News

MSM Malaysia Holdings Berhad (MSM), the producer of the national refined sugar brand Gula Prai, has expressed its appreciation to the Ministry of Finance for issuing a timely clarification regarding the implementation of the Sales and Services Tax (SST) on raw sugar imports. In a statement released today, the Ministry confirmed that while a five percent SST will apply to raw sugar—the primary input in refined sugar production—refined sugar manufacturers may apply for a tax exemption, subject to specific conditions. The clarification follows concerns raised by MSM during its Annual General Meeting, where the company highlighted the potential for significant cost pressures arising from the SST’s extension to raw sugar. MSM warned that an increase in input costs could influence the pricing structure of refined sugar, particularly for industrial consumers. MSM acknowledged the Ministry’s swift response and the clarity provided on the exemption mechanism, describing it as critical in the current economic environment. The retail price of sugar in Malaysia has been maintained at RM2.85 per kilogram since 2011, despite a consistent rise in global raw sugar prices over the years. “We are very grateful to the Ministry for its responsive and pragmatic approach in addressing industry concerns. The approval of the exemption application mechanism provides much-needed clarity and flexibility for sugar refiners like MSM. This allows us to proactively manage input costs and reduce immediate pressure on refined sugar prices, while continuing to fulfil our role in the country’s sugar supply chain under the existing retail pricing framework,” said MSM Group Chief Executive Officer, Syed Feizal Syed Mohammad. The group reaffirmed its commitment to collaborating closely with the government and stakeholders to ensure stability in both supply and pricing across the food industry. “While input cost management continues to be a priority, MSM would like to assure customers and partners that our focus on operational efficiency and fair pricing will continue. We are confident that the implementation of this exemption mechanism will have a positive impact in preserving the competitiveness of the country’s food manufacturing sector,” Syed Feizal added. -Berita Harian

Poh Huat Resources Holdings Bhd has reported a sharp decline in net profit for the second quarter ended 30 April 2025 (2QFY2025), citing softening demand from the United States and elevated input costs as key pressures on its earnings performance. The group posted a net profit of RM575,000 for the quarter, marking a significant 92.05% year-on-year drop from RM7.23 million recorded in the same period last year. This represents Poh Huat’s weakest quarterly result since the fourth quarter of FY2024, during which the company incurred a net loss of RM3.54 million. Revenue for the quarter declined by 9.24% to RM98.33 million, compared with RM108.35 million in 2QFY2024. The group attributed the contraction primarily to reduced orders of office furniture from its Malaysian operations. Management noted that several customers had front-loaded their purchases in the preceding financial period, driven by policy uncertainty following the re-election of Donald Trump as US president. Demand from the group’s Vietnam-based operations remained subdued as well. Shipments of home furniture were impacted by the imposition of new US import tariffs, prompting some American customers to delay their orders in April. Despite the challenging operating environment, Poh Huat declared a second interim dividend of two sen per share, payable on 24 July. This brings total dividends declared year-to-date to four sen per share. The group highlighted escalating raw material and labour costs as further pressure points, compounded by fixed factory overheads and lower capacity utilisation in both its Malaysian and Vietnamese production facilities. Gross profit margins were notably affected as a result. Foreign exchange movements also weighed on the company’s bottom line. Poh Huat recorded a forex loss of RM1.8 million for the quarter, contributing to a reduced net other income of RM700,000, compared with a forex gain of RM2.28 million and net other income of RM5.78 million in 2QFY2024. For the cumulative six-month period of FY2025, net profit declined by 42.65% to RM10.06 million, down from RM17.53 million in the corresponding period a year earlier. Revenue for the half-year stood at RM234.59 million, a slight decrease of 2.05% from RM239.49 million previously. Looking ahead, Poh Huat said it remains vigilant in monitoring developments in US trade policy, acknowledging that the industry continues to operate in a state of flux under the Trump administration. Shares in Poh Huat closed one sen or 0.93% lower at RM1.06 on Friday, valuing the company at RM295 million. The stock has declined 27% over the past twelve months. -The Edge

Maxim Global Bhd has lodged an appeal with the Court of Appeal in a bid to overturn a recent High Court decision that imposed a temporary stay on its high-rise residential project in Kuala Lumpur. In a statement filed on Friday, the property developer confirmed the stay relates to the development order granted by Kuala Lumpur City Hall (DBKL) in October 2017. The order permits the construction of five 30-storey residential blocks within the city. The stay was issued by the court pending the outcome of a judicial review initiated by a petitioner opposing DBKL’s approval. The petitioner argues that the development is inconsistent with both the Kuala Lumpur Structure Plan 2020 and the Kuala Lumpur City Plan 2020. Maxim stated that it was only made aware of the legal proceedings in August 2024 and subsequently sought to be included as a respondent in order to protect its commercial interests in the project. The group has now escalated the matter to the Court of Appeal, seeking to vacate the stay. Citing its legal counsel, Maxim expressed confidence in the likelihood of a favourable outcome. The company noted that the financial and operational impact of the stay remains indeterminate at this stage. “Until the status of the matter is clearer, the board is not in a position to determine the financial impact on the group,” it said. Shares in Maxim Global ended Friday’s trading down by half a sen, or 1.32%, at 37.5 sen. The company’s market capitalisation stood at RM275.73 million. -The Edge

Ecobuilt Holdings Bhd has announced the resignation of its Chief Executive Officer, Lim Chin Yen, after just four and a half months in the role. The construction group confirmed the departure in a filing with Bursa Malaysia, citing Lim’s intention to dedicate more time to family and personal interests. Lim, 48, officially stepped down on 20 June. He is succeeded by Fong Tuck Yong, 52, who brings over three decades of experience in managing and delivering construction projects. The leadership change comes as Ecobuilt continues to grapple with persistent financial losses. For the financial year ended 31 August 2024 (FY2024), the group reported a loss after tax of RM44.5 million. This compares to losses of RM31.1 million in FY2023 and RM13.6 million in FY2022. The latest annual result reflects a 15-month financial period, following a change in the company’s financial year-end from 31 May to 31 August. For its most recent quarter, the group remained in the red, posting a net loss of RM584,000 for the second quarter ended 28 February 2025 (2QFY2025), on revenue of RM15.48 million. Due to the adjusted financial year, no year-on-year comparative figure was provided. Ecobuilt stated that gross profit from ongoing projects was insufficient to cover operating expenses, which were primarily driven by depreciation and staff-related costs. Shares in Ecobuilt closed at three sen on Friday, up half a sen or 20%, giving the group a market capitalisation of RM13 million. Despite the short-term uptick, the stock has declined 54% over the past 12 months. -The Edge

KUALA LUMPUR: Gadang Holdings Bhd has announced that its wholly owned subsidiary, Gadang Engineering (M) Sdn Bhd, has been awarded a contract valued at RM92.5 million to undertake a portion of the Kuala Lumpur–Karak Highway widening project. According to a filing with Bursa Malaysia, the company received a letter of award from AFA Construction and Engineering Sdn Bhd for the execution of earthworks and related works under Package 2A of the highway upgrade. The scope of work covers the stretch between KM39.00 and KM61.50. The project is expected to span 18 months, with completion targeted for the fourth quarter of 2026. Gadang stated that the contract is anticipated to contribute positively to the Group’s earnings over the course of the contract period. -The Star