BERNAMA – Malaysia’s inflation rate climbed to two per cent in May compared to a 1.8 per cent hike in April.

This was driven by price increases in the main groups of housing, water, electricity, gas and other fuels of 3.2 per cent and another 3.2 per cent hike in restaurant and accommodation services.

Increases were also recorded in education of 1.5 per cent; transport (0.9 per cent); personal care, social protection and miscellaneous goods and services (3.0 per cent); health (2.2 per cent); recreation, sport and culture (1.9 per cent) as well as food and beverages (1.8 per cent), the Department of Statistics Malaysia (DOSM) said yesterday.

Clothing and footwear as well as insurance and financial services declined 0.2 per cent and 0.1 per cent, respectively.

“The monthly headline inflation in May 2024 recorded an increase of 0.3 per cent against April 2024 (0.2 per cent). This was mainly driven by housing, water, electricity, gas and other fuels as well as information and communication, which increased by 0.6 per cent, respectively.

“This was followed by food and beverages; restaurant and accommodation services; recreation, sport and culture and education which increased 0.3 per cent, respectively, compared to the previous month,” DOSM said.

However, it said the prices of furnishings, household equipment and routine household maintenance along with health, insurance and financial services did not register any increase and thus, to a certain extent, offset the increase in inflation.

Core inflation, which measures changes in the prices of all goods and services, excluding prices of fresh food and administered prices of goods by the government, increased by 1.9 per cent in May 2024, the same rate as recorded in April 2024. DOSM said the increase was mainly driven by restaurant and accommodation services as well as personal care, social protection and miscellaneous goods and services, which went up 3.3 and three per cent, respectively.

XINHUA – Chinese automaker BYD yesterday unveiled its third electric vehicle (EV), the SEAL, in Japan, as the company marches into the country’s sedan market, reported Xinhua.

The SEAL will be available in two versions, both with a battery capacity of 82.56 kilowatt-hour, according to BYD Auto Japan Inc at a press conference in Tokyo, announcing the kickoff of the sedan’s retail sales nationwide.

The base model, priced at JPY5.28 million (about USD33,110), offers a driving range of about 640 kilometres (km), while the all-wheel-drive (AWD) version went on sale at JPY6.05 million with a driving range of 575km.

Deliveries are expected by the end of July for the base model and the end of August for the AWD version.

Highlighting safety, sporty performance, and comfort, the newly introduced sedan features BYD’s “blade battery”, known for its long range, high energy density, and extended lifespan.

Positioned as an “e-sport sedan”, the SEAL for Japan marks BYD’s aim at the local sedan market, said president of BYD Auto Japan Atsuki Tofukuji, adding he hoped the introduction of this model will significantly boost sales in the third and fourth quarters of the year.

Director of marketing at BYD Auto Japan Tomoaki Endo stressed that extensive market research has been conducted to localise the SEAL model for Japan, so that customers now can switch seamlessly from conventional hybrid or traditional vehicles to the EV.

Back in 2015, BYD’s initial delivery of electric buses in Kyoto marked its official entry into Japan. Since announcing its entry into the Japanese passenger car market in 2022, BYD had introduced two models, the DOLPHIN, a compact car, and the Atto 3, a sports utility vehicle, aiming to provide Japanese customers with a wide range of vehicle experience.

Tofukuji also noted that BYD plans to launch a new model in Japan every year. “We want to become a frontrunner of EV imports to Japan,” he said.

BYD, which now runs 55 locations across the country, plans to increase the total to 90 by the end of the year.

BERNAMA – The ringgit ended higher against the US dollar yesterday as a higher-than-expected Consumer Price Index (CPI) print for May suggests that Bank Negara Malaysia (BNM) may keep the Overnight Policy Rate (OPR) steady, supporting the local currency, said an analyst.

At 6pm, the ringgit traded at 4.7035/7070 versus the greenback compared with Monday’s close of 4.7110/7150.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that Malaysia’s latest CPI data for May at two per cent is higher than consensus estimates. This may suggest that Bank Negara Malaysia (BNM) might be inclined to keep the OPR steady.

“Malaysia’s inflation rate has risen from just 1.5 per cent in January 2024 to two per cent in May. BNM may be keen to maintain the OPR at three per cent throughout the year to sustain the current monetary stance and control inflation. “This comes at a time when developed economies have begun their monetary easing cycle. A series of policy changes are expected to impact the inflation rate, moving forward,” he told Bernama.

Meanwhile, the ringgit closed mostly lower against a basket of major currencies. It depreciated against the Japanese yen to 2.9513/9537 from yesterday’s close of 2.9508/9535, fell vis-a-vis the British pound to 5.9687/9732 from 5.9679/9730, and improved versus the euro to 5.0440/0478 from 5.0511/0554.

The ringgit was also higher against its ASEAN peers. It rose versus the Thai baht to 12.8294/8431 from 12.8383/8541 at Monday’s close, appreciated against the Singapore dollar to 3.4763/4792 from 3.4811/4843, gained vis-a-vis the Indonesian rupiah to 287.1/287.5 from 287.3/287.7, and increased against the Philippine peso to 8.00/8.01 from 8.01/8.02 previously.

XINHUA – Thailand’s auto production continued to shrink in May due to lower output for pickup trucks and passenger cars amid a sluggish economy, data from the Federation of Thai Industries (FTI) showed yesterday.

Thai auto manufacturers produced 126,161 vehicles last month, down 16.19 per cent from a year earlier and accelerating from an 11.02 per cent plunge in April, owing to weak domestic demand and the capacity of electric vehicle (EV)production, which remained in the early stages, according to the FTI.

Battery EV manufacturing increased in May as production picked up pace, while that of hybrid EV expanded 50.71 per cent to 15,354 units, the FTI said in a statement.

For the first five months of 2024, auto production fell 16.88 per cent over the previous year to 644,951 units, said Surapong Paisitpattanapong, the FTI’s automotive industry club vice president and spokesperson.

Domestic auto sales plunged 23.38 per cent year-on-year to 49,871 units in May as banks toughened lending standards amid high household debt, Surapong told a news conference.

AFP – German chemical maker Covestro unveiled yesterday a EUR400-million (USD430-million) cost-cutting plan, a day after announcing progress in talks about a mammoth takeover by Emirati national energy firm ADNOC.

The annual savings are to be achieved globally by the end of 2028, by cutting material and personnel costs, and EUR190 million of the total would be in Germany, the group said.

But the Leverkusen-based company also said it had agreed with staff representatives not to make any compulsory redundancies at its German sites until the end of 2032.

“The last few years have been challenging for the chemical industry and for Covestro,” said chief executive officer Markus Steilemann, adding that the cost-cutting programme would help secure the group’s “leading position in the global market”.