08/07/2025

BIZ & FINANCE TUESDAY | JULY 8, 2025

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Airbus, M’sian aerospace and defence sectors strengthen ties

US AI chip curbs to have limited impact on EMS firms here: Maybank IB KUALA LUMPUR: The United States’ potential restrictions on artificial intelligence (AI) chip shipments are expected to have a limited impact on Malaysia’s elec tronic manufacturing services (EMS) sector, according to Maybank Investment Bank Bhd (Maybank IB). International media reported last week that the US is planning to restrict chip shipments to Malaysia and Thailand to prevent suspected smug gling into China via intermediaries. Maybank IB said the EMS sector’s direct exposure to AI-related products remained minimal. “While there may be near-term delays or rerouting of AI-related orders, exemptions for US and allied-origin customers could soften the blow,” it said in a note yesterday. “We maintain our positive view on EMS, preferring names with diversified product portfolios and lower regulatory exposure,” it added. Meanwhile, MIDF Amanah Investment Bank Bhd noted that the latest development will likely draw mixed reactions among investors, but it remains optimistic. “It is also plausible that hyper scale operators and major cloud providers may accelerate building their data centres and rush orders for high-end AI chips now, before Trump’s refashioned AI diffusion rule is officially announced and before the grace period ends.” Trump rescinded Biden’s frame work for the AI diffusion rule in May 2025 and his version is yet to be finalised. “Those with AI ambitions will want to ensure that their racks are locked and loaded with the most advanced chips before the licensing regime begins. “Last month, a Malaysian con tractor noted that there was a slight acceleration in project award timelines and that clients may potentially raise capacity buildups to Malaysia due to the US tariffs,” it added. – Bernama KUALA LUMPUR: Foreign investors registered a net inflow of RM303 million on Bursa Malayia for the second consecutive week – the first time since mid-May – nine times higher than the previous week’s RM33.2 million, said MIDF Amanah Investment Bank Bhd. In its Fund Flow Report for the week ended July 4, MIDF Amanah said foreign investors were net buyers on every trading day except Friday, with inflows ranging from RM23.3 million to RM112.6 million. “The largest inflow was recorded on Thursday, followed by Tuesday with RM106.8 million. Friday was the only day to record a net outflow at -RM6 million,” it said in a note. It added that the three sectors that recorded the highest net foreign inflows were utilities (RM419.3 million), industrial pro ducts and services (RM182.8 million) and transportation and logistics (RM98.2 million).

The agreements were signed in Paris in the presence of Defence Minister Datuk Seri Mohamed Khaled Nordin, during an official visit to France. Under the first agreement, Airbus Helicopters and the Coalition of Defence Industry Malaysia – CDI (M) – plan to pursue industrial opportunities with the latter’s member companies specialising in aerospace and defence development. The MoU marks the first of its kind between Airbus and the Malaysian

defence industry, establishing a dedicated framework to drive mili tary helicopter innovations, growth and development in the local defence sector. Under the second agreement, Airbus Helicopters will partner MRO service provider Global Turbine Asia (GTA) to advance in-country helicopter component MRO capabilities. This strategic collaboration aims to streng then Malaysia’s defence ecosystem and accelerate industrial growth in alignment with the nation’s plans to acquire new helicopters for its armed forces and related governmental agencies. “I am looking forward to deepening the collaboration with major European industries, building on the Malaysian aerospace industry’s enduring partnerships with leaders like Airbus. We are committed to reinforcing these relationships and exploring new areas of cooperation, ensuring sustained innovation, growth, and long-term value for all stakeholders,” said Global Turbine Asia executive chairman and CDI (M) president Datuk Nonee Ashirin Datuk Mohd Radzi. Airbus Helicopters Asia-Pacific head Vincent Dubrule said, “These partnerships underscore Airbus’ strong commitment to Malaysia’s long-term goal of building a resilient, self-reliant defence ecosystem. By deepening local industrial growth and expanding MRO capabilities, we are strengthening the nation’s aero space and defence sectors, sup porting technological advancement and enabling greater industrial sover eignty. “As Malaysia looks to acquire helicopters for key missions like tactical support, combat search-and rescue, and anti-surface warfare, these partnerships aim to strengthen local expertise, promote technology transfer and build autonomy. Airbus sees CDI (M) and GTA as trusted partners aligned to advance these priorities.” 5.5% y-o-y to 11.80 million tranship ments in 2027, as manufacturers’ efforts to move production out of China to Southeast Asia in light of the US trade war against China would begin to positively impact Malaysia’s containerised volumes. “Y-o-y growth in average revenue per TEU and sequentially stronger container volumes in 2Q25F to be potential share price rerating catalysts for Westports,” it said. Meanwhile, CGS MY stated that the 15% increase in port charges from July 15 would also boost Westports’ Q3’25 results. “Downside risks include the potential for the US to resume punitive trade tariffs on global economies (ex-China) after the 90 day reprieve ends on July 8, 2025, and a possible global recession that could impact the volumes on all container trade routes,” it added. – Bernama

