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News, Property

Govt to Introduce New Property Act Next Year for Peninsular Malaysia

KUALA LUMPUR: The Real Property Development Bill for Peninsular Malaysia is expected to be tabled in Parliament in 2025. Housing and Local Government Minister Nga Kor Ming mooted the idea of establishing the Act and said that considering the modern trend of living in a mixed development of retail, commercial, small office home office (SOHO) and medical residence, it is timely for the government to look into establishing the Act which would be more comprehensive, transparent and accountable. “Since 1966, there has been the Housing Development Licensing Act, which only covers residential properties. With the new Act, the interests of purchasers, developers and landowners will be protected. “This can drive the local economy and create job opportunities, even buyers of units at TRX Residences come from more than 25 countries including Dubai, China, Hong Kong, Singapore and so on,” he added. Nga also pointed out that the TRX Residences project developer managed to obtain the strata titles 2 months ahead of its Certificate of Completion and Compliance (CCC). Commenting on the idea of exploring rental housing options for people who can’t afford to buy a home, the minister said the government needs to take a fair and balanced approach on the matter where all parties, including developers have a role to play for the nation. “While making profits, developers must also have a sense of corporate social responsibility to the people. Through strategic collaborations with the private sector, we hope the government will be able to provide 500,00 affordable homes by the end of the 12th Malaysian Plan,” Nga added. — BERNAMA

Investment & Market Trends, News

Global Investors Putting Their Wealth in Assets to Protect Against Volatile Markets

KUALA LUMPUR: Global investors are positioning in tangible assets such as real estate, gold, silver, art and agriculture to safeguard their wealth amid turbulent financial markets. Juwai IQI Global Chief Economist Shan Saeed said tangible asset classes are poised to outperform many other asset categories. “Gold prices are reaching all-time highs due to geopolitical risks, a positive macroeconomic outlook and stubborn inflation. “The commodities supercycle has reemerged in the macro equation, prompting global investors to adopt long-term positions,” he said. According to the latest Juwai IQI market intelligence report tracking commodity price movements over the past year, copper surged by 31%, silver by 22%, gold by 18%, zinc by 17%, aluminium by 16%, West Texas Intermediate crude by 11% and Brent crude by 9%. Coffee saw a rise of 6% while gasoline, natural gas, heating oil and wheat experienced increases of 3%, 2% and 1% respectively. “We have now adjusted our forecast in line with market expectations, anticipating gold prices to trade between US$2,600 (RM12,197) and US$3,000 (RM14,073) per ounce by December 2024. “Tangible assets such as real estate, gold and silver are making a comeback in asset portfolios, reminiscent of the 1970s era,” Saeed added. He recalled that during that time, amid stagflation characterised by higher inflation and lower growth, sophisticated investors positioned themselves in gold, silver, oil, gas and real estate. Additionally, he added that real estate has emerged as the new global currency for savvy global investors. — BERNAMA

Energy & Technology, News

SPM, Tesdec Services Ink Green Energy Purchase Agreement for Solar PV Projects

KUALA LUMPUR: System Protection & Maintenance Sdn Bhd (SPM) signed a memorandum of purchase agreement for green energy with Tesdec Services Sdn Bhd (TSSB) to develop several rooftop solar photovoltaic (PV) projects. According to SPM, this collaboration with TSSB enabled 8 PV installation projects to be implemented with a total capacity of 1,332 megawatt (MW) peak. “All the projects are under the Net Energy Metering (NEM) 3.0, government ministries and entities as well as Net Offset Virtual Aggregation (Nova) programme implemented through the solar power purchase agreement (SPPA) with the Terengganu government agency. The first SPPA was signed on 6 December 2022 for a Pesaka Terengganu Bhd project, followed by the Terengganu Skills Development Centre or Tesdec College project. Being an engineering and construction company that specialises in power plants and substations, SPM also informed that the 2 PV projects for Pesaka and Tesdec College were fully completed last year. “Both projects commenced or were operational on 3 September 2023 and 17 January 2024. The projects have generated around 270MW-hours since their commencement,” SPM said.

