Investment & Market Trends

JP Morgan has highlighted Malaysia and China as two of the most resilient Asian economies amid the current global energy crisis. Rajiv Batra, JP Morgan’s head of Asia and co-head of global emerging markets equity strategy, noted that other Asian countries appear more vulnerable. “Malaysia benefits from net energy exports, a well-managed fiscal deficit, and moderate inflation, giving it buffers that support both equity markets and the currency,” he said. China, he added, is similarly well-positioned, with only 5% of its electricity dependent on imported energy. The majority comes from domestic production, supported by a strategic reserve of about 1.7 billion barrels and alternative energy sources such as renewables and coal. “These factors make Malaysia and China the safest bets in Asia compared with their peers,” Batra said. Regarding regional equity markets, Batra said Asia’s earnings growth forecast for 2026 has been revised from 31% to around 26% due to direct impacts on consumer staples, discretionary, utilities, and downstream sectors. He also warned of potential second- and third-order effects on sectors like tech, media, telecoms, and healthcare if the energy crisis persists. Oil prices remain elevated, with US crude settling at US$99.64 per barrel and Brent crude at US$112.57, marking the highest levels since July 2022 amid ongoing geopolitical concerns in the Middle East.

GuocoLand (Malaysia) Bhd said a proposal by its controlling shareholder to privatise the company will be presented to shareholders at an extraordinary general meeting (EGM), with the date to be announced later. In a filing with Bursa Malaysia, the board — excluding interested directors — said it had reviewed the proposal together with advice from the independent adviser, and resolved to table the matter for approval by disinterested shareholders at the upcoming EGM. The privatisation plan was first announced on Feb 3, when controlling shareholder GLL (Malaysia) Pte Ltd (GLLM) proposed to take the company private via a selective capital reduction and capital repayment at RM1.10 per share. Under the proposal, entitled shareholders holding 244.95 million shares, representing 34.97% of the company, would receive a total capital repayment of about RM269.45 million. GuocoLand Malaysia is the property arm of Hong Leong Group, controlled by Tan Sri Quek Leng Chan. Quek, who directly holds a 2.78% stake or 19.51 million shares, is expected to receive approximately RM21.46 million under the exercise. GLLM, a wholly-owned subsidiary of Singapore-listed GuocoLand Ltd, said the privatisation will be funded using GuocoLand Malaysia’s excess cash, with the balance financed through advances or equity injections from GLLM or its parent company. Upon completion, the 244.95 million shares will be cancelled, reducing the company’s total issued shares to 455.51 million. The remaining shares will be fully owned by GLLM, making GuocoLand Malaysia an indirect wholly-owned subsidiary of GuocoLand Ltd. GLLM currently holds a 65.03% stake in the company. The controlling shareholder does not intend to maintain GuocoLand Malaysia’s listing status and plans to apply for delisting from Bursa Malaysia once the exercise is completed. GuocoLand Malaysia shares closed unchanged at RM1.06, giving the company a market capitalisation of about RM742 million.

Analysts view Heineken NV’s decision to relocate large-scale production to established regional breweries in Malaysia and Vietnam as a positive move for Heineken Malaysia Bhd, opening a potential new revenue stream through exports to Singapore and the wider Asia-Pacific region. HLIB Research said the potential contribution from the new revenue would likely be meaningful for Heineken Malaysia, given that export sales currently account for less than 1% of its revenue. Heineken NV announced that its subsidiary, Asia-Pacific Breweries Singapore (APBS), will gradually scale down production at its Tuas brewery, home to the Tiger Beer brand, shifting output to facilities in Malaysia and Vietnam. Hong Leong Investment Bank (HLIB) Research said the additional export revenue could be significant, as Heineken Malaysia currently generates less than 1% of its sales from exports. “We expect Heineken Malaysia to mainly supply on a business-to-business basis, with branding, marketing, and consumer-facing operations handled by APBS in Singapore,” HLIB noted. “The shift should improve plant utilisation and operating leverage, which may expand margins.” HLIB also highlighted Malaysia’s geographic advantage, suggesting it will likely serve as the main supplier to Singapore over Vietnam. A brokerage analyst added that increased export exposure could diversify earnings and enhance the company’s valuation, reducing reliance on domestic regulatory policies. TA Research said the move is expected to provide incremental earnings support over the medium term. Since the Singapore production transition will occur gradually through 2027, the revenue contribution will build over time. Assuming Malaysia fulfills 60% of exports to Singapore, TA Research estimates a revenue boost of RM344.7 million in FY27 and RM360.4 million in FY28, translating into an expected net profit increase of 1.5% in FY27 and 6.2% in FY28. Both HLIB and TA Research have maintained their “buy” ratings, with target prices of RM28.07 and RM25.80 per share, respectively, pending further clarity on export allocation and its financial impact. This development positions Heineken Malaysia to benefit from improved export sales, higher operating efficiency, and a more diversified revenue mix.

