15/07/2025

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TUESDAY | JULY 15, 2025

KTMB set to rely less on govt funding

o Railway company focusing on improving operational efficiency to reduce overall losses although cargo segment is profitable

Loke (left) and Prasarana president and group CEO Mohd Azharuddin Mat Sah (second, left) at the unveiling ceremony of new diesel buses at the Rapid Bus Complex Batu Caves yesterday. – BERNAMAPIC

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

from the cargo side, from ETS (electric train service), is used to cover commuter services,” he ex plained. Loke said KTMB’s immediate focus is on improving operations, not on short-term profitability. “Of course, we hope that it can be financially sustainable, but that is not our immediate consideration right now.” KTMB has not reached profit ability, the minister said. “In terms of operations, we have not yet reached profitability, not even a break-even point.” In April 2023, Railwaymen Union of Malaya president Muhammad Faizal Shahibul Kiraya said KTMB will continue to incur losses if it does not get more cargo trains, adding that the railway company has been in the red for about 30 years. In 2024, it was reported that government grants to cover KTMB’s funding gap increased from RM180 million in 2022 to RM305.7 million in 2023, highlighting ongoing deficits. At the event yesterday, Rapid Bus Sdn Bhd, a subsidiary of Prasarana Malaysia Bhd, accepted the final batch of diesel buses under its bus replacement programme, which will play a crucial role in strengthening public transport in the Klang Valley cap among existing KLCI constituents, could be removed to make room,“ it said in a research note yesterday. CIMB Securities noted that in addition to meeting the market cap requirement, securities must have a free float of at least 15% and pass a liquidity screening test to qualify for inclusion in the FBM KLCI. Port operator MMC Port Holdings Bhd has reportedly moved closer to what could be Malaysia’s largest initial public offering in 13 years, following the submission of a draft prospectus to the Securities Commission, as published on the regulator’s website. According to the FTSE Bursa Malaysia Index Series Ground Rules, a newly listed company may qualify for inclusion in the FBM KLCI if its full market cap is at least 2% of the total market cap of the FBM Emas Index, based on the closing price on its first trading day. “If this condition is met, the stock will be added to the KLCI at the close of its fifth trading day. As of Jul 10 2025, the FBM Emas Index market cap stands at RM1,626.6 billion, implying that an

KUALA LUMPUR: Keretapi Tanah Melayu Bhd (KTMB) is expected to gradually reduce its reliance on government funding as it improves operational efficiency, according to Transport Minister Anthony Loke. He said the government-linked company still depends heavily on government funding to sustain its daily operations. “There is indeed a shortfall in operational costs,” he said at the unveiling ceremony of new diesel buses at the Rapid Bus Complex Batu Caves yesterday. Loke said KTMB’s commuter services are operating at a loss. “If we want to achieve profitability, we would need to raise prices to a sustainable level. However, will the public accept this? As a government linked company, KTMB has a social responsibility to consider,” he said. Loke stressed the need to improve KTMB’s operations, es pecially the commuter services. “We hope that it will become more efficient, and, over time, our funding gap will be reduced.” However, Loke noted that the railway company is making a profit from its cargo operations. “KTMB operates under a cross subsidy framework. What we get KUALA LUMPUR: Westports Holdings Bhd could replace Sime Darby Bhd in the upcoming review of the FTSE Bursa Malaysia KLCI (FBM KLCI) as its market capitalisation (market cap) ranking has risen to 24th among eligible securities, surpassing the eligibility threshold of the 25th largest. The next FBM KLCI review outcome announcement is scheduled for Dec 4, and will be based on closing share prices on Nov 24. Any changes to index constituents will take effect on Dec 22. CIMB Securities noted that based on closing market data as of July 10, Westports has risen to 24th position in market cap among eligible Main Market securities. “The company could potentially be added to the KLCI in the next review, provided it retains a ranking of 25th or higher among eligible securities as of Nov 24, the cut-off date. “Currently, the market cap gap between Westports and Nestlé Malaysia (the 26th-ranked eligible security ) stands at 6.3%. If Westports is added, we believe Sime Darby, which currently has the lowest market

