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  • Funding Societies and STACS ESGpedia Empower SMEs for Sustainable Growth

    Funding Societies and STACS ESGpedia Empower SMEs for Sustainable Growth

    KUALA LUMPUR, 15 August 2024 – Funding Societies, Southeast Asia’s largest unified digital
    finance platform for small and medium enterprises (“SMEs”), in collaboration with STACS
    ESGpedia, Asia’s leading ESG data and technology company, successfully hosted an ESG
    Gathering titled “Fostering Sustainable Growth: Empowering SMEs within Supply Chains
    Through ESG Reporting.” The event aimed to equip SMEs with the necessary tools and guidance
    to navigate the complex landscape of ESG reporting, thereby advancing their sustainability
    practices and enhancing business resilience.

    Mr Rizal Dato’ Nainy, CEO of SME Corp. Malaysia delivered the keynote speech, focusing on the
    critical role of ESG for SMEs and highlighted the government’s ongoing support for sustainability
    initiatives. He noted that integrating ESG principles into business operations is now essential for
    SMEs to remain competitive and resilient. Besides Funding Societies and STACS ESGpedia,
    the event also features speakers from Capital Markets Malaysia (“CMM”) and Thoughts in Gear (“TIG”), underscoring the importance of collective action in driving sustainable growth. Speakers from CMM and TIG also contributed valuable insights into how SMEs can adopt and benefit from
    ESG practices.

    The importance of ESG reporting was further underscored by discussions on how it can drive
    innovation, enhance brand reputation, and attract investment opportunities. In an increasingly
    competitive market, SMEs that integrate ESG practices stand to benefit from stronger business
    resilience and improved access to capital. The gathering highlighted that the growing demand for
    transparent ESG disclosures from financial institutions, consumers, and regulatory bodies is not
    just a trend but a fundamental shift in how businesses operate in future.

    Chai Kien Poon, Country Head, Funding Societies Malaysia, remarked,” 97% of businesses
    in Malaysia are SMEs. A common misconception persists that ESG is only relevant to large
    corporations and multinational companies (“MNCs”). However, SMEs within the corporate supply
    chain must also deal with more complex regulations, meet higher quality standards and adjust to
    specific demands of the corporate partners. SMEs often overlook the impact of ESG to their
    businesses. It is clear that SMEs must choose new and innovative strategies that allow their
    businesses to stay agile and collaborative. Especially, in the midst of increased regulatory and
    investor requirements for listed companies and MNCs to act on climate change and other
    environmental issues.”

    “Funding Societies is committed to provide Malaysian SMEs with access to financing and support
    their journey towards adopting sustainable business practices. We are excited to extend our
    partnership with STACS ESGpedia in Malaysia to advance our mission. We hope this event will
    help to empower Malaysian SMEs to become more mindful of their activities and equip them with
    the resources needed to start their ESG journey.

    Benjamin Soh, Founder and Managing Director at STACS ESGpedia, said: “As an ESG
    reporting platform in the Capital Markets Malaysia’s Simplified ESG Disclosure Guide (“SEDG”)
    Adopter Programme, we are delighted to be furthering our partnership with Funding Societies to
    facilitate ESG reporting amongst Malaysian SMEs. This will help SMEs in the country better
    position themselves and manage the increasing ESG regulatory requirements today. With SMEs
    contributing largely to Asia’s supply chains, digital enablement will be a key factor affecting the
    region’s supply chain competitiveness, especially for carbon-intensive markets.”

    The ESG Gathering served as a significant step towards closing the ESG data gap among
    Malaysian SMEs, highlighting the importance of sustainable practices and providing the
    necessary tools to help SMEs thrive in an increasingly ESG-focused world.

