26/05/2026

BIZ & FINANCE TUESDAY | MAY 26, 2026

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Sime Darby Q3 net profit surges to RM654 million

IJM Land, Socat in joint venture to develop RM1.96b project within JS-SEZ PETALING JAYA: IJM Land Bhd and Southern Catalyst Sdn Bhd (Socat), which is wholly owned by MoF Inc, yesterday signed a joint venture agreement to develop 307.17 acres of industrial and commercial land in Sedenak, Johor. The project within the Johor-Singapore Special Economic Zone (JS-SEZ) is estimated to have a gross development value of RM1.96 billion. It will be undertaken over a period of six to eight years. Located less than 3km from the Sedenak toll plaza with direct access to the North South Expressway, the site will form part of the upcoming Southern Catalyst Innovation District (SCID) in Sedenak, which is in Kulai District. Socat is the master developer of the 2,940 acre SCID. The partnership will be undertaken through a joint-venture company, IJM Land Sedenak Sdn Bhd, in which IJM Land holds a 70% equity and Socat the remaining 30%. Conceived as a future-ready industrial park, the park is meant for high-value industries aligned with the growth priorities of the JS SEZ, including advanced manufacturing, biopharmaceuticals, renewable energy, and integrated logistics, alongside pioneering agri-tech and food technology. The agreement was signed by IJM Land CEO Datuk Tony Ling Thou Lung and COO Datuk Chai Kian Soon, as well as Socat COO Mohd Shahreza Maswan and CFO Syed Agil Syed Hashim. According to a statement from IJM, the project is expected to contribute towards investment inflows, job creation, and the advancement of high-value industries in Johor. “The industrial market in Johor continues to demonstrate strong growth momentum, supported by its strategic proximity to Singapore, competitive cost advantages, and sustained inflows of foreign direct investment,” said Ling. “This strategic partnership with Socat represents a significant step in IJM Land’s industrial expansion strategy, allowing us to participate in a strategically positioned, master-planned development within a key growth corridor.” “Beyond strengthening our revenue pipeline, the project allows us to build greater depth and capability in the industrial space, while contributing to Johor’s broader ambitions as a regional hub for advanced industries, innovation and cross-border economic activity.” He added that it also reflects IJM Group’s continued participation in the growth of the JS-SEZ. IJM Construction is involved in major infrastructure and industrial-related projects in Johor, including the RTS Link Immigration, Customs and Quarantine Complex as well as data centre construction, he noted. Meanwhile, Shahreza said Socat is committed to advancing the national food security agenda through the development of the dedicated agritech hub, while catalysing a future-ready ecosystem comprising green technology, advanced manufacturing and a resilient circular economy. He stressed that Sedenak has strong potential to emerge as a key regional logistics and industrial hub. “By harnessing our complementary strengths, we aim to establish a new benchmark for sustainable eco industrial development, attract high-quality global investments, and further strengthen Johor’s position as a leading regional gateway for innovation-driven and sustainable economic growth.”

ecosystems we operate in to advance the national Government-linked Enterprises Activation and Reform Programme (GEAR uP) agenda. “This includes developing Malaysian talent, supporting local businesses and suppliers, and contributing to the development of globally competitive Malaysian enterprises,” he said. The GEAR-uP agenda is an initiative by the Ministry of Finance to drive national economic growth, reform the labour market, and support Bumiputera development. On prospects, amid a challenging global economic outlook, with ongoing geopolitical tensions impacting supply chains and rising inflation risks, the group said business conditions are expected to remain subdued. The motors sector continues to be impacted by slower consumer demand and heightened competition. Nevertheless, sales in the affordable vehicle segment in Malaysia remain resilient, it said. For the industrial sector, the medium to long-term demand from the Australian mining industry for the group’s equipment and after sales service is expected to remain strong. “The board anticipates that the group’s core financial performance for the financial year ending June 30, 2026, will be consistent with that of the financial year 2025,” it added. - Bernama

equipment and automotive have held their ground against ongoing market pressures,” said Sime Darby, adding that it remained disciplined in cost management, even in uncertain conditions. The UMW division recorded a profit before interest and tax of RM196 million, marginally higher than the same quarter in FY2025. While the automotive business registered a lower profit, the lubricants business saw improved results, mainly due to inventory adjustments in the previous corresponding period. For the nine months ended March 31, 2026

