Investment & Market Trends

  KUALA LUMPUR, The International Islamic Liquidity Management Corporation (IILM) has increased the size of its sukuk programme from US$6 billion to US$8.5 billion (US$1=RM4.22). In a statement today, IILM said the expansion underscores its position as a key provider of short-term Islamic High-Quality Liquid Assets (HQLA), designed to support the cross-border liquidity needs of Islamic financial institutions globally. Chief executive officer Mohamad Safri Shahul Hamid said the latest upsizing reflects IILM’s strong growth trajectory and ongoing commitment to strengthening the Islamic financial ecosystem. “This expansion, which follows last year’s increase from US$4 billion to US$6 billion, highlights IILM’s momentum in advancing global Islamic liquidity management. By deepening and diversifying our asset base, we are better equipped to meet the evolving liquidity needs of Islamic financial institutions worldwide,” he said. Since its first issuance in 2013, IILM has issued more than US$130 billion through over 300 short-term sukuk series, with tenors ranging from one month to 12 months. IILM’s instruments are currently rated “A-1” by S&P Global Ratings and “F1” by Fitch Ratings.  

China’s leading automotive manufacturing giant, SHB, has officially inaugurated its first overseas manufacturing facility at the Senai Airport City (SAC) Free Zone in Johor Bahru, Malaysia, marking a major milestone in the company’s international expansion journey. The new state-of-the-art facility represents an initial investment of RM600 million and underscores SHB’s long-term commitment to the Southeast Asian market. The establishment of this facility signifies a strategic leap in SHB’s globalisation roadmap, strengthening its presence in the region while aligning with Malaysia’s vision to attract high-value, technology-driven investments. Once fully operational, the facility is expected to deliver an annual production capacity of up to 3 million wiper motor systems and 20 million seat motors, generating approximately RM1.5 billion in annual sales. By 2030, SHB aims to double its total sales to RM6 billion, positioning the Malaysia facility as a key cornerstone of its global supply network. SHB Chief Executive Officer Carolyn Wang highlighted Malaysia’s pivotal role in the company’s expansion strategy. “Malaysia plays a strategic role in SHB’s global growth roadmap. This facility is not only our first overseas manufacturing site but also a vital component of our ambition to become a truly global supplier to the world’s leading automakers. By leveraging Malaysia’s strong industrial ecosystem, skilled workforce, and strategic location, we are confident in delivering world-class quality and driving sustainable growth in the region,” she said. Strategically located within the Senai Airport City Free Zone, the new facility benefits from a robust industrial ecosystem and excellent connectivity through air, sea, and land. The area’s professional management, efficient governance, and investor-friendly environment have enabled SHB to accelerate the construction and operational phases of the project. Equipped with advanced testing laboratories, automated assembly lines, and cutting-edge production systems, the facility will cater to the needs of major global Original Equipment Manufacturers (OEMs) and Tier-1 clients — including Tesla, General Motors (GM), BMW, Volkswagen (VW), Adient, Forvia, and others. The high degree of automation and precision engineering at the plant underscores SHB’s dedication to quality, innovation, and sustainability in manufacturing. In addition to enhancing SHB’s global production capabilities, the facility is also set to bring tangible benefits to Malaysia’s local economy. It is expected to create around 200 skilled engineering and technical jobs, while also sourcing from approximately 100 local suppliers. This move will strengthen Malaysia’s manufacturing supply chain, foster technology transfer, and boost Johor’s position as a regional manufacturing hub. With its ready infrastructure, seamless logistics network, and established industrial ecosystem, Senai Airport City continues to attract leading multinational corporations (MNCs) seeking a conducive environment for growth and innovation. The synergy between Malaysia’s industrial policies and SHB’s global manufacturing ambitions makes this investment a landmark development for both the company and the region. As SHB accelerates its international footprint, the Johor facility will serve as a launchpad for future expansion across Southeast Asia — paving the way for deeper collaborations, higher value manufacturing, and stronger integration into the global automotive supply chain.

