Latest news with #BDI
Gulf Insider
5 days ago
- Business
- Gulf Insider
"Worse Than The 2008 Financial Crisis" – Germany Becomes A Nation Of Bankruptcy With No End In Sight
Germany is bracing for a continued surge in major insolvencies throughout 2025 and even 2026, according to a recent analysis by credit insurer Allianz Trade. This all comes after a disastrous 2024, which saw a record-breaking number of bankruptcies in the country. Allianz Trade forecasts an overall increase of 11 percent in corporate insolvencies in Germany this year, reaching approximately 24,400 cases. A further 3 percent rise to 25,050 cases is anticipated for 2026. These insolvencies put an estimated 210,000 jobs at risk across Germany. In the first quarter of this year, 16 large German companies—those with revenues of €50 million or more—filed for insolvency. While this is a slight decrease of three cases compared to the same period last year, it's double the number recorded in the first quarter of 2023. Milo Bogaerts, CEO of Allianz Trade in Germany, Austria, and Switzerland, expressed concern over the persistently high number of major insolvencies, attributing it partly to U.S. President Donald Trump's tariff policy. He warned that no respite is expected, even after 2024, which was a record-breaking negative year for insolvencies. 'Given the bleak economic outlook both in Germany and in global trade, and the many uncertainties caused by the tariff storm, we expect many major insolvencies and thus significant losses to continue in 2025,' Bogaerts stated. He added that these large-scale insolvencies will likely have a ripple effect on supplier companies, potentially creating 'particularly large holes in their coffers' and impacting supply chains. However, alarm bells are ringing across the country. The Federal Association of German Industry (BDI) published a declaration by more than 100 associations at the beginning of April where they directly addressed the ruling CDU and SPD. At the time, they were still working on a coalition agreement. The BDI stated: 'In the past few weeks, the economic situation has deteriorated dramatically. The facts are undeniable. Germany is in a serious economic crisis. A comparison with other countries shows that this crisis is primarily homemade.' The BDI is also apparently unhappy with the coalition's details on tax policy. 'In terms of tax policy, the coalition lags behind what is necessary. In the future, every scope must be used to relieve companies in order for the tax burden to quickly become internationally competitive,' said Tanja Gönner, BDI's general manager. 'The contract rightly formulates an ambitious modernization agenda for the state and administration, which must now also be followed by a determined implementation…. The bottom line is that we will measure the federal government by whether it will make the state more efficient and modernized.' 🇩🇪🚨 Ford Germany plans to cut 4,000 jobs as Berlin's economic disaster continues to unfold."The entire automotive industry is in crisis all over the world, in Europe and especially in Germany. This transition to electro-mobility is hitting us very, very hard." — Remix News & Views (@RMXnews) November 22, 2024 Click here to read more…
Fashion United
21-05-2025
- Business
- Fashion United
European Commission proposes regulatory relief for mid-sized businesses
Medium-sized companies are to be exempted from several EU requirements, according to a proposal by the European Commission. Among other things, this concerns exemptions under the General Data Protection Regulation and simplified regulations, which are intended to make stock exchange listings easier and less expensive, as the authority announced. It expects that companies will save 400 million euros in administrative costs per year through the simplifications. According to the Commission, companies with more than 250 employees are considered large companies under the current regulations and must comply with significantly more rules. Now, a new category of companies is to be introduced, which will have fewer than 750 employees and will have to comply with fewer regulations. According to the Commission, this would affect almost 40,000 companies in the EU. The project also requires a majority in the European Parliament and among the EU states. Company formations should become easier In a legally non-binding strategy, the Commission also calls for tackling the ten biggest problems of the European single market from the perspective of companies. According to the information, these include complicated company formations, complex EU regulations, limited recognition of professional qualifications, different regulations for packaging and differing national regulations for services. The Commission promises, among other things, to propose a so-called 28th regulation for European company law, which is intended to make it easier to set up companies. This should make it easier to set up companies digitally and to work throughout the EU according to common rules, for example in tax, labour and insolvency law. Industry sees good approaches The German Federation of Industries (BDI) sees good approaches in the plans from Brussels. BDI president Peter Leibinger announced that, above all, small and medium-sized enterprises in intra-European trade still face too many obstacles, which have often existed for 20 years. 'If these hurdles were removed, German industry could almost double its exports within Europe, according to estimates,' said Leibinger. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
