27/03/2025

BIZ & FINANCE THURSDAY | MAR 27, 2025

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Malaysia remains well-positioned to navigate challenges: MIDF KUALA LUMPUR: Malaysia remains well positioned to navigate challenges, backed by strong economic fundamentals, robust domestic demand, resilient household spending and increased investments. and other manufactured goods,” it said. Hence, MIDF Amanah expects Malaysia’s gross domestic product (GDP) to grow at a more stable rate of 4.6% in 2025, easing from a surge and strong growth of 5.1% last year. sector driven by rising household spending as well as increased tourist arrivals and spending. “Despite policy adjustments like higher diesel prices and increased utility tariffs, overall price pressures remain manageable, minimising the impact on consumer purchasing power. “The delayed RON95 fuel subsidy

challenge the trade and export driven sectors. “Stricter US trade policies, including reciprocal tariffs and semiconductor duties, may dampen demand, particularly as electric and electronic products accounted for 60.3% of Malaysia’s exports to the US in 2024. “Retaliatory measures by other countries have also escalated geopolitical and trade tensions, reshaping global trade alliances and contributing to a more fragmented trade environment, which may weaken global trade activity. “While the cooler inflation reading in February raises hopes for the US Federal Reserve to cut rates by mid-year, the relief may be short-lived. “The full impact of US President Donald Trump’s tariff hikes, along with broader policies such as tax cuts, deregulation, and stricter immigration rules, could further fuel inflation, eroding consumer sentiment and purchasing power.” – Bernama ATPC completes US$23 million private placement

MIDF Amanah anticipates continued growth in domestic spending, driven by a robust labour market, manageable inflation, accommodative monetary policy, and recovery in tourism activities. It said government support measures, including cash aid, will further stimulate spending. Additionally, having access to flexible retirement fund accounts, higher civil servant salaries and an increased minimum wage also reinforce consumption growth this year. “The upcoming Hari Raya Aidilfitri festivities are expected to further boost retail activity.” Major economic sectors are poised for continued expansion this year with the services

MIDF Amanah Investment Bank Bhd said domestic growth fundamentals remain robust, driven by increasing spending from both consumers and businesses which will continue to support economic expansion this year. Beyond increased government expenditure, investment activities will be fuelled by the initiation and progress of various infrastructure projects. “However, we remain cautious of Malaysia’s trade outlook amid the heightened uncertainties surrounding global trade. “Malaysia’s trade environment could be more challenging in the coming months, especially if the US imposes higher tariffs on semiconductors

rationalisation until mid-2025 continues to support growing household expenditures,”it said. MIDF Amanah said the construction sector is set to continue its robust growth benefiting from ongoing infrastructure projects, including the Pan Borneo Highway, East Coast Rail Link, Miri airport expansion and Penang Light Rail Transit. It also remains optimistic about data centre expansion which has supported capital goods imports and is also generating demand for the construction and utility sectors. It said rising external uncertainties could

Electrical and electronic sector expected to grow this year

KUALA LUMPUR: Nasdaq-listed Agape ATP Corporation (ATPC) has completed its US$23 million (RM102 million) private placement exercise, reinforcing its financial strength as the company accelerates expansion into healthcare, oil & gas trading and renewable energy. To recap, the private placement involved the issuance of 46 million shares of common stock at US$0.50 per share, under Regulation S of the US Securities Act, which governs offerings to non-US investors. The capital raised will be utilised to support ATPC’s high-growth initiatives, including advancing oil & gas trading projects, scaling up its solar energy ventures, and enhancing its healthcare and wellness solutions. “The successful completion of this private placement is a testament to the strong market confidence in ATPC’s vision and execution strategy,” ATPC founder and global group CEO Prof. Datuk Sri Dr How Kok Choong said. “We are deeply grateful for the trust placed in us by institutional investors, which allows us to accelerate our expansion into high-value industries. “With this fresh capital, we are well-positioned to enhance our operational capabilities, drive innovation, and create long-term value for our shareholders.” The completion of this funding round marks a pivotal moment for ATPC as it moves forward with several key initiatives. In the energy sector, ATPC’s strategic partnership with Swiss One Oil & Gas AG is driving the procurement and distribution of refined fuel products, including EN590 10PPM diesel and Jet Fuel A1. In addition to supporting its energy-related initiatives, ATPC will also utilise the proceeds to enhance its healthcare segment, further expanding its wellness and medical solutions to new markets. The capital infusion will strengthen product innovation, regulatory approvals, and commercialisation efforts across ATPC’s diverse portfolio.

