Malaysia

TNG Digital and Setel Ventures have announced a strategic collaboration that now allows TNG eWallet users to pay for fuel at over 1,000 PETRONAS stations nationwide via a seamless in-app integration. The initiative integrates Setel’s pump-and-pay functionality directly into the TNG eWallet through the newly launched ‘PETRONAS via Setel’ mini programme. This feature enables motorists to refuel and make payments without exiting their vehicles or requiring a separate application, streamlining the entire process. To support the nationwide rollout, the first 50,000 eligible fuel transactions completed via the mini programme will be rewarded with RM5 worth of Mesra Rewards points. This offer is available to new users of Setel and Mesra Rewards, as well as existing Mesra members who link their IDs to Setel for the first time. Additionally, users will earn GOrewards points with each qualifying transaction. Setel, PETRONAS’ proprietary mobile platform, provides a suite of services including fuel payments, parking, electric vehicle charging, motor insurance, and road tax renewals, through a single digital platform used across the company’s retail and merchant ecosystem. Abdullah Ayman Awaluddin, Chief Executive Officer of Setel, stated that the partnership underscores the company’s continued efforts to expand its ecosystem through meaningful integrations. “Refuelling is a high-frequency transaction. Embedding Setel within TNG eWallet allows us to meet users where they are and reinforces our vision to deliver seamless and frictionless mobility and retail experiences through digital innovation,” he said. Alan Ni, Chief Executive Officer of TNG Digital, noted the importance of everyday digital convenience. “Fuel payments are a regular routine for many individuals, and this collaboration makes the process faster and more accessible, while creating new touchpoints within PETRONAS’ nationwide network. We actively encourage partnerships that not only enhance convenience for users, but also give our partners the opportunity to reach a wider, digitally engaged audience,” he said.

Shares of Wasco Bhd advanced on Monday, defying the broader market downtrend, as investors responded positively to the company’s proposed spin-off listing of its bioenergy subsidiary, Wasco Greenergy Bhd. The planned listing of Greenergy, which operates in biomass and steam energy, has prompted optimism among analysts and investors, positioning it as a potential value-unlocking move. Kenanga Investment Bank upgraded its rating on Wasco from ‘market perform’ to ‘outperform’, citing the valuation gap between Wasco and its closest peer, BM Greentech Bhd. The latter, a biomass boiler manufacturer, currently trades at over 20 times its trailing earnings, in contrast to Wasco’s single-digit earnings multiple. “We view this exercise positively as it unlocks value for Wasco’s shareholders,” Kenanga noted in its client update. The firm also highlighted upside potential as investors re-rate Wasco’s valuation in line with green energy peers. Wasco shares rose by as much as two sen to 97 sen during Monday trading, buoyed in part by broad gains across the energy sector amid heightened geopolitical tensions in the Middle East. The stock has now attracted four ‘buy’ ratings and two ‘hold’ recommendations, following Kenanga’s upgrade. The consensus target price has climbed to RM1.33, according to Bloomberg data, implying an upside of up to 39% from the current share price. Analysts at Hong Leong Investment Bank estimate that a 62.5% controlling stake in Wasco Greenergy post-listing could be worth approximately RM313 million—representing over 40% of Wasco’s existing market capitalisation. Funds raised from the initial public offering are expected to fuel Greenergy’s expansion plans, including investment in biomass steam power plants, capital expenditure, operations in Indonesia, digitalisation, and research and development. RHB Research described the move as “strategically sound”, underlining that successful execution and pricing will be crucial to realising its full market potential. “The listing is expected to enhance Greenergy’s capital position and support long-term growth,” the firm said. -The Edge

