Malaysia

Telekom Malaysia Berhad (TM) is poised to significantly strengthen its position in the data centre (DC) market, with RHB Research projecting that earnings from this segment could double by the financial year ending 2027. The bullish outlook is underpinned by ongoing infrastructure expansion and increasing demand from hyperscale clients. RHB Research noted that TM’s twin-core data centres in Cyberjaya and Iskandar Puteri are progressing well, with both facilities expected to be fully operational by the fourth quarter of 2025. Upon completion, the expanded IT load capacity is expected to reach approximately 40 megawatts (MW), setting the stage for full utilisation and a step-change in revenue potential. In addition to its core data centre business, TM is also benefiting from growing revenues in managed wavelength and DC fibre connectivity services, as demand from hyperscalers continues to rise. These segments are seen as strategic growth pillars that complement TM’s broader digital transformation agenda. The research house has maintained a “Buy” recommendation on TM shares, with a target price of RM8.15. At the time of analysis, TM’s shares were trading at RM6.71. While the long-term outlook remains favourable, RHB Research cautioned that potential risks include delays in commercialising the expanded DC capacity, slower-than-expected uptake, increased competition from colocation providers, and broader geopolitical uncertainties that may impact enterprise IT spending. Despite the company not disclosing specific revenue figures for its DC operations, RHB’s on-ground assessments indicate solid progress at TM’s key expansion sites. In the Klang Valley, the construction of KVDC2 (Klang Valley Data Centre Block 2) has surpassed the 60% completion mark. Structural works for the four-storey facility are completed, and upon full commissioning, KVDC2 is expected to offer a total IT load of 9.2MW. It will house eight data halls (two per floor), utilising conventional air-cooling systems. Similarly, at the Iskandar Puteri Data Centre (IPDC) located in Nusajaya Technology Park, the second block (IPDC2) is slated for completion by the third quarter of 2025. Construction of the four-storey building has already progressed beyond 70%, reflecting strong execution capabilities and adherence to project timelines. -The Star

Hiap Teck Venture Bhd is positioning itself for a gradual recovery, driven by improving performance at its associate Eastern Steel Sdn Bhd (ESSB), even as near-term challenges persist. The group’s fourth quarter for the financial year ending 31 July 2025 (4Q25) is anticipated to remain subdued, reflecting continued pressure from weak global steel prices, ongoing uncertainty surrounding US trade tariffs, and the sluggish rollout of domestic infrastructure projects. In the third quarter of FY25 (3Q25), Hiap Teck reported a net profit of RM34.28 million and revenue of RM344.84 million, compared with RM46.82 million and RM399.68 million, respectively, in the corresponding period last year. For the cumulative nine-month period, the group recorded a net profit of RM89.41 million on revenue totalling RM1.09 billion. The group’s core net profit declined by 42.9% year-on-year to RM47 million, primarily attributed to margin compression within its trading and downstream segments. This margin erosion stemmed from weaker selling prices and softer sales volumes, which offset the improved contribution from its 27.3%-owned associate, ESSB. ESSB’s core earnings rose to RM71.1 million during the period, supported by increased sales volumes, which helped counterbalance lower average selling prices. The performance of ESSB is expected to remain a key driver of Hiap Teck’s earnings stability going forward. According to Hong Leong Investment Bank (HLIB) Research, Hiap Teck’s near-term outlook remains challenging, underpinned by ongoing macroeconomic concerns in China and delays in the implementation of domestic infrastructure projects. Nonetheless, steady earnings from the scaffolding division, alongside improved output from ESSB, are projected to cushion these headwinds. Of particular note is ESSB’s hot rolled coil (HRC) plant, which commenced operations in December 2024 and is currently operating at approximately 50% capacity. Hiap Teck aims to raise this utilisation rate to near full capacity by the end of 2025, which is expected to drive further reductions in unit conversion costs. Reflecting the lower sales volume assumptions, HLIB Research has revised down its core net profit forecasts for FY25 to FY27 by 3.3%, 0.9% and 3.8%, respectively. Despite the near-term earnings softness, the research house has reiterated a “buy” recommendation on Hiap Teck, albeit with a reduced target price of 34 sen, based on a revised valuation of 6.5 times the forecast FY26 core earnings per share of 5.2 sen. -The Star

