KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
Thousands of German workers from the electrical engineering and metal industries, including employees at major companies like Porsche, BMW, and Mercedes, launched nationwide strikes on Tuesday to demand higher wages. This comes amid growing concerns about the future of Germany's industrial sector as it grapples with high costs, weak exports, and increasing competition from abroad.
The strikes, organized by the IG Metall union, have added pressure to a business environment already struggling with declining competitiveness. Companies like Volkswagen are considering drastic measures, including the possible closure of three factories, mass layoffs, and 10% wage cuts. This would mark the first time in Volkswagen's 87-year history that it closes plants in Germany.
Germany’s economic challenges have also intensified political instability, putting pressure on Chancellor Olaf Scholz's coalition government. Scholz is meeting with business leaders, including Volkswagen CEO Oliver Blume, to discuss the crisis, though expectations for quick resolutions are low. Finance Minister Christian Lindner has separately announced a different summit on the same day, highlighting the government’s internal dysfunction.
Economic surveys indicate that Germany is facing not just a temporary downturn but a structural crisis. The German Chamber of Commerce and Industry (DIHK) warned that the country risks becoming an economic burden for Europe. Meanwhile, a report by the VDA auto industry association projected 186,000 job losses in the German car industry by 2035, largely driven by the transition to electric vehicles.
At the heart of the strikes, workers are demanding a 7% wage increase, far above the 3.6% offer from employers. Companies argue that the wage demands are unrealistic given the current economic climate, but workers insist they deserve their fair share.
“Wage restraint does not create jobs,” said Harald Buck, works council chairman of Porsche AG at the Zuffenhausen plant in Stuttgart, where 4,000 employees participated in strikes on Tuesday.
The next round of negotiations between Volkswagen and labor representatives is set for Wednesday, with tensions running high as Volkswagen’s works council threatens to break off the talks if progress is not made.
Comments
Post a Comment