27/03/2026

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BIZ & FINANCE FRIDAY | MAR 27, 2026

Solid but moderating growth forecast

said Jati Tinggi is well-positioned for multi-year earnings growth. “We value Jati Tinggi using a price to-earnings (P/E) approach, reflecting its strong growth outlook. Based on a 15 times forecast earnings multiple for 2027, we maintain a ‘Buy’ call with a target price of RM1 per share. “This is slightly above the sector average, supported by the company’s strong expected earnings growth of about 88%,“ AmInvest said. However, AmInvest cautioned that Jati Tinggi, like other construction firms, is sensitive to raw material costs. “Cables – its main cost item, accounting for about 59% of expenses including subcontractor fees—are sourced primarily from a key supplier Power Cables Malaysia.” Further, the bank recommends that investors manage volatility through alternatives and multi-asset strategies including hedge funds, private markets, and global multi asset strategies, to access innovation in private companies, benefit from dispersion across winners and losers, and diversify foreign exchange exposure as policy paths diverge. captures ongoing global expansion led by the US and Asia, with Europe expected to lag but remain supported by fiscal spending. The outlook considers that the global rate-cut cycle is nearing its end, and that supportive corporate fundamentals, particularly in the US, should continue to underpin re onshoring and investment in innovation. The bank’s four priorities for Q2’26 are to maintain exposure to AI structural growth drivers, notably semiconductors and electricity infrastructure, while broadening participation beyond IT by adding cyclical sectors such as industrials, financials, communication services, and materials, and with fewer rate cuts expected, income strategies focusing on investment-grade and emerging-market bonds can support returns and portfolio resilience.

management of technical aspects across its engineering engagements. Other services include EPCC for substations such as design and project management of indoor and outdoor high-voltage electrical substations. The company also engages in the trading of equipment for substations, as well as the inspection and maintenance of street lighting equipment. AmInvest noted that Jati Tinggi offers a compelling growth story backed by a strong track record in power infrastructure, proprietary tech-driven execution, and experienced leadership. With structural tailwinds from TNB’s RM35 billion grid capex, a surging order book, and margin recovery underway, the research firm historically, market reactions to geopolitical events are typically temporary and often reversed over time. HSBC Private Bank and Premier Wealth global chief investment officer Willem Sels said that amid rapidly shifting market conditions, it is important not to be swayed by pessimistic or exuberant narratives and instead to focus on building resilience to achieve steadier returns. “The year-to-date volatility of gold has demonstrated that no single diversifier is perfect, so we continue to diversify our diversifiers across sectors, geographies and asset classes,” he said. The bank recommends that its high-net-worth and ultra-high-net worth clients to consider selective allocations to hedge funds and private markets to broaden access to the opportunity set. The bank also stresses that building resilient portfolios requires more than sectoral and geographical diversification, highlighting the role of bonds, currencies, commodities and multi-asset diversification in reducing concentration risk and improving overall stability. Designed for a six-month horizon, the bank’s investment strategy

“TNB has allocated RM42.9 billion for grid upgrades under its 2025–27 plan. Jati Tinggi is well positioned to benefit, with 93% of its current order book coming from TNB-related projects,“ AmInvest said. For background, Jati Tinggi is a provider of utility engineering services, with 99.5% of its revenue derived from core offerings in overhead and underground energy transmission infrastructure. The company’s scope of work includes the procurement, supply, installation, construction, laying, and relocation, testing, inspection, repair, and maintenance of energy transmission systems. Additionally, Jati Tinggi is involved in project planning, mapping, and the somewhat expensive relative to fundamentals. “Hence, we hold a neutral view on the ringgit over the next 6 months as the pace of appreciation could slow down. We expect the USD/ringgit to edge towards 3.85 by the end of 2026,” he said. Abhilash said HSBC Private Bank is neutral on Malaysian equities over the next six months despite the strong economic outlook, as growth areas such as electronics, chips and data centres have limited representation in the stock index. “Malaysian equities are priced at 14.8 times forward price-to-earnings ratio, broadly in-line with their 5-year average. We look for nearly 9% earnings growth in 2026,” he said. On the global front, the resilient economy continues to provide growth opportunities that help investors remain invested while strengthening portfolio resilience to manage recent geopolitical developments. In its report, the bank advises its private wealth clients to focus on building portfolio resilience through broad diversification, rather than attempting to time market exits and re-entries, which can increase execution and timing risk. The bank also highlights that,

o HSBC Private Bank puts Malaysia’s real GDP expansion this year at 4.5%, lower than the 4.9% achieved in 2025

KUALA LUMPUR: Robust domestic consumption, ongoing spending on infrastructure and data centres, and an upswing in tourism continue to support economic growth in Malaysia in 2026, according to HSBC Private Bank report. HSBC Private Bank and Premier Wealth Investment Strategist (Asia) Abhilash Narayan said the bank expects solid but moderating growth for Malaysia within the Asia ex-Japan region, forecasting a real GDP growth of 4.5% in 2026, down from 4.9% in 2025. “Elevated energy prices and Middle East conflict present near term headwinds. However, Malaysia’s policy responses, including targeted subsidies and price controls, cushion the economic impact. “Policy flexibility and medium KUALA LUMPUR: Malaysia’s data centre boom remains a key growth driver, with the market expected to grow 20–25% annually to about US$16 billion (RM63 billion) by 2031, boosting demand for infrastructure. Amlnvestment Bank Bhd (AmInvest) said this is already showing up in contractors’ order books, with Jati Tinggi Group Bhd’s tenders reaching roughly RM2.2 billion. However, the research firms said the industry may struggle to keep up, as listed mechanical and electrical (M&E) firms generated only about RM1.1 billion in revenue in 2025, pointing to a gap between demand and available capacity. To recap, Jati Tinggi recently acquired a 51% stake in Roflex Pipe

Sdn Bhd for RM6.12 million, an earnings accretive acquisition. This marks its entry into polyethylene pipe manufacturing, strengthening its vertical integration within infrastructure projects, particularly in underground utilities. “We have upgraded our FY26/27 earnings for Jati Tinggi by about 8 10%,“ AmInvest said in a note. The research firm said the expansion of Tenaga Nasional Bhd’s (TNB) power grid is expected to support Jati Tinggi’s core business, as higher global energy prices push countries to speed up the shift to renewable energy. This transition, the firm said, requires major upgrades to power grids, driving more investment. Continued Opportunity” maintains a preference for growth-style stocks and companies with pricing power and exposure to structural growth themes, particularly in the US and Asia. Abhilash said inflation in Malaysia has been on a gradual uptrend owing to strong domestic demand. “Despite the low unemployment rate, we see limited signs of wage pressure, which should keep inflation manageable. “Hence, we expect Bank Negara Malaysia (BNM) to keep interest rates unchanged at 2.75% through 2026, unless we see a sustained oil price shock,” he said. On the local currency, Abhilash said the ringgit has been one of the best-performing Asian currencies versus the US dollar in 2026, aided by a combination of corporate FX repatriations, current account surplus and robust FDI pipeline.

term regional growth prospects remain constructive,” he said in the Q2’26 Investment Outlook report. The report “Changing Narratives, AmInvest upgrades Jati Tinggi’s earnings outlook “However, as a result of the recent outperformance, the ringgit appears

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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