03/06/2025

BIZ & FINANCE TUESDAY | JUNE 3, 2025

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Economic momentum continues in early 2025

Flexidynamic reports revenue growth of 268% in Q1 KUALA LUMPUR: Flexidynamic Holdings Bhd, an established solutions provider for the rubber glove manufacturing industry, announced its unaudited financial results for the first quarter ended March 31, 2025 (Q1 FY2025), marking a robust start to the financial year with a 268.1% year-on-year increase in revenue to RM17.47 million, compared to RM4.75 million recorded in the same period last year (Q1 FY2024). The surge in revenue was mainly driven by enhanced project deliveries under the group’s glove chlorination system segment and mechanical and electrical (M&E) engineering works, supported by ongoing system upgrades among existing clients. Profit before tax (PBT) doubled to RM0.31 million, from RM0.15 million in Q1 FY2024, reflecting the positive operating leverage from the higher topline. On a quarter-on-quarter basis, revenue declined from RM20.95 million in Q4 FY2024 due to lower revenue recognition from M&E engineering works. However, Flexidynamic recorded a turnaround from a loss before tax (LBT) of RM0.32 million in the previous quarter to a profit before tax of RM0.31 million in Q1 FY2025. This improvement was primarily due to the absence of one-off costs such as allowance for expected credit losses and acquisition-related losses booked in Q4 FY2024. At the company’s 6th annual general meeting on May 30, 2025, all resolutions tabled were duly passed by shareholders, including included the re-election of directors, the reappointment of external auditors, the authority to issue shares, and the renewal of the mandate for recurrent related party transactions. Managing director Tan Kong Leong said with the glove sector stabilising, the company sees ample opportunities to reinforce its leadership in the glove chlorination system space while expanding into new high-value verticals. To strengthen its market position, the group is expanding upstream into the manufacturing of glove formers. Paragon Globe posts strongest ever financial results JOHOR BAHRU: Paragon Globe Bhd, a Main Market-listed property developer on Bursa Malaysia Securities Bhd, announced its strongest ever quarterly and full-year financial results for the financial year ended March 31, 2025 (FY2025). The group’s performance was primarily driven by robust property development activities, significant land disposals and effective operational management. For Q4 FY2025, PGB achieved a substantial increase in revenue to RM151.5 million, compared to RM7.9 million in the corresponding quarter last year. Profit before tax surged dramatically to RM71.1 million from RM2 million, with net profit attributable to the owners of the parent rose to RM53.4 million, a significant increase from RM1.3 million in Q4 FY2024. The group’s annual financial performance similarly showed exceptional growth. Revenue for FY2025 rose significantly to RM306.3 million, an increase of more than 500% compared to RM51.0 million recorded in FY2024. Profit before tax for the year increased significantly to RM140.2 million from RM0.8 million in the previous year. Net profit attributable to the owners of the parent reached RM105.6 million, making a remarkable turnaround from the net loss of RM1.2 million in FY2024. “This year’s outstanding financial performance underscores the strength of our strategic initiatives, prudent landbank optimisation and the diligent execution by our management team,” executive chairman Datuk Sri Edwin Tan Pei Seng said.

o Country records 4.4% GDP growth while inflation eases

mainly due to slower price increases in personal care (3.6%), restaurants and accommodation (2.9 %), and housing-related costs (1.9 %). The trade sector continued to show resilience in March 2025, with total trade rising by 2.2% to RM249.9 billion, reflecting the nation’s steady integration into global supply chains despite ongoing global uncertainties. “Labour market conditions continued to improve in the first quarter of 2025, reinforcing the economy’s steady momentum. Employment rose by 3.0% year-on-year, bringing the total number of employed persons to 16.7 million. The employment-to-population ratio, which reflects the economy’s capacity to generate jobs, edged up to 68.6% from 68.2% in the same period last year.

activity, Malaysia’s Industrial Production Index (IPI) expanded by 3.2% year-on-year in March 2025, underpinned by higher output in the manufacturing and mining sectors which rose by 4.0% and 1.9%, respectively. However, the electricity sector recorded a contraction of 2.7%, partly offsetting overall gains. On a month-on-month basis, the IPI posted a robust increase of 9.3%, reflecting short-term recovery across key sub sectors. For the first quarter of 2025, the IPI moderated to a growth rate of 2.3% compared to 3.4% in the previous quarter, with the manufacturing sector remaining as the main driver, registering a 4.2% expansion. Taking a broader view, Malaysia’s services sector generated a revenue of RM630 billion in the first quarter of 2025, marking a 6.0% year-on-year increase, with the Services Volume Index rising 5.2% to 158.3 points. Quarter-on-quarter, both revenue and volume posted modest gains of 0.3% and 0.5%, respectively. The wholesale and retail trade, food and beverage, and accommodation segment remained the main driver, contributing RM475.7 billion in revenue (up 5.3%) and a 4.7% increase in its Volume Index to 157.2 points. In a climate of stable economic conditions, Malaysia’s inflation eased slightly to 1.4% in March 2025, compared to 1.5% in February,

