Malaysia

KUALA LUMPUR : Artificial intelligence (AI) holds the potential to boost global gross domestic product (GDP) by as much as 15 percentage points by 2035, according to professional services firm PricewaterhouseCoopers (PwC). This projected uplift is equivalent to an additional one percentage point in annual global growth — comparable to the economic expansion seen during the 19th-century industrial revolution, the firm noted in a statement on Tuesday. The findings are part of PwC’s latest report titled Value in Motion, which employs data-driven scenario analysis to explore AI’s future economic impact. However, the report cautions that the full realisation of these benefits hinges on responsible technological deployment, strong governance frameworks, and broad-based public and institutional trust. “Without sufficient trust and cooperation, the growth boost from AI could be significantly reduced — potentially limited to just 8%, or even 1% in more pessimistic scenarios,” the report stated. Intense Reinvention Pressure Across Industries PwC’s analysis also highlights an unprecedented urgency for business transformation, with 17 out of 22 global industries currently facing reinvention pressures at their highest levels in 25 years. In 2025 alone, revenue worth US$7.1 trillion (approximately RM31 trillion) is expected to shift among companies, even without accounting for the impact of global trade frictions and tariff escalations. Industries are expected to undergo significant reconfiguration over the coming decade, forming new economic “domains” that transcend traditional sectoral boundaries. The firm cited the electric vehicle (EV) sector as a key example, where collaboration across electricity providers, battery manufacturers, and technology firms is reshaping the mobility landscape beyond the remit of conventional automakers. “As the structure of the global economy evolves, organisations that successfully bridge traditional industry lines and address shifting consumer demands through technology will be best placed to unlock transformative growth,” said PwC Global Chairman Mohamed Kande. Climate Risks May Offset Growth Gains Despite AI’s transformative growth potential, physical climate threats may constrain long-term economic expansion, PwC warned. The firm’s modelling projects that unchecked climate risks could result in a global economy up to 7% smaller by 2035 compared to a scenario without such disruptions. In addition, while AI is expected to spur greater energy usage — particularly in data centre operations — modest applications of AI in enhancing energy efficiency could neutralise the net impact on emissions. PwC estimates that if each incremental percentage point in AI adoption led to just a 0.1% reduction in energy intensity, the resulting balance in energy use and environmental impact would be neutral. –The Edge Malaysia

KUALA LUMPUR: Sime Darby Property Bhd has successfully raised RM800 million under the third issuance of its Sukuk Musharakah Programme, the company announced in a filing with Bursa Malaysia today. The sukuk issuance, rated AA+IS with a stable outlook by MARC Ratings Bhd, consists of: RM200 million with a seven-year tenor, RM100 million with a 10-year tenor, and RM500 million with a 15-year tenor. The proceeds will be used to finance the Group’s future investments, capital expenditure, working capital needs, and general corporate purposes. The funds may also be allocated towards refinancing existing debt obligations — all in accordance with Shariah principles. CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are the joint lead managers for the sukuk issuance.–BERNAMA

PUTRAJAYA: CACEIS, a global asset servicing provider and subsidiary of Crédit Agricole S.A. and Santander, has reaffirmed its long-term commitment to Asia-Pacific with the official launch of its new Malaysian office. Since relocating its Asian operations to Malaysia, the company has positioned itself as a key player supporting institutional investors across all asset classes. The move underscores Malaysia’s growing role as a strategic financial hub in the region. CACEIS Malaysia was established on 3 July 2023, following the group’s acquisition of RBC Investor Services’ European asset servicing activities. The Malaysian branch now supports the group’s European entities and plans to further expand across the APAC region. Speaking at the launch, Wilson Sunny, Chief Executive Officer of CACEIS Malaysia, highlighted the company’s focus on innovation, sustainability, and talent development. “This GBI-certified office, which supports 1,200 employees with capacity for further growth, reflects our commitment to sustainable operations,” he said. The company has already invested RM1.2 million in training programmes, including leadership development and international training across Europe and Asia. “Our strategic expansion includes growing our digital and technology footprint in Malaysia to better serve our APAC clients,” added Sunny. “Our people remain our greatest asset, and we are investing to ensure they are prepared for the industry’s evolving needs.” YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry, lauded the expansion in a recorded message. “This new office signifies our shared ambition to build a dynamic, future-ready economy that creates high-value opportunities for Malaysians. It also reflects Malaysia’s increasing significance as a financial services hub,” he said. French Ambassador to Malaysia, His Excellency Axel Cruau, expressed his support at the event, saying, “CACEIS’s growth in Malaysia is a testament to the strength of the local investment climate and the strategic appeal of Malaysia’s financial ecosystem.” CACEIS aims to become Europe’s leading asset servicing provider by 2030 and is positioning its Malaysian office as a regional centre of excellence to help achieve that ambition.

