External News

SHANGHAI: Asian shares stumbled on Friday and gold jumped amid rising doubts that a highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping this weekend could lead to an easing of trade tensions.

Uncertainty over whether the talks will produce progress in ending the year-long trade war between the world’s two largest economies comes amid signs of rising risks to global growth.

European shares are expected to tread water ahead of the meeting.

Financial spreadbetters see London’s FTSE virtually unchanged at 7,404, Frankfurt’s DAX 0.1% firmer at 12,288, and Paris’ CAC 0.02% higher at 5,494 at the start of trade.

“I’m not sure the Americans can deliver what the Chinese want and the Chinese don’t want to deliver what the Americans want,” said Greg McKenna, strategist at McKenna Macro, adding that he sees an “extend and pretend” outcome, in which Chinese and US officials agree to continue talks, as the most likely outcome of the weekend meeting.

Regardless of the outcome, McKenna said, “we will not be in a holding pattern on Monday morning.”

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25%. Japan’s Nikkei stock index ended down 0.29%.

White House economic adviser Larry Kudlow said on Thursday that Trump had agreed to no preconditions for the meeting, set to take place on Saturday at the G20 summit in Japan, and is maintaining his threat to impose new tariffs on Chinese goods.

Kudlow also dismissed a Wall Street Journal report that China was insisting on lifting sanctions on Chinese telecom equipment giant Huawei Technologies Co Ltd as part of a trade deal and that the Trump administration had tentatively agreed to delay new tariffs on Chinese goods.

On Thursday, China’s central bank pledged to support a slowing economy as global risks rise, ahead of the release of data that is expected to show China’s factory activity shrank for a second consecutive month in June.

Chinese blue chips fell 0.64% on Friday and Hong Kong’s Hang Seng lost 0.62%. Australian shares shed 0.71%.

The losses followed gains in global equity markets overnight. US S&P 500 e-mini stock futures wavered on Friday, trimming early gains to trade up just 0.05%.

“Central expectations for the G20 meeting between Trump and Xi are that negotiations will resume, additional US tariffs will be delayed, China will buy more US goods and talks over tech-trade will gain renewed focus,” analysts at ANZ said in a note.

“However, as the difficulty of resolving economic aspirations between the two countries is herculean, markets remain cautious.”

Seema Shah, global investment strategist at Principal Global Investors, said even if signs of progress emerge on trade, investors would quickly move on to US interest rate policy.

“As the equity market is now fully pricing in a 50 basis point cut, market disappointment could be significant … And if the Fed follows through with a cut despite a brighter trade outlook? Beyond the knee-jerk euphoria, expect minimal market reaction – this last scenario is exactly what the market is already expecting,” she said in a note.

On Thursday, the S&P 500 rose 0.38% and the Nasdaq Composite added 0.73%.

The Dow Jones Industrial Average eased 0.04%, dragged down by losses in Boeing Co shares following a Reuters report that the US Federal Aviation Administration identified a new safety risk in the planemaker’s grounded 737 MAX aircraft.

Highlighting mixed market views on the outlook for the weekend’s Sino-US talks, yields on benchmark 10-year Treasury notes rose to 2.0137%, compared with a US close of 2.005% on Thursday, despite the reversal in equities.

The two-year yield dipped to 1.7369%, less than 4 basis points above recent lows, reflecting near certainty that the Federal Reserve will cut benchmark interest rates in July.

The dollar was 0.1% lower against the safe-haven yen at 107.67, but the euro weakened slightly, buying US$1.1362.

The dollar index, which tracks the greenback against a basket of six major rivals, gained less than 0.1% to 96.232, but was still up only about 0.4% from three-month lows hit earlier this week.

In commodity markets, trade worries continued to weigh on oil, with US crude losing 0.52% to US$59.12 a barrel and global benchmark Brent crude down 0.68% to US$66.10 per barrel.

The weak dollar and uncertainty over global trade saw gold rebound after dipping below US$1,400 per ounce on Thursday. Spot gold was last traded at US$1,416.19 per ounce, up 0.49%, but down from earlier highs.

KUCHING, June 28 — Baru Bian gave an assurance today that his Works Ministry will address the grievances of cash-strapped contractors who now have problems completing federal-funded projects under the rolling plan of the 11th Malaysia Plan in Sarawak.

He said many of the federal-funded projects are caused by the contractors who are inexperienced, having cash-flow problems and lack of coordination with the implementing federal government agencies.

“Out of RM4.31 billion allocated for the 631 projects in Sarawak, about RM711 million or 16.50 per cent has been spent compared to 42.51 per cent or RM23.3 billion for the national average,” he told reporters after co-chaired the joint state action committee here.

“In this regards, all the relevant agencies have to double their efforts to ensure that the financial performance can be upgraded and on the whole can be maximised to see that the development objective of the Sarawak government can be achieved,” he said.

On physical performances of these projects, Baru said 442 of them are on schedule, 69 projects have been completed, six projects have been classified as sick, eight are in planning process, 102 projects are ahead of schedule and four others under placed under observation.

Baru said a committee has been formed to take care of the sick projects, including the Sri Aman general hospital, immigration border post in Ba’Kelalan, access road to Baleh dam and SMK Lutong and SK Tudan, both in Miri.

He said his ministry is giving priority for the completion of these “sick” projects so that the fund allocated to them is not wasted.

The minister also wanted the government agencies involved in the implementation of projects in Sarawak to upgrade their supervision.

