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2 THURSDAY JULY 26, 2018 • THEEDGE FINANCIAL DAILY

For breaking news updates go to
www.theedgemarkets.com
EU prepares retaliation
ON EDGE TV IN BRIEF
www.theedgemarkets.com
PBoC said to ease bank
capital rule to
encourage lending
BEIJING: Some Chinese banks
Tariffs to affect US$20 billion of US goods have received a notice from reg-

ulators that a specifi c capital
requirement will be eased in

BY JOHAN AHLANDER & PAUL CARREL tial round of EU tariffs would not order to support lending, as the
• The EU is eyeing US farm target specific US states. authorities try to mitigate in-

STOCKHOLM/BERLIN: Th e Europe- products, machinery and “No, now it’s more general goods creasing risks to the economy
an Commission is drawing up a list high-tech goods. such as agricultural products, ma- from the trade war. Th e People’s
of US$20 billion (RM81.2 billion) of chinery, high-tech products and Bank of China (PBoC) told some

US goods to hit with duties if Wash- • The US is weighing tariff s other things,” she said. institutions yesterday that the
ington imposes tariffs on imported on car imports, based on The commission briefed EU so-called “structural parameter”

cars, European Union (EU) Trade national security. countries last week on the bloc’s in the macro-prudential assess-
Commissioner Cecilia Malmstrom possible response, saying in theory ment of their balance sheets will

said on the eve of her boss’ meeting • The EU could offer a trade it could hit €9 billion of US goods, be lowered by around 0.5 point,
with US President Donald Trump. deal if the US tariff s are according to EU sources. reducing required capital buff -
Malmstrom is in Washington removed. However, some EU diplomats ers, according to people familiar

for talks on trade, with European said the commission was also look- with the matter. The PBoC said
Commission President Jean-Claude ing at going for double that amount in the notice that the change is
Juncker due to meet Trump yester- paper Dagens Nyheter yesterday. — to the level Malmstrom is sug- being made to support local fi -
day in a bid to stop the US from ex- In response to the US metal tariff s, gesting — at half the duty rate. nancial institutions in meeting

tending its import tariffs on EU steel the EU has already imposed its own A formal proposal would only credit demand eff ectively, the
and aluminium to cars and car parts. import duties on €2.8 billion (US$3.3 come after the US Commerce De- people said, asking not to be

The E
dge C
ommunica
tions Sdn Bhd
The Edge Communications Sdn Bhd “We hope that it doesn’t come to billion or RM13.39 billion) worth of partment completed its investi- identified as the matter is not
(2 (266980-X) that and that we can find a solution. If US goods, including products like gation into whether car imports public. — Bloomberg
80-
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evel 3, Menar
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Level 3, Menara KLK, No 1 Jalan PJU 7/6,
/6,
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alan P
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Mutiar a D amansar a, 4 7 810 P etaling J a y a, not, the EU Commission is preparing bourbon and motorcycles that are threaten national security. Th e re-
Mutiara Damansara, 47810 Petaling Jaya,
Selangor
Selangor, Malaysia a rather long list of many American made in some of the electoral dis- port’s deadline is February 2019, Najib, Rosmah and six
, Mala
ysia
goods. It would be around US$20 bil- tricts that supported Trump. but it is now expected by late Au- others win bid
lion,” Malmstrom told Swedish news- Malmstrom said the next poten- gust/early September. — Reuters to strike out lawsuit
Publisher and Group CEO Ho Kay Tat
PUTRAJAYA: Former prime
minister Datuk Seri Najib
EDITORIAL

For News Tips/Press Releases Razak, his wife Datin Seri Ros-
Tel: 03-7721 8219 Fax: 03-7721 8038 Swelling deficits are Southeast mah Mansor and six others
Email: eeditor@bizedge.com succeeded in their appeals to
Editor-in-Chief Azam Aris strike out the second lawsuit

Executive Editors Ooi Inn Leong, Asia’s next stability test filed against them by the wid-
Kathy Fong, Jenny Ng, Diana Khoo ow of the late private investi-
Senior Editors Cindy Yeap, gator P Balasubramaniam. A
Jose Barrock, Kang Siew Li
Associate Editors R B Bhattacharjee, three-man bench of the Court
Vasantha Ganesan, Adeline Paul Raj BY MICHELLE JAMRISKO it agencies guessing how much the imported capital equipment. of Appeal comprising Justices
Deputy Editor Tan Choe Choe balance sheets will be turned up- One area of increased spend- Datuk Tengku Maimun Tuan
Assistant Editors Khairie Hisyam SINGAPORE: Southeast Asian gov- side-down. Prime Minister Tun Dr ing: energy subsidies doled out Mat, Datuk Suraya Othman
Aliman, Kanagaraju S Sithambaram
Chief Copy Editor Halim Yaacob ernments are staring down swelling Mahathir Mohamad has already de- to consumers to keep a lid on fuel and Datuk Stephen Chung

Senior Copy Editor Melanie Proctor budget deficits in the latest test for livered on some campaign promises prices. Finance Minister Sri Muly- Hian Guan allowed the ap-
Copy Editor Tham Kid Cheng regional stability. that strain the government budget, ani Indrawati said the move should peals by the eight appellants.
Art Director Sharon Khoh As higher US interest rates and scrapping a 6% goods and services not hurt the deficit because as an Tengku Maimun, who chaired

Chief Graphic Designer Cheryl Loh
Design Team Valerie Chin, a stronger dollar roil currencies tax and reinstituting fuel subsidies. oil producer, higher crude prices the bench, held that A Santa-

