26/06/2025

BIZ & FINANCE THURSDAY | JUNE 26, 2025

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Trade in services increases to RM497.4b in 2024 KUALA LUMPUR: Malaysia’s total trade in services rose by 14.6% to RM497.4 billion last year from RM434 billion in 2023, contributing 25.8% to the gross domestic product at current prices. In a statement yesterday, the Depart ment of Statistics Malaysia said exports of services grew by 24.6% to RM242.9 billion from RM195 billion in the previous year. Similarly, imports of services increased by 6.5% to RM254.5 billion against RM239 billion in 2023. “As services exports grew faster than imports, the deficit narrowed subs tantially from RM44.0 billion to RM11.7 billion,” it added. Asia continued to be the main desti nation for Malaysia’s services exports, constituting RM164.0 billion or 67.5% of total services. Singapore, the United States and China were the three main destinations for Malaysia’s services exports. The agency said that Asia also remained the major source of imports with a share of 58.6% or RM149 billion. The main sources of services imports were from the US, Singapore and China. – Bernama Malaysia signs pact with Efta, palm oil to enjoy lower tariffs PETALING JAYA: Malaysia and European Free Trade Association (Efta) – which comprises Switzerland, Norway, Iceland and Liechtenstein – have signed the Malaysia-European Free Trade Associa tion Economic Partnership Agreement (Meepa), deepening bilateral trade ties and sustainability cooperation. Under the agreement, Malaysian palm oil will benefit from reduced import tariffs through a tariff rate quota mechanism, with tariff reductions ranging from 20% to 40%, depending on the product type. Malaysian Sustainable Palm Oil (MSPO) certification is established as a prerequisite for accessing these reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to Efta countries. As part of Meepa, both parties also adopted a joint statement on sustainable palm oil, which enhances international recognition of Malaysia’s leadership in sustainable palm oil production and reinforces trust in MSPO-certified supply. Meepa delivers three critical outcomes – providing tariff reductions for MSPO certified palm oil, securing international recognition of MSPO as Malaysia’s national sustainability standard, and strengthening the commitment to greater transparency, traceability, and deforestation-free supply chains.

iCents escapes impact of US tariffs, eyes expansion

Ű BY JOHN GILBERT sunbiz@thesundaily.com

transport costs reportedly 30% to 50% higher than in Peninsular Malaysia. Sabah’s reliance on fragmented and reactive infrastructure planning has limited its potential for sustainable economic transformation. Commenting on the contrast, Ramli said Sarawak’s success is rooted in its institutional leadership and fiscal autonomy. “The state’s ability to indepen dently manage and finance its infrastructure agenda should serve as a wake-up call for Sabah to strengthen its internal capacities,” he said. set up a sales and technical support office in Jakarta, Indonesia, to provide an operational base to grow its business. It also intends to set up a sales and marketing office in Singapore, and a sales and tech nical support office in Kuching, Sarawak, to extend the group’s physical presence to East Malaysia. iCents aims to raise RM27 million from its ACE Market listing. Out of that, RM4.68 million (17.31%) will allocated for the purchase of machinery and equipment, RM3.02 million (11.19%) for business expansion, RM1.72 million (6.35%) for product development, RM1.5 million (5.56%) for marketing acti vities, RM12.09 million (44.77%) for working capital and RM4 million (14.82%) to cover estimated listing expenses. iCents’ IPO encompasses an issuance of 112.5 million shares, of which 25 million will be balloted to the Malaysian public, 10 million reserved for eligible directors, employees, and contributors, 15 million will be privately placed with selected in vestors, and 62.5 million will be privately placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry. Additionally, 30 million shares will be privately placed with selected investors. iCents will have a market capital isation of RM120 million upon listing, which is scheduled for July 17, based on an enlarged issued share capital of 500.00 million shares and an IPO price of RM0.24 per share. Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for iCents’ IPO. In terms of financial perfor mance, the group’s revenue rose from RM55.78 million in the financial year ended June 30, 2022 to RM80.7 million in the financial year ended June 30, 2024. Over the same period, the group’s net profit rose from RM2.90 million to RM7.02 million, repre senting a compound annual growth rate of 55.57%. For the six months ended Dec 31, 2024, the group recorded revenue of RM43.93 million and net profit of RM5.03 million.

