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News

HEARTS ON FIRE Names Johan Ye as President, APAC

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HONG KONG: HEARTS ON FIRE, the renowned jewellery brand celebrated for its dazzling signature cut diamonds, has named Johan Ye as President, of Asia-Pacific. Johan, a French citizen based in Hong Kong, brings extensive luxury retail experience with a successful history of regional leadership roles. Previously, he held senior positions across leading brands in the Richemont Group in Asia Pacific, most recently serving as Managing Director, of Asia Pacific for MESSIKA. In this role, he was responsible for developing the brand across the region, overseeing key markets, and managing profit and loss. In his new capacity at HEARTS ON FIRE, Johan will supervise business and operations across the Asia Pacific region, focusing on Mainland China, Hong Kong SAR, Macau SAR, and Taiwan. He will lead efforts to drive growth and performance, directing business development, retail and wholesale operations, customer engagement, and brand marketing strategies. This appointment is part of Hearts On Fire’s commitment to bolstering its leadership in Hong Kong, aligning with a multi-year brand transformation initiative. Rita Maltez, Global President of HEARTS ON FIRE, expressed enthusiasm about Johan’s appointment, highlighting his expertise and extensive understanding of the luxury market, which will be vital for advancing the brand’s transformation and growth in Asia Pacific. Johan commented on his new role, stating, “I am excited to join HEARTS ON FIRE at this pivotal moment in the brand’s journey. The Asia Pacific region offers significant growth opportunities, and I am eager to collaborate with our team and partners to enhance our presence.”

Investment & Market Trends, News

Capital A to Dispose of 100% Stake in AirAsia for RM6.8 Bil to Streamline Biz Activities

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KUALA LUMPUR: Capital A Bhd entered into a conditional share sale and purchase agreement with AirAsia Group Sdn Bhd (AAG) to dispose of its 100% equity interest in AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) for RM6.8 billion. The group entered into a conditional share sale and purchase agreement with AAG to dispose of AAAGL for RM3 billion and AAB disposal for RM3.8 billion. AAAGL and AAB are wholly-owned subsidiaries of Capital A. Under AirAsia X Bhd’s (AAX) proposed internal reorganisation, AAG will assume the listing status of AAX before the completion of the proposed disposals. Capital A has also announced a proposed distribution of new ordinary shares in AAG to be received as consideration shares for the proposed AAAGL disposal of about RM2.20 billion to the entitled shareholders of the group. “The AAAGL disposal consideration of RM3 billion will be satisfied entirely via the issuance of 2.30 billion new AAG shares at an issue price of RM1.30 for each consideration share,” the group said in a 68-page document filed with Bursa Malaysia. The AAB disposal consideration will be satisfied by way of AAG’s assumption of the company’s debt due to AAB of RM3.8 billion on the AAB completion date according to the terms of the disposal. It also said that based on Capital A’s audited consolidated financial statements for the financial year ended 31 December 2022 (FY22), the proposed AAAGL disposal is expected to result in a pro forma gain arising from the remeasurement of the remaining interest in AAAGL upon completion of the disposal of about RM4.69 billion. As for AAB, it said the proposed AAB disposal is expected to result in a pro forma gain on disposal of AAB upon completion of the disposal of some RM6.07 billion based on the group’s audited consolidated financial statements for FY22. “The proposed disposals are intended to be undertaken by Capital A to streamline the group’s core business activities to focus on aviation services and digital businesses, which are essential and complementary to the passenger airlines business,” it said. Upon completion of the exercise, the aviation services and digital businesses mainly encompass a wholly-owned subsidiary, Asia Digital Engineering; super app segment carried out by SuperApp, a 96.19% subsidiary of Capital A; logistics segment carried out by Teleport, a 77.56% subsidiary and digital payments segment carried out by BigPay, a 99.56% subsidiary of the group. “Additionally, after the proposed distribution, the entitled shareholders will be able to continue participating in the business of the new aviation group via AAG shares held, which will be listed on the Main Market of Bursa Securities after AAX’s proposed internal reorganisation. — BERNAMA

