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Investment & Market Trends

Investment & Market Trends

FWD’s Global Share Offering Significantly Over-Subscribed Ahead of HKEX Listing

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FWD Group announced on 4 July that its Hong Kong and international share offerings have both been significantly over-subscribed, in a strong show of investor confidence ahead of its listing on the Hong Kong Stock Exchange (HKEX). The Hong Kong public offering attracted 61,689 valid applications, representing demand for approximately 339.2 million shares. This equates to around 37.1 times the 9.1 million shares initially made available under the Hong Kong public tranche. Given that the over-subscription exceeded 15 times but remained below the 50-times threshold, FWD has reallocated 18.3 million shares from the international offering to meet local demand. As a result, the final number of shares under the Hong Kong public offering has increased to 27.4 million, representing 30% of the total shares available under the global offering, prior to any exercise of the over-allotment option. The international tranche was similarly well received, resulting in an over-allocation of 13.7 million shares and attracting participation from 129 placees. Following the reallocation, the total number of international offer shares stands at 63.9 million. Consequently, FWD has granted the over-allotment option to the international underwriters, which allows the joint representatives to purchase up to an additional 13.7 million shares to cover any over-allocation. This option is exercisable at any point from the effective date of the international underwriting agreement until 30 days after the close of applications under the Hong Kong public offering. FWD had previously announced on 26 June its intention to offer 91.3 million shares at an indicative offer price of HK$38 (approximately US$6.16) per share. This followed the company’s re-filing to list on the HKEX in May this year. Should the over-allotment option be fully exercised, FWD is expected to raise gross proceeds of approximately HK$3.99 billion (US$512 million). In the absence of this exercise, the group anticipates gross proceeds of around HK$3.47 billion (US$445 million). FWD shares are scheduled to begin trading on the HKEX on 7 July, with a board lot size of 100 shares. -The Edge

Investment & Market Trends, News

Samsung Projects 39% Q2 Profit Decline as AI Chip Supply to Nvidia Faces Delays

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Samsung Electronics is expected to report a 39% year-on-year fall in second-quarter operating profit, as ongoing delays in the supply of advanced memory chips to Nvidia weigh heavily on its performance. According to LSEG SmartEstimate, the South Korean technology conglomerate is projected to post an operating profit of 6.3 trillion won (£3.6 billion) for the April–June period, marking its weakest quarterly result in a year and a half. The anticipated drop reflects growing investor unease regarding Samsung’s ability to keep pace with rivals in the rapidly expanding market for high-bandwidth memory (HBM) chips, which are crucial for artificial intelligence data centres. While competitors such as SK Hynix and Micron have benefitted from strong demand for AI-optimised memory, Samsung’s progress has been hindered by its dependence on the Chinese market, where access to advanced semiconductor technology remains restricted by U.S. export controls. Samsung’s efforts to secure certification for its HBM3E 12-layer chips from Nvidia have also been slower than anticipated. Analysts noted that these chips have yet to make meaningful inroads into Nvidia’s supply chain. “HBM revenue likely remained flat in the second quarter, as China sales restrictions persist and Samsung has yet to begin supplying its HBM3E 12-high chips to Nvidia,” said Ryu Young-ho, Senior Analyst at NH Investment & Securities. He added that shipments to Nvidia are unlikely to be significant within this calendar year. Although Samsung had initially indicated that progress in HBM development could be expected as early as June, it declined to confirm whether its latest chips had passed Nvidia’s qualification tests. However, AMD disclosed in June that it had commenced receiving shipments of Samsung’s HBM3E chips. Despite the softness in its semiconductor division, Samsung’s smartphone segment is expected to deliver stable performance, supported by inventory demand ahead of potential U.S. tariffs on imported devices. Broader uncertainty persists, however, across its core businesses—including semiconductors, smartphones, and consumer electronics—due to evolving U.S. trade policies. The Biden administration is reviewing measures that could revoke export authorisations for chipmakers operating in China, including Samsung, potentially limiting their access to critical U.S. technologies. Additionally, the prospect of a 25% tariff on foreign-manufactured smartphones and a looming 9 July deadline for reciprocal tariffs are contributing to market uncertainty. While Samsung’s share price has risen approximately 19% year-to-date, it continues to lag behind the broader KOSPI index, which has climbed 27.3% over the same period. The company remains the weakest performer among major memory chipmakers in 2025 thus far. -Reuters

