Investment & Market Trends

Ningbo Fresh Technology Co Ltd of China will invest an additional RM263 million to expand its operations in Tanjong Malim, Perak, further strengthening Malaysia’s automotive industry ecosystem. Perak Menteri Besar Datuk Seri Saarani Mohamad said the company already operates an automotive component manufacturing plant in Tanjong Malim and is now planning to scale up its presence at the Tanjong Malim Hi-Tech Park. He said the expansion is aimed at serving both local and export markets, and is expected to boost the state’s economic growth while creating high-skilled job opportunities and supporting technology transfer and local talent development. “This investment is expected to further stimulate the state’s economic growth, creating high-skilled job opportunities and accelerating technology transfer and local talent development,” he said in a Facebook post. Saarani is currently leading a Perak trade and investment mission to China, which includes visits to several companies such as Ningbo Fresh Technology in Shanghai. He added that Perak will continue to position itself as a strategic investment destination for the automotive and high-technology sectors, as well as future-focused industries. Earlier during the mission, the Perak State Agricultural Development Corporation also signed a memorandum of strategic cooperation with Shuita Energy Group Co Ltd to explore renewable energy development projects in the state.

Computer infrastructure company Pentech Holdings Bhd is expected to raise RM34.39 million in gross proceeds from its initial public offering (IPO) on Bursa Malaysia’s ACE Market, with the listing scheduled for June 15, 2026. From left: Pentech Holdings Bhd non-independent executive director Tan Hooi Bee, independent non-executive director Lim Guan Chong, independent non-executive chairman Mohamad Hashim Abdul Ghani, managing director and CEO Yeoh Chin Ming, Public Investment Bank Bhd CEO Lee Yo-Hunn, independent non-executive director Lee Kooi Hoon, independent non-executive director See Swee Sie, and non-independent executive director Juleen Teh Sue Leen. The group said the IPO proceeds will be used to support its business expansion plans and strengthen its capabilities in the computer infrastructure and related technology services segment. Pentech operates in the computer infrastructure space, providing solutions and services that support digital systems and IT operations for businesses. The ACE Market listing is expected to enhance the company’s visibility in the capital market while providing additional funds to support its long-term growth strategy. The listing comes amid continued interest in technology-related IPOs, as companies seek to tap into growing demand for digital infrastructure and enterprise technology solutions in Malaysia and the broader region. Upon listing, Pentech will join a growing pool of ACE Market companies seeking to expand their footprint and scale up operations through public market fundraising. Further details on the IPO structure, including share allocation and utilisation breakdown, are expected to be released closer to the listing date.

Feytech Holdings Bhd has secured a RM96.8 million contract to supply seat covers for a new Proton model. In a statement, the company said its subsidiary Gosford Leather Industries Sdn Bhd has been appointed as the original equipment manufacturer (OEM) seat supplier for the upcoming vehicle. Feytech Holdings Bhd has secured a RM96.8 million seat cover supply contract for Proton’s new compact SUV AMA02 model, with production set to begin in October this year. Pic courtesy of Feytech. Feytech chief executive officer Connie Go said the contract builds on the group’s long-standing relationship with Proton, which dates back to 2012. “This contract is a natural extension of our longstanding relationship with Proton that goes back to 2012,” she said, adding that Feytech has grown alongside the national automotive industry and continues to support Proton’s product expansion plans. Industry observers have speculated that the new model could be marketed under the Saga Cross nameplate. Proton Holdings Bhd previously outlined its AMA platform roadmap, including models AMA02, AMA05 and AMA06, which are expected to replace existing vehicles such as the Persona, Iriz, Exora and the outgoing Saga in the sub-RM80,000 segment. Separately, Feytech’s joint venture with China’s Wuhu Ruitai Auto Parts Co Ltd, FTRT Autoparts Sdn Bhd, is also expanding its presence in Malaysia’s automotive supply chain. The JV will begin seat production for two existing Chery models and two new models in the third quarter of this year under a localisation programme at its Subang facility. FTRT Autoparts was set up to support localisation requirements for China-based OEMs operating under completely knocked-down (CKD) programmes in Malaysia. Go said both initiatives strengthen Feytech’s position as a Tier-1 seat supplier to domestic and regional OEMs, while improving capacity utilisation and supporting long-term earnings stability.

