Investment & Market Trends

Bina Puri Holdings Bhd plans to sell its entire 50% stake in KL-Kuala Lumpur Expressway Bhd (KLKSE) to Arena Irama for RM77 million in cash. After the deal, Arena Irama will own 100% of KLKSE, which operates the 33km LATAR Expressway. Bina Puri originally invested RM30 million in KLKSE. Deloitte Malaysia valued the expressway at RM152.6 million to RM221.8 million for full ownership as of Dec 31, 2025. Proceeds from the sale will be used to partially repay Bina Puri’s trade and revolving credit facilities with Alliance Bank Bhd, which had an outstanding balance of RM109.36 million as of Jan 30, 2026. The repayment is expected to lower the group’s gearing ratio from 1.81 times to 0.81 times. Bina Puri CEO Marcus Goh said the expressway would take time to generate meaningful cash flow, and the disposal offers an opportunity to realise the full investment value, with an estimated gain of RM74.9 million. The group is also negotiating a scheme of arrangement with lenders and creditors, aiming for completion in the first quarter of 2026 to improve its financial position. As of Dec 31, 2024, KLKSE reported accumulated losses of RM234.2 million, negative equity of RM174.2 million, and total liabilities of RM1.18 billion, of which 95.8% are loans and borrowings.

Harvest Miracle Capital Bhd is acquiring a 40% stake in Kaw Kaw Malaya Sdn Bhd (KKM) and providing shareholder advances in a deal valued at RM4.4 million, marking the group’s entry into the food and beverage sector. The investment was formalised through a share subscription agreement with G&T Brand Sdn Bhd, the company behind Bungkus Kaw Kaw and Ah Cheng Laksa. KKM, which has yet to commence operations, plans to open two “Malaysian heritage-inspired” restaurant outlets at the newly refurbished Bangunan Sultan Abdul Samad and along Jalan Kemuning, off Jalan Imbi, in Kuala Lumpur. The RM4.4 million consideration includes RM40,000 for the 40% equity stake and an interest-free, unsecured shareholder advance of RM4.36 million. Harvest Miracle said the deal provides exposure to a scalable food and beverage concept led by G&T Brand’s experienced management team, which has a strong operational track record nationwide. Under the agreement, 70% of KKM’s quarterly profit after tax plus depreciation and amortisation will be distributed to Harvest Miracle until the RM4.4 million investment is recovered. This payout rises to 90% if recovery takes more than 24 months. G&T Brand will charge a 6% management fee on gross revenue, which may be discounted by up to 60% if the investment is not recovered within 36 months. The deal also includes a put option allowing Harvest Miracle to exit with a “protected minimum return.” Under the exit and liquidity rights clause, Harvest Miracle may exit via an initial public offering or strategic investment at 12 times KKM’s latest annual EBITDA, or require G&T Brand to buy back its stake at 10 to 15 times EBITDA within 36 months. KKM projects annual distributable payouts between RM1.8 million and RM4.5 million, implying an investment recovery period of roughly one to 2.4 years. Harvest Miracle shares closed unchanged at 14 sen on Thursday, giving the group a market value of RM287.9 million.

Bina Puri Holdings Bhd has agreed to dispose of its 50% stake in the concessionaire of the KL–Kuala Selangor Expressway (Latar) to Datuk Mohamed Raffe Chekku for RM77 million. The construction group signed the agreement with Arena Irama Sdn Bhd, a company owned by Mohamed Raffe, which already holds the remaining 50% stake in Kuala Lumpur–Kuala Selangor Expressway Bhd (KLKSE). KLKSE operates the Latar concession, which runs until 2048. In a filing with Bursa Malaysia on Thursday, Bina Puri said it decided to exit the concession as KLKSE has not declared any dividends since the project was awarded in 1997. Executive director and group CEO Marcus Goh Kee Lun said the disposal provides a timely opportunity for the group to unlock the full value of its investment in KLKSE, generating an estimated gain of about RM74.9 million. Proceeds from the sale will be used to repay bank borrowings, strengthening the group’s financial position. Following the disposal, Bina Puri’s gearing ratio is expected to improve significantly to 0.81 times from 1.8 times. Goh added that the group is targeting completion of its proposed scheme of arrangement by the first quarter of 2026. As at end-December 2024, KLKSE recorded accumulated losses of RM234.2 million, with total assets of RM1 billion and liabilities of RM1.18 billion. Bina Puri said the RM77 million consideration falls within the lower end of the valuation range of RM76.3 million to RM110.9 million, as assessed by Deloitte Malaysia. The valuation was based on a discounted cash flow method, applying a weighted average cost of capital of approximately 8% to 9% for the period from Jan 1, 2026 to Oct 27, 2048. The proposed disposal, which requires shareholders’ approval as well as consent from KLKSE’s financiers and the government, is expected to be completed by the second quarter of 2026. Bina Puri’s shares closed unchanged at 30 sen, giving the company a market capitalisation of RM267.89 million.

