12/08/2025

BIZ & FINANCE TUESDAY | AUG 12, 2025

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Philippine central bank signals August rate cut

Keppel to sell M1 stake to Simba Telecom

MANILA: The Philippine central bank signalled yesterday it may deliver the first of two remaining interest rate cuts this year at its Aug 28 policy meeting as inflation remained subdued. Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said it was “quite likely” the bank would lower its key policy rate later this month, reiterating its easing bias to support growth amid global uncertainties and as inflation continues to slow. “Things look good,” Remolona told a forum organised by the Economic Journalists Association of the Philip pines, adding that inflation could fall to 2% this year, the bottom of the BSP’s target range. Cooling prices have underpinned domestic demand, with the economy expanding 5.5% in the second quarter, slightly faster than the 5.4% growth in the previous quarter. Annual inflation eased to 0.9% in July, the lowest since October 2019, bringing the year-to-date average to 1.7%. Remolona told Reuters on July 28 the BSP was on track to cut rates two more times in 2025. The key rate now stands at 5.25%, a two-and-a-half-year low. After this month’s meeting, the Bangko Sentral ng Pilipinas will have two more policy meetings before year-end. – Reuters Temasek-backed entity to acquire 16% stake in Ayala’s healthcare arm MANILA: AC Health, the healthcare arm of the Philippines’ oldest conglomerate Ayala Corp, said yesterday that a private equity firm backed by Singapore’s state investor Temasek will acquire a 16% minority stake in the company. In August 2024, Reuters reported that the Ayala Corp was keen on selling a minority stake in its healthcare business, which would value the company at up to US$500 million (RM2.1 billion). AC Health did not specify a value for the 16% stake. Global investors are increasingly drawn to Southeast Asia’s healthcare sector, wagering on the region’s rising prosperity, aging demographics and the industry’s resilience in a challenging economic climate. In November 2023, Malaysian conglomerate Sime Darby and Australia’s Ramsay Health Care agreed to sell their equal ownership joint venture for RM5.7 billion. Established in 2015, AC Health has expanded its portfolio to include the Generika and St. Joseph Drug pharmacy chains, as well as pharmaceutical importer and distributor IE Medica and MedEthix, according to its websites. It aims to expand its network to at least 10 hospitals, 300 clinics and 1,150 pharmacies. – Reuters

o Singaporean asset manager to retain unit’s ICT business, including data centres

SINGAPORE: Keppel is selling its 83.9% stake in subsidiary M1 Ltd to Simba Telecom while retaining the non-telecoms operations of its unit in a deal that will give the asset manager net cash of S$1 billion (RM3.3 billion). Keppel said yesterday it will sell M1’s telecoms operations for an enterprise value of S$1.43 billion, and retain the fast-growing information and communications technology business, which also includes data centres and subsea cables. M1 and Simba are Singapore’s third- and fourth-largest mobile operators by market share, trailing Singapore Telecommunications and StarHub. “The proposed transaction offers a strategic path to sustainable growth for Singapore’s telco sector,” Keppel CEO Loh Chin Hua said in a statement.

outpacing the 11.9% rise in the benchmark Singapore index , LSEG data showed. Simba Telecom is wholly owned by Australia-listed Tuas. In a separate statement, Tuas said it is looking to raise at least A$416 million (RM1.1 billion) through a placement and share purchase plan. M1’s operations, excluding the businesses that Keppel intends to retain, recorded revenues of S$806.1 million and an EBITDA of S$195.4 million in the year ended April. Keppel said it hopes to complete the proposed transaction over the next few months, subject to regulatory approval. DBS is the financial adviser to Keppel for the proposed deal, according to the announcement. – Reuters

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Keppel said the deal would benefit the industry and consumers by consolidating the market and unlocking synergies between two digitally driven operators. Backed by state investor Temasek, Keppel said the divestment aligns with its strategy to operate an asset-light model, and will sharpen its focus on digital infrastructure within its connectivity segment. Keppel, which first invested in M1 in 1994 as a founding shareholder, said Simba had submitted the strongest bid among interested parties, and its combination with M1 is expected

opportunities. It said it expects to record an estimated accounting loss of S$222 million on the deal. Loh said the proceeds can be used for Keppel’s growth opportunities and lower its debt or reward its shareholders. “This will not only improve the new Keppel’s ROE (return on equity) but also support the market’s further re-rating of Keppel,” he added. Shares of Keppel, which are under a trading suspension due to the deal announcement, have climbed 25.4% year-to-date,

Lee (right) and Lam holding a press conference at the presidential office in Seoul

yesterday. – AFPPIC

South Korea, Vietnam leaders pledge deeper ties SEOUL: South Korea and Vietnam pledged deeper economic and strategic cooperation as their leaders held a summit yesterday, with the countries seeking to leverage their business ties to navigate a challenging global trading environment. members on the four-day state visit. “Our countries agreed that about 10,000 Korean companies operating in Vietnam contribute to Vietnam’s economic development and mutually beneficial cooperation between the two countries,” Lee said in a televised address. least 10 memoranda of understanding at the summit meeting, pledging cooperation in areas including nuclear and renewable energy, monetary and financial policies, and science and technology, Lee’s office said. Other agreements covered cooperation in infrastructure, including high-speed rail, Lee’s office said.

export hub, benefiting for years from lower labour costs, generous tax incentives and Hanoi’s numerous free trade pacts with dozens of countries. But the trade policy of U.S. President Donald Trump, who imposed sweeping new tariffs on the Asian countries in recent weeks, has increased uncertainty over future business commitments, with Vietnamese official data showing a slowdown in new investment. South Korean companies have been cited as potential investors in Vietnam’s planned nuclear energy, LNG power plants and high-speed rail projects. Trump has imposed a tariff rate of 15% for South Korean goods and 20% for imports from Vietnam. – Reuters

“I asked for a continued interest in the stable economic activities of our companies in Vietnam.” Lam said the countries agreed to further open up their markets and expand trade to US$150 billion (RM635 billion) by 2030, adding Vietnam welcomed an increase in investment by South Korean businesses along with greater technological cooperation. The countries are due to sign at

South Korean President Lee Jae Myung is hosting Vietnamese leader To Lam as his first state guest since taking office on June 4 and discussed promoting trade and investment in the Southeast Asian country, Lee’s office said. Lam, who is the Vietnamese Communist Party general secretary, leads a delegation of industry, trade, foreign and technology ministers and senior party and parliament

The rare visit by the Vietnamese leader is expected to contribute to a favourable condition for South Korean businesses to invest in major infrastructure and nuclear energy projects planned in Vietnam, it said. A number of major South Korean companies including Samsung Electronics have used Vietnam as an