Latest news with #OverseaChineseBankingCorp
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Malaysian growth unexpectedly quickens despite trade risks
Malaysia's gross domestic product rose 4.5% in the April–June period from a year earlier. PETALING JAYA : Malaysia's economy grew faster than expected in the second quarter, driven by the services sector, even as the country contends with US President Donald Trump's rollout of global tariffs. Gross domestic product (GDP) rose 4.5% in the April-June period from a year earlier, according to advance estimates from the statistics department. That's higher than the 4.2% median estimate in a Bloomberg survey, and faster than the 4.4% expansion in the first three months of the year. The latest economic print may give breathing space to policymakers as they review their 4.5%-5.5% growth projection for 2025. Malaysia has been threatened with a 25% US import levy and officials are racing to negotiate the tariff lower before they take effect on Aug 1. Exports unexpectedly declined 3.5% in June from a year earlier, the statistics agency said in a separate statement. Analysts' median estimate was for an increase of 5.4%, according to a Bloomberg survey. Imports rose 1.2%, while total trade fell by 1.2%. The data suggests that the effect of frontloading of shipments to the US are wearing off, according to Lavanya Venkateswaran, analyst at Oversea-Chinese Banking Corp. 'Overall, we see the incoming data as mixed, suggesting weakening external demand amidst better domestic demand conditions,' she said. She maintained an annual GDP forecast of 3.9% growth, and expects another 25-basis-point cut in interest rates by the central bank this year. The central bank last week cut interest rates by a quarter point to preemptively support the economy, warning that 'the balance of risks to the growth outlook remains tilted to the downside'. Manufacturing growth slowed to 3.8% in the second quarter, from 4.1% in the first three months of the year, according to the statistics department. Growth in the services sector accelerated to 5.3%, from 5% in the previous three months, with key contributions from wholesale and retail trade, along with transportation and storage businesses. 'Malaysia's economy is estimated to have expanded by 4.4% in the first half of 2025,' the government agency said. The construction sector moderated, but still saw an 11% expansion, the sixth straight double-digit quarterly increase. The advance GDP estimates are based on available information from April and May, along with estimates. Preliminary GDP data, which will provide a detailed analysis of the second quarter, will be released on Aug 15.
Bloomberg
11-07-2025
- Business
- Bloomberg
OCBC CEO Helen Wong to Step Down With Tan to Be New Chief
Oversea-Chinese Banking Corp. Chief Executive Officer Helen Wong will step down at the end of this year, Singapore's second-largest lender said on Friday. Tan Teck Long, currently global wholesale banking head, will succeed her on Jan. 1, 2026, the bank said in a statement.
Bloomberg
08-07-2025
- Business
- Bloomberg
Great Eastern to Resume Trading After Delisting Bid Fails
Great Eastern Holdings Ltd. 's shares will resume trading in Singapore, after the insurer failed to win enough shareholder support for its delisting plan that was backed by Oversea-Chinese Banking Corp., according to people with knowledge of the matter. About 63.5% of the insurer's minority shareholders voted for a delisting but that fell short of the 75% threshold needed to take Great Eastern private, said the people who asked not to be identified as they were not authorized to speak publicly before an official announcement.
Free Malaysia Today
08-07-2025
- Business
- Free Malaysia Today
Great Eastern holders vote on US$704mil OCBC delist plan
Great Eastern Holdings Ltd's independent directors have advised shareholders to accept Oversea-Chinese Banking Corp's bid. (EPA Images pic) SINGAPORE : Oversea-Chinese Banking Corp's (OCBC) final attempt to fully control Great Eastern Holdings Ltd with its S$900 million (US$704 million) bid will be tested today, capping a two-decade quest by Singapore's second-largest lender to take over the insurer. OCBC is just 6.28% shy of complete ownership, and Great Eastern's minority shareholders will vote at an extraordinary general meeting (EGM) whether to delist the 117-year-old firm with an improved bid from the bank. If rejected, OCBC's so-called 'exit offer' will lapse, paving the way for the insurer's shares to resume trading. Acquiring Great Eastern, one of the largest insurers in Singapore and Malaysia, will boost OCBC CEO Helen Wong's strategy to build an integrated financial services group that will better capture growth in the region's booming wealth management sector. The insurer has total assets of more than S$100 billion with 16 million-plus policyholders, complementing the bank's business. 'The transaction is to streamline the group structure and we also think it opens up the potential to manage group capital more efficiently,' said Jayden Vantarakis, head of equity research for Southeast Asia at Macquarie Capital. 'Still, a full takeover would have a minimal impact on earnings or strategy as OCBC is already in control,' he said. Trading in Great Eastern's shares has been suspended since July 2024 after OCBC failed to secure a sufficient level for a delisting or compulsory acquisition with last year's offer. While the bank raised its bid by 17.8% last month to S$30.15 a share, the price is still at a discount to the insurer's 2024 embedded value of S$38.08 per share. That metric has been used to value insurers elsewhere and has been cited by resistant minority shareholders urging a higher offer. Great Eastern's independent directors have advised shareholders to accept OCBC's bid, which has been described by the firm's financial adviser EY as 'fair and reasonable'. The insurer has contributed an average of about S$700 million a year in net profit to OCBC over the past 10 years, translating to an average of about 15% of OCBC's annual net profit over this period, the bank has said. 'While delisting Great Eastern has been a long-term goal for OCBC, the bank is satisfied with its 93.72% stake, regardless of the outcome of the EGM,' it said in a statement last month. 'OCBC does not intend to launch another offer in the foreseeable future,' it added.
Bloomberg
07-07-2025
- Business
- Bloomberg
Great Eastern Holders to Vote on $704 Million OCBC Delist Plan
By and Chanyaporn Chanjaroen Save Oversea-Chinese Banking Corp. 's final attempt to fully control Great Eastern Holdings Ltd. with its S$900 million ($704 million) bid will be tested on Tuesday, capping a two-decade quest by Singapore's second-largest lender to take over the insurer. OCBC is just 6.28% shy of complete ownership, and Great Eastern's minority shareholders will vote at an extraordinary general meeting whether to delist the 117-year-old firm with an improved bid from the bank. If investors representing 75% of the shares present at the EGM reject that plan, OCBC's so-called 'exit offer' will lapse, paving the way for the insurer's shares to resume trading.
