Malaysia

KUALA LUMPUR: Malaysia has secured RM4.68 billion in potential investments from Japan during its participation at Expo 2025 Osaka, reflecting the nation’s growing appeal as a strategic investment destination in Southeast Asia. The Malaysian Investment Development Authority (MIDA), in a statement today, announced that this figure forms a substantial 56.9% of the RM7.39 billion in total investment leads generated so far under the country’s involvement in the global event. The milestone was unveiled at the official opening of the Malaysia Pavilion, which was officiated by Deputy Prime Minister Datuk Seri Fadillah Yusof and attended by Deputy Minister of Investment, Trade and Industry, Liew Chin Tong. Expo 2025 Osaka, widely regarded as one of the world’s foremost economic and cultural platforms, serves as a key opportunity for participating nations to project their economic strengths and policy direction. Malaysia’s participation is spearheaded by the Ministry of Investment, Trade and Industry (MITI), reflecting a unified whole-of-government strategy. Commenting on the development, Liew highlighted the strategic role of the Expo in positioning Malaysia as a forward-looking and innovation-led economy. “The investments secured through MITI and MIDA reflect investors’ growing confidence in our green industries, advanced manufacturing, and digital economy,” he said. MIDA Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid noted that the results underscore Malaysia’s compelling investment proposition and the strategic trust extended by Japanese counterparts. “As we deepen bilateral ties, MIDA will maintain a proactive approach in facilitating high-quality investments aligned with national goals in clean energy, innovation, and sustainable development,” he said. “The Expo is more than a platform for showcasing our capabilities; it is a critical venue to prove our seriousness in driving transformative investments, and MIDA is proud to lead this charge,” he added. The RM4.68 billion in investment potential was the outcome of a week-long investment mission to Japan, covering Kyoto, Kobe, Osaka, and Tokyo, held from 12–19 April 2025. Over the course of the six-month Expo, the Malaysia Pavilion is projected to attract 1.5 million visitors. The programme includes more than 150 business-related engagements such as investor roundtables, memorandum of understanding (MoU) signings, product launches, and industry forums. Malaysia’s participation is being undertaken at a national scale, involving 21 ministries, 70 agencies, and representation from all 13 states — underscoring a comprehensive and collaborative approach to international engagement. MITI, alongside its agencies including MIDA, has set a target of RM13 billion in investment and trade outcomes from its participation at Expo 2025 Osaka. The strategy is focused on seven high-impact sectors: sustainable agriculture, renewable energy, smart living, green manufacturing, industrial reform, environmental management, and the halal industry. -Bernama

KUALA LUMPUR: MAB Kargo Sdn Bhd (MASkargo), in partnership with IAG Cargo and Qatar Airways Cargo, has announced the formation of a strategic global cargo joint business, scheduled to commence in late 2025, subject to the necessary regulatory approvals. In a joint statement, the three carriers confirmed that the collaboration aims to introduce expanded routing capabilities, improved operational flexibility, and enhanced connectivity for customers operating within the global air freight sector. The proposed joint business model will provide enhanced routing flexibility and increased capacity options across key regions, including Asia Pacific, the Middle East, Africa, the Indian Subcontinent, Europe, and the Americas. By combining their networks, the carriers will offer seamless access to routes previously unavailable under a single booking, opening up new avenues for international trade. Initially, the partnership will concentrate on high-demand cargo markets, with further expansion into additional territories planned for subsequent phases, contingent on regulatory clearance. To support a smooth implementation, the three cargo operators intend to progressively align their systems, commercial offerings, and operational processes. The collaboration is designed to provide customers with a more integrated, efficient, and reliable logistics solution than traditional interline arrangements. Furthermore, MASkargo, IAG Cargo and Qatar Airways Cargo will soon formalise individual agreements with the United Nations World Food Programme, in support of global humanitarian efforts to combat hunger. MASkargo Chief Executive Officer, Mark Jason Thomas, stated that the partnership represents a significant development for both MASkargo and the broader cargo aviation industry. “This partnership goes beyond expanding our network; it represents a redefinition of how air cargo is transported globally,” he said. IAG Cargo Chief Executive Officer, David Shepherd, echoed the sentiment, highlighting the strategic advantages of the joint business. “By establishing a unified network, we are unlocking new commercial possibilities for our customers. This collaboration delivers a level of efficiency, coordination and reliability far exceeding what traditional interline agreements can offer,” he added. The launch of the joint business remains subject to regulatory approval, with commencement targeted for the end of 2025. -Business Times

