MAYASIA BUSINESS OUTLOOK8Energy giant Shell is reportedly in discussions with Saudi Arabia's state-owned Saudi Aramco to offload its gas station business in Malaysia, which constitutes the second-largest network in the country. Sources familiar with the discussions informed Reuters about these talks, suggesting that a potential deal could amount to up to US$1 billion.While Shell declined to comment on the ongoing negotiations, it emphasized the significance of Malaysia as a key market for the company. Similarly, Saudi Aramco refrained from providing any comments on the matter.Shell currently fully owns approximately 950 fuel stations throughout Malaysia, making it one of the largest networks in the Southeast Asian nation after Petronas. Discussions regarding the potential sale commenced in late 2023, and sources suggest that a deal could be finalized in the coming months, with an estimated value ranging from 4 billion to 5 billion ringgit ($844 million to $1.06 billion).Apart from its fuel station business, Shell is also involved in selling industrial lubricants, offshore crude oil and natural gas production in Sarawak and Sabah states, and has stakes in two liquefied natural gas (LNG) ventures.The proposed sale aligns with Shell's strategy, led by CEO Wael Sawan, to streamline its operations and focus on the most profitable segments. As part of this strategy, Shell aims to divest around 500 gas stations this year and the next. Additionally, the company is currently in the process of selling its Singapore refinery and petrochemical complex. NEWSROOMSHELL TO SELL ITS MALAYSIAN DIVISION TO SAUDI ARAMCOChina's average daily home sales during the major May Day public holiday sank 47 percent from a year earlier and were down around 30 percent from pre-pandemic levels in 2019 for the same holiday period, according to a private survey on Monday (May 6). Home sales fell in 19 of 22 surveyed cities during the five-day May Day compared to the same period in 2023, and they were down more than 60 percent in the mega cities of Guangzhou and Shanghai, according to data from the China Index Academy, one of the country's largest independent real estate researchers.Chinese authorities have been ramping up measures to prop up the troubled sector, but analysts say many of the policies are piecemeal in nature or have a limited, short-term impact. The policymakers at a politburo meeting last week highlighted they would improve policies to clear housing inventory."The new housing market is still under adjustment pressures," said the research firm, adding, "There is more room for lowering the downpayment ratio, reducing mortgage interest rates and transaction taxes and fees."The southwestern city of Chengdu eased home purchase limits last month and Beijing last week also announced "optimised measures" to allow some residents to buy a new flat in outer districts to boost home sales. CHINESE HOME SALES DOWN BY 47 PERCENT, SAYS SURVEY
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