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Investment & Market Trends

ACE Market-Bound VETECE Holdings Berhad’s IPO Oversubscribed by 187.41 Times

KUALA LUMPUR: Enterprise information technology (“IT”) solutions provider VETECE Holdings Berhad (“VETECE”) has attracted significant investor interest for its upcoming initial public offering (“IPO”), which has been oversubscribed by 187.41 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). VETECE, through its subsidiaries (collectively referred to as the “Group”), specializes in the implementation of enterprise IT solutions, offering maintenance, support, and professional services, along with the resale of hardware and software. The Group’s portfolio includes application integration and Single Sign-On (“SSO”) management solutions, data engineering and analytics solutions, Customer Relationship Management (“CRM”) solutions, software testing solutions, as well as on-premise and cloud infrastructure solutions. By collaborating with technology leaders such as Oracle, WSO2, Salesforce, and Teradata, VETECE delivers customized IT solutions to clients across sectors including telecommunications, financial services, and technology. Among its prominent clients are Telekom Malaysia Berhad, Telstra Corporation Limited, and China Construction Bank. The Group’s IPO consists of 137,200,000 ordinary shares, comprising a public issue of 98,000,000 new ordinary shares (“Issue Shares”), representing 25.0% of the enlarged issued share capital. Priced at RM0.25 per share, VETECE expects to raise RM24.50 million from this public issue. Additionally, the IPO includes an offer for sale of 39,200,000 existing shares (“Offer Shares”), accounting for 10.0% of the enlarged issued share capital, by way of private placement to selected investors. VETECE received a total of 31,054 applications for 3,692,919,000 shares, valued at approximately RM923.23 million, for the 19,600,000 shares allocated to the Malaysian public, reflecting an oversubscription rate of 187.41 times. The 9,800,000 Issue Shares available for application by eligible directors, key senior management, employees, and contributors to VETECE’s success have been fully subscribed. Meanwhile, the 68,600,000 Issue Shares and 39,200,000 Offer Shares offered via private placement to selected investors have also been fully placed out. Successful applicants will receive their notices of allotment by August 26, 2024. VETECE’s Executive Vice Chairman, Mr. Vernon Tee Chee Chiang, commented, “The overwhelming response to our IPO reflects strong investor confidence in VETECE’s growth potential. The funds raised will be critical in accelerating our strategic initiatives, expanding our market reach, and enhancing our portfolio of enterprise IT solutions. By focusing on innovation and meeting customer needs, we aim to strengthen our position as a leading provider of enterprise IT solutions both domestically and regionally.” Datuk Roslan Hj Tik, Executive Director and Head of Group Investment Banking and Islamic Banking at Kenanga Investment Bank Berhad, added, “We are thrilled with the overwhelming response to VETECE’s IPO, which demonstrates strong market confidence in the company’s growth trajectory and prospects. We are proud to support VETECE on this significant journey.” VETECE is set to be listed on the ACE Market of Bursa Securities on Wednesday, August 28, 2024. Upon listing, VETECE will have a market capitalization of approximately RM98.00 million, based on an issue price of RM0.25 per share and an enlarged issued share capital of 392,000,000 shares. Kenanga Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO.

Events

IJM Land Half Marathon 2024 Celebrates 10th Anniversary with Record Turnout and Exciting Festivities

