Author name: admin

Investment & Market Trends

Bursa Malaysia Celebrates Inaugural Listing of Business Trust

KUALA LUMPUR: Bursa Malaysia Bhd officially welcomed the listing of Business Trusts (BT), an alternative listing structure that facilitates capital raising by listed entities seeking an initial public offering (IPO) on the exchange. This was demonstrated by the debut listing of Prolintas Infra BT on Monday. It was the first BT listed on the exchange’s main market and a Shariah-compliant BT. Introduced under the Securities Commission Malaysia’s (SC) Business Trusts Guidelines (BT Guidelines) 2012, a BT is a hybrid investment structure that blends features of an investment trust and a company. Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said BTs provide a novel listing structure to raise capital that can facilitate economic development by making infrastructure-type projects more accessible to a broader range of investors, fostering growth and innovation across more capital-intensive sectors. “The listing of Prolintas Business Trust on our exchange exemplifies the successful implementation of the framework by the SC, and we look forward to more BTs following suit,” he said in a statement. Essentially, BTs operate as a unit trust scheme established by a trust deed, wherein a trustee-manager oversees the operation and management of the scheme’s assets. Unitholders in a BT can share in the profits or income generated by these assets through distributions declared by the trustee-manager. BTs undertaking an IPO are destined for the main market, which requires SC’s approval before they are admitted to the exchange for listing. A significant advantage of a BT is that dividend distributions a BT can be made to investors from its operating cash flow without being constrained by conventional accounting profits. Therefore, it is anticipated that a BT will be more attractive for business assets that are capital-intensive but have stable cash flows, such as those in the infrastructure, telecommunications, and energy sectors, supporting key national growth policies and roadmaps. “At Bursa Malaysia, we continue to undertake efforts to make listing on the exchange more appealing. One way to accomplish this is to diversify or expand into new asset classes, which opens up more opportunities. “The introduction of the BT model expands the breadth of Malaysia’s capital market and demonstrates capital market regulators’ earnestness in providing facilitative frameworks and solutions. “This development will augment the ability of the exchange to play its role in facilitating growth plans of listed issuers to benefit our economy at large. “It is also our hope that this will, in turn, enhance the overall competitiveness of the exchange,” Muhamad Umar said.

Property

Eco World Development’s Q1 FY24 Earnings Within Estimates, Says PublicInvest

KUALA LUMPUR: Eco World Development Bhd’s (EWD) first quarter (Q1) FY24 net profit was RM69.6 million, which was within Public Investment Bank Bhd’s (PublicInvest) and consensus full-year estimates. PublicInvest noted that the property developer secured RM1.26 billion in pre-sales in 4 months, with 57 per cent or RM723 million from Iskandar Malaysia, or about 36 per cent of its FY24 sales target of RM3.5 billion. The strong sales momentum increased EWD’s unbilled sales to RM3.88 billion as of February 2024, PublicInvest noted. Separately, PublicInvest said that EWD’s share of results of its joint ventures for Q1 FY24 was 9.4 per cent higher year-on-year (YoY) due to Eco World International Bhd (EWI) recording a profit instead of a loss during the quarter. EWD’s gross and net gearing levels as of January 2024 remained low at 0.52x and 0.28x, respectively, even after completing the 403.78-acre Kulai land acquisition (balance 90 per cent land price of RM190 million) and paying its FY23 final dividend, amounting to RM58.9 million, to shareholders in Q1 2024. On sales, PublicInvest noted that EWD’s FY24 sales target is within reach. Sales momentum continued into Q1 FY24, with about RM1.26 billion secured in four months. “We understand that its projects in Iskandar Malaysia have performed well, with about RM723 million secured or 57 per cent of EWD’s total year-to-date (YTD) sales for FY24,” PublicInvest noted. Currently, EWD has eight ongoing projects in Iskandar Malaysia. Sales of residential homes remain the biggest contributor for the company, with Eco Townships and Eco Rise Pillars bringing in RM799 million or 63 per cent of total sales. These include sales from new launches of landed homes at Eco Spring and Eco Tropics in Iskandar Malaysia as well as Eco Grandeur in the Klang Valley. “EWD also recently launched Sa.Young D’ Eco Botanic in Iskandar Malaysia which we understand is well received by the market. “Going forward, the company is preparing for the launch of Se.Duduk D’ Kajang, which is its first duduk apartments to be developed outside an EcoWorld township,” PublicInvest said. Relatively, EWI secured RM243 million in property sales plus reserves of RM203 million, adding up to a total of RM446 million for the first four months of FY24. This was driven mainly by Embassy Gardens, which brought in RM105 million in sales, followed by Wardian (RM75 million) and Yarra One (RM20 million). “We understand that as of February 29, 2024, EWI has approximately RM650 million of completed and nearly completed stocks available for sale, of which the company’s effective share is approximately RM500 million,” PublicInvest noted. The research firm said completed stock sales are estimated to generate excess cash up to RM500 million for EWI over 2024 and 2025. Separately, the company has 18 existing and upcoming projects in the United Kingdom and Australia, with a total gross development value of GBP4.6 billion and A$0.7 billion, respectively. “We keep our earnings unchanged and maintain our Neutral call. Our target price increased to RM1.30 from RM1.15 previously as we narrowed the discount to book value to 20 per cent from 30 per cent as sector valuations improved. “We believe it deserves a premium given its strong sales track record and attractive dividend yield,” PublicInvest said.