PETALING JAYA: Sime Darby Bhd’s net profit for the third quarter financial year ended March 31, 2026 (Q3’26) surged to RM654 million from RM193 million in the same quarter last year. The stronger performance was primarily driven by a one off gain of RM434 million from the disposal of land in Malaysia Vision Valley, a development corridor that encompasses the districts of Seremban and Port Dickson in Negeri Sembilan, said the group in a Bursa Malaysia filing yesterday. Quarterly revenue eased to RM15.75 billion against RM16.31 billion in Q3’25. Excluding one-off items, core net profit for Q3’26 increased by 55.6% to RM263 million, as all three business divisions registered higher profits. “Our results this quarter reflect the continued resilience of our portfolio, even as we navigate a more complex operating environment. “Our core businesses of industrial o Boosted by one-off gain from disposal of land in Malaysia Vision Valley distributor Eckem Holdings Bhd aims to raise RM15 million from its initial public offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Bhd scheduled for July 3. The IPO comprises a public issue of 125 million new ordinary shares at an issue price of 12 sen per share, the group said in a statement in conjunction with the prospectus launch. Of the total proceeds, RM6 million will be utilised for the construction of a new corporate office, warehouse, and laboratory to strengthen the group’s operational infrastructure, while RM2 million will be allocated to expand a new production line for its rubber products segment to enhance manufacturing capa bilities, it said. Eckem Holdings said it will use RM1.45 million to repay bank borrowings to optimise its capital structure, RM1.75 million for working capital requirements to support ongoing business operations, and RM3.8 million for listing expenses. Meanwhile, executive director Jack Tan said the company remains cautious yet optimistic amid the United States-Iran conflict that is affecting the global petrochemical supply chain. “Prior to this conflict, every year we set one year and three-year targets for the company to achieve. However, with this sudden disruption, we are still trying to push through with what we had set earlier this year. “We will increase our production capacity by adding another manufacturing line, and we intend to proceed with that despite the supply challenges,” he told a press conference after the company’s prospectus launch here yesterday. Tan said that on the distribution side of the business, the group has been in discussions since last year with several new brands that it plans to represent in Malaysia and Singapore. “Those discussions are still ongoing, and we should be able to see some positive results as early as this year, with greater positive impact expected in 2027,” he said. When asked about the main challenges

(9M’26), net profit improved by 10.9% to RM1.44 billion compared with RM1.29 billion, and revenue was better at RM52.75 billion from RM52.30 billion previously. Group chief executive officer Datuk Jeffri Salim Davidson said the company is also mindful of the role it plays in the broader economy and its responsibility as a flagbearer for Malaysia in international markets. “We are committed to strengthening the

ACE Market-bound Eckem aims to raise RM15 million from IPO PETALING JAYA: Industrial chemicals

From left: Jack Tan, Eckem Holdings managing director Tan Kwang Wah, M&A Securities managing director Datuk Bill Tan and M&A Securities deputy head of corporate finance Danny Wong.

price increases for the company’s products, and margins could come under pressure if higher costs cannot be passed to customers. “We are trying to strike a balance where we can maintain a constant supply from suppliers while also maintaining healthy margins and continuing to provide quality products to our customers despite the current crisis,” he said. Applications for the IPO are open and will close on June 19 at 5pm. M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise. – Bernama

faced by the company and the industry, apart from geopolitical tensions, Tan said the industry is facing price dumping from China, similar to many other sectors. “That is something the management is taking very seriously because most of the brands we represent are from European countries. “With that said, we are also actively looking to add some Chinese products into our portfolio, and I want to stress that these are quality Chinese products, so that we can enjoy the best of both worlds,” he said. Meanwhile, Tan said there will inevitably be