18/12/2025

BIZ & FINANCE THURSDAY | DEC 18, 2025

15

Rubber mixed as cocoa, pepper hold firm in 2025

AWC rewards shareholders with bonus warrants SUBANG JAYA: The shareholders of main market-listed engineering services group AWC Bhd sat at an extraordinary general meeting (EGM) yesterday to approve the proposed bonus issue of up to 84,839,895 free warrants in AWC (Warrants) on the basis of 1 Warrant for every 4 existing AWC Shares held by the entitled shareholders on

KUALA LUMPUR: Malaysia’s rubber industry recorded a mixed performance this year, with output and exports, including external demand for gloves contracting, while the lesser commodities of cocoa and pepper bucked the trend by showing resilience. Exports remained robust amid rising global demand, especially for cocoa and pepper, despite ongoing structural constraints and broader market uncertainties. Overall, the rubber sector was characterised by weaker production despite monthly fluctuations, resilient export activity and uneven price movements. The Department of Statistics Malaysia (DoSM) said natural rubber (NR) output fell 14.8% to 26,647 tonnes in September 2025 from 31,285 tonnes in August. Despite the lower output, Malaysia’s NR stocks increased marginally by 0.7% to 159,629 tonnes in September compared with 158,157 tonnes a month earlier. Rubber processors held the bulk of inventories at 81.9%, followed by rubber consumer factories (18%) and estates (0.1%). Exports of NR stood at 33,548 tonnes in September, a 15.1% decline from 39,517 tonnes in August, while export performance continued to be supported by downstream rubber-based products, including gloves, tyres, tubes and rubber threads. Gloves remained Malaysia’s leading rubber based export, valued at RM1.1 billion in September 2025, an 8.2% drop from RM1.2 billion the previous month. To date, domestic natural rubber production is estimated at around 350,000 tonnes — still considered sustainable — although demand o Plantation output lags while food and spice segments perform better For Q1’26, the group said, it delivered sales revenue of RM884 million despite a challenging and competitive environment. Its profit after tax and minority interest soared to RM39 million, an impressive growth of 680% year on year, reflecting the group’s continued operational discipline and market agility following a successful return to profitability in FY25. Meanwhile, sales volume grew by 17% compared with the corresponding period in FY25, sustaining an uptrend propelled by returning glove demand and the group’s ongoing strategic improvement initiatives. The group said its strong performance in Q1’26 was primarily driven by robust sales volume growth across key markets, and particularly in the US. Sales revenue was softer despite the increase in sales volume mainly due to lower average selling prices (ASPs), in line with declining raw material costs as well as the impact of a stronger ringgit versus the US dollar. However, higher plant utilisation contributed to improved cost efficiency and economies of scale. This was further supported by ongoing quality enhancement and cost optimisation measures, strategic marketing initiatives alongside organisational realignment efforts which helped to lower costs and improve efficiency. While raw material prices declined, Top Glove

destination, accounting for nearly half of Malaysia’s total pepper shipments due to its preference for high-grade varieties. Production also registered moderate improvements, with total cultivation area expanding slightly to 8,301ha, supported by 39,517 registered smallholders under MPB’s development programmes. The Malaysian Rubber Board (MRB) will establish a RM600 million Research Centre of Excellence under Budget 2026 to ensure the industry’s long-term sustainability. The board will also develop the Strategic Plan 2026–2030 to chart a more sustainable path for the country’s rubber industry, boosting productivity, driving innovation through research and development (R&D), empowering support services, and strengthening operational efficiency and governance. For cocoa, the government — through MCB — has allocated RM19 million from 2024 to 2026 for the Cocoa Farm Rehabilitation Project to enhance cultivation nationwide, as a key source of the country’s economy. It will also implement the Cocoa Yield Production Stimulus Programme to expand planted areas by 550ha and to facilitate mini cocoa processing infrastructure. To keep pace with rising global demand, the government aims to expand cocoa cultivation to 10,000ha by 2030 from the current 5,985ha, under the Cocoa Cultivation Promotion Programme. As for pepper, the government and MPB are intensifying efforts to expand cultivation beyond traditional areas, accelerate replanting, and promote downstream ventures, including premium processed pepper, nutraceutical applications and higher-value spice products. MPB is also advancing industry transformation through modern technologies such as fertigation systems, Internet of Things , drones and hyperspectral imaging, while digital tools like LadaGo, Dr Lada and NutriLada help farmers manage crops more efficiently. – Bernama

