News

India’s Oil and Natural Gas Corporation (ONGC) has announced the signing of an agreement with Japan’s Mitsui O.S.K. Lines, the country’s second-largest shipping company, to construct and operate two Very Large Ethane Carriers (VLECs). The collaboration aims to facilitate the transportation of imported ethane to ONGC Petro additions Ltd (OPaL), a wholly owned subsidiary of ONGC. OPaL operates a dual-feed cracker facility, and the imported ethane will serve as a critical feedstock. ONGC has outlined plans to source 800,000 tonnes of ethane annually beginning May 2028, according to a Reuters report earlier this year. The agreement remains subject to final approval by ONGC’s board of directors, the company noted in a formal communication to stock exchanges. -Reuters

United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has entered into a strategic partnership with the Federation of Malaysian Manufacturers (FMM) and the Singapore Manufacturing Federation (SMF) to strengthen cross-border trade and investment between Malaysia and Singapore. The tripartite memorandum of understanding (MoU) was signed at the ASEAN Conference in Singapore, with the objective of enhancing the Malaysia–Singapore manufacturing corridor. This collaboration leverages UOB’s regional expertise and extensive network to support businesses, particularly small and medium-sized enterprises (SMEs), in scaling their operations, accessing new markets and achieving sustainable growth. The initiative is closely aligned with the momentum created by the Johor–Singapore Special Economic Zone (JS-SEZ), a bilateral government initiative aimed at fostering greater economic integration. In a statement, UOB highlighted its early involvement in the JS-SEZ, having launched key initiatives such as the Green Lane in collaboration with Invest Johor. The bank also established dedicated SEZ Desks and introduced expedited account opening services to facilitate business onboarding. Since 2024, UOB has committed RM11.5 billion in financing to support commercial activities in Johor and is currently facilitating RM10 billion in foreign direct investment (FDI) flows into the zone. Ng Wei Wei, Chief Executive Officer of UOB Malaysia, expressed confidence in the partnership’s potential. “Through this MoU, we look forward to working with FMM and SMF to help their members seize cross-border opportunities and contribute to ASEAN’s industrial growth,” she said. The MoU outlines two primary objectives: to promote bilateral business expansion between Malaysia and Singapore and to enhance joint trade and investment initiatives aimed at reinforcing the regional manufacturing ecosystem. UOB’s role includes providing tailored advisory services, market entry strategies and in-market support to members of both manufacturing bodies. FMM President Tan Sri Soh Thian Lai said the collaboration sets the foundation for new cross-border success stories under the JS-SEZ. He reaffirmed FMM’s commitment to supporting its members in harnessing the potential of this bilateral framework to deepen regional business ties. Lennon Tan, President of the SMF, noted that ASEAN’s global competitiveness depends on the ability of its manufacturers to innovate, scale and connect efficiently. “This tripartite partnership will open clearer paths to capital, talent and technology, enabling sustainable growth and ensuring that the Malaysia–Singapore manufacturing corridor remains competitive and future-ready,” he added. -The Edge

Hong Kong’s retail sector recorded its first annual increase in more than a year, with retail sales by value rising by 2.4 per cent in May, according to official government figures released on Wednesday. The total sales value reached HK$31.3 billion (approximately US$3.99 billion), marking a notable rebound following a 2.3 per cent year-on-year decline in April. In volume terms, retail sales rose 1.9 per cent year-on-year in May, reversing a revised 3.3 per cent contraction in the previous month. The return to positive territory suggests a gradual recovery in consumer sentiment and spending activity, though analysts note that broader economic conditions and tourism flows will remain key factors influencing the pace of retail recovery in the months ahead. -Reuters

HD Hyundai XiteSolution has announced the merger of its two construction subsidiaries, HD Hyundai Construction Equipment and HD Hyundai Infracore, as part of a strategic initiative to reinforce competitiveness amid evolving industry dynamics. The consolidated entity, provisionally named HD Construction Equipment, is expected to launch on 1 January, following necessary regulatory procedures. The boards of directors of both companies have formally approved the merger in separate meetings, with a temporary shareholders’ meeting scheduled for 16 September and a subsequent review by authorities. HD Hyundai Construction Equipment will serve as the surviving corporation in the transaction. This move reflects HD Hyundai XiteSolution’s strategic response to intensifying global market competition and persistent economic uncertainty. The company emphasised the importance of the merger in securing technological leadership and cost efficiency, essential for long-term sustainability in the construction equipment sector. Currently, the combined annual revenue of the two affiliates stands at approximately ₩8 trillion. The newly merged entity aims to achieve ₩14.8 trillion in annual revenue by 2030. HD Construction Equipment will manage and grow the two flagship brands, Hyundai and Develon, pursuing balanced expansion across core segments including construction machinery manufacturing, engine systems, and aftermarket services. The company will implement a unified decision-making framework to optimise its regional product portfolio and production capabilities. It also plans to expand its presence in the compact equipment segment to offer a full spectrum of construction solutions, further strengthening its market position. Future growth will be underpinned by investments in automation, smart machinery, and integrated solutions enabled through consolidated research and development. This will support HD Construction Equipment’s ambition to lead innovation in construction technologies. As part of the merger agreement, shareholders of HD Hyundai Infracore will receive newly issued shares of HD Hyundai Construction Equipment. Under the approved merger ratio, each common share of HD Hyundai Infracore will be exchanged for 0.16 shares of the surviving company. “This merger will drive sustainable growth for the construction equipment division of HD Hyundai, helping us strengthen our position in the global market and serving as a significant entity in advancing South Korea’s construction equipment industry,” said Cho Young-cheul, Chief Executive Officer of HD Hyundai XiteSolution. -The Korea Herald

