Investment & Market Trends

Batu Kawan Bhd, through its wholly-owned subsidiary Whitmore Holdings Sdn Bhd, has agreed to acquire a combined 47.7% stake in MKH Bhd from the Chen family for RM549.8 million, or RM2 per share. Following the acquisition, Batu Kawan will launch a mandatory general offer (MGO) for the remaining shares in MKH at RM2 per share. The group said it intends to privatise MKH if it manages to secure at least a 90% stake in the company. The acquisition also includes a 3.9% stake in MKH Oil Palm (East Kalimantan) Bhd (MKHOP). MKH and its subsidiaries currently hold a 65.3% stake in MKHOP. Once the MGO for MKH becomes unconditional, Batu Kawan will also be required to undertake an MGO for MKHOP at 64.78 sen per share. However, the group intends to maintain MKHOP’s listing status on Bursa Malaysia. According to Bursa Malaysia filings, Whitmore entered into unconditional and conditional share sale agreements with several members of the Chen family, investment vehicle Chen Choy & Sons Realty Sdn Bhd, and related parties. The acquisitions include a 29.6% stake in MKH valued at RM340.9 million and an additional 18.1% stake worth RM208.9 million, both priced at RM2 per share. The proposed MGO for MKH could cost Batu Kawan up to RM603.8 million, which will be financed through bank borrowings. In total, the group may spend up to RM1.15 billion to complete the privatisation exercise. The RM2 offer price represents a 20.5% premium over MKH’s last closing price of RM1.66, as well as a premium ranging between 37.34% and 57.22% compared with the stock’s historical volume-weighted average prices over different periods. Batu Kawan said the acquisition would strengthen and expand its earnings base in both the property development and plantation sectors. The group added that the enlarged business could unlock operational synergies by leveraging MKH’s landbank, project management expertise and plantation assets in East Kalimantan, Indonesia. The proposals are expected to be completed in the second half of 2026. Shares of MKH last closed at RM1.66, valuing the company at RM973.7 million, while Batu Kawan ended at RM20.88 with a market capitalisation of RM8.34 billion.

A new workforce study released ahead of the Johor-Singapore Special Economic Zone (JS-SEZ) Masterplan announcement reveals a growing disconnect in Johor’s labour market. As the state prepares to move up the value chain, expectations for income are rising faster than workforce readiness. The findings suggest that the success of JS-SEZ will depend not only on investment and infrastructure, but also on whether workforce capability and expectations can be brought back into alignment. While 45% of Johor’s workforce is already capable of driving adoption, a significant portion remains in transition, with uneven exposure to advanced tools and limited readiness for higher-value roles. At the same time, income expectations remain anchored around a relatively narrow band, with many workers defining a “good life” within modest salary thresholds, even as the state’s economic ambitions continue to rise. This creates a structural tension — a workforce that is operationally strong, but not yet uniformly prepared for the type of growth it increasingly expects. “The narrative has been that Johor needs more talent. What this data shows is more nuanced — the talent already exists, but it is not yet aligned to where the economy is heading,” said See Toh Wai Yu, CEO of Central Force International. “What we are now seeing is a widening gap between expectations and readiness, and that gap will ultimately shape how far and how fast Johor can move.” Readiness Concentrated in Certain Areas The study also highlights a geographic imbalance across the state. Johor Bahru stands out as the most digitally prepared district, with a concentration of talent capable of supporting advanced services and technology-enabled industries. In contrast, districts outside the urban core are dominated by technically skilled and trainable workers, but with more limited exposure to AI and advanced digital tools. This creates a structural divide where execution capability is strong, but readiness for rapid innovation remains more limited. Transformation Must Follow Readiness The findings suggest that Johor’s primary challenge is not capability, but how transformation is sequenced. Advancing too quickly into high-value sectors in areas that are not yet ready risks slowing productivity gains and widening inequality. “The biggest risk is not that Johor moves too slowly — it’s that we move too uniformly. Transformation must follow readiness,” said Wai Yu. “If we mismatch ambition with capability, we risk creating friction instead of momentum.” Income Expectations Reflect Wider Economic Perceptions Beyond skills, the study points to a deeper structural issue in how workers evaluate opportunity. A majority of Johoreans indicated that RM3,000 or below is sufficient for a “good life”, while only a small minority associated it with incomes above RM5,000. This perception remains consistent even among higher earners, suggesting that expectations are shaped less by individual earning potential and more by how Johor is collectively perceived as an economy. Johor is therefore viewed as stable and affordable, but not necessarily aspirational, which may limit how quickly workforce expectations evolve alongside higher-value economic activity. Implications for JS-SEZ As Malaysia approaches the JS-SEZ Masterplan announcement, the findings reposition workforce alignment as a key determinant of success. Johor enters this phase with a strong execution base and a sizable pool of trainable talent. However, unlocking higher-value growth will depend on how effectively capability, expectations and investment are aligned. In this context, the success of the JS-SEZ may depend less on how fast Johor moves, and more on whether it moves in the right sequence — ensuring that ambition does not outpace readiness. The lite report is available at: Central Force International Central Force International is a member of the American Association for Public Opinion Research (AAPOR) Transparency Initiative and is currently the only Malaysian research organisation participating in the initiative.

