25/04/2026

BIZ & FINANCE SATURDAY | APR 25, 2026

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Malaysian Paper

/thesundaily /

Feather in the cap for UMW Aerospace

space’s second contract with Rolls Royce, following its initial engagement to supply front fan cases. With this milestone, both front and rear fan cases supplied to Rolls Royce are now 100% Malaysian made. UMW Aerospace managing director Fariz Hashim said the rear fan case is more than a component – it reflects the depth of capability the company have built and the confidence placed to deliver at the highest industry standards. Rolls-Royce vice-president, sup plier management, Simon Royle said the delivery reflects the maturity and capability of UMW Aerospace as a long-standing partner, giving confi dence in their support for the company’s engine programmes. The rear fan case programme developed and delivered by UMW Aerospace, established a compre hensive production framework, which includes manufacturing pro cesses, specialised tooling and inspection, leading to approval for serial production. The company’s capabilities are strengthened by its investment in advanced chemical milling, posi tioning it as the only company in Malaysia with this expertise. The intellectual property for this capability was developed in-house and is owned by UMW Aerospace.

KUALA LUMPUR: Strengthening fiscal protection must be priori tised to safeguard economic stability and public welfare, particularly as global uncertainty persists, an economist said. Universiti Putra Malaysia senior lecturer, Department of Accounting, School of Business and Economics, Dr Siti Zaidah Turmin ( pic ) said reinforcing the fiscal position is critical, as government financial stability directly affects the country’s capacity to shield households from cost pressures. “When the government safe guards its fiscal position, it indirectly protects the people, as fiscal stability allows continued support for the economy,” she told Bernama. She said current conditions underscore the need to refine government spending, including a gradual shift from broad-based subsidies to more targeted measures. Targeted subsidies would ensure assistance reaches those most in need, while improving public spending efficiency and contributing to a narrower fiscal deficit over the medium term. However, she said existing subsidies remain important in cushioning households from price shocks, and any reforms should be implemented gra dually to balance fiscal require ments with public welfare. PETALING JAYA: UMW Aerospace has delivered the first 100% Malaysian-made rear fan case to Rolls-Royce plc, marking a signi ficant milestone in the company’s manufacturing capabilities and reinforcing Malaysia’s role in the global aerospace value chain. The achievement was com memorated at an event graced by the Raja Muda of Selangor Tengku Amir Shah ibni Sultan Sharafuddin Idris Shah. Also present were Selangor Menteri Besar Datuk Seri Amiruddin Shari, representatives from Rolls Royce, industry leaders and senior government officials. The rear fan case programme reinforces Sime UMW’s presence in the aerospace industry and expands UMW Aerospace’s role into the production of a critical engine com ponent previously manufactured in the United States. Secured in 2022, the rear fan case programme represents UMW Aero o Achieves significant milestone by delivering first 100% Malaysian made rear fan case to Rolls-Royce

From left: UMW Aerospace head of plant Luqman Hakim Baharudin, Fariz, Tengku Amir Shah and Amiruddin during a plant tour of UMW Aerospace.

The progress has been supported by the Selangor government, whose facilitation has helped enable the development of advanced manu

facturing capabilities in the state. Talent development remains a core focus for the company, anchored by strong links with local

universities and TVET institutions. This approach has enabled UMW Aerospace to build a 100% Malaysian workforce.

Malaysian bond yields ease as domestic support offsets global risks KUALA LUMPUR: Malaysian