Mohd Yusry, Aaron Boudville, in the region and oil prices spike, His administration has promised would provide some cushion. mil Selvi had filed the suit out

Aminullah Abdul Karim, governments from Malaysia to Vi- to offset the lost revenue with a new She sees the deficit at 2.12% of of the six-year time frame for
Noorain Duasa, Tun Mohd Zafi an etnam are facing rising debt. sales and services tax and cancel- GDP this year, lower than the 2.19% legal action. — Bernama
Mohd Za’abah
A less rosy growth picture also lation of some big infrastructure forecast in the annual budget.
EDITORIAL ADMINISTRATION means tax revenues may come in be- projects, but it is still unclear how Vietnam: Southeast Asia’s growth I may not be alive after
Manager Katherine Tan low targets, threatening budget goals. much those initiatives will help star has to guard against some new testifying, murder
Senior Coordinator Maryani Hassan accused tells court
The result is more borrowing even out the ledger. risks. Vietnam scored a sovereign
at a time when interest rates are Dr Mahathir’s focus is on bring- rating upgrade from Fitch Ratings KUALA LUMPUR: The sev-
CORPORATE
Chief Operating Offi cer rising, putting additional strain on ing down debt, which Moody’s In- in May because of a build-up of for- enth accused in the murder
Lim Shiew Yuin government fi nances. vestors Service estimated is at 50.8% eign reserves and stronger growth, of deputy public prosecutor
Many governments were al- of gross domestic product (GDP), but the fiscal outlook is a worry. Datuk Anthony Kevin Morais

ADVERTISING & MARKETING
To advertise contact ready spending billions of dollars on higher than other A-rated peers. Fitch estimated a budget defi cit shocked the High Court when
GL: (03) 7721 8000 much-needed rail and road projects As a net energy exporter, higher of about 4.6% of GDP in 2018, which he said that his defence testi-
Fax: (03) 7721 8288 before the market turmoil, and some, oil prices are a boon to Malaysia, is higher than the 3.2% median for mony might be his last as he
Chief Commercial Offi cer like Indonesia, are now scaling back which will help offset some of the BB-rated nations, and compares with could be dead after that. S Ravi

Sharon Teh (012) 313 9056
General Manager those plans to keep defi cits in check. pressure on government revenues. the government’s own target of 3.7%. Chandaran told the court this
Kingston Low (012) 278 5540 Here are the Southeast Asian Indonesia: To stabilise the cur- Vietnam needs to focus on sta- yesterday after taking his oath
Senior Sales Managers nations with the biggest budget rency and curb the current-ac- bility and structural reforms rath- before Judge Datuk Azman Ab-
Fong Lai Kuan (012) 386 2831 dilemmas: count gap, the government is scal- er than rapid growth in order to dullah as the sixth and last de-
Gregory Thu (012) 376 0614
Creative Marketing Malaysia: Malaysia’s two- ing back some of its large-scale preserve its BB rating, according fence witness in the murder
Chris Wong (016) 687 6577 month-old government has cred- infrastructure projects that require to Fitch. — Bloomberg trial. — Bernama
Head of Marketing Support & Ad Traffi c
Lorraine Chan (03) 7721 8001
Email: advertising@bizedge.com
Mega First’s hydropower project in Laos unaffected by dam collapse

OPERATIONS
To order copy
Tel: 03-7721 8034 / 8033 BY JUSTIN LIM with the DSPC management and construction of the DSHP is still on- secured loan facilities worth US$150
Fax: 03-7721 8282
Email: hotline@bizedge.com its consultants that the incident going and is currently 65% complete. million (RM607.17 million) to partly
KUALA LUMPUR: Mega First Corp is unlikely to result in any delay in Filling the headpond with water finance the construction of DSHP.

EdgeProp.my Bhd said the construction of the completing the Don Sahong project from the Mekong River is scheduled On Monday, a dam that formed
Managing Director/Editor-in-Chief Don Sahong Hydropower Project or a material change in the overall in the next wet season in 2019,” the part of the Xe-Pian Xe-Namnoy hy-
Au Foong Yee (DSHP) in Laos is unaff ected by cost of the project,” it added. company said in a statement. droelectric power project collapsed,
Executive Editor Sharon Kam

Editor Lam Jian Wyn the Xepian-Xe Nam Noy dam col- It said the board is satisfi ed with DSHP is the group’s fi rst venture causing flooding in six villages in
Assistant Editor James Chong lapse there. the current and future safety of the into renewable energy. According the Attapeu province. At least 20
Its board gave the assurance dam and that the risks remain low. to its website, DSHP has a genera- people were reportedly killed and
MARKETING & ADVERTISING after making necessary enquiries The DSPC management and the tion capacity of 260MW. more than 6,000 villagers made

Associate Account Director,

Advertising & Marketing with the Don Sahong Power Com- project’s consultants are contin- The project is a run-of-river hy- homeless.
Heidee Ahmad (019) 388 1880 pany’s (DSPC) management and uously monitoring and managing droelectric power scheme located Mega First shares closed six
the project’s consultants, it said in the DSHP, according to the industry in the Khong district of Champasak sen or 1.67% lower at RM3.54,
PRODUCT DEVELOPMENT a Bursa Malaysia fi ling yesterday. and international best practices. province in southern Laos. with a market capitalisation of
& CUSTOMER ADVISORY
Senior Manager Elizabeth Lay “For now, the board concurs “About the current status, the In October last year, the group RM1.49 billion.