Malaysia

KUALA LUMPUR: Bursa Malaysia Securities Berhad has publicly reprimanded Reach Energy Berhad (REACH) and seven of its directors for breaches of the Main Market Listing Requirements (Main LR). Additionally, six directors were each fined RM50,000. REACH was found to have breached paragraph 8.04(3)(b) of the Main LR, read together with paragraph 4.1(a) of Practice Note 17 (PN17), for failing to immediately announce its PN17 status upon releasing its fourth-quarter financial results for the period ended Dec 31, 2022. The company had triggered PN17 criteria as its shareholders’ equity on a consolidated basis stood at RM111.29 million, or 22.8% of its share capital of RM488.98 million, based on the 2022 fourth-quarter results. Furthermore, its external auditors had highlighted a material uncertainty related to going concern (MUGC) in the company’s 2021 audited financial statements. Despite these red flags, REACH only made its PN17 announcement on April 3, 2023 — more than a month after it should have done so. Penalties on DirectorsSeven directors were found to have breached paragraph 16.13(b) of the Main LR for allowing REACH to commit the breach. The penalties imposed are: No. Name Designation Penalty 1 Y.M. Tunku Datuk Nooruddin Bin Tunku Dato’ Sri Shahabuddin Executive Director (resigned 29 Mar 2023) Public reprimand and RM50,000 fine 2 Tan Sri Dr. Azmil Khalili Bin Dato’ Khalid Non-Independent Non-Executive Chairman Public reprimand and RM50,000 fine 3 Yusoff Bin Hassan Independent Non-Executive Director Public reprimand and RM50,000 fine 4 Nik Din Bin Nik Sulaiman Independent Non-Executive Director, Audit Committee Chairman (resigned 29 Mar 2023) Public reprimand and RM50,000 fine 5 Dato’ Jasmy Bin Ismail Independent Non-Executive Director, Audit Committee Member (resigned 29 Mar 2023) Public reprimand and RM50,000 fine 6 Datin Noor Lily Zuriati Binti Abdullah Independent Non-Executive Director (resigned 29 Mar 2023) Public reprimand and RM50,000 fine 7 Izlan Bin Izhab Senior Independent Non-Executive Director (resigned 29 Mar 2023) Public reprimand only No fine was imposed on Izlan Bin Izhab due to personal extenuating circumstances. Bursa Malaysia Securities emphasised that the delay in announcing REACH’s PN17 status deprived shareholders and investors of crucial information regarding the company’s financial condition, including the risks of suspension and delisting if the company failed to regularise its financial situation. BackgroundREACH triggered the PN17 criteria following the release of its fourth-quarter 2022 results on Feb 28, 2023. However, it only made the First Announcement on April 3, 2023, following engagement from Bursa Malaysia Securities on March 31, 2023. Bursa noted that there was no reasonable explanation for the delay and stressed that the board, particularly its non-executive directors, had failed to exercise sufficient oversight despite financial red flags — including staggering losses of RM227.65 million recorded in the fourth quarter of 2022 and a significant reduction in shareholders’ equity. The regulator reminded REACH and its board of directors of their responsibilities to uphold corporate governance standards and ensure timely disclosure to safeguard the interests of shareholders and the investing public.

PETALING JAYA: The Investment, Trade and Industry Ministry (MITI) has launched an internal investigation following allegations that it used a company’s designs for the Malaysian pavilion at the Osaka World Expo in Japan without payment or credit. In a statement today, the ministry said it views the accusation seriously and reserves all its legal rights regarding the matter. “The ministry remains committed to the highest standards of integrity and compliance in all its dealings. We will take legal action if and when necessary,” it said. The allegation surfaced after an Instagram user, @feythehuman, claimed that his company had been engaged by the ministry in 2022 to develop the pavilion’s concept, theme, and architectural direction. According to him, a proposal was presented to key stakeholders, including the Minister, Tengku Zafrul Aziz, and the company was repeatedly assured that it would be formally appointed to the project. However, the user alleged that in January 2023, the company was informed that the appointment would not proceed as the ministry intended to open the project for tender. Despite this, he claimed that the current pavilion concept, theme, narrative, and architectural direction mirror the work his company had developed, and that these were used without acknowledgment or compensation. He also alleged that for the past two years, the company had been given the “runaround” in its efforts to seek recognition and fair payment. According to Expo 2025 organisers, the Malaysian pavilion features a bamboo façade interwoven with a ribbon-like pattern inspired by the traditional songket fabric.–FMT

