Malaysia

KUALA LUMPUR: Ecomate Holdings Bhd has announced its strategic expansion into the information and communications technology (ICT) sector through the acquisition of a majority interest in Progressive Computer Systems Sdn Bhd (PCS), marking a significant diversification from its core furniture manufacturing business. The company entered into a definitive agreement on Friday to acquire a 60 percent stake in PCS from its sole shareholder, Law Seng Peng, for a total cash consideration of RM8.4 million. According to the Bursa Malaysia filing, the acquisition is backed by a profit guarantee, under which Law has committed that PCS will achieve a minimum profit after tax of RM3 million annually for the financial years ending 28 February 2026 through to 2028. In the event PCS incurs a loss after taxation during the guarantee period, Law is obligated to compensate Ecomate with RM1.8 million for each affected financial year, corresponding to Ecomate’s 60 percent equity interest. PCS is engaged in the marketing and servicing of computers and related peripherals, as well as software sales, development, and programming services. For the financial year ended 29 February 2024 (FY2024), PCS recorded a profit after tax of RM2.03 million, a decline from RM4.8 million in FY2023, but marginally higher than the RM2.01 million achieved in FY2022. Revenue for FY2024 increased to RM22.65 million, compared to RM20.02 million in FY2023 and RM20.22 million in FY2022. Ecomate stated that the RM8.4 million purchase consideration represents a price-to-earnings ratio of 2.8 times based on the guaranteed profit figures. The group expects the ICT business to contribute at least 25 percent of its earnings or result in a diversion of at least a quarter of its net assets, as it seeks to secure additional projects to further expand the segment. In tandem with the acquisition, Ecomate has also proposed a bonus issue involving up to 358.03 million new shares, on the basis of one bonus share for every existing share held. Additionally, the company will issue 358.03 million free warrants on the same basis. While the exercise price of the warrants has yet to be finalised, Ecomate indicated that full exercise of the warrants could potentially raise RM222 million, which will be utilised to support the group’s working capital requirements. Ecomate’s shares closed unchanged at RM1.29, giving the group a market capitalisation of RM461.85 million. -The Edge Malaysia

Sime Darby Property Bhd has taken a significant step in advancing employee welfare by announcing an 80 per cent increase in the minimum living wage for its B40 employees. Effective in 2024, the new wage level of RM2,700 per month represents a marked rise from the previous minimum of RM1,500. Economists suggest this move could serve as a new benchmark within the private sector, particularly for companies seeking to align compensation with the rising cost of living. While the revised wage still falls short of the RM3,100 monthly living wage recommended by Bank Negara Malaysia and government-linked investment companies (GLICs), it has been welcomed as a progressive development. Economist Dr Geoffrey Williams described the increase as a positive initiative, acknowledging that it demonstrates the capacity of large corporates—especially GLICs and government-linked entities—to improve the financial standing of lower-income workers. On 1 May, six GLICs, namely Khazanah Nasional Bhd, Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (KWAP), Lembaga Tabung Angkatan Tentera and Lembaga Tabung Haji, implemented a RM3,100 living wage policy for all permanent Malaysian employees under the Finance Ministry’s GEAR-uP initiative. This framework seeks to consolidate and optimise GLIC contributions to national economic growth. “The RM2,700 offered by Sime Darby Property is slightly below the RM3,100 standard, but it remains a substantial improvement and a meaningful threshold,” said Williams. “It clearly benefits their lower-paid staff, though greater transparency is needed in terms of how many employees will be impacted.” As of 1 February, Malaysia’s national minimum wage stands at RM1,700 for businesses with five or more staff, as well as enterprises within the Malaysia SME and Small to Medium Enterprises (MASCO) category. Companies with fewer than five employees are required to comply with the new minimum by 1 August. Putra Business School’s economic analyst, Professor Dr Ahmed Razman Abdul Latiff, praised Sime Darby Property’s decision, observing that RM2,700 is near the national median income level. He noted the broader socioeconomic implications of such a wage increase, highlighting not just improved living standards but also higher contributions to the Employees Provident Fund, which could significantly enhance post-retirement quality of life. “This is a step forward that should be emulated by other major corporations, especially those with large workforces in urban areas. It will also help close the wage gap between senior management and rank-and-file employees,” said Razman. Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, remarked that the decision could establish a new standard in wage setting and support talent retention in a competitive labour market. He pointed out that own-account workers (OAWs) have steadily grown at an annual rate of 2.9 per cent from 2019 to 2024, reaching 3.1 million people. “Younger demographics are increasingly opting for gig work and self-employment. Competitive and stable wages can be a powerful draw for talent, although factors like career development and flexible working hours remain equally important,” he said. Afzanizam added that while RM2,700 is a commendable start, income adequacy varies depending on geographic location and household composition. Referring to EPF’s Belanjawanku guide, he explained that a single individual in the Klang Valley typically requires RM2,800 per month, while a family with one child may need more than RM6,400 to meet basic living expenses. “Wage policies must reflect both skill level and real income needs, taking into account the local cost of living. Policymakers must explore diverse strategies to ensure living costs are kept in check,” he added. Sime Darby Property chairman Datuk Rizal Rickman Ramli emphasised that the decision was made in response to the rising cost of living and reflects the company’s commitment to the financial wellbeing of its workforce. “This initiative highlights our commitment to financial stability and the well-being of our workforce, particularly those most impacted by rising living costs,” he stated in the group’s Integrated Annual Report 2024. As at 28 March, Sime Darby Property’s major shareholders included Amanah Saham Bumiputera (36.73 per cent), EPF (11.08 per cent), KWAP (6.25 per cent), and PNB (5.23 per cent). -Business Times

KUALA LUMPUR: Dagang NeXchange Bhd has announced the appointment of Marlishiraz Ramli, also known as Shiraz Ramli, as Chief Executive Officer of its information technology division, effective 1 June. In her new role, Shiraz will be responsible for leading the group’s digital transformation agenda and overseeing critical IT initiatives, including the recently established cloud joint venture with Gamuda Bhd. The new venture, Gamuda DNeX Cloud, is designed to deliver secure Google Distributed Cloud services to both public and private sector clients across Malaysia. Shiraz will report directly to Group Chief Executive Officer Faizal Sham Abu Mansor. DNeX noted in its official statement on Tuesday that Shiraz brings to the role a wealth of experience acquired from global technology leaders such as Microsoft, Google and SAP, as well as government-linked entities including Prasarana and Telekom Malaysia. Prior to her appointment, she served as Regional Director for Asia within Microsoft’s Worldwide Public Sector division. As CEO of the IT division, Shiraz will work closely with the Group Head of IT, Jasbendarjit Kaur, and collaborate with strategic partners such as Google, Gamuda, Havelsan and Shanghai E&P International. DNeX operates across multiple sectors, including semiconductor manufacturing, information technology and e-commerce, and oil and gas exploration. -The Edge Malaysia

JOHOR : A dynamic period of growth and opportunities abound at award-winning destination Desaru Coast as it embarks on its next phase of new offerings and developments to strengthen its position as a leading destination for tourism and resort living. Under the Desaru Coast, Next Level growth agenda, the destination is rolling out a multi-phase expansion programme that will see i) the introduction of global leader in luxury hospitality, Mandarin Oriental as the new operator of its iconic resort property; ii) upcoming resorts and service residences by new investors; iii) premium marina facilities with sailing events and yacht charters and a host of international events; and iv) community-uplifting initiatives. Legacy meets legacy— Mandarin Oriental, Desaru Coast The arrival of Mandarin Oriental marks a significant milestone in the new phase for Desaru Coast. Mandarin Oriental will operate the iconic beachfront property that was the last masterpiece of legendary architect Kerry Hill. The resort, under the management of Mandarin Oriental, will offer a tranquil retreat combining refined luxury, holistic wellness, and exceptional hospitality. Mandarin Oriental will commence managing the property from June 2025, with a full rebranding in January 2026 as Mandarin Oriental, Desaru Coast – making this the first Mandarin Oriental beach resort in Southeast Asia. It is also currently the only Mandarin Oriental beach resort in Southeast Asia with a residential component. The 40 upcoming branded residences will provide owners access to Mandarin Oriental’s legendary service, enhancing the property’s appeal as a year-round destination for luxury living. The Chief Minister of Johor, YAB Dato’ Onn Hafiz Ghazi, who witnessed the signing ceremony of the hotel management agreement at the resort, said, “Mandarin Oriental has created and defined some of the world’s most