02/06/2026

BIZ & FINANCE TUESDAY | JUNE 2, 2026

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Malaysian Paper

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NCCIM concerned about Hormuz disruption impact

IOI Properties nine-month revenue up 41% to RM3b

PETALING JAYA: IOI Properties Group Bhd (IOIPG) registered a 41% increase in revenue to RM3.06 billion for the first nine months of the financial year ending June 30 2026 (9M FY26), compared to RM2.17 billion in 9M FY25. The strong growth was driven by robust performance across all three core business segments, with the property development, property investment and hospitality and leisure segments registering commendable growth of 28%, 41% and 83% respectively. Profit before tax (PBT) in 9M FY26 increased more than fourfold to RM1.95 billion, compared to RM430.9 million in 9M FY25. The strong performance was primarily attributed to a fair value gain on investment properties and remeasurement gain on South Beach, Singapore, amounting to RM567.1 million and RM502.8 million, respectively. Excluding these exceptional items, the group’s underlying PBT rose by 88% to RM878.6 million, underpinned by stronger contributions across all segments. “Our financial year 2026 nine months’ results are testaments of our strategies to balance revenue portfolio, capitalising on industrial demand and rolling out market-driven products while improving productivity and efficiency across all three business segments, despite the challenging global economic environment and the ongoing geopolitical tensions. Looking ahead, the group’s property investment segment is poised to continue its upward trajectory, supported by the improving physical occupancy levels at IOI Central Boulevard Towers and South Beach Tower. In tandem, the group’s recurring income portfolio has expanded significantly and is approaching the scale of its property development segment upon the inclusion of Asia Square Tower 2, thereby strengthening earnings stability and enhancing resilience amid market uncertainties. Complementing the growing property investment segment, the group’s diversified product offerings across three countries, the positive outlook of the hospitality and leisure segment, and the favourable interest rate, are anticipated to provide a strong foundation for sustained earnings for the fourth quarter of the financial year, ”said IOIPG CEO Datuk Lee Yeow Seng. In 9M FY26, the property development segment achieved sales of RM2.71 billion. Local projects contributed RM2.48 billion, accounting for 92% of total sales, while projects in China contributed RM148.6 million, or 5%, and Singapore accounted for the remaining RM82.3 million, or 3%. In Malaysia, sales were primarily driven by the Klang Valley region at RM1.8 billion and this was led by industrial land sales in IOI Industrial Park Banting and Jalan Ampang, alongside the steady contributions from the group’s well-established townships of 16 Sierra in Puchong South and Bandar Puteri Puchong. Meanwhile, the Johor region registered RM675.3 million in sales, mainly driven by industrial land sales in IOI Industrial Park Iskandar Malaysia, while the townships of Bandar Putra Kulai and Taman Kempas Utama continued to outperform. Consequently, unbilled sales rose by RM1.25 billion during the period, bringing them to a new high of RM2.1 billion.

RON95 subsidies, has helped cushion immediate fuel price pressures and ease consumer burden,” he added. However, he emphasised that many commercial and industrial users remain exposed to global fuel volatility, while import-dependent businesses continue to face rising logistics and procurement costs. While these subsidies provide short-term relief, they are not sufficient to fully shield businesses from prolonged external shocks. In this regard, financing support such as the RM5 billion Skim Jaminan Pembiayaan Perniagaan under the Madani Government guarantee schemes, along with targeted financing facilities under Bank Negara Malaysia – including the Targeted Relief and Recovery Facility, High Tech and Green Facility and Low Carbon Transition Facility, with combined allocations exceeding RM10 billion – play an important role in supporting SME liquidity, working capital, digitalisation and resilience, said Gobalakrishnan. “These measures help businesses manage cash flow pressures and adapt to external shocks arising from rising logistics and energy costs linked to the Strait of Hormuz disruption. NCCIM and the business community express appreciation to the Madani Government for its timely financial support measures, including financing assistance and subsidy interventions, which have provided critical relief to SMEs during this period of uncertainty.” Gobalakrishnan said NCCIM proposes a temporary targeted moratorium for affected SMEs to ease immediate cash-flow pressures caused by rising operational costs. This would allow businesses breathing space to manage higher fuel, logistics and raw material costs while safeguarding operations and employment. Financial institutions are also urged to provide flexible restructuring options and easier access to working capital. At the same time, he said, the crisis highlights the urgent need to strengthen Malaysia’s long-term economic resilience through supply chain diversification, enhanced regional trade cooperation, stronger energy security planning and accelerated digitalisation. Malaysia’s business community has consistently demonstrated resilience through past crises, but resilience must be reinforced by timely policy intervention and strong public private collaboration, he said, adding that the crisis is a stark reminder that geopolitical instability abroad can rapidly translate into economic consequences at home. NCCIM said it remains committed to working closely with the government and all stakeholders to safeguard business con tinuity, protect SMEs and ensure Malaysia remains competitive and resilient in an increasingly uncertain global environment.

