Latest news with #Shell
Sinar Daily
2 hours ago
- Business
- Sinar Daily
Malaysia's leap in competitiveness, investments reflect strong investor confidence, economic resilience
SHAH ALAM – Malaysia's impressive 11-spot leap to 23rd in the 2025 World Competitiveness Ranking (WCR), coupled with Shell's commitment to invest over RM9 billion in the coming years, is widely seen as a strong affirmation of the country's growing attractiveness to investors, despite ongoing global economic challenges. Economists welcomed these developments as clear indicators that the Madani Government economic framework is beginning to bear fruit. They pointed to the government's focus on fiscal reform, long-term economic stability and inclusive growth as key factors behind this renewed investor confidence and improved global perception of Malaysia's economic direction. Economist and Putra Business School Business Administration Programme Director Associate Professor Dr Ahmed Razman Abdul Latiff said these indicators were highly encouraging, particularly given the current global uncertainties. 'I view these recent developments as highly encouraging, particularly given the challenging global economic environment Malaysia is currently navigating, including potential tariff hikes from the United States (US). 'Despite such external pressures, Malaysia's significant improvement in the 2025 WCR and Shell's RM9 billion investment signal that investor confidence remains robust. "This affirms Malaysia's standing as a preferred investment destination, bolstered by our political stability, strong growth potential and increasing competitiveness," he told Sinar Daily when contacted. Razman credited the government's fiscal reforms, especially subsidy rationalisation and deficit reduction efforts, for improving efficiency and laying the foundation for long-term sustainable growth. These measures, he clarified, help curb wastage and enable better resource allocation. 'The Madani government's commitment to sustainability, resilience and inclusivity is evident in its initiatives to reduce inequality, raise household incomes through better wages and manage the cost of living. 'When such efforts are effectively implemented and truly benefit the population, they help preserve social cohesion. This stability, in turn, enhances Malaysia's attractiveness to investors," he added. Razman also cited the importance of creating high-skilled jobs as a key strategy to address income inequality and job mismatches. He described that aligning individuals' skills with the right employment opportunities not only improves their livelihoods but also boosts domestic consumption and overall economic activity. However, he cautioned that public perception plays a critical role in the success of these reforms. To ensure citizens recognise the benefits, he stressed the need for clear and effective communication. On June 18, Anwar (right) confirmed Shell CEO Wael Sawan's (left) pledge to invest over RM9 billion in Malaysia within two to three years. Photo: Anwar's Facebook page Malaysia Airports Holdings Bhd (MAHB) Chairman and economist, Dr Nungsari Ahmad Radhi echoed similar sentiments, noting that Malaysia's rise in the global rankings was a sign that the Madani economic framework was producing results. 'Malaysia's recent rise in the 2025 WCR is a highly encouraging development, especially given today's uncertain global environment. "It signals that the Madani economic framework is beginning to deliver tangible results. 'Since the index assesses economic performance, government and business efficiency and infrastructure, our improved ranking reflects progress across all these areas," he said. Nungsari said that fiscal reform must remain a top national priority and emphasised the importance of public understanding of the rationale behind such reforms. Strengthening Malaysia's fiscal position, he added, inevitably involves making difficult decisions, whether through spending cuts, reallocations, or revenue increases. It is therefore crucial for the public to grasp why these measures are necessary. He cited the Fiscal Responsibility Act 2023 (FRA) and the ongoing subsidy rationalisation efforts as key components of these reforms. According to him, such initiatives are vital to preserving Malaysia's sovereign credit rating, which in turn helps to keep the country's borrowing costs manageable. 'In the context of the Madani administration, sustainability is fundamentally about fiscal sustainability. If we fail to protect our fiscal space, our ability to spend or borrow during a crisis, we risk undermining our resilience. 'Our companies must look toward larger markets, particularly across Asean. "At the same time, we must strengthen our workforce through upskilling and make it easier to do business. These efforts, collectively, will reduce income inequality and build a more inclusive economy," he added. On June 18, Anwar (right) confirmed Shell CEO Wael Sawan's (left) pledge to invest over RM9 billion in Malaysia within two to three years. Photo: Anwar's Facebook page Economist and Director of Williams Business Consultancy Sdn Bhd, Dr Geoffrey Williams saw Shell's RM9 billion investment as a clear indication of long-term confidence in Malaysia's economic environment. He described the move as a welcome development, noting Shell's decades-long relationship with the country. 