Investment & Market Trends

KUALA LUMPUR, Evergreen Max Cash Capital Bhd (EMCC) has secured RM40 million in funding through a share subscription agreement aimed at expanding its Ar-Rahnu Tawarruq (Islamic pawnbroking) services. The funding will be raised via the issuance of 40 million Islamic Redeemable Convertible Preference Shares (RCPS-i) at RM1 each by EMCC’s wholly owned subsidiary, Evergreen Cahaya Holdings Sdn Bhd, to DPK Private Equity Sdn Bhd (DPKPE). According to the agreement signed on Wednesday, the RCPS-i will carry a preferential dividend rate of 8.5% per annum, payable cumulatively from distributable profits, though non-compounding. DPKPE will have the option to convert the RCPS-i into ordinary shares or redeem them at 1.6 times the total subscription amount, minus any dividends received, upon maturity or in the event of a default. The agreement also includes a put option that allows DPKPE to require EMCC to repurchase the RCPS-i or conversion shares within 90 days of certain trigger events, under agreed conditions. EMCC noted that the issuance will not dilute its share capital or impact earnings per share, but it will raise the company’s total borrowings from RM112.84 million to RM152.84 million as of December 2024, increasing its gearing ratio from 0.48 times to 0.64 times. On Wednesday, EMCC shares closed half a sen lower at 29.5 sen, down 1.7%, bringing its market capitalisation to RM328.9 million.

SEOUL, SK hynix posted a robust net profit of 6.99 trillion won (approximately US$5.1 billion) for the second quarter of 2025, representing a 69.8% increase from the same period last year, driven by strong demand for memory chips amid the AI boom. In a regulatory filing on Thursday, the South Korean chipmaker also reported an operating profit of 9.21 trillion won for the April–June period, up 68.5% year-on-year. Revenue rose 35.4% to 22.23 trillion won, reflecting continued growth in the semiconductor sector. Despite the strong year-on-year gains, the company’s net profit came in slightly below market expectations. Analysts surveyed by Yonhap Infomax, the financial data service of Yonhap News Agency, had forecast an average net profit of 7.16 trillion won. The results underscore SK hynix’s ongoing recovery following a prolonged industry downturn and highlight its position as a key beneficiary of rising AI infrastructure investment. However, the earnings miss suggests that market expectations are high as competition intensifies and global economic uncertainties persist. SK hynix, the world’s second-largest memory chipmaker, has seen growing demand for its high-performance DRAM and NAND products, particularly those used in data centers and AI applications. The company said it will continue to focus on advanced memory technologies to sustain momentum in the second half of the year.

SINGAPORE, Singapore-based Keppel has announced a strategic partnership with the Asian Infrastructure Investment Bank (AIIB) to invest up to $1.5 billion in sustainable infrastructure projects across the Asia Pacific region. The collaboration will focus on developing projects in key sectors such as renewable energy, power transmission and distribution, as well as other infrastructure linked to sustainability. Keppel, an asset manager and operator, said the partnership aims to support infrastructure development in emerging Asia Pacific economies, working alongside the regional multilateral lender. The initiative comes amid rising infrastructure demands across the region, fueled in part by the growing need for energy-intensive data centres. “Although investments in green infrastructure and digital connectivity are increasing, Asia Pacific still faces a significant infrastructure gap due to the pressures of rapid urbanisation and population growth,” said Keppel CEO Christina Tan. Let me know if you’d like this in press release format or shortened for headlines.

