11/08/2025

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MONDAY | AUG 11, 2025

Turning youth into savvy investors o CGS breaks down barriers, simplifies and demystifies process for young Malaysians to enter capital market with confidence

and competing financial priorities as key hurdles,” Khairi said. “Many young people believe investing requires large sums, don’t know how or where to begin, and are focused on debt repayment or emer gency savings due to the rising cost of living.” According to Bursa Malaysia’s Malaysian Retail Investor Insights 2023, retail investors allocate just 8.4% of their income to investments. While the 18–34 age group accounts for 28% of active retail investors, they contribute only 14% of total retail traded value, underscoring the gap between interest and participation. To address this, CGS International launched a six-month student am bassador programme with local universities and the Annual Asean Investment Challenge, which uses gamification to build financial literacy and investor confidence. On April 8, the firm introduced fractional share trading on Bursa Malaysia via the UP App, allowing Malaysians to invest in top FBM KLCI stocks from as little as RM1. “We frequently hear from students and fresh graduates who say, ‘I want to invest, but I don’t know how.’ Our data supports this – 83% of new UP App users had little to no prior experience and were unfamiliar with basic terms like dividend yield or dollar-cost averaging,” Khairi said. “This reflects the need for the industry to simplify and demystify investing.” As part of its onboarding process, the app asks users about their invest ment goals – capital growth, income,

short-term gains or long-term stability – to provide tailored support based on their risk appetite. Through tools such as fractional trading, CGS aims to offer both access and education, helping users gain real exposure with minimal risk and build capability over time. Looking ahead, Khairi said CGS International is optimistic about the continued growth of retail investing in Malaysia, driven by digital adop tion, improved financial awareness and increased comfort with small scale investing. “But it’s not just about growing account numbers. We’re committed to nurturing a generation of con fident, informed investors. Soon, users will be able to invest fractionally in US tech giants and blue-chip stocks through the UP App, with a simple onboarding process in cluding US regulatory checks such as the W-8BEN form.” He said a syariah-compliant version of the app is in development and is expected to launch next year. “This will offer faith-aligned investment options and support Malaysia’s leadership in Islamic finance, in line with the Madani government’s inclusivity goals. At the same time, initiatives like the Asean Investment Challenge continue to serve as a vital talent pipeline by introducing students to investing early,” Khairi said. “By combining education with accessible technology, we’re working to close the financial literacy gap and empower Malaysians to become long-term investors,” he added. inventory levels, helping to control holding costs, prevent storage con straints and ease cash flow pressure. On the marketing front, Teo said not many industry players can produce catalogues as frequently as Topmix due to high production costs. “We release new, trend-driven cata logues once every two years, keeping our brand relevant and aligned with the latest design trends.” On foreign exchange strategy, Teo said the company adopts a prudent hedging approach to minimise exposure. “We closely monitor currency fluctuations and use forward con tracts to mitigate risks from foreign currency movements.” He added, “Rising input costs are unavoidable due to global raw material fluctuations and supply chain pressures. While we strive to manage costs efficiently, with only minimal price adjustments, some increases are reflected in our pricing to ensure continued product quality and service standards.” Teo said the company works closely with five major original equipment manufacturer suppliers under exclusive arrangements for its HPL products. “In the event of any disruption with our current suppliers, we can switch to alternative manu facturers with minimal impact.”

Khairy says CGS Malaysia has identified affordability, limited financial literacy and competing financial priorities as key hurdles.

Ű BY JOHN GILBERT sunbiz@thesundaily.com

or highly educated, low disposable income among youth juggling loans and living costs and a lack of platforms designed with younger, tech-savvy users in mind. “CGS International quantifies these challenges through behavioural data and engagement metrics. Since launching our user-centric UP App, we’ve seen a sharp rise in account openings from those aged 18 to 35, along with higher participation at universities, career fairs and invest ment expos – especially in beginner friendly products,” Khairi told SunBiz . He cited a 2022 Securities Commission Malaysia survey that reaffirmed a common concern among young Malaysians – they want to invest but feel discouraged by the high cost of entry. The requirement to buy a minimum board lot of 100 shares makes blue-chip stocks in indices such as the FBM KLCI and the FBM Emas inaccessible to many. As of July 9, share prices for companies such as Mr DIY, Axiata and Nestle ranged from RM1.67 to over RM78 per share. This has led many retail investors to turn to penny stocks – those priced under 50 sen – as a more affordable entry point, particularly during periods of market volatility. “At CGS Malaysia, we’ve identified affordability, limited financial literacy revenue and profitability. For Q1’25 ended March 31, 2025, its net profit more than doubled to RM3.09 million from RM1.27 million in the same period last year, supported by improved gross profit margins from favourable foreign exchange movements. Topmix recorded revenue of RM22.07 million, up 14% from RM19.36 million a year earlier, driven by strong sales of high pressure laminate (HPL) products and a surge in PVC plywood and melamine-faced chipboard sales. However, on a quarter-on

KUALA LUMPUR: Malaysian youth are showing growing interest in securing their financial future through investing. However, despite

this rising curiosity, many first-time and younger investors continue to face significant barriers to entering the capital market. For CGS Inter national Secu rities Malaysia Sdn Bhd, tack ling these chal lenges goes be yond providing access – it is about driving long-term value through inclu sive financial empowerment. According to CGS International deputy CEO Khairi Shahrin Arief Baki, three key barriers persist – the per ception that investing is only for the wealthy

Topmix expects demand for decorative surface products to stay resilient

He stressed its second-half results tend to be stronger, but the strategy is not limited to just certain quarters. “What we have is a long-term approach that is exe

Looking at the year, Teo said the company maintains a cautious optimism in the business as on-going demand for space refurbishment driven by homeowners and busi nesses will continue to provide a platform for growth. He noted that economic down turns do not usually hit TopMix as hard as they do property or con struction sector, which fluctuate with economic cycles. “Our renovation sector maintains constant demand because people will still need to maintain and upgrade their spaces, whether it is home owners or businesses who need rebranding.” While some businesses may move out, Teo said, the new tenant comes in and renovates the space to their requirements. “This on-going cycle ensures consistent demand for our premium decorative surface solutions materials. In many ways, when the economy slows, we often see more renovation activity as customers choose to renovate rather than relocate or invest in new premises.” Topmix experienced a sequential decline in sales and gross profit in the first quarter of 2025 (Q1’25) despite strong year-on-year growth in

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Topmix Bhd expects demand for its decorative surface products to remain resilient on the back of steady renovation activity in the residential and commercial segments, said CEO Teo Quek Siang. On the commercial front, with retail and hospitality spaces seeing more customers and positive momentum, the company expects increased renovation projects, driving demand for its decorative surface solutions. “As a renovation industry player, we enjoy a unique position because spaces or premises constantly need refreshing,”Teo told SunBiz . He said the government’s recent support measures, such as the RM100 cash aid and temporary RON95 fuel price cuts that are intended to ease the cost of living and stimulate consumer spending, will offer modest boost to demand. “As a business in the home improvement and renovation in dustry, we expect these initiatives to offer a modest boost to demand, particularly among cost-conscious homeowners.”

cuted and imple mented consist ently.” Operationally, he said, Topmix uses historical sales data to accurately forecast demand and optimise

quarter basis, revenue fell 19% from RM27.33 million in Q4’24 and net profit declined 27% from RM4.25 million, reflecting the seasonal slowdown in renovation activity during festive periods. Teo said Topmix fully acknowledges that business activity tends to slow during festive seasons. “While this is inevitable, we have structured our approach to ensure con sistent performance year round.”

Teo says demand for space refurbishment will continue to provide a platform for growth.