Malaysia

SK Group is reportedly exploring the sale of its minority interest in Malaysian waste management company Cenviro Sdn Bhd, in a transaction that could value the firm at approximately US$300 million (RM1.27 billion), according to sources familiar with the matter. The South Korean conglomerate is understood to be working with a financial adviser to assess the potential divestment of its 30% stake in Cenviro. Discussions have taken place with potential buyers, including strategic players in the sector and private equity firms, sources said, requesting anonymity due to the private nature of the talks. SK Group, via its environmental unit SK ecoplant Co, acquired the stake in Cenviro in 2022 for an undisclosed amount. Cenviro’s majority shareholder is Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund. While deliberations are ongoing, one of the sources indicated that SK may ultimately choose to retain its holding. Both SK ecoplant and Cenviro declined to comment on the matter when contacted. A potential exit from Cenviro would be consistent with SK Group’s broader strategic realignment away from waste management. South Korean media have reported that SK is also seeking to offload its waste-to-energy subsidiaries, Renewus and RenewOne. The group is currently undergoing a major restructuring effort following an extended period of acquisitions that has led to increased financial obligations. As part of this shift, SK is refocusing its core strategy around high-growth sectors, including artificial intelligence and semiconductor technologies. -Bloomberg

Eco World Development Group Berhad (EcoWorld Malaysia) has achieved RM2.99 billion in sales over the first seven months of its financial year ending 31 October 2025 (FY25), reaching 85% of its full-year sales target. The robust performance underscores continued market confidence in the developer’s residential and industrial offerings. In a statement, EcoWorld Malaysia highlighted that developments in Iskandar Malaysia contributed RM1.67 billion or 56% of total group sales. Projects in the Klang Valley and Penang accounted for 34% and 10% respectively. For the second quarter ended 30 April 2025 (2Q25), EcoWorld Malaysia reported a significant surge in net profit to RM129.83 million, compared to RM70.05 million in the corresponding period last year. Quarterly revenue also rose sharply to RM878.20 million from RM555.76 million previously. The group’s performance over the six-month period ended 30 April 2025 continued this strong trajectory, with net profit rising to RM210.18 million from RM139.68 million a year ago. Revenue increased to RM1.42 billion, up from RM1.09 billion in the same period last year. As at 30 April 2025, EcoWorld Malaysia’s net gearing stood at 0.55 times, supported by a strong cash position. The group reported cash balances, including deposits and short-term funds, totalling RM1.76 billion—a record high. EcoWorld Malaysia also declared a second interim dividend of two sen per share during 2Q25, bringing total dividends declared to date for FY25 to three sen per share. The group’s industrial segment continues to show exceptional momentum. Sales under the Eco Business Parks and Quantum pillars reached RM1.20 billion as at 31 May 2025, already surpassing the full-year industrial sales of RM1.11 billion recorded in FY24. The strong performance has driven future revenue to RM5.22 billion, with additional cash inflows of over RM1 billion anticipated from the balance of five large-tract industrial land sales secured in FY24 and FY25. Meanwhile, Eco World International Berhad (EWI), which focuses on property development in the United Kingdom and Australia, returned to profitability in 2Q25. EWI posted a net profit of RM2.28 million, reversing a net loss of RM14.13 million in the same quarter last year. According to its Bursa Malaysia filing, the profit was largely attributed to a higher share of profits from its joint venture with EcoWorld-Ballymore, following a favourable product mix with stronger profit margins. EWI recorded no revenue during the quarter as all residential units in its Australian projects—West Village and Yarra One—were fully sold in FY24, leaving only one commercial unit unsold. For the six months ended 30 April 2025, EWI reported a narrowed net loss of RM1.46 million, compared to RM13.95 million a year earlier. The group is currently evaluating market conditions and development feasibility for its remaining sites in the UK and Australia before proceeding with any new launches. -The Star

