Investment & Market Trends

KUALA LUMPUR, Kenanga Investment Bank Bhd (Kenanga IB) has raised its job win forecasts for Gamuda Bhd to RM22 billion in FY2026 and RM27 billion in FY2027, up from RM20 billion and RM25 billion previously. The increase was largely attributed to additional projects in Australia. In a research note, the bank maintained its FY2025 job win estimate at RM17 billion. It projected Gamuda’s construction revenue to hold steady at RM15 billion in FY2026 before climbing to RM22 billion in FY2027, compared to its earlier forecast of RM18 billion. Kenanga IB said there are no changes to earnings forecasts for FY2025 and FY2026. However, it revised its FY2027 earnings forecast upward to RM1.95 billion from RM1.69 billion. The investment bank highlighted that data centres remain the main driver of Malaysia’s tender activity, with five to seven project results expected soon. The outcome of Pearl Computing’s data centre in Springhill is anticipated in 2026, with Gamuda expected to secure at least half of the upcoming contracts. Other potential wins include the Ulu Padas water supply project, the Penang Light Rail Transit Package 3, and the Kerian water treatment and distribution infrastructure, which is likely to be awarded in the first half of 2026. Gamuda is also seen as a strong contender for another project in Taiwan. Kenanga IB believes these developments will help Gamuda achieve its target outstanding order book of RM40 billion to RM45 billion by end-2025. In addition, Gamuda expects more renewable energy and transmission projects in Australia, in line with the country’s push to reach 82% renewable generation by 2030. “Gamuda’s diversification and earnings visibility give us confidence in its growth trajectory,” the bank said, maintaining its ‘outperform’ call on the stock with a higher target price of RM6.10.

Sime Darby Property Bhd is in discussions with several banks to secure a loan of up to RM3 billion (US$714 million) to finance the construction of a state-of-the-art data centre that will be leased to Google, sources familiar with the matter revealed. The proposed loan is expected to have a five-year tenure with an option to extend for up to two additional years. Negotiations are still ongoing, and terms may be subject to change. Sime Darby Property has yet to issue an official statement on the matter. Part of one of Malaysia’s largest multinational groups, Sime Darby Property is accelerating its push into the data centre sector to meet the surging demand driven by artificial intelligence (AI) adoption. The global AI boom has spurred a wave of record-breaking financing deals for data centre operators across Asia. Earlier this year, Bain Capital-owned Bridge Data Centres secured a US$2.8 billion loan for its Malaysian operations, underscoring the country’s rising prominence as a regional data hub. Google announced in 2024 that it would build its new Malaysian data centre at Sime Darby’s Elmina Business Park, located near Kuala Lumpur, as part of a US$2 billion investment to strengthen its cloud and AI infrastructure in Southeast Asia. The facility is expected to meet global standards in energy efficiency and security, positioning Malaysia as a key player in the region’s fast-growing digital economy.

GEORGE TOWN, Advanced Micro Devices Inc (AMD), a Nasdaq-listed global semiconductor leader, has officially opened a state-of-the-art office and engineering lab facility in Bayan Lepas, marking a significant expansion of its research, development, and business services footprint in Malaysia. Located at GBS by the Sea, the 19,416.74-square-metre facility is designed to accommodate more than 1,200 employees and features advanced engineering labs to drive innovation in semiconductor design. Chief Minister Chow Kon Yeow said AMD’s latest milestone, which coincides with the company’s over 50 years in Penang, reinforces the state’s status as a premier investment destination for high-tech industries. “As technology evolves towards frontier fields such as AI, Penang, through InvestPenang, remains committed to supporting visionary investors like AMD. We look forward to the first generation of ‘Made by Malaysia’ chips being designed, developed, and launched from Penang onto the global stage,” he said during the launch of AMD @ GBS by the Sea. Malaysian Investment Development Authority (MIDA) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid described the new facility as a testament to the strong and evolving partnership between Malaysia and AMD. “By anchoring R\&D and advanced capabilities here, AMD is creating high-value jobs and nurturing a vibrant ecosystem where local talent can thrive alongside global innovators. This aligns with the New Industrial Master Plan 2030, the National Semiconductor Strategy, and the 13th Malaysia Plan,” he said. In a statement, AMD said the new Penang hub underscores its long-term commitment to Malaysia and its confidence in the region’s skilled workforce. The facility will play a pivotal role in driving the company’s growth while strengthening Malaysia’s position in the global semiconductor value chain.

KUALA LUMPUR, Malaysia’s domestic latex production remains far below the needs of the latex-based product industry, which accounts for 75% of the nation’s rubber-based product exports, according to the Ministry of Plantation and Commodities (KPK). Currently, locally produced natural latex supplies only about 5% to 10% of industry demand, with the remainder imported mainly from Thailand and Indonesia.“This gap exists because most smallholders in Malaysia produce cup lumps instead of latex, as latex tapping and collection require more labour and infrastructure,” the ministry said in a statement on the Dewan Rakyat portal today. KPK was responding to a question from Bakri Jamaluddin (PN–Tangga Batu) on the extent to which domestic production can meet industry needs. In 2024, Malaysia produced just 19,274 tonnes of latex, compared with local usage of 215,413 tonnes. To bridge the shortfall, the country imported 220,282 tonnes of latex valued at RM2.33 billion — the primary raw material for latex-based products. Malaysia’s annual latex requirement is estimated at 215,000 to 250,000 tonnes. The ministry warned that if local output continues to decline, imports will rise further to support downstream industries, particularly rubber glove manufacturing, which remains the largest contributor to the country’s rubber export earnings.

