Latest news with #CCP
The Sun
9 minutes ago
- Business
- The Sun
Defence ministry to monitor contract performance with new system
KUALA LUMPUR: The Ministry of Defence is set to develop a new contract monitoring system to enhance efficiency and transparency in managing asset and project procurement. Deputy Defence Minister Adly Zahari announced the move following findings in the Auditor-General's Report (LKAN) 2/2025, which identified weaknesses in enforcing contract terms, particularly regarding late penalties. Under the current system, penalties for delays are only imposed when extension of time (EOT) applications are reviewed, even though enforcement could occur earlier. Adly explained, 'An EOT should come with two scenarios — either with or without a late penalty. 'Sometimes EOT is granted without a penalty due to technical issues... but I believe if an EOT is to be granted, we can enforce it with a penalty.' The ministry has already taken action against delays in the delivery of 68 Gempita armoured vehicles and two non-armoured type B vehicles between 2020 and 2023. A late penalty notice of RM162.75 million was issued on Jan 15 to the supplier, who later appealed for a waiver citing force majeure due to the COVID-19 pandemic and the Russia-Ukraine conflict. Adly stated, 'The appeal was presented at the Contract Coordination Panel (CCP) meeting on May 6 and it was decided that the company would be subjected to the full late penalty of RM162.75 million.' Additionally, the ministry is recovering RM53.93 million from the performance bond and will claim the remaining penalty through set-off or direct collection. Regarding procurement via the 'breakdown' method involving RM107 million, Adly clarified that logistical challenges and varying technical expertise necessitated the approach. 'Our assets are located in places like Kota Belud, Sabah, and Port Dickson and Gemas in Negeri Sembilan, among others. That is why in this breakdown approach, we took into account those aspects, as well as the readiness of the assets,' he said. The new monitoring system aims to streamline contract enforcement and ensure timely project completion while safeguarding national security interests. – Bernama
Fox News
4 hours ago
- Business
- Fox News
China controls over 80% of battery materials crucial to US defense equipment, unsettling report reveals
In a damning new report, researchers reveal how China came to control over 80% of the critical raw battery materials needed for defense technology — posing an urgent national security threat. Through lax permitting processes, weak environmental standards, and aggressive state-led interventions, China has come to dominate global supplies of graphite, cobalt, manganese, and the battery anode and cathode materials that power advanced defense systems. "Batteries will be one of the bullets of future wars," the report's authors warn, citing their essential role in drones, handheld radios, autonomous submersibles, and emerging capabilities like lasers and directed energy weapons. According to the Foundation for Defense of Democracies (FDD), the Chinese Communist Party (CCP) has weaponized global battery infrastructure through a combination of state subsidies, forced intellectual property transfers, and predatory pricing practices. China didn't just rely on low-cost tactics — it also used its financial muscle abroad. Over the past two decades, at least 26 state-backed banks have pumped roughly $57 billion into mining and processing projects in Africa, Latin America, and beyond. These investments, often structured through joint ventures and special-purpose vehicles, gave Chinese firms controlling stakes in mineral mining, the report said. Through its Belt and Road Initiative, China has leveraged influence in resource-rich developing nations, securing control over massive critical mineral deposits. Today, it processes approximately 65% of the world's lithium, 85% of graphite, 70% of cathodes, 85% of anodes, and a staggering 97% of anode active materials. Beyond powering drones, handheld radios, and electric vehicles, lithium is critical in strategic military systems: lithium-ion batteries are used in grid support for bases and emerging directed-energy weapons. Moreover, Beijing has begun weaponizing export controls: since 2023, it has tightened restrictions on processed graphite, gallium, and germanium — later adding antimony, tungsten, and rare earths to the roster. These measures curb exports via a licensing regime and broad bans on exports to the U.S., signaling a clear geopolitical leverage too, according to the report. Both lithium and graphite are essential for modern nuclear weapons. Cobalt alloys are used in jet engines, naval turbines, electronics connectors, and sensors capable of withstanding extreme temperatures, vibration, and radiation-making. While American and allied reserves of lithium — both brine and hard rock — are being tapped, with new projects in North and South Carolina targeting domestic spodumene processing, the report claims U.S. mineral mining and refining are not advancing quickly enough to meet national security