Investment & Market Trends

KUALA LUMPUR: Ho Wah Genting Bhd’s (HWGB) subsidiary HWGB Capital Sdn Bhd (HCSB), has signed a conditional share sale agreement with Leong Oi Heng to acquire 55 per cent stake in Advanced Apotheke Sdn Bhd (AASB) for RM2.4 million. HCSB, in a statement, said this partnership with AASB aligns perfectly with HCSB’s mission of innovation and meeting market demands. “The wellness industry is ripe with potential, and with AASB’s established brand presence in organic products, we see a bright future ahead,” an HCSB spokesperson said. The acquisition comes strategically as the organic skincare market is experiencing robust growth, propelled by the rising demand for natural alternatives to conventional beauty products. Health-conscious consumers’ heightened awareness of the beauty industry’s environmental impact and governments’ implementation of stricter regulations on synthetic and harmful ingredients are driving this surge in demand. Established in 2010, AASB is well known for its wide array of high-quality fragrances and organic skincare products. With the organic skincare sector on a robust growth trajectory, ASB stands at the forefront with its unique East-meets-West approach, blending traditional Chinese medicine (TCM) therapies with contemporary Western treatments. This holistic wellness philosophy aims to enhance mental health and body immunity, nurturing beauty and promoting healthy-looking skin. This initiative by AASB has emerged as a major selling point, differentiating its product line into not just skin-deep but integrative health solutions. The organic skincare market has been experiencing robust growth, driven by health-conscious consumers, environmental awareness, and stricter regulations. With a compound annual growth rate (CAGR) of 8.5 per cent from 2022 to 2027, the global organic skincare market is expected to reach US$25 billion by 2027. AASB’s Organic Lab carries a range of recognised brands, including Neal’s Yard Remedies, Jurlique, L’erbolario, Bloomy Lotus, and SSENSE, all representing effective, clean, and sustainable beauty. AASB spokesperson said this partnership represents a significant milestone for the company, providing the resources and support necessary to accelerate growth and expand reach. “With the backing of HWGB, we can focus on expanding our outlets and product offerings and concentrate on digital marketing, which is a main source of our customers. “We are confident that this collaboration will enable us to tap into new markets and further solidify our position as a leader in the organic skincare industry. “We are looking forward to building this into an entity that can ride on the booming organic skincare market and create a lasting impact on the wellness sector,” AASB spokesperson said in a statement. AASB’s outlets are at Pavilion Hilltop Mont’Kiara, Exchange 106 within the Tun Razak Exchange, and the recently launched outlet at The Gardens Mall, one of Kuala Lumpur’s premium shopping destinations.

