Investment & Market Trends

Hong Kong’s banking and regulatory circles are showing increasing anxiety about the city’s most severe property downturn since the Asian financial crisis. Over recent months, Hong Kong’s de facto central bank has stepped up its scrutiny of lenders’ handling of troubled loans. Officials are calling banks more frequently to assess their willingness to renew credit facilities, including for smaller developers. At the same time, bankers are revisiting the high valuations tied to collateral supporting hundreds of billions of dollars in weakened property debt. These developments — described by more than two dozen bankers and property consultants who spoke anonymously — signal growing strain in a sector that remains crucial to Hong Kong’s economy. The real estate slump continues to weigh on growth, even as the financial hub regains momentum in areas such as IPO activity and bond markets. “What surprised me is the possibility that protections are now extending even to smaller players,” said Jason Bedford, visiting senior research fellow at the East Asian Institute, National University of Singapore, referencing regulators’ interest in credit lines for minor developers. “That’s a pretty alarming signal. It raises the risk that we may be entering a broader extend-and-pretend phase.” In response to Bloomberg’s queries, a spokesperson for the Hong Kong Monetary Authority (HKMA) declined to discuss individual firms. “It is the HKMA’s long-standing supervisory requirement that banks must manage credit risk prudently,” the spokesperson said. “In general, banks in Hong Kong have been pragmatic in providing credit support to customers.” Commercial property loans make up roughly 8% of the HK$10 trillion (RM5.33 trillion) in lending across Hong Kong’s banking system, according to S&P Global Ratings. Government data shows local office prices have fallen about 50% from their 2018 peak. More HKMA Calls to Banks Despite reassuring the public that the banking system is well-capitalised, the HKMA has become markedly more hands-on with lenders’ decisions. Since May, multiple banks have received at least three HKMA calls probing their reasons for not joining certain refinancing deals, people familiar with the matter said. Previously, such calls occurred once or twice a year and focused mainly on basic transaction checks. A notable example is Lai Sun Development Co., which began refinancing a HK$3.6 billion loan in January. After six months of negotiations, only half of the 20 lenders were willing to extend the facility. In the weeks before the loan’s Oct 6 maturity, at least five banks received calls from HKMA officials seeking feedback on concerns about lending to Lai Sun. The regulator communicated its general expectation for lenders to show some sympathy toward distressed borrowers. The calls were widely viewed as a signal that regulators wanted Lai Sun to receive support. Shortly after, the developer secured a HK$3.46 billion refinancing package. The HKMA has taken a similar approach in other cases, including deals involving New World Development Co, Emperor International Holdings Ltd, Gaw Capital Partners, and Spring Real Estate Investment Trust. Spring REIT said it completed refinancing for a Beijing project as part of its normal business cycle. Gaw declined to comment, while Lai Sun and Emperor did not respond. Tightening Attention on Valuations Another growing concern: bankers are increasingly questioning what they see as overly optimistic property valuations used to secure commercial loans. Although commercial real estate prices have plunged, some valuation reports still reflect inflated figures, according to people familiar with the matter. One case involved the YF Life Tower, located outside Hong Kong’s central business district. The building was refinanced in late 2023 based on a HK$6.24 billion valuation by CBRE Group Inc — nearly unchanged from 2018 levels. Lenders were sceptical because the comparison property used in the assessment was in a far more prime location with a harbour view. Banks subsequently reduced the loan-to-value ratio and cut the loan amount to HK$2.5 billion from HK$3.1 billion. Jones Lang LaSalle Inc. later produced a similar valuation of HK$6.21 billion. Another example is Worfu Mall, collateral for a HK$1.5 billion loan that defaulted earlier this year. Under receivership since January, interested buyers have reportedly submitted bids well below half the loan’s value. “Valuation practices in Hong Kong fall short of global standards,” said Leo Lo, founder of CHFT Advisory and Appraisal. “Landlords, not banks, control the process. They shop around for the most optimistic valuations, and surveyors who don’t play along risk losing business.” With concerns mounting, some lenders have shifted from semi-annual to monthly valuation reviews. Uncertain Outlook While experts generally believe Hong Kong’s financial system is strong enough to withstand short-term shocks, deeper risks remain, prime office rents to decline another 7% through 2026. “I don’t see any evidence of impending market collapse based on the HKMA’s actions, but regulators are always cautious about the risk of multiple players trying to exit simultaneously,” said Arthur Morris, assistant professor at the Hong Kong University of Science and Technology. “Think of the HKMA as air traffic control — they want to prevent everyone from landing at once.”