Standard Chartered plans to cut more than 7,000 jobs over the next four years as the bank accelerates the use of artificial intelligence (AI) and automation across its operations. The London-headquartered lender said it aims to reduce 15% of its corporate function roles by 2030, affecting over 7,000 positions based on its current workforce. The bank currently employs nearly 82,000 people globally. Chief executive officer Bill Winters said the move is part of the bank’s long-term transformation strategy, focusing on automation and AI-driven efficiencies rather than traditional cost-cutting measures. “It’s not cost-cutting. It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in,” Winters said. The affected roles are expected to mainly involve back-office operations in locations including Chennai, Bangalore, Kuala Lumpur and Warsaw. Standard Chartered said AI will play a major role in streamlining processes, modernising core banking systems and improving operational efficiency as the bank faces increasing competition and evolving industry demands. Alongside the restructuring plans, the bank also announced higher shareholder return targets, aiming for a return on tangible equity (ROTE) of over 15% by 2028 and around 18% by 2030. The lender continues to focus on higher-margin businesses, particularly affluent retail banking and financial institution clients within its corporate and investment banking division. Despite global geopolitical uncertainties and market risks, Winters said the bank remains confident in its growth strategy and financial resilience. The announcement comes as more global companies increasingly adopt AI technologies to improve productivity and reduce operational costs.

Batu Kawan Bhd, through its wholly-owned subsidiary Whitmore Holdings Sdn Bhd, has agreed to acquire a combined 47.7% stake in MKH Bhd from the Chen family for RM549.8 million, or RM2 per share. Following the acquisition, Batu Kawan will launch a mandatory general offer (MGO) for the remaining shares in MKH at RM2 per share. The group said it intends to privatise MKH if it manages to secure at least a 90% stake in the company. The acquisition also includes a 3.9% stake in MKH Oil Palm (East Kalimantan) Bhd (MKHOP). MKH and its subsidiaries currently hold a 65.3% stake in MKHOP. Once the MGO for MKH becomes unconditional, Batu Kawan will also be required to undertake an MGO for MKHOP at 64.78 sen per share. However, the group intends to maintain MKHOP’s listing status on Bursa Malaysia. According to Bursa Malaysia filings, Whitmore entered into unconditional and conditional share sale agreements with several members of the Chen family, investment vehicle Chen Choy & Sons Realty Sdn Bhd, and related parties. The acquisitions include a 29.6% stake in MKH valued at RM340.9 million and an additional 18.1% stake worth RM208.9 million, both priced at RM2 per share. The proposed MGO for MKH could cost Batu Kawan up to RM603.8 million, which will be financed through bank borrowings. In total, the group may spend up to RM1.15 billion to complete the privatisation exercise. The RM2 offer price represents a 20.5% premium over MKH’s last closing price of RM1.66, as well as a premium ranging between 37.34% and 57.22% compared with the stock’s historical volume-weighted average prices over different periods. Batu Kawan said the acquisition would strengthen and expand its earnings base in both the property development and plantation sectors. The group added that the enlarged business could unlock operational synergies by leveraging MKH’s landbank, project management expertise and plantation assets in East Kalimantan, Indonesia. The proposals are expected to be completed in the second half of 2026. Shares of MKH last closed at RM1.66, valuing the company at RM973.7 million, while Batu Kawan ended at RM20.88 with a market capitalisation of RM8.34 billion.

