Investment & Market Trends

PETALING JAYA, RHB Bank Bhd has signed exclusive 20-year bancassurance and bancatakaful agreements with Tokio Marine Life Insurance Malaysia Bhd and Takaful Malaysia, in deals valued at up to RM1.62 billion. Under the agreements, RHB Bank will serve as the exclusive distributor of Tokio Marine Life’s conventional life insurance products. Meanwhile, its wholly owned subsidiary, RHB Islamic Bank Bhd, will distribute family and general takaful products offered by Syarikat Takaful Malaysia Keluarga Bhd (STMKB) and its subsidiary, Syarikat Takaful Malaysia Am Bhd. The parties have also entered into a framework agreement to outline the overall structure and coordination of the partnerships. In a filing with Bursa Malaysia, RHB stated that the RM1.62 billion access fee reflects the expected insurance and takaful business volume to be generated over the 20-year period, through both its branch network and digital platforms. “This includes projected sales of insurance and takaful products through physical branches and online channels, based on past performance and future growth projections,” the bank said. Proceeds from the access fee will be channelled towards working capital requirements and future growth plans. RHB added that the partnership will provide a strong upfront profit contribution, ensure long-term revenue stability, and allow further development of its operational and digital integration with its insurance partners. In a separate filing, STMKB noted that while the agreement is not expected to significantly impact earnings for the financial year ending Dec 31, 2025, it is expected to contribute positively to the group’s long-term profitability.

Hong Kong’s competition watchdog has accepted a set of commitments from China Mobile Hong Kong (CMHK) regarding its proposed acquisition of broadband provider HKBN Ltd, effectively allowing the merger to move forward without further investigation. Announced in December, the deal underwent a review by the Communications Authority under the Competition Ordinance due to concerns over its potential impact on market competition—particularly within the fixed local access network segment. To address these concerns, CMHK submitted a series of commitments last month. The authority then launched a consultation, inviting feedback from industry stakeholders and interested parties. One key issue raised during the process involved mobile backhaul infrastructure, which supports the transmission of data from mobile devices to broader networks. In response, CMHK revised its commitments to reflect industry input. Following the amendments, the authority concluded that the revised commitments adequately addressed competition concerns. It confirmed on Friday that the merger could proceed, noting CMHK’s active engagement to meet regulatory requirements.

KUALA LUMPUR, BWYS Group Bhd has signed a sale and purchase agreement with Yusin Machinery (Malaysia) Sdn Bhd to dispose of its industrial properties in Banting, Selangor, for RM67 million in cash. In a statement, the sheet metal products manufacturer and scaffolding supplier said the properties are situated in Kawasan Perindustrian Olak Lempit, spanning approximately 339,386 square feet of developed industrial land. BWYS Group Bhd managing director Kang Beng Hai The site includes three blocks of four-storey office buildings, three blocks of single-storey detached factory buildings, and an ancillary structure. BWYS expects to record a gain of about RM33.8 million from the sale, which will be reflected in its financial results for the year ending December 31, 2026. Managing director Kang Beng Hai noted that the assets were purchased in January 2019 for RM28 million, and the current deal presents a timely opportunity to realise substantial value from the investment. “The proceeds will support our ongoing operations and improve business efficiency. This strategic move enables us to reallocate resources to better align with our long-term growth plans,” he said. Out of the RM67 million proceeds, RM37.9 million will be used to repay bank borrowings, potentially saving the group RM1.1 million in annual interest. Another RM24 million is earmarked for raw material purchases and operational needs, while RM5.1 million is allocated for estimated disposal-related expenses. The transaction is expected to be completed in the first quarter of 2026, pending shareholders’ approval and relevant regulatory clearances.

KUALA LUMPUR, Fraser & Neave Holdings Bhd (FNHB) reported a net profit of RM84.81 million for the third quarter ended June 30, 2025 (3QFY2025), down from RM121.62 million in the same period last year. The drop in profit was mainly due to weaker earnings and unrecognised deferred tax assets related to losses from the group’s dairy farm operations, FNHB said in a filing with Bursa Malaysia. Revenue for the quarter also declined by 4.5% to RM1.24 billion, compared to RM1.30 billion a year ago. This was mainly driven by softer performance in its food and beverage segments in both Malaysia and Indochina, reflecting cautious consumer spending after festive seasons and fewer tourist arrivals in Thailand. However, strong double-digit growth in exports to other markets helped ease the impact, though shipments to Cambodia were disrupted by the Thailand-Cambodia border closure. Looking ahead, FNHB said it expects continued uncertainty across its key markets due to cautious consumer sentiment, rising costs, and geopolitical tensions. In response to the border issues, the group activated safety measures and rerouted exports to Cambodia via sea from Malaysia to maintain supply. FNHB added that it will continue to closely monitor the situation, refine its procurement and sales strategies, and focus on innovation and healthier product offerings to drive resilience.

