Investment & Market Trends

Finance Minister II Datuk Seri Amir Hamzah Azizan said RM480 million from the government’s additional RM990.9 million development expenditure (DE) for 2025 will be channelled towards a RM1.1 billion capital injection into Vantris Energy Bhd, rather than being used for typical infrastructure projects such as hospitals, schools and roads. The supplementary DE allocation was tabled in the Dewan Rakyat on Thursday and approved without debate. Amir explained that the RM480 million has been allocated to Malaysia Development Holding Sdn Bhd (MDH), which will use the funds to partially finance its RM1.1 billion subscription of redeemable convertible loan stocks (RCLS) in Vantris. The remaining balance will be funded internally by MDH. He stressed that the government’s involvement is not a bailout but a strategic intervention aimed at safeguarding Malaysia’s domestic oil and gas ecosystem. The capital injection, announced in March 2025, is strictly designated for vendor payments, with more than 1,400 vendors already receiving payments. Amir also highlighted that Vantris Energy has undertaken governance and accountability reforms, including restructuring its board to enhance oversight, broaden expertise and strengthen checks and balances at board level. In addition, the company has established a Chief Integrity and Governance Officer (CIGO) role, which reports directly to the board’s Audit Committee to reinforce compliance, improve oversight and mitigate potential conflicts of interest. Vantris — formerly known as Sapura Energy — previously received RM2.68 billion from Permodalan Nasional Bhd (PNB) in 2018, when PNB acquired unsold rights shares. The funds were used to repay bank borrowings and support working capital requirements. As part of its post-restructuring strategy, Vantris recently disposed of its entire 40% stake in L&T-Sapura Shipping Pvt Ltd for US$30.5 million (RM118.59 million) to streamline its portfolio and focus on core assets. The proceeds will be channelled towards supporting its engineering and construction, as well as operations and maintenance segments over the next 24 months. For the third quarter ended Oct 31, 2025, Vantris posted a net profit of RM4.27 billion, compared with a net loss of RM293.06 million a year earlier. The turnaround was largely driven by a one-off RM4.47 billion gain from debt forgiveness following the completion of its financial restructuring on Sept 26. The restructuring reduced total borrowings to RM5.7 billion from RM10.76 billion previously. However, the group recorded an operating loss of RM97.07 million for the quarter, as expenses rose nearly 15% year-on-year to RM1.08 billion.

CIMB Group Holdings Bhd and Ant International have entered into a strategic collaboration to explore innovative solutions in cross-border payments, as well as treasury and liquidity management for businesses operating in Malaysia. From left: Douglas Feagin, President of Ant International; Kelvin Li, General Manager of Platform Tech at Ant International; Peng Yang, CEO of Ant International; Novan Amirudin, Group Chief Executive Officer, CIMB; Sylvia Wong, Regional Head, Financial Institutions and Tokenisation, Group Wholesale Banking, CIMB; Chu Kok Wei, Chief Executive Officer, Group Wholesale Banking, CIMB The partnership will leverage CIMB’s extensive capabilities in cash management, treasury and markets solutions, credit and financing facilities, capital markets activities, and sustainability-focused initiatives, alongside Ant International’s key platforms, including Alipay+, Antom, and Bettr Treasury. By combining their expertise, both organizations aim to enhance the efficiency, transparency, and resilience of financial operations for corporate clients in the region. Under a formal memorandum of understanding (MOU), CIMB and Ant International plan to jointly develop a digital framework to optimise treasury and liquidity management. This framework will harness Ant International’s next-generation blockchain-based treasury management solutions and is designed to strengthen capital efficiency, improve cross-border liquidity, and reinforce transparency, all while adhering to applicable regulatory guidelines and approvals. The initiative is intended to create a more robust, interconnected, and scalable financial ecosystem, enabling both parties to better serve institutional and corporate clients in Malaysia. By adopting advanced digital tools, the collaboration also seeks to accelerate the institutional adoption of distributed ledger technology (DLT) in the treasury and liquidity space, paving the way for next-generation financial infrastructure solutions across ASEAN. Novan Amirudin, group CEO of CIMB, described the partnership as a key milestone in the bank’s Forward30 strategy, which aims to embed innovation at the core of its operations. “Our collaboration with Ant International allows us to enhance the efficiency, transparency, and connectivity of cross-border financial services, while positioning CIMB as a leader in scalable and future-ready digital financial infrastructure in the region,” he said. Douglas Feagin, president of Ant International, highlighted the transformative potential of the partnership. “By combining the strengths of both organizations, we aim to scale institutional adoption of tokenisation and distributed ledger technology, which are central to next-generation financial infrastructure. This will create a more inclusive, efficient, and resilient financial ecosystem for Malaysian businesses,” he added. The collaboration reflects a growing trend among banks and fintechs to leverage technology for cross-border payments and liquidity solutions, especially as businesses in Malaysia and the wider ASEAN region increasingly seek faster, more secure, and more transparent ways to manage capital flows and financial operations.

