5/09/2025

BIZ & FINANCE FRIDAY | SEP T 5, 2025 15 Tropicana redeems

Weaker global growth ahead, says FMM

RM100 million Islamic bonds

PETALING JAYA: Tropicana Corporation Bhd reported that it has redeemed another tranche of the Sukuk Wakalah Programme worth RM100 million, which was due on Sept 3, 2025. The Company has also redeemed a tranche of RM123.5 million on June 30, 2025 under the Sukuk Wakalah Programme. The group said that it continues to deliver sustainable earnings backed by its RM2.1 billion unbilled sales, as well as gain market traction with its ongoing and new signature developments worth an estimated Gross Development Value (GDV) of RM6.5 billion across Malaysia. Tropicana’s balance sheet continues to strengthen, with gross gearing level reduced from 0.43 times as of Dec 31, 2024 to 0.42 times as of June 30, 2025. Tropicana will continue its growth trajectory with its ongoing initiatives to enhance sales performance, monetise its landbank and investment properties as well as optimise financial management. The management cited on the group’s focus and continued commitment, “In line with our mission to transform Tropicana into a future ready group with a strong purpose of sustainable growth, we have prioritised our core property segment, centred around our development DNA and ESG commitments”. “We have strategic divestment plans in place, and we will continue to roll out effective sales campaigns to drive growth. “We also want to take this opportunity to extend our sincere appreciation to our business partners who have been supportive to Tropicana.” Tropicana continues to gain traction in the market with its ongoing and new developments worth an estimated GDV of RM6.5 billion. Its current landbank stood at 1,336.1 acres, with a total potential GDV of RM168.4 billion. In addition, the recent appointment of world class architectural firm Skidmore, Owings & Merrill to lead the transformation of 163-acre LIDO will add more value, placing LIDO as its most prime piece of land in Johor. This strong land portfolio strategically positions the group to unlock significant value, drive growth and deliver sustainable performance in the next few years. Gamuda Land and Taylor’s to redevelop Subang Jaya site SUBANG JAYA: Gamuda Land, the property development arm of Gamuda Bhd, has entered into a synergistic collaboration with Taylor’s Assets, the property investment and asset management arm of Taylor’s Education Group, to redevelop a prime 2.88-acre freehold commercial site in SS15, Subang Jaya. This redevelopment is part of Taylor’s Assets’ initiative to strengthen its education real estate portfolio, with Gamuda Land invited as the development partner. With an estimated Gross Development Value of RM500 million, the redevelopment will introduce a vibrant mixed-use development comprising serviced apartments, purpose-built student accommodation (PBSA), and retail spaces to enhance SS15’s liveability and vibrancy. The project is targeted for completion in November 2029. Gamuda Land CEO Chu Wai Lune said while large-scale townships remain their foundation, select urban regeneration projects like SS15 allow them to contribute meaningfully to matured neighbourhoods through smart design, connectivity and integration. Taylor’s Education Group executive chairman Datuk Loy Teik Ngan said this project will add 401 bedrooms to the firm’s PBSA portfolio.

o Prospects for 2025 weighed down by trade tensions, slowing demand and policy uncertainties

“SMEs will face higher business costs from subsidy rationalisation, expanded SST, utility tariffs and rising wages. “Manufacturing is already slowing, from 4.1% growth in 1Q to 3.7% in 2Q. On the back of cost pressures, lower profit margins and reduced demand, FMM cautions that there are valid reasons to expect a weakening in the performance of the manufacturing sector, translating into weaker impetus to growth. Externally, uncertainties remain high. “While Malaysia secured a lower 19% US tariff, the direction of US trade policy remains unclear,” he added. He said global headwinds add to the challenge: slowing US growth with a 30–40% probability of recession, China’s forecast slipping to 4.2%, and global conflicts driving oil and transport costs higher. With the growth prospects of the US and China taken together, Soh added the promise of robust external demand for Malaysian export-oriented manufacturers, particularly the SMEs sector, is slightly muted. “Domestic demand should help cushion the slowdown. Higher minimum wages, targeted cash transfers and multi-year national projects will support consumption and investment.” FMM emphasises that policymakers must ensure careful implementation of reforms and fiscal measures to sustain investor confidence and resilience, he said. “We are of the view that the later part of 2025 will bring about challenges for the Malaysian economy, particularly for the SME sector, with lower growth in the later part of the year, thus entailing a whole year growth rate that is closer to the lower end of the official forecast,” Soh said.

