Gold heads for weekly gain on US fiscal concerns after tax-cut bill
FUNDAMENTALS
Spot gold was flat at US$3,328.36 per ounce, as of 0029 GMT. Bullion is up 1.7 per cent this week.
US gold futures edged down 0.1 per cent to US$3,337.90.
Trump's tax-cut legislation cleared its final hurdle in the US Congress on Thursday, as the Republican-controlled House of Representatives narrowly approved a massive package that would fund his domestic agenda and push millions of Americans off health insurance.
The labor market data on Thursday showed US firms added a more-than-expected 147,000 jobs in June and the unemployment rate unexpectedly fell to 4.1 per cent.
Solid job gains bolstered the case for the Federal Reserve to hold interest rates steady.
Fed funds futures traders are now pricing in a 50-basis-point rate cut this year, starting October.
Meanwhile, Trump announced that letters specifying tariff rates on imports would begin being sent out Friday, signaling a shift from earlier pledges to negotiate individual trade deals.
Non-yielding bullion, considered a safe-haven asset during geopolitical and economic uncertainties, tends to perform well in a low-interest-rate environment.
On Ukraine, Trump said a phone call with Russian President Vladimir Putin yielded no progress in resolving the conflict, while the Kremlin stated that Moscow would continue addressing the "root causes" of the crisis.
Platinum prices have limited room to rise further after a record quarterly rally, analysts and traders said, with Chinese imports expected to soften and South African output likely to recover against a backdrop of still-muted auto sector demand.
Spot silver fell 0.3 per cent to US$36.73 per ounce, platinum rose 0.8 per cent to US$1,378.30 and palladium was up 0.1 per cent at US$1,137.94. All three metals were headed for weekly gains.
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Malay Mail
11 minutes ago
- Malay Mail
Ostensible ceasefire in Gaza, real and fictional, has made the ARF more important than ever — Phar Kim Beng and Lutfy Hamzah
JULY 4 — The current state of international diplomacy is being shaped not by declarations etched in treaties, but by gestures and optics that straddle the line between the real and the imagined. The case of the ostensible ceasefire in Gaza is a glaring example. Negotiated under the auspices of President Donald Trump — now in his second non-consecutive term as the 47th President of the United States — the ceasefire proposal is not yet enforceable, but its influence is already far-reaching. It has changed travel plans, softened diplomatic tensions, and — perhaps most importantly — repositioned Southeast Asia's role in global diplomacy. What's unfolding is a paradox of modern diplomacy: an undeclared ceasefire that, despite not being real in military terms, is already reshaping geopolitical realities. For the upcoming Asean Regional Forum (ARF) in Kuala Lumpur, Malaysia, this fiction has provided a stage for reality to emerge. A ceasefire both real and fictional Despite ongoing Israeli airstrikes and continued resistance by Hamas in the Gaza Strip, US Secretary of State and National Security Advisor Marco Rubio has spoken publicly of a proposed 60-day ceasefire. According to the framework reportedly accepted in principle by Israel and now under review by Hamas, this temporary truce would involve a staged release of hostages and prisoners, reduction of Israeli troop presence in populated areas, and the facilitation of humanitarian aid through Egypt and Qatar. But even as talks continue, Israeli bombs have not stopped falling on Gaza — particularly in Khan Younis and Rafah — and civilian casualties continue to mount. Human rights groups and UN officials have labelled the situation not only a humanitarian catastrophe but also an example of what one UN Special Rapporteur recently called an 'economy of genocide.' Hence, the ceasefire remains an 'ostensible' one: a hopeful diplomatic façade masking an unrelenting ground reality. Yet fiction has its uses. This very illusion of a truce has allowed diplomatic momentum to shift from crisis management in the Middle East to strategic planning in the Indo-Pacific. And it has changed the itinerary of one of the world's most powerful diplomats. Israeli bombs have not stopped falling on Gaza — particularly in Khan Younis and Rafah — and civilian casualties continue to mount. — AFP pic Rubio postpones East Asia trip — but with intent Originally scheduled to travel to Japan and South Korea in the first week of July, Secretary Rubio abruptly cancelled both visits. Officially, the reason was to focus on the Middle East. But analysts have been quick to note that this decision had additional advantages for both Japan and South Korea — especially given the domestic volatility in both countries. In Japan, Prime Minister Ishiba Shigeru is grappling with the possibility of an electoral backlash in the Upper House election on July 20. Trade negotiations with the United States have stalled over issues such as tariffs on automobiles, digital services, and agriculture. A visit