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Investment & Market Trends, News

Airbus, Positioned to Enhance Malaysia’s Defense Capabilities

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KUALA LUMPUR: Airbus Helicopters reaffirms its commitment to bolstering its current collaborations and network in Malaysia while striving to uphold its dominant position in the market. Addressing reporters at Airbus’ helicopter facility in Subang, Axel de Pascal, Managing Director of Airbus Helicopters Malaysia, emphasized the significance of Malaysia as a key market for the company. Airbus, the European helicopter manufacturer, aims to incrementally expand its market share over the next five years, particularly in the military sector. “We anticipate a rise in military requirements for specialized operations, search-and-rescue missions, and tactical transport within Malaysia and the surrounding region. Our combat-proven multi-role H225M is ideally suited to fulfill a wide spectrum of mission needs,” remarked De Pascal. The H225M is presently contracted by ten military forces globally, with over 170 units delivered, over 40 on order, and an additional 50 supporting governmental agencies in search and rescue missions. Four of these ten H225M military customers are situated in the Asia-Pacific region, including Malaysia. The extensive utilization of the H225M underscores its effectiveness as a force multiplier, enabling swift deployment in diverse weather conditions. Furthermore, numerous operators employ the versatile helicopter for various civil and parapublic missions. The Royal Malaysian Air Force (RMAF) presently operates 12 H225M helicopters from bases in Kuantan and Labuan. Tailored for the most demanding missions, these multi-role H225Ms have actively engaged in numerous military exercises and humanitarian missions over the past decade, including flood rescue operations, pandemic aid delivery, and life-saving missions. The RMAF’s H225M fleet has achieved global recognition as the highest military flyer per aircraft, accumulating over 30,000 flight hours to date. Under Budget 2024, the RMAF has been allocated funding to procure an additional 12 helicopters. Airbus stands ready to propose its H225M for consideration when the time arises. “Malaysia is already well acquainted with the capabilities of the H225M, and stands to benefit from a unified fleet with immediate operational readiness and reduced operational expenses,” added De Pascal. De Pascal reiterated that any expansion in military capabilities would inevitably lead to an expansion of the company’s existing partnerships and ecosystem. “We are confident that the additional H225M helicopters will complement the RMAF’s existing fleet. With an established ecosystem in place, the introduction of additional assets will significantly enhance the air force’s efficiency across all levels.” Airbus has continuously invested in modernizing the multi-role H225 workhorse to align with evolving mission requirements, elevating it to the highest safety standards and reducing its time to market. Recent investments have focused on upgrading the main gearbox, enhancing industrial processes, simplifying maintenance procedures, and improving cost-effectiveness. “With new infrastructural enhancements incorporated into the H225’s industrial process, production will extend beyond 2040, ensuring stability and sustained fleet support for decades to come.” “There are considerable opportunities for the H225M. Airbus is confident that this helicopter platform will become a vital enabler, complementing Malaysia’s existing fleet seamlessly.”

Energy & Technology, News

Straits’ Unit Fast-Tracks Energy Transition with First ISCC EU Certified Marine Biofuel Delivery in Malaysia

