Investment & Market Trends

OSAKA, ASEAN has declared its readiness to upgrade its free trade agreement (FTA) with Japan, aiming to refresh the long-standing pact to reflect today’s economic landscape. ASEAN Deputy Secretary-General for the Economic Community Satvinder Singh said the ASEAN–Japan Comprehensive Economic Partnership (AJCEP), signed in 2008, needs to be updated in line with evolving market realities. “The current FTA was designed decades ago. The timing is right for a review, much like how we have upgraded agreements with other major partners,” he said at a joint press conference with Malaysia’s Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz. Satvinder highlighted ASEAN’s recent success in modernising trade agreements with China, Australia, New Zealand, and India — adding new focus areas such as e-commerce, innovation, sustainability, and global supply chain resilience. “Japan should naturally be one of ASEAN’s priorities in the coming years. We are ready to engage whenever Japan is ready,” he noted, adding that current global economic challenges make such an upgrade even more valuable. He said ASEAN fits seamlessly into Japan’s global strategy, especially in supporting supply chain diversification, and pointed to growing interest from Japanese companies in strengthening their business presence in the region. Meanwhile, Tengku Zafrul said the upcoming Expo 2025 Osaka offers an ideal opportunity for ASEAN to highlight its identity, diversity, and unity on the world stage. “We look forward to welcoming Japan to the ASEAN Economic Ministers’ Meeting in September and the ASEAN Leaders’ Summit in October. Continuous dialogue builds trust, and that trust paves the way for a stronger ASEAN and a better Asia for future generations,” he said.

JAKARTA, Bank Rakyat Indonesia (BRI), the nation’s largest lender by assets, has officially opened a new branch in Taipei, marking a significant expansion into East Asia. The move aims to capture opportunities from growing trade ties and remittance flows between Indonesia and Taiwan. Strategically located on Nanjing East Road in Taipei’s Zhongshan District, the branch is positioned to serve a market with substantial growth potential, fueled by rising cross-border transactions and a sizeable Indonesian community in Taiwan. Hery Gunardi, president director of Bank Rakyat Indonesia (BRI), delivers a speech during the openin of the BRI Taipei branch in Taiwan, Friday, Aug. 8, 2025.  BRI President Director Hery Gunardi said the Taipei branch will play a pivotal role in supporting the financial needs of approximately 360,000 Indonesian migrant workers in Taiwan — a key contributor group to Indonesia’s economy. “As the only Indonesian bank branch in Taiwan, BRI Taipei is committed to providing comprehensive banking services, including remittances, savings, and investment products, to help our migrant workers plan and secure their financial future,” Hery said. The branch offers integrated financial solutions such as savings products, financing services, remittance facilities, and foreign exchange transactions. It has also launched a BRI ATM card that can be used across Taiwan’s banking network. Beyond serving the Indonesian community, BRI hopes to position the branch as a gateway for Taiwanese investment into Indonesia by offering competitive investment returns. “We see this as an opportunity to facilitate more Taiwanese investors entering the Indonesian market,” Hery added. Rp 40 Trillion in Annual Remittances Arif Sulistiyo, head of the Indonesian Economic and Trade Office (KDEI) in Taipei, welcomed the expansion, noting that it would help strengthen economic cooperation between the two economies. Taiwan is home to nearly 400,000 Indonesians — the third-largest overseas Indonesian community after Malaysia and Saudi Arabia — with the majority working as caregivers and factory workers. These migrant workers send more than Rp 40 trillion (US$2.5 billion) home annually. The Taipei branch secured its full retail foreign bank license in 2021 from Taiwanese regulators, enabling it to offer a complete suite of banking services, including deposits, lending, remittances, trade financing, and treasury operations.