Monee Capital Malaysia Sdn. Bhd. (Monee) today announced the official public launch of SFinancing-i, a Shariah-compliant digital financing solution now available to all Shopee users* in Malaysia. Designed to offer greater financial flexibility, SFinancing-i provides users with convenient access to instant cash financing directly through the Shopee app. With financing of up to RM20,000 and flexible payment tenures of up to 24 months, SFinancing-i aims to support users’ personal financial needs through a seamless and fully digital experience. Approved users can instantly withdraw funds to their bank account or ShopeePay wallet, with no income documents or activation fees required. In conjunction with the launch, users who activate and make their first financing request can enjoy a special 1% monthly profit rate* promotion for payment tenures of up to 24 months. Powered by Monee Capital Malaysia in collaboration with Sedania As Salam Capital, and certified by Masryef Advisory, SFinancing-i is built on the Shariah principle of Commodity Murabahah (Tawarruq), offering users a transparent and accessible financing solution that aligns with Islamic financing principles. Key features of SFinancing-i include: ● Financing limit up to RM20,000● Flexible payment tenures of up to 24 months● Instant cash withdrawal to bank accounts or ShopeePay wallets● 1% monthly profit rate for the first financing request● Fully digital application process with no income documents required● Zero activation fees Eligible users can activate SFinancing-i directly through the “Me” tab on the Shopee app. The service is available to eligible Malaysian citizens and permanent residents aged 18 years old and above. For users seeking higher financing amounts, Monee also offers SFinancing-i Xtra, a term financing facility that provides eligible users** with financing of up to RM50,000 and profit rates from as low as 0.75% per month.

The High Court has dismissed Bursa Malaysia Securities Bhd’s case against MAA Group Berhad over alleged breaches of listing rules in relation to the shareholder approval process for the sale of KNM Group Bhd’s German assets. In its ruling, the court held that MAA should not automatically be treated as a listed issuer subject to full listing obligations simply because it convened an extraordinary general meeting (EGM) for KNM shareholders under the Companies Act 2016. The court also found that any procedural irregularity, if present, could be rectified and there was insufficient evidence of substantial injustice. Written grounds for the decision will be issued later. The case, heard on May 14, 2026, was linked to an EGM initiated by MAA as KNM’s largest shareholder to approve the proposed disposal of Deutsche KNM GmbH, despite objections from Bursa. Other defendants included KNM Group Bhd, CIMSEC Nominees (Tempatan) Sdn Bhd, and KNM Process Systems Sdn Bhd. Bursa had sought to halt the EGM until full compliance with the Main Market Listing Requirements was met. The suit was filed on Oct 28, 2025, ahead of the originally scheduled Oct 30, 2025 meeting. MAA, led by Tunku Datuk Yaacob Khyra, holds a 19.37% stake in KNM. MAA said the High Court dismissed the case with no order as to costs, while Bursa may still appeal the decision within 30 days. The ruling comes amid KNM Group Bhd’s broader legal and restructuring challenges following the collapse of its €270 million deal to sell its German unit, Deutsche KNM GmbH, to Japan’s NGK Insulators. KNM is seeking damages including RM363 million for loss of market value after delisting, €46.5 million in German bank exposures, and RM42.69 million in costs. KNM, which was classified as a Practice Note 17 (PN17) company, had been trying to complete the disposal of its German assets, Borsig, which it acquired in 2008 for €350 million. The sale was part of its plan to reduce debt and exit PN17 status, with expected debt reduction of about RM1.3 billion and working capital gains of around RM100 million. However, Bursa rejected KNM’s restructuring plan in October 2025, saying it failed to demonstrate long-term viability and did not adequately address its financial issues. KNM later withdrew its appeal and proceeded with delisting in November 2025 after Bursa warned against holding the vote without complying with listing rules. The EGM was eventually adjourned to a date after delisting took effect.

