Latest News from Business Times
Business Times
9 minutes ago
- Business
- Business Times
NTT Docomo to buy SBI's net bank for 420 billion yen in cut-throat market
[TOKYO] NTT Docomo is buying SBI Holdings' online bank in a 420 billion yen (S$3.7 billion) deal to shore up the Japanese mobile carrier's financial offerings in a hyper-competitive market. Nippon Telegraph and Telephone's mobile unit will launch a tender offer for SBI Sumishin Net Bank, offering 4,900 yen a share – a 49 per cent premium to the online bank's closing price on May 28. At the conclusion of the deal, NTT Docomo aims to own 65.81 per cent of the online bank, which will delist. Sumitomo Mitsui Banking Corp will continue to hold 34.19 per cent of SBI Sumishin, the companies said in a statement on Thursday (May 29). Shares of SBI Sumishin surged by a record 21.3 per cent after local outlets including the Nikkei reported the news earlier. NTT Docomo's stock price rose 0.6 per cent, while SBI Holdings gained 7.8 per cent. The move is part of a capital alliance between the state-backed telecom group and SBI Holdings, where NTT Docomo will invest 110 billion yen in the venture capital fund operator for a 8.25 per cent stake. NTT Docomo and SBI Holdings will co-develop new services from asset management to insurance, while NTT Data Group will provide support for SBI Holdings' financial services, executives said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up NTT Docomo, which has close to half of Japan's mobile phone market, has been slow to bolster its financial asset offerings and services compared with its rivals. That is as nimbler competitors have gradually eaten into its dominant share. Japan's third-largest carrier SoftBank made the country's biggest payments app PayPay a subsidiary in 2022, and recently announced a three-way partnership with Sumitomo Mitsui Banking's credit card operations. No 2 mobile provider KDDI has its own financial unit. Online shopping mall operator Rakuten Group has started a mobile unit, seeking to expand the reach of its lucrative financial arms via the telecom business. The acquisition targets existing NTT Docomo customers rather than attract new ones, and is a defensive move to prevent cancellations, said Naoki Fujiwara, senior fund manager at Shinkin Asset Management. If the carrier can expand into areas like investment trusts, it may create additional revenue, he added. BLOOMBERG
Business Times
22 minutes ago
- Business
- Business Times
Asean-BAC to launch private-markets association in bid to attract US$60 billion regional funding
[KUALA LUMPUR] The Asean Business Advisory Council (Asean-BAC) plans to establish a regional private-markets association by year end to unlock as much as US$60 billion in private equity and venture funding to support small and medium-sized enterprises and startups across South-east Asia. Speaking at the Asean Business Forum 2025, Asean-BAC Malaysia chairman Nazir Razak said the move comes amid growing concerns that Asean's private-capital ecosystem remains underdeveloped, representing just 0.5 per cent of the region's gross domestic product – far below the global average of 1.5 per cent. He noted that the council has been working with the governments of Malaysia, Singapore, Thailand and Indonesia to formalise the Asean Private Markets Association. The entity will serve as a platform to advise governments on policy reforms aimed at unlocking long-term capital. 'The idea is to help shape policies that support the growth of private markets in Asean,' Nazir told reporters on Thursday (May 29) after delivering his keynote address. 'Without reforms, capital will remain fragmented and difficult to monetise.' Beyond private markets, Asean-BAC is also pushing for the creation of an Asean Business Entity – a proposed classification that would allow companies to operate across member states with greater flexibility, said Nazir. He added that the new framework would facilitate cross-border outsourcing and mobility of talent, helping businesses tap the region's collective advantages. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Despite the ambitious plans and growing investor interest, panellists at the forum acknowledged that execution remains a major hurdle. 'When I mention the lack of execution in Asean, I'm not just pointing at governments or the regional organisation,' pointed out Nazir. 'The private sector has also fallen short. Are we doing the right deals – whether in mergers and acquisitions, supply chains, or trade? I don't think so.' He added that the momentum behind regional corporate champions has slowed since the late 2000s, raising questions about whether Asean is still fulfilling its potential to attract global capital. The evolving consensus-based model Khairy Jamaluddin, director of CGS International, said Asean's traditional model of consensus-based decision-making has long been a double-edged sword. 'There is no agreement until everyone agrees,' he noted, adding that such a move has slowed progress in many areas. However, Khairy said the region is beginning to evolve beyond rigid consensus. 