o Chamber proposes temporary targeted

PETALING JAYA: The ongoing disruption and closure of the Strait of Hormuz arising from geopolitical tensions in West Asia is a matter of serious concern to Malaysia’s business community, said National Chamber of Commerce and Industry of Malaysia (NCCIM) president Datuk Seri N. Gobalakrishnan ( pic) . As one of the world’s most critical maritime routes, he said, the Strait of Hormuz carries about 20% of global oil and liquefied natural gas shipments daily, making it central to international energy security and global trade stability. Nearly 90% of crude oil exports transiting the strait are destined for Asian markets, including major economies within Asean, he said, adding that any prolonged disruption will have far-reaching implications on energy prices, international trade flows and supply chain stability, with direct consequences for highly open and trade-dependent eco nomies such as Malaysia. “On behalf of NCCIM, I wish to express our deep concern over the potential economic impact of this crisis, particularly on Malaysian businesses and SMEs, which form the backbone of our economy. Although Malaysia is geographically removed from the conflict, we are not insulated from its economic repercussions,” Gobalakrishnan said in a statement. He added that the immediate effects are already evident through rising global energy prices, higher freight and insurance costs, supply chain disruptions and increased uncertainty across international markets. “Freight costs on key international shipping routes have risen sharply, delivery lead times have become less certain, and imported raw material costs have increased significantly. Manufacturing businesses that previously absorbed logistics cost increases of approximately 3% to 5% annually are now facing projected increases ranging between 10% and 18%, depending on sector exposure,” Gobalakrishnan said. He noted that these developments place considerable pressure on SMEs, which account for 97.4% of all business establishments in Malaysia and contribute nearly 38% of gross domestic product. Unlike larger corporations, he said, many moratorium for affected SMEs to ease cash-flow pressures caused by rising operational costs

SMEs operate within narrow profit margins of 5% to 10%, leaving limited capacity to absorb sudden increases in fuel, transport and production costs. “Sectors most affected include manu facturing, logistics, retail, food processing, agriculture and export-oriented industries. If the disruption persists, businesses may be forced to defer investment, adjust pro duction, pass higher costs to consumers or scale back expansion plans. This will contribute to inflationary pressures, affecting both businesses and consumers while placing additional strain on domestic economic activity,” he added. Gobalakrishnan said NCCIM is particularly concerned about broader inflationary spillover effects, as fuel and logistics costs account for 20% to 30% of operating expenses across key sectors. “A sustained 10% to 18% increase in freight and transport costs could push consumer prices upwards by an estimated 0.5 to 1.0 percentage point, eroding household purchasing power and weakening market confidence. The government’s fuel subsidy mechanism, including the targeted Budi Madani assistance of RM200 per month for eligible diesel vehicle owners and broader

Ayer Holdings delivers strong revenue, profit growth in Q1 PETALING JAYA: Ayer Holdings Bhd reported strong financial results for the first quarter ended March 31, 2026 (Q1’26), with revenue of RM42.7 million and profit before tax (PBT) of RM18.9 million, 137% and 233% higher respectively compared with the corresponding quarter last year. For Q1’26, the group recorded profit after tax (PAT) of RM13.5 million; earnings per share of 18.07 sen and net asset per share of RM8.59. The property segment contributed RM35.9 million in revenue and RM15.8 million in PBT during the quarter and the plantation segment contributed RM6.8 million in revenue and RM2.7 million in PBT, supported by higher fresh fruit bunch production volumes despite softer crude palm oil prices. While ongoing geopolitical conflicts and global economic uncertainties may continue to influence market conditions, the board remains cautiously optimistic on prospects for the financial year ending Dec 31, 2026. Barring any unforeseen circumstances, Ayer Holdings expects to deliver stable financial performance, supported by sustained property development activities, recurring plantation income and disciplined management of expenditure, liquidity and capital com mitments. The results were primarily driven by higher revenue recognition from its property develop ment projects and improved plantation performance.