Malaysia

The Perak government is taking a closer look at whether to ban the sale of electronic cigarettes (vapes) in the state, with a comprehensive review currently in progress. Menteri Besar Datuk Seri Saarani Mohamad revealed that the issue was recently discussed during a State Executive Council (MMK) meeting. However, he noted that several key areas need deeper consideration before any firm decision is made. The responsibility for further assessment has been assigned to A. Sivanesan, Chairman of the State Human Resources, Health, Indian Community Affairs and Integration Committee. “I’ve spoken to Sivanesan on this matter. While the health implications are a major concern, there are also other factors that must be taken into account,” Saarani said during a press conference following the launch of the Perak Digital Economy Action Plan 2030 and the Perak Smart Cities Blueprint 2040 on Wednesday (June 4). He added that the state has also received a formal request from the vape traders’ association seeking a meeting, indicating that the review process will include industry feedback. Joining the event were State Housing and Local Government Committee chairman Sandrea Ng Shy Ching and State Communication, Multimedia and NGOs Committee chairman Mohd Azlan Helmi Helmi. Saarani shared that findings from the review are expected to be tabled at the next MMK meeting, and will encompass a wide range of perspectives — including public health considerations and the potential economic impact on vape business owners and related stakeholders. This isn’t the first time the issue has come up. Saarani previously mentioned that a decision was anticipated during the MMK meeting on May 28, but it has now been postponed to allow for a more detailed study. -Bernama

MALACCA: Huat Lai Resources Bhd, one of Malaysia’s largest egg and poultry producers, won praise today from international NGO Lever Foundation for its new plans to develop the country’s largest cage-free egg production facility. Set to launch in Q4 2025, the expansive Malacca operation will house 200,000 layers in a multi-tier aviary system, positioning the company at the forefront of sustainable egg production in Southeast Asia. The transformative project represents a significant expansion of Huat Lai’s cage-free operations, which began with its Singapore subsidiary Chew’s Agriculture Pte Ltd in 2012. From its humble beginnings over 30 years ago as a modest poultry farm, Huat Lai has grown into one of Malaysia’s leading poultry producers. Ten of its egg production barns, which together house 200,000 birds, will transition to cage-free systems over the next few months, creating what will be Malaysia’s largest cage-free egg operation. The new facility will more than quadruple the company’s current cage-free capacity of 60,000 hens, creating a more affordable and reliable cage-free egg supply chain for the Malaysian and overseas markets. “In the past two to three years we’ve seen a remarkable shift in corporate demand for cage-free eggs,” said Edvin Lim, Business Development Manager of Huat Lai Group. “While consumers have long shown interest in animal welfare and sustainable sourcing, the corporate sector—hotels and retailers in particular—have driven the recent surge in demand. Clients now expect 100% cage-free supply once they make the switch, including shell, liquid, and powder egg.” Dozens of food companies in the country have committed to sourcing only cage-free eggs, including retailers such as MYDIN, Jaya Grocer, AEON Malaysia and Village Grocer, hospitality groups such as Sunway Hotels & Resorts and Hatten Hotels, and restaurant brands such as Old Town White Coffee and O’Brien’s. “Huat Lai’s evolution from a small family business to becoming Malaysia’s pioneer in large-scale cage-free egg production demonstrates remarkable entrepreneurial vision,” said Bagas Kusuma Jati, Sustainable Supply Chain Manager at Lever Foundation, which worked with Huat Lai on its cage-free egg expansion. “Their commitment to maintaining core values while boldly investing in sustainable production systems is an excellent model for the industry. The courage to make such significant infrastructure investments ahead of market demand reflects the forward-thinking leadership needed throughout Southeast Asia’s food production sector.” “You need to take a bold move before your clients demand it. Our new facility in Malaysia will allow us to supply cage-free eggs at a larger scale, ensuring a consistent supply for our clients,” Edvin Lim explained. He further noted that corporate customers transitioning to cage-free sourcing “rarely return to traditional caged eggs.” Meanwhile, Daniel Lim, Sales Manager of Huat Lai said “We are going beyond providing steady and reliable food sources to the nation. With the cage-free initiative, we are setting meaningful standards for Malaysia’s poultry industry.” A survey conducted by leading Asian consumer research agency GMO Research found that 77% of Malaysian consumers believe eggs sourced by restaurants, retailers, packaged foods producers and similar businesses should come from cage-free hens. The survey also found that 62% of consumers are willing to pay more for cage-free eggs, with more than half accepting a cost premium of 10-25%. Cage-free egg production, in which hens are given the freedom to move in open environments, improves animal welfare and food quality. Exhaustive research by the European Food Safety Authority found that cage-free egg farms have up to a 25 times lower rates of contamination by key Salmonella strains. An increasing number of consumers have also been leaving eggs off their plates as the best way to help laying hens.