demands. Permitting obstacles account for roughly 40% of all delays in mining projects, the report notes, with processing operations facing similarly cumbersome constraints. Chinese subsidies "dwarf" those available to U.S. firms, and include tax exemptions, direct manufacturing grants, and ultra-low-interest loans, the report said. U.S. firms are now accelerating investment in domestic alternatives to China's lithium. With new Trump administration initiatives aimed at incentivizing critical mineral development—and forecasts projecting the U.S. lithium market to grow by roughly 500% over the next five years — American companies are beginning to build out processing capacity on home soil. Piedmont Lithium is developing a lithium hydroxide facility in North Carolina to process spodumene concentrate from its U.S. deposits, while Albemarle recently announced plans for a new lithium processing plant in Chester County, South Carolina. Both projects are designed to feed a fast-growing domestic battery ecosystem and reduce dependence on Chinese supply chains. But to become globally competitive, the report argues, the U.S. must take a far more proactive approach, including incentivizing private-sector investment, streamlining federal permitting, establishing a national critical minerals stockpile, building technical talent pipelines, creating special economic zones, and developing robust domestic processing infrastructure. The authors also stress the importance of ally-shoring, recommending diplomatic coordination with trusted partners — similar to prior U.S. efforts involving Ukraine, Greenland, and the DRC in rare-earth sourcing — to construct resilient supply chains beyond China's reach. "Despite China's control of the battery supply chain, this is a time of great vulnerability for Beijing, while the United States and its core allies remain strong," the report concludes. "It is time for new guardrails, muscular statecraft, and a unified international response to non-market manipulation. Building critical supply chains that are independent of China's coercive economic practices can help unleash a wave of cooperation among free-market nations that will lift up both established allies and emerging market partners and turn the tide against China's parasitic economic model."
Business Recorder
6 hours ago
- Business
- Business Recorder
Finance minister lauds CCP's for ‘reducing pending court cases'
Federal Minister for Finance Muhammad Aurangzeb expressed satisfaction over the performance of the Competition Commission of Pakistan (CCP), saying the commission's had brought significant improvements, particularly in reducing the number of pending court cases. Addressing the Senate, the finance minister requested the chairman Senate Standing Committee on Finance and Revenue, to invite Dr Kabir Sidhu, Chairman CCP, for a detailed briefing to appreciate the true extant of reforms undertaken by the commission. He informed the house that over the past two years, the CCP's new management actively pursued litigation in various courts, which resulted in reducing the backlog of cases from 577 to approximately 300. Responding to a motion moved by Senator Mohsin Aziz, the minister emphasised that a transparent and robust regulatory framework is essential in a market-based economy to foster competition and ensure accountability. In this context, he highlighted CCP's recent performance as crucial and deserving of support. He shared that the CCP issued 11 major orders in the past year alone, imposing fines exceeding Rs1 billion. Of this amount, approximately Rs120 million has already been recovered. The inquiry process has been expedited, the issuance of show-cause notices has become more efficient, and the overall hearing mechanism has improved to ensure timely action against violators. The minister further stated that CCP's Cartels Department completed 20 inquiries during the current fiscal year, while the Office of Fair Trade finalised 13 investigations related to misleading advertisements and deceptive marketing. These investigations have led to the issuance of show-cause notices and the initiation of formal hearings, he said. He also informed the Senate about the establishment of a dedicated Market Intelligence Unit within the CCP, which proactively monitors market distortions, price manipulation, and other potential violations of competition law. The minister said that the unit has so far identified 170 potential violations across sectors such as banking, e-commerce, telecom, and real estate, with 28 inquiries already initiated. CCP tells Aurangzeb: 23 major actions taken against cartels and cos Highlighting the CCP's role in facilitating investment, he said that the commission Mergers Department approved 69 transactions during the current year, resulting completion of transactions worth $30 million in foreign direct investment (FDI). Moreover, the Exemptions Department granted 83 exemptions, helping to ease business operations. He added that a Centre of Excellence has also been established within the Commission to conduct research and data-driven analysis of various market sectors.