'We're starting to see a 'consensus-plus' approach, where like-minded countries move forward together even if the full bloc isn't on board.' OCBC chief economist Selena Ling said this approach is already bearing fruit. She cited the Asean Power Grid and the Johor-Singapore Special Economic Zone (JS-SEZ) as examples of cross-border initiatives that demonstrate scalable cooperation among willing member states. 'Asean cooperation may be slow, but it is steady,' Ling noted. 'Intra-region trade is still relatively low – around 21 per cent of total trade, compared to 60 per cent in the European Union – but there's growing potential through cross-border investments and government-to-government partnerships.' The JS-SEZ, launched earlier this year, has created new economic opportunities for both Malaysia and Singapore, and is now being viewed as a potential template for broader regional collaboration. Singapore plays a key role in region In a separate panel discussion, Rachel Eng, council member of Asean-BAC Singapore, said the region's cohesion will be critical in navigating rising geopolitical and economic challenges. 'Singapore stands together with our Asean brothers and sisters. If others in the region suffer, we suffer too,' she added. Eng pointed out that while Singapore remains the largest recipient of foreign direct investment in the region, a substantial portion of that capital is routed to other Asean countries. She highlighted Singapore's strengths as an efficient financial centre, citing its 80-plus double-taxation agreements. 'It's very easy to set up a business here… we have no exchange controls, and our system is entirely rules-based. Yet, much of this capital finds its way into Malaysia, Vietnam, Indonesia, and our other neighbours.' Eng sees Singapore playing a critical role in facilitating stronger investment flows to Asean. 'Regardless of tariffs, we will remain open, transparent, and committed to deepening our financial ties with the region.' During the forum, China Galaxy Securities (CGS) and CGS International Securities Group signed five strategic memorandums of understanding with regional partners. Among them was a deal with Bursa Malaysia and Shanghai-based Fullgoal Asset Management to facilitate the listing of foreign-underlying exchange-traded funds on Bursa Malaysia, offering local investors broader exposure to global markets. CGS and CGS International also signed a letter of intent for the China-Asean Investment Programme aimed at establishing a private-equity fund to invest in high-growth sectors including healthcare, semiconductors, renewable energy and agriculture. The fund, with Malaysia as a key regional anchor, is designed to facilitate the transfer of technology and industry expertise from China to Asean.
Business Times
22 minutes ago
- Business
- Business Times
IHH Healthcare Q1 profit falls 33% to RM514 million on exceptional items
[SINGAPORE] Integrated healthcare operator IHH Healthcare on Thursday (May 29) posted a 33 per cent fall in net profit to RM514 million (S$156.3 million) for its first quarter ended Mar 31, from RM768 million the year before. The drop came mainly from a lower net monetary gain from the application of MFRS 129, and the recognition of a deferred tax credit in 2024 arising from the revaluation of certain assets in Turkey, which was granted by the Turkish government, the mainboard-listed group said in a bourse filing. MFRS 129 requires financial statements of an entity, the functional currency of which is the currency of a hyperinflationary country, to be restated as the measuring unit current at the end of the reporting period. Excluding exceptional items, IHH's net profit rose 5 per cent to RM425 million on core operational growth, from RM403 million the year before. Revenue for the quarter rose 6 per cent to RM6.3 billion, from RM6 billion the year before. This was mainly attributable to increased contributions from Malaysia, Turkey and Europe, despite the Ramadan holiday period affecting many markets in Q1 2025, the group said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Earnings per share stood at 5.83 sen for the quarter, down from 8.72 cents in the year-ago period. No dividend was declared for the quarter, unchanged from a year ago. The group noted rising demand for healthcare domestically and across its key markets – which include Malaysia, Singapore, Turkey, India and Greater China – and 'continued revenue growth' driven by healthcare megatrends. It added that it will focus on driving profitability and sustaining a healthy return on equity, while maintaining prudent capital management and mitigating inflationary and interest-rate pressures. To future-proof its business, the group has initiated a multi-year transformation plan with seven focus areas: clinical excellence; patient experience; new care models; operational excellence; payor and regulator engagement; employee and doctor value proposition; and the advancement of technology, data and artificial intelligence. Dr Prem Kumar Nair, group chief executive officer of IHH Healthcare, attributed the group's 'resilient operational performance' in Q1 2025 to an improvement in in-patient volumes and higher revenue intensity across some markets. The group remains on track to achieve its goal of expanding capacity by 4,000 beds, with 1,000 beds already added in 2024, he added. Shares of IHH Healthcare closed flat at S$2.09 on Thursday, before the results were announced.
