Investment & Market Trends

KUALA LUMPUR: FGV Holdings Berhad (FGV), reaffirms its commitment to aligning with one of the key pillars of its Sustainability Framework by fostering local economic growth in Malaysia with the launch of the FGV Vendor Development Program (VDP) to empower 300 local vendors. Officiated by Tan Sri Rastam Mohd Isa, Chairman of FGV, held at Festival FGV in conjunction with Hari Peneroka FELDA 2024 at Malaysia Agro Exposition Park (MAEPS), Serdang, the programme aims to elevate vendors’ capabilities and competitiveness, playing a crucial role in the industry’s growth. L-R: Ami Rozaidi Chik Ros, Vice President of Business Development, Dato’ Mohd Hairul Abdul Hamid, Group Chief Financial Officer of FGV, Tan Sri Rastam Mohd Isa, Chairman of FGV, Dato’ Nazrul Mansor, Group Chief Executive Officer of FGV Aligned with FGV’s mission, the VDP initiative streamlines vendor standards nationwide across its five business divisions– Plantation, Oils and Fats, Consumer Products and Integrated Farming, Logistics and Support, and Sugar. This initiative aims to empower young entrepreneurs and enhance commercial capabilities. “In support of Malaysia’s national agenda, we are looking to assist our vendors to become more competitive in the local and global markets. Through our vendor development initiatives, we are creating a dynamic and resilient vendor ecosystem that will drive efficiency, reduce costs, and improve overall quality and delivery times,” said Dato’ Nazrul Mansor, Group Chief Executive Officer of FGV. “Our VDP partners will be selected among capable Malaysian entrepreneurs. We have several projects including an entrepreneur programme. Participants will undergo skilling modules and training for six months followed by three months of professional development programmes and elective training. FGV is committed to building a vendor network that is proficient and adaptable to market dynamics and technological advancements,” Dato’ Nazrul added. As part of the programme, partners are being offered structured training modules designed to equip vendors with essential skills and knowledge. Crafted in collaboration with relevant government and private agencies, the training modules ensure vendors are well-prepared to handle the demands of modern agriculture and industrial practices. The services that VDP partners will render range from palm oil harvesting to infrastructure construction, electrical works, plumbing works, and road maintenance, as well as various supply chain services including machinery, tools, and general supplies. This diverse scope not only supports FGV’s operations but also creates opportunities for entrepreneurship and job creation throughout Malaysia, particularly in underdeveloped regions outside of major cities. By investing in vendor development, FGV aims to foster a sustainable supply chain ecosystem that supports long-term growth and competitiveness. Through these efforts, FGV continues to uphold its leadership in the global palm oil industry while contributing positively to Malaysia’s economic and social development goals. For further information on FGV and its vendor development initiatives, please visit www.fgvholdings.com.

RBD palm olein oil repackaging, marketing and distribution company, Sik Cheong Berhad (“Sik Cheong”), has garnered strong interest from investors for its initial public offering (“IPO”) exercise, which has been oversubscribed by 213.53 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). Based on information extracted from Bursa Securities’ website, this oversubscription rate ranks as the highest among all IPO issues in the past ten years. Sik Cheong, through its subsidiaries (collectively, the “Group”), is primarily engaged in the repackaging, marketing and distribution of RBD palm olein oil products, which is a refined, bleached and deodorised liquid palm oil. The Group’s primary revenue contributor comes from its RBD palm olein oil cooking oil products, sold under its house brands of “Sawit Emas” and “Vitamas”. The Group also sells RBD palm olein lamp oil under “Pingat Emas” brand, as well as trades third-party products, primarily margarine, upon customer requests.   Sik Cheong’s IPO exercise involves a public issuance of 66,000,000 new ordinary shares (“Shares”), representing 24.8% of its enlarged share capital, and an offer for sale of 20,000,000 existing shares, or 7.5% of its enlarged share capital by way of private placement to selected investors.   