22/04/2026

BIZ & FINANCE WEDNESDAY | APR 22, 2026

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Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Airbus is streng thening its footprint in Malaysia’s defence sector through a series of new agreements signed at the Defence Services Asia and National Security Asia 2026 exhibitions. Airbus country repre-sentative for Malaysia Bur-hanudin Noordin Ali ( pic ) said the agreements include memorandums of understanding (MoU) and letters of intent (LoI) with Boustead Holdings Bhd; maintenance, repair and overhaul providers Airod Sdn Bhd and Global Turbine Asia Sdn Bhd; as well as simulator technology firm KUALA LUMPUR: Container liner shipping operator MTT Shipping and Logistics Bhd (MTTSL) is embarking on an aggressive push to scale its regional shipping operations and capture trade volumes across Asia after undertaking a pure growth initial public offering (IPO). Managing director Ooi Lean Hin said the group’s strategy is anchored on structural shifts in global trade, particularly supply chain realign ments and the diversification of export markets by China, which are driving intra-Asian trade flows. “We have raised funds (from the IPO) to acquire more vessels in order to tap expected trade volume growth across Asia, spanning China, Southeast Asia and the Indian subcontinent. This growth is being driven by global trade shifts, supply chain realignments and China’s diversification of its export markets,” he said at a press conference following its listing on the Main Market of Bursa Malaysia yesterday. From its beginnings about 15 years ago with chartered vessels, MTTSL has grown into a 25-ship operator with a relatively young fleet averaging 7.2 years, with only four older vessels remaining. The group has already ordered 12 additional feeder container ships and plans to introduce larger vessels to expand into bigger markets such as India, positioning itself to capture rising regional trade flows. While MTTSL already commands about 46% of the domestic market, Ooi said growth potential within Malaysia is limited, making regional expansion a strategic priority as the group strengthens its fleet and balance sheet following the listing. “Since the last time MISC exited the trade in 2012, we have not had a major Malaysian container shipping company. We aspire to fill that space,” he said. However, the expansion comes at a time when global shipping dynamics are being reshaped by geopolitical tensions, particularly disruptions linked to the Strait of Hormuz, which have tightened effective capacity in the market. “Everybody knows the impact of the Iran war is oil price increase. That affects all sectors, and long term there could be some demand contraction. But for us, we are not exposed to the Gulf,” Ooi said. He added that recent contract renewals have recorded increases of more than 10%, as capacity constraints partly driven by vessels stranded in the Gulf continue to support higher charter rates. “Vessels stranded in the Gulf have

MTTSL charts course for aggressive regional expansion From left: MTTSL independent non-executive directors Datuk Abd Gani Othman and Shareen Shariza Abdul Ghani; non-independent executive director Clarice Ong Yee Sian; executive chairman Datuk Seri Ong Kean Lee; Ooi; non-independent executive director/administration director Chan Huan Hin; independent non-executive director Mia Idora Ismail; CIMB Investment Bank CEO and regional head of investment banking Nor Masliza Sulaiman; and MTTSL independent non-executive director Datuk Captain Ahmad Othman at the listing ceremony.

A400M aircraft in Malaysia to support the operational readiness of the Royal Malaysian Air Force (RMAF) fleet. “So this is something that we are very proud of, and as you know, the RMAF has four aircraft, and this enables Airod to perform some maintenance activities on the A400M,” he added. Meanwhile, regarding Ikramatic Systems, Burhanudin said Airbus aims to partner with the company to develop simulator capabilities to support the H225 helicopter, as part of efforts to strengthen local industry participation. demand for domestic and regional trade. The container liner shipping operator made its debut on Bursa Malaysia as the sector’s largest IPO since 2013 by both market capitalisation and deal size, following the issuance of 633.5 million new ordinary shares. Of the total proceeds raised, RM624.7 million has been allocated towards the acquisition of at least 12 newbuild container vessels to expand operations and rejuvenate its existing fleet, while the remaining RM27.8 million will be utilised to defray listing-related expenses. The counter opened at RM1.08, a five sen premium to its IPO price of RM1.03 per share. It later eased to close at RM1.00, down three sen or nearly 3% on the day, with more than 62 million shares traded. At the closing price, the group’s market capitalisation stood at RM2.5 billion. CIMB Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the IPO. CLSA Limited and CLSA Securities Malaysia Sdn Bhd are the joint global coordinators and joint bookrunners, while Affin Hwang Investment Bank Bhd is the joint bookrunner and joint underwriter.

