30/07/2025

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Malaysian Paper

/thesundaily /

inDrive aims to rebuild trust and strengthen Malaysian operations

Malaysia’s 2024 trade at record high RM2.9 trillion o Surplus of RM139.1 billion marks 27th consecutive year of favourable balance

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Oxford Innotech Bhd (OXB) plans to more than double its production capac ity by 2027 and deepen its presence in modular building systems and semiconductors, betting on accelerating demand from 5G, Internet of Things and artificial intelligence (AI) industries following its debut on Bursa Malaysia’s ACE Market yesterday. Managing director Ng Thean Gin said the listing, which raised RM41.6 million, was not only a capital-raising milestone but also a catalyst to “take Oxford Innotech to the next level in visibility, capability and impact”. “Engineering has no limits and that belief drives our purpose to lead with innovation,” he said at the listing ceremony. “The IPO gives us the capacity to scale up, broaden our product offerings and cross-sell to existing customers, particularly in fast-evolving sectors like semiconductors and E&E.” The company will construct a new factory in 2026, adding 67,722 square feet of manu facturing space to bring total capacity to 192,896 square feet. Operations are targeted to begin in the third quarter of 2027. Ng said the additional facility, coupled with new machinery purchases funded by the IPO (initial public offering), will enable OXB to serve growing orders from modular building and semiconductor clients. “We are seeing significant demand for new product sample submissions from semi conductor customers,” he said, adding that while they do not have fixed numbers yet, with the new factory ready, their total production KUALA LUMPUR: Ride hailing firm inDrive aims to rebuild trust and strengthen its Malaysia operations following compliance breaches involving driver permit requirements. Macroregional director for Asia-Pacific Mark Tolley admitted that inDrive made errors which led to regulatory scrutiny but has improved its internal systems and is committed to implementing stronger safety and compliance measures. “Where we are today versus three months ago is a massive leap. And where we’ll be in three, six, or 12 months will be a constant evolution,” he said at a press conference yesterday. Tolley admitted that the company had “learnt the hard way” and it is committed to mitigating these risks as much as possible. “We’ve had to invest heavily into our tech and mitigation systems and we will continue to do that. Have we massively enhanced our systems? 100%,” he said. Country lead Govin Kumaar said it has done several upgrades within its internal systems. “We have improved our driver onboarding, we are sharing real-time data with Land Public Transport Agency (Apad) in regard to this matter. Govin emphasised that compliance is its highest priority at this point in time and it will remain compliant. “We don’t see this as a problem going forward,” he said. On April 24, Apad issued a notice of licence revocation to Maxim and inDrive after an audit revealed major compliance failures, particularly related to e hailing vehicle permit requirements. The revocation was scheduled to take effect on July 24. Following appeals by both companies to the Ministry of Transport, the revocation was put on hold, and a three month probationary period, beginning July 24, was granted, allowing them to continue operating while meeting corrective conditions. Tolley reaffirmed inDrive’s long-term commit ment to Malaysia, describing it as a key regional market.

(+RM11.8 billion, +20.5%); palm oil & palm based agriculture products (+RM8.5 billion, +11.9%) as well as manufacture of metal (+RM5.2 billion, +9.2%). Similarly, expansion in imports was recorded for E&E products (+RM99.9 billion, +28.1%); machinery, equipment & parts (+RM24.4 billion, +27.4%); other agriculture (+RM11.6 billion, +25.9%); manufacture of metal (+RM6.2 bil lion, +9.6%); processed food (+RM3.5 bil lion, +12.1%); and liquefied natural gas (+RM3.0 billion, +43.0%). Correspondingly, the uptick in imports by end use was influenced by higher demand for capital goods, consumption goods and intermediate goods. Imports of capital goods, amounting to RM166.1 billion (12.1% of total imports) climbed by 29.0%, resulting from higher imports of capital goods (except transport equipment) (+RM37.4 billion). Imports of consumption goods (8.6% of total imports) registered an increase of 12.8% or RM13.3 billion to RM117.4 billion, as a result of higher imports of food & beverages, proc ess, mainly for household consumption (+RM4.5 billion) and durables good (+RM3.1 billion). Intermediate goods, worth RM749.2 bil lion (54.7% of total imports), grew by 20.7% from RM620.6 billion in 2023 driven by higher imports of parts and accessories of capital goods (except transport equipment) (+RM87 billion) and industrial supplies, processed (+RM19.1 billion). Malaysia’s trade performance in 2024 was in line with regional countries notably China, Japan, South Korea, Taiwan, Thailand, Vietnam, Singapore and Indonesia which recorded positive trade growth. 16.6%. Mechanical assembly contributed 65% of revenue, followed by precision engineering components at 33.4% and automation and robotics solutions at 1.7%. Geographically, Malaysia accounted for 96.4% of revenue, with the remainder from other Asian countries, North America and Europe. While near-term production will remain centred in Malaysia, OXB is actively seeking overseas customers through trade shows and exhibitions. “Our marketing team is engaging international buyers, but immediate focus remains on serving regional demand,” Ng said, noting that export sales could grow as new products move from sample stages to mass production next year. He acknowledged that 2025 remains challenging due to global market uncertainty but expects improvement in 2026 as trade tariffs stabilise and capital expenditure by semiconductor clients ramps up. “The conclusion of tariff issues should stabilise the market,” he said. “Clients’ capex expansion will benefit us and contribute to growth in the coming year.” As the company shifts into its next growth phase, Ng credited the founding team and workforce for bringing OXB to the milestone. “This moment belongs to our team. Their belief in what we do has brought us here and together we’re building not just for today, but for the opportunities ahead,” he concluded. Malacca Securities Sdn Bhd acted as principal adviser, sponsor, underwriter and joint place ment agent, with Kenanga Investment Bank Bhd as joint placement agent and Wyncorp Advisory Sdn Bhd as corporate finance adviser.