Main Market-listed engineering services group AWC Berhad (“AWC” or the “Group”), via its wholly-owned subsidiary Ambang Wira Sdn Bhd (“AWSB”), has received official confirmation from the Ministry of Works (KKR) that the Malaysian Government has approved a one-year extension of the current ten-year Concession Agreement, which was due to expire on 31 December 2025. The extension will run from 1 January 2026 to 31 December 2026. Along with the approval, KKR provided a copy of the Interim Agreement under the existing Privatisation Agreement for Building Support Services for Government Buildings in the Southern Zone and Sarawak Zone, which will take effect upon execution by both parties. While no specific contract sum is stipulated, the estimated value of works under this one-year extension is approximately RM63.7 million, based on prevailing rates and the scope of services under the existing concession. The Concession Agreement covers the management, maintenance, and upkeep of Federal Government buildings in the Southern Zone (Malacca, Negeri Sembilan, and Johor) and Sarawak Zone, including services under the Critical Asset Refurbishment Programme (CARP). Dato’ Ahmad Kabeer bin Mohamed Nagoor, Group CEO/President of AWC Berhad, said: “We are pleased to secure the 1-year extension, which reflects our proven track record and the confidence placed in us by KKR. Having managed this concession since 1998, we remain committed to delivering high-quality services for the Government’s facilities management needs. At the same time, we are actively preparing for the tender of the new concession.” AWC has been managing and maintaining Federal Government buildings in the Southern and Sarawak Zones since June 1998, with a 10-year renewal commencing in 2016, expiring in December 2025. The CARP runs concurrently with the concession. The extension provides earnings clarity and strengthens the Group’s recurring revenue base, bringing total contracts announced for FY26 to approximately RM257 million. The Group’s divisions continue to maintain a healthy tender pipeline, actively pursuing new opportunities, and AWC maintains a positive outlook while remaining prudent amid broader macroeconomic developments.

The Securities Commission Malaysia (SC) has released a consultation paper seeking industry feedback on a series of proposed enhancements aimed at strengthening the attractiveness and effectiveness of Malaysia’s public equity markets. The consultation focuses on potential updates to the listing frameworks for both the Main Market and the ACE Market. According to the SC, the proposals are designed to make it easier for companies to access the capital market while ensuring that each market segment remains clearly defined and supported by regulations that are appropriate to its purpose. Key areas highlighted in the consultation paper include: • Enhancing listing pathways for the Main MarketThis includes refining the profit test criteria and strengthening the infrastructure project corporation (IPC) test to better accommodate companies with different business models and growth trajectories. • Introducing flexibility for operating cash flow requirementsThe SC is considering adjustments to the requirement for positive operating cash flow for Main Market applicants, allowing more companies with strong prospects, but uneven cash flow patterns, to qualify for listing. • Reinforcing the ACE Market as a launchpad for smaller companiesProposals include aligning certain ACE Market listing requirements with its existing sponsor-driven structure, ensuring the market continues to serve as an effective stepping stone for small and medium-sized enterprises (SMEs) to eventually transition to the Main Market. The SC has encouraged participation from investors, listed companies, advisors, industry groups, and the broader public to help ensure that the review process is inclusive and reflects the needs of Malaysia’s capital market ecosystem. The regulator aims to finalise the reforms and implement the updated listing frameworks for both markets in the first half of 2026.

