05/08/2025

BIZ & FINANCE TUESDAY | AUG 5, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

14

Oasis Home eyes RM10m plus annual revenue from new halal product line

and top-tier livestream enabler recognised by platforms such as TikTok, Shopee and Lazada. The initial product pipeline includes marine collagen powder drinks, skin health sup plements and children’s immunity boosters. The products will be distributed via major platforms including TikTok, Shopee and Lazada. OG Alliance is expected to be incorporated by early September, with its first product launch scheduled for the end of the year. Teoh said digital platforms are driving growth in the wellness space, “In July 2025, TikTok’s wellness category alone recorded over RM80 million in monthly revenue. According to IMARC Group, Malaysia’s health and wellness market is projected to grow from US$11.4 billion (RM48 billion) in 2024 to US$18 billion by 2033, at a compounded annual growth rate of 4.6%.” CIMB Securities expects ‘flattish’ Q4 results from F&N KUALA LUMPUR: CIMB Securities Sdn Bhd expects Fraser & Neave Holdings Bhd (F&N) to post flattish quarter-on-quarter (q-o-q) results in its fourth quarter ending Sept 30, 2025. Although it expects F&N to enjoy better margins and higher sales volume versus its low base in the third quarter, this is expected to be offset by weaker Indochina sales due to Thailand-Cambodia border disruptions, which have affected exports to Cambodia and reduced Thailand’s tourist arrivals. The report also said the recent strengthening of the ringgit should lead to lower input costs; internal cost optimisation initiatives should also help cushion ongoing dairy farm losses, it added. “In addition, we expect the effective tax rate to normalise in the 4Q FY2025, supported by the recognition of deferred tax assets to offset losses from the company’s dairy farm operations,” said CIMB Securities. F&N’s net profit fell to RM84.81 million in third quarter FY2025 from RM121.62 million in third quarter 2024, amid lower earnings and un recognised deferred tax assets concerning the current year’s dairy farm losses. Revenue dropped 4.5% to RM1.24 billion from RM1.3 billion previously. CIMB Securities said with F&N’s third quarter results falling short of expectations, it lowered its financial year 2025-2027 earnings per share estimates to account for a higher tax rate, higher losses from its dairy farm, and weaker sales volumes in Malaysia and Indochina. – Bernama Local retailers extend net buying run on Bursa KUALA LUMPUR: Malaysian retailers continued their net buying activities on Bursa Malaysia for the fourth consecutive week last week, posting a net equity inflow of RM114.4 million, according to MBSB Investment Bank Bhd (MBSB IB). In its Fund Flow Report, the investment bank said local institutions ended their two-week net selling streak and turned net buyers last week, registering a net purchase of RM263.7 million. Meanwhile, it noted that foreign investors continued to net sell for four consecutive weeks, recording a net equity outflow of RM378.1 million, representing 4.2 times higher than the previous week’s outflow of RM89.9 million. “Foreign investors were net sellers on every trading day, with outflows ranging from RM13.2 million to RM142.2 million. The investment bank said the average daily trading volume experienced a broad-based increase last week, with foreign investors and local retailers recording a 14.9% and 2.8% rise, respectively, while local institutions saw a decline of 5%. – Bernama

with counterparts in Thailand and Indonesia. If we meet the local requirements, adapting our products to regional markets will be straight forward,” he added. Teoh said Oasis Home’s direct-to-consumer business model built on digital sales channels enables cost-efficiency and affordability. “We don’t pay rental or carry heavy operating costs. That’s why we can offer premium wellness products at accessible prices. Wellness and healthcare don’t have to be expensive but they must comply with regulatory standards.” The joint venture company, OG Alliance Sdn Bhd, will be incorporated with a start-up capital of RM500,000, with Oasis Wellness holding a 51% stake and GIMCare owning the remainder. GIMCare is a wholly owned subsidiary of GIMmedia Sdn Bhd, a multichannel network

ting estimate. I think it’s an attainable target,” he told reporters at the joint venture agree ment signing ceremony between Oasis Home’s wholly owned subsidiary, Oasis Wellness International Sdn Bhd, and livestream mar keting agency GIMCare (M). Teoh said the upcoming wellness range will prioritise strict regulatory compliance and halal certification. “We are very good in sourcing the ingredients from overseas especially those who have trademark and also comes with clinical research, the ingredients of the supple ments.” Teoh said the joint venture aims to tap into halal markets in Indonesia, Thailand and Vietnam, which have sizeable Muslim popu lations. “For example, one of our guests today is from the Ministry of Health who works closely

