15/05/2025

BIZ & FINANCE THURSDAY | MAY 15, 2025

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US-China tariff war pause positive for M’sian market: MARC KUALA LUMPUR: The Malaysian market outlook remains positive following the recent 90-day pause in the trade dispute between the United States and China, according to Malaysian Rating Corp Bhd (MARC). Group CEO Arshad Mohamed Ismail noted that the Malaysian government has taken proactive steps to mitigate the impact of US tariffs. He said the domestic bond and sukuk markets continue to demonstrate ample liquidity. “Given the latest progress in negotiations between the US and China, the current outlook appears encouraging. However, continuous monitoring of developments is essential,” he told Bernama on the sidelines of the MARC Lead Managers’ League Table Awards 2024. On the credit front, Arshad stated that availability should not be a concern, though it will ultimately depend on issuer demand. He added that some issuers with significant exposure to US markets may be more sensitive to tariff developments and should closely track the ongoing negotiations. Meanwhile, Arshad said Malaysia is well positioned to reach a mutually beneficial arrangement, given the encouraging progress in negotiations between the US and China. He added that the relevant policymakers are approaching the situation with sound judgment to ensure outcomes that are advantageous to all stakeholders. Additionally, Arshad said MARC projects Malaysia’s gross domestic product growth for 2025 to be a moderate 4.4%, which he described as still a commendable figure. In his welcome speech, he said the capital market cannot overlook the growing challenges in today’s global landscape, including heightened geopolitical risks, persistent inflation, and uncertain trade policies – particularly from the US –as well as shifting regulatory environments, with regions such as the US and Europe beginning to loosen their monetary policies. Arshad said the pace and extent of these moves will largely depend on their respective inflationary conditions, and these shifts could influence liquidity flows into emerging markets like Malaysia’s, offering both opportunities and risks. – Bernama Natural rubber output in March down 20% from February KUALA LUMPUR: Malaysia’s natural rubber (NR) production fell by 20.3% to 28,712 tonnes in March 2025 from 36,005 tonnes in February 2025, said the Department of Statistics Malaysia. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said, however, production increased by 6.5% compared with 26,966 tonnes in March 2024. “Production of NR in March 2025 for Malaysia was mainly contributed by smallholders sector (90.9%) compared to estates sector (9.1%),” he said in a statement yesterday. Total NR stocks in March increased by 4.1% to 215,054 tonnes from 206,665 tonnes in the preceding month. Rubber processors factory contributed 87.6% to the stocks, followed by rubber consumers factory 12.3%, and rubber estates 0.1%. Mohd Uzir said Malaysia’s NR exports amounted to 52,573 tonnes in the month reviewed, down 4.1% from 54,847 tonnes in February. “Exports were contributed by NR-based product such as gloves, tyres, tubes, and rubber thread. Gloves were the main exports of rubber based products worth RM1.3 billion in March 2025, an increase of 9.5% compared to RM1.2 billion in February 2025,” he added.– Bernama

OSK Holdings shareholders approve 1-for-2 bonus issue Ong (fourth from right) flanked by independent non-executive directors Farah Deba Mohamed Sofian and Mazidah Abdul Malik, deputy group managing director Ong Ju Xing, group managing director Ong Ju Yan, independent non-executive director Leong Keng Yuen, executive director Datuk Saiful Bahri Zainuddin and independent non-executive director Wong Wen Miin holding up OSK Holdings’ 2024 annual report at the end of the company’s meetings.

supported by stronger contributions across most business segments. While the Industries segment recorded higher expenses, these were related to stra tegic investments, including the acquisition of two additional cable manufacturing plants in Johor, which is expected to enhance future production capacity once operational. “We continue to see encouraging progress across our key segments, particularly in property and financial services. The strategic investment in expanding our industrial capabilities is also expected to support long term growth as the new facility ramps up production. “As we move forward, we remain focused on operational excellence and seizing growth opportunities to deliver sustained value to our shareholders,” Ong said. The board proposed a single-tier final dividend of 5 sen per share for FY24, which was approved by shareholders, bringing the total dividend for FY24 to 8 sen.

o Company’s gesture of appreciation for continued trust and support, proposed final dividend of 5 sen per share for FY24 also receives nod

PETALING JAYA: Shareholders of OSK Holdings Bhd have approved a bonus issue of one bonus share for every two existing shares. The move is intended to reward shareholders by increasing their equity stake at no additional cost, as a gesture of appreciation for their continued trust and support in the group’s long-term vision. “We have delivered resilient results driven by our diversified portfolio and long term growth strategy. The bonus issue and higher dividend payout demonstrate our appreciation to shareholders and our confidence in the group’s future prospects,”

executive chairman Tan Sri Ong Leong Huat said at the company’s annual general meeting and extraordinary general meeting yesterday. At the meetings, shareholders approved OSK Holdings’ financial statements for the financial year ended Dec 31, 2024 (FY24) and endorsed key corporate proposals, including the issuance of bonus shares. The group reported revenue of RM1.66 billion for FY24, marking a 3.75% increase from RM1.6 billion in the previous year. Profit before tax rose by 10% to RM611.4 million, up from RM555.1 million in FY23. The improved performance was

‘IPO proceeds to drive Sunway Healthcare capex growth’ KUALA LUMPUR: Sunway Healthcare Group’s (SHG) planned initial public offering (IPO) is unlikely to significantly dilute earnings, with proceeds expected to drive the group’s high capital expenditure (capex) growth, particularly in its property segment, according to Hong Leong Investment Bank Bhd (HLIB). segments are entering an earnings upcycle, hence, it should help to mitigate any potential earnings impact from the partial healthcare dilution,” it said. medical tourism hub,” it said. Meanwhile, the investment bank said that in FY24, Sunway recorded its highest-ever property sales at RM3 billion and is setting a higher goal of RM3.6 billion for FY25 supported by a RM4.1 billion launch pipeline and the group is entering its busiest year in Johor with RM1.26 billion in planned launches.

The opening of Sunway Medical Centre (SMC) Damansara in December last year and SMC Ipoh in April this year shows that SHG continues to increase its hospital portfolio from three to five. HLIB said foreign patients offer substantial earnings potential, generating over four times the revenue per bed and significantly higher earnings before interest, taxes, depreciation and amortisation margins compared to domestic patients. “Recognising this potential, SHG targets to scale up its foreign patient mix to 15% in 2025 (from around 10% in 2024). This should position SMC Sunway City as an emerging regional

The investment bank said in a note yesterday that SHG targeted its IPO by the end of financial year 2025 (FY25) or the first half of FY26, but healthcare would remain a core earnings pillar and it is expected that Sunway Bhd (Sunway) would retain a significant stake and consolidate SHG’s results. “With strong growth ahead from hospital expansions and rising foreign patient volumes, the listing is unlikely to cause a material earnings dip. “Sunway’s property and construction

“In Sunway City Iskandar Puteri, while residential launches are modest, the group is accelerating industrial, commercial and tourism components to lay the groundwork for recurring income and residential growth. “Meanwhile, Sunway is also marking a new milestone in Singapore with four active projects, the most in its history,“ it said. HLIB has maintained its forecast for the company with a‘buy’rating with an unchanged target price of RM5.70. – Bernama