KUCHING: Sarawak will breach its tourism revenue to RM9.76 billion this year from RM8.07 billion recorded in 2023. According to Malaysian Association of Tour and Travel Agents (Matta) Sarawak chapter chairman Oscar Choo, this year’s outing earned RM8.9 million, up from last year’s RM6 million, signalling a healthy post-COVID recovery in local tourism statistics. He said his ministry had projected three million visitor arrivals with RM7.6 billion in revenue in 2023. However, as of October last year, Sarawak already received 3.18 million visitors. Late last year, Sarawak Minister for Tourism, Creative Industry and Performing Arts Datuk Seri Abdul Karim Rahman Hamzah said the target followed the state’s encouraging trend of visitor arrivals in 2023. “The tourism receipts stood at RM8.07 billion, which contributed about 5.75 per cent to Sarawak’s gross domestic product (GDP),” he told the state assembly. Abdul Karim also pointed out that the post-COVID-19 tourism industry in Sarawak is expected to grow exponentially, corresponding with signs of positive growth in the global tourism scenario. He said Sarawak expected visitor arrivals to recover to the pre-pandemic level fully by 2025. According to him, Sarawak is charting its course into new ventures, especially with the acquisition of MASWing and the development of tourism attractions that are expected to be completed by then. He said that tourism will flourish and become one of the main drivers of Sarawak’s GDP growth, sustaining its high-income status. “Over the years, the East Malaysian states have become a popular destination among foreigners who are smitten with the state’s rave attractions such as nature explorations, outdoor adventures at national parks and eco-tourism at nature reserves,” Abdul Karim said. Deputy Minister for Tourism, Creative Industry and Performing Arts Datuk Snowdan Lawan, who officiated the opening of the fair, quoted recent data from the World Bank and said international tourists nowadays prefer nature tourism. “The ministry will be focusing on the concept of culture, adventure, nature, food and festivals (CANFF),” he said. He also said Sarawak must align itself to cater to tourists’ interests and provide adequate gateways to facilitate their movement throughout the state. In aligning with tourists’ aim to visit Sarawak, he said the state needs to have an abundance of gateways to facilitate the movement of tourists throughout the state. Snowdan said the state must provide enough flights into Sarawak and that is why airline businesses are vital as they are the conduits that connect those from international grounds to Borneo. Taking a cue from Snowdon, one enterprising tour operator has plans to encourage West Malaysian locals to seek the many holiday destinations in Sarawak based on the CANFF concept. Speaking to The Exchange Asia, Khaimal Borneo managing director Mohammad Fikri Zainol Majid said locals from West Malaysia largely visit Sarawak for official business engagements but rarely for a ‘good time-spent holiday’ in the Borneo state. “We perceive this as a niche area in local tourism where West Malaysian tourists can enjoy Sarawak’s many splendoured holiday outposts under the ‘Cuti-Cuti Malaysia’ itinerary,” he said. Sarawak MATTA Fair, a three-day fair that began on Friday, concluded yesterday with 71 booths operating at The Hills here. The fair was packed with locals and foreigners seeking the best bargains for holiday destinations in the state, which also goes by the moniker ‘The Land Of The Head Hunters’. Among the 71 booths at the fair were those offering off-shore holidays to Europe, China, Seoul, Japan, South Asia, and the popular regional destinations in Southeast Asia such as Indonesia, Vietnam, Thailand and the Philippines. Airline operators were also present to attract potential travellers with exciting flight fares from West Malaysia and the surrounding Southeast Asian cities to the Borneo states of Sabah and Sarawak. Malaysia Airlines, Firefly, and MASwings, designated official airlines for the fair, offered discounted and promotional fares from popular Asian capitals to Sarawak and Sabah.

KUALA LUMPUR: AmBank Group has granted RM300 million in financing facilities to Uzma Engineering Sdn Bhd (UESB), a wholly owned subsidiary of Uzma Bhd, a leading energy and technology solutions provider. The financing supports key contracts awarded by Petronas Carigali Sdn Bhd (PCSB), the oil and gas exploration and production subsidiary of Petroliam Nasional Bhd (Petronas). These include the provision of hydraulic workover and plug and abandonment operations(Package A: 340K HWU Rig and Package B: 460K HWU Rig), awarded in May 2023. The financing also supports contract extension for the leasing, operation, and maintenance of the water injection facility for PCSB awarded in October 2022. “We are very pleased to be supporting Uzma, a key service provider to PCSB and Petronas in their climate change transition towards generating sustainable energy which strategically aligns with the National Energy Transition Roadmap. “This strategic collaboration is aimed at supporting essential operating expenditures for contracts that drive efficiency and innovation in our national oil and gas sector and align with our shared vision for a more sustainable future. “Responsible financing is pivotal in fostering sustainable operations across industries, and this initiative exemplifies our commitment to being at the forefront of environmental stewardship while supporting economic growth,” AmBank Group chief executive officer Jamie Ling said in a statement. Uzma stands at the forefront as a key beneficiary of Petronas Activity Outlook 2024-26 report. With anticipated increased upstream activities by Petronas, the outlook remains positive for upstream service providers like Uzma. Uzma has also positioned itself as a competitive solutions provider, leveraging ongoing energy transition efforts to drive sustainable growth. AmBank Group managing director of business banking Christopher Yap said in alignment with AmBank’s dedication to promoting sustainable practices, this financing arrangement with UESB is a testament to the bank’s proactive approach to supporting its clients through responsible banking practices. “By backing UESB’s endeavours to enhance operational efficiencies and reduce environmental impact within the oil and gas sector, we are not just investing in the future of business, but also in the future of our planet. “This initiative underscores our belief in the power of partnership and innovation to drive meaningful progress towards sustainability goals. “We are excited to play a pivotal role in facilitating these critical advancements, demonstrating our ongoing commitment to contributing positively to our community and the environment,” he said. Uzma group chief executive officer Datuk Kamarul Redzuan Muhamed said this financing agreement underscores AmBank’s confidence in Uzma’s capabilities and strategic position in the industry. “Dedicated to advancing the energy landscape, Uzma values AmBank Group’s unwavering commitment to supporting the energy sector. “With this financing in place, we are poised to deliver on our promises, driving sustainable solutions with low-carbon footprint and contributing to the nation’s energy security,” he said. This financing facility from AmBank Group reflects a shared commitment to driving growth and innovation in the energy sector. Uzma looks forward to leveraging this support to strengthen further its position as a leading solutions provider in the industry.

