11/06/2026

BIZ & FINANCE THURSDAY | JUNE 11, 2026

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Private capital emerges as CRE growth catalyst in M’sia

PETALING JAYA: Private capital, including high net worth individual (HNWI) investors and family offices, continues to dominate the global commercial real estate (CRE) market. With US$464 billion (RM1.8 trillion) invested in 2025, it outpaced institutional investors (US$347 billion) for the fourth year running, according to Knight Frank’s The Wealth Report. This included US$139.1 billion in cross-border CRE investments across 10 key markets, including the United Kingdom, the United States and Germany. The Asia-Pacific region saw a return to 2019 levels of cross-border HNWI investment, driven by pricing resets and a shift in investor behaviour. “Global CRE was clearly entering a new phase of the cycle where repricing, supply and demand fundamentals, stabilising interest rates and improving visibility on income was bringing capital back into the market. Recent global events have undoubtedly created uncer tainty, but the trajectory driven by the fundamentals will resume,” said Knight Frank capital markets global head, Nick Braybrook. These global trends are reflected in Malaysia, which registered a record RM426.7 billion in approved investments in 2025, supported by the government’s ongoing emphasis on domestic investment. This included 86.7% year-on-year growth

off deals to strategic acquisitions undertaken through a private office framework, leading to the rise of the family office paradigm. “We are seeing a significant rise in emerging market wealth. The number of family offices worldwide is projected to reach 10,000 this year, with an annual growth rate of 5%, while Malaysia’s UHNWI population is set to grow to 1,881 individuals by 2031. This, coupled with the ongoing tendency for regional banks to downplay CRE exposure, is driving private capital dominance in the space,” said Knight Frank Malaysia capital markets (investments) execu tive director James Buckley. First launched in 2007, The Wealth Report is the ultimate guide to prime property markets, global wealth distribution, the threats and oppor tunities for wealth, commercial property investment opportunities, philanthropy and luxury spending trends.

o Investments of US$464b in 2025, including high net worth individuals and family offices, dominate global commercial real estate market: Knight Frank’s The Wealth Report

deals in 2025, including the RM1.1 billion acquisition of a major stake in the prestigious The Exchange TRX development by a family office. In addition, the Forest City SFO framework is a clear indicator of the government’s emphasis on single family offices as an investment vehicle for domestic and inter national high- net-worth families, with the programme securing nine family offices managing a combined US$169 million (RM670 million) of assets as of end-2025, with a target of RM2 billion by end-2026,” said Knight

in private equity (PE) and venture capital investments, with the real estate sector alone registering investments worth RM78.2 billion. Private capital, family offices in particular, is emerging as a major growth catalyst for CRE in Malaysia. This included a number of significant family office transactions in 2025, further catalysed by the introduction of the single family office (SFO) framework in Johor’s Forest City Special Financial Zone. “Malaysia’s CRE sector saw a number of high-profile private capital

Ooi (left) and Buckley

Frank Malaysia group managing director Keith Ooi The growing dominance of private capital in the real estate sector is attributed to its advantages in terms of faster decision-making, access to diverse capital streams, and higher tolerance of risk, relative to insti tutional investors. Private investors are also adapting their approach, with more HNWIs moving from one

Scientex’s Q3 net profit rises to RM142m

Petroleum sales tax seen as ‘trump card’

PETALING packaging manufacturer and property developer Scientex Bhd recorded a 14.8% rise in net profit to RM142.2 million for the third quarter ended April 30, 2026 (Q3’26), from RM123.9 million in the previous corresponding quarter. Group revenue remained resilient at RM1.12 billion, representing a 0.7% year-on year increase. In the packaging division, revenue rose 2.5% to RM630 million in Q2’26 from RM614.8 million previously, supported by higher sales volume. Operating profit jumped 112.4% to RM73.2 million from RM34.5 million previously, driven by improved market sentiment, better margins amid prevailing market conditions, and an optimised product mix. Meanwhile, the property division recorded revenue of RM487.8 million in the third quarter of FY2026, comparable to RM495.8 million previously, with the marginal 1.6% decrease attributable to the timing of several new project launches scheduled for the coming quarter. JAYA: Global PETALING JAYA: CIMB Bank Bhd recently signed a letter of intent with China CITIC Bank Corp Ltd to strengthen financial connectivity between China and Asean, particularly Malaysia and Indonesia, by facilitating bilateral trade, cross-border financing and investment flows across the region. The partnership, which leverages China Citic Bank’s robust onshore network in China and CIMB’s extensive Asean footprint, will support these objectives by providing clients of both banks with more seamless access to a comprehensive suite of banking solutions spanning trade transactions, payments and cross-border financing to support their operational and expansion needs. The partnership will also support Chinese renminbi (RMB) and foreign currency payment and clearing capabilities, including potential access to China’s Cross-Border Interbank Payment System, interbank RMB funding arrangements and offshore lending into Asean markets, further strengthening

