Latest news with #OCBC
New Straits Times
2 days ago
- Business
- New Straits Times
Risk aversion grips Asian stocks, currencies; Philippines cuts rates as expected
SINGAPORE/HONG KONG: Asian stock markets and currencies fell on Thursday on broader risk-off sentiment as cautious investors weighed the possibility of US involvement in the Israel-Iran conflict. Meanwhile, the Philippine central bank cut its policy rate by 25 basis points as expected. Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona stated that while an accommodative policy was needed, there were risks associated with geopolitical tensions and external policy uncertainty that had to be monitored. The peso was largely unchanged after the decision, still trading down 0.6 per cent near a two-month low. Iran and Israel traded further air attacks as US President Donald Trump kept markets guessing on whether Washington would join Israel's strikes on Iranian nuclear facilities. The Israeli shekel weakened 0.3 per cent. The Indonesian rupiah fell 0.6 per cent to a near three-month low and the Indian rupee dipped 0.3 per cent. The South Korean won fell as much as 1 per cent and the Vietnamese dong touched a record low. "Geopolitical developments remain fluid, and caution is warranted as we head into the weekend," said Christopher Wong, currency strategist at OCBC. With oil prices at risk of going higher as a result, net-oil importing currencies such as the peso, the rupee, the won and the Thai baht may be affected more than other peers, he added. The Taiwan dollar weakened 0.3 per cent ahead of its central bank's rate decision, in which it is likely to maintain its policy rate. The Thai baht fell as much as 0.9 per cent to a one-month low as political uncertainty weighed on already fragile sentiment. Thai Prime Minister Paetongtarn Shinawatra's government hangs by a thread, with coalition partners reconsidering their support after a major player's exit threatened to bring down the administration. In the near term, political uncertainty may weaken the baht further, as foreign investors lose confidence and sell Thai assets especially if the US dollar strengthens and gold prices continue to fall, said Poon Panichpibool, markets strategist at Krung Thai Bank. Bangkok equities dropped as much as 2.4 per cent to their lowest since April 9. Other stock markets also tumbled, with equities in Taiwan slipping 1.6 per cent and those in Singapore down 0.6 per cent. Indonesia stocks dropped 2.4 per cent to their lowest since May 14, a day after the country's central bank paused its easing cycle just hours before the US Federal Reserve held rates steady as expected.
Business Times
2 days ago
- Business
- Business Times
GE proposal: OCBC minority shareholders' perspective
I represent a group of OCBC shareholders. We refer to the article 'GEH, OCBC's proposals a victory of sorts for minorities who have held out, endured suspension' (BT, Jun 9) and were surprised by Ben Paul's suggestion that OCBC will move to meet Great Eastern (GE)'s minority shareholders' demands if the insurer remains listed. While Ben Paul has declared himself as a shareholder of both OCBC and GE, he seems to have ignored the need for the bank to protect the interests of its shareholders. We do not want OCBC to overpay for GE. Last year's offer at S$25.60 was already a 37 per cent premium over GE's last traded price of S$18.70. OCBC was also not buying a controlling stake in GE as it had already owned over 88 per cent in May 2024. The independent directors of GE, on the advice of an independent financial adviser (IFA), had advised minority shareholders to accept OCBC's offer, after all the factors have been considered. After the general offer last year, OCBC pulled in an additional 5 per cent or so of GE shares. This is a prudent move, and from our point of view, a smart one, made in the interests of the over 125,000 of OCBC shareholders. At OCBC's AGM this year, we applauded OCBC chairman Andrew Lee for what he said: 'We are not a small-time business where we can raise (the offer price) as we like. We have governance, we have process…The Board has exercised its fiduciary duty in keeping strictly to the process. That is the balance and prudence that we as directors of OCBC have practised.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up As OCBC shareholders, we are behind the bank's strategy to strengthen itself as an integrated financial services group to better synergise its businesses. As opposed to a pure banking play, an integrated financial services model will unlock more value for us over the long term. The idea of distributing GE shares to us should therefore not be entertained as it would be a senseless hollowing out of a good bank. OCBC's current exit offer for GE is clearly not its own wish. It was made at the request of GE, to help it get out of a limbo marked by months of trading suspension and repeated extensions granted by the bourse operator to find palatable solutions. It is a conditional exit offer which is different from last year's unconditional general offer. As a parent company