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Pestec International Bhd has announced that its wholly owned subsidiary, Pestech Sdn Bhd (PSB), has been served with a winding-up petition over an alleged debt of US$2.39 million (approximately RM9.69 million). The petition was filed by Pestech Engineering Technology (China) Co Ltd (PETC), a separate entity that is not affiliated with Pestec, despite the similarity in names, the company clarified in a filing to Bursa Malaysia. PSB, which specialises in high-voltage electrical systems, is now facing legal proceedings as a result of the petition. Pestec said it has sought legal advice and is taking all necessary measures to address the matter. The company also stressed that it does not anticipate any significant financial or operational impact from the petition. The court has set the first case management for April 6, 2026, marking the start of the legal process. Pestec’s shares last closed at 11 sen, giving the company a market capitalisation of RM268.52 million. The stock has declined roughly 40% over the past year, reflecting market pressures and investor caution amid the legal development. The company reassured shareholders that it remains committed to monitoring the situation closely and will provide updates as the case progresses.

Hengyuan Refining Co Bhd is aiming to return to profitability in the financial year ending Dec 31, 2026 (FY2026), after recording losses for three consecutive years amid prolonged volatility in the global oil market. The Port Dickson-based refiner said it has revamped its financial and risk management strategies and secured more stable crude oil feedstock supplies to support its turnaround. Chief financial officer Yeo Bee Hwan said these initiatives have strengthened the group’s foundation for a sustainable recovery. The group’s rights issue exercise, completed in October 2025, raised RM234 million and significantly bolstered its balance sheet. The funds enabled Hengyuan to secure more reliable crude supply, providing greater flexibility to optimise refinery throughput and lower production costs, which in turn supports healthier margins. Hengyuan began posting losses in FY2022 following heightened geopolitical tensions, particularly the prolonged Russia-Ukraine conflict. This led to sharp swings in global crude oil prices, which fluctuated between US$70 and US$112 per barrel within a year, severely disrupting supply-demand dynamics and refined product pricing. The volatility also affected the group’s hedging positions, weighing on earnings and prompting the suspension of dividend payments. Since 2022, Hengyuan’s share price has fallen about 74%, hitting a record low of 73 sen in November last year. In response, the company has recalibrated its hedging approach, shifting towards shorter-term contracts to better manage rapid movements in oil prices and protect margins. Early signs of recovery have emerged. Revenue bottomed out in the January–March quarter, while Hengyuan recorded a net profit of RM21.04 million in the July–September quarter of FY2025 — its strongest quarterly performance since the second quarter of FY2022. However, revenue for the third quarter declined to RM3.62 billion from RM4.12 billion a year earlier, reflecting ongoing market challenges. For the nine months ended Sept 30, 2025, the group still posted a net loss of RM332.65 million, largely due to losses incurred in the first half of the year. Crude oil prices have since stabilised at around US$63–64 per barrel, providing a more predictable operating environment. Hengyuan refines crude oil into gasoil (diesel), mogas (RON95 petrol) and jet fuel, supplying Malaysia’s transport and logistics sectors. Its key customers include Shell, Petroliam Nasional Bhd (Petronas), Petron and Five, with Shell accounting for about 60% of its refined product output. The company has also benefited from Malaysia’s petrol subsidy programme, Budi95, which compensates refiners directly for the price difference on subsidised RON95 petrol, supporting higher fuel consumption. Since 2017, Hengyuan has invested more than RM2.2 billion in refinery upgrades, largely funded through internal resources. The refinery has a production capacity of up to 156,000 barrels per day, with current utilisation at around 110,000 to 120,000 barrels per day, leaving room for further optimisation. As at end-September 2025, Hengyuan had cash and bank balances of RM676.37 million against borrowings of RM1.47 billion, resulting in a net gearing ratio of 1.02 times. Shares in Hengyuan closed at 85 sen, valuing the group at RM507 million. The stock has gained more than 9% since the start of the year, reflecting improving investor sentiment over its recovery prospects.

BigPay has integrated its app with Bank Rakyat’s BRICK platform, enabling users to access information and apply for Shariah-compliant personal financing directly through the app. Users who tap the financing option in the BigPay app will be redirected to Bank Rakyat’s BRICK virtual banking platform, where they can review product details and submit their applications seamlessly. BigPay chief operating officer Vijayanathan Sockanathan said the collaboration supports the company’s goal of improving access to Islamic financing and empowering Malaysians to make more informed financial decisions. “This partnership strengthens BigPay’s mission to widen access to Islamic financing by offering greater transparency and convenience through the BigPay app,” he said. Through the platform, eligible customers can apply for Bank Rakyat’s Personal Financing-i InstaCash of up to RM50,000, with profit rates starting from 7.60% per annum. While the offering is aimed at active BigPay users, it is also available to other Malaysians, who can download the BigPay app to access Bank Rakyat’s BRICK platform.

Singapore-based digital finance firm Atome has successfully finalised the renewal and expansion of its syndicated debt facility to US$345 million (RM1.4 billion), a move aimed at supporting its aggressive growth plans across Southeast Asia, the company announced on Tuesday. The expanded facility marks a significant increase from the US$200 million facility Atome secured in 2024, reflecting confidence from existing and new lenders in the company’s business model and growth prospects. Atome, a part of Singapore’s Advance Intelligence Group and backed by prominent investors including SoftBank Vision Fund 2 and Warburg Pincus, plans to deploy the funds to scale its buy-now-pay-later (BNPL) services, expand its lending products, and accelerate adoption of its Pay Later Anywhere card in key markets such as Singapore, Malaysia, and the Philippines. “We are now even better positioned to support a rapidly growing, healthy, and profitable loan book, while continuing to meet the evolving needs of our customers across the region,” said Andy Tan, Atome’s Chief Commercial Officer. The debt facility renewal saw HSBC reprising its roles as structuring bank, mandated lead arranger, and book runner, while DBS Bank joined as a mandated lead arranger and book runner. Returning lenders include Sumitomo Mitsui Banking Corporation’s Singapore branch, Baiduri Bank, and Cathay United Bank, with new participants Fubon Bank and Shanghai Pudong Development Bank coming on board for the first time. The company said the enhanced facility will provide Atome with greater financial flexibility to capitalise on the growing demand for digital finance solutions in Southeast Asia, enabling the firm to expand its footprint and support a growing base of consumers seeking flexible payment and credit solutions. This strategic financing move underscores Atome’s ambition to cement its position as a leading BNPL and digital finance provider in Southeast Asia, while also providing the company with the resources to innovate, diversify its product offerings, and strengthen its regional presence.

Japan saw a surge in business bankruptcies in 2025, reaching a 12-year high as rising material costs and worsening labor shortages hit companies, according to a survey by Tokyo Shoko Research. Last year, 10,300 companies went under, up 2.9% from 2024 and marking the fourth consecutive annual increase, though growth slowed from a 15.1% jump the previous year. Labor-shortage-related bankruptcies also hit a record 397 cases. The data highlights the pressures of inflation and a tight job market on Japanese businesses, which could keep the Bank of Japan cautious on interest rates. Rising costs from a weak yen, lingering debt, trade tensions, and strained China relations were cited as additional risks. A separate Cabinet Office survey showed that consumer-facing firms, such as retailers, experienced declining sentiment for the second straight month in December, with an index reading of 48.6. Rising living costs and fewer Chinese tourists were cited as factors affecting consumption and business performance.