18/05/2026

BIZ & FINANCE MONDAY | MAY 18, 2026

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RMCD eases burden on exporters hit by Mideast war

LFG charts course to enter chemical tanker business via vessel acquisition PETALING JAYA: Offshore support vessel and marine transport provider Lianson Fleet Group Bhd’s (LFG) 45%- owned joint venture Nusantara Maritime Sdn Bhd has entered into a memorandum of agreement for the proposed acquisition of MT High Tide , a medium-range chemical tanker for US$28.5 million (equivalent to RM111.85 million). The proposed acquisition marks the group’s first entry into the chemical tanker segment, building upon the joint venture established in March 2025 with Precious Shipping (Singapore) Pte Ltd (a subsidiary of Precious Shipping PLC, listed in Thailand) and Emstraits Navigation Sdn Bhd. The partnership reinforces LFG’s strategic pivot towards diversifying its maritime asset portfolio working alongside experienced and reputable partners. The global chemical tanker industry is poised for continuous growth and is projected to grow at a compound annual growth rate of 5.6% from US$41.2 billion in 2026 to US$63.7 billion by 2034, representing a complementary maritime vertical for the group that will offer differentiated earnings profiles driven by the distinct demand cycles. Barring any unforeseen circum stances, the proposed acquisition is expected to be completed by October. LFG managing director Lim Chern Wooi said, “This investment marks LFG’s first meaningful step into the inter national product tanker market, a segment driven by fundamentally different demand dynamics to our existing fleet. “With experienced joint venture partners alongside us sharing a clear strategic vision, we are building a platform that broadens the group’s earnings base and lays the foundation for long-term value creation in the tanker segment.” Precious Shipping PLC managing director Khalid Hashim said, “We are pleased to partner with LFG and Emstraits in this strategic transaction, which marks an important milestone for Nusantara Maritime as it enters the product tanker segment. By bringing together experienced partners with aligned long-term objectives, we believe this platform is well positioned to pursue opportunities in a complementary shipping sector with distinct market drivers.” Emstraits Navigation said this acquisition reflects a bold yet measured strategy to enter into the tanker segment and they are proud to be part of this journey as they build towards increasing Malaysian participation in this segment.

PETALING JAYA: Carlsberg Brewery Malaysia Bhd reported growth in revenue and net profit for the first quarter ended March 31, 2026 (Q1’26) versus the same quarter last year. The group’s revenue grew by 6.5% to RM705.9 million, while net profit was up by 4.7% to RM98.9 million. The improved earnings were contributed by the longer selling period ahead of Chinese New Year in Malaysia and Singapore. Malaysia operations delivered revenue growth of 9.6% and a 2.9% increase in profit from operations, driven by festive demand and effective market execution. Singapore operations recorded a 3% increase in total revenue in local currency, resulting in higher profit from operations driven by lower operating spend. Reported revenue, however, saw a decline due to the appreciation of the ringgit against the Singapore dollar. Share of profits from the group’s Sri Lanka based associate company Lion Brewery (Ceylon) PLC registered a 23% increase to RM8.3 million, versus RM6.8 million in Q1’25, reflecting improved underlying performance. The group’s earnings per share for Q1’26 were petroleum-based raw materials have strained supply chains. These factors are squeezing margins for manufacturers. Global trade disruptions and changes in various import policies in different parts of the world such as the United States, Europe and the Middle East have added uncertainty. Manufacturers now face higher risks of delays, rejections and rerouted shipments, making planning and competition harder. As a result, goods bound for overseas markets fail to reach their destinations and are returned to Malaysia. When these goods come back, they are likely treated as new imports by the Royal Malaysian Customs Department (RMCD) under current customs rules, often incurring sales tax and customs duties. This creates an added burden for exporters, who have already paid for shipping both ways. Sadly, the law penalises local businesses for circumstances beyond their control and this is where the government needs to step in and support manufacturers to stay competitive. Welcome response by RMCD and the Ministry of Finance (MoF) The RMCD and the MoF have introduced Sales Tax Policy No. 2/2026 in a timely manner, EXPORT-ORIENTED registered manufacturers, especially those reliant on international markets, are under pressure from many angles. Rising oil and gas prices have driven up production, logistics and freight costs, while shortages of

