24/12/2025

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WEDNESDAY | DEC 24, 2025

Malaysia unfazed by entry of durian from Laos into China

KUALA LUMPUR: En route to being listed on the ACE Market of Bursa Malaysia, SBS Nexus Bhd will allocate larger shares of the initial public offering (IPO) proceeds towards the establishment of the company’s new headquarters and business expansion plans. Managing director and CEO Wong Chun Mun said the group plans to relocate to a significantly larger office of about 20,000 square feet, com pared to the current 10,000 square foot premises, to support the growing workforce of 44 employees and the anticipated expansion to several hundred staff. “The new headquarters will feature enhanced facilities, including a dedi cated training room and an improved studio, to better support our opera tional and growth requirements. “We currently produce a sub stantial volume of broadcast content for Shanghai Magazine and Shanghai Talk of Fame, operating from a single, relatively small studio of approxi mately 400 square feet. As part of our expansion strategy, we intend to develop two larger studios to support KUALA LUMPUR: Malaysia is unfazed by Laos’ growing presence in China’s durian market, as global demand for the fruit continues to expand beyond a single destination, said Agriculture and Food Security Minister Datuk Seri Mohamad Sabu. He said the entry of more durian exporting countries into China should not be viewed as a threat to Malaysia, as demand, particularly from China, remains strong while new markets are also opening up. “The durian market is becoming more accepted and increasingly widespread. China remains the main market because consumption there is very high, but Malaysia is also actively promoting durian in other regions,” he told reporters at an event yesterday. Mohamad said Malaysia has been promoting durian in emerging markets such as the Middle East, including Dubai and Tehran, as well as other international destinations, reflecting a strategy to diversify export markets beyond China. “As more countries enter the durian export space, it does not necessarily create a problem from a competition standpoint. The overall market is growing, and demand is expanding,” he said. The minister’s comments come as Laos steps up durian exports to China, adding to competition in a market long dominated by Thailand. Malaysia, however, has positioned itself as a premium durian exporter, particularly with Musang King and other high-value varieties that com mand premium prices. Beyond durian exports, Mohamad Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com Ű BY JOHN GILBERT sunbiz@thesundaily.com

lighted broader bilateral cooperation in the agrifood sector, showcasing how Malaysia is diversifying trade partners and strengthening food security through strategic inter national partnerships. Total trade between Malaysia and Russia currently stands at about US$3 billion (RM12.2 billion), reflecting broader economic engagement between the two countries, Mohamad said. Specifically for agrifood, trade between Malaysia and Russia amounted to RM2.5 billion as of September 2025, underscoring the growing role of food and agriculture in bilateral trade relations. “We need to explore more areas of cooperation and increase the number of our trade partners so that Malaysia’s food security can continue to improve over time,” he said. Mohamad also highlighted the importance of strong regulatory and halal governance frameworks in supporting agrifood trade, noting that effective cooperation between authorities helps ensure food safety and consumer confidence. Looking ahead, he said, Malaysia will continue balancing export growth including premium products such as durian with domestic food security priorities, particularly amid ongoing global supply chain uncer tainties.

o Market becoming increasingly widespread, and we are promoting the fruit in more regions: Mohamad Sabu reiterated the government’s broader focus on strengthening Malaysia’s food security, including reducing long-term dependence on imports for key food items. He said Malaysia cannot continue to rely on domestic production levels that remain below optimal self sufficiency ratios (SSR), stressing the need for structural improvements in the agriculture sector. “We cannot sustain domestic production at below 60% forever. We need to give serious focus to increasing our SSR to a more satisfactory level in the future.” Mohamad noted that while imported rice prices are currently relatively low, the situation may not be permanent, making it important for Malaysia to prepare for future price volatility. “At the moment, imported rice prices are low, but this will not remain forever. That is why we need to our growth and meet increasing demand in a rapidly expanding market. “In addition, we plan to establish an in-house mini event hall to accommodate our frequent event activities. Given the cost and external venue rentals, having our own facilities will allow us to manage productions and events more effectively and in a more integrated manner,” he told reporters after the company’s IPO prospectus launch yesterday. SBS Nexus is a branding and marketing solutions specialist, prin cipally involved in the provision of offline branding solutions and digital branding solutions. SBS Nexus’ IPO comprises the public offering of 171.5 million shares, consisting of a public issue of 122.50 million new shares and an offer for sale of 49 million shares, representing 35% of the group’s enlarged issued share capital of 490 million shares. Of the issue shares, 24.5 million are allocated to the Malaysian public, 17.15 million to eligible directors, employees and contributors, 61.25 million via private placement to approved Bumiputera investors, and 19.6 million to selected investors. The offer shares are fully allocated

Mohamad (right) taking a closer look at food products on display in conjunction with the From Russia With Love event in Kuala Lumpur yesterday. – BERNAMAPIC work harder and plan seriously to strengthen our food security.”

Mohamad’s remarks on Malaysia Russia trade were made during the “From Russia With Love” event, which officially introduced halal certified Russian food products into the Malaysian market. He noted that the event high

At the same time, the minister said, Malaysia is expanding trade ties with a wider range of partners to enhance supply chain resilience, particularly in the agrifood sector.

SBS Nexus: Bulk of IPO proceeds will be for new headquarters, business expansion

to selected investors through private placement. At an IPO price of 25 sen per share, the exercise is expected to raise RM30.63 million for SBS Nexus. Applications for the public tranche are open and will close on Jan 7. Of the total proceeds of RM30.63 million, RM7.1 million (23.2%) is earmarked for the establishment of the group’s new headquarters, while RM7.25 million (23.7%) will be allocated for business expansion. A further RM740,000 (2.4%) will be used for branding, marketing, and promotional activities to enhance the market’s presence. In addition, RM6 million (19.6%) will be applied to the repayment of borrowings to strengthen the group’s balance sheet, RM5.04 million (16.4%) will be set aside for working capital requirements, and RM4.5 million (14.7%) will be used to cover esti mated listing expenses. Based on the enlarged share capital of 490 million ordinary shares and the IPO price of 25 sen per share, SBS Nexus is expected to have a market capitalisation of RM122.5 million. Wong said the Malaysian adver tising market is estimated to be

From left: M&A Securities deputy head of corporate finance Rachel Ho and head of corporate finance Gary Ting; Wong; and SBS Nexus executive director Piah Yee Ling, independent non-executive chairman Datuk Seri H’ng Bak Tee and executive director cum COO Warren Cheng.

capital base. “While we do not have a formal dividend policy at this time, our track record reflects a largely consistent history of dividend payments. Subject to future business conditions and financial performance, dividends can be paid, although we do not wish to make any commitments at this stage. “While specific dividend policies will be determined by the board in due course, the business model sup ports the potential for future dividend distributions, subject to financial performance, cash requirements, and prevailing market conditions,“ he added.

sizeable, with total annual spending of RM5 billion. Based on independent market research, SBS Nexus currently accounts for less than 1% of the market, representing an estimated market share of around 0.3%, which highlights the significant growth potential available to the group. “As an asset-light and cash generative business, the group is well positioned to generate sustainable cash flows,“ he said. When asked, Wong said that, at present, the majority of the group’s profits are reinvested back into the business to strengthen its