Investment & Market Trends

KUALA LUMPUR: The Employees Provident Fund’s (EPF) total distributable income for the 6 months ended 30 June 2024 (IH 2024) increased by 29% to RM36.70 billion from RM28.40 billion in the previous corresponding period. In a statement today, the EPF said the distributable income does not include mark-to-market gains of securities that have not been realised. It said the EPF’s total distributable income for the second quarter (2Q 2024) after write-downs rose 25% to RM17.50 billion from RM13.98 billion in the same quarter last year. EPF Chief Executive Officer Ahmad Zulgarnain Onn said favourable market conditions in Malaysia and internationally contributed to the 29% growth in distributable income in 1H 2024, while assets under management grew to RM1.21 trillion. “The Malaysian market has benefited from increasing investor interest in growth-oriented policies and fiscal reforms, while the international markets such as the US benefited from continued solid macroeconomic conditions, declining inflation and anticipation of the beginning of an interest rate reduction cycle,” he said. Ahmad Zulqarnain said despite relatively calm market conditions, risks persist, as illustrated in the recent sell-down in global markets and sharp increases in volatility caused by market participants unwinding some concentrated and crowded positions. “As a long-term investor, the EPF will continue with its strategy of constructing a highly diversified portfolio driven by its strategic asset allocation,” he added. During the quarter under review, the EPF reported that income from equity investments continued to be the main contributor to income for 2Q 2024 at RMI0.75 billion after write-downs, accounting for 61% of the total distributable income. The EPF said better equity market performance, both domestically and in the global developed markets, drove income growth compared to the RM7.84 billion recorded in 2Q 2023. It said write-downs for the period were marginal at RM690 million due to active portfolio management by the fund managers and overall better equity market performance. “Fixed income continued to provide a steady stream of income, mitigating the impact from short-term market volatility and providing stability for the EPF’s overall income. “This asset class, comprising Malaysian Government Securities and equivalents, as well as loans and bonds, contributed 33% or RM5.72 billion, to EPF’s total distributable income for 2Q 2024,” it said. It said real estate and infrastructure registered an income of RM500 million, while money market instruments generated RM530 million, which is in line with the prevailing interest and profit rates. As of 30 June 2024, the EPF’s investment assets stood at RM1.21 trillion, of which 38% is in overseas investments. In 2Q 2024, the fund’s overseas investments generated RM8.64 billion or 49% of the total distributable income recorded. EPF said it has allocated more than 80% of its annual allocation for new investments to the domestic market and remains dedicated to supporting and contributing towards achieving the goals outlined in the MADANI Economy framework. “Of the total distributable income, RM31.34 billion was generated for Simpananan Konvensional and RM5.36 billion for Simpanan Shariah,” it said. Economic outlook remains positive Ahmad Zulqarnain said the strong performance of the domestic economy reflects Malaysia’s resilience and growth potential, which is driven by a healthy labour market, favourable government policies and the global tech upcycle. “Malaysia’s economic outlook remains positive. Bank Negara Malaysia’s forecast of full-year growth between 4% and 5%, amid moderate inflation averaging between 2% and 3.5%, is supportive of a positive investment climate,” he added. On the global economic landscape, Ahmad Zulqarnain said growth is projected to remain stable in 2024, with more central banks expected to begin easing monetary policy in the second half of the year as inflation continues to ease. However, he said EPF remains vigilant as the outlook remains weighed down by risks such as persistent inflation, a sharper-than-expected growth slowdown, uncertainty surrounding the US election and economic policies, China’s struggling property sector and weak economic recovery, and ongoing geopolitical tensions. During 1H 2024, EPF saw 235,032 new member registrations, bringing the total membership to 16 million. “A total of 8.6 million are active members, which now represent 50% of Malaysia’s 17.15 million labour force. “New employer registration recorded during the period was 37,284, with the total contributions received increased to RM57.35 billion in 1H 2024 from RM50.48 billion in 1H 2023,” it added. — BERNAMA

