26/03/2025

BIZ & FINANCE WEDNESDAY | MAR 26, 2025

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Malaysia set to make waves at China Food and Drinks Fair

Wawasan Dengkil eyes more solar farm projects

KUALA LUMPUR: Construction services provider Wawasan Dengkil Holdings Bhd, which made its debut on the ACE Market yesterday, plans to expand its business by securing more solar farm infrastructure projects. Executive director Lim Soon Yik said the company is targeting solar farm infrastructure works this year, particularly following the announcement of the Large Scale Solar 5 (LSS5) programme in December. He said the initiative is part of the company’s broader expansion plan, focusing primarily on solar farm infrastructure as well as earthworks and civil engineering services. “We have submitted 44 tenders with a total tender value of RM1.3 billion and an estimated tender win rate of 10%,” he told a press conference after Wawasan Dengkil’s listing ceremony here. Lim further explained that of the 44 tenders, six tenders worth RM572.2 million are from its solar farm infrastructure works segment while the remaining 38 tenders, valued at RM724.8 million, are from its earthworks and civil engineering services segment. He also noted that in line with its expansion plan, the company aims to acquire additional machinery and commercial vehicles to enhance project execution efficiency and drive business growth. “As we continue expanding and capturing more market share, we are also seeking additional talent and manpower, as we are currently facing a shortage of skilled workers. “Our unbilled order book of RM378.14 million and tender book of RM1.3 billion, as of Jan 28, 2025, provide a healthy project pipeline and earnings visibility,” the director said, adding that the company foresees its unbilled order book contributing to its revenue within the next two years. Wawasan Dengkil opened flat at 25 sen with 2.89 million shares traded.

economic powerhouse and home to approximately 380 million people, presents an extraordinary opportunity for Malaysian exporters. The region’s rapid urbanisation and rising consumer demand for premium international food products make it a prime target for Malaysia’s high-quality, halal-certified F&B industry. Matrade CEO Datuk Mohd Mustafa Abdul Aziz highlighted the strategic approach to diversify exports into new and emerging markets, intensify promotion beyond 1st tier cities within China, particularly in the rapidly developing western region. “Western China is an emerging frontier for Malaysian food and beverage exporters, with its growing middle class and appetite for premium and diverse food products. “By focusing on these high-growth cities, Matrade aims to unlock new opportunities and widen market access for Malaysian exporters. “The region’s urbanisation and expanding consumer demand make it a prime target for Malaysia’s high-quality, halal-certified F&B industry,” he said. Mohd Mustafa added that Malaysia’s strength in producing world-renowned and high-quality F&B items makes it a

perfect match for this evolving market. “Matrade remains steadfast in its commitment to unlocking new market access for Malaysian businesses, and our presence at the 112th CFDF is a bold step towards expanding Malaysia’s footprint in China,” said Mohd Mustafa. Matrade’s decision to participate in 112th CFDF follows the resounding success of its Export Acceleration Mission (EAM) last year where Malaysian delegation recorded RM64.14 million in sales from 344 business meetings that were conducted. As Malaysia strengthens its foothold in the Chinese market, the focus now extends beyond just sales performance to long-term sustainability and product integrity. Ensuring that Malaysian F&B exports, particularly premium products, meet the highest standards of traceability and quality, has become a key priority for industry leaders like DSR Daily Fresh Sdn Bhd. Aside from participating in the 112th CFDF, Matrade will strengthen Malaysia’s trade presence in China by leading Malaysian companies at the 22nd China-Asean Expo in September and the inaugural MIHAS@Shanghai at the China International Import Expo 2025 from Nov 5 to 10.

o Matrade aims to unlock new opportunities in RM7.8 trillion Chinese market KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) is set to make waves at the 112th China Food and Drink Fair (112th CFDF) in Chengdu, Sichuan Province, China, from yesterday to tomorrow. The Malaysia Pavilion will feature 12 Malaysian companies representing diverse food and beverages (F&B) products including delectable confectioneries and snacks, aromatic coffee drinks, rich chocolate-based products, premium bird’s nest products and the iconic Musang King durian. Joining forces with Matrade, the Ministry of Agriculture and Food Security (MAFS) through the Agriculture Counsellor Office in Beijing will also support efforts to champion Malaysia’s F&B exports at the 112th CFDF. In 2025, the Chinese food market is projected to reach RM7.8 trillion, with annual growth at 7.79%. Meanwhile, western China, a vast

Investment banks remain bullish on banking system KUALA LUMPUR: Investment banks remained bullish on Malaysia’s banking sector as its system continued to be resilient and supportive of financial intermediation activities underpinned by healthy capital and liquidity buffers. and has visible, defensive earnings with scope to perform pre-emptive provision write-backs,” it said. and hotels and restaurants sectors, still face elevated input costs (for example, materials and labour),” it said.

RHB IB said household loans grew by a solid 5.9% year-on-year in December 2024, partly due to continued labour market strength and general economic activity, with some support from government incentives. “Household debt servicing capacity was stable y-o-y, with limited evidence of overstretched borrowers,” it said. RHB IB noted that BNM did not observe any abnormal growth rates for higher-risk unsecured lending products, while for Buy Now, Pay Later services, asset quality looks manageable despite the sharp rise in transaction volumes and value. – Bernama

Meanwhile, RHB Investment Bank Bhd (RHB IB) opined that the Malaysian banks could offer investors a defensive shelter, given the sector’s stable earnings and decent dividend yields. It opined the leading financial stability indicators, such as debt servicing capabilities of households and businesses, remain resilient. RHB IB said the business sector is still resilient, with operating margins having also surged past the pre-pandemic average, thanks in part to a stronger ringgit and stable global commodity prices. “However, some firms, particularly those from the manufacturing, wholesale and retail trade,

Bank Negara Malaysia (BNM) published the second half of its 2024 Financial Stability Review Report yesterday. Hong Leong Investment Bank (HLIB) said the latest stress test continues to suggest that the banking system is robust and can stomach adverse shocks as it employed conservative assumptions to evaluate banks’ resiliency to adverse shocks. It said that from a top-down perspective, HLIB remained bullish in the sector as it provides good shelter from Trump 2.0. “Also, it offers a decent dividend yield of 5%

Leading Index higher by 0.4% in January, indicating economy on positive trajectory

The smoothed growth rate of the LI for January 2025 remained below 100 points, anticipating modest economic growth prospects, bolstered by resilient domestic demand despite a challenging international market. In light of the current economic scenario, the Coincident Index (CI) saw a slight rise of 0.1% with 124.8 points as compared to 124.7 points in the same month a year ago. This was contributed by marginal increases in four of the CI components although these were offset by a significant decrease in two other components. On monthly basis, the CI shrank by 1.4% due to a significant decline in Capacity Utilisation in Manufacturing (-1.9%).

PUTRAJAYA: The Leading Index (LI) maintained its positive growth for 14 consecutive months, increasing 0.4% to 112.5 points in January 2025 as compared to 112.1 points in the same month of the previous year. Chief Statistician Malaysia Datuk Sri Dr Mohd Uzir Mahidin said the double-digit increases in the real imports of semi conductors (14.1%) and the number of housing units approved (13.7%) were the contributors to this rise. In contrast, Mohd Uzir added, the monthly performance of LI showed a decrease of 1.2% as five out of seven components declined mainly by the real imports of other basic precious & other non-ferrous metals (-0.6%).

Double-digit increases in real imports of semi conductors contributes to the Leading Index’s growth. – REUTERSPIC