Investment & Market Trends

Online fast-fashion retailer Shein’s valuation has fallen by around 70% from a near $100 billion private market peak four years ago, as it seeks to raise up to HK$13.86 billion ($1.77 billion) in its Hong Kong IPO, which launched on Monday. According to filings, Shein is selling 280 million shares priced between HK$47.60 and HK$49.50 apiece, valuing the company at close to $27 billion at the top of that range. The valuation marks a sharp decline from earlier private fundraising rounds, which valued Shein at $98.2 billion in 2022 and $64 billion in both 2023 and April 2024. The company is expected to announce its final IPO price on Aug 31, with trading set to begin on Sept 1. Known for selling $5 dresses and $10 jeans to shoppers across roughly 160 countries, Shein had initially sought an IPO valuation of between $30 billion and $40 billion when investor meetings ahead of the listing first began. The marked decline in valuation follows growing investor concerns over slowing growth, rising costs and shifting market conditions, with some investors expressing doubt that Shein could return to the growth rates that once valued it at nearly $100 billion four years ago. Cornerstone investors led by existing shareholders Boyu, Tiger Global and General Atlantic have subscribed for around $383 million worth of Shein shares, according to the prospectus. Tencent, Greenwoods, Taikang Life and UBS Asset Management are also participating as stock investors. Shein said approximately 80% of the funds raised through the IPO will be used to enhance its technology capabilities and strengthen its brand presence globally. The company has also agreed to pay up to roughly $3.5 billion in cash to certain investors who purchased special shares in earlier private funding rounds, the prospectus showed. Shares sold in the Hong Kong IPO will carry one-tenth the voting rights of shares held by the company’s founders. Co-founders Sky Yangtian Xu, Maggie Gu, Molly Miao and Tony Ren will collectively control 90% of Shein’s voting rights following the listing. Growth Slows Sharply The long-awaited listing comes at a time when slowing revenue growth and weaker core earnings are weighing on Shein’s business, with shrinking margins also raising concerns that its expansion is facing headwinds from rising trade costs, tighter regulatory scrutiny and intensifying competition across global e-commerce. Shein said in its prospectus that first-half 2026 revenue growth is expected to be broadly in line with the 1.1% growth recorded in the first quarter, while its operating margin is expected to come in slightly lower than the first-quarter level. The company attributed this to new European import charges, pricing pressure and weaker demand in the Middle East linked to the Iran war. Shein swung to a $99 million quarterly loss after the United States removed an import duty exemption on small packages, compounded by a $328 million fair-value charge on convertible redeemable preferred shares following an accounting change. Shein’s IPO stands as the largest new share sale in Hong Kong in 2026, surpassing autonomous driving firm Momenta Global’s $751 million offering in July. It ranks as the third-largest IPO in Asia this year, trailing CXMT and China Resources New Energy, which raised $9.8 billion and $3.6 billion respectively through Chinese onshore listings. Hong Kong IPOs have raised approximately $41 billion so far this year, a record for the period and more than double the $17 billion raised over the same period a year earlier, according to LSEG data.

Dagang Nexchange Bhd (Dnex) has proposed to dispose of its floating production storage and offloading (FPSO) vessel, Excalibur, to MISC Bhd for US$35 million (RM142.2 million) in cash. In a filing with Bursa Malaysia, Dnex said its 90%-owned Ping Petroleum Ltd’s wholly-owned subsidiary, Ping Petroleum UK PLC, had entered into a memorandum of agreement with MISC for the proposed disposal. The proposed disposal is expected to generate a pro forma gain of US$5.86mil, or RM23.81mil. The proposed disposal is expected to generate a pro forma gain of US$5.86 million, or RM23.81 million, after taking into account capital gains tax and the recovery of capital allowances previously claimed on the vessel. Dnex said Excalibur currently carries a net book value of US$13.25 million, or RM53.83 million, on the company’s books. An independent valuation conducted by ABS Consulting placed the vessel’s fair value at between US$22.5 million and US$43.5 million, suggesting that the proposed disposal price falls within a reasonable range relative to its assessed worth. The FPSO, built in 2007 and designed with a capacity of 300,000 barrels, is currently laid up at the Port of Nigg in Scotland, having ceased active operations for some time. The proposed sale marks a strategic move for Dnex as it continues to streamline its portfolio of assets within its oil and gas operations, with the transaction expected to provide the group with additional cash proceeds while realising a gain from the disposal of a non-operational vessel.

