News

KUALA LUMPUR: Bank Rakyat has successfully raised RM1 billion through the issuance of Islamic medium-term notes (IMTN) under its Senior Sukuk Wakalah programme, managed via special purpose vehicle Imtiaz Sukuk II Bhd. The sukuk was issued through a book-building process on 24 April 2025 as part of a larger programme valued up to RM10 billion. The programme has been rated AA2 by RAM Rating Services Bhd. According to the bank’s statement, the sukuk was offered in two tranches—RM120 million for a five-year note and RM880 million for a seven-year note. The issuance attracted strong investor interest, recording a final bid-to-cover ratio of 1.98 times. Proceeds from the sukuk will be used for shariah-compliant purposes, including working capital, capital expenditure, general investments, financing, and other corporate needs. Bank Muamalat Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, and RHB Investment Bank Bhd acted as joint lead managers for the transaction.

KUALA LUMPUR: MSM Malaysia Holdings Bhd (MSM) is looking to restart domestic sugar cane cultivation as part of a broader strategy to reduce its full reliance on imported raw sugar and enhance supply chain resilience. Speaking on Bernama TV’s Bual Bisnes programme, MSM group CEO Syed Feizal Syed Mohammad said the move is in response to growing global risks, including climate change, geopolitical tensions, and supply chain disruptions. “MSM currently depends 100% on imported raw sugar, but we are studying the feasibility of reintroducing sugar cane agriculture in Malaysia,” he said. Potential sites for the revival include Sarawak and northern Peninsular Malaysia, both identified as suitable for large-scale plantations. Historically, MSM operated around 4,000 hectares of sugar cane fields in Chuping, Perlis, since the 1970s, though the initiative was eventually halted due to its lack of economic viability. In addition to sugar cane, the company is exploring alternative sweeteners such as palm sugar to diversify its raw material sources. Syed Feizal noted that this would help MSM cater to evolving consumer preferences in the Asia-Pacific region. “Sugar beet is widely used in Europe, but it doesn’t suit regional taste profiles. We are evaluating options like palm sugar derived from nipah coconut, which could meet local demand even if not produced at industrial scale,” he said. The exploration of alternative sources is part of MSM’s long-term vision to adapt to shifting market dynamics and ensure continuity in supply.–BERNAMA

KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) is in the process of obtaining relevant documents for its investigation into the encroachment of land used for durian farming in Raub, Pahang. The MACC strategic communications division said that these documents were required for review and to record witness statements. “The MACC has also identified several individuals involved in cultivating the affected lands,” the statement read. Earlier reports indicated that the MACC had compiled a list of individuals believed to be involved in the land encroachment case in Raub. On Thursday, the Sultan of Pahang, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, expressed shock after learning that 10,521 hectares of land in Raub had been encroached upon over several decades for durian cultivation. Previously, enforcement operations carried out on the durian farms in Raub sparked various reactions, with farmers reportedly dissatisfied after their crops were destroyed. The operation, involving the police and the Pahang State Enforcement Unit, was carried out on plantations that had been established without authorisation.–BERNAMA

KUALA LUMPUR: Malaysia’s construction and utility sectors could see a surge in investment and growth on the back of potential changes to the United States’ AI chip export policy, according to Kenanga Investment Bank Bhd. In a market note released Saturday, Kenanga IB highlighted that the Trump administration is expected to roll back Biden-era restrictions on advanced AI chip exports under the US diffusion rule — a move that could trigger increased data centre activity globally, with Malaysia well-positioned to benefit. The research house noted that Malaysian construction counters have already experienced a significant rebound, and this latest development may further elevate valuations. A key example is Pearl Computing — affiliated with a US tech major — which has agreed to purchase 389 acres of land in Port Dickson from Gamuda Bhd (KL:GAMUDA), alongside RM1 billion allocated for enabling infrastructure works. “This is a major milestone for data centre development in the country and underscores strong investor confidence,” the report said. Meanwhile, Malaysia’s utility sector is also poised to benefit from the booming data centre trend. Tenaga Nasional Bhd (KL:TENAGA) has reported the completion of 18 data centre projects as of December 2024, totalling 1,900MW of installed capacity. An additional 20 projects are in the pipeline, expected to contribute another 4,000MW in capacity. Kenanga IB believes this rising energy demand will support Tenaga’s long-term growth, reinforcing its role as a key enabler of digital infrastructure expansion in Malaysia.–BERNAMA

KUCHING: Sarawak will unveil its long-anticipated Sustainability Blueprint during the Asia Carbon Conference (ACC 2025), to be held from 29 to 30 May at the Borneo Convention Centre Kuching (BCCK). The blueprint, which sets out Sarawak’s strategic direction for achieving a low-carbon and sustainable future, will be officiated by Sarawak Premier Tan Sri Abang Johari Tun Openg during the opening ceremony. Organised by Place Borneo Sdn Bhd, ACC 2025 is expected to convene over 400 stakeholders, including regional policymakers, business leaders, and sustainability experts. This year’s conference theme, Creating an Integrated ASEAN Marketplace for Carbon, will centre on accelerating regional collaboration in carbon trading and environmental responsibility. One of the key sessions will be a panel discussion titled “How are businesses tackling emission increases? Will there be new buyers of carbon credits in Asia?” — spotlighting the evolving regulatory landscape, procurement challenges, and pricing disparities between public and private carbon markets. Among the speakers are Norihiro Kimura, senior climate negotiator from Japan’s Ministry of Economy, Trade and Industry; Win Sim Tan, APAC representative at Verra; Jen Wee Kang, CEO of Redex; and Ariana Cohen, senior consultant at JET. Organisers described the conference as a pivotal platform for shaping Asia’s carbon market ecosystem, facilitating cross-sector dialogue, and advancing the region’s decarbonisation goals. Further details are available at www.argusmedia.com/asia-carbon-conference.

KUALA LUMPUR: Agrobank has rolled out its national paddy takaful scheme (Skim Takaful Tanaman Padi – STTP) in Sabah, expanding financial safety nets for the state’s farming community. Deputy Minister of Agriculture and Food Security Datuk Arthur Joseph Kurup said that as of 30 April, 5,642 paddy farmers in Sabah had enrolled in the scheme. However, more than 19,000 remain unregistered, including 6,602 individuals without Agrobank accounts. STTP offers affordable crop insurance at RM64.80 per hectare per season, a cost currently subsidised by the federal government. Farmers are encouraged to register early to avoid missing out on protection, especially in the face of climate-related risks. Nationwide, STTP has disbursed RM16.2 million in compensation as of March 2025, aiding 6,319 farmers impacted by agricultural disasters. “The launch of STTP in Sabah reflects Agrobank’s commitment to providing inclusive and comprehensive financial solutions for Malaysia’s agri-food sector,” said Kurup. The Ministry of Agriculture and Food Security (KPKM) also lauded the Sabah government’s formation of the Sabah Paddy and Rice Board (LPBS), calling it a key move in enhancing the sector’s competitiveness, organisation, and sustainability. The initiative aligns with Malaysia’s broader strategy to secure food resilience and fortify the agro-food value chain.