29/05/2026

BIZ & FINANCE FRIDAY | MAY 29, 2026

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

18

Sweden rejects proposals for fossil fuel phase-out STOCKHOLM: Sweden’s government rejected on Wednesday a government-appointed commission’s recommendations on ways to phase out fossil fuels, which included tax hikes on petrol and diesel to meet the country’s 2030 climate targets. Prime Minister Ulf Kristersson’s right-wing coalition, backed by the far-right Sweden Democrats, commissioned the expert report in 2024 to find solutions to reduce the use of fossil fuels, in particular in the road transport sector. Sweden has set a goal of reducing CO2 emissions from transport by 70% by 2030 from 2010 levels, and to achieve net zero emissions by 2045. The commission on Wednesday proposed an increase in the required share of biofuels or low-carbon alternatives that petrol suppliers must blend into their products. The current levels “are too low for Sweden to be able to meet its 2030 commitment without the ESR trading system” of purchasing quotas abroad, the report said. It also proposed an increase in petrol and diesel taxes to encourage consumers to shift to electric vehicles. The proposals run counter to the policies the government has pushed since coming to power in 2022, namely cutting petrol taxes and reducing the biofuels obligation. The report comes as Sweden is just months away from a general election on September 13. “This commission was set up two years ago, before (US President Donald) Trump (began his second term) and before the war in Iran,“ Finance Minister Elisabeth Svantesson said. “In this situation, petrol prices are so high that it makes people’s lives more difficult. It would be a bad idea” to raise them further, she said. – AFP Wealthy families cut dollar exposure, survey finds ZURICH: The world’s richest families are trimming exposure to the US dollar as geopolitical tensions and rising sovereign debt drive a broader rethink of portfolio risk, UBS said in a report published yesterday. About two-thirds of family offices surveyed by the Swiss bank expect confidence in the dollar as a reserve currency to weaken over the year, according to UBS’s Global Family Office Report 2026. The survey was conducted between January and late March, before the dollar started to outperform many peers. The dollar’s depreciation in the year before the survey was conducted has prompted many family offices to review their portfolios, with almost half concluding they are overexposed to the US currency across asset classes, according to UBS strategist Maximilian Kunkel. The plans to reduce exposure to dollar-denominated assets reflect a wider reconsideration of US-centric portfolios, UBS found. Family offices plan to add emerging market stocks and infrastructure, while trimming real estate holdings. “For the first time, we are feeling that family offices want to build up in Asia Pacific and, to a certain degree, also in Western Europe,“ UBS executive Benjamin Cavalli said. “That mainly affects family offices outside the United States, but we are also seeing signs that a very limited part of the de-dollarisation move is coming from US family offices.” Geopolitical conflict is now the top concern by a wide margin, prompting family offices to combine asset allocation shifts with multishoring strategies, UBS said. UBS surveyed 307 clients worldwide. Participating families had an average net worth of US$2.7 billion. – Reuters

Trucks loaded with coal drive to the coal yard at the Deendayal Port in the Indian state of Gujarat. – REUTERSPIC

Mideast war reshaping national energy strategies

level in a decade, supported by a wave of new LNG export projects, particularly in the United States and Qatar,” IEA said. At the same time, oil-importing countries are turning to energy sources available domestically, notably renewables, nuclear and coal, the report said. The IEA estimates that investment in renewables should reach around US$665 billion in 2026, including US$365 billion for solar alone. Investment in nuclear energy and is set to exceed US$80 billion annually while investment in coal should reach US$180 billion – the highest in 10 years, it said. China alone will account for nearly 70% of global coal supply spending, and some Asian countries may seek to extend the operation of their existing coal-fired power plants in order to strengthen their energy security. The IEA said investment in electricity supply and infrastructure is expected to reach nearly US$1.6 trillion in 2026, including around US$550 billion for power grids, while investment in battery storage should exceed US$100 billion. – AFP Berlin disagree, from trade practices to human rights. The Economy Ministry noted that in particular there was now a “clear trade imbalance” between the world’s number two and number three economies. German exports fell by around 10% in 2025, to roughly €80 billion (RM370 billion), while imports from China rose to around €170 billion, it said. Increasing competition for German businesses in China has been one factor weighing on Europe’s top economy, which has stagnated in recent years. Chancellor Friedrich Merz visited China in February, and the widening trade gap was also a key focus. Still, both Berlin and Beijing are keen to strengthen ties at a time of global uncertainty sparked by US President Donald Trump’s often erratic policies. – AFP

more to domestically available resources, on the other,” he added in the World Energy Investment report by the energy agency of the Organisation for Economic Co-operation and Development (OECD). The IEA estimates that global energy investment will reach US$3.4 trillion in 2026, slightly higher than the previous year, with around US$2.2 trillion devoted to power grids, storage, low-emission fuels, nuclear, renewables, energy efficiency and electrification. Alongside this, around US$1.2 trillion is expected to be invested in oil, natural gas and coal. It nevertheless expects oil investment to decline for the third straight year in 2026, falling below US$500 billion despite rising crude prices. This is due to uncertainty over how long higher prices will last, project lead times, supply constraints and the tightening offshore rigs market, which are limiting short-term investment outside the Middle East. By contrast, investment in natural gas is “projected to rise to US$330 billion, the highest

PARIS: The Middle East war is pushing countries to open new supply routes and turn to domestic resources to tide over the world’s biggest energy crisis, the International Energy Agency said yesterday. “We are in the midst of the largest energy security crisis the world has ever faced – and I believe this will reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s,” said IEA executive director Fatih Birol. “We are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources – such as advancing new pipelines and other supply infrastructure, on the one hand, and turning o Countries open new supply routes and turn to domestic resources: IEA

Germany warns on trade imbalance with China BEIJING: Germany’s economy minister began a visit to China on Wednesday with Berlin saying it wanted to boost cooperation with a key partner while also warning of worsening trade imbalances. official to head to Berlin’s top trading partner as they seek to navigate increasingly complex ties. China – long a reliable market for German exports, from cars to factory machinery – has in recent years become a fierce competitor in many industries, turning the relationship on its head.

Katherina Reiche stressed the importance of fair competition and greater predictability in a meeting with Chinese Vice Premier He Lifeng, her ministry said. Reiche underlined that“Germany’s interest in balanced, reciprocal, and mutually beneficial trade relations, as well as the potential of the Chinese market”, the ministry said in a statement. Reiche also held talks with Commerce Minister Wang Wentao about potential cooperation between German and Chinese companies on the first day of her three-day trip, the ministry said. The minister is the latest senior German

In a statement ahead of the visit, Reiche, accompanied by a business delegation and German MPs, said that China and Germany “are linked by one of the most significant economic relationships in the world”. “In times of global uncertainty, we need dialogue, trust and robust partnerships. I will therefore advocate on the ground for modern cooperation – based on openness, competition and mutual benefit,“ she said. As well as Beijing, Reiche will visit the southern Chinese city of Guangzhou. But there are many areas where Beijing and