News

TOKYO: Honda Motor Co. and Nissan Motor Co. said Thursday they have scrapped a historic realignment plan to merge into what would have become the world’s third-biggest auto group by volume, as negotiations collapsed less than two months after its announcement. But Honda and Nissan, Japan’s second and third largest automakers, will continue their strategic partnership in developing software and other fields, together with Mitsubishi Motors Corp., Nissan’s alliance partner, they said. The two companies had said in December that they hoped to conclude negotiations in June 2025 and establish a holding company in 2026 under which the two brands would operate. The two carmakers had sought to cut costs by sharing the growing financial burden of developing electric vehicles and software to better compete with global rivals such as U.S. Tesla Inc. and China’s BYD Co. When they revealed their plan to begin merger talks at a press conference in December, Honda said struggling Nissan would need to boost its turnaround efforts as a condition for the deal. In November, Nissan said it would cut 9,000 jobs worldwide and reduce its global production capacity by 20 percent. But Nissan’s plans failed to convince Honda that the slumping carmaker is on track for a successful turnaround, sources familiar with the matter have said. Honda recently proposed to make Nissan its subsidiary, fearing that slow progress in the automaker’s revamp could jeopardize the future path of the merger. The move, however, riled Nissan’s board and caused it to tilt toward scrapping the plan, according to the sources. Honda and Nissan initially said they would unveil the details of their tie-up plan by the end of January but pushed it back to mid-February.–KYODO NEWS

TOKYO: The founding family of Seven & i Holdings is asking Thailand’s Charoen Pokphand Group to invest in a management buyout of the Japanese retailing giant, the Japanese broadcaster NHK reported on Thursday. The Seven & i subsidiary Seven-Eleven Japan owns 100% of 7-Eleven Inc, which has about 85,000 stores worldwide. CP is the major shareholder of SET-listed CP All Plc, which has about 15,000 7-Eleven branches in Thailand. The Japanese family is in talks to take the 7-Eleven operator private through a management buyout to fend off a $47-billion takeover from Alimentation Couche-Tard, a Canadian convenience store chain. CP is the latest candidate approached by the family to support its takeover effort, which values the sprawling convenience store conglomerate at $58 billion and would be the largest management buyout in Japanese history should it go ahead. The investment by CP would be in the order of hundreds of billions of yen, Japan’s national broadcaster said. Seven & i declined to comment on the report. A representative for CP Group said they do not comment on speculation. The US investment firm KKR was earlier reported to be considering taking a stake in a proposal by the Seven & i Holdings founding family. Led by the Ito family and Itochu Corp, the operator of FamilyMart convenience stores in Japan, the management buyout proposal would involve about ¥4 trillion ($26 billion) in equity stakes with the rest to come from bank financing. The original proposal envisioned a valuation of as high as ¥9 trillion for Seven & i — trumping the offer of ¥7.5 trillion by Couche-Tard — though this may be lowered as the company’s market valuation hovers well below either figures. —BANGKOK POST

KUALA LUMPUR: The Employees Provident Fund (EPF) has refuted allegations of misconduct or regulatory breaches in the buying and selling of Malaysia Airports Holdings Bhd’s (MAHB) (KL:AIRPORT) shares and the purported losses incurred from the transaction. In a statement on Wednesday, EPF said that these claims are unfounded. “In adherence to EPF’s Chinese Wall Policy, there is a strict boundary between teams that have access to material non-public information and teams that deal in the public markets, ensuring that no privileged information crosses between them. “The public markets team operates independently, making trading decisions solely based on publicly available information,” it said. The EPF added that it welcomes any review and investigation regarding its investment in MAHB and is fully committed to transparency and accountability.–BERNAMA

