Author name: exchangemsia_admin

The Securities Commission Malaysia (SC) has released its Annual Report 2025, Audit Oversight Board Annual Report 2025, and Capital Market Stability Review 2025. Malaysia’s capital market grew 3.2% in 2025 to a record RM4.3 trillion, up from RM4.2 trillion in 2024, supported by stronger corporate bond issuances and higher fund management inflows. The SC said the performance was achieved despite heightened global market volatility caused by trade tensions and geopolitical uncertainty. Average daily trading value in the Malaysian equity market fell 19.7% to RM2.76 billion in 2025 from RM3.44 billion in 2024, reflecting cautious investor sentiment. SC chairman Dato’ Mohammad Faiz Azmi said the Malaysian capital market remained resilient despite the challenging global environment. He said the results reflect the market’s strong fundamentals, with the SC continuing to balance market development with integrity while providing a stable and innovative environment for stakeholders. He added that while global uncertainty, geopolitics and technological disruption remain challenges, the Capital Market Masterplan 2026–2030 positions Malaysia to continue reforms, improve competitiveness, strengthen governance and enhance investor protection. Key Highlights from 2025: Malaysia’s Islamic Capital Market grew 4.31% to RM2.7 trillion. Assets under management in the fund management industry rose 6.9% to a record RM1.14 trillion. Total funds raised through the capital market jumped 35.4% to RM187.7 billion. A record 60 IPOs were listed in 2025, surpassing 55 in 2024. Venture capital and private equity committed funds increased 21.66% to RM30.05 billion. Alternative financing channels raised RM5.7 billion for MSMEs and mid-tier companies. Regional Competitiveness: Malaysia strengthened its regional position in 2025 through: Recognition by the IFRS Foundation as one of the first ASEAN jurisdictions to adopt ISSB Standards under the National Sustainability Reporting Framework. Introduction of the Single-Family Office incentive framework, which has so far secured nine conditional approvals representing nearly RM670 million in indicative assets under management. Investor Protection and Enforcement: The SC said it continued to strengthen investor protection and enforcement in 2025. Malaysia achieved “Regular Follow-up” status under the Financial Action Task Force (FATF), the highest possible rating. The SC initiated 96 criminal charges against 16 individuals for securities law breaches. Courts secured nine convictions, with jail terms of up to three years and fines totalling RM13.1 million. Civil enforcement actions recovered RM11.14 million through disgorgement and penalties. A total of RM1.98 million was returned to 239 investors, with another RM8.63 million earmarked for 993 affected individuals. The SC also imposed 99 administrative sanctions, including RM8.28 million in penalties. Market Stability: The Capital Market Stability Review 2025 found that domestic markets remained fair and orderly, with no systemic risks identified. The report said intermediaries remained well-capitalised, equity and derivatives markets functioned smoothly, no corporate bond defaults were recorded, and listed companies continued to show resilience. Audit Oversight Board: There are currently 41 audit firms and 397 individual auditors registered under the Audit Oversight Board (AOB). In 2025, the AOB inspected 41 audit engagements involving 40 auditors from 14 audit firms. The AOB also took enforcement action against two audit firms and six auditors for breaches of auditing standards, imposing penalties totalling RM423,750. It also suspended one audit firm and two partners for serious audit quality issues. SC Priorities for 2026: The SC said future initiatives under the Capital Market Masterplan 2026–2030 will focus on market vibrancy, inclusivity, sustainability and regional opportunities. Upcoming measures include: Revised Malaysian Code on Corporate Governance 2026 Enhanced Main Market and ACE Market value proposition Improved LEAP Market framework Stronger Digital Asset Exchange framework Greater tokenisation of securities The SC has also launched the MY Value Up Programme, a private debt framework for MSMEs, and expanded ETF rules to allow Digital Asset ETFs.

PwC Hong Kong has agreed to pay HK$1.3 billion (US$166 million or RM658 million) in fines and compensation in Hong Kong over its auditing work for China Evergrande Group. The Accounting and Financial Reporting Council (AFRC) said PwC Hong Kong will be suspended for six months from accepting, performing, or issuing reports for new listed-company audit clients. It was also fined HK$300 million. In a separate settlement with the Securities and Futures Commission (SFC), PwC Hong Kong agreed to pay HK$1 billion, which will be used to compensate eligible independent minority shareholders of China Evergrande, according to the regulator. The SFC said both parties agreed the matter would be fully resolved without admission of liability, and no further action will be taken provided PwC Hong Kong complies with the settlement terms. The penalties come as PwC Hong Kong works to rebuild its reputation following earlier regulatory action linked to its audit of Evergrande, which contributed to client departures among state-owned enterprises, major Chinese firms, Hong Kong regulators, and staff. PwC China audited Evergrande, while its mainland arm, PwC Zhong Tian, audited its unit Hengda Real Estate Group. PwC Hong Kong served as Evergrande’s auditor for over a decade before resigning in January 2023, citing audit-related disagreements. Evergrande is listed in Hong Kong but operates mainly in mainland China. Separately, the AFRC issued a public reprimand to PwC Hong Kong and two former partners, and required the firm to submit regular updates on remedial actions for 12 months, as well as conduct staff training. PwC China chair and CEO Hemione Hudson said the settlements conclude regulatory matters related to Evergrande audits from more than five years ago, with no impact on existing clients. Regulatory scrutiny intensified following Evergrande’s collapse. Founder Hui Ka Yan has pleaded guilty to bribery, embezzlement, and fraud, while Chinese authorities previously accused the developer of inflating revenue by over 560 billion yuan. PwC was also fined 441 million yuan in China and suspended for six months, with regulators alleging it “turned a blind eye” to Evergrande’s fraud. Audit firms typically pay such fines from internal reserves, as professional indemnity insurance does not usually cover regulatory penalties, and partners may also be required to contribute depending on firm policy. Separately, a lawsuit filed by Evergrande’s liquidators seeking to recover funds from PwC Hong Kong is scheduled for its first public hearing in May, nearly two years after being initiated.

