KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Singapore's forthcoming government-owned gas company, Gasco, will price its gas supply to power generation companies on a cost-plus basis, with a regulated fee to cover operating costs, according to The Business Times. The move aims to ensure price competitiveness under a centralized gas procurement framework, rather than to maximize profits.
Key Takeaways:
Cost-Plus Pricing Model for Gas Supply: The new pricing strategy for Gasco will charge power generation companies based on the cost of gas plus a regulated fee to cover the operational costs. This approach is intended to maintain competitive gas prices while ensuring the sustainability of Singapore’s power generation needs.
Legislative Changes to Support Centralized Gas Procurement: Singapore’s Parliament passed laws on Monday empowering the Energy Market Authority, a government statutory board, to direct power generation companies to purchase natural gas from Gasco. Additionally, the authority can impose power rations during emergencies to ensure energy stability.
Focus on Price Competitiveness and Energy Security: The new framework is designed to secure reliable and competitively priced natural gas for power generation, supporting Singapore's broader energy strategy in a cost-effective manner. The initiative emphasizes energy security and stability in the face of global supply uncertainties.
The introduction of centralized gas pricing reflects Singapore's proactive approach to managing its energy market, balancing cost recovery with maintaining competitive energy prices.
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