31/03/2026

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TUESDAY | MAR 31, 2026

Capital A working towards dual listing in Hong Kong

KUALA LUMPUR: Capital A Bhd is pushing ahead with ambitious expansion and capital market plans, including a potential US listing and a Hong Kong dual listing, as it seeks to ride out geopolitical volatility and reposition itself beyond aviation. Group CEO Tan Sri Tony Fernandes said the company is moving decisively into its next growth phase despite rising oil prices and global geopolitical tensions, with its non aviation businesses expected to anchor future earnings. “We’re not wasting this crisis. We’re relooking at our network, accelerating cost savings and working with the ecosystem,” he said, adding that while aviation faces pressure, “the real success story is Capital A”. The group, which recently com pleted the disposal of its aviation assets to AirAsia X Bhd, is now focused on scaling five core businesses – Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, AirAsia Next and Santan. Fernandes stressed that market perceptions have yet to catch up with the structural shift. “Our share price has behaved like Capital A is part of aviation, but it’s not. It’s a very different company where oil is not a major factor,” he said at a press conference after a briefing on Capital A’s business direction yesterday. A key pillar of Capital A’s strategy is Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

tightened supply. Fernandes acknowledged that airfares will inevitably rise but said increases would be kept “as low as possible”, with the burden needing to be shared across the broader aviation ecosystem. He said AirAsia fares would remain within reach for most travellers. The airline has no plans to suspend flights despite higher crude oil prices, citing continued strong demand. “We will not be cancelling flights as demand is good. We are doing our best to keep fares as low as possible, but we will require support from other parts of the aviation eco system,” Fernandes said. “Fares will have to go up – there are no two ways about it – but our fares will increase much less than others.” Despite rising costs, Fernandes said, AirAsia is still able to sustain operations and absorb part of the impact, aided by reduced capacity from Gulf-based airlines. “Demand remains healthy, and we are able to continue operating while taking on some of the added costs, especially as seat capacity from carriers such as Emirates, Etihad and Qatar has fallen by about 15% to 20%.” He said the drop in capacity creates an opportunity for Asean to position itself as an alternative aviation hub, but stressed that rising costs should be shared across the industry. “The burden cannot fall on airlines alone – fuel suppliers, airports and the wider supply chain must also play a role. This is a good opportunity to build a hub, and it’s encouraging to see airlines working together,” Fernandes said. Beyond aviation, however, several of Capital A’s units are either insulated or benefiting from current conditions. Logistics arm Teleport is seeing stronger demand, particularly for cargo flows into the Middle East, while maintenance unit ADE

continues to expand its global client base, including servicing aircraft from major European airlines. Digital platform AirAsia MOVE and branding unit AirAsia Next are also positioned to gain from higher transaction volumes and ecosystem monetisation. Newly appointed deputy CEO Effendy Shahul Hamid said the group’s ecosystem model was a key factor behind his decision to join. “I wanted to be involved with a group that is forward-looking, focused on growth and understands how technology drives value creation. I found all of that in Capital A,” he said. Effendy, who will focus on eco system orchestration and execution, highlighted the untapped potential within the group’s integrated platform. “There’s so much potential in how these businesses come together. It’s about expanding the ecosystem and ensuring it translates into real value,” he said. Fernandes described the eco system as a long-term differentiator, with AirAsia Next expected to play a central role through brand licensing, loyalty programmes and a 40 million-strong user database. Capital A is also aggressively scaling its non-aviation verticals. ADE is expanding into com ponents and engine maintenance, Teleport is building a point-to-point logistics network for e-commerce, while Santan is targeting up to 500 outlets under a grab-and-go model. At the same time, the group is integrating artificial intelligence across its operations to improve efficiency and reduce costs. “We believe we can fix and maintain aircraft faster and cheaper than anyone in the world using technology,” Fernandes said. Despite near-term uncertainties, he reiterated confidence in the group’s trajectory. “This is another cycle. We’ve been through many. We will come out stronger,” Fernandes said.