Investment & Market Trends

KPJ Healthcare Is Set To Post Positive Year-On-Year Earnings Growth, Says RHB Research

KUALA LUMPUR: RHB Research expect KPJ Healthcare Bhd to continue posting positive year-on-year (YoY) earnings growth, underpinned by robust patient traffic growth, improving operating efficiency of hospitals under gestation, and pick-up in foreign patient visits. “Notwithstanding the above, we gather that the company is set to see a better patient-case mix in the first quarter (Q1) 2024 – this could potentially lift revenue intensity higher, in our view,” the bank-backed research firm said in a recent note. The research firm said additionally, the health ministry’s latest move to exempt the post-basic qualification exemption for foreign nurses to work here from October 2023 till September 2024 could potentially address the country’s nursing shortage issue. “We believe a private hospital player like KPJ Healthcare could capitalise on such opportunities to meet its nursing requirements,” RHB Research noted. In addition, RHB Research opined that visa-free entry for foreign tourists, particularly from China and India, is set to have a positive spillover effect on the healthcare tourism (HT) sector here, as the two nations contributed 5 per cent and 3 per cent to Malaysia’s HT revenue, respectively. KPJ Healthcare’s key emphasis in prioritising the strengthening of its presence in Indonesia by setting up representative offices and recruiting agents that can help lead Indonesian patients along their HT route. KPJ Healthcare has set an ambitious RHB Research noted that the target is to achieve 18-20 per cent market share by 2024-2025 from the current 6 per cent. On earnings, RHB Research expect Q1 FY24 net profit to come within an RM67-RM72 million range, representing 26-36 per cent YoY growth, predicated on strategic upscaling initiatives in driving the growth of revenue intensity, improvements in operating efficiency from hospitals under gestation, and pick-up in HT. Based on its channel checks, the research firm also noted that five hospitals under gestation are set to post narrower earnings before interest, taxes, depreciation, and amortization (EBITDA) losses in Q1 FY24, underpinned by gradual improvements in operating efficiency. Notably, Damansara Specialist Hospital 2’s (DSH2) bed occupancy rate in January 2024 was guided to increase to 50 per cent on top of healthy growth in average monthly revenue. Note that DSH2 recently boosted its operating beds to 100. It looks to add 30-50 beds by the end of 2024. “We keep our earnings estimates unchanged but lower our required returns assumption to 9.2 per cent from 9.6 per cent. “Maintain Buy with a higher target price of RM2.12 as we think KPJ Healthcare’s domestic-centric focus should offer it a valuation premium over IHH Healthcare Bhd in the near term. “Key downside risks are lower-than-expected patient visits and higher-than-expected operating costs,” RHB Research said.

