03/07/2025

BIZ & FINANCE THURSDAY | JULY 3, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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Juneyao Airlines starts direct Shanghai-Kuala Lumpur service PETALING JAYA: Juneyao Airlines has commenced its direct flight from Shanghai Pudong International Airport to Kuala Lumpur International Airport (KLIA), marking a milestone in enhancing connectivity and streng thening tourism cooperation between Malaysia and China. Operating four times weekly under flight HO1353, the new service deploys the Airbus A320neo aircraft, with a seating capacity of 162 passengers. The route is set to meet the growing demand for travel between the two cities, improving convenience for both business and leisure travellers. The establishment of this route also supports Malaysia’s efforts in capitalising on Shanghai’s reputation as a critical market for outbound travel and a global financial hub with expansive international connectivity, thus positioning Kuala Lumpur as a preferred Southeast Asian gateway for Chinese travellers. The inaugural flight’s arrival at KLIA yesterday was welcomed by Tourism Malaysia deputy director general Samuel Lee Thai Hung and representatives from Juneyao Airlines, Malaysia Air ports Holdings and Pos Aviation. Lee stated: “Tourism Malaysia remains committed to working closely with Chinese airlines and trade partners to ensure sustained growth and mutual benefit. This initiative aligns with national strategies to expand market outreach ahead of Visit Malaysia 2026, which will focus on promoting cultural and sustainable tourism in line with the United Nations Sustainable Development Goals. “The enhanced air connectivity with Shanghai also supports regional integration under the Indonesia Malaysia-Thailand Growth Triangle framework, reinforcing Malaysia’s role as a key player in regional tourism development.” contract for Naga 5 PETALING JAYA: Velesto Energy Bhd wholly owned subsidiary Velesto Drilling Sdn Bhd has been awarded a drilling contract by PTTEP HK Offshore Ltd and PTTEP Sarawak Oil Ltd (collectively PTTEP) for their 2025– 2026 drilling campaign in Malaysia. Under the contract, Velesto will assign Naga 5, one of its premium jack-up rigs, to drill a firm 15 wells with operations scheduled to commence last month. This latest award follows Velesto’s recent announcements for Naga 4 and Naga 8 in May 2025, strengthening the group’s fleet utilisation outlook. Velesto continues to benefit from rising regional demand for jack-up rigs and anticipates a more active second half of 2025, supported by a robust tender pipeline and stable client activity. Naga 5 is a premium independent leg cantilever jack-up drilling rig with a rated operating water depth of 400 feet and drilling depth capability of 30,000 feet. Velesto secures PTTEP drilling

ASM Automation opens at IPO price in market debut From left: ASM Automation non-executive director Datuk Dr Thian Boon Chung; Khoo; ASM Automation executive directors Kamalam Kurup Krishnan and Leong Weng Khin; non-executive chairperson Tengku Faizwa Tengku Razif; Chan; Tan; M&A Equity Holdings corporate finance head Gary Ting and corporate finance deputy head Danny Wong; and ASM Automation non-executive directors Woo Ah Kek and Jolene Lai Ooi Yoke at the listing ceremony.

and assembly capabilities; RM2.3 million for the purchase of machines and equipment to support opera tional growth and customer engage ment; RM2 million to enhance D&D activities; RM1.92 million for working capital; and RM4.2 million to cover listing expenses. M&A Securities Sdn Bhd is the principal adviser, sponsor, under writer and placement agent for the IPO while Eco Asia Capital Advisory Sdn Bhd is the financial adviser. Commenting on the company’s debut, ASM managing director Chan Kok Heng said, “Today marks a defining chapter in ASM’s 30-year journey. Our successful listing is a testament to our team’s dedication, the trust of our customers, and the confidence of our investors. With the capital raised, we’re poised to scale up our operations, strengthen innovation and reinforce our leadership in automation.” foreign direct investment, beating other contenders such as the United States (RM9.9 billion) and China (RM7.9 billion). These investments are expected to generate 33,000 new jobs and put Johor on track to surpass its 2024 approved investments record of RM48.5 billion, and Johor Menteri Besar Datuk Onn Hafiz Ghazi is now targeting RM60 billion-RM100 billion in approved investments for 2025. According to CIMB Investment, investors’ focus will be on key zones such as Forest City and Sedenak, led by data centres, electrical and electronics, electric vehicles and logistics sectors. “The JS-SEZ blueprint clearly

