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Investment & Market Trends, News

ES Ceramics Suffered a Devastating 84.4% Loss in Profits for Q3

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KUALA LUMPUR: Manufacturer of hand formers and glove moulds, ES Ceramics Technology Bhd experienced an 84.4% loss in its net profits for its third quarter (Q3) ended 29 February 2024 to RM774,000 compared to its RM4.7 million in last year’s corresponding quarter. According to its quarterly financial report, it was stated that the decline in profit was mainly attributed to the manufacturing segment facing a lower average selling price and sales volume amid higher operating expenses. Despite this, the group managed to gain a marginal 7.5% increase in its revenue of RM87.68 million compared to last year’s corresponding quarter of RM81.55 million. However, the figure is a slight decline compared to the group’s immediate preceding quarter of Q2, which recorded a revenue of RM93 million. “The lower revenue was mainly due to the production output being affected by the Chinese New Year breaks, coupled with the significant increase in material costs for building material segment respectively. “In addition, the preceding quarter has recorded a disposal gain arising from the sale of an industrial land. This gain had contributed substantially to the financial performance of the preceding quarter,” the report stated. Moving forward, the group expects the economy to continue to be on a challenging trend, especially in terms of the increase in raw material prices coupled with higher gas and electricity unit prices. “Despite the prevailing challenges, the Group remains cautiously optimistic on the long-term business prospects and will continue to actively pursue various business strategies to increase its revenue, strengthen product portfolios, enhancement of supply chain security, focus on reducing redundancy, improving efficiency, automation across our operations and to implement cost control measures to maintain our competitiveness during this challenging time,” it said. ES Ceramics’ former manufacturing plants are located in Ipoh City, Perak and Sadao City, Songkhla Province, Thailand. The factory in Thailand produced mainly examination formers, surgical formers, household formers and industrial formers, as well as custom made formers whereas the plant in Malaysia focuses on the manufacture of examination formers.

Investment & Market Trends, News

ANCOM NYLEX Achieves Record-Breaking Earnings in First Nine Months

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PETALING JAYA: In the nine months ended February 29, 2024, Ancom Nylex achieved revenues of RM1.51 billion. The net profit increased by 10.7% year-over-year, reaching an unprecedented RM63.0 million for the same period, marking the first time it has exceeded RM60 million. The growth was primarily fueled by the Agrichem segment, which experienced robust sales of higher-margin products, leading to a 23.4% year-on-year increase in Earnings Before Interest and Tax (EBIT) to RM79.3 million. Managing Director and Group CEO, Lee Cheun Wei commented on the positive outlook, highlighting strategic initiatives such as new AI developments and operational enhancements to strengthen the Group’s market position. He also emphasized plans to expand product offerings in Latin America and optimize operations in the Industrial Chemicals segment. During the third quarter (Q3) of FY24, revenue rose to RM516.8 million, driven by growth in the Agrichem and Industrial Chemicals segments. Net profit for the quarter increased to RM20.1 million, reflecting improved sales of higher-margin products within the Agrichem segment. Additionally, Ancom Nylex announced the proposed acquisition of Green Lagoon Technology Sdn Bhd, aligning with its commitment to environmental responsibility and Malaysia’s renewable energy targets. This strategic move reinforces the Group’s aim for full decarbonization by 2025.

ESG, News

Ministry and SMJ Secretariat to Discuss Measures to Tackle Hardcore Poverty in Sabah

