06/05/2025

BIZ & FINANCE TUESDAY | MAY 6, 2025

READ OUR

HERE

14

Malaysian Paper

/thesun

West River sets course for expansion

KUALA LUMPUR: Payments Network Malaysia Sdn Bhd (PayNet) has launched a fintech-focused accelerator, PayNet Fintech Hub, which is expected to unlock RM5 billion in intangible value for 50 selected fintechs through mentorship, funding access and global exposure. PayNet Group CEO Farhan Ahmad said the hub is built to address key issues faced by fintechs in Malaysia to scale beyond the foundational stage. “There are about 300 fintechs in Malaysia, but we expect fewer than 50 to join this programme. We will be very selective and we’ll choose fintechs we believe are at the right stage and they will get the benefits and will get close to RM5 billion intangible value benefits,” he said at the launch yesterday. Farhan said the hub is expected to “significantly accelerate” fintech growth in the country. “The hub is our response to a Samenta welcomes govt moves to mitigate US tariffs’ impact on SMEs KUALA LUMPUR: The Small and Medium Enterprises Association of Malaysia (Samenta) has welcomed the government’s initiatives to mitigate the impact of reciprocal tariffs imposed by the United States on SMEs. Its president, Datuk William Ng, said that while the vast majority of SMEs are neither exporters nor manufacturers, they will still be affected by the tariffs as costs rise and consumer spending declines. He said the association hopes the government will halt all new and planned cost increases, including the expansion of the sales and service tax (SST), and consider lifting the ban on foreign workers to help SMEs in the services sector cope with the tariff. “What is needed is a broad-based basket of interventions, given that different industries are impacted differently. “What would help SMEs most at this time is avoiding panic, as most of our SMEs are domestic-facing businesses. Any loss in consumer confidence and spending will hurt our SMEs more than the tariffs themselves,“ he told Bernama when contacted yesterday. Ng noted that, beyond supporting affected businesses, especially those dependent on the US market or heavily influenced by supply chain costs, the government must also ensure that no incremental costs are introduced. “These include halting all planned cost increases, such as those related to electricity and water tariffs, council fees, subsidy rationalisation, and the ex pansion of the SST,” he added. In a special Dewan Rakyat sitting yesterday, Prime Minister Datuk Seri Anwar Ibrahim said the government has agreed to raise the guarantee allocation under Syarikat Jaminan Pembiayaan Perniagaan Bhd by RM1 billion, particularly to assist SMEs affected by the US tariffs in securing loans from commercial banks. The government has also approved an additional RM500 million for the soft loan fund offered through development financial institutions. Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

service providers, and access to a co working space. PayNet said these benefits are designed to help founders preserve cash burn, navigate challenges, refine business models, sharpen go-to-market strategies, raise funds, and define a clear path towards a successful exit. The most promising startups from the Community will be picked for the Catalyst programme. This Catalyst track is in partnership with global institutions to give top Malaysian fintechs international exposure, mentorship, resources, and access. Fintechs in Catalyst will join a fully sponsored 10-week accelerator pro gramme in partnership with Imperial College London. This includes a trip to London to meet with the Imperial faculty, as well as European and US startups. Participants will get coaching and mentoring by the Imperial faculty, culminating in a final demo day that offers exposure to venture capitalists and potential corporate partners. The accelerator is fully funded by PayNet. ACE Market yesterday. Lim said the proposed facility is expected to have around 35,000 sq ft of built-up area, significantly larger than its current site in Kajang. “It will accommodate expanded production lines for the manu facturing of electrical panels and distribution boards, along with warehousing space.” Apart from physical expansion, West River also plans to diversify geographically. Currently, about 80% of the company’s revenue comes from Klang Valley, but it is now eyeing project opportunities in Johor and Penang, especially within sectors such as hospitality and data centres. “We have two projects pending on the northern side, one in Langkawi and another in the hotel sector. Meanwhile, we are also tendering for data centre projects in Johor, which is a hot sector right now. About 13% of our RM1 billion tender book consists of data centre projects,” Lim disclosed. On financing strategy, he said West River is utilising RM5.6 million (20%) from the IPO to repay borrowings, aiming to reduce its gearing ratio from around 0.3 to between 0.1 and 0.2. “This will provide more flexibility for future fundraising if needed.” Commenting on Malacca Securities’ projection of a 9.7% compound annual growth rate (CAGR) in core revenue over the next three years, Lim expressed confidence in the company’s growth trajectory. “While Malacca Securities projected a 9.7% CAGR in earnings over three years, our internal targets are more ambitious at 15%.” West River opened at 39.5 sen on its debut, representing a 1.28% premium over its IPO price of 39 sen per share. Based on West River’s enlarged share capital of 357.7 million shares and the IPO price of 39 sen per share, its market capitalisation upon listing is about RM139.5 million. Lim said the IPO performance met internal expectations. “We are happy that investors still have confidence in us. The demand in the M&E sector remains strong.”

public offering (IPO) proceeds into land acquisition and the develop ment of a new manufacturing facility to increase its production capacity. “Our initial plan is to buy land, get the necessary approvals, and build the plant ourselves, a process we estimate will take around three years. However, we are also exploring the option of acquiring ready-built buildings which could shorten the timeline depending on market availability,” he said in a press conference following West River’s listing on Bursa Malaysia’s

o Company plans new factory to boost production, eyes opportunities in Johor and Penang, especially in hospitality and data centres

Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

new manufacturing facility in Klang Valley and extend its market presence into Johor and Penang. Managing director Lim Yong Lai said the group aims to channel RM10 million (35.84%) of its initial

KUALA LUMPUR: Engineering services provider West River Bhd has unveiled plans to construct a

From left: M&A Securities Sdn Bhd corporate finance deputy head Danny Wong, West River Bhd independent non executive directors Tan Yiing Fung and Kho Zhen Qi, independent non-executive chairman Datuk Seri Dr Shahril Mokhtar, Lim, executive director Cheong Wee Kim and independent non-executive director Wong Kian Leon, and M&A Equity Holdings Bhd managing director (corporate finance) and executive director Datuk Bill Tan at the listing ceremony.

PayNet launches accelerator to spur fintech sector growth in Malaysia

global call for smarter collaboration and accelerated innovation, uniting the fragmented fintech ecosystem and creating real, scalable outcomes, and we are very excited about its possibilities,” he added. Farhan disclosed that PayNet is also developing an Open Data and Open Banking initiative for Malaysia. “This would be a massive catalyst and enabler to fintech success. When we launch that project as well, this will really help this project.” Farhan said a thriving fintech industry is the key to delivering financial services that can advance Malaysia’s growth and innovation goals. The hub is a programme with two pillars – Community and Catalyst. Fintechs selected into Community will get direct access to founders and ecosystem players to exchange ideas and share learnings, 450 hours of mentorship by a network of founders and domain experts, corporate players from banking, payments, and tech for partnership opportunities, and a pool of fintech investors who

PayNet chief marketing officer Gary Yeoh (left) and Farhan at a press conference after the launch yesterday.

can mentor, evaluate and invest in Fintech Hub members. All Fintech Hub Community members will also receive financial support in the form of more than RM1

million in PayNet value-added credits, over RM600,000 worth of advisory services across legal, finance, HR, and market research, up to RM3 million in cloud credits and support from cloud