SEREMBAN: Leading property developer IJM Land celebrated a significant milestone as the IJM Land Half Marathon 2024 concluded triumphantly, marking its 10th edition with record-breaking participation and a festive atmosphere at Dataran Centrio, Seremban 2. The 2024 edition, themed “10 Years of Miles, 10 Years of Memories,” highlighted a decade of fitness, camaraderie, and community engagement. This highly anticipated marathon attracted 12,000 participants, perfectly reflecting its tagline, “Run Together, Bond Stronger,” and demonstrating the power of community and wellness.  The marathon was graced by Yang Amat Berhormat Dato’ Seri Haji Aminuddin Bin Haji Harun, Menteri Besar Negeri Sembilan and Yang Berbahagia Dato’ Haji Masri Bin Haji Razali, Datuk Bandar, Majlis Bandaraya Seremban, alongside other notable guests. IJM Land’s management representatives, including Yang Berbahagia Datuk Tony Ling Thou Lung, Chief Operating Officer of IJM Land Berhad and Mr Chai Kian Soon, Senior General Manager of IJM Land Berhad were also in attendance. The event has become a cherished platform for promoting a healthy lifestyle and fostering community spirit.   “IJM Land Half Marathon has grown into a prominent annual event. We are extremely proud to celebrate a decade of this prolific event that reinforces our commitment to health and community,” said Mr. Chai Kian Soon.     “This event would not have reached its tenth year without the support of the community and passionate runners who have always shown their utmost dedication. For that, we are truly grateful to see so many people coming together to support one another towards good health and togetherness.”   The IJM Land Half Marathon 2024 offered various categories, including the 21KM Half Marathon, 12KM races and a 5KM Fun Run. Beyond being a platform for sporting excellence, IJM Land Half Marathon also served as a philanthropic platform, contributing RM30,000 to Pertubuhan Hospice Negeri Sembilan (Hospice) and Malaysia Lysosomal Diseases Association (MLDA), and RM12,500 to Pertubuhan Arthritis Negeri Sembilan (PANS), totalling RM42,500.   The event featured a vibrant carnival atmosphere with activities including balloon clowns, face painting, and free treats such as popcorn, ice cream, Nestle Milo, isotonic drinks, Yakult Ace, and more. Interactive games such as the Simulated F1 Car Race, Coconut Bowl, and Ping Pong Shoot added to the festivities, ensuring a day of fun for participants and their families. A total of 150 prizes worth RM28,000 were given away during the lucky draw, including grand prizes such as an Apple iPhone 15 Pro, MacBook Air, Dyson Supersonic Hair Dryer, and a Health Screening package. The event also emphasised environmental sustainability through effective waste management services and engagement of green activities.   In its effort to encourage secondary school students to embrace outdoor physical activity and foster friendships within their communities, IJM Land organised the ‘STUDENTS RUN TOGETHER’ contest, which garnered an enthusiastic response from schools across Negeri Sembilan. Cash prizes totalling RM6,000 were awarded to schools based on the Highest Participation Rate and Most Participants categories. Additionally, IJM Land presented a symbolic cheque of RM50,000 to Yang Amat Berhormat Dato’ Seri Haji Aminuddin Bin Haji Harun – highlighting IJM Land’s role as a strategic partner in the Program Anjuran Kerajaan Negeri Sembilan.  “IJM Land Half Marathon not only promotes physical fitness but also supports charitable causes and environmental sustainability, reflecting our values as a responsible corporate citizen,” said Mr Chai.   “We invite everyone to continue supporting the IJM Land Half Marathon as we look forward to more years of milestones and memories. Together, we can make a positive impact not only on our community but also in the surrounding community that we live in.”   The IJM Land Half Marathon 2024 was supported by Jabatan Belia dan Sukan Negeri Sembilan, Platinum Sponsor Allianz Malaysia, Gold Sponsor TDK, Silver Sponsor Sunway Multicare, Official Apparel Spin, Official Vehicle BMW Millennium Welt, Official Energy Gel Ego Nutrition (N8), Media Partners Sin Chew Daily and The China Press, Medical Partner Columbia Asia Hospital Seremban, Event Partner Score, Technical Partner Kelab Olahraga Score and Partners Mydin, Nestle Milo, Yakult, KL Kinetic, Spoon Health, McDonald’s, Jia Duo Bao and SWM Environment.

