16/05/2025

FRIDAY | MAY 16, 2025

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Nungsari: Bright outlook for KK International Airport

HLIB optimistic on Malaysia’s RE sector, keeps ‘overweight’ call

assessing these risks and will implement appropriate measures to ensure the successful execution of the agreement,“ it said. Further, the filing said the agreement is not expected to have any material impact on PJBumi Group’s issued and paid-up capital, substantial shareholders’ share holdings, net asset per share, or gearing. “The board also believes that it will not affect the group’s earnings per share or overall financial performance for the financial year ending June 30, 2025,“ it said. KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB) is optimistic about Malaysia’s renewable energy (RE) sector due to its strong structural themes and positive earnings growth cycle, maintaining its “overweight” call on the industry. In a note yesterday, the investment bank said that key catalysts include contract rollouts and fresh RE quotas. It said Malaysia has ambitious targets, but the sector is suffering from nascent recycling infrastructure, and that regulations are lagging behind those of leading markets. “The country is in the midst of drawing up new guidelines based on existing regulations to specifically manage solar panel waste. “According to Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad, several measures under consideration to be incorporated into the new guidelines include a buyback system, specialised collection centres and/or an Extended Producer Responsibility (EPR) system as seen in other countries,” it said. HLIB noted that at present, it is not exactly clear-cut whether solar waste falls under the category of e-waste, as defined under the Environmental Quality (Scheduled Wastes) Regulations 2005. Overall, the investment bank has main tained its“buy”call on Solarvest Holdings Bhd, with a target price of RM2.25, as it is a major beneficiary of an extended order book upcycle phase, driven by large-scale projects leveraging its dominant positioning. It said the company is strongly committed to the proper recycling of defective or damaged solar panels, which aligns with broader environmental, social, and governance goals, reducing potential long-term risks. “At Solarvest, due process is given to prevent and minimise waste and, wherever possible, repurpose these panels. “Failing which, these panels are sent to licensed and approved vendors for recycling – these vendors utilise methods like cementation, solidification, and recycling, depending on the material,” it said. Going forward, HLIB said that in the event EPR is implemented, panel manufacturers could engage engineering, procurement, construction and commissioning players (or operations and maintenance providers) and local recycling specialists to comply with guidelines, thereby supporting the development of a domestic recycling ecosystem. Nevertheless, HLIB believes that the cost benefit analysis of local recycling versus shipping panels back to manufacturers’home countries (with most panels produced in China) for large-scale recycling could limit potential revenue streams for local players. – Bernama

KUALA LUMPUR: The push for greater regional economic integration amid shifting global trade dynamics bode well for the prospects of Kota Kinabalu International Airport (KKIA), thanks to its proximity to key East Asian markets and the broader Asean region. These factors position KKIA in a uniquely strategic position, which calls for a long-term o Proximity to East Asian markets, regional economic integration push and shifting global trade dynamics bode well, says Khazanah Research Institute and MAHB chairman

The expansion of Kota Kinabalu Airport is set to begin in the third quarter of this year. – BERNAMAPIC

people and goods across the borders within Asean will strengthen Asean as an economic bloc. “The focus now is so much on border controls instead of promoting greater flows of goods. This division does not promote economic growth and integration. There should be more bilateral initiatives, such as the Johor-Singapore Special Economic Zone, and past initiatives such as the IMT-GT and BIMP Eaga should be rejuvenated,” he said. Nungsari also said that economic integration is beyond infrastructure, as Asean should move towards becoming a customs union to allow free movement of goods within the region. He said this would allow small and medium enterprises all over the region to leverage a much larger demand side, beyond their national borders. “It will also make Asean an attractive market in which to invest. A single market of 600 million people, in fact, is not just in potential (but) a significant leverage against the size of China or India,” he said. Responding to a question about the ongoing geopolitical tug-of-war between the US and China, Nungsari opined that Asean and Malaysia should act in their own interests. “We do whatever benefits us. It does not matter whether it is with the US, China, or anyone. We are and should remain non discriminatory in that sense. “That should be our posture. But we are aware of the neighbourhood we live in. We are aware of the tensions that exist. And we are aware that the world is undergoing a transition,” he concluded. – Bernama

