Investment & Market Trends

Citigroup Inc. has partnered with BlackRock Inc.’s HPS Investment Partners to launch a €15 billion (US$17.5 billion) private credit programme aimed at expanding direct lending across Europe, the UK and eventually the Middle East. Under the partnership, Citi will use its network and banking capabilities to source investment opportunities, focusing on borrowers across the EMEA region. The programme will target a wide range of sub-investment grade debt opportunities over an initial five-year period. Citi said the collaboration is designed to meet growing demand from corporate and sponsor clients seeking customised private credit financing solutions. The move highlights the increasing collaboration between major banks and investment firms as they expand into the fast-growing private credit market, despite heightened scrutiny surrounding the sector in recent months. The partnership also builds on Citi’s previous private credit push, following its US$25 billion direct lending programme with Apollo Global Management, Inc. launched in 2024.

Private equity firm Ekuiti Nasional Bhd (Ekuinas) has distributed RM350 million in dividends to its parent Permodalan Nasional Bhd (PNB) following its full exit from petroleum tanker operator Orkim Bhd. Ekuinas said the payout is part of the RM828 million in gross proceeds it generated from the sale of Orkim shares during its IPO and the subsequent transfer of its remaining 60% stake post-listing to PNB for long-term management. The dividend is intended to benefit PNB unit trust holders. Ekuinas originally acquired Orkim in 2014 for RM346.3 million and developed it into Malaysia’s leading Malaysian-flagged tanker operator with over 50% market share. Orkim was listed on the Main Market of Bursa Malaysia on Dec 9 last year at 92 sen per share. Ekuinas sold 300 million shares in the IPO through its investment vehicle Tetap Kuasa Sdn Bhd, raising RM276 million. The remaining stake was later transferred to PNB and Amanah Saham Bumiputera as part of its exit strategy. Ekuinas described the process as its first “Bumiputera relay race” milestone, marking a structured handover of assets to long-term institutional owners. Established in 2009, Ekuinas is mandated to support Bumiputera wealth creation and participation in the economy. It was previously under Yayasan Pelaburan Bumiputera before being placed under PNB in July 2025. Beyond Orkim, the firm also completed a divestment in Medispec Sdn Bhd and invested in Bluesify Solutions, reflecting its shift toward sectors such as cybersecurity and digital services. As of end-2025, Ekuinas reported a portfolio of 49 companies, with cumulative Bumiputera equity creation of RM7.1 billion and total shareholder value creation of RM8.5 billion. Healthcare now makes up 29% of its active portfolio, up from 24% a year earlier, as the group reduces exposure to the energy sector. Bumiputera participation in management across its portfolio companies also rose to 36.9%. Ekuinas also said its RM800 million private credit business completed its first two transactions in 2025, offering shariah-compliant financing solutions for mid-market companies. Chief executive officer Aliff Omar said the private credit segment provides more structured financing options while creating a pipeline for future equity investments. The firm also introduced a capacity-building programme targeting Bumiputera companies, with Kopi Hang Tuah selected as its first participant, focusing on governance, leadership and operational improvement.

Bank Negara Malaysia (BNM) has given RHB Bank Bhd approval to begin negotiations with Tokio Marine Asia Pte Ltd on a proposed insurance transaction involving its insurance arm. In a filing, RHB Investment Bank Bhd said the approval allows both parties to commence discussions on the potential disposal of up to 100% of RHB Bank’s stake in RHB Insurance Bhd to Tokio Marine Asia. The proposed deal also includes plans to merge RHB Insurance with Tokio Marine Insurans (Malaysia) Bhd to form a larger combined insurance entity, in which RHB Bank is expected to retain up to a 35% stake. BNM issued its “no objection” letter dated May 11, 2026, indicating that the regulator has no objection for the parties to proceed with negotiations. However, the approval is conditional on the discussions being completed within six months from the date of the letter. RHB stressed that this clearance only allows talks to begin and does not represent final regulatory approval of the transaction. Under the Financial Services Act 2013, the proposed deal will still require approval from the Minister of Finance, following BNM’s recommendation, before any binding agreements can be signed. The bank added that a further announcement will be made once definitive agreements are executed, should the transaction proceed. The proposed move is part of ongoing consolidation activity in the insurance sector, aimed at strengthening scale and competitiveness in Malaysia’s financial services industry.