     

     

  • 2ND MALAYSIA CARBON MARKET FORUM BY BURSA CARBON EXCHANGE: A LEAP FORWARD IN ACCELERATING MALAYSIA’S CARBON MARKET

    2ND MALAYSIA CARBON MARKET FORUM BY BURSA CARBON EXCHANGE: A LEAP FORWARD IN ACCELERATING MALAYSIA’S CARBON MARKET

    Key highlights include;
    • ASEAN Common Carbon Framework to facilitate development of a
    regional carbon market ecosystem
    • Launch of the Malaysia Carbon Market Association (MCMA)
    • Conceptualisation of a fundraising platform for domestic carbon
    projects

    Kuala Lumpur, 8 August 2024 – Bursa Carbon Exchange (“BCX”), a wholly-owned
    subsidiary of Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”), is pleased to put
    forth the second instalment of its Malaysia Carbon Market Forum (“MCMF”) in Kuala
    Lumpur today. Themed “Empowering Climate Actions through Carbon Market,” MCMF
    centres on exploring best practices to advance Malaysia’s carbon market ecosystem in
    support of the national climate agenda. The event was officiated by Datuk Dr Ching Thoo
    a/l Kim, Secretary-General of the Ministry of Natural Resources and Environmental
    Sustainability of Malaysia (NRES), who also delivered the keynote address.

    Commenting on the forum’s significance, Tan Sri Abdul Wahid Omar, Chairman of Bursa
    Malaysia said, “Our carbon market is rapidly evolving, presenting enhancements and new
    opportunities that Malaysia can leverage on, to advance its commitment to net-zero.
    While Malaysia has significant potential for prospective carbon projects capable of
    generating valuable carbon credits, the market continues to encounter challenges such
    as limited liquidity and a reliance on international standards. Today’s forum brings
    together participants from the public and private sectors, both domestically and
    internationally, to exchange ideas and begin to address these challenges. We hope this
    will accelerate progress in Malaysia’s carbon market and ultimately, foster a vibrant
    carbon market.”

     

    This ties in well with the ASEAN Common Carbon Framework, an initiative which is
    expected to expedite the development of a cohesive ecosystem in the region, via carbon
    market collaborations. The proposed regional framework was discussed in a roundtable
    hosted by the ASEAN Business Advisory Council (ASEAN-BAC) of Malaysia, held in
    conjunction with the forum. The framework intends to facilitate the development of
    national carbon standards by interested ASEAN Member States, by encouraging mutual
    recognition of methodologies and the sharing of resources in targeted strategic areas
    such as capability sharing, and the interoperability within the ASEAN region. This regional
    development is also timely given Malaysia’s upcoming Chairmanship of ASEAN in
    2025, in part towards advancing the sustainability agenda.

    Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia explained further,
    “The proposed ASEAN Common Carbon Framework is in line with ASEAN’s collective
    commitment to addressing climate change and supporting the vision of the ASEAN
    Strategy for Carbon Neutrality1

    . This is pivotal in developing member countries’ national
    carbon standards, which is key to unlocking domestic carbon project opportunities.”

    “The framework will foster greater linkages among voluntary and compliance carbon
    markets within ASEAN, to promote market liquidity and enhance carbon pricing efficiency.
    We envisage this will accelerate the growth of carbon projects, attracting local and
    international credit buyers to the region.”

    Another highlight of today’s MCMF was the launch of the Malaysia Carbon Market
    Association (MCMA) by Datuk Dr Ching Thoo, NRES Secretary-General, in the presence of
    several MCMA founding members’ CEOs and senior management, MCMA executive
    committee members, and ASEAN-BAC Malaysia council members. The MCMA has been
    established to facilitate and accelerate the development of the Malaysian carbon market
    through inputs towards the formulation of national carbon market policies, talent
    capability building and strategic collaborations with domestic and international carbon
    market participants.

     

    “Bursa Malaysia is pleased to be among the founding members of the MCMA and to
    contribute a seed fund, to mobilise initiatives needed to strengthen the carbon market
    ecosystem in Malaysia. Specifically, our contribution aims to nurture the local talent pool and support ecosystem players to be ready to undertake opportunities via carbon markets,” added Datuk Muhamad Umar.

    Notably, this year’s MCMF established an official collaboration with the International
    Emissions Trading Association (IETA), with Dirk Forrister, the CEO and President of IETA,
    attending as both a partner and speaker. According to Dirk, “In order to achieve the goals
    of the Paris Agreement, we need to develop carbon markets in all corners of the globe, to
    ensure that reductions are made wherever they can, and that efficient systems allow
    those reductions to flow to where they are needed. A robust carbon market in Malaysia is
    one of the key elements to connect global buyers to the immense potential of climate
    action in Malaysia.”

