16/06/2025

BIZ & FINANCE MONDAY | JUNE 16, 2025

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Apac propels global aviation growth

passenger traffic growth of 4.7%, driven by new infrastructure and the need for better regional connectivity. Small narrowbodies are expected to play a crucial role in opening underserved markets and optimising operations at challenging airports. The region will require 770 new jets and 160 turboprops through 2044. Embraer’s report also noted that Africa offers significant untapped potential, with annual passenger traffic growth projected at 4.4%. The continent’s emerging middle class and rising incomes are expected to drive demand, but economic, infra structure, and regulatory barriers remain. Africa will need 380 new jets and 220 turboprops, with small aircraft essential for connecting low-density markets and supporting sustainable development. Europe and the Commonwealth of Independent States are forecast to grow at 3.1% annually, with a focus on maximising sustainable con nectivity and airline profitability. Embraer sees small narrowbodies as vital for serving low-density markets and ensuring efficient network inte gration, particularly as environ mental regulations tighten. The region will require 1,990 new jets and 260 turboprops. TRADING activity on the Malaysian warrants market for the week ended June 13 increased sharply, with turnover up by 36.8% to RM729.6 million. This was primarily driven by a significant jump in trading turnover for Hang Seng Index (HSI) (+28.4%) warrants and Malaysian stock warrants (+89.8). Warrants over HSI and local stock warrants accounted for 95.6% of the total weekly turnover. HSI futures saw notable volatility during the week, with prices increasing for three consecutive days from Monday through Wednesday on hype over the US-China trade talks. On Thursday, the futures fell sharply following US President Donald Trump’s threats of unilateral tariffs on trading partners. The bearish trend continued on Friday after Israel attacked Iran’s nuclear programme sites in a major escalation of tensions in the Middle East. Nonetheless, HSI futures ended the week 0.6% higher, recording a second consecutive week of gains. The moves led to active trading mostly in call warrants with HSI CWGA, HSI-CWEZ and HSI-CWEI topping the chart with 800.9 million, 547.5 million and 483.6 million units changing hands. Meanwhile, HSI PWFZ was the most actively traded WARRANTS WATCH

turboprops in the Asia-Pacific through 2044, supporting both network expansion and sustainability goals. In mature markets such as Japan, South Korea and Australia, the up-to 150-seat segment is already critical to maintaining robust domestic and regional connectivity, especially as populations stabilise or decline and airlines seek more efficient opera tions. Beyond the region, Embraer noted that, while Asia-Pacific leads in growth and scale, other regions are also shaping the future of aviation, each with unique opportunities and challenges. The report finds that China will be the fastest-growing market, with annual passenger traffic projected to rise by 5.7% through 2044. Demand is accelerating in lower-tier cities, outpacing growth in major hubs, and fleet flexibility will be key to unlocking regional connectivity. China is expected to require 1,500 new up-to-150-seat jets by 2044, reflecting its expanding middle class and evolving tourism landscape. As for Latin America and the Caribbean, this region will see annual

As for the Middle East, Embraer said growth is projected at 4.4% annually, with tourism and intra regional connectivity as key drivers. Small narrowbodies will help airlines unlock new domestic and regional markets, supporting national diversi fication strategies. The region is expected to require 350 new jets and 20 turboprops. North America will see slower growth (2.4% annually) but remains the largest market for jet deliveries (2,680 up-to-150-seat jets and 280 turboprops). Regional aviation is the backbone of the US network, with small narrowbodies complementing large aircraft to maximise frequencies and maintain capacity discipline. The Embraer report noted that Asia-Pacific is poised to redefine global aviation, driven by rapid economic growth, demographic trends and the need for smarter, more flexible air networks. As airlines across the world adapt to new realities – from shifting geo politics to environmental priorities – the ability to connect people, places and economies will remain at the heart of the industry’s future. Embraer said that with the right fleet strategies and a focus on under served markets, the aviation sector can unlock new opportunities for growth and resilience in every region. put warrant for the week. On the local front, warrants over Eco-Shop Marketing continued to take centre stage as the underlying halted a two-week rally to close down 2.3% week on week at RM1.25. The decline saw investors actively trading the call warrants ECOSHOP-CE and ECOSHOP CH, among others, which registered 98.3 million and 63.1 million units traded respectively. Meanwhile, other warrants over local stocks that were popular among investors include MY E.G. Services (MyEG), which saw active trading across a variety of warrants, including MYEG C7Y and MYEG-C8I. The shares of MyEG extended gains for a second straight week to close 1.1% higher at RM0.955. To view the full list of structured Provided for Malaysian residents’ information only. It is not an offer or recommendation to trade and is not research material. Past performance is not indicative of future performance. You should make your own assessment and seek professional advice. The warrants will not be offered to any US persons. warrants available on Bursa Malaysia, visit malaysiawarrants.com.my.