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Business Standard
19-05-2025
- Business
- Business Standard
How China's slow approval of rare earths is threatening supply chains
China's sluggish approval of rare earth exports is threatening to disrupt global supply chains, the Financial Times reported, with exporters and industry bodies warning that delays are already affecting European manufacturers and could soon hit other major economies including India. While the Chinese commerce ministry has started granting some export licences, reportedly to select European-bound shipments, the pace is far too slow to meet industrial demand. 'The window to avoid significant damage to production in Europe is rapidly closing,' Financial Times quoted Wolfgang Niedermark of the Federation of German Industries (BDI) as saying. An unnamed European executive based in China described the delays as 'untenable' and said officials had 'underestimated' the operational requirements of enforcing the restrictions. Why did China impose export controls on its rare earth minerals? Beijing introduced new export controls in early April on seven rare earth elements and related permanent magnets, materials crucial for the production of electric vehicles (EVs), wind turbines, fighter jets, and advanced electronics. The move followed sweeping US tariffs, announced by President Donald Trump. While tariffs were announced on all US trade partners, China has been especially targeted by the Trump administration's new trade policy. The tariff announcement marked an escalation in ongoing trade tensions between the two powers. How is China controlling rare earth mineral exports? The restrictions come under China's rights as a signatory to the international Non-Proliferation of Nuclear Weapons Treaty, which allows it to regulate exports of "dual-use" items. The applies to products that can be used for both civilian and military applications. Also Read How does China export restrictions impact global supply chains? Rare earth elements like terbium, dysprosium, and samarium are critical to modern industry. They are essential for manufacturing everything from electric motors and MRI scanners to laser surgery devices and precision-guided military systems. But it is not their scarcity that makes them so strategically important — it's China's grip over the supply chain. While rare earths are found in several countries, China accounts for 61 per cent of global production and 92 per cent of processing, according to the International Energy Agency. Processing rare earths is expensive and environmentally hazardous due to their radioactive by-products, which has led most other countries to scale back or abandon domestic production. As a result, the world is highly reliant on China not just for supply, but also for refinement and distribution. By tightening its control over exports, Beijing is effectively deciding who can access these essential materials and when. Which other countries can process rare earth minerals? While Japan has begun reviving its rare earth industry, the US and othe rnations, including India, remain deeply dependent on Chinese exports. Trump in April ordered the US Commerce Department to identify strategies for boosting domestic production, but progress has been slow. Impact on auto industry Global automakers, including Tesla and Volkswagen, as well as US defence contractors like Lockheed Martin, have already raised concerns about the export delays. With four Chinese rare earth magnet producers, some of whom supply global giants like Volkswagen, recently granted export licences, there is hope of some relief. But experts warn that these approvals are selective and fail to address the broader risk of disruption. Impact of China's rare earth minerals on India The pressure is also being felt in India, where EV manufacturers are facing potential shortages of rare earth magnets used in electric motors, power steering systems, and braking units. Industry sources told The Indian Express that Chinese suppliers are now demanding undertakings that the magnets won't be used for military purposes. There is also growing pressure on Indian carmakers to buy entire electric motor assemblies from China, rather than sourcing just the magnets, as a way to bypass red tape. These magnets, especially neodymium-iron-boron (NdFeB) magnets, are critical to EV performance due to their strength and efficiency. Any disruption in their supply could delay production timelines and increase costs, particularly damaging for India's price-sensitive EV sector.
