22/08/2025

BIZ & FINANCE FRIDAY | AUG 22, 2025

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TSH Resources H1’25 earnings beat expectations: Berjaya Research PETALING JAYA: TSH Resources Bhd’s first-half 2025 revenue aligned with Berjaya Research Sdn Bhd’s expectations, but earnings came in stronger than anticipated, making up 72.5% of the research firm’s prior 2025 core Patami (profit after tax and minority interests) forecast. Q1 of 2025. Nevertheless, core Patami rose 4.5% to RM44.8 million from RM42.8 million, supported by a lower effective tax rate. Year-on-year, TSH Resources’ Berjaya Research has revised its 2025 and 2026 Patami forecasts upwards by 35% and 34%, respectively, to reflect higher average selling prices for CPO and PK. “Consequently, we maintain

Berjaya Research expects CPO prices to remain firm above RM4,000 per tonne for the rest of the year, supported by tighter supply from Indonesia, sustained biodiesel demand and stable import needs from key markets such as India and China, with India’s recent cut in CPO import duties likely to further boost offtake. However, any near-term upside may be capped as Malaysia’s palm oil inventory remains elevated above two million tonnes, reflecting slower drawdowns. For TSH Resources, ongoing replanting is expected to enhance FFB yields over the next three years, while its planted area is projected to expand to about 50,000 hectares, positioning the group for steady production growth and stronger economies of scale in the medium term, the research firm said. Any rise in minimum delivery fee could hurt small sellers, says association PETALING JAYA: The Malaysian Micro Businesses Association (Mamba) has voiced concern over growing discussions around the intro duction of a standard mini mum delivery fee, warning that such a move could significantly reduce online shopping activity and negatively impact local micro entrepreneurs and the broader digital economy. This follows a nationwide survey conducted by Mamba involving 720 online consumers, which revealed that an overwhelming 89.3% of respondents do not support the introduction of a higher standard minimum delivery fee, with the majority preferring the lowest possible shipping cost regardless of courier brand. The survey also found that 93.5% of respondents would likely reduce or stop online shopping if shipping prices were increased. Additionally, 59% said they would buy less if a minimum delivery price were set. Commenting on the survey results, Mamba secretary-general Alvin Low Wei Yan ( pic ) said these findings confirm what the association’s small sellers have been saying for months – that any increase in delivery charges risks putting the brakes on Malaysia’s vibrant e-commerce sector. “We must avoid a situation where a well meaning policy inadvertently sidelines the very micro-entrepreneurs the government is trying to uplift through the 13th Malaysia Plan,” he said. Mamba emphasised that maintaining affordable and flexible delivery options is central to achieving these outcomes. “When shipping costs go up, the first to be affected are price-sensitive consumers and the small online sellers who rely on them. This directly undermines digital participation and income growth among micro and boutique sellers; the very groups the 13th Malaysia Plan aims to support,” Low said. The survey also found that 80.6% of consumers prefer the lowest possible shipping cost, 82.9% do not have a preferred courier and are only concerned about shipping prices, 55.3% find current shipping prices reasonable, and about 92.8% would not pay extra for better and faster courier service. Mamba is calling for engagement with industry stakeholders to ensure any delivery pricing reforms are equitable, data-driven, and do not create unnecessary barriers for small sellers or their customers.

our’ Buy’ recommendation on TSH Resources with a revised target price of RM1.37, supported by its strong fundamentals and growth potential, while noting that further upside could come from new plantings, improved gearing, and recovery in other segments, though risks remain from weaker palm oil demand,

revenue rose 6.4% to RM268.8 million from RM252.5 million, driven by a higher average selling price of palm kernel (PK) at RM3,315 per tonne and increased sales of both CPO (+5%) and PK (+3%). However, core Patami, excluding unrealised foreign exchange and fair value

The research firm said the key deviation on the bottom line was mainly due to better contributions from the palm products segment, lower finance costs and stronger contributions from its associate and joint ventures. On a quarter-on-quarter comparison, TSH Resources’ revenue fell 2.4% to RM268.8 million from RM275.3 million, weighed down by a 21.8% drop in fresh fruit bunch (FFB) production due to seasonal factors and a decline in the average selling price for crude palm oil (CPO) to RM3,695 per tonne from RM4,193 per tonne in

rising production costs, weather conditions, and tax policy changes,” Berjaya Research said in a note.

adjustments on biological assets, declined 4.5% to RM44.8 million from RM46.9 million, mainly due to higher losses from the wood segment.