PUTRAJAYA: The global environment remains volatile following the United States’ implementation of broad tariffs in April, which triggered widespread retaliatory measures. In response, the International Monetary Fund (IMF) revised its global growth forecast for 2025 to 2.8%, softening from the earlier projection of 3.3% and notably below the long-term average of 3.7%. Amid external challenges, Chief Statistician Malaysia Datuk Sri Dr Mohd Uzir Mahidin said the country’s Gross Domestic Product (GDP) grew by 4.4% in the first quarter of 2025, easing from the 4.9% expansion recorded in the preceding quarter. This growth, he added was mainly supported by robust supply-side performance, led by the services sector, followed by the manufacturing and construction sectors. On a monthly basis, the economy expanded by 3.5% in January and 3.6% in February, before accelerating to 6% in March 2025. Signalling steady momentum in industrial KLANG: Singapore’s YCH Group has broken ground on its RM500 million Supply Chain City Malaysia (SCC MY) in Bandar Bukit Raja, Selangor – its largest investment in Malaysia to date. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the RM500 million logistics investment by Singapore’s YCH Group is a move to strengthen the country’s role as a key manufacturing and services hub in Asean. “As the lifeblood of global commerce, good logistics is key to ensuring the smooth and cost-efficient movement of goods and services. As such, we are pleased to welcome YCH Group’s RM500-million investment in this sector in Malaysia,” he said in a statement. Tengku Zafrul urged the group to be more inclusive by enabling SME exporters to also access the global market. “When trade flows seamlessly, investors see greater opportunities, fuelling further growth and innovation. This is what will support our New Industrial Master Plan’s goals to increase our competitiveness and position Malaysia a key manufacturing and services hub for Asean and beyond,” he added. According to the group, this project represents their long-term commitment to Malaysia’s regional supply chain development and a significant step in realising the country’s vision as a leading logistics and trade hub in Asean. SCC MY is poised to serve as a key enabler of regional connectivity, supporting smoother trade flows and future-ready logistics infrastructure, it added. Malaysian Investment Development Authority (Mida) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said as the first recipient of Mida’s Smart Logistics Complex incentive, YCH Group sets a powerful precedent for Malaysia’s integrated smart logistics future. Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

In tandem with this positive trend, the unemployment rate declined by 0.2 percentage points to 3.1%, signalling stronger labour demand across key sectors. Looking at the labour demand, it remains positive, with the number of jobs in the economic sector rising by 1.4% to 9.06 million jobs, up from 8.94 million jobs in Q1 2024,” said Mohd Uzir. He highlighted that Malaysia’s Leading Index increased by 0.6% year-on-year to 112.5 points in March 2025, reflecting continued economic momentum supported by robust growth in housing approvals (27.8 %) and real imports of semiconductors (22.3 %) YCH Group makes RM500m logistics investment

(From left) YCH Group Malaysia country general manager Ryan Yap, Sikh Shamsul Ibrahim, Yap, Tengku Zafrul, Singapore Acting High Commissioner to Malaysia Shivakumar Nair, Asean-BAC Malaysia chapter chairman Tan Sri Nazir Razak and Azmir during the groundbreaking ceremony.

ultimately enabling Malaysia’s workforce to remain competitive on the global stage. Sime Darby Property Group managing director & CEO Datuk Seri Azmir Merican said welcoming a global logistics leader like YCH Group to Bandar Bukit Raja reflects the confidence placed in Malaysia’s industrial developments as well as the ability to deliver integrated, future-ready townships. “As Malaysia continues to carry out its role as chair of Asean in 2025, this project is a timely example of cross-border collaboration, aligning with the region’s shared focus on economic integration, sustainable and inclusive growth, while also strengthening trade linkages, supporting innovation, and contributing meaningfully to broader regional priorities.” Bandar Bukit Raja, a 5,333-acre integrated township developed by Sime Darby Property Bhd, is known for its sustainable design and thriving industrial ecosystem. With close to 60% of its landbank allocated for industrial use, BBR is home to Malaysia’s first GreenRE Platinum-rated managed industrial park.

“This achievement reflects our commitment to attracting high-impact investments and strengthening Malaysia’s supply chain ecosystem through innovation and automation. “The SLC incentive aligns perfectly with the Deklarasi Kuala Lumpur: Asean 2045, supporting our vision of a digitally advanced, economically resilient Asean region.” YCH Group executive chairman Dr Robert Yap said Supply Chain City Malaysia is a major step forward in setting new standards of logistics excellence, supporting Malaysia’s growth as a world-class supply chain leader. “Our investment in FUSIONARIS and advanced technologies reflect our commitment to regional connectivity, efficient operations, and sustainable practices. We are also dedicated to training local talent, empowering them with essential skills to support Malaysia’s journey as a preferred destination for global businesses.” The Supply Chain and Logistics Academy, an industry-level development academy, will be hosted at SCC MY. It offers training programmes to equip local talent with the skills needed to thrive in tomorrow’s logistics landscape,