News

Malaysian Smokers Embrace Vaping for Healthier Lives, Tobacco Use Drops as Vape Gains Popularity

KUALA LUMPUR: An increasing number of Malaysian smokers are switching to vaping to quit smoking tobacco products, a recent carried out by the Global Adult Tobacco Survey (GATS) shows. In welcoming the findings of the survey, the Advanced Centre for Addiction Treatment Advocacy (ACATA) noted that it also revealed a significant reduction in tobacco use among Malaysians while the incidence of vape use increased. According to the report, tobacco use among Malaysians decreased from 23 per cent in 2011 to 19 per cent in 2023, while vape use increased from 0.8 per cent to 5.8 per cent over the same period. These figures highlight the smokers’ preference for a harm-reduction approach despite the lack of comprehensive regulations that facilitate tobacco harm reduction. ACATA president Dr Arifin Fii said this is the first time that Malaysia achieved a significant reduction in smoking prevalence. He said that based on National Health and Morbidity Surveys (NHMS), Malaysian adult smoking prevalence has plateaued over the past three decades, with 24.8 per cent in 1996, 21.5 per cent in 2006, 23.1 per cent in 2011, 22.8 per cent in 2015 and 21.3 per cent in 2019. “GATS showed that the accelerated reduction in smoking prevalence coincides with the rapid rise in nicotine vape use,” he said in a statement. Since there have been no major policy and regulatory changes in tobacco control in the last decade, this rapid decline in smoking prevalence strongly suggests that more smokers are moving away from tobacco and substituting it with the much less harmful vape. More importantly, this reaffirms that vaping is an effective tool for quitting smoking, which is an important step towards reducing the health risks associated with smoking. A similar trend in the decline in smoking prevalence is also seen in countries like the United Kingdom (UK), where its smoking prevalence has been significantly reduced through the use of vape. According to data from the UK’s tobacco control body, Action on Smoking and Health (ASH), the overall rate of smoking in adults in England in 2022 was 12.7 per cent, down from 13 per cent in 2021. Meanwhile, the proportion of the population using vapes stood at 9.1 per cent, compared to 7.1 per cent in 2021. Results from GATS also indicated that despite an increase in healthcare providers giving quit-smoking advice, attempts to quit tobacco have remained stagnant. Instead, the use of nicotine vaping (14 per cent) became a more popular choice for quitting smoking than medication (10 per cent) or counselling (8 per cent). This implies that the current tobacco control measures are insufficient and ineffective. A more bold and innovative measure, such as a tobacco harm reduction approach using tools like vape, is a very sensible way forward in tobacco control that will rapidly reduce the prevalence of smoking in Malaysia. ACATA advocates for more pragmatic policies that support and facilitate smokers to quit smoking by empowering them with knowledge, facts, and awareness to make informed decisions rather than imposing very restrictive and prohibitive measures. Recent proposed measures for nicotine vaping products indicated by the Ministry of Health, such as a display ban, restricting flavours and standardised packaging guidelines, will be counterproductive and will deter smokers from switching from deadly smoking to much less harmful nicotine vaping. “Smokers need education and support, not restrictive regulations,” Dr Arifin added. “By embedding harm reduction strategies into quit-smoking programmes, we can provide smokers with the tools they need to succeed in their efforts to quit,” he said.

