19/02/2026

BIZ & FINANCE THURSDAY | FEB 19, 2026

19 Sri Lanka’s Sapphire House debuts in M’sia

HOW does the company project its business to grow in Malaysia over the next five years, and what strategies will be used to reach these targets? Throughout history, Sri Lanka and Malaysia have shared a special and enduring bond. So, when the time came for us to choose a destination for our first overseas expansion, the decision was effortless. Malaysia’s vibrant diversity, the warmth of its people, and its dynamic economy made it impossible for us to look elsewhere. As we celebrate the grand opening of our first outlet here in November last year, we are also preparing to launch a second location in Kuala Lumpur in Q1’26, followed by two additional outlets in Johor and Penang in Q3 and Q4. Our strategy has always been—and will continue to be—to deliver exceptional value and uncompromising quality to our customers. Once someone shops with us, they tend to return again and again. What qualities make Sri Lanka sapphires distinct from those sourced in other countries such as their reputation, colours, and ethical sourcing practices? In one word, I would say colour. Nothing quite matches the brilliance of a Sri Lankan blue sapphire – it has a way of stopping you in your tracks. For me, that feeling is unique to a Sri Lankan blue sapphire; no other gemstone evokes it in quite the same way. The story goes that when Prince Charles proposed to Princess Diana, he took her to the royal jeweller, where she was presented with an o Long-standing ties between ‘Gem Island’ and the ‘Heart of Asia’ made expansion an easy decision, says founder Shayara Evanjalee ( pix )

progressive wage policies on corporate margins also merit close monitoring. A diversified approach with tactical flexibility will be important for navigating the evolving landscape. 0 Balanced opportunity Malaysia’s fixed income market in 2026 presents a compelling combination of fiscal discipline, Islamic finance innovation, and sustainability focused initiatives. The fundamentals are in place for an attractive investment environment, though success will depend on effective policy execution. We recommend a balanced portfolio approach that emphasises quality while capturing opportunities in the evolving sukuk and sustainable finance markets. The structural improvements underway are encouraging, but maintaining flexibility to adjust positioning as conditions develop will be prudent. For investors seeking stable income with exposure to innovative Islamic finance instruments, Malaysia offers meaningful opportunities in the year ahead. This article is contributed by Franklin Templeton Malaysia country head and CEO Datin Nor Hanifah Hashim ( pix ). Note: This document is for information only and does not constitute investment advice or a recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. priced from as low as RM6,000. Our aim is not to be perceived as “cheap”, but to deliver genuine value – exceptional craftsmanship, authentic gemstones, and transparent pricing. With global silver prices reaching all-time highs, our pieces represent outstanding long term value. Unlike costume jewellery, which depreciates over time, fine sapphire jewellery retains – and often increases – its value. Are there any immediate or future plans for expanding the brand across Malaysia or the region, and how will these be supported through retail, e-commerce, or partnerships? From experience, we’ve found that when it comes to jewellery, customers prefer to see pieces in person. It gives them the opportunity to try them on and better understand the fit, feel, and craftsmanship. From our perspective as the seller, meeting customers face to face is equally important. It allows us to better understand their needs, offer personalised guidance, and help them select pieces that truly suit them. That said, we recognise that consumers are increasingly moving online. While all our products are currently available to view and purchase via our website, we are also planning to launch our dedicated e-commerce platforms by the start of next year, making our collections even more accessible. What is the history of the company in the Sri Lankan gemstone industry, and what level of investment has gone into establishing its presence in Malaysia? We have been in business in Sri Lanka for over 20 years, building a strong reputation for quality, craftsmanship, and trust. Recently, we marked an important milestone with the opening of our 24th outlet, and today our stores can be found in all major and prominent shopping malls across the island. Our decision to expand into Malaysia represents the next chapter in this journey. It is a natural progression for the brand, and we see it as a key stepping stone towards broader international expansion, allowing us to introduce our heritage and expertise to new markets beyond Sri Lanka.

