09/05/2026

BIZ & FINANCE SATURDAY | MAY 9, 2026

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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Economy resilient amid West Asia risks: BNM chief

FY25 profit increases despite tough operating environment

KUALA LUMPUR: Malaysia’s economy remains resilient despite mounting risks from the ongoing West Asia conflict, supported by strong domestic demand, sustained investment activity and robust exports linked to the global technology and artificial intelligence (AI) upcycle. Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour ( pic ) said Malaysia’s growth momentum remains intact, underpinned by private consumption, ongoing multi-year investment projects and continued implementation of government development initiatives. “Growth momentum is continuing, driven by domestic demand and strong exports. Investment and consumption are still holding up. This will help drive Malaysia’s growth for the rest of the year. “Employment conditions remain good. Unemployment stood at 2.9% in February. Wages are still growing and government policy support remains in place to sustain consumption,” he told Bernama. Abdul Rasheed said targeted support and subsidies would help cushion household spending amid rising global uncertainties. He also noted that strong global demand for AI- and digitalisation-related investments has supported Malaysia’s growth in the first quarter of 2026 (Q1’26), with the momentum likely to continue into the second half of the year. Additionally, projects approved by Malaysian Investment Development Authority continue to record high realisation rates, while government spending under Budget 2026 and the 13th Malaysia Plan is expected to support economic activity. Beyond this, Malaysia’s financial sector remains strong, ensuring continued finan cing for the economy despite current stress. On the gross domestic product growth forecast of 4% to 5% for 2026, Abdul Rasheed The group bagged the Kaohsiung Metropolitan Mass Rapid Transit (MRT) Xiaogang-Linyuan Line civil works and electromechanical facilities project, valued at RM3.3 billion (NT$26.39 billion). The project was awarded by the Taiwan Kaohsiung City Government Mass Rapid Transit Bureau, an MRT division established under the Taiwan Kaohsiung City Government. This latest win solidifies Gamuda’s pro minent role in Kaohsiung’s rail transformation, building on the group’s ongoing delivery of the Kaohsiung MRT Yellow Line Package YC01 and its foundational success with the city’s MRT Orange Line Package C04. The new project was awarded to an unincorporated joint venture between Gamuda, which holds a 70% stake, and Taiwanese-based Shang Ting, which holds a 30% stake. With its majority stake, Gamuda’s share of the contract value is RM2.31 billion (NT$18.47 billion). The project has a duration of seven years and four months. As the main contractor, the joint venture’s scope of works includes three underground stations, one elevated station, 3.88km of underground twin-bound railway track, and six

o Malaysia’s growth momentum intact, underpinned by private consumption, ongoing investment projects and implementation of development initiatives, says governor

“Price pressures remain contained for now, but we must stay vigilant. We are alert and monitoring developments very closely,” Abdul Rasheed said. He gave an assurance that BNM would continue to closely monitor developments in West Asia and conduct ongoing assessments of their impli cations for Malaysia’s growth and inflation outlook. He added the country had undertaken reforms to streng then its resilience and ability to absorb external shocks, while policymakers would prudently utilise available fiscal and

said BNM has already factored in the impact of the West Asia conflict, including higher energy prices, supply chain disruptions and uncertain global growth momentum. “Our range is wide enough to