KUALA LUMPUR, The Malaysia External Trade Development Corporation (Matrade) has reaffirmed its commitment to supporting the nation’s export growth target of RM2.09 trillion by 2030, which requires an average annual increase of 5.8 per cent. In a statement, Matrade said it will continue to play a pivotal role in strengthening Malaysia’s global trade presence by expanding international networks and intensifying export promotion efforts, particularly in high-impact sectors aligned with the MADANI economic framework. Matrade chairman Datuk Seri Reezal Merican Naina Merican noted that the agency’s strategies will be closely coordinated to align with the 13th Malaysia Plan (13MP). “Our focus will be on enhancing the nation’s export competitiveness by empowering micro, small and medium enterprises (MSMEs), tapping into new and emerging markets, driving product innovation, and navigating an increasingly complex global trade environment through digitalisation and sustainable business models,” he said. “These initiatives reflect the 13MP’s vision to foster economic growth by boosting exports, promoting inclusivity, and integrating technology and innovation into key industries.” Matrade chief executive officer Datuk Seri Mohd Mustafa Abdul Aziz highlighted that the agency’s export promotion programmes will prioritise sectors such as electrical and electronic products, halal goods, digital and creative content, agriculture, franchised brands, and services. He added that Matrade’s overseas office network will be leveraged to provide Malaysian businesses with on-the-ground market insights and opportunities to break into global markets. The corporation also plans to expand export matching programmes, offer targeted guidance for entering foreign markets, and roll out capacity-building initiatives including seminars, workshops and training courses for MSMEs. To support government priorities, Matrade will place strategic emphasis on developing high-growth, high-value industries such as electronics, digital gaming and animation, halal products, modern agriculture, global services, and franchising. Efforts will also be directed towards exploring high-potential markets in South America, Africa, the Middle East and Eastern Europe through increased participation in free trade agreements, business matching events, and export acceleration missions. According to Matrade, the upcoming National Trade Blueprint 2.0 will act as a comprehensive roadmap to align trade policies, improve execution efficiency, and strengthen Malaysia’s overall export ecosystem.

Ascott, the lodging arm of CapitaLand Investment, has signed an agreement with Malaysian developer Coronade Properties to manage a new five-star hotel in Johor Bahru’s Ibrahim International Business District, part of the Johor-Singapore Special Economic Zone (JS-SEZ). The deal marks the first major hospitality partnership since the JS-SEZ agreement between Malaysia and Singapore in January 2025. The 207-room Ascott Coronation Square Johor Bahru will occupy Tower 1 of the RM5 billion Coronation Square development and cater to growing demand from cross-border business, tourism, and investment. Ascott CEO Kevin Goh said the project reflects strong cross-border cooperation and confidence in the region’s growth, while Singapore’s Minister of State for Trade and Industry Alvin Tan highlighted the JS-SEZ’s appeal for global investors.

PUTRAJAYA, Malaysia Rail Link Sdn Bhd (MRL) has formalised Supplementary Agreement 7 (SA7) with China Communications Construction Company Ltd (CCCC), the main contractor for the East Coast Rail Link (ECRL) project, to implement Section D — the extension connecting the final station at Jalan Kastam, Port Klang, to both Westports and Northport. MRL CEO Datuk Seri Darwis Abdul Razak said the agreement signifies that CCCC will carry out the construction of this crucial final segment. “Further announcements will follow regarding this development,” he said at the RHB-MRL 360 Degree ESG Financial Ecosystem event today. SA7 covers a 25-kilometre stretch from Jalan Kastam to Westports and Northport, and will feature dual-track construction — both meter gauge and standard gauge — to support seamless integration with the existing Keretapi Tanah Melayu Bhd (KTMB) system and the new ECRL line. East Coast Rail Link. Darwis emphasised that completing Section D is vital to fully connecting the ECRL from Kota Bharu, Kelantan, to Port Klang, Selangor. “This extension ensures the land bridge connection between Kuantan Port and Port Klang is fully realised, linking the east and west coasts efficiently,” he added. The SA7 is part of the Engineering, Procurement, Construction and Commissioning (EPCC) contract signed in November 2016. Transport Minister Anthony Loke had previously announced the agreement in April this year. Meanwhile, RHB Bank chairman Tan Sri Ahmad Badri Mohd Zahir noted that MRL has become the first government-linked company in Malaysia to implement a sustainable financial value chain transition roadmap. As part of this effort, proceeds from MRL’s green sukuk issuance are placed into RHB’s ESG deposits while awaiting disbursement for ECRL works. “This ensures idle funds remain productive and contribute to national decarbonisation efforts through a transparent, circular, and sustainable financial model,” he said. RHB’s ESG deposits will support projects aligned with national priorities such as renewable energy, clean transport, low-carbon infrastructure, and social inclusion. Financing is guided by RHB’s ESG guidelines, Bank Negara Malaysia’s climate taxonomy, and the ASEAN taxonomy for sustainable finance. Earlier this year, MRL issued a green SDG sukuk, setting a national record with the lowest credit spread ever achieved for a government-guaranteed infrastructure issuance — a strong indicator of investor confidence in both MRL and the ECRL project.

