04/10/2025

BIZ & FINANCE SATURDAY | OCT 4, 2025

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MBSB: RM1.3b financing to propel Weststar expansion

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

SUBANG: MBSB Bhd and The Weststar Group have entered into a landmark memorandum of understanding (MoU) that marks a significant step forward for Malaysia’s aviation and aerospace sector. The collaboration is supported by five banks under a broader syndicated facility worth a total of RM4.8 billion, with MBSB Bank providing RM1.3 billion and MBSB Investment Bank Bhd (MBSB IB) acting as joint lead arranger, signalling its capability to deliver complex, innovative financial solutions. The financing facility will enable Weststar Aviation Services Sdn Bhd, a subsidiary of Weststar Group, to expand its operational capabilities by funding helicopter acquisitions, strengthening working capital, managing foreign exchange risks and broadening its service offerings to new markets. By combining MBSB’s financing expertise with Weststar’s established leadership in aviation services, the partnership positions Malaysia to accelerate its ambition of becoming a leading regional aviation hub. MBSB chairman Datuk Wan Kamaruzaman Wan Ahmad said the partnership reflected the group’s strategic commitment to high-impact, future-focused industries. “Aerospace and aviation are no longer niche. They are growth multipliers that link Malaysia to global supply chains, energy corridors and future industries. By financing Weststar’s expansion, MBSB is investing in Malaysia’s competitiveness, positioning the country to lead in sectors that matter most for tomorrow’s economy,” he said at the MoU signing ceremony yesterday. Wan Kamaruzaman disclosed that MBSB has allocated RM5.7 billion for transportation, including aerospace, underscoring confidence in the sector’s long-term potential. Weststar Group managing director Tan Sri Dr Syed Azman Syed Ibrahim said the financing marked a turning point for the group as it expands beyond its core offshore helicopter transportation services for oil and gas clients. “This is the first time we are moving from offshore helicopter transportation to leasing helicopters to various agencies. With this

“The cost of a simulator can exceed RM200 million, even more than the aircraft itself. Currently, pilots must queue for months to secure training slots in Europe. By developing this centre in Malacca, we can attract pilots from Japan, Korea, China, Europe and Southeast Asia, creating 1,000 high-paying jobs locally,” he said. The centre would include maintenance, repair and overhaul operations for the region, reinforcing Malaysia’s status in the global aviation ecosystem. For MBSB, the partnership is not only about financing one company’s growth, but also about aligning with national economic priorities. “This is the first facility we have approved that exceeds RM1 billion, and it reflects Weststar’s strong track record,” said Wan Kamaruzaman. “We see this as part of our role in supporting Malaysia’s transition into a high income economy through innovation, job creation and regional leadership.” Both corporate leaders stressed that the partnership goes beyond aviation – it sets a framework for future collaborations in sectors such as defence, renewable energy and infrastructure, which are seen as critical to Malaysia’s long-term competitiveness. The aviation industry in Asia is experiencing strong growth, driven by rising energy transition projects, increasing offshore demand and the strategic importance of regional connectivity. With this alliance, Weststar aims to expand its reach both locally and globally, while MBSB positions itself as a key financial enabler of Malaysia’s future industries. “Together with MBSB, we are confident of building sustainable value for our stakeholders, supporting national priorities, and positioning Weststar as a key driver of future growth industries,” Syed Azman said.

o Company moving beyond core offshore helicopter transport services for oil and gas clients

From left: National Aerospace Defence Industries Sdn Bhd (Nadi) president Datuk Edron Hayata Ahmad, Syed Azman, Weststar Group director Syed Muhammad Azni Syed Azman, MBSB Group CEO Rafe Haneef, Wan Kamaruzaman and Nadi Group chairman Tan Sri Ahmad Johan at the MBSB-Weststar MoU signing ceremony.

just read a book. You need practical training with proper equipment and simulators. “We have provided grants, including RM1 million to Universiti Putra Malaysia, and we guarantee jobs upon graduation. This is how we are building the next generation of talent,” Syed Azman said. Syed Azman detailed plans for a major aviation training and maintenance hub in Malacca, centred at Batu Berendam Airport in partnership with Italy’s Leonardo Aircraft. The facility will host the latest simulator training centre, one of only three of its kind in the world, to cater to pilots across Asia.

investment, we have created an additional 600 jobs, particularly engineers and technicians,” he said. Syed Azman highlighted the challenge of a talent shortage in the country, particularly in helicopter engineering. Unlike fixed-wing engineering, which has a steady pipeline of graduates, helicopter specialists remain scarce. To address this, Weststar has been working with local universities by funding equipment, offering scholarships and guaranteeing employment for graduates. “To train an aviation engineer, you cannot