Investment & Market Trends

Local Firm Eyes Global Expansion In Booming Alternative Protein Industry

KUALA LUMPUR: Domestic alternative protein firm Ultimeat is eyeing the United States (US), China, Hong Kong, Taiwan, and Indonesian markets. Ultimeat founder and chief executive officer Edwin Lee said there are about seven alternative plant-protein-producing companies locally. The company see strong demand in Malaysia and globally for the alternative protein industry. According to Ernst & Young, the sustainable, alternative protein industry in Malaysia is projected to reach US$17.4 billion in 2027. Another data and analytics company GlobalData, reports that the local meat substitutes market is set to expand at a value compounded annual growth rate (CAGR) of 7.4 per cent throughout 2023 to 2027. Protein products like tofu, obtained from soybeans, registered a global market size of US$2.75 billion in 2022 and expanded at a CAGR of 15.16 per cent to reach US$6.43 billion from the 2023-2030 forecast period. Industry stakeholders have noted a surge in demand for newer alternative protein products in the global and local markets in recent decades. Strikingly evident today are newer varieties of plant-based alternatives made from quinoa and other sources displayed on supermarket shelves. Plant-based nuggets, burgers, and minced meat are the common consumables visible in the cold section as they are readily accessible and affordable to the community. Noting this significant demand for plant-based products, United States entrepreneur Alfred C Cheung, a certified food scientist, has set his foot on this rosy trail with his founder and chief executive officer Edwin Lee. Having set up their own company called Ultimeat, both men are bent on riding the gravy train in this area of food production. Speaking to The Exchange Asia recently, Cheung said that he is aware that the average Malaysian supermarket sells a range of varied plant-based proteins like soy-based tofu or wheat-based seitan, and many of these products are great choices for local consumers. According to him, plant-based protein has a growing middle-class and flexitarian niche market, with consumers always looking for delicious alternative protein sources. “It is here that we saw the opportunity to embark on this ultra-modern food production venture,” said Cheung. Ultimeat, established in 2021, is up and running, rolling out plant-based proteins from soy. The company is transitioning to mycoprotein, derived from fungi, as its main ingredient. “Yes, our feedstock fodder is fungi. We intend to introduce the wonderful world of ‘mycoprotein’, a revolutionary fungi-derived product that is, though a little underrated, economically viable, and an eco-friendly alternative to traditional animal proteins,” he said. Asked if local consumers would take to this plant-based food derived from fungi, he said Malaysians love trying new and interesting foods, and there are still many lesser-known and potentially more suitable alternative proteins out there that can be harnessed to provide protein food choices to the growing local market. “Not only do these products have a lower environmental impact than animal agriculture, but they also make up an essential part of vegetarian and vegan diets, with the necessary amino acids for building and repairing tissues in the body,” said Cheung. According to him, mycoprotein is created through a process known as biomass fermentation. The process uses the high protein content and rapid growth of microorganisms—in this case, fungi—to efficiently make large amounts of protein-rich food. Since fermentation is a natural process, this has the added benefit of being much cheaper than other methods of creating alternative protein products. He said the extrusion method uses moisture, high heat, and mechanical energy to produce meat substitutes in seconds. While the extrusion process is quicker, it is significantly more expensive. In contrast, fermentation uses less energy and utilises carbon and nitrogen sources, which, as a bonus, is better for the environment. According to Edwin Lee, there are about seven alternative plant-protein-producing companies locally. When suggested that the playing field could be crowded with seven players competing for the market share, Lee said Ultimeat is committed to operating alongside the environment, social, and governance practices, offering plant-based food and its soon-to-be-launched mycoprotein alternatives, aiming to reduce environmental impact without sacrificing nutrition and taste. “By leveraging efficient lab-based production to lower carbon footprints and ensuring its products are both healthy and flavourful, we are showcasing our commitment to sustainability, affordability, and quality. These salient factors position Ultimeat products as the preferred choice,” he said. Lee also disclosed that Ultimeat is eyeing the opportunity to reach further horizons by exporting its products to the US, China, Hong Kong, Taiwan, and Indonesia as early as this year. “Our products are supplied to retailers, supermarkets, food service and hotel industries. We are also developing newer products such as meal replacement shakes and ready-to-drink products to complement our existing range of products. “Our base fodder is mycoprotein, which offers an umami flavour, meat-like texture, and a slew of nutritional alignment with our mission to provide healthy, sustainable food options without compromising taste or environmental integrity. “We are committed to pioneering mycoprotein as a key player in the future of our food,” he added. Ultimeat, which started operations with an initial investment capital of US$2.20 million, has a total staff strength of 35 employees. When asked to comment on the expected return on investments (ROI), Lee said the company’s current stance is to shift the focus from traditional ROI metrics to a broader impact on the food system. “Our investment goes beyond financial gains. We aim to improve sustainability and nutrition within the global food industry significantly. “We want to contribute to a more sustainable, healthy, and equitable food future that aligns with the United Nations Sustainable Development Goals,” he said.