intends to formalise an arrangement for Boustead to act as the prime contractor for military helicopter sales in Malaysia. As for the collaboration with Airod, Burhanudin said that as a long standing defence player in Malaysia, Airbus is looking to transfer capabilities to the local industry, enabling Airod to undertake main tenance and repair work on the A400M military airlifter. He said the Airbus-Airod tie-up involves exploring opportunities to develop MRO capabilities for the listing, despite the acquisition plans, it is still going to be around that level.” Ooi said the group aims to keep gearing below 0.7 times going forward, in line with internal targets and rating expectations, even after executing its fleet expansion plans. Beyond its core container busi ness, the group is also diversifying into the chemical tanker segment, targeting the transportation of methanol produced in East Malaysia, estimated at around 4 million tonnes, a segment currently dominated by foreign operators. “There are only two small tankers in this space, so the field is very open for us to capture a reasonable share,” Ooi said. While container margins remain higher, the chemical tanker business offers more stable, contract-based earnings visibility, he added. “If the initial vessels perform well, we will look at expanding further in this segment.” .MTTSL is deploying the bulk of its RM652.5 million IPO proceeds into fleet expansion, in an aggressive push to scale its regional shipping operations and capture rising trade volumes across Asia. The fleet expansion is expected to strengthen MTTSL’s foothold within and beyond Southeast Asia, enabling the group to capitalise on growing

o Container liner shipping operator aims to tap supply chain realignments and expected trade volume growth across Asia

flecting sustained demand across its routes, with its vessels largely operating at full capacity. “MTTSL’s chartering strategy is mainly contract based, with vessels typically secured on one- to three-year agreements. In the current tight market, some counterparties have extended contracts to up to 24 months.” MTTSL has adopted a 50% dividend payout policy, significantly higher than its historical payout of 10% to 15%, as it positions itself to offer stronger yield to investors post listing. “The reason why we pay 50% is because we know investors want a good yield. Before listing, we paid about 10% to 15%, but when coming to market, our advisers told us investors want yield, so we give them yield,” Ooi said. He added that the higher payout is supported by the group’s strong financial position and low leverage. “If you look at our numbers, they are still strong. Our gearing is very low at about 0.5 times, and even post

effectively reduced global shipping capacity, creating tighter market conditions that have driven up charter rates. “In some ways, we are benefiting because effective capacity has been taken out of the system. Therefore, we see charter rates moving up,” Ooi said. At the same time, rising fuel costs have been mitigated through a bunker adjustment factor mecha nism, allowing the group to pass on cost increases to customers, while demand remains resilient. “So far, our volumes remain relatively strong. Our ships are still full. There’s a little bit of port congestion here and there, but otherwise it’s business as usual. We don’t see any negative impact,” he added. Against this backdrop, Ooi said MTTSL is positioning itself as a long term growth play underpinned by strong operating fundamentals. Ooi said the group maintains a utilisation rate of above 85%, re

Airbus deepens footprint in Malaysia’s defence sector with new deals

strengthen cooperation in military satellite communi cations (MilSatCom) by ex ploring technical colla borations to ensure the successful delivery and long term sustainment of Malaysia’s future MilSatCom programme. He said the MoU also paves the way for the development of a comprehensive training

Ikramatic Systems Sdn Bhd. “The MoU concerns the development of capability within Malaysia to establish a Malaysian capability for satellites in support of the NDIP, and to develop local expertise in building satellites for the future,” he told Bernama after the signing of the MoU and LoI yesterday.

solution under the programme and for assessing implementation under the industrial colla-boration programme framework, while Airbus Helicopters

Elaborating on the MoU and LoI with Boustead, Burhanudin said Airbus Defence and Space and Boustead will