KUALA LUMPUR: Bank Negara Malaysia has appointed two new members to its Syariah Advisory Council (SAC) for a two-year term beginning 1 May 2025. The central bank named Professor Dr Amir Shaharuddin, Director of the Centre of Excellence in Islamic Social Finance at INCEIF University, and Professor Dr Abdul Rahim Abdul Rahman, a member of Majlis Agama Islam Wilayah Persekutuan, as the new additions to the council. “With the new appointment, the SAC will comprise nine members with expertise in syariah, Islamic finance, accounting and law,” Bank Negara said in a statement. Established under Section 53(1) of the Central Bank of Malaysia Act 2009, the SAC serves as the highest authority in determining Islamic law concerning financial business and transactions in Malaysia. — BERNAMA

PETALING JAYA : Nestlé (Malaysia) Bhd has reported a positive start to the year, posting encouraging results for the first quarter ended 31 March 2025 (1Q25). The company recorded a turnover of RM1.77 billion during the quarter under review, maintaining the strong sales performance achieved in 1Q24 and marking a 20.1% increase compared to the fourth quarter of 2024 (4Q24). Nestlé Malaysia attributed the broad-based sales momentum to successful planning and execution of its Chinese New Year and Ramadhan/Hari Raya campaigns across its portfolio of brands. The company’s export business also registered growth, recording a 2.6% increase, driven by the competitiveness of its industrial infrastructure and its position as the largest halal manufacturing hub within the global Nestlé network. For 1Q25, Nestlé Malaysia reported a profit before tax of RM213 million and a profit after tax of RM161.3 million, more than tripling the profits achieved in the preceding quarter, reflecting the company’s steady progress towards profit normalisation following a challenging 2024. “This performance demonstrates our ability to navigate a complex operating environment, characterised by ongoing pressures on commodity prices,” the company stated. “Focused efficiency measures, cost optimisation initiatives, and sustained investments in brand equity have underpinned the solid results.” While the first-quarter profit remained strong, the company noted a moderate contraction compared to the high baseline set in 1Q24. This was attributed to an earlier phasing of marketing investments compared to the previous year, alongside a prudent pricing strategy aimed at cushioning consumers against surging commodity prices. Nestlé Malaysia’s Chief Executive Officer, Juan Aranols, said the first-quarter performance marked a significant step in the group’s journey towards restoring healthy growth levels and sustainable profitability. “Amid continued market volatility and intense competition, we are executing solid brand plans effectively across both online and offline channels,” he said. “Our campaigns during the Chinese New Year and Ramadhan/Hari Raya periods have delivered robust results across all business segments.” Looking ahead, Aranols emphasised that Nestlé Malaysia remains alert to the ongoing global market uncertainties that could impact business conditions. Nevertheless, the company remains committed to delivering high-quality, nutritious, and great-tasting halal products tailored to meet the diverse needs of Malaysians at every life stage. He further highlighted that automation and digitalisation are central to Nestlé Malaysia’s strategy, enabling greater agility in decision-making and operational efficiencies that fund continued investments in brand building and innovation. “This virtuous circle of profitable, sustainable growth is anchored firmly on a deep understanding of the evolving value expectations of Malaysian consumers,” Aranols said. Despite the challenging operating environment, Nestlé Malaysia is encouraged by signs of improving consumer sentiment. The group remains confident in its guidance of returning to healthy growth levels by the first half of 2025 and consolidating a sustainable, profitable growth trajectory. “We will continue investing in product innovation and in strengthening our capabilities across manufacturing, logistics, and commercial operations,” Aranols added. Celebrating its 113th year of presence in Malaysia, Nestlé remains committed to contributing positively to the nation’s development, while remaining vigilant to global geopolitical and market developments that could influence broader economic conditions. –The Star