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KUALA LUMPUR: Today, Straits Energy Resources Berhad (“Straits” or the “Company”), a publicly listed entity on Bursa Malaysia, proudly announced a significant milestone. Its subsidiary, Tumpuan Megah Development Sdn Bhd (“Tumpuan Megah”), has achieved what is believed to be a groundbreaking feat: the successful delivery of the first-ever International Sustainability and Carbon Certification (“ISCC EU”) certified marine biofuel by a Malaysian supplier. In collaboration with Minerva Bunkering Pte Ltd, the world’s largest physical bunker supplier and a prominent international marine fuel provider, Tumpuan Megah supplied approximately 4,500 metric tonnes of ISCC EU-certified B24 marine biofuel to a containership operated by one of the world’s top three largest integrated logistics companies. This momentous bunkering operation took place on April 25, 2024, at the Port of Tanjung Pelepas in Johor state.   Dato’ Sri Ron Ho Kam Choy, Managing Director of Straits Energy Resources Berhad, expressed his enthusiasm, stating: “We are thrilled to announce the successful delivery of ISCC EU certified marine biofuel by Tumpuan Megah, in collaboration with Minerva Bunkering, at the Port of Tanjung Pelepas. This achievement marks a significant milestone as it represents the first delivery of certified sustainable marine biofuel by a Malaysian supplier. It underscores our unwavering commitment to facilitate the industry’s transition towards alternative fuels and mitigate its environmental impact.”   He further emphasized the potential of sustainable marine biofuels in substantially reducing carbon emissions and mitigating the overall carbon footprint of maritime operations. However, he stressed the importance of ensuring the sustainability of biofuels, highlighting the significance of ISCC EU certification in assuring feedstock sustainability, supply chain traceability, and verified emission reductions.   “As Malaysia’s inaugural ISCC EU-certified supplier and trader of maritime biofuels, and a prominent provider of quality bunker fuels in the nation, we are poised to play a pivotal role in driving the industry’s sustainable growth,” Dato’ Sri Ron Ho Kam Choy remarked. “As the demand for marine biofuels continues to surge, we anticipate this segment to significantly contribute to our future earnings growth.”   Tumpuan Megah primarily engages in ship-to-ship bunkering services and barging operations. In January 2024, Straits Energy Resources Berhad announced Tumpuan Megah’s pioneering achievement as the first Malaysian industry player to attain ISCC EU certification as a supplier and trader of biofuels, leading the charge in reducing shipping’s carbon footprint. This milestone also paved the way for Straits’ entry into the rapidly expanding marine biofuel trading and bunkering sector.   With ISCC EU certification, maritime industry stakeholders can demonstrate compliance with the sustainability and greenhouse gas emission reduction criteria outlined by the European Union (EU). This includes adherence to the EU Renewable Energy Directive (RED II), which establishes stringent guidelines for identifying sustainable biofuels. Notably, ISCC certification holds recognition in key energy markets such as the European Union, the United Kingdom, Japan, and Singapore.

Investment & Market Trends, News

CIMB Group Achieves Forward23+ Targets Amid Uncertainties

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KUALA LUMPUR: CIMB Group Holdings has achieved its Forward23+ targets despite external uncertainties, reaffirming its commitment to becoming the leading focused ASEAN bank. Speaking at the company’s 67th annual general meeting (AGM) virtually with shareholders, the group’s Chairman Datuk Mohd Nasir Ahmad said that with the varied challenges in the banking industry in 2023, CIMB marked an exciting phase as the Forward23+ strategic plan continued to gain strong momentum. “For the second consecutive year, we have achieved the top quartile within the global banking industry in the S&P Global Corporate Sustainability Assessment, achieving our Forward23+ targets 2 years ahead of the plan. “Among 400 international financial institutions, CIMB ranked 7th worldwide in the 2023 Financial System Benchmark. “These recognitions reinforce our ongoing sustainability agenda and leadership as we strive for sustainable growth to unlock new possibilities and opportunities into the future,” he said in a statement filed with Bursa Malaysia. Meanwhile, CIMB Group’s Chief Executive Officer Datuk Abdul Rahman Ahmad said the bank made significant progress under the Forward23+ strategic plan and is on track to deliver the targets across most profitability metrics set under the plan 4 years ago. “As we enter the final year of Forward23+, our focus is to enhance current account savings account (CASA) and deposit franchise with an emphasis on effective balance sheet management to improve net interest margin regionally. “Further, we intend to maintain non-interest income growth through wealth management and affluent segment, as well as to continue our cost discipline and improve asset quality to deliver our ambitious 2024 targets,” he added. CIMB Group saw continued positive momentum in the financial year ended 31 December 2023 (FY23), driven by strong underlying performance across all business segments and geographies. Over the past 2 years, the Group has achieved cumulatively RM86.2 billion of sustainable finance under the group’s Green, Social, Sustainable Impact Products and Services (GSSIPS) Framework, inching closer to its revised sustainable finance target of RM100 billion by 2024, tripled from the initial target of RM30 billion announced in 2021. — BERNAMA

