Investment & Market Trends

PETALING JAYA, Iris Capital Partners, an investment firm backed by the heir to a prominent Malaysian fortune, is looking to raise US$200 million from institutional investors as it broadens its scope in private markets. Managing partner Rachel Lau, daughter of the late Lau Boon Ann — a real estate magnate and early investor in Top Glove Corp — said the new fund will focus on private credit and private equity opportunities. Rachel Lau is the daughter of the late Lau Boon Ann, who built his fortune in real estate and was an early investor in Top Glove Corp. “Relying solely on family money is not sustainable in the long run,” Lau said. “You need more permanent capital from insurance companies, pension funds, and sovereign wealth funds.” Founded in 2020, Iris currently manages assets supported by a mix of family capital, which makes up about 25%, and third-party institutional investors for the remainder. Anchor backers include Kim Dong-won of South Korea’s Hanwha Group family and Malaysia’s sovereign wealth fund. For Lau, the push into private credit marks a strategic shift from her earlier venture capital bets through RHL Ventures, which she co-founded in 2016 with Raja Hamzah Abidin — son of former Malaysian politician Raja Nong Chik — and Jojo Kong, whose family founded Nirvana Asia Ltd. Now leading a 15-member team, Lau plans to acquire majority stakes of 50% to 80% in international companies and support their expansion into Southeast Asia, particularly Malaysia and Indonesia. A recent example includes an investment in biotech company Mirxes Holding Co, which listed in Hong Kong in May. Compared with family offices, Lau said institutional investors are more straightforward to deal with. “They’re focused on financial returns without the emotional element,” she noted, while declining to disclose Iris’s overall assets or her family wealth. Her earlier venture capital firm, RHL, began with US$50 million from several influential Southeast Asian families before attracting sovereign funds, banks, and insurance companies. Past investments include Singapore-based rewards app Perx and Los Angeles merchandise startup Sidestep, which had Beyoncé among its reported backers. Lau, who holds a Master of Law from the University of Sydney and was previously a vice-president at Heitman Investment Management managing US$4 billion in equity strategies, also represented Malaysia in rhythmic gymnastics. She now sees Iris as a vehicle to move away from the volatility of venture capital. “Venture in Asia has been rough. For us, private credit and private equity offer clearer rules and stability, and we intend to gradually reduce our venture exposure,” Lau said.

KUALA LUMPUR, PNB Merdeka Ventures Sdn Bhd, a wholly-owned subsidiary of Permodalan Nasional Bhd (PNB), has unveiled plans for an Islamic medium-term notes programme worth up to RM6 billion, to be issued under the Merdeka Sukuk Wakalah. In a statement, the company said the funds raised will be utilised to refinance existing sukuk as well as to secure fresh capital for the continued development of the Merdeka 118 precinct. “As part of our commitment to sustainability, we have enhanced our sustainable finance framework to ensure alignment with the latest guidelines. The updated framework expands the range of eligible projects and gives us flexibility to issue diverse sustainable finance instruments,” PNB Merdeka said. The sukuk programme will be jointly arranged by CIMB Investment Bank Bhd and Maybank Investment Bank Bhd. PNB Merdeka CEO Tengku Ab Aziz Tengku Mahmud said the issuance will strengthen the financial foundation of the project while optimising funding costs. “We believe this programme will not only support the progress of Merdeka 118 but also reinforce its position as a landmark that embodies national pride and sustainable growth,” he said. The Merdeka 118 Tower, the centrepiece of the precinct, continues to establish itself as a premier business destination in Kuala Lumpur, with current office occupancy at around 70%. The tower has already attracted a mix of leading corporates, including financial institutions and multinational companies. Complementing the office space, the seven-storey 118 Mall is set to become a lifestyle destination with retail, dining, and entertainment offerings. Nearly 70% of its space has already been taken up ahead of its official opening. MARC Ratings Bhd has assigned a preliminary rating of AAAIS with a stable outlook to the Merdeka Sukuk Wakalah programme, underscoring the project’s strong credit standing and long-term potential.