NexG Bhd today clarified that the request for an indicative price for the possible acquisition of its wholly owned subsidiary, Datasonic Technologies Sdn Bhd (DTSB), by the government was made by the Ministry of Finance (MOF) last month. “The request was conveyed to DTSB verbally at a meeting with MOF held on July 24, 2026, and was not made by way of a written document,” the security-related integrated technology solutions provider said in a reply to a query from Bursa Malaysia today. DTSB is the provider of the MyKad national identity card. Yesterday, NexG said DTSB had been valued at RM7.5 billion, citing its ownership of valuable intellectual property, along with identity technology spanning International Civil Aviation Organisation (ICAO)-compliant e-passports and biometric systems that use multimodal biometrics and facial recognition. NexG said MOF had requested DTSB, at the meeting, to provide an assessment of three potential scenarios: the compensation that might be payable in the event of a termination of the MyKad supply contract between the Ministry of Home Affairs and DTSB; the indicative price for a possible acquisition of DTSB; and the indicative price for a possible acquisition of a controlling block of shares in NexG, the holding company of DTSB. “Following an internal assessment conducted by the management of the company using the discounted cash flow method, which took into consideration various factors — this includes, amongst others, DTSB’s future earnings-generating capabilities, projected future cash flows, business sustainability and other relevant factors affecting the business and operations of DTSB — the management has assessed the indicative value of DTSB at approximately RM7.5 billion,” the group said. NexG said the board also recognises that DTSB currently represents the core business of the group and is the major contributor to its revenue and earnings. Accordingly, it said any disposal of DTSB, should it materialise, might have a material impact on the group’s business operations and financial performance, and could also affect the group’s level of operations as well as its continued listing status on the Main Market of Bursa Malaysia Securities Bhd.

Crewstone International Sdn Bhd (“Crewstone”), a licensed and regulated private equity and private credit manager, has entered into a strategic co-investment with Mirai Bridge Capital Sdn Bhd (“MBC”), also a licensed Private Equity Management Corporation, through Thirty Three Digitec Solutions Sdn Bhd (“Digitec”), a non-bank financing platform that sits within a wider financing ecosystem with more than RM 500 million in financing transactions over the past 3-5 years. Pictured at the signing ceremony are Keng Fai Wong, Chief Executive Officer of Crewstone International; Tommy Ng, Co-Founder of Mirai Bridge Capital and Ng Kae Shen, Director of Thirty Three Digitec Solutions, marking the formalisation of a strategic co-investment partnership between the three parties. Led by Crewstone through an initial RM5.0 million commitment, the partnership builds on Crewstone’s wider financial services private credit strategy, including more than RM30 million deployed into financial services companies across prior private credit transactions. Together with MBC’s licensed investment-management platform, Digitec’s operating infrastructure, and a network of more than 30 KPKT-licensed money-lending partners, the partnership is designed to scale a more structured non-bank financing ecosystem supported by capital access, governance discipline, origination data and repayment monitoring. The structure also strengthens credit alignment through personal guarantees from Digitec’s key operating team members, supported by MBC’s corporate guarantee role as a licensed PEMC. Digitec principals bring over 30 years of combined industry experience across consumer credit and micro-lending, with hands-on expertise in credit operations, underwriting and borrower management, while MBC adds regulated investment-management credibility to the guarantee framework. Digitec currently supports approximately 83,000 borrowers, processes approximately 8,000 applications per month, and reaches gig economy workers, micro-entrepreneurs and thin-file borrowers, with scope to expand that footprint by approximately 40% over the next 12-18 months following this partnership. The business has recorded year-on-year growth in digital acquisition of 40%, supported by a streamlined onboarding journey comprising 6 steps and a current turnaround time of approximately 30 minutes from application to credit decision. Approximately 55% of approved applications are successfully disbursed within 3 hours, underscoring the platform’s ability to reduce friction at the front end while improving customer responsiveness, particularly for borrowers seeking timely access to financing for urgent personal and small business needs. This digitalisation extends beyond onboarding into underwriting and collections, where automation is increasingly shaping both operating efficiency and portfolio management. Digitec’s credit decisioning engine currently processes approximately 60% of applications end-to-end on an automated basis, while automated income verification and document extraction have achieved an accuracy rate of around 80%. Manual credit assessment, which previously took approximately 2-3 days, has now been reduced to around 30 minutes through workflow enhancements across OCR, AI-enabled processing and operating controls that have strengthened the platform’s underwriting and servicing capabilities.  