Microsoft announced on Wednesday that it is on track to invest a total of US$50 billion (approximately RM195 billion) by the end of the decade to support the development and expansion of artificial intelligence (AI) in countries across the Global South. The announcement was made during the AI Summit in New Delhi, an event that brings together top executives from leading AI companies alongside world leaders to discuss the future of AI and its global impact. The term “Global South” generally refers to developing, emerging, or lower-income nations, mostly located in the southern hemisphere. Microsoft’s planned investment is aimed at accelerating AI adoption and infrastructure in these regions, providing access to advanced technologies and supporting local digital ecosystems. Last year, the tech giant unveiled US$17.5 billion in AI investments specifically for India, underscoring its commitment to one of the world’s fastest-growing digital markets. With this broader US$50 billion plan, Microsoft seeks to extend similar initiatives to other countries in Asia, Africa, and Latin America, strengthening AI capabilities and fostering innovation in markets that have historically been underrepresented in the tech space.

Nestlé SA is exploring ways to reduce its presence in the ice cream sector as new CEO Philipp Navratil reviews the company’s broad operations, according to sources. The Swiss food giant is evaluating options including trimming its stake in Froneri, an ice cream joint venture with private equity firm PAI Partners that owns brands like Häagen-Dazs and Mövenpick. Nestlé may also sell some of its fully-owned ice cream units to Froneri. Discussions are ongoing, and no deal is guaranteed. PAI could increase its stake if Nestlé sells, or the Swiss group could sell part of Froneri to another investor such as the Abu Dhabi Investment Authority (ADIA). Nestlé and ADIA declined to comment, while PAI did not respond. Once one of the world’s largest ice cream producers, Nestlé now sells ice cream mainly outside Froneri’s scope. Last year, PAI raised billions to maintain control of Froneri, with ADIA joining as a minority investor in a deal valuing the firm at about €15 billion (US$17.7 billion or RM69.18 billion) including debt. Nestlé shares have fallen roughly 40% from their 2022 peak, nearing an eight-year low, while competitors Danone SA and Unilever Plc have risen more than 20% over the same period. Board Shake-Up Amid an infant formula contamination crisis affecting the industry, Nestlé also announced changes to its board ahead of full-year results. Thomas Jordan, former president of the Swiss National Bank, and Fatima Francisco, a senior executive at Procter & Gamble, have been nominated to the board and will stand for election at the company’s annual general meeting in April. Chair Pablo Isla said the revamp aims to boost board engagement, enhance oversight, and improve decision-making. Isla became board chair last year following a governance crisis that led to the departure of former CEO Laurent Freixe and long-time chairman Paul Bulcke. Jordan brings financial expertise and Swiss institutional knowledge, having overseen major events like the removal of the Swiss franc cap in 2015 and Credit Suisse’s collapse in 2023. Francisco adds consumer goods experience while improving gender diversity on the board.