KUALA LUMPUR: IHH Healthcare Bhd subsidiary Pantai Holdings Sdn Bhd (PHSB) has completed its acquisition of the entity that owns Timberland Medical Centre and the earmarked vacant land in central Kuching for the construction of a 200-bed tertiary hospital for RM245 million on a cash-free debt-free basis. This acquisition allows PHSB to expand its range of quality healthcare offerings in East Malaysia. PHSB chief executive officer Jean-François Naa said as its patient numbers grow, the company recognise the need to enhance its capacity and reach to better serve them. “Timberland Medical Centre, with its 30-year legacy in Kuching and strong brand presence, is an ideal healthcare institution to fulfil this purpose. “With the acquisition of Timberland Medical Centre and expansion into Sarawak, we will be preparing for the future, while ensuring a quality healthcare experience for all our patients, here and now,” he said in a statement. Jean-François said that in the near future, PHSB intends to further scale up Timberland Medical Centre’s operations via a new 200-bed tertiary hospital to be constructed in central Kuching. This hospital will serve local needs and cater to the growing medical tourism market in Indonesia. “Our geographical proximity to Indonesia makes us an ideal healthcare destination, with direct and affordable flights available between our countries,” he said. Timberland Medical Centre currently offers a wide range of medical and surgical services including cardiology, nephrology, oncology, gastroenterology, general surgery, orthopaedic surgery, hepatology surgery, orthopaedic and urology. PHSN has been present in East Malaysia since 2015 with the establishment of Gleneagles Hospital Kota Kinabalu. It is one of the largest private healthcare providers in Malaysia, with a healthcare network of 11 Pantai Hospitals, four Gleneagles Hospitals, Prince Court Medical Centre and now, Timberland Medical Centre. Jean-François said this marks PHSB’s This is the company’s inaugural acquisition in Sarawak, and it is eager to harness the full potential of its healthcare network to further enhance its services and patient care here.

KUALA LUMPUR: Construction and property player Varia Bhd signed a memorandum of understanding (MoU) with Sungai Klang Link Sdn Bhd (SKL) for an elevated highway project. This venture represents a strategic partnership aimed at harnessing Varia’s extensive construction expertise in the design, construction, operation, and management of this pivotal infrastructure development in the Klang Valley. Varia managing director Datuk Benson Lau said this collaboration is a testament to the company’s commitment to enhancing Malaysia’s urban infrastructure and an opportunity to set new benchmarks in construction and design excellence. “By combining our rich expertise in innovative construction solutions with our dedication to sustainable development, we are poised to deliver a project that will significantly ease traffic flow, improve connectivity, and contribute to the economic growth of the Klang Valley. “We look forward to the positive changes this project will bring to the community and the environment,” he said in a statement. SKL, a special-purpose vehicle company, has been actively engaged since 2019 in securing a concession agreement from the government for the right to build, manage, own, and operate the Sungai Klang Link elevated highway. The highway, spanning approximately 52.5 kilometres along the Klang River, will integrate with existing highway networks through 7 interchanges, providing an essential alternative route for road users in the region. The project has garnered substantial support from various government departments and local authorities and is now at an advanced stage of securing final approval from the government. Varia, with its comprehensive portfolio of construction works and history of undertaking design and build projects, is uniquely positioned to contribute significantly to this venture. SKL managing director Datuk Mohd Nazri  Ismail, this partnership aligns with the company’s goal of improving the transportation network in the Klang Valley by offering an additional route to ease traffic congestion. “Varia’s experience in managing significant infrastructure projects gives us confidence in the successful execution of this elevated highway. “We anticipate this project will contribute positively to the urban infrastructure, supporting more efficient transportation options. “Our combined efforts aim to address the current challenges in urban mobility and serve as a practical addition to the region’s infrastructure,” he said. As of March 8, 2024, Varia’s share price was RM0.89, with a market capitalisation of RM371.1 million, while the company’s orderbook remained strong at RM1.1 billion.