PETALING JAYA: British American Tobacco (Malaysia) Bhd (BAT Malaysia) navigated a challenging operating environment in FY25, marked by tighter vapour regulations, higher tobacco excise duties, the implementation of the retail display ban and updated pictorial health warnings. Despite the headwinds, the group delivered a resilient performance driven by rigorous cost optimisation and sharpened focus on its core combustible business. The group’s profit from operations increased by 9% in FY25 compared to the previous financial year, reflecting disciplined cost management and a continued focus on its combustible portfolio. Revenue was recorded at RM2.18 billion, a 5% reduction from the previous year, driven by regulatory developments, high illicit incidence, and affordability pressures. Despite the pressures, net profit grew by 11% year-on-year, underpinned by disciplined cost management. Further, the group continued to deliver sustainable value to shareholders, maintaining a robust dividend payout of 90% of total earnings. For FY25, the dividend was increased to 63.5 sen, up from 59 sen in the previous year. BAT Malaysia noted a marginal decline in the tobacco black market from 55% in 2024 to 54.4% in 2025, attributable to enforcement efforts. BAT Malaysia managing director Nedal Salem said the group’s unwavering focus remains on its key brands, with Dunhill leading Malaysia’s premium category, and Peter Stuyvesant and Rothmans delivering across other important segments. “We are sharpening our brand strategies to invest in products with the greatest potential for long-term, sustainable returns, ensuring BAT Malaysia remains competitive, adaptable and a consistent creator of shareholder value,” he said after the group’s 65th annual general meeting yesterday. The group also continues to face external pressures, with the tobacco black market re maining the industry’s single largest challenge, accounting for almost 55% of total market volume. “Enforcement agencies have made notable progress in tackling the tobacco black market, resulting in a marginal decline in illegal volumes. “While these achievements demonstrate the impact of coordinated action, more needs to be done from a strategic perspective to fully restore market integrity. The group stands ready to work with authorities and policymakers to strengthen the legal market and safeguard tax revenue for the country,” Nedal said. Looking ahead, he said BAT Malaysia will continue to focus on disciplined execution, stronger brand prioritisation and enhanced route-to-market capabilities, which gives confidence in the group’s ability to navigate ongoing challenges and deliver sustainable value for shareholders.

capture the current risks. We had already taken this into account when setting the 4% to 5% forecast,” he said, adding that, nonetheless, conditions remain uncertain, with the impact on Malaysia depending on the intensity and duration of the conflict. Abdul Rasheed also noted that international projections remain within BNM’s range, with the World Bank forecasting 4.4%, the Asean+3 Macroeconomic Research Office 4.6% and the International Monetary Fund 4.7%. He said the current Overnight Policy Rate at 2.75% is appropriate and consistent with the Monetary Policy Committee’s latest growth and inflation outlook. At the same time, he acknowledged that the impact of the West Asia conflict had started to filter into higher price pressures, with Malaysia’s inflation rate rising to 1.6% in Q1’26 from 1.4% a year earlier. However, the pass-through of higher global costs into domestic prices remains contained due to subsidies, price controls, and enforcement measures against profi teering.

monetary policy buffers going forward. Abdul Rasheed, who is also a member of the National Economic Action Council, said the government’s initial priority amid the West Asia conflict was to ensure sufficient domestic fuel supply and maintain adequate stockpiles. He said authorities have been closely monitoring supply levels, including assessing existing reserves and securing alternative sources should disruptions occur in current supplier countries. Abdul Rasheed also noted that Malaysia benefits from the global network and capabilities of Petroliam Nasional Bhd, which enabled the national oil company to source crude oil and feedstock from various markets if necessary.

Gamuda marks tenth win in Taiwan with Kaohsiung MRT project PETALING JAYA: Gamuda Bhd has marked a significant milestone in its international portfolio, securing its tenth infrastructure project in Taiwan. Gamuda’s latest win solidifies the company’s prominent role in Kaohsiung’s rail transformation.

disciplinary infrastructure, ranging from railway systems to large-scale marine works. The group’s portfolio in Taiwan also includes projects such as the Xizhi Donghu MRT and the Taoyuan City Underground Railway. Beyond rail, Gamuda has Guantang Marine Bridge, Seawall-Taipei Port and the 345kV Gangfeng-Zhongke, Zhongke-Hengshan Underground Transmission Line (Third Section). Gamuda’s partner in this joint venture for Xiaogang–Linyuan Line, Shang Ting, is a reputable Taiwanese private limited company with a paid-up capital of NT$3 billion (RM380 million).

units of cross passages. Coming less than a year after the group secured its ninth contract, the Kaohsiung Port Intercontinental LNG Terminal – wharf and connecting roads (bridges), this milestone highlights a period of rapid momentum and a deepening footprint within the Taiwanese market. Since entering the Taiwanese market in 2002, Gamuda has evolved into a trusted partner for the nation’s infrastructure development. This tenth win reinforces the group’s expertise in managing complex, multi