o Company launches IPO prospectus, aims to raise RM27 million from ACE Market listing

KUALA LUMPUR: iCents Group Holdings Bhd, a provider of clean room services, will not be impacted by the US reciprocal tariffs as the company does not generate revenue from the United States. However, some of its customers and end-users in Malaysia may be affected, since they manufacture products that are ultimately exported to the US market. Managing director Vincent Ong Mum Fei noted that geopolitical events, financial crises, trade conflicts – including sanctions and tariffs – and technological shifts could effect the business. He highlighted that, within Malaysia, changes in political, eco nomic or regulatory conditions affecting the semiconductor and electrical and electronics sectors may also impact the company’s operations and financial performance. “Our core focus is on design, functionality, and leadership within our industry. We handle everything from design and installation to production,

ment, supply and installation of heavy-duty ceiling systems, cons truction services, and maintenance services for other facilities. The group’s services cater to highly technical industries, semi conductor and electronics, data centres, life sciences and pharma ceutical product manufacturing. As of June 5, the group reported an unbilled order book totalling RM93.21 million. This amount includes RM53.53 million from its cleanroom services segment and RM39.68 million from its other facility services segment. iCents plans to set up a facility close to its Mantin factory to increase capacity to store materials and finished products. The new facility will be in rented premises with built-up area of about 20,000 sq ft that already has all required regulatory approvals. Beyond Malaysia, iCents plans to

collection and management. “While there is no immediate impact from US developments or tariffs on our operations, we are mindful of potential indirect effects, especially as many companies adopt a ‘wait and see’ approach to ongoing global changes. “However, we continue to see steady demand through our recurring projects and established central control systems,” Ong told reporters yesterday after launching the pros pectus in conjunction with the company’s initial public offering (IPO). iCents provides services covering engineering, procurement, cons truction, and testing and commi ssioning of cleanrooms. The group also manufactures clean-room fixtures and related products. In addition to its cleanroom expertise, iCents provides a range of other facility services, including the hook-up of machinery and equip

From left: iCents Group executive directors Tan Wei Ying and Foo Siang Leng, substantial shareholder Faye Khor Fei Yi, Ong, independent non-executive chairperson Lim Bee Vian, Alliance Islamic Bank CEO Rizal IL-Ehzan Fadil Azim, Alliance Bank Malaysia group chief corporate and institutional banking officer Teoh Chu Lin and Alliance Islamic Bank senior vice-president, coverage and origination of Islamic capital markets Lim Shueh Li at the prospectus launch.

‘Sarawak a model of self-reliance in infrastructure development’ LABUAN: Despite sharing similar geographies and economic aspi rations, Sarawak and Sabah have taken markedly different paths in infrastructure development. allocations, resulting in development delays and fragmented logistics. Second Trunk Road, deepsea ports, and free industrial zones.

exemplified by the RM11 billion invested in ten bridges, executed without external borrowing,” he said in a statement to Bernama yesterday. Ramli said the decision to replace the Infrastructure Development Trust Fund with a unified modern financing mechanism highlights the state’s focus on project efficiency and accountability. He added that political stability and a long-term vision have also enabled Sarawak to maintain consistent development through initiatives such as the Coastal Road Network, the

“In contrast, Sabah faces persistent infrastructure gaps, largely due to its dependence on federal grants. Although the state has gained autonomy for projects below RM50 million, larger infrastructure ventures remain subject to federal processes. “This has resulted in under investment and chronic delays, such as those plaguing the Pan Borneo Sabah Highway,” Ramli said. He noted that the logistics sector in Sabah is particularly strained, with

“Over the past decade, Sarawak has allocated billions of ringgit toward roads, bridges, ports, and industrial zones, all without resorting to debt or federal funding. “The state government’s fiscal discipline and adoption of innovative financing, including an alternative funding model introduced in 2019, have enabled accelerated infras tructure rollout. “Sarawak’s commitment to strategic financial management is

Former president of the Chartered Institute of Logistics and Transport (CILT) Malaysia and vice-president of CILT International for Southeast Asia Datuk Dr Ramli Amir said Sarawak has emerged as a model of self-reliance, independently funding large-scale infrastructure projects. At the same time, Sabah remains heavily dependent on federal