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KUALA LUMPUR: Daythree Digital Bhd (DDB) posted a revenue of RM89.9 million for the financial year ended December 31, 2023 (FY23), marking a 38.1 per cent increase over FY22’s revenue of RM65.1 million. This growth is a testament to DDB’s strategic alignment with the surging demand in the global business services (GBS) industry. Net profit increased 22.6 per cent to RM7.6 million in FY23 from RM6.2 million in FY22. In January 2023, DDB received approval in principle from the Malaysian Investment Development Authority (MIDA) for the tax exemption of an additional five-year term to February 15, February 2027. This exemption, however, will only apply upon the gazetting of the relevant tax exemption provisions, and until that time, statutory taxation remains in effect. For FY23, DDB posted a profit before tax (PBT) of RM10.8 million. Excluding the one-off listing expenses of RM1.2 million, the adjusted PBT stood at RM12.0 million. This represents a significant increase from FY22’s PBT of RM9.5 million. The year-on-year (YoY) growth in PBT of 26.3 per cent underscores DDB’s focus on growth, exemplified by securing eight new brands and two new lines of business from an existing client during the financial year. DDB managing director Raymond Davadass said the company prioritises understanding its clients’ unique challenges and crafting tailored solutions to drive their success. “We believe that through our consultative approach, we will not only attract new partnerships but also offer long-term relationships built on mutual growth and prosperity,” he said in a statement. Raymond said as a technology-driven company, DDB remain committed to innovation, focusing on technologies into services to boost efficiency and reduce reliance on manual labour for low value tasks. “Our dedicated digital transformation team continues to seek new ways to streamline processes, eliminate waste, and enhance our clients’ value,” said Raymond. The company’s growth momentum is supported by Malaysia’s digital economy aspirations and the government’s supportive policies, which have fostered a conducive environment for the GBS sector. Malaysia’s appeal as a GBS destination is further enhanced by its cost-effectiveness and minimal natural disaster risks, providing a stable business platform. The company’s energy and utilities sector remains a significant contributor, with RM39.9 million in revenue, embodying the DDB’s diversified strength across various segments including RM16.9 million from fintech and financial services, RM15.0 million from telecommunications and media, RM9.2 million from e-commerce and retail, RM5.4 million from travel and hospitality and RM3.5 million from other sectors. With the global GBS industry on an upward trajectory, DDB is optimally positioned to capture this growth. The Malaysian GBS industry is expected to expand from RM24.8 billion in 2023 to RM31.7 billion by 2027, at a compounded annual growth rate (CAGR) of 6.3 per cent. This promising outlook is mirrored in DDB’s strategic investments and utilisation of the RM33.1 million raised from the successful listing on the ACE Market of Bursa Malaysia, with a balance of RM25.2 million earmarked for further business expansion. Further, RM0.6 million has been utilised to recruit experts in the industry, RM0.3 million for capital expenditure, RM3.3 million for working capital, RM3.7 million for listing expenses, and a maiden RM0.01 million deployed in branding, marketing and promotional activities. As of February 21, 2024, DDB’s share price stood at RM0.355, indicating a market capitalisation of RM170.4 million, reflecting investors’ confidence in the company’s strategic direction and future potential.

KUALA LUMPUR: RHB Investment Bank Bhd (RHBIB), a wholly-owned subsidiary of RHB Bank Bhd (RHB) disposed its entire equity interest in RHB Securities Vietnam Co Ltd (RHBSV) and exited Vietnam’s stockbroking and securities market. RHB Banking Group group managing director and group chief executive officer Mohd Rashid Mohamad said the decision by RHBIB to divest its equity interest in RHBSV to Public Bank Vietnam Ltd aligns with the banking group’s long-term strategic business direction of focusing resources and efforts on bolstering RHBIB’s operations in other markets. “We remain committed to ensuring a smooth transition process and will ensure that we continue to deliver service excellence to our clients throughout the transition period,” he said in a statement. RHBSV is a wholly-owned subsidiary of RHBIB and is licensed under the laws of Vietnam to engage in the business of securities brokerage, securities investment consultancy, securities custodian services and proprietary securities trading. The corporate exercise is targeted to be completed by the end of the second quarter (Q2) of 2024. The divestment of equity interest in RHBSV will not affect the issued share capital and substantial shareholders’ shareholdings of RHB Bank. Alongside the disposal of RHBSV, RHB Bank will close its Vietnam representative office. “As we embark on this new chapter, we look forward to leveraging our strengths and expertise to pursue other opportunities. “We remain steadfast in our mission to deliver innovative solutions and superior services that create sustainable value for our clients, employees, and shareholders,” Mohd Rashid said.