JAKARTA, Indonesia and Japan have officially launched a cross-border QR code payment system, allowing consumers in both countries to make seamless transactions in rupiah or yen without the need for currency exchange. The initiative marks a significant step forward in strengthening financial integration between two of Asia’s largest economies. Bank Indonesia Governor Perry Warjiyo, left, and Ueda Hajime, a Japanese senior diplomat for economi and development affairs, count down the launch of the Indonesia-Japan QRIS digital payment system in Jakarta, Monday, Aug. 25, 2025. The system, which uses the Quick Response Indonesian Standard (QRIS) in Indonesia, went live on August 17, 2025. It enables travellers and businesses to conduct instant digital payments by simply scanning a QR code, streamlining cross-border spending. Bank Indonesia Governor Perry Warjiyo said the collaboration builds on similar arrangements Indonesia has already established with Malaysia, Singapore, and Thailand. “Indonesian tourists in Japan no longer need to carry cash in rupiah or yen. With just their mobile phone, they can scan and pay – whether in Shibuya or Okachimachi,” Perry noted during the launch event in Jakarta. He emphasized that the system not only improves convenience but also enhances security and efficiency in digital transactions, contributing to broader economic and financial connectivity. Japan’s Commitment to Regional Financial Links Japanese Finance Minister Katsunobu Kato welcomed the initiative, highlighting its role in supporting Asia’s expanding trade and financial flows. “As cross-border transactions grow, reliable and efficient payment infrastructure becomes increasingly vital. This initiative represents a step toward deeper economic integration, making trade and services between Japan and Indonesia more dynamic,” Kato said. The rollout of the Indonesia-Japan QR payment link is expected to boost tourism, business activity, and long-term cooperation in the region’s fast-evolving digital economy.

TOKYO/BERLIN, The pension trust of Mercedes-Benz (MBGn.DE) said it plans to sell its 3.8% stake in Nissan Motor (7201.T), worth around $346 million, a move that is expected to add further pressure on the Japanese automaker’s already weakened share price. Nissan, Japan’s third-largest carmaker, has seen its shares tumble about 24% so far this year, dragged down by declining sales, restructuring efforts, and the impact of U.S. tariffs. The divestment comes as investors increasingly question the outlook for the company’s turnaround strategy, which involves cutting costs through plant closures both at home and abroad in a bid to restore profitability. A spokesperson for Mercedes-Benz confirmed that the Nissan shares, which were transferred to its pension fund in 2016, are no longer considered strategically important. The divestment, the spokesperson said, is part of an effort to streamline and clean up the portfolio. The share offering will be priced between 337.5 yen and 345 yen per share, representing a discount of 4.96% to 7.02% against Nissan’s closing price of 363 yen on Monday, according to the term sheet. Pricing is scheduled to be finalized before the Tokyo Stock Exchange opens on Tuesday, with settlement expected on Thursday. Nissan, which sold its own 1.5% stake in then-Daimler AG back in 2021 to raise funds amid financial strain, did not immediately comment on the sale.

U.S. beverage giant Keurig Dr Pepper (KDP) has agreed to acquire JDE Peet’s, the world’s largest pure-play coffee company, in an $18 billion deal that marks Europe’s biggest acquisition in more than two years. The move positions Keurig to go head-to-head with market leader Nestlé in the global coffee sector. The agreement, announced Monday, values JDE Peet’s at a 20% premium over its last closing price and will see the Dutch company delisted from Amsterdam’s stock exchange. Following the acquisition, Keurig plans to separate its beverage and coffee operations into two new U.S.-listed companies: Global Coffee Co and Beverage Co. Strategic Impact The merger is expected to generate $400 million in annual cost savings and strengthen both companies against challenges from rising tariffs on coffee imports and ongoing trade tensions. Analysts estimate the combined coffee business will rival Nestlé’s, each holding roughly 20% of the global packaged coffee market. The deal comes as coffee prices hit record highs, fueled by droughts in Brazil and Vietnam and the U.S. decision to impose a 50% tariff on Brazilian beans. Keurig’s strong footprint in North America will be paired with JDE Peet’s dominant position in Europe, providing a platform for growth in emerging markets where coffee demand is accelerating. “Bringing these two coffee businesses together reduces JDE Peet’s reliance on Europe while giving Keurig global exposure,” said Jon Cox, an analyst at Kepler Cheuvreux. Post-Acquisition Structure The separation of Keurig’s businesses effectively unwinds part of the 2018 merger that created Keurig Dr Pepper by combining Keurig Green Mountain with Dr Pepper Snapple. Global Coffee Co, with around $16 billion in annual net sales, will focus on the $400 billion global coffee market. Beverage Co, generating more than $11 billion annually, will target the $300 billion North American refreshment drinks market. The two entities will be led by Keurig CEO Bob Cofer and CFO Sudhanshu Priyadarshi, respectively. Market Reaction Shares of JDE Peet’s surged 17.5%, their biggest single-day gain on record, while Keurig’s shares slipped about 7% in U.S. trading. At Friday’s close, JDE Peet’s was valued at €12.76 billion, while Keurig’s market cap stood at around $48 billion, according to LSEG data. JDE Peet’s, whose brands include Jacobs, L’Or, Tassimo, and Douwe Egberts, is majority-owned by JAB Holding, the investment firm of Germany’s billionaire Reimann family. JAB has committed to tendering its 68% stake in JDE Peet’s. The firm also owns a 4.4% stake in Keurig and will hold nearly 5% in each of the two new entities once the deal and split are completed. Timeline The acquisition is expected to close in the first half of 2026, with the spin-off into two separate companies planned by the end of that year. ($1 = €0.8544)