Reinforcing fiscal position vital for economic stability amid world uncertainty, says expert

the ceasefire extension triggered fresh USD safe-haven demand. “USD/MYR moved higher Thursday as risk appetite faded, heightening concerns over prolonged oil-price pressure and inflation pass-through. “Consequently, investors rotated into the USD while reducing exposure to pro-growth EM currencies,“ it said. The firm said next week brings a high-stakes sequence of policy decisions from BOJ, Fed, ECB and BoE. Markets will dissect forward guidance for signals on managing the oil shock and inflation risks. The BOJ could lean hawkish on normalisation while the Fed is expected to hold rates with measured commentary, Kenanga IB said. The ECB and the BoE will grapple with persistent inflation that may constrain easing. These outcomes will shape sentiment toward Asian EM currencies. “On outlook, a permanent ceasefire by end-2Q26 forms our baseline assumption. “While this would reverse most oil gains, significant lagged pressures from energy and fertiliser would delay inflation relief and near-term easing. “We maintain that the Fed will pause before cutting only in Q4 26. Investors will adopt cautious emer ging market positioning awaiting diplomatic breakthroughs and central bank clarity. “We expect USD/MYR to con solidate in the 3.94-3.98 range with mild downside bias on any sustained de-escalation progress,“ Kenanga IB said.

yields mostly rose across the curve during the week, moving between - 2.1 to 6.0 bps. The 10-year yield increased 1.3 bps to 4.324%, while the two-year yield rose 6.0 bps to 3.834%. Kenanga IB said the renewed Strait of Hormuz tensions, despite the ceasefire extension, stoked safe-haven selling and inflation concerns. “Elevated energy prices and fertiliser-driven food price risks reinforced duration aversion. Resilient US retail sales further weighed on Treasuries,“ it said. The firm noted that Kevin Warsh’s Senate testimony reaffirmed Fed independence but offered no near term easing signals, further curbing demand for Treasuries. On outlook, Kenanga IB said UST yields will stay elevated as the US-Iran conflict sustains inflation risks and delays rate-cut pricing. Markets will scrutinise US ADP employment, Core Personal Con sumption Expenditures, first-quarter 2026 gross domestic product, jobless claims and manufacturing data for confirmation that growth and price pressures remain incompatible with early easing, it added. “We expect the FOMC to hold rates, with oil above USD100.0/bbl and sticky inflation set to dominate the policy narrative,“ Kenanga IB said. On the currency front, Kenanga IB said the ringgit weakened to RM3.97/USD on Thursday after holding near RM3.95/USD earlier in the week. Kenanga IB said Iranian vessel seizures in the Strait of Hormuz despite

Government Securities (MGS) and Government Investment Issues (GII) yields continued to fall this week, declining 1.1 to 2.7 bps. The benchmark 10-year MGS fell 2.4 bps to 3.553%, while the 10-year GII fell 1.6 bps to 3.570%. Kenanga Investment Bank Bhd (Kenanga IB) said the strong domestic demand and a robust 20-year MGS auction (bid-to-cover 2.88x) drove local yields lower. Further, the firm said S&P Global’s positive rating outlook reinforced confidence in narrowing fiscal deficits and stable macro fundamentals. “These domestic tailwinds offset global pressures from elevated oil prices and lingering US-Iran tensions in the Strait of Hormuz,“ Kenanga IB said. On flows and outlook, Kenanga IB said foreign investors added RM1.4 billion to government bond holdings last week, underscoring offshore support. Domestic fundamentals will keep MGS and GII yields anchored next week despite geopolitical risks, it added. Attention shifts to the Bank of Japan, US Federal Reserve, European Central Bank and Bank of England (BOJ, Fed, ECB and BoE) meetings, where forward guidance on oil-shock management will shape emerging markets bond sentiment. Trading activity is expected to stay light ahead of the Fed’s Federal Open Market Committee), Kenanga IB said. Touching on United States Treasuries (UST), Kenanga IB said

In the near term, she said, accelerating the adoption of alternative energy sources could help reduce reliance on con ventional fuels. “Malaysia has strong potential in solar energy due to its geographical advantage of year round sunlight, creating oppor tunities for more sustainable energy development. “A transition to alternative energy can reduce exposure to global energy price volatility and support long-term economic stability,” she said. On recent developments, she said they serve as a reminder for Malaysia to further strengthen its economic strategy and reduce reliance on external factors, particularly in energy and supply chains.