Malaysia

Malaysia Building Society Bhd (MBSB), the country’s second-largest standalone Islamic bank, has pledged RM1 billion in financing to accelerate the nation’s aerospace sector. The announcement was made at the Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA 2025), reinforcing Malaysia’s push to become a leading aerospace hub in Asia. The financing, offered through MBSB Bank and MIDF’s Development Finance facility, is aimed at supporting a wide ecosystem — including OEM suppliers, Tier 1 and Tier 2 manufacturers, MRO (maintenance, repair, and operations) providers, and firms driving research, automation, and talent development. “Funds are available immediately, with streamlined approvals coordinated through our commercial and development finance teams,” MBSB said. The bank is also collaborating with aerospace clusters in Selangor, Johor, and Negeri Sembilan to ensure that high-impact areas receive targeted support. “Aerospace is not just a high-tech sector; it’s a high-impact one,” said MBSB Group CEO Rafe Haneef. “Our RM1 billion facility is designed to scale that impact by backing players with the ambition to lead in manufacturing, design, and innovation.” The move has been lauded by the National Aerospace Industry Coordination Office (NAICO) Malaysia, with CEO Shamsul Kamar Abu Samah calling the fund “a timely boost to the sector’s momentum.” In 2024, Malaysia’s aerospace industry recorded RM25.1 billion in revenue, fuelled by strong growth in both manufacturing and MRO services.–THE EDGE

KUALA LUMPUR: Electrical engineering service provider, HE Group Berhad (“HE Group” or the “Company”) has announced its financial results for the first quarter ended 31 March 2025 (“1QFY25”). During the quarter under review, HE Group registered a 92.6% year-on-year (“YoY”) growth in profit after tax (“PAT”), rising to RM2.9 million in 1QFY25, compared to RM1.5 million in the previous year’s corresponding quarter (“1QFY24”). This growth was driven by a higher-margin project mix, which resulted in an expanded PAT margin of 9.2%, up from 2.3% in the previous year’s corresponding quarter. Despite a softer revenue of RM31.5 million in 1QFY25 (1QFY24: RM64.8 million), primarily due to few projects that were nearing completion, the Company’s strong profitability performance highlights its ability to adapt and deliver positive results. The Power Distribution System segment was the key contributor to HE Group’s 1QFY25 revenue, accounting for RM14.5 million (1QFY24: RM45.4 million), or 45.9% of total revenue. This was followed by the Electrical Equipment Hook-Up and Retrofitting division, which generated RM11.3 million, representing 35.7% of revenue, marking a twofold increase from RM4.4 million in 1QFY24. The remaining portion was contributed by the Other Building Systems and Works business, which recorded RM5.8 million (1QFY24: RM15.0 million), or 18.4%. Managing Director of HE Group, Mr. Haw Chee Seng said, “When we entered the new financial year, we faced a volatile operating environment shaped by global factors such as protectionist trade policies, trade tensions and economic uncertainties. Nevertheless, our growing PAT and expanding PAT margins reflect HE Group’s resilience and our ability to adapt effectively, ensuring sustained profitability in a complex market landscape.” “Looking ahead, HE Group is well-positioned to benefit from Malaysia’s rise as a digital infrastructure hub, which is driving significant investments in data centres. With the increasing adoption of cloud computing and artificial intelligence (“AI”), the country’s data centre capacity is expected to double by 2025. Moreover, the electrical and electronics (“E&E”) sector, including the semiconductor industry, is experiencing growth driven by the rapid adoption of technologies like the Internet of Things and AI, coupled with a more stable global trade environment. These factors are set to encourage further expansion of multinational semiconductor operations in the region, aligning with HE Group’s proven track record in delivering electrical infrastructure for high-tech facilities.” “Additionally, the renewable energy sector is gaining momentum as Malaysia progresses towards a low-carbon economy. The growing importance of Battery Energy Storage Systems (“BESS”) to support renewable energy sources presents an opportunity for HE Group. With government initiatives accelerating BESS deployment, we are actively exploring large-scale project opportunities where HE Group can leverage its expertise and contribute meaningfully to the country’s energy transition.” “Barring major disruptions, we expect to sustain our positive momentum. However, we remain mindful of macroeconomic uncertainties that could influence project timelines and investment decisions. In navigating this, HE Group will continue to focus on disciplined cost control, optimising operational efficiency, and strengthening financial resilience to manage risks effectively.” HE Group maintains a strong net cash position, with total cash and cash equivalents of RM53.5 million far exceeding total borrowings of RM1.1 million as at 31 March 2025. Moving forward, HE Group remains focused on delivering value to its stakeholders while navigating the challenges of the global operating environment. With a strong track record and a strategic focus on high-growth sectors, the Company is well positioned to capture emerging opportunities and improve its overall performance.