Bitcoin has plunged further below the US$100,000 (RM412,900) mark, weighed down by renewed risk aversion and a selloff in technology stocks that has unsettled Wall Street. The cryptocurrency dropped as much as 3.9% to US$97,956, extending a downturn that has erased more than US$450 billion in market value since early October. Traditional sources of support, including large investment funds, ETF allocators, and corporate treasuries, have pulled back, removing a key pillar from this year’s rally and intensifying market vulnerability. Analysts at 10x Research say the crypto market has officially entered a bear phase. Citing weaker ETF inflows, ongoing selling by long-term holders, and limited participation from retail investors, the firm said its models first flagged the shift in mid-October and now point to deteriorating underlying sentiment. The next significant support level is around US$93,000. “Bitcoin was already under pressure from heavy spot selling and corporate hedging, with traders largely avoiding altcoins,” said Jake Ostrovskis, head of OTC trading at Wintermute. “When crypto-specific catalysts fade, correlations with traditional markets increase, which is driving today’s decline.” The slump coincides with renewed volatility in global markets. A brief rally in US equities earlier this week, triggered by relief over the end of the government shutdown, has faded. With key economic reports delayed, investors are reassessing whether the Federal Reserve will cut interest rates soon, adding pressure on growth assets such as tech stocks and cryptocurrencies. Crypto-related equities have also suffered significant losses. Shares of Strategy Inc, long seen as a retail proxy for bitcoin exposure, have tumbled in recent weeks, erasing billions in investor capital as premiums above net asset values collapsed. Demand for downside protection has surged in derivatives markets. Data from crypto exchange Deribit shows heavy trading in put options below the US$100,000 strike, particularly around US$90,000 and US$95,000. Although Bitcoin remains roughly 5% higher for the year and over 40% above its level during the 2024 US election, momentum has slowed considerably, and institutional participation appears to be declining. The current drawdown began in early October, when nearly US$19 billion in leveraged crypto positions were liquidated in a single day, further dampening sentiment across digital assets. Predicting a market bottom is difficult, but 10x Research noted that previous bear markets in mid-2024 and early 2025 saw losses of 30% to 40%. Bitcoin is currently down more than 20% from its 2025 peak, with limited signs of a sustained rebound. “There’s no longer just the scent of a bear market — Bitcoin and most crypto-linked assets are officially in one,” 10x said, pointing to the cryptocurrency remaining below its long-term moving average, a key indicator of weakening momentum.

BMS Holdings Bhd, a retailer and distributor of tiles, stone surfaces, bathware, and kitchenware, is set to raise RM80.08 million through its initial public offering (IPO) as it prepares for its listing on Bursa Malaysia’s ACE Market on Dec 8, 2025. Managing director Ang Kwee Peng said the IPO proceeds will help the company boost operational capacity, expand its retail footprint, and continue innovating to meet evolving consumer trends. From left: BMS Holdings’ Lee Kong Siong, Ang Wei Liang, Lee Kok Chuan, Ang Kwee Peng, and Alliance Islamic Bank’s Rizal IL-Ehzan Fadil Azim, Teoh Chu Lin, Tee Kok Wah, Lim Shueh Li. “The funds will be used to build new retail showrooms and a regional distribution centre to improve logistics, upgrade digital platforms, and support our growth initiatives,” he said. “This listing represents both a strategic expansion and a reaffirmation of our commitment to long-term sustainable growth and brand excellence.” BMS Holdings plans to allocate the proceeds as follows: RM34.28 million for new showrooms and operational expansion, RM17 million for upgrading existing facilities and ICT systems, RM4 million for marketing, RM18.8 million for working capital, and RM6 million for listing-related expenses. The IPO will consist of a public issue of 364 million new shares and an offer for sale of 156 million existing shares, representing 33.77% of the company’s enlarged issued share capital of 1.54 billion upon listing. At an IPO price of 22 sen per share, BMS Holdings’ market capitalisation at listing is estimated at RM338.8 million. Applications for the public issue open today and will close at 5 pm on Nov 19, 2025. Alliance Islamic Bank Bhd is acting as the principal adviser, sponsor, sole underwriter, and placement agent for the IPO.

OCBC Malaysia’s pioneering Serial Entrepreneur Programme has provided over RM1.6 billion in approved financing to small and medium enterprises (SMEs) since its pilot launch a year ago. In a statement, the bank said the programme is designed to support serial entrepreneurs who own and manage multiple businesses, helping them to grow, scale, and diversify their ventures. From left: OCBC’s Nicholas Teh, Sen Ching Kimia founder Lee Chai Hai, OCBC’s Jeffrey Teoh, Powerpoint Electrical director Dr Lu Jye Ying, JP Mart Trading founder Sim Tiang Kie, and OCBC’s Selwyn Lim. Through customised financing solutions, OCBC enables these entrepreneurs to manage their expanding portfolios with greater ease, flexibility, and speed. At a recent event in Kuching, OCBC Malaysia managing director and head of wholesale banking Jeffrey Teoh said he was encouraged by the positive response to the programme and confident it would bring tangible benefits to Sarawak’s business community. Since its official rollout in Kuala Lumpur in July 2025, the programme has onboarded more than 100 new keyperson customers, underscoring its success in addressing the unique needs of serial entrepreneurs, Teoh noted. “We are thrilled to introduce the programme to Sarawak, where rapid growth in renewable energy, digital infrastructure, and progressive state policies are creating a new generation of entrepreneurs,” he said. “We aim to support and empower them to seize these opportunities through the OCBC Serial Entrepreneur Programme.” The programme offers capital financing and tailored banking solutions to help entrepreneurs expand their ventures confidently. From payment services to industry-specific financial products, OCBC Malaysia streamlines banking processes so serial entrepreneurs can focus on driving growth without the usual financial barriers.