Remain steadfast on ESG, Asean businesses told

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

o Sustainability central to competitiveness, resilience and long-term growth, say leaders

KUALA LUMPUR: Asean businesses must remain steadfast in their commitment to environmental, social and governance (ESG) principles despite growing global scepticism, regional leaders said, warning that sustain ability is now central to competitiveness, resilience and long-term growth. Asean Economic Club chairman and KSI Strategic Institute for Asia Pacific president Tan Sri Michael Yeoh said businesses must not be swayed by political resistance abroad. “Amidst growing global uncertainty and doubts about the future of ESG with (US) President (Donald) Trump’s pushback, the future of ESG remains relevant and essential to save the planet and transition to a greener world and the green economy,” he said at the Asean ESG Leadership Forum 2025 yesterday. Asean must remain resolute in aligning ESG adoption with the United Nations Sustainable Development Goals (SDGs) while ensuring that small and medium enterprises are supported in their transition, Yeoh said. He also stressed that the effects of climate change are no longer distant threats. “Global warming is no longer just a theory but is real and impacting the world. Plastic pollution is a significant threat to our environ ment and health. We need to focus more on the circular economy and promote the three Rs (reduce, reuse, recycle),” Yeoh added. ESG Association of Malaysia president Prof Cheah Kok Hoong said ESG has become indispensable for companies of all sizes and is no longer a “peripheral agenda”. “ESG is central to competitiveness, risk management and reputation in a connected global economy,” he said. “For SMEs, ESG is both an enabler and a lifeline, allowing them to enhance resilience, build trust with stakeholders and align with global supply chains that increasingly demand sustainable practices.” Cheah said Asean’s diversity could be its greatest strength if countries collaborate to share knowledge, establish interoperable standards and accelerate ESG adoption across borders. He highlighted Malaysia’s recent progress in policy alignment through the National Sustainability Reporting Framework (NSRF), which is designed to match international benchmarks set by the International Sustainability Standards Board (ISSB). “By aligning with the NSRF and ISSB standards, Malaysia signals to global investors

Yeoh, in his speech, said Asean businesses must not be swayed by political resistance abroad.

The one-day forum featured plenary sessions addressing the integration of ESG into corporate strategy, scaling up imple mentation for SMEs, and climate action. Speakers from Bursa Malaysia, Alliance Bank, EY Malaysia, SME Association of Malaysia and other regional organisations emphasised that sustainable finance, circular economy models and carbon credit oppor tunities are critical instruments for building long-term economic resilience across Asean. In her keynote address, Datuk Seri Rohani Abdul Karim, adviser to the Society for Promotion of SDGs and former minister of women, family and community development, insisted that ESG must be rooted not only within corporate strategies but also embedded in social policies. She argued that inclusive growth and family well-being are fundamental to sustainable development, warning that without strong communities, economic gains remain fragile. In his closing remarks, Yeoh rallied delegates with a call to collective action. “Together, let us strive to create a better, cleaner and greener Malaysia and the world,” he said.

and partners that our companies are serious about transparency and credibility,” Cheah said. “ESG is no longer about whether we should act, but how fast and how effectively we can act.” Cheah also introduced ESGAMConnect, Malaysia’s first artificial intelligence-powered ESG digital ecosystem, launched in June, which aims to help SMEs identify priorities, access sector-relevant guidance, and connect with verified partners. The platform, developed in collaboration with iForte and supported by agencies such as Malaysia Digital Economy Corporation and the SME Association of Malaysia, features integrated modules covering learning, re porting, accreditation, financing, and carbon credits. Cheah said the initiative is designed to make sustainability knowledge and resources more accessible, actionable and scalable for businesses of all sizes. He warned, however, that technology must be deployed responsibly. “Our responsibility is to ensure that digital transformation advances inclusivity, accountability and long term resilience, not greenwashing,” he said.