Investment & Market Trends

KUALA LUMPUR: Integrated engineering solutions provider Kelington Group Bhd (KGB) has taken a strategic step forward in its global growth strategy by expanding into Germany and Hong Kong. This move positions the company to capitalise on the flourishing global semiconductor industry and broaden its geographical reach. Chief executive officer Ir Raymond Gan said the semiconductor industry outlook is bright, and chipmakers are aggressively expanding production capacity to meet surging demand for chips, driven by factors like geopolitical diversification and the need for advanced technologies like artificial intelligence (AI), the Internet of Things (IoT), electric vehicles, and Industry 4.0. “As these technologies advance, the demand for semiconductor manufacturing facilities remains strong. “After a contraction in 2023 due to the industry’s cyclical nature, semiconductor manufacturing equipment growth is expected to resume in 2024, with sales expected to strongly rebound in 2025,” he said in a statement. Gan said this is driven by capacity expansion, new fab projects, and high demand for advanced technologies and solutions across the front-end and back-end segments. “Germany and Hong Kong are key hubs for innovation in these sectors, and we are optimistic of capturing a larger market share of the global semiconductor capex in these two markets,” said Gan. He said that leveraging the company’s track record of completing successful projects for leading multinational clients (MNCs) in Malaysia, Singapore, China, and Taiwan, KGB is well-positioned to attract new clients in Germany and Hong Kong and serve existing clients who are expanding their manufacturing footprint in these regions. To expand in both markets, KGB has incorporated Kelington Engineering (Germany) GmbH and Kelington Engineering (HK) Ltd as indirect wholly-owned subsidiaries. KGB provides integrated engineering solutions, including ultra-high purity (UHP) systems, process engineering and general contracting services, which are critical elements required for building new semiconductor manufacturing plants. Benefitting from the capacity ramp-up among semiconductor players, KGB reported revenue and net profit of RM1.6 billion and RM102.7 million, respectively, for the financial year ended December 31, 2023.

KUALA LUMPUR: Allianz Life Insurance Malaysia Bhd (Allianz Life) and HSBC Bank Malaysia Bhd (HSBC Malaysia) is expanding partnership by introducing two new investment-linked funds, the Allianz Life World HealthScience Fund and the Allianz Life ESG-Integrated Multi Asset Fund. These funds aim to empower customers by giving them access to new and exciting investment opportunities whilst offering a diverse range of asset classes. With these options, customers can tailor their investment portfolios to align with their financial goals and protection needs, ensuring a secure future. “The new underlying funds seamlessly integrate with our existing investment-linked insurance plans, offering convenience and flexibility for HSBC customers. Whether they seek growth, wealth preservation, or a balanced approach, there is an option to suit every individual,” Allianz Life chief executive officer Charles Ong said in a statement. “HSBC Malaysia and the Allianz Life team of experienced professionals are available to provide personalised guidance and support to help customers make informed decisions,” he added. HSBC Malaysia is the exclusive bancassurance distributor for Allianz Life insurance products in the areas of protection, education, retirement, wealth and legacy needs since 2012. For HSBC Malaysia, the rollout of the two new funds complements the banking group’s holistic wealth planning solutions, which aligns with its wider ambition to become the leading wealth manager in Asia. These two new investment-linked funds, with underlying funds managed by BlackRock, aim to deliver performance and strategic asset allocation. BlackRock underscores the significance of the Allianz Life World Healthscience Fund in today’s landscape, emphasising the value of quality healthcare exposure amidst sustained profitability. The target fund manager remains optimistic about the outlook for quality healthcare equities in 2024, poised to withstand macroeconomic uncertainty. For the Allianz Life ESG-Integrated Multi Asset Fund, BlackRock highlights the benefits of flexibly managed multi-asset strategies in achieving precise investment outcomes while effectively managing risk and capitalising on diverse opportunities. The target fund manager stresses the importance of incorporating liquid alternatives within multi-asset portfolios to complement more traditional equity and fixed-income allocations to achieve further diversification and strong risk-adjusted returns in the current market environment. “Harnessing ageing demographics and sustainable themes like energy transition, which will be some of the mega forces for years to come, creates attractive investment opportunities. “We are excited to collaborate with Allianz Life to provide global investment exposure across targeted themes and sectors that ride on these trends. “As the hunt for resilient, quality equities continues to increase in 2024, investors should be looking at adding respective exposures in their portfolios to achieve financial well-being,” said BlackRock Head of Asia Pacific Wealth Andrew Landman.

