, which is lower than the 25-per cent duty that Trump imposed on many other trading partners.

These sector-specific duties were not affected by a Supreme Court ruling earlier in the year that struck down a swath of Trump’s global levies.

But the US leader said yesterday: “Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States.”

“The Tariff will be increased to 25 per cent,” he wrote on his Truth Social platform.

He told a Florida event later Friday that Washington had informed Germany of his threat because “they and other European nations have not adhered to our trade deal.”

He accused German automakers like Mercedes-Benz and BMW of ripping off Americans.

Trump’s announcement came a day after his renewed criticism of German Chancellor Friedrich Merz. Trump told Merz to focus on ending the Ukraine war instead of “interfering” on Iran.

Germany would likely be hit hard by a sharp vehicle tariff, as it is responsible for a significant amount of EU auto exports.

Reacting to the announcement, a European Commission spokesperson told AFP: “Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests.”

The spokesperson added that the bloc is implementing its commitments “in line with standard legislative practice” and keeping the Trump administration updated during this process.

Last July, the EU had laid the groundwork for possible retaliation if talks with Washington fell through—preparing a list of US goods that could be targeted.

‘Light a fire’ 

“President Trump has clearly lost patience with EU efforts to implement its commitments under the bilateral trade deal concluded months ago,” former US trade official Wendy Cutler told AFP.

She said Trump appeared to be “hoping to light a fire under Brussels to accelerate its domestic procedures.”

His threats to the EU are reminiscent of a similar move against South Korea months ago, added Cutler, who is now senior vice president at the Asia Society Policy Institute.

In late March, EU lawmakers gave their green light to the bloc’s tariff deal with Trump, but with conditions.

A large majority of EU lawmakers agreed to cut EU tariffs on some US imports, as a first step towards implementing the 2025 deal, but they also sought additional safeguards.

Although the European Parliament has given its conditional approval to the EU-US trade pact, before the deal is implemented by the bloc, it still needs to be negotiated with EU states.

The new threat on European cars “explain why many small businesses expect to be cautious” with Trump’s tariffs, said Dan Anthony, who heads “We Pay the Tariffs,” a coalition of nearly 1,200 small businesses.

“You never know what might trigger the next tariff threat,” Anthony added in a statement.

In April, EU trade chief Maros Sefcovic was in Washington to meet with counterparts including US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer.

At the time, he said the EU was also seeking more progress in easing the effects of still-steep US steel tariffs, adding that talks were going in a positive direction.

The United States is the second largest market for new EU vehicle exports, after the United Kingdom, according to a 2025 fact sheet by the European Automobile Manufacturers’ Association.

Over a fifth of EU vehicle exports went to the United States.

Germany alone exported some 450,000 vehicles to the United States in 2024, according to the VDA industry group. But that figure has since slipped. — AFP

PARIS, May 1 — The closure of the Strait of Hormuz as well as tensions in the Red Sea are reshaping trade routes, with Africa becoming a hub of global container ship traffic, according to logistics and maritime sources.

Over the past two months, the blockade has also pushed shipowners to find alternative land corridors to deliver foodstuffs and manufactured goods by truck, as they can no longer reach the Gulf’s coastal countries by sea.

What are the alternative routes for delivering to Gulf countries? 

The Saudi port of Jeddah on the Red Sea is becoming a new regional “hub”, where ships from maritime giants MSC, CMA CGM, Maersk and Cosco arrive via the Suez Canal.

Cargo then leaves by truck along a desert highway to deliver to places such as Sharjah, Bahrain and Kuwait, which have not been served by sea for the past two months.

“The port of Jeddah is not at all sized to handle such import volumes and a port congestion situation is emerging,” Arthur Barillas de The, cofounder of freight forwarder Ovrsea, told AFP.

According to data from Kpler Marine Traffic, 11 container ships were docked in Jeddah yesterday, with nine waiting, and an average wait of 36 hours before unloading compared to 17 hours the previous week.

A picture taken March 1, 2022 shows a view of cranes and shipping containers at a loading dock of Jeddah’s Islamic Seaport on Saudi Arabia’s western Red Sea coast. Locally, over the past two months, the blockade of the Strait of Hormuz has also prompted shipowners to find alternative land routes to deliver, by lorry, foodstuffs and manufactured goods that can no longer reach the Gulf’s coastal countries by sea. — Reuters pic

Shipowners have said they will use three ports outside the Strait of Hormuz — Oman’s Sohar, and the UAE ports of Khorfakkan and Fujairah, which are connected by land from the United Arab Emirates.

The port of Aqaba in Jordan serves as a base for sending goods to Baghdad and Basra in Iraq, while a Turkish corridor is also allowing goods into northern Iraq.

On international routes, why are Asia-Europe container ships avoiding the Suez Canal? 

The situation started well before the war in Iran but is very much connected to the conflict.  Avoiding the Red Sea from the Bab al-Mandeb Strait to the Suez Canal dates back to November 19, 2023 and the first attack on a container ship by Iran-backed Houthi militias from the coast of Yemen, said CyclOpe, a specialist commodities publication.

The rerouting of ships has now become systematic, said Ronan Boudet, head of container intelligence at Kpler.

They skirt around Africa by following its eastern coast as far as the Cape of Good Hope in southern South Africa before heading back north towards Europe and the Mediterranean.

“With the current situation in the Gulf, we have put several more coins in the machine, it’s not going to get better anytime soon,” Edouard Louis-Dreyfus, chairman of French shipping giant Louis Dreyfus Armateurs, told AFP.

“Today, 70 per cent of the freight traffic that went through the Red Sea in 2023 is being rerouted via the Cape of Good Hope,” added Yves Guillo, a supply chain expert at Efeso, a management consultancy in Paris.

According to data from the International Monetary Fund’s PortWatch platform based on ships’ GPS signals, commercial vessel traffic via the Cape of Good Hope has more than tripled in three years, while traffic through the Bab al-Mandeb Strait has fallen by more than half.

Between March 1 and April 24 this year, an average of 20 commercial vessels went round the Cape of Good Hope every day compared with six in the same period in 2023.

By comparison, traffic in the Red Sea has plummeted: from 18 transits per day through Bab al-Mandeb between March and April 2023, the average fell to five three years later.

People sit on a bench on the Sheikh Jaber al-Ahmad al-Sabah Causeway as a Zhonggu Shipping container ship sails past on its way towards the port of Shuwaikh in Kuwait City on February 28, 2026. — Reuters pic

What are the consequences? 

Transport times have lengthened between Asia and Europe by an average of two weeks and costs have risen because 30 to 50 per cent more fuel is needed and 10 to 20 per cent more ships to ensure the same frequency of service, said Guillo.

The average price to transport a standard 40-foot container on the main shipping routes increased by 14 per cent in April compared to the same period last year, he added, citing changes in the Drewry freight index.

Large differences exist between routes: some African ports are seeing their activity increase. The Tanger Med Port Authority said it handled 11 million standard containers in 2025 — up 8.4 per cent.

But Egypt lost toll revenues from the Suez Canal, which make up a large part of its income. According to CyclOpe, in 2024 it lost US$7 billion — a drop of more than 60 per cent compared with 2023. — AFP

BRUSSELS, May 1 — The European Union and South American bloc Mercosur will today implement a contentious free trade agreement that the EU in particular hopes will benefit exporters and calm critics, even if it cannot fully offset the blow from US tariffs.

Backers including Germany and Spain say the agreement will help compensate for the hit from ‌US President Donald Trump’s tariffs and reduce reliance on China for critical minerals. France and other critics argue it will increase imports of cheap beef and sugar and undercut domestic farmers, and environmentalists say it will increase rainforest destruction.

Either way, economists caution that the economic gains from this pact and others concluded in recent months by the EU will be modest and are unlikely to fully make up for lost US trade.

The European Parliament, whose approval is required, voted in January to challenge the agreement in the EU’s top court, which could take up to two years to rule, but the European Commission decided to provisionally apply the deal from May 1.

Supporters hope the EU’s largest ever agreement in terms of tariff reductions, which took 25 years to negotiate, will swiftly benefit EU exporters so that when the EU assembly does vote, perhaps in two years’ time, the advantages will be clear.

Trump prompts trade deal dash

Alongside Mercosur, the EU has rushed to conclude trade agreements with India, Indonesia, Australia and Mexico since Trump’s re-election.

The accords help to shore ‌up free trade at a time when Trump’s tariffs and Chinese export curbs on critical minerals undermine a rules-based global order.

The European bloc is also ⁠hoping the agreements will help offset a decline in exports to the United ⁠States of 15 per cent or more and a hit to GDP of some 0.3 per cent this year alone.

However, Carsten ⁠Brzeski, global head of Macro at ING Research, ⁠said it was hard to see ⁠the new trade relationships replacing the United States.

“Put simply, GDP per capita in the US is by far larger than in these new trading partners,” he said.

Brazil's President Luiz Inacio Lula da Silva shows the signed decree enacting the Trade Agreement between the European Union and Mercosur at the Planalto Palace in Brasilia April 28, 2026. — AFP pic

The European Commission has estimated the Mercosur agreement will boost EU GDP by 0.05 per cent in 2040, while the India agreement, which the EU has dubbed the “mother ⁠of all deals”, could add 0.1 per cent to GDP, according to the Kiel Institute for the World Economy.

Those benefits are also at least a decade away, when the deals are fully implemented, whereas pain from Trump’s tariffs has been immediate.

China already there

EU companies will also face fierce competition in these markets, where Chinese rivals have been steadily building a presence for two decades.

“The elephant in the room is China,” said Lucrezia Reichlin, professor of economics at the London Business School.

“And this is not just about tariffs. If you look at what China has done in Asia and in Africa, it has been about investment ⁠and the energy transition, too.”

Maximiliano Mendez-Parra, principal research fellow at ODI Global, said much had changed since he co-authored a report for the European Commission in December 2020 that forecast a 0.1 per cent increase in EU GDP from the EU-Mercosur deal. Since then China has ramped ⁠up sales of vehicles and machinery, items that the EU wants to export, Mendez-Parra said.

Tariff reductions should help EU companies compete more effectively against often low prices ⁠of Chinese goods, ⁠but the challenges are increasing.

China has already begun the task of offsetting US tariffs, reporting a record trade surplus of nearly US$1.2 trillion in 2025, led by booming exports to non-US markets.

Global Trade Alert estimated that US tariffs led to some US$150 billion of Chinese exports being redirected, with Asean countries absorbing more than US$70 billion of extra Chinese goods, and ‌sharp increases, too, for Latin America, sub-Saharan Africa and the Gulf.

So, while the EU’s trade accords should help, the EU will not offset lost US exports without looking internally. Some 60 per cent of EU exports are from one EU country to another and a more efficient and competitive single market could easily compensate. — Reuters

BERLIN, May 1 — Executive pay around the world has risen sharply in recent years, while all other workers have had less and less money at their disposal, according to an analysis by Oxfam released today, reported German Press Agency (dpa).

The 1,500 highest-paid corporate executives received an average of around US$8.4 million (RM33.3 million) last year, Oxfam, an international confederation of aid and development organisations, said.

Adjusted for inflation, that amounted to an 11 per cent increase in executive pay compared with 2024 and a 54 per cent rise compared with 2019, according to Oxfam.

The calculations were based on data from 1,500 companies in 33 countries from the S&P Capital IQ database, which contains information on listed and private companies worldwide.

By contrast, the inflation-adjusted average income of the global workforce stood at US$17,156 last year, Oxfam said.

That was 0.5 per cent higher than in 2024, but 12 per cent lower than in 2019.

The figures are based on data from the United Nations (UN)’s International Labour Organisation (ILO) and the International Monetary Fund (IMF).

The decline in the number of people living in extreme poverty despite having work has also slowed significantly in recent years.

So-called working poverty fell by an average of seven per cent a year between 2000 and 2019. Since 2020, that rate has more than halved to three per cent.

The current crisis in the Gulf could make the situation worse, the study’s authors warned.

According to the report, the UN Development Programme has warned that, in a worst-case scenario, 32 million more people could fall into poverty as a result of the Iran conflict.

To address the problems, Oxfam called for countries to draw up realistic, time-bound plans to reduce inequality. These should include clear targets and regular reviews.

The organisation also called for taxes on the super-rich, as well as stricter rules on lobbying and the financing of political campaigns by wealthy individuals. — Bernama-dpa

KUALA LUMPUR, May 1 — As artificial intelligence (AI) and automation accelerate, they are reshaping how we work while putting Malaysia’s workforce to the test, requiring greater resilience and adaptability to remain relevant in an increasingly complex and uncertain job landscape.

The group chief executive officer of Talent Corporation Malaysia Berhad, Biruntha Mooruthi, said that approximately 697,000 workers in Malaysia are expected to be significantly affected by AI, digitalisation, and the green economy across 22 sectors within the next three to five years.

In this context, the ability to stay relevant no longer depends solely on qualifications but rather on the capacity to adapt, upgrade skills, and transition into higher-value roles.

Accordingly, the role of workforce development institutions, particularly agencies under the Ministry of Human Resources, becomes critical in strengthening the national talent ecosystem through upskilling programs, reskilling initiatives, and talent matching aligned with industry needs.

According to Biruntha, service sectors such as hospitality, tourism, and retail, as well as public and air transportation sectors driven by intelligent operating systems, are among the most critical in the short to medium term.

Also affected are manufacturing sectors such as oil and gas, which are moving toward smart production through robotics and Industry 4.0 technologies, as well as the healthcare sector, which is increasingly reliant on digital health, AI-driven diagnostics, and patient data management.

“However, these impacts are not evenly distributed. They are more concentrated in sectors that rely heavily on routine, data-intensive tasks and are rapidly moving toward automation,” Biruntha told Bernama.

She added that TalentCorp’s focus is not only on identifying affected sectors, but also on ensuring that talent development interventions are tailored according to sector, job role, and risk level.

She explained that AI should not be viewed as a threat to jobs, but rather as a ‘job transformer’- reshaping the career landscape and serving as a catalyst for a more productive and competitive economy.

