Malaysia

Duopharma Biotech Bhd is set to leverage increased manufacturing capacity following the commissioning of its new K3 facility in Klang, with analysts projecting full utilisation within the next three years. The new facility has boosted Duopharma’s overall manufacturing capacity by approximately 50%. TA Research reported that management has successfully relocated 90% of production from the legacy K1 plant, originally constructed in the 1980s, to the newly operational K3 site. Current utilisation levels at K3 have already surpassed expectations, primarily supported by the influx of new contracts. The facility is expected to play a central role in meeting growing demand for Duopharma’s pharmaceutical products. In addition to the K3 development, Duopharma is also advancing plans to expand its small volume injectables line at the K2 plant. The company has further outlined its intention to develop a new biological manufacturing facility at the upcoming K5 site in the coming years, signalling a strategic shift towards higher-value product segments. This phased expansion underscores Duopharma’s long-term commitment to increasing its production capabilities and strengthening its position within the pharmaceutical industry. -The Star

Tenaga Nasional Bhd is facing a substantial tax liability of RM5.05 billion after the Federal Court ruled it is not entitled to claim the reinvestment allowance (RIA), a tax incentive designated for manufacturing entities. The court’s decision, which overturns previous rulings in favour of the utility company, aligns with the position taken by the Inland Revenue Board (IRB). According to Tenaga’s 2024 annual report, the apex court determined that the company, as a utility provider, does not qualify as a manufacturer and should have pursued the investment tax allowance (ITA) under Schedule 7B of the Income Tax Act, rather than RIA under Schedule 7A. The case centred on a RM1.25 billion tax assessment for 2018. Tenaga has indicated that it will now seek to claim ITA under the appropriate provision. However, the company cautioned that the ruling could have material implications for its financial performance and net assets in the 2025 financial year. The tax dispute dates back to 2015, with the IRB having issued RM9.25 billion in additional tax assessments covering the financial years from 2013 to 2021. Following the waiver of RM2.44 billion in penalties through prior settlements, Tenaga’s potential outstanding liability was reduced to RM6.81 billion. A payment of RM1.76 billion was made in December 2020, leaving a remaining exposure of RM5.05 billion. Despite the legal challenges, Tenaga continued to claim the RIA for the years 2022 and 2023 and had intended to do so for 2024, in accordance with prevailing tax legislation. The court’s decision weighed heavily on investor sentiment. Tenaga’s share price declined by as much as 74 sen on Thursday, closing at RM14.02 — its lowest level since early June — and erasing more than RM3 billion in market capitalisation. Trading activity surged to more than four times the 20-day average. Analysts have highlighted the potential risks of significant provisions and broader implications for other pending cases. Nevertheless, sentiment around the stock remains broadly favourable, with 19 “buy” recommendations, four “hold” ratings, and no “sell” calls, according to Bloomberg. Year-to-date, the stock is down approximately 6%, with a 12-month target price of RM16.28, implying a potential upside of 16%. CIMB Securities noted that if Tenaga is required to fully absorb the RM5.05 billion tax charge, its target price could be revised downwards by 87 sen, or 5.5%. However, should Tenaga successfully claim ITA moving forward, the impact on core earnings could be mitigated. While the tax charge may offset the forecasted FY2025 net profit of RM3.78 billion, it is expected to be a non-recurring event. Tenaga delivered strong results in FY2024, posting a 69.3% year-on-year increase in net profit to RM4.69 billion, the highest since FY2018. This performance was underpinned by foreign exchange gains and higher electricity sales. Annual revenue rose 6.9% to RM56.74 billion. For the first quarter of FY2025, Tenaga reported a net profit of RM1.1 billion, representing a 48% increase compared to the same period last year, despite being partially impacted by elevated tax expenses. Quarterly revenue rose 17.6% year-on-year to RM16 billion. As of the end of March, Tenaga reported RM16.8 billion in cash and RM7.05 billion in receivables, deposits and prepayments. -The Edge

The High Court (Insolvency Division) has officially declared fashion designer Datuk Jovian Mandagie bankrupt after he failed to settle a RM5.28 million debt owed to engineering and construction firm Cekap Air Sdn Bhd. The ruling was delivered by Senior Assistant Registrar Muhammad Faisal Zulkifli following the approval of a creditor’s petition filed on 20 November 2023. The petition alleged that Jovian, a former son-in-law of ex-prime minister Datuk Seri Ismail Sabri Yaakob, had committed an act of bankruptcy by not complying with a bankruptcy notice issued on 21 May 2023. The total outstanding amount of RM5,284,340.66, inclusive of interest as of 21 May 2023, stems from a summary judgment issued by the High Court on 2 April 2023. The ruling compelled Jovian to repay the loan, which the court found to be enforceable under civil procedures. Legal counsel for Cekap Air, Siti Nur Athirazatti Rohizad, confirmed that the bankruptcy notice was filed after Jovian defaulted on the terms set by the summary judgment. Upon receiving leave to proceed with the notice, the company moved forward with the creditor’s petition, which the court allowed on 3 July 2025. Despite attempts to contest the proceedings, Jovian’s applications to set aside and stay both the bankruptcy notice and the creditor’s petition were dismissed by the court. The loan in question, originally amounting to RM5 million, was the result of a verbal agreement between Jovian and Cekap Air director Yong Zhen Wei, according to court documents. The funds were transferred on 25 February 2022 to a law firm acting on Jovian’s behalf, which subsequently confirmed receipt as instructed. Cekap Air initiated legal action against Jovian on 16 May 2023, citing failure to repay the friendly loan. The High Court’s earlier summary judgment on 2 April 2023 concluded in favour of Cekap Air. Jovian has filed an appeal against the summary judgment in the main suit, which is scheduled to be heard on 15 September 2025. -NST

KUALA LUMPUR: MSM Malaysia Holdings Berhad has announced that its Group Chief Executive Officer, Syed Feizal Syed Mohammad, will step down from his position effective 3 July. The resignation was disclosed in a filing with Bursa Malaysia, with the company confirming that Syed Feizal is departing to pursue personal interests. Syed Feizal, 60, has led the sugar-producing group since February 2021. MSM confirmed that there were no disagreements between the outgoing CEO and the Board of Directors, and that no matters relating to his departure require shareholder attention. In the interim, MSM has appointed Group Chief Operating Officer Hasni Ahmad as Acting Group CEO, effective the same day. Hasni, 57, holds a degree in chemical engineering from Clarkson University in the United States. He has served as the company’s COO since 2021 and brings with him extensive operational experience, having previously held senior leadership roles at FGV Holdings Berhad. MSM did not indicate when a permanent appointment will be made. -Bernama