Investment & Market Trends

GEORGE TOWN: Sime Darby Auto ConneXion (Auto ConneXion), the sole distributor for Ford in Malaysia, has officially opened its latest and largest 3S (Sales, Service and Spare Parts) showroom in Penang, located at Jalan Baru, Seberang Perai Tengah. With an investment of RM16.6 million, this state-of-the-art facility strengthens Auto ConneXion’s network in the northern region, reinforcing its commitment to delivering an enhanced customer experience for Ford enthusiasts in Malaysia. Sime Motors Southeast Asia managing director Jeffrey Gan said the new showroom reflects the company’s dedication and effort to continuously raise the bar for its customers. “Expanding our network will enable us to ensure that the Ford experience is more accessible in the northern region, providing an unparalleled ownership journey,” he said in a statement today. Echoing this sentiment, Auto ConneXion managing director Turse Zuhair said the new showroom not only reinforces company’s position as a leader in Malaysia’s pick-up truck segment but also highlights its dedication to enhancing the overall Ford ownership experience. “In line with Ford’s global initiative, the implementation of Ford’s Guest Experience in this showroom elevates customer interaction at every step of their journey,” he said. The showroom, spanning 46,000 square foot (sq ft), is designed to provide customers seamlessness comfort and quality service. Upon arrival customers are greeted with personalised service by a concierge, provides a comfortable space for them to enjoy their Ford Experience while digital and streamlined processes ensure optimised efficiency, from vehicle enquiries to after-sales service. In addition to the 3S showroom, Auto ConneXion has launched a 28,000-sq ft body and paint centre, located seven kilometres away at Taman Perindustrian Saga Jaya, Perai, offering a comprehensive range of services that include vehicle body repair, spray painting, windscreen replacement, and polishing. To celebrate the showroom’s grand opening, Auto ConneXion offers customers a complimentary five-year Ford Blue Oval Service Plan and savings of up to RM8,000 for purchase made in February (terms and conditions apply). – BERNAMA

KUALA LUMPUR: Grab’s on-demand services, spanning ride-hailing and delivery, made a substantial impact on Malaysia’s economy in 2023, contributing RM9.9 billion, according to a report by local economic consultancy EconWorks. This figure accounts for approximately 0.5% of the country’s gross domestic product (GDP), underscoring the platform’s growing economic influence. The report highlights Grab’s extensive operational reach, demonstrating not only its direct economic footprint but also its downstream effects on gig workers and businesses leveraging the platform. It estimates that Grab’s ecosystem facilitated up to 277,237 earning opportunities, encompassing driver-partners, merchant-partners, and supply chain workers. As a result, one in every 64 individuals in Malaysia’s workforce directly or indirectly benefits from Grab-related economic activities. Beyond job creation, the report notes that Grab-enabled earning opportunities have collectively added RM3.7 billion to household incomes. This influx of earnings among driver-partners and merchant-partners translates into greater financial security for Malaysian families and businesses. EconWorks Managing Director Dr. Wan Khatina Nawawi emphasized the role of tech platform companies in driving economic growth and digital transformation. “Over its twelve years of operations in Malaysia, Grab has significantly contributed to the economic well-being of various communities across the country,” she stated. “For every RM1 generated by Grab transactions, an additional RM1.50 of economic activity is created across the broader economy. This highlights the far-reaching impact of Grab’s ecosystem on millions of Malaysians in their daily lives.” Dr. Wan Khatina further noted that Malaysia’s supportive business environment, particularly its focus on the digital economy, has enabled platform companies like Grab to thrive and contribute meaningfully to economic development. By quantifying these contributions, the study provides a comprehensive perspective on Grab’s role within the broader Malaysian economy, reinforcing its significance in facilitating economic growth and digital inclusion.

