Latest news with #US
New Straits Times
23 minutes ago
- Business
- New Straits Times
SST expansion sends ripple effects across key sectors
KUALA LUMPUR: The expanded Sales and Service Tax (SST), projected to generate RM10 billion in annual government revenue, is set to create ripple effects across industries, according to RHB Investment Bank Bhd. The firm said while essential goods and services remain exempt, the broader tax net is likely to create both opportunities and challenges for key sectors such as plantations, consumer goods, property and real estate investment trusts (Reits). "On balance, the SST expansion appears to be a carefully calibrated move. It shores up public finances with limited impact on the average consumer, but the sectoral implications could be material in certain pockets of the economy," it said in a note. Among the sectors expected to face headwinds is the glove manufacturing industry, which continues to grapple with tight margins amid an oversupplied post-pandemic market. "The expanded SST will increase glove production costs by approximately 25–30 US cents per 1,000 pieces. This puts further strain on producers at a time when competition remains intense, and cost pass-through remains challenging," it said. A temporary relief has been introduced via a grace period until Dec 31, during which the Customs Department will withhold enforcement of the new tax on latex imports. The plantation sector also faces pressure, particularly among downstream players, as palm kernel oil (PKO), a key processed output, will be subject to a five per cent SST. While crude palm oil and fresh fruit bunches (FFB) are exempt as agricultural produce, PKO is categorised as a manufactured product and thus taxable. RHB Investment said this could affect companies such as Sime Darby Plantation Bhd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd, although the precise earnings impact remains unclear due to limited disclosure on internal versus external sourcing of PKO. Meanwhile, Reits are expected to absorb the new eight per cent SST on leasing and rental income with manageable short-term impact, as landlords are likely to pass on the tax to tenants. "However, upon the next lease renewals, upside to rental reversions may be limited, as landlords may prioritise tenant retention and maintain positive business relationships," the firm said. In view of this, the research house said it prefers industrial Reits, which are typically backed by long-term master leases with multinational corporations. In the consumer sector, the impact is projected to be manageable given that exemptions cover daily essentials. Retailers with strong bargaining power may be able to offset the effects through rental negotiations. The expanded SST will also apply to inter-company leases, previously tax-exempt, potentially affecting conglomerates with extensive asset portfolios. "This change could impact how groups allocate resources across subsidiaries, especially those with large asset portfolios under lease-based structures," it said. Despite uneven impacts across sectors, the firm remains optimistic about the broader economic outlook. It noted that the additional RM10 billion in expected revenue can serve as an effective pump-primer to stabilise and drive the domestic economy. It said the SST expansion also signals the government's ongoing commitment to steady public finance reform, amid global trade frictions and geopolitical volatility. "It's a good time to gradually accumulate quality names, particularly those with pricing power and minimal tax exposure," it added, recommending a cautious but selective investment stance focused on domestic-centric stocks.
Fintech News ME
31 minutes ago
- Business
- Fintech News ME
BridgeWise Launches SignalWise to Deliver AI-Powered Investment Alerts
BridgeWise, an AI-driven investment intelligence platform, has introduced SignalWise, a new personalised alerts and insights system aimed at digital trading platforms and financial advisors. The tool is designed to support more informed decision-making by providing timely, relevant market intelligence tailored to individual investor behaviors and portfolios. Unlike traditional alert systems, SignalWise combines real-time event detection with AI-powered predictive analysis. It offers a layer of contextual insight, drawing on historical data and statistical analyses to help users interpret market activity across asset classes such as equities, ETFs, mutual funds, forex, crypto indices, and commodities. The system delivers insights in multiple languages and aligns notifications with user interests and activity levels. Ayush Khatri, Regional Head for the Middle East, North Africa, and Turkey (MENAT) at BridgeWise, commented, 'In today's climate of geopolitical uncertainty, guesswork has no place in investing. Confident investment decisions require clear data-driven intelligence that builds trust. SignalWise delivers an AI-empowered investment experience that transforms real-time market data into intelligent, contextual alerts, equipping investors to navigate volatility with precision and act decisively across multiple asset classes.' With its regional headquarters in the Dubai International Financial Centre (DIFC), BridgeWise has strengthened its presence in the MENA region, supported by a strategic investment from Emirates NBD. The company is now introducing technologies such as SignalWise and its AI-based investment chat and analytics platform to the UAE's growing financial services sector. SignalWise allows trading platforms and advisors to engage more effectively with investors by delivering customized notifications via email, SMS, push messages, or in-platform tools. This approach has reportedly led to increased user engagement, including an average click-through rate of around 15% on alerts, a revenue increase of approximately US$3 per notification, and higher client deposit activity attributed to the alert system. BridgeWise intends to expand SignalWise's functionality in the coming months, including integrating the tool with Bridget, its AI-powered investment chat assistant, which offers regulatory-compliant investment recommendations.
