KUALA LUMPUR, Aug 3 — Malaysia’s factory conditions showed modest improvement in July as new orders continued to rise, according to the latest S&P Global Manufacturing Purchasing Managers’ Index (PMI). The seasonally adjusted PMI held steady at 50.7, unchanged from June, signalling mild expansion in activity.

S&P Global economist Maryam Baluch said price pressures had eased, with input costs and selling prices increasing at their slowest pace in five months. The firm noted that the continued strengthening in business conditions suggests official data for the third quarter may reflect “solid expansions” in both GDP and manufacturing output.

Malaysia’s economy grew 5.8 per cent in the second quarter, supported by stronger electronics demand and a rebound in mining production. However, business inflation has climbed to its fastest pace in four years due to higher energy costs.

Despite the uptick in orders, overall momentum remained limited. Output rose only slightly, employment fell, and business confidence weakened amid geopolitical tensions — particularly the ongoing conflict in the Middle East — which continued to weigh on sentiment. S&P Global reported that manufacturers’ expectations for future production remained historically subdued, with July marking the weakest confidence level in three months.

Some firms anticipated firmer demand, new contracts and product launches to support future growth, but many remained cautious due to soft market conditions and global uncertainties.

KUALA LUMPUR, Aug 3 —The ringgit opened slightly higher against the US dollar on Monday ahead of the release of key United States (US) economic data today amid easing tensions in West Asia.

At 8am, the local currency edged up to 4.0805/0900 against the greenback from last Friday’s close of  4.0835/0875.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Institute for Supply Management (ISM) Manufacturing PMI for July will be released tonight, with the consensus estimate at 54.0, which is higher than June's reading of 53.3.

"Additionally, uncertainties over the West Asia conflict also weighed on market sentiment, with Brent crude oil rising 4.59 per cent to US$88.10 per barrel.

"President Donald Trump reportedly said over the weekend that he has cancelled the planned military strikes against Iran as both countries are expected to reach a deal on the nuclear programme and the full reopening of the Strait of Hormuz,” he told Bernama.

However, Mohd Afzanizam said the market remains cautious; thus, the local note is expected to trade within a narrow range of RM4.07 to RM4.09 today.

Meanwhile, SPI Asset Management managing partner Stephen Innes said the US dollar weakened after Trump cancelled the planned strike on Iran over the weekend.

He said the decision has sent oil prices and inflation breakevens lower, pulling down the US interest-rate curve.

"That combination should be supportive for the ringgit and, more broadly, for risk assets across Asia today,” he added.

The ringgit traded lower against a basket of major currencies at the opening.

It slipped against the Japanese yen to 2.5880/5942 from 2.5520/5548 at last Friday's close, fell versus the euro to 4.7089/7199 from 4.6981/7027 and depreciated against the British pound to 5.5038/5166 from 5.4923/4977.

Against regional currencies, the ringgit traded mixed.

It gained against the Indonesian rupiah to  226.4/227.0 from 226.6/226.8 and rose versus the Thai baht to 12.2211/2558 from 12.2264/2435.

However, it softened against the Singapore dollar to 3.1844/1921 from 3.1823/1856 and was little changed versus the Philippine peso to 6.66/6.68 from 6.66/6.67. — Bernama

TOKYO, Aug 3 — Oil prices tumbled today in early Asia trade after US President Donald Trump announced fresh talks with Iran to end the Middle East war and reopen the Strait of Hormuz.

The war, which began in late February when the United States and Israel attacked Iran, has caused oil prices to swing sharply as it effectively closed the waterway, a vital route for global oil and gas supplies.

At around 2250 GMT (6.50pm Malaysian time) yesterday, the price of a barrel of Brent North Sea, the benchmark international oil contract, for September delivery was down 4.69 per cent at US$83.81 (RM342).

Its American equivalent, West Texas Intermediate, fell 4.67 per cent to US$80.72.

Trump said yesterday that fresh negotiations with Iran will begin on Monday after holding off on major strikes against the Islamic republic to pursue a deal.

"Now what we're doing is we're talking to them in the form of a negotiation. It begins tomorrow afternoon," he said, without providing further details of the venue of the talks or the participants.

Hours after the US had called off major strikes Iran yesterday said it was nearing a deal with Oman over a new route through the Strait of Hormuz. — AFP

HONG KONG, Aug 3 — Print-outs of articles about the global memory chip shortage are pinned beside a price list at a Hong Kong computer shop, offering an explanation to confused customers feeling the pinch.

Price rises for goods such as laptops and smartphones, with cars potentially next, have been an unwelcome side-effect of the artificial intelligence gold rush — and the squeeze is far from over.

Samsung Electronics’ chief financial officer said this week shortages of microchips that store digital data will likely deepen in 2027 and stay tight through 2028.

The crunch has been nicknamed “RAMaggedon” after the components called RAM, or “random-access memory”.

It is caused as profit-hungry chipmakers pivot to producing high-bandwidth memory (HBM) — a more advanced type of computer memory in huge demand to help train and run AI tools.

The articles on display at In-Technology Services — one of many compact vendors crammed into Hong Kong’s Wan Chai Computer Centre — are to inform customers who “don’t know what happened,” manager Wade Lam told AFP.

The centre’s shops sell tech equipment of all sorts, from computer parts to gadgets and games consoles.

Ken Tam, manager of Videocom Computer, which specialises in custom-built PCs, said business has halved since price rises began in September.

Sixteen gigabytes of RAM used to cost HK$300-400 (RM163-RM204) but the price has now hit HK$1,500, he said.

“When it suddenly gets so expensive, customers have a psychological barrier,” Tam told AFP.

“If they need it, they will buy it,” but otherwise they will wait, or “lower their standards” and buy a less high-performing memory chip, he said.

RAM (Random Access Memory) chips are seen for sale in a computer centre in Hong Kong on July 28, 2026. — AFP pic

Chinese competition 

Analyst Ellie Wang at the Taiwan-based market research firm TrendForce said memory prices for PCs and smartphones were up around five to six times compared to a year ago.

The AI boom has brought humungous profits and share price jumps to the world’s top three memory chip makers: South Korea’s Samsung Electronics and SK hynix, along with US giant Micron.

In fourth place is ChangXin Memory Technologies (CXMT), which became mainland China’s most valuable company on Monday when it made its market debut in Shanghai — another sign of how red-hot the sector has become.

CXMT, as a relative newcomer, “remains in a follower position regarding leading-edge technologies”, James Zhao, senior principal analyst at Omdia, told AFP.

HBM is used in data centre servers to support other powerful chips — such as those made by US titan Nvidia — that execute the dizzyingly complex calculations of AI systems.

But when it comes to conventional RAM, and a type for computers called DRAM, “the current supply-constrained market environment” could bring CXMT “late-mover advantages”, he said.

At a shopping centre in a different part of Hong Kong, customer Henry Wong, an investment banker, said he had chosen to upgrade the RAM in an older laptop instead of buying a new one with even better specs.

“After upgrading the memory, I found it ran really smoothly, and I stopped wanting to buy a new computer,” he told AFP.

RAM (Random Access Memory) chips and NVRAM (Non-Volatile Random Access Memory) chips are seen for sale in a computer centre in Hong Kong on July 28, 2026. — AFP pic

‘Bubble’ 

Automakers say they are facing rising costs for in-vehicle computer systems, which could also soon push up the price of new vehicles.

In Tokyo’s tech hub of Akihabara, Charles Brousse, a 30-year-old graphic designer and custom PC builder from Belgium, said prices for RAM, graphics cards and motherboards have hit “ridiculous levels”.

For his “PC & Chill” service, Brousse does not buy parts to pre-build machines — as it is too expensive — but he requires clients to purchase their own that he assembles.

The chip shortage is pushing people to buy cheaper laptops than desktops, which can last up to a decade, said Brousse, in Tokyo on his honeymoon.

“I’m not sure that’s a good thing; people end up buying products with shorter lifespans, which fuels a cycle of consumption.”

Brousse added that the fact it is driven by the “speculative bubble” of AI is also frustrating, “because I’m a graphic designer by trade, so AI has a real impact on my profession.” — AFP

KUALA LUMPUR, Aug 3 — Consumer spending across the retail and food and beverage (F&B) sectors, particularly among small and medium enterprises (SMEs), is expected to gain momentum from higher visitor arrivals and stronger demand generated by Malaysia’s hosting of the Formula 1 Gulf Air Bahrain Grand Prix.

Malaysia Retailers Association president Datuk Andrew Lim Tatt Keong said that beyond the immediate boost to sales, the event would encourage SMEs to strengthen their capabilities in areas such as digital marketing, customer engagement and service excellence.

“SMEs form an important part of Malaysia’s retail ecosystem, and major international events can serve as valuable platforms to enhance their growth and visibility.

“Local F&B operators, retailers and service providers can leverage increased visitor traffic by offering unique Malaysian experiences, race-themed promotions, exclusive products and tailored services,” he told Bernama.

Lim said businesses within and around the event venue were also likely to benefit from stronger demand during the race weekend.

He added that hosting an international event such as Formula 1 would provide Malaysian SMEs with an opportunity to showcase their products and services to a global audience.

International visitors often seek authentic local experiences, whether through Malaysian cuisine, locally made products, distinctive retail offerings or cultural attractions, he said.

“Positive experiences with Malaysian brands can leave lasting impressions and encourage repeat visits, online purchases and word-of-mouth recommendations,” he said.

However, Lim said the extent of the economic benefits for the retail and F&B sectors would depend on visitor numbers, the scale of event-related activities and overall participation.

Even so, he said international sporting events of this scale had consistently demonstrated strong multiplier effects across the broader economy.

Higher visitor arrivals and increased local participation could translate into stronger footfall and spending at restaurants, cafés, food outlets, shopping malls and entertainment venues, not only around Sepang but also in Kuala Lumpur city centre, the Klang Valley and other tourist destinations.

On July 26, Formula 1 and the International Automobile Federation (FIA) confirmed that Malaysia would host the race at the Sepang International Circuit (SIC) from Oct 2 to 4, 2026, subject to the signing of a final agreement and the necessary approvals, including from the World Motor Sport Council.

The race is scheduled to take place between the Azerbaijan Grand Prix and the Singapore Grand Prix on the Formula 1 calendar. — Bernama

SEOUL, Aug 2 — Hyundai Motor Co. and Kia Corp. sold more than 100,000 electric vehicles (EVs) in Europe in the first half of the year as the South Korean automakers stepped up efforts to strengthen their presence in the region, Yonhap News Agency reported, citing the companies on Sunday.

A total of 131,032 EVs were sold in Europe during the first six months of 2026, up a sharp 41.8 per cent from the 92,365 recorded in the previous half, according to Hyundai and Kia.

Kia’s EV3 compact sport utility vehicle (SUV) was the best-selling model, with 27,121 units sold, followed by Hyundai’s Inster subcompact SUV with 16,594 units and Kia’s EV4 saloon with 14,502 units.

If the current sales pace continues through to the end of the year, the companies expect annual EV sales in Europe to surpass 200,000 units for the first time since they entered the European EV market in 2014.

Hyundai and Kia first topped 100,000 annual EV sales in Europe in 2021, and their combined sales have risen steadily since then, reaching 183,912 units in 2025.

Their cumulative EV sales in Europe surpassed the one million mark through May.

The automakers, which belong to Hyundai Motor Group, have been expanding their EV lineup in Europe, where demand for environmentally friendly vehicles remains strong. They currently offer 14 EV models in the region.

Meanwhile, Hyundai Motor Group Executive Chair Euisun Chung visited Hyundai Motor’s plant in Turkey on Thursday to inspect the production line for the Ioniq 3, the company said.

The all-electric compact hatchback is set to enter mass production at the Turkish plant later this month and make its European market debut in the second half of the year. — Bernama-Yonhap

HANOI, Aug 2 — Businesses and households across Vietnam are stepping up electricity-saving measures and investing in rooftop solar power as prolonged heatwaves push electricity demand to record levels, Vietnam News Agency (VNA) reported.

The government’s efforts to strengthen national energy security are guided by the Prime Minister’s Directive No. 10/CT-TTg on electricity saving and rooftop solar development.

At the end of July, Cua Lo Beach in the central province of Nghe An was bustling with tourists.

Hotels, restaurants and tourism service providers were operating at full capacity during the peak summer season.

According to the Cua Lo Ward People’s Committee, the locality has welcomed more than four million visitors so far this year, up about 12 per cent year-on-year.

While the tourism boom has generated significant revenue, it has also sharply increased electricity consumption.

At Muong Thanh Cua Lo Hotel, occupancy has reached 83 to 85 per cent during the summer months, requiring cooling systems, laundry facilities and other equipment to operate almost continuously.

Vo Huy Tuan, the hotel’s managing director, said the hotel has upgraded its equipment, invested in environmentally friendly technologies and encouraged employees to use electricity more efficiently.

Instead of reducing services, it has focused on optimising the operation of major power-consuming systems, particularly laundry and cooling facilities.

“We have adjusted the operating schedule of laundry equipment to avoid peak hours. This helps reduce electricity costs while ensuring sufficient power is available for other services,” Tuan said.

A man sits beneath solar panels at the Sao Mai solar energy plant in An Giang province as Vietnam turns to solar amid surging electricity demand during prolonged heatwaves. — AFP file pic

Similar changes are taking place at restaurants and tourism service providers, many of which are replacing outdated equipment with energy-efficient alternatives and adjusting the operating schedules of high-power appliances.

Le Anh Tuan, owner of Tuan Phu Quy Restaurant in the Thien Cam tourism site in the central province of Ha Tinh, said monthly electricity bills have fallen by more than 10 per cent after the restaurant adopted power-saving measures recommended by the local power utility, including replacing old air conditioners and lighting systems and requiring staff to switch off unused equipment.

Alongside efforts to improve energy efficiency, many businesses and households are investing in rooftop solar systems as a long-term solution.

Nguyen Van Hung, vice chairman of the Cua Lo Ward People’s Committee, said nearly 20 per cent of hotels in the locality have installed rooftop solar systems, helping reduce electricity costs while easing pressure on the power supply during the hottest months.

Meanwhile, Le Quang Thanh, deputy director of Nghe An Power Company, said the province’s peak electricity demand reached about 1,310 MW during heatwaves in May and June, nearly 15 per cent higher than a year earlier.

The company works with local authorities and media agencies to promote efficient electricity use while also providing information and technical advice to households and businesses interested in rooftop solar systems.

Phan Van Nhan from the Can Loc Power Company in Ha Tinh said electricity consumption in the commune surged 24 per cent year-on-year in June due to extreme heat.

