KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: Japan’s ruling Liberal Democratic Party (LDP) has named Daishiro Yamagiwa as the new chairman of its semiconductor group, tasked with overseeing a ¥10 trillion (RM289.17 billion) initiative to strengthen the country’s chip and AI industries.
Former economic revitalization minister Daishiro Yamagiwa has been appointed to lead the LDP’s semiconductor group, succeeding Akira Amari, who lost his seat in last month’s election. This move aligns with Prime Minister Shigeru Ishiba’s bold pledge to secure Japan’s position in the global semiconductor race.
Key Developments:
Massive Public Investment in Chips
- The Japanese government plans to allocate over ¥10 trillion to support next-generation semiconductor and AI development.
- This funding builds on ¥4 trillion previously budgeted, including ¥920 billion for Rapidus Corp, which aims to mass-produce advanced logic chips by 2027.
Funding Breakdown (Draft Plan):
- ¥2.2 trillion: Transfers from fiscal investment and loan accounts to energy accounts, supported by special energy bonds.
- ¥1.6 trillion: Reallocated funds, including money returned to the treasury and proceeds from selling government shares in Shoko Chukin Bank.
- ¥2.2 trillion: Green transformation bonds and treasury returns from ministry fund reviews.
- ¥4 trillion+: Private-sector financial support through investments and loan guarantees.
Legislative Challenges
- The LDP must collaborate with opposition parties to pass legislation enabling the funding mechanism, as the coalition no longer holds a parliamentary majority.
Priorities for the Funds:
- ¥6 trillion: Next-generation chip development and power chip mass production.
- ¥4 trillion: Financial support for private sector investment and loan guarantees.
Why It Matters:
Semiconductors are viewed as critical to future industries, and Japan’s massive investment aims to ensure the country remains competitive in this sector. Yoshihiro Seki, LDP group secretary general, emphasized that Rapidus Corp must succeed to solidify Japan’s position as a leader in chip innovation.
Despite Yamagiwa’s controversial past ties to the Unification Church, the LDP is moving forward with its ambitious plans, which include a new economic stimulus package expected later this week. The success of these initiatives will depend on overcoming legislative hurdles and securing bipartisan support.
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