international

EchoStar Corporation is reportedly preparing for a potential Chapter 11 bankruptcy filing as it seeks to safeguard its wireless spectrum licences amid increased regulatory scrutiny from the Federal Communications Commission (FCC), according to sources cited by The Wall Street Journal. The telecommunications services provider has not issued an official response regarding the report. In May, the FCC informed EchoStar that it was reviewing the company’s adherence to federal obligations, particularly those related to the provision of 5G services within the United States. The investigation includes an assessment of EchoStar’s request for an extension to its network buildout deadlines and its mobile-satellite service operations. EchoStar disclosed in a recent regulatory filing that the FCC’s actions have significantly restricted its capacity to make key strategic decisions, particularly those involving investment in and the future direction of its Boost Mobile business. The company has also acknowledged missing approximately USD 500 million in interest payments, attributing the lapse to the ongoing uncertainty stemming from the FCC’s investigation. Further compounding its financial and operational challenges, EchoStar suffered a setback last year when U.S. satellite television provider DirecTV terminated an agreement to acquire EchoStar’s satellite TV business, which includes rival provider Dish TV. The deal fell through following a failed debt-exchange proposal. -Reuters

Boeing Co has restarted deliveries of its commercial aircraft to China for the first time since early April, marking a significant development in the ongoing trade tensions between the United States and the world’s second-largest economy. Flight tracking data from Flightradar24 revealed that a Boeing 737 Max, registered as N230BE, departed from King County International Airport-Boeing Field in Seattle at approximately 10am local time on Friday. The aircraft’s first stop is Kailua-Kona, Hawaii, en route to Zhoushan, China, where Boeing completes final delivery processes for jets bound for domestic Chinese customers. This milestone follows a temporary easing of tariffs between the two countries. On 12 May, Chinese authorities lifted a previous ban on airlines accepting Boeing aircraft after a temporary trade truce with the United States. Under the agreement reached in Geneva, China reduced tariffs on US goods from 125 percent to 10 percent, while the United States agreed to cut combined duties on Chinese imports from 145 percent to 30 percent. However, the truce is valid for only 90 days, leaving the future of aerospace trade vulnerable to renewed escalation. The resumption of Boeing deliveries to one of the world’s largest aviation markets comes amid renewed geopolitical friction surrounding critical technologies and minerals. In recent weeks, both Washington and Beijing have imposed restrictions involving semiconductors and rare-earth elements. Additionally, the White House has advanced efforts to limit the transfer of US aerospace technologies to China’s state-backed aircraft manufacturer, Commercial Aircraft Corporation of China Ltd (Comac), which is developing the C919 jetliner as a challenger to Boeing and Airbus. Boeing has not commented on the resumed shipments. However, the move signals the possible unfreezing of its Chinese inventory, as Chinese carriers including Air China, Hainan Airlines, and Xiamen Airlines have resumed taking deliveries, according to data from Aviation.flights, a platform that monitors aircraft handovers. The developments also coincide with reports that China may soon place a major order for aircraft from Boeing’s European competitor, Airbus SE. Bloomberg recently reported that an order for several hundred Airbus jets could materialise as early as next month, heightening the strategic stakes for Boeing in the Asia-Pacific region. The temporary détente may provide Boeing with a narrow window to alleviate financial pressure by delivering dozens of jets previously sidelined due to trade policy. Prior to the April dispute, Boeing had planned to deliver approximately 50 aircraft to China. These plans were disrupted when China responded to fresh US tariffs by increasing levies that rendered the aircraft unaffordable for Chinese carriers. China’s dependence on diversified aircraft sources, including US-made engines and avionics for Comac’s C919, highlights the mutual reliance underpinning the aviation sector. Despite ongoing tensions, both countries have historically benefited from aerospace trade, with the United States recording consistent surpluses in the sector. Industry analysts have warned, however, that further disruption may hinder Boeing’s delivery schedule. Kristine Liwag of Morgan Stanley noted in a 16 May client briefing that while Boeing could potentially redirect aircraft to other buyers if tensions escalate, doing so might jeopardise its short-term delivery targets. As commercial air travel demand continues to outpace supply, Boeing’s ability to navigate geopolitical headwinds while maintaining production and delivery timelines remains a critical factor for its global market position. -Bloomberg

