Investment & Market Trends

Perak-based Kee Ming Group Bhd expects to take on bigger mechanical and electrical (M&E) projects after raising RM20.32 million in net proceeds from its ACE Market listing on Feb 12. Out of the RM25.32 million raised (including listing expenses), most of the funds will be used to support future projects — mainly for working capital, project performance bonds and expanding its project team. Kee Ming focuses mainly on industrial projects and counts major contractors such as Sunway Construction and Gamuda among its clients. The company provides M&E engineering services, including electrical installations, air-conditioning and ventilation systems, fire protection systems, as well as solar panel and EV charger installations. Solarvest Holdings owns a 23.85% stake in Kee Ming, which could help the group secure larger projects, especially in areas like data centres and renewable energy. At its IPO price of 38 sen, Kee Ming has a market value of about RM123.5 million. The listing involves 66.63 million new shares, while 16.25 million existing shares are being sold by managing director Liew Kar Hoe. After the IPO, Liew’s stake will be reduced to 50.65%. The group has an unbilled order book of RM176.1 million across 64 projects, providing earnings visibility over the next two years. Several research houses are positive on Kee Ming’s prospects, citing strong earnings growth potential driven by industrial expansion, data centre investments and renewable energy demand. However, risks include reliance on subcontractors and potential cost increases in raw materials such as copper and steel, which could affect margins. Overall, the IPO is expected to strengthen Kee Ming’s financial position and support its expansion into larger-scale projects.

Duopharma Biotech Bhd has secured two contracts worth a combined RM116.72 million from the Ministry of Health (MOH) to supply insulin products and injections to government healthcare facilities. The first contract, valued at RM65.08 million, was awarded to Duopharma Marketing Sdn Bhd and Biocon Sdn Bhd for the supply of recombinant human insulin formulations. Duopharma Marketing will act as the distributor, while Biocon will manufacture and supply the products. This contract runs until May 15, 2026, and requires a RM3.25 million performance bond. The second contract, worth RM52.54 million, was awarded to Duopharma (M) Sdn Bhd for the supply of insulin injections. It will run until Feb 5, 2028, with a RM1.31 million performance bond required. Duopharma said the contracts are expected to contribute positively to earnings for the financial year ending Dec 31, 2026. Malaysia has an estimated 4.75 million diabetics, with around 450,000 patients receiving insulin treatment at public healthcare facilities. Shares of Duopharma closed two sen higher at RM1.48, giving the company a market capitalisation of RM1.42 billion. The stock is up 18.9% year-to-date.

Hextar Industries Bhd has entered into a share sale agreement to acquire a 51% stake in Woodpeckers Group Sdn Bhd — the master franchise holder of llaollao in Malaysia — for RM177.5 million in cash. The acquisition involves 412,122 ordinary shares, valuing Woodpeckers Group at RM348 million. The deal also includes a three-year profit guarantee of RM29 million per year. Hextar Industries Bhd has signed a share purchase agreement to acquire a 51 per cent stake in Woodpeckers Group Sdn Bhd for RM177.5 million in cash. Following the acquisition, Hextar will hold master franchise rights in Malaysia for two global brands — Luckin and llaollao — creating potential synergies through stronger operational efficiency, wider market reach and improved cost optimisation while keeping both brands independent. The move is part of Hextar’s broader strategy to diversify into the food and beverage (F&B) retail sector, alongside plans to exit its fertiliser manufacturing business. Group managing director Benny Ang described the acquisition as a key step in Hextar’s strategic transformation, combining Woodpeckers’ F&B expertise with Hextar’s financial strength to drive long-term growth in Malaysia’s F&B market.

CIMB Group Holdings Bhd may earn a one-off gain of RM810 million by reducing its stake in PT Bank CIMB Niaga TBK to meet Indonesia’s proposed 15% minimum free float requirement, according to Hong Leong Investment Bank (HLIB). Selling about 7.4% of its CIMB Niaga shares would help the Malaysian bank comply with regulations while boosting its capital. The proceeds could be used to support loan growth or reward shareholders with special dividends, HLIB noted. The sale would add to CIMB’s existing RM2 billion capital return plan, potentially raising FY26-27 dividend payout ratio to around 70% and yield to 6.5%. CIMB currently owns 92.4% of CIMB Niaga, which contributes roughly a quarter of the group’s pre-tax profit. HLIB expects the divestment to have minimal impact on earnings, projecting a 1.2–2% drop in FY26-27 PBT. Despite the regulatory changes and rupiah volatility, HLIB maintains a “buy” rating on CIMB with a target price of RM9.50, highlighting its dividend yield of over 6% and ongoing capital management programme. CIMB shares closed at RM8.41, down five sen or 0.59%, giving the group a market cap of RM90.68 billion.