'In many ways, such enduring partnerships speak more meaningfully to the strength of Malaysia's economic environment than short-term fluctuations in metrics like the WCR. 'From a macroeconomic standpoint, the Malaysian economy is performing well. Growth remains strong, inflation is stable and the financial system is sound. The country's fiscal position, particularly regarding debt and deficit levels, has stabilised," he said. However, Williams pointed out that despite Malaysia benefiting from decades of foreign direct investment, these investments have yet to significantly translate into the creation of high-skilled jobs or meaningful wage growth. He argued that the existing wage-setting mechanisms have failed to distribute the benefits of the country's development fairly. 'The system has not effectively channeled the gains from economic development into salaries, upward mobility, or reduced income area that clearly needs reform. 'While there is still considerable work to be done to achieve lasting improvement, the path forward is clearer with the proper implementation of the Medium-Term Fiscal Strategy (MTFS) and the Fiscal Responsibility Act (FRA). "Alongside these efforts, continued focus on reducing wastage, leakages, and corruption remains essential. In this context, subsidy rationalisation is a key tool and progress has already been made in areas like electricity and diesel subsidies, with RON95 fuel reforms expected in the near future," he said. Williams affirmed that the Madani framework is grounded in strong principles and holds the potential to bring real benefits to the public while promoting long-term economic development—provided it is implemented effectively. However, he pointed out that a major challenge lies in the way these benefits are identified and communicated. 'Both areas need considerable improvement to ensure the public can fully understand and feel the impact of the initiatives under the framework,' he said. On June 18, Prime Minister Datuk Seri Anwar Ibrahim revealed that Shell's Global Chief Executive Officer (CEO) Wael Sawan had pledged to invest over RM9 billion in Malaysia within two to three years. The announcement came after a courtesy call on the Prime Minister following his engagement at Sasana Kijang. Anwar described the investment as a commitment to creating high-skilled jobs and a reflection of Shell's long-standing trust in Malaysia's direction under the Madani government, which he said was built on stability, sustainability and long-term resilience. Malaysia also rose 11 places in the 2025 WCR, from 34th to 23rd—a rare and significant improvement. Malaysia University of Science and Technology (MUST) economics expert, Professor Emeritus Dr Barjoyai Bardai said the jump reflected a strong recovery, driven by prudent fiscal policy, targeted subsidies and growing investor trust. While the effects may not yet be fully felt by the public, he predicted they would translate into higher incomes and more job opportunities in the medium term.
Korea Herald
5 hours ago
- Automotive
- Korea Herald
HD Hyundai Oilbank, Shell to shore up lube base oil business
HD Hyundai said Friday that its joint venture with Shell will enter the high-performance, high-added-value lube base oil market, bolstering its lineup of premium products. HD Hyundai Shell Base Oil, a 60:40 joint venture between HD Hyundai Oilbank and Shell, will invest in expanding its Daesan plant in Seosan, South Chungcheong Province, with a goal to begin full-scale commercial production of Group III LBO in 2027. Lube base oil, or LBO, is the primary component for various types of lubricants such as engine oil and industrial lubricants. It is categorized into three groups based on manufacturing processes and quality traits. Due to its high viscosity index, low amount of sulfur, great oxidation stability, Group III lube base oil is considered an eco-friendly, high-performance product and is seeing a growth in its global demand. The Group III LBO produced by HD Hyundai Shell Base Oil will be supplied to a fast-growing lubricant market of high-performance cars, electric vehicles and immersion cooling systems used at data centers. HD Hyundai Shell Base Oil opened its plant in 2014 and started producing Group II LBO. It has continued to expand its global presence to Asia, Europe and North America and now supplies products to 50 countries. 'Based on the experiences that have satisfied the quality demands from various clients, we have decided to add another premium product lineup,' said an official at HD Hyundai Shell Base Oil. 'Through technological cooperation with Shell, we will do our best to begin commercial operation according to the scheduled plan.'