On the collections side, Digitec uses personalised dunning strategies, risk-based prioritisation, unified account views for agents and real-time reporting for supervisors. Early-stage delinquency alerts are triggered by missed payment behaviour, deteriorating repayment patterns, repeated broken promises to pay and higher-risk balance migration, allowing intervention to begin earlier and with greater precision. These enhancements have contributed to an approximately 700-basis-point year-on-year reduction in default rates, reflecting stronger underwriting and repayment monitoring. That strategic alignment finds practical expression in Digitec, serving a segment of the Malaysian market that remains insufficiently reached by conventional credit channels. As of January 2026, Malaysia’s labour force stood at 17.28 million. Within that, 3.13 million were own-account workers, a segment more likely to have less conventional income documentation. On the enterprise side, MSMEs employed 8.10 million people and contributed 39.5% of GDP, pointing to a large borrower base whose financing needs are not always well served by traditional underwriting models, particularly where income trails are less formal, credit histories are limited, or turnaround times matter. The partnership comes as global private credit continues to scale, with the market now estimated at approximately USD 1.8 trillion and private credit strategies attracting more than USD 220.0 billion in 2025. Institutional direct-lending funds also raised at least USD 16.0 billion in Q2 2026 alone, reflecting continued demand for non-bank financing channels. Against this backdrop, Digitec provides Crewstone and MBC with access to a scalable Malaysian private credit platform supported by licensed origination, borrower-level data, underwriting automation and repayment monitoring. “This partnership reflects Crewstone’s belief that in a market that is already competitive and becoming more so, the strongest outcomes will come from firms that know when to join forces and scale with intent,” said Keng Fai Wong, Chief Executive Officer of Crewstone International. “By combining Crewstone’s capital and growth capabilities with MBC’s platform familiarity and operating proximity, we are building from a stronger base. That matters not only for Digitec, but for how both firms position themselves for the next phase of opportunity across Asia.” “We are pleased to be working with Crewstone on Digitec and believe this partnership brings meaningful strategic value to the platform,” said Tommy Ng, Co-Founder of Mirai Bridge Capital. “Crewstone’s strength in capital formation, structuring and growth strategy makes them a strong partner for this next phase. More broadly, we see this as the beginning of a wider relationship, with potential to pursue additional opportunities together over time.” “Crewstone’s participation reflects strong conviction in the platform we have built and in the opportunity ahead. This initial commitment strengthens our ability to scale the loan book, deepen our underwriting capability, and expand access to structured financing across segments that continue to be underserved,” said Ng Kae Shen, Director of Thirty Three Digitec Solutions.

CIMB Niaga is among eight payment service providers participating in Bank Indonesia’s (BI) newly launched Indonesian Credit Card (KKI), which offers individuals and businesses a new credit payment option for transactions conducted through the country’s Quick Response Code Indonesian Standard (QRIS) payment system. CIMB Niaga Tbk, Indonesia’s sixth-largest bank by assets, is majority-owned by Malaysia-based CIMB Group, making it one of the more prominent regional players involved in this latest payment system initiative. Acting Bank Indonesia Governor Destry Damayanti said the initiative, launched in conjunction with Indonesia’s 81st Independence Day, was aimed at ensuring advances in the payment system contribute meaningfully to economic growth while delivering tangible benefits to the public. “This policy response stems from the optimism that it represents a tangible contribution by Bank Indonesia together with the payment system industry to the Indonesian nation, while also serving as an independence gift to the public,” she said in a statement, underscoring the symbolic timing of the launch alongside its practical economic objectives. BI said eight payment service providers had issued the KKI as of Aug 17, namely BCA, Bank Mandiri, BNI, BRI, CIMB Niaga, Permata Bank, Bank Mega and BSI, with the latter developing a sharia-compliant financing scheme to cater to Islamic banking customers. BI also reported that as of June, QRIS had recorded 65.77 million users and 44.86 million merchants, of which 96.68% were micro, small and medium enterprises (MSMEs), highlighting the payment system’s deep penetration into Indonesia’s grassroots business community. A total of 12.55 billion transactions worth 1.12 quadrillion rupiah were recorded in the first half of 2026 alone, reflecting the rapid growth and adoption of QRIS-based payments across the country. Meanwhile, Antara News Agency reported that the KKI, which was previously issued only to central and regional government agencies to support government spending, has now been expanded to individuals and corporations for both conventional and sharia-compliant services, with the initial rollout taking the form of a digital card. BI Payment System Policy Department head Ryan Rizaldy was quoted as saying that the KKI would subsequently be developed further to facilitate online payments as well as offline transactions using physical cards, signalling BI’s intention to broaden the card’s functionality and accessibility over time as the programme matures.

