19/05/2026

BIZ & FINANCE TUESDAY | MAY 19, 2026

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Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Malaysia has capability for 100% palm biodiesel: Scientist

KUALA LUMPUR: Malaysia has had the technical capability to com mercialise 100% palm biodiesel for more than four decades, with the level of industry participation and manu facturer backing during earlier large scale trials, said veteran scientist Tan Sri Augustine Ong Soon Hock. He also said this reflected confi dence that the fuel was both technically workable and com mercially viable. Ong questioned why the country is still moving cautiously on wider biodiesel adoption even as rising geopolitical tensions and energy security concerns revive global interest in alternative fuels. “We successfully conducted large scale trials using 100% palm biodiesel 45 years ago, including collaborations with Mercedes-Benz, but failed to commercialise the technology more aggressively,” he told reporters after the opening of the International Invention, Innovation and Tech nology Exhibition 2026 (Itex 2026) at the Kuala Lumpur Convention Centre yesterday. Ong, who previously served as director-general of the Palm Oil Research Institute of Malaysia, which is now part of the Malaysian Palm Oil Board, said the biodiesel blending process itself was relatively straight forward and did not require highly sophisticated infrastructure. “The process of blending is just stirring, just like you stir your coffee. What technology is required then? No technology at all,” he said, arguing that the technical barriers to wider biodiesel adoption were often over stated. Ong expressed frustration that the country is still debating wider biodiesel adoption despite having

o We conducted successful large-scale field trials over four decades ago but failed to commercialise technology aggressively, says Augustine Ong

earlier results?” he said. Malaysia should revisit sus tainable aviation fuel and broader palm-based renewable fuel initiatives more seriously, Ong said. According to the government, Malaysia has 34 biodiesel blending depots, most of which were originally designed to support B10 capacity. Malaysia currently mandates a B10 biodiesel blend for motorists, comprising 10% palm biodiesel and 90% petroleum diesel. The government recently announced plans to raise the mandate to B15, with production at 19 licensed biodiesel plants set to begin on June 1, 2026, as part of efforts to reduce dependence on imported fossil fuels, strengthen energy resilience and ease pressure from rising diesel prices. The government said the pro gramme could eventually expand to B20 and potentially even B50 within the next two to three years. Indonesia currently operates a

proven the technology through extensive field trials more than 45 years ago. He said Malaysia had previously carried out extensive long-term biodiesel trials involving vehicles operating entirely on palm biodiesel, including buses that ran con tinuously over several years under real operating conditions. “We have done 100% biodiesel. We have tried Dongfeng bus running three years, 300,000km, collaborating with Mercedes-Benz. We have done a lot of work,” he added. According to Ong, the biodiesel programme at the time involved collaboration with Mercedes-Benz, which had guaranteed the engines used during the trials despite the vehicles operating fully on biodiesel. “Mercedes-Benz said you use biodiesel, we guarantee your engine. Why is Malaysia still hesitant to scale wider biodiesel adoption despite the

Ong speaking after the official opening of Itex 2026.

deployment. The 37th edition of Itex features more than 1,000 inventions from 17 countries and regions across 10 categories and 15 classifications. Organisers said 70% of the innovations showcased this year are market-ready, with many already reaching Technology Readiness Level 6 and above, reflecting growing emphasis on industrial scaling, licensing opportunities and com mercial adoption.

B40 biodiesel mandate and is preparing to move towards B50, while Malaysia remains largely at B10 nationwide. Itex 2026, themed “AI Unleashed: Pioneering Research and Innovation with Generative AI”, opened with a stronger focus on commercialisation, artificial intelligence and investment ready technologies, as organisers positioned the exhibition as a platform to move innovation beyond research and prototypes into market