KUALA LUMPUR,  Axiata Group Bhd has reportedly revived its plan to divest its majority stake in Edotco Group Sdn Bhd, in a deal that could value the regional telecom tower company at around US$2 billion (RM8.45 billion), according to sources familiar with the matter. Non-binding bids for the proposed sale are expected soon, with JPMorgan acting as the transaction advisor. The investment bank, however, has not issued any official response to inquiries. The sale has drawn interest from several private equity and infrastructure funds, with potential foreign bidders likely to team up with local partners to form bidding consortia. Axiata currently owns a 63% stake in Edotco, which manages and operates over 47,000 towers across eight countries — including Malaysia, Indonesia, Bangladesh, Cambodia, Sri Lanka, Pakistan, the Philippines, and Laos. Other shareholders of Edotco include Khazanah Nasional Bhd, holding 31.71% via its wholly owned subsidiaries Pulau Kendi Investments Ltd (21.14%) and Mount Bintang Ventures Sdn Bhd (10.57%), and the Retirement Fund Inc (KWAP), which owns 5.29%. Khazanah is also Axiata’s largest shareholder with a 36.7% stake. Market chatter surrounding a potential Edotco divestment has circulated since late last year, as Axiata and Khazanah reportedly weighed between pursuing an initial public offering (IPO) or a full sale. “They’ve been going back and forth between the two options. Edotco’s operations in certain markets posed additional risk for an IPO,” said one industry source. Among the key challenges was the group’s Myanmar operation, where roughly 28% of its sites were located within conflict zones following the 2021 state of emergency, creating access and operational constraints alongside foreign exchange issues. The renewed sale push comes after Axiata’s exit from Myanmar. In mid-June, the group sold its Myanmar tower business to Hong Kong-based Zillion Tower Holdings Ltd for US$90 million — lower than an earlier valuation of US$150 million — to ensure completion certainty. “The business is now cleaner and more attractive to potential investors,” said a source, adding that Axiata is now more determined to move forward with the sale. Following the Myanmar disposal, Kenanga Investment Bank Research noted in a June 16 report that removing exposure to the military-led regime could help rekindle investor confidence in Axiata’s remaining assets. Earlier, in April, Japan’s Innovation Network Corp divested its 21% stake in Edotco to Khazanah for an undisclosed sum, increasing the sovereign fund’s ownership in the tower company. Axiata’s strategy and outlookResponding to queries, Axiata confirmed that it continues to explore “value illumination and potential monetisation” of Edotco, saying that announcements would be made as significant developments occur. The group highlighted that its 2025 portfolio roadmap is structured around two clear pathways — long-term strategic assets and medium-term monetisable assets. Core strategic holdings include mobile operators CelcomDigi Bhd, XLSMART, Robi, Dialog, and Smart, which drive operational excellence and market leadership. Meanwhile, monetisable assets such as Edotco, Link Net, Boost, and ADA are being positioned to attract new investors and capital inflows. “Proceeds from these monetisations will be channelled towards reducing holding company debt and enhancing shareholder value,” Axiata said. The company added that these initiatives are aligned with its long-term growth strategy, focusing resources on high-value assets. “We’ve successfully incubated these businesses, including Edotco, to a credible scale with strong growth potential that may require external funding,” it said. Analysts believe that a complete sale of Axiata’s 63% stake in Edotco could significantly strengthen its balance sheet and potentially eliminate its financial leverage. While Edotco remains a meaningful contributor to Axiata’s earnings, it also represents a substantial portion of the group’s gearing. As of the second quarter of 2025, Axiata’s net debt-to-Ebitda ratio stood at 2.8 times, down from three times in the previous quarter. Maybank Investment Bank Research noted in an Aug 29 report that the monetisation of infrastructure assets such as Edotco and Link Net could materialise as early as 2026. In the financial year ended Dec 31, 2024 (FY2024), Edotco contributed nearly 10% of Axiata’s total operating revenue of RM22.33 billion. The tower unit also reported a profit after tax of RM410.76 million, reversing a loss of RM175.5 million in the prior year, on a 15.4% year-on-year increase in revenue to RM2.86 billion. As of Oct 10, Axiata’s shares had risen 3.61% year to date to close at RM2.58, valuing the company at approximately RM23.7 billion.