Investment & Market Trends, News

Tokyo Inflation Falls Below BOJ Target for 2nd Month

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TOKYO: Core inflation decelerated for the second consecutive month in April, dropping below the central bank’s 2 per cent target, as revealed by data on Friday. This development complicates the central bank’s decision on when to raise interest rates. The latest figures were released shortly before the conclusion of the Bank of Japan’s two-day policy meeting, where policymakers are expected to maintain interest rates at their current level and present new inflation forecasts for the coming years up to early 2027. The core Consumer Price Index (CPI) in Tokyo, which serves as an indicator for nationwide trends, rose by 1.6 per cent in April compared to a year earlier, marking a slowdown from the 2.4 per cent increase observed in March. This figure was lower than the market’s median forecast of a 2.2 per cent rise. Another index, which excludes the volatile effects of fresh food and fuel prices and is seen as a broader gauge of price trends, also indicated a slowdown in inflation to 1.8 per cent in April from 2.9 per cent in March. This represents the slowest rate of increase since September 2022, when the index rose by 1.7 per cent year-on-year. Despite core inflation still exceeding the central bank’s 2 per cent target, the deceleration underscores uncertainty about whether consumer spending and wage pressures will strengthen sufficiently to sustain price growth around this level. The Bank of Japan has previously stated that its decision to end negative interest rates last month was driven by indications of robust demand and the expectation of rising wages, which were prompting businesses to continue raising prices for both goods and services. The depreciation of the yen adds complexity to the Bank of Japan’s interest rate strategy. While it supports exports and contributes to inflation, it could dampen domestic consumption, potentially cooling the economy and discouraging businesses from passing on increased costs to households.— REUTERS

The Executives

Curves Malaysia To Attract Investor Partners for Expansion Endeavor

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KUALA LUMPUR: Curves Malaysia, an all-women fitness club, aims to attract Investor Partners this year to become part of an international fitness franchise.. Chief executive officer Alison Chin said the company is pooling in investors and finalising the details to raise a minimum investment of RM100,000 from individual investors for new club openings in Malaysia. “We aim to gather contributions from various investor partners until the fund reaches a minimum of RM550,000 to begin opening new clubs in various locations. “Our strategy includes opening up to three clubs in the first year, and Investors can expect solid annual returns after the club’s membership stabilises after opening,” she told The Exchange Asia. Chin said that once operational, Curves’ business model incurs minimal ongoing costs compared to other industries, like restaurants, which require continuous investments in supplies. The business model also works on a membership subscription basis, which results in consistent cash flow for the company. “We have successfully run our existing concept, which has thrived despite Covid, and also launched a new signature concept in February this year. We plan to fund this venture within the next two to three months. “Our primary focus is on marketing, particularly targeting our core demographic of women aged late 20s to mid-50s who value health and wellness. We aim to open two more clubs by the end of the year,” Chin said. She said the company needs to meet considerable demand within the Klang Valley due to proximity. Location-wise, Chin said joining and consistency become unlikely unless individuals live or work within a 15-minute radius. Therefore, the company is mindful of the location for any future setup. “We are also considering expanding to other states, such as Penang, Johor, or Malacca, where we currently do not have a presence. We have received numerous inquiries from these states,” Chin said. She said that since early this year, the company has been brainstorming ways to innovate and enhance services for its existing members. “With that in mind, we aim to collaborate with suitable partners, whether franchise or joint venture partners,” Chin said, adding that Malaysia holds immense potential. “However, for this year, our focus remains on leveraging our expertise in Klang Valley and our familiarity with our business operations. We aim to concentrate our efforts here initially before expanding further,” Chin said.