Investment & Market Trends, News

Public Bank’s 1Q24 Net Profit Falls Amid Rise in Customer Loans

KUALA LUMPUR: Public Bank Bhd’s net profit fell by 3.5% to RM1.65 billion in the first quarter ended 31 March 2024 (1Q24) from RM1.72 billion a year ago. “The positive impact of the overnight policy rate (OPR) hikes which occurred a year ago did not recur in the quarter under review,” the bank said. Nonetheless, revenue jumped to RM6.79 billion from RM6.12 billion previously. Other operating expenses rose by RM104 million mainly due to higher personnel costs while loan impairment allowance increased by RM61.9 million from a low base of RM1.5 million in the previous corresponding quarter. “However, net interest and Islamic banking income increased by RM74.3 million due to healthy loan growth achieved during the period. “Non-interest/financing income improved marginally by RM3 million, mainly due to higher income from unit trust business, but this was partially offset by lower investment income and lower foreign exchange income,” it said. The bank added that profit continued to be supported by healthy loans and customer deposits growth. Gross loans grew by RM23.7 billion (6.2%) to RM405.3 billion as of 31 March 2024 against RM381.6 billion a year ago, contributed mainly by mortgage financing growth, hire purchase financing and commercial property financing. Total deposits from customers increased by 4.1% (RM16.5 billion) to RM420.2 billion as of 31 March 2024. Public Bank Managing Director and Chief Executive Officer Tan Sri Dr Tay Ah Lek said the group continued to sustain a commendable net return on equity of 12.3%, an efficient cost-to-income ratio of 35.4% and a stable asset quality with a gross impaired loan ratio of 0.62% for 1Q24. “The group will remain vigilant in its business approach and will continue to maintain its prudent risk profile to weather ongoing risks. “The group will continue to take a proactive approach to embrace growth opportunities and will also continue to pursue digital transformation, further stepping up its environmental, social and governance (ESG) efforts,” he said. — BERNAMA

Investment & Market Trends, News

MIDF Research Expect Exports to Grow Based on Rising Trend

KUALA LUMPUR: MIDF Research has maintained its projection that Malaysia’s good exports and imports will recover this year, growing at 5.2% (-8% in 2023) and 4.4% (-6.4% in 2023). The firm expects global electrical and electronics (E&E) trade turnaround and the broad improvement in external demand from major markets to support export recovery this year. “The pick-up in investment activities and businesses stocking up on materials in anticipation of growing demand will also help imports to recover this year. “Nevertheless, we remain cautious that the ongoing geopolitical conflicts and trade could negatively derail the trade outlook,” it said in a research note. At the same time, MIDF Research is closely monitoring demand, which is constrained by high interest rates kept for an extended period and possible weaker Chinese growth prospects. The Investment, Trade and Industry Ministry (MITI) said that Malaysia’s trade continued its upward trajectory in April 2024, recording a 12.1% growth to RM221.74 billion compared to the previous year. MITI said that exports rebounded in April 2024 by 9.1% year-on-year (YoY) to RM114.72 billion after 2 consecutive months of contraction in line with global trade recovery. “Growth was contributed mainly by higher exports of machinery, equipment and parts, chemicals and chemical products, crude petroleum, palm oil and palm oil-based agriculture products and iron and steel products,” it said. MIDF Research views April’s stronger external trade as in line with regional trends and expects further pick-up in external demand to support the economy this year. “We opine that a recovery in exports to major markets signals a broad-based and general pick-up in international trade activity in April. “We are expecting exports to grow to major markets like the US, China and ASEAN to support the overall external trade recovery this year,” it added. The commodity sector will ride on the growing demand for resource-based materials with sustained global growth. The research firm oversees E&E exports to gradually improve in the coming months in line with better global semiconductor sales and global E&E market turnaround. “Manufacturing exports will also benefit from global production recovery as firms restock and rebuild inventories,” it continued. OCBC Senior ASEAN Economist Lavanya Venkateswaran said there is likely to be some normalisation in export growth in YoY terms as favourable base effects fade. “Notwithstanding that, we expect a trend improvement in export growth supported by E&E exports in the second half of 2024 (2H24) as global electronics demand improves in line with our house view. “The trade and current account surpluses should remain supported. We maintain our 2024 current account surplus forecast of 2.5% of gross domestic product (GDP),” she said. “Resilient growth prospects and solid external balances amid benign inflationary pressures will allow Bank Negara Malaysia (BNM) to keep its policy rate unchanged in 2024. “The key risk to our forecasts is from the timing and mechanism in the introduction of targeted fuel subsidies,” she added. — BERNAMA