KUALA LUMPUR: Unitrade Industries Bhd (UIB) has declared a first interim single-tier dividend of 0.44 sen per share for the financial year ending March 31, 2024 (FY24). This translates to a dividend payout of RM6.9 million. Managing director Nomis Sim Siang Leng said the dividend declared reflects the company’s commitment to shareholder value creation and serves as a token of appreciation for their continued confidence in UIB. “It also aligns with our dividend policy to distribute up to 30 per cent of our net profit while prioritising a balanced approach that ensures both shareholder rewards and sufficient capital for future growth initiatives,” he said in a statement. UIB reported an 11.2 per cent year-on-year (YoY) revenue growth of RM1.14 billion, driven by the wholesale and distribution segment. Net profit for the period stood at RM23.1 million. UIB maintains a consistent record of rewarding shareholders. The company distributed dividends of 0.82 sen per share and 0.30 sen per share for FY22 and FY23, respectively, a 30 per cent dividend payout for both financial years.

KUALA LUMPUR: Dagang NeXchange Bhd’s (DNeX) wholly-owned subsidiary Dagang Net Technologies Sdn Bhd (DNT), signed a memorandum of understanding (MoU)  with Korea Trade Network (KTN) to develop services for the trade facilitation industry in the local and regional markets. Under the agreement, both companies will deploy home-grown technologies from Dagang Net and global capabilities from KTN in key areas such as port community systems, electronic customs and information technology (IT) consultancy services. The partnership will involve the integration of technologies and capabilities of both parties in the areas of integrated risk management system, customs cargo management and clearance system, port community system, customs processing and analytics/big data, artificial intelligence and machine learning, robotic process automation, blockchain and consultancy services. Moreover, the partnership can bring together the expertise of both parties to benefit their customers, specifically in digital and technology transformation of trade facilitation. The MoU was formalised in Cyberjaya, where Dagang Net’s chief executive officer Wan  Ahmad Syatibi Wan Abd Manan signed on behalf of the company, and KTN was represented by its chief executive officer Young-Hwan Cha. DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, group chief operating officer Azhar Othman, Dagang Net chief technology officer Jasbendarjit Kaur, and KTN director Sung-Heun Ha were also present at the event. According to Syed Zainal, the partnership aims to jointly develop trade facilitation services with enhanced features, leveraging both parties’ technologies and capabilities to improve the overall efficiency and productivity of the trade ecosystem. “This partnership allows us to work with KTN to expedite the transformation of the trade ecosystem, capitalising on our capabilities, breadth, and depth of offerings and technologies backed by our proven track records,” he said in a statement. “We need to continue embedding innovation in our services and product offerings, and our partnership with KTN is one such way towards this end,” he added. Since its establishment in 1989, Dagang Net has pioneered initiatives to create and integrate paperless, electronic customs-related services to facilitate and streamline international trading processes for import and export. Dagang Net has also been the operator of the National Single Window  (NSW) for trade facilitation for Malaysia since 2009, where the system facilitates electronic customs-related transactions and duty payments and electronic document transfer between members of its trading community. KTN is Korea’s national paperless trade infrastructure operator. In collaboration with the Korean government, it implements and operates the uTradeHub platform for all businesses in international trade. Leveraging the experience, KTN has successfully implemented e-customs systems in other countries.