ESG

Meta Bright Starts Commercial Operation Of Solar Project For Sinergi Perdana

KUALA LUMPUR: Meta Bright Group Bhd (MBGB) has achieved its commercial operation date (COD) for its solar project under the solar photovoltaic (PV) zero capex program for Sinergi Perdana Sdn Bhd (SPSB) on March 21, 2024. SPSB is owned by the Rubber Industry Smallholders Development Authority (RISDA), which is part of the Ministry of Rural and Regional Development. The solar project, developed by MBGB’s wholly-owned subsidiary FBO Land (Setapak) Sdn Bhd (FLSB), has a capacity of up to 401.76 kWp. MBGB executive director of corporate and strategic planning Derek Phang Kiew Lim said the successful completion of installation for the solar project with SPSB marks a significant milestone in the company’s journey towards sustainability. “This project not only exemplifies our commitment to renewable energy but also aligns with the government’s initiatives to promote clean energy solutions. “We are excited about the positive impact this project will have on our earnings and the environment,” he said in a statement. This initiative is part of a 21-year renewable energy supply agreement, offering SPSB a 20 per cent discount to the prevailing Tenaga Nasional Bhd (TNB) tariff rates, equipped with imbalance cost pass-through (ICPT). Further, this project is estimated to mitigate approximately 380.81 tonnes of CO2 emissions annually, thus contributing significantly to environmental sustainability by reducing carbon footprints, combating climate change and promoting cleaner energy alternatives. In addition to the successful installation of the Sinergi Perdana project, MBGB is actively pursuing new opportunities in the renewable energy sector. The company is currently exploring projects in the Commercial & Industry (“C&I”) segment worth approximately RM34.7 million. MBGB stated that the total value of projects that have completed installation stands at approximately RM3.55 million. Additionally, the company has projects currently in progress valued at around RM11.89 million. The commercial operation of this project is expected to provide MBGB with sustainable earnings income, contributing positively to the company’s long-term financial stability. Furthermore, the project is projected to mitigate a significant amount of CO2 emissions, reinforcing the company’s dedication to clean energy and a greener, sustainable future. The solar program’s acceptance by SPSB is a testament to the trust placed in MBGB’s ability to deliver mutually beneficial and sustainable renewable energy solutions. The company is optimistic about expanding participation in its solar PV zero capex program with other Malaysian enterprises, demonstrating its capability to contribute to sound environmental, social, and governance (ESG) practices.

Property

Teladan Group, Melaka Corporation to Jointly Develop German Technology Park In Jasin

KUALA LUMPUR: Melaka-based property developer Teladan Group Bhd’s (TGB) wholly-owned subsidiary Riverwell Resources Sdn Bhd (RRSB), signed a memorandum of understanding (MoU) with Melaka Corporation (MCorp) to develop a 341.2-acre German Technology Park at Ayer Panas, in Jasin, Melaka. The project aims to attract German investment into Melaka and strengthen Malaysia-Germany economic ties. It encompasses various industrial developments, including industrial bungalow lots, semi-detached factories, shop offices, and centralised labour quarters. Under the MoU, both parties will collaborate on feasibility studies and development planning for the project. The agreement seeks to leverage TGB’s construction expertise and its landbank located along Jalan Gapam. MCorp, the Melaka state government development agency, will lead the development and sales of the Project. Melaka chief minister Datuk Seri Utama Ab Rauf Yusof said this collaboration strengthens Malaysia’s position as a preferred investment destination within ASEAN and deepens economic ties with Germany. “The project aligns with the government’s economic growth initiatives by promoting industrial advancement and attracting high-tech industries to Melaka. “By leveraging Malaysia’s strategic location in Southeast Asia and its robust infrastructure, we aim to drive Melaka’s industry, business, and trade forward. “The project represents a significant step towards advancing international trade activities, creating job opportunities, and broadening the country’s market access. “At MCorp, we are committed to supporting Malaysia’s economic growth and development,” he said in a statement. Ab Rauf Yusoh and the ambassador of the Federal Republic of Germany Dr Peter Blomeyer graced the recent signing ceremony. This project builds on the robust trade relations between Malaysia and Germany, which have flourished over the past decade. Germany has remained Malaysia’s top trading partner in the European Union, while Malaysia is now Germany’s largest trading partner in Southeast Asia. Furthermore, Malaysia remains an attractive destination for foreign direct investments (FDIs), with German companies investing EUR€8.5 billion (RM43.61 billion) as of 2023. TGB managing director Richard Teo Lay Ban said the company is confident in its contribution to this project’s success, given its proven track record of developing over RM2.9 billion in combined gross development value (GDV) across residential, commercial, and industrial projects. “Looking ahead, we are optimistic about Melaka’s economic trajectory, driven by the 2024 Budget’s focus on enhancing Melaka’s competitiveness and the government’s commitment to positioning the state as a global tourism hub and trade and investment centre. “With TGB’s deep experience in Melaka, we are well-positioned to explore new development opportunities and unlock significant long-term commercial value,” he said. As of December 31, 2023, TGB holds 1,071.5 acres of undeveloped land, a significant portion of which is located in Melaka. This land has a potential GDV of RM2.7 billion.