from Rubio, carrying the pressure of the Trump administration's new economic doctrine, could have forced Ishiba into public concessions that would weaken his domestic credibility. As Sheila Smith of the Council on Foreign Relations aptly noted, Rubio's decision to bypass Tokyo was 'fortuitous'. In South Korea, President Lee Jae-Myung faces a faltering economy. The Bank of Korea has slashed its 2025 GDP forecast to just 0.8 per cent. Rumours of a US withdrawal of 4,500 troops from the peninsula have also created anxiety in Seoul. Lee is in no position to confront the twin challenges of economic downturn and American strategic retrenchment. Rubio's decision to forgo a visit removes at least one political headache from the Korean leader's immediate horizon. Asean Regional Forum as a strategic pivot The geopolitical beneficiary of all this is the 31st Asean Regional Forum (ARF), scheduled for July 9 to 11 in Kuala Lumpur. With Rubio confirmed to attend in his dual role, the ARF has been catapulted into relevance. No longer a 'talk shop', the ARF has become the multilateral venue for serious side-bar conversations between Washington, Beijing, Tokyo, Seoul, Riyadh, Doha, and Jakarta. Rubio's presence will lend heft to the ARF, but more importantly, it reflects a US foreign policy recalibration. Under Trump's renewed leadership, Washington is taking a harder, transactional approach to alliances, but also an increasingly pragmatic stance toward regional diplomacy. The multilateral format of the ARF offers cover for difficult conversations without the bilateral optics that can inflame domestic politics. Strategic relief for Muslim-majority South-east Asia For the Group Chair of Asean — Malaysia — and for preponderantly Muslim countries like Indonesia and Brunei, the ostensible ceasefire in Gaza offers strategic relief. Since October 2023, Muslim-majority governments in South-east Asia have been under immense domestic pressure to condemn Israeli actions, suspend economic relations with Israel, and vocally support the Palestinian cause. However, as state actors, these governments must navigate a delicate balance: staying true to public sentiment while maintaining geopolitical neutrality. The proposed ceasefire, though not yet implemented, grants them a temporary reprieve. It allows Asean Muslim-majority states to shift the regional narrative back toward development, security, and digital transformation. For Malaysia, this moment is particularly consequential. As ARF host and Asean Chair, Prime Minister Anwar Ibrahim has the rare opportunity to preside over an Indo-Pacific security dialogue at a time of extreme global flux. With Rubio present, the spotlight is firmly on Kuala Lumpur. This enables Anwar to reassert Malaysia's civilisational diplomacy — grounded in Islamic moderation and Asian consensus — as a bridge between the Global North and Global South. The return of Trump: Consolidating global recalibration All of this unfolds against the backdrop of Donald Trump's aggressive political reassertion. Since assuming the presidency for a second time in January 2025, Trump has pressed forward with what his aides call the 'Golden Age' doctrine. This includes the recent passage of the 'Big, Beautiful Bill', which slashes social spending while locking in tax cuts and expanding defence budgets. The US Supreme Court has also strengthened executive power, granting Trump leeway unseen since the Reagan era. On the foreign policy front, Trump has approved surgical strikes on Iranian and Houthi military targets, even as he pushes peace negotiations in Gaza. The contradictory nature of these moves — bombing while brokering — mirrors the duality of the Gaza ceasefire it self: part illusion, part strategy. It is precisely this context that makes the ARF more important. For South-east Asia, a region often caught in the crossfire of US-China rivalry, the ARF offers a rare moment of regional autonomy. With global attention diverted to the Middle East, and bilateral diplomacy in Northeast Asia on hold, Asean must seize the moment to reassert its relevance. Conclusion: Fiction with consequences The ostensible ceasefire in Gaza may be fictional in military terms, but its diplomatic impact is already deeply real. It has shifted attention from bilateral pressure points in Japan and South Korea to multilateral engagement in Southeast Asia. It has relieved Muslim-majority governments in Asean from having to respond daily to the moral outrage of Gaza. And most importantly, it has turned the Asean Regional Forum into a newly relevant stage for strategic dialogue in the Indo-Pacific. In a world where perception often precedes policy, the fiction of peace may well be the prelude to real stability. For Malaysia and the rest of Asean, this is a chance not to be missed. * Phar Kim Beng, PhD, is the Director of the Institute of Internationalization and Asean Studies (IINTAS) at IIUM, and Lutfy Hamzah is a Senior Research Fellow at IINTAS. ** This is the personal opinion of the writers or publication and does not necessarily represent the views of Malay Mail.
