03/04/2026

BIZ & FINANCE FRIDAY | APR 3, 2026

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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Proton reaffirms commitment to automotive ecosystem

C-Hawk boosts capacity with Malaysia, Vietnam expansion KUALA LUMPUR: C-Hawk Technology, a global manufacturer of components, assemblies and systems for the semiconductor and health imaging industries, has expanded its Southeast Asia manufacturing footprint with new facilities in Johor Bahru, Malaysia, and Ho Chi Minh City, Vietnam. In a statement, the company said the investments strengthen its regional manufacturing capacity and capabilities, enabling support for semiconductor customers through localised production, improved supply chain resilience and faster time-to-market. “By expanding our regional footprint, we have added new capabilities and increased capacity, enabling greater agility and faster scaling to meet customers’ needs, while continuing to uphold the high-quality standards our customers expect. “This expansion was well-timed, as we were able to transition into the factories and have our customers qualify them in time to support the current semiconductor ramp,” said C-Hawk Group of Companies CEO Chase Zunino. The Johor Bahru facility spans approximately 200,000 square feet across two adjacent buildings, enhancing the company’s capabilities in precision plastics manufacturing and cleanroom assembly. The site also introduces perfluoroalkoxy (PFA) tube bending as a core capability and currently employs over 300 workers, with plans to expand to more than 400 by the end of 2026, reflecting its ongoing investment in Southeast Asia manufacturing operations. Meanwhile, the Ho Chi Minh City facility, spanning 96,000 square feet, strengthens manufacturing diversification and supply chain capabilities in the region. The Vietnam site specialises in contract manufacturing of complex modules and full system builds, as well as ultra-high-purity orbital welding for semiconductor gas delivery systems. Beyond increasing production capacity, the company also supports the development of local advanced manufacturing ecosystems through partnerships with regional universities and community outreach programmes focused on workforce and engineering talent development. – Bernama

contributing significantly to the Government’s aspirations in transitioning the local automotive market towards electrified vehicles. These efforts reflect Proton’s commitment to advancing local expertise, accelerating technology transfer, and positioning Malaysia as a competitive player in the global transition towards electrification, supported by a fully developed domestic automotive ecosystem that Proton has built and nurtured over four decades. As Malaysia’s first homegrown automotive original equipment manufacturer, Proton has always played a pivotal role in developing the nation’s automotive industry and its supporting vendor network, while ensuring Malaysian consumers continue to enjoy access to safe, high-quality and competitively priced vehicles. This commitment to the local ecosystem is reflected in Proton’s local purchase value of more than RM17 billion over the last five years (2021–2025), which is projected to rise to approximately RM30 billion over the next five years (2026–2030). The company continues to work closely with key stakeholders, including ministries and government agencies, to ensure its strategies and investments remain aligned with the broader national agenda. In parallel, Proton has steadily expanded its export footprint with export ready products that meet international standards and quality expectations. The firm is present in 18 international markets and has set a clear ambition to double this presence over the next five years.

o Govt’s long-term mobility agenda will ensure industry stays relevant and competitive, says Malaysia’s homegrown brand

SHAH ALAM: Proton Holdings Bhd, a subsidiary of DRB-Hicom Bhd, reaffirms its commitment to strengthening Malaysia’s automotive ecosystem and supporting the long-term development of automotive industrialisation in the country. “Proton was founded with the purpose of building national capability, and that responsibility continues to guide us today. As Malaysia’s homegrown automotive brand, with more than 40 years of experience serving Malaysian motorists, we are fully committed to supporting the Government’s long-term industrial and mobility aspirations by strengthening the local automotive ecosystem, developing Malaysian talent, and contributing to sustainable industry growth. “Through close and continuous collaboration with the government and industry stakeholders, Proton will continue to play its role in ensuring Malaysia’s automotive industry remains relevant and competitive as it evolves,” said Proton chairman Tan Sri Syed Faisal Albar, who is also DRB-Hicom Group managing director. In recent years, Proton has made significant investments to upgrade its capabilities, including the expansion of vehicle and

