News

PETALING JAYA: Foreign investors extended their net selling in Asian markets for a third consecutive week, with a significant net outflow of US$3.84 billion (RM16.84 billion) during the week ended April 18, 2025, according to MIDF Amanah Investment Bank Bhd’s fund flow report. Among the tracked markets, only the Philippines and India recorded net foreign inflows. India saw the largest regional inflows, with US$990.4 million (RM4.35 billion) reversing a two-week streak of net selling. This rebound was attributed to easing inflation, which fell to a 67-month low of 3.34% in March 2025, mainly due to deflation in food prices. Additionally, the country’s resilient domestic growth outlook, with forecasts of a normal monsoon and a 6.5% growth target from the Reserve Bank of India, boosted investor confidence. MIDF also noted progress in India’s trade talks with the US, including potential removal of import duties on energy products like ethane and liquefied petroleum gas, further enhancing bilateral ties. The Philippines ended a three-week selling streak with a modest net inflow of US$6.5 million (RM28.51 million). In contrast, Indonesia saw a net outflow of US$1.26 billion (RM5.52 billion), marking its second consecutive week of foreign selling. The country’s palm oil sector is pressing the government to reduce export taxes due to reciprocal tariffs imposed by the US, which are expected to lower farm-gate prices. South Korea continued to experience foreign selling for a fourth week, with outflows totaling US$1 billion (RM4.38 billion). The government announced an US$8.6 billion (RM37.72 billion) supplementary budget to support sectors such as automobiles and semiconductors, which were hit by US tariffs. Vietnam, which has faced eleven consecutive weeks of foreign selling, recorded outflows of US$185.8 million (RM815.17 million). The country’s cautious stance on aligning with China’s anti-US rhetoric, despite Xi Jinping’s visit to Hanoi and over 40 cooperation agreements, appeared to weigh on investor sentiment. Thailand also experienced US$26.9 million (RM118.02 million) in net outflows, marking its eighth straight week of foreign selling. The Bank of Thailand warned that US tariffs could reduce GDP growth by up to one percentage point, with the full impact expected to be felt in the second half of the year. On the domestic front, foreign net selling on Bursa Malaysia eased to RM330.5 million, significantly lower than the RM1.97 billion recorded the previous week. Foreign investors were net sellers every trading day except Friday, which saw a net inflow of RM39.9 million. The largest outflow occurred on Wednesday at RM153.6 million, while other days ranged between RM16.2 million and RM120.6 million. Friday’s inflow followed five consecutive days of outflows. The sectors that saw net foreign inflows included telecommunications and media (RM119.5 million), consumer products and services (RM34.4 million), and property (RM2.45 million). The largest net foreign outflows were observed in financial services (RM96.6 million), technology (RM87 million), and construction (RM80.8 million). Local institutions continued to support the market with net inflows of RM356.2 million, marking their 26th consecutive week of net buying. Meanwhile, local retail investors became net sellers with outflows of RM25.7 million, reversing a two-week buying trend. The average daily trading volume declined across the board, with foreign investors, local institutions, and local retailers registering decreases of 48.7%, 56.7%, and 47.2%, respectively. –BERNAMA

JOHOR BAHRU: The Johor state government is considering the establishment of an ASEAN industrial park within the Johor-Singapore Special Economic Zone (JS-SEZ), aimed at attracting strategic investments from ASEAN and Regional Comprehensive Economic Partnership (RCEP) member countries. Menteri Besar Onn Hafiz Ghazi outlined that the industrial park would focus on high-value sectors such as advanced manufacturing, green technology, and the digital economy. The park is envisioned to drive technology transfer, boost regional competitiveness, and diversify supply chains across ASEAN. Onn Hafiz emphasized that the industrial park would offer customised incentives to foreign investors, including tax breaks, simplified talent mobility, and temporary relaxation of fund repatriation rules, making it an attractive proposition for RCEP-related investments. “We aim to stimulate economic growth and job creation in the JS-SEZ and establish the region as a key investment destination for RCEP countries,” he stated during the JS-SEZ joint business and investment forum. The JS-SEZ has already proven to be an investment hub, with RM27.4 billion in new investments approved in the first quarter of 2025, a substantial increase compared to RM48.5 billion in 2024. Additionally, another RM23 billion worth of projects are in the pipeline for April 2025. Onn Hafiz highlighted the state government’s efforts to create an efficient and investor-friendly environment, noting the success of the Invest Malaysia Facilitation Centre-Johor (IMFC-J), launched in February 2025. The centre has significantly streamlined the investment process, enabling faster approvals for high-impact projects, with 42 such projects now under accelerated processing. “We are committed to reducing bureaucratic delays. What traditionally took 24 months from briefing to operations can now be completed in just 13 to 14 months, saving nearly 10 months of processing time. Johor is serious, responsive, and ready for investments,” he affirmed.

