Energy & Technology

KUALA LUMPUR: MASwings Sdn Bhd (MASwings), the airline that Sarawak Premier Abang Johari Abang Openg recently acquired, is expected to be in operation next year under a new name, pending several technical aspects of the acquisition, which is said to conclude by the end of this year. According to Abang Johari, the discussion is expected to conclude by August, adding that companies like Malaysia Aviation Group (MAG) and Khazanah National are already showing interest in purchasing shares of the company. He also mentioned that the acquisition is hoped to increase the rate of air connectivity to nearby regions like China, Singapore, Hong Kong, Indonesia and a handful of other Southeast Asian countries. In doing so, he said, it will allow Sarawak to have better trade and investment opportunities and boost the state’s tourism industry. He also mentioned that two state ministries, namely the Ministry of Tourism, Creative Industry and Performing Arts and the Ministry of Transport had conducted due diligence on the matter. “After having its airline, Sarawak is poised to become an aviation hub that can provide services like maintenance, repair and overhaul (MHO),” said Abang Johari during the memorandum of understanding (MoU) signing ceremony for the management of rural air services by Sarawak via the acquisition of shares in MASwings. Following some delays in the acquisition process earlier in March, MAG Group managing director Datuk Izham Ismail said it was due to the effort to ensure that both the Sarawak government and MASwings will benefit from the deal, which will also benefit the customers. “(While) MAG is steadfast in supporting the Sarawak state government in fulfilling the agreement we signed in 2023, we all should acknowledge that a transaction of such scale is not easy,” Izham said. “It encompasses valuation, due diligence, and agreement from service providers. Many doors need to be opened and closed, and most importantly, the utmost governance and integrity of both parties are not shortchanged,” he added. Most agreements of this size would typically take a year or more, but instead, it was an accelerated merger and acquisition, which is unprecedented, he said.

BERLIN (Reuters):  Tesla is undergoing significant workforce reductions, cutting over 10 per cent of its global employees amid declining sales and increased competition in the electric vehicle market, according to an internal memo seen by Reuters on Monday. Two key departures, battery development chief Drew Baglino and vice president for public policy Rohan Patel, also raised investor worries. Baglino, a long-time Tesla veteran, was among the core leadership team listed on the company’s investor relations website. CEO Elon Musk justified the layoffs as a routine reorganization necessary for future growth, stating, “About every 5 years, we need to reorganize and streamline the company for the next phase of growth.” The company’s headcount had surged from around 100,000 in late 2021 to over 140,000 by late 2023, as disclosed in filings with US regulators, despite Musk’s previous job cuts in 2022 due to economic concerns. Scott Acheychek of Rex Shares viewed the headcount reductions as strategic, but Michael Ashley Schulman from Running Point Capital Advisors highlighted the departures of senior executives as a negative signal for Tesla’s growth prospects. Tesla’s shares fell by 5 per cent to $162.42 following the news, with stocks of other electric vehicle manufacturers like Rivian Automotive, Lucid Group, and VinFast Auto also experiencing declines ranging from 2.2 per cent to 10.7 per cent. In his memo to staff, Musk emphasized the importance of cost reduction and productivity enhancements to prepare for the company’s next phase of growth, which led to the decision to reduce headcount by more than 10 per cent globally. Bloomberg reported that cuts of up to 20 per cent could occur in certain divisions. An email seen by Reuters informed at least three US employees of their immediate dismissal, and Tesla did not initially respond to requests for comment. These job cuts followed a Reuters report on April 5 that Tesla had scrapped plans for a $25,000 mass-market car, the Model 2, which investors had anticipated to drive broader growth. Musk disputed the report without specifics and has not commented further on the Model 2, leaving uncertainty among investors. Reuters also disclosed Tesla’s shift towards focusing on self-driving robotaxis on a small-car platform, with Musk announcing a “Tesla Robotaxi unveil on 8/8” without further details. Tesla’s struggles are part of a broader trend in the EV industry, with energy major BP also downsizing its EV charging workforce due to slower-than-expected demand growth. The labour union at Tesla’s German plant criticized the lack of consultation regarding the job cuts, stressing the legal obligation for management to engage with them. Analysts suggest Tesla’s cost pressures stem from investments in new models and AI, with the company reporting a drop in global vehicle deliveries for the first time in nearly four years. Rivals in China are aggressively rolling out cheaper models, impacting Tesla’s market position. Despite these challenges, Tesla is expanding into India’s auto market this year, planning to produce cars in Germany for export to India while establishing showrooms and service hubs in major Indian cities. In the fourth quarter, Tesla recorded its lowest gross profit margin in over four years. The recent job cuts underscore broader challenges facing the company as it navigates a shifting EV landscape.

KUALA LUMPUR: Microsoft chief executive officer and chairman Satya Nadella will visit Kuala Lumpur on May 2 as part of his Southeast Asian plan. He will speak at the Microsoft Build: AI Day Kuala Lumpur, which is scheduled for Nexus, Connexion Conference & Event Centre in Bangsar South. Before arriving in Kuala Lumpur, Satya will present his talk at Jakarta Convention Center Indonesia on April 30  followed by Bangkok on May 1 at Queen Sirikit National Convention Center (QSNCC) Plenary Hall. This visit is part of the regional Microsoft Build: AI Day Tour, during which Satya will deliver a keynote speech focusing on the new era of AI and the opportunities it presents for regional organisations to shape their future. During his previous visit to Thailand in 2016, he announced Microsoft’s commitment to supporting and enhancing the potential of Thai developers at the Microsoft Thailand Developer Day event. In Bangkok, Satya is also scheduled to meet with Prime Minister Srettha Thavisin, whom he had previously met during Srettha’s visit to the United States (US) for the Asia-Pacific Economic Cooperation (APEC) Summit in November. Additionally, a new meeting date has been arranged for Satya to meet prime minister Datuk Seri Anwar Ibrahim, according to the Minister of Investment Trade and Investment Tengku Zafrul. Apart from the highly anticipated CEO’s keynote address, the Microsoft Build: AI Day event will include panel discussions, tech demos, and hackathons, focusing on technologies such as Azure OpenAI Services and Copilot. Furthermore, attendees will be able to participate in a Connection Hub, where they can engage with experts, industry leaders, and fellow developers to discuss technical questions and potential collaborations. Registration for the event is available on Microsoft’s website, with limited seating.