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KOTA KINABALU: The Entrepreneur and Cooperatives Development Ministry and the Sabah Maju Jaya secretariat (SMJ) will discuss interventions to address hardcore poverty in the state.   Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick, who is also the Penampang MP, said the discussion aims to formulate entrepreneurial and educational interventions to complement existing initiatives in tackling the issue. “I want to reaffirm our commitment to continue working together to develop the entrepreneurial sector through the Sabah Entrepreneurial Development Coordination Committee as envisioned by the Sabah Governor Tun Juhar Mahiruddin. “The ministry is also following through on this mandate through on this mandate alongside the Sabah Ministry of Industrial Development and Entrepreneurship for the development of micro, small and medium enterprises (MSMEs) and cooperatives in Sabah,” he said. Ewon noted the achievement of total foreign investments amounting to RM26.7 billion over the 2 years from 2021 to 2023, as well as the reduction in hardcore poverty to 12,555 households, as 2 significant accomplishments that the state should be proud of and appreciate. He also commended the Sabah government’s decision to establish a Joint Coordination Committee to coordinate relevant agencies and departments in entrepreneurship development functions between the federal and state governments to maximise economic activities in the state. Meanwhile, Datuk Dr Yusof Yacob said that dwelling on past infrastructure failures would not benefit the people of Sabah. Instead, he urged strong support for the current Sabah government led by Chief Minister Datuk Seri Hajiji Noor in its efforts to provide various infrastructures for the people and eradicate hardcore poverty in the state. “Enough of blaming each other. We should instead support and give opportunities to the state government under the Gabungan Rakyat Sabah (GRS) and Sabah Pakatan Harapan (PH) to solve the state’s issues,” he said. Yusof urged the people to give time and understand the state government’s intentions in addressing existing problems, particularly those concerning water, electricity and roads. — BERNAMA

News, Property

IC Design Park Aims to Bring Economic Returns of RM500 Mil to RM1 Bil

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KUALA LUMPUR: The Malaysia Semiconductor Accelerator and IC Design Park: Selangor Hub, an initiative of the Selangor government through its digital economy arm, is expected to bring in economic returns of RM500 million to RM1 billion. Selangor Information Technology and Digital Economy Corporation (SIDEC) Chief Executive Officer Yong Kai Ping said the integrated circuit (IC) hub in Puchong, Selangor is expected to begin operations and contribute to the state’s economic growth in July. He added that the state-of-the-art facility – developed in collaboration with the Federal Government – will open up professional career opportunities especially in the engineering field with attractive wage offers. Yong was speaking to reporters after signing a letter of intent with four strategic partners, namely Softbank subsidiary ARM Ltd, Phison Malaysia (MaiStorage), SkyeChin Sdn Bhd and the Shenzen Semiconductor Industry Association. The collaboration with these influential entities is aimed at leveraging global expertise and resources to boost local capabilities in semiconductor design. “Within the first year of operations, we expect more than 300 IC design engineers will be employed and the number will increase in the following year,” he said. The IC Design Park, located in a 45,000 sq ft building initially, will be expanded up to 60,000 sq ft later to accommodate industry needs, Yong said. “From 3-storey, we will expand the building to 6 storeys. We have already received strong demand from international investors,” he added. Meanwhile, the Selangor Investment, trade and Mobility Committee Chairman Ng Sze Han expressed his hope for the hub to be the largest IC design park in Southeast Asia. “It is an excellent initiative as it will create job opportunities, even in support sectors like logistics as well as the food and beverage sector,” he added. The primary goal of the park is to promote original design manufacturing, encouraging local involvement in product design, prototyping and production – shifting from “Made in Malaysia” to “Made by Malaysia”. — BERNAMA