The Executives

Europe, China Tourists to Drive Malaysian Heritage Hospitality Occupancy Growth

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KUALA LUMPUR: Heritage hospitality in Malaysia, particularly those connected to the hospitality industry, continue to gain recognition among tourists for their unique ability to offer an authentic glimpse into the country’s cultural history. These architectural treasures connect young and old visitors to Malaysia’s rich and diverse traditions. Domestic and international tourists are increasingly searching for the charm of those background buildings that awaken nostalgia and curiosity and showcase Malaysia’s past. From Malay kampung houses to colonial-era mansions, these are indispensable to Malaysia’s tourism attraction, drawing visitors eager to explore the country’s cultural soul. Temple Tree Resort Langkawi resort manager Irene Vairo said that in the next two to three years, European and Chinese tourists will drive the international market occupancy growth for heritage hotels and resorts. “We continuously see foreign tourists visiting Malaysia for a different and unique experience. “These international tourists find Malaysian heritage and culture interesting, and they want to experience that heritage feeling,” she told The Exchange Asia. Temple Tree Resort Langkawi is one of the notable heritage resorts in Malaysia and has gained popularity among travellers seeking cultural and heritage experiences. Situated within a century-old coconut tree plantation, the resort offers 21 rooms and suites in eight heritage buildings. Temple Tree Resort Langkawi offers accommodation in eight houses, namely Straits, Johor, Colonial, Estate, and Plantation, with heritage houses from Penang, Ipoh, and Negeri Sembilan. The resort’s designers carefully relocated these heritage buildings from different parts of Malaysia. Each building is aged between 80 and 120 and showcases various architectural styles. Despite their age, the buildings provide modern amenities such as plush bedding, air conditioning, wifi, and digital entertainment, offering guests the choice to choose from a range of rooms and suites, each with its own unique character. Irene said the resort’s commitment to preserving history sets Temple Tree Resort Langkawi apart from other heritage hospitality establishments in Malaysia. “Our international travellers are predominantly from the United Kingdom, Australia, Holland, France, and China “Weddings are another fast-growing segment, particularly mixed marriages, where couples come from different countries and select an island wedding in Langkawi,” Irene said. A report from IMARC Group highlights that the growth of the heritage hospitality market is driven by the rise of heritage tour operators specialising in creating tailored travel experiences, which is also seen in Malaysia. These operators design trips that appeal to those interested in thoroughly examining cultural and historical landmarks. The report noted that by providing meticulously planned itineraries and distinctive perspectives, they draw in a specific group of clients, including history buffs, cultural scholars, and inquisitive tourists. Further, the report also said that the growing impact of social media and travel influencers is also boosting the heritage hospitality market. With their large followings and engaged audiences, travel influencers highlight their visits to heritage sites, crafting engaging stories that resonate with their followers. The report noted that as social media and influencer marketing continue to develop, their influence on heritage tourism is anticipated to increase, affecting travel choices and moulding how people experience and value cultural heritage. When asked about challenges in maintaining and operating a heritage hospitality establishment, Irene said maintenance costs are the biggest challenge in running the business. “Like any other property, whether old or new, maintenance and repair are an ongoing process, and when operating a heritage resort, even more maintenance and repair are needed to preserve each house’s historical authenticity. “We have daily, weekly, monthly maintenance operations, including landscape works, that must be preserved and maintained to keep the establishment well and appealing, and this has become costlier than before due to the increase in raw material prices and labour costs,” Irene pointed out. Irene said having a good and reliable renovation team that understands heritage and is passionate about this area is important. “This speciality skill is a niche and is not widely available. We do not see this as a challenge but rather a commitment to preserve these historic houses, promote sustainability, and promote Malaysian culture and history for many years,” she said. Irene said Malaysia has a great advantage compared to some of the regional players where English is spoken widely, and conversing with guests from all over the world is easy. “Our pricing factor is also a lot more affordable when compared to Bali for instance. “Accessibility has improved with an international airport here on the island, and a plus point is that guests can get to the island by land, air or sea. “This accessibility will benefit domestic and foreign tourists looking at a unique cultural experience from heritage hospitality providers like Temple Tree Resort Langkawi,” Irene said.