PETALING JAYA, Pavilion Real Estate Investment Trust (Pavilion-REIT) recorded a higher net profit of RM78.66 million for the second quarter ended June 30, 2025 (2Q25), up from RM67.12 million in the same quarter last year. The improved results were driven by strong contributions from Pavilion Bukit Jalil. The REIT’s revenue for the quarter rose to RM213.34mil. Quarterly revenue rose to RM213.34 million compared with RM201.3 million a year earlier, mainly due to higher occupancy and increased earnings from the exhibition centre and advertising spaces at Pavilion Bukit Jalil. Additional advertising income from a new LED screen at Elite Pavilion Mall also supported revenue growth. Net property income climbed 8% to RM133.3 million from RM123.47 million, despite property operating expenses rising by RM2.3 million (3%) due to marketing and advertising setup costs. For the first half of the year (1H25), Pavilion-REIT posted a net profit of RM169.08 million, up from RM150.28 million in the same period last year. Revenue for 1H25 increased to RM441.52 million from RM419.82 million, with net property income rising to RM272.58 million from RM256.05 million. Property operating expenses for the period were RM168.94 million, mainly due to advertising-related expenses and provisions for doubtful debts. Earnings per unit rose to 4.60 sen from 4.11 sen, and the REIT declared an interim distribution of 0.32 sen per unit, payable on August 27, 2025. Looking ahead, Pavilion-REIT said it remains cautious amid ongoing cost pressures, including the service tax on commercial rents, rising wages, and subsidy cuts. However, it will continue to actively manage its portfolio to maintain steady returns for unitholders. The return of international events and concerts is expected to support demand, especially in the hospitality sector, which is showing signs of recovery. As of end-June, Pavilion-REIT’s portfolio includes Pavilion Kuala Lumpur Mall, Pavilion Tower, Da Men Mall, Intermark Mall, Elite Pavilion Mall, Pavilion Bukit Jalil, Banyan Tree Kuala Lumpur, and Pavilion Hotel Kuala Lumpur. In May, unitholders approved the RM480 million acquisition of Banyan Tree and Pavilion Hotel, a move the REIT says will enhance long-term performance and strengthen its presence in Bukit Bintang. CEO Datuk Philip Ho said the acquisitions align with its focus on premium, retail-led integrated developments and will enhance synergies with existing assets. Pavilion-REIT also noted that it holds several rights of first refusal, placing it in a strong position to expand its net lettable area in the future

KUALA LUMPUR, Bank Negara Malaysia’s (BNM) international reserves rose slightly to US$120.9 billion as of July 15, 2025, compared to US$120.6 billion on June 30. In a statement, the central bank said the current reserves level is sufficient to cover 4.8 months of imports of goods and services and is equivalent to 0.9 times the nation’s short-term external debt. The reserves comprise: Foreign currency reserves: US$107.3 billion IMF reserve position: US$1.3 billion Special Drawing Rights (SDRs): US$5.9 billion Gold: US$4.1 billion Other reserve assets: US$2.3 billion As of July 15, total assets stood at RM613.13 billion, which include: Gold, foreign exchange & other reserves including SDRs: RM511.37 billion Malaysian government securities: RM13.62 billion Deposits with financial institutions: RM6.25 million Loans and advances: RM27.31 billion Land and buildings: RM4.58 billion Other assets: RM50 billion BNM also reported total capital and liabilities at RM613.13 billion, consisting of: Paid-up capital: RM100 million Reserves: RM189.98 billion Currency in circulation: RM172.10 billion Deposits from financial institutions: RM125.16 billion Federal government deposits: RM9.90 billion Other deposits: RM75.19 billion Bank Negara papers: RM10.08 billion SDR allocations: RM27.78 billion Other liabilities: RM2.84 billion

SINGAPORE, The Monetary Authority of Singapore (MAS) has appointed Avanda Investment Management, Fullerton Fund Management, and JP Morgan Asset Management as the first three fund managers under its S$5 billion Equity Market Development Programme, aimed at revitalising the local stock market. These managers will initially handle S$1.1 billion, with more appointments expected later this year. MAS received interest from over 100 global, regional, and local firms, and is reviewing applications in stages to speed up the rollout. The programme, first announced in February, supports fund managers who invest actively in Singapore-listed companies — especially small and mid-cap stocks — to boost market liquidity and attract more investors. The managers were chosen based on how well their investment strategies align with the programme’s goals, their ability to attract third-party capital, and their commitment to strengthening Singapore’s asset management and research scene. “We picked the first three managers who were ready, and will continue appointing more as reviews progress,” said MAS Deputy Chairman Chee Hong Tat. National Development Minister Chee Hong Tat, Deputy Chairman of The  Monetary Authority of Singapore (MAS) More Support for Equity Research MAS is also setting aside S$50 million from its Financial Sector Development Fund to improve equity research quality under the Grant for Equity Market Singapore (GEMS) scheme. Key enhancements: Maximum grant per research report raised from S$4,000 to S$6,000 Extra support for research covering new listings, private companies, or small and mid-cap stocks New grants for distributing research via digital platforms Listing grants extended to cover Singapore and Foreign Depository Receipts, and Exchange-Traded Funds (ETFs) For instance, issuers of: Depository receipts can get S$40,000 Primary-listed ETFs can receive up to S$250,000 Cross-listed or feeder ETFs can get S$180,000 Better Protection for Investors MAS will also consult on ways to help retail investors seek compensation more easily in cases of market misconduct. Proposals include: Letting investors “ride on” existing court or regulatory actions Enabling investor representatives to launch lawsuits on behalf of groups A grant scheme to help cover legal costs in serious cases “We want to strike a balance — make it easier for genuine claims, but avoid an overly litigious environment,” said Mr Chee. The Equity Market Development Programme is part of broader efforts — led by a review group formed in 2024 — to revitalise Singapore’s stock market, which has faced issues like low trading volumes, limited new listings, and poor valuations. Other ongoing ideas include improving investor engagement, refreshing the Catalist board for growth companies, and promoting cross-border listings with other exchanges. Singapore’s benchmark Straits Times Index is up 11% year-to-date, showing signs of recovery. However, MAS and SGX believe more must be done to attract capital, broaden participation, and enhance long-term market vibrancy.