KUALA LUMPUR: Airbus has inaugurated a new office in Putrajaya, reaffirming its commitment to Malaysia. The inauguration comes ahead of the Langkawi International Maritime and Aerospace Exhibition (LIMA) 2025, where Airbus will be among the largest international exhibitors, showcasing its broad portfolio and latest innovations. The new office will serve as a hub for 170 employees, primarily focussing on providing customer services to regional airline operators. This includes Flight Hour Services and component support for A330 and A350 widebody fleets, ensuring maximum aircraft availability and operational efficiency. Speaking at a media briefing, Anand Stanley, President of Airbus Asia-Pacific, underscored Malaysia’s importance to the company’s regional strategy. “Airbus has a long-standing relationship with the country across its commercial aircraft, defence, space and helicopter businesses. It is our third-largest market in the region after China and India. What makes this partnership unique is the breadth of collaboration – from commercial fleet modernisation and defence cooperation, to local industrial participation and skills development. Parts “Made in Malaysia” are flying on nearly every Airbus commercial aircraft in production today.” There are currently almost 150 Airbus commercial aircraft currently in operation in Malaysia, with around 400 more on order. AirAsia is a major customer for the A320 Family as well as the A330, while Malaysia Airlines operates an all-Airbus widebody fleet, including the recently delivered A330neo and A350 Long Range Leader. In defence, Malaysia made history as the first export customer of the A400M airlifter. In 2025, the Royal Malaysian Air Force (RMAF) celebrates a decade of successful operations with its fleet of four A400Ms, which have collectively surpassed 13,000 flight hours. Airbus is also proposing the C295 – in its transport and maritime surveillance variants – to complement Malaysia’s airlift and maritime security capabilities. Airbus is the leading helicopter provider in Malaysia, with 93 helicopters, including 12 H225Ms in service. These aircraft support critical missions such as law enforcement, border patrol, medevac, and search and rescue. The company maintains a strong industrial footprint, which includes the Sepang Aircraft Engineering MRO centre, a regional helicopter training and support hub in Subang. In addition, several local suppliers contribute to Airbus’ annual procurement value from Malaysia which amounts to US $325 million, supporting high-value jobs and contributing to skills development. Anand Stanley added that Airbus also sees growing potential for cooperation with Malaysia in the area of Sustainable Aviation Fuel (SAF). “With abundant feedstocks and a mature petro-chemical industry, Malaysia is well-positioned to become a regional leader in SAF production. To move this forward, Airbus recently signed an agreement with the Aerospace Malaysia Innovation Centre (AMIC) to research SAF feedstock availability and supply chain viability.” At LIMA 2025, Airbus’ will showcase on the static display an A400M from the German Luftwaffe and another A400M from the RMAF, as well as the luxurious ACH160 corporate helicopter. Meanwhile, two additional RMAF A400Ms will take part in a flying display, highlighting the aircraft’s capabilities. At stand B-16, Airbus will feature scale models of the A220, A400M, H225M, Pléiades Neo Earth Observation satellite, Zephyr high-altitude platform station (HAPS), and the Flexrotor uncrewed aerial system (UAS). Anand Sanley said: “Our commitment to Malaysia is stronger than ever. We are proud to support the country’s economic development, defence priorities and sustainability ambitions through long-term partnerships, local investment and high-value job creation.

KUALA LUMPUR: The Asia School of Business has announced the appointment of Joseph Cherian as its Chief Executive Officer, President, Dean, and Distinguished Professor. Professor Cherian was previously Deputy CEO of the School and assumes the role of CEO from Professor Sanjay Sarma, who has taken on a new role on the School’s Board of Governors and returns to the Massachusetts Institute of Technology (MIT) after two years helming Asia School of Business. As Professor of Finance, he possesses a highly versatile, varied and distinguished international background, spanning academia, global financial markets, and strategic leadership in education. Professor Cherian’s academic career in teaching and researching finance, asset management and portfolio investments includes top global universities including Cornell University, National University of Singapore, and Boston University. Apart from teaching at the Asia School of Business, he most recently served as Visiting Professor of Finance at the Samuel Curtis Johnson Graduate School of Management, SC Johnson College of Business, Cornell University. He was formerly an Executive-in-Residence and a two-term member of the Johnson Dean’s Advisory Council at Cornell University and is now an Emeritus Member of the Council. Professor Cherian’s professional experience in the financial services sector spanned asset management where he managed US$67 billion in client assets as Global Head and Chief Investment Officer of the Quantitative Strategies Group at Credit Suisse Asset Management. He continues to be involved in the financial industry through advisory roles to governments and think-tanks in the Asia-Pacific region, including Australia, Malaysia, Hong Kong and Singapore, in areas such as venture funds, asset management, pensions and capital market policies and reforms. As an internal successor to the School’s top role, Professor Cherian’s appointment builds on his international and varied experience combined with his successful steering of the School’s strategic endeavors since joining in 2022. The School remains focused on delivering world-class business education with its unique perspectives from emerging markets and economies.  Professor Cherian holds a BSc in Electrical Engineering from MIT, and MSc and PhD degrees in Finance from Cornell University.   A respected academic, innovator, and entrepreneur, Professor Sanjay Sarma led key changes at the School, driven by his vision to transform education for the future. He introduced Agile Continuous Education (ACE), a modular, flexible, and stackable learning pathway designed to support lifelong learning and upskilling in a range of business topics with rich AI immersions. As he steps down and returns to MIT after two years at the helm of the School, Professor Sarma will remain closely involved in its endeavours as an Eminent Visiting Professor and a member of the Board of Governors