Affin Group turns in steady Q1’26 performance

PETALING JAYA: Affin Group reported profit before tax (PBT) of RM180.9 million for the first quarter ended March 31, 2026 (Q1’26), an increase of RM2.7 million or 1.5% compared to RM178.2 million in the previous year’s corresponding. The increase in PBT was primarily attributed to higher net income by RM110.5 million, partially offset by higher operating expense by RM31.6 million, higher allowance for impair ment losses of RM60.2 million and lower share of results from associates of RM16 million. Gross loans and financing marked a year-on-year growth of 12.6%, achieving a value of RM82.1 billion, compared to RM72.9 billion as at March 31, 2025. Customer deposits increased by 3.5% to RM78.1 billion. The group’s total asset base expanded to RM125.7 billion, driven primarily by this continued growth in the loan and financing portfolio. President and group CEO Datuk Wan Razly Abdullah said, “Affin Group’s first-quarter performance remained steady, demonstrating resilience as the domestic banking sector adapts to persistent global supply and demand pressures. Our base view is that the ongoing global conflict will persist until mid-year, after which oil prices are expected to begin normalising. Trade and commerce are also expected to

gradually return to normal in the second half of the year.” He added that the issuance of RM500 million AT1CS (Additional Tier 1 Capital Securities) in May received strong investor interest and was two times oversubscribed. This Tier-1 capital will strengthen the group’s capital position and improve its total capital ratio by 50 basis points, a prudent move given the current global uncertainty. “The group is evolving its corporate banking business into a wholesale banking model by combining corporate, treasury, and strengthened investment banking capabilities. We expect market volatility to give rise to deal-making opportunities that this new, enhanced business model has a strong chance to capture,”Wan Razly said, adding they are increasing their monitoring of customers who may be affected by the ongoing conflict in the Middle East. To cushion this impact, he said, Affin has introduced support for Bank Negara Malaysia’s SME Stabi lisation Relief Facility. “Pheim Asset Management was officially acquired on April 22, 2026 (soon to be renamed Affin Pheim Asset Management). The new business will be strengthened by new talent, technology, products, collaboration with global partners, and synergies with the group,” said Wan Razly.

From left: Gold Li Holdings independent non executive director Ngiam Mia Teck, shareholder Lim Seok Kim, independent non-executive director Fatimah Zahrah Baharim, independent non-executive chairman Kee Tong Kiak, Lee, executive director and COO Datin Lau Siew Su, independent non-executive director Kong Yee Foon, shareholder Lee Teoh Keng, M&A Equity Holdings executive director Datuk Bill Tan and corporate finance head Gary Ting. Gold Li opens at 12 sen in debut on ACE Market PETALING JAYA: Gold Li Holdings Bhd, a property developer specialising in landed residential developments and in-house construction services, commenced its journey as a publicly traded entity on the ACE Market of Bursa Malaysia Securities yesterday. Its shares opened at 12 sen. Through its initial public offering (IPO), Gold Li raised RM15.21 million in gross proceeds from the issuance of 117 million new ordinary shares. The capital will be deployed as RM11.21 million for working capital to supplement property development costs for identified ongoing and future projects, including building and infrastructure works; and RM4 million to meet the estimated expenses incidental to the Listing. pipeline GDV of RM854.9 million across its ongoing and future projects, the group remains focused on delivering sustainable long-term growth through disciplined project execution, strategic landbanking and market-driven product offerings.

Managing director Datuk Lee Tiau Huat said, “Today’s debut on the ACE Market marks the pinnacle of a 27 year journey that began with a single vision in Muar. This listing provides the robust financial platform needed to unlock the value of our 47.3-acre landbank and execute our planned entry into the high-rise residential market by 2027.” M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

Since 1999, Gold Li has established itself as a developer with a strong regional footprint in the Muar, Tangkak and Batu Pahat districts of Johor. The group is primarily engaged in the creation of quality landed homes, including terrace, semi detached, and detached houses. As of early 2026, Gold Li has completed 110 projects, with 13 ongoing projects, 28 future projects and 29 parcels of land for future development.

Gold Li plans to expand its property portfolio beyond landed residential properties with its first high-rise residential development in Muar, targeted to begin in the first half of 2027 with an estimated gross development value (GDV) of RM322.7 million. Supported by a total estimated