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The Star
3 days ago
- Business
- The Star
As Musk exits, he sees his projects unraveling, inside and outside government
WASHINGTON: A Starship spun out of control in suborbital flight on Tuesday, failing to meet critical testing goals set by SpaceX in its plans for a mission to Mars. A poll released last week showed the national brand reputation for Tesla, once revered, had cratered. And later that same day, House Republicans passed a bill that would balloon the federal deficit. It has been a challenging period for Elon Musk, the world's richest man, who not long ago thought he had conquered the private sector and could, in short order, do the same with the federal government. That all ended Wednesday evening with his announcement he is leaving the Trump administration. 'As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending,' Musk wrote on X, his social media platform. The mission of the program he called the Department of Government Efficiency 'will only strengthen over time as it becomes a way of life throughout the government,' he added. Musk's departure comes on the heels of a ruling from a federal judge in Washington on Wednesday questioning Musk's initial appointment as a temporary government employee and, by extension, whether any of his work for DOGE was constitutional. 'I thought there were problems,' Musk said in a recent interview with The Washington Post , 'but it sure is an uphill battle trying to improve things in DC, to say the least.' Growing conflicts with Trump Musk's role as an omnipresent adviser to President Donald Trump began to wane weeks ago, amid public backlash against DOGE's cuts to treasured government programs – from cancer research to the National Park Service – and after Trump bucked Musk's counsel on economic policy, launching a global trade war that jolted supply chains and financial markets. But the entrepreneur has grown increasingly vocal with criticism of the Trump administration this week, stating that a megabill pushed by the White House proposing an overhaul to the tax code risks undermining his efforts to cut government spending. Musk responded to a user on X, his social media platform, on Monday lamenting that House Republicans 'won't vote' to codify DOGE's cuts. 'Did my best,' he wrote. 'I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not decrease it, and undermines the work that the DOGE team is doing,' Musk explained further in an interview with CBS Sunday Morning later in the week. 'I think a bill can be big, or it can be beautiful, but I don't know if it can be both. My personal opinion.' The 'One Big Beautiful Bill Act' would increase border security and defence spending, renew tax cuts passed in 2017 and extend a new tax deduction to seniors, while eliminating green energy tax benefits and cutting US$1mil (RM4.26 trillion) in funding to Medicaid and the Supplemental Nutrition Assistance Program. Despite the cuts, the nonpartisan Congressional Budget Office estimates the bill would add so much money to the debt that Congress may be forced to execute cuts across the board, including hundreds of billions to Medicare, in a process known as sequestration. Hours after the CBS interview aired, the White House appeared to respond directly to Musk with the release of a press release titled 'FACT: One, Big, Beautiful Bill Cuts Spending, Fuels Growth.' And Trump responded directly from the Oval Office, noting Democratic opposition and the challenges of unifying a fractious GOP caucus. Negotiations with the Senate will result in changes to the legislation, Trump said. 'My reaction's a lot of things,' Trump said. 'I'm not happy about certain aspects of it, but I'm thrilled by other aspects of it.' 'That's the way they go,' he added. 'It's very big. It's the big, beautiful bill.' Cuts in question It is unclear whether Musk succeeded in making the government more efficient, regardless of what Congress does. While the DOGE program originally set a goal of cutting US$2 trillion (RM8.52 trillion) in federal spending, Musk ultimately revised that target down dramatically, to US$150bil (RM640bil). The program's 'wall of receipts' claims that US$175bil (RM746bil) has been saved, but the Treasury Department's Bureau of the Fiscal Service has documented an increase in spending over last year. 'DOGE is just becoming the whipping boy for everything,' Musk said in the Post interview this week. 'So, like, something bad would happen anywhere, and we would get blamed for it even if we had nothing to do with it.' Musk had been brought into the Trump administration designated as a special government employee, a position limited to 130 days that does not require Senate approval. But the legal case making its way through the Washington courtroom of US District Judge Tanya Chutkan is questioning the entire arrangement. The White House attempted to 'minimise Musk's role, framing him as a mere adviser without any formal authority,' Chutkan wrote, while granting him broad powers that gave him 'unauthorised access' to 'private and proprietary information,' like Social Security numbers and medical records. Those actions, Chutkan added, provide the basis for parties to claim Musk inflicted substantial injury in a legal challenge. 