02/08/2025

BIZ & FINANCE SATURDAY | AUG 2, 2025

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UMS Integration in expansion mode

o Singapore-based company makes landmark debut on Bursa Malaysia, plans to step up Penang operations, deepen supply chain push

KUALA LUMPUR: UMS Integration Ltd is ramping up its push into the artificial intelligence (AI) and high performance computing supply chain, eyeing higher value precision components and expanding its Penang facilities as part of a five year growth roadmap following its landmark secondary listing on Bursa Malaysia. CEO Luong Andy said the Singapore-headquartered precision engineering specialist, which already counts two major semiconductor clients among its key customers, sees “tremendous opportunities” in ad vanced packaging solutions critical for AI chips, a segment driving global capital expenditure in semicon ductors. “We are moving up the semicon ductor value chain and see many opportunities, especially in AI and high performance computing, where we have the know how and capability to produce the precision components needed,” Luong told reporters after the listing ceremony. The company’s shares opened at RM5.15, 3% above the reference price of RM5, and traded as high as RM5.39 in early deals, valuing UMS Inte gration at about RM3.7 billion. The counter closed at RM5.50 a share on Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

volume of 6.12 million shares. Executive director Stanley Loh Meng Chong said UMS Integration is doubling down on Penang, where it operates its largest production plant, to support growing orders for advanced semiconductor equipment. The company recently acquired additional land in Penang and plans to begin construction next year, adding about 200,000 sq ft to reach 1 million sq ft in total manufacturing space within the next two to three years. “Penang remains central to our volume manufacturing strategy. This expansion will support key cus tomers’ ramp up in operations, especially for advanced node manu facturing and packaging linked to AI chips,” Loh said, adding that Malaysia’s accessibility and talent pool make it a preferred base for scaling production. UMS Integration’s secondary listing on Bursa Malaysia was under taken by way of introduction, meaning no new funds were raised. The company retains its primary listing on the Singapore Exchange, where it last traded at S$1.53 (RM5.04). Luong said the dual listing strategy is aimed at enhancing liquidity and providing “flexibility to tap different equity markets” for future fundraising if needed. “This listing broadens our investor

Luong (fifth from left), UMS Integration chairman Datuk Phang Ah Tong (sixth from left), Lim (seventh from left) at the company’s listing ceremony yesterday.

regional and international listings. Lim highlighted Penang’s pivotal role in UMS Integration’s growth story, noting how the company’s expansion has paralleled the state’s rise as a global semiconductor and advanced manufacturing hub. “UMS Integration’s continued investment has not only enhanced Penang’s manufacturing ecosystem but also created high value jobs and opportunities, aligned with the Penang 2030 vision to attract quality, future forward investment.” Lim said Malaysia’s regulatory ecosystem is evolving to support innovation, digitalisation and sus tainable finance, and expressed hope that UMS Integration’s secondary listing would inspire other regional players with Malaysian ties to consider a presence on the stock exchange here.

than last, and the years to come will also benefit from the trend of higher equipment spending,” he said. While research and development remains anchored in Singapore, Loh said Malaysia will continue to absorb most of the group’s manufacturing investments, with Penang serving as its volume hub for global customers. Deputy Finance Minister Lim Hui Ying, who officiated at the ceremony, hailed the cross border listing as a milestone for Malaysia’s capital market and a signal of growing eco nomic integration between Malaysia and Singapore. She said UMS Integration’s move underscored confidence in the robustness of Bursa Malaysia’s infra structure, investor depth and gover nance standards, while aligning with the government’s ambitions to position the country as a hub for

base and positions us better to access capital when opportunities arise,” he noted. For the first quarter ended March 31, 2025, UMS Integration posted S$57.7 million in revenue, up 7% year on year, with net profit edging up to S$10.1 million. The semiconductor segment contributed 84% of revenue, followed by aerospace at 11%. The group remains in a net cash position of S$81.4 million and continues its policy of quarterly dividends, paying S$0.01 per share in July. UMS Integration has historically been reliant on one major customer but is now balancing its portfolio with a second key client of comparable size. Loh said this diversification, coupled with demand from AI driven chipmakers, is expected to underpin growth in 2025 and beyond. “We believe this year will be better

KAB, Northern Solar see RE opportunities in 13MP PETALING JAYA: Renewable energy players Kinergy Advancement Bhd (KAB) and Northern Solar Holdings Bhd have expressed strong support for the government’s com mitment to enhance the renewable energy landscape under the 13th Malaysia Plan (13MP). Meanwhile, KAB executive deputy chair man and group managing director Datuk Lai Keng Onn said the government’s bold reforms under 13MP – particularly the move towards a transparent electricity market – will better reflect the actual cost of power generation. He noted that this progressive approach will accelerate renewable energy deployment, strengthen carbon reduction efforts, and widen participation through mechanisms such as Cream.

