06/12/2025

BIZ & FINANCE SATURDAY | DEC 6, 2025

12

MGS, GII yields edge higher in tandem with global bond movements PETALING JAYA: Malaysian Government Securities (MGS) and Government Investment Issues (GII) yields tracked the upward drift in US Treasury (UST) yields, which was further heightened by hawkish remarks from Bank of Japan (BOJ) governor Kazuo Ueda, lifting Japanese bond yields and adding global upward pressure. month high driven by stronger new orders. “Foreign interest also continued to build, with nearly RM4b flowing into government bonds in November. confidence and lift demand for local bonds. On the global front, markets remain positioned for a Fed rate cut next week, which could pull domestic yields lower,“ the firm said.

away from Treasuries and adding further upward pressure. “These factors outweighed speculation that Kevin Hassett could replace Powell as Fed chair, a development that would imply a more dovish Fed,“ Kenanga said. On the outlook, Kenanga said UST yields may drift lower next week as markets remain firmly positioned for a rate cut. “Investors will focus on the core PCE release and upcoming JOLTS job-openings data for signs of labour-market momentum. Speculation that Kevin Hassett could replace Powell as Fed chair adds a dovish tilt to sentiment and reinforces the downside bias for yields,“ it said. Merchantrade receives Sabah green light for digital wage payments PETALING JAYA: Merchantrade Asia Sdn Bhd, an e-wallet and money services business operator, is now an approved issuer of a designated payment instrument (DPI) in Sabah. This significant approval, formalised by the Minister of Human Resources under the Labour Ordinance of Sabah, complements Merchantrade’s existing approval for Peninsular Malaysia since Aug 1, 2024. This new mandate for Sabah, effective Dec 1, 2025, allows employers in the state to utilise Merchantrade’s innovative solutions, such as their payroll portal and Merchantrade Money e-wallet, to manage wage payments for their foreign employees in full compliance with Malaysian labour laws. Founder and managing director Ramasamy K Veeran said this authorisation for Sabah is a monumental step, strengthening Merchantrade as a leading service provider, driving the digital wage revolution, and supporting inclusive solutions, equipped with the right ecosystem of physical touchpoints to deliver our transformative solution seamlessly across Sabah. Recognising the challenges employers face in managing traditional payroll for foreign workers, Merchantrade provides a one-stop solution for both employers and employees within an integrated ecosystem. The Sabah approval is particularly critical given the state’s vast geographic and economic structure. Sabah spans 7.4 million hectares, with about 1.7 million consisting of plantations, presenting a real logistical challenge. Due to Sabah’s magnitude, both workers and employers traditionally rely on cash for salary disbursement; workers often travel long distances to open a bank account, so most employers, in turn, choose to use cash. This poses a significant security risk for both parties. The Merchantrade e-wallet is the digital answer, enabling direct salary disburse ments, instant remittances and improved security for everyday transactions. Additionally, workers can still access cash via ATMs using their paired Visa cards, ensuring flexibility and inclusiveness. The transition to digital wages brings transparency to wage payments, coupled with Merchantrade’s close collaboration with the Social Security Organisation to deliver social security protection payments directly to employees, ensuring faster, better financial transparency. The Merchantrade Money e-wallet is a robust suite of features, including remit tances, mobile top-ups, micro-insurance, and QR payments, catering specifically to the needs of the unbanked and migrant worker community.

Touching on US Treasuries, Kenanga said yields rose across the curve, between 4.8 and 11.4 bps. The 10-year rose 10.4 bps to 4.098%, while the two-year increased 4.8 bps to 3.523%. The firm said UST yields climbed despite the negative ADP jobs print, which strengthened expectations for a December rate cut. “Investors see little incentive to push yields below the 4.000% level, but they are also reluctant to drive them meaningfully higher. Hawkish guidance from BOJ’s Ueda lifted JGB yields higher, prompting portfolio rebalancing

“Bilateral developments lifted sentiment, including China’s signal of deeper trade and investment cooperation through a proposed MoU, and the completion of arrangements for co-located immigration facilities under the Johor Bahru–Singapore RTS Link,“ the firm said in a note. On outlook, Kenanga said Malaysia’s resilient macro backdrop should continue to anchor yields, with upcoming labour, IPI, and retail data as key catalysts to watch. “Stronger prints may support investor

