19/12/2025

BIZ & FINANCE FRIDAY | DEC 19, 2025

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Thai central bank proposes controls on gold trade

Vietnam’s domestic coffee prices drop to multi-month lows HANOI: Vietnam’s domestic coffee prices fell to their lowest level since March last year, tracking global trends, as supply increased and favourable weather supported cherry-picking and drying amid weak demand, traders said yesterday. In the Central Highlands, farmers sold beans at 88,700 dong to 90,000 dong (RM13.77 to RM13.97) per kg, down from last week’s 101,300 dong to 102,000 dong. Robusta coffee for March delivery lost US$294 from the beginning of this week to US$3,705 per kg by Wednesday’s close, its lowest level since Aug 8, LSEG data showed. “Farmers are picking the remaining cherries and have released more beans in recent days, though not in large volumes as they are under little pressure to sell,” a trader in the coffee belt said. “At the same time, exporters remain very cautious.” Another trader said output has been mixed in the Central Highlands this crop year. “Farmers in Dak Lak, the main coffee-producing province, reported higher yields, while the neighbouring provinces of Lam Dong and Gia Lai have seen less favourable results.” Traders offered 5% black and broken-grade 2 robusta at a discount of US$225 to US$275 per ton to the March LIFFE contract. – Reuters Inquiry into Optus outage finds failures in firewall upgrade SYDNEY: An inquiry into Optus’s emergency services telephone number outage in Australia, which resulted in two deaths, revealed a series of failures during a firewall upgrade that left hundreds of people unable to contact police, fire and ambulance services. Australia’s second-largest telecommunications provider, owned by Singtel, published the review yesterday, which found at least 10 mistakes during the routine network upgrade carried out after midnight on Sept 18. The independent internal investigation revealed that Optus provided incorrect instructions to its contractor, Nokia. Additionally, the Finnish telecoms equipment maker selected and approved an incorrect method to proceed with the upgrade, which shut down key equipment but did not redirect calls, the report said. The error impacted both normal voice calls and the emergency number Triple Zero, but the consequences were different, said Kerry Schott, the report’s author and transport and infrastructure business executive. While voice calls found an alternate pathway and their service continued, Triple Zero calls failed. – Reuters

Gold trading flows have become a significant driver of currency movements, Bank of Thailand (BOT) governor Vital Ratanakorn told a business forum. “On days when the baht strengthens sharply, gold trading transactions account for about half of the flows pushing the baht up,” he said, adding that large gold dealers now represented trading volumes equivalent to roughly 50% of GDP. “The central bank is doing everything it can, expanding all measures as far as possible. “We have the Foreign Exchange Act, but it doesn’t cover the gold trading business. “There needs to be someone to regulate the gold trade,” he said. The central bank has said there are no plans to impose a tax on gold trading at the moment. Gold traders have opposed such a move, warning it would hammer the sector. Vitai also said the central bank would not impose taxes on capital

inflows or outflows in another measure to tackle the baht’s rapid appreciation. “We can’t use overly drastic measures, such as imposing taxes as we did in 2010, which caused the market to crash immediately, or banning inflows and outflows.” Vitai reiterated that the central bank is taking action on the baht, with the aim of reducing volatility rather than dictating the baht’s value. “The central bank wants the baht to weaken in line with economic conditions. “We manage it every day to ease volatility... but we cannot set the currency’s level.” While pledging readiness to cut interest rates further if necessary, Vitai said Thailand’s monetary wiggle room was limited following five cuts totalling 125 basis points since October last year. “We are ready to cut rates further if needed, but there’s not a lot of ammunition left,” he said, adding that very low rates would affect

savings and would have little effect on inflation. Some economists are expecting another reduction at the BOT’s next rate review on Feb 25. Despite negative inflation, Vitai said Thailand is not yet facing deflation, adding that structural issues will require targeted measures beyond rate cuts. The central bank will introduce loan guarantee schemes next week to spur credit and investment. The central bank forecast the economy to grow 2.2% this year and 1.5% next year. Last year’s growth was 2.5%. Fiscal and monetary policies are moving in step, Vitai said, citing his close coordination with Finance Minister Ekniti Nitithanprapas. “I’m lucky to have a close relationship with the finance minister. Monetary and fiscal policies are well coordinated,” Vitai said. “The finance minister has never interfered in matters related to the policy interest rate.” – Reuters

companies from offering higher prices or additional compensation to major shareholders, said two sources with direct knowledge of the matter. The reforms aim to level the playing field for smaller and retail investors and expedite deals, the sources said, requesting anonymity as they were not authorised to speak to the media. The proposed changes have not been previously reported. SEBI chairman Tuhin Kanta Pandey, speaking to reporters after a board meeting on Wednesday, confirmed efforts to revamp the so-called “takeover code”regulations, stating that proposed changes would be put out for public feedback. He did not disclose specific details. There was no immediate response to an email to SEBI seeking details on the reforms. The regulatory revisions come as India sees increased activity in mergers and acquisitions following a Reserve Bank of India decision allowing domestic banks to finance such deals and rising foreign investment in Indian businesses in 2025. Under the planned changes, acquirers will be barred from negotiating deals with large shareholders for six months after making an open offer to acquire shares from the public, one of the sources said. Additionally, SEBI intends to cut the permitted time to complete an open offer to 30 days from the current two months, with faster mechanisms for regulatory clearance, the sources said. Mandatory external valuations will BANGKOK: The Thai central bank is calling on the Finance Ministry to control gold trading after a surge in transactions helped drive up the value of the baht, its governor said yesterday, adding that monetary policy could be further eased if needed after key rates were cut to a three-year low. The baht has gained 9.1% against the dollar so far this year to become Asia’s second-best performing currency, adding to the problems of Southeast Asia’s second-largest economy, which has been struggling with multiple challenges like US tariffs, high household debt, a border conflict with Cambodia and political uncertainty ahead of elections on Feb 8. o Surge in transactions drives up value of baht, BOT ready to cut rates

India to revamp M&A rules to protect retail investors MUMBAI: India’s Securities and Exchange Board (SEBI) plans to amend its merger and acquisition rules, including barring acquiring

A general view of the skyline in Mumbai. – REUTERSPIC

Stricter thresholds in global markets have prompted the regulator’s review. Singapore caps creeping acquisitions at 1% every six months, while Hong Kong permits 2% annually. In addition, an open offer in India is triggered when an acquirer acquires more than 25% of voting rights in a company. In the UK, investors reaching a 30% stake must make a mandatory open offer for further acquisitions. – Reuters

also be introduced when large shareholders sell shares privately to select parties, they added. The overhaul addresses cases in the past where major shareholders received preferential deals. In December 2022, the Adani Group acquired a 27.26% stake in New Delhi TV Ltd, buying out founders Radhika and Prannoy Roy at a 17% premium to the open-offer price made to minority shareholders. The transaction, executed 18 days after the open offer, was structured as

a transfer between two large shareholders, public disclosures say. Although Adani later revised the offer price for minority investors, sources noted regulatory gaps that allowed such deals. SEBI is also evaluating potential changes to its “creeping acquisition” norms, which currently allow existing investors in listed companies to raise their stakes by up to 5% annually without triggering a mandatory open offer, sources said without elaborating on what could be the new threshold.