“The cooperation and coordination among the state and federal agencies related to utilities and works approval on sites need to be doubled to ensure that these projects are implemented on schedule,” he said.

Baru said the meeting of the joint committee is proof that the federal and the state governments can work together to ensure that the development agenda is given the necessary attention.

He said he does not want to see that the implementation of projects to be politicised.

Sarawak Deputy Chief Minister Datuk Amar Douglas Uggah Embas, who co-chairs the joint committee with Baru, gave an assurance that the Gabungan Parti Sarawak state government is prepared to work together with the Pakatan Harapan federal government.

He said he has assured Baru that the state government will make sure that its implementing agencies will give their cooperation to their federal counterparts to ensure that federal-funded projects are completed on schedule.

“What is important is Kuching and Kuala Lumpur must work together and make sure that all the projects in Sarawak will be planned and implemented in the interest of the people of Sarawak,” he said.

Uggah also thanked the federal government for allocating RM10.50 million for the survey work on the native customary rights land under Sections 6 and 18 of the Sarawak Land Code.

PETALING JAYA: A civil society has questioned the legal standing of a six-member task force formed to probe the disappearance of pastor Raymond Koh and activist Amri Che Mat.

Eliminating Deaths and Abuse in Custody (EDICT) chairman M Visvanathan asked under what law the task force was set up to review the findings of the Human Rights Commission (Suhakam).

“It is unclear which legislation the task force is relying on to function,” he said in a statement.

Visvanathan said Suhakam performed its inquiry under the Human Rights of Commission of Malaysia Act 1999.

He said a royal commission of inquiry derived its authority under the Commission of Enquiry Act 1950, and an inquest by a coroner under the Criminal Procedure Code.

Visvanathan said EDICT also questioned the composition of the task force, especially the appointment of former Bukit Aman Legal Division chief Mokhtar Mohd Noor, who was at the Suhakam hearing submitting on behalf of the police.

“Mokthar’s inclusion will not reflect public confidence in the investigations by the task force,” he said, adding that the same division was implicated in the flawed investigation into their abductions.

He said it was also reported the division did not cooperate when Suhakam was conducting its inquiry.

“As such, Mokhtar is clearly an interested party and in conflict of interest,” he said.

Visvanathan said the setting up of the task force showed Putrajaya appeared not satisfied with the outcome of the Suhakam’s findings and recommendations.

“In fact, the home ministry should have started to find out who are the personnel in the police force who were responsible for Koh and Amri missing, instead of conducting another inquiry,” he said.

He said EDICT hoped the government would not waste time and public funds to repeat the futile exercise.

Koh has been missing since Feb 13, 2017, while Amri, the founder of Perlis NGO Hope, went missing on Nov 24, 2016.

In April, the Suhakam inquiry concluded that they were victims of enforced disappearance.

On Wednesday, the government named former High Court judge Abd Rahim Uda to lead the task force to follow up on Suhakam’s findings that the Special Branch was involved in the disappearance of the duo.

In addition to Mokhtar, the members of the task force are Zamri Yahya, director of the police’s Integrity and Standards Compliance Department; Muhammad Bukhari Ab Hamid, director of operations at the Enforcement Agency Integrity Commission (EAIC); Mohd Sophian Zakaria, legal officer at the public prosecution division of the Attorney-General’s Chambers; and Mohd Russaini Idrus, secretary at the Police Force Commission (SPP) for the home affairs ministry.

Home Minister Muhyiddin Yassin told a press conference the task force would be given six months to come up with a report which would be submitted to the Cabinet.

KUALA LUMPUR, June 28 — Sarawak federal lawmaker Datuk Seri Nancy Shukri today defended government agencies accused of failing to uplift the country’s vulnerable indigenous communities, insisting it was not for lack of effort.

The Batang Sadong MP told a forum organised by the Institute of Democracy and Economic Affairs (IDEAS) that members of the nomadic Penan tribe in Sarawak have repeatedly rejected government aid even when the Barisan Nasional (BN) was in power.

“I was the parliamentary caucus women’s chairman in 2008 on the Penan girls being raped. I’d like to suggest rather than criticise, I suggest you stay there quite a while and see if they respond to you. We’ve done our best, there is a lot of funding for them.

“But they are much on their own, they don’t want people like us to encroach on their private lives,” Nancy said.

The former de facto law minister was replying to Cynthia Gabriel, chief of human rights group C4, who had earlier in the forum criticised the current Pakatan Harapan and previous BN government for allegedly lacking political will in addressing the needs and rights of minorities and the indigenous peoples of Malaysia.

Cynthia had insisted that the federal government provide guarantees to ensure the Orang Asli in the peninsula and Orang Asal of Sabah and Sarawak can continue living their lives the way they want while their legal rights, particularly native customary land rights, are protected.

“There’s serious neglect, even in basic healthcare. This shows what kind of priority was given to them. This has to change. The current government policies on rural development has to change and it is up for debate on how their rights should be legislated,” Cynthia claimed.

Nancy pointed out that if anyone manages to assist the Penan community, it would be a great “favour” to the Sarawak government.

“People there don’t like us to encroach into their private lives. If you can do that, you will be doing us a big favour. We have been trying to do that for a long time.”

She said the Parti Pesaka Bumiputera Bersatu-led Sarawak government is continuing efforts to reach out to the Penans, but the tribespeople flee at the sight of the authorities.

“It’s not that politicians don’t want to go there… but when they go, but the Penans run away because they are nomads. If you can criticise us then go and do it yourself. Tell us the changes you have made. You are doing us a big favour,” she repeated.