Investment & Market Trends, News

MKH Oil Palm Berhad Makes Successful Main Market Debut

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KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Berhad, known as MKHOP, has successfully entered the Main Market of Bursa Malaysia Securities Berhad. The company’s stock, categorized under the plantation sector, is listed as MKHOP with the stock code 5319. Its initial share price opened at 63 sen, reflecting a 1.6% premium over the issue price of 62 sen, with an initial trading volume of 12,134,600 shares. Tan Sri Dato’ Chen Kooi Chiew, the Non-Independent Non-Executive Chairman of MKHOP, highlighted the significance of this milestone, emphasizing the company’s commitment to long-term growth. With proceeds of RM136.4 million from the IPO, MKHOP plans to expand its plantation estates, enhance operational efficiency, diversify product offerings, and invest in sustainability initiatives, including improving living conditions for its workforce and reducing reliance on diesel generators.   Given the current El Nino dry weather conditions affecting global CPO supply and supporting CPO prices, MKHOP is focusing on improving production efficiency to capitalize on favorable market conditions. The company expresses confidence in the long-term growth prospects of the oil palm industry, driven by global population growth and increasing demand for edible oils and fats.   MKHOP’s financial performance for the first six months of 2024 remained robust, with a net profit of RM26.5 million and revenue of RM168.4 million. The company also maintained healthy cash and bank balances of RM89.6 million as of March 31, 2024.   M & A Securities Sdn Bhd acted as the Adviser, Managing Underwriter, Joint Underwriter, and Joint Placement Agent for the IPO, with Kenanga Investment Bank Berhad and AmInvestment Bank Berhad serving as Joint Underwriter, Joint Placement Agent, and Joint Placement Agent, respectively.

Investment & Market Trends, News

Farm Price Holdings Berhad’s 85.4% Potential Upside

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With two decades of unwavering commitment to wholesale fresh vegetable distribution, Farm Price Holdings Bhd (FPHB) stands as a pillar of reliability in the staple food industry. Positioned within the crucial narrative of food security, analysts anticipate FPHB to ride the wave of growth in the Johor-Singapore corridor. Projections for FY24-25f showcase robust bottom-line growth of 16.6-25.1%, reaching RM10.1-12.7 million, buoyed by strategic operational expansions to meet escalating customer demands. Analysts have assigned a fair value of RM0.445 for FPHB, underpinned by a forward P/E of 15.7x aligned with peers in the Packaged Foods sub-industry. Addressing current capacity constraints, FPHB is swiftly adapting to surging demand, evident in its cold room facilities operating at over 95% capacity. Short-term measures, including increased processing shifts and flexible infrastructure utilization, will ensure timely delivery of fresh produce, translating into significant top and bottom-line growth. Expansion initiatives for exponential growth include the utilization of IPO proceeds to expand SCDC, augmenting floor space by 90% by FY26. This strategic move will bolster operational efficiency, adding 54k sqft to operational areas, enhancing cold room capacity by 35%, and accommodating up to 40k pallets annually, laying a robust foundation for sustained growth. Despite challenges in FY20-22, including margin pressure due to fixed pricing contracts amidst rising vegetable costs, FPHB anticipates stable margins akin to FY23 levels, with an optimistic outlook for normalized pricing dynamics. Leveraging its track record, FPHB enjoys a competitive edge in securing new customers, particularly in Singapore. Operating from Malaysia, FPHB leverages lower production costs and SCDC’s strategic location to ensure freshness and prompt delivery, outshining its Singaporean counterparts. Ongoing discussions with potential clients underscore FPHB’s prowess in leveraging its reputation and competitive advantages for continued market penetration in Singapore. In essence, FPHB’s journey as a staple food provider epitomizes resilience and growth potential, poised to capitalize on emerging opportunities and fortify its position in the dynamic food distribution landscape.

