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PETALING JAYA: Sapura Resources Bhd has redesignated its non-independent non-executive director Reza Abdul Rahim as its executive director and acting managing director (MD), effective today. Sapura stated that the new appointment follows the issuance of show-cause letters to managing director Shahriman Shamsuddin, who remains “on leave of absence”. In a filing with Bursa Malaysia today, the company said Reza would temporarily assume the duties, functions, powers and authorities of the MD.With this appointment, the chief corporate officer Mai Eliza Mior Zubir shall cease to be the officer-in-charge of the company effective Oct 10, it said. It added that further announcements will be made in the event of material developments on the matter.–FREE MALAYSIA TODAY

SINGAPORE: Most Asean equity fund managers are cautious about putting money in new economy companies that have sprouted in South-East Asia from changing consumer behaviour as a result of digitalisation. Portfolios today are still dominated by well-established, money-making old economy stocks of banks, industrial conglomerates and telecommunications providers instead of younger companies in e-Commerce, digital entertainment and online ride-hailing. A few fund managers have capitalised on early investments in such stocks like Sea, Grab and GoTo Gojek Tokopedia, but most have opted for a more conservative approach, avoiding these high-risk sectors altogether, said analyst Hunter Beaudoin at Morningstar Manager Research Services Asia. These nascent firms offer much higher growth prospects and access to innovative technologies than their traditional rivals in the region, but their risks cannot be overlooked, the analyst said. “Most of them are not yet profitable, or are companies that have just turned profitable. “These types of companies’ future shareholder returns can be uncertain as the long-term viability of their business models remains unproven,” Beaudoin said. In the second quarter ended June 30, GoTo, Indonesia’s biggest tech company, remained in the red with an underlying loss of 70 billion rupiah. Etta Putra, a Maybank analyst, said operating loss caused by high discounts and marketing expenses is a structural risk for GoTo. Singapore-based Grab has also continued to bleed with a loss of US$53mil in the quarter ended June 30. Sea, another Singapore-headquartered firm, which owns e-Commerce platform Shopee, beat its rivals to profitability after posting a net income of US$163mil in 2023, from a loss of US$1.66bil in 2022. For the three months ended June 30, Sea reported a net income of US$79.9mil, but it said it “wasn’t all smooth sailing” as that was 75.9% down from the US$331mil generated in the second quarter of 2023. Financial house PhillipCapital warned that Sea’s short-term growth remains challenged by keen rivalry, which means high costs will persist to maintain sales and market share. The difficulty in valuing these companies, due to a limited or lack of track record for growth projections, is also keeping interest at bay. They are often valued based on sales, earnings before interest, tax, depreciation and amortisation, or operating metrics such as gross merchandise value for e-Commerce companies. These do not necessarily translate to profits for shareholders and can incorporate high expectations, which make overvaluations more likely, Beaudoin said. The industries they serve are also competitive and susceptible to fluctuations in the economy, which could result in wide price swings. Such volatility was seen in Sea’s stock price, which soared over 2,000% from its initial public offering (IPO) at US$15 in October 2017 to an all-time high of about US$367 in October 2021. Sea saw an intense rally in its stock price at the start of the Covid-19 pandemic, which pushed it to overtake banking giant DBS Bank as the largest listed Asean company from May 2020 to the end of February 2022. The gains were fuelled by a combination of low interest rates and pandemic-induced demand for its three main business units: mobile gaming through subsidiary Garena, e-Commerce on Shopee and digital financial services via SeaMoney. On Tuesday, Sea was trading at around US$95 on the New York Stock Exchange. — The Straits Times/ANN

SHAH ALAM:  BEST Group officially launched its cargo network in Malaysia. In just two years, BEST Cargo has rapidly risen to become a major driver in Malaysia’s logistics industry, achieving 100% nationwide coverage. This comprehensive network has significantly contributed to the expansion of Southeast Asia’s logistics landscape. During this period, BEST Cargo business saw over 300% growth, a remarkable milestone that reflects the successful integration of global logistics networks with cutting-edge technology and innovation. The success of BEST Cargo operations is deeply rooted in its advanced technology-driven model. Over the past two years, the company has introduced intelligent logistics technology and fully automated sorting systems, drastically improving delivery efficiency and accuracy. With 100% nationwide coverage, BEST Cargo now serves key