08/05/2026

BIZ & FINANCE FRIDAY | MAY 8, 2026

20

MARKETS/FROM THE BROKERS

SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors.

DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shall not be liable or responsible for any consequences resulting from usage of the information.

[ Compiled by SunBiz Team

Wasco powers Kajang plant with biomass steam KUALA LUMPUR: Renewable energy system provider Wasco Greenergy Bhd has installed and commissioned a biomass steam energy system at a pioneer paper manufacturing facility in Kajang, Selangor, with a built-up area of approximately 3,000 sqm. In a statement, Wasco said the system was designed and manufactured by its subsidiary Wasco Thermal Sdn Bhd, and was built to deliver high-efficiency and power generation at scale. “Fuelled primarily by treated empty fruit bunches, the system is engineered to achieve a utilisation rate of over 80%, reducing reliance on conventional fuels and the national grid,” it said. The system is projected to generate up to 500,000 megawatt hours of renewable thermal energy annually, substantially reducing CO ĸ emissions while supporting industrial clients in enhancing long-term energy planning and operational efficiency. It also creates opportunities for carbon credit generation, reinforcing the role of biomass in supporting low-carbon industrial operations. Wasco Greenergy CEO Lee Yee Chong said by empowering industries to convert agricultural waste into a reliable energy source, the group is supporting Malaysia’s ambitions under the National Energy Transition Roadmap and aligning with the objectives of the National Biomass Action Plan. “In doing so, we are accelerating the shift towards a low carbon energy system while enabling more resilient and cost efficient operations for our clients,” he said. Through its engineering, procurement, construction, and commissioning services and innovative build-own-operate models, Wasco Greenergy provides industrial clients with flexible pathways to adopt renewable energy. – Bernama

Ringgit continues gains after OPR kept at 2.75%

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit extended its gains yesterday, closing firmer against major currencies and most regional peers following Bank Negara Malaysia’s (BNM) move to maintain the Overnight Policy Rate (OPR) at 2.75%. The central bank, in a statement issued after its Monetary Policy Committee meeting yesterday, said that at the current OPR level, the monetary policy stance is appropriate and consistent with the outlook for continued price stability and sustainable economic growth. At 6pm, the ringgit also rose against the US dollar to 3.9070/9115 from 3.9230/9275 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said BNM’s decision to keep the OPR unchanged had been mostly anticipated by economists. The attention shifts to BNM’s accompanying statement, he said, noting that it has become more dovish in its economic assessment. At the close, the ringgit traded higher against a basket of major currencies. It strengthened versus the Japanese yen to 2.4982/5013 from 2.5159/5191 at Wednesday’s close, rose against the British pound to 5.3202/3263 from 5.3443/3504 on Wednesday, and edged up vis-a-vis the euro to 4.5978/6031 from 4.6189/6242 previously. The local currency was mostly higher against regional peers. It gained against the Singapore dollar to 3.0861/0901 from 3.0946/0986 at Wednesday’s close, advanced versus the Thai baht to 12.1486/1687 from 12.1866/2074 previously, and inched up vis a-vis the Indonesian rupiah to 225.4/225.7 from 225.6/225.9. – Bernama Economy Malacca Strait stays clear of Hormuz fears

1 US Dollar

3.9990 2.9000 3.1450 2.9220 4.6890 2.3820 3.1450 5.4250 5.1510 3.3090 58.9100 64.3300 51.4200 4.3000 0.0240 2.5700 43.9800 1.4900 6.6700 110.5400 107.4000 25.1800 1.3100 44.4600 12.9100 109.7800 N/A

3.8520 2.7820 3.0450 2.8390 4.5350 2.2940 3.0450 5.2500 4.9300

3.8420 2.7660 3.0370 2.8270 4.5150 2.2780 3.0370 5.2300 4.9150

1 Australian Dollar 1 Brunei Dollar 1 Canadian Dollar 1 New Zealand Dollar 1 Singapore Dollar 1 Sterling Pound 1 Swiss Franc 100 UAE Dirham 100 Bangladesh Taka 100 Chinese Renminbi 100 Danish Krone 100 Hongkong Dollar 100 Indian Rupee 100 Indonesian Rupiah 100 Japanese Yen 100 New Taiwan Dollar 100 Norwegian Krone 100 Pakistan Rupee 100 Philippine Peso 1 Euro