'I think I've done enough' Musk was scheduled to speak Tuesday after SpaceX's Starship test launch, setting out the road ahead to 'making life multiplanetary.' But he never appeared after the spacecraft failed early on in its planned trajectory to orbit Earth. Starship is supposed to be the vehicle that returns Americans to the moon in just two years. NASA, in conjunction with US private sector companies, is in a close race with China to return humans to the moon for the first time since the end of the Apollo program. But none of Musk's endeavours has suffered more than his electric car company, Tesla, which saw a 71% plunge in profits in the first quarter of 2025 and a 50% drop in stock value from its highs in December. An Axios Harris Poll released last week found that Tesla dropped in its reputation ranking of America's 100 most visible companies to 95th place, down from eighth in 2021 and 63rd last year. The reputational damage to Tesla, setbacks at SpaceX and limits to his influence on Trump appear to be cautioning Musk to step back from his political activity. 'I think in terms of political spending, I'm going to do a lot less in the future,' Musk told Bloomberg News on May 20, during the Qatar Economic Forum. 'I think I've done enough.' – Los Angeles Times/Tribune News Service
New Straits Times
5 days ago
- Business
- New Straits Times
Asean-BAC to establish Asean private markets association by year-end: Nazir Razak
KUALA LUMPUR: The Asean Business Advisory Council (Asean-BAC) is in the process of establishing the Asean Private Markets Association, expected to be formalised by year-end. Asean-BAC Malaysia chairman Tan Sri Nazir Razak said a pro tem committee comprising members from Malaysia, Singapore, Thailand and Indonesia is working towards the association's formal establishment. "The idea is to create a platform to advise governments on enhancing policies to develop the private markets industry, including venture capital and private equity, across Asean," he told reporters after delivering his welcoming address at the Asean Business Forum 2025 here today. Nazir said the association could help overcome market fragmentation issues and drive the region's industry development. "We estimate that up to US$60 billion (US$1 = RM4.26) in capital should be channelled to Asean private equity and venture funds, but certain reforms are needed to reduce market fragmentation and improve conditions for investment monetisation," he said. According to Nazir, the council conducted a research report with McKinsey, which shows Asean private markets are underdeveloped, estimated at only 0.5 per cent of gross domestic product (GDP), compared to the global benchmark average of 1.5 per cent of GDP. "The report shows that the private markets industry is extremely important to the economy but remains too small in Asean," said Nazir. On another note, Nazir said Asean stands at a pivotal moment and hopes the region can move forward with economic integration. "This year at Asean-BAC, our priorities and activities have been carefully designed to capture the essence of the current opportunities and challenges confronting us. "We have strived to facilitate dialogues, forge partnerships and propose actionable recommendations that will empower Asean businesses to capitalise on growing intra-regional collaboration, and to lead in adopting cutting-edge technologies and sustainable practices," he added.
Barnama
05-05-2025
- Business
- Barnama
Bursa Malaysia Opens Marginally Lower, But Turns Higher Thereafter
By Rosemarie Khoo KUALA LUMPUR, May 5 (Bernama) -- Bursa Malaysia opened marginally lower but turned higher on Monday, buoyed by the positive sentiment of fund inflows by foreign investors throughout last week, analysts said. At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.84 points to 1,544.33 from last Friday's close of 1,542.49. The benchmark index was 0.71 of-a-point easier at 1,541.78 at the opening bell. Turnover stood at 123.73 million shares worth RM65.76 million. Market breadth was positive, with 233 gainers outnumbering 90 decliners, 244 counters were unchanged, 1,778 untraded, and 27 suspended. Rakuten Trade Sdn Bhd's equity research vice-president Thong Pak Leng said investors were heartened by the return of foreign buying, which had seen unprecedented outflows since the beginning of 2025. He said that with the local bourse closing above the 1,540 mark last week, the benchmark index may re-test the 1,600 mark soon. 'As such, we believe the index will trend within the 1,540-1,555 range today. It is also worthwhile to note that the ringgit has strengthened to RM4.26 per US dollar,' Thong told Bernama.