o Asia-Pacific will account for 39% of world air traffic by 2044, says Embraer report

PETALING JAYA: The Asia-Pacific region stands at the heart of global aviation’s most dynamic growth, with airlines set to face both opportunities and complex challenges over the next two decades as they seek to connect rapidly expanding populations, serve new destinations and adapt to shifting market demands. According to Embraer’s Market Outlook for 2025, Asia-Pacific will account for 39% of global air traffic by 2044, making it the world’s largest aviation market and a magnet for new investment. The report said demand for air travel in the Asia-Pacific is projected to grow at an average annual rate of 4.1% through 2044, driven by a combination of steady economic expansion, rising middle-class popu lations and increasing consumer appetite for travel and tourism. In emerging markets – such as those in Asean and the South Asian Association for Regional Cooperation (SAARC) – economic growth is es pecially robust. Despite this potential, airlines in the Asia-Pacific region remain highly

concentrated in a few key markets. The Embraer report noted that between 30% and 35% of all flights in Asean and SAARC countries operate at the top five airports, compared to just 15% in North America and Western Europe, which boast broader, more diverse networks. This concentration has led to intense competition, price wars, and thin profit margins – Asia Pacific airlines col and 350 mid-density markets, many of which are underserved or served by just one airline, it said. Embraer noted that the path to profitability lies in right-sizing aircraft fleets and expanding beyond con gested hubs. Airlines that deploy up-to-150-seat jets and turboprops can unlock new routes, increase frequencies and better match capacity to demand. In fact, Embraer forecasts demand for 1,050 new up-to-150-seat jets and 640 lectively reported a mere 1.3% profit margin in 2024. The region still has more than 1,000 low-density

Hang Seng Index futures extend gains, HSI-CWGA in focus

All Aris Burger products have received certifications and approvals from agencies such as the Department of Islamic Development Malaysia, the Ministry of Health Malaysia, and the Department of Veterinary Services. – ARISPROP PIC

Arisprop Capital hopes to bring Aris Burger to China by 2027

KUALA LUMPUR: Frozen food manufacturer Arisprop Capital Bhd is planning to introduce its Aris Burger brand to the Chinese market by 2027, as part of the company’s global expansion strategy. Its managing director, Datuk Haris Embong, said the company is currently focused on strengthening its domestic business foundations, including supply chain opti misation, product quality and operational processes, before ven turing internationally. “We want to export our products overseas, possibly to China by 2027 or even earlier. But first, I want to

burger, which is expected to be the first of its kind in Malaysia. “This ready-to-eat burger is the result of Arisprop’s research and innovation, and we anticipate strong demand in the local market,” Haris said. All Aris Burger products have received the necessary certifi cations and approvals from agencies such as the Department of Islamic Development Malaysia, the Ministry of Health Malaysia, and the Department of Veterinary Services, positioning the company to compete on a global scale. – Bernama

reinforce our domestic foundation, as demand is high,” he said during Bernama TV’s Bual Bisnes programme on Saturday. The company is also planning a business visit to China as an initial step towards establishing export partnerships to support market expansion into the country. In addition to China, Malaysian halal products are attracting strong interest from other countries, including those in the Middle East, Japan, and Indonesia, Haris said. To strengthen its product line up, the company is in the final stages of developing a ready-to-eat

Top MYEG warrants by value traded: Warrant Value Issuer Exercise

Expiry date

name

(RM’ mil)

level

MYEG-C9A MYEG-C8Y MYEG-C7Y MYEG-C8I MYEG-C7U

2.11 1.89 1.63 1.41 1.10

CLSA

RM0.900 RM0.830 RM0.820 RM0.990 RM0.800

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