Alam Maritim Resources Bhd’s shares tumbled nearly 12% in a single day of trading after news emerged that its group managing director and group chief executive officer, Datuk Azmi Ahmad, had been remanded by the Malaysian Anti-Corruption Commission (MACC). According to sources, Azmi was remanded to facilitate an ongoing investigation, although further details surrounding the nature of the probe were not immediately disclosed. In a filing with Bursa Malaysia yesterday, the offshore oil-and-gas services firm sought to reassure investors, stating that the remand did not constitute any finding of wrongdoing on the part of its top executive. The company emphasised that the matter remains under investigation and that no conclusions should be drawn at this stage regarding Azmi’s conduct or the company’s operations. “The board has taken the necessary measures to ensure continuity of the group’s operations and will make further announcements should there be any material development,” the company said in the filing, signalling its intent to keep shareholders and the wider market updated as the situation unfolds. Despite the reassurance, the news triggered a sharp sell-off in the counter, with the stock closing at 23 sen, its lowest level in nearly six months. The steep decline reflects investor concerns over potential leadership uncertainty and the broader implications the investigation could have on the company’s operations and reputation, even as the board moves to maintain business continuity during this period.

The Employees Provident Fund (EPF) registered 441,846 new members in the first half of 2026 (1H 2026), bringing total membership to close to 18.5 million. In a statement today, EPF said active members — those who contributed at least once in the last 12 months — rose to 10.9 million, improving the active-to-inactive ratio to 59:41. Active employers increased to 645,207 as at June 2026, following 37,265 new employer registrations during the quarter, it added. According to the Department of Statistics Malaysia, the unemployment rate stood at 3.0% in May 2026, with the country’s labour market showing moderate improvement in line with stable economic growth. Employment growth remained steady and unemployment stayed persistently low, even amid ongoing global trade and supply chain uncertainties. Meanwhile, EPF said total contributions rose 8.5% to RM33.87 billion in the second quarter ended June 30, 2026 (2Q 2026), up from RM31.21 billion in 2Q 2025. “For 1H 2026, voluntary contributions continued to gain momentum, increasing to RM14.15 billion. This reflects sustained member participation in voluntary savings, supported by EPF’s digital platforms, which provide members with seamless and convenient access to make voluntary contributions,” it said. EPF said total contributions from i-Saraan grew 15.7% to RM1.33 billion, while the number of Malaysian formal sector members contributing above statutory rates through i-Topup rose 13.9% year-on-year to close to 204,450 for 1H 2026.