New Straits Times
43 minutes ago
- New Straits Times
China's intense EV rivalry tests Thailand's local production goals
BANGKOK: Hyper-competition in China's electric vehicle sector is spilling over to its biggest market in Asia, Thailand, as smaller players struggle to compete with dominant BYD, putting ambitious local production plans at risk. Neta, among the earliest Chinese EV brands to enter Thailand in 2022, is an example of a struggling automaker finding it difficult to meet the requirements of a demanding government incentive programme meant to boost Thai EV production. Under the scheme, carmakers are exempt from import duties, but were obligated to match import volumes with domestic production in 2024. Citing slowing sales and tightening credit conditions, carmakers asked the government to adjust the scheme and the 2024 production shortfall was rolled over into this year. Neta has said that it cannot produce the required number of cars locally and the government has withheld some payments to the EV maker, said Excise Department official Panupong Sriket, who received a complaint filed last month by 18 Neta dealers in Thailand seeking to recover over 200 million baht (US$6.17 million) of allegedly unpaid debt. The complaint, a copy of which was reviewed by Reuters, also detailed missed payments by Neta related to promised support for building showrooms and after-sales service. "I stopped ordering more cars in September because I sensed something was wrong," said Neta dealership owner Saravut Khunpitiluck. "I'm currently suing them." Neta's parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. Neta and its Chinese parent did not respond to Reuters' requests for comment. MARKET SHARE DECLINE Neta's share of Thailand's EV market peaked at around 12 per cent of EV sales in 2023 when the industry was growing, according to Counterpoint Research data, with BYD having a 49 per cent share that year. In Thailand, a regional auto production and export hub, Chinese brands dominate the EV market with a combined share of more than 70 per cent. The number of Chinese EV brands has doubled in the last year to 18, placing pressure on those that lack the reach of BYD, which has taken over from Tesla as the world's biggest EV maker. In the first five months of this year, new registration of Neta cars - a proxy for sales - slumped 48.5 per cent from the prior year and its share of EV registrations was down to 4 per cent, according to government data. "Neta's downturn in Thailand reflects the fragility of second-tier Chinese EV brands both at home and abroad," said Abhik Mukherjee, an automotive analyst at Counterpoint Research. "Intense price competition and the scale advantages of dominant players have made survival increasingly difficult for smaller companies, particularly in export markets, where margins are slim and robust after-sales support is essential." In Thailand, Neta's biggest international market, it sells three models, with the cheapest Neta V-II Lite priced at 549,000 baht (US$16,924) before discounts, compared to market leader BYD's entry-level Dolphin model that is priced at 569,900 baht. Thailand's domestic auto market has become increasingly competitive amid a sluggish economy. "Some Chinese brands have slashed prices by more than 20 per cent," said Rujipun Assarut, assistant managing director of KResearch, a unit of Thai lender Kasikornbank. "Pricing has become the main strategy to stimulate buying." China's EV overcapacity and price war have pushed automakers to expand abroad, but markets like Thailand are now mirroring the same hyper-competitive pressures, exposing smaller firms to similar risks. 