MALAYSIA
Jobless rate falls to 3.5%
The unemployment rate fell to 3.5 percent in February, as growth in all sectors of the economy led to increased labor demand, the Department of Statistics said. Labor force participation in the Southeast Asian nation climbed to 69.9 percent, the highest in records going back to 2010, causing the overall unemployment rate to drop to the lowest since February 2020, the data show. The labor market’s recovery from the COVID-19 pandemic is expected to continue in line with the broad economy, which is forecast to grow between 4 to 5 percent this year.
TURKEY
Balance stays in red
The country’s current-account balance stayed deep in the red in February, a key vulnerability for the economy as President Recep Tayyip Erdogan’s government tries to keep the lira and inflation in check ahead of elections next month. The shortfall in the broadest measure of trade in goods and services was US$8.78 billion, the central bank said in a report yesterday, more than forecast by economists. That compares with a record deficit in January that was revised to US$10 billion and a gap of US$5.3 billion in February last year. The two main drivers of the deficit have been purchases of energy and gold, especially as households increasingly turned to bullion to shield themselves against inflation that climbed over 85 percent last year.
INDIA
New Delhi ends UK talks
The government has “disengaged” from trade talks with Britain after accusing it of failing to condemn the Sikh extremist group that attacked the Indian High Commission in London last month, The Times reported yesterday, citing British government sources. The incident occurred on March 19, when protesters with “Khalistan” banners staged a demonstration at the High Commission and took down an Indian flag from the building’s first-floor balcony to denounce recent police action in Punjab. “Indians don’t want to talk about trade until they get a very public demonstration of condemnation of Khalistan extremism in the UK,” a Whitehall source told The Times.
INVESTMENT
Berkshire selling yen bonds
Warren Buffett’s Berkshire Hathaway Inc has started sounding out investors about the sale of yen bonds, having already established itself in recent years as one of the biggest foreign issuers of debt in the Japanese currency. Early guidance for pricing of the three-year portion of the debt is about 70 basis points over mid-swaps, people familiar with the matter said. Multiple tranches are up for sale, with early guidance for the 30-year maturity at roughly 125 basis points, the people said. The deal, if it proceeds, might price on Friday.
ELECTRONICS
Huawei mulls Riyadh HQ
Huawei Technologies Co (華為) is looking to make Riyadh its headquarters for the Middle East amid a push by the Saudi Arabian government to position itself as a regional business hub and growing diplomatic and business ties with China, people familiar with the matter said. The Chinese company, which already has offices in the Saudi capital and other cities across the Middle East, is in talks with Riyadh authorities to upgrade its presence in the country, the people said. The company has headquarters for the region in Dubai and Bahrain.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
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