Scoop
10 hours ago
- Politics
- Scoop
Speech Rights Upheld In Xiao V Wong Case After FSU's Victory For Portia Mao
Following journalist Portia Mao's recent victory after being silenced under the Harmful Digital Communications Act (HDCA) by a CCP lackey, journalist Justin Wong has also been vindicated in his own case, says Nick Hanne, spokesperson for the Free Speech Union. 'This is the second time we've seen the HDCA weaponised by Morgan Xiao, against journalists whose jobs are to report freely on matters of public interest. But we're thrilled that, also for the second time, the Court has respected free speech and dismissed the case. The Free Speech Union's victory for Portia Mao set an important precedent for Wong, whose case was supported by Stuff through legal representation. 'Attempts to gag Stuff journalist Justin Wong under the HDCA were based on two incidents. Firstly, he reposted to his LinkedIn page a story about Portia Mao. Xiao asserted that by reposting, Wong encouraged people to take action against him. Secondly, Wong emailed Xiao, asking him a number of questions for an article he planned to publish in the Post. Apparently, this caused Xiao 'harm'. 'As Judge Davenport said, ' It would be a sad state of affairs if simply sending an email requesting answers to questions which Mr Xiao could choose not to respond to amounted to a harmful digital communication without more.' 'Mao was silenced after working to expose foreign interference in New Zealand. We operated as a critical conduit for her, funding barrister Callum Fredric, and drawing attention to the story. Wong's win today proves that Mao's victory was good news for all Kiwis. 'If journalists can be silenced for asking questions, our democracy is in trouble. The HDCA needs major work, which is exactly why our team is conducting a comprehensive review for the Minister of Justice. Our own laws should not give individuals the power to silence others on subjective claims of 'harm'.'
Economic Times
11 hours ago
- Business
- Economic Times
Get ready for a narrower market over next 2-4 years where earnings surprises will drive share prices: Rakshit Ranjan
Rakshit Ranjan of Marcellus Investment Managers points out a significant slowdown in Nifty 50's earnings growth, dropping from a 24% CAGR to mid-to-high single digits. Coupled with valuations nearing cyclical highs at 21-22 times FY26 price to earnings, this creates market uncertainty. The focus should shift towards bottom-up stock picking, where earnings surprises will be key drivers. ADVERTISEMENT Yesterday's market flip-flopped between red and green and there's a similar sentiment among investors because there is not much action in the market. It has remained in a range- bound mode for the past month or so. What is your sense? What will drive the markets now? Even the earnings which have come so far have not been the way it used to be, at least in the last quarter. In fact, a dip is there in the earnings which have been disclosed so far. Rakshit Ranjan: Let me add to the context. In terms of earnings growth momentum, not just from last quarter to this quarter but if you look at Nifty 50's earnings from FY21 to FY24, it was as high as 24% annualised CAGR for three long years. From there, in the last five or four quarters plus the one ongoing, we have had a mid to higher single-digit earnings growth. So, it is a massive moderation from mid-20s to mid to high single-digit earnings growth for the market as a whole. The second piece which is also a bit of a challenge for the broader market is when you look at valuations, at about 21-22 times FY26 price to earnings, Nifty 50's PE multiple is nearing a cyclical high. So, there is a combination of moderating earnings at a time when valuations are at cyclical highs and which is why, there is uncertainty in terms of where the markets will go. Our thinking in that regard is that this is the kind of a stock market which is ripe for bottom-up stock picking rather than breadth of the market or width of the market, helping investors make money. In that regard, you will see a far narrower market going forward over the next two, three, four years where earnings surprises – whether or not with or without elevated valuations but earnings surprises – will drive share prices more than just overall every company in that sector doing well like the market we used to have till a year ago. CCP's current portfolio has delivered EPS growth of 14% in FY25 compared to 6% for Nifty 50. Can you enlighten us on the same and explain how to see Marcellus' Consistent Compounder Portfolio (CCP) position amidst the various risks in the markets currently? Rakshit Ranjan: In CCP, we are very conscious of the risk of broader moderation in earnings growth for the stock market. We are very consciously choosing stocks bottom up where the return on capital employed to begin with should not be backed by tailwinds of macro. They should be backed by competitive advantages of companies because macro tailwinds are fading away. Hence there is a lot more competitive advantage-oriented