Budget 2026 to reinforce govt pledge to strengthen fiscal space: Investment bank

Malakoff signs 30-year solar power supply deal in Sarawak PETALING JAYA: Malakoff

KUALA LUMPUR: Budget 2026 will reinforce the government’s commit ment to strengthening fiscal space, MBSB Investment Bank Bhd (MBSB IB) said yesterday. In a research note, the investment bank highlighted that since 2021, the fiscal deficit has narrowed by more than 2% of gross domestic product (GDP), providing greater room to introduce counter cyclical stimulus measures during future downturns. MBSB IB estimated that the government might allocate slightly more for Budget 2026, which will be tabled in Parliament on Oct 10, at around RM430 billion compared to RM421 billion in Budget 2025. “We estimate the size of fiscal deficit will decrease to RM78 billion in 2026, pushing down the deficit to-GDP ratio to -3.6% against a forecast of -3.8% in 2025, assuming that economic growth remains moderate at 4.0-4.5$,” the bank said. MBSB IB said the fiscal strategy in the forthcoming budget would focus on the expansion of current taxation, driven by the need to offset rising operating expenditure and the projected contraction in petroleum-related revenue for 2026. It noted that in the past four budget cycles, policymakers had pursued revenue increases by either introducing new progressive tax

Corporation Bhd has taken another major step in expanding its re newable energy (RE) portfolio with the signing of a long-term agree ment to deliver clean power in Sarawak. Its 70%-owned subsidiary, Malakoff Evergreen Sdn Bhd, has entered into a 30-year power purchase agreement (PPA) with Sarawak Energy, through its operations arm Syarikat Sesco Bhd, marking an important milestone in Malaysia’s transition to a low carbon future. Under the agreement, Malakoff Evergreen will develop and operate a 100MW solar photovoltaic facility in Bintulu, Sarawak. Once completed, the plant will strengthen Sarawak’s RE supply while supporting Malaysia’s broader ambition to accelerate its energy transition and ensure long term energy security. These initiatives are aligned with Sarawak’s Energy Transition Policy and its target of achieving 10GW of generation capacity by 2030, with renewables forming a major share of the energy mix, positioning the state as the “Battery of Asean”. Malakoff Evergreen is a special purpose company formed by Tuah Utama Sdn Bhd, a wholly owned subsidiary of Malakoff, which holds 70% equity, and EE Solar Sdn Bhd

which holds the remaining 30% interest. The facility is scheduled to begin operations by May 1, 2028. Over the 30-year term of the PPA, the net energy produced will be delivered to Sesco, ensuring a steady contribution of renewable power to the grid. Malakoff group CEO Syah runizam Samsudin said the signing marks another important step in Malakoff’s RE journey. He added: “2025 has already been a meaningful year for us. With the recent award of the 470MW LSS5+ solar project and the planned 100MW facility in Bintulu, our RE capacity now stands at 768MW. “This expansion marks a major step forward in our portfolio and a tangible contribution to Malaysia’s clean energy transition – equivalent to avoiding 11.1 million tCO2e annually, or the same as a carbon sequestration of 18.3 million mature trees. “Beyond expanding capacity, it reflects our alignment with the nation’s long-term transition goals and reinforces energy security for the future,” Syahrunizam said.

“Despite the stability, there is, however, downside bias to the 2026 oil price forecast, partly due to potential oversupply in the global oil market. On top of that, we expect Petronas’ dividend to the Malaysian government to be reduced further for 2026 from an estimated RM32 billion in 2024 and 2025, res pectively,” it said. The bank pointed out that challenges faced by Petronas, parti cularly over control and revenue sharing of resources in Sarawak, could affect its capacity to pay dividends. Adding to the pressure, it noted that the outlook suggests cuts in other petroleum-linked earnings next year, specifically revenue from oil royalties and the Petroleum Income Tax. “Weaker global demand and tighter trade rules could continue to constrain the mining sector’s export outlook. The decline in petroleum exports, for example, has been weighing down on Malaysia’s external trade performance this year,” MBSB IB added. – Bernama

ation schemes or by extending the coverage of existing direct and indirect tax regimes. “This strategy directly supports the fiscal objectives codified under the Fiscal Responsibility Act. We think that the government may consider announcing a new tax or expanding current tax measures to increase revenue,” MBSB IB said. Possible measures under Budget 2026 include higher personal income tax for the high-income bracket, further expansion of the Sales and Services Tax, the expiry of import and excise duty exemptions for completely built-up electric vehicles, as well as subsidy targeting and rationalisation. MBSB IB noted that petroleum linked fiscal revenue would depend on oil price movements and expects Petroliam Nasional Bhd’s (Petronas) dividend to the government could be further reduced in 2026. Based on its in-house assumption, Brent crude oil prices are expected to remain stable, averaging between US$65 and US$70 (RM274 and RM295) per barrel in 2026.