KUALA LUMPUR: Malaysia, as a middle power, can play its role in global supply chain security amid the US-China trade stand-off, particularly via its electrical and electronics and renewable energy (RE) sectors. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said, that globally, investors in industries such as electric vehicles (EVs) and solar power are focused on securing sensitive supply chains. “The emergence of competing supply chains, and the United States’ and China’s efforts to decouple from each other’s economies, has reshaped the dynamics of both international trade and investments,” he said in his keynote address at the Institute of Strategic and International Studies’ PRAXIS 2024 policy conference yesterday. Tengku Zafrul said understanding the clear divisions within the global tech ecosystem has been crucial in positioning Malaysia as a preferred investment destination, particularly for semiconductors. “China’s ‘Made in China 2025’ initiative seeks to establish dominance in crucial technologies such as artificial intelligence AI, robotics, RE, EVs, aerospace and biotechnology. In response, the United States has restricted critical exports and domestic innovation investments through initiatives such as the CHIPs Act. “As a result, many investors are seeking diversification across regions and sectors, as a risk-mitigation measure. Security concerns and over-reliance have led both economies and their regional partners to invest more in separate, rival tech supply chains,” he said. Tengku Zafrul said that at the heart of today’s “Tech Cold War” lies a battle over the semiconductor supply chain, and Malaysia’s 50-year-old semiconductor sector places the country in an excellent position to reap such opportunities. “This is why we introduced the National Semiconductor Strategy (NSS) to move our semiconductor producers up the global value chain to export more higher-value products. “We have already welcomed global investors such as Infineon, Intel and Texas Instruments who have increased their investments in Malaysia, due to our agile tech supply chains. Indeed, as technology continues to evolve, investors are also considering the transformative potential of emerging technologies such as generative AI,” he said. To that end, Tengku Zafrul said, Malaysia is also actively courting investments in related assets such as robotics, AI-powered logistics suppliers and industrial real estate – in short, hardware, software and applications across the AI ecosystem – to help global investors mitigate risks. “Indeed, the semiconductor industry is the backbone of today’s biggest technologies, including AI, EVs and factory automation. It is also pivotal in securing economic prosperity and national security for tech superpowers such as China and the United States, especially as Taiwan still dominates semiconductor manufacturing worldwide,” he said. According to the minister, analysts have estimated that US initiatives, such as the CHIPS Act, may inject roughly US$100bil into the semiconductor industry across the United States, Europe and Asia, with Malaysia having the industrial capacity, track record and stability to reap opportunities successfully. “Malaysia can truly become a ‘middle-power broker’ to support the security of the global tech supply chain. “This is why the NSS has earmarked over RM25bil over the next decade to strengthen and upscale Malaysia’s semiconductor sector through talent development, targeted initiatives for local companies, and incentives to promote investment in high-value-added front-end activity. “Aside from our efforts on developing talent, Malaysia must also apply data-driven solutions. Hence, the continued need for strategic, deliberate and conscious action by policymakers like the Investment, Trade and Industry Ministry,” he said. — BERNAMA

SINGAPORE: Mintegral, the leading data-driven, programmatic, and interactive advertising platform dedicated to helping mobile apps bridge the gap among the world’s most valuable markets, today announces the key findings in the dynamic market of Southeast Asia from its latest report ‘The State of Media Buying 1H 2024 – SEA Spotlight’. The report reveals that Southeast Asia remains the second-largest market by ad media buying volume (app with ad media buys) after the United States (excluding China), reflecting the region’s dynamic growth and strategic importance in the mobile gaming industry. The region ranks first for ad views, again ex-China. This represents a year-on-year growth of 11% in the volume of ad creatives produced compared to the other regions. Southeast Asia makes up approximately 55% of global in-promotion mobile games compared to global figures. Trailing behind the US, the Southeast Asian region is expanding rapidly. Countries like Indonesia, Thailand, and Vietnam lead in market size and revenue, with Indonesia emerging as the largest single market. The region’s mobile game revenue distribution shows Thailand and the Philippines as the most lucrative markets, with gaming revenues expected to see substantial growth by 2027. Rebounding from last year, action and puzzle games are particularly prominent in the region, both in terms of the number of games promoted and the volume of ad creatives produced, while playable ads are slowly gaining traction. The shift towards playable advertising is pronounced, with a high output of new playable creatives catering to various game genres. This trend is particularly strong in markets like Indonesia, Vietnam, and Thailand, where playable ads have become a crucial component of user acquisition and engagement strategies, underscoring the region’s robust demand for mobile gaming and its burgeoning advertising ecosystem. Mintegral Chief Executive Officer, Erick Fang said, “Southeast Asia’s position as a leading market by media buying highlights the region’s critical role in the global mobile gaming ecosystem. Our report provides valuable insights for marketers and game developers aiming to capitalise on this vibrant market. By understanding regional trends and adopting effective advertising strategies, businesses can unlock new growth opportunities and build awareness around their games.” Benefiting from this growth are games in the Philippines, demonstrating the efficacy of targeted advertising strategies. By leveraging Mintegral’s targeting capabilities and flexible bidding strategies, one of the games achieved over 2 million user downloads and improved in-game purchase rates, significantly boosting its market presence. Part of Mobvista Group, Mintegral is a data-driven, programmatic, and interactive advertising platform dedicated to helping mobile apps bridge the gap among the world’s most valuable markets.

