18/06/2025

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BIZ & FINANCE WEDNESDAY | JUNE 18, 2025

Malaysia’s 2025 growth to slow on global headwinds

Yinson gets US$1b boost from global investors PETALING JAYA: Yinson Production has closed the previously announced US$1 billion (RM4.2 billion) investment from a consortium comprising a wholly owned unit of the Abu Dhabi Investment Authority, and funds managed by British Columbia Investment Management Corporation, and RRJ Group). The closing of the transaction follows the signing of a definitive agreement on Jan 14 and satisfaction of the closing conditions, including regulatory approvals and approval by the shareholders of Yinson Holdings Bhd. In statement yesterday, the company said the investment is made through the issuance of US$1 billion of redeemable convertible preferred shares (the RCPS) and warrants by Yinson Production Offshore Holdings Ltd, a newly established UK-based holding company. The agreement provides for the option to issue additional RCPS of up to US$500 million within 24 months from closing, subject to agreement. Upon closing, the investors funded the first tranche of US$300 million, of which US$200 million has been used for a special distribution to Yinson. The remaining US$700 million of committed RCPS will be called in up to 3 installments by December 2026. Yinson Production chief financial officer Markus Wenker said the investment reflects strong cash flows and revenue backlog, highlighting confidence in the company’s long term growth. separation and capture of carbon dioxide (CO ĸ ) emitted by JERA in Japan, cross-border transportation, and CO ĸ storage in Malaysia. The agreement will strengthen the collaboration and contribute towards building a global network for cross border CO ĸ transport and storage. The JSA represents a notable stride forward in efforts to reduce greenhouse gas emissions in the Asia Pacific region, especially in Malaysia and Japan. – Bernama

related services exports grew robustly by 17% year-on-year in Q1’25, future visitor arrivals may face headwinds from employment and income uncertainties in key source countries. With elevated public debt constraining fiscal expansion, monetary policy is anticipated to play a pivotal role in supporting the domestic economy. Inflation has remained subdued at around 1.5%, creating room for BNM to introduce a 50 basis-point rate cut later in 2025. The central bank has already signalled an accommodative stance, aiming to mitigate risks stemming from subdued domestic investment and consumer spending. The ICAEW report also highlights economic indicators from March 2022 to March 2025, noting a clear deceleration trend in Malaysia’s GDP growth, private consumption, and goods and services exports – emphasising the broader economic slowdown driven by external uncertainties and cautious domestic sentiment. Despite the turbulence,

Malaysia’s export destination, creates further threats to Malaysia’s external trade environment. Resilient global demand for electronics, crucial as intermediate goods in global supply chains continues to support Malaysia’s E&E exports, which have grown by approximately 20% year-to-date. This robust performance is crucial, given Malaysia’s key role in the global semiconductor supply chain. Securities Commission Malaysia executive chairman and ICAEW council member Datuk Mohammad Faiz Azmi recently noted that Asean’s strength lies in its unity and shared purpose. In a time of global uncertainty, he had said working together and investing within the bloc will be key to unlocking the region’s potential. He made the statement during the Asean Investment Conference 2025, held in Kuala Lumpur, where he also emphasised the importance of deepening regional cooperation to ensure resilience against global shocks. Tourism, particularly driven by Asean visitors who accounted for 67% of total tourist arrivals in 2024, remains another critical buffer for economic growth. While tourism largest He Shell’s commitment to the energy transition, noting that the company has allocated approximately US$20 billion (RM85 billion) in capital expenditure for its low-carbon solutions portfolio. Meanwhile, JERA Co Inc (JERA) global CEO and chair Yukio Kani said that several potential sites in Tokyo Bay, Japan have already been identified for carbon capture and storage (CCS) initiatives. He added that Petroliam Nasional also reaffirmed

o ICAEW: Resilient E&E sector and tourism recovery to cushion moderation while Bank Negara supports demand with monetary easing

PETALING Malaysia’s economy is projected to slow in 2025 due to mounting external headwinds, despite a temporary surge in exports early in the year. Resilient demand for electrical and electronics (E&E) products and a recovering tourism sector are expected to buffer economic growth, with Bank Negara Malaysia (BNM) set to proactively support domestic demand through monetary easing amid low inflation. The ICAEW Southeast Asia Economic Insight: Q2’25 report, forecasts Malaysia’s GDP growth will moderate to 4.3% in 2025, down from 5.1% in 2024. This slowdown reflects broader global economic uncertainties, particularly stemming from trade tensions and weaker demand from key trading partners, including the US and China. JAYA:

shipments to the US to avoid impending tariff hikes. However, this is expected to be a temporary boost, with export growth likely to moderate significantly in the second half of the year. The report notes that goods export growth had already slowed notably to 1.6% year-on-year in Q1’25, well below the 7.1% average growth rate recorded over the preceding three quarters. Despite Malaysia’s diversified export base, it remains vulnerable to external shocks, with more than 4% of its GDP and approximately 11% of its gross exports tied to US demand, either directly or indirectly, further underscoring the country’s vulnerability to external shocks. A blanket US tariff rate of 10% on Malaysian imports, although lower than the initially proposed 24% rate, still poses substantial downside risks for exporters. Additionally, weaker demand from China, 0.8% per year, so indeed, LNG is going to be the critical fuel in the coming years,” Sawan said in a dialogue session titled Role of Gas and LNG in Asia’s Multi-Dimensional Energy Transition at Energy Asia 2025 yesterday. Citing the International Energy Agency, he said gas production in SEA is expected to decline by about 20% and the shortfall will likely need to be filled with LNG, given that much of the region’s existing infrastructure is already gas-based.

Malaysia’s goods exports surged by 26% year-on-year in April 2025, driven by businesses front-loading Shell sees steady LNG demand in Southeast Asia until 2035 Malaysia’s economy is expected to stay on course, supported by resilient key sectors and timely policy action.

KUALA LUMPUR: The demand for liquefied natural gas (LNG) in Southeast Asia (SEA) particularly Malaysia, Brunei, the Philippines and Thailand, is expected to grow steadily from now until 2035, said Shell CEO Wael Sawan. He said the surge in energy demand—driven by the rise of data centres and artificial intelligence—can be met with LNG, a reliable energy source amid geopolitical uncertainty. “We see LNG demand to grow at around 3% per year, and gas at around

Bhd (Petronas) and JERA have already announced a joint study focused on cross-border CCS. “JERA has four LNG tunnels and 16 gas-fired thermal power plants within the Tokyo Bay, and our offshore wind power will start its operation around 2030,” he said. Last year, Petronas via its subsidiary Petronas CCS Solutions Sdn Bhd has signed a Joint Study Agreement (JSA) with JERA to evaluate the feasibility of the entire CCS value chain including

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