MMC Port Holdings has taken a significant step toward executing what could become Malaysia’s largest initial public offering (IPO) in 13 years, following the submission of its draft prospectus to the Securities Commission Malaysia, as reflected on the regulator’s website on Wednesday. The listing, which will see MMC Corp—the parent company and sole shareholder—divest up to 30 per cent of its stake in MMC Port, could potentially raise more than RM6 billion (approximately US$1.43 billion), according to earlier reporting by Reuters. If realised, this would mark the country’s most substantial IPO since IHH Healthcare’s US$2.1 billion listing in 2012. Details outlined in the draft prospectus reveal that the IPO comprises up to 4.27 billion shares, including 3.99 billion allocated for institutional investors and 286.1 million for retail participation. However, the document does not specify an expected launch date or a final valuation. The proposed offering will not generate proceeds for MMC Port itself. The company, however, has indicated a strong capital position and does not anticipate the need for fresh equity funding. “Our board is of the view that our company presently does not require additional equity funding for our business,” the company stated in the prospectus. Despite a 9.2 per cent decline in net profit—falling from RM701.13 million in 2023 to RM636.56 million in 2024—MMC Port’s revenue climbed nearly 10 per cent year-on-year, reaching RM4.36 billion. The company has yet to issue an official comment regarding the filing. -Reuters

The Laos government has issued a renewed call for greater international cooperation to enhance domestic resource mobilisation, positioning it as a critical pillar for achieving sustainable development and reducing dependency on foreign assistance. At the 4th International Conference on Financing for Development, held in Seville, Spain from 30 June to 3 July, Deputy Prime Minister Saleumxay Kommasith outlined Laos’ ongoing reforms aimed at improving public financial management. Addressing a high-level roundtable on domestic resource mobilisation and allocation, he emphasised the importance of robust national revenue systems—particularly for least developed countries like Laos. Saleumxay stated that Laos is undertaking comprehensive reforms of its public finance system. These include expanding the use of digital technologies to improve tax collection, investing in human capital, and tightening budget oversight. The government has set a strategic objective to raise tax revenue to 20 percent of gross domestic product (GDP) by 2030. Recent performance data, shared during the National Assembly’s ordinary session, shows early momentum: in the first half of the year, tax collection increased by 4.3 percent, accounting for 11.7 percent of GDP. He also used the forum to urge development partners and international institutions to step up financial and technical assistance to countries like Laos. Specific appeals included enhanced support for capacity building, particularly in human resources, and stronger international cooperation on tax matters. In the general debate session, Saleumxay addressed the conference on behalf of both Laos and the Association of Southeast Asian Nations (ASEAN). He reaffirmed ASEAN’s collective commitment to building resilient, future-ready economies grounded in inclusivity and sustainability. He further highlighted the bloc’s support for multilateral trade frameworks under World Trade Organization (WTO) rules, as well as its focus on advancing industrial development and energy integration within the region. The deputy prime minister underscored Laos’ national priority of graduating from Least Developed Country (LDC) status. He said the government is aligning domestic development strategies with international frameworks, particularly the 2030 Agenda for Sustainable Development, and called for continued global support to sustain long-term progress. The Seville meeting convened representatives from 179 countries. It marked the fourth edition of the conference, following earlier gatherings in Mexico (2002), Qatar (2008), and Ethiopia (2015). The opening ceremony on 30 June featured an address by His Majesty King Felipe VI of Spain. Subsequent sessions were co-chaired by Spanish Prime Minister Pedro Sanchez and United Nations Secretary-General António Guterres. A key outcome of the conference was the adoption of the Seville Commitment, a forward-looking document that sets shared objectives to close financing gaps, combat inequality, and accelerate progress on the Sustainable Development Goals (SDGs). This commitment will now guide future global cooperation on financing for development. -ANN