KUALA LUMPUR: CIMB Securities Bhd has revised downwards its earnings projections and year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI), following a weaker-than-expected first-quarter earnings season for 2025. The research house cut its 2025 core net profit growth forecast for the benchmark index sharply to 3.4%, a notable decline from the previous estimate of 9.3%. The projection for 2026 was also marginally reduced to 6.5% from 6.6%. Reflecting the downgraded earnings outlook, CIMB trimmed its end-2025 FBM KLCI target to 1,560 points, down 6% from the earlier forecast of 1,657 points. This revision is based on an unchanged price-to-earnings (P/E) multiple of 14.7 times—equivalent to 0.25 standard deviation above the historical mean. The downward adjustment was driven primarily by a less optimistic outlook for the banking sector and weaker earnings prospects for Sime Darby Bhd and Petronas Chemicals Group Bhd. CIMB noted that the KLCI is currently trading at a 12-month forward P/E of 12.7 times, coupled with an attractive dividend yield of 4.2%. Nonetheless, the firm cautioned that potential gains could be limited due to a range of macroeconomic headwinds. These include the newly implemented 10% baseline tariffs on all US imports effective 2 April, the expiry of the 90-day reprieve on heightened US reciprocal tariffs on 9 July, anticipated hikes in domestic electricity tariffs in July, and possible increases in sales and service tax (SST) as well as RON95 fuel prices in the second half of the year. According to CIMB’s analysis, only six companies under its coverage outperformed expectations during the quarter, largely driven by higher-than-expected margins and stronger sales. In contrast, 25 companies fell short of estimates due to a mix of foreign exchange losses, tepid sales, cost pressures associated with expansion, weaker loan growth, softer net interest margins, and dilution losses from Chinese associates. The earnings surprise ratio, which measures the number of outperformers against underperformers, fell further to 0.24 times. This marks a continued decline from 0.6 times in Q4 2024, 0.7 times in Q3 2024, and 1.1 times in Q2 2024. Furthermore, 17% of FBM KLCI constituents reported results that fell below expectations. While CIMB estimates a 4% quarter-on-quarter increase in core net profit for the companies under its coverage—driven by the banking, construction, consumer, gaming, and utilities sectors—first-quarter earnings declined 4% year-on-year. This was largely attributable to weaker results in the automotive, oil and gas, and gaming sectors, which collectively accounted for 94% of the year-on-year decline. In light of these developments, CIMB downgraded its outlook on both the oil and gas and plantation sectors to ‘neutral’ from ‘overweight’. This adjustment was primarily influenced by the downgrade of Petronas Chemicals Group Bhd to ‘hold’ from ‘buy’, reflecting weak short-term earnings visibility, and SD Guthrie Bhd’s downgrade to ‘hold’ from ‘buy’, citing a lack of near-term catalysts. Given ongoing uncertainty around tariffs and broader macroeconomic pressures, CIMB said it continues to favour stocks with resilient earnings profiles, compelling dividend yields, or specific catalysts—whether valuation-driven or event-related. In line with this, its top large-cap recommendations now include IJM Corporation Bhd, Maxis Bhd, and IOI Corporation Bhd, replacing SD Guthrie Bhd and IHH Healthcare Bhd. Within the small- to mid-cap segment, Axis REIT has been added, replacing Muhibbah Engineering Bhd and Genetec Technology Bhd. CIMB’s current large-cap top picks are CelcomDigi Bhd, Gamuda Bhd, Public Bank Bhd, RHB Bank Bhd, Tenaga Nasional Bhd, Maxis Bhd, IOI Corporation Bhd, IJM Corporation Bhd, and 99 Speed Mart Bhd. For small- to mid-cap selections, its picks include KJTS Group Bhd, Malaysian Resources Corporation Bhd, Axis REIT, Farm Fresh Bhd, and Mah Sing Group Bhd. -The Edge Malaysia

