Investment & Market Trends

The Public Accounts Committee (PAC) has urged the Federal Land Consolidation and Rehabilitation Authority (Felcra) to review its 30,000-hectare commercial land bank target under Transformation Plan 2.0. The committee said the five-year goal should be reassessed to better reflect Felcra’s financial capacity, noting that only 4,016.89 hectares — or 13% of the target — had been achieved as of the fourth year in 2025. PAC warned that the shortfall raises concerns about Felcra’s ability to sustain long-term operating costs and remain competitive. With about 26,000 hectares still to be acquired, the committee said the target may not be realistic under current financial conditions. Felcra was advised to establish a clear acquisition plan and secure sufficient funding sources to safeguard its financial sustainability. The PAC’s review followed concerns raised by the Auditor General over governance weaknesses in Felcra Bhd’s RM241.76 million purchase of four oil palm estates between 2022 and 2024. The acquisitions involved one estate in Telupid, Sabah, and three leasehold estates in Gua Musang, Kelantan — Aring, Dabong and Sungai Rawit 2 — covering a total of 4,016.89 hectares. PAC identified weaknesses in procurement procedures, valuation processes and yield assessments. It noted that Felcra’s strategy of acquiring lower-performing and cheaper plantations could significantly delay returns, as actual yields differed from projections. As a result, the return on investment (ROI) period was extended to between 11 and 22 years. The committee also found that the Telupid acquisition did not fully comply with a prior board decision, while the three Kelantan estates were purchased in what it described as a rushed manner. To prevent similar issues, PAC recommended that Felcra conduct independent valuations and due diligence through qualified external consultants for future acquisitions. It also proposed a minimum 15 to 30-day timeline between board approval and signing of acquisition agreements to ensure proper governance. Although Felcra operates under the Ministry of Rural and Regional Development, PAC noted that the ministry does not oversee daily operations, as the agency funds its operating expenses internally. Final approval for plantation investments — capped at RM125 million — rests with Felcra’s board. Felcra is wholly owned by the Minister of Finance (Incorporated) and is responsible for rehabilitating and developing underperforming state land schemes into productive agricultural assets that support rural communities. In total, PAC issued nine recommendations aimed at strengthening governance, improving acquisition discipline and ensuring future expansion aligns with Felcra’s financial capacity.

Foreign investors continued their selling trend for a second straight week across eight Asian markets, recording total net outflows of US$2.02 billion (RM7.89 billion), according to MBSB Investment Bank Bhd (MBSB IB). In its fund flow report for the week ended Feb 27, 2026, the bank said South Korea accounted for the bulk of the outflows, while Vietnam and Malaysia experienced comparatively smaller withdrawals. Vietnam returned to net foreign selling after reopening from the Lunar New Year holiday and posting inflows the week before, with US$181.6 million in outflows. This came despite positive geopolitical news, including the US removing Vietnam from its strategic export control lists, which improves access to advanced US technologies such as semiconductor equipment and aerospace components. On Bursa Malaysia, foreign investors remained net sellers for the second consecutive week, with RM156.4 million in outflows. They sold on three out of five trading days, with the largest outflow recorded last Friday at RM108.1 million, followed by Thursday (RM83.7 million) and Monday (RM11.6 million). Inflows were seen on Tuesday and Wednesday, amounting to RM26.8 million and RM20.1 million respectively. Sectors that attracted foreign buying included healthcare (RM74.7 million), transportation and logistics (RM53.7 million), and property (RM51.3 million). Meanwhile, financial services saw the highest outflows at RM175.4 million, followed by telecommunications and media (RM90.5 million) and industrial products and services (RM53.3 million). Local institutions also recorded net outflows of RM85.1 million, marking their fourth straight week of selling. In contrast, local retail investors extended their buying streak to two weeks, with RM241.5 million in net inflows. Trading activity increased across the board, with average daily trading volume rising 28.2% among retail investors, 56.4% among local institutions, and 94.8% among foreign investors. For the month of February, foreign funds logged their fourth consecutive month of net selling. Across the eight Asian markets tracked by MBSB IB, total net foreign outflows reached US$1.52 billion, largely driven by continued selling in South Korea.

YTL Hospitality REIT is planning a private placement of up to 90 million new units to raise an estimated RM99 million, with the proceeds earmarked for repayment of the trust’s outstanding borrowings, the REIT’s manager Pintar Projek Sdn Bhd announced. The proposed placement represents approximately 5% of YTL Hospitality REIT’s enlarged unit capital and is based on an illustrative issue price of RM1.10 per unit. The final placement price will be determined closer to the issuance date, depending on market conditions and regulatory approvals. YTL Hospitality REIT’s units closed at RM1.19 on Thursday, giving the trust a market capitalisation of RM2.03 billion. As at the end of December 2025, YTL Hospitality REIT had total borrowings of RM1.41 billion, up 4.37% from RM1.35 billion in June. The trust’s cash and cash equivalents, including deposits, stood at RM264.28 million, highlighting the need to optimise its capital structure and reduce leverage through the proposed placement. The REIT manages a diversified portfolio of 18 hospitality properties across Asia and Australia. This includes 13 properties in Malaysia, two in Japan, and three in Australia. In addition, the REIT is developing a new Moxy hotel in Hokkaido, Japan, which is scheduled for completion in the fourth quarter of 2026. The placement proceeds are expected to provide additional financial flexibility to support the REIT’s ongoing operations and upcoming projects. YTL Hospitality REIT has emphasized that the private placement is intended primarily to strengthen its balance sheet and reduce interest-bearing debt, while maintaining its ability to pursue growth opportunities across its portfolio. The REIT continues to focus on delivering value to its unitholders through prudent capital management, operational efficiency, and expansion into key international markets. The move reflects the REIT’s strategy to balance debt obligations with growth initiatives, ensuring long-term sustainability and resilience amid challenging economic conditions for the hospitality sector. The private placement remains subject to approvals from the Securities Commission Malaysia, Bursa Malaysia Securities, and the REIT’s unitholders.