KUALA LUMPUR: Aluminium extruder company PA Resources Bhd’s (PRB) wholly-owned subsidiary, PA Extrusion (M) Sdn Bhd (PESB), has acquired two parcels of industrial land equivalent to 18 acres in Batang Berjuntai, Kuala Selangor for RM21 million. The two parcels of land, located near its existing factory, will be funded via internal generated funds and bank borrowings. The acquisition is expected to be completed within 6 months. Upon completion of the acquisition, PRB will build a new factory on the land, which will double its production capacity in phases, from 3,200 tons a month to approximately 7,000 tons. PRB group executive chairman Tan Sri Chan Kong Choy said this expansion plan fits the company’s long-term growth strategy. “With our new factory, we will be able to match the escalating demand from our solar renewable energy clients. “Additionally, this expanded capacity enables us to diversify both our product range and the markets we serve, hence providing the company with additional streams of income. “With these objectives in mind, we aim to expedite the land acquisition process and promptly initiate the construction of our new factory. “We are confident that this investment will not only boost our production capacity but also contribute to the economic growth of the nation. “This initiative also promises sustainable long-term employment opportunities and advancing socio-economic development within local communities in that region,” Chan said in a statement. “We are proud that the company is in a position to contribute to the growth of green energy by providing lightweight, durable components and cost-effective material for solar panels,” he added.

KUALA LUMPUR: Domestic banks’ net interest income (NII) for the fourth quarter (Q4) could be flattish, with the expansion in the loan base offset by net interest margin (NIM) pressure due to the seasonal competition for deposits and from the lagged impact of May’s overnight policy rate (OPR) increase. RHB Research said while some banks offered deposit rates of more than 4 per cent, this does not appear to have been a widespread practice, and the banks expect an easing in competitive pressure in the first quarter (Q1) of 2024. “On non-II, fees could stay healthy on strong loan- and card-related fees, but market-related (ie trading and investment)and foreign exchange (FX) income may be lumpy and harder to forecast. “The 10-year Malaysian Government Securities (MGS) yield contracted by 24bps quarter-on-quarter (QoQ), which should be positive for trading activities, even though some banks may be inclined to rebuild their bond portfolios or hold on to the higher yields,” the bank-backed research firm said in a note today. RHB Research also noted that the Q4 2023 banking sector’s profit before tax (PBT) could be muted QoQ due to NIM pressure, higher operation expenditure (opex) and credit cost, with markets-related non-II being a swing factor. “CIMB Group Holdings Bhd’s results maybe slightly ahead of our estimates on higher- and lower-than-expected non-II and credit cost QoQ, but Affin Bank Bhd’s numbers may miss projections on NIM pressure. “What is more pertinent is the outlook – positive guides on return on equities (ROEs) and capital management initiatives are likely to be well-rewarded by investors,” RHB Research noted. Further, RHB Research sees the domestic banking sector is likely to report higher opex and loan impairments QoQ – a reflection of seasonality (opex) and base effect (credit cost). Larger banks such as CIMB and Malayan Banking Bhd reported lower credit costs in the third quarter (Q3) due to writebacks and model changes, which may not recur this quarter. Also, there could be provision top-ups to lift coverage for CIMB and AMMB Holdings Bhd), RHB Research noted. “Generally, we do not expect adverse developments in asset quality, but we would be keen to hear more on the small and medium enterprises (SME) segment. “Hence, sector PBT could be muted QoQ but the profit after tax and minority interests (PATMI) trend could be boosted by AMMB, depending on the extent it utilises its tax credits,” RHB Research said. Maintaining a Neutral call on the sector, and with several banks approaching the tail-end of their mid-term plans, RHB Research thinks investors would be keen to hear more about what would be next in the upcoming and future briefings. “We see investors ending up with a spread of choices – banks that will be investing for growth, banks in a steady state, banks with room to further optimise their capital and balance sheets, and banks that could offer a combination of the above,” the research firm noted.