Investment & Market Trends

STI Surges to Record High of 4,019.57, Sustains Momentum Above 4,000 Points

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The Straits Times Index (STI) climbed to a new peak of 4,019.57 points just before the market closed on 3 July, marking the second consecutive session in which the benchmark set fresh highs. Building on the momentum from 2 July—when it closed above the 4,000-point threshold for the first time at 4,010.77—the STI remained firmly above this psychological level throughout Wednesday’s trading. It reached an intraday low of 4,001.84 around 2pm before rallying further in the late session. The index ended the day at 4,019.57, up 0.22% from its opening level of 4,009.33. Among the 30 constituent stocks, DFI Retail Group led gains with a 4.98% increase. City Developments and Hongkong Land followed, advancing by 2.23% and 1.74% respectively. Conversely, UOL Group—previously the top performer—fell 1.19%. Keppel DC REIT and Singtel also registered declines of 0.86% and 0.77% respectively. The STI began the week at 3,970.09 points on 30 June. The latest milestone surpasses the previous record of 4,005.18 points, which was achieved on 28 March. That day also marked the index’s first historic breach of the 4,000-point level, although it subsequently closed lower at 3,972.43. The STI later faced significant volatility, dropping to a 2025 low of 3,372.38 on 9 April following concerns over former US President Donald Trump’s proposed “Liberation Day” tariffs. Although these tariffs were later deferred by 90 days to 9 July, the announcement initially triggered investor caution. Market sentiment has since rebounded, with analysts forecasting further upside. In remarks made during a media briefing on 27 June, OCBC Investment Research’s Singapore strategist Carmen Lee stated that the STI has a “slightly good chance” of reclaiming the 4,000-point mark in the second half of 2025. Lee has set a 12-month target range of 4,060 to 4,280 for the index. -The Edge

Investment & Market Trends

Vietnam’s Economy Grows 7.52% in H1 2025

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Vietnam’s economy recorded robust growth of 7.52% in the first half of 2025, its highest mid-year performance in more than a decade, according to the General Statistics Office (GSO). The announcement comes shortly after Hanoi successfully negotiated a reduction in threatened US tariffs on Vietnamese exports, mitigating potential headwinds to its export-driven economy. The second quarter of 2025 saw a year-on-year GDP expansion of 7.96%, representing the strongest second-quarter growth since 2022, when the figure peaked at 8.56%. The government has set a full-year growth target of no less than 8%. “The country’s socio-economic performance in the second quarter and the first six months of 2025 achieved very positive results, approaching the set target in the context of many uncertainties in the world and regional economy,” the GSO noted in its official release. The latest growth data follows a bilateral trade agreement with the United States announced earlier this week. Under the deal, Vietnam secured a significant reduction in prospective US tariffs, lowering them from a proposed 46% to a minimum rate of 20%, in exchange for expanded market access for American goods. Vietnam currently holds the third-largest trade surplus with the United States, following China and Mexico. The high surplus had placed the country among the primary targets of the US administration’s tariff initiatives. -AFP

Investment & Market Trends

MYStartup Accelerator Invests RM5.5 Million in Malaysian Startups to Fuel Innovation

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Cradle Fund Sdn Bhd’s MYStartup Accelerator programme has channelled close to RM5.5 million into local startups across five cohorts, reinforcing its strategic role in nurturing Malaysia’s innovation landscape and supporting the nation’s ambitions to emerge as a regional technology leader. In a recent statement, Cradle confirmed that the initiative, which falls under the Ministry of Science, Technology and Innovation (MOSTI), is jointly managed with NEXEA, a venture capital and startup accelerator firm. Since inception, the programme has focused on accelerating the growth of promising startups, providing both capital and mentorship to early-stage enterprises. “Having completed five cohorts, we have gained meaningful insights into the needs of Malaysian startups. Our next goal is to expand our reach nationwide and ensure startups in all regions have equal access to growth opportunities,” said Cradle’s Group Chief Executive Officer, Norman Matthieu Vanhaecke. During the Cohort 5 Demo Day, startups showcased a range of innovative solutions spanning artificial intelligence (AI), aquaculture, electric vehicle (EV) infrastructure, and smart retail. From a competitive pool of 747 applicants, eight finalists were shortlisted. Of these, five were awarded cash prizes by Cradle, while four secured a combined RM800,000 in investment from NEXEA. Standout participants included Paix Tech, which leverages AI to automate enterprise utility payments; Ocean Rich Resources, a company specialising in scalable oyster farming systems; and Recharge Xolutions, which develops integrated EV charging and green energy solutions. Cradle noted that the MYStartup Accelerator continues to play a critical role in driving a tech-forward future for Malaysia by enabling startups with bold, sustainable, and innovative propositions. NEXEA, recognised for its extensive mentor network comprising accomplished entrepreneurs and C-suite executives, has been instrumental in scaling its portfolio companies—some of which have recorded annual growth of up to 16 times. Cradle, as the government’s key agency for early-stage startups, has supported over 1,100 tech-based ventures to date and maintains the highest commercialisation rate among grant providers in the public sector. -Bernama