Penang continued to perform strongly in its investment outlook in 2025, recording RM32.9 billion in approved investments, largely driven by high-technology manufacturing sectors, says Chief Minister Chow Kon Yeow. He said the state remains one of Malaysia’s key economic contributors, supported by strong investor confidence in its industrial ecosystem, skilled workforce, infrastructure and strategic position in the global supply chain. In a written reply during the Penang state legislative assembly sitting on Thursday (May 14), Chow said the state continues to attract quality investments, particularly in electrical and electronics (E&E), semiconductors and medical devices. He said the inflow was supported by policy stability and ongoing state government initiatives, which have helped strengthen investor confidence among both foreign and domestic players, according to data from the Malaysian Investment Development Authority (MIDA). On trade performance, Chow said Penang recorded RM573 billion in exports and RM382 billion in imports in 2025 through Penang Port and Penang International Airport, based on Statistics Department of Malaysia (DOSM) data. He noted that a detailed breakdown of trade specifically handled by the port and airport is not currently available. Overall, he said the strong export and import figures highlight Penang’s role as a key regional trade hub, particularly for high-value and technology-driven industries.

YTL Cement Bhd has increased its stake in Concrete Engineering Products Bhd to 70.22% following the close of its mandatory general offer (MGO), up from 53.49% previously. According to CIMB Investment Bank, the YTL Corporation Bhd unit received acceptances for 12.49 million shares, or 16.73%, bringing its total shareholding in the company to 52.4 million shares. Concrete Engineering Products manufactures and sells prestressed spun concrete piles and poles used in infrastructure, building and utility projects across multiple regions, including Asia, Africa, Oceania and the Gulf. The MGO was triggered after YTL Cement became a substantial shareholder in April, when it acquired a 53.49% stake in the company for RM103.79 million. The offer price was set at RM2.60 per share, and YTL Cement has stated its intention to maintain the company’s listing on Bursa Malaysia’s Main Market. Following the offer, Concrete Engineering Products’ shares have risen 40%, while year-to-date gains have more than doubled.

CapitaLand Investment, a Singapore-listed real estate asset manager majority owned by Temasek, expects to secure more large institutional mandates following its S$2.4 billion (US$1.9 billion) portfolio win from Income Insurance last month. A senior executive said such mandates typically come after years of engagement with investors before commitments are made. CapitaLand Investment’s CEO for Southeast Asia and global head of logistics and self-storage, Patricia Goh, said the group is now working to convert more potential investors it has engaged with over time. Patricia Goh, CapitaLand Investment’s CEO for Southeast Asia and global head of logistics and self-storage. She said the Income Insurance mandate was secured due to CapitaLand’s strong local presence, tenant relationships and track record in managing and optimising real estate assets. Under the mandate, CapitaLand Investment will manage Income Insurance’s property portfolio, including making new investments, divestments and asset enhancements. The company will also earn management, divestment and acquisition fees from the mandate. Goh added that some investors are shifting more capital towards Asia Pacific, with Singapore remaining attractive despite global economic and geopolitical uncertainties. CapitaLand said it will continue focusing on sectors where it has expertise, including logistics, retail, offices, mixed-use developments and self-storage.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Austria’s Oesterreichische Kontrollbank Aktiengesellschaft (OeKB) have signed a Framework Reinsurance Agreement to strengthen export credit and investment risk coverage. The agreement was signed during the 2026 Spring Meeting of the Berne Union in Astana, Kazakhstan. Under the arrangement, ICIEC will provide facultative reinsurance support for selected OeKB-backed insurance facilities on a case-by-case basis. The partnership aims to enhance support for Austrian exporters, lenders and investors involved in projects across ICIEC member countries. Both organisations said the collaboration will help expand insurance capacity, improve risk-sharing and support trade, investment and development-focused projects in key markets. ICIEC chief executive officer Dr Khalid Khalafalla said the agreement builds on the partnership established between both parties in 2023 and reflects their commitment to supporting sustainable economic growth through stronger trade and investment protection. OeKB senior director Gerhard Kinzelberger said the agreement would further support Austrian exporters operating in Organisation of Islamic Cooperation (OIC) member states, which are seen as growing and strategic markets. The partnership is also expected to strengthen market confidence and facilitate greater cross-border trade and investment flows between Austria and ICIEC member countries.

