20/05/2025

BIZ & FINANCE TUESDAY | MAY 20, 2025

15

Affin posts higher pre-tax profit of RM178.2m in Q1

M’sia present at Semicon SEA for 10th time in a row

KUALA LUMPUR: Malaysia is strategically positioning itself as a critical nexus for semiconductor supply chain resilience in the Asia Pacific region, as global trade dynamics shift amid geopolitical pressures. Towards this end, the Malaysia External Trade Development Corporation (Matrade) will for the 10th consecutive time, participate in Semicon Southeast Asia (SEA) 2025, the region’s premier platform for the global electronics and semiconductor industry. A total of nine Malaysian companies, with a broad line-up of various products and services tailored for the microelectronics and semiconductor value chain will be participating. These offerings include test interface and test development solutions comprising automated test equipment and components such as test sockets as well as enclosure, frame, structure and system integration services. In addition, e-waste services will also be promoted as part of Matrade’s efforts to drive the adoption of ESG practices. “Malaysia is taking proactive steps to strengthen its domestic ecosystem and enhance the resilience of the semiconductor and electronics supply chain, as the global E&E landscape evolves amid geopolitical uncertainties”, said Matrade CEO Datuk Mohd Mustafa Abdul Aziz. According to him, Matrade’s participation in Semicon SEA 2025 aligns with the government’s strategic efforts to elevate Malaysia’s position within the global semiconductor value chain. Furthermore, he added that this also underscores Matrade’s pivotal role in driving market access beyond traditional partners and unlocking new business opportunities. In 2024, Malaysia’s trade in the E&E sector reached RM1.057 trillion, with exports contributing RM601.21 billion. Batik Air launches Kota Kinabalu-Seoul direct service KUALA LUMPUR: Batik Air is poised to boost inbound tourism from South Korea to East Malaysia with the launch of its new direct service between Kota Kinabalu, Sabah (BKI) and Incheon International Airport, Seoul (ICN), commencing Sept 12. Operating three times a week, the new route eliminates the need for layovers in Kuala Lumpur or other cities – offering a faster, more convenient option for travellers. It opens a seamless gateway for South Korean visitors to explore the natural wonders and cultural treasures of Sabah. Kota Kinabalu is fast gaining momentum as a strategic gateway for Korean travellers exploring Southeast Asia. From January to September 2024, Sabah welcomed nearly 152,000 visitors from South Korea, a clear reflection of the state’s growing appeal. Batik Air CEO Datuk Chandran Rama Muthy described the new service as part of the airline’s broader vision to strengthen regional ties and elevate East Malaysia’s connectivity. With the launch of the BKI–ICN service, Batik Air reinforces its strategic expansion into North Asia, furthering its mission to deliver seamless connectivity while fuelling two-way tourism between South Korea and East Malaysia, and strengthening Kota Kinabalu’s standing as an emerging international aviation hub.

income, improved funding mix, and a stronger contribution from associates.” Amid tight monetary conditions and global headwinds, he said they maintained prudent cost and credit discipline. “While we remain cautious on the near term outlook due to external volatility, we remain confident in our ability to navigate the landscape, supported by healthy asset quality, a well-diversified balance sheet, and disciplined execution,” he said. He remarked that they are delighted to announce that their first international credit rating of A3 from Moody’s Ratings strengthens their credit profile and elevates the group’s standing in global capital markets. “This positions us to secure more cost efficient USD funding, diversify our investor base, and unlock strategic cross-border financing opportunities that support our long-term growth trajectory. AffinAlwaysX, our new mobile banking application, was successfully launched internally to 5,700 employees and is performing well ahead of its public rollout on May 22, 2025. Designed with enhanced UI/UX features, excellent security and exciting upgrades, AffinAlwaysX is expected to drive exponential growth towards a target of 1.3 million users by year-end. This initiative will also strengthen CASA stickiness, supported by a focused payroll acquisition strategy,” said Wan Razly.