KUALA LUMPUR, TMK Chemical Bhd announced that its subsidiary has signed a distributor agreement with Tata Chemicals Soda Ash Partners LLC to distribute soda ash dense in Vietnam. Under the deal, Chlor-Al Chemical Pte Ltd (CAL) and its subsidiary TMK–Dai Hung Chemicals Co Ltd are appointed as non-exclusive distributors of the product, which is widely used in glass and detergent manufacturing. The agreement will take effect from Jan 1, 2026, to Dec 31, 2026, and will automatically renew each year unless terminated with six months’ notice. TMK said the collaboration is expected to boost the group’s future earnings and net assets, funded through internally generated resources. Tata Chemicals, based in the US, operates one of the world’s largest natural soda ash production facilities in Wyoming. TMK shares closed seven sen higher at RM1.43 on Wednesday, valuing the company at RM1.43 billion. Year to date, the counter has fallen 23.5%.

KUALA LUMPUR, Globetronics Technology Bhd has proposed a bonus issue of up to 368.49 million warrants on the basis of one warrant for every two existing shares held. In its filing with Bursa Malaysia, the outsourced semiconductor assembly and test (OSAT) firm said the entitlement date will be announced later, pending approvals from Bursa Securities, shareholders, and other relevant authorities. The warrants will be exercisable at any time within three years from the date of issuance. For illustration purposes, Globetronics has assumed an exercise price of 17 sen per warrant — about 47.56% lower than its five-day volume-weighted average price of 32.42 sen as of Sept 23. If fully exercised, the warrants could raise up to RM62.64 million, which the company plans to allocate for working capital and capital expenditure. TA Securities has been appointed as the principal adviser, and the exercise is expected to be completed by the first quarter of 2026. Globetronics recently changed its financial year end from Dec 31 to March 31, and later to June 30. For the quarter ended June 30, the group posted a net loss of RM537,000 on revenue of RM25.75 million. Investment in loss-making Mpire draws scrutiny On July 18, Globetronics announced a RM45.05 million investment to acquire a 30.85% stake in Mpire Global Bhd (KL:MPIRE), along with 53.99% of its outstanding warrants — making Globetronics the largest shareholder of the company, formerly known as Sand Nisko Capital Bhd. Mpire is involved in property development, construction, and fleet management services but has been loss-making for the past three years. Globetronics said the acquisition supports its long-term transformation plan and offers potential synergies with its core business. Following the investment, Mpire appointed Francis Leong Seng Wui and Ang Pei Gaik — both Globetronics board members — as directors on July 24. Leong, who also sits on the boards of Revenue Group Bhd and Hong Seng Consolidated Bhd, holds stakes of 5.38% and 5.02% in the two companies respectively. He is also a major shareholder of South Malaysia Industries Bhd (KL:SMI) via Target 1 Sdn Bhd, which currently faces legal challenges over its takeover bid for SMI. At Wednesday’s close, Globetronics’ shares rose 1.5 sen or 4.5% to 34.5 sen, valuing the company at RM233 million. Year to date, the counter has fallen 41%.