RHB Bank Bhd said it has received approval from Bank Negara Malaysia (BNM) to begin negotiations with Tokio Marine Asia Pte Ltd on a potential merger involving its insurance business. The proposed deal could see RHB dispose of up to 100% of its stake in RHB Insurance Bhd, which would then merge with Tokio Marine Insurans (Malaysia) Bhd. RHB may retain up to a 35% stake in the enlarged entity. In a Bursa Malaysia filing on Monday, RHB said BNM has no objection to both parties starting negotiations, with a six-month period given to finalise discussions. The bank noted that the approval is not final, as the proposal will still require approval from the Minister of Finance upon BNM’s recommendation before any definitive agreement can be signed. RHB said a detailed announcement will be made once definitive agreements are executed. This marks a renewed attempt at a similar transaction first proposed in 2019, which was later called off after both parties failed to agree on terms. Separately, RHB had signed new 20-year bancassurance and bancatakaful partnerships in 2025 with Tokio Marine Life and Syarikat Takaful Malaysia Keluarga Bhd, securing up to RM1.6 billion in access fees for the bank.

Practice Note 17 (PN17) company Reneuco Bhd will be delisted from Bursa Malaysia’s Main Market on May 12 after the regulator rejected its appeal for more time to submit a regularisation plan. Bursa Malaysia Securities said in a filing on Thursday that the decision follows its earlier rejection on April 6 of Reneuco’s request for an extension. Trading in the company’s shares was set for suspension from April 14 unless an appeal was made. Reneuco filed its appeal on April 13, the same day its adviser TA Securities Holdings Bhd stepped down from its role in the regularisation plan. The company was classified as a PN17 issuer in February 2024 after auditors were unable to obtain sufficient evidence to support its financial statements, particularly on receivables, payables, revenue and costs. Reneuco, which is involved in engineering, construction and energy infrastructure projects as well as property development, has also faced recent regulatory issues, including a Bursa reprimand over late financial reporting and the termination of a solar power agreement with Tenaga Nasional Bhd, which led to a RM45 million charge. As at end-December 2025, the group had cash of RM9.54 million against borrowings of RM291.05 million, with accumulated losses of RM152.4 million. The company’s shares last traded at half a sen, giving it a market capitalisation of RM5.7 million.

Duty Free International Ltd, a Singapore-listed unit that is 75.53% owned by Atlan Holdings Bhd, has proposed a renounceable rights issue of warrants. The duty-free retail operator said in a Singapore Exchange filing that it plans to issue up to 399.4 million warrants on the basis of one warrant for every three existing shares. The proceeds will be used for working capital and future growth plans. The warrants will have a five-year exercise period, an issue price of 0.1 Singapore cent each, and an exercise price of 8.5 Singapore cents, bringing the total to 8.6 Singapore cents — a 17.8% premium to its last closing price. Duty Free International said the fundraising will strengthen its financial position and provide flexibility to support expansion opportunities. It expects to raise about S$200,000 (RM617,890) from the subscription, while full exercise of the warrants could generate up to S$33.9 million (RM104.73 million). The warrants will not be underwritten, but parent company Atlan has undertaken to subscribe to its entitlement and any remaining unsubscribed portion. Duty Free International said it has not carried out any equity fundraising in the past 12 months. Atlan shares closed 1.75% lower at RM2.80 on Thursday, valuing the group at RM710.22 million.