The Star
05-05-2025
- Business
- The Star
Bursa Malaysia forges ahead on improving global trade outlook
KUALA LUMPUR: The upward momentum on Bursa Malaysia continued on Monday as there has been a swell of optimism that trade negotiations between the US and China are likely to kick off in the near term. At 9.05am, the benchmark FBM KLCI was up 2.84 points to 1,545.33, with the buying interest picking up where it left off last Friday. Wall Street closed off the week on a high note as the latest US payrolls report came in better than expected, signaling that the economy remained on firm ground. On the technical end of things, TA Securities Research noted that prices were showing signs of overheating following two weeks of positive recovery. "Short-term technical momentum indicators on the FBM KLCI are approaching overbought levels, implying that the local benchmark index could pause for a consolidation phase due to profit-taking interest." However, the research firm said weekly indicators remained bullish, signaling that the potential downside may be limited by hopes of a resolution to the ongoing US-China trade war. Rakuten Trade said in its market commentary it is heartened by the return of foreign buying, retracing the unprecedented outflows since the start of 2025. "As such, we believe the index to trend within the 1,540-1,555 range today. Finally, it is also worthwhile to note that the Ringgit has strengthened to RM4.26/USD1," it said. Engineering firm West River listed on the ACE Market today at a mild 0.5 sen premium over its initial public offering price at 39.5 sen. The share was the top traded with 21.15 million units changing hands. Other top traded stocks included SFP Tech, gaining 1.5 sen to 23.5 sen, while Nationgate added five sen to RM1.57.
Free Malaysia Today
05-05-2025
- Business
- Free Malaysia Today
Bursa starts lower but turns higher on positive sentiment
KUALA LUMPUR : Bursa Malaysia opened marginally lower but turned higher on Monday, buoyed by the positive sentiment of fund inflows by foreign investors throughout last week, analysts said. At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.84 points to 1,544.33 from last Friday's close of 1,542.49. The benchmark index was 0.71 of-a-point easier at 1,541.78 at the opening bell. Turnover stood at 123.73 million shares worth RM65.76 million. Market breadth was positive, with 233 gainers outnumbering 90 decliners, 244 counters were unchanged, 1,778 untraded, and 27 suspended. Rakuten Trade Sdn Bhd's equity research vice-president Thong Pak Leng said investors were heartened by the return of foreign buying, which had seen unprecedented outflows since the beginning of 2025. He said that with the local bourse closing above the 1,540 mark last week, the benchmark index may re-test the 1,600 mark soon. 'As such, we believe the index will trend within the 1,540-1,555 range today. It is also worthwhile to note that the ringgit has strengthened to RM4.26 per US dollar,' Thong added. Meanwhile, Wall Street ended broadly higher on Friday, buoyed by the better-than-expected non-farm payrolls for April, easing fears of a US recession. Unemployment remained at 4.2% while the US 10-year yield edged higher to 4.30%. Over in Hong Kong, the Hang Seng Index (HSI) ascended above the 22,500 level as sentiment was boosted by optimism over the potential trade talks between China and the US, coupled with strong earnings from technology giants like Xiaomi and Alibaba. Among heavyweights, Petronas Chemicals climbed 5.0 sen to RM3.47, Sunway, QL Resources, and Telekom added 3.0 sen each to RM4.82, RM4.83, and RM6.92, respectively, YTL Power International rose 2.0 sen to RM3.45, and YTL Corporation increased 1.0 sen to RM1.94. In active trade, West River grew half-a-sen to 39.5 sen, Sentoria was flat at half-a-sen, Nationgate rose 5.0 sen to RM1.57, OCR was half-a-sen lower at 3.5 sen, and Jiankun added half-a-sen to 3.0 sen. On the index board, the FBM Emas Index was 28.80 points firmer at 11,518.18, the FBMT 100 Index appreciated 25.02 points to 11,282.26, and the FBM Emas Shariah Index strengthened 33.43 points to 11,423.78. The FBM 70 Index jumped 82.25 points to 16,356.79, and the FBM ACE Index gained 20.40 points to 4,669.60. Across sectors, the Financial Services Index accumulated 18.86 points to 18,259.81, the Industrial Products and Services Index rose 0.83 of-a-point to 153.12, the Energy Index put on 1.35 points to 696.32, and the Plantation Index grew 12.73 points to 7,296.50.