This aligns with findings from TalentCorp’s impact study, which identified around 120 new job roles expected to emerge in the near future.

Of this total, 73 per cent is concentrated in critical roles such as AI Architects and Data Scientists, followed by 18 per cent in the green economy — such as Environmental, Social and Governance (ESG) Officers and EV Battery Managers — while the remaining nine per cent involves emerging technologies such as Autonomous Vehicle Technicians.

“Accordingly, TalentCorp’s focus is to ensure that Malaysia’s workforce is prepared to fill these new roles with the relevant skills and the ability to adapt to technology-driven jobs,” she said.

Among the key challenges is the mismatch between workforce skills and rapidly evolving industry needs.

“AI is accelerating changes in job scopes, while levels of digital literacy, data skills, and AI understanding among workers still need to be strengthened. At the same time, there is a significant gap in technology adoption rates between large companies and small and medium enterprises (SMEs),” she said.

She added that the labour market must shift from a qualification-based approach to a skills-based approach to ensure that mid-career workers, fresh graduates, and high-risk groups can be matched with opportunities based on their actual capabilities.

Meanwhile, Institute for Data Innovation and Artificial Intelligence (IDEA-AI) chief executive officer and director Prof Dr Mohd Saberi Mohamad said AI disruption will occur mainly at the task level, with most jobs evolving into ‘AI-augmented’ roles where workers collaborate with technology to boost productivity rather than being replaced.

While the shift towards an AI-integrated economy is accelerating, he observed that Malaysia’s workforce shows a moderate but uneven level of readiness across sectors.

Although awareness of AI is increasing, driven by national initiatives and media exposure, a gap remains in practical, hands-on capabilities in real-world business settings, he said.

“To remain competitive, the system must evolve by integrating AI, data, automation and broader digital competencies across all programmes,” he said.

He added that Malaysia’s ability to benefit from AI-driven job creation will depend on the effectiveness of reskilling and upskilling efforts, particularly those focused on human-centric skills such as critical thinking, creativity and leadership.

He also highlighted that Malaysia’s Technical and Vocational Education and Training (TVET) system remains a key pathway for developing a job-ready workforce, given its strong emphasis on practical training.

However, he noted that TVET curricula must be more agile and frequently updated to keep pace with rapid technological change, while instructors require continuous upskilling in AI knowledge and tools.

“Beyond technical training, there is an increasing need to incorporate higher-value skills such as problem-solving, AI integration and decision support to better prepare graduates for evolving job roles,” he said.

He emphasised that TVET does not require a complete overhaul, but rather targeted reforms, including stronger industry collaboration and faster curriculum updates.

Mohd Saberi also highlighted a gap in the national skills ecosystem, noting the absence of a dedicated AI framework, including a standalone AI National Occupational Skills Standard (NOSS) under the Department of Skills Development (JPK).

In addition, he said there is no standalone AI body of knowledge under the Malaysia Board of Technologists (MBOT), although one has been developed by the Malaysian Qualification Agency (MQA). — Bernama

JOHOR BAHRU, May 1 — Digitalisation and automation of micro, small and medium enterprises (MSMEs) have been identified as one of the five key focus areas in the Business Strategic Plan (BSP) 2022-2030 to accelerate the adoption of digital technology and improve productivity and operational efficiency.

SME Corporation Malaysia (SME Corp) chief executive officer Rizal Nainy said the initiative is important given that MSMEs still face major challenges in digitalisation efforts, specifically involving a combination of cost constraints and a lack of expertise among industry players.

He said cost is one of the biggest barriers, as the initial investment required for digitalisation is considered high and beyond the means of some MSMEs.

“MSMEs tend to view digitalisation as an additional expense rather than a strategic investment, especially when the return on investment (ROI) cannot be seen in the short term,” he told Bernama recently.

In addition, the lack of expertise is also a critical challenge, as there is a knowledge and digital skills gap among the workforce.

According to him, without sufficient skills, MSMEs find it difficult to implement technology-based projects such as information and communications technology (ICT), data analysis, and digital marketing, and also face difficulties in obtaining expert manpower compared to larger companies.

He said that in Johor, the level of MSME digitalisation shows positive development based on the 2023 Economic Census by the Department of Statistics Malaysia (DOSM), with computer usage reaching 97.6 per cent, Internet usage (97.3 per cent), and website usage at 79.0 per cent in 2022.

In terms of e-commerce, Rizal said a total of 4,460 MSMEs in the state carried out transactions in 2022, compared to 3,212 in 2015.

E-commerce revenue amounted to RM20.8 billion in 2022, with an average annual growth of 10.1 per cent, reflecting increased awareness of the importance of digitalisation among MSMEs, he said. — Bernama

DHAKA, May 1 — Bangladesh yesterday signed a deal with US aircraft manufacturer Boeing to buy 14 planes for its national carrier Biman Bangladesh Airlines, the two sides announced—the airline’s biggest-ever order, in a deal valued at $3.7 billion.

Dhaka’s state-run BSS news agency called it the “biggest modern fleet expansion” for the national airline, under an agreement hammered out last year as part of a tariff deal with the United States.

The deal calls for the delivery over the next decade of eight 787-10 Dreamliners, two 787-9 Dreamliners and four single-aisle 737-8 MAX jets, the company’s “largest-ever order”, the two sides said in a joint statement.

The 787-10s will be used to serve destinations in the Middle East, while the 787-9s will be used for long-haul flights to Europe and North America.

“The new fuel-efficient, technologically advanced aircraft will modernise Biman’s fleet, sharpen operational performance, and extend its international route network,” Biman CEO Kaizer Sohel Ahmed was quoted as saying.

The contract was signed at a formal ceremony in Dhaka.

Bangladesh has a reported 19 aircraft in its current fleet, an estimated 14 of them from Boeing.

Biman currently serves 22 international destinations from Dhaka, with its longest flight linking the Bangladeshi capital to Toronto via Istanbul.

The purchase was agreed in August 2025 by the caretaker government which ran the South Asian nation of 170 million people after a 2024 revolution, until a new government was elected in February.

Bangladesh, the world’s second-biggest garment manufacturer, struck a trade deal with the United States to scale back President Donald Trump’s punishing tariffs.

The United States represents 20 percent of Bangladesh’s ready-made garments exports.

Dhaka proposed buying Boeing planes and boosting imports of US wheat, cotton and oil to help narrow its trade deficit, which Trump used as justification for imposing painful levies.

But an initial proposed 25 aircraft was slashed to 14.

The deal sparked frustration in Europe, which had been in discussion to sell Airbus planes to Bangladesh.

Trump threatened Bangladesh with 37 percent tariffs, more than double the then 16 percent on cotton products. That was scaled back to 20 percent after the deal.

Textile and garment production accounts for about 80 percent of exports in Bangladesh and the industry has been rebuilding after the deadly 2024 unrest that toppled the government. — AFP

NEW YORK, May 1 — Oil prices struck a four-year high yesterday on worries about a resumption of hostilities in the Middle East, before slumping to end the day.

But key US indices hit new records while European stock markets rose on positive earnings reports from some tech firms.

On Wall Street, the S&P 500 jumped 1.0 percent and the tech-heavy Nasdaq Composite Index added 0.9 percent, both reaching all-time highs.

This came on the back of optimism surrounding corporate earnings and still-resilient US economic growth.

“A lot of that comes down to corporate profits,” said Angelo Kourkafas of Edward Jones.

He added that US GDP data “continues to defy fears of a near-term slowdown,” helping to propel stocks to new highs.

The US Commerce Department estimated earlier Thursday that the world’s biggest economy grew by an annual rate of 2.0 percent in the first three months of 2026.

A key factor was a surge in artificial intelligence investments, although consumer spending cooled.

Tech turbulence 

International benchmark Brent crude soared to $126 a barrel, but closed 3.4 percent down eventually at $114.01.

Still, this is significantly higher than its price before US-Israel strikes targeting Iran since February 28.

Markets were jolted after President Donald Trump warned the US blockade of Iranian ports could last months, and by a report that he would be briefed on potential fresh military strikes.

“Fears about escalation in the conflict between the US and Iran fueled the initial move higher before the market calmed down,” said XTB research director Kathleen Brooks.

The expiry of monthly contracts also added to volatility.

The main European stock markets closed higher, taking their cue from largely positive earnings reports from US tech companies.

Shares in Google parent company Alphabet closed 10 percent up as investors lauded the company’s success in making the pivot to artificial intelligence and solid revenue across its major divisions.

But shares in Meta slumped 8.6 percent amid concerns about its huge AI spending.

Apple reported after the closing bell, with earnings that beat forecasts on a boost from iPhone demand. The company’s shares were up 4.7 percent in after-hours trading.

Central banks remained a focus on Thursday, a day after the Federal Reserve kept interest rates unchanged as the United States faces elevated inflation triggered by the Middle East war.

The European Central Bank and Bank of England also both held rates steady.

But the ECB warned that risks to eurozone growth and the inflation outlook have “intensified” because of the war and its impact on global energy supplies.

The Bank of England cut its forecast for UK growth.

Data released Thursday showed that growth in the eurozone economy slid to 0.1 percent in the first quarter.

The yen shot more than two percent higher against the dollar after Japan’s finance minister hinted strongly that Tokyo was close to intervening in the market to support the currency.

Key figures at 2130 GMT 

Brent North Sea Crude: DOWN 3.4 percent to $114.01 a barrel West Texas Intermediate: DOWN 1.7 percent at $105.07 a barrel New York - Dow: UP 1.6 percent at 49,652.14 points (close) New York - S&P 500: UP 1.0 percent at 7,209.01 (close)

New York - Nasdaq Composite: UP 0.9 percent at 24,892.31 (close)

London - FTSE 100: UP 1.6 percent at 10,378.82 (close)

Paris - CAC 40: UP 0.5 percent at 8,114.84 (close)

Frankfurt - DAX: UP 1.4 percent at 24,140.59 (close)

Tokyo - Nikkei 225: DOWN 1.1 percent at 59,292.38 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,776.53 (close)

Shanghai - Composite: UP 0.1 percent at 4,112.16 (close)

Euro/dollar: UP at $1.1731 from $1.1695 on Wednesday

Pound/dollar: UP at $1.3602 from $1.3489

Dollar/yen: DOWN at 156.60 yen from 160.23 yen

Euro/pound: DOWN at 86.25 pence from 86.71 pence — AFP

SAN FRANCISCO, May 1 — Apple said yesterday it had its best-ever start to the year when it came to earnings, with iPhone demand and digital service sales helping it beat expectations.

The pioneering Silicon Valley company reported profit of $29.6 billion on revenue of $111.2 billion in the recently ended quarter.

“Today Apple is proud to report our best March quarter ever,” chief executive Tim Cook said in an earnings call, noting revenue hit a record high for the three-month period.

Apple shares dipped slightly after the release but rose nearly four percent on optimism expressed on the earnings call.

During the quarter, iPhone sales grew by double digits in just about every country where it does business, and its services unit reached an all-time high, according to Cook.

The earnings come as Apple prepares for a changing of the guard, with Cook to step down as chief executive late this year.

The future of Apple is being entrusted to a company veteran said to combine hardware brilliance with “the soul of an innovator.”

John Ternus, 50, will take over as Apple chief executive in September, with Cook becoming executive chairman of the iPhone maker’s board of directors.

“This is the most exciting time in my 25-year career at Apple,” Ternus said on the earnings call, declining to disclose details of the company’s roadmap.

“There are so many opportunities before us, and I couldn’t be more optimistic about what’s to come.”

A big question will be whether Ternus has “the appetite for the kind of bold, occasionally uncomfortable decisions” that defining an Apple AI platform will require, said IDC analyst Francisco Jeronimo.

Legendary Apple co-founder Steve Jobs was known for brutal honesty and unyielding perfectionism that led to culture-changing devices.

Apple celebrates its 50th anniversary this year as artificial intelligence challenges the legendary company to prove it can deliver yet another must-have innovation.

The brand’s hit products—the Mac, iPhone, Apple Watch and iPad—command a cult-like following, long after the company’s humble beginnings on April 1, 1976 in Jobs’s garage in Cupertino, California.

One concern haunting investors is that Apple appears to be easing into generative AI while rivals Google, Microsoft and OpenAI race ahead.

A promised upgrade to its Siri digital assistant was delayed in what analysts called a rare stumble for the company.

And rather than relying on its own engineers to overhaul Siri, Apple has turned to Google for AI capability.

But whether built in-house or outsourced, Apple’s obsession with user privacy and its premium hardware could position it to drive widespread adoption of personalized AI—and make it profitable, a goal that has proved elusive for much of the AI industry.

Apple delivered a “standout quarter” even though iPhone revenue came in just shy of expectations, according to Emarketer senior tech analyst Jacob Bourne.

“The question is whether incoming CEO John Ternus can translate this momentum into a credible AI strategy,” Bourne said.

“Investors will be watching for clues about how Ternus plans to balance Apple’s cautious AI posture with the pressure to define the next consumer device for the AI era.” — AFP

ABU DHABI, May 1 — The United Arab Emirates’ withdrawal from Opec weakens the group’s control over global oil markets ‌and potentially risks widening a rift with Gulf neighbour Saudi Arabia, the de facto leader of the crude producers’ organisation. From diverging oil policies to geopolitical tensions over Yemen and Sudan, and growing economic rivalry, the UAE and Saudi Arabia’s relationship had been heading for a showdown for a while now, according to analysts.

How likely is the Saudi-UAE row to hit ‌trade?

Saudi Arabia and the UAE are so deeply enmeshed in trade, investment and logistics that analysts say a full-blown economic rift is unlikely and would serve neither’s self-interest.

The region is already reeling from the fallout of the Iran conflict and its impact on investor and business sentiment. The last thing Gulf Cooperation Council nations need is more disputes and disruptions to the smooth conduct of business in the region, said Fareed Mohamedi, managing director at SIA-Energy International.