'NO CONFIDENCE' Three years ago, Thailand unveiled an ambitious plan to transform its car industry, long dominated by Japanese majors like Toyota and Honda, to ensure at least 30 per cent of its total auto production was EVs by 2030. The country, which exports about half of its auto output, has drawn more than US$3 billion in investments from a clutch of Chinese EV makers, including Neta, who were partly lured to Southeast Asia's second-largest economy by the government incentive scheme. "Neta's case should give the Thai policymakers pause," said Ben Kiatkwankul, partner at Bangkok-based government affairs advisory firm, Maverick Consulting Group. Last December, after a sharp sales contraction, Thailand's Board of Investment gave EV makers an extension to the initial local production timeline to avoid oversupply and a worsening price war. Under the original scheme, local EV production in 2024 was required to match each vehicle imported between February 2022 to December 2023 or the automaker would incur hefty fines. Car manufacturers avoided those fines with the extension carrying over unmet production into this year, but at a higher ratio of 1.5 times imports. Thailand's Board of Investment did not respond to a Reuters request for comment. Siamnat Panassorn, vice president of the Electric Vehicle Association of Thailand, said Neta's issues were company-specific and did not reflect flaws in Thai policies or the market. But external shocks, including geopolitical tensions and the spectre of higher tariffs, have added to the pressure felt by the sector, he said. For Thai Neta dealers like Chatdanai Komrutai, the crisis is deepening. The brand's car owners have taken to social media in droves to share maintenance issues and limited after-sales support and a consumer watchdog agency is inspecting some of those complaints. "Selling cars is difficult right now," Chatdanai said. "There's no confidence."
Daily Express
an hour ago
- Daily Express
Zaharudin serves Sim legal notice, threatens RM1.5 million defamation suit
Published on: Friday, July 04, 2025 Published on: Fri, Jul 04, 2025 By: Faiz Zainudin, FMT Text Size: DAP deputy secretary-general Steven Sim said last week that he was ready to face Sungai Buloh PAS chief Zaharudin Muhammad in court. PETALING JAYA: Sungai Buloh PAS chief Zaharudin Muhammad has served a letter of demand on Steven Sim following criticism by the DAP deputy secretary-general over a Facebook post related to the promotion of a Chinese officer in the armed forces. In the letter dated July 3, issued by legal firm Nur Maidin & Co, Zaharudin demanded that Sim retract his allegedly defamatory remarks and issue a public apology, failing which he said the DAP leader would be sued for RM1.5 million. Advertisement 'Our client hereby demands the sum of RM1.5 million as fair and just compensation for your defamatory statements. 'Our client demands that you comply with the remedial actions immediately and in any event, no later than seven days from the date of this letter,' the lawyers said. Sim said last Thursday that he was ready to go to court to defend his criticism of Zaharudin, who described the comments by the human resources minister on his Facebook post as prejudicial. In his post, Zaharudin had speculated that Malaysia could see its first prime minister of Chinese descent in the next 30 to 40 years. Zaharudin, the son-in-law of PAS president Abdul Hadi Awang, also uploaded a screenshot of a news report about Johnny Lim's promotion which he said was only for illustrative purposes. The post, which was subsequently deleted, prompted accusations of racism from several quarters and criticism, including from Zaharudin's own party. Sim was among those who had called for Zaharudin to be investigated. He accused Zaharudin of fanning racial sentiments and said that he had merely spoken out against racism when criticising him. Zaharudin said he travelled from Kuala Lumpur to Sim's parliamentary service centre in Bukit Mertajam, Penang, yesterday to personally deliver the letter of demand, but was unable to do so as the office was closed. 'I went to the Bukit Mertajam MP's service centre but unfortunately, no one was there. 'He (Sim) accused me of insulting the armed forces, of being racist, and more. I've sent the letter and am now awaiting his public apology. My lawyer will also follow up by sending it via email,' he told FMT. Zaharudin also challenged Sim to a public debate on the Malaysia My Second Home programme, which he said was the actual issue he had intended to raise – not the alleged questioning of the Chinese lieutenant-general's promotion. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