return on capital employed and then a very high rate of reinvestment of that cash to drive growth. There are a couple of themes that are part of the portfolio. For instance, in terms of sectoral themes that become an outcome of the bottom-up stock picking, healthcare is a very big area where our allocations have increased in the last one, one-and-a-half years in the Marcellus CCP. This includes hospitals, diagnostics, even health insurance which is a little bit of a BFSI play. But on healthcare and some pharma companies which are not just formulations doing generic generics or branded generics, but a lot of IP-based competitive advantages in the pharma space. So that is one piece where the lack of macro tailwinds is not a big concern. Hence it is a greater part of the portfolio. ADVERTISEMENT Otherwise, in the traditional sectors like retail, consumption and financials, we are picking up companies which are likely to gain share either because they are evolved supply side business models or demand side business models. Let me take a simple example in consumption. Rather than the traditional modern trade being the primary source of supply side, you have either got large format retail or the quick commerce and e-commerce players doing well and hence orienting growth drivers towards the evolving supply side and demand side of some of the traditional sectors is the second big area where we are constructing the portfolio. ADVERTISEMENT You mentioned quick commerce and yesterday, Eternal was in focus. For over two days, the stock has been on fire, going up around 10% on Tuesday. I want to understand this space. How do you see this space faring in the context of the consumption theme. There are a lot of fintech players in this space. Do you think that competition will also weigh in? Rakshit Ranjan: Oh yes, a lot of capital is chasing this space and as a result, you have to be patient if you want to make money out of prospective winners in this space. Having said that, the proof of the pudding is here. We can see sustainable disruption of the traditional channels and quick commerce, e-commerce are not just fly-by-night disruptions that have come in and will go away. I think they will sustain. So, when you combine the two together, we have businesses such as the one that you mentioned where profitability is very volatile given that it is in a high investment stage, in early stages of scaling up. But if you have got clarity of thought on which will turn out to be the winners amongst all the options in such a space, there are a lot of returns for investors to be had. We have not got exposure specifically to the stock that you mentioned but we have got exposure via a job postings company which is also investing in quick commerce companies like the one that you just mentioned. So yes, we are exposed here. ADVERTISEMENT When do we expect the FIIs to come back because they have been extending the selling spree and a few sessions where we do see buying, the buying levels are also of very short quantum. DIIs are trying to support the markets, but the exposure of FIIs more so is in the banks and financials and IT. I agree the IT results were not that great and we still have a lot of results in largecap or midcap IT plays to come out, but are the banks and financials doing good? Rakshit Ranjan: Yes. First of all, I am not an expert on FII, DII flows and there are so many moving parts here that every month, the answer to your question on broader FII, DII flows will be changing. Every month there are different factors at play which keep moving up and down. In terms of the sectors that you mentioned where FIIs have historically oriented themselves and the outlook of those, you are right IT services certainly is undergoing a very uncertain period in the interim but once the transition towards how AI applications and the entire GCC versus IT services balance are through and a few other factors that are playing out in interim for IT services, settles down, this sector will continue to see to see growth. The banking sector, on the other hand, has completely evolved in the last 12 months. Till a year ago, pretty much all banks were reporting healthy deposit growth, credit growth, healthy net interest margins, NPA, all sorts of parameters were pretty healthy for the broader industry. In the last six to nine months, we have seen a separation between the boys and the men in this space where we have not seen a massive NPA spike across the system, but the gap in NPA progression of higher quality lenders versus the rest, has widened a bit. Deposit growth has widened a bit and with interest rates falling, net interest margins will be another differentiating factor. ADVERTISEMENT Some companies will be able to manage the pressure on NIMs better than others and that is where you will see the gap opening up. So, men versus boys separation is underway and whether or not that links into FII flows pumping into the high-quality lenders, we will have to wait and watch. (You can now subscribe to our ETMarkets WhatsApp channel)