powertrain manufacturing capacity in Tanjong Malim, Perak. This includes the local assembly of key electrified vehicle components such as the Electric Drive Unit and Dedicated Hybrid Transmission, supporting the company’s range of electrified vehicles, including hybrid and electric models. Proton has also established Malaysia’s first dedicated Electric Vehicle (EV) assembly plant, reinforcing its role as a cornerstone of the nation’s new energy vehicle (NEV) and next-generation mobility agenda. These advanced manufacturing and technology capabilities are anchored by the Automotive High Tech Valley (AHTV) development, with Proton playing a central role in positioning AHTV as a national hub for NEVs and next-generation vehicle technologies. The initiative is designed to attract large-scale foreign investments, while serving as a focal point for advanced manufacturing, talent development and research and development activities to strengthen Malaysia’s long-term competitiveness in future mobility. The phased implementation of Proton’s EV initiatives has shown positive results and instilled confidence among consumers, He said the second project is the land acquisition for the Sungai Perai WTP, with a capacity of 136 MLD, which is part of the Sungai Perai Water Supply Scheme and a component under the WCP 2030, and is scheduled for completion in 2031. Pathmanathan said the next project is the land acquisition for the expansion project at the Sungai Dua WTP with a capacity of 1,342 MLD in Seberang Perai Utara (SPU) and the land acquisition and piping works for the treated water pipeline with a diameter of 1,800 mm from the Macallum area to Bukit Dumbar. He said the fifth project is the land acquisition for the Sungai Muda WTP, with a capacity of 114 MLD in SPU, which aims to treat more water in

PBAPP allocates RM631 million for water projects GEORGE TOWN: The Penang Water Supply Corporation (PBAPP) plans to invest RM631 million in capital expenditure (capex) to implement various water supply projects throughout this year, making it the largest annual allocation in the history of water services in the state. capacity of 86,400 million litres, will change from ‘strategic drought reserve dam’ to ‘dual-function dam’,” he said in a statement yesterday. the area for distribution in the affected areas, scheduled for completion in 2031.

Commenting further, he said the remaining 39% of the capex allocation would be used for various pipe installation or replacement projects; meter replacement projects to support the improvement of non-revenue water management; WTP upgrading projects; and the construction of new water tanks in Bukit Penara and Bukit Dumbar. Pathamanathan also said that in the interim financial report, PBA Holdings Bhd (PBAHB), the publicly listed holding company for PBAPP, recorded an unaudited profit after tax (PAT) of approximately RM115 million for the financial year 2025.

Its CEO, Datuk K.Pathmanathan, said of this amount, about RM387 million or 61.3% is allocated for five critical infrastructure projects under the Water Contingency Plan 2030 (WCP 2030). “First, the construction of the Taman Mengkuang Water Treatment Plant (WTP) with a capacity of 114 million litres per day (MLD) and related piping work. This WTP in Central Seberang Perai (SPT) is the third component under the WCP 2030, which is scheduled to be completed by the end of this year. “When it begins operations, the status of the Expanded Mengkuang Dam (EMD), with a

“After the dividend payment to PBAHB shareholders, approximately RM100 million from the 2025 PAT will be directly reinvested as PBAPP’s capex for 2026.” – Bernama 2026 CPO price to rise to RM4,350 per tonne due to tight supply: Hong Leong IB

KUALA LUMPUR: Crude palm oil (CPO) prices for 2026 are expected to rise to RM4,350 per tonne, an increase of RM150 per metric tonne, reflecting tighter near-term supply conditions, said Hong Leong Investment Bank (HLIB). In a note yesterday, HLIB said CPO prices are expected to remain elevated at RM4,500–RM4,600 per tonne in the second quarter of 2026 (2Q 2026) before moderating from 3Q 2026 onwards. “Our longer-term CPO price assumption is unchanged at RM4,200 per tonne from 2027, as supply conditions gradually normalise. “Based on our estimates, every RM100 per metric tonne increase in our average CPO price projection would lift earnings forecast for plantation

Meanwhile, RHB Investment Bank Bhd said CPO prices have continued to rally (+19% since the start of the West Asia conflict to a year-to-date average of RM4,188 per tonne), driven by the spike in crude oil prices (+46% since the start of the war) and its broader repercussions. “The most significant repercussion is likely higher biodiesel mandates in Indonesia and globally. “In Malaysia, there is also talk about implementing a B20 biodiesel mandate again. Some politicians say a B20 mandate would be cheaper by 20 sen per litre compared with current market prices.” The current B10 mandate in Malaysia uses 1.3–1.4 million tonnes of CPO, while a B20 mandate will double that. – Bernama

companies under our coverage by three to 8%,” it said. HLIB said the West Asia conflict is driving a multi-channel shock, lifting CPO via energy-linked demand and near-term supply tightness. “Fertiliser cost spikes may trigger crop switching to soybeans, capping medium-term upside. Logistics disruptions add temporary premiums. “CPO is a proxy for crude oil. Elevated crude oil prices will strengthen biodiesel economics, lifting demand for vegetable oils and reinforcing CPO’s role as a proxy for energy markets.” HLIB maintains an “Overweight” call on the sector, favouring upstream planters with locked-in input costs and stronger margin visibility.

A worker collects palm oil fruit inside a palm oil factory in Sepang. – REUTERSPIC