To ensure a stable power supply, the utility has stepped up public awareness campaigns and advised customers using more than 1,000 kWh a month to consider rooftop solar systems.

Nhan noted that many high electricity bills stem from wasteful habits such as leaving water heaters on, running air conditioners continuously or keeping lights on unnecessarily.

He also advised households not to set air conditioners at excessively low temperatures, as this increases electricity consumption and shortens the equipment’s lifespan.

With electricity demand expected to rise alongside industrialisation, urbanisation and climate change, Directive No. 10/CT-TTg will require the joint efforts of authorities, businesses and the public.

Broader adoption of energy-efficient technologies and responsible electricity use will help strengthen national energy security while supporting Vietnam’s green and sustainable development goals. — Bernama-VNA

TOKYO, Aug 2 — Washington and Tokyo jointly intervened to shore up the Japanese yen for the first time in nearly 30 years after the currency sank to its weakest level in decades, the Financial Times has reported.

The reported intervention came after the yen slid to 163.24 per dollar last month, its weakest level since 1986, as higher US interest rates, rising oil prices and persistent capital outflows weighed on the currency.

The newspaper reported, citing people familiar with the matter, that the Federal Reserve Bank of New York took the unusual step of selling euros to buy yen on behalf of the US Treasury on Friday.

The transactions were carried out through Goldman Sachs and Morgan Stanley, according to the Financial Times.

Washington’s move came as the yen rebounded sharply last week, fuelling speculation that Japanese authorities had also intervened in currency markets.

The unit was trading at 160.53 against the dollar Friday, having risen as high as 158 yen a day earlier.

“Whether Tokyo was actually involved remains unclear, but the price action had all the familiar fingerprints,” Stephen Innes at SPI Asset Management wrote in a comment.

Analysts cited by FT estimated Japan’s intervention may have totalled about ¥8.45 trillion (RM215 billion).

The Nikkei business daily put the amount at between ¥6 trillion and ¥7 trillion.

According to FT, the move would be the first coordinated US-Japan effort to support the yen since 1998.

While surging oil prices and concerns over debt are major reasons for the yen’s weakness, a key driver is the wide gap between interest rates in Japan and those in the United States and other major economies.

And with markets increasingly betting that the US Federal Reserve could hike rates again before the end of the year, the divergence is more pronounced.

This gap has encouraged investors to borrow cheaply in yen and invest in other assets outside Japan with better returns — known as a “carry trade” — resulting in capital outflows and downside for the yen. — AFP

SEOUL, Aug 2 — The South Korean won appreciated at its fastest monthly pace since 2009, driven largely by a surge in US dollar inflows into the country’s foreign exchange market following SK hynix Inc.’s American depositary receipt (ADR) offering on the Nasdaq, industry data showed Sunday, Yonhap News Agency reported.

The won was quoted at 1,424 per US dollar at 3:30 p.m. Friday, up 125.4 won from the end of June, according to foreign exchange data.

The monthly gain was the largest since March 2009, when the won strengthened by 150.5 won against the US dollar in the aftermath of the global financial crisis.

The currency has rebounded steadily after falling to a more than 17-year low of 1,599.2 won per dollar in intraday trading on July 1.

On a weekly basis, the won gained 42.6 won against the dollar in the final week of July, marking its strongest weekly performance since the second week of November 2022.

Among major currencies, the won posted the strongest gain against the US dollar last month.

According to separate data compiled by Yonhap Infomax, the won appreciated 7.95 per cent against the dollar in July from a month earlier, followed by the Japanese yen, which gained 3.15 per cent, the Swedish krona at 1.91 per cent and the British pound at 1.63 per cent.

Market experts attributed the won’s strength to heavy dollar inflows after SK hynix converted proceeds from its ADR offering into the local currency.

SK hynix Inc. raised about 40 trillion won (US$26.5 billion) through its ADR offering on the Nasdaq earlier last month and is expected to use most of the funds for domestic investments, including the Yongin semiconductor cluster.

Economists expect the won to remain on an upward trajectory, citing stronger-than-expected economic growth and expectations that the Bank of Korea (BOK) will continue raising interest rates, narrowing the rate differential with the United States.

“The won has entered an upward cycle,” Lim Hwan-yeol, an economist at Woori Bank, said.

“The won-dollar exchange rate is expected to fall to around 1,380 won, though the outlook could change depending on future dollar inflows and monetary policy decisions in South Korea and the US.” — Bernama-Yonhap

LONDON, Aug 2 — Saudi Arabia, Russia and five other members of Opec+ are expected to raise their oil production quotas for September when they meet online Sunday as the Middle East war continues to disrupt global energy supplies.

The enlarged Organisation of the Petroleum Exporting Countries will likely increase production by 188,000 barrels per day, following several months of similar hikes, said Jorge Leon, an analyst at Rystad Energy.

However, the September increase is likely to be the last in the current series of production adjustments, he said.

Between late 2022 and 2023, Opec+ became concerned that oil prices were falling and agreed to cut oil production in three separate rounds, reducing total output by nearly six million barrels per day.

But Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, Oman and the United Arab Emirates — before their exit from the group on May 1 — then changed their strategy by gradually upping production starting in 2025.

A September increase would complete the unwinding of the second of the three production-cut packages introduced by Opec+.

However, in reality, many Opec+ members cannot produce as much oil as their official targets allow due to a “decline in production capacity”, so increasing targets has become less meaningful, said Giovanni Staunovo, an analyst at UBS.

The Gulf countries have struggled to increase exports due to the near-paralysis of the Strait of Hormuz orchestrated by Iran during the war in the Middle East – despite a brief upswing in shipping traffic after a US-Iran memorandum of understanding was signed in June.

‘Difficult talks’ 

And in Russia, whose oil infrastructure has been repeatedly targeted by Ukrainian drone attacks, production is hovering at around nine million barrels per day — compared with a target of 9.8 million barrels per day.

It remains unclear when the group will actually be able to increase its oil volumes, but some member countries, such as Iraq, have expressed a desire to significantly boost production.

Currently, “the group is undergoing a process in setting maximum sustainable capacity levels for all member states”, according to Staunovo.

Opec+ “faces potentially difficult talks over new production quotas” starting next year following the September increase, according to analysts at DNB Carnegie.

“I don’t think cohesion is at risk at this very moment,” said Leon, warning, however, that the UAE’s withdrawal from the group in May has highlighted a weakness in this area.

Explaining the move, Abu Dhabi said it “serves our national interests and long-term strategic objectives”.

The UAE had announced many projects and investments aimed at expanding its ability to pump oil in recent years, making it increasingly difficult to justify staying under strict Opec+ production limits. — AFP

VILNIUS, Aug 2 — When Russia launched its full-scale invasion of Ukraine, Rapolas Markevicius was managing a private equity fund in Lithuania, a Nato member on the alliance’s eastern flank that fears it could be Moscow’s next target.

Four-and-a-half years later, his new startup Pdkinematics builds precision guidance systems that help drones strike targets more accurately even when GPS signals are jammed, with the technology supplied to Ukraine and its European allies.

He is among a growing group of startup founders in the Baltics seeking to strengthen the region’s defence capabilities as Nato’s eastern members face hybrid threats from Russia and its close ally Belarus.

“The beginning of the war was kind of a call for action for us,” Markevicius told AFP.

After Russia’s February 2022 invasion, he launched a research and development programme to “understand what kind of technologies we could actually deliver to the battlefront”, working with his co-founder from the space technology sector.

As countries along Nato’s eastern flank face hostile actions ranging from drone incursions to cyberattacks, experts say startups like his are helping improve the region’s resilience and deterrence against Russian aggression.

‘Scalable solutions’

A thriving startup scene has developed in Lithuania and its fellow Baltic states of Estonia and Latvia in the decades since they transitioned from Soviet-controlled command economies.

The region is home to companies that have become globally recognised, including Vinted, Bolt and Skype.

Entrepreneurs are now filling gaps left by traditional arms contractors as warfare undergoes rapid technological change.

The war in Ukraine has accelerated the use of drones and robots on the battlefield, creating demand for technologies that can be developed quickly and produced at scale.

“The current technology that will drive, and is currently driving, the transition of European arms must be as scalable as it must be high-tech,” Markevicius said.

He added that startups were often “creating quite efficient, cost-efficient and scalable solutions”.

‘Tried and tested’

The Baltic states have some of Nato’s highest defence spending levels relative to their economies, with Lithuania allocating 5.3 per cent of its GDP to defence, the highest among the alliance’s 32 members.

Governments have become more open to working with newer defence companies as the nature of warfare continues to evolve.

The Lithuanian Armed Forces provide access to training areas and airspace every month as testing grounds for emerging technologies.

The war in Ukraine has also provided companies with real-world feedback on how their systems perform against Russian forces.

“You can test your product with Ukraine, with Lithuanian soldiers, with any Nato soldiers,” said Elvinas Kukys, chief executive and founder of Luna Robotics, a startup developing advanced imaging systems for FPV drones.

The environment has helped defence startups across the region attract significant foreign investment.

“The Baltic states have really been tried and tested over the past four years about how they needed to restructure their economies, reorient and really invest in their defence capabilities,” said Mario Bikarski, senior Europe analyst at risk intelligence company Verisk Maplecroft.

“They are really now some of the best-prepared countries to withstand a wide range of new forms of attacks,” he added.

‘A new normal’

A growing defence startup sector “is not something that is going to stop a potential Russian attack”, Milan Trajkovic, an analyst at Fitch, told AFP.

“But it does probably make it more difficult,” he added.

Invest Lithuania (IL), which helps foreign firms invest in the country, said the Baltics’ proximity to Russia means some investors require reassurance.

“We understand that this is the new normal,” said its director Elijius Cevelis.

He said meetings between investors and government ministries, sometimes involving confidential information, could help ease concerns and promote a better image of the country and region.

“We have many international troops, we have armour, we have vehicles, we have everything we haven’t had before,” he said. — AFP

MERSING, Aug 2 — The Jemaluang Dairy Valley project has recorded encouraging progress, with fresh milk production reaching three million litres as of July 26, 2026, close to the initial target of 3.6 million litres set for this year, according to JDV Sdn Bhd (JDV).

It said milk production is expected to increase further to 5.5 million litres by the end of 2026.

Its chief executive officer, Qasem Alhasan, said the dairy valley currently has 1,900 dairy cows, with the number of milking cows steadily increasing as they enter the lactation phase, contributing to higher milk production.

“In the long term, we aim to produce 12 million litres of fresh milk when the farm reaches full capacity. Additionally, the construction of a milk processing plant is progressing on schedule and is expected to be completed by the end of this year,” he told Bernama yesterday.

Beyond the processing plant, Qasem said the company is also focusing on ensuring product quality, branding, and distribution networks are at their best before other milk-based products are launched into the market in 2027.

“Our target (for the milk products) includes families, children, and young professional consumers who prioritise health and prefer high-quality fresh milk, as well as supplying products to cafes, restaurants, hotels, and food manufacturers.

“Our main goal is to make premium fresh Malaysian milk more accessible to consumers while reducing the country’s reliance on imported dairy products,” he added.

Jersey Friesian crossbred cows at the Jemaluang Dairy Valley in Mersing. The project has produced three million litres of fresh milk as of July 26 and expects output to reach 5.5 million litres by the end of 2026. — Picture from Facebook/Qasem Alhasan

Qasem said the total investment for the dairy valley’s development is expected to exceed RM200 million, covering farm infrastructure, purchase of dairy cows, modern breeding technology, the milk processing plant, utility facilities, and supporting facilities, reflecting the long-term commitment to strengthening the national dairy industry.

He said the project would also have a positive impact on the local community’s economy, including a capital investment of RM25 million for infrastructure development, mostly utilising materials sourced from suppliers in Mersing and nearby districts.

“In addition, we have created more than 60 jobs for the community and benefited various stakeholders, including contractors, suppliers, logistics and transport companies, traders, and veterinary services,” he said.

Discussing the challenges, Qasem acknowledged that the dairy industry is a capital-intensive sector requiring long-term investments, while also facing rising livestock feed costs, the need to attract skilled local labour, the management of large-scale farming operations, and increasing consumer demand for fresh milk.

“Nevertheless, we remain committed to investing in technology, automation, and strategic partnerships to develop a sustainable dairy industry,” he added.

Qasem said JDV plans to increase the herd’s size to 4,000 dairy cows by 2027, strengthen the downstream business, introduce a range of dairy products, and explore opportunities to export products to international markets.

Over the next three to five years, JDV aims to become a leading dairy integration company and support the nation’s food security agenda while developing a dairy industry that benefits the community and future generations.

“We don’t just want to build a successful dairy farm; we want to establish an internationally competitive dairy industry that Malaysians can be proud of,” he said.

The Jemaluang Dairy Valley project is a collaboration between the Johor state government, ECER Development Council (ECERDC), and JDV Sdn Bhd, involving an investment of around RM80 million. — Bernama

KALABAKAN, Aug 1 — The Sabah government is expected to secure a 40 per cent stake in a floating liquefied natural gas (FLNG) project in the state under an agreement to be signed with Petronas in the coming months.

Sabah Chief Minister Datuk Seri Hajiji Noor said the latest development stemmed from close cooperation between the state and federal governments, as well as an earlier agreement with Petronas that enabled the state government to play a more active role in Sabah’s oil and gas industry.

“We expect to sign an agreement with Petronas within the next few months, under which Sabah will receive a 40 per cent stake in the floating gas facility in the state.

“For the oil and gas field in Sandakan that Petronas has secured, Sabah will also be given a 20 per cent stake,” he said while launching the ‘Jelajah Rakyat and Madani Rahmah Sales’ programme for the Kalabakan parliamentary constituency at the Kalabakan District Office Open Hall today.

Hajiji said the close working relationship between the state and federal governments had generated significant benefits for both Sabah and its people.

Separately, he said Sabah was attracting growing investor interest due to the state government’s investor-friendly policies.

“Over the past five years, nearly 40 foreign diplomats and high commissioners have met with me. They are attracted by our investor-friendly policies and believe they will drive Sabah’s economic growth. That is exactly what we are working towards,” he said.

Hajiji said existing industrial parks, particularly the Kota Kinabalu Industrial Park (KKIP) and the Sipitang Oil and Gas Industrial Park (SOGIP), were nearing full capacity due to strong investor demand.

He said the state government was therefore expanding industrial development into new areas, including the east coast of Sabah, as well as establishing a blue economy-based industrial park in the northern part of the state.

On the proposed new township in Kalabakan, Hajiji said about 1,000 acres had been identified for the project, which would support economic growth along the Sabah-Indonesia border.

