06/06/2026

BIZ & FINANCE SATURDAY | JUNE 6, 2026 13 SC, Turkiye university forge ethical finance partnership

Geopolitical risks, Fed outlook weigh on M’sian bonds KUALA LUMPUR: Malaysian Government Securities (MGS) and Government Investment Issues (GII) yields remained relatively stable despite renewed global volatility. Kenanga Investment Bank Bhd (Kenanga IB) said investors tracked fragile US-Iran negotiations and persistent disruptions in the Strait of Hormuz, which kept oil prices elevated and global inflation concerns in play. Further, the firm said growing expectations that the Fed will maintain a restrictive policy stance supported higher global yields and capped downside in the local curve. “Domestically, the Purchasing Managers’ Index (PMI) in May softened to 49.9, while renewed uncertainty surrounding the proposed US Section 301 tariff on Malaysian exports added to investor caution, though external developments remained the dominant market driver,“ Kenanga IB said. The MGS and GII yields mostly declined this week, moving in a range of -5.0 to +2.0 bps. The 10-year MGS fell 1.3 bps to 3.56%, while the 10-year GII decreased 0.5 bps to 3.604%. On flows and outlook, Kenanga IB said foreign flows turned negative, with government bonds recording RM6.7 billion in outflows during May. Bursa Malaysia also saw RM3.6 billion in foreign equity outflows driven by MSCI rebalancing and cautious investor positioning. “Next week, domestic focus shifts to labour market, IPI and retail sales data. Investors will also monitor developments on the proposed US tariff measures and the upcoming Johor state election. “Externally, US inflation, labour market data and US-Iran negotiation progress remain the key drivers. “Stable domestic conditions should keep MGS yields broadly range-bound, but external risks continue to bias yields modestly higher,“ Kenanga IB said. Moving on to the ringgit, Kenanga IB said the local note weakened beyond 4.00/USD, pressured by stalled US-Iran talks, firmer US data, and renewed tariff concerns. The firm said limited progress in US-Iran negotiations and renewed US tariff concerns lifted risk aversion. “The ringgit weakened as investors increased USD exposure amid resilient US data and rising Fed hike expectations. “Persistent Strait of Hormuz disruptions kept oil prices elevated, reinforcing inflation concerns and pushing US Treasury yields higher. “FX positioning remained USD supportive as markets unwound dovish Fed bets and held defensive EM allocations,“ Kenanga IB said. The firm said focus now shifts to US non-farm payrolls and next week’s inflation data to assess whether markets can sustain Fed rate expectations by year-end. Strong labour market and sticky inflation readings would reinforce USD strength and keep US yields elevated. Investors will also monitor US-Iran negotiations for signs that energy flows through the Strait of Hormuz can normalise. Meanwhile, domestic political developments in Johor are likely secondary unless they raise broader concerns about the political cycle, Kenanga said. “Our baseline assumes US-Iran negotiations remain fragile and the Strait of Hormuz stays partially disrupted. “This should keep oil prices elevated, tilt inflation risks higher, and preserve Fed tightening expectations.”

KUALA LUMPUR: The Securities Commission Malaysia (SC) and Ibn Haldun University (IHU) of Turkiye formed a strategic partnership to promote Maqasid al-Shariah aligned ethical finance globally. The partnership was formalised through the signing of a MoU by SC chairman Datuk Mohammad Faiz Azmi and IHU president Professor Dr Atilla Arkan, with Bilal Erdogan, deputy chairman of the board of trustees of IHU, in attendance. The signing took place on the sidelines of the 3rd Global Islamic Economy Summit in Istanbul. This summit is organised by AlBaraka Forum, an independent, non-profit global think tank specialising in Islamic economics. Under the MoU, the SC and IHU have established a global partnership to strengthen thought leadership on Maqasid al-Shariah principles within the Islamic capital market (ICM) ecosystem. KUALA LUMPUR: Vertically integrated bakery group RT Pastry Holdings Bhd is expanding beyond its Klang Valley base into other states to support growth following its RM16.48 million initial public offering (IPO). Chief operating officer Tia Yu Hoo said the group currently operates 18 outlets, mainly in the Klang Valley, including a recently opened outlet in Taman Equine that has delivered encouraging performance. The group is planning to expand its network with the addition of four new outlets this year, followed by another three in 2027 as part of its gradual expansion strategy. The group’s expansion will initially focus on other states within Malaysia, including Pahang and the East Coast, which Tia said offer significant growth opportunities due to relatively lower market saturation and untapped consumer demand. “At this moment, we chose the East Coast because there is a lot of room for expansion, and we foresee strong consumer demand from this region,” Tia told a press conference after the company’s prospectus launch yesterday. He added that the company’s expansion strategy will prioritise strengthening its presence across Malaysia, with plans to progressively enter other regions, including the southern states. “Overseas expansion is part of our future plans. But we will first expand to other regions as we want to build a stronger domestic base before moving beyond Malaysia,”he said. He said RT Pastry is considering a mix of locations for its new outlets, including shoplots and mixed developments comprising retail, residential and business components. “We are still identifying suitable shoplots as well as mixed developments. These will form part of Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Malaysia’s Masterplan (Masterplan) strengthening