KUCHING: Sarawak has formalised its takeover of MASwings Sdn Bhd from Malaysia Aviation Group (MAG), with the airline to be renamed AirBorneo as the state’s own carrier. The Sarawak government signed a sale and purchase agreement with MAG on Wednesday (Feb 12) for the transfer of ownership. “Today I am proud to announce our Sarawak airline will be known as AirBorneo,” Sarawak Premier Tan Sri Abang Johari Openg said at the signing ceremony here. He said AirBorneo would operate as a full-service carrier, creating balance between connectivity, affordable fares and economic benefits. The new airline will continue to focus on rural air services (RAS) while progressing to destinations within a four- to five-hour radius, before expanding further in future. It will also engage in strategic partnerships and code sharing agreements with other airlines, including Malaysia Airlines. Abang Johari said the acquisition was a strategic investment by the Sarawak government, underlining its commitment to enhancing regional connectivity and boosting economic growth. He said the move would position Sarawak as an aviation hub for Borneo and gateway to Asean, improving connectivity to domestic and international destinations. “This empowers us to take control of and manage our air connectivity, allowing us to tailor services that meet the needs of our people and our economy. “With plans for new international routes and key markets, we are elevating Sarawak into a prominent player in the regional aviation sector,” he said. Abang Johari also said Sarawak was working closely with MAG to ensure a smooth handover and minimise disruptions. He added that Sarawak was also keen to collaborate with MAG on training programmes to develop the aviation sector. Meanwhile, MAG said the transfer of ownership was expected to be completed by the end of the year. “(We are) working closely with all stakeholders, including shareholder Khazanah Nasional Bhd, to ensure a seamless transition and compliance with all legal and regulatory frameworks,” it said in a statement. MAG also said MASwings would continue operating as usual under its purview throughout the transition period, with no disruptions to flight schedules to ensure uninterrupted air services. The sale and purchase agreement was signed by Sarawak state secretary Datuk Amar Mohamad Abu Bakar Marzuki on behalf of the state government and group managing director Datuk Capt Izham Ismail for MAG.–THE STAR

KUALA LUMPUR: Glove entrepreneur Stanley Thai has been fined RM60,000 for refusing to fully comply with a High Court order that instructed him to divulge certain details in his divorce proceedings against Tan Bee Geok. Justice Evrol Mariette Peters also ordered Thai to pay Tan another RM30,000 in costs. Both payments must be made within 14-days, failing which Thai will be sent to jail until he purges the contempt. Peters, who delivered her broad grounds last Friday, said Thai has until March 31 to comply with the January 2024 court order to avoid being imprisoned for contempt. She said Tan had proven beyond reasonable doubt Thai’s wilful refusal to follow the court’s instructions, rather than failing to comply due to ignorance, inability or external circumstances. The order states that Thai has to file an affidavit to disclose his assets and bank accounts in Malaysia and overseas. The objective was to protect matrimonial assets from improper dissipation during divorce proceedings. Peters said Thai’s contention that the order was unclear is untenable. She said Thai’s failure to seek clarification from the court, if at all he was unclear of his obligations, suggested that he fully understood the other terms. “Therefore, I conclude that the husband had deliberately and wilfully refused to comply with the terms of the court order,” she said. “Contempt proceedings are not about punishing someone for failing to comply with an order that benefits or harms the other party. “Rather, it concerns actions that disrupt or undermine the integrity and authority of the judicial system itself. The principles of contempt apply equally to all, regardless of one’s identity or position.” Thai and Tan – founders of Supermax Corp Bhd – were married in August 1987 and have three children. Their union suffered after numerous allegations were made by both parties against the other. Tan filed for judicial separation in April 2022, while Thai filed his divorce petition in April last year. –FMT    

HONG KONG: China’s insatiable appetite for bubble tea has spawned another billionaire. Guming Holdings’ US$233 million (S$315 million) Hong Kong initial public offering (IPO) bolstered the value of the stake owned by its millennial founder, Mr Wang Yun’an, to US$1.2 billion, according to the Bloomberg Billionaires Index. The company’s shares rose as much as 4.6 per cent to HK$10.40 on Feb 12, before trimming gains. Mr Wang joins the growing club of Chinese bubble tea billionaires who have sprouted in recent years amid soaring demand for the drinks – a US$9.6 billion market in 2018 that is forecast to balloon into US$71 billion in three years. But he is also taking his company public at a time investors are becoming increasingly wary about pumping money into such a competitive industry, where vendors regularly engage in price wars. Take Sichuan Baicha Baidao Industrial, the maker of Chabaidao tea. It was the most recent firm concocting the drinks to list in Hong Kong in April 2024. The company’s husband-and-wife founders Wang Xiaokun and Liu Weihong had a combined net worth of about US$2.7 billion at the time of the debut, but their fortune has shrunk as the stock lost nearly half of its value. That has not stopped Mr Wang Yun’an and his rivals from seeking to raise funds so they can keep adding to the thousands of stores their chains already have. For example, industry leader Mixue Group has revived plans for an IPO. The company’s founding brothers Zhang Hongchao and Zhang Hongfu had an estimated net worth of about US$1.5 billion each as of April. Mr Wang Yun’an is betting that Guming, which sells tea under the “Good me” brand, will appeal to investors because of his unique strategy. While others seek to make their fortunes in big cities like Beijing and Shanghai, the company specifically targets smaller cities and townships where bubble tea is not as readily available and where growth outpaces that of large megacities, according to Guming. He would know. Mr Wang Yun’an opened his first tea shop in his hometown of Daxi – whose population of under 200,000 makes it a tiny place by Chinese standards – in Zhejiang province near Shanghai nearly 15 years ago. His tea chain has caught on and expanded deeper into China’s hinterland to amass nearly 10,000 stores. After surviving the ultra-competitive landscape, Mr Wang Yun’an’s brand emerged as the second largest among freshly made bubble tea makers in terms of total sales and number of stores by the end of 2023, according to research cited in the IPO prospectus. Guming’s Good me had a market share of 9.1 per cent as of the end of 2023 among China’s top five bubble tea brands, trailing only Mixue’s 20 per cent, according to the research. Starting in Taiwan as a sugary, high-calorie comfort drink, bubble tea has evolved drastically in China, with various chains competing to offer healthier versions like tea latte or freshly brewed ice tea blend with fruit compote or juice.–BLOOMBERG