He added that the state government also planned to establish a customs, immigration and quarantine (CIQ) complex at the border, as well as build a road linking Kalabakan to the border. — Bernama

KUALA LUMPUR, Aug 1 — The ringgit is expected to trade between 4.07 and 4.09 against the US dollar next week, with market sentiment likely to be guided by a series of key United States (US) economic data releases and their implications for the Federal Reserve’s interest rate outlook.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the coming week would be data-heavy in the US, with several key indicators and the labour market scheduled for release.

These include the Institute for Supply Management (ISM) indices, the Job Openings and Labor Turnover Survey (JOLTS), nonfarm payrolls and the unemployment rate, all of which are expected to shape market sentiment.

“This is particularly important given the lack of clear forward guidance in the latest Federal Open Market Committee (FOMC) statement.

“While the case for a September rate hike remains intact, the weaker-than-expected second-quarter 2026 US gross domestic product growth suggests that a prolonged policy pause cannot be entirely ruled out,” he told Bernama.

Mohd Afzanizam added that the possibility of a prolonged pause in US interest rates could provide some support for the ringgit next week.

On a Friday-to-Friday basis, the ringgit strengthened against the US dollar to 4.0835/0875 from 4.0885/0935 a week earlier.

The local currency traded lower against most major currencies during the week.

It weakened against the Japanese yen to 2.5520/5548 from 2.4976/5008, declined vis-a-vis the euro to 4.6981/7027 from 4.6556/6613, and depreciated against the British pound to 5.4923/4977 from 5.4442/4509 previously.

The ringgit also traded mostly lower against Asean currencies.

It eased against the Singapore dollar to 3.1823/1856 from 3.1667/1708, declined against the Philippine peso to 6.66/6.67 from 6.61/6.62, and weakened against the Thai baht to 12.2264/2435 from 12.1414/1606 last Friday.

However, it improved against the Indonesian rupiah to 226.6/226.8 from 227.6/227.9 previously. — Bernama

KUALA LUMPUR, Aug 1 — Bursa Malaysia is expected to trade with an upside bias next week, supported by resilient corporate earnings, improving foreign fund inflows, and easing concerns over global trade.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng expects the FTSE Bursa Malaysia KLCI (FBM KLCI) to remain on a gradual upward trajectory and trade within the 1,710-1,740 range, aided by continued institutional and foreign buying interest.

“Entering August, which is the corporate earnings season, market sentiment could improve if companies deliver results that exceed expectations,” he told Bernama.

Nonetheless, he said investors will continue to monitor developments surrounding the US monetary policy, geopolitical risks, and commodity price movements which could influence market direction.

On another note, several key US economic indicators are due for release next week, including the ISM Services PMI, Job Openings and Labor Turnover Survey (JOLTS), nonfarm payrolls, and the unemployment rate, all of which are expected to influence market sentiment.

On a Friday-to-Friday basis, the FBM KLCI rose 23.88 points to 1,724.90 from 1,701.02 a week earlier.

On the index board, the FBM Mid 70 Index expanded 244.96 points to 18,135.79 and the FBM ACE Index gained 47.81 points to 4,974.68, the FBM Emas Index jumped 162.25 points to 12,751.79, the FBMT 100 Index leapt 173.15 points to 12,585.11, and the FBM Emas Shariah Index advanced 152.04 points to 12,596.29.

By sector, the Financial Services Index surged 270.53 points to 20,327.11, and the Industrial Products and Services Index added 0.88 of a point to 188.74, while the Plantation Index slid 12.41 points to 9,288.57, and the Energy Index inched down 8.11 points to 765.72.

Weekly turnover decreased to 14.36 billion units worth RM13.12 billion from 16.43 billion units worth RM12.09 billion a week earlier.

The Main Market volume declined to 7.06 billion units valued at RM11.63 billion against 9.01 billion units valued at RM10.72 billion previously.

Warrants turnover edged up to 4.95 billion units worth RM650.82 million versus 4.94 billion units worth RM621.21 million last week.

The ACE Market volume narrowed to 2.30 billion units valued at RM832.72 million compared with 2.44 billion units valued at RM741.42 million in the previous week. — Bernama

WASHINGTON, Aug 1 — All three US Federal Reserve policymakers who dissented from the central bank’s decision to keep interest rates steady earlier this week said yesterday that rate hikes were needed now in order to avoid entrenched inflation.

The Fed held rates at 3.50-3.75 per cent for its fifth straight meeting on Wednesday, with three of the committee’s 12 members dissenting in favour of a quarter-percentage-point rate hike.

That number of dissents is unusual and illustrative of the challenge the Fed faces in bringing inflation back down to its two-per cent target — a level it hasn’t hit in more than five years.

“Inflation has been too high for too long,” said one of the dissenters, president of the regional Cleveland Fed, Beth Hammack. “The longer that high inflation persists, the more challenging and costly it can be to bring it back down.”

US households have been battered by the high prices, and inflation spiked to three-year highs on the back of President Donald Trump’s war on Iran since March, with skyrocketing energy prices bleeding through into other products.

Inflation has also been fuelled by a succession of supply shocks such as the pandemic and the Russia-Ukraine war, as well as by Trump’s tariff policies and in more recent months a push on prices due to high demand from the AI boom.

Neel Kashkari, president of the Minneapolis Fed, dissented alongside Hammack, and in a statement on Friday said he thought it was necessary to “tighten policy incrementally as we gather more data on the path of inflation and employment.”

“If inflation remains elevated, in my view, a potential series of small policy moves would be better than waiting and eventually concluding that even bolder actions were necessary,” he said.

Warsh staying tight-lipped 

Lorie Logan, the third dissenting vote and president of the Dallas Fed, also issued a statement yesterday, agreeing with the need for “modest action” now to reduce the need for potentially sharper hikes later.

Logan said that current interest rates were not sufficiently restrictive on economic activity, and that barring an “unanticipated shock” inflation was likely to continue to trend above target.

“The FOMC cannot count on unanticipated shocks to achieve its goals and can always adjust policy if unanticipated shocks occur,” she said.

New Fed Chairman Kevin Warsh has, before taking office, expressed support for lowering interest rates in the world’s largest economy, in line with the views of Trump, who nominated him.

Trump has imposed unprecedented pressure on the independent central bank in his second term as president, pursuing a criminal probe against Warsh’s predecessor and trying to fire another Fed governor.

The Republican billionaire has demanded the Fed lower rates in a bid to turbocharge the economy, despite the inflationary effect doing so would likely have.

Since taking over in May, Warsh has said he is committed to the Fed’s two-per cent inflation target, but has shared no details on how he believes the central bank should achieve it.

Markets have reacted with concern to Warsh’s tight-lipped policy, with 30-year Treasury bond yields — which generally track inflation expectations — rising to their highest levels since 2007 following this week’s meeting.

Warsh has proposed a raft of other reforms to how the Fed does its work, and yesterday the New York Times reported, citing unnamed sources, that he was considering reducing the number of times a year that the Fed’s rate-setting committee meets.

The Fed’s open-market committee currently meets eight times a year, and reducing this frequency would be a significant change.

The report said that a revised schedule could be decided before the next meeting in mid-September, although the changes are unlikely to take effect until later. — AFP

KUALA LUMPUR, Aug 1 — The dream was sold before the keys were handed over — a home “walking distance and just five minutes from the city” and “an exclusive low-density living environment”. But for some homeowners, the truth only emerged after they moved in.

What looked like convenience on paper felt different in reality. The short walk became a longer journey through crowded roads, the promised exclusivity gave way to congestion, and the lifestyle buyers imagined was replaced by daily struggles with traffic, long waits for lifts and overcrowded facilities.

National House Buyers Association of Malaysia (HBA) honorary secretary-general Datuk Chang Kim Loong said, in line with Regulation 8(1A) of the Housing Development (Control and Licensing) (Amendment) Regulations 2015, any advertisement by a licensed housing developer shall not contain claims, including panoramic views, travelling time from housing projects to popular destinations, or any other particulars that the developer cannot genuinely substantiate.

Chang said developers found guilty of breaching the regulations may face a fine of up to RM50,000, imprisonment for up to five years, or both.

“Meanwhile, the Housing Development (Control and Licensing) Regulations 1989 clearly stipulate the types of information that developers can and cannot include in property advertisements. 

To prevent such misrepresentations, developers are required to submit their brochures and promotional materials to the National Housing Department for approval before distributing them to potential buyers.

“However, despite known violations, there have been no prosecutions to date. Without legal action, there will be no strong deterrent effect, and irresponsible parties may continue repeating such practices,” he said.

“In my view, the authorities should conduct unannounced inspections and surprise visits to developers’ offices to verify compliance. This would help identify misleading or unauthorised promotional materials before more buyers are affected.

“Developers found to have deliberately misled buyers should not only be blacklisted but also face prosecution. Without prosecution, there will be no strong deterrent effect, and irresponsible parties may continue repeating such practices,” he said, while questioning how many developers had been prosecuted over the past decade.

Meanwhile, National House Rental Association (NHRA) chairman Prakash Kalivanan said misleading advertisements can affect buyers for decades as many remain tied to long-term housing commitments.

“Phrases commonly used in property advertisements can create expectations that may not reflect the reality after a development is completed and fully occupied. For example, a project may be advertised as being ‘walking distance or just five minutes from the city”.

“While the physical distance remains unchanged, the actual experience can be completely different once thousands more residents move into the area. A development marketed as ‘exclusive’ or ‘low-density’ may eventually become highly congested, with longer waiting times for lifts, traffic bottlenecks, overcrowded facilities and greater pressure on surrounding roads.

“A five-minute journey can become 15 or even 30 minutes during peak hours. These are not minor inconveniences...they affect residents’ daily routines, family time, travel costs and overall quality of life,” he said.

Prakash also urged buyers and tenants to look beyond attractive advertisements by visiting project sites at different times of the day, checking approved development plans and verifying claims before committing to one of the biggest financial decisions of their lives.

The concerns raised by consumer groups are not merely theoretical. In the case of Toh Shu Hua & Ors v Wawasan Rajawali Sdn Bhd (2023) 2 CLJ 310, 122 apartment buyers successfully sued the developer for misrepresentation. 

The Kuala Lumpur High Court held that the brochure was not mere marketing hype and awarded RM50,000 in damages to each buyer, as well as RM2 million in aggravated damages to be shared among them.

Meanwhile, Datuk J Shamesh, managing partner of Jeeva Partnership, said Regulation 8(1A) of the Housing Development (Control and Licensing) Regulations 1989 specifically prohibits developers from making misleading claims, including descriptions such as a property being “walking distance” from certains location if such statements could create a false impression among buyers.

 According to the lawyer, generally, most developers comply with these requirements. However, where representations made in advertisements or promotional materials are inaccurate or misleading, buyers may have legal recourse against developers.

Shamesh said buyers who believe they were misled may pursue civil action against developers and seek remedies, including damages or, in certain circumstances, the invalidation of the sale and purchase agreement (SPA).

He cited the case of Sri Damansara Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Anor, where the court recognised that promotional materials could form part of the representations made by developers to buyers.

He said possible examples of misrepresentation could include facilities or features heavily promoted during the sales process but not delivered after completion, such as a gymnasium, water fountain, Japanese landscape garden or rooftop garden.

Shamesh, who is also the president of the Home Buyers Tribunal, added that buyers generally have six years from the signing of the sale and purchase agreement to take legal action if they wish to challenge alleged misrepresentations.

“Buyers who want to take action over misrepresentations made in brochures must preserve crucial evidence, including the original brochure and photographs. Buyers must understand that legal action depends heavily on evidence.  

“In my opinion, in this fast-paced and competitive world we cannot curtail developers, just like any commercial entities, from employing the latest advertising and promotional approach to sell their properties as long as they do not misrepresent the buyers.

“Some advertisements are beyond the control of the developer, for example, free of traffic, hill view, when five years later, traffic increases and the hills are under development...the developer cannot be faulted as it is obviously beyond their control,” he said.

Meanwhile, the president of Real Estate and Housing Developers’ Association (Rehda) Malaysia Datuk Zaini Yusoff contended that the association strongly believes property developers must uphold the highest standards of transparency, accuracy and integrity in marketing their products.

According to Zaini, home buyers deserve to have the full and accurate details about the home they are considering to purchase to enable them to make informed purchasing decisions. 

“Descriptions relating to matters such as proximity to amenities, transportation hubs or landmarks should be fair, reasonable and not misleading, while all advertisements must comply with the requirements of the Housing Development (Control and Licensing) Act 1966 (Act 118) and its subsidiary regulations.

“We (Redha) are aware that there may be isolated instances where marketing materials prepared or disseminated by appointed sales agents or third parties do not accurately reflect the developer’s approved content, but these are not representative of the industry,” he said.

He further said that developers remain responsible for ensuring all parties acting on their behalf market their projects accurately and in compliance with the applicable legal and regulatory requirements. 

“At the same time, we call upon prospective purchasers to exercise due diligence by reviewing the S&P agreement, approved plans and specifications, visiting the project site where possible, and seeking clarification on any representations made before making a purchasing decision.

“If there have been genuine misrepresentations or noncompliance with contractual obligations, there are established legal avenues available to seek appropriate redress. Redha will continue to encourage our members to uphold our nation-building role of providing quality, affordable homes for the rakyat in a timely and sustainable manner,” he said. — Bernama

MALUDAM, Aug 1 — The opening of the Batang Lupar 1 Bridge has not only shortened travel time between southern, central and northern Sarawak, but also opened up new market opportunities for fishermen and spurred the growth of the deep-sea fishing industry in Maludam.

The positive impact is also being felt by residents of surrounding villages, most of whom depend on fishing as their main source of income, as demand for catches such as terubok fish and red shrimp from the coastal waters and Sungai Maludam estuary continues to rise.

Local fisherman Batu Jajabai Agu, 52, said the bridge had significantly improved connectivity for residents and visitors to the district, as they no longer needed to rely on ferry services.

“Before this, many people had to take the ferry to come to Maludam, so not many would come directly to buy seafood from us.

“Now, we see more visitors coming every weekend to buy fresh fish, which allows us to sell our catch directly to consumers instead of depending fully on middlemen,” he told Bernama.

Batu said that the Sungai Batang Lupar estuary is home to various types of terubok fish, with terubok Ulu being the most sought after, selling for up to RM120 per kilogramme, while its roe could reach RM500 per kilogramme.

He said Maludam was renowned for its seafood offerings, including red prawns, locally known as payak or durik, as well as jellyfish, puffer fish, various species of fish and freshwater prawns found abundantly along the river.