Net profit rose 11.6% to RM420.3 million in 9M26, from RM376.4 million in the previous year’s corresponding period. Looking ahead, the company said its packaging division will remain vigilant and agile in navigating market uncertainties, while continuing to focus on cost optimisation and operational efficiency to strengthen its resilience and competitiveness. The property division continues to build a robust pipeline with three new townships lined up for launch: Scientex Melaka in Cheng (528 acres), Scientex SP Astana in Sungai Petani, Kedah (228 acres), and Scientex Bestari Jaya in Selangor (826 acres). These new townships will further broaden the Group’s geographical footprint and contribute to its medium to long term growth, it added.

Operating profit moderated to RM129.5 million from RM143.0 million previously. CEO Lim Peng Jin said, “We are steering our packaging division through global headwinds with a clear focus on operational stability and supply reliability. Our proactive approach continues to strengthen our ability to serve customers and remain competitive in a volatile market. “Meanwhile, our property division is well placed to strengthen its position in affordable housing, supported by sustained demand for value-driven offerings. Healthy take-up across new project launches continues to give us confidence to expand our townships. Having delivered over 45,000 homes, we have now passed the 90% mark of our Vision 2028 target and are well on track towards delivering 50,000 homes nationwide.” For the cumulative nine-month period ended April 30, 2026 (9M26), the group recorded a 2.5% increase in revenue to RM3.41 billion, compared to RM3.33 billion previously. financial linkages across the China-Asean corridor. Beyond product and financing solutions, both banks will explore head-office-level communications to streamline cross-border treasury and cash management capabilities, including account opening, maintenance and management services to local enterprises. This is expected to strengthen operational coordination across both banks’ head offices and branches, enabling clients to manage their cross-border transactions more efficiently as they expand across the China Asean corridor. Another key aspect of the partnership is both banks’ commitment to supporting clients’ expansion across China and Asean. Through mutual client referrals and advisory services, both banks will support clients in navigating market entry, fulfilling regulatory requirements, executing cross-border transaction and pursuing mergers and acquisition opportunities. In addition, both

“Petronas threshold”, a protected funding floor that ensures the company can operate and invest without financial strain. Once that threshold is set aside, the remaining profit would then be distributed to Sabah and Sarawak as royalty.

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“At high oil prices, the states would receive the full 20%. At low oil prices, the payout would be proportionately reduced, potentially to 15% or 10%, depending on what the economics allow after Petronas’ threshold is met,” Idris said. This approach, he added, is neither novel nor untested. The downstream oil and gas sector already operates under an automatic price mechanism, through which oil companies annually submit their allowed cost recovery requirements to the government. The same logic, he argued, can be applied at the national level. “I have no reason to doubt it cannot work. We already have a mechanism of that nature for the downstream. Because it already exists, we know it can be done,” Idris said. He added that neither Sabah nor Sarawak has any interest in seeing Petronas fail, noting that both states have consistently chosen to remain within the federation rather than claim the full 100% of resource revenues they could theoretically assert. Idris acknowledged that the political environment makes a clean resolution difficult. The federal government’s unity coalition depends heavily on parliamentary support from Sabah and Sarawak, making any move that could be perceived as shortchanging the Borneo states politically risky. He also noted that both states hold significant leverage through the petroleum sales tax, currently set at 5%, which either state can increase unilaterally without federal consent. That option, he said, functions as a trump card that the states have so far chosen not to play, preferring negotiation over confront ation. “All they need to do is increase the petroleum sales tax. Now it’s 5%, they make it 10%, they make it 15%. They can do that. But they are not doing it because they are talking,” Idris said.

Scientex declared an interim dividend of 6 sen per share for the financial year ending July 31, 2026, representing a total payout of RM93.4 million to shareholders. The ex dividend date is June 29, payable on July 17. CIMB, Chinese bank collaborate to boost China-Asean financial links

banks will explore syndicated loans collaboration across global primary and secondary markets to broaden clients’ access to regional and international financing opportunities. CIMB group wholesale banking CEO Chu Kok Wei said, “As trade, investment and supply chain linkages between China and Asean continue to deepen, businesses increasingly require banking partners that can help them navigate both markets more seamlessly. CIMB has a strong presence in Asean, and we are best-positioned to connect clients to opportunities across the China-Asean corridor through more integrated trade, financing and cross-border banking capabilities. By deepening our connectivity into China’s financial ecosystem, we are the preferred partner to support clients in accelerating market access, navigating cross-border complexities and realising their regional growth ambitions in one of the world’s largest and most dynamic economies.”