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The High Court has dismissed Bursa Malaysia Securities Bhd’s case against MAA Group Berhad over alleged breaches of listing rules in relation to the shareholder approval process for the sale of KNM Group Bhd’s German assets. In its ruling, the court held that MAA should not automatically be treated as a listed issuer subject to full listing obligations simply because it convened an extraordinary general meeting (EGM) for KNM shareholders under the Companies Act 2016. The court also found that any procedural irregularity, if present, could be rectified and there was insufficient evidence of substantial injustice. Written grounds for the decision will be issued later. The case, heard on May 14, 2026, was linked to an EGM initiated by MAA as KNM’s largest shareholder to approve the proposed disposal of Deutsche KNM GmbH, despite objections from Bursa. Other defendants included KNM Group Bhd, CIMSEC Nominees (Tempatan) Sdn Bhd, and KNM Process Systems Sdn Bhd. Bursa had sought to halt the EGM until full compliance with the Main Market Listing Requirements was met. The suit was filed on Oct 28, 2025, ahead of the originally scheduled Oct 30, 2025 meeting. MAA, led by Tunku Datuk Yaacob Khyra, holds a 19.37% stake in KNM. MAA said the High Court dismissed the case with no order as to costs, while Bursa may still appeal the decision within 30 days. The ruling comes amid KNM Group Bhd’s broader legal and restructuring challenges following the collapse of its €270 million deal to sell its German unit, Deutsche KNM GmbH, to Japan’s NGK Insulators. KNM is seeking damages including RM363 million for loss of market value after delisting, €46.5 million in German bank exposures, and RM42.69 million in costs. KNM, which was classified as a Practice Note 17 (PN17) company, had been trying to complete the disposal of its German assets, Borsig, which it acquired in 2008 for €350 million. The sale was part of its plan to reduce debt and exit PN17 status, with expected debt reduction of about RM1.3 billion and working capital gains of around RM100 million. However, Bursa rejected KNM’s restructuring plan in October 2025, saying it failed to demonstrate long-term viability and did not adequately address its financial issues. KNM later withdrew its appeal and proceeded with delisting in November 2025 after Bursa warned against holding the vote without complying with listing rules. The EGM was eventually adjourned to a date after delisting took effect.

The MADANI government will provide more than RM5 billion in microfinancing facilities in 2026, aimed at benefiting over 400,000 micro-entrepreneurs nationwide through loans of up to RM100,000. The Ministry of Finance (MOF) said in a statement that the financing will be channelled through various agencies and development financial institutions, including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank, and Bank Rakyat. Some schemes will offer financing rates as low as 3% per annum. Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said relevant agencies have been instructed to step up outreach efforts to ensure wider access, especially for small traders, hawkers, and micro-entrepreneurs facing capital constraints. He said application processes must be simplified and financing conditions kept fair and accessible, in line with the principles of the MADANI Economy, which emphasises compassion, justice, and equality. He added that the initiative targets groups such as small traders, night market vendors, women, youth, gig workers, TVET graduates, small contractors, padi farmers, and asnaf communities. He clarified that the microfinancing facilities are separate from other SME support schemes, including the RM5 billion SME Special Relief Facility under Bank Negara Malaysia and the RM5 billion guarantee scheme under Syarikat Jaminan Pembiayaan Perniagaan. In total, more than RM15 billion in financing support has been made available to MSMEs this year.

The MADANI government’s microfinancing initiatives are helping strengthen Malaysia’s economic resilience during periods of geopolitical uncertainty by maintaining liquidity and supporting domestic economic activity, especially among small and medium-sized enterprises (SMEs). IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said microfinancing serves as a targeted stabiliser that helps reduce the impact of economic pressure on SMEs, which often have limited financial buffers. Mohd Sedek Jantan. He said rising operating costs driven by higher global oil prices and ongoing trade policy uncertainty have tightened margins and created uneven cash flow conditions for many businesses. Access to financing, he added, helps SMEs maintain cash flow, sustain operations, and avoid disruptions to employment and investment activities. He also noted that microfinancing supports local consumption and strengthens community-level economic activity, which becomes more important when external growth conditions are weak. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said access to financing and credit is crucial during economic shocks, allowing businesses breathing space to manage financial obligations. He said government-backed financing schemes enable SMEs to refinance existing debt at competitive rates, easing pressure from rising costs such as fuel. He added that additional capital also allows businesses to invest in digitalisation and enterprise systems such as ERP, helping improve efficiency and reduce operating costs. On Thursday, the MADANI government through the Ministry of Finance announced more than RM5 billion in microfinance facilities for 2026, expected to benefit over 400,000 micro-entrepreneurs with loans of up to RM100,000. The financing will be channelled through agencies and development financial institutions including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank, and Bank Rakyat. The ministry added that more than RM15 billion in total financing support has been provided to MSMEs this year, including a RM5 billion SME Special Relief Facility under Bank Negara Malaysia and another RM5 billion facility under the Syarikat Jaminan Pembiayaan Perniagaan (SJPP).

Citigroup Inc. has partnered with BlackRock Inc.’s HPS Investment Partners to launch a €15 billion (US$17.5 billion) private credit programme aimed at expanding direct lending across Europe, the UK and eventually the Middle East. Under the partnership, Citi will use its network and banking capabilities to source investment opportunities, focusing on borrowers across the EMEA region. The programme will target a wide range of sub-investment grade debt opportunities over an initial five-year period. Citi said the collaboration is designed to meet growing demand from corporate and sponsor clients seeking customised private credit financing solutions. The move highlights the increasing collaboration between major banks and investment firms as they expand into the fast-growing private credit market, despite heightened scrutiny surrounding the sector in recent months. The partnership also builds on Citi’s previous private credit push, following its US$25 billion direct lending programme with Apollo Global Management, Inc. launched in 2024.