Investment & Market Trends, News

World Bank Urges Malaysian Government to Set Clear Revenue Target in Tax Reform

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KUALA LUMPUR (April 22): The World Bank recommends that the Malaysian government specify the revenue targets for its reforms to avoid an ad hoc approach to taxation. Dr. Apurva Sanghi, the World Bank’s lead economist for Malaysia, emphasized the importance of setting clear revenue goals to enable the government to implement appropriate tax policies effectively and in a timely manner. He noted that Malaysia has been collecting insufficient taxes and needs to increase revenue. During a media briefing on the World Bank’s April 2024 Malaysia Economic Monitor report titled “Bending Bamboo Shoots: Strengthening Foundational Skills,” Dr. Apurva stated, “Our main point is the necessity of publicly announcing a revenue target.” Malaysia has been striving to reduce a persistent fiscal deficit that originated during the 1998 Asian Financial Crisis. Recently, the government has implemented various measures such as reducing subsidies and introducing new taxes to address its fiscal challenges. To mitigate the impact on living costs, the government has committed to providing cash and other forms of assistance. This year, the government aims to reduce its budget deficit to 4.3% of economic output from 5% last year. In addition, Dr. Apurva Sanghi emphasized that the Malaysian government’s recent steps to broaden the tax base, including the introduction of a capital gains tax and an expanded services tax, are a positive move but fall short of addressing the revenue shortfall. He stressed that establishing a specific revenue target would enable better communication of tax reform decisions to the public and industry stakeholders, providing clarity on the amount of additional revenue needed. “The question is how much more?” Dr. Apurva emphasized. “What should the target be, should it be from 12.6% to 13% or 14%?” He noted that tax collection as a percentage of gross domestic product (GDP) is projected to increase to 12.8% in 2024 from 12.6% in 2023, which is still significantly below the regional average of 25%. “When you don’t set a target, you don’t know where you’re going; there are many roads to take,” he explained. “So it’s very important to know where you’re going.” At the same event, World Bank senior economist Chong Yew Keat highlighted that setting revenue targets is a standard practice in developed economies, where targets are based on the country’s structural spending. For instance, he explained that an ageing population would lead to increased spending on areas like healthcare as a percentage of GDP. “This approach ensures that the government takes a longer-term perspective and ensures that the revenue increase is sufficient, allowing for tax policy to be more strategically timed and sequenced over time,” he added.

Investment & Market Trends, News

EPIC Group Targets a 10% Revenue Increase by End of 2024

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KUALA TERENGGANU: Integrated oil and gas (O&G) solutions provider, Eastern Pacific Industrial Corporation Bhd (EPIC Group) is eyeing to increase its revenue by 10% this year, reaching RM375.5 million compared to RM344 million previously. Its Group Chief Executive Officer Muhtar Suhaili said the target is due to improvements in the group’s operational efficiency and positive growth in several business segments. Backing the target is the group’s promising first quarter (1Q24) revenue of RM93 million against its projected RM81 million in the company’s 2024 budget. “Based on this financial performance, we believe the group can increase its revenue to RM375.5 million and profit after tax by RM14.5 million by year-end,” Muhtar said. He also outlined plans to further boost the group’s revenue to RM400 million by 2025, including strategies such as infrastructure expansion and gradual enlargement of the Kemaman Port. “We will add 2 more cranes at the Kemaman Port by 2025 and 2026 to increase the port’s capacity at East Wharf from 7 metric tonnes (MT) to 12 million MT. “The ongoing port expansion project is expected to be fully completed by 2029, increasing the overall capacity to 30 million MT per year,” he explained. The group is also engaging in discussions to attract approximately RM850 million worth of investment from a Japanese consortium in 3Q24. The collaboration will involve constructing lithium-ion battery plant and manufacturing of main component of electric vehicles (EVs) in the Teluk Kalong Industrial Area, Kemaman. “We are also planning to maximise the use of EPIC Group’s 600-acre land in Teluk Kalong to generate more profits for the company,” he added. As a government-linked company (GLC) under Terengganu Inc, EPIC Group operates as a service provider to the O&G sector, integrating upstream and downstream industries. Its core businesses include offshore O&G industry services, port management, engineering, marine services and engineering maintenance. — BERNAMA