Investment & Market Trends, News

Malaysia’s Digital Investment Soars to RM66.22 Bil in 1H 2024

KUALA LUMPUR: Malaysia’s digital investment soared to RM66.22 billion in the first half of this year (1H 2024), demonstrating robust growth and resilience of the digital economy despite global geopolitical tensions. Digital Minister Gobind Singh Deo said this was a significant achievement, noting that the amount has already surpassed the full-year digital investment for 2023 which stood at RM46.2 billion. He attributed the strong upward trajectory to stronger investor confidence and the economy’s forecasted growth of 4%-5% this year. “This investment inflow created 25,498 jobs in 1H 2024, surpassing the 22,258 tally recorded in 2023. The digital sector continues to be a powerhouse for high-skilled, high-income employment,” he said. As for digital exports, Gobind said the ministry’s efforts via the Malaysia Digital Economy Corporation’s (MDEC) partnerships and business matching programmes generated export opportunities worth over RM1.93 billion. These involve 228 companies from 11 countries, namely Indonesia, the Philippines, Cambodia, Turkiye, Spain, Saudi Arabia, Japan, Taiwan, Kenya, Tanzania and the United Kingdom. “This represents an increase of over 43% from the export opportunities worth RM1.35 billion generated in 1H 2023,” he said. Gobind said MDEC’s DEX Connex initiatives in the Philippines and Indonesia as well as business missions have significantly contributed to the export opportunities in the first half of 2024. “It is worth noting that data centres and cloud companies collectively contributed the lion’s share of digital investment value across all sectors. “Information Technology (Infotech) and Global Business Services (GBS) companies took the lead in digital job creation, as they race to set up their centres of excellence and high-value GBS operations in Malaysia,” he said. He added that 451 tech companies have been awarded the Malaysia Digital (MD) Status in 1H 2024 (2023: 256 companies). “Of these, 39% are foreign companies contributing to foreign direct investments, while 61% are local companies,” he said. Gobind said companies with MD Status are entitled to many incentives, rights and privileges from the government, subject to necessary approvals and compliance with applicable conditions. The benefits include competitive tax incentives and duty import and sales tax exemption on the importation of multimedia equipment, access to local and foreign knowledge workers, exemption from local ownership requirements and access to funding facilitation. — BERNAMA

Energy & Technology, News

Power Outage Incident Might Be Sign to a Bigger Threat

KUALA LUMPUR: With data volumes surging, organisations must prioritise the resiliency of their data infrastructure. According to Hitachi Vantara Chief Technology Officer for APAC, Matthew Hardman, the evolving digital environment demands robust measures to protect critical information, necessitating a proactive data management and security approach. “Many organisations are not fully prepared for the risks posed by cyberattacks and outages. The key to prevention and business continuity lies in having a well-defined data resiliency strategy in place,” he said, following the major information technology (IT) outage on July 19, which affected a large number of businesses and governments worldwide, as it involved 8.5 million devices throughout the globe. “We saw disrupted services and operations across multiple industries, but those hit hardest would have been the businesses that are heavily reliant on uninterrupted computer functionality,” he opined, adding that the businesses in question include banking, healthcare, airlines, emergency services and retail. Hardman provided an example of financial services and online banking services that were taken offline, which would cause delays in patient care in settings where patient records were not accessible – not to mention the flight delays and cancellations worldwide. Explained further, Hardman said the interconnectedness of these industries meant that the outage had a domino effect, whereby one firm going offline meant that other organisations reliant on them also had to stop operations. “Suffice to say, the impact was already significant and we may only be seeing the tip of the iceberg of what the real overall impact of the outage has been (or could be). “Ultimately, the incident underscores just how reliant the world is on interconnected technologies and the need for more robust cyber resilience strategies,” he added. Preventing future incidents Hardman said data resiliency is an organisation’s ability to recover from data breaches and other losses, enact business continuity plans quickly, and implement stronger data protection measures moving forward. “It is critical to prioritise data resiliency by implementing best practices in this area,” he said. Businesses can fortify their defenses and warrant service steadiness through several key strategies and should take stock of their current level of cyber resilience, data protection, and overall operational resilience. This, he said, might involve working with internal experts or a trusted partner to assess their on-premises, hybrid cloud, or fully cloud-based environments. Other than the said strategies, he said that having a backup and recovery plan with security measures in place is ‘a good start’, but it is not enough for data resiliency. “A truly resilient infrastructure requires data immutability, consistent deployment processes, and the ability to withstand unexpected system failures,” he said. Organisations need a data resiliency plan encompassing their entire environment both on-premises and in the cloud. Collaboration across the organisation is essential, including addressing shadow IT (unauthorised use of IT applications and devices). “While there is a lot to consider, a trusted data infrastructure expert can support businesses in implementing strategic solutions to improve current data resiliency posture at any stage. Regularly refreshing and rehearsing IT outage response plans are crucial in the digital age,” he said. “Hence, partnering with such an expert allows businesses to identify vulnerabilities and determine the necessary steps to ensure proper data protection, compliance and cyber resilience,” Hardman concluded. Cybersecurity Should Not Be Underestimated Meanwhile, BMI Senior Power and Renewables Analyst, David Thoo said that the power sector should not be undermined when it comes to cybersecurity, given the implications. Whether in renewables or traditional energy, Thoo emphasised that the power sector would always be a target of cyberattacks and as the adoption of renewable energy increases, this could mean that more plants and systems are being targeted. “The main targets of cyberattacks are critical infrastructure including utility networks and power plants. If these attacks can bring networks or power plants offline by infiltrating controls, it will result in major blackouts,” Thoo said. The world is rapidly ramping up its renewable energy capacity in line with ambitious climate pledges. The accelerated transition to green energy comes with new challenges, including concerns about the increasing use of electricity use from renewable sources, which could create new opportunities for cyberattacks. The Malaysian government, through the Malaysia Cyber Security Strategy 2020-2024, has identified 11 Critical National Information Infrastructure (CNII) sectors – including the energy sector – that must be protected and preserved to ensure the security of the nation, its economy and the public’s health and safety.