The Federal Court has ruled in favour of the Inland Revenue Board (IRB), reinstating an additional tax assessment of RM1.25 billion against Tenaga Nasional Berhad (TNB) for the 2018 financial year. This follows a remission from the original RM1.812 billion tax notice initially imposed by the IRB. In a filing with Bursa Malaysia, TNB confirmed the Federal Court’s decision to allow the IRB’s appeal against earlier rulings by the High Court and Court of Appeal. Both lower courts had previously sided with TNB’s judicial review, which sought to annul the tax notice. TNB is currently evaluating the full financial implications of the ruling. According to the Federal Court, TNB, as a utility company, falls under Schedule 7B of the Income Tax Act 1967, which concerns the Investment Allowance, rather than Schedule 7A, which pertains to Reinvestment Allowance (RA). In light of this clarification, TNB will now proceed to claim the Investment Allowance under Schedule 7B. The utility giant acknowledged that the ruling may exert a negative impact on earnings and net assets for the financial year ending 31 December 2025. However, operational performance is expected to remain unaffected. The dispute dates back to 3 July 2020, when the IRB informed TNB via formal correspondence that the RA claimed for 2018 had been disallowed. A notice of additional assessment amounting to RM1.812 billion was issued shortly thereafter, on 7 July 2020. TNB subsequently filed for judicial review to contest the imposition, which resulted in a reduction of the assessment to RM1.25 billion. In a separate development, the newly restructured electricity tariff, effective from this month, is anticipated to strengthen sectoral stability and support long-term reform. Analysts have noted that the revised framework promotes a more balanced cost distribution across consumer segments, which is expected to provide sustainable funding for infrastructure maintenance and future capacity expansion. CIMB Research, following a detailed briefing by TNB, reaffirmed that the Incentive-Based Regulation (IBR) mechanism continues to ensure that TNB achieves the regulatory rate of return of 7.3% on its regulated asset base (RAB), irrespective of tariff adjustments. During Regulatory Period 4 (RP4), the RAB is projected to expand, supported by a 12% increase in base capital expenditure to RM26.6 billion, alongside contingent capex of RM16.3 billion. Hong Leong Investment Bank (HLIB) Research highlighted that the revised tariff structure introduces more granular billing and a fairer allocation of fixed costs. The adjustments, including increased emphasis on demand charges and reduced energy charges, aim to address previous cost recovery shortfalls. A new five-part bill structure is also being introduced to enhance transparency. Crucially, the Automatic Fuel Adjustment (AFA) mechanism has replaced the Imbalance Cost Pass-Through (ICPT), launching at a neutral rate of zero this month. CIMB Research noted that going forward, deviations in fuel costs from RP4 projections will be charged at uniform rates across all non-exempted residential and commercial users. Households consuming 600 kilowatt-hours or less remain exempt. HLIB Research indicated that the AFA is expected to improve cash flow predictability for TNB, enabling more accurate and timely cost recovery. MIDF Research echoed the sentiment, stating that the AFA’s dynamic structure helps mitigate volatility in fuel costs, thereby reinforcing financial stability. Electricity demand is forecast to rise by between 3.5% and 4.5% this year, with peak demand reaching an all-time high of 20.75GW in May. The impact on