Investment & Market Trends, News

Powerwell Holdings secures RM22Mil Sub-Contract for Sg Rasau Water Supply Scheme

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KUALA LUMPUR: Powerwell Holdings Bhd’s (PHB) wholly-owned subsidiary, Kejuruteraan Powerwell Sdn Bhd (KPSB), has secured RM22.0 million in subcontract work with One Ocean Environment Sdn Bhd (OOE) to supply low-voltage (LV) switchboards. The subcontract is part of the Sg Rasau Water Supply Scheme’s first stage in Selangor. The scope of the subcontract includes the supply of LV switches, materials, labour, plants, or machinery and supervision for the execution and completion of the works. PHB executive director Catherine Wong said this contract marks a significant milestone for the company as it continues to strengthen its market presence and deliver on its promise of quality and reliability. “We are fully committed to ensuring that the LV switchboard supply for OOE meets the highest standards of excellence,” she said in a statement. The sub-contract award reflects the PHB’s ongoing commitment to delivering electrical solutions and its capability to undertake large-scale projects. It is comprehensive and ensures that PHB is responsible for the project from inception to completion. “Our team’s expertise and dedication have secured this substantial contract. “We look forward to working closely with OOE and contributing to the project’s efficient and sustainable development,” Wong said. With a project completion date set by the end of June 2025, PHB is committed to adhering to strict timelines while maintaining the highest standards of quality and safety. The contract’s scope also ensures the provision of all necessary protection and insurance for the workforce and compliance with all local regulations and statutory contributions. This contract further strengthens PHB’s position as a leading provider of electrical components and engineering services. “We are proud to be part of this strategic development and look forward to delivering a successful project that meets OOE’s high standards,” Wong added.

Investment & Market Trends, News

BNM International Reserves Stands at US$113.4 Bil On 15 April 2024

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KUALA LUMPUR: Bank Negara Malaysia’s (BNM) international reserves amounted to US$113.4 billion (RM542.39 billion) as of 15 April 2024 compared with US$113.8 billion (RM544.3 billion) as of 29 March 2024. The central bank said the reserves are sufficient to finance 5.6 months worth of imported goods and services and is 1 times the total short-term external debt. The main components of the reserves were foreign currency which stood at US$100.1 billion (RM478.77 billion), International Monetary Fund Reserves at US$1.4 billion (RM6.69 billion), special drawing rights (SDRs) of US$5.7 billion (RM27.26 billion), gold at US$2.8 billion (RM13.39 billion) and other reserve assets at US$2.4 billion (RM11.47 billion). Meanwhile, total assets stood at RM630.93 billion comprising gold, foreign exchange and other reserves including SDRs (RM536.93 billion), Malaysian government papers (RM12.99 billion), deposits with financial institutions (RM1.66 billion), loans and advances (RM24.53 billion), land and buildings (RM4.12 billion and other assets (RM50.67 billion). According to BNM, capital and liabilities comprised paid-up capital (RM100 million), reserves (RM192 billion), currency in circulation (RM172.25 billion), deposits by financial institutions (RM142.29 billion), federal government deposits (RM6.09 billion) and other deposits (RM63.64 billion), BNM papers (RM20.70 billion), SDRs allocation (RM30.21 billion), and other liabilities (RM3.62 billion). — BERNAMA