KUALA LUMPUR: National carrier Malaysia Airlines will be doubling the frequencies for its Trivandrum – Kuala Lumpur route following positive load factor performance and increasing demands starting 2 April 2024. This decision follows the recent increase in frequency between Amritsar and Kuala Lumpur from January 15, 2024. The airline commenced its inaugural flight to Trivandrum in November 2023, operating four flights weekly. With the amplification of Malaysia Airlines’ services from Trivandrum, this will bring the airline’s connectivity into India to 71 flights weekly. Currently, the airline offers flights from nine major hubs in India, including New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kochi, Ahmedabad, Amritsar and Trivandrum. Malaysia Aviation Group (MAG) chief commercial officer Dersenish Aresandiran said India remains an integral part of Malaysia Airlines’ global network. “With the introduction of the additional frequencies into Trivandrum, we will be strengthening our connectivity into India with 71 weekly flights from nine key hubs. “Furthermore, we are thrilled to introduce special fares for Indian travellers, providing them enhanced flexibility and travel options to explore the beauty of Malaysia, strengthening our position as the gateway to Asia and beyond. “As we aim to capture the growing demand from India, we are committed to ensuring that customer experience remains our top priority driven by our inimitable Malaysian Hospitality,” he said in a recent statement. Malaysia Airlines is offering special promotional fares for Indian travellers, particularly from Trivandrum and Ahmedabad from now until February 11, 2024, for travel up to May 12, 2024.

KUALA LUMPUR: While 2023 proved to be a successful year for the travel industry, particularly in Asia, the first month of the year has set a positive tone, suggesting that 2024 could be a great year for travel. In a recent presentation at the ASEAN Tourism Forum 2024 (ATF) in Laos, Agoda chief executive officer Omri Morgenshtern  expressed optimism about the prospects of the travel industry in 2024. He noted significant year-on-year growth, attributing it to Asia’s rapid recovery post-Covid. “Asia was last out, but fast out post-Covid, leading to the highest percentage of year-on-year growth across booking holding brands like Agoda,” Morgenshtern said. He pointed out the success stories of Japan gaining popularity as an international destination and South Korea and India emerging as outbound travel forces. Building on the positive momentum from 2023, Morgenshtern sees even greater potential for 2024. He emphasised the active involvement of markets spearheading tourism campaigns for the year and discussions surrounding how travellers are leveraging innovative technologies amid fewer travel restrictions. Morgenshtern outlined five trends that he predicts will shape the travel industry in 2024, reflecting the evolving landscape of travel and tourism. These are visa-free travels that are gathering pace, more impetus for connected travel bookings, greater assistance from artificial intelligence (AI), a further rise of business-to-business (B2B) loyalty programs and travel fintech making its mark. He said as the industry continues to recover, these trends are expected to play a pivotal role in shaping the way people travel and experience destinations in the coming year. In a bid to revitalise tourism and attract diverse travellers, destinations worldwide are adopting visa easements, sparking optimism for the travel industry in 2024. Notably, Malaysia’s recent removal of restrictions led to a four-fold increase in searches from India and China. Morgenshtern predicts a broader trend of relaxed visa requirements, envisioning visa-free access for Indian travellers to destinations like Thailand, Sri Lanka, and Malaysia. This strategic move aims to enhance global travel accessibility and boost inbound tourism. In simplifying travel planning, providers are integrating flights, hotels, experiences, and activities into a seamless booking experience. Recognising that 3 out of 4 travellers book tours and activities within a week of arrival, there’s a growing demand for convenient pre-booking options. Agoda encourages this trend by offering extra discounts when flights and accommodation are booked together. Morgenshtern envisions a user-friendly, one-stop solution for travel needs, from trip planning to the return journey. As travellers increasingly expect a unified interface, providers are urged to step up and offer a comprehensive ‘one-source’ travel concierge. This shift responds to a higher demand for flexibility and personalised, localised services, enhancing the overall travel experience. “Fueled by more frictionless visa experiences, travel continues to gain pace. “With technology playing an even bigger role in how people choose, book and pay for travel, 2024 promises to be a watershed year. “From fintech and AI innovations to connected booking experiences, Agoda is at the forefront of this incredible, transformative journey,” Morgenshtern said.  