AFFIN Group (“AFFIN” or “the Group”) and Baiduri Bank, Brunei Darussalam’s largest conventional bank and a member of the Baiduri Bank Group, one of the country’s leading providers of financial products and services, have signed a Memorandum of Understanding (MoU) to expand banking cooperation between Malaysia and Brunei Darussalam and broaden business opportunities for customers in both markets. The partnership brings together AFFIN’s banking capabilities and network in Malaysia with Baiduri Bank’s strong domestic franchise and market expertise in Brunei, establishing a more direct financial corridor for businesses pursuing trade, investment and expansion across the two countries. The MoU was signed by Datuk Wan Razly Abdullah, Ppresident and group CEO of AFFIN Group (seated, left), and Ti Eng Hui, CEO of Baiduri Bank, and witnessed by Ak Nor Muhammad Nizam Pg Haji Tengah, head of institutional banking, Baiduri Bank, and Hasli Hashim, chairman of Affin Hwang Investment Bank Bhd. Under the MoU, both institutions will explore collaboration across commercial and retail banking, financing, trade finance and treasury, as well as investment services including investment banking, stockbroking, asset management and unit trusts. The partnership aims to broaden opportunities to facilitate transaction flows, generate new business and expand access to financial solutions for customers in both markets. The collaboration comes as economic ties between the two neighbouring ASEAN nations continue to deepen. Brunei remains one of Malaysia’s key trading partners, with bilateral trade valued at RM5.8 billion in 2025 and RM2.4 billion in the first half of 2026. Both countries have identified further cooperation across trade and investment, energy, connectivity, agriculture, tourism and the halal economy, alongside closer economic links between Brunei, Sabah and Sarawak, creating a broader commercial landscape for businesses, capital flows and commerce across the region. AFFIN’s trade finance capabilities were recently recognised with the Malaysia Domestic Trade Finance Bank of the Year award at the Asian Banking & Finance Wholesale Banking Awards 2026, as well as Best Trade Finance Bank Malaysia at the Global Banking & Finance Review Awards 2026. The group was also included in the Fortune Southeast Asia 500 for the third consecutive year, underscoring the strength and credibility of the platform it brings to the partnership. Datuk Wan Razly Abdullah, President and Group Chief Executive Officer of AFFIN Group, said Malaysia and Brunei share strong economic and commercial ties, with significant potential to deepen business and investment flows between the two markets. “AFFIN brings together conventional and Islamic banking, investment banking, asset management and wealth under one roof. Combined with Baiduri Bank’s established franchise in Brunei Darussalam, this gives us greater breadth to meet our customers’ financing, investment and wealth needs,” he said. “This MoU creates a platform to expand cross-border connectivity and connect customers to new opportunities. With economic linkages between Malaysia and Brunei Darussalam continuing to grow, including across Borneo, and Visit Brunei Year 2027 on the horizon, we see ample scope to deepen commercial activity and create sustainable value for both institutions,” he added. Ti Eng Hui, Chief Executive Officer of Baiduri Bank, said Brunei and Malaysia already share deep economic, business and people-to-people ties. “As opportunities across Malaysia, in particular Borneo, continue to expand, AFFIN Group and Baiduri Bank are well placed to strengthen those connections and create greater opportunities for businesses and customers in both markets,” he said. The collaboration aligns with the AFFIN Axelerate 2028 (AX28) Plan, which is anchored on three strategic pillars: Unrivalled Customer Service, Digital Leadership, and Responsible Banking With Impact, supporting AFFIN’s ambition to deliver innovative customer propositions and capture new growth opportunities. The MoU was signed by Datuk Wan Razly Abdullah and Ti Eng Hui, and witnessed by Ak Nor Muhammad Nizam Pg Haji Tengah, Head of Institutional Banking at Baiduri Bank, and Hasli Hashim, Chairman of Affin Hwang Investment Bank.

