05/03/2025

BIZ & FINANCE WEDNESDAY | MAR 5, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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Paramount plans RM1.4b project launches this year

Australia, Sarawak to strengthen collaboration in energy storage KUCHING: Australia and Sarawak have reaffirmed their commitment to integrating energy storage systems to support Sarawak’s transition toward increasing its share of renewable energy sources. In a courtesy call on the Premier of Sarawak on Monday, representatives from both the Australian High Commission in Malaysia and Sarawak Energy Bhd agreed to partner on a strategic analysis of energy storage technologies, their integration into existing systems, and the policies to enable this transition, facilitated by Australia’s Partnerships for Infrastructure (P4I) initiative. The agreement was formalised through an exchange of letters between Australia’s High Commissioner to Malaysia, Danielle Heinecke and Sarawak Energy Group CEO Datuk Sharbini Suhaili. The ceremony was witnessed by Michelle Chan, Deputy Secretary of the Australian Department of Foreign Affairs and Trade, and Datuk Patinggi Tan Sri Abang Johari Tun Openg, Premier of Sarawak. This collaboration will guide the effective deployment of energy storage and renewable technologies; enhance Sarawak Energy’s capacity to model the benefits and optimal levels of energy storage systems; identify viable energy storage technologies for Sarawak’s unique energy landscape; and support investment in renewable energy technologies. In 2025, both nations will mark 70 years of partnership, built on shared interests, mutual respect and strong community connections. Malaysia remains a key economic partner for Australia, with total two-way trade in 2023-24 valued at A$33 billion (RM91.5 billion). AI could boost Malaysia’s GDP by US$115b by 2030: Emir Research KUALA LUMPUR: Artificial intelligence (AI) could add an estimated US$115 billion (RM513 billion) to Malaysia’s gross domestic product by 2030, benefiting not only the manufacturing sector but also the healthcare, agriculture and finance sectors, said EMIR Research founder Dr Rais Hussin. In a statement yesterday, he said that to realise these gains, Malaysia needs a robust digital infrastructure, ethical AI governance and dedicated investment in research and skills training. As the Asean chair this year, Malaysia can lead the region by shaping data governance standards, promoting cross-border research and development (R&D), creating policies for talent mobility, and setting the tone for ethical AI, sustainable data centres, and quantum security initiatives, said Rais. “Malaysia’s data centre expansion, parti cularly in Johor, is poised to make the country a major regional hub for data storage. “However, the energy-intensive nature of these facilities raises environmental concerns that must be addressed. Initiatives could include adopting renewable energy and advanced cooling techniques, as well as exploring small modular reactors to power these facilities sustainably,” he added. By maintaining an open stance through active neutrality, Rais said, Malaysia can attract both Western and Eastern cloud providers, ensuring healthy competition, technology transfer and diversified investment. He noted that Penang has long been a linchpin in the global semiconductor supply chain, specialising in assembly, testing, and packaging, and the next step is to move up the value chain into wafer fabrication, integrated circuit design, and robust R&D. – Bernama

still under discussion, including whether to prioritise dividend payments, land acqui sitions, debt repayment, or other invest ments.” Chew said Paramount is also evaluating potential investments in Eco World International Bhd (EWI) as part of its long term growth strategy. He acknowledged that shareholders have raised questions about the company’s willingness to invest further in EWI, and the management is actively discussing the potential benefits and risks of such a move. “We understand the concerns, and this is something we will deliberate with the board. By mid-year, we hope to have a clearer direction on whether our strategy will lean towards higher dividend payouts, further land acquisitions, or reinvestment into new ventures such as EWI,” he said. Chew said while EWI has ongoing developments in London and Australia, its financial performance and future market potential will be key factors in Paramount’s decision-making process. “The first time you enter a new market, there is always a learning curve. Like our initial ventures into certain locations, understanding the market dynamics in London and other regions is crucial before making further commitments,” he added. Chew stressed that Paramount remains committed to strengthening its portfolio, with a balanced approach to cash flow, asset expansion, and strategic investments in 2025 and beyond.