DeepSeek’s breakthrough in artificial intelligence is helping drive a rotation of stock funds back into China from India. Hedge funds have been piling into Chinese equities at the fastest pace in months as bullishness on the DeepSeek-driven technology rally adds to hopes for more economic stimulus. In contrast, India is suffering a record exodus of cash on concerns over waning macro growth, slowing corporate earnings and expensive stock valuations. China’s onshore and offshore equity markets have added more than US$1.3 trillion (RM5.7 trillion) in total value in just the past month amid such reallocations, while India’s market has shrunk by more than US$720 billion. The MSCI China Index is on track to outperform its Indian counterpart for a third-straight month, the longest such streak in two years. DeepSeek has shown “that China actually has companies that are forming a vital part of the whole AI ecosystem,” said Ken Wong, an Asian equity portfolio specialist at Eastspring Investments. His firm has been adding Chinese internet holdings over the past few months, while trimming smaller Indian stocks that had “run up way past their valuation multiples.” The rotation marks an about-face from the pivot into India seen over the past several years, luring funds away from China. That was based on an India’s infrastructure spending splurge and its potential as an alternative manufacturing hub to China. Domestic-focused India has also been seen as a relative haven amid Donald Trump’s tariff plans. China looks to be regaining its former appeal on a fundamental reevaluation of its investability, especially in tech. After scaring investors with corporate crackdowns not long ago, Beijing may actually help push the new AI theme, as indicated by the news that entrepreneurs including Alibaba Group Holding Ltd co-founder Jack Ma have been invited to meet the nation’s top leaders. DeepSeek-related developments are likely to help boost China’s economy as well as its markets, providing an extended boost, said Vivek Dhawan, a fund manager at Candriam. “If you put all the pieces together, China becomes more attractive than India in the current set-up on a risk-reward basis.” The valuation differential adds to China’s allure as well. The MSCI China Index is trading at just 11 times forward earnings estimates, compared with about 21 times for the MSCI India Index. An analysis of Bloomberg data on regional allocations by some of the largest active Asian equity funds shows most are reducing exposure to Indian equities and adding Chinese stocks in recent months. While DeepSeek has helped accelerate the flows into China, possible upcoming announcements of further Chinese stimulus remain important as well, according to Andrew Swan, head of Asia ex-Japan equities at Man Group. “We think policy will now shift toward consumption, and a targeted attempt to encourage the currently high levels of savings to be deployed,” said Swan. The Man Asia Ex-Japan Equity fund he manages increased its China exposure to 40% from 30% in the past year while trimming its India exposure to 18% from 21%. A complete reversal in fund flows is unlikely, with India stock bulls including Morgan Stanley saying the recent correction may be overdone and the nation’s long-term growth story remains intact. Meanwhile, the additional 10% tariffs imposed on China by Trump have reinforced Amundi SA’s neutral stance on Chinese equities, according to Asia senior investment strategist Aidan Yao. “While a truce is possible as the two sides converge in trade talks, the external dynamics will remain fluid and challenging for China in the foreseeable future.” There’s also scepticism among traders who have been burned by failed China rallies in the past. Some have pointed to crowded trading and increasing valuations as reason for caution. Helen Zhu, chief investment officer at Nan Fung Trinity HK Ltd, sees uncertainty over whether DeepSeek’s AI success can be repeated. “At