01/05/2026

BIZ & FINANCE FRIDAY | MAY 1, 2026

14

Wars, not Opec, driving oil markets, says economist

First-quarter net profit rises to RM72.8 million KUALA LUMPUR: Bursa Malaysia Bhd’s net profit for the first quarter ended March 31, 2026 rose to RM72.83 million from RM68.42 million in the same period last year. Revenue increased to RM214.07 million from RM184.37 million previously, while operating revenue grew 16.4% year-on-year (y-o-y) to RM206.9 million, supported mainly by higher securities trading activity as well as increased listing and issuer fees. It said in a filing on Bursa Malaysia yesterday that in the securities market, average daily trading value for on market trades increased 27% y-o-y to RM3.3 billion, supported by broad participation across investor seg ments. “Fundraising activity was encouraging in 1Q 2026, with 16 Initial public offerings (IPOs) across the Main, ACE and Leap Markets. The total market capitalisation increased by 11.4% y-o-y, reaching RM2.1 trillion in 1Q 2026,” it said. Bursa Malaysia CEO Datuk Fad’l Mohamed said the exchange delivered a positive start to the year, which saw higher trading activity and a strong listing pipeline, reflecting confidence in the Malaysian capital market. “Building on this performance, market development priorities were progressed to strengthen the quality, accessibility and breadth of the capital market ecosystem. “This included measures to improve equity market visibility through Bursa Malaysia Quality 50 and Quality 50 Shariah indices, broaden access to derivatives through the Mini FTSE Bursa Malaysia KLCI Futures, and enhance cross-border connectivity through collaboration with Hong Kong Exchanges and Clearing Ltd,” he said. On the outlook, he said that as 2026 progresses, Malaysia’s capital market continues to operate within a resilient domestic environment, supported by steady economic growth and policy certainty. “With gross domestic product growth projected at 4.0% to 5.0%, this backdrop provides a constructive foundation for investment and capital market activity. “Against this landscape, Bursa Malaysia remains focused on fulfilling its role as a trusted market operator, strengthening market vibrancy and supporting sustainable capital form ation to meet the evolving needs of investors, issuers and the broader economy,” he added. Bursa Malaysia said Derivatives Market activity increased, with average daily contracts traded rising 5.2 per cent y-o-y to 107,487 contracts, driven mainly by higher crude palm oil futures trading. “The Islamic market remained resilient, with average daily trading value of RM50.7 billion on Bursa Suq Al Sila’ “Meanwhile, non trading revenue expanded by 19.3%y-o-y to RM79.3 million, representing 38% of operating revenue,” it said. – Bernama

were down US$2.05, or 1.7%, to US$115.98 a barrel as of 1016 GMT, after touching an intraday high of US$126.41, the loftiest since March 9, 2022. The more active July contract was at US$109.93, down 51 cents or 0.5%. Trump has warned that a US naval blockade at the Strait of Hormuz could last for months. Jomo also pointed to a longer running shift in the global monetary system, saying moves towards de dollarisation began well before current geopolitical tensions.

o United Arab Emirates exit from organisation unlikely to have immediate impact on prices, but points to shifting alignments among producers: Jomo

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

the UAE is not siding with the producers, and the unity among producers to try to cooperate on determining oil prices.” On the longer-term outlook, he was cautious about drawing firm conclusions, noting that much depends on how current tensions evolve. “Usually when we do any analysis, we must be aware of the current situation, what has happened previously, and what may happen in the future,” Jomo said. Reuters reported that global oil prices retreated after hitting a four-year high of more than US$126 (RM500.34) a barrel yesterday on concerns that the US-Iran war could worsen and lead to a protracted Middle East oil supply disruption that could hurt global economic growth. Earlier in the day, the market moved higher after Axios, citing unidentified sources, reported late on Wednesday that US President Donald Trump was slated to receive a briefing yesterday on plans for a series of military strikes on Iran in hopes it will return to negotiations on its nuclear programme. Prices later dropped without any obvious catalyst. Global oil benchmark Brent crude futures