HYDERABAD/BENGALURU – U.S. retail giant Costco Wholesale Corp is set to open its first technology centre in India, with plans to base the Global Capability Centre (GCC) in Hyderabad, according to two sources familiar with the development. The centre will focus on technology and research, working in tandem with Costco’s global teams. It will initially hire 1,000 employees, with plans to expand further, the sources said. Once seen as low-cost outsourcing units, GCCs have evolved into key hubs supporting global companies across various functions, including daily operations, finance, and R&D. India already hosts GCCs for major global brands such as JPMorgan Chase, Walmart, and Target in Bengaluru, and McDonald’s, Heineken, and Vanguard in Hyderabad. According to a report by Nasscom and consulting firm Zinnov, the market value of India’s GCC sector is projected to grow from $64.6 billion in fiscal 2024 to between $99 billion and $105 billion by 2030.

SINGAPORE, Optus Finance, a fully owned subsidiary of Singapore Telecommunications (Singtel), has priced S$160 million worth of 10-year fixed-rate notes at an annual coupon of 2.726%. The notes, denominated in Singapore dollars, are set to be issued on July 25 and will mature on July 25, 2035. The issuance is part of Optus Finance’s EUR3 billion Euro Medium Term Note Programme. According to Singtel, the net proceeds will be swapped into Australian dollars and used to support Optus’ general business operations. OCBC is acting as the sole lead manager and bookrunner for the offering. Singtel noted that this issuance forms part of its long-term financing strategy and helps extend the debt maturity profile of both the company and its subsidiaries. As of July 21, Singtel shares closed 2 cents lower at $4.15, down 0.48%.

PETALING JAYA: The Malaysia Co-Investment Fund (MyCIF) has recorded total co-investments of RM1.19 billion since its launch, continuing to play a crucial role in financing micro, small, and medium enterprises (MSMEs) nationwide. Securities Commission Malaysia building in Kuala Lumpur According to its 2024 annual performance report released yesterday, MyCIF invested RM264 million last year alone. The RM1.19 billion in total co-investments is 4.6 times higher than the RM260 million allocated by the government to date, reflecting what the Securities Commission (SC) called an “efficient use of public funds.” The SC, which manages MyCIF, also noted that the initiative attracted RM4.10 in private capital for every RM1 invested, marking a 21.4% increase in total private investments. Since it was established under Budget 2019 by the Finance Ministry, MyCIF has supported more than 9,500 MSMEs across Malaysia.

KUALA LUMPUR, Ancom Nylex Bhd is on track for stronger earnings in the coming quarters, supported by rising export demand and the launch of new agrochemical products. The group — which operates across agrochemicals, industrial chemicals, and logistics — is benefiting from solid demand in Southeast Asia, Latin America, and parts of Africa, where agricultural needs are growing due to unpredictable weather and food security concerns. Analysts highlight that Ancom Nylex’s latest range of herbicides and pesticides is gaining traction overseas. The company recently obtained regulatory approvals in several countries, giving it an edge as older agrochemical products are being phased out globally. “We expect solid growth in the agrochemical division, which now accounts for over half of group revenue,” said a local analyst. “New product launches, stronger exports, and favourable currency and commodity trends should help lift margins.” In its recent results, the company reported steady revenue growth and expects profits to rise in the second half as production increases and exports pick up. A newly opened plant in Klang is also expected to enhance efficiency and reduce costs, while helping the group meet environmental standards. Group CEO Lee Cheun Wei said Ancom Nylex remains focused on innovation and market expansion. “Our strength is in developing customised solutions for niche crops and underserved regions. We’re investing in R&D and growing our global footprint,” he said at an investor briefing. The company’s logistics division continues to support internal operations and bring in stable third-party revenue, helping offset raw material cost fluctuations. Meanwhile, the industrial chemicals and polymer segments are expected to remain stable, with growth driven mainly by agrochemicals. Analysts believe Ancom Nylex is well-positioned to benefit from the global shift toward safer and more sustainable agriculture products. Several brokerages have issued “Buy” calls on the stock, revising target prices upward in anticipation of stronger earnings through FY2026.