exceeds one million tonnes. Malaysia’s cocoa industry recorded another strong year, with export earnings expected to reach RM15 billion by end-2025, supported by robust global demand, solid downstream processing activities and a renewed push to revitalise upstream production. The Malaysian Cocoa Board (MCB), said the sector recorded RM9.69 billion in export revenue in the first half of 2025, keeping it on track to match last year’s RM15.06 billion performance, one of the highest in the industry’s history. Malaysia also retained its position as one of the world’s top five cocoa grinders, with an annual processing capacity of around 368,000 to 370,000 tonnes, reinforcing its status as a major global hub for cocoa-based ingredients and confectionery products. However, the upstream segment continues to face structural challenges. Domestic cocoa bean production — though improving from 269 tonnes to 445 tonnes — remains far below processing requirements, forcing manufacturers to rely heavily on imports. Industry players warn that this reliance increases vulnerability to global supply disruptions and volatile world prices. Malaysia’s pepper industry also delivered a robust performance in 2025, driven by surging prices, stronger exports and growing global demand for high-quality Malaysian pepper, despite structural constraints in production capacity. The Malaysian Pepper Board (MPB) said black pepper prices jumped 51% this year to RM27,240 per tonne, compared with RM18,066 per tonne in 2024, while white pepper prices recorded a similar trend, rising 43% year-on year to RM37,407 per tonne — one of the strongest rallies in recent years. Pepper exports grew in tandem with higher prices, reaching RM186.67 million in 2024, up 24% from 2023 driven by strong demand from Japan, China, South Korea and Europe. Japan remained the largest single

an entitlement date to be determined and announced later. The other proposals were the establishment of an employee share option scheme (ESOS) of up to 15% of the total number of issued ordinary shares in AWC (excluding treasury shares, if any) at any

point in time during the duration of the ESOS for the eligible directors and employees of AWC and its subsidiaries besides an authority for share buy-back of up to 10% of the existing issued Shares of AWC. Speaking after the EGM, group CEO/president Datuk Ahmad Kabeer Mohamed Nagoor ( pix ) said, “We are grateful for the continuous support of our shareholders and would like to take this opportunity to express our appreciation towards the confidence and patience given to us as we scale our business. The Proposed Bonus Issue of Warrants serves as an additional avenue to reward our shareholders, complementing our steady stream of dividends.” “The Proposed Bonus Issue of Warrants, which are issued at no cost to our shareholders, provide them the option to further increase their equity participation in the group by exercising the warrants at a pre-determined price over the tenure of the warrants. Our shareholders may also benefit from the potential capital appreciation arising from the exercise of warrants based on the future growth prospects of the group. From AWC’s perspective, this exercise would potentially provide additional funds to meet our working capital needs as and when the warrants are exercised without the need of incurring interest costs in the case of bank borrowings.” “Meanwhile, the Proposed ESOS aims to recognise, reward, and retain eligible employees by aligning their interests with those of shareholders through participation in the group’s growth and profitability. It also serves as a non-cash form of remuneration that enhances motivation, attracts skilled talent, and allows employees to benefit from potential capital gains in AWC Shares,” Ahmad Kabeer concluded. The exercise price of the warrants will be determined and fixed by the board at a later date after all relevant approvals have been obtained. It will take into consideration the 5-day volume weighted average share price (VWAP) and historical trading prices of AWC Shares. The board intends to fix the exercise price of the warrants at a premium range of 20% to 30% to the 5-day VWAP of AWC Shares immediately preceding the price fixing date. The abovementioned range of premium will allow the board to fix the exercise price of the warrants to incentivise the holders of the warrants to exercise the warrants and increase their equity participation in the company, while also allowing the board the necessary flexibility to accommodate for potential fluctuations in the prevailing market conditions and prices. As and when the warrants are exercised, the proceeds are expected to fund the working capital of the group.

Top Glove posts 680% profit surge in Q1’26 SHAH ALAM: Top Glove Corporation Bhd announced its financial results for the first quarter (Q1’26) ended Nov 30, 2025, extending its positive uptrend to commence FY26 on a robust note.

Top Glove sees demand growth continuing as it reactivates production lines to meet improving market conditions. – BERNAMAPIX

needs even as glove demand continues to recover steadily. We will keep pursuing strategic enhancement initiatives and are confident of maintaining our upward trajectory and delivering sustainable value to all our stakeholders.” Looking ahead, the group expects glove demand to continue growing across key geographies, supported by steady replenishment cycles and new opportunities. To meet rising demand, Top Glove said, it will continue to reactivate more production lines as lead times and utilisation increase, while maintaining its focus on driving operational excellence via quality and cost optimisation initiatives.

shared part of the cost savings with customers, demonstrating pricing strength and long term customer focus. Additionally, foreign exchange impacts were offset by lower raw material costs and the group continues to hedge forward its USD requirements towards mitigating foreign exchange volatility risks. Top Glove managing director Lim Cheong Guan remarked, “Our strong start to FY26 builds on the sustained momentum from last year, and marks a significant milestone, the restoration of Ebitda margins to pre-pandemic levels. Our vastly improved performance is testament to our unwavering focus on optimising quality and cost efficiency, while meeting our customers’