o Chemlite Innovation says there is rising demand for high-precision electronic components KUALA LUMPUR: The electrical and electronic (E&E) sector is expected to grow this year, driven by the rising demand for high-precision electronic components, said Chemlite Innovation Bhd. Its chief operating officer and executive director, Heng Chee Khiang, said this is especially evident in the semiconductor and E&E industries, where surface finishing plays a critical role in enhancing durability, conductivity, and corrosion resistance. “To meet evolving industrial needs, companies are investing in advanced coating automation and cleanroom capability to improve process efficiency and maintain stringent quality standards. “With these favourable market trends, Chemlight Innovation is well-positioned to capitalise on industrial growth, leveraging our expanding operating capacity, automation technology, and research and development (R&D) efforts to strengthen our market presence and cater to the rising demand for high-value surface finishing treatment solutions,” he said. Heng said this at a press conference yesterday after the company’s listing ceremony in Bursa. At the opening gong, the engineering support services company debuted at 23 sen in the ACE Market, a discount of 2 sen, which was an 8% decrease from the initial public offering (IPO) price of 25 sen, with 22.04 million shares traded. On the opening price, Heng said that although the price did not meet expectations,

(From left) UOB Kay Hian Securities (M) Sdn Bhd capital markets managing director Tan Meng Kim; Chemlite Innovation independent non-executive directors Lee Kooi Hoon and Choo Yih Woei; Chong; Heng; independent non-executive directors Lim Paik Nee and Wong Wan Chin; UOB Kay Hian Securities (M) Sdn Bhd deputy CEO Anne Leh Geok Meng.

“Meanwhile, RM500,000 from the proceeds would be used to establish a dedicated R&D department to drive innovation in its surface finishing treatment services; RM5.5 million to repay bank borrowings to strengthen the company’s financial position; RM4.2 million for working capital to support ongoing operational growth, and RM4 million to cover costs related to the IPO process,” it said. Chemlite Innovation CEO Chong Yuen Fong said that the company’s production capacity is divided into two markets, which are metal plating and non-metal plating, with production at over 80% capacity and 60 to 70%, respectively. “With the new future plant (operating facility in Penang Science Park North), and an increase of four plating lines for metal and non-metal segments each, we are looking at 75% and 200% increase in terms of production capacity, respectively,” he said. – Bernama long-term strategy is to build a big network of such outlets throughout the Peninsular as one of the distribution channels for the group’s products. “Through our retail outlets, we are able to sell approximately 200 chickens per outlet per day. “We see owning these retail outlets as a cost effective way to increase our presence in the food business. Our long term strategy is to open another 50 to 100 outlets over the next five to 10 years.” CAB Cakaran recently reported net profit of RM33.89 million on the back of revenue of RM593.61mil for its first quarter ended Dec 31, 2024.

the company believed a range of external factors would improve the market performance. “We remain focused on executing our strategy growth plans, such as expanding our production capability, further strengthening our market presence in the semiconductor and E&E sectors, and driving greatest operational efficiency.” In a statement yesterday, Chemlite Innovation said it raised RM30 million from the IPO, where RM7.8 million would be utilised to purchase a parcel of industrial land to construct an additional operating facility in Penang Science Park North to expand its operational capabilities. It said RM7 million would be used to set up two cleanrooms to provide cleanroom cleaning and packaging services to support customers who require contamination-free environments and RM1 million to invest in automation machinery and equipment to upgrade and strengthen its operational capabilities.

CAB Cakaran opens 15th Home Mart outlet in Penang KUALA LUMPUR: CAB Cakaran Corporation Berhad, one of Malaysia’s largest food producers, opened its 15th medium-sized supermarket, Home Mart Fresh & Frozen Sdn Bhd in Sri Rambai, Penang recently. These locations will remain in the outskirts area of Peninsular Malaysia. Presently, the 15 outlets of Home Mart and Jaya Gading are in Pahang, Kelantan, Perak, Penang and Kedah.

Most of these outlets are two to three shop lot sizes, to cater for the cold room and fresh produce. CAB first entered the supermarket business in 2010 to cater to the outskirts, where the demand for quality, fresh foods and a comfortable shopping experience is underserved. CAB Cakaran Group managing director Christopher Chuah Hoon Phong said: “The group’s

Currently CAB Cakaran owns eight outlets of Home Mart and seven outlets of Pasaraya Jaya Gading Sdn Bhd. While Home Mart is 100% owned by CAB Cakaran, Jaya Gading is 58.02% controlled by it. CAB Cakaran intends to open another five to seven outlets of Home Mart this year depending on its ability to secure the locations.