Sunway Bhd has increased the cash portion of its takeover offer for IJM Corp Bhd from 31.5 sen to 32.5 sen per share following the declaration of a two-sen dividend for Sunway shareholders. The adjustment reflects the dividend payout multiplied by the 0.501 Sunway shares that each IJM shareholder would receive under the offer. Despite the change, the total offer price remains at RM3.15 per IJM share, with the majority of the consideration (90%) still in Sunway shares, valuing IJM at RM11 billion. Under the revised terms, each block of 1,000 IJM shares now entitles shareholders to RM325 in cash plus 501 Sunway shares worth RM2,830.65 at the current issue price. The issue price of RM5.65 per Sunway share and the number of consideration shares remain unchanged. The offer will take effect once Sunway secures more than 50% of IJM and meets customary closing conditions. IJM, which operates in construction, property, infrastructure, and highway concessions, has an outstanding order book of RM4.4 billion and unbilled property sales of RM1.59 billion. Sunway said all other terms of the offer remain the same and advised IJM shareholders to review the offer document and independent advice circular on Bursa Malaysia before deciding.

Bank Negara Malaysia (BNM) has fined KAF Investment Bank Bhd RM1.025 million for breaching foreign exchange policy (FEP) rules under the Financial Services Act 2013 (FSA). The penalty arose after KAF IB failed to obtain BNM’s approval for foreign currency transactions involving a resident individual whose domestic ringgit borrowing exceeded the allowed limit, violating Section 214(9) of the FSA. The breach also reflected inadequate internal controls to ensure compliance with FEP Notices, as required under Section 214(6) of the FSA. KAF IB has since implemented remedial measures, including new internal policies and procedures to strengthen compliance. The bank paid the compound on Jan 29, 2026. BNM said it considered both aggravating and mitigating factors, such as the bank’s prior compliance record and corrective actions, before determining the compound. The central bank reiterated that financial institutions must fully comply with FEP requirements, including obtaining written approval for certain foreign exchange transactions, to avoid enforcement actions.

Capital A Bhd is targeting an exit from Practice Note 17 (PN17) status after a substantial gain from the disposal of its aviation business, part of its completed regularisation plan, lifted the group to a positive shareholders’ equity position. The sale of the airline business generated a gain of RM9.75 billion, propelling Capital A’s net profit for the fourth quarter ended Dec 31, 2025, to RM10.2 billion, compared with a net loss of RM1.66 billion in the same period a year earlier, according to a Bursa Malaysia filing on Wednesday. Quarterly revenue increased 48.3% year-on-year to RM769.08 million from RM518.51 million. For the full year, the group reported a net profit of RM13.03 billion, swinging from a net loss of RM501.25 million in FY2024, largely due to the disposal gain. Cumulative revenue rose 16.7% to RM1.99 billion from RM1.71 billion. “The disposal has restored the group to positive equity of RM937 million, marking a clear financial reset. We now look forward to lifting our PN17 status and drawing a firm line under past challenges,” said Capital A CEO Tan Sri Tony Fernandes. Excluding its divested aviation business, Capital A’s continuing operations “largely met” internal targets. EBITDA stood at RM443 million, slightly below the guided range of RM500 million to RM600 million, while revenue of RM3.4 billion was marginally under the RM3.5 billion to RM4 billion range. The net operating profit (NOP) margin of 7% landed at the lower end of the 7% to 10% target range. No dividend has been proposed for the financial year. Capital A’s ongoing operations now consist of five key units: Asia Digital Engineering (ADE) — a maintenance, repair and operations unit, Teleport (logistics), AirAsia Move (travel platform), Santan (F&B), and AirAsia Next (brand licensing and digital IP). For the current fiscal year, the group has set internal targets of RM3.8 billion in revenue, RM600 million in EBITDA, and a 7% NOP margin of RM266 million. Fernandes noted that the group’s performance depends on each of the five business units achieving their respective objectives. He added that Capital A is ready to embark on its next phase of growth, focusing on its five tech-driven businesses. Following the announcement, Capital A shares closed 1.5 sen, or 2.54%, higher at 60.5 sen, giving the company a market capitalisation of RM2.68 billion.