KUCHING, Affin Group and Credit Guarantee Corporation Malaysia Bhd (CGC) have entered into a Memorandum of Understanding (MoU) to provide RM500 million in financing aimed at supporting micro, small and medium enterprises (MSMEs) as well as mid-tier companies (MTCs) across Malaysia. The collaboration represents a major step forward in both organisations’ efforts to expand financing opportunities for businesses nationwide. By focusing on financial inclusion and sustainable growth, the partnership seeks to address funding gaps, empower businesses to scale and innovate, and strengthen their role in driving Malaysia’s economic development. Through the MoU, Affin and CGC will introduce a broad suite of financing options, including guarantee-backed facilities for established companies, customised funding for start-ups and early-stage ventures, and working capital solutions to improve cash flow. The initiative also supports Malaysia’s transition towards a low-carbon economy by promoting sustainable financing practices. Importantly, the programme aims to reach underserved and underbanked segments, ensuring that more entrepreneurs across different regions, including Sarawak and Sabah, gain access to much-needed financial resources. Affin Group president and group chief executive officer (CEO) Datuk Wan Razly Abdullah said the partnership underlines Affin’s long-term commitment to financial inclusion and sustainable growth while contributing to national development. “By leveraging our combined strengths, we are not only widening access to financing but also providing innovative solutions that help MSMEs and MTCs grow, compete, and thrive. This MoU reflects our commitment to empower the backbone of Malaysia’s economy and create lasting value for businesses, communities, and the nation,” he said. Speaking at a press conference, Wan Razly noted that the RM500 million allocation serves as a starting point to meet the needs of the fast-growing MSME sector and could be increased if demand requires. Although the programme is structured as a five-year initiative, he expressed optimism that the funds could be fully disbursed within just three years. Meanwhile, CGC president and group CEO Datuk Mohd Zamree Mohd Ishak highlighted the importance of extending financing access nationwide, with a strong focus on Sabah and Sarawak. “While our mandate covers the whole country, signing this agreement in Kuching demonstrates the potential we see in Sarawak and Sabah. We are committed to expanding financing access and enhancing the resilience and sustainability of local enterprises,” he said. The MoU was signed by Datuk Wan Razly, Affin Islamic Bank Bhd CEO Datuk Syed Mashafuddin Syed Badarudin, and Datuk Mohd Zamree, with Sarawak Financial Secretary Datuk Seri Dr Wan Lizozman Wan Omar witnessing the ceremony.

KUALA LUMPUR, Bank Negara Malaysia’s international reserves rose to US$122 billion as of Aug 15, up from US$121.3 billion on July 31. According to the central bank, the reserves are sufficient to cover 4.8 months of imports of goods and services and equal to 0.9 times the country’s short-term external debt. The international reserves of Bank Negara Malaysia rose to US$122.0 billion as at Aug 15, from US$121.3 billion on July 31.  Of the total, US$108.4 billion is held in foreign currency assets, while the rest comprises US$5.9 billion in special drawing rights, US$4.1 billion in gold, US$1.3 billion with the International Monetary Fund, and US$2.3 billion in other reserve assets. Bank Negara explained that the short-term external debt mainly involves borrowings by resident banks for foreign currency liquidity operations, as well as loans taken by multinational companies and foreign banks from their parent firms abroad. “These obligations are usually settled through external asset holdings and do not create claims on Bank Negara’s reserves,” the central bank said.