Proton Holdings Bhd and Grab Malaysia have expanded their strategic collaboration, incorporating a broader selection of Proton vehicles into Grab’s e-hailing fleet. The latest development includes the introduction of the Proton S70 and X-Series models, complemented by enhanced benefits designed to support driver-partners across the country. Building on the success of the “Saga Power Up for Grab Driver-Partners” campaign launched in November 2024, the initiative has already recorded 220 leads and resulted in 148 Proton Saga registrations. This positive uptake reinforces the appeal of Proton’s offerings within Malaysia’s growing e-hailing sector. The extended partnership further supports efforts to modernise the ride-hailing landscape by providing affordable, reliable, and better-equipped vehicles. Grab driver-partners now have access to a wider range of Proton models, including options under GrabCar Plus and GrabCar (6-Seater), allowing them to better tailor their services to varying customer demands. Under this initiative, driver-partners are entitled to a comprehensive range of incentives, including cash rebates of up to RM13,000, a five per cent discount on service costs for two years or 40,000 km, and RM500 in fuel support — all designed to reduce upfront costs and enhance long-term vehicle affordability. Proton Edar’s deputy director of sales, Ong Chee Wooi, emphasised the broader vision behind the collaboration, stating that the partnership represents a significant step forward in supporting gig economy workers. “Our strengthened partnership with Grab Malaysia marks a crucial step in empowering the e-hailing sector. Proton is thrilled to make our S70 and premium X-series models more accessible to Grab drivers. For gig workers, this comprehensive programme extends beyond exclusive benefits to assurance of driving Proton cars. Its reliability and affordable maintenance costs are important factors for those who use cars as their primary working tools,” he said. Grab Malaysia’s director of country operations and mobility, Rashid Shukor, echoed the sentiment, highlighting the collaboration’s role in enabling income generation while meeting rising consumer demand. “With the expansion of our partnership – now extending to the S70 and premium X-series models – drivers now have the chance to elevate their driving experience, upgrade their vehicles, and cater to an even broader consumer base. We look forward to continuing this journey together to build a future where opportunities are accessible to all,” he said. -The Star

The Malaysian Investment Development Authority (MIDA) and global logistics leader DHL have renewed their longstanding partnership through a memorandum of understanding (MoU) signed yesterday, reaffirming their joint commitment to strengthening Malaysia’s logistics and supply chain ecosystem. The agreement brings together all four DHL business divisions operating in Malaysia – DHL Express, DHL Supply Chain, DHL Global Forwarding, and DHL eCommerce – in closer collaboration with MIDA. The renewed alliance is designed to further enhance Malaysia’s appeal as a preferred destination for foreign direct investment (FDI), leveraging its strategic location and established logistics infrastructure. Datuk Wira Arham Abdul Rahman, Chief Executive Officer of MIDA, described the partnership as a strategic milestone in Malaysia’s continued evolution into a smart logistics hub for the Asia-Pacific region. “Malaysia’s logistics sector has undergone a remarkable transformation, emerging as a powerhouse of innovation and technological advancement,” he said. “We are witnessing significant developments in digital technology and smart automation, ranging from AI-powered route optimisation and real-time tracking to advanced warehouse robotics and autonomous delivery systems.” Julian Neo, Managing Director of DHL Express Malaysia and Brunei, highlighted Malaysia’s growing relevance amid shifting global supply chain strategies. “As multi-shoring and multi-sourcing gain strategic importance, Malaysia is well positioned to capitalise on these trends due to its regional connectivity and conducive business environment,” he said. “With our extensive network and experience in cross-border trade, DHL Express is proud to support MIDA in attracting global investors through seamless market entry and end-to-end logistics solutions.” DHL reaffirmed its commitment to enhancing Malaysia’s visibility among multinational corporations looking to diversify manufacturing and sourcing operations. It emphasised that its comprehensive logistics and supply chain capabilities, combined with its strong presence in Malaysia, provide foreign investors with a critical advantage in building resilient, efficient supply networks. -Bernama