KUALA LUMPUR, Goldfinch Group Bhd, a gold jewellery and bullion retailer, is seeking a listing on Bursa Malaysia’s ACE Market to fund its expansion plans and strengthen its brand presence. According to its draft prospectus, the proposed initial public offering (IPO) involves 112.5 million new shares and an offer for sale of 15.75 million existing shares, representing 28.5% of the company’s enlarged share capital. Proceeds from the offer for sale will go to the company’s largest shareholder, Khoo Chin Huat, and his wife, Ng Soo Kim, who will trim their combined stake from 70% to 49% post-listing. Goldfinch plans to channel funds from the IPO towards opening 17 new outlets, expanding its current network of 66 stores nationwide — 63 in Peninsular Malaysia and three in Sabah. The company also aims to boost brand awareness and customer engagement through targeted marketing initiatives, including digital campaigns, promotions, and participation in trade fairs. Established in 2012 and headquartered in George Town, Penang, Goldfinch operates under the “Goldfinch Jewelry” brand, offering a variety of gold jewellery and investment-grade bullion products. For the financial year ended Dec 31, 2024 (FY2024), Goldfinch posted a net profit of RM5.58 million on revenue of RM111.08 million, with a profit margin of 5.03%. The northern region contributed the largest share of FY2024 revenue at 48.52%, followed by the central (29.05%), southern (14.27%), eastern (4.07%), and Sabah (3.71%) regions. M&A Securities Sdn Bhd serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO.

MGM Resorts International has withdrawn from the race to operate a casino in the New York metropolitan area, narrowing the field to three remaining bidders, including Genting Group, Bally’s Corp, and a consortium led by billionaire Steve Cohen. The Las Vegas-based company cited economic challenges and changes in the state’s licensing framework, particularly the shorter-than-expected licence duration, as reasons for its withdrawal. “The newly defined competitive landscape — with four proposals clustered in a small geographic area — challenges the returns we initially anticipated,” MGM said in a statement on Tuesday. MGM’s original proposal involved a US$2.3 billion (RM9.72 billion) expansion at its Yonkers Raceway site. The group will continue operating its slot machine parlour there. Under newly issued state guidelines, casino licences could run for 15 years instead of 30, with longer permits tied to higher investment commitments. The remaining licences will allow table games and sports betting. Cohen, owner of the New York Mets, has teamed up with Hard Rock International to develop an US$8.1 billion entertainment complex adjacent to Citi Field in Queens. Their bid includes a US$500 million licence fee and proposed tax rates of 25% on slots and 10% on table games — the state’s minimum. Genting Group’s Resorts World is proposing a US$5.5 billion integrated resort next to the Aqueduct racetrack, where it already operates slot machines. Its plan includes a US$600 million licence fee, and tax rates of 56% on slots and 30% on table games. Meanwhile, Bally’s Corp has submitted a US$4 billion proposal to build a casino resort at its Bronx golf course property, formerly owned by the Trump Organization. Should Bally’s win, Trump’s company would receive US$115 million under a prior agreement. Yonkers Mayor Mike Spano criticised MGM’s sudden withdrawal, calling it “a betrayal to the people of Yonkers and Westchester County” and urged Governor Kathy Hochul to launch an independent investigation into the decision. The New York casino licensing process stems from a 2013 referendum allowing up to seven non-tribal casinos in the state. Four upstate licences have already been granted, leaving three for the New York City area. Earlier this year, Las Vegas Sands Corp and Wynn Resorts Ltd also exited the race. The remaining proposals will be reviewed by the five-member Gaming Facility Location Board, which is expected to make final recommendations by Dec 1. According to the Tax Foundation, New York has one of the highest gambling tax rates in the US — matching New Hampshire and Rhode Island with a 51% levy on online sports wagering. The state generated US$2.3 billion in casino tax revenue last year, second only to Pennsylvania.

