Malaysia

SUBANG JAYA: Carlsberg Brewery Malaysia Berhad (“the Group”) has declared a record-high total dividend of 100 sen per ordinary share for the financial year ended 31 December 2024 (FY24), marking a payout of 91% of its net profit. The announcement was made during its 55th Annual General Meeting (AGM), where all five proposed resolutions were duly approved by shareholders. The final single-tier dividend of 35 sen per share complements the previously declared interim dividends, underscoring the Group’s robust financial performance and commitment to delivering shareholder value. At the AGM, attended by approximately 1,393 shareholders and proxies, Independent Non-Executive Chairman Tan Sri Dato’ Seri Chor Chee Heung and Managing Director Stefano Clini led discussions on the Group’s strategic direction, achievements, and forward-looking priorities. Clini highlighted that the Group’s performance was anchored by two strategic pillars: a major RM200 million brewery transformation and a focused drive on premiumisation and innovation. These initiatives are part of Carlsberg Malaysia’s overarching Accelerate SAIL corporate strategy, designed to enhance resilience and competitiveness amid global geopolitical and macroeconomic challenges. “Our brewery transformation is not merely an infrastructure upgrade. It represents a strategic leap towards a more sustainable, agile, and innovation-driven future. With cutting-edge brewing technologies now in place, we are better positioned to scale, improve operational efficiency, and uphold our Brewing Excellence commitment,” Clini stated during the post-AGM press briefing. The Group’s FY24 Integrated Annual Report (IAR), published on 28 March 2025, marked a significant shift in sustainability reporting. Transitioning from the Task Force on Climate-related Financial Disclosures (TCFD) to the International Financial Reporting Standards (IFRS) S2 framework, the report provided enhanced disclosures on climate-related risks and opportunities, including their financial implications. The IAR also featured value creation narratives, clear sustainability metrics, and an internal assurance statement on non-financial performance. These reporting enhancements reflect Carlsberg Malaysia’s efforts to align with evolving global standards and investor expectations. Reflecting this progress, the Group’s MSCI ESG rating improved to 6.3/10 in December 2024, with notable gains in Corporate Governance scoring at 6.8/10. Additionally, Carlsberg Malaysia advanced its percentile rank within the FTSE4Good Index from 66 to 52 among peers in the Food and Beverage sector, while maintaining its FTSE4Good Bursa Malaysia score of 3.6/5. Looking ahead, Clini acknowledged the challenging macroeconomic environment, citing inflationary pressures, elevated interest rates, exchange rate volatility, and geopolitical uncertainties, including recent US trade tariffs. Domestically, he noted a shorter Chinese New Year trading period and intensifying pricing competition across retail channels. “To navigate these headwinds, we will continue our ‘Funding Our Journey’ initiatives by reinvesting efficiency gains into innovation, premiumisation, and digital transformation,” he said. “By remaining focused on our strategic priorities under the Accelerate SAIL framework, we are confident in our ability to deliver sustainable value for all stakeholders in 2025.”

SEOUL: Malaysia and South Korea have commenced the ninth round of negotiations for a bilateral free trade agreement (FTA), aimed at deepening economic cooperation and enhancing market access between the two countries. The three-day discussions, held in Kuala Lumpur, involve approximately 70 trade officials and focus on eight key areas, including trade in goods and services, investment, and broader economic collaboration, according to South Korea’s Ministry of Trade, Industry and Energy. Talks resumed in March 2024 following a five-year pause, as both countries work to accelerate progress towards a comprehensive trade deal. While South Korea currently benefits from a multilateral FTA with ASEAN, it is increasingly seeking bilateral arrangements with individual ASEAN members to tailor economic engagement and better address country-specific trade objectives. “A bilateral FTA with Malaysia, a key emerging market within ASEAN, will significantly enhance the global competitiveness of South Korean companies, especially amid rising global protectionism and ongoing trade tensions with the United States,” said Kwon Hye Jin, Director-General for FTA Negotiations at the ministry. She added that the South Korean government remains committed to concluding the agreement at the earliest opportunity and will continue to engage actively with Malaysian counterparts to achieve this objective. The prospective FTA is expected to open new channels for investment and trade in high-value sectors, strengthening bilateral economic resilience and delivering mutual benefits to both nations. -Bernama