industries such as e-commerce, manufacturing, and retail, providing a full spectrum of logistics solutions from less-than-truckload (LTL) shipping to large-scale cargo handling. Whether handling domestic logistics demands or complex cross-border shipments, BEST Cargo’s intelligent network has effectively reduced delivery times, lowered operational costs, and optimized overall supply chain efficiency. Transforming Malaysia’s Logistics Sector The arrival of BEST Cargo in Malaysia has brought transformative changes to the local logistics industry. With over 200 service points and self-operated intelligent sorting centers, BEST Cargo has significantly enhanced the logistics infrastructure, fueling the growth of e-commerce and related industries. As Malaysia continues to strengthen its position as a key trade hub in Southeast Asia, the modernization and efficiency of its logistics sector are critical to supporting both domestic markets and cross-border trade. In recent years, Malaysia has witnessed rapid growth in e-commerce and manufacturing, driving a surge in demand for efficient logistics services. BEST Cargo, by integrating global logistics network resources, has provided personalized logistics solutions for these key industries, promoting innovation across the supply chain. In the e-commerce sector, BEST Cargo also partners with major international platforms such as Shopee, Cainiao, and TikTok, ensuring Malaysian businesses and consumers benefit from faster and more reliable logistics services. In addition, BEST Cargo has established strong partnerships with leading local brands, earning widespread market trust and recognition. Driving Bilateral Trade Between China and Malaysia The extraordinary achievements of BEST Cargo operations are powered by technological innovation and the seamless integration of a global logistics network. Commenting on this success, Gavin Lu, General Manager of BEST Inc Malaysia, stated, “Since the launch of BEST Cargo in Malaysia in 2022, we have experienced rapid growth, driven by advanced technology and the support of our global network. We are proud to have achieved nationwide coverage and 300% growth in just two years. This success would not have been possible without the hard work of our team and the trust of our partners. We remain dedicated to providing efficient and precise logistics services that meet diverse customer needs, from small parcels to large cargo.” Looking ahead, Gavin added, “BEST Cargo will continue to focus on technological innovation and enhancing customer experience. We plan to expand our cross-border logistics network across Southeast Asia, offering smarter and more flexible solutions for both local and international customers. We believe that through our technology-driven approach and continuous service upgrades, BEST Cargo will not only maintain its leadership in Malaysia but also become a major force in the global logistics industry.” Celebrating 50 Years of China-Malaysia Diplomatic Relations and Stimulating Bilateral Trade The year 2024 marks the 50th anniversary of diplomatic relations between China and Malaysia, an important milestone that highlights the deepening economic ties between the two nations. The launch of BEST Cargo in Malaysia has undoubtedly injected new energy into the development of bilateral trade. Through its expertise in cross-border logistics and global network, BEST Cargo provides strong logistical support for trade between China and Malaysia. Aligned with the Belt and Road Initiative, BEST has opened new channels for Malaysian businesses to access the Chinese market and beyond, while also offering Chinese companies efficient and reliable logistics solutions as they expand into Southeast Asia. As economic cooperation between China and Malaysia continues to grow, BEST Cargo is playing a pivotal role in driving collaboration in logistics and supply chain development. Leveraging its intelligent logistics technology, BEST Cargo has accelerated the flow of goods between the two countries, contributing to steady growth in bilateral trade. Particularly in the cross-border e-commerce and manufacturing sectors, BEST Cargo offers flexible and efficient logistics solutions that enhance trade efficiency and market competitiveness. Technology-Driven Growth and Value-Added Services for the Future BEST Cargo is not just a logistics company but a seamless integrator of technology and service. In addition to its core logistics services, BEST Cargo offers various value-added services such as pre-shipment inspections, cash on delivery (COD), and cargo insurance, ensuring that every shipment is secure and reliable. This comprehensive service model has earned BEST Cargo the trust and loyalty of its customers. Moving forward, BEST Cargo will continue to drive the transformation of the logistics industry through technological innovation. With its extensive cargo network and “one-stop” cross-border services, BEST Cargo is breaking new boundaries and connecting the world. As China-Malaysia economic relations deepen further, BEST Cargo remains committed to promoting bilateral trade and driving regional economic cooperation.