29/09/2025

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MONDAY | SEPT 29, 2025

Greater clarity needed on local digital investment front o Investors show interest in asset class but many in the dark over regulations and tax treatment, or simply do not know how to proceed: Luno Malaysia country manager

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia’s institutional investors are eyeing digital assets such as cryptocurrencies, but are holding back until regulators provide clearer rules before committing their investments. Luno Malaysia country manager Scarlett Chai ( pic ) said the crypto investment platform has yet to see the participation of major institutions such as the Employees Provident Fund or Khazanah Nasional Bhd, unlike what is already happening overseas. “While they are beginning to show interest, the key question remains around the ‘how’,” she told SunBiz . For Luno, the Malaysian user managers are fielding interest from clients who want exposure to digital assets but remain unsure how to proceed. There are still significant knowledge gaps – many simply don’t know. What they may need is a clear checklist or structured guidance to help them get started,” she said. The hesitation, she ex plained, arises from uncertainty around regulatory requirements and tax. “They need greater clarity – if regulation applies, how it will be implemented; if tax applies, how it will be treated – because professional advice is essential,” she said. base remains predominantly retail with an estimated mix of about 90% retail and 10% institutional. Chai noted that fund Executive chairman Ng Min Lin said XL Holdings is also working closely with research institutions to enhance its cultivation techniques, particularly in seaweed farming, which presents both commercial potential and environmental benefits. “Looking ahead, XL Holdings remains committed to identifying opportunities that align with its core business strengths and contribute meaningfully to its long-term growth strategy. “The group’s proactive approach reflects its commitment to innovation and strategic expansion within the agriculture and aqua culture sectors. The board remains optimistic about XL Holdings’ ability to scale operations and improve financial performance sustainably,“ Ng said in the company’s annual report filed with Bursa Malaysia. Notably, XL Holdings’ fish farming segment specialises in the breeding and trading of ornamental and tropical fish, with operations based in Batu Pahat, Johor. Its activities include the captive breeding of premium species. In addition to breeding, the segment supports the distribution and sale of aquaculture products, encompassing both its own stock and externally sourced aquatic species. Elaborating, Ng said XL Holdings’ sustain ability remains a cornerstone of its strategy. “We are committed to strengthening our ESG (environmental, social and governance) practices, including better monitoring of our environmental footprint and aligning with national sustainability goals. The group will also explore opportunities to leverage green incentives and collaborate on biodiversity conservation projects that support our

align product expansion and user experience enhancements with regulatory developments. “Revenue growth is certainly a key KPI for us, but our priority is to deliver what customers need.” The crypto investment platform has expanded its tradable list from three to 22 coins and continues to refine a mobile-first platform with security as a core principle. “Our customers have long asked for broader offerings, whether through additional coins or new features. We are fully digital-first, and our goal is to ensure the user journey is seamless,” Chai said. She added that any rollout in 2026 will strike a balance between innovation and user protection, as regulators consider further liberalisation. “A consultation paper is already under way, with regulators exploring how to ease certain processes. Our product launches will be carefully sequenced to remain in step with policy direction,” Chai said. The food segment remained the group’s core revenue contributor, generating RM80.7 million or 74% of total revenue in FY25, up from RM44.3 million or 62.7% in the previous year. The increase was driven by higher market demand for ready-to-eat and trading products across domestic and regional markets. The growing crop segment also continued its upward trajectory, contributing RM10.5 million or 9.6% of total revenue in FY25, compared to RM8.6 million or 12.2% in FY24. The improved performance reflects higher pineapple and sucker sales following better yields from maturing plantations under Ergobumi, the group’s agriculture unit. The merchandise segment, which was previously the second-largest contributor in FY24, recorded a slight decline in revenue to RM11.0 million in FY25, representing 10.1% of total revenue, down from RM13.1 million, or 18.6% in the prior year. The relative decrease in revenue share reflects the faster growth of other segments rather than a significant decline in mer chandise performance. In FY25, fish farming and other segments remained stable, with fish farming contributing RM5.6 million and other operations, including hatchery and seaweed trading, contributing RM1.3 million. The investment holding segment remained negligible. XL Holdings said these changes in revenue contribution reflect the stronger performance of specific segments during the year, parti cularly in food trading and agriculture. Moving on, the encouraging results high light the potential of these business units to contribute to the group’s overall profitability in the coming financial year, it noted.

Malaysia’s policy direction is encouraging, she added, with the government actively engaging on artificial intelligence and blockchain while drafting a framework to guide adoption. “Policymakers are working to embrace these technologies, to support and encourage organisations to drive greater innovation,” Chai noted. She highlighted that Malaysia’s strength in syariah governance distinguishes it within the region and could help institutions build confidence in adopting digital assets. “What sets us apart is our robust syariah compliance framework – it is a uniquely Malaysian strength,” Chai said, adding that Malaysia’s syariah scholars are actively working to align their expertise with this emerging asset class. “The focus is on how syariah principles can be applied, and ultimately moving the conversation beyond simple questions of compliance or permissibility.” For 2026, Chai said Luno Malaysia will

Chai noted that institutions can approach digital assets in two ways. The first is through portfolio exposure, a practice already common overseas, where large investors allocate varying portions of their investments to crypto. “There are multiple avenues for this – whether through platforms like Luno, licensed fund managers, or brokers,” she said. The second approach is

problem-solving, where block chain or DeFi (decentralised finance) is applied to enhance efficiency. She pointed to remittances and supply-chain traceability as examples. “Blockchain provides far greater transparency, while DeFi offers speed and efficiency – enabling faster transactions and unlocking new opportunities,” Chai said.

XL Holdings strengthens food, crop segments amid shift in revenue mix PETALING JAYA: XL Holdings Bhd will explore cost-effective feed alternatives in its hatchery operations and continue to adopt climate resilient farming practices to mitigate rising input costs. strong performance in the food and growing crop segments, with improved contributions from other business units.

XL Holdings says changes in revenue contribution reflect the stronger performance of specific segments during the year, particularly in food trading and agriculture.

As a result, the gross profit margin declined from 33% in FY24 to 24.1% in FY25. The group recorded a significant improvement in profit before tax, which increased by RM3.5 million or 50.4% to RM10.4 million in FY25, demonstrating operational resilience and efficiency. Net profit increased to RM9.8 million, up by 40.5% compared to RM7 million in the prior year. In FY25, the group’s revenue reached RM109.1 million, reflecting a substantial year on-year increase of RM38.6 million or 54.7%, compared to RM70.5 million in FY24. This robust growth was mainly driven by the

aquaculture activities.” On earnings, XL Holdings reported revenue of RM109.1 million for the financial year ended April 30, 2025 (FY25), an increase of RM38.6 million or 54.7% compared to RM70.5 million in FY24. The growth was primarily attributable to the strong performance in the food segment and continued contribution from the growing crop segment. Despite the increased revenue, gross profit (GP) rose at a more moderate pace of 13.2% to RM26.3 million, reflecting a shift in revenue mix and pressure on certain segment margins.