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the country’s leadership in Islamic finance through enhanced capacity building, research and cross-border collaboration between regulators and academia. The Masterplan, which is anchored on four outcome themes – Vibrancy, Inclusivity, Sustainability and Regional Opportunities, further advocates utilising the principles of Maqasid al-Shariah as the ethical compass. The MoU supports the SC’s broader internationalisation efforts, aimed at reinforcing Malaysia’s standing as a global destination for Islamic and ethical finance. SC has held engagements with key stakeholders in Türkiye, including representatives from Islamic finance sectors and regulatory and supervisory bodies.

This tie-up will help strengthen Malaysia’s global position as the leader in Islamic finance. In Malaysia, ICM accounts for 64% of Malaysia’s overall capital market, which grew 3.2% to US$1.1 trillion (RM4.3 trillion) in 2025. Mohammad Faiz said the collaboration with IHU marks a significant milestone in SC’s efforts to champion Maqasid-aligned ethical finance on the global stage. “It combines regulatory foresight with academic rigour to advance a financial ecosystem that prioritises shared prosperity, sustainability and ethical integrity,” he said. He said key outcomes planned our target locations,” he said. Tia said RT Pastry has significant headroom to support its expansion plans, with its existing manufacturing facilities currently operating below full capacity. “The current utilisation of our manufacturing facilities is about 50% to 70%, so we still have a lot of room,” he said. In the longer term, the group plans to invest in additional production facilities to support further expansion. He said the group expects to significantly expand its manufacturing capacity, indicating that long-term growth will be supported by further investment in production capabilities. “I can’t provide an exact figure at this point, but we expect our production capacity to potentially triple from current levels,” he said. The group aims to raise RM16.48 million through a public issue of 91.54 million new ordinary shares via an ACE Market IPO. Of the total proceeds, RM7.63 million (46.3%) has been allocated for the opening of new outlets, while RM0.9 million (5.43%) is earmarked for the purchase of new machinery and equipment. Of the remaining funds, RM3.82 million (23.21%) will be used for the repayment of bank borrowings, while the balance of RM4.13 million (25.06%) will cover the estimated expenses associated with the listing exercise. The company is set to debut on the ACE Market with an enlarged issued share capital of 339.04 million shares, representing a market capitalisation of approximately RM61.03 million based on the IPO price of RM0.18 per share. Tia said RT Pastry has observed softer demand and shifts in customer spending, with more consumers becoming price-sensitive and opting for cheaper alternatives as weaker purchasing power affects overall spending. He attributed the shift in consumption patterns partly to

from this strategic partnership, amongst others, include the establishment of a joint taskforce to oversee collaborative initiatives, the annual delivery of a global roundtable on ethical finance anchored on Maqasid al-Shariah and the publication of an annual joint report. Professor Dr Atilla Arkan said the partnership with the SC will create new opportunities for intellectual exchange, particularly in global thought leadership anchored in Maqasid-aligned ethical finance, while strengthening ties between Malaysia and Türkiye. The MoU also advances

RT Pastry to expand beyond Klang Valley post-IPO

From left: RT Pastry Holdings Bhd independent non-executive chairman Leou Thiam Lai, executive director and group CEO Lu Chun-Neng, KAF Investment Bank Bhd CEO Rohaizad Ismail, and head of corporate finance Ahmad Fazlee Aziz.

broader economic conditions and global uncertainties, which have weighed on consumer sentiment. Despite the softer consumer environment, he said the group remains confident in proceeding with its expansion plans, indicating that core demand will remain intact even as discretionary spending moderates. “The presence of multiple bakery brands in the market reflects continued demand for bakery products. It is still an everyday essential for consumers, so the demand is definitely there,” he said. RT Pastry’s business remains heavily reliant on retail outlets, which contribute about 96% of total revenue. The group is exploring ways to diversify its income streams through wholesale, corporate sales and OEM activities. “Recently, we signed a distribution service agreement with HWC to expand our sales channels,”he said.

Wholesale currently contributes about 2.4% to 2.5% of the group’s total revenue, and the group aims to at least double this to around 4% to 5% over time as it expands its wholesale and distribution capabilities. The stock is not currently Shariah compliant, as halal certification has yet to be obtained for all its manufacturing facilities. RT Pastry applied for halal certification for its existing plants earlier this year after delaying relocation plans, and the approval process is now underway. Certification is expected to be obtained in stages, starting with its manufacturing facilities before extending to its outlets, with completion potentially within the year. According to the company, once certification is secured, it could qualify for Shariah-compliant status as early as next year.