Seni Jaya Corporation Bhd has seen the emergence of two new substantial shareholders following the completion of its acquisition of outdoor advertising company Vision OOH Sdn Bhd. Lawrence John Cannard was issued 43.55 million new shares in Seni Jaya, representing a 16.03% stake, while Chong Yan Moy received 14.52 million shares, or a 5.35% stake. The Vision OOH acquisition, first announced in February last year, was fully settled through the issuance of new shares at 31.6 sen each, valuing the deal at RM18.35 million. In a separate development, Seni Jaya said it has mutually agreed with vendors to extend the deadline for fulfilling conditions precedent for its proposed acquisition of Unilink Outdoor Sdn Bhd to June 19. The Unilink deal is valued at RM39.5 million, to be satisfied through RM11.85 million in cash and the remainder via share issuance at 31.6 sen per share. Unilink is owned by Seni Jaya’s major shareholder and executive director Ong Kah Hoe. Based on the company’s circular, Ong’s stake is expected to increase to 23.61% from 6.23% upon completion of the acquisitions and a private placement exercise. Following the corporate exercises, Cannard’s stake is expected to be diluted to 10.29%, while Chong’s holding is projected to fall to 3.43%. Meanwhile, Seni Jaya’s largest shareholder, Datin Lee Nai Yee, is expected to see her stake reduced to 6.05% from 11.98% after completion of the exercises. The company’s financial performance has continued to improve. For the six months ended Dec 31, 2025, Seni Jaya posted revenue of RM44.9 million, up 22% year-on-year from RM36.8 million, while profit before tax rose 18% to RM10.6 million. The stronger performance was driven by higher billboard occupancy rates, disciplined cost control and improved execution across its asset base. The group said it remains focused on strengthening its market position through portfolio expansion and integration. The planned acquisitions of Unilink Group, Vision OOH and Ganad Media are expected to expand its nationwide footprint, enhance its premium inventory and create operational synergies for long-term growth. Seni Jaya shares closed down 0.5 sen, or 0.9%, at 54.5 sen on Thursday, valuing the group at RM116.38 million. The stock has gained 75.8% over the past year.

Tanco Holdings Bhd has revised the structure of its proposed smart AI container port in Port Dickson, replacing an earlier long-term lease arrangement with a port development concession (PDC) model. The new structure formalises the project under a concession framework while maintaining the original payment terms and tenure of up to 98 years. In a Bursa Malaysia filing on Thursday, the property developer said its 79%-owned subsidiary Midports Holdings Sdn Bhd (MHSB) and 80%-owned unit MBINS Ventures Sdn Bhd (MVSB) have signed a supplemental heads of agreement with Menteri Besar Negeri Sembilan (Pemerbadanan) (MBINS), amending terms from the original agreement signed in November last year. The project involves developing a smart container port on about 180 acres of submerged land in Dickson Bay, Negeri Sembilan. The broader Midport development spans a 480-acre land bank owned by Tanco, with natural deepwater access of more than 21 metres, capable of accommodating some of the world’s largest container vessels. The proposed port is positioned as an AI-driven and automated logistics hub, featuring smart cargo handling systems, green port technologies, and supporting logistics and industrial activities. Under the original structure, MVSB was to lease the land to MHSB for 98 years at a base rental of RM5 million per month, with payments starting three years after the agreement date or upon completion and commencement of port operations, whichever is later. This has now been replaced with a PDC structure, under which MVSB grants MHSB concession rights over the land for an initial 33 years, with two renewal options of 33 years and 32 years. The base concession fee remains RM5 million per month, payable in advance and subject to a 5% increase every five years. Payments will begin three years from the date of the supplemental agreement or upon completion and commencement of port operations, whichever comes later. As before, RM1 million from each monthly payment will be channelled directly to MBINS as its entitlement under the joint venture structure. Tanco said the revisions are not expected to have any material impact on earnings for the financial year ending June 30, 2026. In December, the company named CCCC Dredging Southeast Asia Sdn Bhd, a unit of China Communications Construction Company, as the proposed engineering, procurement, construction and commissioning contractor for the seaport component, with a package valued at up to RM3.53 billion. Construction is expected to take about three and a half years once it begins. Later that month, Hong Kong-based Ocean Bridge International Ports Management Co Ltd was appointed to operate the terminal and deploy AI and automation technologies across cargo handling, storage, logistics transport and related services. However, ownership and ultimate disposal rights of the terminal assets will remain with MHSB, which will also bear all profits and losses from port operations. Tanco shares slipped two sen, or 1.22%, to RM1.62 on Thursday, valuing the group at about RM9.94 billion. The stock has gained more than 37% year to date.