International News 31/05

May 31, 2024 No. 85

Google is to invest US$2 billion in Malaysia.

Google has announced plans to invest $2 billion in Malaysia, with the objective of establishing its first data centre and Google Cloud region in the country. The data centre and cloud region will be located at Sime Darby Property's Elmina Business Park in Central Selangor. Google's CEO, Ruth Porat, stated that the partnership between Malaysia and Google aims to support innovation and unlock the potential of digital transformation. The data centre will provide services such as search, maps, and Workspace, as well as facilitating the delivery of artificial intelligence (AI) services. Furthermore, the cloud centre will serve the needs of local companies and public sector organisations. This investment is part of a growing trend among global technology companies to expand their operations in Southeast Asia. Microsoft has also previously announced investments of $2.2 billion in Malaysia and $1.7 billion in Indonesia.


The International Monetary Fund (IMF) has revised its economic outlook for China.

The International Monetary Fund (IMF) has revised its forecast for China's economic growth this year, increasing the projection from 4.6% to 5%. This revision is based on China's strong economic performance in the first quarter of 2024. The IMF has also revised China's GDP targets for 2024 and 2025, forecasting growth of 5% and 4.5% respectively. However, China's economic growth is expected to slow to 3.3% by 2029 due to factors such as an ageing population and slower productivity expansion. Gita Gopinath, the First Deputy Managing Director of the IMF, attributed the increase in the projection to stronger-than-expected first-quarter GDP growth and recent policy measures. Other financial institutions, including BNP Paribas and Goldman Sachs, have also revised their forecasts for China's economic growth, with expectations of achieving the 5% target. Overall, there is a positive outlook for China's economic performance in the short term, with a slight deceleration anticipated in the long term.


Adani Enterprises is seeking to raise up to IDR 32 trillion in funds.

Adani Enterprises has announced that its board has approved a fundraising of up to INR 166 billion (USD 2 billion). The money will be raised through the issuance of shares or other securities via an eligible institutional placement or other permitted means. The reason for the fundraising and the issue price of the securities were not specified. This announcement follows Adani Energy Solutions's revelation of plans to raise up to INR 125 billion through placement of eligible institutions or other permitted means. According to a report from Moneycontrol, both companies were expected to collectively raise between USD 3.5 billion and USD 4 billion. Despite a 38% drop in profit recently reported by Adani Enterprises, shares of the company rose by 0.12% on Tuesday and have gained 16% year-to-date.