Investment & Market Trends

KUALA LUMPUR, Tenaga Nasional Bhd has received an additional tax bill of RM840.13 million from the Inland Revenue Board (IRB) for the Year of Assessment (YA) 2022. The new assessment comes shortly after the utility giant lost a RM1.25 billion tax dispute for YA 2018 in the Federal Court earlier this month. The court ruled that Tenaga had incorrectly claimed tax incentives intended for manufacturers rather than utilities, which carry lower relief. In a filing with Bursa Malaysia on Friday (July 25), Tenaga said it received the latest notice from the IRB on July 24 and is currently reviewing its legal options in light of the Federal Court’s decision regarding the 2018 assessment. “The evaluation includes the fact that TNB has submitted an application for Investment Allowance under Schedule 7B of the Income Tax Act 1967 — covering YA 2022 — to the Minister of Finance,” the group said. TNB was first issued a RM1.81 billion tax bill in July 2020, which was later reduced to RM1.25 billion through a consent order in December that year, waiving penalties. The group has been in a prolonged dispute with the IRB since 2015 over various tax assessments, with a total of RM5.05 billion in disputed taxes still unresolved, according to its annual report. On Friday, TNB was the second-biggest decliner by value on Bursa Malaysia, falling 34 sen or 2.44% to RM13.60, bringing its market capitalisation to RM79.28 billion. The stock has fallen 9% year-to-date.

KUALA LUMPUR, Nestlé (Malaysia) Bhd recorded a 20% year-on-year increase in net profit to RM112.1 million for the second quarter ended June 30, 2025, up from RM93.6 million in the same quarter last year. The improved performance was driven by stronger sales and effective cost control. Quarterly revenue rose 9.5% to RM1.67 billion, compared to RM1.52 billion previously, supported by sustained domestic demand and robust export performance. In a filing with Bursa Malaysia, the company attributed the growth to its strong global standing, particularly as the Nestlé Group’s largest Halal manufacturing hub. It also cited continued focus on quality, taste, and nutrition as key factors behind its strong brand loyalty in a dynamic market environment. Nestlé Malaysia declared an interim dividend of 70 sen per share—unchanged from last year—with payment scheduled for October 2. Chief Executive Officer Juan Aranols expressed confidence in maintaining growth momentum and achieving further profit recovery in the second half of 2025 (2H25). “We remain alert to geopolitical uncertainties that may affect the business environment in Malaysia,” he said. “Nonetheless, we are fully committed to delivering high-quality, nutritious Halal products under the nation’s most trusted and beloved brands.” Aranols added that the company will continue to accelerate its digital transformation and enhance operational efficiency to support investments in branding and innovation. These efforts will be guided by a deep understanding of Malaysian consumer values and a strong commitment to community and environmental impact.

SINGAPORE, Temasek Financial (I) Ltd, a wholly owned subsidiary of Singapore’s state-owned investment firm Temasek Holdings, has successfully raised 5.5 billion Chinese renminbi (US$768 million or RM3.24 billion) through an offshore bond offering on Wednesday. In a statement, the company said the issuance includes a five-year bond worth 1.5 billion renminbi priced at par with a 1.85% annual yield, a 10-year bond of 2.0 billion renminbi at 2.05%, and a 30-year bond of 2.0 billion renminbi at 2.55%. The final yields came in below the initial price guidance of around 2.3%, 2.55%, and 3.05%, indicating strong investor demand for the issue. The bonds are issued under Temasek Financial (I)’s US$25 billion (RM105.55 billion) global medium-term note programme and are fully, unconditionally, and irrevocably guaranteed by Temasek Holdings. Rated “Aaa” by Moody’s and “AAA” by S&P—consistent with Temasek’s credit ratings—the proceeds from the bond sale will be used to support the operational and investment activities of Temasek and its portfolio companies. This marks Temasek’s first offshore renminbi bond offering since August 2024. Earlier in July, Temasek reported a record net portfolio value of S$434 billion (US$340 billion or RM1.44 trillion), reflecting an 11.6% year-on-year increase. The group noted that risks related to U.S. immigration, tariffs, and fiscal tightening have likely peaked and highlighted growing investment opportunities in Europe, where trade tensions have created more attractive valuations. Credit Agricole, DBS Bank, HSBC, and Standard Chartered acted as joint lead managers and joint bookrunners for the bond issuance.

KUALA LUMPUR, AYS Ventures Bhd announced that the voluntary takeover offer by its associate, 3HA Capital Pte Ltd, for all shares in Singapore-listed CosmoSteel Holdings Ltd has turned unconditional after 3HA surpassed the 50% ownership mark. As of Wednesday (July 23), 3HA Capital had secured valid acceptances for nearly 229 million shares, representing 87.88% of CosmoSteel’s issued share capital. The offer was first made on May 15 at S$0.20 per share. On June 23, 3HA raised the offer by 25% to S$0.25 per share. Shareholders who accepted the earlier bid will automatically be entitled to the revised price. AYS said in a filing with Bursa Malaysia on Thursday that the offer deadline has been extended to 5.30pm on July 28, from the original closing date of July 14. Should acceptances reach 90% or more, 3HA may proceed with a compulsory acquisition of the remaining shares. AYS’ wholly owned unit, Ann Yak Siong (Singapore) Pte Ltd, holds a 14.9% stake in 3HA Capital. Other stakeholders include HHH Group Pte Ltd (40.2%), Hanwa Singapore (Pte) Ltd (30%), and Thor Capital Pte Ltd (14.9%). AYS Singapore invested S$298,000 (around RM1 million) in 3HA Capital. 3HA has stated it does not plan to revise the offer further. Previously, AYS said its involvement aligns with its strategic goal of becoming a leading, sustainable steel distributor in the region. The acquisition is expected to broaden its market presence, create synergies, and strengthen service capabilities across engineering, energy, and construction sectors. At the noon break on Thursday, AYS shares were untraded. The counter last closed at 25.5 sen on Wednesday, with a market capitalisation of RM106.7 million. Year to date, the stock has declined by 15%.

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.