o Group also targeting US listing for AirAsia Next as it moves into next growth phase with non-aviation businesses expected to anchor future earnings

in Greater China looking at Asean, and we want to be part of that flow,” Fernandes said. These moves come as the group works towards exiting PN17 status, with Fernandes indicating audited accounts could be submitted by April, following four consecutive quarters of profitability. While rising oil prices and geopolitical tensions have clouded the aviation outlook, Fernandes maintained that demand remains resilient and could even create upside for parts of the business. “Demand is still strong. In fact, it’s better than before in some markets,” he said, noting reduced capacity from Middle Eastern carriers has

unlocking value through listings and capital-raising exercises across its ecosystem. Fernandes revealed that the group is targeting a US listing for AirAsia Next, its digital, branding and loyalty arm, by year-end. “We think we have a wonderful company. Americans like loyalty, they understand the model, and we believe the market will appreciate it.” At the same time, Capital A is working towards a dual listing in Hong Kong as early as July or August, tapping into regional liquidity and investor appetite for Asean growth stories. “The Hong Kong exchange approached us. There’s a lot of capital

From left: Capital A executive chairman Datuk Kamarudin Meranun, Effendy and Fernandes after the media briefing yesterday.

Bursa, Thai bourse post net foreign inflows, six other Asian markets in the red KUALA LUMPUR: Foreign investors extended a six-week streak of net selling across eight Asian markets, with net foreign outflows totalling US$15.68 billion (RM63.17 billion), according to MBSB Investment Bank Bhd. Net selling activities were broad consecutive net selling streak, recording US$58.9 million in net foreign inflows. This came despite a widening external imbalance, with the trade balance swinging to a US$2.83 billion deficit in February 2026 (Feb 2025: +US$2.0 billion), missing expectations and marking a fifth consecutive shortfall,” the investment bank said. uncertainties. In South Korea, foreign investors were net sellers for a sixth consecutive week, recording outflows of US$9.03 billion, the largest in the region, the report said. “This was amid rising price pressures, with producer prices increasing 2.4% y-o-y in February 2026 (January 2026: +1.8%), marking the fastest rise since July 2024. pressures,” it added. On Bursa Malaysia, foreign investors ended their second consecutive week of net selling, recording RM587.6 million in net foreign inflows. “Foreign investors were net buyers on all four trading days during the week. The largest inflow was recorded on Wednesday (RM191.5 million), followed by Friday (RM176.2 million), Thursday (RM112.9 million), and Tuesday (RM107.0 million),” it said. while the top three sectors that recorded net foreign outflows were technology (RM123.1 million), consumer products and services (RM89.2 million) and construction (RM78.5 million). Local institutions ended a two week consecutive streak of net buying, recording RM582.9 million in net outflows, while local retailers extended to a second consecutive week of net selling, recording modest net outflows of RM4.7 million.

based again, with Malaysia and Thailand being the only markets to receive net foreign inflows, while outflows were led by South Korea, India, Taiwan, Indonesia, Vietnam and the Philippines, MBSB Investment Bank said in its Fund Flow Report for the week ended March 27. “Thailand broke a three-week

It said Thailand’s imports surged 31.8% year-on-year (y-o-y), driven by strong domestic demand and election-related fiscal stimulus, while export growth slowed sharply to 9.9% y-o-y, reflecting softer external demand amid ongoing geopolitical

“The acceleration was broad-based across services, manufacturing, and agricultural products, while monthly prices rose 0.6% month-on-month for a second straight month, pointing to sustained upstream inflationary

“The average daily trading volume saw a broad-based decline: local retailers by 0.4%, local institutions increased by 1.1% and foreign investors saw a 14.7% fall,” it added. – Bernama

MBSB Investment Bank said the top three sectors that recorded net foreign inflows were plantation (RM385.9 million), financial services (RM295.6 million), and energy (RM139.1 million),