Investment & Market Trends

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.

Keppel Limited has divested approximately $477 million worth of real estate assets under its accelerated monetisation programme, bringing its total year-to-date (YTD) monetisation to $915 million. The recent transactions include the sale of Keppel’s entire stake in a commercial property in India for $379 million and its shares in Vietnamese property developer Nam Long for around $58 million. The group also sold a partial 2.5% stake in Smartworks Coworking Spaces following the company’s IPO in India this July. Keppel has a near-term monetisation target of $10 billion to $12 billion by the end of 2026. In addition, Keppel announced that a third-party investor has taken a 30% effective stake in one of its residential developments in Ho Chi Minh City, Vietnam. While the disposals of the Nam Long and Smartworks stakes have been completed, the other two transactions are expected to conclude by the fourth quarter of 2025, subject to necessary conditions being met. “These latest divestments reflect our focused and disciplined strategy to unlock value efficiently,” said Lee Kok Chew, head of Keppel’s Accelerating Monetisation Task Force (AMTF). “By collaborating closely with our operating units, we’ve been able to identify and execute transactions that maximise both speed and value.” Keppel is targeting asset monetisation of between $10 billion and $12 billion by the end of 2026. The group is scheduled to release its first-half FY2025 results on July 31. Keppel shares closed at $8.18 on July 30, up 2 cents or 0.25%.

Singapore Exchange Mainboard and Philippine Stock Exchange dual-listed Del Monte Pacific Ltd (DMPL) reported a net profit of US$5.7 million for the fourth quarter ended April 30, 2025, marking a turnaround from a net loss in the same period last year. The improvement follows the deconsolidation of its US operations effective May 1, with future financial reporting to exclude the US business. Going forward, the group will report its financial performance and outlook on a continuing operations basis excluding the US business.  For the full financial year (May 1, 2024 to April 30, 2025), the group recorded a net profit of US$10.9 million from continuing operations, also reversing a net loss on the back of stronger sales and improved margins. Quarterly revenue rose 5.4% year-on-year to US$191.1 million, while gross profit surged 25.1% to US$57 million. The gains were driven by stronger sales in the Philippines, a better product mix, higher S&W Deluxe fresh pineapple sales, and improved pricing across markets. For the full year, revenue climbed 11.1% to US$789.5 million and gross profit rose 30.1% to US$224 million, supported by growth in both domestic and international markets, along with favorable currency movements. Operating cash flow stood at US$346.5 million as of April 30, while the net debt/EBITDA ratio improved to 7.4 times due to higher earnings and reduced debt. US operations impact Sales from the discontinued US segment fell 12% year-on-year to US$364.8 million in 4QFY2025 amid weaker demand, increased promotional spending, and changing consumer preferences. The group recorded an impairment charge of US$703.5 million, leading to a net loss of US$787.8 million for the quarter from discontinued operations. For the full year, losses from the US segment totaled US$892.4 million. Del Monte shares closed at 8.9 US cents on July 31, down 0.4 US cents or 4.3%.

Jakarta — Indonesia’s ambitious plan to boost its downstream industries across 28 key commodities could transform the nation into a global powerhouse, according to Investment and Energy Minister Bahlil Lahadalia. Speaking at the 2025 Energi and Mineral Festival, Bahlil said the government aims to process raw materials domestically—such as turning nickel ore into stainless steel or batteries—to create higher-value exports and attract more global investment. Energy Minister Bahlil Lahadalia kicks off the Energi Mineral Festival 2025 in Jakarta on July 30, 2025. Behind him is the government’s blueprint for the massive downstream sector development spanning different sectors.  A comprehensive roadmap has been drawn up to add value to a wide range of resources including bauxite, gold, and seaweed. To achieve this, Indonesia will need to attract an estimated $618 billion in investment by 2040. “We’ll keep pushing this downstreaming agenda. If we remain consistent and execute it well, I believe Indonesia will become one of the world’s most respected countries,” Bahlil said. Of the required investment, about $498.4 billion is targeted for the mineral and coal sectors, $68.3 billion for oil and gas, and $51.3 billion for marine, forestry, and agriculture—including commodities like palm oil, rubber, and salt. The government projects the downstream plan will generate $857.9 billion in export value, contribute $235.9 billion to GDP, and create approximately 3 million jobs. Indonesia has already made progress, notably in nickel. Since banning raw nickel exports in 2020, the country has positioned itself as a leading global exporter of nickel-based products. Copper exports were similarly restricted earlier this year to encourage domestic processing. Bahlil highlighted the contributions of major mining players like Freeport Indonesia, which operates a gold refinery in Gresik with a 50-ton annual capacity, and Amman Mineral, whose West Sumbawa smelter is expected to produce 18 tons of gold annually. From January to June 2025 alone, downstream investments reached Rp 280.8 trillion ($17 billion), with nickel and copper accounting for the bulk.