TOKYO, Nintendo has sold over six million units of its new Switch 2 console in just seven weeks since its launch in June, signaling strong early demand for the device. Despite launching during ongoing global trade tensions, the Japanese gaming giant demonstrated effective supply chain management, with analysts saying the figures reflect high pent-up demand for an upgraded version of the original Switch. “This shows just how eager fans were for a next-generation Switch,” said Serkan Toto, founder of game consultancy Kantan Games. In its latest earnings report, Nintendo said it is sticking to its full-year sales forecast of 15 million Switch 2 units by March 2026. The Kyoto-based company also reported a 4% rise in operating profit to 56.9 billion yen (US$378 million) for the April–June quarter, beating analyst expectations. Nintendo noted that current U.S. tariff policies and market changes have not significantly affected its earnings outlook. The Switch 2 debuted on June 5 alongside major game titles such as Mario Kart World and an enhanced Legend of Zelda with improved graphics. During the quarter, Nintendo sold 8.67 million Switch 2 game units, with Mario Kart World frequently included in console bundles. The company also released Donkey Kong Bananza on July 17, which received a strong rating of 92/100 on Metacritic, earning widespread praise. “Nintendo should ride this strong momentum into the holiday season, especially with no competition from GTA 6 this year,” Toto added, referring to the delay of Grand Theft Auto VI to 2026, which was expected to boost rival consoles like Sony’s PlayStation 5. Nintendo’s shares fell 0.75% before the earnings release but are up about 33% so far this year. ($1 = 150.58 yen)

SINGAPORE, Oversea-Chinese Banking Corporation (OCBC) has revised its 2025 economic outlook downward, citing persistent global tariff uncertainties and geopolitical tensions, even as the bank posted resilient earnings for the second quarter of 2025. OCBC reported a net profit of S$1.81 billion for Q2, in line with analyst expectations and slightly above the S$1.77 billion posted in the same period a year earlier. The bank attributed the performance to steady loan growth, improved net interest margins, and a strong showing from its wealth management and insurance units. However, Group CEO Helen Wong said that continued friction in global trade policies — particularly between the US and China — is clouding the regional economic outlook. “While our core businesses remain stable, the prolonged uncertainty around tariffs and protectionist policies continues to weigh on investment confidence and supply chain stability,” she noted during the earnings briefing. OCBC’s key markets, including Singapore, Malaysia, and Greater China, have seen moderate growth, but Wong highlighted that the bank is adopting a “more measured stance” in forecasting next year’s business climate. The lender now expects GDP growth across its core ASEAN markets to moderate to 3.5%–4.0% in 2025, down from its earlier projection of 4.3%–4.7%. It also warned of potential pressure on asset quality and loan demand if trade disruptions persist. Despite the cautious outlook, OCBC’s fundamentals remain solid. Net interest income rose 8% year-on-year, underpinned by higher interest rates and sustained lending activities. Fee income, however, declined slightly due to lower investment product sales amid market volatility. The bank maintained its interim dividend at S$0.30 per share, reflecting confidence in its capital position. OCBC’s Common Equity Tier 1 (CET1) ratio stood at 15.2% as of end-June, well above regulatory requirements. Looking ahead, OCBC plans to maintain its focus on regional expansion, sustainable finance, and digital transformation. “We are actively investing in digital platforms and green financing initiatives to support long-term growth,” Wong added. Still, she cautioned that the full-year guidance would remain conservative unless there is meaningful progress in resolving major global trade disputes.

KUALA LUMPUR, Malaysia plans to purchase another 30 Boeing aircraft as part of the second phase of its procurement deal with the United States, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said the move is part of ongoing reciprocal negotiations aimed at addressing Malaysia’s trade deficit with the US. “To help reduce the trade imbalance, Malaysia will proceed with large-scale purchases, including Boeing aircraft. Malaysia Aviation Group (MAG) has already committed to buying 30 aircraft worth US$9.5 billion under the first phase, and another 30 aircraft valued at US$9.5 billion in the second phase,” Zafrul said at a special press conference on the US tariff announcement. The United States recently announced a reduction in tariffs on Malaysian exports, cutting them to 19% from the previously planned 25%. MAG had earlier confirmed its plan to upgrade its fleet with new Boeing aircraft, reinforcing Malaysia’s position in the global aviation industry. The order includes 30 aircraft—18 Boeing 737-8s and 12 Boeing 737-10s—powered by CFM LEAP-1B engines, with an option to purchase 30 more. These deals are part of broader negotiations between the US and several countries—including Japan, the UAE, Indonesia, Cambodia, and Bangladesh—aimed at securing aircraft orders in exchange for lower US tariffs.