    Other speakers at the forum included among others, representatives from the Indonesia
    and Thailand governments; independent environmental attribute standards such as Verra,
    Gold Standard and the I-TRACK Standard Foundation; as well as carbon associations from
    Malaysia, Indonesia and Thailand. The forum also featured speakers from the energy
    sector, including the Energy Commission of Malaysia, PETRONAS and Sarawak Energy
    Berhad; carbon project developers such as Permian Global and SaraCarbon; and financial
    sector representatives from CIMB Bank and Macquarie Group.

    The MCMF’s final plenary session that focused on financing carbon projects concluded
    with an invitation for participants to join Bursa Malaysia’s Industry Working Group (IWG) to
    address financing gaps in carbon projects. The IWG’s goal is to develop a conceptual
    framework for a fundraising platform for domestic carbon projects. Relevant stakeholders
    such as project developers, carbon project consultants, investors, or financial institutions
    are encouraged to register their interest via the interest form.

    The Malaysia Carbon Market Forum that was inaugurated in 2023 is BCX’s annual flagship
    event dedicated to driving conversations and actions that shape and advance Malaysia’s
    carbon market. The forum continues to raise awareness and facilitate for knowledge
    sharing and networking among the business community and carbon market players, with
    the goal of supporting Malaysia’s and ASEAN’s transition to a low-carbon economy.

    This year’s MCMF attracted over 350 physical and more than 400 virtual attendees from
    both international and local carbon communities. Penan and Kenyah artisans from
    Sarawak were invited to showcase their crafts as part of BCX and Sarawak Energy’s
    support for these communities.

  • SUNWAY PYRAMID’S OASIS TO BOOST TENANT DIVERSITY AND FOOTFALL IN Q4 2024

    SUNWAY PYRAMID’S OASIS TO BOOST TENANT DIVERSITY AND FOOTFALL IN Q4 2024

    Kuala Lumpur, 10 July 2024 – Sunway Pyramid, Malaysia’s prominent retail destination, is set to unveil Oasis, its reconfigured retail space, by Q4 this year. 

    Spanning over 250,000 sq ft across four levels from the Orange Atrium to the Blue Atrium, Oasis is a pivotal component of Sunway Pyramid’s enhancement initiative to attract a diverse array of high-yielding tenants and increase footfall.

    Positioned to be a cornerstone of renowned retail, the reconfiguration will accommodate approximately 100 tenants, including esteemed brands such as H&M Home, Art Toys Cafe by MILOLO and MUJI Flagship Store & Café, expanding the mall’s tenant portfolio to 1,000 in total.

    In a strategic move announced last year, Sunway Pyramid appointed Jaya Grocer as the anchor tenant for the redeveloped space, aiming to elevate asset yield through increased rents per square foot. 

    Presently, the prominent supermarket chain is located at level B2, and will soon relocate to a larger, permanent space with a brand-new concept at LG2.

    “With the upcoming unveiling of Oasis, we are making a critical advancement in our ongoing mission to elevate Sunway Pyramid’s retail experience,” said Jason Chin, Senior General Manager of Sunway Pyramid. 

    “This strategic enhancement not only broadens our tenant mix with leading brands but also positions us to attract higher footfall and drive sustained growth. By reconfiguring this substantial space, we are ensuring that Sunway Pyramid remains at the forefront of Malaysia’s retail landscape, delivering unparalleled value to both our tenants and visitors.”

    With Oasis’ projected NLA of 2 million sq ft, the reconfigured space is set to contribute significantly to Sunway Pyramid’s overall revenue and underscores the mall’s ongoing evolution to be Malaysia’s leading retail destination.

    In addition to Oasis, Sunway Pyramid has several other developments to enhance customer experience. 

    Since 2022, the mall has implemented Malaysia’s first internet-of-toilet (IoT) system, aimed at enhancing toilet facilities into a smart system for both customers and supervisors.

    Building on this innovation, the latest smart toilet addition with a modern neo-Egyptian theme, located behind Crème De La Crème, will serve as a model for future installations across the mall. 

    Key innovations for the smart toilet include: 

    • A traffic light system indicating cubicle occupancy
    • Squat pans with rear and frontal bidet functions
    • Low-level exhausts in urinals and cubicles to eliminate odours
    • Ammonia sensors that trigger housekeeping when high levels are detected
    • A backend system for detecting and rectifying faults
    • An emergency alert button for immediate assistance 

    The toilets will also be equipped with a family room, catering to parents with children and individuals with disabilities.

