13/05/2026

BIZ & FINANCE WEDNESDAY | MAY 13, 2026

17

US, Japan in ‘constant and robust’ coordination on FX

Top South Korean official proposes

social tax on AI profits SEOUL: A top South Korean official has proposed a tax on AI profits to be redistributed among society as a semiconductor boom drives massive earnings for tech giants Samsung Electronics and SK hynix. The two South Korean firms have emerged as key suppliers of high-performance chips powering AI infrastructure globally, posting record first quarter earnings as global demand surges. South Korea’s benchmark Kospi has rallied over the past month, repeatedly hitting record highs and also briefly coming within a whisker of the key 8,000-point mark yesterday. However, it pulled back sharply after hitting an all-time high just below the 8,000 level, as investors took uncertainty over the Middle East conflict as a cue to book profits. The Kospi closed 2.3% lower at 7,643.15. Earlier in the session, it rose 2.3% to a record high of 7,999.67. Chipmaker Samsung Electronics fell 2.3% and peer SK hynix skidded 2.4%. Earlier in the session, Samsung and SK hynix gained 2.1% and 4.6%, respectively, to notch record levels. South Korea was no longer operating as a traditional export economy and could be shifting towards a “technology monopoly economy” driven by scarcity of chips and sustained excess profits, Kim Yong-beom, senior presidential secretary for policy, said in a Facebook post late Monday. While the shift towards a technology dominant economy represented “the core essence of the possibilities currently open before Korea”, Kim warned it could also deepen polarisation of society. Kim proposed what he tentatively called a “national dividend” for socially redistributing excess corporate profits from AI technology. Among other things, the tech tax could be used to provide startup support for young people, basic income programmes for rural and fishing communities, support for artists and stronger pensions for the elderly, he said. “Using a portion of excess profits to ensure social stability for the current generation and mitigate transition costs is not merely redistribution, but also a type of system maintenance cost,” he said. Kim’s remarks came as Samsung Electronics’ labour union demanded the removal of caps on performance bonuses and called for a system allocating 15% of operating profit to bonuses. – AFP, Reuters Hengrui, Bristol Myers Squibb sign deals on collaboration, licensing SHANGHAI: Jiangsu Hengrui Pharma ceuticals, China’s biggest drugmaker by market value,said yesterday it struck global collaboration and licensing deals with US drugmaker Bristol Myers Squibb that include potential milestone payments of up to US$15.2 billion (RM59.8 billion). For Hengrui, a specialist in oncology, neurology, immunology, respiratory, meta bolic and cardiovascular drugs, the deals will boost its potential sources of income as Beijing’s centralised bulk-buying programmes squeeze generic drug revenues. The deal with Bristol Myers Squibb covers four cancer and blood-disease drug candidates from Hengrui, four immunology candidates from Bristol Myers Squibb and five additional projects the companies will work on together. All 13 programmes are still at very early stages and have not yet entered human clinical trials, Hengrui said in a statement. Bristol Myers Squibb will secure worldwide rights to Hengrui-developed assets outside mainland China, Hong Kong and Macau, while Hengrui will gain exclusive rights to Bristol Myers Squibb’s programmes in those markets. The companies expect the agreements to close in the third quarter of 2026. – Reuters

Japanese policymakers are wagering an endorsement from Bessent on their foray into the currency market could give their intervention some extra bite and help slow the yen’s slide. Some analysts have also speculated that Bessent might renew his calls for speedier Bank of Japan (BOJ) rate hikes as a way to support the yen. Katayama declined to comment when asked whether the meeting with Bessent touched on the BOJ’s monetary policy. Bessent has not made any comment yet on the BOJ. Bessent also met Ryosei Akazawa, Japan’s minister for economy, trade and industry and agreed to strengthen ties in the fields of energy and critical minerals. – Reuters

o Treasury secretary’s remarks suggest Washington broadly consents to Tokyo’s recent round of yen-buying intervention aimed at propping up yen