consumer billing will vary. Residential users may experience flat or reduced bills, potentially by as much as 15%, especially if they shift consumption to off-peak periods under the Time-of-Use tariff model. CIMB Research also projected that approximately 71% of medium-voltage customers could benefit from reductions of up to 16%. However, data centres are set to face increased electricity costs due to a reclassification under the new ultra-high voltage category. CIMB Research estimated a 10% to 15% hike in their electricity bills, driven by peak and off-peak charges that are 24% to 26% higher than the new high-voltage tariffs. -The Star

Main Market-Listed leading innovator and manufacturer of high-performance test contacting and interface solutions for global integrated circuit (“IC”) makers, JF Technology Berhad (the “Group”) , announced today the appointment of Mr Andy Goh Joo Hwa (“Andy Goh”) as Chief Executive Officer (“CEO”), effective 1st July 2025. Meanwhile, Dato’ Foong Wei Kuong (“Dato’ Foong”) was re-designated to Group Managing Director to concentrate his efforts in driving the group new strategic expansion plan in JF 4.0 Transformation. Under the new leadership structure, Andy Goh will oversee the Group’s existing businesses and operations, focusing on enhancing technological innovation, market expansion, improve customer intimacy, and operational excellence. Meanwhile, Dato’ Foong will concentrate on Group’s expansion opportunity through venturing into strategic new business partnership and corporate mergers and acquisitions (“M&A”), in line with the Group’s JF 4.0 Transformation. Andy Goh brings with him 30 years of valuable experience in the semiconductor and electrical and electronics (“E&E”) industry. Since joining the Group in 2008, he has held key roles including Senior Vice President (“SVP”) of Sales & Marketing and SVP of Business Development & Investment, focusing on strategic partnerships and market expansion to drive growth. He was instrumental in the Group’s M&A activities including the recently concluded acquisition of probe card manufacturing specialist, Q3 Probe Pte., Ltd.  Commenting on the appointment, Group Managing Director of JF Technology Berhad, Dato’ Foong Wei Kuong said, “This appointment is part of the Group’s long-term strategic plan aimed at sharpening strategic focus, enhancing operational effectiveness, and driving growth. Furthermore, this clear delineation of roles allows us to move with greater agility and focus. With Andy Goh leading the day-to-day business, I will concentrate on unlocking new growth opportunities and driving strategic expansion.” “This appointment is the result of our Group carefully planned internal human resource strategy to nurture and promote from within our organisation. Andy Goh has been growing his career in the Group for almost 20 years and the Group valued his contribution, dedication and outstanding business acumen. Hence, his appointment is a natural progression. The Board and I are confident that he is the right leader who will embrace our Group competitive culture and will definitely be driving the Group to new height.” Dato’ Foong concluded his comments. Chief Executive Officer of JF Technology Berhad, Mr. Andy Goh Joo Hwa commented, “I am deeply honoured by the trust placed in me by Dato’ Foong and the Board of Directors. Having been in the forefront of the Group for many years, I see tremendous potential ahead. I am ready to embrace both the opportunities and challenges in leading the Group forward.” “Together with our dedicated team, I look forward to strengthening the solid foundation built by Dato’ Foong and further enhancing our position in the semiconductor value chain. More excitingly, I believe this transition will help accelerate the momentum of our JF 4.0 Transformation. We fully understand that we need to be mindful and agile in manoeuvring the current macroeconomic uncertainties and to stay relevant in this competitive industry.  We must move forward courageously and seize the new opportunities that may arise in current situation. I believe JF Tech will expand and grow into a stronger and profitable company in this JF 4.0 Transformation.  All in all, the long-term outlook of the Group remains very promising.”