    Other enhancement initiatives include the mall’s all-in-one interactive self-service kiosk with easy-to-use interface, enhanced Sunway Malls App with features such as Easy Navigation, Deals & Events and Match N Munch, all-new escalators located in between the Blue to Orange Atriums that seamlessly connect from LG2 to F Floors as well as Electric Vehicle and Hybrid charging stations at CP2 Preferred Parking and B1 Preferred Parking.

    Another enhancement initiative is the Terrace, an outdoor space adjacent to Oasis slated for completion by Q2 2025. 

    This upcoming addition will offer a refreshing, nature-inspired environment and accommodate additional high-yielding tenants.

    These redevelopments support Sunway Pyramid’s goal to become the premier retail destination in the nation. 

    For more information about all of Sunway Pyramid’s latest enhancement initiative, visit www.sunwaypyramid.com or stay tuned to Sunway Pyramid’s social media pages for more updates. 

    -END-

  • PAN PACIFIC SERVICED SUITES KUALA LUMPUR WINS LUXURY LIFESTYLE AWARD FOR BEST LUXURY SERVICED SUITES IN MALAYSIA FOR THE SECOND CONSECUTIVE YEAR

    PAN PACIFIC SERVICED SUITES KUALA LUMPUR WINS LUXURY LIFESTYLE AWARD FOR BEST LUXURY SERVICED SUITES IN MALAYSIA FOR THE SECOND CONSECUTIVE YEAR

    Kuala Lumpur, Malaysia, 5 July 2024 – Pan Pacific Serviced Suites Kuala Lumpur, a premier choice for luxurious urban living in the prime Bukit Bintang area, is proud to announce that it has once again been recognized with the Luxury Lifestyle Award for the Best Luxury Serviced Suites in Malaysia for 2024. This marks the second consecutive year that the establishment has received this prestigious accolade, highlighting its commitment to delivering unmatched luxury and exceptional service to its esteemed guests.

    spacious suites, perfect for both short and long-term stays. Guests can choose from one or two-bedroom suites with fully equipped kitchens and modern amenities to ensure a sophisticated living experience, including premium Balmain Paris toiletries and en-suite bathrooms with rejuvenating rain showers.

    On the topmost level 25, guests can enjoy an array of exclusive facilities. The Living Room, a plush lounge, offers a meeting room, a pool table, a foosball table, and other recreational amenities. The Pacific Lounge serves breakfast and provides all-day coffee, tea, and juices. Additionally, guests can stay active at the TechnoGym fitness center and relax at the rooftop pool, which boasts breathtaking panoramic views of Kuala Lumpur’s skyline.

    A direct connection to the PARKROYAL COLLECTION Kuala Lumpur grants guests exclusive access to outstanding dining and spa services.  The central location of Pan Pacific Serviced Suites Kuala Lumpur ensures convenient access to the city’s major attractions, shopping districts, and business hubs.

    Luxury Lifestyle Awards is a global entity dedicated to selecting, recognising, celebrating, and promoting the finest luxury goods and services worldwide. The organisation employs a rigorous selection process, involving extensive online desk market research using publicly available data to maintain transparency and credibility. They consider factual information, referrals, recommendations, and publicly available materials, including company data, media sources, trade associations, market research platforms, social media, industry experts, and market data. The Luxury Lifestyle Awards research teams apply industry-specific criteria to identify top companies across various categories, including reputation, credibility, brand awareness, luxury experience, excellence, and personalization – TSI

  • TOP GLOVE DELIVERS SIGNIFICANTLY IMPROVED 3QFY2024 PERFORMANCE

    TOP GLOVE DELIVERS SIGNIFICANTLY IMPROVED 3QFY2024 PERFORMANCE

    Shah Alam, Wednesday, 19 June 2024 Top Glove Corporation Bhd or “Top Glove” today announced its financial results for the Third Quarter ended 31 May 2024 (3QFY2024), emerging from a protracted period of industry wide glove demand/supply imbalance, to deliver a substantially stronger performance as it moves closer to breakeven.