Energy & Technology, News

Amazon Launches AWS Asia Pacific (Malaysia) Region, Potential RM29.2 Bil Investment

KUALA LUMPUR: Amazon Web Services (AWS), an Amazon.com Inc company, recently launched the AWS Asia Pacific (Malaysia) Region with plans to invest about US$6.2 billion (about RM29.2 billion) in Malaysia through 2038. In a statement issued in Seattle, it was said that starting 22 August, developers, startups, entrepreneurs and enterprises as well as government, education and non-profit organisations will have greater choices for funning their applications and serving end users from AWS data centres located in Malaysia. “The construction and operation of the new AWS Region is estimated to add approximately US$12.1 billion (RM57.3 million) to Malaysia’s gross domestic product (GDP) and will support an average of more than 3,00 full-time equivalent jobs at external businesses annually through 2038. “These jobs, including construction, facility maintenance, engineering, telecommunications and others within the country’s broader economy, will be part of the AWS supply chain in Malaysia,” it said. With the launch of the AWS APAC (Malaysia) Region, AWS has 108 availability zones across 34 geographic regions, with announced plans to launch 18 more availability zones and 6 more AWS Regions in Mexico, New Zealand, Saudi Arabia, Taiwan, Thailand and the AWS European Sovereign Cloud. It said the AWS APAC (Malaysia) Region consists of 3 availability zones located far enough from each other to support customers’ business continuity but near enough to provide low latency for high availability applications that use multiple availability zones. “Each availability zone has independent power, cooling and physical security and is connected through redundant, ultra-low-latency networks,” it said. AWS customers focused on high availability can design their applications to run in multiple availability zones to achieve even greater fault tolerance. “With the launch, AWS is proud to support Malaysia’s digital transformation and help accelerate its role as a regional hub for artificial intelligence (AI),” said AWS Vice-President of Infrastructure Services, Prasad Kalyanaraman. Meanwhile, Investment, Trade and Industry Minister Tengku Daruk Seri Zafrul Abdul Aziz said the launch of an AWS infrastructure region in Malaysia provides access to new and emerging technology for Malaysian entities and businesses of all sizes, boosting our country’s capabilities for digital innovation. He said this milestone is a significant step towards fulfilling the vision of Malaysia’s New Industrial Master Plan (NIMP) 2030 to build a highly skilled, innovative, prosperous, inclusive and sustainable economy. “We recognise the transformative power of digitalisation, cloud computing and AI as key drivers in Malaysia’s effort to become a manufacturing and services hub within Asia. “As the largest investment made by an international technology company in Malaysia, the AWS infrastructure region will help ensure Malaysia remains competitive on the global stage,” the minister said. AWS offers the broadest and deepest portfolio of services, including analytics, computing, database, Internet of Things, generative AI, machine learning, mobile services, storage and other cloud technologies. Customers from startups and enterprises to public sector organisations and non-profits would be able to use advanced technologies from the world’s leading cloud provider to drive innovation, meet data residency preferences, achieve lower latency and serve the demand for cloud services in Malaysia and across APAC. — BERNAMA