Business Times
37 minutes ago
- Politics
- Business Times
China's defence minister Dong Jun to skip major Asian security summit
[BEIJING] China's defence minister Dong Jun will skip a major Asian security forum this weekend at which US Defence Secretary Pete Hegseth will make his debut, instead sending a lower-level academic delegation, the ministry said on Thursday (May 29). A delegation from the People's Liberation Army National Defence University will attend the Shangri-La Dialogue in Singapore from May 29 to June 2, spokesperson Senior Colonel Zhang Xiaogang said at a press conference. Zhang did not elaborate on the decision. In previous years, China has sent its defence minister to the high-profile summit, which is normally attended by defence ministers, senior military and security officials and diplomats from around the world. Last year's event resulted in a bilateral meeting between Dong and then-US Defence Secretary Lloyd Austin. Dong later declined a meeting with the Pentagon chief when they were in Laos last November. When asked about the possibility of meeting the American delegation this year, Zhang did not confirm. US-China military ties have worsened in recent months, with many working-level military dialogue channels established during the Biden administration suspended since Trump took office. 'China places great importance on US-China military ties, and is open to communication at different levels,' Zhang said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We hope the US will earnestly respect our core interests and major concerns, work with us in the same direction, and promote the steady and sound development of military-to-military relations.' Hegseth will make his first extended remarks in Singapore on Saturday on how he envisions US defence policy in the Indo-Pacific. His speech will be closely watched by Asian allies for how the Trump administration views the threat of China's military modernisation and ongoing tensions in disputed waters across East and Southeast Asia. US officials previously told Reuters that Hegseth will attempt to persuade Asian allies that Washington is a better partner than Beijing. Since taking office, Hegseth has promised to 'take back' the Panama Canal from Chinese influence and described Japan as 'indispensable' for tackling Chinese military aggression in the region. China has ongoing maritime disputes with the Philippines in the South China Sea, which is also claimed by several other countries in the region. In recent months, Korea and Japan have expressed concern publicly about China-built structures and its military presence in the Yellow Sea and East China Sea. REUTERS
Business Times
37 minutes ago
- Business
- Business Times
India bank frauds triple to 360 billion rupees as credit scams swell
[MUMBAI] Bank frauds in India jumped threefold last year, with loans contributing to bulk of the cases, while discrepancies in digital payments declined. The amount of frauds climbed to 360 billion rupees (S$5.4 billion) at the end of March this year, compared with 122.3 billion rupees a year ago, according to the Reserve Bank of India's latest annual report, which looked at cases above 100,000 rupees. The jump was exacerbated by an addition of 122 cases amounting to a fraud of 186.74 billion rupees. These cases were removed from classification as fraud in previous years, but added back in the latest year after a court ruling. The rise in cases underscores the challenges being faced by the banking regulator in the world's fastest growing major economy even as credit growth slows. This comes in the wake of a suspected fraud reported by IndusInd Bank earlier this month, which led to an upheaval at the lender, including top-level exits to rating cuts. Frauds in private banks rose 270 per cent, while their state-owned peers, which accounted for bulk of the discrepancies, showed a 177 per cent growth in such cases. Digital payment frauds fell to 5.2 billion rupees last fiscal year from 14.6 billion rupees in the previous year even as transactions through mobile applications and cards gain popularity. The central bank said it is planning a Digital Payments Intelligence Platform to curb payment related frauds. Transactions using Unified Payments Interface – that allows users to transfer money instantly using their mobile phones – rose 30 per cent from a year ago to 260 trillion rupees. BLOOMBERG
