KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Volkswagen has entered tense pay negotiations with its powerful trade unions under the looming threat of factory closures in Germany, a potential first for Europe’s largest automaker. The discussions, which began Wednesday, could shape the company’s approach to layoffs and cost-cutting measures as it grapples with rising energy and labor costs.
The talks are set against a backdrop of high tensions, as the IG Metall union, representing a significant portion of Volkswagen’s workforce, has vowed to resist any attempts at plant closures. These negotiations will also determine new labor agreements for 130,000 VW workers in Germany after the company recently ended employment guarantees at six of its western German plants, which had been in place since the mid-1990s.
Volkswagen argues that high operating costs in Germany are hampering its ability to compete, especially with Chinese rivals aggressively targeting the electric vehicle (EV) market in Europe. Arne Meiswinkel, Volkswagen's personnel chief, emphasized the urgency of the situation: "Germany is falling behind the competition. Our core Volkswagen brand is particularly affected. We must work together to restructure our company."
Industry-Wide Struggles in Germany
Volkswagen’s challenges are part of a broader crisis in Germany’s industrial sector, which is contending with labor shortages, rising costs, and increasing competition. Other major German companies, including BASF and Thyssenkrupp, are similarly exploring cutbacks, and automakers like Mercedes-Benz and BMW have recently lowered their profit forecasts due to weak demand in China.
The outcome of these talks could significantly impact the future direction of Volkswagen’s workforce and its competitive stance in the global market.
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