Investment & Market Trends, News

Malaysia’s Inflation Stayed at 1.8% In March 2024

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KUALA LUMPUR: Since November 2023, the country’s inflation rate stood at 1.5% up until January 2024. By February, the number went up to 1.8%, which continued until last month, with the index points recorded at 132.2 as against 129.9 in the same month of the previous year.   The increase of inflation in March 2024 was driven by housing, water, electricity, gas and other fuels (3%); restaurant and accommodation services (3%); personal care, social protection and other goods and services (2.6%) and transport (1.3%). However, the increase has been offset by the other main group which recorded a slower increase namely health (2.1%); food and beverages (F&B) (1.7%) and recreation, sport and culture (1.5%). The increase of 3% (February 2024: 2.7%) in for housing, water, electricity, gas and other fuels was contributed by the expenditure class of water supply which increased to 31.4% in March 2024 (February 2024: 28.8%). Kedah has increased the water tariff rates for domestic category users starting in March 2024 as compared to other states that have implemented the new tariff rates in February 2024. The F&B group recorded a slower increase of 1.7% in March 2024 (February 2024: 1.9%). The main subgroup of food at home increased to 0.3% in March 2024 (February 2024: 0.5%). Meanwhile, the main subgroup of food away from home increased 3.5%, the same rate as registered in February 2024. Overall, monthly inflation recorded a marginal increase of 0.1% as compared to 0.5% recorded in February 2024. A few main groups that posted increases on a monthly basis were restaurant and accommodation services (0.4%); personal care, social protection and other goods and services (0.4%) as well as housing, water, electricity, gas and other fuels (0.3%). Meanwhile, inflation for the first quarter of 2024 recorded an incline of 1.7% (Q4 2023: 1.6%). For quarterly comparison, Malaysia’s inflation increased 0.7% (Q4 2023: 0.2%). Meanwhile, core inflation increased slower at 1.7% as compared to 1.8% in February 2024. The increase was due to the F&B and restaurant and accommodation services which both recorded increases of 3%respectively in March 2024. At the state level, most of the states recorded increases below the national inflation level of 1.8%. However, 5 states recorded increases above the national inflation level namely Pulau Pinang (3%), Sarawak (2.9%), Pahang (2.1%), Selangor (2.1%) and Perlis (1.9%). In comparison to inflation in other selected countries, inflation in Malaysia (1.8%) was lower than inflation in Vietnam (4%), Philippines (3.7%), United States of America (3.5%), Republic of Korea (3.1%) and Indonesia (3.1%). However, the rate is higher than China (0.1%) and Thailand (-0.5%).

News

Tony Fernandes Signs 5-year Extension as Capital A CEO

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KUALA LUMPUR: Capital A Bhd, chief executive officer (CEO) Tony Fernandes has signed a new service contract for the next five years, continuing his role to focus on driving the group’s future growth and financial returns. Capital A independent non-executive director Datuk Fam Lee Ee said the board has approved an incentive package, designed to align the CEO’s interests with shareholders and ensure a shared commitment to drive the long-term success and sustainability of the group. “His role encompasses steering Capital A towards unlocking enhanced shareholder value through the execution of profitable transactions across the group’s entities within Capital A,” he said at a media briefing today. He noted that the incentive package and its details will be presented to shareholders for their approval at the upcoming extraordinary general meeting. “Fernandes has shown an unparalleled ability to successfully transform Capital A to drive growth and deliver financial returns, earning him a reputation as one of the world’s outstanding CEOs,” he said. Fam said Fernandes has set Capital A on the right strategic path for ongoing value creation, and the board determined it is in the best interest of the shareholders to extend his tenure. “We are confident that, under his guidance, we will achieve even greater milestones in the years ahead,” he said. Meanwhile, Fernandes said he envisions Teleport, MOVE Digital, Capital A Aviation Services Group (CAPAS) and Capital A International evolving into separately listed public companies over the next five years. “They will share the fundamental AirAsia DNA, characterised by low-cost, high efficiency and a relentless commitment to being independent and resilient market disruptors,” he said. He will also focus on returning value to shareholders during his renewed term, while creating a narrow-term strategy for the group, coming out from PN17 status and strengthening its balance sheet. Besides the tenure renewal, Tony was also appointed advisor and steward for AirAsia Aviation Group CEO as the airline group embarks on a new era of transformation and growth. AirAsia Aviation Group chairman Tan Sri Jamaludin Ibrahim said Fernandes will provide strategic oversight over AirAsia Aviation Group, including expansion and succession planning and be the key conduit between Capital A and the aviation business ecosystem to ensure all mutual opportunities were leveraged. – BERNAMA

News, Property

SANY Group Contributes to New Zealand’s Infrastructure Transformation to Boost Tourism