ESG, News

1 Utama Becomes Mall With Biggest On-Site Solar PV Panels in Malaysia

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KUALA LUMPUR: Bandar Utama City Centre Sdn Bhd, operator of 1 Utama Shopping Centre has appointed Solarvest Energy Sdn Bhd to install 273,300 sq ft of solar photovoltaic (PV) panels and building-integrated PV (BIPV) panels on the mall. The panels will cover the rooftop of the building and the carpark to generate over 5,700 kWp of renewable energy, making it the largest on-site solar PV and BIPV project in Malaysia to date. Solarvest will undertake the engineering, procurement, construction and commission works for installing the solar power system and the installation is nearing completion. “Being the first green mall in Malaysia since 1995, we recognise the important role we play in promoting sustainable practices, managing environmental impact and investing in impactful long-term solutions for a circular economy and climate mitigation,” said 1 Utama Shopping Centre Public Relations and Sustainability Senior Manager, Lee Li Lian. He also mentioned that the mall had always set new standards in integrating green features and eco-campaigns, with its award-winning rainforest enclave that features 100 species of forest trees and the mall’s rooftop Secret Garden, which is the largest in Southeast Asia. “We are proud to be adopting solar energy and innovative green technology to further reduce our carbon footprint. This is a step forward for 1 Utama to achieve our ESG and Zero Energy building goals,” he added. With shopping malls being energy-intensive in terms of lighting and air conditioning, Lee said that the solar power system would help the mall conserve electricity usage and reduce reliance on fossil fuels. As part of its environmental, social and governance (ESG) goals, 1 Utama plans to earn the GreenRE Super Low Energy Building Certification by next year and achieve full ESG compliance while implementing International Labour Organisation (ILO) 2019 standards throughout its supply chain. Meanwhile, Solarvest Executive Director and Group Chief Executive Officer of Solarvest, Davis Chong Chun Shiong revealed that Solarvest’s tender book in Malaysia grew from 1.6 gigawatts (GW) last year to 2.8GW this year.

ICT Minister, Lee Jong-ho
Energy & Technology, News

Korea to Invest US$527 Mil to Integrate AI into All Sectors of Society

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KOREA: Korea is poised to make a substantial investment of 710.2 billion won (US$527 million) this year across 69 sectors to drive innovations powered by artificial intelligence (AI) in daily life, industries, and government services, according to announcements from the Ministry of Science and ICT. This initiative aims to catalyse transformative advancements and improve efficiency across various sectors through AI integration. Minister of Science and ICT Lee Jong-ho emphasized the significance of this investment, stating, “We bear a significant sense of responsibility as the primary ministry for AI in this era. Our commitment is to promptly implement measures that will yield tangible results for our citizens and businesses.” This strategic investment aligns with a broader government vision articulated through the establishment of the AI Strategy High-Level Consultative Council. The council, co-chaired by Minister Lee Jong-ho and Taejae University President Yeom Jae-ho, comprises 32 members, including private-sector experts and representatives from major IT companies like Samsung Electronics, SK Telecom, KT, Naver, and Kakao, alongside director-level officials from relevant government ministries. Minister Lee highlighted the council’s role, stating, “We hope that the council will serve as a stepping stone for the nation’s AI advancement, enriching the lives of our citizens, and setting a leading example of harmonious coexistence with AI on the global stage.” The government’s investment and the establishment of the consultative council are part of a comprehensive strategy to leverage AI as a catalyst for economic growth and societal advancement. A government-led study forecasts that the successful integration of AI across various sectors and daily life could generate an annual economic impact of 310 trillion won by 2026. “This analysis suggests that the revenue-generating effect of adopting AI could lead to an additional average annual GDP growth of 1.8 percentage points,” noted the ICT ministry. The council’s objectives extend beyond economic impact to include spearheading innovations in the global AI technology market, facilitating industry transitions through AI adoption, and enhancing the prevalence of AI-based services in daily life. Senior presidential secretary for science and technology, Park Sang-ook, underscored the multifaceted impact of AI, stating, “Given its profound social impact, addressing legal systems, policies, and ethical norms is crucial. However, it’s equally imperative to advance technological innovations, industrialization, and services in tandem to harness AI’s full potential.” The government sees AI technology as an opportunity to address structural challenges such as low growth and a declining birthrate in Korea. Through a joint study with Bain & Company, it is projected that the successful implementation of AI across the economy could yield an annual economic impact of 310 trillion won by 2026, with substantial revenue increases from AI-integrated products and significant cost reductions through enhanced efficiency and automation. Looking ahead, the ICT ministry plans to announce follow-up actions and agenda items following the council’s inaugural meeting, with the next strategic council meeting scheduled for June. This ongoing commitment underscores Korea’s ambition to become one of the top three AI nations globally by bolstering its competence in AI innovation.

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