KUALA LUMPUR: Global insurance brokerage Pacific Prime Malaysia recently acquired MIT Insurance Brokers Sdn Bhd, the country’s leading insurance brokerage firm specialising in risk management, insurance, and reinsurance. Pacific Prime’s merger with MIT Insurance simplifies broker unity, where insurance is streamlined, and client-centric in the face of evolving challenges. Among Pacific Prime’s fifteen offices around the globe, MIT Insurance Brokers will operate as part of Pacific Prime Consultants Malaysia, a fully licensed client service point that provides localised products as well as flexible benefits administration and servicing within the region. In the coming weeks, it is anticipated that MIT Insurance Brokers’ staff will continue their journey onboard the Pacific Prime flagship with the shared goal of simplifying insurance. Pacific Prime chief executive officer Neil Raymond said Malaysia is an exciting country for the company to expand its operations. “With the integration of MIT Insurance Brokers, we’ll bring together a team of established and experienced personnel to provide innovative and strategic solutions both within and outside of the region. “This is of utmost importance in light of the numerous global regulatory and technological changes taking place,” he said in a recent statement. MIT Insurance Brokers has been the leading property and casualty, financial lines, and employee benefits solutions since 1973. Previously under the ownership of the largest state development corporation in Malaysia, MIT Insurance Brokers has provided high-profile clients with retail brokerage and risk consulting services, overseeing the methodical execution of their insurance programs and arrangements to fit every unique requirement and risk profile. Pacific Prime Consultants Malaysia chief executive officer Cedric Deschamps said acquiring MIT Insurance Brokers will undoubtedly distinguish Pacific Prime from its competitors. “MIT Insurance Brokers’ current guiding principles—providing the most optimal solutions for their client’s unique requirements—are in perfect alignment with our own. “I am convinced that Pacific Prime’s global footprint, combined with MIT Insurance Brokers’ 50 years of expertise locally, will pave the way for the future—and here in Malaysia, we’re just getting started,” he said. MIT Insurance Brokers has a proven track record of formulating cost-efficient insurance solutions for medical institutions, food manufacturers, plantations, retail businesses, property developers, energy companies and so forth. The company’s versatility has positioned it to be one of the most technically capable and advanced insurance service providers in Malaysia. MIT Insurance Brokers director Shahrizal Shahruddin said this acquisition happens at an opportune time for the company to showcase its track record and capability. “MIT Insurance Brokers has been in the market for over 50 years, and I hope we carry on this momentum. “I look forward to seeing us deliver the best services to our clients in Malaysia, and most importantly, I’m delighted to be a part of Pacific Prime. Here’s to a wonderful year ahead for the insurance industry,” he said.