Investment & Market Trends

SD Guthrie’s Q2 Earnings Set to Dip 20% Amid Softer CPO Prices

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SD Guthrie Bhd is expected to see a decline in core net profit for the second quarter of 2025, as softer crude palm oil (CPO) prices weigh on earnings, according to UOB Kay Hian (UOBKH) Research. The research firm anticipates the group’s profit to fall by approximately 20% quarter-on-quarter, coming in between RM380 million and RM400 million. This anticipated dip follows a decline in average selling prices of CPO after the first quarter of the year. However, UOBKH notes that the impact is likely to be partially offset by stronger production volumes. Fresh fruit bunch (FFB) output for April and May rose by 13% and 4% month-on-month respectively, also registering a year-on-year increase of around 5%. The research house highlighted this trend as a clear sign of improving operational performance, following a period of uneven output influenced by weather-related disruptions. May marked the fourth consecutive month of year-on-year production growth, suggesting that the group is recovering from prior production setbacks driven by the lingering effects of the 2023 El Niño and wet weather experienced in late 2024. In parallel with its core plantation operations, SD Guthrie is actively pursuing growth in its industrial development and renewable energy verticals. Following a memorandum of understanding signed with EcoWorld Development Group Bhd and NS Corp, the group is moving forward with plans to develop a 1,200-acre industrial park in Negeri Sembilan, projected to carry a gross development value (GDV) of RM2.95 billion. Additionally, the company has entered into a joint venture with Sime Darby Property Bhd to develop a 2,000-acre industrial and logistics hub on Carey Island, Selangor. These strategic ventures form part of the group’s diversification into high-potential, long-term sectors. UOBKH Research has revised its earnings forecasts for SD Guthrie for FY25 to FY27 upward by 4% to 5%, largely due to revised assumptions around lower CPO unit costs. These adjustments reflect recent management guidance indicating a more stable cost environment, even in the face of inflationary pressures, including adjustments to the minimum wage. While maintaining a ‘hold’ call on the counter, the research house set a target price of RM4.75. It noted that although SD Guthrie offers compelling medium-term prospects through favourable production growth and diversification into new business verticals, current valuations appear to reflect the near-term softness in CPO pricing. -The Star

Investment & Market Trends

Malaysia Secures RM8.13 Billion in Potential Investments from Italy

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Malaysia has secured potential investments amounting to RM8.13 billion following a series of strategic economic engagements in Italy, Prime Minister Datuk Seri Anwar Ibrahim announced at the conclusion of his official visit to Rome. The investment prospects stemmed from the Malaysia-Italy Economic Cooperation Roundtable and targeted meetings with Italian corporations. The roundtable saw participation from 41 Italian entities, comprising 23 manufacturing companies, nine service providers, two trading firms, five government agencies and two industry organisations. According to the Prime Minister, the projected investments span key sectors including petrochemicals, machinery and equipment, electrical and electronics, as well as oil and gas services and equipment. In addition to investment commitments, the meetings yielded export potential estimated at RM425 million, particularly in oleochemical products, renewable energy, biofuel feedstocks, animal feed additives and food-related products. The roundtable enabled Italian firms to express keen interest in partnering with Malaysian companies, particularly in high-technology manufacturing, renewable energy, the digital economy and sustainable infrastructure. During bilateral talks with his Italian counterpart, Prime Minister Giorgia Meloni, both leaders reaffirmed their commitment to deepening cooperation in the energy sector, notably in solar, geothermal and hydrogen technologies. Significant collaborations were highlighted, including a joint venture between Petronas and Eni SpA in Johor’s Pengerang region to develop sustainable aviation fuel (SAF); strategic cooperation between Perodua and Magna Steyr on electric vehicle battery systems; and Italian interest in supporting the modernisation of Malaysia’s electricity grid infrastructure, including the ASEAN Power Grid (APG) initiative. Anwar also raised the issue of environmental standards during the discussion, formally requesting Italy’s recognition of the Malaysian Sustainable Palm Oil (MSPO) certification and appealing for a more balanced evaluation of the European Union Deforestation-Free Products Regulation (EUDR). Malaysia seeks to be classified under the EU’s low-risk category when the benchmark is revised in 2026. Furthermore, Malaysia has requested Italy’s support in accelerating the conclusion of the Malaysia-European Union Free Trade Agreement (FTA), currently under negotiation. Anwar’s three-day visit to Italy, undertaken at the invitation of Prime Minister Meloni, underscores Malaysia’s continued commitment to strengthening trade and investment ties with key EU economies. He was accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir also joined the delegation. In 2024, total trade between Malaysia and Italy rose by 2% year-on-year to US$3.18 billion (RM14.61 billion). For the January–May 2025 period, bilateral trade continued its upward trajectory, increasing by 3.3% to US$1.48 billion (RM6.5 billion) compared to the corresponding period last year. The Prime Minister has since departed for France for an official visit on 3 and 4 July. -Bernama