With over 20 years of heritage, One Sapphire brings the brilliance of Sri Lankan blue sapphires to Malaysia, opening multiple outlets nationwide and redefining fine jewellery with direct-from-origin pricing.

what customer segments the business aims to attract in the Malaysian market? When it comes to pricing, it’s important to understand how the jewellery industry operates. From mine to shelf, a gemstone can pass through many hands – often being sold and resold several times. With each transaction, the price increases, as every intermediary adds their own margin. At One Sapphire, we source all our stones directly from the origin, removing the need for costly middlemen. This direct approach often surprises people when they see our prices. In fact, some costume jewellery outlets sell glass stones at higher prices than our natural sapphires. At One Sapphire, an exquisitely crafted blue sapphire bracelet starts at under RM2,000, with rings from around RM900, and complete sets

array of engagement rings set with exquisite diamonds, emeralds and rubies. Yet her choice was a Sri Lankan blue sapphire. To this day, Princess Diana’s iconic sapphire engagement ring continues to inspire some of our own designs. When it comes to sourcing, Sri Lanka has come a long way over the past decade. Most of the country’s gemstone mines are located in the central regions of the island, and historically, the trade was often considered precarious. In recent years, however, the Sri Lankan government has taken significant steps to improve transparency, with a clear focus on eliminating corruption and malpractice across the industry. Can you share typical price ranges for genuine Sri Lankan sapphires and explain

Malaysia in 2026 – navigating resilient gains MALAYSIA concluded 2025 with notable resilience. Despite navigating global tariff tensions, the economy is projected to deliver GDP growth of 4% to 4.8% for the year. The government’s commitment to fiscal discipline has been evident, with the fiscal deficit narrowing to 3.8% and federal debt issuance declining substantially from RM100 billion in 2022 to RM77 billion in 2025. particularly in Sabah and Sarawak. While these measures support economic growth, investors should monitor their implications for government expenditure patterns and corporate profitability.

0 Investment implications for fixed income The outlook for Malaysia’s fixed income market in 2026 is constructive. Continued fiscal discipline and controlled debt issuance should maintain manageable sovereign bond supply, supporting favourable pricing dynamics. The reducing deficit trajectory and disciplined fiscal framework create a supportive backdrop for fixed income investments. The sukuk market warrants particular attention. Given the government’s emphasis on Islamic finance innovation and sustainability, we expect increased issuance of Climate Sukuk and ESG-aligned instruments. Growing institutional demand for these products may result in attractive pricing opportunities. From a positioning perspective, we recommend maintaining core allocations to high-quality government and corporate bonds for stable income generation. Consider building exposure to sukuk, particularly sustainability linked instruments that align with the government’s strategic priorities. Active duration management will be essential as interest rate expectations evolve throughout the year. Investors should remain mindful of execution risks related to fiscal targets and subsidy reforms. External economic conditions and the impact of

The targeted subsidy reforms implemented this year have generated approximately RM15.5 billion in annual savings. These funds have been strategically redirected toward welfare programmes, cost-of-living support, and infrastructure development. For fixed income investors, this fiscal consolidation has eased sovereign bond supply pressures and contributed to pricing stability throughout the year. 0 2026 outlook: Strategic priorities and growth drivers The 4th Madani Budget 2026, themed “The People’s Budget“, maintains the focus on fiscal discipline while advancing sustainable economic growth. We anticipate GDP growth of 4% to 4.5% alongside a further reduction in the fiscal deficit to 3.5% of GDP. Beyond fiscal metrics, the government is advancing meaningful initiatives in Islamic finance. The establishment of Labuan IBFC as a Digital Islamic Finance Hub, coupled with the introduction of Global Sukuk Tokenisation and Tokenised Cash-Waqf Sukuk, represents significant innovation in the Islamic finance

space. Additionally, Climate Sukuk issuances will finance green projects with returns structured around carbon credits, expanding opportunities in sustainable finance. On the policy front, the government has allocated RM1 billion for wage incentives to encourage salary increases, with a commitment to achieving a RM1,800 monthly minimum wage by 2027. Infrastructure spending is accelerating,