According to Mordor Intelligence, Malaysia’s freight and logistics industry is a cornerstone of the nation’s economic growth. The market is projected to expand from RM 131.96 billion (USD 29.70 billion) in 2025 at a CAGR of 5.20%, reaching RM 170.10 billion (USD 38.28 billion) by 2030. This growth is largely fueled by the rise of e-commerce and the expansion of international trade. As online shopping booms, logistics providers are under increasing pressure to meet consumer demands for faster, more reliable deliveries. Additionally, Malaysia’s **manufacturing sector—particularly in electronics and automotive industries—**has intensified the need for efficient supply chain management and just-in-time deliveries. However, rising operational costs present a major challenge. The industry faces increasing raw material, energy, utility, and labor expenses, coupled with new sustainability mandates such as the carbon tax introduced in Budget 2025. As competition tightens, businesses must explore cost-effective strategies without compromising efficiency. The Role of Fuel Efficiency in Cost Management Fuel costs represent a significant portion of logistics companies’ expenditures. In fact, 32% of fleet managers cite fuel as their single largest cost. Shairan Huzani Husain, Managing Director of Shell Malaysia Trading Sdn Bhd and Shell Timur Sdn Bhd, emphasizes the urgency of fuel optimization, stating: “In order to stay competitive, companies must identify innovative strategies to manage their operational costs without compromising efficiency.” Fuel Smarter, Drive Longer: Enhancing Productivity with Shell FuelSave Diesel For Malaysian businesses striving for operational excellence, adopting Shell FuelSave Diesel can be a game-changer. With its advanced Triple-Action Formula, the fuel offers: Up to 3.75% fuel savings, reducing refueling frequency and operational costs. Enhanced vehicle productivity, recovering up to 83% of lost power caused by deposit buildup. Deep-cleaning properties that prevent performance-hampering deposits in diesel engines. Lower CO2 emissions, supporting sustainability goals while improving fuel economy. Strengthening Malaysia’s Logistics and Economic Future The logistics sector remains a key driver of Malaysia’s economic growth, powering industries from manufacturing to international trade. As the industry navigates challenges such as rising costs and sustainability mandates, innovation in fuel technology is proving to be a critical tool in maintaining competitiveness. Shairan highlights the strategic role of fuel solutions in Malaysia’s economic advancement, stating: “Malaysia’s logistics and freight sector is a critical driver in our economic development. Our transportation infrastructure is fundamental to national progress, with fuel technology playing a pivotal role in unlocking the country’s full potential. By providing cutting-edge fuel solutions, Shell is not just powering businesses—we are investing in the industries that drive Malaysia’s future.” As the logistics industry evolves, fuel efficiency solutions like Shell FuelSave Diesel demonstrate how businesses can balance cost management with operational excellence, ensuring sustained growth in a rapidly changing market.