Still, trade links in the region have been reshaped before. In June 2017, Saudi Arabia, the UAE, Bahrain and Egypt severed ties with Qatar almost overnight over a range of allegations, including fomenting regional unrest that Doha denied.

The Qatar blockade targeted a smaller economy with fewer interdependencies. Qatar, a much smaller oil producer, left Opec in 2019. The UAE, which has a capacity of around 5 million barrels a day, and a large excess capacity, has the ability to significantly disrupt oil markets.

How connected are their economies?

Saudi Arabia is the UAE’s largest trading partner in the Arab world.

The value of Emirati-Saudi non-oil bilateral trade totalled US$41.3 billion (RM163 billion) in 2024 according ‌to the UAE’s economy ministry, up from US$37.3 billion in 2023. Saudi data showed that annual bilateral trade was up roughly 42 per cent since 2020. The UAE was ⁠the kingdom’s fifth-largest destination for exports and its third-largest source of imports in 2024.

Commerce between ⁠the two runs deep, spanning everything from refined petroleum and gold, to jewellery and re-exported consumer goods like ⁠electronics. Much of this trade flows through Dubai’s Jebel ⁠Ali port, a major hub for ⁠goods entering the Saudi market, even as Riyadh spends big to expand its own ports to capture more direct shipments.

In March, the Saudi Ports Authority (Mawani) announced the opening of a new trade corridor with new shipping services linking King Abdulaziz Port in Dammam with ports in Sharjah and Abu Dhabi in the UAE. Consumer markets are deeply ⁠intertwined. Shoppers at Lulu hypermarkets, an Emirati chain ubiquitous in both countries, routinely toss Saudi-made staples into their trolleys: Almarai milk, Jomara dates, Alyoum chicken.

A move toward a boycott would undermine both countries’ wider economic goals, said Alice Gower, a partner at London-based advisory firm Azure Strategy.

What about investments?

The UAE was the second-largest contributor by volume to Saudi Arabia’s net foreign direct investment inflows in 2024, with inflows worth 9 billion riyals (US$2.4 billion), according to Saudi Arabia’s General Authority for Statistics. Saudi direct investments in the UAE are over US$4.3  billion, according to Emirati data. An HSBC survey in November revealed that nine out of 10 international businesses in the UAE ⁠plan to increase trade and investment with the kingdom over the next five years.

Are the two Gulf states economic rivals? 

Yes. The UAE has forged nearly 30 bilateral trade deals with countries, leapfrogging slower Gulf Cooperation Council negotiations that would have included Saudi Arabia. Saudi Arabia has ⁠also taken steps seen as competitive, such as its 2021 directive requiring foreign firms to set up regional headquarters in Riyadh to qualify for government contracts — a move widely ⁠viewed as an ⁠effort to lure companies away from Dubai, the Gulf’s finance and tourism hub.

Why do their trade ties matter for the Middle East?

The Saudi-UAE economic relationship underpins much of the region’s trade and investment flows. Both countries act as a gateway for capital, goods, and services — Saudi Arabia as the largest Arab economy and the UAE as a major logistics and financial ‌hub.

Regional stability is the top priority for both Gulf states, and any boycott would risk undermining confidence in their long-term economic masterplans and discourage investment and engagement in the region, Gower said. Any prolonged strain between the two states would ripple across the Middle East. — Reuters

TOKYO, April 30 — Japan’s finance minister hinted strongly today that Tokyo was close to intervening in the market to support the yen, after the currency slipped to its lowest level against the dollar since mid-2024.

The yen, trading around 160 yen to the dollar, is close to the level it was at when Japanese authorities spent billions of dollars in the summer of 2024 to boost its value.

The currency has weakened against the greenback in recent months amid the Iran war and rising oil prices, as well as the gap between US and Japanese interest rates.

“We are finally nearing the moment to take resolute measures that I referred to before,” Finance Minister Satsuki Katayama told reporters in remarks that help boost the yen.

“I have consistently referred to taking bold action when needed,” she had said Tuesday. “We’re ready to respond 24 hours a day.”

Next week’s Golden Week holiday in Japan represents a period of lower liquidity, which has historically provided an opportunity for intervention, Bloomberg News reported. — AFP

KUALA LUMPUR, April 30 — The ringgit eased against most currencies, including the US dollar, as investors shifted towards safe-haven assets amid concerns over volatile crude oil prices.

At 6 pm, the local note depreciated to 3.9690/9740 against the greenback from 3.9495/9540 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said uncertainties over crude oil prices have heightened, with West Texas Intermediate (WTI) and Brent crude rising 1.28 per cent and 3.44 per cent to US$108.25 per barrel and US$122.09 per barrel, respectively.

On another development, he told Bernama that the United States (US) Federal Open Market Committee (FOMC) is unlikely to cut interest rates in the near term, as its latest decision showed that some policymakers preferred to keep rates unchanged rather than move towards easing.

At its third meeting of the year, the FOMC maintained the target range for the US federal funds rate at 3.50 — 3.75 per cent.

At the close, the ringgit traded lower against a basket of major currencies.

It eased against the Japanese yen to 2.4907/4942 from 2.4709/4739 at the close on Wednesday, slid against the euro to 4.6417/6476 from 4.6197/6250 yesterday, and slipped versus the British pound to 5.3593/3661 from 5.3330/3391 previously.

The local currency also weakened against regional peers.

It depreciated against the Singapore dollar to 3.1061/1103 from 3.0909/0946 at Wednesday’s close, fell against the Thai baht to 12.1711/1932 from 12.0791/0980 yesterday, decreased against the Indonesian rupiah to 228.7/229.2 from 227.9/228.3, and receded against the Philippine peso to 6.45/6.47 from 6.41/6.42 previously.

The local market will be closed tomorrow in conjunction with the Labour Day public holiday. — Bernama

KUALA LUMPUR, April 30 — Last-minute buying lifted Bursa Malaysia’s benchmark index, reversing earlier losses as higher oil prices boosted sentiment for energy- and chemical-related counters.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional markets remained under pressure following negative cues from Wall Street, compounded by surging oil prices, mixed earnings, and a cautious US Federal Reserve stance.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 1.60 points, or 0.09 per cent, to 1,722.02 from Wednesday’s close of 1,720.42.

The benchmark index opened marginally lower at 1,720.23 and moved between a low of 1,712.14 and a high of 1,722.03 throughout the day.

Market breadth, however, was negative, with losers trouncing gainers 816 to 360. A total of 546 counters were unchanged, 950 were untraded, and 77 were suspended.

Turnover declined to 2.91 billion units worth RM3.21 billion compared with 3.63 billion units worth RM3.13 billion on Wednesday.

Regionally, Singapore’s Straits Times Index increased 1.06 per cent to 4,912.69, Japan’s Nikkei 225 tumbled 1.06 per cent to 59,284.92, Hong Kong’s Hang Seng Index slipped 1.28 per cent to 25,776.53, and South Korea’s KOSPI dipped 1.38 per cent to 6,598.87.

Thong said Brent crude continued to hover above US$120 per barrel amid the ongoing closure of the Strait of Hormuz.

It was reported that US President Donald Trump warned Iran that the US naval blockade at the Strait of Hormuz could last months.

Among heavyweights, Maybank gained four sen to RM11.08, and IHH Healthcare was one sen higher at RM8.82. Public Bank fell seven sen to RM4.68, Tenaga Nasional dropped six sen to RM14.54, and CIMB lost three sen to RM7.66.

On the most active list, Zetrix AI shaved off 3.5 sen to 82 sen, Econpile slid two sen to 14.5 sen, and UEM Sunrise trimmed four sen to 64.5 sen. Borneo Oil inched up half-a-sen to one sen while VS Industry was flat at 21 sen.

Among the top gainers, Nestle advanced RM5.50 to RM108.40, KL Kepong increased 66 sen to RM21.22, LPI jumped 44 sen to RM14.84, Petronas Chemicals rose 26 sen to RM5.92, and MISC garnered 24 sen to RM8.37.

Among the top losers, MPI dipped RM1.38 to RM36.62, United Plantations slipped 26 sen to RM31.74, Fraser & Neave dropped 22 sen to RM31.30, Hong Leong Bank sank 20 sen to RM22.26, and Sunway Construction shed 18 sen to RM6.85.

On the index board, the FBM Emas Index slid 19.46 points to 12,723.74, the FBM Top 100 Index declined 10.79 points to 12,560.83, the FBM Emas Shariah Index gained 10.52 points to 12,718.36, the FBM Mid 70 Index slumped 112.12 points to 18,085.97, and the FBM ACE Index slipped 45.38 points to 4,618.11.

By sector, the Energy Index slid 4.39 points to 840.67, the Financial Services Index fell 99.78 points to 19,885.03, while the Industrial Products and Services Index gained 1.18 points to 196.31, and the Plantation Index soared 121.52 points to 8,939.31.

The Main Market volume slid to 1.83 billion units valued at RM2.99 billion from 2.23 billion units valued at RM2.86 billion on Wednesday.

Warrants turnover tumbled to 771.93 million units worth RM101.99 million from 1.05 billion units worth RM134.02 million previously.

The ACE Market volume slipped to 308.47 million units valued at RM114.03 million from 342.76 million units valued at RM131.74 million yesterday.

Consumer products and services counters accounted for 190.39 million shares traded on the Main Market, industrial products and services (355.60 million), construction (199.23 million), technology (307.26 million), financial services (70.78 million), property (229.75 million), plantation (42.70 million), real estate investment trusts (17.28 million), closed-end fund (18,100), energy (161.07 million), healthcare (90.04 million), telecommunications and media (45.70 million), transportation and logistics (80.50 million), utilities (47.41 million), and business trusts (10,783).

Meanwhile, Bursa Malaysia and its subsidiaries will be closed on May 1, 2026, in conjunction with the Labour Day public holiday.

The stock exchange and its subsidiaries will resume operations on May 4, 2026. — Bernama

TAIPEI, April 30 — Taiwan’s economy saw double-digit growth in the first three months of 2026 thanks to robust demand for artificial intelligence technology, data showed Thursday, despite concerns over the Middle East crisis.

The island is a global powerhouse in the manufacturing of semiconductor chips, which power AI, and its economy has been growing at a fast clip in recent years.

But the Iran war has raised concerns about the potential impact on the economy, particularly the critical chips sector, owing to Taiwan’s almost total reliance on energy imports to keep the lights on and production lines running.

Gross domestic product expanded 13.7 per cent on-year in the first quarter of 2026, the fastest pace since the second quarter of 1987, according to the statistics agency.

It was also better than the 11.3 per cent forecast in a survey by Bloomberg News, and a pick-up from the 12.7 per cent recorded in the previous three months.

Taipei has sought to limit the economic impact of the Iran war by absorbing most of the increase in fuel prices, while also ensuring the island has a secure supply of LNG and oil, much of which comes from the Middle East.

Wendell Huang, chief financial officer of chip titan TSMC, said this month that the company did not expect the war to impact its supply of key chipmaking materials such as helium and hydrogen in the near term.

TSMC is the biggest contract maker of microchips that are used in everything from Apple iPhones to Nvidia’s processors.

Nevertheless, Taiwan’s “consumption likely slowed” and “investment probably fell” in the first quarter as sentiment was hurt by the conflict, Bloomberg reported before the data was released.

The export-driven economy grew 8.6 per cent in 2025, its fastest pace in 15 years, but is expected to expand 3.5 per cent this year. — AFP

HONG KONG, April 30 — Oil prices soared more than five per cent to a fresh four-year high Thursday while stocks fell after Donald Trump warned the US blockade of Iranian ports could last months as peace talks remained stalled.

While Tehran submitted a fresh proposal this week to reopen the crucial Strait of Hormuz, the US president reportedly did not believe it was negotiating in good faith.

The Wall Street Journal said he had told national security officials to prepare for a long blockade to compel the Islamic republic to give up its nuclear programme.

At a meeting of oil executives Tuesday, he discussed efforts “to alleviate global oil markets and steps we could take to continue the current blockade for months if needed and minimise impact on American consumers”, a White House official said on condition of anonymity.

Meanwhile, Trump told Axios: “The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon.”

He added that the naval action would not end until he had secured a deal with Tehran to address its nuclear programme.

In a post on his Truth Social platform, Trump said: “Iran can’t get their act together. They don’t know how to sign a non-nuclear deal. They better get smart soon!”

He posted an illustration of himself holding an assault rifle alongside the caption “NO MORE MR. NICE GUY!”

The prospect of the Strait – through which a fifth of world oil and gas passes – being closed for months more sent crude surging to the highest level since 2022, after Russia invaded Ukraine.

Brent for June delivery surged 6.8 per cent to US$126 (RM500) Wednesday, while West Texas Intermediate jumped three per cent to top US$110.

Analysts said traders were beginning to shift to the view that the crisis will not be as short as initially hoped.

Tech’s AI rally

Stock markets also struggled, with Tokyo, Hong Kong, Mumbai, Sydney, Seoul, Bangkok, Manila and Jakarta all down. There were gains in Shanghai, Singapore, Wellington and Taipei.

The dollar, seen as a safe haven during the crisis, rose against its peers.

However, equity traders remain relatively upbeat thanks to a revival of the AI trade, which has helped push Seoul’s Kospi index to multiple record highs.

The country’s Samsung Electronics reported a 750 per cent surge in operating profit to a record high on Thursday, thanks to strong sales of chips crucial for artificial intelligence, while it also forecast healthy demand in the next three months.

That came after Microsoft, Meta and Google-parent Alphabet posted forecast-busting earnings.

US stock futures rose.

SPI Asset Management’s Stephen Innes warned that the positive mood on stock markets could change.

“History tells us that this widening divide between stocks, oil, and rates can only stretch so far before the physical shock bleeds into the real economy,” he wrote.

“Expensive energy is not abstract. It moves quietly through the system, from the pump to logistics to margins, eventually surfacing in the data that central banks respond to after the fact.”

Investors were also assessing the outlook for the Federal Reserve’s policy actions after four members of its decision-making body dissented on a vote, the most since 1992.