“We expect the momentum in CASA growth to snowball into lower cost of funds and net interest margin expansion,” he said, adding that their strong business pipeline includes financial advisory services and debt capital market deals - highlighted by their recent lead role in financing Macrovalue’s acquisition of Cold Storage Singapore - with many more landmark deals to follow. “Our recent collaboration with MUFG Bank (Malaysia) Bhd, the fifth largest bank in Asia, underscores our commitment to providing tailored solutions, facilitating cross-border trade and investment, and expanding our expertise in key areas including Islamic finance, Green finance, and digital transformation. By leveraging our deep market knowledge and MUFG’s global network, we are unlocking new opportunities for our customers and business partners, helping them scale in an increasingly interconnected global economy,” he said. Net interest income (NII) recorded RM206 million, an increase of RM12.3 million or 6.4% as compared to the preceding financial quarter of RM193.7 million. Affin Islamic Bank Bhd recorded a PBT of RM87.1 million for the financial period ended March 31, 2025. This represented a decrease of RM11.5 million as compared to RM98.6 million in the previous corresponding period. The result was mainly attributable to a higher operating expense and a higher allowance for impairment losses of RM13 million and RM28.6 million respectively.

KUALA LUMPUR: Betamek Bhd, an original design manufacturer and a player in electronics manufacturing services (EMS) for the automotive industry, through its wholly owned subsidiary Betamek Research Sdn Bhd (BRSB) entered into a memorandum of collaboration (MoC) with SiGenex Global Holdings Pte Ltd, a Singapore-based company in development of technologies for point of care genetic testing, with the signing taking place yesterday at Expo 2025 Osaka, Kansai, Japan. The collaboration aims to jointly explore a framework in consultation, cooperation and collaboration to leverage on the information, experience, technology and technical assistance between the parties for a speedier and more cost-effective next-generation artificial intelligence (AI)-integrated genomics diagnostic and sequencing solution. Under the MoC, BRSB will leverage its engineering and electronics manufacturing expertise to support the design-for manufacturing and assembly of SiGenex’s proprietary Benchtop Integrated Next Generation Sequencing (NGS) Platform, which utilises cutting-edge Digital Microfluidics (DMF) technology for cost-effective, high precision DNA/RNA sequencing. The collaboration encompasses the development of manufacturing protocols, establishment of ISO and GMP-compliant facilities, and provision of end-to-end engineering and R&D support for scale-up. Furthermore, BRSB will also assist in setting up dedicated production lines for DMF sample cartridges and platform components, while SiGenex will contribute the necessary technical specifications, engineering support, and global commercialisation strategy including pilot testing via hospitals, clinics, and laboratories. Betamak executive director Muhammad Fauzi Abd Ghani said, “This collaboration marks an important diversification milestone KUALA LUMPUR: Affin Group reported a profit before tax (PBT) after zakat of RM178.2 million for the financial period ended March 31, 2025, representing an increase of RM34.1 million or 23.7% compared to RM144 million recorded in the previous corresponding period. The increase in PBT was primarily driven by a higher net income of RM39.4 million. The gross loans and financing marked a year-on-year growth of 7.1%, achieving a value of RM72.9 billion, as compared to RM68 billion as of March 31, 2024. Customer deposits increased by 5.2% to RM75.5 billion, while current account and savings account (CASA) ratio continued to improve significantly to 32.2% as of March 31, 2025, as compared to 24.9% as of March 31, 2024. Affin Group president and CEO Datuk Wan Razly Abdullah said, “Our first quarter performance reflects continued execution of our Affin Axelerate 2028 (AX28) Plan, with PBT rising 23.7% year-on-year to RM178.2 million. This was underpinned by higher net interest o Earnings boosted by stronger net interest income, improved funding mix, and higher associate contributions under AX28 plan

He added their CASA ratio stood at 32% as at Q1’25, surpassing the FY25 target of 31%, is a result of their continued efforts to lower the group’s cost of funds. Betamek, SiGenex in genomics diagnostics tie-up

From left: Betamak Bhd chairman Ahmad Subri Abdullah, MARii CEO Azrul Reza Aziz and SiGenex Group Holdings CEO Tanvir Rsab.

for Betamek as we apply our EMS and R&D capabilities beyond automotive electronics into the high-value biotech sector. SiGenex’s breakthrough NGS platform aligns with our strategic vision to become a regional centre for precision manufacturing and smart diagnostics assembly. We are confident this partnership will open up new innovation and commercial opportunities across the region.” Once successfully validated, SiGenex intends to exclusively outsource the manufacturing and assembly of its NGS platforms and cartridges to

Betamek for the Asia region, subject to a future binding agreement that will define pricing, quality standards, and production terms. Both parties will continue working towards a definitive agreement within the next 12 months, with the aim of formalising a long-term commercial manufacturing partnership. The collaboration showcases Betamek’s shift into new tech domains, driving long term growth through innovation while supporting Malaysia’s role as a regional medtech hub.