KUALA LUMPUR :Earnings for Malaysia’s listed construction companies are anticipated to show improvement in the second quarter (Q2) of 2025, building on a foundation of stable growth recorded in the first quarter, according to industry analysts. Despite ongoing challenges in cost management, the sector is projected to benefit from gradually improving job flows and the rollout of large-scale infrastructure projects. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng noted that most construction firms delivered first-quarter earnings reflecting consistent progress across existing projects, supported by sound cost controls even amid a cautious economic backdrop. Among the standout performers was Sunway Construction Group Bhd (SunCon), which distinguished itself through robust execution, a healthy order book, and strong operational efficiency. Looking ahead, Thong anticipates a gradual pick-up in job flows, driven by major infrastructure developments such as the RM17 billion Penang Light Rail Transit (LRT) project. While the project signals medium-term growth, he cautioned that material earnings impact is only expected from late 2025 or early 2026, as revenue recognition typically lags behind contract awards. Another analyst echoed similar views, stating that most publicly listed construction firms either met or modestly exceeded expectations in Q1, though margin pressures persisted, largely due to elevated costs of materials and labour. SunCon continued to outperform with consistent project wins, while Gamuda Bhd benefited from its strategic overseas exposure, particularly in Australia and Taiwan, providing resilience against slower domestic contract flows. The Penang LRT remains a key driver of medium-term sector visibility, with meaningful disbursements and contract rollouts anticipated from late 2025 onwards. CIMB Securities Sdn Bhd reported that the construction sector as a whole turned in a stable set of results for Q1. Of the companies under its coverage, four met expectations, while IJM Corp Bhd delivered an outperformance. Importantly, none of the major listed players reported significant impairments or provisioning during the quarter. CIMB maintained an “Overweight” rating on the construction sector and forecasted a 10 per cent year-on-year earnings growth for calendar year 2025. It also expects Q2 earnings to maintain upward momentum, supported by a return to full operational activity following festive season downtime in Q1. The firm observed a strengthening in order book visibility as large-scale public infrastructure projects and hyperscale data centre developments come to market. It noted that up to six data centre contracts, each potentially worth RM2 billion, could be awarded over the next two to three quarters. With the 13th Malaysia Plan expected to be tabled in July, the momentum in job flows is likely to accelerate. However, CIMB also flagged potential margin uncertainties stemming from the broadened scope of the Sales and Service Tax (SST), particularly in relation to smaller-scale, non-residential projects. IJM Corp has been reinstated as one of CIMB’s top large-cap picks alongside Gamuda. IJM is currently in the final stages of converting RM6 billion to RM8 billion worth of project bids into firm contracts, having recently secured approval to proceed with the RM1.4 billion New Pantai Expressway extension. Gamuda remains on course to reach its order book target of RM40 billion to RM45 billion by the end of 2025, underpinned by RM24 billion in high-conviction tenders, including six data centre-related bids. For alpha picks, CIMB pointed to Malaysian Resources Corporation Bhd (MRCB), which has already secured RM5.6 billion in new contracts year-to-date. The firm sees potential upside to MRCB’s FY25 new order book target of RM6 billion, citing likely wins from the RM1 billion KL Sentral redevelopment and an active tender book valued at RM1.7 billion. Among small-cap stocks, Econpile Holdings Bhd was highlighted for its potential to benefit from renewed momentum in large-scale piling works, as activity levels in the sector continue to recover. -NST