of GE, OCBC is likely expected by regulators to help GE comply with the listing rules. The IFA to the deal, EY, has said the current offer is 'fair and reasonable', while some have continued to point out that the offer at S$30.15 per share is lower than the insurer's embedded value of S$38.08 per share as at end-2024. What has been consistently missing in the news reports is the simple fact that the embedded value depends to a significant extent on OCBC being a distributor of GE's products. A look through GE's financials will show that bancassurance accounted for more than a quarter of the insurer's total weighted new sales in FY2024. In fact, it is in OCBC shareholders' interests to start charging fair value for the exclusive use of the bank to sell the insurer's products. Make no mistake that if this nuclear option were taken, GE's embedded value would be far lower than that of S$38.08 per share. But this is an option that the bank has steered clear of then – and now. For the BT writer, it would probably make no consequential difference if GE's embedded value falls. Such would not be the case, however, for GE shareholders who do not also own OCBC shares. The writer should acknowledge that for him to push one narrative may benefit him but hurt other GE shareholders. Given the fundamentals of the situation, there really is no incentive for OCBC to up its offer last year. There is also little motivation for OCBC to make another general offer in the foreseeable future if the GE delisting fails on Jul 8. It goes without saying that the interests of the 125,000 OCBC shareholders have to be represented by OCBC, and we believe the bank has done so. More importantly, the 800 or so GE shareholders cannot expect OCBC to consider their interests alone. That is the responsibility of GE and its board. Jonathan Kuek
Yahoo
3 days ago
- Business
- Yahoo
The smallest country on the Southeast Asia 500 generated the most revenue
Fortune's Southeast Asia 500, which measures the largest companies in the region by revenue, covers seven economies: Indonesia, Thailand, Malaysia, Cambodia, Vietnam, the Philippines, and Singapore. Indonesia, Southeast Asia's largest economy in terms of both GDP and population, has the biggest footprint on the list, covering more than a fifth of the total ranking with 109 companies. Thailand, the region's second-largest economy, sits in second place with 100. Singapore, the region's wealthiest economy by GDP per capita, sits in the middle of the pack, with 81 companies on the Southeast Asia 500. Measured by revenue, however, the tiny city-state of six million ends up far ahead of its ASEAN peers. Total revenue from Singapore-based Southeast Asia 500 companies reached $637 billion, or about a third of the list's total revenue of $1.8 trillion. That's twice as much of Thailand, which sits in second place with revenue of $352 billion. Singapore's 'Big Three' banks—DBS, OCBC, and UOB—are perhaps the city-state's most prominent companies. The three banks are the most profitable companies on the Southeast Asia 500. Yet they're not actually the largest Singaporean-based companies on the list. No. 1 on the list is Trafigura Group, a commodities group that deals with metals, minerals, oil, and gas. Trafigura's revenue for 2024 reached $243.2 billion, more than any other company on the list and almost four times more than the next biggest company by revenue in Singapore. Wilmar and Olam, No. 4 and No. 5, are both in the agribusiness space. These two companies are deeply embedded in the supply chain for consumer goods like butter, nuts, grains, and cooking oils. Revenues for Wilmar and Olam reached $67.4 billion and $42 billion respectively in 2024. Singapore's central position as a hub makes it a prime location for companies hoping to do business across the region, particularly in neighboring Malaysia and Indonesia. Singapore's status as a financial center also helps to inflate its revenue share. Trafigura and Flex (No. 10) are both legally domiciled in Singapore, which makes them Singaporean companies according to Fortune's methodology–even though both companies have most of their operations, and even their operational headquarters, in other countries. This story was originally featured on Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Business Times
5 days ago
- Business
- Business Times
Vietnam joins Brics, Asean deepens links with Global South bloc amid shifting trade winds