Petroliam Nasional Berhad (Petronas) has dismissed reports suggesting the Malaysian national oil company is exiting its operations in Canada, affirming its continued investment and strategic presence in the North American market. “Any reports that claim Petronas is leaving Canada are inaccurate,” the company stated in response to a query from Bernama. The clarification follows media speculation on Tuesday which indicated that Petronas was evaluating strategic options for its Canadian subsidiary, formerly known as Progress Energy Resources Corp. According to sources cited in those reports, these options may have included a potential sale. Petronas reaffirmed its commitment to ongoing projects in Canada, highlighting its upstream operations through the North Montney Joint Venture, as well as its significant role in the LNG Canada project based in Kitimat, British Columbia. “With LNG Canada preparing for its first cargo this year, Petronas is proud to be providing lower-carbon, reliable Canadian liquefied natural gas to support global energy markets for decades to come,” the company added. Petronas acquired Progress Energy in 2012 for approximately US$5.3 billion, marking a substantial expansion of its shale gas portfolio and reinforcing its global gas supply capabilities. Currently, Petronas holds a 25 per cent equity stake in the LNG Canada project—a major liquefied natural gas joint venture alongside industry leaders Shell plc, PetroChina Co Ltd, Mitsubishi Corporation, and Korea Gas Corporation. -Bernama

Malaysia has appointed Tan Sri Muhammad Shahrul Ikram Yaakob, former Secretary-General of the Ministry of Foreign Affairs, as its new Ambassador to the United States, according to an official statement from the Foreign Ministry. His Majesty Sultan Ibrahim, the King of Malaysia, presented the Letter of Credence to Tan Sri Muhammad Shahrul at a formal ceremony held at Istana Negara on Tuesday. The ceremony was also attended by Deputy Foreign Minister Datuk Mohamad Alamin and current Foreign Ministry Secretary-General Datuk Seri Amran Mohamed Zin. With a distinguished career spanning more than 35 years in diplomatic service, Tan Sri Muhammad Shahrul brings a wealth of experience to his new posting in Washington D.C. He served as Secretary-General of the Foreign Ministry from 6 January 2019 until 31 May 2022. A native of Pahang, Tan Sri Muhammad Shahrul holds a Bachelor of Science (Honours) in Ecology from Universiti Malaya. He also completed the Advanced Management Programme at Harvard Business School in 2009. He commenced his career in 1988 as an Administrative and Diplomatic Officer. Over the years, he has held numerous key roles, including Ambassador to Qatar and Austria, and Malaysia’s Permanent Representative to the United Nations in New York. His previous diplomatic assignments also included postings at Malaysia’s embassies in Vienna, Washington D.C., and Beijing. Domestically, he has served in several senior capacities, notably as Deputy Secretary-General (Bilateral Affairs), Director-General of the ASEAN-Malaysia National Secretariat during Malaysia’s ASEAN Chairmanship in 2015, and Undersecretary of the Multilateral Political Division. Tan Sri Muhammad Shahrul’s extensive international and bilateral experience is expected to enhance Malaysia’s diplomatic engagements with the United States, particularly in the areas of economic cooperation, regional security, and multilateral collaboration. -Bernama