A new workforce study released ahead of the Johor-Singapore Special Economic Zone (JS-SEZ) Masterplan announcement reveals a growing disconnect in Johor’s labour market. As the state prepares to move up the value chain, expectations for income are rising faster than workforce readiness. The findings suggest that the success of JS-SEZ will depend not only on investment and infrastructure, but also on whether workforce capability and expectations can be brought back into alignment. While 45% of Johor’s workforce is already capable of driving adoption, a significant portion remains in transition, with uneven exposure to advanced tools and limited readiness for higher-value roles. At the same time, income expectations remain anchored around a relatively narrow band, with many workers defining a “good life” within modest salary thresholds, even as the state’s economic ambitions continue to rise. This creates a structural tension — a workforce that is operationally strong, but not yet uniformly prepared for the type of growth it increasingly expects. “The narrative has been that Johor needs more talent. What this data shows is more nuanced — the talent already exists, but it is not yet aligned to where the economy is heading,” said See Toh Wai Yu, CEO of Central Force International. “What we are now seeing is a widening gap between expectations and readiness, and that gap will ultimately shape how far and how fast Johor can move.” Readiness Concentrated in Certain Areas The study also highlights a geographic imbalance across the state. Johor Bahru stands out as the most digitally prepared district, with a concentration of talent capable of supporting advanced services and technology-enabled industries. In contrast, districts outside the urban core are dominated by technically skilled and trainable workers, but with more limited exposure to AI and advanced digital tools. This creates a structural divide where execution capability is strong, but readiness for rapid innovation remains more limited. Transformation Must Follow Readiness The findings suggest that Johor’s primary challenge is not capability, but how transformation is sequenced. Advancing too quickly into high-value sectors in areas that are not yet ready risks slowing productivity gains and widening inequality. “The biggest risk is not that Johor moves too slowly — it’s that we move too uniformly. Transformation must follow readiness,” said Wai Yu. “If we mismatch ambition with capability, we risk creating friction instead of momentum.” Income Expectations Reflect Wider Economic Perceptions Beyond skills, the study points to a deeper structural issue in how workers evaluate opportunity. A majority of Johoreans indicated that RM3,000 or below is sufficient for a “good life”, while only a small minority associated it with incomes above RM5,000. This perception remains consistent even among higher earners, suggesting that expectations are shaped less by individual earning potential and more by how Johor is collectively perceived as an economy. Johor is therefore viewed as stable and affordable, but not necessarily aspirational, which may limit how quickly workforce expectations evolve alongside higher-value economic activity. Implications for JS-SEZ As Malaysia approaches the JS-SEZ Masterplan announcement, the findings reposition workforce alignment as a key determinant of success. Johor enters this phase with a strong execution base and a sizable pool of trainable talent. However, unlocking higher-value growth will depend on how effectively capability, expectations and investment are aligned. In this context, the success of the JS-SEZ may depend less on how fast Johor moves, and more on whether it moves in the right sequence — ensuring that ambition does not outpace readiness. The lite report is available at: Central Force International Central Force International is a member of the American Association for Public Opinion Research (AAPOR) Transparency Initiative and is currently the only Malaysian research organisation participating in the initiative.

Monee Capital Malaysia Sdn. Bhd. (Monee) today announced the official public launch of SFinancing-i, a Shariah-compliant digital financing solution now available to all Shopee users* in Malaysia. Designed to offer greater financial flexibility, SFinancing-i provides users with convenient access to instant cash financing directly through the Shopee app. With financing of up to RM20,000 and flexible payment tenures of up to 24 months, SFinancing-i aims to support users’ personal financial needs through a seamless and fully digital experience. Approved users can instantly withdraw funds to their bank account or ShopeePay wallet, with no income documents or activation fees required. In conjunction with the launch, users who activate and make their first financing request can enjoy a special 1% monthly profit rate* promotion for payment tenures of up to 24 months. Powered by Monee Capital Malaysia in collaboration with Sedania As Salam Capital, and certified by Masryef Advisory, SFinancing-i is built on the Shariah principle of Commodity Murabahah (Tawarruq), offering users a transparent and accessible financing solution that aligns with Islamic financing principles. Key features of SFinancing-i include: ● Financing limit up to RM20,000● Flexible payment tenures of up to 24 months● Instant cash withdrawal to bank accounts or ShopeePay wallets● 1% monthly profit rate for the first financing request● Fully digital application process with no income documents required● Zero activation fees Eligible users can activate SFinancing-i directly through the “Me” tab on the Shopee app. The service is available to eligible Malaysian citizens and permanent residents aged 18 years old and above. For users seeking higher financing amounts, Monee also offers SFinancing-i Xtra, a term financing facility that provides eligible users** with financing of up to RM50,000 and profit rates from as low as 0.75% per month.