Empire Premium Food Bhd, the operator of the Empire Sushi chain, aims to open 56 new outlets across Malaysia over the next three years, using over half of its RM152.5 million IPO proceeds. This will expand the company’s current network of 143 stores. At a press conference following the prospectus launch, executive director and CEO Nicole Lim said the new outlets will be strategically located in high-traffic areas such as shopping malls, airports, and transit hubs. “We are targeting prime locations nationwide where our teams can support operations, rather than focusing on any specific state,” she said. CFO Lim Chung Liang noted that the average cost per outlet accounts for renovation, inflation, and operational setup. Quick dine-in outlets are expected to cost RM900,000 to RM1 million each, while grab-and-go formats will cost RM550,000 to RM600,000 per unit, including inventory and capital expenditure. Empire Premium launched its prospectus ahead of its Main Market listing on Bursa Malaysia, scheduled for April 17, 2026. Of the 363 million shares offered, 293 million are allocated for institutional investors—including 137.5 million shares for bumiputra investors approved by Miti—and 70 million shares for the retail public, with 55 million shares reserved for Malaysians via balloting. A further 15 million shares are earmarked for directors, employees, and contributors to the group’s growth. Upon listing, Empire Premium will have an enlarged share capital of 1.1 billion shares, giving it a market capitalisation of RM770 million at the IPO price of 70 sen per share. The group has a dividend policy targeting at least 30% of profits after tax attributable to shareholders. The IPO is expected to raise RM152.6 million for the company, with an additional RM96.3 million earmarked for co-founders Jordan Tan and Nicole Lim, who received a combined RM64 million in dividends for FY2025-26. Applications for the IPO close at 5 pm on March 31, 2026.

Australia’s Macquarie Asset Management has emerged as the leading bidder to acquire Edotco Group Sdn Bhd, the telecommunications tower arm of Axiata Group Bhd, according to a report by the Wall Street Journal. The report, citing people familiar with the matter, said discussions are ongoing and no deal has been finalised. While recent developments in the Middle East have been taken into consideration, they are not expected to derail a potential transaction. If completed, the deal could value Edotco at between US$3.5 billion (RM13.94 billion) and US$4.0 billion, the report said. An Axiata spokesperson declined to comment on the matter but reiterated that the group has previously informed investors of its intention to explore value creation and potential monetisation options for Edotco. A spokesperson for Macquarie Group also declined to comment. The Edge had earlier reported in its Dec 1–7, 2025 issue that Macquarie was among three shortlisted bidders for Edotco. The other contenders include a consortium led by the Employees Provident Fund (EPF) and a group led by private equity firm CVC Capital Partners plc. Axiata currently holds a 63% stake in Edotco, which operates telecommunications towers across Bangladesh, Cambodia, Indonesia, Malaysia, Pakistan, the Philippines and Sri Lanka. Sovereign wealth fund Khazanah Nasional Bhd owns 32% of the company, while the remaining stake is held by Retirement Fund Inc (KWAP).