The 4.84km Batang Lupar 1 Bridge linking Sebuyau and Maludam has reduced reliance on ferry services and opened new markets for local fishing communities. — Bernama pic

“We hope Maludam will continue to be known as a place for fresh terubok fish and quality seafood, enabling villagers to earn additional income,” he said.

Housewife Hamdiah Awieng, 52, said the bridge had not only made daily life easier for her family, but also helped boost their income as her husband’s catch was now easier to sell.

She said that previously, she assisted her husband in processing salted terubok fish and red prawns to generate extra income for the family, as some of the catch could not be sold fresh immediately.

“In the past, I used to make salted terubok fish and red prawns to sell because sometimes we could not sell all our catch straight away. Now, things are much easier.

“Our catch now sells out quickly because it is easier for buyers to come to Maludam, which has helped increase our income. At the same time, salted fish remains a favourite among customers,” she said.

Expressing her appreciation, the grandmother of six said the bridge had also made it easier for residents to seek treatment at clinics and hospitals, including in Kuching.

Local fisherman Batu Jajabai Agu said the Batang Lupar 1 Bridge has brought more visitors and made it easier to sell fresh seafood directly to customers. — Bernama pic

She added that travelling to Kuching International Airport was now more convenient as the shorter journey meant residents no longer needed to spend the night in Kuching to catch their flights.

Meanwhile, restaurant operator Nurthahirah Hassan, 33, said the increase in visitors from Kuching, Kota Samarahan, Sri Aman and nearby areas had also boosted the income of small traders selling food, village products and handicrafts.

“The bridge has brought more visitors to this area. Before this, it was quiet and business was slow because not many people came by.

“During weekends and weekdays, many travellers passing through this route will stop in Maludam to buy fresh seafood,” she said.

Nurthahirah said she had kept her business running there for the past six years because she was confident the bridge project would bring more opportunities and benefits to everyone.

“I am confident that this bridge will open up more economic opportunities for the younger generation, especially in tourism, seafood-related businesses and small and medium enterprises,” she said.

The 4.84-kilometre Batang Lupar 1 Bridge linking Sebuyau and Maludam was inaugurated by Sarawak Premier Tan Sri Abang Johari Tun Openg on July 9. — Bernama

MUMBAI, July 31 — At a bustling factory in western India, technicians work around the clock to turn glass into hair-thin fibre-optic strands destined for data centres powering the global artificial intelligence boom.

Indian manufacturers are cashing in on the AI infrastructure buildout by supplying cables, power systems and cooling equipment — even as investors worry the country is falling behind in the race to develop the technology.

Analysts at Nomura describe it as a classic “picks and shovels” trade, a riff on how selling tools during a gold rush can earn people more than searching for the precious metal.

For Ankit Agarwal, managing director of Sterlite Technologies, serving the world’s biggest tech companies is a dramatic shift for his firm, once known mainly as a supplier to telecoms networks.

“This is a once in a lifetime opportunity,” Agarwal told AFP in Mumbai. “This is a kind of entire new network.”

India has enthusiastically adopted AI but has yet to produce globally competitive models and remains dependent on imported advanced semiconductors.

Investors also fear that generative AI could disrupt the country’s US$315 billion (RM1.3 trillion) IT services industry by automating tasks long outsourced to India, such as customer service and app maintenance.

These worries have weighed on markets, with the benchmark Nifty 50 down around 7 per cent this year and foreign investors pulling over US$27 billion from Indian equities.

An employee inspects optical fibres at Sterlite Technologies Limited (STL) manufacturing facility in Maharashtra’s Chhatrapati Sambhaji Nagar July 9, 2026. — AFP pic

‘Tsunami’

The data centre boom is generating windfall gains for companies largely overlooked by investors, offering a bright spot in a market rattled by concerns over AI’s impact on India’s export-oriented tech sector.

“India doesn’t need to make the chip or train the model to benefit,” Prateek Nigudkar, a fund manager at Shriram AMC, told AFP.

“Every data centre needs switchgear, transformers, cables, cooling systems and grid connectivity, and Indian manufacturers are already in that supply chain.”

Fibre-optic cable producers have been among the biggest beneficiaries.

Strong demand for networks linking data centres has helped manufacturers secure contracts once considered out of reach.

Sterlite earlier this year announced a US$1.1-billion multi-year order from a US hyperscaler — a term meaning a large-scale cloud service provider — helping drive its shares up 400 per cent this year.

Telecom equipment maker HFCL reported its strongest-ever April-June quarter, with revenue more than doubling on AI demand.

Founder Mahendra Nahata said he was going all out to scale up production.

“We used to increase capacity probably once in three years, once in five years. Nowadays, it’s become a daily routine,” he told AFP, comparing the buildout to a “tsunami”.

The gains extend beyond fibre cables.

Shares in TD Power Systems have jumped 68 per cent on expectations of rising demand from AI facilities, while MTAR Technologies has benefited from demand for power units used in fuel-cell systems serving big-tech operators.

Employees monitor data on screens at Sterlite Technologies Limited (STL) manufacturing facility in Maharashtra’s Chhatrapati Sambhaji Nagar July 9, 2026. — AFP pic

‘Big investments’

Analysts, however, warn valuations have become stretched, while growing opposition to energy-guzzling data-centre projects also poses a risk.

Data Centre Watch, a tracker run by AI intelligence firm 10a Labs, says at least 75 US projects worth some US$130 billion were delayed or blocked in the first quarter of 2026.

Indian executives acknowledge the risks could hurt near-term sentiment but argue domestic demand would eventually offset any slowdown abroad.

India hosts nearly a fifth of the world’s data, but accounts for less than 5 per cent of global data-centre capacity — leaving much room for growth.

An AFP review of funding announcements shows US hyperscalers have committed some US$57 billion in new Indian capacity over the past year, while conglomerates Adani and Reliance have pledged US$100 billion towards digital and infrastructure projects.

Unlike in parts of the United States and Europe, data centre development in India has faced limited resistance so far.

“Opposition is probably in a very nascent stage,” said Sharad Agarwal, chief executive of data centre operator Sify Infinit Spaces.

He said operators had adopted technologies such as closed-loop water cooling systems to reduce pressure on local resources.

Sify, which operates 16 data centres and has nearly a dozen more under development, is considering an IPO that would make it India’s first listed data-centre operator.

“We are talking about big investments. If I need to be a one-gigawatt company, I need US$5 billion,” Agarwal said. A computing power capacity of one gigawatt is often referred to as “hyperscale”.

“Then only we can go and grow.” — AFP

NEW YORK, July 31 — ExxonMobil’s second-quarter profits more than doubled to US$14.5 billion (RM60 billion) on surging oil prices and refining margins due to the Middle East war, the company reported today.

The results come on the heels of massive profits reported by other petroleum giants in the aftermath of Iran’s virtual shutdown of the Strait of Hormuz, a key waterway for crude oil and liquefied natural gas shipments.

With revenues of US$116 billion, up 42 per cent, ExxonMobil pointed to higher oil prices as a factor but described the level as “within historical ranges,” citing the effects of reduced refining capacity and crude inventory releases as offsets that kept crude prices from rising more.

But refining margins, the profit from gasoline and other products minus crude oil costs, “reached record levels in the quarter,” ExxonMobil said in prepared remarks that cited a nearly nine per cent drop in global capacity because of war-related dislocations.

“The market environment was clearly supportive. But market conditions alone do not explain results,” said the company, which also touted “reliable operations, optimization in advantaged assets and high-value products across our businesses.”

While the effects from the war mostly benefited ExxonMobil, damage to key liquefied natural gas assets in Qatar dented output.

ExxonMobil returned US$9.4 billion to investors during the quarter through dividends and share repurchases.

Shares fell 1.5 per cent in pre-market trading. — AFP

KUALA LUMPUR, July 31 — Fraser & Neave Holdings Bhd’s (F&N) net profit rose to RM93.58 million in the third quarter ended June 30, 2026 (3Q FY2026) compared to RM84.82 million in the same period a year ago, arising from lower tax expense for the quarter.

In a Bursa Malaysia filing today, it said the company, however, posted lower revenue during the quarter of RM1.20 billion from RM1.25 billion previously, primarily attributable to weaker performance of Food and Beverage (F&B) Indochina, where revenue declined 18.4 per cent amid softer market conditions and prolonged border closures. 

“Nevertheless, the group’s diversified portfolio continued to demonstrate resilience, supported by the strong performance of F&B Malaysia, which delivered 8.4 per cent revenue growth driven by market share gains, effective commercial execution and continued momentum across its beverage and dairy portfolios,” it said.

It said F&B Malaysia delivered a strong performance in 3Q FY2026, with revenue increasing 8.4 per cent to RM736.2 million driven by stronger channel execution, higher export sales, accelerated expansion of Magnolia, and sustained momentum across the beverage and dairy categories, supported by effective marketing campaigns.

“The Malaysian operations continued to strengthen its market position, gaining share in the zero sugar, liquid milk and UHT milk categories,” it said. 

F&N said 100PLUS Zero maintained its leadership in the zero sugar segment, delivering growth ahead of the category, while Magnolia expanded household penetration through wider distribution reach, its “Magnolia 100 per cent fresh milk” proposition and targeted consumer activation programmes.

The initiatives enhanced brand reach and supported continued growth across the Malaysian market.

On prospects of the upcoming fourth quarter of 2026 (4Q FY2026), it said risks from global and regional geopolitical uncertainties, including the conflict in West Asia, remain elevated.

“Cost pressures are expected to remain manageable, supported by disciplined trade spend management, supply chain optimisation and cost-to-serve efficiencies.

“The group will continue to prioritise driving sales through wider outlet reach, improved route-to-market execution and accelerating the penetration and reach of Magnolia 100 per cent fresh milk across key channels,” it said. 

However, it said any price adjustments, where necessary, will be implemented gradually and only as a last resort, after taking into account prevailing market conditions and household affordability.

The group remains focused on strengthening its market position and building long-term resilience.

The upcoming commercialisation of the Cambodia dairy plant is expected to enhance local manufacturing capability, improve supply continuity and support the expansion of the dairy business in Indochina. — Bernama

NEW YORK, July 31 — Tesla boss Elon Musk has dismissed a report that the electric carmaker is considering separating its China business to pave the way for a merger with his space company SpaceX, reported German news agency dpa.

“This is fake news,” Musk wrote on his social media platform X in response to a post about the report by the Wall Street Journal. The post Musk replied to late Thursday was later deleted.

Tesla’s Shanghai factory accounts for more than half of the company’s global vehicle production. Its only other manufacturing plant outside the United States is located outside of Berlin.

The Wall Street Journal, citing a person familiar with the matter, reported that some Tesla executives had been instructed to prepare for a separation of the company’s China operations ahead of a potential merger. A second source told the newspaper that advisers had discussed options including a spin-off, sale or closure of the China business.

Speculation about a possible merger between Tesla and SpaceX, which is also led by Musk, has circulated for some time. During Tesla’s quarterly earnings call last week, Musk did little to dispel the rumours. Asked by an analyst about a possible combination, he acknowledged there were overlaps between the companies but said a quarterly earnings call was not the appropriate forum to discuss a merger.

“It is got to be done with the appropriate process,” Musk said, before handing over to Tesla’s chief legal officer, Brandon Ehrhart, who highlighted joint projects including the construction of a semiconductor plant known as Terafab.

A merger between Tesla and SpaceX would not be possible while Tesla retains its China business, according to the Wall Street Journal. 

SpaceX is a key contractor for the US spaceflight initiatives and carries out numerous government launches, including military missions. It also plays a central role in the United States’ current lunar exploration programme. — Bernama-dpa

KUALA LUMPUR, July 31 — The ringgit ended the week marginally higher against the US dollar following weaker-than-expected US economic data although sentiment towards the greenback remained firm, as expectations of a Federal Reserve (Fed) interest rate hike in September stayed intact.

At 6pm, the local currency appreciated to 4.0835/0875 versus the greenback from Thursday’s close of 4.0875/0930.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of a September interest rate hike by the Fed stayed intact despite weaker US economic data, helping to limit the US dollar’s losses.

“The United States’ second-quarter 2026 gross domestic product (GDP) growth came in below expectations at 1.5 per cent compared with the consensus estimate of 2.1 per cent.

“Meanwhile, the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, moderated to 3.7 per cent in June from 4.1 per cent in May,” he told Bernama.

The ringgit traded lower against a basket of major currencies at the close.

It eased versus the Japanese yen to 2.5520/5548 from 2.5029/5064 at Thursday’s close, depreciated vis-à-vis the euro to 4.6981/7027 from 4.6863/6926 yesterday and declined versus the British pound to 5.4923/4977 from 5.4691/4764 previously.

The ringgit also traded lower against regional currencies.

It weakened versus the Thai baht to 12.2264/2435 from 12.1637/1852 at yesterday’s close, declined against the Indonesian rupiah to 226.6/226.8 from 225.7/226.0 previously, depreciated vis-à-vis the Philippine peso to 6.66/6.67 from 6.64/6.65, and slipped against the Singapore dollar to 3.1823/1856 from 3.1701/1746. — Bernama

KUALA LUMPUR, July 31 — Eastern & Oriental Bhd (E&O) and Majestic Gen Group are acquiring a piece of freehold land along Jalan Kia Peng, Kuala Lumpur, for RM189.90 million from Twelve Kiapeng Sdn Bhd.

In a Bursa Malaysia filing today, E&O said the acquisition is for a 0.56-hectare plot of land that includes a 30-storey condominium block.

It said the land acquisition will be undertaken by KP Urban Sdn Bhd, which is jointly owned by KCB Holdings Sdn Bhd, a wholly-owned subsidiary of E&O, with a 66.67 per cent equity interest, and Golden Urban Nite Sdn Bhd, an affiliated company of Majestic Gen Sdn Bhd, with the remaining 33.33 per cent equity interest.

E&O said KP Urban intends to fund the purchase through a combination of bank borrowing and/or financing facility to be obtained from a bank or other financial institutions, as well as shareholders’ advances.

“The final funding mix will be determined by KP Urban at a later stage after taking into consideration, among others, its gearing level, cash flow requirements and cost of funding,” it added. 

The property developer said the proposed acquisition was in line with its business strategy to expand its land bank through KP Urban and strengthen its future development and sustainable growth.

“The acquisition of the Land will enable KP Urban to undertake a residential development project in a strategic location, thereby enhancing its project pipeline and future growth prospects, subject to the necessary approvals being obtained and prevailing market conditions,” it added.

E&O managing director Kok Tuck Cheong said the acquisition will further strengthen E&O’s premium development portfolio across Malaysia’s residential markets.