the end of the day, you don’t really know what the potential monetization opportunities are over the medium to longer term,” she said. Nonetheless, there’s a palpable buzz of “China’s back” in the markets of late. The positives keep piling up, with Alibaba adding US$100 billion in market value over the past five weeks and the Hang Seng Tech Index entering a bull market. “The DeepSeek news was a well-timed and impactful catalyst that market participants were able to build a case for a reentry” into Chinese markets, said Nicole Wong, a portfolio manager at Manulife Investment Management. “From a tactical standpoint, we think it makes sense to be taking advantage of this momentum.” –BLOOMBERG

Financial Performance Highlights Revenue: +6% to RM2.80 billion (FY23: RM2.64 billion) Profit Before Tax (PBT): +14% to RM584.3 million (FY23: RM510.9 million) Net Profit: +21% to RM466.7 million (FY23: RM386.8 million) – Highest in Group history Dividend: Proposed final 115 sen per share, bringing total FY24 dividend to 155 sen per share Heineken Malaysia Berhad (HEINEKEN Malaysia) has delivered a strong financial performance in FY24, achieving its highest-ever net profit, fueled by strategic commercial execution, cost management, and a rebound in consumer confidence. A key driver of profitability was the recognition of deferred tax income linked to reinvestment allowances, reducing the effective tax rate. Revenue growth was further supported by an extended festive sales period and strong demand leading up to Chinese New Year 2025. 4QFY24 Momentum: Year-End Sales Surge Revenue: +13% to RM823.1 million (4QFY23: RM728.4 million) Profit Before Tax: +32% Net Profit: +42% The fourth quarter surge was driven by robust year-end festive demand, as CNY 2025 fell closer to the year-end, accelerating pre-holiday sales. Effective cost and value management, alongside the deferred tax impact, further strengthened profitability. Strategic Growth & Market Expansion Under its EverGreen strategy, HEINEKEN Malaysia remains committed to consumer-centric growth and portfolio expansion: New Product Innovation: Tiger Soju Flavoured Lager & Edelweiss Peach, both gaining traction. Brand Strength: Heineken®, Tiger Beer, and Guinness won Gold at the Putra Brand Awards. Edelweiss secured Bronze at the Putra Aria Brand Awards for the second year. Drinkies platform received two awards at the Asian Experience Awards 2024. Investing in Talent & Global Recognition Star Academy: Trained 10,000+ bartenders nationwide. Global Achievement: A Malaysian-trained bartender won the 2024 Heineken® Global Draught Championship in Amsterdam, reinforcing the brand’s commitment to excellence. Navigating Market Challenges & 2025 Outlook Managing Director Martijn van Keulen stated: “We are committed to sustaining our growth momentum by sharpening commercial execution while staying agile in an evolving business environment. Our EverGreen strategy will drive long-term resilience, efficiency, and cost optimisation.” While macroeconomic stability is improving, the Group remains cautious of market uncertainties. The decision to maintain beer excise duties in Budget 2025 is seen as crucial to curbing illicit trade, which threatens industry growth and government revenue. HEINEKEN Malaysia continues to work with authorities through the Multi-Agency Task Force to combat the illicit alcohol market. Sustainability Leadership & Industry Recognition RM1.4 billion tax contribution in 2023 (53% of total revenue). Green Initiatives: Brewery solar panel installation, water security projects, and responsible consumption advocacy (since 2010). Awards: MDBC Best Sustainable Built Environment Award 2024. UN Global Compact Sustainability Awards 2024 for leadership in water resilience & SDG reporting. HEINEKEN Malaysia continues to balance profitability with sustainability, positioning itself for long-term growth in 2025 and beyond. For more details, visit www.heinekenmalaysia.com.