Westports delivers solid first-half results PETALING JAYA: Westports Holdings Bhd has reported solid financial and operational results for the second quarter and the first half of 2025, underscoring its resilience and strategic role in regional trade. For the six months ended June 30, 2025, the company reported total revenue of RM1.31 billion, supported by robust container throughput of 5.57 million twenty-foot equi valent units. Intra-Asia trade remained the primary contributor, accounting for 61% of total con tainer volume, reflecting sustained demand within the region. Westports’ conventional segment also delivered a solid performance, facilitating the handling of 5.71 million tonnes of bulk cargo. This was primarily driven by increased activity in the dry bulk segment, reflecting steady commodity movements. Operating around the clock with a workforce of 5,600, Westports recorded an 8% increase in its operational workforce costs, the largest component of its cost structure. The company also began making higher payments to the port authority following the commencement of the extended supple mental privatisation agreement on Sept 1 2024. In line with its capital commitments and infrastructure development, Westports’ cash flow statement showed an increase in service concession-related assets and obligations. Despite these investments, the company remained profitable, recording a net profit of RM454 million for the first half of the year.

Northern Solar managing director SK Lew welcomed the government’s efforts to create a more transparent and competitive electricity market in Malaysia. He said initiatives such as the Community Renewable Energy Aggregation Mechanism (Cream), Corporate Renewable Energy Supply Programme (Cress), and investment in Battery Energy Storage Systems reflect a clear commitment to strengthening the country’s renewable energy infrastructure. “Northern Solar is strategically positioned to capitalise on these developments,” Lew told SunBiz . “We are actively exploring and parti cipating in the Cream and Cress programmes, which are set to broaden market opportunities in the renewable energy sector significantly.” He added that the focus on integrating battery storage solutions aligns with the company’s strategic direction, enhancing the value of the solar photovoltaic projects delivered to its commercial and industrial clients. “With our strengthened financial capacity post-listing, technical expertise and robust project pipeline, we are confident in our ability to play an active and meaningful role in advancing Malaysia’s energy transition under the National Energy Transition Roadmap (NETR), while delivering long-term sustainable

“As 13MP drives attention towards renewable energy acceleration, including the development of mini hydropower, the recently announced Sabah project sets a positive tone for broader adoption. “This is in line with KAB’s growth trajectory. We have received approval from the Sustainable Energy Development Authority under the FiT 2.0 programme for two hydro power facilities, which will deliver a combined 8.04MW of clean energy, supported by a 21 year tariff mechanism. “This mirrors national strategies and signals our readiness to contribute meaningfully,” Lai said. He added that KAB’s recent milestones – including FiT 2.0 approvals, a RM646 million engineering, procurement, construction and commissioning contract for a 120MW gas engine power plant and a multiproject partnership in Perak – underscore the group’s continued role in shaping Malaysia’s energy landscape. “As frameworks like 13MP, Cream and the Corporate Green Power Programme take form, KAB remains focused on supporting national sustainability goals through scalable and inclusive energy solutions,” Lai said.

Lew: Well-positioned Lai: Bold reforms growth and value to our shareholders and stakeholders,” he said. Unveiling the 13MP on Thursday, Prime Minister Datuk Seri Anwar Ibrahim highlighted that the green economy is poised for further expansion, supported by the NETR. Malaysia aims to increase its share of renewable energy from 29% to 35% by 2030. Key initiatives include the development of battery energy storage systems, floating solar hydro hybrids in Kenyir, and a hydrogen hub in Sarawak. The government is also exploring the potential of nuclear energy as part of its clean energy mix. “Malaysia must rise as an Asian economy known not just for growth, but for value creation and sustainability,” said Anwar. These efforts align with carbon trading strategies, the National Carbon Market Policy, and investments in waste-to-energy infra structure.