M&A Equity Holdings mana ging director Datuk Bill Tan said, “ASM’s strong foundation, export footprint, and D&D capabilities make it well positioned for regional growth. The market’s response underscores investor confidence in its strategic direction and long term prospects.” Echoing the sentiment, Eco Asia Capital Advisory managing director Kelvin Khoo, who is also the company’s financial adviser, noted, “ASM’s listing reflects its strong fundamentals, operational maturity, and visionary leadership. With growing demand for intelligent automation, the group is well positioned to deliver sustained value to shareholders.” outlines sector priorities to desig nated zones, ensuring focused development and ecosystem clus tering. Delivering on these projects will establish Johor as a diversified and globally connected economic engine by 2030,” it said. The JS-SEZ is also expected to strengthen the Johor-Singapore economic corridor, enabling a twin city model similar to Shenzhen Hong Kong, CIMB Investment said. “Johor offers scale, land and labour, while Singapore brings capital, finance and global networks. Their integration creates a com pelling, cost-efficient destination for global investors, with seamless operations across both jurisdictions,” it added. – Bernama

o Company set to scale up operations and strengthen innovation post-listing

KUALA LUMPUR: ASM Auto mation Group Bhd, a home-grown automation machinery solutions provider, marked a key milestone yesterday with its listing on the ACE Market of Bursa Malaysia. The company’s shares opened at 17 sen each, matching the initial public offering (IPO) price. The stock closed at 16.5 sen, down 0.5 sen or 2.9% from the offer price, on volume of 51.425 million shares. Founded in 1994, ASM has evolved from a small-scale custom automation provider into a regional player in industrial automation, Ű BY MAHADHIR MONIHULDIN sunbiz@thesundaily.com KUALA LUMPUR: The Johor Singapore Special Economic Zone (JS-SEZ) is expected to propel Johor’s share of national gross domestic product (GDP) to more than 12% by 2030, should their investments materialise according to plan, said CIMB Investment Bank Bhd In a note, the investment bank said JS-SEZ could contribute RM117.1 billion to the country’s GDP by 2030, representing an average annual rise of RM19.5 billion – equivalent to 0.6–1.0% of GDP per year from 2025 to 2030. Achieving this would require a compound annual growth rate (CAGR) of around 8.4%, more than double its 3.8% growth during 2016–2023, it noted.

specialising in front-of-line pro cessing and end-of-line packaging solutions for the food and beverage (F&B) manufacturing sector. Its services are supported by equipment upgrades, after-sales service, and a strong focus on design and development (D&D), enabling clients to automate and optimise their production lines for improved efficiency and reduced labour dependency. ASM raised RM21.82 million through the issuance of 128.34 million new shares.

Of the IPO proceeds, RM11.4 million will be used for land acquisition and construction of a new factory to expand production JS-SEZ set to drive up Johor’s share of national GDP: CIMB The listing is set to catalyse ASM’s next growth phase, including the development of its new factory, expanded R&D efforts, and penetration into new markets.

“This estimate assumes steady growth and a national GDP growth rate of 6%. “Key growth drivers include rising domestic and foreign investment in sectors like logistics, healthcare, tourism and the digital economy, as well as enhanced labour mobility, improved cross-border trade faci litation, and major infrastructure upgrades,” it said. Johor’s investment momentum has surged in the first quarter of 2025 (Q1’25), securing a total of RM30.1 billion in approved invest ments, driven by JS-SEZ initiatives and pro-business reforms. Singapore was the largest investor in Q1’25 with 65 projects worth RM28.3 billion in approved