SINGAPORE, On Monday (Aug 11), asset manager Keppel announced it will sell M1’s telecom business to Simba Telecom for an enterprise value of S$1.43 billion (US$1.11 billion). Keppel will receive S$1 billion in cash for its 83.9% stake in M1 Limited. It will keep M1’s fast-growing information and communications technology (ICT) operations, which include data centers and subsea cables. Keppel expects to complete the sale “within the next few months” and said the deal will benefit Singapore’s telecom industry and consumers by consolidating the market and creating synergies between the two telcos, both known for innovation. The company highlighted that this will combine M1’s digitally advanced, cloud-native network and its ability to offer personalized services with Simba’s innovative digital consumer model. Calling the sale a “strategic path to sustainable growth” for Singapore’s telecom sector, Keppel CEO Loh Chin Hua said, “M1 and Simba are a highly complementary pair. Together, they can scale more efficiently, optimize infrastructure, and accelerate 5G and digital investments. This will improve service quality and help build a more resilient, future-ready telecom industry.” Keppel also noted that the sale aligns with its strategy as an asset-light global manager and operator, allowing it to focus more on digital infrastructure within its connectivity segment. The company expects an accounting loss of about S$222 million from the transaction. It said Simba made the strongest bid and that the merger is expected to unlock new revenue opportunities. Simba is fully owned by Australian-listed Tuas. Tuas said it plans to raise at least A$416 million (US$271 million) through a share placement and purchase plan. Tuas described the acquisition of M1’s telecom business as “transformational,” saying it will expand Simba’s mobile presence, speed up its broadband growth, and give it an established enterprise platform. Regulatory filings show Simba currently holds 1.5% of Singapore’s prepaid mobile market, 14.4% of postpaid mobile, and 0.9% of broadband. M1 has 13.5% prepaid, 23.9% postpaid, and 15% broadband market shares. If approved, Simba aims to capture 15% prepaid, 38.3% postpaid, and 15.9% broadband market shares in Singapore. M1’s telecom operations (excluding the parts Keppel will retain) generated revenues of S$806.1 million and EBITDA of S$195.4 million for the financial year ending April. Founded in 1994 with Keppel as a founding investor, M1 launched commercial services in 1997 and serves over two million customers with mobile, fixed-line, and fiber services. Simba is Singapore’s fourth fully licensed mobile operator with 4G and 5G spectrum rights. Since launching commercially in 2020 (formerly known as TPG Singapore), it has reached 500,000 active subscribers as of April 2022. Keppel’s shares, currently under trading suspension due to the deal, have risen 25.4% year-to-date, outperforming the 11.9% gain in Singapore’s benchmark index. Shares closed at S$8.58 on August 8. The deal awaits approval from Singapore’s Infocomm Media Development Authority (IMDA). IMDA confirmed both parties have signed the sale and purchase agreement and that it will review the transaction under the Telecom and Media Competition Code, ensuring no significant harm to competition while benefiting consumers and supporting sustainable market growth.

KUALA LUMPUR, Master Tec Group Bhd’s net profit for the second quarter (Q2) ended June 30, 2025, declined to RM6.92 million from RM8.70 million a year earlier. Despite the profit drop, the company achieved a record quarterly revenue of RM104.82 million in Q2 2025, up 43.9% from RM72.84 million in the same period last year, reflecting strong growth across its core business segments. The impressive revenue performance was mainly driven by the manufacturing segment, which accounted for RM91.04 million or 86.8% of total Q2 revenue. Copper-cored low-voltage (LV) power cables remained the top contributor with RM49.32 million in revenue, while aluminium-cored LV power cables rose significantly to RM39.68 million from RM22.86 million in the prior-year quarter. For the first half of 2025, Master Tec posted revenue of RM175.06 million, marking a 25.1% increase from RM139.99 million in the same period last year. However, pre-tax profit slightly declined by 4.5% year-on-year to RM13.25 million, and net profit fell to RM11.47 million from RM13.69 million in 1H FY24. CEO Tee Kok Hwa attributed the results to the company’s strategic focus on diversifying revenue streams and expanding capacity. “As we continue to grow, we remain committed to improving operational efficiency, enhancing product quality, and broadening our market reach,” he said. Master Tec also announced a first interim single-tier dividend of 69 sen per share for FY25, totaling RM7.04 million, as a token of appreciation to its shareholders.