Temasek Holdings has announced the appointment of Mr Teo Chee Hean as its fifth chairman, succeeding Mr Lim Boon Heng. Mr Teo, who retired from politics in April and did not stand in the recent General Election, will join Temasek’s board as deputy chairman on 1 July. He will formally assume the role of chairman on 9 October following the conclusion of the company’s third-quarter board meeting. A seasoned public servant with more than five decades of service, Mr Teo, 70, previously served as Singapore’s Chief of Navy before entering politics in 1992. His political career began with a by-election victory in Marine Parade GRC and continued through multiple successful terms in Pasir Ris-Punggol GRC. Over the years, he held senior ministerial roles, including Deputy Prime Minister from 2009 to 2019 and Senior Minister thereafter. He also served as Coordinating Minister for National Security and led key national initiatives involving digital transformation and climate policy. Temasek cited Mr Teo’s deep expertise in geopolitics and complex policy matters, noting his strategic acumen in managing cross-agency challenges. The firm expressed confidence that Mr Teo’s leadership would be instrumental in navigating an increasingly volatile global environment while sustaining its growth as a global investment house. Prime Minister and Finance Minister Lawrence Wong paid tribute to Mr Lim’s contributions and welcomed Mr Teo’s appointment. Mr Wong commended Mr Lim for enhancing Temasek’s global reach, reinforcing governance standards, and positioning the company as a sustainability leader. He expressed confidence in Mr Teo’s ability to build on these foundations. Mr Lim Boon Heng, 77, has chaired Temasek since 2013, following a distinguished public service career including roles as Minister in the Prime Minister’s Office and Secretary-General of the National Trades Union Congress. He joined Temasek’s board in 2012 and has played a pivotal role in shaping its global trajectory. Under his leadership, the firm’s net portfolio value grew from S$223 billion (US$174 billion) in March 2014 to S$389 billion in the most recent financial year. During his tenure, Temasek expanded significantly across developed markets in Europe and the United States, which now account for nearly half of its 13 international offices. Mr Lim also led the firm through a critical leadership transition in 2021, with Mr Dilhan Pillay assuming the role of CEO from Mdm Ho Ching. He placed strong emphasis on talent development and international representation, aligning with the company’s broader strategy. Temasek credited Mr Lim for strengthening corporate governance and promoting sustainability through initiatives such as the Temasek Roundtable and the Ecosperity conference series. He also spearheaded Temasek’s social initiatives during the COVID-19 pandemic and played a vital role in shaping its T2030 strategy, a decade-long roadmap focused on resilience and long-term value creation. Reflecting on his 13-year journey at Temasek, Mr Lim expressed gratitude for the opportunity to work with a dedicated team committed to excellence. He expressed his confidence in Mr Teo’s leadership, noting his profound understanding of both domestic and international issues. In response, Mr Teo acknowledged Mr Lim’s stewardship and emphasised the need for clarity and foresight in an era marked by global uncertainty. He reaffirmed Temasek’s commitment to addressing both present and future challenges while sustaining its mission to generate long-term value for Singapore and beyond. Mr Pillay praised Mr Lim’s leadership, describing him as a model of stewardship and a unifying force across Temasek’s ecosystem. He credited Mr Lim for fostering a culture of trust through initiatives like the Temasek Tripartite Conversations and welcomed Mr Teo’s appointment as a strategic step forward for the firm. In addition to the chairmanship transition, Temasek announced the upcoming retirements of three long-serving board members. Deputy Chairman Cheng Wai Keung and Director Stephen Lee will step down on 30 June, while Director Bobby Chin will retire on 31 July. Their combined expertise in governance, investment strategy, and industry developments has significantly shaped the company’s decision-making and global positioning. Temasek, which celebrated its 50th anniversary last year, has evolved from managing a S$354 million portfolio of Singapore-based companies to becoming a globally recognised investment firm with a multibillion-dollar footprint. -CNA

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

Airbus has announced that its Chief of Procurement, Juergen Westermeier, will assume leadership of the company’s operations in India and South Asia, effective 1 September. The internal appointment was communicated via a company memo reviewed by Reuters. A successor for the procurement role has yet to be named, with the memo stating that the position remains “subject to further notice.” Airbus has declined to comment publicly on the internal reshuffle. The leadership transition comes amid ongoing challenges for the European aerospace giant as it continues to grapple with persistent supply chain disruptions. These issues, rooted in labour shortages and reduced industrial capacity following the COVID-19 pandemic, have hampered the company’s ability to maintain consistent production and delivery schedules. Recent performance indicators underscore the pressure Airbus is facing. Aircraft deliveries in May fell by 4 per cent compared to the previous month, contributing to a year-to-date decline of 5 per cent. Airbus has set an ambitious target of delivering 820 aircraft by the end of 2025, representing a 7 per cent increase over previous figures. Achieving this will require a significant ramp-up in output over the coming months. Analyst Rob Morris, Head of Consultancy at Cirium Ascend, noted via LinkedIn that production of Airbus’s A320neo family trailed Boeing’s 737 MAX in May for the first time since August 2019, based on the number of first flights. Airbus did not comment on monthly production figures but has attributed recent shortfalls to ongoing weaknesses in key parts of the supply chain, particularly involving engine components and aerostructures. Westermeier’s reassignment marks the second high-level change in Airbus’s engineering and industrial leadership in recent weeks. Earlier, Sabine Klauke, the group’s Chief Technology Officer, was reassigned to focus on digital design and manufacturing transformation efforts. During his tenure as procurement chief, Westermeier was known for a firm stance on supplier quality and stock management. In 2021, a letter reported by Reuters revealed that he had urged suppliers to hold more inventory and improve performance standards. More recently, he spearheaded an initiative aimed at unifying standards across the supply network. While some suppliers have called for fresh approaches to encourage readiness for increased production, a source familiar with the matter said Westermeier’s transition is unrelated to current supply chain challenges, which are reportedly beginning to stabilise. Airbus CEO Guillaume Faury commended Westermeier’s contributions in the internal communication. Westermeier will replace Remi Maillard, who was recently appointed Head of Technology as Airbus explores future development paths for the successor to its best-selling A320neo aircraft.