development strategy, said Khaza nah Research Institute chairman Dr Nungsari Ahmad Radhi ( pic ). “I am bullish about KKIA, and I think there has to be more conversations between the federal and state governments on the long term development strategy of Kota Kinabalu as a transportation hub,” he said. “KKIA is two hours closer to major East Asian markets such as the Philippines, Korea, China, and

upgrades include an expanded main terminal, a new multi-storey car park, seven additional aircraft parking bays and road improvements around the airport. While Kuching International Airport in Sarawak has similar ambitions, Nungsari acknowledged that it faces greater challenges than KKIA. Never theless, he remains confident in both airports’ opportunities to strengthen Malaysia’s aviation sector, triangulating the two ends of Kalimantan and the peninsula. On the international, front, US-China trade tensions and the many unilateral decisions taken by the US will change global trade in some significant ways. Regardless of the outcome, Asean has to consolidate further to be able to respond to these changes as a single bloc. Key to this economic integration is transportation and logistics within the region, as well as connecting it to the outside world. Furthermore, intra-Asean trade growth depends on greater connectivity within the region. Asean has had various initiatives, namely the Asean Economic Community, Asean FTA, Asean+3, and it is also part of the Regional Comprehensive Economic Partnership encompassing 15 countries in Asean, China, Japan, South Korea, Australia and New Zealand. The potential of these initiatives has mainly remained unfulfilled, and the time is right to make it all happen. Nungsari posited that greater flows of

Japan than Kuala Lumpur. It is already growing as a passenger destination but has yet to develop as a cargo destination,” he said in an exclusive interview with Bernama. Nungsari, a former Malaysian Aviation Commission executive chairman, now serves as non-independent non-executive chair man of Malaysia Airports Holdings Bhd (MAHB). “There is also the significant infrastructure development under way in Kalimantan, primarily driven by the relocation of Indonesia’s capital city to Nusantara in East Kalimantan. Borneo is set to become the centre of gravity in the region and the development of KKIA must be carefully crafted, taking into account its potential growth and existing constraints,” he said. It was reported that the expansion of KKIA is set to begin in the third quarter of this year, following Cabinet approval of the RM442.3 million project in November. The expansion will increase the airport’s annual passenger handling capacity from nine million to 12 million passengers a year. The

PJBumi signs deal on onshore drilling rigs with Intlef PETALING JAYA: PJBumi Bhd’s wholly owned subsidiary, PJBumi Heavy Engineering and Services Sdn Bhd has entered into a master construction agreement with Intlef Oil and Gas Group Co Ltd. As part of the payment terms, PJBumi Heavy Engineering will provide Intlef with an unconditional and irrevocable corporate guarantee worth US$5 million (RM21.5 million). In return, Intlef will grant the buyer a credit limit of the same amount for up to 180 days. mentation, delivery date and location, and rig-up schedule – are finalised, PJBumi Heavy Engineering will issue a purchase order to Intlef. The “rig-up” refers to assembling and preparing the drilling rig at the designated site for operational readiness. least 150 days prior to the effective date of each purchase order. According to Bursa Malaysia filing, the full payment is to be made within 30 days after the rig-up date.

PJBumi in the filing said as with any business arrangement, the execution of this agreement is subject to various risks. These include financial management challenges, fluctuations in material prices, and potential changes in political, economic, or regulatory conditions. “Nevertheless, the board of directors of PJBumi has assured that it will exercise due diligence in

Under the agreement, Intlef will design, build, commission and supply onshore drilling rigs to PJBumi Heavy Engineering, along with equipment and documentation. According to a Bursa Malaysia filing, the agreement includes training for rig operators and main tenance personnel, crew fami liarisation and safety procedures.

Intlef will invoice PJBumi Heavy Engineering for 100% of the rig contract price on the effective date, which is defined as the rig-up date. In addition, PJBumi Heavy Engi neering is required to provide an irrevocable payment guarantee from a reputable financial institution at

The corporate guarantee will remain valid throughout the duration of the agreement and must be in a form agreed upon by both parties. Once the details of each rig – such as contract price, technical speci fications, equipment and docu