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PETALING JAYA, Genting Malaysia Bhd’s (GENM) loss-making US subsidiary, Empire Resorts Inc (ERI), is divesting its non-casino assets in New York state for US$525 million (RM2.2 billion) in a move to clear its debt and acquire new land. GENM said the proposed deal will “deliver long-term strategic and financial benefits” as it allows ERI to fully redeem its US$300 million (RM1.3 billion) bond maturing in November 2026, leaving the unit debt-free for the first time in over two decades of losses. Genting Malaysia’s US$41 million (RM173 million) buyout of Empire Resorts raised eyebrows among some investors and analysts.  “The proposal underlines GENM’s commitment to strengthening its competitive position in New York’s gaming market and the wider northeastern US region,” the group said in a Bursa Malaysia filing. The restructuring is expected to lower financing costs, increase ERI’s asset base, and provide RM42.1 million in additional cash. Under the deal, ERI will sell the 332-room Resorts World Catskills, the 99-room Alder Hotel, the 18-hole Monster golf course, the 2,500-seat RWC Epicenter, and several restaurants to the Sullivan County Resort Facilities Local Development Corp (SCRFLDC). Proceeds will also fund the RM848 million purchase of 1,554.6 acres of land from US-listed real estate investment trust EPR Properties. This includes 420 acres housing Resorts World Catskills and 1,134.6 acres of vacant land earmarked for future development. ERI will lease back the land from SCRFLDC until 2066 and continue managing the assets under a 20-year agreement, with two automatic five-year renewals. Final terms for the sale, lease, and management deals are still being negotiated. This restructuring follows GENM’s controversial US$41 million (RM173 million) acquisition of the remaining 51% stake in ERI from Kien Huat Realty III Ltd, the Lim family’s private vehicle. The deal, announced three months ago, also involved GENM taking over a US$39.7 million (RM167 million) debt ERI owed Kien Huat. The transaction drew criticism from analysts as “expensive and potentially profit-dilutive,” raising concerns over related party dealings. Bursa Malaysia had also queried GENM extensively on the deal. According to GENM’s 2024 annual report, deputy chairman and CEO Tan Sri Lim Kok Thay, 73, and his son, deputy CEO Datuk Lim Keong Hui, 40, hold a deemed interest of 49.35% in GENM through family stakes. GENM’s shares gained three sen, or 1.5%, to close at RM2.02 today, giving the group a market capitalization of RM12 billion. However, the stock remains down 10.2% year-to-date.

TOKYO, Rakuten Bank Ltd is likely to refrain from actively purchasing Japanese government bonds (JGBs) until the Bank of Japan (BOJ) delivers further interest rate hikes, reflecting cautious sentiment over policy uncertainty. The online lender, part of e-commerce giant Rakuten Group, has seen deposits nearly triple in five years to ¥11.7 trillion (US$79 billion) as more customers turn to its digital services. While still small compared with Japan’s megabanks, the growing cash pool is prompting the bank to seek new investments. For now, JGBs remain unattractive due to market volatility. Rakuten Bank avoided fresh JGB purchases in the first half of 2025, holding ¥617 billion worth of bonds to maturity as of June. “We won’t pursue aggressive JGB buying until we see at least one or two more rate hikes,” CEO Tomotaka Torin said. “Our priority is running operations that can withstand rising yields.” Japanese bonds have been under pressure as the BOJ gradually shifts from negative rates, pushing yields higher—especially on longer maturities. Analysts increasingly expect another BOJ hike by April, with swaps pricing in a 25-basis-point increase. Torin added that the bank is taking a similar approach to mortgages, avoiding ultra-low-rate loans while yields climb. “Once margins normalize after rates rise, that will be the time to accelerate lending,” he said. Rakuten Bank’s loan book, including mortgages and credit card financing, stood at ¥4.76 trillion in June, up 12% year-on-year. Financial services, including Rakuten Bank, are becoming a key profit driver for Rakuten Group, contributing more than half of group EBITDA.

