26/07/2025

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SATURDAY | JULY 26, 2025

Sapura Energy secures Thai deals worth over RM500m PETALING JAYA: Sapura Energy Bhd has secured two new contracts from its long standing clients in Thailand, with a combined value exceeding RM500 million. The contracts were awarded to Sapura Energy (Thailand) Ltd, its wholly owned subsidiary, and involve an offshore installation and removal campaign, as well as subsea inspection, repair, and maintenance (IRM) services. The installation and removal contract was awarded by Chevron Thailand Exploration and Production Ltd and Chevron Offshore (Thailand) Ltd. The project is expected to be completed by the end of 2026. Sapura Energy’s engineering and construction team will lead the offshore works. The group has built a strong track record in Thailand, having delivered its first decommissioning project – a rig-to reef campaign – in 2020. Since then, the team has consistently delivered successful outcomes, including achieving 1.5 million man-hours without a single lost-time injury in a recent pipeline removal campaign. It also became the first company in Asia to implement the reverse S-lay method in pipeline decommissioning. Separately, Sapura Energy was awarded service orders for subsea IRM works by PTT Exploration and Production Public Co Ltd. The contract covers saturation diving operations at facilities within the G1/61 and G2/61 projects. These operations will be carried out by Sapura Energy’s operations and maintenance division, utilising its dedicated subsea construction vessel, Sapura Constructor . The vessel is equipped with accommodation for 120 personnel and supports up to 15 divers. Subsea IRM work commenced in the second quarter of 2025. Sapura Energy is also delivering similar IRM services for PTT Exploration in Malaysia. “These awards build upon Sapura Energy’s long-standing partnership with clients in Thailand, given the group’s proven track record for similar offshore campaigns in the Kingdom,” said Sapura Energy group CEO Muhammad Zamri Jusoh.

US tariffs – short-term shock, long-term opportunities

KUALA LUMPUR: While the US reciprocal tariffs announced on April 2 have unsettled equity markets and export-driven sectors, property leaders believe the disruption could accelerate the adoption of digital technologies, sustainable construction practices and regional trade integration within Asean’s real estate landscape. During a panel discussion titled “Industry Countermeasures: Ab sorbing the Recent US Tariff Shock waves” at the Asean Real Estate Conference and the Architecture, Interior Design and Building Exhibition 2025, three prominent figures – Real Estate and Housing Developers’ Association (Rehda) president Datuk Ho Han Sang, PropertyGuru Group’s head of real estate intelligence Dr Lee Nai Jia and United Overseas Bank senior Asean economist Enrico Tanu widjaja – said that while the new US tariffs – which are sche-duled to go into effect on Aug 1 – bring short term uncertainty, they also present potential long-term opportunities for the industry. Ho said Malaysian developers are bracing for softer demand in industrial, commercial and high end residential segments as ex porters negotiate who will absorb the higher costs. “Profit margins will be squeezed as importers and exporters split the burden,” he told the audience. “With higher prices, purchase Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

quick fix. The next midterm election in 2026 is the next real pivot.” He also urged governments and developers to prepare for techno logical disruption. “AI will transform customer service, marketing and operations. We must retrain workers for higher skill roles like architecture, design thinking, project integration, because low skill roles are most at risk.” All three panellists stressed innovation as a pathway through the turbulence. Ho highlighted Integrated Digital Delivery (IDD), a platform that digitally unites 180 industry stakeholders to cut errors and speed approvals, as a game changer already deployed in Singapore. “IDD minimises waste and aligns everyone from engineers to regulators,” he said. “Speedier approvals, like Penang’s recent 36 day affordable housing clearance, reduce costs and help projects move despite headwinds.” Green technology also surfaced as a competitive advantage. Lee pointed to Vietnam’s success in renewable energy during the first trade war. “This is our chance to lead with climate sensitive design and ESG frameworks tailored to Southeast Asia’s climate,” he said. Looking beyond domestic markets, Ho urged Malaysian developers to revive their overseas promotion campaigns, targeting buyers from Hong Kong, China, and Singapore. “Our products are inter nationally recognised and com petitively priced by Asean standards,” he said. “With stable governance and award winning townships, Malaysia can stand out.” Tanuwidjaja echoed the senti ment: “The higher tide will lift all boats but only if Asean rows together.” While uncertainties remain, the panel’s tone shifted from caution to resolve. The tariffs, they argued, could catalyse Asean’s next phase of growth by forcing integration, accelerating digital tools and prioritising sustain ability. “If you don’t change, you’ll be changed,” Ho said. “This is the moment for our industry to reinvent and emerge stronger.”