MTT Shipping and Logistics Bhd is looking to raise up to RM652 million through an initial public offering (IPO) on the Main Market of Bursa Malaysia, potentially marking the largest fundraising exercise in Malaysia’s transportation and logistics sector in more than a decade. MTT Shipping and Logistics Bhd executive chairman Datuk Seri Ong Kean Lee (centre) with other representatives at the group’s prospectus launch. The Malaysia-based container liner operator has opened applications for both retail and institutional investors at an IPO price of RM1.03 per share. The retail portion will close on April 3, followed by the institutional offering on April 6, ahead of its planned listing on April 21. If fully subscribed, the listing would be the biggest logistics-related IPO on Bursa Malaysia since 2013, when AirAsia X Bhd raised RM987.7 million and Westports Holdings Bhd raised RM2.03 billion. MTT Shipping is principally engaged in container liner shipping, vessel chartering, container storage and related logistics services. The group operates across key regional markets including Brunei, China, India, Indonesia, Thailand and Singapore. It also owns the largest fleet of Malaysian-flagged containerships, with an average age of 6.7 years as at Sept 1, 2025, making it the youngest fleet among local operators. Based on an enlarged issued share capital of 2.50 billion shares and the IPO price, the group is expected to command a market capitalisation of approximately RM2.6 billion upon listing. Executive chairman Datuk Seri Ong Kean Lee said the timing of the listing is aligned with evolving regional trade dynamics and continued demand for reliable shipping capacity across domestic and regional routes. The IPO will involve the issuance of 633.5 million new shares, comprising 571 million shares for institutional investors and 62.5 million shares for retail investors. There will be no offer for sale, and the listing will offer investors up to a 25.3% stake in the company. For the financial year ended Dec 31, 2024, MTT Shipping recorded a profit after tax of RM253.6 million on revenue of RM1.20 billion. About 95.7% of the IPO proceeds will be used to acquire at least 12 new container vessels as part of the group’s expansion strategy, with the balance allocated for listing-related expenses. The company has also outlined a dividend policy targeting a minimum payout of 50% of annual net profit, subject to working capital requirements and capital expenditure plans. CIMB Investment Bank Bhd has been appointed as principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter. CLSA Ltd and CLSA Securities Malaysia Sdn Bhd are acting as joint global coordinators and bookrunners, while Affin Hwang Investment Bank Bhd is serving as joint bookrunner and underwriter.

Putrajaya may need to tighten the RON95 petrol subsidy, either by reducing the current 300-litre monthly quota or raising the pump price back to RM2.05 per litre, analysts say. Both measures are being considered as realistic options if crude oil prices remain high, placing greater strain on government finances. CGS International Research (CGSI Research) noted that cutting the subsidised quota could allow the government to target support more efficiently toward lower-income households while limiting the immediate impact on the consumer price index (CPI). The research house highlighted that rising geopolitical tensions in the Middle East have pushed crude oil prices above US$100 per barrel, increasing the likelihood of renewed price pressures. Hong Leong Investment Bank Research similarly pointed out that the conflict has tilted Malaysia’s inflation risks upward. “For now, we maintain our 2026 CPI forecast at 1.7% year-on-year, but we are monitoring global energy prices and government policy responses closely. A potential RON95 price reversion to RM2.05 per litre may occur if the Middle East conflict persists,” it said. CGSI Research added that higher oil prices would first affect transport costs, with knock-on effects across other CPI segments. Their calculations suggest that every US$10 increase in average oil prices could push Malaysia’s annual CPI up by around seven basis points, assuming no policy changes. Rising fuel costs would also increase the fiscal burden of the current subsidy programme, potentially prompting a retail price adjustment or a reduction of the 300-litre allocation. Looking ahead, the research house warned of upside risks to its CPI forecast if Middle Eastern oil supply disruptions keep global prices elevated. For now, CGSI maintains its 2026 CPI projection at 1.5%, following a moderation to 1.4% y-o-y in February 2026, compared with 1.6% in January. Apex Securities Research noted that headline inflation averaged 1.5% in the first two months of 2026, below the 10-year average of 1.8%. However, rising geopolitical tensions could increase costs for logistics, utilities, and raw materials, gradually feeding into consumer prices. Fuel prices remain the main domestic risk, as RON95 accounts for 5.7% of the CPI basket. Under a scenario where Brent crude remains around US$101 per barrel and subsidised RON95 rises to RM2.40 per litre or higher, Apex said headline inflation could exceed 3%, potentially prompting a rate hike by Bank Negara Malaysia. However, the research house considers this a low-probability scenario, noting that the highest subsidised RON95 price to date was RM2.38 per litre in November 2017. “Monetary tightening may not be ideal in a cost-push environment, as it could weigh on household spending and business financing,” Apex added, suggesting that the government is unlikely to implement a sharp fuel price increase that would significantly raise living costs.