Experts

Data Analytics And Malaysia’s Cities Of The Future

As Malaysia’s urban areas continue to expand, they face numerous obstacles in terms of urban planning and management. Under the smart city concept, advanced technologies are employed to tackle issues such as traffic congestion, pollution, and housing shortages, and generally create a more sustainable urban environment. In line with Malaysia’s proactive efforts to promote smart city initiatives, the country has already implemented smart city frameworks in Iskandar Malaysia and Kuala Lumpur. One example is the Iskandar Malaysia Bus Rapid Transit (BRT), a system that is projected to commence operations by 2025. This modern public transportation system is envisioned to alleviate traffic congestion, reduce reliance on private vehicles, and improve the overall mobility experience for residents and visitors alike. Another smart city initiative is the Iskandar Malaysia Urban Observatory (IMUO). As a data collection and analysis platform, the IMUO gathers various information concerning the city’s infrastructure, environment, and socio-economic aspects to derive insights that will be used for decision-making by urban planners and government bodies. The Smart City Iskandar Malaysia framework highlights the key aspects that define a smart city, encompassing the likes of an open data culture in government, a technology-proficient population, a reliable Internet infrastructure, people-centric mobility systems, and a low-carbon environment. While the scope of a smart city under this definition might seem overwhelming, at the core lies data as the essential element. City and regional governments have access to vast amounts of data, collected from various sources. While its collection and storage may present challenges, governments must recognise the potential data holds to enhance the lives of their citizens significantly. Properly utilising this data is the key to unlocking its true value and driving meaningful improvements in areas such as public services, infrastructure, and community development. With the right tools and strategies in place, governments can tap into the wealth of data available to make informed decisions and shape policies that align with the needs and aspirations of their communities. This data-driven approach allows for a more connected and empowered society, where decisions are based on evidence and insights derived from comprehensive data analysis. Jakarta, in neighbouring Indonesia, provides an example of how data is indispensable for smart cities. The city’s government developed the JAKI app as a ‘one-stop digital platform’ for multiple government services. Through the development and integration of a SAS analytics platform with the app, millions of data points were standardised and integrated into JAKI. This new system now plays a crucial role in preventing fraud by utilising a streamlined database that enables public servants to verify eligibility for social programs quickly. This ensures that resources are allocated to those who truly need them. Another significant application of analytics in the context of JAKI is the former’s capacity to build models that predict and mitigate flooding. The city government can respond to flooding incidents more swiftly, minimising the damage caused to lives, properties, and businesses. As the significance of artificial intelligence (AI) and data analytics within the smart city ecosystem increases, so too does the threat posed by cyber criminals. Governments have massive amounts of data, including classified government information and personally identifiable information (PII). Generative adversarial networks (GANs), which create synthetic data to mask real data being fed into AI models to counter such threats, are already being deployed by advanced analytics platforms. The emergence of LLMs is another development which holds great potential for smart city technologies. The ability of these models to generate conversational language can enhance the user accessibility of applications such as JAKI. At the same time, its ability to analyse massive amounts of text in a short period of time can help derive insights from data faster. To take smart city attributes to new heights, embracing the capabilities of data-driven technologies is essential. The success of JAKI and the emphasis placed by local policymakers on initiatives like the IMUO underline the significance of collecting, analysing, and utilising data to shape and enhance urban environments. While historical data enables predictive analytics and empowers governments to tackle challenges proactively, real-time data and decision-making are crucial for responding to emergencies. Therefore, having access to real-time data plays a vital role in automating smart city technologies and facilitating real-time decision-making by AI systems. Advanced data analytics tools are indispensable to fully exploit the immense value of the government’s extensive data, which originates from various sources and encompasses diverse types. Without a complete view of their data, the impact of decision-makers, automated systems, and smart city solutions cannot reach its full potential.

