News

SENAI: UPS (NYSE: UPS), one of the world’s largest package delivery and supply chain management companies, has enhanced its services in Johor in a move that significantly reduces delivery times and boosts global connectivity for UPS customers across the state. The new operation, which consists of a bonded warehouse at Senai International Airport and a package centre in Senai, is located in one of Johor’s leading manufacturing and industry clusters and at the heart of the Johor-Singapore Special Economic Zone (JS-SEZ). It means imports and exports to Johor from countries across Asia Pacific can now enjoy next-day delivery, while imports and exports from Europe and the U.S. will arrive in as little as two business days. This is a time saving of one business day, facilitated by improvements in connectivity between Johor and Singapore’s Changi Airport. “In line with the growth possibilities presented by the Johor-Singapore Special Economic Zone, we’re excited to open our new Johor service at a time when there are opportunities for businesses to expand and build greater resilience into their supply chains,” said Ingrid Sidiadinoto, senior managing director UPS Malaysia. “Johor is an important industrial centre in southern Malaysia, particularly for manufacturing and high-tech companies. Being able to respond to orders quickly is critical in these sectors and now UPS customers in Johor can send and receive deliveries to and from anywhere in the world in two business days or less. This offers the fast and flexible access businesses need to our industry leading global network to make them more responsive, more resilient and more competitive.” The new Johor operation underscores UPS’s continued commitment to supporting businesses in Malaysia by providing better access to the company’s world class integrated global logistics network. “The establishment of UPS’s new Johor operation reflects Malaysia’s growing prominence as a regional logistics and supply chain hub,” said Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, chief executive officer of the Malaysian Investment Development Authority (MIDA). “Strategically located in Senai, the facility benefits from robust multimodal connectivity, including well-established highways, rail links, and proximity to key ports, making it an ideal gateway for integrated logistics solutions. “This milestone complements the government’s MADANI vision to position Malaysia as a high-value, innovation-driven economy. MIDA will continue to support companies like UPS, fostering their sustained growth within Malaysia’s vibrant logistics ecosystem.” This is the latest in a series of investments by UPS in its Malaysia network. In 2024, the company introduced a service enhancement to allow deliveries from Johor to over 50 countries across the Americas to be completed in as little as two business days. Later in the year UPS also announced a partnership with Ninja Van to provide UPS’s international express services at any of Ninja Van Malaysia’s 52 stores across Klang Valley

KUALA LUMPUR: North Rhine-Westphalia (NRW), Germany’s most important economic region, is strengthening its international presence in Southeast Asia. The state-owned trade and investment agency, NRW.Global Business is opening a new ASEAN Service Desk in Kuala Lumpur to signal the intensification of economic relations between NRW and the ASEAN countries. The official opening took place today as part of a business roundtable with the Malaysian-German Chamber of Commerce and Industry (MGCC). The ASEAN countries are among the world’s most dynamic growth regions. Their economic relations with Germany are growing in importance. With the Service Desk, NRW.Global Business is establishing its first permanent point of contact in the region. The Service Desk will provide companies and potential investors from the ASEAN region with direct support on site, ranging from comprehensive information about NRW as a business location and investment conditions to practical assistance with specific location projects.    Felix Neugart, CEO of NRW.Global Business said, “With our ASEAN Service Desk, we aim to raise the profile of NRW as an innovative and attractive business location in the ASEAN region, intensify bilateral trade and investment relations and promote cooperation in future-oriented areas such as digitalisation, sustainable technologies and research. The ASEAN countries are important partners for us: They offer new sales and procurement markets as well as opportunities to establish business contacts with innovative companies and institutions. By establishing a direct presence, we are creating a point of contact to better leverage this potential together with local partners.”   The Business Roundtable on “Business Opportunities between NRW and Malaysia – Introducing NRW.Global Business ASEAN Service Desk” provides the framework for the official opening. Here, companies, local authorities, economic development agencies and multipliers from Malaysia and NRW come together to discuss opportunities for investment, cooperation and market development.   Jan Noether, Executive Director of the Malaysian-German Chamber of Commerce and Industry (MGCC), said, “We are delighted to be implementing the ASEAN Service Desk together with NRW.Global Business. NRW offers diverse opportunities for companies from the ASEAN region and the new service desk will significantly contribute to facilitating market access and further deepening relationships.”  