KUALA LUMPUR: Property developer Encorp Bhd has suspended its Group Chief Executive Officer (CEO) Hazurin Harun, effective yesterday, to facilitate an internal investigation related to allegations made involving the Malaysian Anti-Corruption Commission (MACC).   According to Encorp, Hazurin’s suspension will last until further announcement by the board and the company will continue its business operations as usual during the suspension period. Meanwhile, its Group Chief Financial Officer Kamarul Azman Kamarozaman@Amir will be appointed as the officer-in-charge who will temporarily assume the duties and functions of the Group CEO. Based on a statement by the MACC regarding the remand of 3 Encorp officers on 8 August 2024, the real estate developer said that it is committed to good governance and transparency throughout the investigation process. “The company is closely monitoring the situation to ensure full compliance and uphold our strong commitment to integrity,” Encorp said in a statement, without disclosing any further details on the reasoning behind the remand of its 3 officers.

KUALA LUMPUR: RPM Platform Markets APAC, a group comprised of leading brands of construction chemical and coatings products in the Asia-Pacific region officially opened a state-of-the-art manufacturing plant at the heavy industrial zone of UMW High Value Manufacturing Park, Serendah. The new Serendah plant serves as a regional manufacturing hub underscoring a strategic move to strengthen RPM Platform Markets APAC’s leadership in the Asia-Pacific construction market. Equipped with cutting-edge technology, the plant features automated powder manufacturing systems with robotic palletisers and new equipment for producing speciality coating materials. This investment in technology not only boosts efficiency but also ensures high standards of quality and safety. Speaking at the launch event, RPM Platform Markets APAC Managing Director, Saptak Roy said, “The new plant marks a milestone for RPM Platform Markets APAC. Malaysia’s strategic location, robust infrastructure and business-friendly environment made it the ideal choice for this significant investment. The plant’s location in the UMW High Value Manufacturing Park in Serendah, a designated heavy industrial zone, ensures it meets the operational needs of RPM Platform Markets APAC.” According to Roy, the facility demonstrates a move to strengthen the company’s position as a leading provider of construction and coatings products in the Asia-Pacific region. It reinforces our commitment to enhancing our presence and capabilities. The expansion allows for a substantial increase in production capacity – almost doubling RPM Platform’s liquid production and bringing our powder production to almost 7 times more than what it was capable of previously. The new plant incorporates several eco-friendly features, including a rainwater harvesting system, LED lighting for energy efficiency, bulk tanks for liquid storage to reduce waste, and electric forklifts to minimize carbon emissions. Additionally, the plant uses Flowcrete’s epoxy terrazzo flooring containing recycled glass content and includes a roof garden to promote a healthy working environment. “These sustainable practices demonstrate our dedication to environmental responsibility and creating a safe, eco-friendly workplace for our employees,” said Roy. The facility will produce a wide range of products under several RPM Platform brands, including Tremco, Flowcrete, Nullifire, Euclid Chemical, Vandex, Dryvit, Carboline, Stonhard and more, supporting the diverse needs of the construction industry across the region. The new plant is set to create numerous employment opportunities for the local community in Serendah and surrounding areas. Local talent will find opportunities in various fields such as operations, manufacturing, engineering, R&D, logistics, IT support, and more. RPM Platform Markets APAC group companies are also committed to engaging with local universities by offering internships and collaborating on product development and research initiatives.

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim today urged all civil servants to provide far better service to the people in line with the salary adjustment to be announced by the government. Emphasising this point at the launch of the Malaysia MADANI Civil Servants’ Housing programme in Bandar Sri Permaisuri, Anwar said the method and details of the salary adjustment will be announced, with some details to be revealed this month. “Although there are dissenting voices that never understand gratitude and never accept reality, believe me, I will announce it late, partly in August and fully as I promised in October in the national Budget. And it will be implemented starting 1 December. “What is the scheme for civil servants? It is the highest salary increase in the nation’s history since independence, for two reasons. First, the country is developing but there has been no comprehensive salary review for 12 years and second, to recognise their role,” he said. Also present were Housing and Local Government Minister Nga Kor Ming, Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa, Chief Secretary to the Government Tan Sri Mohd Zuki Ali, Public Service Director-General Datuk Seri Wan Ahmad Abdul Aziz and MP for Bandar Tun Razak Datuk Seri Dr Wan Azizah Wan Ismail. — BERNAMA