News

Moody’s Investors Service has downgraded Nissan Motor Co Ltd’s corporate family rating from Ba1 to Ba2, citing ongoing weakness in the company’s financial profile as it attempts to implement a wide-ranging turnaround plan. The global ratings agency has maintained a negative outlook for the Japanese automaker. According to Dean Enjo, Vice-President and Senior Analyst at Moody’s, the downgrade reflects continued deterioration in Nissan’s credit metrics, particularly in relation to its automotive free cash flow and EBIT margin. These key indicators are expected to remain under pressure, raising concerns about the company’s financial resilience. Nissan, Japan’s third-largest car manufacturer, recently announced a significant restructuring initiative aimed at restoring profitability. As part of the plan, the company will reduce its global workforce by approximately 15 percent and scale back the number of its production plants worldwide from 17 to 10. These measures come amid persistent challenges in core markets that have adversely impacted performance. -Reuters

AESC, a Japanese battery manufacturer, has announced a temporary halt to construction of its $1.6 billion electric vehicle (EV) battery plant in Florence, South Carolina, citing ongoing policy and market uncertainty in the United States. The company, which is a key supplier for BMW’s EV production, did not elaborate on the specific challenges it is facing. However, South Carolina Governor Henry McMaster pointed to concerns over the potential loss of federal tax incentives for EV buyers, the broader impact of shifting EV-related subsidies, and tariff uncertainties under the trade policies proposed by former President Donald Trump. “What we’re doing is urging caution — let things play out because all of these changes are taking place,” Governor McMaster stated. AESC confirmed the decision in a corporate statement issued on Thursday, noting that while construction will pause, the company remains committed to its long-term investment in the state. “Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,” the statement read. The company has already invested $1 billion in the project and reaffirmed its commitment to invest a total of $1.6 billion and to create 1,600 jobs. AESC did not specify a timeline for when construction would resume. In addition to its operations in Japan, AESC maintains battery production facilities in China, the United Kingdom, France, Spain, and Germany. In the United States, it currently operates a plant in Tennessee and is developing another in Kentucky. The company did not report any disruptions at these other locations. The South Carolina plant is designed to supply battery cells to BMW, which is building a battery assembly facility near its automotive manufacturing hub in Greer. BMW confirmed that its plans to open the plant in 2026 remain unchanged despite the construction delay by AESC. This is not the first adjustment to AESC’s plans in the region. The company had initially announced a second facility on the Florence site, but later revised its projections, stating that a single plant would suffice to meet BMW’s demand. As a result, South Carolina officials rescinded $111 million in state assistance tied to the now-cancelled second plant. Nevertheless, AESC is still receiving significant support from the state, including $135 million in grants from the South Carolina Department of Commerce and $121 million in bonds. The department confirmed that the temporary pause in construction would not affect the current incentive agreements. South Carolina has aggressively pursued EV investment in recent years. Volkswagen-owned Scout Motors is planning a $4 billion facility in the state, which is expected to generate 10,000 jobs and begin production of new electric SUVs by 2027. The state’s economic strategy has long relied on attracting foreign manufacturers such as BMW, Michelin, and Samsung, which have collectively contributed to a significant economic upswing over the past two decades. However, renewed concerns around the potential imposition of high tariffs by the Trump administration are creating a sense of unease regarding the future stability of these partnerships. Governor McMaster sought to allay concerns, noting ongoing discussions between state leaders and federal officials. “I think the goal of the president and the administration is to have robust economic growth and prosperity, and there is no doubt there has to be changes made in our international trade posture, and President Trump is addressing that,” he told reporters. -Japan Today

Link Real Estate Investment Trust is reportedly exploring a potential listing of a new real estate investment trust in Singapore, comprising selected assets located outside of mainland China and Hong Kong. Sources familiar with the matter, who requested anonymity due to the private nature of the discussions, indicated that the Hong Kong-based REIT has engaged in preliminary consultations with advisers regarding the proposed initial public offering. The deliberations remain at an early stage, and there is no certainty that the company will proceed with the listing. Link Asset Management, which manages Link REIT, declined to provide comment on the matter. This move aligns with Link REIT’s broader strategic pivot towards diversification beyond its traditional property management portfolio. In recent months, the firm has announced plans to expand into fund management, partnering with capital investors. As part of this initiative, the company appointed John Saunders, formerly Head of Asia-Pacific Real Estate at BlackRock Inc, to lead its newly launched platform, Link Real Estate Partners. Link REIT has experienced a 27% surge in its share price on the Hong Kong exchange this year, resulting in a market capitalisation of approximately US$13.7 billion (RM57.9 billion). Should the listing proceed, it would mark a notable addition to Singapore’s capital markets, which have been facing challenges in attracting IPOs. As of early June 2025, only five companies have gone public in Singapore, raising a total of just US$39 million, according to data compiled by Bloomberg. Nonetheless, there are indications of renewed activity. Japan’s Nippon Telegraph & Telephone Corp is said to be preparing a REIT listing in Singapore later this year, while US-based AvePoint Inc filed for a secondary listing in the city-state in January. -Bloomberg