Investment & Market Trends, News

Kawan Renergy Berhad Set to Raise RM33.0 Million in IPO En Route to ACE Market Listing

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KUALA LUMPUR: Engineering solutions provider Kawan Renergy Berhad has announced the successful launch of its prospectus, marking a significant step towards its upcoming initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia Securities Berhad. Kawan Renergy Group, comprising subsidiaries Kawan Engineering Sdn Bhd and Kawan Green Energy Sdn Bhd, specializes in designing, fabricating, installing, and commissioning industrial process equipment, process plants, and renewable energy and co-generation plants. Their solutions cater to diverse industries such as food processing, oleochemical and chemical processing, oil and gas, waste recovery, power plant, and utilities. Additionally, the Group is engaged in power generation and the sale of electricity.   Managing Director Ir. Lim Thou Lai noted that the prospectus launch is a significant milestone for Kawan Renergy as it progresses towards becoming a publicly listed entity. The IPO is integral to their long-term growth strategy, facilitating additional funding to support ongoing and future projects, and expand their power generation and electricity sales segment.   Based on an Independent Market Research Report by Smith Zander International Sdn Bhd, Malaysia’s industrial process equipment industry saw substantial growth from RM15.6 billion in 2020 to RM23.5 billion in 2023, with a compound annual growth rate (CAGR) of 14.6%. With increasing foreign direct investment (FDI) inflows, industries like power generation, oil and gas, and manufacturing are expected to expand, benefiting the industrial process equipment sector. The Group is optimistic about the industry’s prospects.   Ir. Lim outlined the Group’s plans for the IPO proceeds, which include allocating a significant portion towards supplementing working capital for ongoing and future co-generation plant projects. Additionally, investments are earmarked for constructing a new biomass power plant and enhancing the production output of the Bercham Plant, a landfill biogas power plant. A portion of the proceeds will also go towards repaying bank borrowings and defraying listing expenses.   Mr. Gary Ting, Head of Corporate Finance at M & A Securities Sdn Bhd, expressed confidence in Kawan Renergy’s capability to expand its market share with the successful listing. He highlighted the potential benefits of the listing, including enhancing the Group’s reputation, expanding visibility, and attracting talent.   The IPO exercise comprises a public issuance of new ordinary shares, representing 20.0% of its enlarged share capital, as well as an offer for sale of existing shares. A portion of the new shares will be available to the Malaysian public via balloting, with allocations for eligible Directors, employees, and contributors to the group’s success. Selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry will also have access to a portion of the shares.   Upon listing, Kawan Renergy’s market capitalization is estimated to be approximately RM165.0 million, based on the IPO price of RM0.30 per share and its enlarged issued shares. The Group has demonstrated robust financial performance, with revenue and net profit experiencing significant growth over the past three years.   Applications for the public issue are currently open and will close on 14 May 2024, with the Group scheduled to be listed on the ACE Market of Bursa Securities on 29 May 2024. M & A Securities Sdn Bhd is serving as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO exercise.