KUALA LUMPUR: Duopharma Biotech Bhd (DBB), via its subsidiary Duopharma Marketing Sdn Bhd (DMSB), signed an exclusive distributorship agreement with Owen Mumford Sdn Bhd (OMSB), a subsidiary of UK-based medical device company Owen Mumford, for the distribution of medical devices in Malaysia, Singapore and Brunei. As per the agreement, DBB will distribute a range of diabetes care and eye care products, namely the Unifine, Pentips and Unifine Pentips Plus insulin pen needles, Unistik 3 and Unilet Excelite lancets and Autodrop eye drop guide, to government and private healthcare facilities, other patient care facilities and retail outlets, with potential expansion of the range of products distributed. Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Wira Arham Abdul Rahman said the alliance between DBB and OMSB integrates two pivotal sectors of healthcare -pharmaceuticals and medical devices. “This integration showcases our dedication to improving healthcare access through innovative technologies, embodying our commitment to the well-being of our population. “The medical devices sector is prioritised in Mission 1 of the New Industrial Master Plan 2030, where the vision is to transform Malaysia into an innovation-driven manufacturing hub. “It underscores the capacity building in the medical devices and pharmaceutical industries by leveraging innovation and high-skilled talent to drive a high complexity economic agenda,” he said in a statement. DBB group managing director Leonard Ariff Abdul Shatar said OMSB’s innovative product range is a great fit for DBB’s current offerings to patients, healthcare providers and carers. “As a leading Malaysian healthcare company, we believe that having greater access to quality medical devices can improve patient compliance to routine care procedures such as blood sugar testing and insulin injections among diabetics, thus leading to better healthcare outcomes in the longer term. “This is especially important in light of the growing diabetes burden in Malaysia. “Besides, this is also in line with our environmental, social and governance (ESG) focus on improving access to healthcare, whereby providing more options to patients means improving their ability to get the care that best suits their needs,” he said. The prevalence of diabetes among Malaysian adults has grown from 11.2 per cent in 2011 to 18.3 per cent in 2019, with the disease is expected to affect 7 million Malaysian adults by 2025 at a prevalence of 31.3 per cent. The British High Commissioner to Malaysia Ailsa Terry said the coming together of DBB’s pharmaceutical expertise and OMSB’s acute understanding of medical devices will benefit and support millions of people living with diabetes. “This partnership represents what can be achieved when the very best from the United Kingdom (UK) and Malaysia join forces to support something incredibly important—the health and well-being of its people,” she said. Founded in the UK, OMSB is a pioneer in medical design innovation that revolutionised diabetes care with the first injector pen and currently has a wide product portfolio covering diabetes care, blood and patient specimen collection, point-of-care testing, neuropathy screening, ophthalmology care and sexual healthcare. “Since OMSB Malaysia began operations in 2015, we have focused on elevating healthcare through engagement with patients and healthcare professionals and tailoring medical devices to meet their needs, besides conducting ongoing education to ensure the correct usage of devices for optimal healthcare outcomes. “We are committed to delivering innovative, high-quality products and have launched initiatives such as including pen needles in complimentary bespoke starter kits at local government hospitals and providing vouchers to support patients in the B40 demographic. “With nearly RM100 million invested in our manufacturing facilities, operations and programmes in Malaysia since 2015, we aspire to continue serving as a source of advanced medical solutions in the country as well as the surrounding Asian region,” OMSB regional managing director Shirley Loh said.

KUALA LUMPUR: Domestic banks experienced steep margin compression and increased operating expenses in 2023, which were partly balanced by stronger non-interest income and lighter provisioning charges. RAM Rating Services Bhd said the average pre-tax return on assets and return on equity (ROE) of eight selected local banks was lower at 1.36 per cent and 13.6 per cent, respectively, compared to 1.41 per cent and 14.0 per cent recorded in 2022. The rating agency said at the after-tax level. However, the one-off Cukai Makmur’s absence lifted profitability metrics higher than the previous year. Further, the average net interest margin (NIM) of the eight banks narrowed by 28 bps to 2.07 per cent—the lowest level seen in the last five years. While multiple overnight policy rate (OPR) hikes initially resulted in considerable margin expansion in 2022, RAM Ratings noted that banks have grappled with higher funding costs in the past year as deposits gradually repriced upwards. The firm further said stiffer competition for deposits and the expiration of forbearance allowing the use of government securities for statutory reserve requirement compliance exacerbated the pressure on margins. “As we expect the OPR to be kept unchanged this year, NIMs are anticipated to stay steady although modest compression is possible should deposit competition intensify,” RAM Ratings’ co-head of financial institution ratings Wong Yin Ching said in a statement. Domestic loans grew by a fairly strong 5.3 per cent in 2023. While lending momentum was tepid for much of the year, it accelerated in the fourth quarter (Q3), led by businesses. RAM Ratings noted that early signs of a recovery in global trade and the robust job market are expected to support loan demand this year. “However, as we remain watchful of challenges in the global macroeconomic environment, elevated cost pressures and petrol subsidy retargeting, loan growth for 2024 is projected to ease somewhat,” the agency said. On the asset quality front, given lower reported provisioning expenses in 2023, the average credit cost ratio of the eight banks improved from 30 bps to 23 bps. A large portion of management overlays set aside during the Covid-19 pandemic remains on bank balance sheets. ”Looking ahead, banks’ profitability should stay intact in the coming year, but the upside will be limited in light of prevailing uncertainties in the operating landscape,” Wong said.