TOKYO: The United States and Japan maintain “constant and robust” coordination in combating undesirable, excessively volatile currency moves, US Treasury Secretary Scott Bessent said yesterday after meeting his Japanese counterpart here. The remarks suggest Washington broadly consents to Japan’s recent round of yen buying intervention aimed at propping up its sagging currency, which is inflicting pain on the economy by pushing up import costs. “I was pleased to reaffirm the strong economic partnership between the United States and Japan,” Bessent said on X. The comments came just hours after Japanese Finance Minister Satsuki Katayama told reporters the two had reaffirmed close efforts in tackling exchange rate moves, including currency intervention. “The level of communication and coordination between our teams in addressing undesirable, excess volatility in currency markets continues to be constant and robust,” Bessent added. The dollar rose to about 157.72 yen after Bessent’s remarks, which fell short of market expectations for stronger warnings on sharp declines in the yen, before dropping abruptly to 156.74 yen. It was not immediately clear if the rise was due to intervention. “Markets wanted to know whether there was no change in Bessent’s stance on Japan’s monetary policy,” said Yuji Saito, executive adviser to SBI FX Trade. “There was not much new for markets from Bessent’s comment on X.” Katayama said she confirmed with Bessent that Japan was responding to currency moves in line with a joint statement signed with the US last September that allowed for foreign exchange intervention to combat excessive market volatility. “Given current circumstances, we strongly confirmed anew the need to continue coordinating closely on market HONG KONG: Carlyle Group and Yum China Holdings are among suitors vying for a Jardine Matheson restaurant unit that runs KFC and Pizza Hut chains in Hong Kong, Taiwan and other Asian markets, said two sources with knowledge of the sale. The deal, which could fetch around US$400 million (RM1.57 billion), has also attracted interest from Taiwanese food conglomerate Uni-President as well as other private equity firms, said the sources, declining to be named as the details were not public. Non-binding bids for Jardine Restaurant Group are due this week, said the two sources and another person. Headquartered in Hong Kong, the group operates around 1,000 KFC and Pizza Hut outlets and employs about 25,000 employees in Hong Kong, Macau, Myanmar, Taiwan and Vietnam. It also owns PHD, a take-out pizza chain in Hong Kong. The overall business generates about US$35 million to US$40 million in

moves,” she said when asked whether Bessent had commented on recent suspected currency intervention by Japan to support the yen. “We engaged in discussions on deepening our coordination on various fronts,” Katayama added, in response to a query whether “close coordination” meant that Washington could take the initiative in tackling sharp falls in the yen.

THAIS HELP THAIS ... Thailand’s Prime Minister Anutin Charnvirakul and Deputy Prime Minister and Commerce Minister Suphajee Suthumpun ride on a mobile grocery tricycle to launch the ‘Thais Help Thais’ campaign inside a compound of the Government House in Bangkok yesterday. The campaign promotes government measures offering lower prices for consumer goods. Separately, the University of the Thai Chamber of Commerce’s Consumer Confidence Index dropped to 50.6 in April from 51.8 in the previous month, the lowest in eight months and the second straight monthly decline. – REUTERSPIC

Carlyle, Yum China said to be among suitors for Jardines’ KFC, Pizza Hut chains in Asia

annual report, due to deflationary pressures and that has hurt the restaurant segment of its portfolio. Carlyle announced a deal to acquire 100% of KFC Korea in December. It was also part of a group that bought a controlling stake in McDonald’s China in 2017. Carlyle sold its stake back to the US fast food chain in 2023, gaining a hefty return. Yum China, which was spun off from Yum Brands Inc in 2016, operates KFC and Pizza Hut in mainland China and counts private equity firm Primavera Capital and Jack Ma’s Ant Group as main backers. A deal, if finalised, is expected to value the business at a high single-digit or low-teen multiple over core earnings, said the two sources. Jardines is open to selling one market or all, depending on the offer terms, one of them added. The sale comes as Jardines seeks to reallocate capital to core businesses. – Reuters

earnings before interest, taxes, depreciation and amortisation, said the sources. A Jardines spokesperson declined to comment. Carlyle also declined to comment, while Yum China and Uni-President did not immediately respond to Reuters requests for comment. Global fast-food restaurant chains operating in Asia have benefited from urbanisation, a young population, and rising demand for convenient cheap dining. That’s helped them attract plenty of capital from local strategic players and private equity firms over the past decade. The fast food market for the Asia-Pacific region was valued at about US$270 billion in 2024 and is expected to reach US$465 billion by 2033, said ResearchandMarkets.com in a report last year. Consumer spending in Hong Kong has, however, been soft, Jardines said in a 2025