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade sideways with a slight bearish bias next week due to the Chinese New Year holidays, as both Malaysian and Chinese markets will be closed. David Ng, a proprietary trader at Iceberg X Sdn Bhd, said the market faces pressure from high stock levels and weak demand in recent weeks. Subdued buying from key importing countries, combined with ample inventories, is likely to limit any price gains despite support from competing edible oils. He expects CPO prices to trade between RM3,950 and RM4,180 per tonne next week. Jim Teh, senior palm oil trader at Interband Group, noted that trading will slow further because many mills, factories, and international traders are on extended leave during the festive period. Stock levels in Malaysia and Indonesia remain high due to weak physical demand, though some buying is expected from Pakistan, India, the Middle East, and the EU. He predicts prices will range between RM3,700 and RM3,800 per tonne next week. On a Friday-to-Friday basis, February 2026 CPO fell RM132 to RM3,950 per tonne, March 2026 dropped RM84 to RM4,037, and April 2026 declined RM104 to RM4,050. May 2026 eased RM117 to RM4,046, June 2026 lost RM118 to RM4,040, and July 2026 fell RM115 to RM4,035. Weekly trading volume rose to 392,823 lots from 274,729 lots last week, while open interest increased to 230,392 contracts from 219,059 contracts. Meanwhile, the new physical CPO price for February South decreased RM80 to RM4,050 per tonne.

A consortium led by Macquarie Asset Management will acquire Qube Holdings Ltd in a deal worth around A$11.7 billion (US$8.3 billion or RM32.36 billion), expanding the Australian firm’s infrastructure portfolio to include ports and rail operations. The group will pay A$5.20 per share, a 28% premium to Qube’s closing price on Nov 21 before Macquarie’s initial approach. The consortium also features Pontegadea, the investment arm of Zara founder Amancio Ortega. Qube runs a transport and trade network handling goods such as grain and cottonseed and employs about 10,000 people across Australia, New Zealand, and Southeast Asia. UniSuper, an Australian pension fund, will transfer its 15% stake in Qube into the consortium. The transaction is subject to regulatory approvals from the Foreign Investment Review Board and the Australian Competition & Consumer Commission. Macquarie Asset Management, part of Macquarie Group Ltd, manages around A$736 billion in public and private assets, including container terminals in New York and toll roads in South Korea. Qube shares rose 3.5% in Sydney trading, marking a 22% gain over the past year.

Bursa Malaysia has teamed up with TERAJU to strengthen the pipeline of Bumiputera companies preparing for initial public offerings (IPOs). The partnership, formalised through a Memorandum of Collaboration (MoC), aims to increase Bumiputera participation in Malaysia’s capital market while supporting more companies towards listing. Under the collaboration, Bursa Malaysia will guide selected high-potential companies in meeting IPO requirements, offering advisory support, networking opportunities with capital market intermediaries, and programmes to enhance governance and compliance standards. TERAJU will identify suitable Bumiputera companies, facilitate access to funding and incentives, and coordinate with government agencies, financial institutions, and industry players to provide comprehensive support throughout the IPO journey. Bursa Malaysia CEO Dato’ Fad’l Mohamed said the initiative supports the Pelan Transformasi Ekonomi Bumiputera (PuTERA35), which targets 30% Bumiputera equity ownership by 2035. He noted that many Bumiputera companies have untapped potential to grow into listed entities. TERAJU CEO Junady Nawawi said the collaboration focuses on mid-sized Bumiputera firms with strong growth prospects that may lack structured support in preparing for listing. In addition, Bursa Malaysia’s subsidiary BR Capital signed a separate Letter of Collaboration with TERAJU to provide debt and alternative financing solutions, helping companies scale up ahead of a potential IPO. Both organisations have also been conducting IPO roadshows nationwide to raise awareness and encourage more companies to consider listing.