KOTA BHARU: The Health Ministry (MOH) is closely monitoring the implications of new tariffs imposed by US President Donald Trump, with a particular focus on medical devices and pharmaceutical products. Health Minister Datuk Seri Dr Dzulkefly Ahmad said although Trump had earlier indicated that pharmaceuticals might be exempted from the tariffs, recent developments suggest otherwise. “Some of the announced tariffs remain unclear, and with Trump’s unpredictability, we must remain vigilant. It is crucial for me, as Minister of Health, to stay attentive to these two matters,” he said at a press conference after officiating the state-level 2025 Madani Afiat Programme in Tunjong on Saturday. He was responding to questions regarding the potential impact of the tariffs on Malaysia’s healthcare supply chain. Dzulkefly said that early preparations are underway to identify alternative markets and sources to ensure that the country’s healthcare supply remains uninterrupted. On April 2, Trump announced a series of reciprocal tariffs on imports from several countries, including a 24% tariff on Malaysian goods. However, the implementation has been postponed by 90 days. Separately, Dzulkefly addressed the upcoming ban on the sale of electronic cigarette (vape) products by the Terengganu state government, effective August 1. He said the MOH is committed to enforcing comprehensive regulation under the newly gazetted Smoking Products Control for Public Health Act 2024. The Act will serve as a standalone legislation to regulate all aspects of smoking products, including registration, sales, advertising, and nicotine content. “Our approach is to enforce strict regulation. Sales to minors will be completely prohibited, and stringent controls will be in place to eliminate any form of leniency,” he said. Dzulkefly also welcomed the Terengganu government’s initiative, noting that local authorities have an important role in denying business licences to vendors selling smoking products. The Terengganu state government announced its decision to enforce the ban at all business premises starting August 1. Terengganu Local Government, Housing and Health Committee chairman Datuk Wan Sukairi Wan Abdullah described the move as a proactive measure to protect the health of the younger generation.–BERNAMA

KUALA LUMPUR: Bank Negara Malaysia (BNM) adopts a measured and gradual approach in managing the Overnight Policy Rate (OPR), ensuring that monetary policy adjustments are made only when necessary, said Finance Minister II Datuk Seri Amir Hamzah Azizan. Speaking at the ASEAN Leadership Forum in Washington, DC on Friday, Amir emphasised that the OPR remains a powerful tool that must be wielded judiciously. “BNM also raised rates, but it raised in a measured form along the way, and it hit a fairly accommodative rate of 3%, which was comfortable for businesses but also sent the right message,” Amir said during a question-and-answer session hosted by the Centre for Strategic and International Studies. Following the historically low OPR of 1.75% during the Covid-19 pandemic, Malaysia’s central bank gradually increased rates to 3%, unlike other economies that resorted to aggressive monetary tightening to curb inflation. Amir noted that headline inflation had eased from 1.8% in 2024 to 1.4% in March 2025, signalling that inflationary pressures are currently under control. “The [OPR] rate is at 3% now. There’s no pressure for the government at this point in time on that,” he said. “If things get difficult, the tool is available to be reviewed, but we are not taking a pre-emptive decision today.” BNM’s next Monetary Policy Committee (MPC) meeting is scheduled for May 8, 2025, where policymakers will reassess the OPR based on the latest economic conditions. Malaysia’s cautious stance on monetary policy comes as part of a broader strategy to strengthen economic resilience amid ongoing global uncertainties.

PETALING JAYA: The Malaysian government has announced that only rubber gloves manufactured locally can be exported, in a move aimed at safeguarding the integrity of the domestic industry amid escalating global trade tensions. According to the plantation and commodities ministry, the directive applies to all exporters licensed by the Malaysian Rubber Board (MRB). The ministry said the decision is in response to recent policy shifts in major global markets, which could otherwise turn Malaysia into a transit hub for foreign-made gloves, distorting trade flows. “These circumstances may lead to a rise in rubber glove imports, which could affect the competitiveness of the domestic rubber industry,” the ministry said. Malaysia remains one of the world’s top producers and exporters of rubber-based products. In 2024, the country recorded RM33 billion in rubber exports, with gloves contributing RM15.4 billion, or 45.8% of total rubber-related export earnings. The government also highlighted that the MRB has tightened export licensing requirements and ramped up monitoring and enforcement efforts to maintain oversight of the sector. The move follows the recent US imposition of a 10% general import tariff and a 24% tariff on Malaysian goods, temporarily suspended for 90 days. Authorities believe stricter rules are essential to prevent tariff circumvention through re-routing or mislabelling practices—issues already reported in other parts of Asia.