DXN Holdings Bhd is ramping up its manufacturing presence in Latin America with a new facility in Brazil, where it will invest at least 100 million Brazilian reals (about RM77 million) over five years. In a statement, the wellness products manufacturer said the new facility in Ibiá, Minas Gerais, is expected to become its largest manufacturing base in Latin America, strengthening its ability to serve Brazil and other markets in the region. Latin America is DXN’s largest revenue contributor, accounting for 61.2% of the company’s revenue, or about RM1.2 billion, for the financial year ended Feb 28, 2026. The region had roughly 4.8 million captive consumers as at July 31, underscoring its importance to the company’s long-term growth strategy. DXN Holdings Bhd has announced the groundbreaking of its new manufacturing facility in Ibiá, Brazil, marking a significant step in the Company’s continued expansion of its manufacturing footprint across Latin America. The facility is being built on a 100,745-square-metre site provided by the Municipality of Ibiá under a conditional land donation arrangement. Construction is targeted for completion by September 2029, with production expected to begin by the end of the year. DXN executive director and group chief executive officer Prajith Pavithran said the investment would allow the company to manufacture closer to its customers, improving product availability while shortening supply routes and enabling faster responses to shifts in demand. “This investment reflects our confidence in Latin America and our commitment to building the capabilities needed to support the region’s long-term growth. Once operational, the Brazil facility will provide greater flexibility to develop and introduce products tailored to Brazilian and regional consumer preferences,” he said. DXN said the facility will also strengthen its vertically integrated supply chain, with raw materials sourced from both its own agricultural operations and local suppliers. Among them will be Arabica coffee beans from DXN’s 155.8-hectare plantation in Ibiá, linking the company’s upstream cultivation activities with its downstream manufacturing. According to Ibiá mayor Gillianno Mamao, the facility is expected to create between 200 and 250 direct and indirect jobs. The Brazil investment is part of DXN’s broader RM500 million capital expenditure programme to expand manufacturing capacity across multiple regions. The company currently operates two manufacturing facilities in Mexico and is also developing facilities in Peru and Bolivia. DXN held the groundbreaking ceremony for its Peru facility in September 2025, followed by its Bolivia facility in April this year. With the addition of the Brazil facility, DXN will have a more localised manufacturing network spanning four key Latin American markets, which could help reduce supply chain lead times and offer greater flexibility to tailor products to regional demand. The expansion follows DXN’s earlier memorandum of understanding with Apex Brasil to support its broader investment plans and deepen its operating presence in Brazil. Malaysia External Trade Development Corporation trade commissioner to Brazil, Amirul Azman Ahmad, said the investment reflects the growing internationalisation of Malaysian companies and their shift beyond exports and distribution toward local manufacturing and integration into regional supply chains. “The development of a significant manufacturing base in Brazil demonstrates how Malaysian companies can progress beyond exports and distribution towards deeper localisation, manufacturing and integration into regional supply chains,” he said.

PN17-listed Industronics Bhd has lodged a police report and removed former executive director Liu Wing Yee Amy from all positions within the group after discovering more than HK$96 million in trade receivables concentrated among a small number of customers at its Hong Kong subsidiary, ECGO International Ltd. In a filing with Bursa Malaysia, Industronics said it will conduct a detailed forensic review of past transactions, fund flows, banking records and receivables to establish the facts, assess potential recovery and determine the necessary legal, regulatory and governance actions. The company said the transactions, recoverability of the receivables and any potential impairment or recovery remain subject to further verification and review. Liu had resigned as an executive director on Sept 19, 2024, according to Industronics’ latest annual report. ECGO is the group’s only active Hong Kong subsidiary. Its main activities include watch trading and cloud computing services. ECGO contributed HK$73.11 million, or RM39.65 million, to the group’s revenue in the financial year ended Dec 31, 2025 (FY2025), down from HK$91.06 million a year earlier due mainly to weaker watch sales. Industronics has since stopped its main business activities and watch trading operations in Hong Kong. The group reported zero revenue in its latest quarterly results for the first quarter ended March 31, 2026. The company said it is still too early to determine the financial impact of the issue or how much of the receivables can be recovered. It also stressed that no conclusion has been made that any individual had committed an offence or wrongdoing. The latest development adds to Industronics’ financial challenges. The company was recently classified as a Practice Note 17 (PN17) company after its auditor, UHY Malaysia PLT, issued a disclaimer of opinion on its FY2025 financial statements. The auditor raised concerns over the group’s inventories, trade and other receivables, revenue and cost of sales, citing gaps in documentation, an incomplete audit scope and limited access to financial information. It also said Industronics’ ability to continue as a going concern depends on the successful execution of new ventures and financial support from related parties. Separately, substantial shareholder Bluemount Investment Fund has filed a lawsuit against Industronics and certain directors or officers, seeking up to US$5.152 million. Industronics said on Wednesday that it had borrowed US$4.6 million from Bluemount in March 2025 for 36 months at an annual interest rate of 12%. The funds were mainly intended for a proposed pre-initial public offering investment in AMES Hotel or other agreed investments. Bluemount is seeking repayment of the loan and accrued interest. Industronics said it does not admit to any breach or default, and no liability has been determined by the court. Bluemount holds a 6.789% stake in Industronics. Industronics shares were unchanged at three sen on Wednesday, giving the company a market capitalisation of RM21.2 million