Investment & Market Trends

Indonesia Seeks US Investment in Battery and Critical Mineral Sectors

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The Indonesian government is intensifying its efforts to secure United States investment in the country’s electric vehicle (EV) battery ecosystem and critical minerals sector, positioning the offer as part of ongoing bilateral tariff negotiations. Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed on Monday that the newly established state asset fund, Danantara, will participate in the proposed mineral ventures. “The investment is intended for brownfield critical mineral projects in Indonesia. We are explicitly offering these to the United States,” he stated. While specific projects were not disclosed, the initiative focuses on expanding existing operations rather than initiating new developments. Indonesia, the world’s largest producer of nickel and holder of the largest known reserves globally, aims to leverage its resource base to scale up EV battery production, a sector where US manufacturers such as Tesla Inc. remain heavily reliant on nickel supplies. President Prabowo Subianto officially commenced construction of a US$5.9 billion EV battery facility in Karawang, West Java, over the weekend. The plant will be operated by a joint venture between the Indonesia Battery Corporation and Chinese battery manufacturer Contemporary Amperex Technology Co Ltd. Minister Airlangga also emphasised the strategic value of investment in critical minerals, citing its importance for key sectors such as electronics, defence, and aerospace. “All of them require copper and cables. We already produce copper cathodes, and American firms are integrated into that ecosystem,” he said, referencing the presence of US interests in PT Freeport Indonesia. The proposal aligns with Indonesia’s earlier commitments to the United States, including measures to boost imports of US-manufactured food and energy products, ease import restrictions, and facilitate Indonesian outbound investment into the US to help balance the trade relationship. These measures are designed to address Washington’s concerns and avert the imposition of steep reciprocal tariffs. Negotiations remain under pressure as more than 60 days have passed since both parties agreed to conclude talks within that period. The US granted Jakarta a grace period to resolve the matter and avoid a proposed 32 per cent import tariff on Indonesian goods. A 90-day pause on tariff implementation is currently in place and is due to expire on 9 July. In anticipation of the deadline, the Indonesian government has announced new import regulations aimed at easing access to raw materials and lowering non-tariff barriers. Airlangga noted that these regulatory reforms form part of the broader negotiation strategy with Washington. “Deregulation will be conducted in stages. We have already implemented certain measures, while others will depend on the outcome of the negotiations,” he said. US President Donald Trump has indicated there will be no extension to the current 90-day tariff reprieve beyond 9 July. Without a bilateral agreement, elevated trade penalties are expected to come into force. -The Jakarta Post