KUANTAN, Pahang recorded RM4 billion in realised investments during the first half of 2025, the highest among East Coast states, said Menteri Besar Datuk Seri Wan Rosdy Wan Ismail. This puts Pahang ahead of Terengganu (RM1.3 billion) and Kelantan (RM1.1 billion) as of June this year. Additionally, Pahang secured RM3.5 billion in committed investments during the same period, reflecting strong investor confidence in the state’s economic stability and favourable business environment. Datuk Seri Wan Rosdy Wan Ismail. “The state has also registered a potential high-impact investment value of RM38.4 billion for this year. This underscores Pahang’s emergence as a progressive, investor-friendly, and increasingly competitive state,” he said in a statement today. Wan Rosdy noted that these investments have bolstered Pahang’s economic standing, particularly in strategic sectors such as manufacturing, oil and gas, and tourism — all of which remain key drivers of the state’s growth. Economically, Pahang’s gross domestic product (GDP) rose by 5.7% in 2024, outpacing the national average of 5.1%, with a total value of RM68.7 billion. “Since 2018, Pahang’s GDP has increased by 23%, or around RM13 billion, a result of our strategic, sustainable, and inclusive development policies,” he said. He attributed the state’s success to political stability, consistent policies, robust infrastructure development, and an efficient, investor-friendly ecosystem — key enablers of growth under the Pahang 1st Aspiration. “This vision focuses on balanced economic progress, job creation for the people, and equitable wealth distribution,” he added. Wan Rosdy reaffirmed the state government’s commitment to enhancing its investment policies, boosting competitiveness, and ensuring that the benefits of economic development reach all Pahang citizens.

Hyundai Motor has announced a joint development initiative with General Motors (GM) involving five new vehicle models, set for launch in 2028. This marks the first product collaboration between the two automakers following a memorandum of understanding signed in September last year. The partnership will produce four next-generation vehicles aimed at the Latin American market — including a midsize pickup, a compact pickup, a compact car, and a compact SUV — all designed to support both internal combustion and hybrid powertrains. A fifth model, an electric commercial van, will be developed for the North American market. Hyundai Motor stated that combined annual production and sales of these models are projected to exceed 800,000 units. Under the agreement, GM will lead the development of the midsize pickup platform, while Hyundai will oversee the compact vehicle platforms and the electric van. Though the models will share common platforms, each company will independently design the exterior and interior styling to reflect their individual brand identities. Initial design and engineering efforts are currently focused on the Latin American lineup, with production expected to begin in 2028. The electric van for the U.S. market is also scheduled to enter production that same year. Beyond vehicle development, Hyundai and GM are launching a joint sourcing strategy for materials, logistics, and transport across North and South America. The companies are also exploring deeper collaboration in raw materials, advanced components, and sustainable manufacturing, including the use of low-carbon steel. “This strategic partnership with GM allows us to better meet customer demand across multiple segments and regions,” said José Muñoz, CEO of Hyundai Motor. “Leveraging our combined scale in the Americas enables us to deliver well-designed, high-quality, and technologically advanced vehicles more efficiently.” GM’s Senior Vice President Shilpan Amin echoed the sentiment, noting the collaboration will accelerate market entry and reduce costs. “These co-developed vehicles are a clear example of how GM and Hyundai can complement each other’s strengths to deliver greater value and choice to consumers,” he said.

HONG KONG, Cathay Pacific has announced a significant aircraft purchase, placing a US$8.1 billion order for 14 Boeing 777-9 jets — marking its first deal with the US aircraft manufacturer in 12 years. The company’s passenger airlines have launched or announced 19 new destinations so far in 2025.  In a filing to the Hong Kong stock exchange, the airline said it had exercised purchase rights for 14 Boeing 777-9 aircraft and secured options to acquire up to seven more. Deliveries are expected by 2034. The announcement came alongside Cathay Pacific’s latest financial results, which showed a modest rise in attributable profit to HK$3.65 billion (US$4.65 million), supported by increasing travel demand across Asia. Chairman Patrick Healy described the results as a “solid financial performance” and highlighted the airline’s expanding route network. Cathay and its low-cost unit Hong Kong Express have added or announced 19 new destinations in 2025, with more planned. Cathay now serves over 100 passenger destinations worldwide. However, the airline cautioned that its budget carriers continue to face short-term headwinds, with booking volumes still recovering to pre-pandemic levels.