KUALA LUMPUR: Atome Financial, Southeast Asia’s leading digital financial technology platform and part of Advance Intelligence Group, is pleased to welcome a private credit fund managed by BlackRock, and InnoVen Capital as new consortium members in the accordion tranche of its previously announced three-year senior secured term loan facility. Together with the original tranche funded by EvolutionX Debt Capital in June 2024, the current facility size stands at a total of US$80 million. BlackRock’s private credit team brings unparalleled expertise and a robust track record in private credit investments. InnoVen Capital, a joint venture between Seviora (a wholly-owned subsidiary of Temasek Holdings) and UOB, is the leading venture debt provider supporting early and growth-stage companies across Southeast Asia, China, and India. Their involvement underscores the confidence in Atome Financial’s market leadership and growth trajectory.   In FY2024, Atome Financial – which comprises Atome Buy-Now-Pay-Later (“BNPL”) and Kredit Pintar, Indonesia’s leading digital lending platform – achieved strong business performance underpinned by:   +45% YoY revenue growth to US$280 million +35% YoY growth in Gross Merchandise Value (GMV) to US$2.5 billion Product portfolio profitability optimisation Operational efficiency via Generative AI across customer service, collections and product sales Achieved full-year profitability This positive momentum is expected to continue with full force going into FY2025. Celia Yan, Head of APAC Private Credit at BlackRock said: “Southeast Asia is one of the fastest growing regions in the world where we see attractive private credit investment opportunities. Atome Financial has established itself as a leading fintech player in Southeast Asia and we look forward to continuing to support their accelerated expansion.” Yik Ley Chan, Southeast Asia Private Credit Lead at BlackRock said: “Atome Financial has strategically positioned the business over the past few years and achieved a strong track record. We are pleased to be part of this investment and look forward to long-term collaboration with Atome Financial as their business embarks on the next phase of growth.”   “We are thrilled to partner with Atome Financial, one of the leading players in the industry, and look forward to building a strong and successful relationship,” said Ben Cheah, Partner at Innoven Capital SEA. “This collaboration underscores our unwavering commitment to supporting high-growth companies in the region.”   Andy Tan, Chief Commercial Officer, Atome Financial, said: “We are incredibly excited and honoured to welcome BlackRock and InnoVen Capital as our new lending partners. Their participation is testament to our continued operational excellence, market leadership and remarkable business momentum, which is expected to accelerate in 2025. This facility will help propel the growth of our expanded product suite, strategic partnerships and profitable regional portfolio to better serve the diverse financial needs of consumers across key Southeast Asia markets including Singapore, Malaysia, the Philippines and Indonesia.”

SINGAPORE: SG Holdings, a leading Japanese logistics company, today announced its acquisition of Morrison Express, a global freight forwarding and logistics service provider renowned for its expertise in semiconductor and high-tech logistics. This strategic acquisition will enhance the capabilities of the SG Holdings Group, significantly expanding on its Asian market presence and strengthening its position as a global leader in specialized logistics services. The acquisition brings together Morrison Express’s strong competitiveness in the technology sector, particularly in semiconductors and high-tech products, with the SG Holdings’ extensive logistics network and innovative supply chain solutions. Particularly in relation to the freight forwarding business, Morrison Express’ strength in air freight and high-tech verticals will be complementary with the ocean freight forwarding and commercial verticals (apparel and daily sundries) in which EFL Global, the Group’s core freight forwarding company, has its strengths. This complementary partnership, characterized by minimal overlap, creates a powerful synergy that will deliver enhanced value to customers across the globe.   “The acquisition will significantly enhance global network coverage, allowing the SG Holdings Group to provide better logistics solutions across different regions.” said Mr. Bokuto Yamauchi, the head of Global Strategy Department – SG Holdings and Chairman and CEO of the Expolanka Group. “Morrison Express’ established relationships within the technology sector and strong Asian market presence, combined with their expertise in semiconductor logistics, perfectly complements our existing capabilities and forward-thinking approach to supply chain management.”   The merger delivers immediate value to customers through enhanced operational efficiencies, powered by access to new resources, cutting-edge technology, and expanded infrastructure – all working in concert to provide faster, more reliable service. With an expanded geographic reach, the combined entity offers closer proximity to customers, ensuring more responsive support and service delivery. Customers will benefit from comprehensive end-to-end supply chain solutions spanning air, ocean, rail, and road freight, complemented by tailored solutions that leverage Morrison’s strong supplier and partner relationships in the technology sector. This strategic merger reinforces the combined organization’s dedication to delivering high standards and innovative solutions across all service offerings. Through shared expertise and resources, the integration positions the company to stay ahead of evolving industry trends and exceed customer expectations in an increasingly dynamic global market.