News

Kinergy Advancement posts RM42.04mil in revenue for Q1 FY24

KUALA LUMPUR: Kinergy Advancement Bhd (KAB) posted a revenue of RM42.04 million for the first quarter (Q1) ended March 31, 2024 (FY2) compared to RM42.76 million posted in the same quarter last year. The sustainable energy and engineering solutions provider continues demonstrating strong quarterly financial growth. The company’s net profit for the quarter increased by 98.6 per cent to RM5.12 million in Q1 FY24 compared to RM2.58 million in the same quarter a year ago. This growth underscores the effectiveness of KAB’s strategic focus on its sustainable energy segment (SES), which continues to drive the company’s financial and operational momentum. With strong growth in Q1 FY24, KAB has catalysed a series of consecutive wins and sustained a trajectory of unstoppable growth, demonstrating its capabilities and competencies in leading the charge in sustainable energy solutions. The SES segment, in particular, has shown exceptional performance, generating a revenue of RM19.86 million, more than tripled over the past year. This significant increase can be attributed to the contributions from new projects and acquisitions. The SES segment generated an operating profit of RM5.94 million, significantly higher than RM2.68 million last year. This highlights the strong profitability and bright future of KAB’s skills in creating renewable and sustainable energy projects. Executive deputy chairman and group managing director Datuk Lai Keng Onn said KAB’s consistent progress in embracing its promising business transformation as the first-quarter result for the year is released. “Our alignment with strategic directions and seamless integration of our unique energy solutions ecosystem into our business model has been particularly notable. “The SES segment leads in significant revenue contribution, showcasing the segment’s potential to support national decarbonisation efforts and enterprises’ benefit from sustainable energy conservation alternatives,” he said in a statement. He added that the SES business has significantly contributed to the new record high in earnings, reflecting the company’s upward trajectory since expanding into the SES business segment. Looking ahead, KAB remains cautiously optimistic about its future prospects, which are predominantly driven by the SES business segment. KAB highlighted the success of its profitable projects and new ventures in this sector, showing strong earnings growth in the SES segment in Q1 FY24, driven by the development of a sustainable energy ecosystem. “Our strategic focus on the energy segment with clean energy (CE), renewable energy (RE) and energy efficient (EE) solutions continues to align with expanding recognition of our technical capabilities. This prominent recognition fuels our optimism for a positive outlook in FY24. “We are strategically positioned to meet and exceed our clients’ evolving energy needs. Our innovative solutions stand out, offering significant growth potential and the capability to help clients transition their operational processes with sustainable and innovative energy solutions,” Lai said. KAB continues expanding its SES offerings, focusing on CE, RE and EE, including Southeast Asia’s solar, biogas, and hydroelectric power projects.

News

Abang Johari Calls for Creation of Mechanism to Control Inflation

KUCHING: Sarawak Premier Tan Sri Abang Johari Openg urges the government to come up with a mechanism to effectively control inflation to ensure that workers can fully benefit from increases in wages. He said that any wage increase announced by the government or the private sector is meaningless if it only leads to a sudden increase in the prices of goods and services as well. “If wages increase, local consumption can also increase. This will stimulate the economy, but it might cause higher inflation. “We don’t want a salary increase while purchasing power remains the same, as this does not give any benefit,” he told reporters. Abang Johari was commenting on Economy Minister Rafizi Ramli’s statement that the federal government would review the United Nations Children’s Fund (Unicef) proposal to set the minimum wage at RM2,102 per month compared with the current RM1,500. Rafizi said the MADANI government’s policies focus on increasing people’s wages to overcome any rise in the cost of living. Abang Johari said that the federal government, especially Bank Negara Malaysia and the Ministry of Finance must consider the impact of a percentage wage increase on the flow of money in the market. “Our economic policy must be balanced and banks should provide their input as inflation results from too much money (in the market chasing) too few goods. If you raise interest (rates), the flow of money in the market will also be reduced and the supply of goods will decrease,” he explained. According to Abang Johari, he has instructed state secretary Datuk Amar Mohamad Abu Bakar Marzuki to conduct a detailed study concerning the wage increase for the state’s civil servants, which the private sector usually follows depending on their financial ability. “For us in Sarawak, we will conduct a study on wage increase based on productivity. The state government emphasises skill and talent development (to create high-skilled jobs). “If you have the skill, then your pay is higher,” he added. — BERNAMA