Singapore-based ChemOne Holdings Pte Ltd is seeking more than US$2.7 billion (approximately RM11.42 billion) through a syndicated loan to support the development of a major chemical processing facility in Johor, Malaysia, according to sources familiar with the matter. In response to queries from Bloomberg News, the petrochemicals group confirmed that the project financing carries a weighted average tenor of around 7.5 years. The proposed loan features an interest margin of approximately 150 to 180 basis points above the benchmark Secured Overnight Financing Rate. Mizuho Securities Co Ltd is among the financial institutions acting as arrangers for the deal. This syndicated loan forms part of a broader US$3.5 billion funding package, for which ChemOne finalised financing terms in December. The company has already secured commitments for approximately 90 percent of the total loan amount and is in advanced negotiations to conclude the remaining tranche. A consortium of global export credit agencies and development financial institutions, including the Export-Import Bank of the United States and Italy’s SACE, has confirmed its participation in the transaction. ChemOne expects to formally sign the agreement in the third quarter of the year. The financing will support the construction of the Pengerang Energy Complex in southern Johor, a strategic development within a growing oil, gas and petrochemical hub near key international shipping routes. The site’s deep-water access will enable it to accommodate some of the largest crude carriers globally. Designed as a low-carbon facility, the complex is projected to deliver 5.6 million metric tonnes annually of aromatic and energy products. Construction is scheduled to commence in mid-2025, with full operational streaming anticipated by the end of 2028. ChemOne added that the syndicated loan is supported by investment-grade credit insurance, covering up to 95 percent of both interest and principal obligations. -Bloomberg

Indonesia’s sovereign wealth fund, Danantara, is reportedly exploring a role in the proposed US$7 billion (RM29.6 billion) acquisition of GoTo Group by Grab Holdings Ltd, a potential move that could enable the Indonesian government to retain partial ownership in one of Asia’s leading digital platforms. Preliminary discussions have been initiated between Danantara and GoTo regarding the acquisition of a minority stake in the merged entity, according to individuals familiar with the matter. Such an arrangement may help address national concerns over the sale of a homegrown technology company to Grab, a Singapore-based firm. While both Grab and GoTo have progressed in shaping a potential deal structure, negotiations have slowed in recent weeks due to concerns surrounding regulatory scrutiny. In May, Indonesia’s antitrust authority announced it would investigate the merger’s potential impact and called on both firms to ensure the agreement would not result in monopolistic behaviour. In this context, Danantara’s potential participation could enhance the likelihood of regulatory approval from the Indonesian government, which is expected to pose the greatest hurdle for the transaction. However, the discussions are still in early stages and may not result in a formal agreement. It remains uncertain whether Danantara has held direct discussions with Grab. Spokespersons for Grab, GoTo and Danantara have declined to comment on the matter. The two companies have engaged in intermittent merger talks for years, though no agreement has materialised, largely due to antitrust risks associated with combining Southeast Asia’s two largest ride-hailing and food delivery providers. Since exiting Southeast Asia in 2018, Uber Technologies Inc has retained a stake in Grab. Despite competition from smaller players, Grab and GoTo continue to dominate market share in Indonesia and Singapore. The potential sale of GoTo has triggered concerns within Indonesian political circles regarding national autonomy and the preservation of local technology jobs. Some officials have expressed apprehension about potential price increases in ride-hailing and food delivery services should Grab achieve dominant market control, particularly at a time when consumers face economic headwinds. One of the potential mitigations being discussed includes a commitment by Grab to maintain employment levels for a set period post-merger. The Indonesian government is concurrently navigating market uncertainty triggered by the populist measures implemented by President Prabowo Subianto. Since assuming office late last year, the 73-year-old former general has enacted a series of populist policies, including raising the minimum wage, expanding consumer subsidies, curtailing central bank independence, and adopting a firm stance toward foreign businesses. In March, he ordered both Grab and GoTo to provide holiday bonuses to their drivers. According to reports by Bloomberg News, Grab is evaluating GoTo at over US$7 billion, with one option under consideration being an all-stock transaction priced at approximately 100 rupiah per share. GoTo’s shares closed at 61 rupiah on Thursday, 5 June. A proposed sequence involves GoTo first acquiring Grab’s Indonesian ride-hailing and food delivery operations. Subsequently, Grab would take a majority stake in the new entity, thereby assuming control over GoTo’s Indonesian operations. Concurrently, GoTo would divest its Singapore-based ride-hailing business to a third party. Grab, headquartered in Singapore, is currently Southeast Asia’s largest ride-hailing and delivery platform, maintaining leadership in key markets including Malaysia and Thailand. GoTo, while having exited countries such as Thailand and Vietnam amid aggressive cost-cutting efforts, remains a significant player in Indonesia, the region’s most populous country with over 275 million residents. Acquiring GoTo would reinforce Grab’s foothold in Indonesia, particularly as emerging competitors like InDrive and Maxim continue to expand their presence. Grab’s revenue from Indonesia rose 6.3% to US$643 million in 2024, marking the company’s slowest growth among Southeast Asian markets. -Bloomberg