KUALA economic prospects for 2025 are weighed down by trade tensions, slowing demand, and persistent policy uncertainties, Federation of Malaysian Manufacturing (FMM) president Tan Sri Soh Thian Lai said yesterday. He said that the IMF’s July 2025 World Economic Outlook projects global growth at 3.0%, down from 3.3% in 2024 and below the pre-pandemic average of 3.7%. “While this marks a modest upward revision from April’s 2.8% forecast, supported by stronger pre-tariff activity, fiscal stimulus and lower effective tariff rates, risks remain tilted to the downside. “The World Bank is more cautious, projecting world growth at 2.3%, the weakest since 2008 outside global recessions,” he said in a statement. He added nearly 70% of economies have seen downward revisions, underscoring the fragility of the recovery. Soh remarked that a modest improvement is expected only in 2026–27, with growth averaging 2.4–2.6%, with the slowdown led by advanced economies. He said US growth is projected at about 1.4%, nearly a full percentage point below earlier forecasts, as tariffs, trade frictions and financial volatility weigh on investment and consumption. The EU is expected to expand by just 1.1%, with the euro area at 0.9%, while Japan is forecast at 0.7%. China remains more resilient, supported by fiscal and monetary space, with growth around 4.5%, though revised down from 5%. Key risks include escalating trade wars, weaker business and consumer confidence, tightening financial conditions, and conflicts LUMPUR: Global industry must urgently diversify its export markets and not rely too heavily on traditional hubs, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin. He said there is a need to explore emerging markets where demand for sustainable, high-quality furniture is increasing and business ties are less exposed to geopolitical risks. “Strengthen your local foundation. Building solid partnerships with Malaysian buyers – from developers and retailers to designers – will provide the stability, agility and resilience our industry needs to withstand global challenges,” he said in his speech at the Malaysia Furniture Furnishings Market (MFFM) 2025 here yesterday. Chan said three megatrends would shape competitiveness in the furniture sector, namely sustainability and environmental, social and governance (ESG) practices, digital transformation, and innovation in design. He further said MFFM has quickly grown beyond a showcase to become Malaysia’s strategic nexus for furniture trade, with the dual mission of driving exporters into international markets while reinforcing the industry’s domestic foundations. “In today’s climate of tariffs, shifting supply chains, ESG compliance pressures and changing consumer lifestyles, this dual focus is not just advantageous but essential for survival and long-term growth,” he said. Endorsed by the Ministry of Plantation and

in the Middle East and Ukraine. Soh noted that these factors threaten supply chains and investment, though front loaded activity, lower tariff impacts and fiscal measures provide some cushion. Malaysia recorded 4.4% GDP growth in 2Q 2025, driven by services (5.1%), manufacturing (3.7%) and construction (12.1%). Private consumption was the main driver, supported by rising wages, government salary adjustments and a stronger labour market, with unemployment falling to 3%. Nominal wages rose 3.4% and real wages 2.1% year-on-year in the second quarter. Investment was robust, with gross fixed capital formation expanding 12.1%, up from 9.7% in 1Q. Domestic demand continued to anchor growth, while exports were less supportive. Inflationary pressures eased, with headline inflation falling to 1.3% in 2Q and the CPI down to 1.1% by June. Core inflation held steady at 1.8%. These figures reflect easing supply chain disruptions and lower commodity prices but mask ongoing cost-of-living concerns which would impact on consumer demand. Exports moderated compared to late 2024, but the ringgit strengthened by 5.1%, trading at RM4.22 to US$1 by mid-August. Foreign inflows, fiscal consolidation and reforms supported the currency, while investor confidence was boosted by initiatives such as the New Industrial Master Plan 2030, the National Energy Transition Roadmap, and the National Semiconductor Strategy. Soh said FMM projects Malaysia’s growth to moderate to 3.5%–3.6% in 2H 2025, reflecting domestic and external challenges.

Steady domestic demand, moderating inflation, a robust labour market and sound policy execution can provide the resilience needed to weather uncertainty and sustain growth in a fragile global recovery, he said. Furniture industry urged to diversify beyond traditional export hubs KUALA LUMPUR: Malaysia’s furniture

Chan (third from left) visiting the MFFM exhibition hall at the World Trade Centre Kuala Lumpur yesterday. – BERNAMAPIC

more than 50 countries. The exhibition features Malaysian manufacturers alongside participants from China and Japan, showcasing products ranging from home and office furniture to fittings and materials. – Bernama

Commodities, the Malaysian Timber Industry Board, the Malaysian Timber Council and the Malaysia External Trade Development Corporation, MFFM 2025, which runs from yesterday to Sept 6 in its second edition, has expanded with 70 exhibitors and buyers from