The MADANI government will provide more than RM5 billion in microfinancing facilities in 2026, aimed at benefiting over 400,000 micro-entrepreneurs nationwide through loans of up to RM100,000. The Ministry of Finance (MOF) said in a statement that the financing will be channelled through various agencies and development financial institutions, including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank, and Bank Rakyat. Some schemes will offer financing rates as low as 3% per annum. Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said relevant agencies have been instructed to step up outreach efforts to ensure wider access, especially for small traders, hawkers, and micro-entrepreneurs facing capital constraints. He said application processes must be simplified and financing conditions kept fair and accessible, in line with the principles of the MADANI Economy, which emphasises compassion, justice, and equality. He added that the initiative targets groups such as small traders, night market vendors, women, youth, gig workers, TVET graduates, small contractors, padi farmers, and asnaf communities. He clarified that the microfinancing facilities are separate from other SME support schemes, including the RM5 billion SME Special Relief Facility under Bank Negara Malaysia and the RM5 billion guarantee scheme under Syarikat Jaminan Pembiayaan Perniagaan. In total, more than RM15 billion in financing support has been made available to MSMEs this year.

The MADANI government’s microfinancing initiatives are helping strengthen Malaysia’s economic resilience during periods of geopolitical uncertainty by maintaining liquidity and supporting domestic economic activity, especially among small and medium-sized enterprises (SMEs). IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said microfinancing serves as a targeted stabiliser that helps reduce the impact of economic pressure on SMEs, which often have limited financial buffers. Mohd Sedek Jantan. He said rising operating costs driven by higher global oil prices and ongoing trade policy uncertainty have tightened margins and created uneven cash flow conditions for many businesses. Access to financing, he added, helps SMEs maintain cash flow, sustain operations, and avoid disruptions to employment and investment activities. He also noted that microfinancing supports local consumption and strengthens community-level economic activity, which becomes more important when external growth conditions are weak. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said access to financing and credit is crucial during economic shocks, allowing businesses breathing space to manage financial obligations. He said government-backed financing schemes enable SMEs to refinance existing debt at competitive rates, easing pressure from rising costs such as fuel. He added that additional capital also allows businesses to invest in digitalisation and enterprise systems such as ERP, helping improve efficiency and reduce operating costs. On Thursday, the MADANI government through the Ministry of Finance announced more than RM5 billion in microfinance facilities for 2026, expected to benefit over 400,000 micro-entrepreneurs with loans of up to RM100,000. The financing will be channelled through agencies and development financial institutions including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank, and Bank Rakyat. The ministry added that more than RM15 billion in total financing support has been provided to MSMEs this year, including a RM5 billion SME Special Relief Facility under Bank Negara Malaysia and another RM5 billion facility under the Syarikat Jaminan Pembiayaan Perniagaan (SJPP).

Citigroup Inc. has partnered with BlackRock Inc.’s HPS Investment Partners to launch a €15 billion (US$17.5 billion) private credit programme aimed at expanding direct lending across Europe, the UK and eventually the Middle East. Under the partnership, Citi will use its network and banking capabilities to source investment opportunities, focusing on borrowers across the EMEA region. The programme will target a wide range of sub-investment grade debt opportunities over an initial five-year period. Citi said the collaboration is designed to meet growing demand from corporate and sponsor clients seeking customised private credit financing solutions. The move highlights the increasing collaboration between major banks and investment firms as they expand into the fast-growing private credit market, despite heightened scrutiny surrounding the sector in recent months. The partnership also builds on Citi’s previous private credit push, following its US$25 billion direct lending programme with Apollo Global Management, Inc. launched in 2024.