The High Court of Singapore has dismissed an appeal by the now-defunct BSI Bank Ltd to strike out a civil claim totalling US$394 million brought by 1Malaysia Development Berhad (1MDB) and its subsidiary, Brazen Sky Ltd. This landmark decision clears the way for the full hearing of the case, which forms part of Malaysia’s broader international effort to recover misappropriated sovereign wealth. In a ruling delivered on 27 May, Justice Andre Maniam rejected BSI’s appeal on all grounds. The court also ordered the bank to cover the legal costs incurred by 1MDB and Brazen Sky in relation to the appeals. The ruling was confirmed in a statement issued by London-based Byfield Consultancy, acting on behalf of 1MDB. “We are pleased this application has been denied and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund,” a spokesperson for 1MDB’s board said on Monday. Established in 2009 under the administration of former prime minister Datuk Seri Najib Razak, 1MDB became embroiled in one of the largest global financial scandals, attracting investigations across more than a dozen jurisdictions—including the United States, Switzerland, the United Arab Emirates, and Singapore. Najib was subsequently convicted in a related case and sentenced to 12 years’ imprisonment and a RM210 million fine, later reduced to six years and RM50 million following a partial pardon. The civil suit in Singapore, initiated on 2 May, alleges that BSI Bank and several of its former officers played a critical role in facilitating the unauthorised movement of funds and laundering of proceeds, thereby enabling the misappropriation of substantial assets belonging to 1MDB. BSI, a wholly-owned subsidiary of BSI AG in Switzerland—formerly owned by Brazil’s BTG Pactual and now part of Zurich-based EFG International—has already been convicted of money laundering offences by Swiss authorities. Swiss prosecutors are currently refining their findings to reflect the specific criminal activities conducted against 1MDB entities. In parallel to the Singapore High Court proceedings, the joint liquidators of Brazen Sky have initiated further applications to pursue related claims against BSI Bank and its former executives. The litigation is a critical component of 1MDB’s broader global asset recovery initiative, aimed at restoring billions in misappropriated public funds to the Malaysian people. “Through this action and others around the world, we will ensure the rightful recovery and restitution of these assets back to the Malaysian people,” the 1MDB board spokesperson added. Legal representation for 1MDB and Brazen Sky includes King’s Counsel Ng Jern-Fei, supported by Tan Jun Hong of Duxton Hill Chambers and a team from LVM Law Chambers LLC comprising Qabir Sandhu, Law May Ning, and Clara Lim. Lim Chee Wee Partnership, based in Kuala Lumpur, serves as global coordinating counsel for all 1MDB-related asset recovery matters. Angela Barkhouse and Toni Shukla of Kroll (Cayman) Ltd act as joint liquidators for Brazen Sky, represented in Singapore by Oon & Bazul LLP. -The Edge Malaysia

NCT Group of Companies (NCT Group), through its Invest NCT initiative, has entered into a strategic partnership with Canadian venture capital firm, Intrinsic Venture Capital, to establish a RM615 million fund aimed at accelerating the growth of high-impact startups. This initiative, part of the Malaysia Invest NCT programme, is designed to fast-track industrial innovation and reinforce the country’s economic transformation. The fund will primarily support high-tech and high-growth sectors within the NCT Smart Industrial Park (NSIP), focusing on strategic industries such as semiconductors, medical technology, electronics, green technology, and digital infrastructure. The collaboration was formalised through the signing of a Memorandum of Understanding (MoU) between NCT Group and Intrinsic EO, a global cross-border financial advisory firm. The MoU paves the way for enhanced global financial integration, strengthened digital infrastructure, and market strategy planning—efforts expected to elevate Malaysia’s smart industrial ecosystem competitiveness. Intrinsic EO is backed by Canada’s Intrinsic Group, China’s EqualOcean, and prominent Southeast Asian industry leaders. The firm brings extensive expertise in venture capital, digital transformation, industrial innovation, and localised resource development. It is also among the earliest recipients of the KL20 Golden Pass, a flagship government initiative to position Kuala Lumpur among the world’s top 20 startup ecosystems by 2030. NCT Group Founder and Group Managing Director, Datuk Seri Yap Ngan Choy, emphasised that Invest NCT will offer a flexible industrial property model, including build-to-suit (BTS) and lease-purchase schemes. This will be supported by a capital consortium comprising venture capital, private equity, banking investments, and talent pipelines. “This strategic partnership opens significant opportunities for NSIP and Malaysia’s industrial landscape. It not only enhances the investment appeal of NSIP but also reflects our commitment to sustainable and innovative development,” he said in a statement. Group Chief Strategy Officer of NCT, Dr Neil Foo, highlighted that the launch of the Venture Capital Consortium during the ASEAN 2025 Summit signals a pivotal shift towards a new financing framework guided by the principles of ‘New Money, New Finance’. “NSIP is more than an industrial zone—it is a future-ready development model that can be scaled and replicated across ASEAN,” he added. Chairman of Intrinsic EO, Andrew Sanden, noted that the partnership enables the firm to bring international cross-border investment experience and digital transformation capabilities to a strategic Southeast Asian hub. “Our shared goal is to build an intelligent industrial environment that empowers new companies to access markets and scale effectively across the region, aligning with Malaysia’s role as a regional innovation hub,” he said. Strategically located within the IDRISS development zone in southern Selangor, NSIP is Malaysia’s first Controlled Industrial Park, setting a new benchmark for smart and sustainable industrial development in ASEAN. -Berita Harian