New Straits Times
13-05-2025
- Business
- New Straits Times
BDI's R1.5b must be catalyst, not a wastage
LETTERS: The RM1.5 billion Business Digitalisation Initiative (BDI) by the Malaysia Digital Economy Corporation (MDEC) stands as a transformative opportunity to propel Malaysia's micro, small, and medium enterprises (MSMEs) into the digital era. However, for this ambitious investment to truly create a digitised society and deliver long-term national benefits, it must be executed in an organised and systematic business manner. Malaysia's MSMEs are vital to the nation's economy, yet over 60 per cent remain at a basic level of digital adoption, with most lacking advanced technological integration. While the BDI's scale and intent are commendable, simply distributing funds or focusing on technology adoption for its own sake risks inefficiency and wasted potential. A technology-first approach, without clear business objectives, often leads to operational silos and mismatched solutions that do not address the real challenges MSMEs face-market access, customer acquisition, and sustainable revenue growth. Technology should not be seen as an end goal, but as an enabler of business transformation. Its true value emerges when it is embedded within comprehensive business strategies that solve pressing problems and unlock new opportunities. For MSMEs, this means leveraging digital tools to streamline operations, meet customer expectations, and integrate into broader supply chains-delivering on time, at optimal cost, and with high quality. Many digitalisation efforts focus on surface-level solutions like e-commerce platforms or online marketing, often overlooking the fundamentals of business process improvement and capacity building. When digital initiatives are driven by technical features rather than actual business needs, MSMEs risk adopting systems that look advanced but fail to generate meaningful impact. To ensure the RM1.5 billion achieves its intended outcomes, the grant must be administered through a phased, business-centric framework, with the following core components identified: Phase 1: Diagnostics and Targeting: Conduct nationwide assessments to identify MSMEs' core challenges, especially in customer acquisition and market access. Target strategic sectors and map out process improvements, capacity building, and regulatory barriers that hinder MSME participation in larger supply chains. Phase 2: Tailored Digital Solutions: Allocate funding only where MSMEs have clearly defined business challenges that digital solutions can address. Enhance grant mechanisms to support meaningful participation in digital marketplaces, including customer support, social media integration, and B2B supply chain systems. Phase 3: Measured, Scalable Implementation: Roll out sector-specific, incremental digital adoption based on MSME needs. Establish robust monitoring systems to track not just adoption rates, but actual business outcomes-growth, productivity, and competitiveness. The BDI's strength lies in its "whole-of-nation" approach, leveraging public-private partnerships with financial institutions, digital banks, P2P lenders, and local service providers. This collaborative model ensures MSMEs have access to comprehensive support-funding, digital tools, and capacity-building initiatives-tailored to their transformation journey. Accountability is crucial. Every ringgit must be tied to measurable improvements in business growth, market access, and long-term competitiveness. Transparent metrics and ongoing evaluation will ensure the initiative remains focused on real outcomes, not just digital adoption statistics. A blanket, unsystematic approach to digitalisation risks squandering resources and missing the opportunity for real economic transformation, Malaysia is always known for this kind of wastages. Thus, the BDI must be more than a subsidy scheme; it must be a catalyst for sustainable, inclusive growth. By deploying the RM1.5 billion in a structured, business-driven manner, Malaysia can empower its MSMEs to thrive in the digital economy and lay the foundation for a truly digitised society-one where technology serves as a powerful enabler of prosperity for all. In summary, the RM1.5 billion grant must be managed with discipline, guided by business needs, and anchored in accountability. Only then can it deliver the long-term vision of a dynamic, competitive, and digitised Malaysia. Managing Director
The Star
06-05-2025
- Business
- The Star
SMEs still lagging in digitalisation journey, says Gobind
KUALA LUMPUR: Most Malaysian small and medium enterprises (SMEs) are still trailing behind larger enterprises in their digitalisation journey, says Gobind Singh Deo ( pic ). The Digital Minister said that to address the issue, the ministry is working hard through initiatives like the Business Digitalisation Initiative (BDI), recently launched by the Malaysia Digital Economy Corporation, to help SMEs accelerate the adoption of digital technology in their operations. 'The government has also set aside RM50mil for digital matching grants for SMEs and digital grants for vendors. 'Global technology companies based in Malaysia, such as Microsoft and Alibaba Cloud, are working closely with the government to assist SMEs through multiple programmes,' he said in his keynote address at the CTOS SME Biz Day 2025 yesterday. Gobind said the government is also committed to ensuring that SMEs are prioritised in navigating current geopolitical challenges with funds allocated for this purpose, as announced by Prime Minister Datuk Seri Anwar Ibrahim in Parliament on Monday. He said the government's initiatives have always been designed to provide SMEs with the resources, knowledge and support they need to navigate the digital landscape effectively. 'Our vision is to create a digitally empowered Malaysia, where every business, regardless of size, can thrive in our national digital ecosystem. 'We are committed to fostering an environment that supports innovation, digital adoption and, ultimately, building up Malaysia as a strong digital nation,' he said, Bernama reported. On Monday, Anwar announced that the government has agreed to increase government guarantees under the Business Financing Guarantee Scheme by RM1bil to assist SMEs affected by the recent United States' reciprocal tariff announcement in securing loans from commercial banks. Additionally, another RM50mil will be allocated to the Malaysia External Trade Development Corporation to expedite efforts for SMEs to explore new markets through participation in international trade expos and exhibitions, as well as facilitating business matching with foreign buyers.