[HO CHI MINH CITY] Vietnam has become the fourth Asean country to gain formal partner-country status within Brics following Malaysia, Indonesia, which is a full member and Thailand. Analysts say this move reflects Hanoi's strategy to hedge against the rising trade risks from the US and broaden investments and geopolitical footing. The latest development also underscores the region's priority in broadening economic relationships to gain deeper trade, investments, people-to-people, and tourism relationships, said Lavanya Venkateswaran, senior Asean economist at OCBC. 'Some of the lower-hanging fruit include bolstering tourism activities amongst Brics member economies through visa incentives as well as encouraging cross-country education opportunities,' she noted. Over the weekend, spokesperson of Vietnam's Ministry of Foreign Affairs Pham Thu Hang told reporters that Vietnam's entry as partner country into the 11-member Brics underscored the country's desire to enhance the voice and role of developing countries. This followed Brazil's announcement last Friday (Jun 13), in its role as rotating Brics chair, on Vietnam's formal admission into the bloc, which comprises Brazil, Russia, India, China and South Africa - its five original members. The bloc aims to tighten cooperation among emerging economies and amplify the influence of the Global South. Brazil's government said Vietnam stands out as a relevant actor in Asia given 'its efforts in favor of South-South cooperation and sustainable development', which 'reinforce its convergence with the interests of the group'. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up It took about a year from the time Vietnam first expressed interest in collaborating with Brics to its formal confirmation as the bloc's tenth partner country, amid the group's ongoing membership expansion. The prolonged process of establishing the formal relationship occurred as Vietnam faced increasing risks from US President Donald Trump's tariff blitz, including a significant reciprocal levy of 46 per cent imposed in April. 'Being formally associated with Brics, even as a partner country, can disproportionately increase Vietnam's risk exposure, relative to any potential benefits of joining Brics,' Le Truong Giang, an analyst at London-headquartered consultancy Control Risks told The Business Times earlier this year. The potential gains from the partnership with the bloc, however, he added, include diversifying export markets to reduce reliance on the US, which is Vietnam's largest goods buyer. The South-east Asian nation could also expect to enhance investments for industrialisation and infrastructure development, as well as strengthen its geopolitical leverage in its relationships with major powers. OCBC's Venkateswaran noted that Vietnam's export share to Brics nations – excluding China – remains low, with India at 2.2 per cent, South Africa at 0.2 per cent, and Russia at 0.6 per cent, indicating significant room for growth. 'Vietnam's broader agenda to diversify trading partners is not mutually exclusive from its ongoing negotiations with the US,' she noted. 'Outcomes on discussions regarding transshipments and point of origin issues will be crucial to Vietnam maintaining the US as a key export partner.' Hanoi is actively seeking a compromise with Washington before a 90-day pause on the tariff plans ends next month. As the two concluded the third round of trade discussions on Jun 12, Vietnam said on Sunday that it had made progress and was 'narrowing the gap' on all fronts, while also seeking online meetings with Washington in the coming days to continue discussions on remaining issues. US Secretary of Commerce Howard Lutnick said earlier this month that there is still room for talks if Vietnam curtails imports from China and reduces its trade surplus with the US, which amounted to US$123 billion last year – the third largest among US trade partners after China and Mexico.
New Straits Times
5 days ago
- Business
- New Straits Times
OCBC extends RM351mil financing for projects in Johor-Singapore SEZ
KUALA LUMPUR: OCBC Bank (Malaysia) Bhd has approved RM351 million in financing for three major real estate developments within the Johor-Singapore Special Economic Zone (JS-SEZ). The funding supports a joint venture between property developers See Hong Chen Group and EXSIM Group for the acquisition of freehold land in Johor Bahru. In a statement today, the bank said the mixed-use development has a projected gross development value of RM1.8 billion. OCBC is also financing See Hong Chen Group's purchase of additional freehold land parcels in Bandar Johor Bahru. "The JS-SEZ represents a significant opportunity for long-term economic growth," said OCBC managing director and wholesale banking head Jeffrey Teoh. "We're committed to going beyond traditional lending by delivering integrated financial solutions through our One Group capabilities," he added. The JS-SEZ, a flagship cross-border economic initiative, is expected to catalyse investment flows between Johor and Singapore, with connectivity boosted by the Rapid Transit System Link, which is slated for completion in 2026. See Hong Chen Group managing director See Cherng Jye said the developments aligned with the group's strategy to deliver impactful assets in growth zones. "This collaboration marks a significant milestone for us as we expand our footprint into Johor," said EXSIM managing director Lim Aik Hoe, adding that the projects are designed to meet evolving market and community needs. OCBC is the second-largest banking group by assets in Southeast Asia and is part of a wider financial ecosystem that includes Great Eastern, Bank of Singapore and asset manager Lion Global Investors.