The High Court has dismissed Bursa Malaysia Securities Bhd’s case against MAA Group Berhad over alleged breaches of listing rules in relation to the shareholder approval process for the sale of KNM Group Bhd’s German assets. In its ruling, the court held that MAA should not automatically be treated as a listed issuer subject to full listing obligations simply because it convened an extraordinary general meeting (EGM) for KNM shareholders under the Companies Act 2016. The court also found that any procedural irregularity, if present, could be rectified and there was insufficient evidence of substantial injustice. Written grounds for the decision will be issued later. The case, heard on May 14, 2026, was linked to an EGM initiated by MAA as KNM’s largest shareholder to approve the proposed disposal of Deutsche KNM GmbH, despite objections from Bursa. Other defendants included KNM Group Bhd, CIMSEC Nominees (Tempatan) Sdn Bhd, and KNM Process Systems Sdn Bhd. Bursa had sought to halt the EGM until full compliance with the Main Market Listing Requirements was met. The suit was filed on Oct 28, 2025, ahead of the originally scheduled Oct 30, 2025 meeting. MAA, led by Tunku Datuk Yaacob Khyra, holds a 19.37% stake in KNM. MAA said the High Court dismissed the case with no order as to costs, while Bursa may still appeal the decision within 30 days. The ruling comes amid KNM Group Bhd’s broader legal and restructuring challenges following the collapse of its €270 million deal to sell its German unit, Deutsche KNM GmbH, to Japan’s NGK Insulators. KNM is seeking damages including RM363 million for loss of market value after delisting, €46.5 million in German bank exposures, and RM42.69 million in costs. KNM, which was classified as a Practice Note 17 (PN17) company, had been trying to complete the disposal of its German assets, Borsig, which it acquired in 2008 for €350 million. The sale was part of its plan to reduce debt and exit PN17 status, with expected debt reduction of about RM1.3 billion and working capital gains of around RM100 million. However, Bursa rejected KNM’s restructuring plan in October 2025, saying it failed to demonstrate long-term viability and did not adequately address its financial issues. KNM later withdrew its appeal and proceeded with delisting in November 2025 after Bursa warned against holding the vote without complying with listing rules. The EGM was eventually adjourned to a date after delisting took effect.

The MADANI government will provide more than RM5 billion in microfinancing facilities in 2026, aimed at benefiting over 400,000 micro-entrepreneurs nationwide through loans of up to RM100,000. The Ministry of Finance (MOF) said in a statement that the financing will be channelled through various agencies and development financial institutions, including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank, and Bank Rakyat. Some schemes will offer financing rates as low as 3% per annum. Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said relevant agencies have been instructed to step up outreach efforts to ensure wider access, especially for small traders, hawkers, and micro-entrepreneurs facing capital constraints. He said application processes must be simplified and financing conditions kept fair and accessible, in line with the principles of the MADANI Economy, which emphasises compassion, justice, and equality. He added that the initiative targets groups such as small traders, night market vendors, women, youth, gig workers, TVET graduates, small contractors, padi farmers, and asnaf communities. He clarified that the microfinancing facilities are separate from other SME support schemes, including the RM5 billion SME Special Relief Facility under Bank Negara Malaysia and the RM5 billion guarantee scheme under Syarikat Jaminan Pembiayaan Perniagaan. In total, more than RM15 billion in financing support has been made available to MSMEs this year.

The MADANI government’s microfinancing initiatives are helping strengthen Malaysia’s economic resilience during periods of geopolitical uncertainty by maintaining liquidity and supporting domestic economic activity, especially among small and medium-sized enterprises (SMEs). IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said microfinancing serves as a targeted stabiliser that helps reduce the impact of economic pressure on SMEs, which often have limited financial buffers. Mohd Sedek Jantan. He said rising operating costs driven by higher global oil prices and ongoing trade policy uncertainty have tightened margins and created uneven cash flow conditions for many businesses. Access to financing, he added, helps SMEs maintain cash flow, sustain operations, and avoid disruptions to employment and investment activities. He also noted that microfinancing supports local consumption and strengthens community-level economic activity, which becomes more important when external growth conditions are weak. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said access to financing and credit is crucial during economic shocks, allowing businesses breathing space to manage financial obligations. He said government-backed financing schemes enable SMEs to refinance existing debt at competitive rates, easing pressure from rising costs such as fuel. He added that additional capital also allows businesses to invest in digitalisation and enterprise systems such as ERP, helping improve efficiency and reduce operating costs. On Thursday, the MADANI government through the Ministry of Finance announced more than RM5 billion in microfinance facilities for 2026, expected to benefit over 400,000 micro-entrepreneurs with loans of up to RM100,000. The financing will be channelled through agencies and development financial institutions including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank, and Bank Rakyat. The ministry added that more than RM15 billion in total financing support has been provided to MSMEs this year, including a RM5 billion SME Special Relief Facility under Bank Negara Malaysia and another RM5 billion facility under the Syarikat Jaminan Pembiayaan Perniagaan (SJPP).