News

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has appointed Datuk Abdul Rahman Ahmad as president and group chief executive starting from July 1, 2024. The government-linked investment company in a statement expressed its anticipation of Abdul Rahman’s return, emphasising his role in maintaining continuity and driving the execution of PNB’s recently developed Strategic Plan. Additionally, his appointment aims to further PNB’s mission of enhancing the financial well-being of Malaysians across generations. Abdul Rahman previously held the position of president and group chief executive of PNB from 2016 to 2019. Currently, he serves as the group CEO of CIMB Group Holdings Bhd, a role he has held since 2020. The announcement confirms The Edge Malaysia Weekly report about Abdul Rahman’s return to PNB, which manages approximately RM300 billion in assets, after being convinced by chairman Raja Tan Sri Arshad Raja Tun Uda. Abdul Rahman and Raja Arshad collaborated in 2009 to found and lead the state-controlled private equity firm Ekuiti Nasional Bhd.

KUALA LUMPUR: Crude oil prices may surge towards or surpass the $100 per barrel mark should tensions escalate further in the Middle East and cause disruption to Iran’s oil production. United Overseas Bank Ltd (UOB), in a commodities strategy report released on Monday, said the significant uncertainty surrounding crude oil price trends after Iran’s drone and missile assault on Israel. Although Brent, the worldwide standard for crude oil, commenced Monday morning in Asia with minimal change, hovering slightly above $90 per barrel, the situation remains precarious. The research firm said widespread diplomatic efforts from the United States (US), European Union (EU) and Arab states to de-escalate tensions between Israel and Iran have helped contain the fallout. However, the firm said significant risk remains due to the uncertain reaction from both countries. UOB highlighted that present indicators in the energy market, such as net non-commercial crude oil positions, three-month implied volatility, and freight rates, indicate a relatively limited risk compared to previous disruptions. This is evidenced by the fact that Brent crude oil futures’ backwardation remains significantly distant from the levels observed in early 2022 during Russia’s invasion of Ukraine. The research firm stressed the importance of the response of the Organization of the Petroleum Exporting Countries (OPEC), highlighting it as a crucial factor to monitor. This is particularly significant as Iran contributes approximately four million barrels per day of crude oil production, accounting for 45 per cent of Saudi Arabia’s output. UOB added that if the situation deteriorates and poses a risk to Iran’s crude oil output, crude oil prices are likely to surge again towards the $100 per barrel mark. However, UOB also acknowledged that some OPEC members, including Saudi Arabia, have adhered closely to production quotas, leaving room for potential production increases in the second half of the year to stabilise energy prices. UOB maintains its forecast for Brent crude to reach US$90 per barrel by the fourth quarter of 2024 but acknowledges the volatility of the situation, especially considering the possibility of increased oil production from Saudi Arabia and OPEC+ in response to market dynamics.

