Malaysia

Poh Kong Holdings Bhd remains optimistic about the continued strength in gold demand, attributing this resilience to persistent global trade tensions and tariff-related economic disruptions that have prompted investors to turn to traditional safe-haven assets such as gold. In a filing with Bursa Malaysia, the jeweller highlighted that gold demand historically increases during periods of tariff-induced uncertainty, as investors seek refuge from inflationary pressures and heightened market volatility. The company noted that current global trade frictions are notably altering production and trade flows, further fuelling interest in gold. For the third quarter ended 30 April 2025, Poh Kong reported a stable net profit of RM47.6 million, translating to earnings per share of 11.60 sen. This brings the group’s cumulative nine-month net profit to RM98.5 million, or 24.01 sen per share. Revenue for the quarter rose 2.7% year-on-year to RM533.9 million, supported largely by a rally in global gold prices. This increase helped lift total revenue for the nine-month period to RM1.32 billion. Poh Kong stated that the upward momentum in gold prices had contributed to stronger operating profits in the quarter under review, reinforcing the group’s stable financial footing amid macroeconomic uncertainties. -The Star

OCBC Bank (Malaysia) Berhad has committed RM351 million in financing to support three real estate projects within the Johor-Singapore Special Economic Zone (JS-SEZ), reinforcing its role as a strategic financial partner in regional development. In a recent statement, OCBC Bank confirmed that the financing package supports a joint initiative between Exsim and See Hong Chen Group involving the acquisition of freehold land situated along Jalan Dato Abdullah Tahir in Johor Bahru. The site has been earmarked for a mixed-use development with an estimated gross development value of RM1.8 billion. In addition to the joint venture, the financing also facilitates See Hong Chen Group’s acquisition of multiple freehold land parcels in Johor Bahru, further underscoring the group’s growing footprint in the region and commitment to advancing economic activity within the JS-SEZ. -The Star

KUALA LUMPUR: CIMB Group Holdings Bhd has announced the appointment of Datuk Syed Zaid Albar as its new Group Chairman, succeeding Tan Sri Mohd Nasir Ahmad, who will retire on 19 July. The appointment will take effect from 20 July, following Syed Zaid’s induction as an independent, non-executive director on 18 June. With over four decades of experience in the legal and capital markets sectors, Syed Zaid brings a wealth of knowledge and expertise to the role. A founding partner of the law firm Albar & Partners, he notably served as Executive Chairman of the Securities Commission Malaysia between 2018 and mid-2022. In addition to his regulatory experience, Syed Zaid has held directorships in various public-listed entities, including Yinson Holdings Bhd, Cycle & Carriage Bintang Bhd, Malaysian Pacific Industries Bhd and Malaysia Building Society Bhd. Tan Sri Mohd Nasir, who has chaired CIMB for the past ten years, expressed his confidence in Syed Zaid’s appointment, citing the latter’s broad-based corporate and regulatory background. “His distinguished leadership and extensive corporate experience across the legal, financial and regulatory landscape will bring valuable perspective in guiding CIMB through its next chapter of growth and transformation. We are confident that his stewardship will provide strong guidance in driving the success of the Group’s Forward30 strategic plan,” he said. Group Chief Executive Officer Datuk Abdul Rahman Ahmad also welcomed the appointment, expressing his anticipation of Syed Zaid’s contributions as the Group progresses with its Forward30 strategic initiative. “We look forward to his guidance as we execute our Forward30 strategic plan over the next six years, driven by our purpose of advancing customers and society. Our ambition is to be the leading ASEAN bank, reimagining banking by seamlessly integrating into our customers’ lives while keeping them at the core of everything we do,” said Abdul Rahman. He also acknowledged the significant contributions of Mohd Nasir, whose decade-long tenure saw meaningful progress for CIMB. As at Monday’s close, CIMB shares declined by 1% or 7 sen to RM6.75, giving the Group a market capitalisation of RM72.58 billion. Year-to-date, the counter has registered a decline of 17.7%. -The Edge Malaysia

