30/07/2025

BIZ & FINANCE WEDNESDAY | JULY 30, 2025

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Indonesia’s FDI drops 6.95% year-on-year in Q2

Nomura Q1 profit jumps 52% despite volatile global markets

TOKYO: Nomura Holdings reported yesterday a 52% rise in first-quarter net profit thanks to a strong showing in trading and investment banking despite volatile global markets. Japan’s top investment bank and brokerage firm booked a profit of ¥104.6 billion (RM3 billion) in the April-June period, compared to a profit of ¥68.9 billion in the same period a year prior. The results come on the back of Nomura’s highest ever annual profit in the year to March 2025, advancing its leading position in the Japanese market as well as its multi-year effort to become a global financial player. Nomura’s global markets division recorded 7% growth in revenue as volatility triggered by the proposed tariffs announced by US President Donald Trump in April boosted demand for macro and spread products. While global M&A dealmaking was held up by tariff-related uncertainty over the quarter, Nomura benefitted from major domestic deals, including the privatisations of listed subsidiaries by NTT and Toyota Motor. Nomura has had some success in raising its global profile, ranking 11th in worldwide M&A advisory fees in the first six months of 2025, LSEG data showed. Nomura has expanded its wealth and asset management businesses as a means of generating stable income that is less subject to market volatility after years of choppy returns. It is now Japan’s leading wealth management firm, capitalising on Japanese households’ move from savings to investment, and the division made nearly 40% of its pretax profits over the quarter. Alongside, assets under management in Nomura’s asset management division reached a record high of ¥94.3 trillion. Nomura also generated pre-tax net income of ¥56 billion from the sale of a Tokyo property by one of its subsidiaries during the quarter. – Reuters Thailand expects US trade talks to be concluded before Aug 1 BANGKOK: Thailand’s trade talks with the United States are expected to be concluded before Aug 1, and US tariffs on the country are not expected to be as high as 36%, Finance Minister Pichai Chunhavajira said yesterday. The United States was Thailand’s largest export market last year, accounting for 18.3% of total shipments, or US$54.96 billion. Washington has put its deficit with Thailand at US$45.6 billion. Thailand is ready to negotiate and its proposal remains the same, Pichai told reporters. “The United States has already opened the way for further negotiations, and we will continue the discussions,” he said. Asked whether the talks could be done before the Aug 1 deadline, Pichai said: “Yes, it can be done in time. We’re definitely ready and now we’ll see how the US decides.” US tariffs on Thailand could be announced on Aug 1 or Aug 2, Pichai said. “This is roughly where things stand. I think it’s very close now,” he added. “I believe we definitely should not face 36%.” Earlier this month, Pichai said the country made more concessions in addition to an earlier improved trade proposal that offered zero tariffs on many US products. He said US tariff rates on Thailand are expected to align with other countries in the region. Vietnam and Indonesia now face US tariffs of 20% and 19%, respectively, significantly lower than the levels announced in April. – Reuters

plants will also increase,” Rosan said. “God willing, the investment target will be achieved.” As of June, total investment in the country, including from domestic firms, reached 943 trillion rupiah, or nearly half of the 2025 target of 1,905.6 trillion rupiah. Including domestic sources, Southeast Asia’s largest economy saw a total of 477.7 trillion rupiah worth of direct investment in the second quarter, creating 665,764 jobs, the ministry said. Some of the biggest beneficiaries of FDI in the April-June period were the base metal, mining, services, transportation, warehouse and telecommunication industries, the ministry said. Singapore, Hong Kong and China were the biggest sources of FDI in the second quarter. – Reuters

significantly influenced investment around the world,” he said without elaborating. In early April, President Donald Trump announced tariffs on trillions of dollars of US imports, including from Indonesia, which was slapped with a levy of 32%, later reduced to 19% after the two sides reached an agreement this month. The data excludes investment in the financial and oil and gas sectors. The fall in FDI was the biggest since a 9.2% annual fall in the first quarter of 2020, according to data from LSEG. Rosan added that the global backdrop has intensified the competition among countries to attract investment, but the government was still hopeful to close the year with higher investment growth. “(Imports) of capital goods have increased, it means the construction of new

JAKARTA: Foreign direct investment (FDI) into Indonesia dropped 6.95% in the second quarter from a year earlier to 202.2 trillion rupiah (RM52 billion), Investment Ministry data showed yesterday, marking the deepest contraction in five years. Rising geopolitical tensions have eroded appetite for investment in the country, Investment Minister Rosan Roeslani said at a press conference when asked about the drop in FDI. “It can’t be denied that geopolitics have o Geopolitical tensions significantly influenced investment, says minister

Buildings stand in Hong Kong. – REUTERSPIC

Hong Kong home prices flat for second month in June HONG KONG: Hong Kong’s home prices were largely unchanged for a second consecutive month in June on lower mortgage rates, government data showed yesterday, signalling stabilisation after recent steep declines. world’s most unaffordable cities, have tumbled nearly 30% from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory. affordable for home buyers. Realtors forecast home prices in 2025 could rise or fall by 5%, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States.

Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft. The one-month Hong Kong dollar interbank rate HIBOR , which many mortgage plans are linked to, dropped below 1.2% since May from more than 3.5% in the past two years, making mortgage rates more

Private home prices edged up 0.03% in June from the month before, following a revised 0.03% rise in May, data from the Rating and Valuation Department showed. In April, home prices climbed a revised 0.5%, ending four months of decline. Prices have dropped 0.9% this year to their lowest since 2016. Home prices in Hong Kong, one of the

Brokerages including Morgan Stanley and HSBC recently said they expected the Hong Kong residential market to bottom out. But realtor JLL, which sees a 5% drop in mass residential prices this year, said it does not expect a sustainable recovery until 2026, when inventory could drop to a healthy level. – Reuters