Sik Cheong has received a total of 26,395 applicants for 2,853,204,800 Shares with a value of approximately RM770.37 million for the 13,300,000 Shares allocated to the Malaysian public, representing an overall oversubscription rate of 213.53 times. For the Bumiputera portion, 14,953 applications for 1,306,082,200 shares were received, representing an overall oversubscription rate of 195.40 times. As for the public portion, 11,442 applications for 1,547,122,600 shares were received, resulting in an oversubscription rate of 231.65 times.   The 4,000,000 Shares available for application by the eligible Directors, employees and persons who have contributed to the success of the Company have been fully subscribed.   Meanwhile, the private placement of 48,700,000 Shares and 20,000,000 offer shares made available via private placement to selected investors have also been fully placed out. Notices of allotment will be dispatched to all successful applicants on 9 August 2024. Managing Director of Sik Cheong, Mr. Wong Hing Ngiap said, “We are truly grateful for such strong response to our IPO. This reaffirms our strategic direction and reinforces our commitment to creating value for our shareholders as we continue to pursue growth opportunities in the distribution of essential food.” “Our growth strategy involves expanding our product range to include high oleic soybean oil, where we have been receiving enquiries from food manufacturers and hotel operators. Leveraging our experience and existing customer base in offering RBD palm olein oil products, we believe we have a solid foundation to secure new orders and cross-sell this new product. Sik Cheong recognises the potential of high oleic soybean oil, supported by its affordability, wide availability, and the growing food and beverage industry in Malaysia. This makes it a strategic addition to our product portfolio, suitable for households, hotels, restaurant and catering operators, and food manufacturers.”   With Sik Cheong’s RBD palm olein oil products well-received and widely available, the Group also plans to extend its reach beyond its current strongholds of Kuala Lumpur and Selangor. Sik Cheong aims to capture a larger customer base and continue its growth trajectory by expanding into neighbouring states such as Perak, Negeri Sembilan, Melaka, and Pahang.   Sik Cheong is scheduled to be listed on the ACE Market of Bursa Securities on 13 August 2024. With an IPO price of 27 sen per Share and an enlarged issued share capital of 266.0 million shares, the Group’s market capitalisation upon listing is estimated to be approximately RM71.8 million.   TA Securities Holdings Berhad is the Principal Adviser, Sponsor, sole Underwriter and Placement Agent for the IPO Exercise.

KUALA LUMPUR: Upholding its mandate to encourage Bumiputera participation in the economy and in line with creating strong Bumiputera entrepreneurs and sustainable enterprises, Ekuiti Nasional Berhad (Ekuinas), through its ILTIZAM Catalyst Programme, has accelerated business growth for 38 Bumiputera SMEs across diverse business sectors, since the programme’s inception in 2022. Speaking at a ceremony celebrating the achievers of ILTIZAM Catalyst 2023, Dato’ Syed Yasir Arafat Syed Abd Kadir, Chief Executive Officer of Ekuinas, said, ” As a private equity firm, we recognise the common, and the unique challenges faced by SMEs. We understand their journey. ILTIZAM Catalyst is an initiative to empower, strengthen and accelerate Bumiputera businesses. We allocated RM1.2million for this 12-month programme. SMEs are the backbone of the economy. Through this structured framework, which focuses on four technical and fundamental business areas – finance and compliance, branding and digital marketing, technology adoption, and leadership, we are empowering Bumiputera entrepreneurs to shift from mere ‘survival’, to competing, growing sustainably, and carving a niche in their respective industries.”   With its core business in private equity investment and aggressive value creation for its portfolio companies, Ekuinas understands the common denominators that make or break a company – and these core areas are addressed in ILTIZAM Catalyst as they are the pain points commonly faced by SMEs. The 12-month programme combines assessment, technical and non-technical training by expert consultants, mentorship  by industry leaders and monitoring, aimed at helping entrepreneurs strengthen business fundamentals and chart strategic and sustainable growth.   “To track the effectiveness of the programme, we introduced five key performance indicators (KPIs). This is the second batch completing the programme and we see its growing impact. Based on the KPIs set, I am pleased to share that for Catalyst 2023, 100% of the companies gained improved clarity in their business direction, 94% improved their entrepreneurial and leadership capabilities, 71% experienced improved brand presence and business visibility, 59% recorded an increase in product profitability; and 29% improved their financial strength and business compliance. Nine out of the 17 companies achieved at least four of the five KPIs set.   “Ekuinas will continue our mission to create a thriving ecosystem for SMEs. The success of all participants completing ILTIZAM Catalyst 2023 today reflects the transformative effect of our programme,” Dato’ Syed Yasir Arafat commented.   Among the notable companies this year was Splashtastik, water enthusiasts who began their business in 2017 to address the need for swimming classes for babies.  Nurzieyana Shazmin, Director of Splashtastik said, “Being part of Catalyst has significantly impacted our business growth, notably by transitioning from a part-time home-based operation to a structured business. I’ve been to many business courses but ILTIZAM Catalyst is different as there are very specific areas of assistance.  We managed to complete our branding story, paving the way for more effective advertising. Now, we are able to present our company with a better vision. Our financials have also improved tremendously. We are beyond grateful to be part of ILTIZAM Catalyst 2023. The guidance from experts in the field is invaluable!”   Another success story is Benefigs, a producer of locally grown figs. Mohamad Hafidz, Chief Executive Officer of Benefigs shared “The biggest advantage we have is that figs thrive with our technology in Malaysia as it is non-seasonal and produce fruits everyday. We seized this opportunity in 2020. One of our challenges was that there were no established reference point, as fig farming is relatively new in Malaysia. Through Catalyst, we reidentified our target market, restructured our business, aligning it with our accounts, and enhanced our marketing with social media, steering our company towards a clearer direction. Our operations now span fig fruit production in upstream, eco-tourism in midstream, and we are hopeful that in the future, Benefigs will transform into a multifaceted enterprise, expanding into consumer products like shampoos and lotions with fig base.”   Catalyst alumni from the 2022 batch, Jiham Kaligrafi, an Islamic art and design company has seen ups and downs in the business which began as a hobby in 2015. Following their participation in Catalyst, Mohamad Azham Shah Bin Johari, its Managing Director acknowledges the significant improvements recorded.  “Catalyst provided us with a system to better manage our staff, clients and suppliers. Like many entrepreneurs, we were focused on our goals, without a structured strategic framework. Combining clear goals with the systems provided in the programme has enabled us to more effectively achieve our objectives. We’ve also experienced strong customer engagement at our Southville outlet, coupled with consistent online orders through our social media promotions.”   Another alumni, Nor Sa Adah Ghzali also known as Adda Uwais, CEO of Keto Diet Sifu shared, “The business development module has helped reduce my operational cost and enhanced my business model. It may seem like a simple shift, however this brought significant impact to our sales. On the financial front, we were exposed to a scoring method, so we now have an indicator for the company’s financial standing. Looking forward, we are working towards establishing a retail store to provide easy access to healthy food.” Keto Diet Sifu introduced its EatSlim platform in 2017 and today they offer ready to eat meals, which are diabetes and GERD-friendly.   Application to participate in the next programme, ILTIZAM Catalyst 2024 is now open until 15 August 2024. Bumiputera SMEs in manufacturing, food & beverage, retail, education, agriculture, healthcare and other services, which are registered with the Companies Commission of Malaysia, have an annual revenue between RM300,000 to RM1 million with a profitable track record over the last two years, are encouraged to apply. Visit https://iltizam-catalyst.ekuinas.com.my/ to learn more about ILTIZAM Catalyst.   ILTIZAM is Ekuinas’ Corporate Social Responsibility (CSR) arm that undertakes sustainable development efforts by reaching out to the wider Bumiputera community via three pillars, namely, Education, Entrepreneurship and Community programmes. In 2023, Ekuinas through ILTIZAM, disbursed a total of RM13.8 million through its initiatives benefitting a total of 74,000 individuals, families, entrepreneurs and businesses across Malaysia. Of this, RM3.3 million was channelled