renowned properties and destinations across the world, and this, being their choice for their second property in Malaysia, is a testament to Johor’s immense potential. There is no better brand to lead the reintroduction of this iconic beachfront resort property as we prepare for Visit Johor Year 2026.” Laurent Kleitman, Group Chief Executive of Mandarin Oriental, said, “Mandarin Oriental, Desaru Coast represents a significant step in our strategic vision to bring the Group’s legendary service and crafted experiences, that resonate deeply with today’s luxury traveller, to new and exceptional locations.” Welcoming investors, backed by Johor-Singapore Special Economic Zone Policies Positioned at the heart of Asia Pacific’s booming tourism sector, Desaru Coast’s world class infrastructure, diverse offerings and strategic location within the Johor-Singapore Special Economic Zone (Johor-Singapore SEZ) bodes well for the resort, enhancing its accessibility to high-value travellers from Singapore and the region who are seeking authenticity, accessibility, and premium experiences. Dato’ Onn Hafiz said, “Initiatives like the Johor-Singapore SEZ enable Desaru Coast to become a premium resort destination for investors looking to be key players in this region. In turn, we recognise the efforts Desaru Coast has made in investing and re-investing in Johorean people and businesses continuously as part of its 30-year masterplan.” The addition of like-minded partners and investors, who share Desaru Coast’s ambition to shape the integrated resort into an innovative, future-forward coastal landmark, not only strengthens the destination’s regional positioning but also reflects the shared commitment to curating exceptional experiences and driving long-term economic growth through high-value tourism. Dato’ Mohamed Nasri Sallehuddin, Chairman of Destination Resorts and Hotels, said, “All of these are amplified by our alignment with national and state-level priorities — particularly the Johor–Singapore Special Economic Zone, which presents meaningful opportunities to further embed Desaru Coast within a broader cross-border flow of talent, investment, and high-value tourism.” Desaru Coast began welcoming third-party investors in 2023, marking a new era of collaborative growth, strengthened momentum, and diverse offerings. Over the next five years, the destination will see the addition of new keys, facilities, and curated experiences, including resort and residential offerings as well as other hospitality components. These developments will be driven by new investors and leading Malaysian hospitality players. Riyaz Group is set to deliver Dash Resort Desaru Coast and branded residences, while ECM Libra Group will introduce an Ormond-branded hotel along with managed branded residences. As these new projects take shape, Minor International — the destination’s first foreign investor — is also exploring further opportunities to expand its footprint in Desaru Coast. Karina Ridzuan, (Interim) Group Chief Executive Officer of Destination Resorts and Hotels, said, “Strategic partnerships with reputable brands such as Mandarin Oriental, elevated enhancements at the destination, along with differentiated events and programmes year-round, will drive sustainable growth, boost tourism, uplift communities, and attract investments – not only for Desaru Coast, but also for the State of Johor. Our next chapter brings innovation, collaboration, and unique guest experiences for all.” A canvas for international events and curated experiences Earlier this year, Desaru Coast inked a partnership with Singapore’s ONE°15 Marina to introduce premium marina facilities and curated sailing experiences at the Desaru Coast Ferry Terminal, expected to be operational by September 2025. This partnership will allow visiting yachts improved access to the Malaysian eastern coastline, while offering sailing events and luxury yacht charters designed to attract the global yachting community. Large-scale international events like the recently concluded Desaru Coast Multi Sport Festival presented by IRONMAN and the upcoming Ombak Festival in September 2025 — Desaru Coast’s signature coastal celebration of music, arts, and culture which is anticipated to draw over 8,000 visitors this year — further enrich guest experiences across the destination. Empowering people, uplifting communities As part of its long-term commitment to local community development, Desaru Coast also continues to invest in social impact initiatives like its school programmes that provide resources and learning opportunities to equip local students with the knowledge and skills needed for future success. Plans are also underway for the establishment of a Centre of Excellence focused on tourism and hospitality training, an initiative under the Johor Talent Development Council. This hub for training, innovation, and skills development will empower locals and aspiring professionals with specialised skills, strengthening the region’s talent pipeline and fostering inclusive economic growth.