While it voted to hold interest rates owing to fears of a spike in inflation caused by surging energy costs, three “did not support inclusion of an easing bias in the statement at this time.”

A fourth voting member, Trump-appointee Stephen Miran, had sought a quarter-point cut.

The meeting was the last with Jerome Powell as Fed boss, with Kevin Warsh – the president’s pick – to take over next month.

Trump spent much of his second term blasting Powell for not cutting borrowing costs quickly enough. — AFP

KUALA LUMPUR, April 30 — Bursa Malaysia traded choppily in early dealings, with sentiment cautious amid external uncertainties, traders said.

Tensions in West Asia and elevated oil prices weighed after the United Arab Emirates’ abrupt exit from the Organisation of the Petroleum Exporting Countries (Opec) and its allies.

At 9.10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.92 points, or 0.11 per cent, to 1,718.50 from Wednesday’s close of 1,720.42.

The benchmark index opened 0.19 of-a-point lower at 1,720.23.

Market breadth was negative, with losers outpacing gainers 242 to 175. A total of 326 counters were unchanged, 1,929 untraded, and 77 suspended.

Turnover stood at 189.43 million shares worth RM101.98 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Brent crude climbed to US$118 per barrel after US President Donald Trump signalled preparations for a prolonged blockade of Iran, heightening concerns over potential disruptions to global energy supply.

“On the domestic front, while the FBM KLCI ended lower yesterday amid profit-taking after recent gains, the pullback may present opportunities to accumulate fundamentally sound blue chips at more attractive valuations.

“Looking ahead, sentiment is expected to remain cautious amid elevated oil prices and ongoing geopolitical tensions. While downside may be cushioned by selective buying, upside could be gradual in the absence of clearer positive catalysts,” he told Bernama.

Thong added the benchmark index is likely to trade within the 1,710-1,730 range today.

Among heavyweights, Maybank rose four sen to RM11.08 and CIMB added one sen to RM7.70. Public Bank fell two sen to RM4.73, while Tenaga Nasional and IHH Healthcare slipped 10 sen each to RM14.50 and RM8.71, respectively.

On the most active list, Borneo Oil was half-a-sen higher at one sen, GDB gained one sen to 41 sen and Hengyuan Refining rose three sen to RM1.36, while MRCB and Econpile lost one sen each to 35.5 sen and 15.5 sen, respectively.

Among the top gainers, Nestle advanced RM1.70 to RM104.60, Malaysian Pacific Industries gained 28 sen to RM38.28, LPI Capital rose 20 sen to RM14.60, while MBM Resources and United Plantations added 12 sen each to RM5.12 and RM32.12, respectively.

Among the top losers, Paragon Union fell 14 sen to RM4.70, while Sunway Construction and Manulife shed nine sen each to RM6.94 and RM2.29, respectively. Keyfield declined seven sen to RM1.66, and Ajinomoto lost six sen to RM12.42.

On the index board, the FBM Emas Index fell 14.13 points to 12,729.07, the FBM Top 100 Index declined 12.59 points to 12,599.03, the FBM Emas Shariah Index dropped 21.79 points to 12,686.05, the FBM Mid 70 Index eased 12.03 points to 18,186.06, and the FBM ACE Index slipped 6.41 points to 4,657.08.

By sector, the Energy Index added 1.98 points to 847.04, while the Financial Services Index gained 4.83 points to 19,989.64. The Industrial Products and Services Index eased 0.04 of-a-point to 195.09, and the Plantation Index rose 10.79 points to 8,828.58. — Bernama

NEW YORK, April 30 — Alphabet topped ‌Wall Street estimates for quarterly revenue on Wednesday, as enterprise spending on artificial intelligence delivered the best quarter of reported growth ​for its cloud unit yet. Shares of the company were up more than 6 per cent in extended trading.

The Google parent company’s total revenue rose 22 per cent to US$109.9 billion (RM434 billion) in the first quarter, above an estimate of US$107.2 billion, according to LSEG data.

Revenue at Google Cloud grew 63 per cent to US$20 billion in the first quarter ‌ended March, well above analysts’ average estimate of a 50.1 per cent increase, according to data compiled by LSEG. That growth rate is the best since the ​company began breaking out the segment’s revenue in 2020, according to LSEG data.

“Our enterprise AI solutions have become our primary growth driver for cloud for the first time,” CEO Sundar Pichai said on a conference call with analysts, noting that sales on those products grew eightfold from a year ago.

Alphabet’s strong cloud results highlight how AI is emerging as a decisive growth engine for Google after years of trailing larger rivals, reassuring investors ​that its heavy spending is starting to pay off.

The sharp acceleration in that business, fueled by demand for generative AI tools, for now appears to vindicate Alphabet’s push to turn its vast research capabilities into commercial gains. Google also began selling its TPU chips, which compete with Nvidia’s GPUs, directly to some customers, Pichai announced on the call.

For years Google reserved its TPUs, which stand for “tensor processing units,” only for internal use to develop technologies such as its Gemini AI model. Its decision to lease TPUs to cloud customers helped drive growth for Google Cloud, but the company had held off on directly selling those chips until now.

Alphabet expects to begin recognising a small percentage of revenue from ‌the TPU sales agreements it has struck by the end of the year, with the vast majority of it converting in 2027, CFO Anat Ashkenazi said on the call.

In directly ⁠selling TPUs, the latest iterations of which were announced last week, Google saw a chance ⁠to expand its addressable market, Pichai said, even as it continues to face constraints on computing power.

That constrained capacity prevented even ⁠higher cloud revenue growth and contributed to the cloud unit’s ⁠backlog nearly doubling quarter on quarter to US$460 billion, ⁠he said. Ashkenazi added that the company expected to recognise just over 50 per cent of that backlog over the next 24 months.

Capex hike

In order to do so, Alphabet signalled to investors its plans to continue aggressively increasing its capital expenditures.

Ashkenazi raised this year’s forecast to between US$180 billion and US$190 billion, a US$5 billion bump from what she announced last quarter, and said that Alphabet was planning another significant ⁠increase in 2027.

Capital spending in the first quarter more than doubled from a year earlier to US$35.67 billion. Overall, Alphabet spent US$91.45 billion of capex in 2025.

“Perhaps even more importantly than Alphabet’s massive cloud growth pace is the broader justification that the US$180 billion capex plan – that surprised the market last quarter – is well within the company’s spending power, considering the durability and quality of the revenue curve shown today,” said Thomas Monteiro, a senior analyst at Investing.com.

Operating income for the cloud unit tripled to US$6.6 billion in the first quarter from US$2.2 billion a year earlier. Alphabet’s overall consolidated operating income increased 30 per cent to US$39.7 billion.

Net income grew even more sharply to US$62.6 billion, an 81 per cent increase, though the figure was heavily boosted by a US$36.9 billion gain on equity securities. Alphabet ⁠holds stakes worth billions of dollars in SpaceX and Anthropic, both of which are aiming for banner IPOs this year.

‘Full-stack’ approach

The third-largest cloud services provider globally, behind Amazon Web Services and Microsoft’s Azure, Alphabet has continued to land major deals, including expanded AI infrastructure partnerships with Meta and cybersecurity firm Palo Alto Networks.

Investors were ⁠more bullish on Alphabet than its two cloud rivals, both of which experienced a drop in stock price after also reporting quarterly earnings on Wednesday.

Revenue at Amazon Web Services jumped 28 per cent to US$37.6 ⁠billion in the first quarter, ⁠compared with analysts’ average estimate of a 25.1 per cent increase to US$36.6 billion, according to LSEG. Net sales overall grew to US$181.5 billion. Azure and Microsoft’s other cloud services revenue grew 40 per cent, in line with consensus estimates.

Google Cloud’s quarter showed “it ​can significantly contribute to the wider Alphabet portfolio after years of big operating losses,” Forrester principal analyst Lee Sustar ​said.

As its enterprise business boomed, Alphabet’s Gemini chatbot drove its “strongest quarter ever” for consumer AI, ‌Pichai said. He said the company was enjoying growth across the board thanks to its full-stack AI approach, referring to ​every layer of the AI technology chain including chips, data centres, ​AI models and developer tools.

The company said it had 350 million paid subscriptions across YouTube, its cloud storage and advanced AI service Google One and other products. — Reuters

KUALA LUMPUR, April 30 — The ringgit opened lower against the US dollar and was mixed against other currencies, as support from firmer oil prices was offset by broad dollar strength and cautious positioning following the US Federal Reserve (Fed)’s rate decision.

At 8.04 am, the domestic unit eased against the greenback to 3.9565/9630, from 3.9495/9540 at Wednesday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Fed was inclined to keep rates steady, as economic activity continued to expand at a solid pace despite slower job growth.

At its third meeting of the year, the Federal Open Market Committee maintained the target range for the federal funds rate at 3.50 per cent to 3.75 per cent.

“With the sharp spike in crude oil prices, the ringgit is likely to weaken today, with the US dollar/ringgit pair potentially attempting to breach RM3.96,” Mohd Afzanizam told Bernama.

At the opening, the ringgit was traded mixed against a basket of major currencies, and against its ASEAN peers.

It rose slightly against the Japanese yen to 2.4700/4744 from 2.4709/4739 on Wednesday, but weakened against the British pound to 5.3381/3469 from 5.3330/3391 and slipped against the euro to 4.6236/6312 from 4.6197/6250.

It edged down against the Singapore dollar to 3.0905/0659 from 3.0909/0946 at Wednesday’s close, but strengthened against the Thai baht to 12.0765/1022 from 12.0791/0980.

The ringgit eased against the Indonesian rupiah to 228.3/228.8 from 227.9/228.3 and fell against the Philippine peso to 6.42/6.44 from 6.41/6.42. — Bernama

WASHINGTON, April 30 — Federal Reserve Chair Jerome Powell closed out eight years as head of the ​US central bank on Wednesday with interest rates on hold, rising concern about inflation, and an announcement that he would stay on as a Fed governor for now to defend the agency’s independence from Trump administration “battering.”

Speaking after the end of a two-day policy meeting, Powell said he would “keep a low profile as a governor,” and did not intend to act as a disruptive “high-profile dissident” ‌under his designated successor, Kevin Warsh, whose nomination to lead the Fed cleared the Senate Banking Committee on Wednesday and could be confirmed by the full Senate as soon as two weeks ​from now, just before Powell’s term as central bank chief ends on May 15.

Powell said, however, that a series of Trump administration legal actions, from an effort to fire Fed Governor Lisa Cook to a criminal probe of Powell, put the decision-making credibility of the central bank at risk and endangered the “bright line” needed between its decisions on interest rates and the short-term concerns of electoral politics and elected officials.

“These legal actions by the administration are unprecedented in our 113-year history, and there are ongoing threats of additional such actions. I worry ​that these attacks are battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policy without taking into consideration political factors,” Powell said in a press conference, noting that he did not object to President Donald Trump’s frequent demands for rate cuts, but rather to the legal measures taken to seemingly pressure the central bank into approving them.

Powell’s separate term on the Fed’s seven-member Board of Governors runs through January 2028, near the end of Trump’s presidency. Powell said he’d make a future decision about how long to keep his seat.

“I’d like to think we can... go back to respecting what the law says and what custom has been, which is to let the Fed do our thing,” Powell said.

“We’re all human. Don’t expect perfection. But do expect us to make decisions without political considerations.”

“Jerome ‘Too Late’ ‌Powell wants to stay at the Fed because he can’t get a job anywhere else – Nobody wants him,” Trump said in a post on Truth Social on Wednesday. Trump has threatened to fire Powell if he stays on ⁠as a Fed governor.

Four policymakers dissent

Powell’s comments about his future and the transition to Warsh’s impending leadership overshadowed both the ⁠Fed decision widely expected by financial markets to keep the policy rate in the 3.50 per cent-3.75 per cent range, where it has been since December, and intensifying concern among policymakers about ⁠rising inflation that led to their most divided vote since 1992.

Following ⁠more than a year in which the Fed ⁠was cutting rates and was expected to continue doing so, three of its policymakers on Wednesday dissented because they thought language in the policy statement pointing to an “easing bias” was no longer appropriate given elevated inflation and the massive uncertainty about how the ongoing US-backed war against Iran may affect global oil prices.

A fourth policymaker, Fed Governor Stephen Miran, also dissented in favor of a rate cut, as he has at every meeting since leaving the Trump administration last year to join the central ⁠bank.

It also likely was Miran’s last meeting as a Fed governor. US Treasury yields rose to a one-month high and the dollar rose against a basket of currencies after the release of the policy statement. Futures markets were pricing in little chance of a Fed rate cut by the end of this year, and a roughly even chance of a hike by next spring.

Omair Sharif, president of forecasting firm Inflation Insights, said in a note to clients that the fractious policy vote made some level of sense. “The new statement upgraded the concern on inflation,” he said, adding that it is “not surprising” some officials dissented given how inflation has been rising.

Leadership transition proceeds

The global price of oil surged on Wednesday to settle at about US$118 (RM467) a barrel amid stalled peace negotiations between the US and Iran, with the average US gasoline price up 40 per cent to almost US$4.23 a gallon since the February 28 start of the ⁠conflict.

Data released on Thursday is expected to show that the inflation index used by the Fed to set its 2 per cent inflation target increased 3.5 per cent on an annual basis as of March, Powell said, with risks that the combination of import tariffs and high energy costs could feed further into underlying or “core” inflation that would make the central bank’s inflation fight harder.

“The prospects are real... We’re ⁠going to have to wait and see,” Powell said, noting that while policymakers were not ready to signal the possibility of rate hikes at this week’s meeting, “the centre is moving towards a more neutral place” where an increase in borrowing ⁠costs would be given equal ⁠weight in policy guidance to a cut.

“There’s a lot of signalling going on when you change guidance like that. I guess the majority of us didn’t feel like we needed to send a signal on that right now. But maybe it’ll come to that,” Powell said ​in his final press conference as Fed chief. If that shift is made, it will likely come on Warsh’s watch. He is expected to be ​sworn in as Powell’s replacement in time to lead the Fed’s June 16-17 meeting, with Trump saying he ‌expects lower rates to follow.