104.0500 3.0810 56.4000 59.1600 48.8300

103.8500 2.8810 58.9600 48.6300 3.8000 0.0162 2.4410 40.2400 1.1300 6.0700 104.7400 101.7600 22.5300 0.9400 40.2800 11.0400 N/A N/A

4.0000 0.0212 2.4510

N/A

40.4400 1.3300 6.2700 104.9400 101.9600 22.7300 1.1400 40.4800 11.4400

100 Qatar Riyal 100 Saudi Riyal

100 South Africa Rand 100 Sri Lanka Rupee 100 Swedish Krona

100 Thai Baht

Source: Malayan Banking Bhd/Bernama

Healthcare Overweight

Sime Darby Bhd Buy. Target price: RM2.55

May 7, 2026: RM2.17

Source: Centre for Strategic & International Studies

Source: Bloomberg

Source: World Bank

RISING tensions in the Strait of Hormuz have heightened global sensitivity around key maritime chokepoints, with policymakers increasingly aware that disruptions — even when legally questionable — can persist and reshape trade dynamics. Against this backdrop, attention is now shifting closer to home, particularly toward the Strait of Malacca, one of the world’s most critical trade arteries. This renewed focus comes amid a step-up in defence cooperation between Indonesia and the US, formalised through a Major Defence Cooperation Partnership in April 2025. While the agreement centres on military modernisation, training, and operational cooperation, it has contributed to a growing perception of increased US strategic presence in the Southeast Asia region. At the same time, recent remarks by Indonesian officials on the possibility of imposing a levy on ships transiting the strait have added a new layer of uncertainty. Taken together, these developments point to a more complex and evolving strategic environment. As Indonesia balances its non-aligned stance — while deepening ties with both the US and BRICS economies including China and Russia — the Strait of Malacca is increasingly seen not just as a trade route, but as a focal point of geopolitical and economic tension. The Strait of Malacca sits at the core of the global trading system, acting as the shortest and most cost-efficient maritime link between the Indian Ocean and the South China Sea. Stretching about 900–930km between Peninsular Malaysia and Sumatra, Indonesia, it connects key economic regions — from Europe and the Middle East to South and East Asia — and serves as the primary sea route between major economies such as India and China. – TA Research, May 7

MEDICAL inflation driven by rising utilisation. The World Bank’s recent study on the Centralised Claims Database indicates that c.67% of cost growth is driven by higher utilisation, rather than pricing (26%). The report also highlights two structural issues in private healthcare: i) There is a high incidence of avoidable inpatient admissions that could be managed by primary or outpatient settings; and ii) the dominance of Hospital Supplies and Services (HSS) billings, which are susceptible to over-servicing and provider-induced demand to optimise revenue. HSS – which is largely unregulated – account for 70% of inpatient bills, with evidence of increasing share. Separately, a media report indicated that, effective May 1, all insurance and takaful operators must cease offering medical and health insurance/takaful (MHIT) products with excessively high annual claim limits, in line with Bank Negara Malaysia’s (BNM) directive. This is aimed at curbing the cycle of escalating private medical costs and insurance premiums, forming part of the broader RESET strategy. KPJ remains our Top Pick amid tightening policy conditions. Our core thesis remains intact: i) Its lower exposure to medical tourism (6% of revenue vs peers’ 14–15%) positions it as a more defensive, domestic-focused play, with any rebound in international patients offering stronger incremental upside; ii) its secondary care focus places it as a key beneficiary of MHIT spillover, capturing volume from the price-sensitive M40 segment while limiting exposure to insurance-driven downtrading; and iii) ongoing Centres of Excellence (COE) initiatives provide clear visibility on improving revenue intensity through higher complexity, higher-margin care. – RHB Research, May 7

THE Investment, Trade, and Industry Ministry (MITI) has announced a new policy on EVs that is inherently negative for EV CBU players like Sime Darby. From July 1, CBU EVs will need to have a minimum CIF value of RM200k and power output of 180kW. This signals a blanket requirement for all CBU EVs in Malaysia, whether existing or upcoming. Assuming a CIF value of RM200k and accounting for taxes of 25% for China-imported EVs, this translates to an on-the-road or OTR price of RM250k, excluding distributor margins. Most EVs in Malaysia are priced at