    For 3QFY2024, the Group registered Sales Revenue of RM637 million, an increase of 16% quarter on quarter and 20% year on year. Its operational losses reduced to RM34 million in 3QFY2024 from a loss of RM59 million in 2QFY2024, representing a 42% improvement. Meanwhile, Sales Volume which had been growing since 4QFY2023 continued its upward trend, rising 13% versus 2QFY2024, reflecting the Group’s steady recovery. The Group also achieved a Profit After Tax of RM62 million, up 255% compared with the preceding quarter and 152% higher than the corresponding quarter in FY2023. The improved profitability factors in gains from the disposal of excess land.

    On a 9 months basis, for 9MFY2024, the Group posted Sales Revenue of RM1.68 billion, marginally lower compared with 9MFY2023; while recording a significantly narrower Loss After Tax of RM26 million, a 94% improvement versus 9MFY2023.

    Raw material prices for 3QFY2024 were on an uptrend quarter on quarter, with the average natural latex concentrate price up by 20% to RM6.77/kg, while the average nitrile latex price rose 16% to USD0.89/kg.

    The Group’s more robust performance was driven primarily by stronger glove demand as customers replenished their glove inventories having cleared excess stocks. The resultant higher utilisation coupled with ongoing quality and cost optimisation measures also positively impacted the bottom line. Although raw material costs escalated in 3QFY2024, the Group successfully reduced its cost of production through multiple improvement initiatives. Moreover, with growing glove demand, the Group was able to share out some of the cost increases with customers through upward revisions in

    average selling prices (ASPs). In addition, the sale of excess land served to strengthen the Group’s profit and cash flow position, in line with a key objective of the Top Glove Turnaround Plan (T6).

    Mr Lim Cheong Guan, Managing Director of Top Glove remarked, “We are pleased to have seen a return to black this quarter as the glove industry turns a corner. This is largely attributed to improving glove demand as customers’ orders resume, alongside intensive efforts to level up our quality and cost efficiency, as well as gains from the sale of excess land. We remain deeply appreciative of our colleagues whose good efforts and commitment have been instrumental in accelerating our recovery.”

    Reflecting its enduring commitment to sustainability, Top Glove garnered a highly commendable score in its ESG Risk Rating by Sustainalytics, ranking number 1 out of 643 companies in the Healthcare industry, number 1 out of 58 companies in the Medical sub industry and number 91 out of 16,215 companies across all industries, on a global scale as at 19 June 2024. Headquartered in Amsterdam, Sustainalytics is a leading independent environmental, social and corporate governance (ESG) research, ratings and analytics firm which rates the sustainability of listed companies based on their ESG performance.

    Moreover, Top Glove remains committed to ensuring it fully meets the new obligations under the European Union Deforestation Regulation (EUDR), which come into effect on 30 December 2024. The Group’s compliance journey is on track and progressing well, with the first batch of EUDR compatible natural rubber gloves targeted to ship by July 2024.

    Additionally, Top Glove was honoured with the Platinum Trusted Brand Award in the Hygiene/Disposable Gloves category at the consumer vote-based Reader’s Digest Malaysian Trusted Brand 2024 awards, for the second consecutive year. The Company outperformed its competitors significantly by 25% in terms of total votes, achieving the highest average score across 6 key attributes: trustworthiness and credibility, quality, value, understanding of customer needs, innovation, and social responsibility.

    As of 18 June 2024, Top Glove was also included in Fortune magazine’s prestigious inaugural Southeast Asia 500 list, which ranks the largest companies in the region by their FY2023 revenue.

    Towards a more sustained recovery for both the glove industry and Malaysian economy, the Group also hopes for more clarity and consistency with regard to the implementation of foreign worker policy, which will enable corporates to better plan worker intake in line with manpower requirements.

    Poised for a Comeback: Brighter Days Ahead

    Supported by consistent improvements in its performance from quarter to quarter, Top Glove remains optimistic about industry prospects. As the industry recovers, the Group foresees the upward momentum will accelerate for Malaysian glove manufacturers with the high number of foreign

    manufacturers’ gloves being included on the U.S. Food and Drug Administration (FDA)’s import alert list. Top Glove also anticipates amplified business opportunities in the U.S. market following the U.S. government’s impending imposition of steeply increased tariffs on medical gloves from China, making it unfeasible for Chinese glove manufacturers to continue exporting to the U.S. Customers from the

    U.S. are expected to start moving away from outsourcing orders to China ahead of year 2026 when tariffs take effect, and Top Glove as a major glove exporter to the U.S. is optimally positioned to capture more market share from the potential trade diversion.