KUALA LUMPUR: FGV Holdings Bhd (FGV) recently launched its new Fract750 refinery plant at Kuantan Port, a strategic expansion into premium product offerings, such as high IV Olein (IV60-IV65) and hard stearin. Pahang EXCO of Investment, Industry, Science, Technology & Innovation Datuk Mohamad Nizar Datuk Sri Mohamad Najib said the new refinery not only allows FGV to explore new areas in specialty fat products but also contributes to the development of a specialised industry in Kuantan. “This not only diversifies the local economy but also positions Kuantan as a hub for innovative and premium fat products, potentially attracting further investment and business opportunities,” he said in a recent statement. He said the new facility is also a commitment to local economic growth. “Equipped with modern technology, the new plant will create job opportunities for local youth in Pahang. “The Pahang government welcomes new developments and investments that help to provide avenues for skilling and training in advanced sectors such as the palm oil and specialty fats industry,” he said. The new FRACT750 refinery is the first plant in the east coast region to feature the Desmet iConFract System, which incorporates a 30-bar filter press technology. The technology helps in enhancing efficiency, streamlining premium downstream product production, and enabling precise separation of various fractions during the refining process. FGV group chief executive officer Datuk Nazrul Mansor said the introduction of the new facility will strategically position FGV to serve emerging industries, with anticipated volume production of 150,000 MT per annum. “The inauguration of the new plant represents yet another strategic move for FGV, enhancing cost-efficiency by leveraging high free fatty acid (FFA) feedstock, a by-product of crude palm oil milling and refining to produce palm methyl ester (PME),” he said. FGV’s operations in Pahang stretch across 136,617 hectares of plantation estate, 28 mills, along with crushing, refining, fractionation and distillation plant, in addition to bulking and warehousing facilities, as well as a strategically positioned logistic depot. In 2023, FGV purchased and processed a total of 4.91 million metric tonnes (MT) of fresh fruit bunches (FFB) in Pahang worth RM3.75 billion, in which 66 per cent of FFB came from FELDA smallholders, while the remaining 34 per cent were purchased from independent smallholders. “As the world’s leading producer of crude palm oil (CPO), FGV continues to solidify its position.”With the establishment of this new plant, FGV will be able to produce premium palm olein and explore new markets, thus further strengthening FGV’s position as leader in the global palm oil market,” Nazrul said. Operated by its subsidiary, FGV Refineries Sdn Bhd, this plant plays a vital role in FGV’s business ecosystem, completing the supply chain. FGV remains committed to sustainability and responsible practices, ensuring a balanced and thriving future for both the industry and the communities it serves.

KUALA LUMPUR: Yayasan Peneraju Pendidikan Bumiputera (Yayasan Peneraju), a transformative agency in Bumiputera talent development, is shifting towards value creation following 12 years of wealth creation efforts. Chief executive officer Ibrahim Sani said the organisation is repurposing technical and vocational education and training (TVET) to concentrate more on specialist, technology, and business services sectors. He said the programmes offered were previously based on professions or jobs. However, the agency aims to shift from this old mindset and focus more on value creation. “Yayasan Peneraju’s new approach aims to foster three types of leaders – business, professional, and social. The ultimate goal is to address a more significant issue – the low participation and control of the Bumiputera economy,” he said in a recent statement. According to Ibrahim, the only way to address this problem is by re-skilling and up-skilling Bumiputera talents to meet the needs of both new and old sectors while acknowledging the imperative for agile responses to socio-economic challenges. “Energy transition, energy saving and food security are among the emerging sectors, while finance and business services are the old sectors,” he added. The government established Yayasan Peneraju to strengthen capacity-building towards the sustainability of Bumiputera talents. Its mandate is to improve the quality, quantity, and relevance of Bumiputera talents in line with the efforts to develop Malaysia into a high-income nation through structured academic, TVET, professional, technology, and specialist funding programmes. In a proactive bid to stay at the forefront of industry trends, Yayasan Peneraju is currently undergoing a comprehensive digitisation process. Harnessing the power of automation, artificial intelligence (AI) and analytics, the organisation aims to streamline its operations, ensuring an enriched experience with the involvement of its alumni. The agency will showcase its transformative journey in the upcoming rebranding initiative scheduled for April 18 with the minister of economy Rafizi Ramli, unveiling this rebranding, symbolising a visionary 10-year strategic direction for Yayasan Peneraju, and a dialogue session with Yayasan Peneraju’s beneficiaries.