Lembaga Tabung Haji has become a significant shareholder in AEON Co (M) Bhd following its latest acquisition of shares in the Malaysian retailer and shopping mall operator. The pilgrimage fund crossed the 5% disclosure threshold after purchasing 250,000 shares, equivalent to a 0.018% stake, on Tuesday, February 24. This latest transaction increased Tabung Haji’s total holding in AEON Co to 5.013%, or approximately 70.39 million shares, according to a filing with Bursa Malaysia on Wednesday. With this move, Tabung Haji joins the list of notable institutional investors in AEON Co. Another key shareholder is the Employees Provident Fund (EPF), which holds a 7.618% stake in the company. Meanwhile, AEON Co’s parent company, AEON Co Ltd, remains the largest shareholder with a majority 52.02% ownership. Tabung Haji has been actively participating in the Malaysian equities market in recent months. Last month, the fund re-emerged as a substantial shareholder in SKP Resources Bhd, taking a 5.092% stake after more than a decade, and also acquired a 5.006% stake in newly listed Orkim Bhd. AEON Co’s shares responded positively to the announcement, ending one sen, or 0.76%, higher at RM1.33, giving the company a market capitalisation of RM1.87 billion. Analysts note that Tabung Haji’s increased participation in the market reflects its continued focus on strategic investments in well-established Malaysian companies with stable operations and long-term growth potential, reinforcing its position as an influential institutional investor. This latest acquisition also highlights the growing trend of domestic funds strengthening stakes in local listed companies, potentially enhancing corporate governance and providing additional stability to the shareholder base of firms like AEON Co.

A 20% slide in Baidu Inc’s shares over the past month serves as a crucial reminder for companies in China’s rapidly intensifying artificial intelligence (AI) race: investors are demanding tangible results. The search engine specialist kicks off December-quarter earnings for China’s Big Tech on Thursday, amid growing concern that its AI investments are not translating into a meaningful growth driver quickly enough. Despite strength in the cloud business, analysts predict both revenue and profit to fall year on year, hurt by continued weakness in the core advertising business that’s closely tied to the broader economy. With markets fixated on AI, positive management commentary or evidence that capital spending is bearing fruit will be crucial to help stem an equity rout that’s eroded US$11 billion (RM42.78 billion) in market value since a three-year high on Jan 23. “In the crowded field of Chinese AI players, Baidu is viewed more as an optionality or valuation‑driven sum‑of‑the-parts story rather than a clearly defined long‑term winner,” said Gary Tan, a portfolio manager at Allspring Global Investments LLC. “Baidu must demonstrate it is leveraging its AI capabilities to build a true full stack AI platform rather than acting as a jack of all trades.” Baidu was among the first Chinese companies to embrace AI and roll out a ChatGPT-like service, but it has lost leadership in the field to larger rivals as well as newcomers like DeepSeek. The Beijing-based firm’s flagship mobile application has also seen popularity wane, with young users flocking to social apps from rivals ByteDance and Xiaohongshu for search queries. The stock has suffered also on account of a wave of new listings by pure‑play AI firms such as chip designers and large language model developers. The outsized gains in shares of companies like MiniMax Group Inc and Knowledge Atlas Technology JSC Ltd — better known as Zhipu — are luring investors away from diversified internet conglomerates such as Baidu, Alibaba Group Holding Ltd and Tencent Holdings Ltd. The Hang Seng Tech Index, which counts Alibaba, Tencent and Baidu among heavyweights, is down 9% over the past month. Shares of Alibaba and Tencent down about 12% each. Baidu’s stock has fared much worse, losing nearly 20% over the period. The downtrend has continued even after the company earlier this month announced plans to issue its first dividend and a three-year stock buy-back programme of as much as US$5 billion in a bid to reward investors. Some market watchers have expressed optimism ahead of the results. “Baidu is moving into a phase where the contours of its AI-led transition are becoming more visible, in our view, with early signs that user adoption for AI functions, AI product integration into existing mobile Internet services and operational efficiency are beginning to improve,” JPMorgan Chase & C analysts led by Alex Yao wrote in a note last month. Baidu’s 12-month forward consensus earnings estimate has also risen over 6% since reaching a more than three-year low late last month. Even so, the options market is signalling investor caution. Demand for downside protection has increased, with the cost of insuring against a 10% drop in Baidu’s US-traded stock climbing to its highest level since April relative to upside bets earlier this week, according to one-month implied volatility data. Options traders are pricing in a 5.7% swing in either direction for its American Depositary Receipts after the results. That’s more than the average 4.6% fluctuation seen following the last eight quarterly reports. “Baidu needs to convince investors of greater adoption of its ERNIE-based agents, particularly on the enterprise side,” given that agentic AI systems — which require less human supervision — are becoming “a larger and larger disruption risk”, said Felix Wang, the tech sector head of Hedgeye Risk Management.