KUALA LUMPUR: Hong Leong Investment Bank (HLIB) has reiterated its ‘neutral’ outlook on Malaysia’s plantation sector, citing a lack of clear demand catalysts and uneven earnings prospects across both upstream and downstream segments. In a research note issued today, the bank observed that most plantation players are expected to post solid year-on-year (y-o-y) earnings growth for the first quarter of 2025 (1Q25), buoyed by firm palm product prices. However, quarter-on-quarter (q-o-q) performance is anticipated to soften, weighed down by lower production and moderating prices. “Production volumes were negatively impacted by seasonal cropping trends and heavy rainfall in parts of Malaysia,” HLIB said. “All planters under our coverage recorded negative fresh fruit bunch (FFB) output growth in the first quarter, ranging from -4.9% to -27.7%.” In contrast, plantation activities in Indonesia fared better, underpinned by different cropping cycles and fewer weather-related disruptions. On the downstream side, the research note highlighted continued earnings pressure due to Malaysia’s export tax regime, elevated input costs, and a narrowing price differential with Indonesian products, which has weakened export competitiveness. Among the companies analysed, TSH Resources Bhd recorded the smallest q-o-q decline in FFB output at -4.9%, a performance HLIB attributed to a recovery in yields driven by improved cropping patterns in Indonesia and the resolution of a localised social dispute. Hap Seng Plantations Bhd, meanwhile, experienced an 11.3% y-o-y drop in production, primarily due to flood-related disruptions in early 2025, though harvesting activities showed a recovery in March. HLIB maintained its crude palm oil (CPO) price forecasts at RM4,000 per tonne for 2025 and RM3,800 per tonne for 2026, citing steady demand and supply fundamentals. The bank’s top sector picks include SD Guthrie Bhd with a target price of RM5.17, Jaya Tiasa Holdings Bhd (RM1.35), and IOI Corporation Bhd (RM4.24). -Bernama

KUALA LUMPUR: Bank Rakyat has successfully raised RM1 billion through the issuance of Islamic medium-term notes (IMTN) under its Senior Sukuk Wakalah programme, managed via special purpose vehicle Imtiaz Sukuk II Bhd. The sukuk was issued through a book-building process on 24 April 2025 as part of a larger programme valued up to RM10 billion. The programme has been rated AA2 by RAM Rating Services Bhd. According to the bank’s statement, the sukuk was offered in two tranches—RM120 million for a five-year note and RM880 million for a seven-year note. The issuance attracted strong investor interest, recording a final bid-to-cover ratio of 1.98 times. Proceeds from the sukuk will be used for shariah-compliant purposes, including working capital, capital expenditure, general investments, financing, and other corporate needs. Bank Muamalat Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, and RHB Investment Bank Bhd acted as joint lead managers for the transaction.

KUALA LUMPUR: MSM Malaysia Holdings Bhd (MSM) is looking to restart domestic sugar cane cultivation as part of a broader strategy to reduce its full reliance on imported raw sugar and enhance supply chain resilience. Speaking on Bernama TV’s Bual Bisnes programme, MSM group CEO Syed Feizal Syed Mohammad said the move is in response to growing global risks, including climate change, geopolitical tensions, and supply chain disruptions. “MSM currently depends 100% on imported raw sugar, but we are studying the feasibility of reintroducing sugar cane agriculture in Malaysia,” he said. Potential sites for the revival include Sarawak and northern Peninsular Malaysia, both identified as suitable for large-scale plantations. Historically, MSM operated around 4,000 hectares of sugar cane fields in Chuping, Perlis, since the 1970s, though the initiative was eventually halted due to its lack of economic viability. In addition to sugar cane, the company is exploring alternative sweeteners such as palm sugar to diversify its raw material sources. Syed Feizal noted that this would help MSM cater to evolving consumer preferences in the Asia-Pacific region. “Sugar beet is widely used in Europe, but it doesn’t suit regional taste profiles. We are evaluating options like palm sugar derived from nipah coconut, which could meet local demand even if not produced at industrial scale,” he said. The exploration of alternative sources is part of MSM’s long-term vision to adapt to shifting market dynamics and ensure continuity in supply.–BERNAMA