Investment & Market Trends

PETALING JAYA : Notion VTec Bhd’s sales outlook has weakened, with its key earnings segments expected to face headwinds following the introduction of reciprocal tariffs by the United States. According to Hong Leong Investment Bank Research, Notion’s main revenue contributors — electrical and electronics, hard disk drive (HDD), and automotive — account for 38.9%, 27%, and 23.9% of total sales, respectively. The imposition of tariffs is expected to dampen consumer electronics demand, further impacting the group’s performance. Notion, which derives the bulk of its electronics manufacturing services (EMS) revenue from a single anchor customer, is unlikely to be shielded from the broader slowdown. This customer remains critical to Notion’s growth strategy, with its supply chain heavily reliant on operations in South-East Asia and China. The group’s premium product offerings are particularly vulnerable to pricing pressures and potential demand disruptions under the new tariff environment. Despite these challenges, Notion remains optimistic about its motor casing venture for its key customer, projecting a 25% to 30% increase in EMS sales from this initiative. Nevertheless, the introduction of reciprocal tariffs could dampen growth prospects for the new venture. Hong Leong Investment Bank Research also warned of slower order flows from major HDD manufacturers, with enterprise demand and spending by hyperscale data centre customers likely to soften. As the United States contends with tariff-induced economic volatility and rising recessionary risks, near-term constraints on enterprise information technology investments are anticipated. –The Star

KUALA LUMPUR: Omni-channel consumer lifestyle products marketer and seller, Oasis Home Holding Berhad (“Oasis Home Holding” or “Company”), has officially launched its prospectus today in conjunction with its upcoming initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia Securities Berhad. The Group, through its subsidiaries, markets and sells consumer lifestyle products under both in-house and third-party brands. Leveraging a comprehensive omni-channel approach, Oasis Home Holding utilises a combination of online and offline sales channels, including live commerce platforms, its proprietary mobile app, official website, and major e-commerce marketplaces such as Lazada, Shopee, and TikTok Shop. To strengthen its brand presence, the Group integrates digital marketing strategies and operates physical product experience centres in Bukit Jalil and Johor Bahru, complemented by a mobile showroom. “Our prospectus launch today marks a major milestone towards our ACE Market listing, signalling a new chapter of growth for Oasis Home Holding,” said Datuk Teoh Yee Seang (拿督张维城), Chief Executive Officer of Oasis Home Holding. He added, “The proceeds from our IPO will be critical in accelerating our expansion, particularly in strengthening our live commerce presence. We plan to introduce at least five new live commerce channels across Facebook and TikTok, connecting with more consumers through real-time engagement. We will also set up our own fulfilment centre to support this growth, reduce costs, and enhance profit margins.” The IPO is expected to raise RM28.0 million, allocated as follows: Purpose Amount (RM’000) % of Proceeds Expansion of live commerce channels 13,700 48.93% Set-up of own fulfilment centre 3,600 12.86% Working capital 4,300 15.36% Set-up of new headquarters 2,000 7.14% Estimated listing expenses 4,400 15.71% The Group’s IPO comprises a public issuance of 100.00 million new shares and an offer for sale of 50.00 million existing shares. Of the new shares, 25.00 million will be offered to the Malaysian public via balloting, 10.00 million allocated to eligible directors and employees, and the balance placed with Bumiputera investors and selected investors. Priced at RM0.28 per share, Oasis Home Holding’s listing will result in a market capitalisation of RM140.0 million based on its enlarged share capital of 500.00 million shares. Financially, the Group has demonstrated strong growth. Revenue rose from RM40.88 million in FY2022 to RM54.82 million in FY2024, reflecting a two-year compound annual growth rate (CAGR) of 15.80%. Net profit grew at a higher CAGR of 22.93% over the same period, increasing from RM5.34 million to RM8.07 million. For the financial period ended 30 November 2025 (FPE 2025), revenue surged by 68.07% to RM33.43 million, while net profit rose by 58.72% to RM5.19 million compared to the previous corresponding period. Live commerce continues to be a significant driver, contributing 75.65% of total revenue in FY2024. Looking ahead, Datuk Teoh noted the Group’s strategic emphasis on live commerce aligns with regional trends, with Malaysian consumers among the top three in Southeast Asia for livestream viewership. Yang Berbahagia Dato’ Seri Diraja Nur Julie Gwee Ariff, Chief Executive Officer of MIDF Amanah Investment Bank Berhad, the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO, said, “The Group’s strong omni-channel strategy and rapid ascent in live commerce position it well in the evolving consumer landscape. With a clear vision, strong financials, and dynamic leadership, we believe Oasis Home Holding is well-placed to capitalise on future growth opportunities.” Applications for the Public Issue are open from today and will close on 9 May 2025 at 5:00 PM. The Company is scheduled to list on 28 May 2025.

The Securities Commission Malaysia (SC) and Bursa Malaysia Bhd have confirmed that a number of brokers have reported incidents involving failed client logins and unauthorised trading activities through a limited number of online trading accounts. In a joint statement issued today, both regulators said they are working closely with the affected brokers to determine the root cause of the security breach. Immediate steps are being taken to strengthen account security and prevent further incidents. “Capital market regulators and brokers are maintaining a high level of vigilance. Investigations are ongoing, and additional measures will be introduced as needed,” the statement said. All brokers have been instructed to promptly notify clients and advise them to reset their passwords and login credentials. They have also been urged to adopt stricter security protocols, including multi-factor authentication and more robust password policies. “These actions are intended to minimise the risk of further unauthorised access or trading,” the statement added. Desplite the incident, both the SC and Bursa Malaysia assured investors that the integrity of the country’s capital market remains unaffected. Trading operations will continue as usual. “We remain fully committed to ensuring that the marketplace operates in a fair, secure, and orderly manner,” the regulators said. The statement comes as a reassurance to investors amidst heightened concerns over digital security in financial systems.

