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investment

Microsoft chief executive officer, Satya Nadella
Investment & Market Trends, News

Microsoft Plans to Invest US$1.7 Bil in Indonesia

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JAKARTA: In a significant move, US tech titan Microsoft has declared a substantial investment in Indonesia during the visit of its CEO to Jakarta for discussions with governmental representatives. The company has revealed plans to inject a hefty sum of US$1.7 billion over the next four years into the country’s infrastructure for cloud computing and artificial intelligence (AI), alongside initiatives to provide AI training for 840,000 individuals and bolster support for the burgeoning developer community. Highlighting the importance of this investment, Communications and Information Minister Budi Arie Setiadi emphasized its crucial role in Indonesia’s digital progress. He remarked that Microsoft’s commitment signals recognition of Indonesia’s significance within the global digital landscape. The establishment of a research and development center, slated for either Bali or the new capital city being developed in Kalimantan, aims to cultivate AI expertise within the nation. Minister Setiadi underscored the transformative potential of AI technology in enhancing productivity across various sectors, including agriculture and fisheries, thereby driving economic growth. Microsoft’s projections suggest Indonesia’s leading role in AI’s contribution to the national GDP by 2030 within the Southeast Asian region, contingent upon overcoming challenges such as digital proficiency gaps and data governance issues. Microsoft’s CEO, Satya Nadella, reiterated the company’s commitment to empowering individuals and organizations in Indonesia to leverage the upcoming AI advancements. Nadella announced ambitious training targets, aiming to equip 2.5 million individuals across the ASEAN region by 2025, with a significant portion allocated to Indonesia. This investment represents a milestone in Microsoft’s nearly three-decade presence in the country, marking a significant step towards fostering digital innovation and economic growth.

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.”

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

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

Investment & Market Trends, News

Meta Bright Obtains RM28Mil in Funding from AmBank to Fuel Strategic Growth

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KUALA LUMPUR: Meta Bright Group Bhd’s (MBGB) wholly-owned Australian subsidiary, Meta Bright Sdn Bhd, has secured financing facilities totalling RM28 million from AmBank (M) Bhd, expanding MBGB’s business operations and solidifies its relationship with the bank. In addition, this initiative is a testament to MBGB’s capability to secure significant banking support within just two years, reflecting the company’s successful turnaround and robust growth trajectory. This financing aligns with MGBG’s ambitious growth strategy, particularly in enhancing its capabilities within the equipment leasing sector linked to its recent expansion into Australia. The funds will be used to buy equipment for Meta Bright Australia Pty Ltd, which has just signed its third lease agreement with Mt Cuthbert Resources Pty Ltd (MCR). This agreement is expected to strengthen MBGB’s position in the global market and provide a consistent monthly income of approximately AUD$222,950 (about RM691,657.78). MBGB executive director of corporate and strategic planning Derek Phang Kiew Lim said obtaining these facilities from AmBank within such a short period is not only a milestone for the company but also a strong endorsement of its business model and strategic direction. “This financial partnership is pivotal as it supports our next phase of growth and strengthens our relationship with AmBank, setting a solid foundation for future collaborative opportunities,” he said in statement. The funding facilities include term loan 1 amounting to RM25.5 million, allocated for the purchase of plant and machinery to enhance operational capabilities. Term loan 2 amounting to RM3 million, designed to finance life insurance premiums for the company’s directors, safeguarding corporate governance and leadership continuity. Further, Ambank’s uncommitted foreign exchange contract facilities is to facilitate efficient international currency transactions, supporting MBGB’s global operations. “Through this strategic financial support, MBGB is set to significantly boost its capacity to manage large-scale projects and enhance its offerings in the highly competitive mining equipment leasing market. “We are particularly focused on our operations in Australia, where we see great potential due to the robust growth of the mining sector,” Phang said.

Investment & Market Trends, News

TTM Technologies’ First Manufacturing Facility Opens in Penang

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PENANG: TTM Technologies, Inc. (NASDAQ: TTMI), a leading global provider of technology solutions encompassing mission systems, radio frequency (“RF”) components, RF microwave/microelectronic assemblies, and advanced printed circuit boards (“PCBs”), has officially inaugurated its inaugural manufacturing facility in Penang, Malaysia. With an investment totaling USD 200 million (approximately RM 958 million), the new plant signifies a strategic move to enhance the resilience of the printed circuit board supply chain and to broaden geographic operational scope. Situated across 27 acres within the Penang Science Park, the cutting-edge facility boasts highly innovative and automated PCB manufacturing capabilities. This development is a collaborative effort between TTM and its clientele, aimed at meeting the escalating demand for diversified manufacturing locations and fortified PCB supply chains. Tailored to support mass production needs across diverse commercial sectors such as networking, data center computing, medical, industrial, and instrumentation, the facility signifies a pivotal step in addressing industry requirements. YAB Tuan Chow Kon Yeow, Chief Minister of Penang, remarked, “Penang takes great pride in hosting TTM’s maiden large-scale, highly automated, and innovative PCB manufacturing plant in Southeast Asia. This choice underscores the confidence foreign investors place in Penang. Renowned for its robust industrial ecosystem, Penang is well-equipped to cater to the evolving needs of industrial players in cutting-edge technologies and growth strategies. I am optimistic about the manifold benefits TTM will derive from its Penang operations, solidifying Penang’s status as the Silicon Valley of the East.” The opening ceremony, attended by dignitaries including YAB Tuan Chow Kon Yeow, Pn. Najihah Abas of Malaysian Investment Development Authority (“MIDA”), YBhg. Dato’ Loo Lee Lian of InvestPenang, Mr. Thomas Edman, President and CEO of TTM Technologies, Inc., Mr. Philip Titterton, Executive Vice President and COO of TTM Technologies, Inc., along with senior government officials and TTM’s management, marked the inauguration of TTM’s Penang facility. The establishment of TTM’s Penang plant is projected to create approximately 1,000 employment opportunities across various sectors by 2025. Furthermore, it will foster growth opportunities for local suppliers and enhance the skills of local technical talent in advanced PCB technology solutions. TTM anticipates achieving full run rate revenue of around USD 180 million (approximately RM 855 million) by 2025, with provisions for a Phase 2 expansion, potentially resulting in a 25% capacity increase. Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, emphasized the substantial benefits of TTM Technologies’ investment for Malaysia’s electrical and electronics (“E&E”) industry, particularly within the semiconductor sector. The inauguration of TTM’s advanced facility in Penang not only reinforces Malaysia’s E&E industry but also enhances its capabilities in next-generation PCB manufacturing, aligning with the objectives of the New Industrial Master Plan (“NIMP”) 2030. Mr. Thomas Edman, President and CEO of TTM Technologies, expressed his enthusiasm for the opening of the flagship Penang plant, highlighting TTM’s commitment to delivering innovative technology solutions globally. He emphasized the significance of Penang’s industrial ecosystem, talent pool, and conducive business environment in making it an ideal location for TTM’s expansion. In addition to meeting industry demands, TTM remains dedicated to safeguarding its employees, community, customers, and the environment. The new facility is designed to minimize energy and water consumption, reducing its carbon footprint by 60% compared to traditional PCB plants, while adhering to stringent environmental standards.