Yahoo
6 hours ago
- Business
- Yahoo
Why Big Oil Isn't Afraid of Peak Oil Demand
Big Oil firms expect global oil demand to stop growing at some point early next decade. But the decline will be very slow and gradual and will look more like a plateau than a downward spiral. The world's biggest international oil and gas companies have started to acknowledge that demand growth could slow or stop within a decade. But these firms keep pumping oil and gas more than they did earlier this decade as they expect that oil demand – regardless of a peak – isn't going the headline-grabbing surge in renewable energy capacity, solar and wind cannot replace fossil fuels in many industrial processes and production while demand for petrochemicals drives increased oil and gas consumption. The strategic shift of BP and Shell from early this decade to boost investments in renewables while scaling back oil production lasted only a couple of years. Europe's Big Oil found out firsthand that the renewables business isn't bringing the profits that the core oil and gas business is generating. Faced with the difficult task of rewarding shareholders with attractive yields and payouts and stopping the investor outflow from the industry, and with an energy crisis with soaring oil and gas prices, Shell and BP drastically scaled on their ambitions in renewables and shifted their focus on oil and gas again. Equinor of Norway, where electric vehicles hold an enormous market share and power comes from hydro and wind, also reduced investments in renewables, in order to boost returns for shareholders and adapt to an uneven energy transition. The Norwegian major, which dropped 'oil' from its name and rebranded to Equinor seven years ago with more renewables business in mind, acknowledged that market conditions in the clean energy sector have changed and the energy transition is going forward with an uncertain and uneven pace. At the same time, Equinor, which now produces a large part of the gas going to Europe via pipelines, expects to keep a high level of oil and gas production in Norway 'all the way to 2035.' 'What we are working on is to make sure that we are able to squeeze every molecule out of the Norwegian continental shelf,' chief executive Anders Opedal told the Financial Times. 'So we have to drill around 100 wells a year for the next decade.' Low returns from higher-cost renewables and the uncertain pace of the transition amid the push for security of supply have had European majors scale back plans and investments in renewables and look to grow low-cost lower-carbon oil and gas production. In the U.S., ExxonMobil and Chevron didn't have to pivot as they weren't deep into renewable energy even before the 2022-2023 energy crisis and soaring the International Energy Agency (IEA), which has just doubled down on its forecast of peak oil demand by the end of this decade, Big Oil companies don't see any peak by 2030. Some have put a peak at some point in the 2030s, but all say that oil and gas will remain essential for global economic growth and development in 2050. 'Under any credible scenario, oil and natural gas remain essential,' ExxonMobil says in its latest Global Outlook to 2050. The U.S. supermajor also believes that 'Lower-carbon technology needs policy support to grow rapidly but ultimately must be supported by market forces.' In 2050, more than 50% of global energy demand will still be met by oil and natural gas, Exxon reckons. 'The world will be different in 2050, but the need to provide the reliable, affordable energy that drives economic prosperity and better living standards, while reducing greenhouse gas emissions, will remain just as critical as it is today,' it says. Shell's CEO Wael Sawan has said that reducing global oil and gas production would be 'dangerous and irresponsible' as the world still needs those hydrocarbons. In its 2025 Energy Security Scenarios, Shell sees oil demand likely to grow by 3?5 million barrels per day (bpd) into the early 2030s, with a long but slow decline after that as petroleum remains an affordable and convenient fuel, particularly in transport, and an important feedstock for the petrochemical industry. In all three scenarios analyzed by Shell, upstream investment of around $600 billion a year 'will be required for decades to come as the rate of depletion of oil and gas fields is two to three times the potential future annual declines in demand.' In the most-discussed strategy reset this year, BP slashed spending on clean energy and boosted upstream investments. The UK-based supermajor will aim for 10 new major oil and gas projects to start up by the end of 2027, and a further 8–10 projects by the end of 2030. Production is also expected to grow: to 2.3–2.5 million barrels of oil equivalent per day (boed) in 2030, with capacity to increase to 2035. That's a stark departure from BP's previous strategy to lower oil and gas output by 2030. 'We will grow upstream investment and production to allow us to produce high margin energy for years to come,' CEO Murray Auchincloss said. Whenever peak oil demand occurs, it will not be a steep downhill in global consumption—it will be a long plateau with a soft decline afterward, Big Oil says. A steep drop could only occur if there is an aggressive political push toward net-zero emissions by 2050, Shell's head of scenario planning, Laszlo Varro, told FT. But such a push would be 'significantly outside society's current comfort zone.' By Tsvetana Paraskova for More Top Reads From this article on Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Business Recorder