sold locally. Finally, a complete set of documents must be readily available for the RMCD’s review and audit. It must be noted that the current relief is only provided for registered manufacturers and does not include or mention export oriented trading companies which buy from Malaysian manufacturers for the purpose of export. Further, companies that typically do not obtain advice tend to make various mistakes on such reimportation to Malaysia, dis qualifying the exemption and are required to pay the taxes and duties. Moving forward This temporary measure, expiring on Dec 31, 2026, was introduced in response to current geopolitical disruptions. Sales Tax Policy No. 2/2026 is a timely intervention that supports manufacturers and exporters facing extra ordinary challenges. By removing unintended tax burdens, it offers businesses much-needed breathing space. For the policy to achieve its full impact, customs authorities must implement it with flexibility rather than rigid insistence on paperwork. Proactive support and practical guidance will help cushion taxpayers from the difficulties they already face, ensuring the measure delivers genuine relief instead of adding new burdens. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com). consumer spending. Anchored by our strategic priorities and disciplined execution, we remain resilient and agile in responding to evolving market dynamics across Malaysia and Singapore, while continuing to deliver value to consumers and stakeholders,” said Carlsberg Malaysia managing director Stefano Clini ( pic ). On prospects, the group said it remains cautious amid geopolitical tensions, energy and input cost volatility, and broader macroeconomic uncertainty. “Against this backdrop, our priorities for 2026 will centre on disciplined value management, cost optimisation and prudent resource allocation, while we continue to innovate and invest in our brands, brewery capabilities and digital transformation initiatives. “In addition, we are proactively monitoring and managing any potential supply chain risk related to Middle East tensions to ensure operational continuity. Through consistent execution and financial discipline, we aim to strengthen resilience and reinforce our commitment to long-term sustainable value creation,” Clini said.

offering relief to exporters by easing the financial burden on goods that had to be reimported due to Middle East disruptions. More importantly, this policy removes the unfair tax liability and helps manufacturers keep their busi nesses running during very challenging global conditions. The measure comes with strict conditions to ensure proper use and prevent misuse. What are the reliefs and conditions? The policy waives import duty and sales tax on Malaysian-made goods that were exported but had to be reimported due to disruptions from the Middle East conflict, subject to conditions. The same manufacturer who originally exported the goods must handle the reimportation with clear proof such as documented evidence linking it to the Middle East conflict, security factors, port closures or inaccessibility, shipping reroutes or delays or cancellation by buyers as well as relevant documentation including verification from the shipping companies, agents or buyers. Goods must be identical without sub stitution or replacement, match the quantity originally exported, and remain under the manufacturer’s ownership and control until its subsequent export from Malaysia. The goods exempted must be re-exported within six months and this period is extendable, subject to additional approval, or else duties and taxes will be levied if the goods are not re-exported within the stipulated time or if the goods are

Carlsberg Malaysia posts higher Q1 revenue and profit, declares 24 sen interim dividend

32.36 sen, compared to 30.91 sen in Q1’25. The board of directors announced an interim dividend of 24 sen per share for the first quarter ended March 31, 2026. “We delivered a commendable first quarter on favourable Chinese New Year timing, despite heightened global uncertainty and subdued

Velesto secures first asset-light rig contract from Hibiscus PETALING JAYA: Velesto Energy Bhd, through wholly owned subsidiary Velesto Drilling Sdn Bhd, has secured a contract from Hibiscus Oil & Gas Malaysia Ltd, marking the group’s first contract utilising a third-party jack-up rig under a charter arrangement. The contract is for the provision of a jack-up drilling rig for Hibiscus’ 2026 offshore drilling campaign in Malaysia. The firm scope of work covers the drilling services of eight plug and abandonment wells and one exploration well, with up to seven optional wells. Operations are scheduled to commence this month across the PM3 Commercial

“As our first asset-light arrangement, it broadens how we can execute projects while maintaining the same discipline and consistency in how we operate. This gives us greater flexibility in responding to market opportunities and supporting our clients’ needs.”

Arrangement Area and, if the optional wells are exercised, north Sabah, offshore Malaysia. Velesto president Megat Zariman Abdul Rahim said, “This award reflects Velesto’s ability to support our clients in different ways while maintaining the same focus on opera tional excellence, safety and performance.