KUALA LUMPUR: RHB Bank Berhad (“RHB” or “the Group”) posted a net profit of RM750 million for the first quarter ended 31 March 2025 (Q1 FY2025), marking a 2.7% year-on-year (Y-o-Y) increase from RM730.2 million. The performance was driven by higher net fund-based income and improved credit cost management, reflecting RHB’s disciplined risk approach and operational resilience. Total income stood at RM2 billion, reflecting a marginal 1.9% Y-o-Y decline, mainly due to softer non-fund based income from lower gains in forex, derivatives, trading and investment activities. Net fund-based income, however, rose 7.3% Y-o-Y to RM1.5 billion, supported by a 6.3% increase in gross loans and stable net interest margins (NIM). The Group reported an effective NIM of 1.91% for the quarter, compared to 1.83% a year earlier. Operating expenses grew modestly by 1.2% Y-o-Y to RM970.7 million, while the cost-to-income ratio (CIR) rose slightly to 47.4% from 45.9% in the prior year due to lower income. Expected Credit Losses (ECL) declined sharply by 50.8% to RM105.8 million, attributed to the absence of one-off ECL from international operations. “We sustained our earnings growth momentum in the first quarter, underpinned by solid fundamentals and early traction from our PROGRESS27 strategy,” said Dato’ Mohd Rashid Mohamad, Group Managing Director and CEO of RHB Banking Group. “Our cost optimisation efforts are delivering results, while we remain focused on asset quality and disciplined execution.” Robust Capital, Steady Loan Growth As of 31 March 2025, RHB’s total assets expanded to RM353 billion. Shareholders’ equity stood at RM32 billion, with a Common Equity Tier-1 (CET-1) ratio of 16.0% and Total Capital Ratio (TCR) of 18.5% at Group level. The Bank’s standalone CET-1 and TCR were 14.7% and 17.4%, respectively. Gross loans rose 2.4% on an annualised basis to RM239 billion, led by solid performances in Group Community Banking (+5.5%) and Commercial segments (+16.9%). Domestic loans grew 4.7% annually, outpacing the industry average of 4.3%. The Group’s gross impaired loans (GIL) ratio was stable at 1.50%, while domestic GIL remained below industry levels at 1.22%. Customer deposits totalled RM249 billion, with the CASA (current account savings account) ratio improving to 28.0% from 27.6% in FY2024. Liquidity Coverage Ratio (LCR) was healthy at 134.6%. Loan loss coverage including regulatory reserves strengthened to 115.7%. Segment Performance Overview Group Community Banking recorded a pre-tax profit of RM425.7 million (+14.7% Y-o-Y), supported by growth in mortgages (+7.3%), auto finance (+9.0%), and SME loans (+5.5%). Gross loans stood at RM152 billion, while deposits reached RM125 billion. Group Wholesale Banking posted RM548.2 million in pre-tax profit. Commercial segment loans rose 16.9% to RM54 billion, with deposits of RM86 billion. Group International Business saw pre-tax profit surge to RM87.3 million due to lower ECL. Deposits grew 4.6% annually to RM37 billion, with CASA rising 22.2%. Group Shariah Business reported RM242.5 million in pre-tax profit, with Islamic financing at RM93 billion (+8.7% annualised). Islamic loans made up 45.1% of total domestic financing, up from 44.6% in December 2024. Group Insurance contributed RM17.7 million in pre-tax profit for the quarter. Strategic Outlook RHB maintains a cautious outlook amid global macroeconomic uncertainties, interest rate movements, and trade tensions. The recent reduction in the Statutory Reserve Requirement (SRR) by Bank Negara Malaysia is expected to support funding flexibility in the coming quarters. “Our new three-year strategic roadmap, PROGRESS27, charts a clear path to strengthening service excellence, profitability and purpose-driven growth,” added Dato’ Rashid. “With targeted execution across customer journeys and sustainability efforts, we are well-positioned to unlock both near-term and long-term value for stakeholders.”

Rafizi Ramli has announced his resignation as Malaysia’s Minister of Economy, citing the loss of his mandate following a defeat in the recent Parti Keadilan Rakyat (PKR) internal elections. His resignation will take effect on 17 June 2025, with Rafizi set to go on annual leave until then. In a media statement issued Tuesday, Rafizi said his departure is in line with democratic practices, where party leaders who no longer hold internal support should make way for new leadership within the government. “I joined politics to promote a new political culture grounded in accountability and public mandate,” he said. “Losing the party’s confidence means I can no longer credibly deliver PKR’s policy agenda within the Cabinet.” Rafizi leaves office having completed his final task: the formulation of the 13th Malaysia Plan (RMK13), which he confirmed has been finalised and is ready for presentation in the upcoming parliamentary session. The plan, he said, places a strong focus on long-term structural reforms—particularly in the education sector. He urged the Cabinet to maintain the bold policy shifts outlined in RMK13, even in his absence, and commended the Ministry of Economy for its high calibre of public servants and policy execution. During his tenure, Rafizi championed structural reforms aimed at boosting national productivity, addressing income disparities, and positioning Malaysia for high-income status. His departure introduces a potential leadership gap at a critical point in the country’s economic reform trajectory. “The journey to restructure our economy for long-term strength and high-income status is far from over,” he noted. “Difficult decisions must continue to be made today for the benefit of future generations.” Rafizi also expressed his gratitude to public servants, industry stakeholders, the media, and the Malaysian public for their cooperation throughout his term in office. The Ministry of Economy’s leadership transition will be closely watched by investors and business leaders, particularly as the country prepares to implement RMK13 and navigate a complex global economic landscape.

KUALA LUMPUR: Nurjesmi Mohd Nashir, CEO of Affin Hwang Investment Bank Bhd, is set to take the helm of RHB Bank Bhd’s wholesale banking division, according to industry sources. He is expected to be named Managing Director of Group Wholesale Banking at RHB. The move follows the departure of Datuk Fad’l Mohamed, who left RHB earlier this year to assume the role of CEO at Bursa Malaysia. Nurjesmi, who took the top role at Affin Hwang in June 2023, brings with him extensive experience in corporate and investment banking. His prior roles include Executive Director and Head of Global Corporate Banking at JP Morgan Chase Bank Bhd, and nearly 20 years at Citibank Bhd. Shares in RHB closed three sen lower at RM6.85 on Tuesday, with a market valuation of RM29.86 billion. Affin Bank’s shares ended one sen lower at RM2.70, valuing it at RM6.84 billion.–THE EDGE