News, Property

Serenia City’s First Commercial Hub ‘The Corak’ Reflects Sime Darby Property Allure with 100% Take-up Rate

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ARA DAMANSARA: Sime Darby Property Berhad (“Sime Darby Property” or “Company”) celebrates a stellar 100% take-up rate for The Corak, a commercial space nestled within the vibrant Serenia City. Retail owners and smart investors jumped at the opportunity to be part of the township’s first freehold commercial hub scheduled for completion in 2027. Slated to become Serenia City’s maiden hangout spot, The Corak boasts a Gross Development Value (“GDV”) of RM186 million and is expected to elevate the township to become livelier and more convenient for its residents. In addition, the business hub is also projected to create ample job opportunities, contributing to the socio-economic developments of Serenia City. The Corak is in the heart of Serenia City, fronting the 32-acre Serenia City Central Park. The development offers 98 units of 2-storey shop offices and one drive-thru with built-ups spanning from 3,358 sq. ft. to 5,233 sq. ft. and selling prices ranging from RM1.7 million to RM3.3 million. It features a modern design with strategic signage placements, tall windows for cafe spaces, wide walkways for al-fresco dining, high ceilings for an inviting atmosphere, and 830 parking bays for patrons’ convenience. Sime Darby Property’s Chief Marketing and Sales Officer, Datuk Lai Shu Wei said that The Corak is designed to reshape the business landscape in Serenia City by providing retailers with efficient, tailored environments that directly support their business objectives. “The robust take-up rate reflects retailers’ confidence in Sime Darby Property, underscoring The Corak’s appeal as a prime destination catering to the needs of a growing cityscape,” he said. Datuk Lai added: “The business community trusts our dedication to creating a space specifically designed to meet their evolving needs. This commitment seamlessly aligns with Company’s Purpose to be a Value Multiplier for People, Businesses, Economies, and the Planet, and cultivating vibrant and enduring communities for generations.” Leveraging the business hub’s appeal to a dynamic demographic, business owners at The Corak can benefit from the population catchment of up to 500,000 within a 20-minute drive. The Corak is also conveniently located along Serenia City’s main road with three distributed access points for easy connectivity and can be reached via ELITE Highway, North-South Expressway (“NSE”) and Maju Expressway (“MEX”). For more information, please visit https://www.simedarbyproperty.com/serenia-city/the-corak/ or drop by Serenia City Sales Gallery.

Investment & Market Trends, News

GFM Services Successfully Transfers to the Main Market of Bursa Securities

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KUALA LUMPUR: GFM Services Berhad (“GFM” or “the Group”), a provider of Integrated Facilities Management services, has announced the completion of the transfer of its entire issued share capital from the ACE Market to the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). This transfer involves the listing and quotation of the Group’s total issued share capital, amounting to 759,508,350 shares in GFM. Encik Ruslan Bin Nordin, the Group Managing Director of GFM, expressed his satisfaction with the successful migration to Bursa Securities’ Main Market. He emphasized that this achievement signifies a significant milestone for GFM, reflecting its financial strength and stability, meeting the transfer criteria related to profitability, financial position, and liquidity. Nordin highlighted that being listed on the Main Market will enhance access to capital markets, especially institutional funds, and boost credibility among investors, aligning with the Group’s current scale of operations. Nordin outlined the Group’s future growth strategies, focusing on expanding its presence in the Oil and Gas facilities maintenance sector, Highway Rest and Service Areas (RSA), and exploring opportunities in the Workforce Lodging segment to address the increasing demand for proper workers’ accommodation. He expressed confidence that the transfer to the Main Market will facilitate the realization of these expansion plans. Nordin expressed gratitude to investors, customers, and business partners for their support, and recognized the contribution of GFM team members to the Group’s success. To summarize, GFM achieved its highest-ever revenue of RM145.0 million and net profit of RM27.4 million for FY2023, driven primarily by increased contributions from its Oil and Gas and Concession Arrangements divisions.

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