09/12/2025

BIZ & FINANCE TUESDAY | DEC 9, 2025

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Rubber and rubber-based exports top RM33b annually

‘MSPO cert can be

KUALA LUMPUR: The Malaysian Sustainable Palm Oil (MSPO) certi ficate of a company found to be non compliant, such as through encroach ment or violation of land rights, including Native Customary Rights (NCR) land, can be suspended or revoked until the issue is resolved. Deputy Plantation and Com modities Minister Datuk Chan Foong Hin said the action of accredited certification bodies in suspending certificates is in line with MSPO 2022 requirements. He emphasised that conflicts should be resolved through nego tiations with the state government or in court. “MSPO requires lawful land ownership and land free of disputes, as specified in Criteria 3.3 and 3.4 of MSPO 2022,” he said. Chan explained that two things are happening during an official dispute; firstly, an audit may be unable to fully verify compliance, particularly indi cators related to legal ownership and community rights. “Secondly, the reputational risk rises if MSPO is seen to be certifying a company involved in a land dispute,” he told the Dewan Negara at a question and-answer session yesterday. The deputy minister was res ponding to Senator Abun Sui Anyit regarding efforts to increase MSPO certification for Sarawak’s palm oil for export markets and whether MSPO certification also takes into account encroachment or complaints related to rights violations, including NCR, within the country. Chan said MSPO 2.0, which took effect on Jan 1, 2025, emphasises the auditing process by certification bodies accredited by the Department of Standards Malaysia and requires operators to demonstrate the status and evidence of lawful land owner ship, including NCR land recognised under state law. “In this context, MSPO has issued the Specific Guidance Document on MS2530:2022 Compliance of New Oil Palm Planting for Sarawak NCR land, developed in consultation with state government representatives, com munity stakeholders and palm oil industry players in Sarawak. “This document provides clear guidance to NCR landowners on documentation processes, community verification and compliance steps to obtain MSPO certification,” he said. Chan said MSPO 2.0 also emphasises the need to obtain consent, engage and consult with local communities, conduct social impact assessments and high conservation value assessments, and provide complaint and dispute-resolution mechanisms through the e-MSPO system, which is open to all stakeholders. “The government, through the Ministry of Plantation and Commodities and its agencies, remains committed to increasing the rate of MSPO certification nationwide, including in Sarawak, to ensure the country’s palm oil remains competitive and accepted in international markets,” he added. – Bernama revoked if land rights are violated’

o Strong downstream and processing technologies enable Malaysia to maintain high-value shipments: Johari

KUALA LUMPUR: Malaysia exports more than RM33 billion worth of rubber and rubber-based products annually, driven by research and development (R&D) technologies developed by the Malaysian Rubber Board (MRB). Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that although Malaysia currently imports an average of RM7.5 billion worth of natural rubber each year due to domestic production shortfalls, strong down stream and processing technologies have enabled the country to maintain high-value exports. “If you look at the plantations, Malaysia has 1.1 million hectares, but only about 60% is under cultivation. We still have roughly 40% of rubber plantations inactive. “Therefore, the Ministry of Plantation and Commodities is committed to ensuring that 400,000 hectares of idle land can be utilised for rubber planting,” he said in a speech at the 100-Year Rubber Research Celebration here yesterday. KUALA LUMPUR: Johor-based BMS Holdings Bhd expects another two to three years of firm property and construction driven activity in the state to support the group’s sales in the project segment. Chief marketing officer Ang Wei Liang said that BMS’s exposure to the construction sector comes through its project sales which make up a little over 20% of the group’s total revenue. “The property market can be cyclical. But currently for us, we are in a good stage where the property market is actively growing. So during Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Johari said that to date, domestic natural rubber production is estimated at 350,000 tonnes, which is still considered sustainable, but demand for these products exceeds one million tonnes. “If investors in this sector can become more aggressively involved, it will strengthen the nation’s position, particularly because Malaysia is a leading force in R&D and technology in this industry,” he said. He added that since its esta blishment, the MRB has com mercialised more than 200 R&D technologies and registered 394 patents, further cementing Malaysia’s position as a global rubber inno vation hub. Meanwhile, MRB chairman Tan Sri Ahmad Badri Mohd Zahir said that in conjunction with the cele bration, the MRB has drafted and launched the 2026-2030 Strategy Book to address global challenges, international compliance require ments, and sustainability demands. He said the MRB has set a clear direction towards a future shaped by this period, we expect for another two to three years, we will continuously capture the gains from this property market boom, especially in Johor,” he said at the ACE Market listing yesterday. However, he stressed that BMS’s core business is still retail, which contributes the majority of revenue and is far less sensitive to construction or property market fluctuations. “From our past experience, retail is very resilient and allows us to have very healthy cash flow to move forward. So even if there is a hit from the property market or cooling construction sector, we believe in Malaysia as an emerging market.

Johari (third from right) visiting one of the booths at the 100-Year Rubber Research Celebration in Kuala Lumur yesterday. – BERNAMAPIC

ability to turn natural resources into technology for the future. “I call on everyone – researchers, entrepreneurs, and the global community – to continue colla borating, innovating, and moving forward together.

the industrial revolution. “The MRB 2026-2030 strategy allocates special focus to advanced technologies such as artificial intel ligence, robotics, and automation, aligned with digital transformation and optimisation of the organi sation’s resources,” he said.

Ahmad Badri also said that this 100-year celebration is not an ending but the beginning of a new chapter; it is a symbol of humanity’s BMS sees 2-3 more years of strong property-driven project sales “Let us ensure that Malaysian rubber remains relevant and competitive and continues to be an important commodity for future generations,” he said. – Bernama

He added that if two new showrooms open as early as January 2026, each could generate RM500,000 to RM700,000 in sales monthly. “So if two showrooms, hopefully we are looking at about RM3 million of revenue contribution per month.” Ang said BMS recorded about RM85 million in revenue and RM8.4 million in profit and earnings for the first quarter ended Sept 30, 2025, contributed by its retail, project and wholesale segments. BMS opened at 19.5 sen in its debut on the ACE Market, below the initial public offering (IPO) price of 22 sen per share, While the opening was softer than expected, Ang said, the IPO is only the starting point of a much longer journey for them. Proceeds from the IPO will primarily fund the company’s expansion and digitalisation plans including RM34.28 million to build new retail showrooms and a regional distribution centre, RM17 million to upgrade facilities and ICT systems, RM4 million for marketing and RM18.8 million for working capital. The company’s IPO comprised the public issuance of 364 million new shares and 156 million existing shares offered for sale, representing about 33.77% of the company’s enlarged share capital. Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.

Houses are still being built. People are still renovating. We are actually still quite positive with our business model’s future growth,” he said. BMS is a home-finishing retailer specialising in tiles, stone surfaces, sanitaryware and kitchen fittings, operating 20 showrooms nationwide with a strong base in Johor. Retail contributes about 60% of its sales, while wholesale and project segments make up the remainder. As part of its post-listing expansion strategy, Ang said, BMS plans to open eight new showrooms. “Out of the eight showrooms that we are going to set up, there will be two to three showrooms that we expect to contribute for FY26.”

BMS Holdings plans to open eight new showrooms in post-listing expansion.