The Port Klang Authority (PKA) has firmly dismissed claims made by the Federation of Malaysian Manufacturers (FMM) regarding the recently announced tariff revision, describing the assertions as inaccurate and misleading. PKA General Manager K Subramaniam clarified that the updated tariff structure—scheduled for full implementation by 2027—was the outcome of a thorough benchmarking exercise against other major ports in the ASEAN region. He noted that even with the complete rollout, the revised rates will remain lower than many regional counterparts, reinforcing Port Klang’s competitiveness. The tariff adjustment will range from 5% to 185%, depending on the category and service type. Subramaniam underscored that this move is intended to align Port Klang’s pricing model with prevailing regional standards while enabling continued investment in port infrastructure and technological advancement. The response comes in the wake of a report by The Borneo Post, quoting FMM President Soh Thian Lai, who claimed that the 30% tariff increase scheduled for implementation from 1 July could result in container handling and storage charges rising by as much as 243%. Soh argued that these changes could push charges for a standard 20-foot container to between USD 120 and USD 130—on par with Singapore and Hong Kong but significantly above rates in Vietnam, Indonesia, and Thailand. He further estimated the revised charges could cost the manufacturing sector up to RM1.125 billion annually, based on Port Klang’s annual throughput of approximately 12.5 million twenty-foot equivalent units (TEUs). Subramaniam refuted these figures, calling them overstated and based on flawed assumptions. He explained that the FMM’s estimate failed to consider the phased nature of the increase, the existence of free storage periods, and the differentiation in pricing for transshipment cargo, which comprises a substantial share of Port Klang’s traffic. Addressing broader concerns about Malaysia’s export competitiveness, Subramaniam stated that port tariffs represent only one component of a much larger ecosystem. He pointed to Malaysia’s strong manufacturing base, extensive trade agreements, and growing export diversity as key pillars that underpin the country’s position in global trade. He emphasised that the tariff adjustment is not a step back but a strategic move to reinforce Port Klang’s position as a key logistics hub in Southeast Asia. By investing in capacity expansion, technological upgrades, and sustainable operations, the revised structure is designed to benefit manufacturers, exporters, and importers alike—ensuring long-term growth and regional leadership for Malaysia’s trade sector. -FMT

Petroliam Nasional Bhd (Petronas), Malaysia’s state-owned oil and gas giant, is turning to its overseas portfolio to lower production costs and address declining profitability amid a more volatile global energy landscape. According to Mohd Jukris Abdul Wahab, Chief Executive Officer of Petronas’ upstream division, the company aims to reduce its oil production break-even price to US$50 (RM212.37) per barrel, a significant drop from the US$60 to US$70 range recorded over the past five years. The upstream division encompasses the exploration, development and extraction of oil and gas. In pursuit of this goal, Petronas will prioritise increasing output from lower-cost international assets, particularly in countries where it already maintains a presence, such as Canada, Suriname, Brazil, Turkmenistan and several Southeast Asian markets. However, the company remains open to entering new geographies if they present strategic growth opportunities. “We want to reshape the entire portfolio,” Jukris said during an interview held on 13 June at the Petronas Twin Towers in Kuala Lumpur. “We are preparing ourselves, moving into a more volatile environment in the future.” The shift in focus comes as Petronas contends with weakening crude oil prices since their 2022 highs, which have adversely impacted its earnings and resulted in a reduction in dividend payouts. Earlier this month, the company announced plans to cut approximately 10% of its workforce as part of broader cost-efficiency measures. Although oil prices saw a modest rebound following geopolitical tensions in the Middle East, the long-term supply-demand dynamics remain uncertain. Jukris emphasised that international capital investments must deliver “healthy returns”, particularly given the elevated geopolitical and operational risks in some of Petronas’ operating regions. The company’s financial performance remains crucial for Malaysia’s fiscal health. Petronas has committed to pay RM32 billion (US$7.5 billion) in dividends to the government in 2024, down from RM50 billion in 2022. Since its establishment in 1974, the company has contributed RM1.4 trillion to the national economy through dividends, taxes and cash payments. Looking ahead, Petronas is targeting an increase in the net present value (NPV) contribution of its international upstream assets to approximately 60% over the next five to 10 years, up from the current range of 40% to 50%. Jukris, who began his tenure with Petronas in 1990, said sustaining production levels will require the development of new fields as existing domestic assets mature. Presently, Petronas produces roughly two million barrels of oil equivalent per day within Malaysia, and about 700,000 barrels per day from its international operations. Despite this overseas push, Jukris remains confident in the longevity of Malaysia’s hydrocarbon reserves. Continued investor interest and recent discoveries suggest there is still untapped potential, including off the coast of Peninsular Malaysia. “For the last 10, 15 years, we’ve been saying that our reserves will last only 15 years,” he said. “So today, we will also last another 15, 20 years.”