Singapore’s GIC Pte Ltd has emerged as the frontrunner to acquire a significant minority stake in a Spanish fibre-optic broadband joint venture owned by MasOrange SL and Zegona Communications plc, according to sources familiar with the matter. GIC is currently in discussions with the owners about purchasing a 20% to 30% stake in the venture. The deal could value the business—which covers over 12 million premises—at between €6 billion and €7 billion (US$6.9 billion to US$8.1 billion or RM29.3 billion to RM34.2 billion), including debt. Although the talks are at an advanced stage, the agreement is not yet final and could still face delays or fall through, the sources said. The joint venture was formed in January by Vodafone Spain (owned by Zegona) and MasOrange, with an estimated enterprise value of €8 billion to €10 billion. The companies had announced plans to bring in an investor for a 40% stake. Orange SA’s chief financial officer, Laurent Martinez, recently expressed confidence that the deal could be completed by year-end. Spain boasts one of Europe’s most extensive fibre broadband networks. However, heavy competition due to overlapping coverage has impacted profitability. Despite this, the sector remains attractive to long-term investors like pension funds and private equity firms because of its stable returns and relatively low operating costs once the infrastructure is in place. MasOrange was formed through the merger of Masmovil Ibercom SA and Orange’s Spanish operations. Orange holds a 50% share in the joint venture, while the remaining stake is owned by investment firms Cinven, KKR & Co., Providence Equity Partners, MasOrange’s CEO, and others. Representatives for Orange, GIC, Zegona, Cinven, MasOrange, and KKR declined to comment, while Providence did not respond to inquiries.

Grab Holdings surpassed Wall Street forecasts for its second-quarter revenue, driven by increased consumer spending on its ride-hailing and food delivery services despite global economic uncertainty. The company’s strategy to become a comprehensive “superapp”—combining ride-hailing, food and grocery delivery, and other digital offerings—continues to attract more users, many of whom are subscribing to its bundled services. While global trade tensions and rising costs in Southeast Asia have created economic headwinds, Singapore’s economy showed resilience, expanding 4.3% in Q2 and avoiding a technical recession. “We’re seeing that making our services more affordable fuels growth and shields us from broader global macro pressures,” said Grab CFO Peter Oey in an interview with Reuters. Grab has been targeting price-conscious users while expanding its driver network to meet growing demand. It reported $819 million in revenue for the quarter, topping analysts’ estimates of $811.3 million, according to LSEG data. Indonesia was a standout market, which Grab once viewed as underpenetrated. The company now sees it as a key growth driver due to its large population. Oey emphasized that Indonesia is profitable and a priority for further investment. As Southeast Asia’s digital services sector consolidates, Grab has been linked to possible acquisitions. However, Oey clarified that the company is not in talks with Indonesian competitor GoTo, following reports of potential interest. Grab reported a quarterly profit of $20 million, a significant turnaround from the $68 million loss in the same period last year.

KUALA LUMPUR: UMS Integration Ltd made a positive start on its debut on Bursa Malaysia’s Main Market, becoming the first Singapore-listed company to achieve a secondary listing in Malaysia. UMS Integration Ltd CEO Luong Andy (fifth from left), its chairman Datuk Phang Ah Tong (sixth from left), Deputy Finance Minister Lim Hui Ying (seventh from left) and the company’s board members, with executives from CGS International and TA Securities at its listing ceremony on Friday.  The stock opened at RM5.15, a 3% increase from its reference price of RM5. It peaked at RM5.39 and was trading at RM5.27 as of 9.15am, with over 1.1 million shares traded. At that price, the company’s market capitalisation stood at RM3.7 billion. Unlike a typical IPO, the listing was done by way of introduction, meaning no new funds were raised. However, CEO Luong Andy made 10 million shares available for trading on Bursa Malaysia. UMS Integration manufactures precision modules, components and sub-assemblies for the semiconductor, aerospace, and factory automation sectors. Luong said the listing opens up opportunities to expand the company’s investor base, improve stock liquidity, and access multiple capital markets for future fundraising. He also expressed confidence in UMS Integration’s growth prospects, especially in advancing high-precision parts for semiconductor packaging. For the first quarter of 2025, the group posted a net profit of S$10.1 million (RM33.28 million) on revenue of S$57.7 million, with most of its income coming from the semiconductor business. Aerospace contributed 11%, with the remainder from other segments. The company’s balance sheet remains healthy, holding S$81.4 million in net cash (S$0.11 per share) as of end-March. It also paid a tax-exempt interim dividend of S$0.01 per share on July 24. TA Securities served as the principal adviser, while CGS International acted as financial adviser for the listing.