CGS International Wealth Management Malaysia Sdn Bhd (“CGS Asset Management”), a wholly-owned subsidiary of CGS International Securities Malaysia Sdn Bhd (“CGS MY”), launched two new wholesale fund-of-funds under their Cash Management Solutions suite – the CGS Ihsan Cash Fund and CGS Dynamic Cash Fund (“the funds”) – to meet the increasing demand for efficient, yield-enhanced high-liquidity investments. CGS Asset Management aims to raise RM1 billion in assets under management from their new Cash Management Solutions over the next year.   CGS Asset Management’s Shariah and conventional Cash Management Solutions are wholesale fund-of-funds designed to provide investors a one-stop access to a diversified portfolio. A minimum 90% of the funds will be invested in top-performing money market collective investment schemes (“CIS”). These liquid and low-risk, short-term money market CIS serve to preserve capital and support short-term cash flow needs with active allocation by fund managers to further optimise the funds’ yields. Both funds are tailored for sophisticated investors – individuals, businesses, corporates and institutions – looking for smarter ways to manage their cash. Mr Alan Inn Wei Loon, Deputy Chief Executive Officer of CGS MY said, “CGS Asset Management is pleased to roll out our first Cash Management Solutions products. These cash fund-of-funds are the first of its kind in market and offer our investors access to a diversified portfolio of money market CIS via an optimised-allocation approach that allows our fund managers to enhance yield, while minimising single fund and portfolio risks. We have been rolling out different services and solutions under our Asset Management portfolio, such as our Single-Family Office solution, launched in May with the Malaysian government. With our current and upcoming suite of solutions, we are confident that we will be able to offer a comprehensive and tailored approach to asset management for our clients, from building their wealth, to optimising the yield on their short-term holdings and better manage their cash needs.” The CGS Ihsan Cash Fund is Shariah-compliant, tailored for investors seeking to align their investment strategies with Islamic principles. The CGS Dynamic Cash Fund, meanwhile, offers a conventional structure. Both funds are managed with disciplined portfolio construction and monitored against parameters such as interest rates, fund manager performance, and liquidity cycles. Key features of both funds: One-stop access to top-tier Money Market CIS in Malaysia Active management of portfolio with dynamic rebalancing based on yield potential and liquidity Optimised allocation strategy – targeting high-performing funds with sizeable AUM Daily T+2 liquidity ensuring timely access to cash when needed Available in both conventional and Shariah-compliant structures The funds leverage CGS Asset Management’s experienced fixed income team and robust selection framework, ensuring each underlying investment meets stringent performance, governance, and liquidity standards. The Cash Management Solutions represent a natural extension of CGS Asset Management’s strategy to expand its portfolio of innovative investment solutions, supported by the global network and research strength of the CGS International Group. The CGS Ihsan Cash Fund and CGS Dynamic Cash Fund are available starting 1 July 2025. Interested investors are advised to review the respective Information Memorandum and Product Highlights Sheet, accessible at www.cgsi.com.my.

Lianson Fleet Group Bhd, formerly trading as Icon Offshore Bhd, has announced the proposed disposal of one of its offshore support vessels for RM32.02 million in cash. The buyer is Huashun Shipping (Liberia) Inc, a wholly owned subsidiary of Shenzhen Huawei Offshore Shipping Transport Co Ltd. The divestment is part of LFG’s broader fleet rejuvenation strategy aimed at modernising its assets to meet evolving requirements in the oil and gas sector. This move also complements the group’s recent rebranding efforts and long-term strategic shift from being a traditional offshore support vessel (OSV) operator towards a more diversified portfolio across multiple vessel classes. “This also aligns with LFG’s rebranding and long-term strategy to diversify from being a pure-play offshore support vessel (OSV) player into other vessel asset classes, supporting our pivot towards new markets and strengthening our long-term growth and operational flexibility,” the company stated in a filing with Bursa Malaysia. The asset in question is a Malaysian-flagged DP-2 anchor handling and supply tug (AHTS), built in 2010. With a deadweight tonnage of 2,524 tonnes and a static bollard pull capacity of 108 tonnes, the vessel was acquired in March 2011 for RM65.82 million. As of end-May 2025, its net carrying value stood at RM22.57 million. The vessel was last independently valued at US$5.70 million in December 2024. The disposal is expected to be completed by the end of August 2025. LFG anticipates an estimated gain of RM8.15 million from the sale, net of associated costs. Proceeds from the sale will be allocated for general corporate purposes and to support the group’s future growth and strategic initiatives. Shares in LFG closed at 88.5 sen on Tuesday, up one sen or 1.1%, giving the group a market capitalisation of RM756.6 million. Despite the gain, the stock has declined 11.5% year-to-date. -The Edge