Investment & Market Trends, News

Malaysia on Track for High-Income Status, Says Economist

KUALA LUMPUR: Malaysia’s target to achieve high-income status is realistic, given its solid growth trajectory, economic stability and strong investor confidence. Its economic growth will continue to be driven by contributions from key states such as Selangor, Sarawak, Kuala Lumpur and Penang over the next 3 to 6 years, said Juwai IQI Global Chief Economist Shan Saeed. “Selangor currently contributes 25% to the nation’s gross domestic product (GDP), Sarawak is set to rise strongly and become a major contributor to the economy while Penang remains as the manufacturing hub,” he said. Overall, he expects Malaysia’s GDP growth to be around 4%-5% in the next 3 to 5 years, supported by a stronger ringgit, as the local note is expected to range between RM4.10 and RM4.40 versus the US dollar. “The budget deficit target remains under 3.5% with disciplined fiscal policy,” said Shan. He opined that growth in information and communication technologies (ICT), oil and gas (O&G), real estate, electrical and electronics (E&E), e-commerce, and logistics sectors will support Malaysia’s bid for high-income status. Malaysia is already a significant player in the E&E market, exporting to countries like China, the United States, Singapore, Hong Kong, and Japan. At the same time, the O&G sector continues to be crucial to the nation’s economy, with a strong ecosystem supporting both domestic and regional value chains. Recently, World Bank Malaysia lead economist, Apurva Sanghi said five Malaysian states, namely Selangor, Sarawak, Penang, Labuan and Kuala Lumpur, have surpassed the 2023 high-income threshold of US$14,005. According to his posting on X, Kuala Lumpur has the highest US$29,967 gross national income (GNI) per capita, followed by Labuan (US$19,17), Penang (US$16,660), Sarawak (US$16,650) and Selangor (US$14,29). Meanwhile, states with the lowest GNI per capita are Kelantan (US$3,850), Perlis (US$5,490) and Kedah (US$6,027). He noted that Malaysia could reach high-income status by 2030, emphasising the need for faster reforms to speed up the transition. Economy Minister Rafizi Ramli recently said Malaysia could attain high-income nation status from 2027 if the national economy grows 4%-5% every year and the ringgit strengthens to around RM4.20 against the US dollar. — BERNAMA

Energy & Technology, News

EV Sales in ASEAN Surges, Malaysia Among the Top Performers

KUALA LUMPUR: ASEAN is witnessing a pick-up in electric car (EV) sales in Malaysia, Indonesia and Vietnam whereas Thailand is a mixed bag, said Maybank Investment Bank Bhd. The investment bank said that favourable regulations, local brands and penetration of Chinese carmakers will drive sales higher. “We prefer ASEAN companies that partner Chinese car makers for manufacturing and sales and battery value chain companies,” it said. Maybank Investment said that EV sales in ASEAN rose from a low base in the first half of 2024 (1H 2024) in most markets. “Malaysia Reported that EV car registrations rose 142% year-on-year (YoY) to 10,663 fully electric cars in 1H 2024. “Indonesia reported a 104% surge in sales to 11,943, Singapore a 218% YoY jump to 6,019 EVs, surpassing its 2023 numbers. Meanwhile, Thailand reported a strong start in January 2024,” it added. On a global basis, it said EV sales rose 24% to 6.7 million in 1H 2024 or 21% of total car sales. “Sales of full EVs slowed to +13.9% YoY whereas plug-in hybrids accelerated by +59% YoY. “Hybrid sales witnessed faster growth due to saturation and the end of EV subsidies in Europe, weaknesses in the US, lack of charging infrastructure and range anxiety. Recent tariff increases on China-made cars in the US and Europe will have a further impact,” it said. — BERNAMA

Events

Exabytes Wraps Up TechCamp 2024: Empowering Malaysia’s Next Generation of Webmasters With Free Workshops

