KUALA LUMPUR, Aug 19 (Bernama) -- Bursa Malaysia ended lower on Wednesday, as elevated United States (US) Treasury yields and weakness in technology stocks weighed on investor sentiment, an analyst said. However, gains in healthcare and telecommunications stocks provided some support to the broader local market. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.04 points, or 0.12 per cent, to 1,731.32 compared with Tuesday’s close of 1,733.36. The benchmark index opened 1.39 points weaker at 1,731.97, and fluctuated between 1,725.95 and 1,733.44 throughout the day. On the broader market, losers outpaced gainers 701 to 478, while 563 counters were unchanged, 1,131 untraded and 16 suspended. Turnover shrank to 3.31 billion units valued at RM2.92 billion from 3.74 billion units valued at RM2.91 billion on Tuesday.
South Korea's financial authorities are set to provide at least 560 billion won (US$404.55 million) in liquidity support to small businesses impacted by recent payment delays from e-commerce platforms, the finance ministry announced on Monday.
Key Developments:
Government Intervention:
- The intervention follows an investigation into e-commerce firms TMON and WeMakePrice, owned by Singapore-based Qoo10, for failing to pay vendors.
Official Statement:
- Vice finance minister Kim Beok-seok emphasized the government's commitment to minimizing damage, stating, "The responsibility lies with the e-commerce platforms, but the government cannot just watch the situation."
Support Measures:
- The support will be provided mainly through low-interest policy loans for small businesses.
- Additional measures include extensions for existing loan repayments and tax payments.
Vendor Concerns:
- TMON and WeMakePrice have stated they are working to minimize damage to customers and are informing them about ways to cancel credit card payments.
- Lines of concerned customers were seen outside the offices of TMON and WeMakePrice in Seoul last week.
Company Response:
- Ku Young-bae, the South Korean founder of Qoo10, apologized for the delays and mentioned efforts to resolve the issue.
- Missed payments have accumulated to approximately 210 billion won, according to government estimates.
- Qoo10 reported customer damage of around 50 billion won but did not provide a detailed plan to address the vendor impact.
Financial Commitment:
- Qoo10 has informed financial authorities it would secure US$50 million to remedy the situation.
Company Background:
- Qoo10, founded in 2010 by Ku Young-bae, also operates in Japan, China, Hong Kong, Malaysia, and Indonesia.
- Ku previously founded South Korean e-commerce platform Gmarket, which was sold to eBay in 2009.
The South Korean government's swift response aims to alleviate the financial strain on small businesses and vendors affected by the payment delays, while ongoing efforts by the involved companies seek to restore normal operations.
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