HONG KONG, iQiyi Inc, often referred to as the “Netflix of China,” is looking to raise around US$300 million through a planned listing in Hong Kong later this year, potentially becoming the latest US-listed Chinese firm to court investors closer to home. The Baidu-owned streaming giant has reportedly started early discussions with global investment banks for a secondary listing in the city, according to sources familiar with the matter who requested anonymity due to the private nature of the deal. Following the news, iQiyi’s shares in the US briefly rose by as much as 6% before closing flat in New York trading. iQiyi’s platform features a wide array of content, ranging from popular Chinese historical dramas to major Hollywood blockbusters. It competes directly with other major players like Tencent Holdings and Alibaba Group to maintain its position among China’s leading video-streaming services, boasting over 400 million monthly active users. The company now joins the likes of battery maker Contemporary Amperex Technology Co Ltd (CATL) in exploring a dual listing in Hong Kong. While discussions are still at a preliminary stage and the deal remains fluid, iQiyi has not issued an official comment on the matter, according to Bloomberg News. If the listing proceeds, iQiyi will be part of a growing wave of Chinese companies fueling a resurgence in Hong Kong’s capital markets. These listings have helped restore the city’s status as the second-largest IPO market globally, a milestone not reached since 2012, following years of decline due to the COVID-19 pandemic. Loosened regulatory policies have also played a key role in this revival. Mainland Chinese firms, particularly those already listed on domestic exchanges, have led this IPO rebound. For US-listed Chinese companies like iQiyi, the potential re-election of Donald Trump has reignited fears of delisting from American exchanges, as his administration has shown renewed interest in enforcing the Holding Foreign Companies Accountable Act (HFCAA) — a law passed in 2020 allowing the SEC to delist foreign companies if audit inspections are denied for two consecutive years. Tensions over auditing standards had initially escalated during Trump’s first term but were largely defused in 2022, when US regulators gained sufficient access to Chinese audit records. Nonetheless, with geopolitical uncertainties lingering, market watchers have speculated that firms such as iQiyi and PDD Holdings might opt for listings in more favourable jurisdictions. Before the pandemic, tech giants Alibaba and Baidu had already paved the way with successful secondary listings in Hong Kong following their initial IPOs in the US.

KUALA LUMPUR, The ongoing rally on the Nasdaq, fuelled by surging interest in artificial intelligence (AI), has sparked increased attention from local investors toward Frontken Corp Bhd, according to Hong Leong Investment Bank (HLIB) Research. The investment bank noted that major global tech giants like NVIDIA, Advanced Micro Devices (AMD), and Google have experienced significant gains in their share prices, driven by growing demand for AI processors and cloud computing services. While most companies listed on Bursa Malaysia are not directly involved in the AI space, Frontken stands out as a key indirect beneficiary. This is largely due to its established cleaning and surface treatment services for leading semiconductor foundries in Taiwan, which remain its primary revenue source. “Frontken utilises advanced technology to provide precision cleaning for extremely small wafers, supporting production at leading foundries,” HLIB said. Looking ahead, global semiconductor sales are projected to rebound by 13% year-on-year (YoY) in 2024, according to forecasts from World Semiconductor Trade Statistics (WSTS). Additionally, Taiwan Semiconductor Manufacturing Company (TSMC), during its Q4 2023 earnings call, signaled that earnings had likely bottomed out and expressed confidence in a strong growth outlook for 2024. This optimism is anchored by the expansion of leading-edge 3nm technologies, sustained demand for 5nm chips, and the continued growth of AI-related sectors. HLIB highlighted that increased output from these foundries will drive demand for Frontken’s specialised services, particularly in supporting production processes and extending the lifespan of chamber components. “This positions Frontken as a prime beneficiary of growth in the front-end semiconductor industry,” it said. Beyond semiconductors, Frontken’s oil and gas (O&G) division contributed approximately 23% of the group’s total revenue in the financial year 2023 (FY23). HLIB added that the company expects further momentum in FY24, backed by stronger orders from contracts related to engineering services, manpower supply, and mechanical rotating equipment servicing with major oil companies. On the stock market, Frontken’s shares are currently trading between RM3.64 and RM3.70, continuing their upward trend. “Should the share price break above RM3.74, it could climb further to RM3.87, RM4.00, or even RM4.10, forming a higher high pattern. However, investors are advised to cut losses if the price drops below RM3.50,” HLIB advised.