o Helicopter unit signs MoUs to foster technology cooperation and to enhance MRO capabilities

PETALING JAYA: Airbus Helicopters has signed two memorandums of understanding (MoU) with key players in the Malaysian aerospace and defence sectors – one to foster industrial cooperation in aerospace

technologies and another to en hance military helicopter main tenance, repair and overhaul (MRO) capabilities – underscoring their shared commitment to innovation and regional security.

Dubrule (seated, left) and Nonee Ashirin at the signing of the MoU.

CGS: Westports Q2 container volumes to get boost from Gemini Cooperation alliance

Foreign net buying of RM303m on Bursa Malaysia last week

Meanwhile, the top three sectors that recorded the highest net foreign outflows were health care (-RM177.0 million), telco and media (-RM153.7 million) and financial services (-RM78.9 million). Similarly, local institutions con tinued their buying activities, extending a seven-week buying streak with net inflows of RM61.0 million, smaller than the previous week’s inflow of RM142.8 million. Meanwhile, local retailers ex tended their net foreign selling to two consecutive weeks, re-cording a net outflow of -RM363.9 million, two times higher than the previous week’s outflow of -RM176.0 million. “The average daily trading volume saw a broad-based increase last week. Local retailers and local institutions saw an increase of +6.6% and +36.2%, respectively, while foreign investors saw an increase of +8.2%,” MIDF Amanah said. – Bernama

KUALA Westports Holdings Bhd’s container volumes are estimated to be higher in the second quarter of 2025 (Q2’25) compared to 0.6% recorded in Q1’25 due to the start of the Gemini Cooperation shipping alliance from Feb 1, according to CGS International Securities Malaysia Sdn Bhd (CGS MY). It said the volume growth resulted in a one-off boost to Westports’ transhipment volume in the first three months of 2025, as Hapag-Lloyd reshuffled its boxes when it joined Gemini and got a permanent boost to Westports’ transhipment volumes. “Two of Evergreen’s container shipping services were relocated to call at Westports instead of Port of Tanjung Pelepas (PTP) from April 1, 2025 (Evergreen relocated five services from PTP to the Port of Singapore),” it said in a research note yesterday. CGS MY said Evergreen’s move LUMPUR:

was directly linked to the higher transhipment volumes that Gemini’s Maersk and Hapag-Lloyd have given to PTP due to Gemini’s transition to the hub-and-spoke model. It also opined that Westports’ transhipment volumes for Q1’25 were boosted by the US trade war with China, which started on April 2 but was largely suspended for 90 days on May 14. CGS MY said the collapse in US China trade in April caused shipping lines to redeploy their vessels to other trades, but US-China shipping capacity was reinstated after mid May as US import demand returned. “The whiplash vessel deployments resulted in greater transhipment moves at both Port Klang and Singapore, according to Westports.” CGS MY said a modest 3.4% year on-year (y-o-y) recovery to 11.19 million transhipments in 2026 is expected, further accelerating to