KUALA LUMPUR, Information technology firm Cloudpoint Technology Bhd successfully moved to the Main Market of Bursa Malaysia on Monday and is now exploring growth opportunities in artificial intelligence (AI), digital transformation, and cybersecurity. The company, which has been instrumental in the digitalisation of financial services, is seeing rising demand for AI-driven IT infrastructure, platforms, and software. Having listed on the ACE Market in 2023, Cloudpoint recorded a compound annual growth rate (CAGR) of 25% in profit after tax between the financial year ended Dec 31, 2020 (FY2020) and FY2024. To qualify for the Main Market, companies must meet specific profit targets and demonstrate clear ownership and control of their main business, among other criteria. Cloudpoint provides a range of services, including those related to data centres. Datuk Wira Choong Wai Hoong, Executive Director and CEO, said the move to the Main Market aligns with the group’s expansion plans and strengthens its long-term growth prospects. “The rise of AI has created new opportunities for us, with increasing demand for AI-driven IT infrastructure, platforms, and software. With Malaysia’s growing focus on AI, digital transformation, and cybersecurity, Cloudpoint is well-positioned to help enterprises build future-ready digital infrastructure,” he said. Cloudpoint is leveraging the Main Market listing to boost its visibility among investors and expand access to capital as it pursues strategic priorities in the digital and technology sectors. For FY2024, the company posted a net profit of RM20.6 million on revenue of RM145 million. On Monday, Cloudpoint’s share price fell two sen or 2.27% to 88 sen, valuing the company at RM457.18 million. Year to date, the stock has declined 9.47%.

KUALA LUMPUR, ICT services provider Omesti Bhd, via its 49%-owned indirect subsidiary Formis Network Services Sdn Bhd (FNS), has secured a RM30.31 million contract from the Ministry of Home Affairs. The 36-month contract, effective from Oct 15, 2025, to Oct 14, 2028, covers preventive and corrective maintenance of Local Area Network (LAN) equipment and ICT security systems at the Immigration Department’s headquarters and branch offices. Omesti said the award is subject to a formal contract between the Malaysian government and FNS. This marks Omesti’s third contract win this year. In February, it secured a three-year, RM70.5 million project for the third phase of the e-Courts system, and in August, it won a RM5.53 million lease-to-own project to supply 666 desktop computers for matriculation colleges under the Ministry of Education. Shares of Omesti closed 1 sen lower at 90 sen on Monday, giving the company a market capitalisation of RM97.32 million. The stock has fallen 35.7% year to date.

KUALA LUMPUR, Genting Bhd has proposed to privatise its subsidiary Genting Malaysia Bhd through a RM6.7 billion buyout offer valued at RM2.35 per share. According to a takeover notice filed with Bursa Malaysia on Monday, the offer represents a 9.8% premium over Genting Malaysia’s last traded price of RM2.14 before the stock was suspended last Friday. The deal will be fully in cash, with no share-swap component. The offer is conditional upon Genting securing more than 50% of Genting Malaysia’s voting shares. The group currently owns 49.36%. If successful, the move will see Genting Malaysia — listed for nearly four decades — withdrawn from Bursa Malaysia. It would also mark one of the largest privatisation exercises in recent years, following Malaysia Airports Holdings Bhd’s RM12 billion takeover earlier this year. The timing of the buyout coincides with Genting Malaysia’s bid for a casino licence in New York, part of its US$5.5 billion (RM23.2 billion) integrated resort project in Queens. A decision is expected by Dec 1, with licence awards due by year-end. Analysts, however, are sceptical of the offer. UOB Kay Hian’s Jack Goh described the RM2.35 price as “unattractive”, noting it is below average valuations and about 20% lower than the stock’s 2024 peak. He added that it does not reflect potential upside from the pending New York licence and the stock’s high liquidity. Genting Malaysia’s shares have fallen over 5% year to date and continue to trade below pre-pandemic levels. Most analysts remain cautious, with 11 ‘hold’, four ‘sell’, and three ‘buy’ calls, and an average target price of RM2.06, according to Bloomberg data. Both Genting and Genting Malaysia will resume trading on Tuesday. Genting Malaysia, listed since 1989, operates the group’s flagship Resorts World Genting, along with casinos in the US, UK, and Egypt.