Wall Street Journal
35 minutes ago
- Business
- Wall Street Journal
China Flexes Chokehold on Rare-Earth Magnets as Exports Plunge in May
China's exports of rare-earth magnets plummeted after it imposed controls on their overseas sale, emphasizing Beijing's dominance of a critical input into electric vehicles and jet fighters that has taken center stage in tensions with the U.S. Total export volumes of rare-earth magnets from China fell 74% in May from a year earlier, according to a Wall Street Journal analysis of Chinese customs data. That was the biggest percentage decline on record dating back to at least 2012. Exports had fallen 45% in April in year-over-year terms. The 1.2 million kilograms of rare-earth magnets exported in May marked the lowest level since February 2020, during the Covid pandemic.
NHK
an hour ago
- Business
- NHK
Swiss National Bank cuts interest rate to zero as inflation slows
Switzerland's central bank has cut its interest rate to zero, a move that reflects a steady easing of inflationary pressure in the country. The Swiss National Bank said in a statement on Thursday that its policy rate will be lowered from 0.25 percent after inflation dipped to minus 0.1 percent in May. It's the bank's sixth consecutive cut since March 2024. The rate is now at the lowest since September 2022, when the bank ended a negative rate policy. The central bank added in the statement that the outlook for the global economy faces high uncertainty. It said developments abroad represent the main risk for the Swiss economy. The additional import tariffs imposed by the US this year triggered selling of the dollar and buying of Swiss francs as a safe haven asset. This has further lowered the cost of Switzerland's imports.
The Sun
an hour ago
- Business
- The Sun
Australian trial says tech for social media teen ban can work
SYDNEY: Australia's world-leading ban on under-16s joining social media sites cleared a big hurdle Friday as a trial found digital age checks can work 'robustly and effectively'. Sites such as Facebook, Instagram, Tiktok and X could face fines of up to Aus$50 million (US$32 million) for failing to comply with the legislation, which was passed in November. They have described the law -- which is due to come into effect by the end of this year -- as vague, rushed and 'problematic'. There has been widespread concern over children's use of online platforms as evidence shows that social media can have negative effects on children's mental and physical health. Digital age verification systems -- which would be critical to the ban -- can work, said the interim findings of an independent Age Assurance Technology Trial, conducted for the government. 'These preliminary findings indicate that age assurance can be done in Australia privately, robustly and effectively,' it said. There are 'no significant technological barriers' to deploying age checking systems in Australia, said the trial's project director, Tony Allen. 'These solutions are technically feasible, can be integrated flexibly into existing services and can support the safety and rights of children online,' he said in a statement. In a separate interview with Australia's Nine Network, Allen said preventing children circumventing age verification tools was a 'big challenge', however. 'I don't think anything is completely foolproof,' he said. There are a 'plethora' of approaches to age verification but no single solution to suit all cases, said the trial report, in which 53 organisations took part. Australia's legislation is being closely monitored by other countries, with many weighing whether to implement similar bans. Greece spearheaded a proposal this month for the European Union to limit children's use of online platforms by setting an age of digital adulthood -- barring children from social media without parental consent.