“More importantly, it reinforces our confidence in the long-term fundamentals of Kuala Lumpur’s high-end residential sector and our ability to create sustainable value for our shareholders,” he said.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the first quarter of 2027. — Bernama

KUALA LUMPUR, July 31 — Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40.

The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day.

The broader market was positive with gainers outpacing losers 713 to 407, while 558 counters were unchanged, 1,063 untraded and 56 suspended.

Turnover expanded to 3.10 billion units valued at RM3.57 billion from 2.49 billion units valued at RM2.25 billion on Thursday.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng noted that across the region, most major indices closed in positive territory with strong gains in South Korea, while the Bank of Japan’s decision to leave interest rates unchanged was largely in line with market expectations.

Regionally, South Korea’s Kospi Composite Index surged 17.91 per cent to 6,595.45, Japan’s Nikkei 225 soared 4.03 per cent to 64,362.02, and Shanghai’s SSE Composite Index improved 0.72 per cent to 3,832.26, Indonesia’s IDX Composite Index inched up 0.80 per cent to 6,236.13, and Hong Kong’s Hang Seng Index gained 0.10 per cent to 25,884.43.

Meanwhile, Singapore’s Straits Times Index declined 0.79 per cent to 5,628.50.

On the domestic front, Thong said sentiment has improved following the return of foreign buying, providing additional support to the local market.

“Blue chips have the strongest fundamentals and high turnaround for the past two days,” he told Bernama.

Among the heavyweights, Maybank added two sen to RM10.90, Public Bank perked up one sen to RM5.17, CIMB added six sen to RM7.89, IHH Healthcare was unchanged to RM8.35, while Tenaga Nasional fell two sen to RM14.60.

As for the active stocks, Zetrix AI put on three sen to 74.5 sen, Nationgate climbed six sen to RM1.19, V.S Industry edged up one sen each to 23 sen, TWL inched up half-a-sen to 2.5 sen, and Inari Amertron increased 10 sen to RM2.22.

Of the lead gainers, Malaysian Pacific Industries garnered RM3.00 to RM46.00, Nestlé gained RM1.60 to RM101.10, ViTrox jumped 70 sen to RM8.70, UMS Integration leapt 51 sen to RM7.35, and Petronas Dagangan advanced 32 sen to RM19.52.

Hong Leong Industries led the losers list, falling 28 sen to RM17.72, Allianz Malaysia lost 20 sen to RM21.00, Kuala Lumpur Kepong eased 18 sen to RM21.02, Concrete Engineering Products slid 14 sen to RM3.32, and MISC fell 13 sen to RM7.99. 

On the index board, the FBM Emas Index increased 57.46 points to 12,751.79, the FBM Top 100 Index rose 53.80 points to 12,585.11, and the FBM Mid 70 Index jumped 167.0 points to 18,135.79.

The FBM Emas Shariah Index advanced 65.80 points to 12,596.29 and the FBM ACE Index garnered 51.91 points to 4,974.68.

Sector-wise, the Industrial Products and Services Index edged up 1.74 points to 188.74, the Energy Index inched up 4.66 points to 765.72, and the Financial Services Index put on 73.83 points to 20,327.64, while the Plantation Index slipped 38.48 points to 9,288.57.

The Main Market volume expanded to 1.50 billion units valued at RM3.24 billion compared to 1.19 billion units valued at RM1.98 billion on Thursday.

Warrants turnover jumped to 1.08 billion units worth RM139.50 million versus 863.66 million units worth RM122.51 million previously.

The ACE Market volume increased to 509.99 million units valued at RM189.47 million from 425.20 million units valued at RM153.01 million yesterday.

Consumer products and services counters accounted for 155.24 million shares traded on the Main Market, industrial products and services (313.05 million), construction (81.83 million), technology (357.44 million), financial services (142.45 million), property (154.63 million), plantation (25.38 million), real estate investment trusts (29.87 million), closed-end fund (324,700), energy (64.71 million), healthcare (37.45 million), telecommunications and media (51.28 million), transportation and logistics (59.0 million), utilities (34.56 million), and business trusts (20,100). — Bernama

KUALA LUMPUR, July 31 — Lower retail fuel inflation, particularly for RON97 and diesel, contributed to Malaysia’s headline inflation easing to 1.9 per cent in June, said Bank Negara Malaysia (BNM).

In its Monthly Highlights for June 2026 released today, the central bank said the headline and core inflation moderated slightly to 1.9 per cent from 2.0 per cent in May, reflecting easing external cost pressures and lower inflation across several core items.

BNM said lower core inflation also contributed to the decline, mainly reflecting base effects from the increase in streaming services inflation in June 2025, alongside lower inflation for jewellery and watches amid softer global gold prices.

“The Index of Wholesale and Retail Trade moderated to 3.1 per cent in May from 6.2 per cent in April, while growth in retail (4.4 per cent; April 2026: 3.9 per cent) segment improved, driven mainly by retail trade in non-specialised stores and retail sale of automotive fuel in specialised stores.

“However, this was more than offset by moderating wholesale trade and decline in the motor vehicle segment. This was mainly contributed by slower growth for other specialised wholesale, wholesale of household goods and lower sales of motor vehicles,” it said.

Meanwhile, it said credit to the private non-financial sector remained stable at 6.4 per cent in June reflecting sustained growth in both outstanding loans at 6.0 per cent and corporate bonds at 8.1 per cent from 8.0 per cent in May.

BNM said business loan growth continued its upward trend at 7.2 per cent in June from 7.0 per cent in May, driven mainly by loans to non-small and medium enterprises (SMEs), particularly for working capital purposes.

“Outstanding household loans grew by 5.3 per cent (May 2026: 5.5 per cent) amid some moderation in the growth of personal use loans,” it said.

As for banks’ assets quality, BNM said gross and net impaired loans ratios remained broadly unchanged at 1.4 per cent and 1.0 per cent respectively, while loan loss coverage ratio (including regulatory reserves) remained prudent at 124.6 per cent of gross impaired loans in June from 124.1 per cent in May. 

The banking system continued to record healthy liquid asset buffers with an aggregate liquidity coverage ratio of 149.7 per cent from 149.2 per cent in May, it said.

On financial markets, BNM said global market sentiment continued to be influenced by rising expectations of a possible rate hike by the United States Federal Reserve (Fed) by end-2026,

This is underpinned by stronger-than-expected labour market data, elevated inflation readings and the Fed’s updated economic projections.

“Amid these global developments, the ringgit depreciated by 2.6 per cent against the US dollar, following the strengthening of the US dollar,” it said.

The benchmark 10-year Malaysian Government Securities yields increased by 4.0 basis points (bps) amid higher net bond issuances, while the FTSE Bursa Malaysia KLCI declined by 1.1 per cent driven by non-resident outflows, it added. — Bernama

LONDON, July 31 — British oil and gas giant BP said Friday it had launched a process to sell its North Sea business as it looks to focus on its “highest value opportunities”.

Its North Sea portfolio off the UK coast comprises five production hubs and employs about 1,100 people, BP added in a statement.

US President Donald Trump has repeatedly called on Britain to ramp up oil and gas production in the North Sea, to which new Prime Minister Andy Burnham on Thursday said he would take “a pragmatic approach” to fossil fuel extraction in UK waters. — AFP

TOKYO, July 31 — Sony hiked its profit forecasts for the current year on Friday, helped by the Japanese consumer electronics giant’s video games division and the weak yen.

For the year to next March, the PlayStation maker expects net income of 1.21 trillion yen (RM30.19 billion), up from 1.16 trillion yen (RM28.94 billion) projected before.

Overall, Sony projected group revenues in the year to March 31, 2027 of 12.5 trillion yen (RM311.88 billion), up from the previous forecast of 12.3 trillion yen (RM306.89 billion) issued in May.

Sony said that it is also benefiting from favourable foreign currency effects – the yen has been trading around a 40-year low against the dollar – and tariff refunds by the United States.

The video games sector is fragile, as console manufacturers’ margins are eroded by soaring memory chip costs driven by the artificial intelligence boom.

Sony on Friday indicated that it has sufficient components to meet planned production levels for its PlayStation 5 during the current fiscal year.

The upcoming launch of Marvel’s Wolverine in September and Grand Theft Auto VI in November – predicted to be the biggest release in gaming in years – are also expected to help the company.

Sony and other console makers have also been passing on the rising costs of memory to customers, which hurts demand.

The US video game market market in June saw a 21-per cent drop, according to research firm Circana, while costs for developing games are rising.

US studio Bungie, creator of Halo and Destiny, acquired by Sony in 2022, said in June it would cut a “significant” number of jobs.

US giant Microsoft announced in early July the elimination of 4,800 jobs, including 3,200 in its Xbox gaming division this year and next.

Against this backdrop, Yasuo Nakane of Mizuho Securities suggested last month that a next-generation Xbox console was “unlikely”.

“That would be positive for Sony, as it would give the company more flexibility regarding the launch schedule and pricing” of its potential future PlayStation 6 console.

Analysts predict a launch by the end of 2028 – the PS5 has been on the market since 2020 – with Mizuho forecasting that Sony will release a handheld console followed by a home console a year later.

In Sony’s other divisions, exchange rates are also expected to bolster results in music, film, and image sensors, particularly those used in smartphones.

Between April and June, net profit surged 32.1 per cent to 342.2 billion yen (RM8.54 billion) and sales rise by 8.2 per cent.

The group stated that the powerful earthquake that struck Kumamoto in southwestern Japan on Tuesday, leaving 35 people dead, had affected its local semiconductor production plants, though without causing major damage. — AFP

BEIJING, July 31 — China’s factory activity unexpectedly slid in July, official data showed Friday, as leaders in the world’s second-largest economy struggle to reignite domestic demand.

The country’s manufacturing sector has faced uncertainty this year due to the Middle East war, which has driven up global energy prices and disrupted shipping.

Booming exports underpinned by strong demand overseas for electronics and AI hardware have provided a lifeline as consumption at home remains weak.

The manufacturing purchasing managers’ index (PMI), a closely watched gauge of industrial health, fell into contraction territory at 49.2, data by the National Bureau of Statistics showed Friday.

That was well below the 50.1 expansion forecast by a Bloomberg survey of economists, and also down from June’s 50.3.

“Domestic weakness appears largely to blame – while the export orders index softened a bit, it remains relatively strong compared to the past few years,” wrote Julian Evans-Pritchard of Capital Economics.

“The weakness will increase pressure on local governments to follow through on the Politburo’s latest request for them to step up their spending,” he said, referring to calls this week by a top decision-making body.

China’s economy grew 4.3 per cent year-on-year in the second quarter of 2026, the slowest pace in more than three years, official data showed this month.

The persistent slump in domestic spending, as well as a years-long crisis in the once-roaring property sector, have left Beijing reliant on exports to achieve growth.

The government’s official growth target for this year is 4.5-5.0 per cent – the lowest in decades.

Xi notes ‘challenges’ 

In another stark sign of woes, the official non-manufacturing PMI, which measures activity in sectors such as services and construction, fell sharply to 49.0 in July, the data showed Friday.

That contraction was the most pronounced in more than three years.

The reading indicated “a decline in the non-manufacturing sector’s prosperity level” in July, said NBS statistician Huo Lihui in a statement.

Huo said the “main factors” for the slump were “significant declines” in activity across wholesale trade and monetary financial services, while the real-estate sector was also “below the critical point”.

The lacklustre figures come one day after President Xi Jinping acknowledged “difficulties and challenges” facing the country’s economy.

Xi said in a speech addressing leaders that in the second half of the year “we must enhance the effectiveness of macroeconomic policies (while) focusing on tapping the potential of domestic demand”, according to state news agency Xinhua.

Messages from China’s Politburo this week “suggest that the policy makers focus on the quality of growth rather than the speed”, said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.

“Acceleration of fiscal spending will be the key policy support” in the third quarter, he wrote, adding that “development of the new technology sector is on the top of the policy agenda”. — AFP

NEW YORK, July 31 — US oil giants are set to report blowout profits Friday at a time when lofty gasoline prices are stressing consumers and exacerbating President Donald Trump’s worries about upcoming midterm elections.

The second-quarter reports from ExxonMobil and Chevron reflect the overwhelmingly positive impacts to the industry’s bottom line from the US-Iran war, which has led to an unprecedented supply shock due to the virtual closure of the Strait of Hormuz.

But huge oil industry profit increases often generate political blowback.

Even Trump, a strong supporter of fossil fuel interests, has lashed out over gasoline prices, announcing in June that he was directing the Department of Justice to investigate any “gouging” perpetrated by the industry.

“Gasoline prices better start going down a lot faster than what I’m seeing,” Trump said in a June 24 social media post.

Trump at the time was questioning why gasoline prices had not fallen further in a period when a US-Iran ceasefire had translated into sharply lower crude prices.

But US gasoline prices have shot back above US$4 a gallon on the latest war escalations. On Thursday, US prices stood at US$4.10 per gallon (RM16.77 per gallon), about 31 per cent above year-ago levels, according to the American Automobile Association.

Meanwhile, polling has shown Trump increasingly vulnerable on pocketbook issues ahead of the November midterms. Roughly two-thirds of voters said that Trump’s policies have worsened economic conditions, according to a CNN poll this week.

The US earnings reports Friday come on the heels of staggering results in recent days from European petroleum heavyweights. Shell saw profits triple to US$10.8 billion (RM44.17 billion) while TotalEnergies reported a doubling of profits to US$5.4 billion (RM22.09 billion).

Such mammoth profit increases reflect the lift to crude oil and natural gas prices from the closure of the Strait of Hormuz, through which about one-fifth of the world’s crude oil and one-fourth of liquefied natural gas passes each day. The conflict has also tightened oil product supplies, significantly boosting refining margins.

In ExxonMobil’s case, the Middle East conflict has also had dented output due to Iran’s strikes on key assets in Qatar and the United Arab Emirates. In May, ExxonMobil said the downed LNG trains in Qatar would translate to a loss of roughly 100,000 oil-equivalent barrels per day.

But ExxonMobil is still projected to report US$14.9 billion (RM60.94 billion) in quarterly profits, according to S&P Capital IQ, more than double the profit of the year-ago period.

Chevron is forecast to report profits of US$11.1 billion (RM45.40 billion), more than four times the 2025 level.

Defending buybacks 

NGOs including Oxfam have blasted continued fossil fuel investment when wildfires and flooding underscore the urgency of addressing climate change.

“It’s really unfair that when people are suffering, these companies are making huge profits,” said Oxfam’s climate policy lead Mariana Paoli.

Oxfam backs windfall profit taxes that have support in some European countries but are not on the political radar in Washington.