transport access to densely popu lated and residential areas that are difficult for larger buses to reach. All of these new buses comform to the Euro 5 emission standard, the latest international pollution control benchmark. With this technology, Rapid Bus aims to reduce nitrogen oxide emissions that degrade air quality, contributing to a cleaner urban environment. Rapid Bus’s long-term plan includes the introduction of electric buses, which is expected to begin in 2026. This initiative is supported by the construction of charging facilities, as well as ongoing technical training and maintenance efforts. regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL of the STA 2010, Miti noted. “Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company, who will face strict legal action if found violating the STA 2010 or related laws. “While Malaysia supports invest ments and trade aligned with international best practices as well as with multilaterally agreed commit ments, all entities operating in the country are expected to comply with relevant international obligations that apply to their operations to avoid any secondary sanctions on their businesses,“ it said. The ministry added that it remains committed to preserving a safe, secure, transparent and rules based trading environment with all its trade partners and will not tolerate the misuse of Malaysia’s jurisdiction for illicit trading activities.

current operational needs. This initiative also aims to replace old buses that can no longer meet current operational plans, thereby improving the user experience. “At the same time, we remain committed to achieving long-term sustainability through the intro duction of electric buses, which are scheduled for 2026,” he said. The new 12-metre buses can accommodate 60 passengers, meeting current demands and enhancing connectivity in the Klang Valley and Penang, where passenger demand is increasing. In addition, in the third quarter of 2025, Rapid Bus will introduce 8.9-metre buses to expand public PETALING JAYA: The Ministry of Investment, Trade and Industry (Miti) has announced that all exports, transhipments and transits of high performance artificial intelligence chips (AI chips) of US origin are subject to a Strategic Trade Permit, effective immediately. In a statement, Miti said the powers are provided under Section 12 of the Strategic Trade Act 2010 (STA 2010). This section covers the Catch-All Control provision, which gives authorities the ability to regulate certain exports even if the items are not listed in the Strategic Items List (SIL). Under this provision, individuals or companies must notify the relevant authority at least 30 days in advance if they plan to export, tranship or bring in transit any unlisted item, provided they know, or have reasonable grounds to suspect, that the item may be misused or used for restricted activities. This initiative serves to close

and Penang. The purchase of 310 diesel buses is part of an ongoing initiative to upgrade and enhance the country’s public transport system. The programme aims to replace older buses that have been in operation for many years, with phase-in operations from the end of this month until the first quarter of 2026. Prasarana COO Amir Hamdan said the acceptance of this final batch of buses is part of Prasarana’s strategic transition plan to ensure the continuity of efficient and safe public transport services. “While we are planning a shift to electric buses in the future, these diesel buses are crucial to meet IPO with a market cap of at least RM32.53 billion would meet the fast entry threshold,“ said CIMB Securities. It added that potential changes in the FBM KLCI could spur increased interest in stocks likely to be included, driven by passive fund inflows, while stocks at risk of exclusion may face selling pressure. The FTSE and Bursa Malaysia are scheduled to release the preliminary results of the FBM KLCI review on Dec 3, via a technical notice, one day ahead of the official announcement on Dec 4. Since the last review, YTL Corporation Bhd, YTL Power International Bhd and Axiata Group Bhd have recorded the largest increases in market cap among FBM KLCI constituents. Conversely, Sime Darby, PPB Group Bhd and RHB Bank Bhd have registered the most significant declines. As of June 30, the financial services sector accounted for the largest weighting in the FBM KLCI at 41.1%, followed by the utilities sector at 17.6% and the telecommunications sector at 9.8%. – Bernama

Westports could make it into FBM KLCI at next review, says CIMB Securities

Miti: Permit rule for US-origin AI chip exports in effect immediately