KUALA LUMPUR, Kim Hin Industry Bhd’s chairman, Chua Seng Huat, and his family have failed in their attempt to privatise the ceramic tile maker after their takeover bid closed without meeting the required threshold. The offer to buy out minority shareholders at 85 sen per share closed with the family holding a total of 68.34% or 95.84 million shares, including 8.1 million shares (5.78%) gained through valid acceptances. Another 0.11% is pending verification, according to UOB Kay Hian (M) Sdn Bhd on behalf of the offerors. However, this fell short of the 90% ownership level needed to trigger a compulsory acquisition of the remaining shares. Before the offer, the family already controlled 62.25% or 87.3 million shares. The deadline for the voluntary takeover offer had already been extended by a week, from Aug 15 to Aug 22. Independent adviser New Paradigm Securities Bhd had earlier urged minority shareholders to reject the bid, calling it “not fair and not reasonable.” It noted that the 85 sen offer significantly undervalued Kim Hin, being RM2.25 or 72.58% below its estimated value of RM3.10 per share, and also below its net asset value of RM1.88 per share. Despite Chua’s stake increasing to 67.87% by Aug 15, Kim Hin’s public shareholding spread dropped to 24.22%, below the minimum 25% required under Bursa Malaysia’s Main Market Listing rules. The company stated it would address the shortfall if necessary after the offer’s closure. Kim Hin’s shares closed at 83 sen on Friday, down 1.5 sen or 1.78%, giving the company a market value of RM128.4 million.

JOHOR BAHRU, MBSB Bhd (MBSB) has entered into a strategic collaboration with DayOne Data Centers to accelerate Johor’s digital infrastructure development and support the state’s economic transformation under the Maju Johor 2030 agenda. The partnership is backed by a RM1.2 billion Islamic financing facility from MBSB Bank, which is acting as the mandated lead arranger in a syndicated club deal for DayOne-owned projects under WG Data Hub Sdn Bhd. MBSB Group chief executive officer Rafe Haneef said the facility forms part of a broader RM15 billion syndicated financing package, split evenly between US dollar financing (RM7.5 billion) and local Islamic financing (RM7.5 billion). He highlighted that the financing was structured under the principles of sustainable financing. “DayOne has achieved the Leadership in Energy and Environmental Design (LEED) Gold certification from the United States, underscoring its position as a world-class sustainable data centre operator. As part of China’s GDS Holdings group, DayOne brings over two decades of experience and operates more than 90 data centres across the region, including facilities in Malaysia, Singapore, and Indonesia,” Rafe said at a press conference after the signing ceremony at DayOne’s Nusajaya data centre. Johor Menteri Besar Datuk Onn Hafiz Ghazi was also present at the event. Rafe noted that this initiative represents a first step towards establishing Johor as a regional data centre hub, with future plans to expand into the artificial intelligence (AI) sector. Meanwhile, Johor State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said the collaboration illustrates how strategic industry partnerships can contribute directly to digital transformation, sustainable development, and the creation of high-value jobs for Johoreans. He emphasised that the financing reflects strong confidence among domestic banks in Johor’s rapidly expanding data centre industry. “Just three years ago, Johor had virtually no data centres. Today, there are 13 in operation and another 15 under construction. This growth is driving positive economic impact, creating opportunities for contractors, engineers, surveyors, accountants, lawyers, and other professionals,” he said. “More importantly, we are now seeing the active involvement of local banks and Malaysian companies, a sign that the sector is both sustainable and competitive,” he added. Lee also highlighted that Johor recorded RM56 billion in approved investments in the first half of this year, underlining the state’s position as one of Malaysia’s leading investment destinations.

KUALA LUMPUR, Kenanga Investment Bank Bhd (Kenanga IB) has successfully issued the first tranche of its Additional Tier 1 Capital Securities (AT1CS) amounting to RM40 million in nominal value. The issuance carries a perpetual tenure with a non-callable period of five years. In a filing with Bursa Malaysia, Kenanga IB said the issuance forms part of its AT1CS Programme, which has a total size of up to RM500 million in nominal value. The securities offer a coupon rate of 5.75 per cent per annum, reflecting the bank’s efforts to strengthen its capital structure and maintain flexibility in funding. The investment bank noted that the proceeds from this tranche will be channelled towards a variety of purposes, including capital expenditure, working capital needs, refinancing or settlement of existing borrowings, as well as other general corporate requirements. Kenanga IB said the programme underscores its commitment to maintaining a healthy balance sheet and ensuring sufficient liquidity to support its business growth and expansion strategies. By tapping into the capital markets, the bank is positioning itself to enhance its resilience in a challenging financial landscape while creating a buffer for future investment opportunities. The Additional Tier 1 Capital Securities, often used by banks to comply with regulatory capital requirements under Basel III standards, provide a means of raising long-term capital while diversifying funding sources. For Kenanga IB, the issuance also signals confidence in its outlook and stability, given the demand from investors for such securities despite their perpetual nature and subordinated status. The group emphasised that this initial RM40 million issuance is only the beginning of a larger plan under the RM500 million programme, which will be carried out progressively depending on market conditions and funding needs.