SINGAPORE, StarHub has acquired full ownership of MyRepublic’s broadband business in a S$105.2 million (US$81.8 million) deal, the telco announced on Tuesday (Aug 12). The purchase covers the remaining 49.9% stake in MyRepublic Broadband — on top of the 50.1% already owned — along with the MyRepublic brand in Singapore and key operational assets tied to its broadband operations. The deal includes S$94.3 million for the shares and S$10.9 million for the assets, according to a Singapore Exchange filing. StarHub said the move strengthens its multi-brand strategy in the local broadband market, enabling service differentiation and cross-product bundling. “This isn’t just an acquisition, it’s an acceleration,” said CEO Nikhil Eapen, noting that full ownership will allow the company to “move faster, go further, and serve customers with greater clarity and care.” He added that Singapore’s broadband sector is entering a consolidation phase, where scale, quality and resilience are critical. StarHub first acquired a majority stake in MyRepublic Broadband in 2022 with regulatory approval from the Infocomm Media Development Authority.

KUALA LUMPUR, VentureTECH Sdn Bhd has made a strategic investment in Y Us Sdn Bhd (Evenesis) to enhance its event management platform, meet evolving customer needs, strengthen its market position, and drive regional expansion. Evenesis, a Bumiputera-owned company, offers an end-to-end Event Management Software (EMS) and managed services platform designed to transform how business events are planned, delivered, and evaluated. Having supported more than 3,000 events locally and abroad, the company now aims to expand into key regional markets such as Singapore, Indonesia, and Saudi Arabia, where demand for digital event solutions is growing in line with the global shift toward immersive and hybrid events. VentureTECH CEO Ahmad Redzuan Sidek said the investment underscores its role in nurturing homegrown companies in high-value, technology-driven sectors. “By investing in companies like Evenesis, we are building a new generation of Bumiputera champions who can drive digital transformation, strengthen Malaysia’s regional presence, and contribute to the nation’s innovation and industrial agenda,” he said. Evenesis founder and CEO Mohd Yusno Mohd Yunos described the partnership as a significant milestone that validates the company’s vision to revolutionise the events industry. “With VentureTECH’s backing, we can now scale regionally, enhance our platform, and deliver greater value to our clients while showcasing Bumiputera innovation on the global stage,” he said. VentureTECH is wholly owned by the Malaysian Industry-Government Group for High Technology (MIGHT) and focuses on catalysing the growth of local industries — particularly Bumiputera — in high-value-added and high-tech sectors through equity investments.

KUALA LUMPUR, DRB-Hicom Bhd has announced plans to acquire the Malaysian operations of aerospace manufacturer Spirit AeroSystems in a deal valued at US$95.2 million (RM426.1 million). Upon completion by year-end, Spirit AeroSystems Malaysia Sdn Bhd will come under the full ownership of Composites Technology Research Malaysia Sdn Bhd (CTRM), DRB-Hicom’s wholly owned aerospace subsidiary. DRB-Hicom described the acquisition as a strategic move to strengthen CTRM’s position in the aerospace sector by expanding its aerostructure capabilities. Spirit Malaysia, based at the Malaysia International Aerospace Centre in Subang — its Southeast Asian hub — supplies key components for major Airbus and Boeing programmes, including the A220, A320, A321, A350, B737 and B787. In 2024, it posted a net profit of RM70.1 million on revenue exceeding RM1 billion. CTRM specialises in composite manufacturing, producing wing components for the A320, A350 and A380, nacelles for the A350, and various aerostructures for the A400M, B737, B787, B767 and B777. The combined operations are expected to deliver greater scale, stronger customer relationships, improved pricing power, and enhanced competitiveness across the supply chain. DRB-Hicom said the integration will also boost CTRM’s ability to secure integrated work packages and new contracts. The acquisition coincides with Boeing’s planned takeover of Spirit AeroSystems’ US parent, while Airbus is set to assume certain Spirit assets tied to its programmes. Should regulatory approvals from the European Commission or US Federal Trade Commission be denied, or if government opposition arises, the seller will pay a US$7 million termination fee. AmInvestment Bank is acting as principal adviser for the transaction. Shares in DRB-Hicom closed unchanged on Monday following the announcement.

KUALA LUMPUR, Hong Seng Consolidated Bhd has announced the sale of its 32.6% equity stake in lingerie and apparel manufacturer Classita Holdings Bhd to NexG Sdn Bhd for RM60.3 million. In a filing with Bursa Malaysia, Hong Seng said the disposal aligns with its strategy to streamline its investment portfolio and unlock value from non-core assets. The divestment is expected to provide the group with additional working capital to support its core business operations and future growth initiatives. The transaction involves the sale of 256.3 million ordinary shares in Classita, formerly known as Caely Holdings Bhd, at a price of 23.5 sen per share. The disposal consideration will be satisfied entirely in cash. Hong Seng noted that the stake sale is not expected to have a material impact on the group’s earnings for the financial year ending Sept 30, 2025, but will strengthen its liquidity position. Classita, listed on the ACE Market, is involved in the design, manufacture, and retail of women’s lingerie, undergarments, and apparel, with an expanding presence in both local and overseas markets. The deal is expected to be completed in the third quarter of 2025, subject to the fulfilment of customary conditions and regulatory approvals.