SME Corporation Malaysia (SME Corp) has announced a strategic collaboration with the Selangor Human Resource Development Centre (SHRD), aimed at embedding innovation as a fundamental growth strategy for small and medium enterprises (SMEs) across Malaysia. According to a statement released by SME Corp, the initiative commenced with the first in a series of three innovation seminars under the theme “Future-Ready SMEs: The Power of Innovation.” The seminar engaged over 70 SMEs from diverse sectors, equipping participants with the tools and insights necessary to implement innovation-led strategies designed to improve productivity, enhance competitiveness and strengthen readiness for global market expansion. This initiative forms part of SME Corp’s broader strategic direction under the 13th Malaysia Plan (13MP), which seeks to support the transformation of domestic SMEs from small-scale operations into medium-sized enterprises with stronger international market presence. Chief Executive Officer of SME Corp, Rizal Nainy, emphasised the importance of timing in delivering innovation-focused programmes, stating that such initiatives are essential to building resilience and long-term competitiveness among Malaysian SMEs. “By fostering innovation among SMEs, we aim to amplify their contribution to national productivity and enable sustainable growth amid an increasingly competitive global landscape,” he said. SME Corp confirmed that the subsequent two seminar sessions are scheduled to take place in Kuala Lumpur in July and August. These sessions will be held on an invitation-only basis for selected SMEs. Additional details are available via the agency’s official website at www.smecorp.gov.my. -Bernama

Kim Loong Resources Bhd reported a 6% year-on-year increase in revenue to RM411.7 million for the first quarter ended 30 April 2025 (1QFY26), supported by stronger fresh fruit bunch (FFB) production and improved selling prices. However, net profit for the quarter declined 15.3% to RM41.9 million, impacted by a reduced processing margin from milling operations. The company noted that despite this decline, the higher selling price of FFB and improved production volumes helped underpin revenue growth. On a quarter-on-quarter basis, the group’s net profit nearly doubled from RM22.8 million recorded in the fourth quarter ended 31 January 2025, even as revenue fell from RM443.3 million. The improvement in earnings was attributed to higher FFB output during the quarter. Looking ahead, Kim Loong Resources is targeting a 5% to 10% increase in FFB production for the financial year ending 31 January 2026. The company expects this growth to be driven by the favourable age profile of its young, productive palms and the continued progress of its replanting programme. -The Star

The Malaysia Pavilion at Expo 2025 Osaka has welcomed more than 1.5 million visitors within the first three months of the event, surpassing initial expectations and reinforcing the nation’s strategic global positioning. According to a statement by the Ministry of Investment, Trade and Industry (MITI), the strong public response was further complemented by the achievement of over 69 per cent of Malaysia’s total trade and investment target of RM13 billion. “This success boosts Malaysia’s momentum in achieving the two main objectives of participating in the World Expo, namely driving strategic economic outcomes and expanding the country’s engagement with the global community,” MITI said. Director of the Malaysia Pavilion, Ellyza Mastura Ahmad Hanipiah, expressed appreciation for the overwhelming response and interest from both the public and global stakeholders. “We hope to continue to create meaningful experiences so that every visitor brings home the smiles and fond memories of Malaysia,” she said. -Bernama

Malaysia’s key banking associations have moved to reassure consumers that essential everyday banking services will remain exempt from the expanded service tax on financial services, set to come into force on 1 July. In a joint statement, the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Malaysian Investment Banking Association (MIBA) confirmed that the revised scope of the tax will be limited to selected corporate, treasury and investment banking services. They emphasised that routine financial services used by individual consumers—including those involving fees or commissions linked to current and savings accounts, e-wallets and credit cards—will not fall within the scope of the expanded tax. Additionally, core services such as cash deposits and withdrawals, payments, local fund transfers, debit card issuance and related annual fees, as well as over-the-counter transactions including bill payments and statement printing, will remain exempt. “These are considered essential banking services and remain out of scope for service tax purposes,” the associations said, reaffirming their commitment to minimising disruption to the public. Interest charges, profit-based fees, penalties and credit card annual fees are also excluded from the revised tax framework, in a move designed to ensure that routine financial interactions for individuals are not impacted. “All banks under ABM, AIBIM and MIBA are committed to transparency. Where the service tax applies, the charges will be clearly indicated and communicated to customers,” the associations added. Customers with questions about how the changes may affect them are encouraged to contact their respective banks directly. The banking industry reiterated its intent to work closely with relevant authorities to ensure a smooth and responsible transition. -FMT