It may be a heavy lift, with investors discounting the likelihood of lower rates until well into 2027, and a growing number ​boosting bets that rates may need to move higher.

Warsh’s colleagues will ​need convincing too, particularly the three regional bank presidents – Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan – who “did not support inclusion of an easing bias in the statement at this time” and issued dissents on Wednesday. — Reuters

KUALA LUMPUR, April 29 — Maxis Bhd’s wholly owned subsidiary Maxis Broadband Sdn Bhd has provided an additional shareholder advance of RM202 million to Digital Nasional Bhd (DNB). 

In a filing with Bursa Malaysia, the telecommunication company said the additional shareholder advance will not bear any interest, is not repayable on demand and carries the same rights accorded to an ordinary shareholder in DNB. 

“Each ringgit of additional shareholder advance is entitled to one vote. 

“The additional shareholder advance is to facilitate DNB's 5G operation, including the acquisition of additional spectrum,” it said. 

It said the additional shareholder advance provided is not expected to have any material effect on the earnings per share, net assets per share and gearing of the company and its subsidiaries for the financial year ending 2026. 

On the basis that Maxis Broadband, CelcomDigi Bhd and YTL Communications Sdn Bhd provide the additional shareholder advances as set out, the resulting shareholding structure in DNB shows the Ministry of Finance Inc (MoF Inc) retaining the largest stake at 31.18 per cent, with a total contribution of RM750.30 million.

CelcomDigi, Maxis Broadband and YTL each holds 22.94 per cent, with total contributions of RM552.03 million respectively.  

In a separate filing, CelcomDigi said the company also provided RM202 million to DNB as additional shareholder advance. 

It said the additional shareholder advance is offered to CelcomDigi, Maxis and YTL (contributing shareholders). 

However, MoF Inc has been excluded from participating in the additional shareholder advance in light of its exercise of the put option on December 1, 2025 and all contributing shareholders have fully paid the option price. 

“The additional shareholder advance will be utilised by DNB to pay upfront spectrum fees as part of the spectrum acceptance and to meet its working capital requirements,” it said. — Bernama 

HONG KONG, April 29 — Hong Kong’s stock exchange posted a record quarterly profit in the first three months of 2026, its operator said Wednesday, as the finance hub remains at the top of global rankings for initial public offerings.

Profit attributable to shareholders rose to HK$5.19 billion (RM2.6 billion), a 27 per cent increase from the year before, Hong Kong Exchanges and Clearing (HKEX) said.

Core business revenue reached HK$7.69 billion, up 22 per cent compared to the same period of last year due to increased trading volumes in the cash and commodities markets.

“HKEX delivered a strong start to 2026 with revenue and profit both reaching record highs in the first quarter of 2026, as global capital continued to seek safe havens and access to Asian growth opportunities in a volatile macro environment,” HKEX CEO Bonnie Chan said in a statement.

This year has already brought strong Hong Kong IPOs from mainland Chinese companies including Muyuan Foods Co., Ltd, and Eastroc Beverage (Group) Co., Ltd.

There were 40 listings in the first quarter of 2026, raising HK$110.4 billion, more than five times the funds raised in the same period of last year. — AFP 

KUALA LUMPUR, April 29 — The ringgit closed higher against the US dollar and regional currencies, due to easing crude oil concerns following the United Arab Emirates’ (UAE) exit from the Organization of the Petroleum Exporting Countries (OPEC) pact.

At the same time, sentiments remained cautious ahead of the United States Federal Reserve’s interest rate decision later today.

At 6pm, the local note appreciated to 3.9495/9540 against the greenback from 3.9505/9550 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said news of the UAE’s departure from the OPEC pact beginning May suggests the oil cartel may continue to lose its grip on sustaining higher crude oil prices, particularly once the current crisis subsides.

“As a result, West Texas Intermediate (WTI) and Brent crude prices were little changed today.

“This is a positive development as the cartel system should be discouraged to allow market forces to function more effectively and efficiently,” he told Bernama.

Mohd Afzanizam added that improved efficiency in the price discovery mechanism will send the right signals to industry players, potentially encouraging a shift towards renewable energy.

Meanwhile, the Federal Open Market Committee (FOMC) is expected to announce its interest rate decision at the conclusion of its meeting later today.

At the close, the ringgit traded mostly lower against a basket of major currencies.

It appreciated against the Japanese yen to 2.4709/4739 from 2.4756/4785 at the close on Tuesday, but slid against the euro to 4.6197/6250 from 4.6189/6242 yesteday, and slipped versus the British pound to 5.3330/3391 from 5.3292/3353 previously.

However, the local currency strengthened against regional peers.

It advanced against the Singapore dollar to 3.0909/0946 from 3.0943/0983 on Tuesday, jumped against the Thai baht to 12.0791/0980 from 12.1494/1685 yesterday, gained against the Indonesian rupiah to 227.9/228.3 from 229.1/229.4, and appreciated against the Philippine peso to 6.41/6.42 from 6.44/6.46 previously. — Bernama 

KUALA LUMPUR, April 29 — Bursa Malaysia ended on a softer note today, as investors took profit in oil-related counters following news of the United Arab Emirates’ (UAE) decision to withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) and its allies.

The decline in the benchmark index was also in line with the weaker overnight performance on Wall Street, as investors turned more defensive ahead of the US Federal Open Market Committee’s meeting later tonight, said IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 9.18 points, or 0.53 per cent, to 1,720.42 from Tuesday’s close of 1,729.60. The benchmark index, which opened 2.05 points higher at 1,731.65, moved within a range of 1,718.45 to 1,733.84 throughout the session.

Market breadth was negative, with losers outpacing gainers 617 to 485. A total of 619 counters were unchanged, 970 were untraded, and 112 were suspended.

Turnover declined to 3.63 billion units worth RM3.13 billion compared with 3.85 billion units worth RM3.38 billion on Tuesday.

Mohd Sedek said the current sentiment has added another layer of uncertainty to global energy markets, alongside renewed volatility in the artificial intelligence ecosystem, which continues to drive intermittent de-risking across technology and growth-linked segments.

“Selling pressure was broad-based, led by a pronounced correction in banking heavyweights, with all FBM KLCI financial constituents closing in negative territory, suggesting an ongoing recalibration in rate expectations, as markets increasingly price a more protracted higher-for-longer policy path.

“The banking sector, which has underpinned recent index resilience through earnings stability and margin expansion, is now encountering near-term headwinds from the repricing of rate cut expectations and a gradual normalisation in net interest margin dynamics,” he told Bernama.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said today’s selling offers an opportunity to pick up blue chips at more attractive levels, particularly in fundamentally strong and defensive sectors.

“While near-term sentiment may remain cautious due to external uncertainties, underlying support in the index suggests that the downside could be limited by selective accumulation.

“In the near term, we expect the FBM KLCI to trade in a consolidation mode with a mild upward bias, supported by bargain hunting and resilient domestic liquidity. We anticipate the benchmark index to move within the 1,710-1,730 range for the rest of the week,” he added.

Among heavyweights, Maybank slipped 18 sen to RM11.04, CIMB lost nine sen to RM7.69, Public Bank gave up three sen to RM4.75, while Tenaga Nasional bagged eight sen to RM14.60, and IHH Healthcare was flat at RM8.81.

On the most active list, Borneo Oil was flat at half-a-sen, while UEM Sunrise rose 3.5 sen to 68.5 sen, MRCB increased three sen to 36.5 sen, Velesto Energy was 2.5 sen higher at 34.5 sen, and Zetrix AI shed half-a-sen to 85.5 sen.

Among the top gainers, Nestle put on 60 sen to RM102.90, Malaysian Pacific Industries garnered 50 sen to RM38.00, Bintulu Port jumped 30 sen to RM5.65, UMS Integration leapt 20 sen to RM6.90, and IOI Properties climbed 16 sen to RM4.15.

As for the top losers, Hong Leong Industries dropped 30 sen to RM17.50, Petronas Dagangan fell 26 sen to RM20.30, Sam Engineering tumbled 21 sen to RM3.97, Petronas Gas slid 14 sen to RM17.82, and UWC shed 11 sen to RM5.01.

On the index board, the FBM Emas Index sank 55.54 points to 12,743.20, the FBM Top 100 Index decreased 62.71 points to 12,571.62, the FBM Emas Shariah Index lost 21.35 points to 12,707.84, the FBM Mid 70 Index declined 71.87 points to 18,198.10, but the FBM ACE Index gained 6.95 points to 4,663.49.

By sector, the Energy Index added 13.73 points to 845.06, while the Financial Services Index slumped 176.82 points to 19,984.81, the Industrial Products and Services Index eased 0.68 of-a-point to 195.13, and the Plantation Index fell 12.67 points to 8,817.79.

The Main Market volume was marginally lower at 2.23 billion units valued at RM2.86 billion from 2.25 billion units valued at RM3.07 billion on Tuesday.

Warrants turnover was slightly lower at 1.05 billion units worth RM134.02 million from 1.18 billion units worth RM161.79 million previously.

The ACE Market volume slipped to 342.76 million units valued at RM131.74 million from 415.85 million units valued at RM152.85 million yesterday.

Consumer products and services counters accounted for 205.36 million shares traded on the Main Market, industrial products and services (589.10 million), construction (243.98 million), technology (248.78 million), financial services (60.34 million), property (361.10 million), plantation (33.76 million), real estate investment trusts (14.35 million), closed-end fund (13,500), energy (257.77 million), healthcare (100.87 million), telecommunications and media (52.19 million), transportation and logistics (34.67 million), utilities (37.01 million), and business trusts (11,100). — Bernama

SINGAPORE, April 29 — Markets found their footing in Asian trading on Wednesday as worries ​about the Iran conflict and health of the AI sector eased, optimism over corporate earnings grew, and attention turned to the Federal Reserve’s decision due later.

MSCI’s broadest index of Asia-Pacific shares outside Japan reversed earlier losses to ‌rise 0.2 per cent, as gains for stocks trading in Hong Kong steadied the index. Japanese markets were closed for a holiday. ​

S&P 500 e-mini futures edged up 0.2 per cent, while Brent crude rose 0.2 per cent to US$111.51 (RM440) per barrel as efforts to end the Iran conflict hit an impasse.

“For us, earnings are the most important part of the story right now,” said Kate Moore, chief investment officer at Citi Wealth. “Q1 earnings are tracking year-over-year growth and climbing,” ​she said.

“Analysts typically spend earnings season revising numbers down. This season, the opposite appears to be happening.” Corporate America has shown resilience in the face of the Iran conflict: with slightly more than one-third of S&P 500 sectors having already reported profits, 81 per cent of companies have beaten estimates.

Earnings from US tech giants Microsoft, Alphabet, Amazon and Meta Platforms, due later on Wednesday, will further test the AI-driven rally.

Tech shares took a hit on Tuesday after The Wall Street Journal reported that AI heavyweight OpenAI ‌had missed internal targets for weekly users and revenue, raising concerns over the ChatGPT parent’s ability to support its massive spending on ⁠data centres.

The report weighed on shares of Oracle and CoreWeave on Wall ⁠Street on Tuesday, with the S&P 500 sliding 0.5 per cent and the Nasdaq Composite falling ⁠0.9 per cent as investors also assessed the impasse in ⁠Iran.

US President Donald Trump is ⁠unhappy with the latest proposal from Tehran as he wants nuclear issues dealt with from the outset, a US official said. The Journal also reported on Tuesday, citing US officials, that Trump had instructed aides to prepare for an extended blockade of Iran.

Market attention will turn ⁠later on Wednesday to the outcome of the Federal Reserve’s April meeting, which will be Jerome Powell’s last as Fed chair. Traders believe a hold is a certainty. Fed funds futures are pricing an implied 100 per cent probability the US central bank will maintain rates, with no policy changes expected until late in 2027, according to the CME Group’s FedWatch tool.

“Given the challenging war-impacted inflation environment, it won’t cost much for the Fed to adopt a hawkish tilt; while remaining in a wait-and-see mode,” analysts from ING wrote in a research report.

“There ⁠will also be questions on the incoming Kevin Warsh and Powell’s intention to stay or go.” The yield on the US 10-year Treasury bond was up 0.8 basis point at 4.344 per cent, while the US dollar index, which measures the ⁠greenback’s strength against a basket of six currencies, edged up 0.1 per cent to 98.71, rising for a second consecutive day. Markets also digested the surprise exit ⁠of the United ⁠Arab Emirates from OPEC, though the rest of the oil producer alliance is expected to stick together.

“On any other given day, this news may have seen ​the Brent price move down US$5 to US$6 off the bat, given the UAE accounts ​for around 10 per cent of OPEC output,” said Chris Weston, head of ‌research at Pepperstone Group Ltd in Melbourne.

“However, with the UAE’s production facilities currently close to ​capacity, it is perhaps no surprise that ​Brent front-month futures quickly erased the initial drop.”

Gold was down 0.2 per cent at US$4,583.40. In cryptocurrency markets, bitcoin gained 1.1 per cent at US$77,296.62 while ether rallied1.5 per cent at US$2,331.23. — Reuters

KUALA LUMPUR, April 29 — Malaysia’s inflation moderated to 1.4 per cent in 2025 as compared to 1.8 per cent in the previous year, supported by the firmer ringgit, sustained household spending and initiatives by the government.

According to the Department of Statistics Malaysia (DOSM), government initiatives to distribute RON95 petrol subsidies to Malaysians, to a certain extent, helped to curb further increases in Malaysia’s inflation.

“This rate is within the inflation range projected by Bank Negara Malaysia and the Ministry of Finance, between 1.0 per cent and 2.0 per cent for 2025,” it said in a statement regarding the analysis of Consumer Price Index (CPI) 2025.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the country’s inflation in 2025 was contributed by the inflation of housing, water, electricity, gas and other fuels (1.6 per cent); health (1.2 per cent); recreation, sports and culture (1.1 per cent);  transport (0.4 per cent) and furnishings, household equipment and routine household maintenance (0.2 per cent).