KUALA LUMPUR: The combined fortunes of the richest featured in the 2024 Forbes Malaysia Rich List saw a modest uptick of 2 per cent, reaching a total of US$83.4 billion (RM398.8 billion), as reported by Forbes Asia. Leading the list once again is Robert Kuok, one of the world’s most seasoned billionaires, maintaining his top position with a net worth of US$11.5 billion. Kuok laid the foundation of the Kuok Group 75 years ago in Johor Bahru. Initially engaged in humble trades of sugar, rice, and wheat flour, Kuok eventually moulded it into a flourishing conglomerate. Following closely is Quek Leng Chan, the executive chairman of Hong Leong Group (Malaysia), retaining his second spot with a net worth of US$8.8 billion, despite a slight dip from US$10.2 billion recorded last year. Forbes Asia also reported that the top five rankings experienced some shifts. The Teh siblings, who inherited a share in Public Bank Bhd from their late father, Teh Hong Piow, saw a slight uptick in their wealth, climbing to third position with a net worth of $5.4 billion. This advancement displaced aluminium tycoons Koon Poh Keong and siblings, who slid to fifth place due to decreased prices and demand for the metal, leading to a drop in their net worth to US$5.3 billion from US$5.8 billion last year. In the meantime, notable increases in property values propelled brothers Lee Yeow Chor and Yeow Seng into the top five rankings for the first time. They secured the fourth position with a combined wealth of US$5.35 billion, marking an increase from US$4.6 billion last year. Yeow Chor manages the family’s palm oil enterprise, IOI Corp Bhd, while Yeow Seng oversees IOI Properties Bhd, which is preparing to unveil a multibillion-dollar office complex in Singapore’s central business district. Forbes Asia also reported that one of the standout success stories on this year’s roster is Tan Sri Francis Yeoh and his siblings, who witnessed the most remarkable surge in both monetary value and percentage gains. Their combined wealth skyrocketed to US$4.7 billion, more than tripling from the previous year, catapulting them seven positions up to seventh place. This surge in wealth can be credited to the achievements of their flagship enterprise, YTL Corporation Bhd. This enterprise has partnered with US technology giant Nvidia to establish artificial intelligence (AI) infrastructure at its data centre park in Johor. The latest edition of the list introduced four fresh faces, among them two sets of inheritors—the Chen family, positioned 18th with a wealth of US$1.1 billion, inherits the estate of casino tycoon Dr Chen Lip Keong, who passed away in December. Likewise, the Gnanalingam family, ranked twelfth with a wealth of US$1.6 billion, consists of heirs of the late ports tycoon Tan Sri G Gnanalingam, who passed away in July last year. According to Forbes Asia, the minimum net worth to qualify for the list was US$320 million, up from US$315 million in 2023. The top 10 wealthiest individuals in Malaysia are Robert Kuok with US$11.5 billion, Quek Leng Chan with US$8.8 billion, the Teh siblings with US$5.4 billion, Lee Yeow Chor and Yeow Seng with US$5.35 billion, Koon Poh Keong and siblings with US$5.3 billion, Ananda Krishnan with US$4.8 billion, Tan Sri Francis Yeoh and siblings with US$4.7 billion, Tan Sri Jeffrey Cheah with US$2.4 billion, Tan Sri Lim Kok Thay with US$2.2 billion, and Chia Song Kun with US$1.8 billion.

KUALA LUMPUR: There could be a significant impact on the Asia Pacific and global economies, primarily rising oil prices, if tensions in the Middle East continue to escalate following the recent developments. In a commentary note, Moody’s Analytics highlighted the need to resolve the situation quickly to mitigate these effects. The research firm said before Iran attacked Israel last Friday, West Texas Intermediate crude oil prices ranged between US$85 (RM406.04) and US$90 (RM429.89) per barrel. Within this range, an estimated US$5 (RM23.88) represented a risk premium in anticipation of the attack. Following the attack, analysts anticipate an additional US$5 (RM23.88) per barrel to be added to the risk premium, thereby pushing the price of oil into the range of US$90 (RM429.89) to US$95 (RM453.77) per barrel. According to Moody’s Analytics, the current situation has two potential outcomes. The more probable scenario involves Israel’s restrained response to de-escalating tensions, influenced by pressure from the Biden administration and the global community. In this case, the risk premium of US$10 (RM47.76) per barrel is expected to diminish over the coming weeks. However, the second scenario, which could be far more detrimental, entails an escalation of the conflict with a forceful Israeli response to the attack. This could drive oil prices above US$100 (RM477.68) per barrel, threatening the fragile progress on inflation in the region. Moody’s Analytics highlights three main challenges resulting from higher oil prices. First, increased energy and fuel costs could elevate inflation, impacting production and transportation expenses and consequently affecting the prices of various goods. Second, higher oil prices may elevate inflation expectations, complicating the task for central banks and potentially delaying rate cuts or even prompting rate hikes. Lastly, the timing of higher oil prices is particularly unfavourable for Asia Pacific economies, as some countries are already grappling with stalled disinflation. Moreover, the research house notes that even the region’s net oil exporters may not benefit, as any revenue gains could be offset by weaker global demand resulting from resurgent inflation, leading to economic challenges for countries like Malaysia and Brunei.