o New developments will comprise landed and high-rise residential properties, with focus on affordable and mid range segments in key growth areas

Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

paying off bank loans, while our dividend payment strategy is still under discussion.” He added that in terms of land acquisition, the company purchased RM45 million worth of land last year and remains in negotiations for additional purchases. “The stronger-than-expected sales performance in 2024 has prompted the company to focus on land replenishment, with a remaining gross development value (GDV) of RM5.5 billion. With a target revenue of RM1.2 billion this year, land replenishment is necessary to sustain project continuity over the next four years,” Chew said. He disclosed that Paramount aims to secure RM2 billion in GDV land acquisitions this year, requiring about RM400 million in land purchases. However, he emphasised that these acquisitions are part of a land replenishment strategy, not land banking. “The land we acquire will be developed within five years, rather than being held for long-term value appreciation. “We anticipate close to RM1 billion in cash inflows, and with bank financing of up to 80%, we will have the potential to acquire land worth up to RM5 billion. Our strategic decisions are

KUALA LUMPUR: Paramount Corporation Bhd plans to launch RM1.4 billion worth of projects this year, focusing primarily on residential developments. Group CEO Jeffrey Chew Sun Teong said the new launches will comprise a mix of landed and high-rise residential properties, with a focus on affordable and mid-range segments in key growth areas. “These developments are expected to cater to strong housing demand while ensuring steady cash flow and sustainable revenue growth for the company,” he said when presenting Paramount’s financial year results yesterday. Chew said the company’s priority still remains on completing previous projects to recognise revenue from unbilled sales totalling RM1.6 billion. “While we have seen stable sales growth from last year’s launches, we are taking a cautious approach by reducing the rate of new project launches. At the same time, cash flow management remains our key focus, ensuring financial flexibility rather than aggressively

EcoWorld sells site at Eco Business Park II to Chinese firm for RM119m KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) yesterday entered into a sale and purchase agreement with Deye New Energy Technology (Malaysia) Sdn Bhd to sell 32.9 acres of industrial land for RM119 million. The land is located at Eco Business Park II (EBP II) in Senai, Iskandar Malaysia. “We are delighted to welcome Deye to EBP II. The signing today demonstrates the continued appeal of our Eco Business Parks to Chinese industrialists, particularly those in new economy, high-tech and high-growth sectors. As a leading manufacturer of comprehensive solar photovoltaic systems, Deye’s presence here perfectly aligns with our aims to work with companies that make a positive contribution to lowering our collective carbon footprint,” said EcoWorld Malaysia deputy CEO Liew Tian Xiong. Deye solar inverters are known for their high efficiency, ensuring that solar energy is converted effectively, reducing energy wastage. Accordingly, it can play an important role in supporting the country’s efforts to transition to more sustainable, cost-effective and energy efficient solutions that benefit the environment as well as the economy as a whole. Deye can boost Malaysia’s renewable energy profile by manufacturing solar inverters and energy storage systems at its new EBP II facilities to serve Southeast Asia. As demand for solar systems increase not just in Malaysia but also the region, Deye’s investment will help boost the local solar industry, creating jobs in the manufacture of ancillary parts and equipment, installation, maintenance and other related sectors. From left: Eco World Development Group Bhd divisional general manager Phan Yan Chan, Liew, Johor State Investment, Trade, Consumer Affairs & Human Resources committee chairman Lee Ting Han, Ningbo Deye Inverter Technology Co Ltd chairman Zhang He Jun and vice-president Singapore Victor Yuk. Deye is part of Ningbo Deye Technology Co, a Chinese producer of power inverters, that has plans to invest up to US$150 million (RM668 million) in a new manufacturing base for solar equipment in Malaysia. Ningbo Deye is one of the China’s high-tech enterprises and a major player in the global solar inverter market. It is dedicated to providing complete photovoltaic power system solutions, including residential and commercial power plant solutions. He added that Deye’s decision to make such a sizeable investment in Iskandar Malaysia also speaks volumes of the state’s success in attracting high value added, technologically advanced manufacturers to build up the country’s green supply chain.