PETALING JAYA: Malaysia is optimistic about achieving a trade growth trajectory in 2025 and maintaining levels above RM2 trillion, said investment, trade and industry minister Tengku Zafrul Aziz. He said the optimism was based on the assumption that the country’s economy would continue to expand, despite global challenges such as a potential slowdown in the Chinese economy and a new US administration, Bernama reported. “Given the current global situation, if conditions worsen – though unlikely due to our economic trajectory – we will continue to achieve trade growth,” he said at the Golf Kita 2025 golf tournament at the Glenmarie Golf & Country Club in Shah Alam today. The growth in exports and imports drove Malaysia’s total trade for 2024 up 9.2% to a new record high of RM2.879 trillion. This also marks the fourth consecutive year that the country’s total trade recorded levels above RM2 trillion. “Our target is to maintain the RM2 trillion we achieved last year. We still expect positive growth in our economy,” said Tengku Zafrul. Golf Kita 2025 is a fundraising event dedicated to welfare, research and knowledge-building initiatives for underprivileged communities. Sultan of Pahang Al-Sultan Abdullah Sultan Ahmad Shah attended the event. Also in attendance were deputy prime minister Fadillah Yusof and Selangor menteri besar Amirudin Shari. Golf Kita 2025 was organised by the Southeast Asian Futures Initiative Centre, Yayasan TZA and Kelab Perkaderan.–FMT

DUBAI: Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has successfully closed a US$400 million Shariah-compliant Commodity Murabaha facility, marking its strategic return to the Islamic finance market for the first time in eight years. This milestone reflects AFC’s commitment to diversifying funding sources while expanding access to ethical and sustainable financing to meet Africa’s infrastructure needs. Initially launched at US$300 million, the facility was upsized to US$400 million as strong investor demand resulted in a 47% oversubscription. The transaction attracted participation from eleven leading Islamic financial institutions, including new AFC partnerships with Abu Dhabi Islamic Bank PJSC, Al Rajhi Bank, and Emirates Islamic Bank. “This transaction reaffirms AFC’s role as a bridge between global capital and Africa’s most urgent infrastructure needs,” said Samaila Zubairu, President and CEO of AFC. “The overwhelming demand demonstrates strong confidence in our investment strategy and Africa’s increasing importance in the Islamic finance landscape. By expanding our international funding sources, we continue to create innovative financial solutions to drive impactful and sustainable development across the continent.” Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, and SMBC Bank International Plc acted as Joint Lead Arrangers and Bookrunners for the transaction, reinforcing AFC’s strong relationships with leading global financial institutions. The transaction builds on AFC’s proven track record in Islamic finance, including its groundbreaking US$230 million Sukuk—the first-ever by an African supranational entity—issued in 2017. AFC has consistently broadened its funding portfolio with innovative transactions that open new capital markets to attract global investors to African infrastructure. In January, AFC raised US$500 million from its first perpetual hybrid bond. In the same month, AFC received the highest possible credit ratings from S&P Global (China) Ratings and China Chengxin International Credit Rating Co. Ltd (CCXI) ahead of a potential panda bond issue. This financing facility was structured in accordance with standards set by the Accounting and Auditing Organization for Islamic Financial Institutions, or AAOIFI, ensuring full compliance with global Islamic finance principles. Islamic finance, including Murabaha structures, is widely regarded as ethical and sustainable due to its emphasis on asset-backed financing, risk-sharing, and the prohibition of speculative practices. These principles align with AFC’s mission to foster responsible investment that promotes long-term infrastructure development and economic stability in Africa. “Islamic finance plays a growing role in our funding strategy, helping us tap into a diverse pool of investors who share AFC’s commitment to sustainable and responsible investing,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC. “The success of this Murabaha facility highlights the strong appetite for African infrastructure investments and underscores AFC’s ability to structure transactions that meet global investor expectations.” Proceeds from the 3-year Murabaha financing will support AFC’s mission to accelerate industrialization, infrastructure development, and economic growth across the continent. A number of AFC’s transformative infrastructure projects are based in the Middle East and North Africa region, including Xlinks in Morocco, a pioneering project designed to supply sustainable electricity from the Sahara to the UK. Through the acquisition of Lekela Power, AFC, with its partner, Cairo-based Infinity Power, is Africa’s largest investor in clean energy, targeting 3GW of renewable capacity by 2026.