Halogen Capital, Malaysia’s first licensed digital asset fund manager, is officially introduced today, offering the world’s first Shariah-compliant cryptocurrency funds. This introduction empowers sophisticated investors, such as high-net-worth individuals and institutional investors seeking custom strategies, to tap into the burgeoning digital asset market, which now boasts an approximately RM11 trillion market cap, through the familiar structure of unit trusts. Holding a full Capital Markets Services License (CMSL) for fund management from the Securities Commission Malaysia (“SC”) since 2023, Halogen currently offers individual, corporate and institutional investors access to digital assets such as Bitcoin and Ethereum but with the convenience, tax clarity and security of a unit trust fund. Like all unit SC-registered unit trusts in Malaysia, all client assets in Halogen Funds are segregated from the Fund Manager, held by an independent SC-registered Trustee.   “In our first year, through our four funds and private mandates, Halogen Capital has surpassed RM100 million in assets under management (AUM) from over 800 clients, marking a remarkable milestone and reflecting the robust growth in our industry. Looking ahead, our goal is to build on this momentum and achieve RM1 billion AUM within the next two years and be the global leader for Shariah-compliant digital assets.” said Liew Ooi Hann, Founder and Chief Executive Officer of Halogen Capital.   Halogen Capital’s Shariah-compliant funds, supervised by leading Shariah advisors such as Amanie Advisors and Tawafuq Consultancy, represent a pioneering effort in the digital asset investment landscape, offering products that adhere to Islamic financial principles. Since July 2023, the firm has launched the following flagship funds:   Halogen Shariah Bitcoin Fund (HSBTCF) – The world’s first Shariah-compliant cryptocurrency fund (endorsed by Amanie Advisors) that provides institutional-quality exposure to physical spot Bitcoin (BTC). The Fund provides quick and trustee-secured access to BTC while removing the burden of buying and safekeeping bitcoins.   Halogen Shariah Ethereum Fund (HSETHF) – The world’s first Shariah-compliant Ethereum (ETH) fund (endorsed by Amanie Advisors) that provides institutional-quality exposure to physical spot and staked ETH. The Fund offers investors the benefits of investing in ETH in a familiar unit trust structure without the hassle of managing the coins yourself, or managing your own validator to earn 3.0-3.2% p.a. staking rewardsd on your ETH. Halogen Shariah Crypto Titans Fund (HSCTF) – The Fund primarily invests in up to a dozen large-cap, Shariah-compliant crypto assets such as BTC, ETH, Solana (SOL), Ripple (XRP) and more. The Fund employs an active rebalancing strategy to optimise asset allocation, consistently reinvesting profits into other digital assets within the portfolio. Halogen Shariah Ringgit Income Fund (HSRIF) – A MYR-denominated fixed income wholesale fund that aims to exceed fixed deposit (FD) returns and provide T+1 liquidity. This Fund achieves this through strategic investments in Islamic Deposits and short-term Sukuk. In another first for Malaysia, through its unit trust funds and private mandates, Halogen Capital has now made cryptocurrency investment products available for distribution via institutional unit trust advisors (IUTA), financial advisers and financial planners, and currently has over 20 such distribution partnerships signed giving nationwide coverage. “It has been encouraging to see the increasing institutional demand and trust in our flagship funds, particularly through our distribution partners such as Kenanga Investors, AHAM Capital, UOB Kay Hian, Phillip Mutual Berhad, Wealth Vantage Advisory, Bill Morrisons Wealth Management, Yes Financial Berhad, Alpine Advisory and others,” says Lucas Ooi, Founder and Chief Business Officer of Halogen Capital.    “That being said, we recognise the knowledge gap concerning digital assets among many Malaysians, which is why we conduct regular webinars and host educational talks to ensure our clients and partners stay informed about this rapidly evolving asset class,” adds Ooi.    In addition to its flagship funds, Halogen Capital offers private mandates featuring a range of investment strategies. These include active and passive management, thematic investments in emerging areas, such as blockchain and fintech, and also risk-managed approaches designed to safeguard capital.    Headquartered in Kuala Lumpur, Halogen Capital is led by a highly experienced leadership team. The firm has successfully raised USD1.25 million from notable investors, such as 500 Global, DCG Expeditions, Khazanah Nasional via Penjana Kapital, and The Hive Southeast Asia.    For more information about Halogen Capital and its funds, please visit https://halogen.my.