KUALA LUMPUR: Oil prices are increasingly being driven by risk and uncertainty rather than production decisions, economist and former United Nations assistant secretary-general Jomo Kwame Sundaram ( pic ) said. He said recent price movements reflect geopolitical tensions more than coordinated output cuts or increases by producers. Jomo was speaking to reporters at the Allianz Centre for Governance Speaker Series titled “The New World Order Is Not Order, Let Alone New” yesterday. “The question of oil prices now is not determined very much by Opec. It is determined more by wars and war tactics – not only by Iran but also by the United States,” he said. Jomo’s remarks come as Opec (Organization of the Petroleum Exporting Countries) faces fresh questions over its influence, following the United Arab Emirates’ (UAE) decision to exit the group effective today, after nearly six decades. Jomo said the move is unlikely to have an immediate impact on prices, but it points to shifting alignments among producers. “What is clear is that The group recorded a profit before tax of RM476.9 million, sustaining its positive perfor mance trend over the past five years. Total assets expanded to RM56.2 billion, underpinned by prudent capital and liquidity management. Group chairman Datuk Bakarudin Ishak said, “2025 was a pivotal year for the group, marked by stronger market presence and deeper engage ment with key stakeholders, supported by disciplined funding execution and a streng thened risk culture.” During the year, Cagamas raised a record RM31.3 billion through bonds, sukuk and other funding instruments, the highest annual fundraising amount in the group’s history. This supported the acquisition of RM23.4 billion in loans and financing under the Purchase with Recourse Programme, reinforcing Cagamas’ role as the preferred market liquidity provider. To support future funding needs and enhance flexibility, the group established a new RM80 billion medium-term notes and an Islamic medium-term notes programme. Further, investor engagement remained a key priority with the successful organisation of the inaugural Cagamas Investor Forum, which brought together investors, regulators and stake holders to exchange insights on performance, strategy and sustainability initiatives. The group continued to strengthen its risk culture through robust governance, clear risk appetite settings and effective controls, with capital indicators remaining comfortably within prudent thresholds.

He said the trend has been visible in Asia since the 1997-1998 financial crisis, when countries began exploring alternatives and strengthening regional arrangements such as the Chiang Mai Initiative. “For a long time, we have found, for example, in this region, since the currency crisis in 1997 1998, many people have sought alternatives. As a result, we find that more transactions between countries are no longer using the dollar as the global currency.” Jomo said changing investor behaviour – including increased interest in gold and silver – also reflects waning confidence in the US dollar. “When many people buy gold or silver, it reflects that they feel less secure with the dollar. They are looking for alternatives,” he said. “Taken together, developments in oil markets and currency systems point to a broader pattern of weakening global coordination.”

Cagamas sustains resilience, assets grow to RM56.2b PETALING JAYA: Cagamas Holdings Bhd reported a resilient performance for its financial year ended Dec 31, 2025 (FY25), underpinned by disciplined execution, with agility in business strategies and tactical execution, as well as stronger engagement with investors and stakeholders.

Bakarudin (left) and president/CEO Kameel Abdul Halim at Cagamas’ annual general meeting. Sustainability remained central to Cagamas’ mandate in 2025. A key milestone was the launch of the Green Mortgage Guarantee Programme, which supports energy-efficient housing and encourages environmentally responsible home ownership.

the B40 income segment. “Looking ahead, Cagamas will continue to strengthen its core capabilities, deepen investor relationships and enhance operational dis cipline, while remaining focused on our mandate to support market liquidity and sustainable growth. “We thank our investors, partners and stakeholders for their continued support as we build on the progress achieved in 2025,” Bakarudin said.

The group continued to facilitate affordable housing nationwide. Since its inception, Cagamas has supported housing financing for about 2.3 million homes, including assistance to more than 110,000 first-time homebuyers, the majority from