Private equity firm Ekuiti Nasional Bhd (Ekuinas) has distributed RM350 million in dividends to its parent Permodalan Nasional Bhd (PNB) following its full exit from petroleum tanker operator Orkim Bhd. Ekuinas said the payout is part of the RM828 million in gross proceeds it generated from the sale of Orkim shares during its IPO and the subsequent transfer of its remaining 60% stake post-listing to PNB for long-term management. The dividend is intended to benefit PNB unit trust holders. Ekuinas originally acquired Orkim in 2014 for RM346.3 million and developed it into Malaysia’s leading Malaysian-flagged tanker operator with over 50% market share. Orkim was listed on the Main Market of Bursa Malaysia on Dec 9 last year at 92 sen per share. Ekuinas sold 300 million shares in the IPO through its investment vehicle Tetap Kuasa Sdn Bhd, raising RM276 million. The remaining stake was later transferred to PNB and Amanah Saham Bumiputera as part of its exit strategy. Ekuinas described the process as its first “Bumiputera relay race” milestone, marking a structured handover of assets to long-term institutional owners. Established in 2009, Ekuinas is mandated to support Bumiputera wealth creation and participation in the economy. It was previously under Yayasan Pelaburan Bumiputera before being placed under PNB in July 2025. Beyond Orkim, the firm also completed a divestment in Medispec Sdn Bhd and invested in Bluesify Solutions, reflecting its shift toward sectors such as cybersecurity and digital services. As of end-2025, Ekuinas reported a portfolio of 49 companies, with cumulative Bumiputera equity creation of RM7.1 billion and total shareholder value creation of RM8.5 billion. Healthcare now makes up 29% of its active portfolio, up from 24% a year earlier, as the group reduces exposure to the energy sector. Bumiputera participation in management across its portfolio companies also rose to 36.9%. Ekuinas also said its RM800 million private credit business completed its first two transactions in 2025, offering shariah-compliant financing solutions for mid-market companies. Chief executive officer Aliff Omar said the private credit segment provides more structured financing options while creating a pipeline for future equity investments. The firm also introduced a capacity-building programme targeting Bumiputera companies, with Kopi Hang Tuah selected as its first participant, focusing on governance, leadership and operational improvement.

Bank Negara Malaysia (BNM) has given RHB Bank Bhd approval to begin negotiations with Tokio Marine Asia Pte Ltd on a proposed insurance transaction involving its insurance arm. In a filing, RHB Investment Bank Bhd said the approval allows both parties to commence discussions on the potential disposal of up to 100% of RHB Bank’s stake in RHB Insurance Bhd to Tokio Marine Asia. The proposed deal also includes plans to merge RHB Insurance with Tokio Marine Insurans (Malaysia) Bhd to form a larger combined insurance entity, in which RHB Bank is expected to retain up to a 35% stake. BNM issued its “no objection” letter dated May 11, 2026, indicating that the regulator has no objection for the parties to proceed with negotiations. However, the approval is conditional on the discussions being completed within six months from the date of the letter. RHB stressed that this clearance only allows talks to begin and does not represent final regulatory approval of the transaction. Under the Financial Services Act 2013, the proposed deal will still require approval from the Minister of Finance, following BNM’s recommendation, before any binding agreements can be signed. The bank added that a further announcement will be made once definitive agreements are executed, should the transaction proceed. The proposed move is part of ongoing consolidation activity in the insurance sector, aimed at strengthening scale and competitiveness in Malaysia’s financial services industry.

Penang continued to perform strongly in its investment outlook in 2025, recording RM32.9 billion in approved investments, largely driven by high-technology manufacturing sectors, says Chief Minister Chow Kon Yeow. He said the state remains one of Malaysia’s key economic contributors, supported by strong investor confidence in its industrial ecosystem, skilled workforce, infrastructure and strategic position in the global supply chain. In a written reply during the Penang state legislative assembly sitting on Thursday (May 14), Chow said the state continues to attract quality investments, particularly in electrical and electronics (E&E), semiconductors and medical devices. He said the inflow was supported by policy stability and ongoing state government initiatives, which have helped strengthen investor confidence among both foreign and domestic players, according to data from the Malaysian Investment Development Authority (MIDA). On trade performance, Chow said Penang recorded RM573 billion in exports and RM382 billion in imports in 2025 through Penang Port and Penang International Airport, based on Statistics Department of Malaysia (DOSM) data. He noted that a detailed breakdown of trade specifically handled by the port and airport is not currently available. Overall, he said the strong export and import figures highlight Penang’s role as a key regional trade hub, particularly for high-value and technology-driven industries.