McDonald’s Malaysia has unveiled a RM1 billion investment plan to expand its operations over the next five years, aimed at improving accessibility, creating jobs, and supporting local communities. McDonald’s Malaysia has announced a RM1 billion investment plan to expand its operations over the next five years.  Under the plan, the company will open 100 new outlets nationwide, generating more than 10,000 job opportunities. McDonald’s Malaysia, which currently employs over 16,000 Malaysians, will maintain its 100% local hiring policy. The company also sources 75% of its products locally, supporting domestic suppliers and contributing to the growth of Malaysia’s food industry. Managing Director and Local Operating Partner Datuk Azmir Jaafar said the expansion aligns with the company’s long-term vision of building a skilled and future-ready workforce. Despite a challenging business environment, McDonald’s Malaysia recorded 26% year-on-year growth in 2025, reflecting strong customer trust and loyalty. The announcement coincided with the reopening of the McDonald’s Titiwangsa Drive-Thru outlet after renovations. The company currently operates more than 370 outlets nationwide, having opened seven new restaurants in 2025 and 11 in 2024. Several of the new outlets will be located in Sabah and Sarawak to meet rising demand. McDonald’s will also continue expanding its Vocational Academy, developed with the Human Resources Ministry under the National Dual Training System, to provide training and career opportunities for youths, persons with disabilities, B40 communities, and Orang Asli groups. Azmir said the investment underscores the company’s commitment to sustainable growth, workforce development, and long-term contributions to Malaysian communities.

Malaysians filing their tax returns this year will benefit from several new and expanded tax reliefs, but they should also be aware of a new taxable income. For the first time, dividend income is subject to tax. Accounts and tax expert Datin Christine Koh explained, “A 2% tax is imposed on total dividend income exceeding RM100,000 a year, regardless of how many companies it comes from. Many taxpayers may overlook this because dividends were previously tax-free.” On the relief side, families and caregivers stand to gain the most. Parent medical expenses relief has been increased to RM8,000 and now includes grandparents. Sports-related lifestyle relief of up to RM1,000 has been expanded to cover expenses for parents, in addition to the self, spouse, or children. Relief limits for persons with disabilities have also risen: RM7,000 for disabled individuals, RM6,000 for a disabled spouse, and RM8,000 per disabled child. Education and medical insurance relief has increased to RM4,000, while environmental sustainability relief of up to RM2,500 now includes food waste composting machines, claimable once between assessment years 2025 and 2027. Despite these expansions, Koh warned that many taxpayers still miss out due to misunderstandings. “Common mistakes include assuming both parents can claim childcare relief or overlooking that sports equipment bought for parents is claimable. Dental treatment expenses up to RM1,000 and skill-enhancement courses are also often under-claimed,” she said. However, Koh noted that tax reliefs only reduce tax payable, not actual spending. “At a 20% tax rate, spending RM1,000 saves only RM200 in tax. The remaining RM800 is still an out-of-pocket expense. The RM9,000 personal relief equates to about RM25 a day—far from enough to cover basic necessities.” First-time homebuyers should also note the new housing loan interest relief. Tax expert Datuk Koong Lin Loong explained, “Loans signed between Jan 1, 2025, and Dec 31, 2027, are eligible. Properties priced RM500,000 or below can claim up to RM7,000 a year, while homes priced between RM500,000 and RM750,000 can claim up to RM5,000 annually for three consecutive years. For example, a loan signed at the end of 2027 can provide relief until 2029.”

MBSB Bank has set aside up to RM1 billion in financing to support small and medium enterprises (SMEs) in Malaysia’s rail sector, under a strategic partnership with the Malaysia Rail Industry Corporation (MARIC). The collaboration aims to strengthen the country’s rail industry ecosystem by providing structured financing solutions to rail-related SMEs, technology providers and solution developers. Both parties will also undertake joint industry engagement initiatives and capacity-building efforts. In a statement, the bank said initial initiatives will include industry dialogues, knowledge-sharing sessions focused on commercial development and environmental, social and governance (ESG) readiness, as well as aligning financing frameworks with innovation and sustainability benchmarks relevant to the rail sector. MBSB Group chief strategy officer Datuk Azlan Shahrim said the partnership will allow the bank to better understand the challenges faced by industry players. “By engaging directly with MARIC members, we can gain clearer insights into their operational challenges and develop financing solutions that are carefully structured to meet their specific requirements,” he said. MARIC president Datuk Dr Mohd Yusott Sulaiman described the collaboration as a significant step towards strengthening Malaysia’s rail industry landscape. “Many of our SMEs and technology players have strong technical capabilities but require appropriate financial backing to scale and commercialise their solutions. This partnership helps bridge the gap between innovation and market readiness while supporting the growth of a more competitive and sustainable rail sector,” he said. Looking ahead, both parties expect the collaboration to contribute to a more integrated and future-ready rail ecosystem, enhancing SME competitiveness, accelerating commercialisation efforts and reinforcing Malaysia’s position as an innovation-driven rail industry hub.