18/07/2025

BIZ & FINANCE FRIDAY | JULY 18, 2025

15

StanChart expects US dollar to weaken in H2

KUALA LUMPUR: The US dollar is expected to weaken in the next six to 12 months, and Standard Chartered Wealth Solutions Chief Investment Office (CIO) outlines a constructive, albeit volatile second half of 2025 in its recently published Global Market Outlook report. The bank views the weakening greenback outlook as a key market driver alongside an anticipated policy easing and supportive global conditions. Against this backdrop, the bank has identified three key themes for investors to consider during the second half of the year, namely an overweight position in global equities, with a tilt towards Asia ex Japan. The bank also highlighted a preference for US dollar bonds with maturities of 5 to 7 years, as well as emerging market (EM) local currency bonds, citing the recent weakness of the US dollar as a key factor driving this strategy. Gold and alternative investment strategies are seen as attractive options for enhancing portfolio diversification. Taking into consideration the end of US’ 90-day tariff pause in July, as well as global geopolitical conflicts, the bank also identified several risks that merit close attention and will most likely result in temporary volatility. Standard Chartered noted that key risks to the global economic

outlook include a sustained rise in trade tariffs, a sharp increase in oil prices driven by geopolitical events, and a sudden decline in US economic data that could point toward a potential recession. Standard Chartered Malaysia head of wealth and retail banking Harmander Mahal said the second quarter marked a pivotal moment for investors. “Despite ongoing global trade shifts and geopolitical tensions, global equities remained robust, rising approximately 8 -10% quarter-to-date. “This reflects sustained investor confidence and a re-acceleration in risk appetite, particularly across Asia, where emerging markets benefited from stronger capital inflows and currency tailwinds. “Malaysia continues to demonstrate resilience amid global uncertainty, with our 2025 growth forecast maintained at 4.2% and the ringgit emerging as the region’s better-performing currencies against the US dollar – signalling strong investment sentiment,“ he said. In addition to its leadership role as Asean Chair 2025, Harmander said Malaysia is well-positioned to unlock further growth opportunities based on the bank’s outlook for the year, as structural reforms take shape and strategic initiatives, such as the Special Economic Zones gain momentum.

iCENTS eyes 10% rise in revenue for 2026 Company targets manufacturing boost and new markets, with data centres as key post-IPO drivers. – ICENT WEBSITE

o Cleanroom output makes up 10–15% of income, with gains expected from expansion efforts

year, while the plan to tap local and international markets like Kuching, Sarawak and Jakarta, Indonesia, is expected to materialise within a year. He said that the clean room and facility service provider does not currently have a dividend policy but is planning to introduce one. “We are planning to allocate a payout of between 20% and 25% of annual profits while balancing the need to retain funds for capital expenditure,” he said. On the impact of tighter export controls, Ong said the group does not foresee any immediate effect on its business because most of its revenue comes from recurring sources. On currency fluctuation risks, Ong said the group still conducts its business in Indonesia using the ringgit and iCents has no deals in Vietnam or Australia, although some products delivered to Vietnam are invoiced in US dollars. – Bernama

KUALA LUMPUR: iCents Group Holdings Bhd has targeted a 10% growth in revenue for 2026, driven by an expected rise in contribution from its manufacturing operations. Managing director Ong Mum Fei said the group’s manufacturing of cleanroom fixtures and related products accounts for 10% to 15% of overall revenue, with contribution expected to rise as the company ramps up production and expands its facility. “We are also progressively securing projects over the next few months. This year, we anticipate securing more data centre projects, although most of the recognised revenue will come in 2027,” he told a press conference after the company’s

listing ceremony yesterday. iCents made its debut on the ACE Market with its share price opening at 29 sen, a five sen premium over its initial public offering (IPO) price of 24 sen, with 13.59 million shares traded. The group is mainly involved in providing cleanroom services including engineering, procurement, construction, and testing, and the commissioning of cleanrooms catering to semiconductor and electronics manufacturing, data centres, pharmaceutical, and life sciences sectors. Ong noted that the company’s new facility in Mantin, Negeri Sembilan, is expected to begin operations in the first quarter of next

Weakening US dollar reshapes investment strategies, with StanChart favouring local currency bonds and diversification into gold. – UNSPLASH PIX