News

New ACCA Research: 63% of Asia Pacific SMEs and Advisers Fear Standing Up to Corruption Will Cost Business Opportunities

The new ACCA report, Bribery and Corruption: The Hidden Social Evil on Your Doorstep, investigates the profound impact of bribery and corruption on SMEs worldwide, underscoring the urgent need for greater transparency and stronger regulatory frameworks. The research reveals a high prevalence of bribery and corruption, with 63% of SMEs and their advisers believing that resisting such practices could result in lost business or opportunities. Despite these concerns, there is a strong recognition of the benefits of standing up to corruption: 68% agree that a robust anti-bribery policy enhances customer confidence, and 83% believe it improves their chances of securing lucrative contracts with major corporations and public sector entities. Jason Piper, ACCA’s Head of Tax and Business Law, stated, “Corruption is a poison; it distorts markets, stunts economic growth, and deters investment. Many very small businesses lack the bargaining power to refuse when small bribes are demanded. Entrepreneurs often face the tough choice between paying the bribe or losing their business, a choice that is particularly harsh for those trying to support their families.” “Our report aims to equip businesses and regulators with the insights and tools needed to combat corruption and foster an environment of transparency and trust. This includes leveraging the latest digital tools. Just as technology is used by criminals, regulators and enforcement agencies should adopt it to detect, prevent, and respond to corruption.” Andrew Lim, Portfolio Head, ACCA Maritime Southeast Asia, added, “Bribery and corruption remain significant challenges for SMEs in Malaysia and the Asia Pacific region. It is essential for businesses to maintain their integrity while competing in a challenging market. By promoting transparency and ethical conduct, SMEs can overcome these obstacles and build a more resilient and equitable business environment.” The report draws on extensive global data, expert opinions, and real-world case studies to examine the multifaceted impacts of corrupt practices on SMEs and economic development. It highlights the severe consequences businesses can face, including legal penalties and significant damage to their reputations. Additionally, the report evaluates the effectiveness of current anti-corruption laws and policies across various countries, noting that while progress has been made, much work remains to align international efforts. Piper emphasized, “As global markets become increasingly interconnected, the need for accountability and ethical business practices is more critical than ever.” ACCA hopes this report will act as a catalyst for change, encouraging organizations across all sectors to evaluate their practices and adhere to the highest standards of business conduct. The report is highly recommended for business leaders, policymakers, and regulatory bodies worldwide committed to eradicating corruption and fostering a fairer business environment. Read the report here.

News, Property

Times Square 2 to Sell Out By Year-End With GDV of RM625 Mil

KUALA LUMPUR: Berjaya Times Square Sdn Bhd (BTS) is confident that its newly launched Times Square 2 residential project will be sold out by year-end. Its executive director Syed Ali Shahul Hameed state that the project, valued at RM625 million, will sell quickly due to its prime location, modern amenities, attractive pricing and exceptional connectivity. Located on Jalan Imbi, adjacent to Berjaya Times Square mall and Bukit Bintang City Centre, the project features 629 services residences on a 41-storey tower. Units range from 488 sq ft 1-bedrooms to 1,356 sq ft 3-bedrooms with prices going from RM688,000 to RM2.65 million. Meanwhile, BTS Executive Director Tan Tee Ming added that Times Square 2 offers facilities designed for urban dwellers seeking capital gains and practical layouts. “Options include hackable walls for combining units, dual-key designs for rental flexibility and ensuite bathrooms to prevent morning rushes,” he explained. Apart from having a GreenRE Gold Rating Certification, the development is also pet-friendly. — BERNAMA

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