Investment & Market Trends

NTT Targets US$812 Million in Singapore REIT IPO

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Japan’s NTT Ltd is preparing to raise as much as US$812 million (approximately RM3.42 billion) through the initial public offering of its data centre real estate investment trust (REIT) in Singapore, potentially ending a prolonged IPO drought in the city-state. The REIT, to be listed as NTT DC REIT, is targeting a market capitalisation exceeding US$1 billion. Units are expected to be priced at US$1 each, according to terms of the offering reviewed by Bloomberg. Should the over-allotment option be exercised in full, total proceeds could climb to US$864 million. Seven cornerstone investors have pledged to subscribe for a combined US$172.8 million. Notably, Singapore’s sovereign wealth fund, GIC Pte Ltd, has committed to invest over US$100 million. Additional commitments have come from the wealth management clients of UBS Group AG, alongside institutional investors such as AM Squared Ltd and Viridian Asset Management Ltd. The proposed listing would be Singapore’s largest since NetLink NBN Trust’s IPO in 2017, which raised US$1.7 billion. It also represents a significant boost to the country’s lacklustre equity capital market, which has recorded only a single listing in 2025 to date—a modest US$4.5 million flotation by a car servicing company. In February, Singapore’s government introduced a package of market-stimulating incentives, including tax relief measures aimed at encouraging listings and spurring domestic fund investment in local equities. NTT’s global data centre platform, among the largest worldwide, operates across more than 20 countries. The assets being seeded into the REIT are collectively valued at around US$1.6 billion, according to its listing prospectus. The offering is being jointly managed by a consortium of global financial institutions, including DBS Group Holdings Ltd, Bank of America Corp, UBS, Mizuho Financial Group Inc, and Citigroup Inc. -Bloomberg

Investment & Market Trends

GEAR-uP Deploys RM11 Billion to Drive Strategic Industries and Social Reform

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PUTRAJAYA : The Government-linked Enterprises Activation and Reform Programme (GEAR-uP), under the stewardship of the Ministry of Finance, has disbursed RM11 billion to catalyse high-growth sectors, notably semiconductors and the energy transition, while simultaneously advancing social equity and talent development nationwide. The deployment represents approximately 50% of the RM22 billion allocated for domestic direct investments (DDI), which in turn constitutes 88% of the RM25 billion collectively pledged by six key government-linked investment companies (GLICs) since the programme’s inception in August 2023. The initiative is driven by Malaysia’s foremost institutional investors, namely Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji. Operating within the Ekonomi Madani framework, GEAR-uP is designed to unlock RM120 billion over five years, aimed at accelerating socioeconomic reforms and supporting Malaysia’s industrial transition. To date, more than RM800 million has been invested into Malaysia’s semiconductor ecosystem. In parallel, GLICs have launched green industrial developments across 3,000 acres in Kerian and Carey Island, Port Klang. Additionally, over 50 local enterprises have received support through venture capital and private equity channels. A notable milestone includes the agreement by 34 GLICs and government-linked companies (GLCs) to implement a minimum monthly living wage of RM3,100 for 153,000 employees. This move underscores the programme’s commitment to wage reform and raising quality of life standards. Further, RM200 million in scholarships have been awarded, while employment placements have benefited 8,000 youths from the bottom 40% income group. Broader community investment initiatives under the programme have reached more than 700,000 Malaysians. Prime Minister Datuk Seri Anwar Ibrahim noted that GEAR-uP realigns GLICs with a renewed mandate for nation-building, stating that the initiative is mobilising national wealth to uplift communities and cultivate high-value industrial ecosystems. Second Finance Minister Datuk Seri Amir Hamzah Azizan elaborated on the investment strategy, confirming continued momentum through targeted allocations. He highlighted that PNB will groom ten Bumiputera companies towards IPO-readiness, and EPF will deepen its involvement in the healthcare sector, expanding into ambulatory and home-based services. Meanwhile, LTAT and PNB will collaborate to enhance domestic pharmaceutical manufacturing, supporting efforts under the Joint Ministerial Committee on Private Healthcare Cost. Khazanah will intensify development of the semiconductor supply chain, and KWAP is set to channel RM6 billion via its Dana Pemacu initiative starting Q3 this year, with focus areas including private equity, infrastructure, and real estate. Amir Hamzah emphasised that GEAR-uP is strategically aligned to unlock RM120 billion of investment over the medium term, facilitating growth in emerging industries, while simultaneously driving income uplift and capacity-building. The programme is also preparing to broaden participation to over 30 GLCs, with key performance targets including RM10 billion in market capitalisation, 7.5% shareholder returns, and non-financial deliverables encompassing minimum living wages and workforce development. These efforts aim to fortify Malaysia’s economic resilience in the face of evolving global trade dynamics. On a related note, the Second Finance Minister expressed hope that the RM3,100 minimum wage standard adopted by GLICs and GLCs will catalyse adoption within the broader private sector. He noted that initiatives by Khazanah to invest in workforce upskilling, coupled with this new wage benchmark, are expected to enhance productivity and quality of life. He added that the shift may incentivise competition among corporations to offer more competitive compensation, further supporting wage growth and strengthening Malaysia’s talent retention landscape. -The Star

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