KUALA LUMPUR: The World Bank has revised Malaysia’s GDP growth forecast to 3.9% for 2025, citing global uncertainties and trade tensions, particularly following the recent US tariff announcements. “With all possible caveats, we project Malaysia’s 2025 growth rate at 3.9%,” said Apurva Sanghi, the World Bank’s lead economist for Malaysia, in a post on X. The projection comes in lower than Bank Negara Malaysia’s current forecast of 4.5% to 5.5%, which is now under review amid mounting external pressures. It also follows a recent downgrade by the International Monetary Fund (IMF), which revised Malaysia’s 2025 growth to 4.1%, down from an earlier estimate of 4.7%. Regional Growth Comparisons The World Bank’s latest projections show Vietnam leading among ASEAN economies in 2025 with 5.8% growth, followed by: Philippines – 5.3% Indonesia – 4.7% Cambodia – 4.0% Malaysia – 3.9% Thailand – 1.65% China’s growth is projected at 4.0%, reflecting broader economic moderation across Asia.

Malaysia Airports Holdings Bhd (MAHB) has announced that its Licence to Win (LTW) 2024 campaign has surpassed RM200 million in total sales receipts, outpacing the success of the previous LTW campaign held in 2019, which recorded RM178 million in sales. Hani Ezra Husin, Senior General Manager of Commercial Services at MAHB, expressed pride in the campaign’s success, noting that the LTW programme, which began in 2017, was paused during the pandemic. With its return this year, the campaign has once again captured the attention of travellers. “This year, the LTW campaign garnered 300,000 entries and sales receipts of over RM200 million, setting a new record,” Hani Ezra remarked. The campaign saw strong participation from Malaysians, who made up 68.1% of the entries, followed by Indonesians at 11.7%, with participants from other countries contributing 9.2%. The average spending per entry was RM610.80. “The success of LTW demonstrates that airports are not just departure points for Malaysians travelling abroad, but also destinations where travellers enjoy shopping, even when not on holiday,” Hani Ezra added. As part of the campaign, winners will enjoy six months of enhanced retail and dining experiences across five of MAHB’s international airports: Kuala Lumpur International Airport (KLIA), Penang, Langkawi, Kota Kinabalu, and Kuching. The grand prize winner, Malaysian Emilyn Ooi, received a once-in-a-lifetime RM1 million shopping spree at the airport. “This campaign has been far more than a contest,” Hani Ezra said. “It has redefined airport shopping, bringing a renewed sense of excitement and connection to our airports post-pandemic. It’s not just about sales or footfall; it’s about the energy and vibrancy that LTW 2024 has reignited. The campaign has been a resounding success in driving retail spending.” Through strategic initiatives, MAHB has empowered retailers by boosting both sales and engagement. These efforts have been supported by marketing campaigns like LTW, which have significantly increased visibility and impact. By the end of 2024, 90% of commercial outlets are expected to be open, offering passengers a wider and more diverse retail mix.

Maybank Islamic Bhd (MIB) has announced the appointment of Nor Shahrizan Sulaiman, the bank’s current Deputy Chief Executive Officer (CEO), as Officer-in-Charge following the resignation of Datuk Muzaffar Hisham, Group CEO of Islamic Banking. Muzaffar, who has led the bank for 14 years, decided to step down to pursue new professional ventures. The bank revealed that the search for a new Group CEO will begin immediately, with an update to be provided in due course. Maybank’s President and Group CEO, Datuk Khairussaleh Ramli, expressed sincere gratitude for Muzaffar’s leadership, highlighting his pivotal role in steering the Islamic banking division toward global prominence. “Muzaffar has been essential in driving our Islamic banking franchise to achieve true global leadership, in line with our M25+ strategy,” said Khairussaleh. Until a new Group CEO is appointed, Nor Shahrizan will take on the daily management of MIB, while continuing his existing duties.