News

SC Partners IsDB to Advance Islamic Capital Market, Social Finance

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RIYADH: The Securities Commission Malaysia (SC) has inked a Memorandum of Understanding (MOU) with the Islamic Development Bank (IsDB) Group, setting the stage for enhanced collaboration in the Islamic capital market (ICM) and expanding the scope of Islamic fintech and social finance, with a particular focus on waqf. The signing ceremony of this groundbreaking MOU was witnessed by the Honorable Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim, and the President and Chairman of IsDB, His Excellency Dr. Muhammad Al Jasser. This marks the inaugural agreement of its kind between Malaysia’s capital market regulator and the foremost multilateral development bank of the Global South.   Dato’ Seri Dr. Awang Adek Hussin, Chairman of SC, and Dr. Zamir Iqbal, Vice President of Finance and Chief Financial Officer of IsDB, sealed the MOU on the sidelines of the IsDB Annual General Meeting 2024 in Riyadh.   The genesis of this collaboration traces back to a meeting in March 2023 between Dato’ Seri Anwar and H.E. Dr. Muhammad Al Jasser, where they laid the groundwork for Malaysian regulators, authorities, and businesses to collaborate closely with IsDB. The envisioned areas of cooperation encompass the development and pilot testing of innovative Islamic finance products, bolstering the halal industry, and fostering support for micro, small, and medium enterprises (MSMEs).   Outlined within the MOU are several key areas of collaboration, including the facilitation of innovation in Islamic fintech, the promotion of Islamic social finance, and the encouragement of investment inflows, among others. Capacity building, knowledge sharing, and joint technical projects pertaining to ICM are also on the agenda, with the potential for mutual benefit to other IsDB member countries.   Dato’ Seri Dr. Awang Adek expressed optimism about the synergistic collaboration, heralding it as a historic milestone for both SC and IsDB. He emphasized the intent to expand Islamic fintech and explore new markets while seizing opportunities in social finance, particularly in waqf asset development, leveraging their respective expertise in capital markets and financial development.   Dr. Muhammad Al Jasser highlighted the MOU’s significance in enhancing Islamic fintech, social finance, and attracting foreign investment in private markets. This partnership, he stressed, will not only bolster Islamic capital markets in Malaysia but also across IsDB Member Countries, with a priority focus on supporting MSMEs and private markets for economic empowerment.   Aligning with the Capital Market Master Plan 3 (2021 – 2025), the MOU reflects strategic initiatives for the Malaysian ICM, including broadening its outreach to the broader economy’s stakeholders and fostering collaboration and innovation for sustainable growth.   In furtherance of these objectives, the SC, along with its affiliate Capital Markets Malaysia, has engaged with stakeholders in Abu Dhabi, Dubai, and Riyadh, advocating for the impact of ICM and bolstering Malaysia’s global thought leadership. Sharifatul Hanizah Said Ali, Executive Director of Islamic Capital Market at SC, has underscored the potential of ICM in structuring innovative financing instruments to advance social impact investing, sukuk issuances, and Islamic asset management.   In 2023, the Malaysian ICM witnessed a growth of 4.5% to RM2.4 trillion, with sukuk outstanding increasing by 7.4% and Shariah-compliant equities by 1.5%. Malaysia’s leadership in ICM, particularly in sukuk outstanding and Islamic fund management, has been consistently recognized in global indices, including the Islamic Fintech Index, the Global Islamic Economy Indicator, and the global Islamic Finance Development Indicator, for the past decade.

Investment & Market Trends, News

Malaysia-China Trade Strengthens 3.3%, Reaching RM112 Billion

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KUALA LUMPUR: Malaysia’s total trade with China increased 3.3% year-on-year to over RM112 billion in the first quarter of this year, according to the Malaysia External Trade Development Corporation (MATRADE). Chairman Datuk Seri Reezal Merican Naina Merican said during the period, Malaysia recorded RM44.5 billion worth of exports to China with electrical and electronics (E&E) products being the biggest exports. In his keynote speech during the 21st China-ASEAN Expo (CAEXPO) promotional conference, Reezal said that E&E products made up 32.6% of the country’s total exports to the world’s second-largest economy. Meanwhile, imports were valued at RM67.78 billion comprising intermediate goods meant for the manufacture of products for exports such as E&E products, machinery, equipment and parts as well as chemicals and chemical products. Reezal said that China remained Malaysia’s largest trading partner and primary source for imports last year, while Malaysia was China’s 10 largest global trading partner as well as the second largest trading partner within ASEAN. On CAEXPO 2024, he said that MATRADE is targeting 150 Malaysian companies to join the event, which will be held from 24-28 September this year in Nanning, China. “This year would be special for Malaysia, as we have been invited to be the country of honour and the Malaysian Pavilion will be given special highlights. We will have a significantly larger pavilion to provide ample space for Malaysian companies to showcase a wider range of offerings,” Reezal announced, highlighting that the CAEXPO is a golden opportunity for Malaysian companies to tap into the China market. Last year, the Malaysia Pavilion – officiated by Prime Minister Datuk Seri Anwar Ibrahim – recorded a total sales of RM625.42 million and saw seven memoranda of understanding signed for further potential sales. — BERNAMA