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

PUCHONG: Oasis Home Holding Bhd expects to generate more than RM10 million in yearly revenue from its new halal health supplement and wellness product line developed under a joint venture with livestream marketing agency GIMCare (M) Sdn Bhd. CEO Datuk Jaden Teoh Yee Seang said the figure is based on performance benchmarks from GIMCare and its parent company, GIMmedia, which currently records RM30 million in gross merchandise value monthly across livestream and e-commerce channels. “GIMCare is doing, in similar but not in the same category we’re developing, over RM4 million to RM5 million in monthly revenue. So, if we’re saying our yearly target is RM10 million, I think that’s a comfortable and not exaggera

Economists strike cautious tone on impact of US tariffs

o SMEs expected to bear brunt of 19% levy, exporters to face challenging year

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

PETALING government’s announcement of a “victory” in reducing the United States’ tariffs on Malaysian exports from 25% to 19% has drawn cautious reactions from economists, who argue that the move may not deliver the relief many are expecting. While the revised rate is lower, experts point out that the new figure is still a sharp increase from historically minimal tariffs and will likely dampen Malaysia’s trade prospects for months to come. Centre for Market Education CEO Dr Carmelo Ferlito said the narrative of a tariff “reduction” is misleading. “Tariffs were never 25% or 22% or 40% to begin with,” he said. “They were as low as 2% to 3%, but (US President Donald) Trump threatened to raise them to 22% or 25% or even 40%. Nineteen per cent is a reduction against what was threatened, so de facto , it is not a reduction but an increase.” Ferlito stressed that tariffs are inherently damaging to global trade, restricting the flow of goods and services and ultimately harming consumers and workers on both sides. “Tariffs reduce occasions for trade,” he said. “This means less choice for consumers but also job losses, not just for Malaysia, but for the world.” Universiti Kebangsaan Malaysia’s Faculty of Economics and Management lecturer Dr Mustazar Mansur said the tariff move reflects broader policy changes in Washington under Trump’s second term. “Trump wants to shift the US from being a consumer country to a producer country. By doing this, he aims to create more job and business opportunities domestically, even if it means imposing higher costs on trading partners.” Mustazar said the measure aligns with the administration’s “US for US” slogan, signalling a pivot towards protecting American in dustries, a move that inevitably pressures JAYA: The

Mustazar says production costs will go up

Ferlito says new US tariff is not a reduction

may have to pass these costs on to consumers or shift from labour intensive to more capital intensive operations, which isn’t easy in the short term.” For Ferlito, the most effective response lies not in subsidies or protectionism, but in structural reforms to improve Malaysia’s business environment. “The only useful government support now comes from regulations that make doing business easier, limiting compliance bur dens, slashing whatever hinders competi tiveness, so our players go out stronger in the market,” he said. Looking ahead, both experts expect Malaysian exporters to face a challenging year. The combination of higher tariffs, softer global demand and currency pressures will force companies to adapt, whether through diversification of markets, moving up the value chain or cutting costs. “International trade will suffer,” Ferlito cautioned. “It’s not just Malaysia, everyone loses when barriers like this are erected.” Mustazar agreed but noted that Malaysia’s open economy has historically shown resilience in adjusting to external shocks. “The key will be how quickly exporters can recalibrate,” he said. “We have to be careful, but with the right adjustments in investment and operations, the economy can still grow, but more modestly.”

export-reliant economies like Malaysia’s. Bank Negara Malaysia’s decision to revise its 2025 growth forecast and lower interest rates underscores the seriousness of the trade headwinds, he added. “Bank Negara is reacting to uncertainty not just from tariffs, but also from global geopolitical tensions like Ukraine and Russia, Israel and its neighbours, India and Pakistan,” Mustazar said. “As an open economy, Malaysia is forced into trade and is very sensitive to these external shocks.” He warned that the 19% tariff, though lower than the threatened 25%, will still raise costs for Malaysian exporters, particularly in the semiconductor sector, a major export to the US. “Previously, many of these goods faced near-zero tariffs,” he said. “At 19%, they become more expensive, which affects competitiveness, pricing strategies and even currency movements.” Both economists highlighted that SMEs are likely to bear the brunt of the new trade barrier. Mustazar pointed out that SMEs already grapple with higher costs from minimum wage hikes, electricity tariffs and subsidy rationalisation, leaving little room to absorb additional trade-related expenses. “Inflation in imported raw materials will push up production costs,” he said. “SMEs