Pan Merchant Bhd, a specialist in solid-liquid filtration solutions, is accelerating efforts to expand its footprint in high-growth sectors such as sustainable fuel, water treatment and mining, as it prepares for its upcoming listing on the ACE Market of Bursa Malaysia. While the edible oil industry remains the cornerstone of the company’s business—accounting for almost 90% of total revenue in the last financial year—executive director Wong Voon Yoong said the group is increasingly prioritising sectors with larger global potential, particularly water treatment and mining. “Water is the immediate sector that we are already putting a lot of focus into. Many projects are coming up, both locally and overseas, and the contract values are quite high,” Wong told StarBiz. The group’s filter presses are widely used in potable water and wastewater treatment applications, supporting environmental compliance and water reuse. Pan Merchant also views mining as a major untapped opportunity, given its much larger share of the global filtration market. “If you look at edible oil, it accounts for only about 5.8% of the global filtration market. The mining sector, however, makes up roughly 22%—that’s around three and a half times larger,” Wong noted. Combined, water and mining represent approximately half of the global filtration market. The company has prior experience in supplying filters for smaller mining applications such as clay processing, which it first entered over a decade ago. Wong emphasised that the group is already capable of supporting certain segments of the mining sector, especially where filter size requirements are moderate. Executive director Wong Nyeon Thiat disclosed that the group currently holds a modest 0.5% share of the global filtration market, with a target to grow this to 2%–3% within the next two to three years. “Getting to 2% to 3% is very substantial and a lot of work needs to be put in,” she added. Pan Merchant aims to raise RM67.6 million through its initial public offering (IPO) scheduled for 26 June. The listing will see the issuance of 232.19 million new ordinary shares at 27 sen each, implying a market capitalisation of RM247.32 million based on a price-earnings ratio of 32.14 times its FY2024 earnings. Of the total IPO proceeds, RM62.7 million will go to Pan Merchant, with the balance RM4.9 million allocated to Budhi Sentoso Rachmat, a substantial shareholder who is offering 18 million shares via private placement. No other directors or shareholders are participating in the offer-for-sale portion. The group has committed to a minimum dividend payout of 30% of its post-tax profit attributable to shareholders annually. Approximately RM7 million of the IPO funds will be directed towards product development, including a mining-specific prototype filter, to be completed by end-2025. Other development priorities include modular filters for easier shipping, complementary equipment such as slurry thickeners and discharge systems, and in-house manufacturing of replacement parts to enhance control over design and quality. Capital expenditure, earmarked at RM28 million, will focus on upgrading production capabilities through new machinery and plant renovations. Pan Merchant operates three manufacturing sites in Ipoh—Jelapang Plant 1, Jelapang Plant 2, and Lahat Plant—with most output exported to Asia, Europe, the Americas and Africa. Managing director Wong Voon Ten said the company plans to enhance manufacturing efficiency by setting up a second filter leaf production line at Jelapang Plant 1 and deploying automation technologies. “These upgrades aim to improve consistency, reduce dependence on manual labour, and minimise outsourcing,” he said. Additionally, a second filter leaf line will be introduced at its Netherlands facility, as part of a RM6 million expansion involving office and workshop upgrades. “Filter leaves are parts that our customers need to replace periodically. This creates a recurring income stream for the group,” Wong added. Demand for filters has been steadily increasing, and the company aims to address potential delivery delays through added capacity. “It’s not that we can’t meet demand now—but delivery timelines can become too long,” Wong said. Currently, around 80% of the company’s production processes are still manually performed. Nyeon Thiat stated the group is targeting to reduce this reliance to approximately 30%–40%, although some labour-intensive assembly processes are expected to remain. The remaining IPO proceeds will be allocated towards working capital (RM14.69 million) and estimated listing expenses (RM7 million). Affin Hwang Investment Bank Bhd is acting as the principal adviser, sponsor, sole underwriter, and placement agent for the IPO. -The Star

OCBC Group has announced a significant commitment of more than RM11 billion in financing to businesses in Johor since early 2023, reinforcing its support for the Johor-Singapore Special Economic Zone (JS-SEZ). The banking group expects to inject at least an additional RM3 billion by the end of 2025, channelled into strategic sectors such as real estate, oil and gas, manufacturing, and data centres. OCBC Group Chief Executive Officer Helen Wong highlighted the bank’s enduring presence in the state during a recent courtesy call on Johor Menteri Besar Datuk Onn Hafiz Ghazi at his official residence in Saujana. OCBC’s roots in Johor date back to 1917 with the establishment of its first branch. Today, the bank operates eight branches in the state, forming part of its 38-branch network across Malaysia. “Having already committed over RM11 billion in financing to Johor-based businesses, we aim to further stimulate local economic activity and facilitate cross-border investments through at least RM3 billion more in financing by year-end,” said Wong. She also expressed appreciation for the opportunity to collaborate with the Johor State Government to expand upon these efforts. “We are honoured to work closely with the Menteri Besar to build on these strong foundations and leverage OCBC Group’s extensive regional network to help drive the success of the JS-SEZ,” she added. Datuk Onn Hafiz welcomed OCBC’s involvement, noting that the bank’s sustained financial commitment signals robust investor confidence in the state’s economic direction. “This partnership reflects our shared vision of unlocking Johor’s full potential as ASEAN’s next economic powerhouse,” he said. -The Star

AmMetLife Takaful Berhad has announced the appointment of Nazrulhisham Abdul Hamid as its new Chief Executive Officer, with effect from 16 June 2025. Nazrulhisham brings to the role over 25 years of experience in senior leadership positions across the insurance and takaful sectors. He previously served as Chief Executive Officer of Zurich Takaful Malaysia, further reinforcing his credentials within the industry. His extensive background spans both family and general takaful, covering sales and operational functions. In a statement, AmMetLife Takaful highlighted his decade-long involvement in the takaful sector, citing his leadership capabilities and depth of industry expertise as key to the company’s forward momentum. Elena Butarova, MetLife’s Regional Head for Bangladesh, Malaysia, Nepal, and Vietnam, welcomed the appointment, noting that Nazrulhisham’s strong leadership record and deep understanding of the sector would be pivotal in driving the company’s continued growth and operational excellence. -Bernama