by electrical and electronic (E&E) products and vegetable fats & oils (palm oil). As for imports, 191 of 261 commodity groups aug mented mainly due to higher imports of E&E products, other machinery & equipment and cocoa. Mohd Uzir said the upswing in exports was in line with the higher shipments to the United States with a positive growth of 23.3% or RM37.6 billion to RM199.9 billion driven by higher exports of E&E products (+RM18.8 billion); other manufactures (+RM7.1 bil lion); machinery, equipment & parts (+RM2.2 billion); and rubber products (+RM1.9 billion). It was followed by Taiwan (+RM23.6 bil lion or 54.5%), Singapore (+RM11.6 billion 5.3%), India (+RM6.6 billion 14.5%), and Indonesia (+RM3.5 billion 6.9%). Furthermore, the upsurge in imports was led by higher imports from China with an increase of 14.9% or RM38.4 billion from RM258.1 billion in the preceding year to RM296.5 billion led by strong import of E&E products (+RM18.9 billion), machinery, equipment & parts (+RM9.1 billion); and transport equipment (+RM3.0 billion). It was followed by the United States (+RM37.4 bil lion, +42.1%); Taiwan (+RM25.3 billion, +30.2%); Singapore (+RM21.7 billion, +15.1%); the European Union (+RM9.2 billion, +9.8%); and Mexico (+RM6.1 billion, +198.6%). On exports by sector, manufacturing, agriculture, mining and others worth RM1,509.3 billion demonstrated a growth of 5.8% or RM83.1 billion. The rise was attribut able by E&E products (+RM26.1 billion, +4.5%); other manufactures (+RM15.4 bil lion, +34.2%); machinery, equipment & parts

MALAYSIA’S trade performance in 2024 showed strong momentum, reflecting the country’s adaptability and resilience as a trading nation, according to Department of Statistics, Malaysia. Total trade rose by RM242.3 billion or 9.2% year-on-year (y-o-y) to a record high of RM2.9 trillion in tandem with increases in exports (5.8%) and imports (13.1%). Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said Malaysia main tained a trade surplus for the 27th consecu tive years since 1998, amounting to RM139.1 billion, supported by resilient performance in major export products. Exports rose by 5.8% from RM1.4 trillion in the preceding year to RM1.5 trillion. The increase was underpinned by domestic exports which increased by 9.4% from RM1.1 trillion to RM1.2 trillion and contributed 80.6% to total exports. On the contrary, re exports, with a value of RM293.2 billion, shrank by 7% or RM21.9 billion compared to 2023. Imports escalated by RM159.2 billion or 13.1% y-o-y to RM1.4 trillion. Meanwhile, the trade surplus declined by 35.4% or RM76.1 billion from RM215.2 billion in 2023. Supported by broader expansion, 165 out of 261 commodity groups in exports showed increases compared to the previous year, led

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com Oxford Innotech shines in ACE Market debut, enters new growth phase

From left Oxford Innotech independent directors Kaoy Lay Min, Che Rogayah Sudin and Khoo Lay Tatt, executive director Lee Lai Chan, Ng, independent chairman Dr Hari Narayanan P. Ondiveeran, executive directors Oh Yen San and Teh Teng Wah, Malacca Securities managing director Lim Chia Wei, Kenanga Investment Bank corporate and institutional coverage director Datuk Kenny Yong and Wyncorp Advisory managing director Wong Yoke Nyen.

automated modules, production line systems and smart factory solutions). OXB’s shares opened at 36 sen, a 24% premium over the 29 sen issue price, with 9.24 million shares traded at the opening bell. The counter closed at 38.5 sen, 9.5 sen or 32.8% above the IPO price, on volume of 101.551 million shares. Of the RM41.6 million raised from the IPO, RM23.1 million will fund the new factory, RM11.2 million is for machinery and refinancing, RM3.3 million for working capital and RM4 million for listing expenses. For the first quarter ended March 31, 2025, OXB reported profit after tax of RM3.2 million on revenue of RM19.5 million, yielding a margin of

capacity will be slightly more than double what they are doing currently. The global modular building systems market is projected to grow from US$97.3 billion (RM430.5 billion) in 2023 to US$161.9 billion by 2030 at a 7.5% compounded annual rate, while semiconductor demand is expected to remain buoyant amid AI, data centre and autonomous driving trends. OXB’s core businesses span three segments: precision engineering component solutions (sheet metal fabrication, CNC machining and plastic injection moulding), mechanical assembly solutions (semi- and fully-assembled products, including design services) and automation and robotics solutions (standalone