He said personal care, social protection and miscellaneous goods and services recorded a higher increase at 4.4 per cent compared to 2024’s 3.0 per cent, followed by insurance and financial services (3.4 per cent), restaurants and accommodation services (3.2 per cent), education (2.3 per cent), and food and beverages (2.1 per cent).

In contrast, he said information and communication and clothing and footwear recorded declines of negative 4.3 per cent and negative 0.2 per cent in 2025, respectively.

“The highest inflation throughout 2025 was recorded in January 2025 at 1.7 per cent and edged down to 1.1 per cent in June 2025, contributed by a slower trend in the inflation of food and beverages, and housing, water, electricity, gas and other fuels.

“Nevertheless, the inflation trend picked up in the second half of the year 2025,” he said.

Mohd Uzir noted that the core inflation rose 2.0 per cent in 2025 as compared to 1.8 per cent in 2024, contributed by the personal care, social protection and miscellaneous goods and services (4.4 per cent), food and beverages (3.4 per cent), insurance and financial services (3.4 per cent), and restaurant and accommodation services (3.2 per cent).

Meanwhile, he said most states registered slower inflation, with four states exceeding the national inflation rate of 1.4 per cent in 2025, namely Johor (2.0 per cent), Selangor (1.7 per cent), Negeri Sembilan (1.7 per cent) and Melaka (1.5 per cent).

“Kelantan recorded the lowest increase at 0.3 per cent,” he said.

Mohd Uzir said that, compared with inflation in other selected countries, the inflation rate in Asean countries ranged from negative 0.3 per cent to 7.7 per cent in 2025.

“Laos recorded the highest inflation at 7.7 per cent, while Brunei recorded the lowest inflation at negative 0.3 per cent,” he added. — Bernama

WASHINGTON, April 29 — Big Four firm ‌KPMG is shutting its federal government ​audit business and will redeploy more than 450 US staff after losing a US$60 million-a-year ‌contract with the Pentagon, the Financial Times reported on ​Wednesday, citing sources.

KPMG had audited the US Army for almost a decade; however, the defence department now plans to use a ​new accounting firm to oversee a larger proportion of the military’s accounts, according to the report. This comes amid mounting bipartisan criticism of the Pentagon’s financial accountability problems, after it failed an ‌annual audit last year, for the eighth year in ⁠a row.

The Pentagon has ⁠now decided to reorganise its ⁠financial reporting, slashing the number ⁠of disjointed ⁠separate audits by two-thirds.

The US Army was the largest single customer of KPMG’s federal audit practice, the FT ⁠report said, adding that the firm is also winding down contracts with other parts of the government.

Some staff have already been placed in alternative roles, while others will shift to new jobs between now ⁠and the end of the final federal contract in 2030, the report said.

KPMG did not immediately ⁠respond to a Reuters request for comment.

The Pentagon’s first audit ⁠was ⁠conducted in 2018 and consistently failed, reflecting persistent system and ​accounting problems across its vast ​bureaucracy. Lawmakers have set a ‌2028 deadline for the department to ​pass an independent ​audit. — Reuters

PARIS, April 29 — French drinks giant Pernod Ricard said Tuesday that talks to buy Brown-Forman, the US owner of Jack Daniel’s whiskey, had ended without a deal.

The companies had confirmed in March they were holding talks.

But “these discussions ended without reaching an agreement”, Pernod, whose brands include Absolut Vodka and Jameson whiskey, said in a statement.

Brown-Forman confirmed that the companies were “unable to reach mutually agreeable terms.”

Of the two drinks giants, Pernod Ricard is valued at over €15 billion (RM69 billion) and Brown-Forman at US$12 billion (RM48 billion).

Rival American group Sazerac is reportedly also keen to acquire Brown-Forman but has not commented on a potential buyout.

Sazerac is a family-owned company with nearly 400 years of history. It operates distilleries worldwide including in the United States, France and India.

The alcohol sector is facing a difficult global environment, with consumption weakening worldwide and new tariffs – particularly in the United States – hurting major producers. — AFP

WASHINGTON, April 29 — The US Federal Reserve is widely expected to hold interest rates steady on Wednesday after a key policy meeting, likely the last chaired by central bank chief Jerome Powell, a frequent target of President Donald Trump’s ire.

Policymakers will weigh the risks of surging energy prices and snarled supply chains due to the US-Israel war on Iran, with analysts widely expecting a third pause in a row as the effects of the conflict ripple through the world’s largest economy.

All eyes will be on Powell’s future plans at what could be his final press conference as head of the Fed on Wednesday afternoon.

While the central bank chief’s tenure as chair ends May 15, his term as a member of the board of governors continues until January 2028.

Since returning to power last year, Trump has frequently criticised and insulted Powell for not cutting interest rates – a policy that would turbocharge economic activity but could fuel inflation.

In January, Powell made headlines when he revealed Trump’s Justice Department had opened a criminal probe against him over cost overruns on a building renovation project.

Powell called the move a pressure tactic designed to erode the Fed’s independence, and vowed to stay on until the investigation was concluded “with transparency and finality.”

Republican Thom Tillis on the Senate’s banking committee supported Powell’s position, saying he would hold up confirmation of Trump’s Fed chair nominee, Kevin Warsh, until the probe was dropped or completed.

On Friday, the Justice Department said it was dropping the investigation, and Tillis indicated days later that he would support Warsh’s confirmation.

Trump’s assaults on the Fed have been unprecedented. He has also attempted to unseat another Fed governor, Lisa Cook, over fraud allegations. A Supreme Court case on that attempt is ongoing.

Given that context, analysts were divided on whether Powell would stay on as a member of the board even after his term as chief ends – a situation that would be unusual, but not without precedent.

Gregory Daco, chief economist at EY-Parthenon, said he thought Powell would remain, adding that it “would help preserve institutional continuity, anchor the existing communication approach, and provide a stabilising counterweight during the transition.”

Future path

While much attention will be on Powell’s plans, policymakers will be focused on the way forward for the US economy, as it battles years of higher-than-expected inflation and recent weak jobs growth.

The Federal Reserve has a dual mandate of keeping inflation to its long-term two-percent target while ensuring maximum employment.

Higher energy prices due to the Middle East war caused US inflation to spike in March, and while such supply shocks are often treated as temporary, central bankers have expressed concern that effects could be more lasting.

Surging energy prices could also slow down economic activity by raising production costs, affecting the employment side of the mandate.

In a note, Oxford Economics said there was “virtually no chance” that rates would be cut at this week’s meeting.

“We’ll look for any indication that Fed officials’ assessment of the risks to their outlook has changed since the mid-March meeting,” wrote Nancy Vanden Houten, lead US Economist at Oxford Economics.

At their last gathering, Federal Open Market Committee members said the risk of inflation rising and growth slowing had increased since the start of the war.

The Fed had been on a path of rate cuts late last year, buoyed by progress in its fight against inflation and aimed at addressing the labour market weakness.

Now, however, analysts say the way forward is far from clear.

“There is, in my opinion, a non-negligible possibility that the statement could incorporate a two-sided formulation that would acknowledge that rate hikes could be appropriate if inflation remains above-target,” Daco told AFP. — AFP

LONDON, April 29 — Opec and its allies will lose ‌some of their power over the oil market when the United Arab Emirates leaves the group on May 1, but the rest of ​the producer alliance is likely to stick together and continue to coordinate on oil supply policy, Opec+ delegates and analysts said on Tuesday.

The UAE is the fourth-largest producer in the Organization of the Petroleum Exporting Countries and said it would quit the group on Tuesday after nearly 60 years as a member. That will free Abu Dhabi from the oil ‌production targets imposed by Opec and its allies to balance supply and demand.

The UAE’s exit came as a shock, said five Opec+ sources, who asked not to be named as they ​are not allowed to speak to the press.

The exit would complicate Opec+’s efforts to balance the market through adjustments to supply because the group would have control over less of global production, four of the five sources said.

The UAE will become the largest oil producer to depart Opec, a heavy blow to the organisation and its de facto leader Saudi Arabia. Abu Dhabi pumped around 3.4 million barrels per day (bpd) or about 3 per cent of the world’s crude supply before the US-Israeli war on Iran forced it ​and other Middle East Gulf producers to curb shipments and shut down some production.

Opec and the Saudi government communication office did not immediately reply to a request for comment.

Once outside Opec, the UAE will join the ranks of independent oil producers that pump at will, such as the United States and Brazil. For now, there is not much the UAE can do to increase production or exports due to the effective closure of shipping through the Strait of Hormuz. If and when shipping recovers to pre-war levels, the UAE could increase output to the country’s capacity of 5 million bpd of crude oil and liquids.

There has been tension between the UAE and Saudi Arabia over the Emiratis’ production quota, which stands at 3.5 million bpd. The UAE has asked for a bigger quota to reflect the fact that ‌it had expanded capacity as part of a $150 billion investment program.

“For years, Abu Dhabi has been looking to monetise its investment in expanding capacity,” said Helima Croft from RBC Capital Markets. The US-Israeli war on Iran would, ⁠however, slow those plans down after drones and rockets damaged the UAE’s production facilities, she said.

The war has resulted ⁠in the biggest-ever global energy supply disruption in terms of outright daily oil production, according to the International Energy Agency. The conflict has also exposed discord among ⁠Gulf nations, including between the UAE and Saudi Arabia.

Rumours of ⁠the UAE’s exit from Opec+ have circulated for years ⁠amid worsening relations with Riyadh over conflicts in Sudan, Somalia and Yemen. The UAE has also grown increasingly close to the United States and Israel.

UAE Oil Minister Suhail Mohamed Al Mazrouei arrives at the Opec headquarters in Vienna on December 6, 2019. — Reuters pic

Iraq stays in

The UAE is the fourth producer to quit Opec+ in recent years, and by far the biggest. Angola quit the bloc in 2024, citing disagreements over production levels. Ecuador quit Opec in 2020 and Qatar in 2019.

Iraq, the third-largest producer in Opec+ after Saudi Arabia and Russia, has no plan to ⁠leave Opec+ as it wants stable and acceptable oil prices, two Iraqi oil officials said on Tuesday.

Opec+ will not collapse as Saudi Arabia will still want to manage the market with the help of the group, said Gary Ross, a veteran Opec watcher and CEO of Black Gold Investors.

“At the end of the day, Saudi Arabia was essentially Opec – the only country with spare capacity,” said Ross. Saudi Arabia can produce 12.5 million bpd, but has in recent years kept production under 10 million.

Opec+ membership gives countries more diplomatic and international weight – one of the reasons cited by analysts behind Iran’s decision to stay in Opec even at the peak of its fight with Gulf countries.

US President Donald Trump has accused Opec of “ripping off the rest of the world” by inflating oil prices. Trump has said the US may reconsider military support to the Gulf because ⁠of Opec oil policies.

It was, however, Trump who helped convince Opec+ to cut output in 2020 during the COVID pandemic as oil prices slumped and US producers suffered.

“The UAE withdrawal marks a significant shift for Opec... the longer-term implication is a structurally weaker Opec,” said Jorge Leon, a former Opec official who now works at Rystad Energy.

Opec+ members will be more focused on ⁠rebuilding facilities hit by the war rather than on embarking on production cuts in the near future, said Croft. Hence, the broader Opec+ breakup is not on the cards for now, she added.

People walk past an installation depicting a barrel of oil with the Opec logo during the COP29 United Nations climate change conference in Baku on November 19, 2024. — Reuters pic

Declining power

Opec’s sway over the market has ⁠been declining for decades.

Formed ⁠in 1960, Opec once controlled over 50 per cent of global output. As rivals’ production grew, the group’s share has declined to around 30 per cent of the world’s total oil and oil liquids output of 105 million barrels per day last year.

The United States, which used ​to rely on imports from Opec members, has become its biggest rival over the past 15 years. The US has raised production to ​as much as 20 per cent of the world’s total on the back of its shale oil boom.

The US ‌production spike prompted Opec to team up in 2016 with several non-Opec producers to form Opec+, a group led by Russia – previously one of ​Saudi Arabia’s top rivals in the oil industry.

The alliance gave the group ​control over around 50 per cent of the world’s total oil production in 2025, according to the International Energy Agency. The loss of the UAE means it will decline to around 45 per cent. — Reuters

BANGKOK, April 29 — The closure of the Strait of Hormuz has given Thailand impetus ‌to advance a longstanding plan to create a logistics link ​between the Indian and Pacific oceans, with its government on Monday seeking to court Singapore as a potential investor.

Thailand’s government has said it ‌is reviving a “Land Bridge” project across its narrow southern peninsula after recent disruptions in ​the Strait of Hormuz underscored the vulnerability of global shipping choke-points, including the nearby Malacca Strait.

The previous administration drafted a law for the Land Bridge but the proposal fell by the wayside during a ​bout of political turbulence, with public hearings and environmental and health impact assessments incomplete and some resistance from residents.

A proposal is expected to be submitted to cabinet in June or July and the government would seek investors for the estimated ฿1 trillion baht (RM121 billion) project, potentially starting in the third quarter, Transport Minister Phiphat Ratchakitprakarn said ‌at the weekend.

Alternative route

A decades-old idea, the Land Bridge envisions two deep-sea ports, one ⁠in Ranong on the Andaman Sea and ⁠another in Chumphon on the Gulf of Thailand, linked by ⁠90 km of road ⁠and rail plus energy infrastructure ⁠like pipelines.

The project would offer an alternative route to the Malacca Strait, the 900-km long channel bounded by Indonesia, Thailand, Malaysia and Singapore, which provides the shortest sea route ⁠from East Asia to the Middle East and Europe.

Thai Prime Minister Anutin Charnvirakul outlined the plan during a meeting on Monday with Chan Chun Sing, the defence minister of Singapore, a big regional investor that sits at the end of the Malacca Strait, through which more than 100,000 mostly commercial ships passed last year.