The Ministry of Investment, Trade and Industry (MITI) has utilised RM335 million, or 89.6% of the RM374 million allocated for research and development, commercialisation and innovation (R&D&C&I) programmes as of June 30, 2025. Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the total expenditure ceiling approved for MITI under the 12th Malaysia Plan (12MP) up to that date stood at RM402 million. He noted that RM55.64 million in unreturned grants remains outstanding. This consists of RM33.97 million under the High Impact Project Fund (HIF) managed by MIDA, and RM21.67 million under the High Value Added and Complex Product Development (HVAD) programme, which is a continuation initiative by the Ministry of Economy as approved in the MyProjek system. Sim explained that the unreturned RM55.64 million was retained to meet ongoing project commitments. Of the amount, RM33.97 million under HIF is being used to fund approved projects that are still under implementation. Meanwhile, the remaining HVAD allocation is financing 28 new projects approved under the 12MP through Oct 31, 2025, involving about RM20.7 million, which are also currently in progress. He was responding to a question from Mohd Hasnizan Harun (PN-Hulu Selangor) regarding the status of the outstanding grants during the winding-up session of the Auditor-General’s Report on the 2024 financial statements of federal agencies in the Dewan Rakyat. Sim added that MITI acknowledges weaknesses in approvals processed through the MyProjek system and said governance improvements are needed in line with Treasury Circular PA3.2, as recommended by the National Audit Department. To address this, MITI will seek special approval from the Ministry of Economy and the Ministry of Finance to treat the HIF and HVAD programmes as extension projects. This will allow payments for existing commitments that extend beyond the Malaysia Plan period. Any remaining allocation will be returned once the programmes are fully completed, he said.

Shares of India’s IDFC First Bank fell sharply on Monday, dropping as much as 20% after the private lender revealed a suspected fraud of 5.9 billion rupees (around US$65 million or RM252.6 million). The disclosure raised concerns about potential impacts on the bank’s earnings and investor confidence. As of 11:46 a.m. IST, the stock was down 15.8% at 70.29 rupees, marking its lowest level since October 2025, and was on track for its worst trading session in six years. The bank led losses among Indian financial stocks, while the broader benchmark index rose 0.35%. The Mumbai-based lender, which has a loan book of 2.79 trillion rupees (US$30.8 billion) and deposits totaling 2.82 trillion rupees, had previously attracted investments from Warburg Pincus and the Abu Dhabi Investment Authority. IDFC First Bank reported that the suspected fraudulent transactions occurred at a Chandigarh branch, primarily involving government-linked accounts. The irregularities were discovered when entities from the northern state of Haryana attempted to close accounts, and the balances did not match the bank’s records. The issue surfaced about a month ago, and the Reserve Bank of India (RBI) is aware of the matter. RBI governor Sanjay Malhotra confirmed there is no systemic risk to the banking system. In response, the bank has suspended four employees and engaged KPMG to carry out an independent forensic audit. Analysts estimate the potential financial impact to be significant but manageable. UBS estimated the fraud at roughly 22% of the bank’s fiscal 2026 net profit after tax, while Morgan Stanley pegged the potential hit to profit before tax at about 20%. The bank also has employee dishonesty insurance, with potential recoveries of 350 million rupees. The suspected fraud could affect the bank’s handling of government cash balances, which are considered lucrative due to their volume. Following the disclosure, the Haryana state government removed IDFC First and AU Small Finance Bank from its approved list of banks for holding government accounts. AU Small Finance clarified that preliminary reviews show no financial impact or evidence of fraud on its side, though its shares still dropped 7.74%, their steepest decline in over a year. Macquarie analysts noted that government deposits in private banks are likely to face heightened scrutiny. IDFC First’s management indicated that deposits from Haryana account for just 0.5% of total deposits, suggesting the overall impact is manageable.

Bursa Malaysia Bhd will begin providing more detailed information on investor trading activity starting April 6, 2026, in a move aimed at improving transparency and market insight. Under the new initiative, the stock exchange will differentiate nominee accounts held by institutional and retail investors. This distinction is intended to give a clearer view of trading participation across different investor segments, allowing market participants and regulators to better understand who is driving market activity. In addition, the exchange will reclassify investment flows of foreign-owned companies incorporated in Malaysia based on the source of the investment funds, rather than merely ownership. This change is designed to more accurately reflect domestic investment activity and provide a realistic picture of how local and foreign capital is moving through the market. Bursa Malaysia said the initiative responds to the growing use of nominee structures, which can sometimes obscure the true identity of investors and make market analysis more challenging. By providing enhanced data, the exchange aims to ensure information remains relevant, transparent, and reflective of current trading behaviours and market dynamics. The move also comes amid heightened scrutiny of market transparency in the region. Last month, index provider MSCI warned Indonesia that the country could face a downgrade to frontier market status as early as May due to opacity in its markets, which may have facilitated potential price manipulation. Bursa Malaysia’s initiative signals the exchange’s commitment to maintaining investor confidence and aligning with international best practices by offering greater clarity on market participation. Overall, the new reporting measures are expected to benefit a broad range of stakeholders, from individual investors and fund managers to regulators and analysts, by providing a more accurate and comprehensive view of market activity in Malaysia.