Apple will shut down a retail store in China for the first time, signaling a rare retreat in a key market where the tech giant is working to regain momentum. The company announced on Monday that its Parkland Mall store in Dalian’s Zhongshan District will officially close on August 9. Apple cited changes at the shopping complex as the reason for the closure. The Parkland Mall location is one of two in Dalian — the other, located at Olympia 66, will remain operational. “In light of several retailers exiting Parkland Mall, we’ve decided to close our store there,” Apple said in a statement. “We remain committed to offering exceptional service across our more than 50 Apple Store locations in Greater China and online.” Apple currently operates around 56 stores in the Greater China region, which accounts for over 10% of its global retail footprint of more than 530 outlets. Employees from the closing store will be offered opportunities at other locations. The move comes as China faces economic headwinds, including weak consumer demand, deflationary pressures, and declining property prices. Retail sales have underperformed expectations, while global tariffs continue to weigh on exports. Despite the closure, Apple is actively expanding its retail presence. A new store is set to open at Uniwalk Qianhai in Shenzhen on August 16, with additional openings planned in Beijing and Shanghai over the next year. Apple also launched a store in Anhui province in January. Internationally, the company recently opened new stores in Osaka, Miami, and Malaysia, with more to come in Detroit, Saudi Arabia, the UAE, and India. However, Apple has been more selective with physical locations since the pandemic, prioritizing online store rollouts and relocating or upgrading older stores. In addition to the Dalian closure, Apple is shutting down stores in Bristol (UK), Partridge Creek (Michigan), and Hornsby (Australia). Parkland Mall has seen other major brands exit in recent years, including Coach, Sandro, and Hugo Boss. Earlier this year, the mall’s majority shareholder assumed full operational control.

PETALING JAYA, Pharmaniaga Bhd’s shares plunged 16% on Tuesday, despite the completion of two key corporate exercises aimed at steering the pharmaceutical group out of its Practice Note 17 (PN17) status. Bursa Malaysia Securities granted Pharmaniaga a three-month extension to Aug 29 to implement its PN17 regularisation plan. The stock fell 3.5 sen to 18 sen, hitting its intra-day low and ending the day with a market capitalisation of RM883 million. It was also one of the most actively traded counters, with 51.8 million shares changing hands. The sharp drop came after the company made two Bursa Malaysia filings earlier in the day, detailing the completion of its rights issue and private placement exercises—both central components of its PN17 regularisation plan. In May, Bursa Malaysia granted Pharmaniaga a three-month extension until Aug 29 to implement its regularisation strategy. The plan includes a RM520 million capital reduction, along with the two equity-raising exercises. Pharmaniaga fell into PN17 status in February 2023 after recording a massive impairment loss due to unsold RM552 million worth of Covid-19 vaccines. This resulted in its largest-ever quarterly net loss of RM664.39 million in Q4 FY2022. Based on current figures, the two completed exercises are expected to raise a total of approximately RM569.5 million, helping to stabilise the group’s financial position. This falls within the company’s previous guidance of raising between RM560.9 million and RM641.4 million. However, the exercises are highly dilutive, adding 5.1 billion new shares to Pharmaniaga’s share base. The company confirmed that the new shares will be listed on July 31, a likely reason for today’s share price decline. The rights issue involved the issuance of 3.45 billion new shares at 10 sen each, raising an estimated RM345.9 million. Initially, the company had proposed up to 3.52 billion rights shares, on the basis of 12 rights shares for every five existing shares. In addition, Pharmaniaga placed 1.65 billion shares with third-party investors at 13.5 sen per share, generating about RM223.6 million. The placement was done at a 6.6% discount to the five-day volume-weighted average price of 14.46 sen as of June 16. While today’s filings did not disclose the identities of the placement investors, The Edge weekly previously reported that Jakel Group, Great Eastern, Koperasi Angkatan Tentera Malaysia Bhd, and shipping magnate Halim Mohammad were among the interested parties, according to sources.

SEOUL: Samsung Electronics reported a 55% year-on-year decline in second-quarter operating profit, as delays in shipments of high-bandwidth memory (HBM) chips and continued U.S. export restrictions on advanced semiconductor sales to China weighed heavily on its semiconductor business. The world’s leading memory chip manufacturer posted an operating profit of 4.7 trillion won (US$3.37 billion) for the April–June period, marking its weakest quarterly performance in a year and a half. The result aligned closely with its earlier estimate of 4.6 trillion won, which had already dampened investor expectations. Total revenue rose 0.7% to 74.6 trillion won, largely in line with the preliminary forecast of 74 trillion won. Samsung’s chip division, which has historically been a key profit driver, earned 400 billion won in the quarter, a sharp drop from 6.5 trillion won during the same period last year. This marks the first time in six quarters that the division’s profit has fallen below the 1 trillion won threshold. In its official statement, Samsung attributed the profit erosion to inventory valuation adjustments in its memory chip business and one-off expenses related to the U.S. export controls that have impacted its contract chip manufacturing operations for Chinese clients. The extended downturn in its semiconductor segment has intensified concerns among investors about the company’s ability to stay competitive—particularly in the race to develop and supply next-generation HBM chips to tech leaders like Nvidia, which uses them in AI-powered data centers.