Lowering gasoline prices before November is high on Trump’s priority list, prompting numerous White House meetings, according to US media reports.

Trump took credit for a July 6 announcement from Walmart that it was lowering prices on such household items as fresh corn, potato chips and ground beef. The company did not comment on Trump’s statements.

In past media appearances, ExxonMobil Chief Executive Darren Woods and Chevron Chief Executive Mike Wirth have pointed to increased drilling in US sites such as the shale-rich Permian Basin as evidence of their commitment to boosting supply.

They have defended share buybacks – a target of former president Joe Biden – as an aspect of profit-oriented business, while characterising the spike in oil prices and other commodities as an inevitable outcome of supply disruption.

“There’s nothing that the oil companies can actually do,” said Kenneth Medlock III, a fellow at the Baker Institute at Rice University in Houston.

“The quickest way to bring gas prices down is for the Iran crisis to disappear,” Medlock said. “Most people in the public understand what’s going on.” — AFP

KUALA LUMPUR, July 31 – The ringgit opened higher against the US dollar on Friday as the greenback weakened following softer United States (US) economic data, an analyst said.

At 8 am, the local currency strengthened to 4.0800/0885 against the greenback from Thursday’s close of 4.0875/0930.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 1.01 per cent to 99.864 as the latest economic data pointed to slower growth in the US economy in the second quarter of 2026.

He said US gross domestic product (GDP) expanded 1.5 per cent in the second quarter, below the consensus forecast of 2.1 per cent.

The US Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) Price Index, eased to 3.7 per cent in June from 4.1 per cent in May.

“Such an outturn supports the Fed’s decision to keep its benchmark interest rate unchanged in the near term, as growth has slowed while inflation has moderated, suggesting the current monetary policy stance remains appropriate,” he told Bernama.

He added that average US petrol prices fell to US$4.39 per gallon in July from US$4.54 in June, indicating inflation could ease further.

“Hence, the prospect of a rate hike at the September meeting could mean the US dollar loses momentum, which explains why the DXY is currently hovering below the 100-point mark.

“As such, the ringgit is expected to remain supported today and trade between RM4.07 and RM4.08,” he added.

The ringgit traded lower against a basket of major currencies at the opening.

It weakened against the Japanese yen to 2.5465/5520 from 2.5029/5064 at Thursday’s close, eased versus the euro to 4.7014/7112 from 4.6863/6926 and fell against the British pound to 5.4917/5031 from 5.4691/4764.

Against regional currencies, the ringgit traded mixed.

It strengthened against the Indonesian rupiah to 225.2/225.8 from 225.7/226.0 and appreciated versus the Philippine peso to 6.62/6.64 from 6.64/6.65.

However, it weakened against the Singapore dollar to 3.1820/1892 from 3.1701/1746 and eased versus the Thai baht to 12.2225/2546 from 12.1637/1852. — Bernama

SAN FRANCISCO, July 31 — Amazon beat analysts’ expectations on Thursday when it reported growth in overall revenue and sales, particularly in its cloud, artificial intelligence and chips divisions.

Its revenue increased 20 per cent to more than US$200 billion (RM818 billion) in the second quarter, compared to last year, with its cloud business, Amazon Web Services, jumping 37 per cent to reach US$42.2 billion (RM172.6 billion).

The company meanwhile said that two of its AI-related divisions grew by “triple-digit percentages” – its AI cloud and chips businesses each “exceeded” US$25 billion (RM102.25 billion) annual revenue run rates, a measure of recurring sales.

Amazon stock jumped by more than 7 per cent after hours.

The company is working to show that its heavy investments in artificial intelligence, alongside the rest of the tech sector, are paying off.

AWS is “booming,” Amazon CEO Andy Jassy said during a call with analysts Thursday afternoon.

He added that the company believes AWS alone could “very possibly be a trillion-dollar annual revenue business for us in time.”

The company has developed its own AI models, known as Nova, though a recent report from Business Insider said the company is winding down that work.

“AWS and Amazon can have a wildly successful business without its own frontier model,” Jassy said on Thursday, but he denied it was abandoning the effort. “We are pursuing our own frontier model.”

It also offers customers access to dozens of other models from developers, including those from OpenAI, which makes ChatGPT, and Anthropic, which makes Claude.

Some AWS customers are even using the service “to build their own foundation models,” which are “smaller models that leverage their proprietary data,” rather than using bigger AI models from other competitors, Jassy said.

Amazon has made investments and signed partnerships worth billions with both OpenAI and Anthropic.

Spending billions 

Amazon, Microsoft, Alphabet and Meta are collectively on track to pour around US$700 billion (RM2.86 trillion) into AI data centres, chips and computing infrastructure this year.

On Thursday, Amazon increased its estimate for capital expenditures in 2026.

It now expects to spend US$220 billion (RM899.8 billion) this year, up from its previous estimate of US$200 billion (RM818 billion), Jassy said.

On Wednesday, Microsoft adjusted its forecast for total spending in the 2026 calendar year to US$175 billion (RM715.75 billion), down from US$190 billion (RM777.1 billion) previously.

The maker of LinkedIn and Xbox likewise showed growth in revenue and profits, and said that its AI-powered business productivity tool, called Copilot, grew to over 30 million paid users.

Microsoft shares soared over 15 per cent on Thursday after reporting results on Wednesday that beat expectations.

Meta meanwhile raised its spending estimate to as much as US$145 billion (RM593.05 billion) this year, nearly double what it spent in 2025, when it reported its results on Wednesday.

The maker of Facebook, Instagram and WhatsApp reaffirmed that it would keep spending heavily on the data centres and chips underpinning its AI effort.

Meta’s shares dropped as much as 12 per cent during after-hours trading on Wednesday after it reported disappointing results, and closed down another 8 per cent on Thursday.

Last week, Alphabet increased its capital expenditure estimate for the full year to as much as US$205 billion (RM838.45 billion), a jump from its previous estimate of US$190 billion (RM777.1 billion) that CFO Anat Ashkenazi said was driven by AI investments. — AFP

SAN FRANCISCO, July 31 — Apple beat market expectations in its latest results on Thursday, capping Tim Cook’s final earnings report as CEO with a strong showing, although the outlook for the current quarter disappointed investors.

The Cupertino-based tech giant’s results were powered by robust iPhone demand, a sharp rebound in China and double-digit growth in every region where it operates.

Sales rose 16 per cent to US$109.4 billion (RM447.84 billion) in the April-through-June period, while profit climbed 27 per cent to US$29.8 billion (RM121.98 billion).

The company’s performance was boosted by refunds of tariffs imposed last year by Donald Trump and overturned by the US Supreme Court in February.

Its iPhone sales jumped 22 per cent to US$54.3 billion (RM222.04 billion) as customers kept upgrading to the latest models, while Mac revenue climbed 29 per cent, with higher prices doing little to dampen demand.

Apple’s services business – which spans the App Store, iCloud, Apple Music and advertising – grew 12 per cent to US$30.7 billion (RM125.53 billion), slightly below analyst expectations.

Souring the picture, Apple forecast revenue growth of between nine and 11 per cent in the current quarter, below estimates, citing supply constraints.

Cook told analysts the constraints stemmed from unexpectedly strong demand for the iPhone and Mac.

The guidance sent Apple shares down by as much as eight per cent in after-hours trading.

“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” Cook said in a statement.

The earnings announcement was expected to be the last for Cook as chief executive.

CEO change 

John Ternus, who attended the post-earnings analysts call with Cook, will take over as Apple chief executive on September 1, with Cook becoming executive chairman of the iPhone maker’s board.

Cook has led the company since 2011, taking over shortly before the death of co-founder Steve Jobs.

Long criticized for falling behind in the AI race, Apple is now being rewarded by Wall Street for resisting the vast investments its big tech rivals have poured into chips and data centres.

Apple touched a US$5 trillion (RM20.45 trillion) market value this week, while some rivals have seen their shares punished as investors question the profitability of their huge AI bets.

Meta’s shares sank about nine per cent Thursday after this week’s results stoked alarm over its spending.

Microsoft, by contrast, rose sharply after signaling its AI bets were starting to pay off.

The major concern for Apple’s business is rising prices for memory chips, a key component for electronics.

The iPhone maker in June raised prices for its Mac computers and iPad tablets, citing spiraling memory and storage costs sparked by the rise of artificial intelligence, though it spared the iPhone.

Cook told analysts it was too early to say how those price hikes would affect demand over time.

Attention is now turning to how Apple will price its next lineup of smartphones, expected in September and reportedly including a foldable model.

This week the company also launched Apple Upgrade, a leasing program that lets US customers pay for an iPhone or other devices in monthly installments. — AFP

PARIS, July 30 — Soaring fuel prices due to the Mideast war have supercharged sales of electric cars in the second quarter, the International Energy Agency said Thursday.

Electric vehicle (EV) sales jumped 35 per cent in the second quarter from the first three months of this year, hitting records in 50 countries, the IEA said in a new report.

“Despite a challenging backdrop for the global car market, sales of electric cars surged in the second quarter of this year as the energy crisis sparked by the war in the Middle East brought fuel price volatility back into sharp focus,” it said.

Crude oil prices soared from around US$60 a barrel at the start of the year to nearly US$120 after Iran effectively closed the Strait of Hormuz — through which a fifth of the world’s oil normally transits — after Israel and the United States launched attacks in February.

Soaring oil prices and supply shortages brought energy security to the forefront, and with road vehicles accounting for half of global oil use, EVs offer means to reduce dependence on imported fuel.

“Today, electric vehicles are in the spotlight as part of potential policy responses, thanks to the opportunity they present to enhance energy security for oil-importing countries while at the same time shielding consumers and businesses from price fluctuations,” the IEA said.

It noted several particularly hard-hit oil-import-dependent countries in South-east Asia introduced temporary tax breaks to encourage purchases of electric vehicles.

Building on the momentum from the second quarter as well as government support for buying EVs in Latin America, South-east Asia and Europe, the IEA said that it expects electric car sales will grow 10 per cent this year and account for 29 per cent of total car sales.

The overall car market is expected to decline in 2026.

Sales of electric vehicles plummeted in the first quarter of the year, mostly due to China and the United States.

While the removal of subsidies hurt sales in the US, the struggling economy held back Chinese buyers, especially as it cut back subsidies as well.

With China being the biggest market for EVs, a decline there masks strong growth elsewhere in overall figures.

The IEA said Europe recorded the strongest growth in EV sales in the first half of this year, climbing by more than 30 per cent. — AFP

KUALA LUMPUR, July 30 — YTL Hospitality Real Estate Investment Trust (YTL Hospitality REIT) recorded a higher net profit of RM240.74 million for the financial year ended June 30, 2026 (FY2026), compared to RM148.55 million in FY2025.

In a Bursa Malaysia filing, the company said the increase was primarily contributed by higher net property income and a reduction in finance costs, mainly due to the interest rate reduction on its Australian dollar loan and improvement in net fair value gain on properties.

Revenue also increased to RM570.34 million from RM548.32 million previously.

For the fourth quarter (Q4), YTL Hospitality’s net profit rose to RM119.55 million from RM56.24 million in the same quarter last year, while revenue was slightly lower at RM126.32 million from RM127.02 million.

YTL Hospitality REIT attributed the rise in Q4 net profit to higher net property income, a higher unrealised foreign currency translation gain of RM1.92 million on borrowings denominated in foreign currencies, and net fair value gain on properties of RM109.99 million.

The income available for distribution in the current financial quarter of RM53.821 million represented an increase of 1.13 per cent as compared to RM53.219 million recorded in the preceding year’s corresponding quarter.

Regarding prospects, YTL Hospitality REIT said the hospitality sector is expected to remain stable in the regions in which the group operates, supported by sustained growth in domestic and international travel demand. — Bernama  

FRANKFURT, July 30 — German sportswear maker Adidas missed profit expectations on Thursday after it reported results weighed by the costs of World Cup marketing, sending its shares down 17 per cent.

Core profit came in at 574 million euros ($657 million) for the three months to the end of June, Adidas said, higher than last year but about eight percent below expectations when compared to a poll of analysts by financial platform FactSet.

Adidas spent over 200 million euros more on marketing than this time last year as it developed a World Cup campaign that brought in footballing stars like Lionel Messi, Lamine Yamal and Jude Bellingham — bringing total marketing outlays to almost one billion euros for the quarter.

Higher transport costs and US tariffs also weighed on the result, the maker of Gazelle and Samba trainers said.

Adidas also took in about 1.5 billion euros of sales linked to the World Cup, it said, selling four times as many football jerseys and twice as many balls as during the last event.

Mexico shirts sold best, Adidas said, followed by those of Germany.

Adidas slightly raised its guidance for the year, saying it sees sales growth of between nine and 10 per cent, up from a previous forecast of high single-digit growth.

It kept its core profit target of 2.3 billion euros. — AFP

KUALA LUMPUR, July 30 — The ringgit closed mostly higher against regional currencies and was flat against the US dollar on Thursday, following the latest US Federal Open Market Committee (FOMC) decision to stand pat.

At 6pm, the local currency was flat at 4.0875/0930 against the greenback from Wednesday’s close of 4.0875/0915.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded within a narrow range following the FOMC decision overnight.

“The US Federal Reserve kept the federal funds rate unchanged at between 3.50 per cent and 3.75 per cent. However, the decision was not unanimous, with three of the 12 voting members favouring an increase in the benchmark interest rate.

“This suggests that the Fed may be leaning towards raising interest rates at its next FOMC meeting on September 15 and 16,” he told Bernama.

Mohd Afzanizam said the outlook had placed the US dollar in a favourable position.

“The Fed appears likely to raise interest rates, while higher crude oil prices could reverse the moderation in US inflation recorded in June during the second half of 2026.

“This could explain why the US Dollar Index is currently 0.17 per cent higher at 101.058 points,” he said.

The ringgit traded lower against a basket of major currencies at the close.

It eased against the Japanese yen to 2.5029/5064 from 2.4982/5008, depreciated vis-à-vis the euro to 4.6863/6926 from 4.6561/6606 and declined versus the British pound to 5.4691/4764 from 5.4351/4405 on Wednesday.

Meanwhile, the ringgit traded mostly higher against regional currencies.

It strengthened versus the Thai baht to 12.1637/1852 from 12.1971/2138, rose against the Indonesian rupiah to 225.7/226.0 from 226.1/226.5 and appreciated vis-à-vis the Philippine peso to 6.64/6.65 from 6.65/6.67 previously.