Investment & Market Trends

Strong Demand For Dollar Bolstered DXY, Ringgit Remains Weak, Says Kenanga

KUALA LUMPUR: The strong demand for the greenback due to uncertainty about the Fed’s outlook has bolstered the US Dollar Index (DXY) within a 103.4 to 104.0 range, keeping the ringgit weak above RM4.70 per dollar. Kenanga Investment Bank Bhd said that following the Federal Open Committee Meeting (FOMC) meeting, the ringgit recovered some losses, which was helped by Fed chairman Powell’s remarks interpreted as dovish. The research firm said despite the pivotal decision by the Bank of Japan (BoJ) to end its negative interest rate policy and stronger-than-expected China’s industrial production index (IPI) and retail sales data, the ringgit surprisingly did not strengthen. “Also, disappointing domestic export growth has further weighed on the currency,” Kenanga said in a report. Meanwhile, the unexpected 25 bps rate cut by the Swiss National Bank on Thursday has significantly weakened the Swiss franc (CHF). “This, combined with the Bank of England’s dovish shift and robust US manufacturing purchasing managers’ index (PMI) data, has propelled the DXY higher, weakening the ringgit,” Kenanga said. The research firm said next week’s lack of catalysts may tether the ringgit’s movement against the dollar. However, anticipated fund inflows into emerging markets, particularly in Malaysia, due to speculation of a Fed pivot in June and the nation’s relative stability might aid the ringgit’s recovery. Additionally, continuous government and Bank Negara Malaysia (BNM) efforts to boost the ringgit’s value through short- and long-term policy reforms could support its stability. Kenanga said the market attention will be on the US core personal consumption expenditures (PCE) data next Friday.

Experts

Fostering Gender Equality And Inclusion To Build A Thriving Workplace

Gender equality in the global workforce is a multifaceted issue with varying levels of progress across different countries and industries. However, according to PwC’s research on workplace inclusion, women with the highest levels of inclusion are more likely to advance in their careers. The study highlights the importance of workplace inclusion in promoting gender equity and women’s progression, particularly in light of the slow progress in gender representation in leadership positions worldwide. The research reveals a gender disparity in promotion and pay raise requests, but also shows that women in inclusive environments are more likely to seek advancement opportunities. Here are some key strategies for creating a thriving workplace through gender equality and inclusion. To cultivate gender equality and inclusivity in the workplace, it’s imperative to strive for balanced representation of both women and men on company boards. Designating a specific board seat for an individual committed to championing talent retention and fostering diversity, equity, and inclusion (DEI) is essential. Leadership must initiate and drive change from the highest level, embedding equity principles throughout board structure and activities. This approach emphasises the importance of diverse perspectives and inclusive practices in shaping company culture and decision-making processes. Companies need to consider not only the appointment of women onto boards but also their integration to reap the full benefits of gender diversity. Men play a vital role as allies in promoting gender equity and fostering a more inclusive society. By amplifying women’s voices, challenging stereotypes, and educating themselves about gender disparities, they can actively contribute to reshaping societal norms. Men can also provide mentorship and sponsorship to women, promoting equal representation in leadership and reflecting on their own biases and privileges. To achieve gender equality in the workplace, it is crucial to start with the recruitment process. This involves creating accurate and inclusive job descriptions, sourcing a diverse candidate pipeline, and conducting fair interviews. It is necessary to eliminate internal biases throughout  the hiring process, with a particular focus on executive positions. According to McKinsey, men currently hold approximately 60 per cent of manager positions, while women hold 40 per cent, a representation of the gender disparity in early promotions. With men outnumbering women, there are fewer women to promote to senior managers, causing a decreasing number of women at every subsequent level. Organisations must ensure that all employees receive equitable compensation for their contributions, irrespective of their gender. The gender pay gap refers to the difference in average earnings between men and women in the workforce. Despite efforts to narrow the gap, women still earn 16 per cent less than men on average. The gender pay gap varies significantly across industries, locations, ethnicities, age groups, motherhood statuses, and education levels. Some groups experience a much wider gap than others. Enforcing flexible work policies, including remote work alternatives and adaptable schedules, promotes work-life balance for every employee. During the International Women’s Day Celebration 2024, the Malaysian Prime Minister had said the government is looking into a more flexible pay scheme for the civil service to enable women employees to better care for their families. This is a move that the Congress of Union of Employees in the Public and Civil  Services Malaysia (CUEPACS) sees as a significant step towards gender equality and work-life balance in the public sector as it would assist women employees to balance work and childcare duties at home. Fostering gender equality and inclusion is essential for building a thriving workplace. We can achieve this by ensuring equal representation on company boards, equipping senior male leaders to champion DEI, focusing on diversity during recruitment, ensuring equal pay and  benefits, and implementing flexible work policies. These efforts not only advance gender equity but also contribute to increased productivity, innovation, and financial returns. By embracing gender equality and inclusion, organisations can nurture a more resilient workforce and drive positive change for all employees.