Tiang Boon Hwa, the founder and managing director of N2N Connect Bhd, has solidified his position in the company by acquiring an additional 3.76% stake for RM8.715 million, making him the largest shareholder of the direct market access platform provider. Following the acquisition, Tiang now holds a direct stake of 6.88% in N2N. Combined with the 19.65% held indirectly through his spouse, Lai Su Ping, and their jointly controlled entity N2N Connect Holdings Sdn Bhd, the couple commands a collective stake of 26.53% in the company. This positions them ahead of China-based Hundsun Holdings Ltd, which owns 23.66%, as N2N’s top shareholders. Another notable stakeholder is Quah Choon Wah, who holds a 7.35% interest in the firm. According to N2N’s filing with Bursa Malaysia, Tiang acquired 21 million shares via a direct business transaction on June 3 at 41.5 sen apiece — a 3.61% premium over the stock’s closing price of 40 sen that same day. The move comes in the wake of heightened attention on N2N, after a hacking incident in April affected several broker clients. The Edge had previously reported that N2N is one of the two main providers of direct market access platforms for Malaysia’s stockbroking industry. Following the cyberattack, N2N issued an advisory to clients recommending enhanced security protocols. Bursa Securities subsequently issued a query, prompting a disclosure from N2N on April 27. In its response, the company affirmed its commitment to working with regulators and assured that the incident had no material financial or operational impact. Despite the recent cybersecurity concerns, investor confidence appears to be holding steady. N2N shares closed 2.5 sen higher on Wednesday, up 6.25% to 42.5 sen, giving the ACE Market-listed company a market capitalisation of RM237.24 million. -The Edge Malaysia

BIG Caring Group, one of Malaysia’s largest retail pharmacy chains, is embarking on a major digital transformation initiative by adopting RISE with SAP on Amazon Web Services (AWS). This strategic implementation is designed to establish a unified, scalable cloud-based platform that seamlessly connects its retail operations across more than 500 outlets nationwide.   The Road to Digital Integration The group’s digital journey began in 2019, when Caring Pharmacy—prior to merging with BIG Pharmacy—faced limitations with its legacy on-premise ERP system. These challenges included system capacity constraints and complicated data processing, which impeded effective collaboration across departments. To address these issues and better support its expanding network, Caring Pharmacy implemented SAP S/4HANA Retail in 2021, streamlining core business functions such as inventory management, supply chain processes, and customer relationship management (CRM). Following the merger with BIG Pharmacy in 2023, operational complexities increased, prompting the newly formed BIG Caring Group to accelerate its digital transformation. The goal was to unify its systems under a secure, agile, and scalable cloud infrastructure. Highlighting the significance of this transition, BIG Caring Group’s Chief Information Officer, Ooh Chin Boon, said: “Integrating our diverse retail operations onto a unified cloud platform is a crucial milestone for us. We have selected RISE with SAP on AWS to help us access more accurate and comprehensive data across the entire group, so that we can respond with more agility to customer demands and supply chain volatility. This strengthens our capacity to deliver enhanced customer experiences and future proof our business.” Embracing Cloud-Based Innovation By deploying RISE with SAP on AWS, BIG Caring Group aims to centralize data from its various divisions into a single cloud platform. This integration is expected to drive higher operational efficiency by minimizing manual work, lowering costs, and enabling faster decision-making across its business units. The cloud-based model also offers increased flexibility, empowering the company to scale and adapt quickly to evolving market conditions and customer expectations. Redefining the Future of Pharmacy Retail With a more advanced digital foundation in place, BIG Caring Group is positioning itself to harness technologies such as generative AI and predictive analytics to elevate the retail pharmacy experience in Malaysia. Plans include leveraging real-time data to optimize stock levels, using AI to deliver personalized customer interactions, and enhancing supply chain efficiency with IoT and machine learning technologies. Commenting on the initiative, Vipin Chandran, Managing Director of SAP Malaysia, stated: “SAP Business AI is a huge enabler of automation and innovation for our customers, and being in the cloud is the first step to unlocking its full potential.” On BIG Caring Group’s partnership with SAP, he added: “With the group’s massive scale of operations in the country, there is so much opportunity that we can uncover together and reimagine retail experiences in Malaysia.” -FutureIoT