However, the local note weakened against the Singapore dollar to 3.1701/1746 from 3.1632/1666. — Bernama 

KUALA LUMPUR, July 30 — Bursa Malaysia Bhd is set to unveil its strategic roadmap for 2027-2030 in the fourth quarter of this year (Q4 2026), outlining initiatives to accelerate market growth, diversify revenue streams and strengthen the exchange’s long-term competitiveness.

Chief executive officer Datuk Fad’l Mohamed said the roadmap is currently being finalised and will chart Bursa Malaysia’s strategic direction beyond the completion of its current 2024-2026 roadmap.

“We have been working on a new strategic plan since the end of last year. We are now in the process of finalising our strategic roadmap for 2027-2030, which we expect to launch in the fourth quarter of this year,” he told reporters after Bursa Malaysia’s first-half 2026 (H1 2026) financial results briefing today.

Fad’l said the roadmap is being developed in alignment with the Securities Commission’s Capital Market Master Plan and will focus on accelerating data, digital and technology-enabled growth opportunities to expand Bursa Malaysia’s non-trading revenue.

He said Bursa Malaysia is also exploring opportunities in emerging areas such as tokenisation and the expansion of post-trade service offerings, while assessing strategic partnerships to broaden its distribution reach and accelerate new growth opportunities.

As part of its growth initiatives, he said the exchange also plans to expand its suite of exchange-traded funds (ETFs), including digital currency ETFs, while continuing to build a strong IPO pipeline, particularly larger listings that can enhance market depth, liquidity and investor interest.

Fad’l said Bursa Malaysia will also continue to advance its sustainability agenda by placing greater emphasis on decarbonisation, while improving customer experience and market engagement through targeted, customer-centric initiatives, including the development of the MyBursa mobile application.

He said the exchange remains focused on strengthening its role as Malaysia’s key fundraising platform for businesses across all stages of growth, broadening participation among retail and institutional investors and further leveraging its leadership in the Islamic capital market. — Bernama

KUALA LUMPUR, July 30 — Bursa Malaysia’s key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve’s (Fed) decision to stand pat on interest rates weighed on broader sentiment.

The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56.

The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day.

However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended.

Turnover declined to 2.49 billion units valued at RM2.25 billion from 2.96 billion units valued at RM2.48 billion on Wednesday.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the FBM KLCI closed higher as investors rotated into consumer and plantation stocks despite a weaker US Wall Street sentiment.

“The local market diverged from its regional peers, with selective buying in defensive and commodity-linked sectors providing support to the benchmark index,” he told Bernama.

However, he noted that investor sentiment remained cautious following the rebound in crude oil prices, driven by renewed hostilities between the United States and Iran, which reignited concerns over potential supply disruptions and broader geopolitical risks.

“While the domestic market demonstrated resilience, escalating tensions in West Asia continue to cloud the near-term outlook and could keep volatility elevated across regional equities,” he added.

Among heavyweights, Maybank, Tenaga Nasional and CIMB added two sen each to RM10.88, RM14.62 and RM7.83 respectively, Public Bank inched up one sen to RM5.16, while IHH Healthcare was unchanged at RM8.35.

Of the active stocks, Zetrix AI perked up one sen to 71.5 sen, Steel Hawk gained 1.5 sen to 23 sen, while VS Industry shed 1.5 sen to 22 sen, and HHRG and Tanco Holdings both slid one sen to 12.5 sen and 24.5 sen respectively.

As for the top gainers, Nestle advanced RM2.72 to RM99.50, Fraser & Neave Holdings garnered 60 sen to RM28.00, Kuala Lumpur Kepong rose 44 sen to RM21.20, Allianz Malaysia climbed 20 sen to RM21.20, and Westports Holdings jumped 17 sen to RM7.00.

Malaysian Pacific Industries led the losers list, falling RM1.12 to RM43.00, United Plantations lost 30 sen to RM33.70, Ideal Capital sank 20 sen to RM3.80, Chin Teck Plantations declined 22 sen to RM10.82, and Batu Kawan slipped 18 sen to RM21.00.

On the index board, the FBM Emas Index increased 21.52 points to 12,694.33, the FBM Top 100 Index put on 24.14 points to 12,531.31, the FBM Mid 70 Index erased 12.84 points to 17,968.79, the FBM Emas Shariah Index expanded 25.12 points to 12,530.49, and the FBM ACE Index eased 1.94 points to 4,922.77.

Sector-wise, the Financial Services Index gained 36.84 points to 20,253.81, the Industrial Products and Services Index edged up 0.67 of a point to 187, the Plantation Index rose 25.14 points to 9,327.06, and the Energy Index improved 0.38 of a point to 764.06.

The Main Market volume declined to 1.19 billion units valued at RM1.98 billion compared to 1.32 billion units valued at RM2.16 billion on Wednesday.

Warrants turnover slipped to 863.66 million units worth RM122.51 million versus 1.16 billion units worth RM148.38 million previously.

The ACE Market volume decreased to 425.20 million units valued at RM153.01 million from 478.75 million units valued at RM173.06 million yesterday.

Consumer products and services counters accounted for 141.57 million shares traded on the Main Market, industrial products and services (226.37 million), construction (71.27 million), technology (235.46 million), financial services (75.58 million), property (171.89 million), plantation (24.38 million), real estate investment trusts (14.57 million), closed-end fund (173,100), energy (79.44 million), healthcare (66.37 million), telecommunications and media (24.80 million), transportation and logistics (37.34 million), utilities (23.78 million), and business trusts (300). — Bernama

KUALA LUMPUR, July 30 — Bursa Malaysia Bhd expects one or two large initial public offerings (IPOs) in the second half of 2026 (H2 2026) after raising its full-year IPO market capitalisation target to RM34 billion, supported by a strong listing pipeline.

Chief executive officer Datuk Fad’l Mohamed said the revised target reflects encouraging visibility from the exchange’s IPO pipeline, comprising both Main Market and ACE Market listings.

“We hope to see a couple of large IPOs in the second half and I am confident to say that we should be able to have one or two large IPOs,” he told reporters after Bursa Malaysia’s first half of 2026 (H1 2026) financial results briefing today.

The exchange recently raised its IPO market capitalisation target from RM28 billion given that it has exceeded its full-year 2025 total to date.

Fad’l said Bursa Malaysia had already exceeded its entire 2025 IPO market capitalisation and the upward revision was supported by submissions already received as well as an encouraging pipeline.

“The upward revision was underpinned by strong issuer interest across a broad range of sectors, including healthcare, consumer and technology, as well as healthy investor demand supported by sustained participation from both retail and institutional investors.

“The revised target reflects our confidence in the strength of the IPO pipeline, the continued depth of investor interest and the overall resilience of Malaysia’s capital market,” he said.

Fad’l added that Bursa Malaysia continues to see strong interest from technology companies amid growing investor appetite for artificial intelligence (AI) and technology-related investments.

“We are in what I would call a tech supercycle. The underlying demand for technology and AI-related companies remains strong,” he said.

Earlier, Bursa Malaysia also announced its financial performance for the 1H 2026 ended June 30, 2026, where its net profit increased to RM144.60 million from RM125.48 million, while revenue rose to RM425.04 million from RM356.95 million.

Meanwhile, for the second quarter of the financial year ending Dec 31, 2026 (2Q FY2026), the stock exchange operator posted higher net profit of RM71.77 million from RM57.06 million in the same period a year earlier, and revenue rose to RM210.97 million from RM172.58 million.

As at end-June 2026, Bursa Malaysia recorded 36 listings that raised RM5.4 billion, underscoring continued momentum in the domestic IPO market. — Bernama

KUALA LUMPUR, July 30 — TNG Digital Sdn Bhd today underscored its support for the Public Service Department’s (PSD) alternative pension payment initiative through Touch ‘n Go (TNG) eWallet, saying the platform is already used by more than 3.4 million verified users aged 60 and above.

The company said in a statement today that the initiative offers an alternative payment channel for eligible pensioners unable to access their monthly pensions through conventional banking channels.

“For many retirees, their monthly pension is an essential source of income, but some face difficulties accessing these funds when their bank accounts are frozen or restricted, including after falling victim to financial scams.

“In such situations, some pensioners may need to make alternative arrangements to access their pension payments, creating unnecessary hardship, particularly for elderly Malaysians,” it said.

This follows last week’s announcement by PSD that 835,146 pensioners and derivative pension beneficiaries would benefit from two new initiatives, namely an alternative pension payment channel through TNG eWallet and the expanded MyPesara Plus benefits.

TNG Digital said eligible pensioners under the initiative may also apply for a fee-waived TNG eWallet Visa Card, allowing them to make payments, shop and withdraw cash using their pension funds.

“Linked directly to their TNG eWallet balance, the card also enables cash withdrawals at automated teller machines (ATMs) and payments at Visa merchants worldwide, allowing pensioners to choose the payment method that best suits their daily needs,” it said. 

TNG Digital chief executive officer Alan Ni said financial inclusion is about ensuring no eligible pensioner is left without access to the pension payments they depend on, adding that the company is honoured to support the initiative by providing a secure and accessible alternative payment option through TNG eWallet.

“The fact that more than 3.4 million senior Malaysians already used TNG eWallet gives us confidence that digital financial services can be both accessible and inclusive.

“By complementing this initiative with a fee-waived TNG eWallet Visa Card, we hope to make it even easier for eligible pensioners to manage their everyday expenses with greater convenience and flexibility,” he added. — Bernama

KUALA LUMPUR, July 30 — Bursa Malaysia Bhd’s net profit for the second quarter of the financial year ending Dec 31, 2026 (2Q FY2026) increased to RM71.77 million from RM57.05 million a year earlier.

The stock exchange operator’s revenue for the quarter rose to RM210.96 million from RM172.57 million, driven primarily by higher securities trading activity.

For the cumulative six-month period, net profit increased to RM144.60 million from RM125.48 million, while revenue rose to RM425.04 million from RM356.95 million.

Bursa Malaysia said that in the securities market, average daily trading value (ADV) increased 35 per cent year-on-year (y-o-y) to RM3.3 billion, reflecting sustained investor participation.

“Fundraising activity remained robust, with 36 initial public offerings (IPOs) across the Main, Ace and Leap markets, collectively raising RM5.4 billion and contributing RM26.1 billion in market capitalisation. The IPO pipeline remains encouraging, supporting Bursa Malaysia’s role as a key fundraising platform for businesses across different stages of growth,” it said in a stock exchange filing today.

Bursa Malaysia said the derivatives market continued to record healthy growth, with average daily contracts (ADC) traded rising 9.9 per cent y-o-y to 106,518 contracts.

“The increase was driven mainly by higher trading activity in crude palm oil futures, which accounted for 84 per cent of total ADC. Trading during the T+1 after-hours session also strengthened, with ADC increasing 18.9 per cent y-o-y to 16,801 contracts and contributing 15.8 per cent of total market activity,” it added.

Bursa Malaysia said that in the Islamic market, Bursa Suq Al-Sila’ (BSAS) recorded an ADV of RM49.5 billion, supported by growth in domestic participation.

“The exchange’s broader Islamic capital market ecosystem also continued to expand, with 81 per cent of listed securities on Bursa Malaysia being Shariah-compliant. Bursa Gold Dinar maintained strong momentum, with transaction value rising 178.1 per cent y-o-y to RM200.5 million,” it added.

Chief executive officer Datuk Fad’l Mohamed noted that Bursa Malaysia delivered a resilient first-half performance, supported by strong trading activity, healthy fundraising momentum and continued confidence in the Malaysian capital market. “During the period, Bursa Malaysia led ASEAN in both IPO count and funds raised, with 36 IPOs raising RM5.4 billion, underscoring our role as a trusted platform for companies seeking to raise capital for growth,” he said.

Commenting on the outlook, he said that while geopolitical developments and external market uncertainties continue to warrant close monitoring, Malaysia’s economic fundamentals remain supportive.

“Malaysia’s favourable growth outlook for 2026, driven by sustained domestic demand and continued technology sector expansion, reinforces a conducive environment for capital formation and investment activity.

“We are confident in the outlook for IPO activity in the second half of the year, supported by a healthy pipeline and continued interest from companies seeking to raise growth capital through the public market,” he added.

Against this backdrop, he said Bursa Malaysia remains focused on strengthening market quality, broadening investor access and enhancing market connectivity to support long-term growth.

The company has approved and declared an interim dividend of 16.5 sen per share for FY2026, amounting to about RM133.5 million and representing a dividend payout ratio of 92 per cent.

The entitlement date is August 19, 2026, and payment will be made on August 27, 2026. — Bernama

FRANKFURT, July 30 — Net profit at premium carmaker BMW fell over a third in the second quarter, the firm said today, as intense Chinese competition shakes German automotive giants.

Net profit in the three months to the end of June came in at €1.2 billion (RM5.6 billion), BMW said, a fall of almost 35 per cent on this time last year.

That was BMW’s lowest quarterly profit since late 2024 when faulty brakes fitted to vehicles ended up costing the carmaker hundreds of millions of euros.

Challenging conditions in China — where a sluggish economy and cutthroat competition have hit automakers — drove the result, BMW said.

Even as vehicle deliveries rose slightly in Europe and the United States, they plunged 30.2 per cent in China over the quarter.

“Competition in the global automotive market has sharpened noticeably,” BMW finance boss Walter Mertl said, adding that BMW would let an unspecified number of people go to bring costs down.

“We are intensifying and accelerating our efficiency measures,” he said. “Our goal is to reduce complexity and establish a sustainably lower cost base.”

A BMW source told AFP yesterday that it would offer severance to almost half its German employees with a view to cutting about 8,000 jobs by the end of 2027.

Other German carmakers have also looked to cut overheads as collapsing sales in China have started to look less like a blip and more like a new normal.

Mercedes-Benz also has a voluntary redundancy program and Volkswagen, which apart from its namesake also operates premium brands like Audi and Porsche, is weighing up to 100,000 job cuts across the group, including 50,000 that have already been agreed.

BMW confirmed its adjusted guidance for the year, saying it expects a “significant decrease” in profit.

The owner of the Mini and Rolls-Royce brands issued a shock profit warning last month and said its margin at its core cars business could this year be as low as one per cent, blaming weakness in China. — AFP

LONDON, July 30 — British energy giant Shell said today that its net profit tripled to US$10.8 billion (RM44.2 billion) in the second quarter as the Middle East war sent oil prices soaring.

Profit after tax for the April-June period compared with US$3.6 billion in the second quarter of 2025, Shell said in an earnings statement.

“Shell’s operational performance enabled very strong results during another quarter of severe disruption in global energy markets,” said chief executive Wael Sawan.

Crude futures traded far higher in the second quarter of 2026 compared with the equivalent period one year earlier as the US-Iran war disrupted global supplies.