KUALA LUMPUR:  Fajarbaru Builder Group Bhd’s (FBG) wholly-owned subsidiary, Fajarbaru Builder Sdn Bhd (FBSB), along with Avionics Pty Ltd (APL), has secured a delivery phase (early works) contract from the Australian Department of Defence, with FBG’s portion of the contract worth RM11.04 million. This contract further expands FGB’s involvement in the design and construction of infrastructure projects to redevelop military facilities at the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang. With this announcement, the total value of FGB’s work secured for the project is now RM23.34 million as of March 15, 2024. The early works, which come under the project’s delivery phase, will commence on March 18, 2024, and are scheduled to be completed on November 21, 2024. FGB group executive chairman Tan Sri Chan Kong Choy said securing this award is another reaffirmation of the company’s position as a trusted partner in critical infrastructure projects. “We believe we are well-positioned to deliver exceptional results, showcasing our commitment to excellence and ability to meet the strict requirements of the Australian Department of Defence. “Over the long run, we believe this project will significantly increase our earnings. “We continue seeking opportunities to expand our involvement in this project by bidding for more packages, focusing on value-added and negotiated business,” he said in a statement. To recap, on July 10, 2023, FBSB and APL bagged a head contract (International) in two phases from the Australian Department of Defence to redevelop the Australian leased facilities and Malaysian facilities at Royal Malaysian Air Force (RMAF) Base Butterworth. For the project’s planning phase, FGB’s portion of the contract initially had a value of RM7.36 million. On January 11, 2024, FGB announced that the total value of this portion had been revised upwards to RM12.30 million to account for additional work. Further details of the contract and project are included in FGB’s stock exchange filings on March 15, 2024, January 11, 2024, and July 10, 2023. With a strategy to drive sustainable revenue flow through a diverse range of businesses, FGB continues to demonstrate sustained improvements on the financial and operational front. In the second quarter (Q2) ended December 31, 2023 (FY24), FGB reported a net profit of RM20.88 million, a surge of 606 per cent compared to a net profit of RM2.96 million reported in the first quarter (Q1) FY24. Revenue amounted to RM126.79 million, an impressive 74 per cent increase compared to the first quarter of the same financial year. The company’s property development segment mainly drove the improved performance for the second quarter. As of March 15, 2024, FGB’s construction division currently has an orderbook of RM927 million with a wide range of projects such as high-rise residential buildings, affordable apartments, retail complexes, service apartments, and the redevelopment of military facilities. FGB is currently tendering for construction projects with a combined value of RM4.7 billion across the private and government sectors. Major recent job wins include a contract worth RM120.82 million for construction works for the Johore Golf & Country Club, which marks FGB’s inaugural venture into Johor. The company continues extending its project portfolio across diverse regions, from Penang to the East Coast, Klang Valley, and southern states in Peninsula Malaysia. In FY24, FGB will continue building its property development business’s brand presence and broadening its portfolio. In Malaysia, FGB is progressing on its latest development project, Desa Green, located in Kuala Krai, Kelantan. The company is also engaged in a joint venture for the Centralised Labour Quarters (CLQ) project in Senawang, Negeri Sembilan. In Australia, FGB has initiated a new project in Fitzroy, Melbourne, slated for launch this year. Another Australian project, The Wilds, aims to be the first carbon-neutral detached housing project in inner Melbourne. All residences will be powered exclusively by electricity and equipped with solar panel arrays.

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.