o Disruption could accelerate adoption of digital technologies, sustainable construction practices and regional industry integration within Asean’s real estate landscape: Experts

“But people quickly remembered that housing is a long term need. What changed is their behaviour where buyers are gravitating towards more affordable, value driven homes.” He highlighted Singapore’s Linton Woods project, which sold 94% of units despite tariffs, thanks to its proximity to transport and employment hubs. “Integrated developments are resilient,” Lee said. “The key is offering value and convenience.” He added that confidence in gover nance, stemming from Vietnam’s policy reforms to Malaysia’s interest rate cuts, continues to underpin the region’s housing markets. From a macro lens, Tanuwidjaja said the tariffs underline Asean’s need to boost internal trade and reduce dependence on external markets. “Intra-Asean trade is only 17%, compared to over 40% in the EU,” he said. “We need to integrate, use local currency settlements, harmonise regulations and build supply chains that loop within the region.” While describing Asean as “resilient”, he warned that volatility will persist throughout the current US administration: “Businesses must plan for turbulence, not a

volumes will drop and investors will be more cautious. Slower sales mean cash flow problems, and cash flow is reality; without it, there is no oxygen.” Ho noted that while most construction inputs are locally sourced, imported steel, alumi nium and glass may see price pressure if the ringgit weakens. The first sectors to feel the pinch, he said, will be export-driven industries scaling back factory expansions, reducing office space needs, and curbing retail growth. Yet he also flagged bright spots. “Tariffs on Chinese goods could redirect manufacturing to Asean, and a weaker ringgit may attract buyers from Singapore, Hong Kong and Taiwan into projects like Penang Silicon Island or the Johor Singapore Special Economic Zone.” Lee observed similar patterns across Asean. Using PropertyGuru’s platform data, he described a three stage reaction: initial shock, quick normalisation and preference reca libration. “After the announcement, views on listings in Singapore plunged, while Malaysia and Vietnam saw smaller dips,” he said.

Visitor Nur Aimi Aliah Mohd Yusoff looking at models of residential units on display in conjunction with Architecture, Interior Design and Building Exhibition 2025 on Wednesday. PropertyGuru’s head of real estate intelligence says buyers are gravitating towards more affordable, value driven homes. – BERNAMAPIC

“It also demonstrates our strategy of bidding for projects that are aligned to the group’s risk appetite, core capabilities, and vessel deployment efficiency,” he added. PublicInvest maintains neutral view on plantation sector

KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) has maintained a neutral outlook on the plantation sector, with crude palm oil (CPO) prices projected to remain stable in the second half of 2025, trading within RM4,000 to RM4,300 per tonne. The research house said in a note yesterday that the forecast is

less competitive, the US accounts for less than 3% of Malaysia’s palm oil exports in 2024, limiting the impact.” In contrast, the US government’s proposed expansion of biofuel man dates could drive up soybean oil prices, indirectly supporting the appeal of palm oil in global markets, it said. – Bernama

Meanwhile, lower production costs are anticipated in second-half 2025, despite earlier pressure from higher minimum wages and fertiliser costs. The research house said the imposition of 25% tariff by the United States on Malaysian palm oil products is unlikely to have a material impact. “While this makes Malaysian products

improve, driven by the wide palm oil soybean oil price differential and low inventory in the country,” it said. The investment bank said the full year CPO price forecast has been maintained at RM4,200 per tonne. Its top picks are Sarawak Plantation and Ta Ann, both offering attractive dividend yields of 5% to 6%.

supported by stabilised inventory after surpassing the two-million tonne level, alongside improved export momentum driven by price competitiveness against soybean oil. “At the point of writing, CPO futures are trading at RM4,330 per tonne. Export momentum, parti cularly to India, is expected to