Shell’s revenue jumped 45 per cent to US$96.4 billion in the second quarter.

It noted, however, that “higher realised prices” were “partly offset by lower volumes, mainly due to the impact of the Middle East conflict”.

Shell said that its gas production had slumped in the April-June period to 631,000 barrels of oil equivalent daily from 909,000 barrels per day in the first quarter.

Its gas output was impacted after the world’s largest liquefied natural gas hub, Ras Laffan in northern Qatar, suffered significant damage in the war.

Shell added yesterday that its latest share buyback would return US$3 billion to shareholders. — AFP

NAGOYA, July 30 — Toyota Motor Corp today retained top spot in first-half global sales in 2026 for the seventh straight year, with its group companies selling 5.39 million vehicles worldwide to outperform German rival Volkswagen AG, Kyodo News reported.

Global sales in the January-June period, however, fell 2.8 per cent from a year earlier, marking the first year-on-year decline in two years, reflecting sluggish demand in China hit by higher gasoline prices amid tensions in the Middle East.

Volkswagen sold roughly 4.13 million units in the same period.

With logistics disruptions stemming from West Asia situation also weighing on operations, the Toyota group’s global output edged down 0.3 per cent to 5.51 million vehicles in the first half. Toyota alone saw its exports from Japan to West Asia  drop 36.0 per cent to 104,093 cars.

The group’s overseas sales dropped 4.5 per cent to 4.30 million vehicles, while domestic sales totalled 1.10 million units, up 4.4 percent, driven by strong sales of the new bZ4X electric vehicle.

Toyota’s global sales of electrified vehicles, led by hybrid vehicles, grew 9.1 per cent to 2.71 million cars, while EV sales jumped about 2.4-fold to 193,172 vehicles, both marking record highs for the first half.

By country and region, sales in China slid 17.1 per cent to 694,670 units, while in the West Asia saw a 21.6 per cent drop in sales to 218,855 cars. Sales in North America edged up 0.9 per cent to 1.45 million vehicles, helped by solid demand for hybrid vehicles.

In June alone, Toyota group’s global sales slipped 1.1 per cent to 926,688 units, while global production climbed 2.2 per cent to 984,408 cars.

Although the group had included Hino Motors Ltd. as its subsidiary as with Daihatsu Motor Co. until March, Hino is no longer Toyota’s consolidated subsidiary following its merger with Mitsubishi Fuso Truck and Bus Corp in April. — Bernama-Kyodo

SAN FRANCISCO, July 30 — Microsoft beat analysts’ expectations in its latest quarterly report, saying yesterday that the results were partly driven by its cloud and artificial intelligence divisions.

The tech giant reported US$90 billion (RM368 billion) in revenue and US$35.8 billion in net income in the last quarter of its fiscal year which ended in June, potentially alleviating concerns from investors and analysts about whether its investments in AI are paying off.

Its AI-powered business productivity tool, called Copilot, also has over 30 million paid users which shows “confidence” from customers as they use Microsoft to “power their AI transformation,” CEO Satya Nadella said in a statement.

Microsoft also saw a US$3.2 billion gain from its investment in Anthropic, the company said.

Its investments in OpenAI boosted Microsoft’s net profit by US$480 million in its fourth quarter and US$4.9 billion for its full fiscal year, the company added.

Major tech companies in the United States have been spending billions to build out AI infrastructure and develop increasingly more advanced AI models.

Amazon, Microsoft, Alphabet and Meta are collectively on track to pour roughly US$700 billion into AI data centres, chips and computing infrastructure this year alone.

Yesterday, Microsoft adjusted its forecast for total spending in the 2026 calendar year to US$175 billion, down from US$190 billion previously.

It spent US$41 billion in the most recent quarter and expects to increase its spending to US$50 billion in the current quarter.

Around two-thirds of its spending goes towards “short-lived assets,” specifically chips, due to customer demand for “both AI and non-AI infrastructure,” CFO Amy Hood said during a call with analysts yesterday afternoon.

Microsoft’s stock soared more than 8 per cent after hours yesterday.

Meta, which also reported its quarterly results yesterday, told investors that it expects to spend up to US$145 billion on capital expenditures, driven by its investments in data centres and chips, nearly double what it spent in 2025.

The social media giant said net income dropped 14 per cent from a year earlier to US$15.8 billion.

Revenue, however, climbed 28 per cent to US$60.8 billion, beating estimates and underscoring the continued strength of its advertising business.

Shares in Meta were down as much as 12 per cent in after-hours trading, a sign of analyst scepticism over the scale of the company’s AI spending.

In June, Google parent company Alphabet announced it would raise up to US$80 billion in stock to fund its AI efforts, with Warren Buffett’s Berkshire Hathaway committing US$10 billion.

Last week, Alphabet increased its capital expenditure estimate for the full year to as much as US$205 billion, a jump from its previous estimate of US$190 billion that CFO Anat Ashkenazi said was driven by AI investments. — AFP

KUALA LUMPUR, July 30 — Malaysia recorded strong trade performance in 2025, with total trade up by 6.3 per cent, or RM182.4 billion, to RM3.1 trillion year-on-year (y-o-y) in line with the rise in both exports (6.6 per cent) and imports (6 per cent).

The Department of Statistics Malaysia (DoSM), in its Malaysia External Trade Statistics For Reference Year 2025 today, said the nation sustained its trade surplus for the 28th consecutive year since 1998, reaching RM156.8 billion. This is a 12.8 per cent or RM17.8 billion increase, versus 2024.

“Exports rose by 6.6 per cent to RM1.6 trillion from RM1.5 trillion in 2024, underpinned by domestic exports which rose by 2.2 per cent to RM1.2 trillion and accounted for 77.2 per cent of total exports.

“Re-exports, which accounted for 22.8 per cent of total exports, increased to RM366.8 billion, expanding by 25.1 per cent against 2024. Imports escalated by six per cent, or RM82.3 billion, to RM1.5 trillion, y-o-y,” it added.

DoSM said 133 out of 260 commodity groups in exports showed a rise against 2024, led by electrical and electronic (E&E) products, machinery and equipment and measuring, checking, analysing and controlling instruments.

In imports, 128 out of 261 commodity groups recorded increases, due mainly to higher imports of E&E products, aircraft and associated equipment and engines and motors, non-electric and parts, it said.

“The upswing in exports was mainly attributable to the higher exports to the United States with a positive growth of 17.5 per cent, or RM34.8 billion to RM233.7 billion, driven by higher exports of E&E products (RM26.1 billion), machinery, equipment and parts (RM2 billion), processed food (RM1.6 billion) and manufacture of metal (RM1.2 billion).

“The next largest export destinations were Taiwan (RM21.0 billion, 31.3 per cent), Singapore (RM19.1 billion, 8.3 per cent), European Union (RM13.4 billion, 11.6 per cent) and Mexico (RM11.3 billion, 59.7 per cent),” it said.

DOSM said the import surge was driven by higher imports from China, which expanded by 19 per cent or RM56.3 billion, to RM352.8 billion versus RM296.5 billion in 2024. This was driven by strong E&E imports (RM37 billion), transport equipment (RM6.1 billion) and machinery, equipment and parts (RM4.8 billion).

Malaysia’s higher imports were from Taiwan (RM36.1 billion, 33 per cent), Costa Rica (RM11 billion, 432.5 per cent), South Korea (RM9.2 billion, 16.6 per cent), Vietnam (RM7.7 billion, 26.2 per cent) and the US (RM5.9 billion, 4.7 per cent).

From a sectoral perspective, exports across manufacturing, agriculture, mining and other sectors worth RM1.6 trillion underpinned a 6.6 per cent growth to RM100.1 billion.

DoSM said the rise was due to E&E products (RM110.7 billion, 18.4 per cent), machinery, equipment and parts (RM9.3 billion, 13.5 per cent), optical and scientific equipment (RM6.5 billion, 11 per cent), palm oil-based manufactured products (RM5.7 billion, 16.2 per cent) and palm oil and palm-based agriculture products (RM4.9 billion, 6.2 per cent).

Similarly, expansion in imports was recorded for E&E products (RM111.6 billion, 24.5 per cent), transport equipment (RM7.3 billion, 13.9 per cent), machinery, equipment and parts (RM6.9 billion, 6.1 per cent), metalliferous ores and metal scrap (RM5.8 billion, 35 per cent) and other manufactures (RM4.8 billion, 17.6 per cent).

Correspondingly, the uptick in end-use imports was due to higher demand for capital goods and consumption goods, it added.

DoSM said capital goods imports amounted to RM214.5 billion (14.8 per cent of total imports), a 29.1 per cent expansion.

Imports of consumption goods (8.2 per cent of total imports) rose to RM119.5 billion, a 1.8 per cent increase, or RM2.1 billion, due to higher imports of durable goods (RM2.4 billion) and semi-durables (RM1.3 billion), it said.

“However, intermediate goods (49.5 per cent of total imports) fell by 4.1 per cent or RM30.4 billion to RM718.8 billion in 2025, driven by lower imports of industrial supplies, processed (-RM21.6 billion) and primary fuel and lubricants (-RM13.2 billion),” it said. — Bernama

SAN FRANCISCO, July 30 — Facebook-parent Meta reported profits yesterday that fell short of Wall Street expectations, as the cost of staying in the race to deploy artificial intelligence — along with hefty legal and severance charges — hurt its bottom line.

The social media giant said net income dropped 14 per cent from a year earlier to US$15.8 billion (RM64.6 billion).

Revenue, however, climbed 28 per cent to US$60.8 billion, beating estimates and underscoring the continued strength of its advertising business.

Shares in Meta were down as much as 12 per cent in after-hours trading, a sign of analyst scepticism over the scale of the company’s AI spending.

Its results contrasted with those of Microsoft, another tech giant that has faced investor doubts but beat analyst expectations yesterday, driven by its cloud and artificial intelligence businesses.

At Meta, the profit decline was driven largely by one-time items, including US$2.4 billion in charges tied to legal proceedings and US$1.2 billion in severance from a round of layoffs in May.

Meta has been fighting court and regulatory battles around the world, including one in which a California jury in March ordered Meta and Google to pay US$6 million to a 20-year-old woman who said the platforms had addicted her as a child.

The decision was a first-of-its-kind verdict that could be echoed in thousands of similar cases against Meta still pending.

Meta reaffirmed that it would keep spending heavily on the data centers and chips underpinning its AI effort, telling investors it now expects capital expenditures of US$130 billion to US$145 billion this year — nearly double what it spent in 2025 and slightly higher than its last forecast.

“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,” chief executive Mark Zuckerberg said in a statement.

‘Meaningful premium’ 

The new opportunities referred to Meta’s plan to launch a cloud computing business that would rent out its vast computing power to outside customers.

“We have quite a number of offers at a meaningful premium over what we paid for the (computing power),” Zuckerberg said on a call to analysts after the earnings report.

This would offer a new revenue stream, echoing a strategy Elon Musk’s SpaceX has used to help finance its own AI infrastructure.

Unlike rivals Amazon, Microsoft and Google, Meta has never sold cloud services externally.

Zuckerberg’s “optimistic, positive tone” on AI’s business possibilities “stands in stark contrast to the negative sentiment that’s building toward social media companies over claims that they’ve harmed and addicted kids,” said Emarketer senior analyst Minda Smiley.

“This juxtaposition could make it more difficult for Meta to build credibility in an area where it’s already a laggard,” Smiley added.

Meta’s virtual reality division, Reality Labs, remained deep in the red, posting an operating loss of US$4.6 billion in the quarter.

The unit has bled tens of billions of dollars, and Meta has increasingly shifted its hardware focus toward AI-powered smart glasses, a promising consumer release outside social media.

Unusually for a big tech company, Meta’s AI spending spree has seen its cash pile wind down, with free cash flow falling to US$784 million from US$8.5 billion a year earlier.

A similar AI-related cash burn spooked Wall Street last week when Google reported its latest earnings.

Microsoft on yesterday reported US$90 billion in revenue and US$35.8 billion in net income for its most recently completed quarter, potentially alleviating investor concerns about whether its investments in AI are paying off.

Amazon, a major AI investor, and Apple, which has largely stayed out of the AI investment frenzy, both report today. — AFP

KUALA LUMPUR, July 30 — Bursa Malaysia opened lower on Thursday, taking cues from dampened sentiment on US Wall Street after the US Federal Reserve (Fed) kept interest rates steady at its latest Federal Open Market Committee (FOMC) meeting.

At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid by 2.68 points to 1,712.88 from yesterday’s close of 1,715.56.

The benchmark index opened 1.14 points lower at 1,714.42.

The broader market was negative, with losers outpacing gainers 239 to 76, while 237 counters were unchanged, 2,225 untraded, and 87 suspended.

Turnover totalled 98.08 million shares worth RM56.55 million. — Bernama

SEOUL, July 30 — South Korean technology giant Samsung Electronics posted today a massive 19-fold jump in second-quarter operating profit from a year earlier, buoyed by sustained AI-driven demand for memory chips.

The world’s largest memory chipmaker posted April-June operating profit of 89.49 trillion won (RM253.4 billion) — up 1,813.8 per cent on-year, the company said in a regulatory filing.

The firm posted revenue of 171.49 trillion won, up 130 per cent from a year earlier.

Its net profit soared 1,299.9 per cent on-year to 71.62 trillion won, it said.

The earnings met market expectations, South Korea’s Yonhap news agency said, citing its own financial data firm.

The boom results were posted despite South Korean stocks suffering a sharp sell-off on Wednesday as nervous traders unwound AI-driven bets, fretting whether lofty profit forecasts are realistic.

Samsung fell more than 12 per cent, while its main domestic rival SK hynix tumbled nearly 20 per cent after 14 per cent losses the day before — halving its value from record highs last month.

SK hynix’s second quarter operating profit and revenue posted Wednesday came in below expectations, even as net profit soared a forecast-beating 1,242 per cent.

Samsung Electronics, SK hynix and US firm Micron are the world’s three leading manufacturers of high-bandwidth memory (HBM) chips used in AI processors to generate chatbot responses and realistic images.

Analysts say the firms’ boom is likely to continue as North American tech giants ramp up investment in AI data centres requiring their cutting-edge chips.

AI expansion has also pushed up prices and shipments of conventional NAND and DRAM memory chips to Samsung’s advantage, analysts say.

The company’s HBM business is also “driving a significantly positive impact on their foundry business as well”, MS Hwang, an analyst at investment firm Counterpoint, told AFP.

“In short, Samsung is leveraging its strong position in memory to aggressively capture share across most of its business units.” — AFP