03/06/2025

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TUESDAY | JUNE 3, 2025

Leading digital payments shift in Southeast Asia

Alliance Bank to maintain strong loan momentum in FY2026 KUALA LUMPUR: Alliance Bank Malaysia Bhd aims to maintain strong loan momentum in FY2026 amid Malaysia’s stable lending conditions. Group CEO Kellee Kam said the bank is guiding for loan growth of between 8% and 10% for FY2026, doubling the industry’s expected growth of around 5%. “We’ve been growing between 12% and 14% over the last two years, at double the industry rate. Despite the fluid situation with US tariffs and other global uncertainties, we believe Malaysia remains accommodative for growth,”he told reporters after the bank’s EGM on Friday. To fund the growth, Alliance Bank Malaysia Bhd is raising RM606.5 million through a renounceable rights issue. The bank will issue 182.13 million new ordinary shares on a 2-for-17 basis at RM3.33 per share, representing a 20.1% discount to the theoretical ex-rights price (TERP) of RM4.1672. Kam said the capital injection is meant to fuel the bank’s ongoing growth under its Accelerate 2027 plan. “So again, if you look at our first quarter GDP numbers, it was at 4.4% after a very strong last year. Last year was about 5.6%. “So we believe that the banking sector will continue to be accommodative for growth, sufficient liquidity and sufficient fiscal and monetary levers,“ he said. He said the bank wants to position itself with enough capital to continue that growth. “We want to not slow down because we believe that there’s an opportunity for Alliance Bank to continue that pace of growth.” Kam said the bank expects growth to remain broad-based across business segments, as seen in FY2025 when total loan growth of 12% was well distributed. “Consumer, which grew about close to 13%, ....about 12.6%. Our SME grew at about 10.5%. Commercial grew about 15%, and corporate grew about close to 9%. So it was fairly well distributed within the segments.” Kam said Accelerate 2027 was about broadening its engines of growth, which is how it has been able to grow much faster than it traditionally did. “If you look at the compounded annual loan growth pre-Covid – specifically the three years before the pandemic – we used to grow about 3.3% compounded annually. Now, our three-year compounded growth is closer to 10.5%–10.6%, which is nearly three times what it used to be.” The rights issue is expected to lift the bank’s core equity Tier-1 (CET1) ratio from 12.2% to 13.3%, and total capital ratio to nearly 18%, in line with larger peers. The rights issue is partially underwritten by RHB Investment Bank, which will underwrite 129.2 million shares – about 71% of the total. Rights trading runs from June 17 to 24, with the subscription deadline on July 2. The new shares will be listed on July 15. Alliance Bank FY2025 revenue up 12.3% y-o-y to RM2.3 billion and net profit rising 8.7% to a record RM750.7 million. Net interest income climbed 13.2% to RM1.95 billion, while net interest margin held steady at 2.45%. Non-interest income rose 7.7% to RM323.4 million. Total gross loans expanded by 12% to RM62.4 billion – more than double the industry’s 5.2% growth. Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Ű BY JOHN GILBERT sunbiz@thesundaily.com

o NTT Data Payment Services building ecosystem that blends global best practices with demands of local markets

KUALA LUMPUR: NTT Data Payment Services is strategically positioning itself at the forefront of transformation in Malaysia, the Philippines, and Thailand, as digital payments continue to reshape the economic landscape across Southeast Asia. The company aims to lead the evolution of digital payment solutions in the region by building an integrated ecosystem that blends global best practices with the demands of local markets. This forward-looking approach involves significant investment in next-generation payment platforms designed to enhance efficiency and security. Executive director and group CEO Sean Hesh ( pic ) said NTT Data Payment Services is expanding its cross-border payment capabilities to support growing regional commerce and facilitate smoother financial interactions. “With a clear focus on meeting the diverse needs of small and medium enterprises (SMEs), large corporations, and government linked initiatives, we are setting the stage to become a trusted partner in driving digital inclusion and economic growth across these dynamic markets,” he told SunBiz . Sean said with over 500,000 payment touchpoints, the company leverages data insights to enhance both customer experience and merchant performance. Its data platforms deliver actionable information – such as transaction patterns, customer preferences, and peak business hours – enabling merchants to optimise their operations. Additionally, by using predictive analytics, the company helps merchants personalise their services and increase customer engagement. “We invest heavily in real-time fraud monitoring and maintain strong, multi layered cybersecurity frameworks to safeguard our systems and customers. “Compliance with regulations like Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR) is fundamental to our operations. ‘Additionally, we collaborate closely with cybersecurity experts and regulators to stay ahead of emerging threats, ensuring safe and trusted transactions throughout the region,” he said. Sean said NTT Data Payment Services actively collaborates with banks, regulators, and fintech partners to advance cross

the future of payments in Southeast Asia. “They will enable real-time fraud detection, dynamic risk assessment, and highly personalised customer experiences. “As digital adoption continues to grow, these technologies will play a crucial role in building trust, reducing friction, and ensuring secure, scalable transactions across the region.” Sean also noted that sustainability is becoming a core part of the company’s technology and corporate roadmap. He said green fintech initiatives are being explored, including paperless onboarding, digital receipts, and energy-efficient infrastructure to minimise environmental impact. Internally, the company is also adopting eco-friendly workplace practices, such as reducing single-use materials and promoting responsible energy consumption.

border payment integration across Asean. He said these efforts focus on aligning payment standards, promoting interoperability, and streamlining onboarding and compliance processes. “By working together, the goal is to build a more connected and inclusive payment ecosystem that enables seamless, secure, and scalable transactions throughout the region,” Sean said. Further, in supporting SMEs and microbusinesses in Malaysia’s growing digital economy, Sean said NTT Data Payment Services is introducing a range of tailored solutions, including simplified onboarding, instant merchant approval, SME financing, and affordable payment acceptance options like QR pay and mobile POS systems. Touching on new technologies, Sean said: “Artificial intelligence and machine learning are set to fundamentally transform

Cautious trading ahead for rubber market amid supply concerns KUALA LUMPUR: The local rubber market is likely to remain on a downtrend this week as businesses are still cautious about the global market outlook, according to the Malaysian Rubber Glove Manufacturers Association (Margma). trade relations and China’s economic policies. Margma told Bernama that these will contribute to a volatile and uncertain market for rubber this week. weaker benchmark crude oil prices and a stronger ringgit against the US dollar. On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 42 sen to 698.5 sen per kg, while latex in bulk decreased by 6.5 sen to 620.5 sen per kg.

Industry expert Denis Low also echoed this view, noting that weather-driven supply disruptions could further add to market volatility. Last week the Kuala Lumpur rubber market ended on a downtrend, weighed down by declines in regional rubber futures markets,

The association said prices will likely be affected by the supply shortages due to the weather conditions, the strength of the ringgit, crude oil price movements, and the unpredictable nature of the United States-China

The Kuala Lumpur rubber market was closed yesterday in conjunction with His Majesty Sultan Ibrahim’s official birthday and will commence operations today.