Aquawalk Group Berhad (“Aquawalk”), the developer and operator of several world-class aquaria including Aquaria KLCC, has garnered strong investor interest for its initial public offering (“IPO”), which has been oversubscribed by 6.22 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). Established in 2005, Aquawalk, through its subsidiaries (collectively known as the “Group”), designs, builds, and operates aquariums, with a presence in three key markets in Southeast Asia: Malaysia, Thailand, and Indonesia. The multi award-winning Aquaria KLCC features a diverse collection of approximately 5,000 aquatic species and the longest underwater tunnel in Malaysia. Aquaria Phuket stands among Thailand’s largest aquariums and is uniquely distinguished as the nation’s only aquarium to offer an exclusive fine-dining experience in front of the main tank. In Jakarta, the Group co-owns Jakarta Aquarium Safari (“JAQS”) through its 40.0% stake in its associate company, PT Jakarta Akuarium Indonesia (“PJAI”). Welcoming well over one million visitors annually across its portfolio, the Group blends tourism, education, and conservation to deliver memorable attractions while contributing to marine conservation and sustainable tourism. Aquawalk’s IPO entails a public issue of 368.6 million new ordinary shares (“Issue Shares”) at an issue price of RM0.31 per Share. This represents 20.0% of the enlarged share capital after the IPO, with RM114.3 million expected to be raised. In addition, there is an offer for sale of 368.6 million existing shares (“Offer Shares”), representing 20.0% of the enlarged share capital after the IPO, by way of private placement to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (“MITI”). In terms of the 92.2 million Issue Shares allocated to the Malaysian public, Aquawalk has received a total of 8,986 applications for 665.6 million Issue Shares with a value of approximately RM206.3 million, representing an overall oversubscription rate of 6.22 times. The breakdown of applications is as follows: For the Bumiputera portion, 5,125 applications for 307,774,500 Issue Shares were received, representing an oversubscription rate of 5.68 times. For the public portion, 3,861 applications were submitted for 357.9 million Issue Shares, resulting in an oversubscription rate of 6.77 times. Meanwhile, the 4.7 million Issue Shares available for application by eligible directors, employees, as well as persons who have contributed to the success of the Group, have been fully subscribed. In addition, the 271.8 million Issue Shares and 138.2 million Offer Shares by way of private placement to selected investors, as well as the 230.4 million Offer Shares by way of private placement to Bumiputera investors approved by MITI, have also been fully placed out. Notices of allotment will be posted to all successful applicants on 18 November 2025. Group Executive Chairman of Aquawalk, Dato’ Simon Foong (拿督冯重兴), said, “We are pleased and encouraged by the overwhelming response to our IPO, which reflects public confidence in Aquawalk and the exciting growth prospects we have ahead. The proceeds will be channelled towards upgrading and expanding our existing aquaria, namely Aquaria KLCC and Aquaria Phuket, as well as investing in new projects in Kota Kinabalu, Malaysia, and Java, Indonesia.” Aquawalk Group is scheduled to be listed on the ACE Market of Bursa Securities on Wednesday, 19 November 2025. Upon listing, the Group will have a market capitalisation of RM571.3 million based on the enlarged share capital of 1,843,000,000 shares and the IPO price of RM0.31 per share. M & A Securities Sdn Bhd serves as the Adviser, Sponsor, Managing Underwriter, Joint Underwriter, and Joint Placement Agent, while CGS International Securities Malaysia Sdn Bhd serves as the Joint Underwriter and Joint Placement Agent for this IPO exercise.