Bitdefender, a global leader in cybersecurity, today announced the acquisition of a key division of BitShield, responsible for distributing Bitdefender solutions in Malaysia and Brunei as a trusted Country Partner. The acquisition underscores Bitdefender’s continued investment in the Asia-Pacific (APAC) region, one of cybersecurity’s fastest-growing markets. This acquisition aligns with Bitdefender’s broader strategy to expand its presence in the APAC region through both organic growth and strategic partnerships. It builds on the successful acquisition of Singapore-based Horangi Cyber Security, a company specialising in cloud security, consulting, and offensive services. By leveraging its deepened regional presence and broader capabilities, Bitdefender is better positioned to address critical cybersecurity challenges organisations face as they navigate a growing attack surface and complexity of securing multi-cloud environments.   “Our long-standing collaboration with Bitdefender has enabled us to deliver leading-edge cybersecurity solutions to hundreds of partners and thousands of customers across Malaysia and Brunei,” said Susan Lulla, CEO at BitShield. “By combining our deep understanding of the local market around security and data regulation challenges with Bitdefender’s global operations, we are well-positioned to deliver tailored security solutions and exceptional outcomes for organisations as the threat landscape evolves.”   For several years, BitShield has sold and supported Bitdefender solutions in Malaysia and Brunei, including endpoint protection and other offerings, to organisations across several key sectors, including government entities, financial institutions, multinational corporations, and technology companies. Central to these offerings is the Bitdefender GravityZone Platform, a unified security and risk analytics solution that offers organisations options for advanced endpoint protection, including endpoint detection and response (EDR), extended detection and response (XDR), and cloud security for physical, virtual, and multi-cloud environments. GravityZone delivers deep security context for detections and seamlessly integrates with Bitdefender MDR services.   “We are pleased to announce this strategic acquisition as part of our ongoing commitment to expanding our APAC presence,” said Florin Talpes, co-founder and CEO of Bitdefender. “Building on our initial success in Singapore and Malaysia, this marks another step in our journey to grow our business there by working with more partners, reaching more customers, and expanding our team significantly. This investment also reflects our relentless dedication to being a trusted cybersecurity partner for businesses and government organisations worldwide.”   Transaction Details The terms of the transaction are not being disclosed. The acquired BitShield division will be fully integrated into Bitdefender’s global operations, transitioning to the Bitdefender brand. BitShield will retain its identity and operations outside the Bitdefender portfolio. As of January 1, 2025, Twdor Sdn Bhd, became an official and newest distributor of Bitdefender business security solutions in Malaysia.

KUALA LUMPUR:  Proton Holdings Bhd has started construction of a new electric vehicle (EV) production plant at its Tanjung Malim facility,   In a statement on Friday, Proton said this is targeted for completion by the end of 2025, at an investment cost of RM82 million. The first phase of the company’s EV assembly plan will have an initial planned capacity of 20,000 units per year, it said. Once operational, the facility will produce multiple models based on the Global Modular Architecture (GMA) platform, beginning with the Proton e.MAS 7 — the first EV to be launched by a Malaysian automotive brand. Proton has also outlined plans for a second phase of the plant, which would increase annual capacity to 45,000 units, in response to projected demand both domestically and internationally. “Once completed, this new factory will focus on producing the Proton e.MAS 7, as well as future NEV (new energy vehicle) offerings, as Proton expands its model range. “Ultimately, we hope our success will establish a modern and capable automotive ecosystem to encourage more OEMs (original equipment manufacturers) to consider Malaysia and AHTV (Automotive High Tech Valley) as a regional base for EVs,” said Dr Li Chunrong, chief executive officer of Proton. As well as that, Proton has projected that its new EV production plant will create over 200 new jobs, focused on EV industrialisation and technical services, for the local community. This figure does not account for the potential employment growth within the AHTV vendor community, which is expected to expand as operations ramp up to supply key parts critical to the assembly process. Proton was established as Malaysia’s first national car project, with the aim of supporting the country’s economic development and contributing to the growth of the local automotive industry. The proposed new EV plant came nearly eight years after Zhejiang Geely Holding Group acquired a 49.9% stake in Proton. DRB-HICOM owns the other 50.1% in the national carmaker.–THE EDGE

 Microsoft Corp plans to spend US$80 billion (RM360.16 billion) this fiscal year building out data centres, underscoring the intense capital requirements of artificial intelligence (AI). More than half of this projected spending through June 2025 will be in the US, Microsoft President Brad Smith wrote in a blog post on Friday. Recent AI progress is thanks to “large-scale infrastructure investments that serve as the essential foundation of AI innovation and use”, Smith wrote. Cloud infrastructure providers like Microsoft and Amazon.com Inc have been racing to expand computing capacity by constructing new data centres. In the previous fiscal year ending in June 2024, Microsoft spent more than US$50 billion on capital expenditure, the vast majority related to server farm construction fuelled by demand for AI services. Smith also cautioned the incoming Trump administration against “heavy-handed regulations” related to AI. “The most important US public-policy priority should be to ensure that the US private sector can continue to advance with the wind at its back,” Smith wrote. The country needs “a pragmatic export control policy that balances strong security protection for AI components in trusted data centres with an ability for US companies to expand rapidly and provide a reliable source of supply to the many countries that are American allies and friends”, Smith wrote. Much of the spending on data centres goes towards high-powered chips from companies including Nvidia Corp and infrastructure providers such as Dell Technologies Inc. The massive AI-enabled server farms require lots of power, which prompted Microsoft to strike a deal to reopen a reactor at the Three Mile Island nuclear power plant in Pennsylvania, the site of a notorious partial meltdown in 1979. Amazon and Google have also signed nuclear power agreements.–BLOOMBERG