14/10/2026

BIZ & FINANCE WEDNESDAY | OCT 14, 2026

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CPO prices expected to remain under pressure o El Nino may tighten

“Securing three major contracts from the same customer within such a short period is a meaningful milestone for Kelington. More importantly, the successive awards have progressively expanded our role in the development, allowing us to undertake a wider range of engineering and construction works for this advanced manufacturing facility.” Tourism Malaysia, Alipay+ tie up to boost digital tourism KUALA LUMPUR: Tourism Malaysia and Alipay+, the unified wallet gateway of Ant International, yesterday signed a MoU to accelerate cross-border commerce and digitalise merchant engagement across Malaysia’s tourism economy. As Malaysia welcomes visitors for Visit Malaysia 2026–2027 (VM2026–2027), this partnership merges Tourism Malaysia’s destination marketing with Alipay+’s global wallet ecosystem and AI capabilities. It aims to create a highly intelligent digital journey, connecting international travellers directly with local operators as well as small and medium enterprises (SMEs), strategically distributing visitor spending beyond major hubs to support the broader economic goals of VM2026–2027. In the first half of 2026, over 600,000 merchants, primarily SMEs, received payments from Alipay+ partner wallets and bank apps, marking a year-on-year increase of over 70%. Furthermore, traveller spending via DuitNow surged by more than 60%, establishing Alipay+ as the largest contributor to inbound QR transactions nationwide. Currently, Alipay+ connects over 2 billion user accounts with 150 million merchants across 210 destinations, and operating through major national schemes like PayNet. Through the MoU, Tourism Malaysia and Malaysian businesses will gain direct visibility across leading global e-wallets within the Alipay+ ecosystem. The Alipay+ Voyager AI agent will highlight verified offerings, connecting travellers with businesses beyond major tourism hubs, while personalised deals throughout the travel journey will encourage greater engagement.

KUALA LUMPUR: Crude palm oil (CPO) prices are expected to remain under pressure from high stockpiles and seasonal pro duction, with the possibility of El Niño supporting prices in 2027, according to research houses. Hong Leong Investment Bank (HLIB) said elevated inventory levels are likely to persist into October 2026 as production approaches its seasonal peak. This could weigh on CPO prices. “Inventories are, however, expected to draw down thereafter as seasonal production eases and the lagged effects of El Nino impact output,” HLIB said in a research note yesterday. It has maintained its average CPO price forecasts at RM4,450 per tonne for 2026 and RM4,500 per tonne for 2027. It is “Overweight” on the plantation sector. MBSB Investment Bank Bhd expects CPO prices to stay soft in October 2026, averaging around RM4,518 per tonne, down 2.1% month-on-month. The probability of a strong El Niño had risen to 90%. This will raise concerns over supply dis ruptions. But persistently high stockpiles are likely to keep prices range-bound, it said. MBSB said near-term down side risks remained largely demand-driven. Stockpiles could remain around the psycho logically important three million tonnes level. It may approach four million tonnes if production continues to grow, further limiting price upside. Meanwhile, CIMB Securities Sdn Bhd expects CPO prices to trade between RM4,400 and RM4,600 per tonne in the near term, although elevated inventories

supply and bolster palm oil outlook in 2027: Research houses could cap gains, it said. It added that higher energy prices have improved biodiesel economics, and prolonged dry conditions and haze in parts of Indonesia and Malaysia, com pounded by reduced fertiliser application, could weigh on palm oil output from 2027. The forward market has also pointed to tighter supply ex pectations. April-May 2027 palm oil futures are trading at a premium of more than RM494 per tonne over December 2026 contracts. Black Sea shipment disruptions may also support palm oil demand. CIMB Securities cited the 2015/2016 El Niño episode, when severe drought in Indonesia and Malaysia reduced palm oil pro duction, followed by inventory drawdowns in 2H’16. The research house has maintained its 2026 and 2027 CPO price forecasts at RM4,450 and RM4,550 per tonne, respectively. It reiterated its “Overweight” rating awarded by the same customer within two weeks for its advanced data storage manufacturing facility in Kuching, bringing the cumulative value of contracts and purchase orders secured for the project to approximately RM544 million. The latest package encompasses the design and build of ultra-high purity Deionised Water Generation and Wastewater Treatment Plant

Elevated stockpiles and seasonal production are seen as factors impacting palm oil prices. – BERNAMAPIC

2027’s minimum wage rise to RM2,000 from RM1,700, effective June 2027, is a key consideration for the plantation sector. The 17.6% rise could weigh on plantation companies’ earnings and affect their net profit by between 2% and 10%.

on the plantation sector. Apex Securities Bhd, mean while, has estimated that cumu lative CPO production through September had reached 71% of its full-year 2026 forecast of 20.7 million tonnes. It is maintaining its 2026 pro duction forecast, but El Niño’s lagged effects may impact pro duction in 1H’27. “We maintain average 2026 CPO price forecasts at RM4,500 per tonne, at RM4,800 per tonne in 1H’27, and RM4,600 in 2H’27. Apex Securities also said Budget

“Although Budget 2027 included other measures, such as continued commitments to industrial develop ment and the manufacturing sales tax reclaim, the higher minimum wage is likely to have the most significant impact on the sector,” it said. – Bernama Kelington bags RM128m contract, the third from same customer KUALA LUMPUR: Integrated engineering solutions provider announced on Sept 29 and Oct 5 respectively, alongside other

systems, for an advanced data storage manufacturing facility. These form part of the facility’s critical manufacturing and process utility infrastructure, with works to commence immediately and expected to be completed by April 2028. The group had earlier secured two other major contracts from the customer, valued at around RM172 million and RM133 million, as

contracts and purchase orders for the project. Collectively, these work packages span engineering, site infrastructure, structural steel works, and critical process utility systems, reflecting Kelington’s growing participation across different aspects of the facility’s development. CEO Lim Seng Chuan said,

Kelington Group Bhd through its wholly owned subsidiary Kelington Technologies Sdn Bhd (KTSB) has secured another contract worth about RM128 million on Oct 12, from a manufacturing company at Sama Jaya Free Industrial Zone in Kuching, Sarawak. This marks the third contract

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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