News

QSR Brands to Temporarily Close Over 100 KFC Outlets Due to Challenging Conditions

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KUALA LUMPUR: QSR Brands (M) Holdings Bhd, the franchisee of KFC restaurants in Malaysia, has taken proactive measures to temporarily close over 100 outlets out of 770 KFC Malaysia outlets as a means to manage increasing business costs and focus on high engagement trade zones in response to challenging economic conditions. In a statement today, QSR Brands said employees from the affected stores were offered the opportunity to relocate to operating stores as part of a tactical strategy to optimise resources in trade zones with higher customer engagement. The company said that contributing positively to the Malaysian community, preserving the brand love for KFC and protecting its employees are all priorities for the organisation. “Employees from affected outlets were offered the opportunity to relocate to busier operating stores as part of the company’s re-optimisation efforts. “As a company that has been serving Malaysians for over 50 years, the focus remains on providing quality products and services to customers, while contributing positively to the Malaysian economy through job security for 18,000 team members in Malaysia, of which 85 per cent are Muslims,” it said. QSR Brands said it continues to be among the largest taxpayers in Malaysia and takes pride in being able to give back to the community through KFC Add Hope and the Wakalah Zakat Fund. “We believe people will acknowledge our Malaysian roots, our sincerity and our hard work in contributing to the Malaysian ecosystem,” it added – BERNAMA

News

Iconic Worldwide Announces New Controlling Shareholder & Major Group Strategy Update

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PENANG: Iconic Worldwide Berhad (“Iconic Worldwide” or “the Group”), a prominent player in tourism, property development, and personal protective equipment manufacturing, is undergoing a transformative phase with Dato’ Seri Tan Kean Tet emerging as the new controlling shareholder and Executive Chairman. This pivotal change heralds a strategic shift aimed at maximizing the potential of the Group’s property development and hospitality management arms. Following a highly successful corporate manoeuvre that raised RM95.6 million through a rights issue oversubscription, Dato’ Seri Tan Kean Tet’s stake in Iconic Worldwide has surged to 36.59%. As per Bursa Malaysia’s regulations, this positions him as the controlling shareholder, steering the Group into a new era of growth and innovation. Expressing optimism about the prospects in Penang’s real estate and hospitality sectors, Dato’ Seri Tan Kean Tet outlined a vision for ambitious ventures in both domains. The Group is initiating discussions with potential collaborators for large-scale township and industrial projects across Malaysia, capitalizing on the nation’s allure for foreign and domestic investments. In parallel, Iconic Worldwide is exploring substantial hospitality ventures, including resorts, villas, and theme parks, to augment Penang’s status as a premier tourist destination. Anticipating a surge in tourism fuelled by initiatives like visa-free travel for Chinese and Indian tourists and the expansion of Penang International Airport, Dato’ Seri Tan Kean Tet underscores the strategic significance of these developments. In a strategic move to fortify its presence in the hospitality sector, Iconic Worldwide is set to manage Iconic Regency, a towering, serviced apartment complex in Sungai Nibong. Comprising 268 lavish units, this venture, adjacent to the esteemed Iconic Marjorie hotel, promises to elevate the Group’s hospitality portfolio. Furthermore, the recent soft launch of Iconic Harmony in Bukit Mertajam garnered remarkable success, with a staggering 70% take-up rate within two days. This milestone underscores the Group’s trajectory towards profitability by FY25, propelled by strategic residential and commercial developments. In a bold move reflecting confidence in Penang’s real estate market, Iconic Worldwide has allocated a significant portion of its recent capital raise to acquire a prime parcel of land in Paya Terubong. The Group intends to propose a residential development project to the Penang state authorities, with a projected GDV exceeding RM300 million, showcasing its commitment to pioneering ventures in the region. Iconic Worldwide’s strategic recalibration under Dato’ Seri Tan Kean Tet’s leadership marks a defining moment in its journey, promising innovative ventures and sustainable growth in the dynamic realms of property development and hospitality management.

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