Sabah-based major road infrastructure player, Azam Jaya Berhad (“Azam Jaya”), has declared a single-tier interim dividend of 0.50 sen per ordinary share for the financial year ended 31 December 2025 (FY2025), amounting to a total payout of RM2.5 million. Yang Berbahagia Datuk Jessica Lo, Executive Director of Azam Jaya, said the dividend reflects the Group’s commitment to creating shareholder value and aligns with its dividend policy of distributing up to 30% of net profit, while maintaining sufficient capital for future growth initiatives. Azam Jaya remains focused on the timely execution of its RM1.38 billion unbilled order book, which includes multiple work packages under the Pan Borneo Highway Project. In August 2025, the Group also secured a RM120.9 million design-and-build contract for the Tawau Airport upgrade. The company’s outlook is positive, supported by opportunities from infrastructure upgrades and rural connectivity projects under the 13th Malaysia Plan (13MP) and Budget 2026. Azam Jaya is well-positioned to contribute to Sabah’s sustainable development while delivering long-term value to shareholders.

Container shipping and logistics firm MTT Shipping and Logistics Bhd is preparing for a Main Market listing on Bursa Malaysia to raise funds for its regional expansion and fleet growth. In its draft prospectus filed with the Securities Commission Malaysia, the group said proceeds from its initial public offering (IPO) will primarily be used to acquire new container vessels and cover listing-related expenses. MTT Shipping and Logistics — which offers container liner services, vessel chartering, and container storage solutions — currently operates 40 subsidiaries, one jointly controlled entity, and eight associates. The IPO will involve the issuance of 633.5 million new shares, comprising 571 million institutional shares and 62.5 million retail shares, representing up to 25.3% of the company’s enlarged share capital. There will be no offer for sale, and the IPO price and indicative market value will be announced at a later stage. For the financial year ended Dec 31, 2024 (FY2024), MTT recorded a net profit of RM250.38 million on revenue of RM1.20 billion. Funds raised will support the company’s plan to expand its container liner network across Southeast Asia, with further reach into the Indian subcontinent and southern China. As part of its fleet renewal and expansion strategy, MTT aims to acquire at least 10 new container vessels of various sizes over the next three years, funded through internal resources, bank borrowings, sukuk wakalah, and IPO proceeds. The group has already committed to buying four newbuild vessels — two geared and two gearless — each with capacities between 1,400 and 1,462 TEUs, worth RM339.5 million in total. Delivery is scheduled between December 2026 and December 2027. MTT also plans to replace aging vessels, including MTT Kuching Dua, MTT Bintulu, MTT Pulau Pinang, and MTT Haiphong, which have an average age of 27 years, by acquiring a 1,400-TEU geared ship expected for delivery in 2028. Beyond replacement, MTT is looking to purchase five larger ships — three 3,300-TEU vessels and two 9,000-TEU vessels — within 18 to 36 months after its listing. The company has proposed a dividend payout ratio of 40% of its net profit annually, subject to cash flow, maintenance, and capital expenditure needs. CIMB Investment Bank Bhd is acting as the principal adviser, joint global coordinator, bookrunner, and underwriter for the IPO, while CLSA Securities Malaysia Sdn Bhd serves as joint global coordinator and bookrunner.

Apex Healthcare Bhd has received a voluntary general offer (VGO) of RM2.64 per share from its major shareholder in partnership with Singapore-based private equity firm Quadria Capital Investment Management Pte Ltd. The offer price represents a slight 0.76% premium over Friday’s closing price of RM2.62, and on a volume-weighted basis, it is 6.58% above the past month’s average price and 12.83% higher than the six-month average. Apex Pharmacy Holdings Sdn Bhd, which holds a 39.58% stake, has already agreed to accept the offer, along with other connected shareholders including his brother Kee Kirk Chuen and Tan Su-Ann. Acquiring the remaining 407.3 million shares, representing 56.47% of Apex Healthcare, would cost the consortium approximately RM1.08 billion. Apex Healthcare, established in 1962 by Kee’s father, Kee Tah Peng, primarily manufactures off-patent generic pharmaceuticals and medical devices and also serves as a contract manufacturer for major pharmaceutical companies. The consortium has stated it does not intend to maintain the company’s listing on Bursa Malaysia, and the offer will become unconditional once 90% ownership is achieved. With support from Australian investment firm WHSP Holdings Pty Ltd, which owns a 29.5% stake, the consortium has secured commitments from shareholders controlling over 73% of the company. Shares of Apex Healthcare rose four sen, or 1.55%, to RM2.62 before trading was suspended on Friday following the announcement, giving the company a market value of RM1.89 billion.