MGS and GII moved higher by between -0.4 and 4.6 basis points (bps), with the 10-Y MGS adding 3.1 bps to 3.482%, while the 10-Y GII increased 1.5 bps to 3.529%. Kenanga Investment Bank Bhd said the rise in domestic yields stayed modest, supported by steady onshore demand. November’s PMI climbed to 50.1, an 18

AirAsia X eyes new markets, second-tier cities on its radar o Low-cost, long-haul carrier sees strong future potential in Central Asia and Europe

and the return flight at nearly 89%. Acknowledging the higher fuel consumption required for long haul operations, Benyamin said cost management goes beyond fuel pricing, noting that it is not just fuel, but the entire operation. “In terms of ground handling, finding the right partners, airports, we give good commercial agreements. All play a part. But in terms of fuel, I think fuel prices are relatively similar anywhere, so even on longer routes, we remain confident in offering affordable fares,” Benyamin said.

ISTANBUL: AirAsia X Bhd (AAX) aims to strengthen its global footprint by tapping into new markets, expanding its fleet, and exploring second-tier cities next year as international travel demand continues to climb. Its CEO, Benyamin Ismail ( pic ), said Istanbul, which ranked fourth among the world’s most visited cities, plays a strategic role in the airline’s network expansion plans. “Our focus for the next two years is to expand into second-tier cities within the four- to five-hour range, where wide-body aircraft are not required. Central Asia remains a key market, with Europe next in line,” he told Bernama in a recent interview. Benyamin said these two regions are “where we see strong future potential,” adding that the airline’s measured approach is designed to ensure sustainable growth. As global aviation continues its steady KUALA LUMPUR: MBSB Investment Bank Bhd has maintained a “buy” rating on MR DIY Group (M) Bhd, citing the retailer’s dominant scale, predictable growth, and structural cost and margin advantages that support steady earnings expansion. The research note highlighted that the group’s multi-format strategy reinforces its market leadership in Malaysia’s fragmented home-improvement and value retail sectors. “Structural tailwinds, including continued downtrading, rising lifestyle retail penetration, and automation-driven cost efficiencies, underpin the long-term sustainability of the group’s margins and returns,” MBSB said. MBSB said MR DIY’s core profit after tax and non-controlling interests is projected to rise to RM621.4 million in financial year 2025 (FY25), RM692.6 million in FY26, and RM751 million in FY27, implying annual growth of 9.6%, 11.5%, and 8.4% year-on-year, respectively. It said MR DIY’s earnings momentum is expected to be driven by the rollout of 185 new stores in FY25 and 155 in FY26, while gross margin support from private-label penetration and favourable sourcing dynamics will also sustain profits. Capital expenditure is forecast to rise modestly in FY25–26, reflecting the final phase of the warehouse expansion and continued rollout of new store formats.

recovery, Benyamin said AAX is well-positioned to capture emerging demand, strengthen east–west travel links, and grow responsibly across its network. “With our network of 130 destinations, we believe we have a lot to offer. At the same time, connectivity into Asia from this region remains limited. Our presence here opens opportunities for

Reflecting on the airline’s performance this year, he said AAX has surpassed its targets, driven by higher load factors and a strong rebound in passenger volume. “We have exceeded last year’s results. Load factors have improved, and the number of passengers carried has also increased. Our growth strategy is measured not too aggressively to ensure we expand at the right pace,” he added.

travellers from Turkiye to explore Malaysia, Southeast Asia, Asean and the wider Asia Pacific,” he added. On Nov 14, AAX made its inaugural flight to Istanbul, Turkiye, recording strong demand in both directions, with the outbound Kuala Lumpur flight operating at 81 per cent capacity

MBSB Investment maintains ‘buy’ rating for MR DIY

MBSB Investment Bank says Mr DIY is well positioned to maintain generous dividends without constraining growth investments. – MR DIY PIC

ratios are expected to normalise but remain elevated. “With operating cash flow consistently outpacing capex, Mr DIY is well positioned to maintain generous dividends without cons training growth investments in automation, store expansion, or new formats,” MBSB added. – Bernama

On dividends, the group aims to distribute 50–65% of earnings, though actual payouts have consistently exceeded this range. In the first half of FY25, 82.5% of profit after tax was paid out, with the second-quarter dividend alone representing an 89.6% payout ratio. “Dividend yields are forecast at 3.5% in FY25, 3.6% in FY26, and 4.1% in FY27, while payout