“He sees it as ⁠an economic opportunity for Thailand and for foreign investors, if the project can be successfully pushed forward,” Thai government spokesperson Rachada Dhanadirek said, referring to Chan, adding ⁠he expressed interest in the plan.

Indonesia’s finance minister last week caused a stir by ⁠openly musing about ⁠ways countries could impose tolls on ships as a way to monetise the Malacca Strait, before ​saying that would not be possible and leading to ​several subsequent clarifications.

The Land Bridge is regarded ‌as more viable than the “Kra Canal”, a centuries-old idea to ​cut a shipping passage across southern ​Thailand, which met resistence due to environmental, financial and security concerns. — Reuters

KUALA LUMPUR, April 29 — The ringgit strengthened against the US dollar but was mixed against other currencies in early trade today, amid cautious sentiment over oil price volatility and developments in the Strait of Hormuz, an analyst said.

At 8.03 am, the local currency stood at 3.9475/9540 against the greenback, compared with 3.9505/9550 at Tuesday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit is expected to trade within a narrow range as market participants await further clarity on the situation in the Strait of Hormuz.

At the time of writing, oil prices remained volatile following the United Arab Emirates’ exit from the OPEC alliance. West Texas Intermediate fell 0.83 per cent to US$99.10 per barrel, while Brent crude slipped 0.59 per cent to US$110.60 per barrel.

“News of the UAE’s departure from OPEC in May, after more than six decades of membership, is set to reshape the oil and gas landscape. The country will be free to determine its output levels in line with its investment in the sector,” Mohd Afzanizam told Bernama.

However, for now, the focus is on supply cuts amid the war in Iran, which has disrupted the flow of oil and gas through the Strait of Hormuz, he added.

Mohd Afzanizam said US data showed the Conference Board’s Consumer Confidence Index rose to 92.8 in April following a ceasefire in the Iran conflict.

However, he added that expectations of a US recession over the next 12 months have risen, while plans to purchase big-ticket items have declined.

“Tonight, the Federal Open Market Committee’s decision will be closely watched for signals on whether policymakers are becoming more wary of growth prospects amid a higher inflation environment,” he said.

At the opening, the ringgit was mixed against a basket of major currencies.

It rose against the Japanese yen to 2.4740/4782 from Tuesday’s 2.4756/4785, but weakened against the British pound to 5.3394/3482 from 5.3292/3353, and slipped against the euro to 4.6261/6337 from 4.6189/6242.

The local currency traded mostly higher against Asean peers.

It edged up against the Singapore dollar to 3.0937/0990 from 3.0943/0983 at Tuesday’s close and strengthened against the Thai baht to 12.1484/1759 from 12.1494/1685.

The ringgit was little changed against the Indonesian rupiah at 228.9/229.4 and was steady against the Philippine peso at 6.44/6.45 from 6.44/6.46. — Bernama

OAKLAND, April 29 — Billionaire Elon Musk took the stand Tuesday to accuse OpenAI and its boss Sam Altman of betraying the AI company’s altruistic origins, in a trial that could have far-reaching consequences for the industry and oblige the ChatGPT maker to profoundly revamp its business.

The legal clash across the bay from San Francisco is widely seen as a battle of egos pitting the world’s richest person against a startup Musk once backed and now trails in the booming AI sector.

At the heart of the case is Musk’s accusation that Altman drove OpenAI to become a profit-seeking juggernaut looking to dethrone the likes of Google, Apple and Microsoft, and betraying its non-profit mission.

“If a verdict comes up that effectively makes it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed – that’s my concern,” Musk said on the stand after being called as the trial’s first witness.

Musk traced his interest in OpenAI to a belief that Google did not care about AI safety as it blazed ahead with the technology.

He told the court he backed the project in the spirit of it being a non-profit endeavour that made the good of society the top priority, with any technology developed made open source.

“I didn’t want to pave the road to hell with good intentions,” Musk said of his vision for OpenAI. “I didn’t want to fund OpenAI to make safe AI and then find out that it was actually making unsafe AI.”

Musk also said he was instrumental in recruiting key hires, including Ilya Sutskver, a top AI engineer then at Google who went on to play a major role in driving new technology at the lab.

The world’s richest man said he also made initial contact with AI chip maker Nvidia and tech giant Microsoft to provide crucial technology, opening doors that would not have been available to OpenAI’s other co-founders, who were little known at the time.

A protester with Stop AI stands outside the Ronald V. Dellums Federal Building and US Courthouse as the Musk v. Altman trial begins in Oakland on April 27, 2026. — AFP pic

Anything to attack

Altman and Musk, along with a small group of others, co-founded OpenAI in 2015, promising a non-profit lab whose technology “would belong to the world.”

Musk, who will resume testimony Wednesday, invested at least US$38 million (RM150 million) before he left the project in 2018, and the OpenAI Foundation created its commercial subsidiary a year later.

Microsoft then began investing and increased its commitment to US$13 billion, a stake now valued at approximately US$135 billion.

William Savitt, the lead attorney for OpenAI, said in opening remarks that the company had no choice but to open up to outside investors given the high costs of AI and that, in any case, the OpenAI non-profit arm “remains in control of the organization.”

Savitt added that a bitter Musk “will do anything he can to attack OpenAI” out of regret for having left the project

Since his exit, OpenAI has become an AI superpower valued at US$852 billion and is preparing for a high-profile IPO on the back of its ChatGPT chatbot, which took the world by storm in 2022.

Musk eventually set up his own lab, xAI, which he merged into SpaceX in February. SpaceX itself is valued at US$1.25 trillion, and its IPO, expected in June, could become the biggest in history.

An image depicting OpenAI CEO Sam Altman is displayed outside the Ronald V. Dellums Federal Building in Oakland on April 27, 2026. — AFP pic

‘Scam Altman’

Moments ahead of opening statements, Musk and Altman, who both sat with their lawyers at the federal court in Oakland, were asked by Judge Yvonne Gonzalez Rogers to keep social media posts to a minimum during the trial.

In a barrage of posts Monday amplified on the X platform he owns, Musk derisively called the OpenAI chief “Scam Altman.”

Judge Gonzalez Rogers will decide by late May – guided by the advisory jury’s findings – whether OpenAI broke a promise to Musk, or just smartly rode the technology to glory.

Along with calling for OpenAI to be forced to revert to a pure non-profit, Musk’s suit urges the ouster of co-founders Altman and Greg Brockman, the startup’s president.

Musk, who has sought as much as US$134 billion in damages, has renounced any personal benefit, pledging to redirect any award to the OpenAI non-profit. — AFP

DUBAI, April 28 — The United Arab Emirates said today it was quitting Opec and Opec+, dealing a heavy blow to the oil exporting groups and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a ‌historic energy shock and unsettled the global economy.

The loss of the UAE, a longstanding Opec member, could create disarray and weaken the group, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.

UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters the decision was taken after a careful look at the regional power’s energy strategies.

Asked whether the UAE consulted with Saudi Arabia, he said the UAE did not raise the issue with any other country.

“This is a policy decision, it has been done after a careful look at current and future policies related to level of production,” ‌said the energy minister.

Opec Gulf producers have already been struggling to ship exports through ⁠the Strait of Hormuz, a chokepoint between ⁠Iran and Oman through which a fifth of the world’s crude ⁠oil and liquefied natural gas normally ⁠passes, because of Iranian threats ⁠and attacks against vessels.

Mazrouei said the move would not have a huge impact on the market because of the situation in the strait.

But the UAE exit from Opec represents a ⁠win for US President Donald Trump, who has accused the organisation of “ripping off the rest of the world” by inflating oil prices.

Trump has also linked US military support for the Gulf with oil prices, saying that while the US defends Opec members they “exploit this by imposing high oil prices”.

The move came after the UAE, a regional business hub and ⁠one of Washington’s most important allies, criticised fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the war.

Anwar Gargash, the diplomatic adviser ⁠for the UAE president, criticised the Arab and Gulf response to the Iranian attacks in a session ⁠at the ⁠Gulf Influencers Forum on Monday.

“The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically,” Gargash said.

“I expect this weak stance from the ‌Arab League and I am not surprised by it, but I haven’t expected it from the (Gulf) Cooperation Council and I am surprised by it,” he said. — Reuters

KUALA LUMPUR, April 28 — The ringgit closed higher against major and regional currencies but was flat against the US dollar today amid cautious sentiments over rising crude oil prices.

At 6pm, the local note stood at 3.9505/9550 against the greenback from 3.9505/9545 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit traded within a narrow range as hopes for a resolution to the Iran conflict waned, pushing crude oil prices higher.

He said West Texas Intermediate (WTI) and Brent crude prices rose by 2.55 per cent and 2.74 per cent to US$98.83 per barrel and US$111.20 per barrel, respectively.

"Investors will also monitor the Federal Open Market Committee (FOMC) as it begins its two-day meeting today,” he told Bernama.

This week will also see a high-stakes sequence of policy decisions from the Bank of Japan, the United States Federal Reserve, the European Central Bank and the Bank of England.

At the close, the ringgit traded higher against a basket of major currencies.

It appreciated against the euro to 4.6189/6242 from 4.6387/6434 at the close on Monday, strengthened versus the Japanese yen to 2.4756/4785 from 2.4810/4837 yesterday, and rose against the British pound to 5.3292/3353 from 5.3525/3580 previously.

At the same time, the local currency also strengthened against regional peers.

It advanced against the Singapore dollar to 3.0943/0983 from 3.1018/1052 at Monday’s close and jumped against the Thai baht to 12.1494/1685 from 12.2129/2309 yesterday.

It had also gained against the Indonesian rupiah to 229.1/229.4 from 229.5/229.8 yesterday, and appreciated against the Philippine peso to 6.44/6.46 from 6.50/6.51 previously. — Bernama

KUALA LUMPUR, April 28 — Bursa Malaysia rose 0.71 per cent to end at the day’s high on the back of improving local sentiment and selective buying in index-linked counters following the recent pullback.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 12.33 points to 1,729.60 from yesterday’s close of 1,717.27.

The benchmark index, which opened 4.13 points higher at 1,721.40, hit a low of 1,714.12 in the mid-morning session before gaining momentum for the rest of the day toward closing.   

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional markets were mixed as focus remained on the West Asia conflict and upcoming US megacap earnings.

Market breadth was marginally positive, with gainers edging out losers 629 to 626. A total of 530 counters were unchanged, 933 untraded, and 86 suspended.

Turnover inched up to 3.85 billion units worth RM3.38 billion compared with 3.74 billion units valued at RM3.30 billion yesterday.

Thong told Bernama that the FBM KLCI is holding above the 1,700 level and rebounding from around 1,680 last week, suggesting that investors are beginning to accumulate on dips, although the upside may be capped as the index tests the 1,730 resistance zone.

He said that external risks continue to linger as developments in West Asia remain fluid, with peace talks yet to reach a clear resolution, while tensions around the Strait of Hormuz continue to keep oil prices elevated.

Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said gains were primarily supported by petrochemical stocks, tracking Brent crude prices, which rose above US$110 per barrel.

At the same time, the FBM70 continued to outperform, highlighting a clear internal rotation within the domestic market, he said.

“While this may appear as an improvement in risk appetite, the underlying pattern suggests a more defensive rotation in nature, where rising global oil prices and persistent geopolitical tensions are driving flows into energy-linked beneficiaries and domestically resilient sectors, rather than signalling a broad-based cyclical recovery,” he added.

Among heavyweights, Maybank rose 12 sen to RM11.22, Public Bank added six sen to RM4.78, CIMB improved 13 sen to RM7.78, IHH Healthcare gained four sen to RM8.81, while Tenaga Nasional was six sen lower at RM14.52.

On the most active list, Luster Industries eased by half-a-sen to 3.5 sen, Zetrix AI fell one sen to 86 sen, VS Industry dropped 1.5 sen to 21 sen, while UEM Sunrise rose 7.5 sen to 66.5 sen, and MRCB bagged two sen to 33.5 sen.

Top gainers included Nestle, which garnered RM3.18 to RM102.30, Fraser & Neave advanced 72 sen to RM31.40, KESM surged 46 sen to RM4.19, United Plantations climbed 38 sen to RM32.00, and Dutch Lady perked up 28 sen to RM32.78.

As for top losers, Malaysian Pacific Industries, which shaved off 38 sen to RM37.50, Allianz decreased 36 sen to RM20.80, Kelington and Batu Kawan slipped 16 sen each to RM6.22 and RM20.98, respectively, and UWC lost 15 sen to RM5.12. — Bernama

SINGAPORE, April 28 — Stocks held their ground and oil rose on Tuesday as investors weighed the stalemate in the Iran conflict, while the yen was steady after a hawkish split at the Bank ‌of Japan underlined fears over the war’s impact on inflation.

The US was reviewing Tehran’s latest proposal to ​resolve the war, even as a US official said President Donald Trump was unhappy with the plan as it did not address Iran’s nuclear programme.

That leaves the two-month-long conflict at an impasse with energy and other supplies through the critical Strait of Hormuz still mainly shut, pushing oil prices ​above US$110 (RM434) a barrel on Tuesday.

Brent crude oil surged 2.7 per cent to US$111.20 a barrel, a three-week high, while US oil climbed 2.9 per cent to US$99.10.

Oil prices have steadily climbed in recent days as hopes ebb for an imminent peace deal, pushing up bond yields around the world in recent weeks.

Futures for the US benchmark S&P 500 stock index slipped 0.1 per cent and those for tech-focused Nasdaq fell 0.4 per cent.

European stocks dipped in early trading but the STOXX 600 index was last flat.

Corporate ‌results roll in

“Earnings season has helped markets look through the disruption, but the longer key oil flows remain constrained, ⁠the greater the risk that higher energy costs begin to bite,” ⁠said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

The US S&P 500 hit ⁠another record on Monday after rising for four ⁠weeks on optimism over ⁠a possible peace deal and ongoing excitement around AI.

Investors are focusing this week on earnings from tech giants Microsoft, Alphabet, Amazon, Meta Platforms and Apple which will test the blistering AI-driven rally.

