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TUESDAY | JULY 8, 2025

‘Global investors shifting focus to China, Hong Kong’

are concerned.” Besides that, he said, substitutes such as wood plastics and other composites are in creasingly serving as alternatives to timber. Beyond market diversification, Wahid stressed the importance of sustainability and responsible forest management. “Before, probably, we just logged and logged without much thought. But now, we feel that we have to play a part in conserving our resources. “You don’t have to log 10 million, maybe you log 5 million. But if you can add value, you can still do good business.” Wahid said some of its members are tapping into palm oil trunks as part of their environ mental, social and governance efforts. “More than 32 million cubic metres of logs felled in the palm oil estates. Very little is being processed.” Clear, consistent policies key to attracting foreign investments: Fahmi GENEVA: Clear and consistent government policies, backed by political stability, are among the key factors drawing foreign investors to Malaysia, said Communications Minister Datuk Fahmi Fadzil. Speaking at a gathering with the Malaysian diaspora here on Sunday, Fahmi cited the Madani Economy Framework, the 12th Malaysia Plan, the New Industrial Master Plan 2030 and the National Energy Transition Roadmap as examples of coherent policies that inspire investor confidence. “These policies provide clarity and assurance to investors. They trust that such policies won’t be changed arbitrarily,” he said. He pointed to recent data from the Department of Statistics Malaysia and the Ministry of Investment, Trade and Industry as proof that Malaysia continues to be a preferred destination for foreign direct investment. In fact, according to the Malaysian Investment Development Authority, approved investments for the first quarter of 2025 totalled RM89.8 billion, a 3.7% year-on-year increase, despite global economic headwinds. The gathering, held at Rumah Malaysia here, was attended by around 50 Malaysians, including students, professionals, and staff from the Permanent Mission of Malaysia to the United Nations. Also present was Malaysia’s Permanent Representative to the UN in Geneva, Datuk Nadzirah Osman. During the event, Fahmi highlighted Malaysia’s progress in the communications sector. “Malaysia is among the top 10 countries in the world with the cheapest internet, and we have the second fastest internet speed in the Asia-Pacific region after South Korea,” he noted. Meanwhile, Nadzirah welcomed the gathering, saying it gave Malaysians here a chance to share views with the minister and receive first-hand updates on current developments back home. Syakira Ramli, president of the Malaysian Association of Geneva, said various topics were discussed during the gathering, including areas where Malaysia could improve by learning from Switzerland’s strengths. Fahmi is leading the Malaysian delegation to the World Summit on the Information Society+20 High-Level Event, which began yesterday and ends on Friday. – Bernama

Ű BY JOHN GILBERT sunbiz@thesundaily.com

o Kenanga IB debuts Hang Seng China Enterprises Index structured warrants to provide access to key sectors

KUALA LUMPUR: Global investors are increasingly turning to the China and Hong Kong markets to offset the impact of US tariffs, as these Asia-focused markets present more attractive investment opportunities. Kenanga Investment Bank Bhd head of equity markets and group head of derivatives Philip Lim said most investors are eager to access the Chinese market, and the major China Enterprises Index (CEI), which is closely linked to the Hang Seng Index (HSI) in Hong Kong, that plays a significant role in this strategy. He said the technology sector, in particular, highlights a divergence between markets, with much of the current tech activity centred in the United States. “However, investors now seek to parti cipate in the dynamic ecosystem of Hong Kong’s tech sector and the broader East Asian market, recognising its growing relevance and potential,” he told reporters after the launch of its first-ever Hang Seng China Enterprises Index (HSCEI) structured warrants yesterday. Lim said that with the recent expansion into Hong Kong, there are also plans to explore opportunities in other industries and sectors, guided by customer demand and data-driven insights from machine learning systems. “Kenanga remains committed to introducing relevant products to the market, ensuring that offerings align with industry trends and client interests,” he said. Kenanga launched HSCEI structured warrants HSCEI-CAA and HSCEI-HBA, as well as Hang Seng TECH Index structured warrants HSTECH-C30 and HSTECH-H27 under its flagship brand, NagaWarrants. The launch marks a strategic expansion of Kenanga’s East Asia footprint, following the introduction of HSI structured warrants HSI CIW and HSI-HMO in 2021. With HSCEI and HSTECH now listed on Bursa Malaysia, domestic investors will gain diversified access to two of Hong Kong’s most influential indices, offering new opportunities to tap into China’s financial and technology sectors. KUALA LUMPUR: Malaysia’s timber industry must explore new export markets to reduce dependence on the United States, said Malaysian Timber Industry Forum Association (TIF) president Wahid Jaafar ( pic ). He said Malaysia could sustain export volumes and secure better prices by shifting its focus to markets such as the Middle East and India. “With aggressive promotion, these are areas of real upside. I believe we have strong market opportunities there, and we can likely get premium prices,” he told SunBiz on the sidelines of the TIF Timber Levy Fund Book launch yesterday. Wahid said there is market demand from the Middle East where Malaysia had not been Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