KUALA LUMPUR: Malaysia Aviation Group (MAG) is looking to fast-track its fleet expansion by securing Boeing aircraft delivery slots vacated by Chinese carriers amid escalating trade tensions between China and the United States. Group Managing Director Datuk Captain Izham Ismail confirmed ongoing discussions with Boeing, noting that the opportunity could accelerate MAG’s fleet growth, though competition for the aircraft remains fierce. “We’re speaking with Boeing to potentially take over those slots,” he said. “Everyone wants them—there’s a high demand—so we’re approaching it cautiously.” The opportunity arose following reports that China had instructed its airlines to halt deliveries from Boeing, forcing the US plane manufacturer to redirect aircraft previously intended for Chinese buyers. Any additional aircraft acquired under this arrangement would be separate from MAG’s current order of 25 aircraft under lease from Air Lease Corporation (ALC), set to be delivered between 2023 and early 2026. Izham noted that several key factors must be considered before acquiring new jets, including where the aircraft sits in the production queue and its configuration. “We need to know whether the aircraft is a green tail (unassigned) or already partially configured,” he explained. “Seat layout, lavatories, and galleys must align with our specifications.” Strategic Shift in Fleet Composition According to MAG’s Chief Strategy and Transformation Officer Bryan Foong Chee Yeong, the group is also shifting its long-term fleet strategy to better serve the Asia-Pacific region’s high-traffic routes, particularly in congested ASEAN capitals. “Currently, we operate a narrowbody Boeing 737 fleet, but by 2035, we’re looking at becoming more widebody-focused,” Foong said. “In congested airports, adding more flight frequency isn’t feasible, so we need larger aircraft to increase capacity.” MAG also plans to expand or replace its Airbus A350 fleet, with long-term planning extending to 2043. Financial Prudence and Capital Market Plans Group Chief Financial Officer Boo Hui Yee said MAG has only drawn RM1.3 billion of the RM3.6 billion capital injection pledged by sole shareholder Khazanah Nasional Bhd, with the remaining funds carefully managed to avoid unnecessary financial burden. “We’ve maintained a cash-positive position and continue to cover our operational costs,” she said. “We still have approximately RM2.3 billion in reserve. There’s no need to draw more unless required.” Izham also outlined plans to reduce MAG’s reliance on operating leases, aiming for a balanced fleet ownership model—50 per cent leased, 50 per cent owned. Currently, 80 per cent of MAG’s fleet is leased. “Leased aircraft come with costly end-of-lease conditions. Owning aircraft provides more control and reduces long-term costs,” he added. MAG’s efforts to secure vacated Boeing slots, recalibrate its fleet mix, and approach capital markets for expansion funding mark a strategic push to strengthen its regional competitiveness and financial sustainability.–BERNAMA

SHANGHAI: Sales of Malaysian durians in China are experiencing a remarkable surge, offering a significant boost to the country’s durian industry. The increase in demand comes in the wake of Chinese President Xi Jinping’s recent visit to Malaysia, and reflects growing consumer interest in fresh, tree-ripened fruit. Between August and December 2024, Malaysia exported RM24.8 million (US$5.6 million) worth of fresh durians to China, according to the Ministry of Agriculture and Food Security. Industry experts attribute this growth to improved logistics, rising consumer preference for premium fruit, and strengthened diplomatic ties between the two nations. “Fresh durians, transported to China by air within 48 hours of harvest, are highly popular among affluent Chinese consumers,” said Guo Min, Deputy Marketing Director at Joy Wing Mau, a major fresh fruit distributor in China. “Our Malaysian partners have increased exports by 30 per cent this year, boosting our confidence in further developing the market.” Vivian Wang, Marketing Director at Dole Asia Holdings, echoed this optimism. “Fresh Malaysian durians are among the fastest-growing imported fruits in China. This trend creates substantial opportunities for growers in Malaysia.” While Thailand remains the market leader, holding 57 per cent of China’s US$6.99 billion durian market, and Vietnam accounts for 38 per cent, Malaysian durians are gaining traction. Malaysia and the Philippines together recorded US$38.2 million in durian sales to China last year. Malaysia’s appeal lies in the distinctive quality of its fruit—durians that are allowed to ripen naturally on the tree, unlike many Thai and Vietnamese varieties. This enhances flavour and aroma, making them highly desirable among discerning consumers. “The consistent supply and the premium nature of Malaysian durians set them apart,” said a representative from a food processing company. “Chinese consumers are increasingly valuing authenticity and quality.” Jiang Jianli, Logistics Director at Goodfarmer Fresh Fruit Trading, noted that demand for high-quality imports remains steady in China. “The market for fresh produce continues to grow. Health-conscious consumers are willing to pay for premium imported fruits, providing further opportunities for suppliers.” This momentum is reflected in the success of the China International Import Expo (CIIE), which has become a key platform for global agricultural and food product suppliers. In 2024, the expo recorded US$80 billion in purchase agreements—a 2 per cent increase from the previous year. More than 800 international companies from over 70 countries participated, positioning Malaysia to further expand its durian footprint in China. The surge in durian exports not only represents a win for Malaysian agriculture but also symbolises the deepening trade relationship between Malaysia and China, fuelled by diplomatic goodwill and a shared appetite for premium produce.–MALAYMAIL