KUALA LUMPUR : Investors are increasingly predicting that Malaysia, one of Southeast Asia’s last holdouts against interest rate cuts, will soon ease monetary policy as the economic toll from the global trade war intensifies. Pricing in the ringgit swaps market now reflects expectations of a 30 basis point rate cut by Bank Negara Malaysia (BNM) within the next six months — double the forecast from just a month ago. The sentiment was echoed in a recent auction of a three-year government bond, which saw a bid-to-cover ratio of 3.18 times, the highest since August for short-to-mid-term papers. A reduction in rates is expected to spur borrowing and investment activity, while signalling that BNM is growing increasingly concerned about the country’s growth outlook amid tariff-related uncertainty. “Ringgit rates market has increased dovish bets for BNM,” said Winson Phoon, Head of Fixed Income Research at Maybank Securities Pte Ltd. He added that a rate cut would likely make the three-year benchmark bond outperform other maturities on the yield curve. Maybank, Goldman Sachs, and CIMB Bank all anticipate a potential 25 basis point cut later this year, with Maybank expecting it to materialise by end-2025. Malaysia’s economy expanded 4.4% year-on-year in the first quarter — the slowest pace in a year and below market expectations. Inflation also remains muted, with March headline prices rising only 1.4%, the lowest increase in four years. The International Monetary Fund recently revised Malaysia’s 2025 growth forecast to 4.1%, down from earlier estimates and below the government’s current target of 4.5%-5.5%, which is now under review. Investor anticipation of policy easing could help attract more foreign inflows. In the first quarter, Malaysia recorded US$690 million in foreign investment into its conventional government bonds. By contrast, Thailand’s bond market received US$2.1 billion this month, as dovish sentiment around the Bank of Thailand gained traction. Elsewhere in the region, countries such as Indonesia, Thailand, the Philippines, and Singapore have already moved to ease monetary policy since the latter half of 2024. Although Bank Indonesia held rates steady this week, it signalled further room for easing. BNM’s governor has said that Malaysia has other policy tools to address the impact of US tariffs. Still, investors appear unconvinced, particularly as economic indicators soften and the US continues to tighten its trade stance. Despite US President Donald Trump’s 90-day tariff pause to allow for more negotiations, his broader trade policies still cast a shadow. This week, Washington imposed new solar tariffs on multiple countries, including a 34.4% duty on Malaysian manufacturers. The United States remains Malaysia’s second-largest export destination after China, making the stakes especially high. Trade Minister Tengku Zafrul Aziz is scheduled to meet US Trade Representative Jamieson Greer in Washington today, as Malaysia seeks exemptions or adjustments to the imposed tariffs. Malaysia, along with China, Vietnam, Hungary and Mexico, ranks among the most vulnerable emerging markets to tariff-related economic disruption, according to Goldman Sachs strategists Andrew Tilton and Kamakshya Trivedi.

KUALA LUMPUR: The International Monetary Fund (IMF) has lowered Malaysia’s real gross domestic product (GDP) growth projection for 2025 to 4.1%, down from its earlier forecast of 4.7%, citing broader regional and global economic headwinds. This adjustment, published in the IMF’s April 2025 World Economic Outlook report titled “A Critical Juncture Amid Policy Shifts,” aligns with similar downward revisions across Southeast Asia. The Fund also anticipates Malaysia’s economy will grow by 3.8% in 2026. The revised outlook comes amid a cut in the global GDP growth forecast to 2.8% for 2025—a 0.5 percentage point drop from the IMF’s January estimate—highlighting the fragile state of the global recovery. Regionally, Indonesia’s 2025 growth forecast has been lowered to 4.7% from 5.1%, the Philippines to 5.5% from 6.1%, and Thailand to 1.8% from 2.9%. The IMF attributes the downgrades to heightened policy uncertainty, particularly from escalating trade tensions. “Major policy shifts are reshaping the global trade landscape and reigniting uncertainty,” the IMF said, pointing to the US’s recent tariff escalations. The latest round of widespread tariffs announced on April 2 triggered steep declines in global equity markets and surging bond yields, although partial recoveries followed subsequent policy clarifications. Despite the challenges, the Fund noted that signs of economic stabilisation had begun to emerge through 2024. Inflation has been moderating, labour markets are nearing pre-pandemic levels, and central banks are approaching their inflation targets. In terms of industrial production, the IMF highlighted diverging recovery trajectories. While output has surged in China, smaller EU nations, and ASEAN-5 economies, it remains subdued in Japan and major EU economies. The US, meanwhile, has seen a stronger rebound in its industrial sector compared to other advanced economies. Commodity prices are also expected to shift notably in 2025. Fuel prices are projected to decline by 7.9%, with oil and coal prices falling by 15.5% and 15.8% respectively. However, natural gas prices are expected to jump 22.8% due to colder-than-anticipated weather and disruptions in Russian supply routes. Non-fuel commodity prices are forecast to rise by 4.4%. The IMF concluded that the global economy remains at a critical juncture, as it grapples with the aftershocks of past disruptions and navigates ongoing policy realignments.