Muhibbah Engineering Bhd’s earnings outlook has received a significant boost following recent developments in its airport operations in Cambodia, alongside resilient demand in its construction and oil and gas segments. CIMB Research maintains a positive stance on the group’s prospects, citing both the strategic value of its marine and energy infrastructure exposure and the incremental earnings potential from a newly concluded airport-operating agreement. Muhibbah, through its 21% equity stake in Cambodia Airports, stands to benefit from a landmark settlement reached on 27 March between Cambodia Airports and the Cambodian government. Under the terms of the agreement, Cambodia Airports will receive US$140 million in compensation for its historical investments in Phnom Penh International Airport (PPIA), of which approximately US$56 million was disbursed in March. This agreement marks a pivotal transition for Muhibbah’s airport operations in Phnom Penh, with PPIA set to be replaced by the new Techo International Airport (TIA). Cambodia Airports has entered into a 15-year management services agreement with Cambodia Airport Investment Co to oversee operations at TIA, which is scheduled to commence service on 9 September. The contribution of this new concession to Muhibbah’s earnings is yet to be reflected in CIMB’s current valuation model, pending further updates on key operational and financial metrics. Beyond aviation, Muhibbah continues to demonstrate a strong construction pipeline, with a RM2.6 billion active bid book. Infrastructure projects account for 50% of this pipeline, while waste-heat energy initiatives represent 38%, and oil and gas projects make up the remaining 12%. This diversified order book supports the group’s earnings visibility amid near-term uncertainties, including those stemming from the ongoing PETRONAS–Petroleum Sarawak dispute. Meanwhile, Favelle Favco Bhd—Muhibbah’s 65%-owned subsidiary—is currently bidding for approximately RM3 billion in crane supply contracts. The Middle East remains a key growth region, contributing over RM100 million in prospective orders. Mega developments such as Saudi Arabia’s New Murabba mixed-use project and infrastructure requirements for the Neom 2029 Asian Winter Games are driving demand. CIMB Research has reiterated its “Buy” rating on Muhibbah Engineering, setting a target price of RM1.10 per share. The anticipated re-rating catalysts include incremental income from the Cambodian airport operations and growing crane orders from the Middle East. However, the research house also notes downside risks, particularly a potential slowdown in oil and gas sector activity, which could temper the group’s broader earnings trajectory. -The Star

KPJ Healthcare Bhd is poised for earnings momentum in the second half of 2025, driven by continued improvements in operational efficiency and cost-optimisation measures, according to analysts. Kenanga Research reported that the group’s management remains confident of narrowing losses at its newer hospitals, though the scale of improvement may be modest. In the first quarter of 2025 (1Q25), KPJ’s performance reflected mixed indicators compared to the same period last year. While core net profit and minority interests stood at RM630 million—meeting analysts’ expectations—other operational metrics revealed both strengths and weaknesses. Notably, average revenue per inpatient rose 10% year-on-year, accompanied by increases in outpatient throughput, surgeries, and operational beds. However, bed occupancy rates and inpatient numbers declined in the same period. Kenanga noted that first-quarter losses at KPJ’s new hospitals have narrowed by RM5 million to RM6 million compared to 1Q24. For the full year 2024 (FY24), estimated pre-tax losses at these facilities reduced to between RM90 million and RM99 million—an improvement of RM40 million to RM50 million. Looking ahead, KPJ aims to achieve 4,200 operational beds by the end of 2025. Beyond this, the group is targeting a total of over 6,000 beds within the next five years, primarily through brownfield expansion already incorporated into current forecasts. Further cost efficiency gains are expected as KPJ nears the completion of its central procurement implementation. With more than 85% of its hospitals now integrated into the central system, the group anticipates continued enhancement in cost control. Kenanga Research also provided a comparative view on KPJ’s valuation. The stock is currently trading at 36 times and 31 times forecast FY25 and FY26 earnings, respectively. In contrast, regional peers such as Thailand’s Bumrungrad Hospital and Bangkok Dusit Medical Services are trading at more modest FY26 PE ratios of 17 and 20 times, respectively. Both Thai operators also boast superior EBITDA margins, with Bumrungrad and Bangkok Dusit projected at 38% and 24% respectively for FY25—significantly higher than KPJ’s. Kenanga maintained its earnings forecast, a target price of RM2.50 per share, and an “underperform” rating on the stock. However, CGS International Research (CGSI Research) retained a more bullish view, reaffirming its “add” call with an unchanged target price of RM3.35 per share. The firm expects a recovery in patient volumes through the remainder of FY25. Management has also revealed ongoing internal initiatives aimed at enhancing operational insight. Since 2023, KPJ has been classifying its hospitals by case-mix, allowing for better standardisation of resource allocation and clearer understanding of cost structures across its network. Additionally, KPJ confirmed that none of its 30 hospitals had been removed from any insurance panels, despite ongoing discussions with insurers around controlling healthcare costs in Malaysia. Patient volume is reportedly picking up at its recently launched Kuala Selangor facility. -The Star