Vietnam Airlines and Vietjet Air have signed aerospace agreements with US companies worth a combined US$14.4 billion, including US$8.1 billion in aircraft orders from Boeing. Vietnam Airlines ordered about 50 Boeing 737-8 aircraft and is in talks to potentially purchase around 30 additional wide-body jets in the future. The carrier said the deal supports its goal of becoming a leading airline by 2030. Vietjet Air announced two separate agreements totalling US$6.3 billion. Around US$5.4 billion will be spent on engine supplies and maintenance for 44 Airbus A320 aircraft through US manufacturer Pratt & Whitney. The remaining US$960 million will go toward leasing six Boeing 737 aircraft from Griffin Global Asset Management. The agreements were signed during Vietnamese leader To Lam’s visit to Washington, amid ongoing trade negotiations between the two countries. The US currently imposes 20% tariffs on Vietnamese goods. Despite trade tensions, Vietnam’s economy has continued to grow strongly, recording 8% growth as it maintains its position as a key manufacturing hub in Southeast Asia.

Sunway Bhd’s proposed RM11 billion acquisition of IJM Corporation is one of the largest corporate deals in Malaysia in recent years. However, with government-linked investment companies (GLICs) holding 43.88% of IJM, the deal carries major implications for millions of Malaysians whose savings are managed by these institutions. Key shareholders include the Employees Provident Fund (EPF), KWAP, PNB-ASN and Yayasan Pelaburan Bumiputra. Their decision on the takeover will directly affect contributors and pensioners. Concerns Over Returns One major issue is whether the deal truly benefits GLIC beneficiaries. If the takeover proceeds, EPF’s stake would fall from 20.41% in IJM to about 7.3% in the enlarged Sunway group. Although Sunway’s market value would rise from RM38 billion to around RM50 billion, the expected earnings boost is modest — about 1%. Dividend income is another concern. Over the past six years, EPF received an average of RM50 million annually from IJM. In comparison, its current stake in Sunway generates around RM38 million — and this amount would likely decrease further after dilution. Given that these returns support retirement savings, the question arises: does the transaction genuinely enhance long-term value, or weaken it? Strategic Asset Implications Beyond financial returns, IJM owns strategic infrastructure assets such as highways and ports — assets that generate stable cash flow and are difficult to replace. Although GLICs would remain shareholders in the combined entity, their influence would be reduced. This raises concerns about whether Malaysia’s sovereign funds should dilute their control over proven national infrastructure assets. In today’s market, acquiring similar large-scale infrastructure assets is increasingly challenging. Once diluted, regaining such positions may not be easy. Need for Transparency This is not an argument against corporate consolidation. Strong and competitive Malaysian companies are important for economic growth. However, when a transaction involves retirement savings and public funds, it must undergo thorough scrutiny. The impact of dilution, dividend reductions and loss of strategic influence deserves careful review. Fiduciary Responsibility GLICs manage public trust. EPF alone safeguards the retirement savings of more than 15 million Malaysians. KWAP protects civil servants’ pensions, while PNB represents bumiputera investors. Their primary responsibility is to maximise sustainable long-term returns for beneficiaries. Given the scale of this transaction, transparency and open discussion are crucial. The central question remains: does this deal serve the best interests of contributors and pensioners, or would maintaining current stakes in IJM better protect their long-term value? GLICs must ensure their decisions prioritise fiduciary duty above all else, and clearly communicate how those decisions protect the rakyat’s financial future.