KUALA LUMPUR, CelcomDigi Bhd, Maxis Bhd and YTL Power International Bhd have each provided additional shareholder advances of RM116.67 million to Digital Nasional Bhd (DNB) to fund the state-owned 5G wholesaler’s operations and working capital needs, as Malaysia transitions to a dual 5G network model. The fresh capital injection follows U Mobile Sdn Bhd’s exit from DNB’s shareholder line-up, with its 100,000 shares redistributed among CelcomDigi, Maxis, YTL Power and the Minister of Finance Inc (MOF Inc). U Mobile has been tasked with building the country’s second 5G network. According to bourse filings, the latest advances bring CelcomDigi’s, Maxis’s and YTL Power’s total investments in DNB to RM350.03 million each, comprising earlier contributions of RM233.23 million plus the new RM116.7 million tranche. Each company now holds a 19.44% stake in DNB, while MOF Inc remains the largest shareholder with a 41.67% interest and RM750.3 million in combined equity and advances, including a RM250.2 million government loan. Under the shareholder agreement, every ringgit of advance carries the same rights as an ordinary share, including voting privileges. The advances are interest-free and only repayable by mutual agreement, though they may also be treated as prepayments under access agreements with DNB. Risks Ahead for Dual 5G RolloutCelcomDigi cautioned that the entry of U Mobile as a second network operator could affect DNB’s revenue if telcos divert traffic to the new provider. DNB may also require more funding to sustain rollout momentum and maintain service quality, it added. To mitigate risks, DNB has set up a steering committee with regular reporting to shareholders. Both CelcomDigi and Maxis noted that the latest advances will not materially impact their earnings, net assets or gearing. On Friday, CelcomDigi’s shares closed seven sen or 1.82% lower at RM3.77, valuing the group at RM44.23 billion. Maxis eased three sen or 0.85% to RM3.48, giving it a market cap of RM27.27 billion, while YTL Power slipped two sen or 0.47% to RM4.20, with a market value of RM36.18 billion.

JAKARTA, President Prabowo Subianto said Indonesia’s new sovereign wealth fund, Danantara, will be a major engine for job creation and economic growth, managing assets of over $1 trillion. In his first state address to parliament since taking office in October, Prabowo said Danantara will drive industrialization of natural resources and strategic sectors, creating millions of “quality jobs,” particularly in downstream industries. He added that processing minerals and mining products will boost export value and strengthen the economy, noting unemployment is now at its lowest since the 1998 Asian financial crisis. President Prabowo Subianto greets his guests after delivering his annual state address at the People’s Consultative Assembly in Jakarta, Friday, Aug. 15, 2025.  As part of wider efforts, the government has launched 80,000 Merah Putih Cooperatives to support rural communities, farmers, and fishermen. These cooperatives supply subsidized essentials like rice, cooking oil, and fertilizer, while creating new jobs across villages. In the first half of 2025, investment rose 13.6% year-on-year to Rp 942 trillion ($58.3 billion), generating 1.2 million jobs. The economy grew 5.12% in Q2 2025, and Prabowo said growth is set to accelerate despite global challenges. He also claimed his administration had saved Rp 300 trillion ($18.6 billion) in state funds by cutting wasteful spending, redirecting resources toward more productive uses.

KUALA LUMPUR, Kenanga Investment Bank Bhd (Kenanga IB) has raised its job win forecasts for Gamuda Bhd to RM22 billion in FY2026 and RM27 billion in FY2027, up from RM20 billion and RM25 billion previously. The increase was largely attributed to additional projects in Australia. In a research note, the bank maintained its FY2025 job win estimate at RM17 billion. It projected Gamuda’s construction revenue to hold steady at RM15 billion in FY2026 before climbing to RM22 billion in FY2027, compared to its earlier forecast of RM18 billion. Kenanga IB said there are no changes to earnings forecasts for FY2025 and FY2026. However, it revised its FY2027 earnings forecast upward to RM1.95 billion from RM1.69 billion. The investment bank highlighted that data centres remain the main driver of Malaysia’s tender activity, with five to seven project results expected soon. The outcome of Pearl Computing’s data centre in Springhill is anticipated in 2026, with Gamuda expected to secure at least half of the upcoming contracts. Other potential wins include the Ulu Padas water supply project, the Penang Light Rail Transit Package 3, and the Kerian water treatment and distribution infrastructure, which is likely to be awarded in the first half of 2026. Gamuda is also seen as a strong contender for another project in Taiwan. Kenanga IB believes these developments will help Gamuda achieve its target outstanding order book of RM40 billion to RM45 billion by end-2025. In addition, Gamuda expects more renewable energy and transmission projects in Australia, in line with the country’s push to reach 82% renewable generation by 2030. “Gamuda’s diversification and earnings visibility give us confidence in its growth trajectory,” the bank said, maintaining its ‘outperform’ call on the stock with a higher target price of RM6.10.