Gagasan Nadi Cergas Bhd has proposed a bonus issue of warrants on the basis of one warrant for every two shares held, according to a filing with Bursa Malaysia on Thursday. The exercise will involve the issuance of up to 376.5 million warrants, each with a five-year tenure and an exercise price of 32 sen per warrant. The proposed exercise price represents a discount of approximately 25% compared with the company’s five-day volume-weighted average price of 42.76 sen as at the latest practicable date. If all warrants are fully exercised, the company could potentially raise up to RM120.48 million in proceeds. Gagasan Nadi Cergas said the funds would primarily be used to strengthen working capital, with a focus on payments to suppliers and subcontractors for materials and progress claims related to ongoing projects. In addition, part of the proceeds will be allocated to cover operating expenses for future projects, helping the group to maintain smooth operations while continuing to expand its project pipeline. The proposed bonus issue is subject to approval from both Bursa Malaysia Securities and the company’s shareholders at an extraordinary general meeting. The company will provide further details and documentation to facilitate the approval process once scheduled. Shares in Gagasan Nadi Cergas closed up half a sen, or 1.14%, at 44.5 sen on Thursday, giving the group a market capitalisation of RM335 million. The bonus warrants issuance is part of the company’s broader strategy to optimise its capital structure, improve liquidity and provide additional funding flexibility as it pursues its growth and expansion plans. By offering discounted warrants to existing shareholders, Gagasan Nadi Cergas aims to reward shareholder loyalty while simultaneously raising funds to support its operational and project-related needs.

Citaglobal Bhd is proposing to raise RM42.09 million via a private placement of 46.77 million new shares to Berjaya Securities Sdn Bhd at an issue price of 90 sen per share. Upon completion, Berjaya Securities — an indirect wholly owned subsidiary of Berjaya Corporation Bhd — will become a substantial shareholder in Citaglobal. It is expected to hold an 8.66% stake under the minimum scenario, or 6.59% assuming full exercise and conversion of the company’s warrants and irredeemable convertible preference shares (ICPS), according to a filing with Bursa Malaysia. TIZA Global Sdn Bhd will remain Citaglobal’s largest shareholder with a 26.86% stake after the placement. TIZA Global is the private investment vehicle of Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria. Based on the minimum scenario, TIZA Global is followed by the Pahang ruler, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, with an 11.92% stake, and Dedap Rimbun Sdn Bhd with 7.79%. Dedap Rimbun is controlled by Datuk Shabaruddin Ibrahim, group executive chairman of Mutiara Perlis Sdn Bhd, the master developer of the Perlis Maritime Corridor. The placement price of 90 sen represents a premium of 1.16% to the five-day volume-weighted average price (VWAP) and a 7.04% premium to the 12-month VWAP. Of the RM42.09 million in gross proceeds, RM13.5 million will be used to reimburse and settle the remaining cash payment for the acquisition of land in Gebeng, Pahang. Another RM18.5 million is allocated for business expansion and investments, including small hydro assets, a large-scale solar project and a bio-compressed natural gas upgrading facility. Citaglobal has earmarked RM8.6 million for working capital, while RM1.49 million will cover estimated expenses related to the placement. The exercise is expected to be completed by the second quarter of 2026, subject to approvals from shareholders and Bursa Malaysia Securities. TA Securities has been appointed as the principal adviser and placement agent. Citaglobal shares closed half a sen lower, or 0.55%, at 90 sen, giving the group a market capitalisation of RM444 million.

Several of Asia’s largest banks are preparing bids for HSBC Holdings plc’s retail business in Indonesia, according to sources familiar with the matter, as lenders seek to strengthen their presence in Southeast Asia’s biggest economy. Potential bidders include Singapore’s DBS Group Holdings Ltd, Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank Ltd (UOB), along with Malaysia’s CIMB Group Holdings Bhd and Japan’s Sumitomo Mitsui Financial Group Inc (SMFG). The sources requested anonymity as the discussions are private. HSBC is said to be working with financial advisers on a possible sale of its consumer banking operations in Indonesia. The assets could be valued at more than US$200 million (RM777.4 million). Binding offers are reportedly due by mid-March, although deliberations are still ongoing. The bank has previously stated that it is conducting targeted strategic reviews of its retail operations in Australia, Indonesia and Egypt, as well as HSBC Life Singapore, but no final decisions have been announced. Since becoming chief executive in 2024, Georges Elhedery has led a sweeping restructuring of HSBC, which included reducing management layers, cutting thousands of jobs and reorganising the group into four core divisions. The bank has also exited several non-core businesses as part of the overhaul. Spokespersons for DBS, UOB, OCBC, CIMB and SMFG declined to comment on the potential bids, while HSBC declined to provide additional details regarding its Indonesia review. Indonesia’s strong economic momentum — with growth reaching a three-year high last quarter — has made the market increasingly attractive to regional lenders. The potential sale follows a broader trend of global banks such as HSBC and Citigroup Inc divesting non-core assets. ANZ Group Holdings Ltd has also explored the possibility of selling its stake in PT Bank Pan Indonesia. HSBC has operated in Indonesia since 1884. It acquired PT Bank Ekonomi Raharja in the 2000s and rebranded it as PT Bank HSBC Indonesia in 2016. The Indonesian unit currently employs around 2,300 staff and operates 28 branches, serving corporate, institutional and retail clients. The bank had previously considered a potential initial public offering of its Indonesian business in 2022, according to people familiar with earlier discussions.

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.