Vantris Energy Bhd, formerly known as Sapura Energy, is shifting its strategy from chasing large-scale contracts to focusing on profitability and cash flow as it works towards exiting PN17 status by the financial year ending Jan 31, 2027. Vantris Energy group chief executive officer Muhammad Zamri Jusoh. Once Malaysia’s largest integrated oil and gas services group, the company had pursued complex EPCIC projects that boosted revenue but weakened margins. Combined with heavy borrowings, legacy losses, and an industry downturn, this led to financial distress and its PN17 classification. Under group CEO Muhammad Zamri Jusoh, who took office in January 2025, the company has adopted a more disciplined approach. “We are now very selective. The most important things are margins and cash flows,” Zamri said. Major Financial Restructuring A comprehensive restructuring completed in September 2025 reduced borrowings from RM10.8 billion to RM5.6 billion, including RM784.3 million in debt forgiveness. Annual debt servicing costs fell sharply from over RM800 million to about RM250 million. Banks converted part of their debt into equity instruments, resulting in creditors holding about 40% of the company post-restructuring. The turnaround was further supported by RM1.1 billion in fresh funding via redeemable convertible loan stocks from Malaysia Development Holding Sdn Bhd, owned by the Ministry of Finance Inc. If fully converted, the funding vehicle could become the largest shareholder with a 35.92% stake. Meanwhile, existing shareholders such as ASNB and the Shamsuddin brothers saw their stakes diluted. Rebuilding Operations and Order Book Following the restructuring, Vantris paid RM1.1 billion to over 1,400 local vendors, fulfilling earlier commitments and helping rebuild trust within its ecosystem. As at Oct 31, 2025, the group’s order book stood at RM6.3 billion, mainly from drilling (47%), engineering and construction (29%), and operations and maintenance (24%). Recent contract wins worth RM1.4 billion from PETRONAS have lifted the order book above RM7 billion, providing earnings visibility for the next three years. The group is also shifting focus closer to home, reducing exposure to the western hemisphere to 12%, while 88% of its RM28.9 billion tender book is now in the Asia-Pacific region. Improving Margins and Risk Management Most projects over the past 15 months have delivered positive margins, except for the Angola project, which is nearing completion. New contracts are increasingly structured on day-rate or reimbursable terms, lowering risk compared to past lump-sum EPCIC projects. The company has also introduced mechanisms to manage cost fluctuations, such as sharing fuel cost changes with clients. Vantris operates nine active drilling rigs and 12 offshore construction vessels, with strong operational performance and over 99% technical utilisation year-to-date. Challenges Ahead Despite improvements, Vantris remains under PN17 and currently has no access to working capital or bank guarantee facilities, requiring it to self-fund operations. To exit PN17, the group must record two consecutive profitable quarters. Management is targeting a PN17 exit by FY2027. “We are watching our business like a hawk. No room for error,” Zamri said. The group continues to divest non-core assets to strengthen liquidity, including the recent US$30.5 million sale of its stake in an Indian joint venture. Looking ahead, Zamri remains cautiously optimistic about the oil and gas sector, citing sustained investment by major oil companies despite market volatility.

Malaysia’s economy grew 5.2% in 2025, exceeding forecasts of 4–4.8%, driven by strong domestic demand and robust exports, Bank Negara Malaysia (BNM) said. BNM governor Datuk Seri Abdul Rasheed Ghaffour said the economy also expanded 6.3% in the fourth quarter of 2025, supported mainly by higher household spending, positive labour market conditions, and income-related policy measures. Investment growth was bolstered by machinery and equipment purchases—especially for data centres—and ongoing multi-year projects by both public and private sectors. Exports strengthened, led by electrical and electronics (E&E) goods, while services exports benefited from inbound tourism and ICT-related services. Imports remained strong due to intermediate and capital goods supporting economic activity. By sector, growth was led by services and manufacturing. Services expanded on the back of consumer-related subsectors, government services, and ICT, including operational data centres. Manufacturing growth was supported by higher E&E output and consumer goods production. Agriculture also improved, with palm oil production rebounding amid less severe flooding than last year. On a seasonally adjusted basis, quarter-on-quarter growth was 0.8%. Looking ahead, Abdul Rasheed said 2026 growth will be supported by resilient domestic demand and exports. Household spending will continue to benefit from employment and wage growth, while investment activity will progress through multi-year projects and approved initiatives under national master plans, including the 13th Malaysia Plan. Export growth will be underpinned by steady global demand, especially for E&E goods, alongside a boost from tourism following the Visit Malaysia Year 2026 campaign.

China’s Export-Import Bank has more than two trillion yuan (about US$289 billion) in outstanding loans tied to the Belt and Road Initiative (BRI) as of end-January, according to state broadcaster CCTV. The loans, extended to over 130 countries, mainly support trade, infrastructure, advanced manufacturing, green development and social projects. Launched by President Xi Jinping in 2013, the BRI initially aimed to link East Asia and Europe through infrastructure, and later expanded to Africa, Oceania and Latin America. While supporters say the initiative promotes development and economic growth, critics argue it increases China’s political influence and leaves some developing nations with heavy debt burdens. A recent report noted that several African countries are now repaying more debt to China than the new financing they receive. Apart from the Export-Import Bank, BRI funding also comes from the China Development Bank, Silk Road Fund and major state-owned banks.