KUALA LUMPUR: Exabytes TechCamp | Nurturing Young Minds with Web Mastery has successfully wrapped up its free and comprehensive workshops, leaving an indelible mark on the future webmasters of Malaysia. The two-day event, held on 17 and 18 August, brought together teenagers aged 13 to 17, offering them a unique opportunity to dive into the world of web development. Hosted at the Exabytes Event Hall in Puchong, the TechCamp drew over a hundred participants, all eager to learn the ropes of HTML, CSS, and JavaScript. Under the expert guidance of Mighty Coders Academy, and with seamless coordination by GogoKids and Exabytes, the young attendees were able to create their very own websites by the end of the workshop. Throughout the sessions, participants engaged in hands-on learning, starting from the basics of HTML structure and progressing to more complex tasks like styling web pages with CSS and implementing interactive elements using JavaScript. The camp’s practical segment, focused on WordPress, saw participants designing and developing their personalised websites, providing them with both technical skills and a platform to express their creativity. Twelve-year-old Ameera Arissa Munif Dauman and 16-year-old Adam Hafiz Munif Dauman expressed their excitement, saying, “We never imagined we could create our websites from scratch! This camp has opened up a whole new world for us, and we can’t wait to keep building on what we’ve learned.” Their mother, Madam Noor Aznita Suzana Sulaiman, added, “I’m so grateful to Exabytes for providing this opportunity. It’s inspiring to see my kids so passionate about learning, and I’m confident these skills will be invaluable for their future.” As part of its commitment to nurturing digital talent, Exabytes also provided each participant with a free one-year domain contract, hosting, and a virtual private server (VPS) under the Digitalise Penang Programme. This generous support ensures that the young webmasters can continue to develop and refine their online projects beyond the camp. “At Exabytes, we believe in empowering the next generation with the tools they need to thrive in the digital age. Our TechCamp is designed to inspire confidence and spark creativity in these young minds, giving them the skills to bring their ideas to life with technology,” said Kee Siak Chan, Founder and CEO of Exabytes. “We were thrilled to witness the enthusiasm and innovation displayed by the participants, and we are excited to see how they will continue to grow and contribute to the digital world.“ Teo Yan Chun, Co-Founder of GogoKids, added, “It was incredible to see how quickly these teenagers picked up the fundamentals of web development. Their creativity and technical acumen were truly inspiring. We are proud to have been part of an initiative that not only educates but also empowers the youth to become the tech leaders of tomorrow.“ Exabytes TechCamp is an integral part of Exabytes’ broader corporate social responsibility (CSR) strategy, which focuses on empowering communities through digital education and fostering future-ready skills. This event complements other key CSR initiatives, like the Accelerate Women Entrepreneurship with Exabytes (AWEWE) conference and the Let’s Plant A Tree campaign, all aimed at making a lasting, positive impact on communities across Malaysia.

Investment & Market Trends, Property

Mah Sing Group Berhad’s Budget 2025 Wishlist

In light of Malaysia’s robust economic performance and buoyant property market, Mah Sing, under the leadership of Tan Sri Dato’ Sri Leong Hoy Kum, Founder and Group Managing Director, has outlined a strategic wishlist aimed at bolstering the country’s housing sector and fostering economic growth. As Malaysia’s economy expanded by 5.9% in the second quarter of 2024, driven by increased household spending and favourable labour market conditions, Mah Sing underscores the pivotal role of government support in sustaining this momentum. The property landscape has shown significant resilience, with over 104,000 transactions recorded in the first quarter of 2024—a 17% surge from the previous year—indicating robust market demand and economic vitality. Against this backdrop, Mah Sing emphasizes the importance of proactive governmental measures to sustain the sector’s growth trajectory and support broader economic recovery efforts. Key Proposals for Budget 2025   Revival of the Home Ownership Campaign (HOC) Mah Sing advocates for reinstating the Home Ownership Campaign, citing its pivotal role in facilitating home purchases and reducing housing overhang. The proposal includes reinstating incentives such as a 100% stamp duty exemption for properties priced between RM300,001 to RM1 million and offering a 10% discount on property purchase prices for first-time homebuyers. One-off First-Time Home Buyers’ Grant and Lower Fixed-Rate Financing To alleviate financial barriers for first-time buyers, Mah Sing proposes a one-off First-Time Home Buyers’ Grant of RM30,000 for properties priced up to RM500,000. Coupled with lower fixed-rate financing options, these initiatives aim to enhance affordability and stability in urban housing markets. Re-introduction of Tax Deduction for Housing Loan Interest The reintroduction of tax deductions for housing loan interest is highlighted as a critical measure to support new homeowners. Previously implemented from 2009-2010, this policy allowed deductions of up to RM10,000 per year on interest paid for housing loans over three years, significantly easing financial burdens and encouraging property investments. Reduction of Compliance Costs and Streamlining Approval Processes Mah Sing urges the government to reduce compliance costs and streamline approval processes to mitigate development expenses and housing costs. Proposed measures include reducing development charges, lowering land conversion premiums, and exempting utility contribution charges. Simplifying regulatory frameworks would expedite project timelines and enhance affordability for homebuyers. Incentives for Green Building and Sustainable Development In alignment with Malaysia’s environmental goals, Mah Sing proposes enhanced tax reliefs and grants for developers adopting green building technologies and sustainable practices. These incentives aim to accelerate the adoption of eco-friendly construction methods, supporting Malaysia’s commitment to carbon neutrality by 2050 and promoting sustainable urban development. Mah Sing’s Budget 2025 wishlist underscores the synergistic relationship between robust governmental support and sustained economic growth in Malaysia’s property sector. By implementing these proposals, the government can stimulate homeownership, reduce housing affordability barriers, and foster a resilient property market that contributes positively to Malaysia’s economic development and societal well-being.