8 hours ago
- Business
- Business Recorder
London stocks fall as BoE keeps rates on hold
LONDON: London stocks dropped to an over two-week low on Thursday as the Bank of England left borrowing costs unchanged, while the raging conflict in the Middle East kept risk-taking in check. The benchmark FTSE 100 closed down 0.6%, with a stronger pound adding additional pressure on the index. Trading was thin as US markets are shut for a public holiday. Israel and Iran's aerial attacks continued as US President Donald Trump kept the world guessing about whether the US would join Israel in air strikes on Tehran. Markets were hopeful of talks between the US and Iran, and between the European Union and Iran on Friday, leading to a potential de-escalation in tensions. The conflict has impacted oil prices, which were higher on the day, boosting the energy sector by 1.3%. Gains in heavyweight Shell and BP limited declines on the commodity-heavy FTSE 100. Personal goods and travel and leisure stocks fell 4% and 2.3%, respectively, that led broader declines. Industrial metal miners lost 2.5%, as copper prices hit a near one-week low. The Bank of England held interest rates at 4.25% as expected on Thursday but said it was focused on risks from a weaker labour market and higher energy prices as conflict in the Middle East escalates. 'The big thing for UK equities ... is to see whether earnings can start picking up or not. It's something we haven't seen a lot lately and that is what really is missing,' Lilian Chovin, head of asset allocation at the British private bank Coutts. 'The slight weakness in the labour market is something you're starting to see. It's an emerging trend of loosening employment markets across the world, which should pave the way for rate cuts, maybe in the back end of this year,' Chovin added. This follows a meeting of the US Federal Reserve, where Chair Jerome Powell said he expected 'meaningful' inflation ahead, due to Trump's planned tariffs, but policymakers still kept two rate cuts in 2025 on the table, offering little clarity on the overall stance. Persimmon and United Utilities were among the worst performers of the FTSE 100, down 3.4% and 2.3%, respectively, as they traded without entitlement to their latest dividend payouts.
Daily Mail
13 hours ago
- Business
- Daily Mail
War in Middle East 'to push oil price to $100': Experts sound alarm as Israel and Iran trade blows
Oil soared towards $80 a barrel yesterday as industry experts warned conflict in the Middle East could send it above $100. Brent – the global benchmark – reached a five-month high above $78 a barrel as Israel and Iran exchanged missile attacks. And if passage through the Strait of Hormuz – a shipping route in the Persian Gulf for 20 per cent of the world's oil – is cut off, the price could rocket higher. The Bank of England sounded the alarm yesterday over surging oil prices, which threaten to drive inflation higher, in its interest rates decision. Rate-setters noted that prices had risen 'owing to an escalation of the conflict in the Middle East'. And the Bank's Monetary Policy Committee said it 'would remain vigilant about these developments and their potential impact on the UK economy'. It presents a headache for motorists as rising oil prices will feed through to the cost of fuel. A $2 increase usually adds 1p to the price of a litre, according to the AA. But average rises are still less than a penny for petrol and diesel, the motoring association said. 'A spike in the oil price looks daunting but it is taking its time to filter through to drivers,' AA spokesman Luke Bosdet said. Analysts at Goldman Sachs predict Brent could reach $90 a barrel and Barclays claimed, in the 'worst-case scenario' of a wider war, it could pass $100. Shares in BP and Shell rose 1.7 per cent and 1.2 per cent respectively on hopes that higher oil prices will boost profits. Former BP chief executive Lord Browne said the trajectory for prices 'depends [on] what happens in the Strait of Hormuz, but if we really do shut down global supply then the price will go up a lot'. 'A lot of the price is controlled by fear, fear that Iran will do something different... I think there'll be a lot of volatility short-term,' he told LBC. And Shell chief executive Wael Sawan said: 'The escalation in tensions has added to what has already been significant uncertainty in the region. 'We're being very careful with, for example, our shipping in the region, just to make sure that we do not take any unnecessary risks.' At an industry conference in Tokyo, he said 'the Strait of Hormuz is the artery through which the world's energy flows and if that artery is blocked, for whatever reason, it'll have a huge impact on global trade.' Sawan said that the rise in oil and gas prices has been 'moderate' as investors wait to see whether physical infrastructure might be damaged. The company is monitoring the possibility of US military action and has plans in place should things deteriorate, he said. Uncertainty over whether Donald Trump will intervene on behalf of Israel has raged after the US President told reporters this week: 'I may do it. I may not do it... nobody knows what I'm going to do.'