From left: Kenanga Investment Bank (Kenanga IB) deputy head, equity derivatives trading Kenneth Teoh; non-executive diectors William Luk Wai Hong and Angeline-Ong Su Ming; Lim; group managing director Datuk Chay Wai Leong; executive director, head of group equity business Datuk Lee Kok Khee; senior non-executive director Jeremy Nasrulhaq; Hang Seng Indexes Co CEO Anita Mo; and Kenanga IB group equity market head Isabelle Zhen at the launch.

market participation, diversify product offerings and boost overall liquidity, parti cularly among retail traders already familiar with HSI warrants. Moving on, Lim stated that, given the current low participation rate among retail investors, both local and foreign market volumes are negatively impacted. This situation highlights a key differ entiator, he said. Unlike the local market, structured warrants are not limited to a single market. “If the Hong Kong market, for example, becomes more active, products in demand can be issued and introduced to the Malaysian market. More importantly, the expertise developed by the Malaysian market, particularly through institutions like Kenanga, is essential for the country to enhance its capabilities and upskill within the service industry.” Looking ahead, Lim said Kenanga remains committed to supporting investors through innovation, education and access to global markets.

The HSCEI tracks heavyweight mainland enterprises listed in Hong Kong, including financial and infrastructure giants such as Industrial and Commercial Bank of China, China Construction Bank, PetroChina and Ping An Insurance. It serves as a key benchmark for tracking the performance of China’s largest state-owned enterprises. The HSTECH captures the growth of China’s leading tech innovators such as Tencent, Meituan, Xiaomi and JD.com. With its focus on fast-evolving technology and innovation, HSTECH is ideal for traders with higher risk appetites looking for volatility and growth potential. Kenanga’s presence in the structured warrants market is underscored by its 64% market share in HSI warrants. In 2024, the structured warrants segment on Bursa Malaysia recorded a turnover of RM30.3 billion, accounting for about 3.6% of the exchange’s total market turnover of RM848.7 billion. The launch of HSCEI and HSTECH structured warrants is expected to broaden

Seek new export markets to cut reliance on US, M’sian timber firms told

Trump’s tariffs. “Most buyers in the US have advised not to ship or to delay shipments because of uncertainties. If the tax is 24%.” He added that the margin is already very small for exporters.

aggressively promoting before. “The Middle East imports from Europe and the US. So, probably, there is potential for good quality species like Meranti and others,” he added.

“Some go for mass-produced items and with that, they have the numbers, they can sell. If they start having to pay a tariff of 24%, it’s very tough for the industry. A lot of buyers are cancelling orders or asking us to delay shipments of furniture. It’s happening now,”Wahid said. “Furthermore, we will have to comply with the European Union

Wahid said India is also an important market where Malaysia can further promote its timber products. “Their GNP (gross national pro duct) is quite impressive,” he said in highlighting the country’s economic strength.

However, he acknowledged that logs and timber currently face a high import duty in India. “If they can lower it to more reasonable levels, India can definitely become a major market for us.” Wahid shared that this year, the global geopolitical situation is very tough for the industry, especially due to US President Donald

Deforestation Regulation which is set to come into force in December. Once this is approved other countries like Australia may follow suit. “These is just one of the few rulings. There are a lot of restrictions coming, as far as exports