News

7-Eleven buyout likely to be a watershed moment

TOKYO: Alimentation Couche-Tard Inc’s proposed acquisition of Seven & i Holdings Co, if successful, wouldn’t just be the largest takeover of a Japanese company, it would also be extremely rare. The Canadian convenience store chain operator’s preliminary proposal to buy 7-Eleven owner Seven & i Holdings Co could be worth more than 5.63 trillion yen (US$38.4bil), based on the Japanese company’s market value after news of the potential deal was disclosed. Until now, an attempt to acquire such a well-known Japanese business at such scale would have been dismissed as audacious and unlikely, given the protectionist tendencies of the government and corporate boards prioritising stability over shareholder value. But the tide may be turning, with new corporate guidelines aimed at injecting more vigour into corporate Japan through improved governance and protections for investors. It’s not clear yet how much Couche-Tard, which is smaller than Seven & i, may propose to pay and structure any potential deal, or whether it is seeking a partial stake or buyout. Still, the Canadian company’s plan will benefit from a potential ally – ValueAct Capital Management LP. The activist fund has been pushing Seven & i’s management to narrow its focus to 7-Eleven stores, and said last year that they would be worth more as a standalone listed company, and sought to replace chief executive officer Ryuichi Isaka. In response, he has taken restructuring measures and initiated a buyback. But given the reaction among investors who bid up the company’s shares by 23% on Monday when the news broke, a record one-day gain for the stock, it may be hard to justify any pushback to a takeover proposal. “The main implication is that the stock is clearly undervalued,” said Rafael Nemet-Nejat a senior portfolio manager at Jin Investment Management Pte. The proposal “may also put pressure on the company to speed up restructuring as well, as the management is likely reluctant on foreign buyouts.” If Couche-Tard ends up making a partial bid, gains could be limited and the shares could even drop, Nemet-Nejat added. In a sign of investor scepticism, Seven & i fell as much as 12% in early morning trading yesterday, paring Monday’s record gain. It’s not clear whether ValueAct still holds any stock in Seven & i, based on data compiled by Bloomberg, which showed that they no longer own a stake. The investor, which had previously disclosed a 4.4% holding in the Japanese company, may still have significant positions in part or in full through swap arrangements with brokers, which do not require stock exchange disclosure. If successful, a Couche-Tard takeover of Seven & i would eclipse KKR & Co’s 670 billion yen deal in 2022 to buy Hitachi Transport System Ltd, which at the time was the biggest full takeover by a listed Japanese business by a foreign entity. In that transaction, the private equity firm benefited from parent Hitachi Ltd’s desire to divest assets to focus on its core businesses. But the history of attempted takeovers of Japanese companies by outsiders is messier. KKR, CVC Capital Partners and Blackstone Inc walked away from a buyout of Toshiba Corp after meeting stiff resistance from the board. Concerns about the valuation, complexity and political nature of the deal were behind their decision. Eventually a consortium led by a domestic fund prevailed in the negotiations last September. — Bloomberg

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