RHB Trustees Bhd has emerged as a substantial shareholder of Omesti Bhd after acquiring an 8.7% stake in the ICT company. In a Bursa Malaysia filing, the trustee disclosed that it purchased 201.92 million shares on March 18. The transaction price was not revealed. The filing noted that the shares are held on behalf of the Kenanga Islamic Absolute Return Fund, which is managed by Kenanga Investors Bhd. Although the seller was not identified, the block size closely matches shares disposed of by Kenanga Yield Enhancement Fund on March 13. Following the disposal, the fund now holds about eight million shares, representing a 0.34% stake in Omesti. Teguh Sedaya Sdn Bhd remains Omesti’s largest shareholder with a 22.57% stake. The investment vehicle is linked to Datin Seri Yasmin Hanim Arbee Mohammed Isa Arbee and Nur Atisya Mohd Yunus. Executive director Monteiro Gerard Clair is another substantial shareholder, holding a 5.384% direct stake and a 2.865% indirect interest in the company. Shares in Omesti rose 0.5 sen, or 6.7%, to close at eight sen on Tuesday, giving the company a market capitalisation of RM175.47 million.

Alam Maritim Resources Bhd’s head of global subsea business, Alvin Ch’ng Yi Ming, has become a substantial shareholder in the company after acquiring an 8.91% stake. According to a Bursa Malaysia filing, Ch’ng purchased 39.7 million shares on March 19. While the transaction value was not disclosed, the shares would be worth roughly RM10.72 million based on the closing price of 27 sen on the same day. Ch’ng’s stake follows Maybank Banking Bhd’s exit from Alam Maritim. Maybank sold its entire direct stake of 5.67 million shares (1.249%) and its indirect holding of 79.81 million shares (17.91%) through Maybank Islamic Bhd on March 19. Maybank had acquired a 19.16% stake in the company in September last year under a scheme of arrangement, paying 27.83 sen per share, or RM23.76 million in total, with warrants issued on a one-for-four basis. In a separate filing, Alam Maritim revealed that two other substantial shareholders also increased their stakes. Datuk Aloysius Albert Michael, CEO of the company’s global subsea business, raised his holding to 55.51 million shares, representing 12.436% of the company, up from 7.626%. Saujana Holdings Sdn Bhd increased its stake to 66.92 million shares, or 15.019%, from 10.65%, acquiring 19.46 million shares between March 17 and March 24. Alam Maritim’s scheme of arrangement was part of a broader plan to exit its PN17 status. The plan also included a share capital reduction, share consolidation, and a rights issue with warrants. The company entered PN17 status in 2022 after its auditor, Baker Tilly Monteiro Heng PLT, issued a disclaimer of opinion for the 18-month period ending June 30, 2022, citing a net loss of RM209.5 million, current liabilities exceeding current assets, and negative operating cash flows. Alam Maritim closed unchanged at 27 sen on Tuesday, giving it a market capitalisation of RM120 million.

Savvy Games Group has agreed to acquire Moonton, the mobile game studio owned by ByteDance Ltd, as the Saudi Arabian company expands its mobile gaming portfolio. The deal values Moonton at approximately US$6 billion, according to sources familiar with the matter. The transaction is expected to close soon, Moonton CEO Zhang Yunfan said in a memo reviewed. Management will remain in place, and employees will be offered incentive programs. Savvy CEO Brian Ward said the acquisition will strengthen the company’s mobile gaming division and esports presence. Savvy, a subsidiary of Saudi Arabia’s US$1 trillion Public Investment Fund (PIF), is a key part of the kingdom’s push to become a global gaming hub. Moonton is known for its multiplayer mobile games, particularly Mobile Legends: Bang Bang, which has been installed more than 1.5 billion times, with strong popularity across Southeast Asia. Saudi Arabia is also developing a gaming district in Qiddiya City near Riyadh, featuring amusement parks, golf courses, and esports arenas. Savvy previously acquired Scopely, maker of Monopoly GO, in 2023 and agreed to buy Niantic Inc’s Pokémon Go last year for US$3.5 billion. Mobile gaming now accounts for the majority of global gaming spending, outpacing console and PC games, with Asia expected to drive most of the growth, according to Newzoo’s Global Games Market Report 2025. ByteDance, which paid around US$4 billion for Moonton in 2021, is selling the studio to focus on generative AI. The company has recently scaled back its gaming operations, including winding down Nuverse, and cutting jobs as it competes with Chinese tech rivals in AI and digital platforms. A ByteDance spokesperson said, “We are proud of Moonton’s impressive growth into a leading mobile gaming player in Southeast Asia. This transaction marks a natural next step in its journey.”