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SHANGHAI, CHINA: SANY Group is taking part in the road construction project in New Zealand’s Bay of Plenty, the 12th road upgrading project in New Zealand as the country embarks on major upgrades to its transportation infrastructure. Globalisation is an important element of SANY’s development strategy, to build a better world. The group has been actively exporting high-end equipment to support urban upgrading and infrastructure projects worldwide. Upon completion, the Bay of Plenty road will provide more convenient and safer transportation options to the local communities and tourists visiting the region. To date, SANY has delivered three pieces of road construction equipment that are working in synchronisation to guarantee both construction quality and efficiency, namely: STR30C-8 lightweight double-drum roller: It’s equipped with a Yanmar engine with robust power and offers the choice of front and rear, single and double drum vibration, which can be switched flexibly under any working conditions. The model’s high compaction and high-density rolling quality can meet the strict requirements of highway construction. SSR180C-8 single-drum roller: The cabin is certified by Rops/Fops, standard configuration includes a reversing camera and full LED lights to provide a more comfortable and safer operating environment. SMG200C-8 motor grader: The robust model has a Meikang engine with 186KW power, coupled with direct-drive powershift transmission, smooth shifting, and quick response to ensure operation with precision, the easy-to-maintain rotary support device also reduces cost and boosts reliability and durability. As a leading supplier of complete road construction equipment, SANY has built a comprehensive product portfolio of five core categories – pavers, rollers, graders, milling machines, and asphalt mixing plants. In 2021, SANY’s hydraulic roller, asphalt plant, and pavers had the highest market share in China, according to the statistics from the China Construction Machinery Industry Association (CCMIA). “With short winters and long summers, the Bay of Plenty is one of New Zealand’s sunniest and most popular vacation destinations. Its breathtaking natural beauty and unique culture attract numerous tourists from around the world, and we’re delighted to support the construction of the roads with our products to help build a better Bay of Plenty,” said SANY Country General Manager Jat Zhang. “We look forward to participating in more projects that will create better tourism experiences for visitors from all over the world,” he added.

Investment & Market Trends, News

Meta Bright Signs RM24 Mil Leasing Contract with Australian Company

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KUALA LUMPUR: Meta Bright Group Bhd’s (MBG) wholly-owned Australian subsidiary, Meta Bright Australia Pty Ltd (MBA), signed a new leasing contract with Mt Cuthbert Resources Pty Ltd (MCR). The agreement, signed on April 24, 2024, marks another significant step in MBG’s strategic expansion in the equipment leasing market. Under the terms of the contract, MBA will provide dry hire equipment rental services to MCR, supporting its copper mining operations in Australia with essential machinery and equipment valued at up to AU$8 million (approximately RM24.82 million). The equipment list includes machinery, vehicles, and other mining equipment necessary for MCR’s readiness to operate and respond to the promising copper mining outlook. A filing with Bursa Malaysia showed that this contract is expected to generate substantial monthly recurring rental income, estimated at AU$222,950 (about RM691,657.78), enhancing MBG’s recurring revenue streams and reinforcing its presence in the Australian market. MBG executive director of corporate and strategic planning Derek Phang Kiew Lim said this contract strengthens the company’s relationship with MCR and underscores its capability and commitment to supporting the mining industry with high-quality and reliable equipment. “Our strategic decision to diversify into machinery and equipment leasing has allowed us to tap into the robust growth of the mining sector in Australia, which continues to show significant potential,” he said in a statement. The mining industry in Australia is a critical economic sector, with growth driven by increasing domestic and international demand for minerals. The industry’s income from mineral exploration is projected to grow to AU$5.7 billion by 2025, at a compounded annual growth rate (CAGR) of 11.3% from 2023. The equipment leasing market in Australia is similarly promising, expected to grow to US$1.9 billion by 2025. This growth is supported by expanding end-user industries such as mining, construction, and manufacturing, which rely heavily on leased equipment to reduce capital expenditure and enhance operational efficiency. “Our strategic focus on the equipment leasing sector is paying dividends, enabling us to leverage growth opportunities within Australia’s dynamic industrial landscape. “We are confident that this new contract with MCR will contribute positively to our financial performance, starting from the second quarter of the financial year 2025,” added Phang. MGB continues to explore opportunities to expand its leasing business, aligning with its goal to provide stable and sustainable returns to its shareholders.

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