Experts

Empowering Transformation: Female Riders, Vendors Changing The Landscape Through Inclusion

In today’s economy, women are playing an increasingly pivotal role, challenging traditional norms and breaking barriers in industries once dominated by men. Over time, we have witnessed a significant shift, with more women championing roles that were previously considered exclusive to men. One notable trend is the growing presence of women in the p-hailing industry, defying stereotypes and reshaping the landscape of transportation services. As more women join the ranks of delivery partners and restaurant owners, they drive economic growth and foster greater inclusivity and diversity within the workforce. For this year’s International Women’s Day, it is important to recognise the invaluable contributions of female delivery partners and restaurant owners in the food delivery industry. Their resilience, dedication, and unwavering commitment are pivotal in shaping our platform and serving communities nationwide. The gig economy has witnessed exponential growth in recent years, with p-hailing jobs becoming an essential source of income for millions nationwide. Amidst the challenges posed by the Covid-19 pandemic, the gig economy emerged as a lifeline for individuals seeking financial stability and independence. In Malaysia, the gig economy has become a significant driver of economic growth, with over 100,000 new individuals participating and earning income via gig economy platforms as of the third quarter of 2023, compared with 266,222 individuals in 2022. This sector has provided income opportunities for a huge number of Malaysians, highlighting its substantial impact on employment and livelihoods. At foodpanda, we understand the importance of fostering an inclusive environment where everyone, regardless of gender, can thrive and succeed. Over the years, there has been a significant increase in women joining the gig economy as delivery partners. These women play a crucial role in facilitating the delivery of essential goods and services, enriching the lives of Malaysians across the country. Gig work has always been a great way for individuals to earn a supplementary income due to its flexible working hours, many female riders now view it as a viable springboard to other industries or entrepreneurship opportunities. However, to fully harness the potential of the gig economy, it is essential to prioritise upskilling and professional development initiatives. This reminds me of Puan Rahayu, a 41-year-old mother of three, who transitioned from a school bus driver to becoming Bukit Jelutong’s first female foodpanda rider during the pandemic. Inspired by local riders, she found flexibility in the job, working for a couple of hours and having the flexibility to ensure she had time to balance between her work and family. She is truly happy, especially knowing how customers value her delivery when she even got an RM100 tip from a customer, which is considered high for a foodpanda rider. Puan Rahayu is definitely not alone, we have similar stories from many wonderful women delivery partners out there. We prioritise the empowerment of our riders at foodpanda through a range of upskilling programs and benefits. For example, we recently partnered with Manipal International University (MIU) to provide our delivery partners with the opportunity to pursue tertiary education. This initiative enables and allows our riders to enhance their skills and qualifications, opening doors to new career prospects and advancement. Furthermore, we recognise the importance of language proficiency in enhancing job delivery capabilities and employability. In addition, Panda Purpose, a program designed to improve the English literacy skills of our delivery partners. By investing in their professional development, we aim to enhance the value of our workforce and ensure the highest level of service for our customers. By offering training and mentorship programs, we empower our female riders and vendors to overcome challenges and achieve their goals. Whether it’s navigating through bustling streets or managing their businesses, we provide them with the tools and resources they need to thrive in a competitive market. But our efforts extend beyond empowerment, they are about creating a more inclusive society where women are valued and respected for their contributions. By celebrating the achievements of female riders and vendors, we inspire future generations of women to pursue their dreams and break barriers. As we celebrate International Women’s Day, let us reaffirm our commitment to empowering female riders and vendors in the gig economy. By providing them with the support, resources, and opportunities they need to succeed, we can create a more inclusive and equitable future for all. Together, let us champion diversity, inclusion, and empowerment in the food delivery industry and beyond.

Scroll to Top

Subscribe
FREE Newsletter