Elsewhere, the dollar index climbed 0.2 per cent as the pound and euro both ⁠slipped by the same amount.

The dollar has been one of the few safe-haven assets during the Iran conflict, although it has given up much of its March gains in the last few weeks.

“The twists and turns of US-Iran peace negotiations continue to buffet markets,” and doubts over the progress of peace talks was pushing the dollar higher, said Nick Rees, head of macro research at Monex Europe.

Bank of Japan split on rates

The BOJ left short-term rates unchanged on Tuesday ⁠at 0.75 per cent, in the first of several central bank meetings this week that could shed light on the impact of the conflict.

“The 6-3 vote split and the stronger language on future policy adjustment suggest the ⁠bar for another hike may be falling,” said Charu Chanana, chief investment strategist at Saxo.

The yen initially strengthened but was last slightly lower ⁠at 159.53 per ⁠dollar, putting it near 160. A breach beyond that threshold has markets worried Tokyo might step in to support the currency.

Japan’s Nikkei stock ​index fell 1 per cent from a record high hit on Monday.

Global monetary policy ​will be in the spotlight this week, with the US Federal ‌Reserve, the Bank of England and the European Central Bank due to ​announce decisions after the BOJ.

All are expected ​to keep rates unchanged but attention will be on comments from policymakers on pricing pressure. — Reuters

SINGAPORE, April 28 — The yen firmed on Tuesday ​after the Bank of Japan held interest rates steady in a split vote, the first decision in a busy week for major central banks including the Federal Reserve as the Iran war loomed large over policymakers ‌and markets.

The yen was 0.2 per cent higher at 159.02 per dollar and 0.3 per cent firmer against the euro at 186.25, its ​strongest level against the European currency in the past two weeks, after the BOJ’s verdict that saw three of its nine-member board break ranks to call for higher borrowing costs.

“Three dissents is shocking,” said David Chao, global market strategist for Asia-Pacific at Invesco in Singapore. “The BOJ is sending a signal here – expectations for a ​rate hike in June have certainly increased,” he added. “The time of the cheap yen may be coming to an end.”

The persistent yen weakness remains a source of concern for Tokyo. Earlier on Tuesday, Japanese Finance Minister Satsuki Katayama warned speculators again, saying that volatility in the crude oil futures market is affecting currency markets, adding that authorities are “standing by around the clock” to take “decisive action”.

In its quarterly outlook report, the BOJ also sharply revised up its core inflation forecasts for the fiscal years ending March 2027 ‌and March 2028, while slashing its growth forecasts for both years.

Governor Kazuo Ueda will hold a post-policy press conference at 0630 GMT, ⁠with traders looking for clues to the timing of the next rate ⁠hike.

Markets are also watching out for the Federal Open Market Committee meeting on Wednesday. The ⁠US central bank is expected to keep rates ⁠on hold in what is ⁠likely to be chair Jerome Powell’s last meeting after Republican Senator Thom Tillis dropped his block on Kevin Warsh’s confirmation process on Sunday.

“It’s not a meeting where rates policy is on the front burner, but the FOMC assessment of the economy may improve,” said Steve Englander, global head ⁠of G10 FX research at Standard Chartered in New York. “The inflation picture is improving very slowly at best and could be an emerging issue for Warsh to deal with” when he takes office.

The Senate Banking Committee is also expected to advance Warsh’s nomination as Federal Reserve Chair to the full Senate, with a vote now set for 10am EDT (1400 GMT) on Wednesday.

The US dollar index, which measures the greenback’s strength against a basket of six currencies, snapped a two-day losing streak to trade 0.1 per cent higher at 98.51.

Central banks in ⁠the euro zone, the UK and Canada are among the others that will deliver rate decisions later this week, with the Iran war likely to take centre stage in policy deliberations.

“With every central bank that’s meeting, they’ve all made ⁠it very clear that in the fog of uncertainty about how the war will play out as far as both inflation and growth, it’s ⁠giving them every excuse ⁠they need to sit on their hands,” said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.

US President Donald Trump discussed a ​new Iranian proposal on resolving the war with his top national security aides on Monday. ​But a US official said later that Trump is unhappy with ‌the proposal because it did not address Iran’s nuclear program.

The euro was down 0.1 per cent ​at US$1.1713, while the British pound was trading at US$1.3531. The ​Australian dollar was flat at US$0.7185 and its New Zealand counterpart was down 0.1 per cent at US$0.5901.

Bitcoin was down 0.2 per cent at US$76,819.21, while ether fell by a similar magnitude to US$2,288.66. — Reuters

SYDNEY, April 28 — Australia unveiled draft laws on Tuesday that would tax tech giants Meta, Google and TikTok unless they voluntarily strike deals to pay local outlets for news.

Traditional media companies around the world are in a battle for survival as readers increasingly consume their news on social media.

Australia wants big tech companies to compensate local publishers for sharing articles that drive traffic on their platforms.

Prime Minister Anthony Albanese said tech giants Meta, Google and TikTok would be given a chance to strike content deals with local news publishers.

If they refused, they faced a compulsory levy that amounted to 2.25 per cent of their Australian revenue, he said.

“Large digital platforms cannot avoid their obligations under the news media bargaining code,” Albanese told reporters.

“At this point the three organisations are Meta, Google and TikTok.” The three firms were singled out based on a combination of their Australian revenues and large numbers of domestic users.

Meta, Google and TikTok did not immediately respond to a request for comment.

The draft laws have been designed to stop the tech giants from simply stripping news from their platforms – something Meta and Google have done in the past.

“What we are encouraging is for them to sit down with news organisations and get these deals done,” Albanese said.

When Canberra mooted similar laws in 2024, Facebook parent Meta announced that Australian users would no longer be able to access the “news” tab.

Meta had previously announced it would not renew content deals with news publishers in the United States, Britain, France and Germany.

‘Only fair’

Google has similarly threatened to restrict its search engine in Australia if forced to compensate news outlets.

Journalism needed to have a “monetary value attached to it”, Albanese said.

“It shouldn’t be able to be taken by a large multinational corporation and used to generate profits with no compensation.”

Supporters of such laws argue that social media companies attract users with news stories and hoover up online advertising dollars that would otherwise go to struggling newsrooms.

Australia’s University of Canberra has found that more than half the country uses social media as a source of news.

“People are increasingly getting their news directly from Facebook, from TikTok and Google,” Communications Minister Anika Wells said.

“We believe it’s only fair that large digital platforms contribute to the hard work that enriches their feeds and that drives their revenue.”

The draft laws were presented for public consultation on Tuesday, which will close in May.

They would then be introduced into parliament later this year. — AFP

KUALA LUMPUR, April 28 — The ringgit traded mostly higher against other major and Asian currencies in early trade today amid cautious sentiment in the currency market.

The domestic unit, however, was little changed against the US dollar as investors adopted a wait-and-see stance ahead of the Federal Open Market Committee’s (FOMC) third meeting of the year, an analyst said.

At 8.18 am, the local currency stood at 3.9505/9550 against the greenback, compared with 3.9505/9545 at Monday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit was expected to trade within a narrow range today amid cautious market sentiment.

“Traders and investors will be observing the latest assessment by the FOMC members when they conclude their two-day meeting on April 29,” he told Bernama.

At the opening, the ringgit appreciated against a basket of major currencies.

It rose against the British pound to 5.3482/3543 from 5.3525/3580 at Monday’s close, was higher against the Japanese yen to 2.4791/4821 from Monday’s  2.4810/4837, and eased against the euro to 4.6316/6368 from Monday’s 4.6387/6434.

The local currency traded mostly higher against Asean peers.

It went up against the Singapore dollar to 3.1011/1051 from 3.1018/1052 at Monday’s close, and rose against the Thai baht to 12.2061/2257 from yesterday’s close of 12.2129/2309.

The domestic unit was flat against the Indonesian rupiah and the Philippine peso at 229.5/229.8 and 6.50/6.51, respectively. — Bernama

KUALA LUMPUR, April 28 — Bursa Malaysia started Tuesday’s session on a firmer note, buoyed by sustained investor appetite for data centre-linked counters, particularly in the technology and utilities sectors, following robust earnings reported by United States (US) semiconductor players.

At 9.10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 6.81 points, or 0.39 per cent, to 1,724.08 from Monday’s close of 1,717.27.

The benchmark index had earlier opened 4.13 points higher at 1,721.40.

Malacca Securities Sdn Bhd said in a note that amid expectations of a leadership transition at the US Federal Reserve, with Kevin Warsh seen as a potential successor to Jerome Powell, his view that artificial intelligence (AI)-driven productivity can help ease inflation may continue to underpin sentiment towards semiconductor and AI-related stocks. — Bernama

OAKLAND, April 28 — Elon Musk’s courtroom showdown with Sam Altman got underway here Monday with the selection of jurors entrusted to decide whether the co-founders of OpenAI betrayed a mission to build artificial intelligence for the good of humanity, not for money.

The legal clash in a courtroom across the bay from San Francisco pits Musk, the world’s richest person, against a startup he once backed and now competes with in the booming AI sector.

OpenAI’s ChatGPT is a formidable rival to the chatbot Grok, made by Musk’s xAI lab.

“This is a tech soap opera that all investors will be watching,” Wedbush analyst Dan Ives said in a note to investors.

“There will be a lot of dirt and slings thrown around in court between Musk and Altman and that is not a good thing for anyone involved...but Musk has made this personal.”

Jurors were asked their thoughts of Musk and Altman, and whether they could put aside any bias while considering evidence at trial.

“Elon doesn’t care about people, much like our president,” said a US retiree being considered for the panel.

An Oakland city employee in the jury pool referred to Musk as “a jerk.”

“Brilliant engineer, brilliant businessman, but many of his actions were very harmful for the country,” a prospective juror who works for a climate tech company said of Musk.

In contrast, Altman’s name struck potential jurors as familiar but did not evoke strong opinion.

Musk’s lawsuit is part of a feud between him and OpenAI Chief Executive Sam Altman, but it also spotlights a debate about whether AI should ultimately serve to benefit a privileged few or society as a whole.

Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology “would belong to the world.”

Musk pumped millions of dollars into the lab, which he subsequently left.

However, OpenAI established a commercial subsidiary, as it needed hundreds of billions of dollars for data centers to power its technology.

Microsoft has poured billions of dollars into OpenAI and its CEO Satya Nadella is among those slated to testify at the trial.

Demonstrators protest outside the courthouse at the Ronald V. Dellums Federal Building as jury selection begins in the lawsuit between Elon Musk and OpenAI in Oakland on April 27, 2026. — AFP pic

Benevolence or power?

Musk argues in his lawsuit that he was deceived about OpenAI’s mission being altruistic.

He fired off a social media post on Monday calling the OpenAI chief “Scam Altman.”

San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to his quest for absolute control rather than its non-profit status.

“This case has always been about Elon generating more power and more money for what he wants,” OpenAI said in a recent X post. “His lawsuit remains nothing more than a harassment campaign that’s driven by ego, jealousy and a desire to slow down a competitor.”

The startup noted that days after Musk entered the AI race in 2023 he called for a six-month moratorium on development of advanced AI.

The judge presiding over the trial will decide by late May – guided by an advisory jury’s findings – whether OpenAI broke a promise to Musk in a drive to lead in AI, or just smartly rode the technology to market dominance.

Along with calling for OpenAI to be forced to revert to a pure non-profit, Musk’s suit urges the ouster of Altman and co-founder Greg Brockman, who is the startup’s president.

Musk, who had sought as much as US$134 billion (RM529 billion) in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI non-profit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself.

OpenAI now has a hybrid governance structure giving its non-profit foundation control over a for-profit arm.

Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie. — AFP

NEW YORK, April 28 — Oil prices rose and stock markets moved unevenly on Monday as the prospect of Iran peace talks remained stalled, ahead of a week full of central bank decisions and corporate earnings.

Iranian Foreign Minister Abbas Araghchi’s visit to Islamabad had fanned hopes for new negotiations with Washington at the weekend but US President Donald Trump scrapped a planned trip by envoys on Saturday.

Both main international oil contracts pushed higher, with Brent crude rising to more than US$108 (RM426) a barrel as the crucial Strait of Hormuz waterway remained largely closed, although lingering hopes that a deal could eventually be reached tempered gains.

Stock markets were mixed, with both the S&P 500 and Nasdaq edging higher to finish at all-time records. But the Dow retreated, along with several leading European and Asian indices.

“It may be that hopes of a diplomatic breakthrough were pretty faint to start with, and markets are now in wait-and-see territory ahead of a heavy week of earnings and economic touchpoints,” said Derren Nathan, head of equity research at Hargreaves Lansdown.

With energy prices remaining high, the US Federal Reserve is expected to keep interest rates unchanged on Wednesday, followed by similar decisions from the European Central Bank and Bank of England.

The US calendar also includes a heavy schedule of earnings from tech giants such as Apple and Meta Platforms, as well as from older industrial companies like Ford and ExxonMobil.

“So far, the earnings season has been relatively strong. The environment is very clear: we are not in a recession,” said Adam Sarhan of 50 Park Investments.

Markets will “remain bullish until proven otherwise,” Sarhan added.

“Investors have been encouraged by corporate news flow over the past few weeks, leading to higher equity prices,” said Russ Mould, investment director at AJ Bell.

He added, however, that “higher oil for longer spells trouble for inflation, which in turn could act as a headwind for the economy”.

Tehran’s top diplomat blamed Washington on Monday for the failure of talks in Pakistan this month – the first and only round of negotiations to end the war.

Araghchi blamed the United States for its “excessive demands”, adding that “safe passage through the Strait of Hormuz is an important global issue”.

Trump told Fox News that if Iran wanted talks, “they can call us” – though he has said the cancellation does not signal a return to hostilities.

Citing a US official and two other sources with knowledge of the matter, US media outlet Axios reported on Sunday that Iran had sent a new proposal to end the war centred on reopening the Strait of Hormuz and ending a US naval blockade there, with nuclear negotiations postponed for a later stage. — AFP