    Mr Lim said, “Top Glove has successfully navigated a highly challenging business environment to deliver considerably diminished operational losses in 3QFY2024. Our efforts resulted in a stronger foundation and more refined operational strategies. We have emerged stronger, leaner and more efficient; and are well placed to reclaim our market share and regain our leadership position.”

    ###

    About Top Glove Corporation Bhd

    Top Glove Corporation Bhd is listed on the Bursa Malaysia Stock Exchange Main Board and Singapore Exchange Mainboard. It is also one of the component stocks of the FBM Top 100 Index, FBM Emas Index, FBM Hijrah Syariah Index, FBM Emas Syariah Index and the Dow Jones Sustainability Indices (DJSI) for Emerging Markets. Top Glove has an established corporate culture and good business direction of producing consistently high-quality, cost-efficient gloves. Top Glove has over 2,000 customers worldwide and exports to more than 195 countries.

     

    Summary of key information:

     

    As at 19 June 2024
    Number of Factories 48 factories (41 in Malaysia, 5 in Thailand, 1 in China and 1 in Vietnam) comprising:

    • 37 glove factories
    • 2 latex concentrate plants
    • 3 chemical factories
    • 1 gamma sterilisation factory
    • 1 glove former factory
    • 2 packaging material factories
    • 1 dental dam factory
    • 1 face mask factory
    Number of Marketing Offices 7 (Malaysia, USA, Germany, Brazil, China, Thailand and Vietnam)
    Number of Glove Production Lines 788
    Glove Production Capacity 95 billion pieces per annum
    Number of Employees 11,000

     

  • Malton and RHB Collaborate to Offer Attractive Financing for Green-Certified River Park

    Malton and RHB Collaborate to Offer Attractive Financing for Green-Certified River Park

    Kuala Lumpur, 20 June 2024 – Malton Berhad (Malton or Group) has partnered with RHB Banking Group (RHB or the Bank) to offer attractive green home financing options for River Park homebuyers at Bangsar South. This partnership aims to make eco–friendly living more accessible for Malaysians seeking a sustainable lifestyle.

    Through RHB’s innovative Green Home Financing programme, River Park buyers can enjoy a loan margin of up to 95%, along with a 5% MRTA/MRTT/FEC (Mortgage Reducing Term Assurance/Mortgage Reducing Takaful Term/Finance Entry Cost).

    (from left) Fong Weng Chuin (Head, Developer & Realtor Management, RHB Banking Group), Jeffrey Ng (Managing Director, Group Community Banking, RHB Banking Group), Kelvin Choo (CEO – Property Development of Malton Berhad) and Angela Ong (General Manager, Sales & Marketing, Malton Berhad) formed a strategic partnership to promote sustainable living at River Park.

    “Targeting first–time homebuyers, this easy–entry financial program aims to incentivise their purchase decisions and provide them with the flexibility to own a sustainable urban home. Awarded a provisional GreenRE Bronze certification and integrated with EV charging stations, River Park attracts many urban professionals and young families looking for sustainable urban living surrounded by vibrant hubs. We will also to incorporate more green features into our upcoming projects, such as Park Green at Bukit Jalil City and Mutiara Lake Puchong,” stated Mr. Kelvin Choo, CEO of Malton Property Development.

    Mr. Jeffrey Ng Eow Oo, Managing Director of Group Community Banking, RHB Banking Group, added, “RHB recognises the crucial role of providing sustainable financing to support Malaysia’s transition to a low-carbon future. In 2023, we provided financing of close to RM700 million to support the development and certification of green buildings in Malaysia. We are pleased to partner with Malton to contribute to the growth of the green economy and progress towards a more sustainable future for all.”

    River Park offers a stunning view of Kuala Lumpur City Centre and great connectivity to nearby schools, medical institutions, and retail hubs such as Mid Valley, Bangsar Village and The Sphere. Malton has also invested RM10 million in constructing a new ingress from the NPE–Federal Highway link for enhanced accessibility. The well–developed infrastructure, including the nearby Angkasapuri KTM station and easy access to public transportation, leads to a significant carbon footprint reduction, aligning with Malton’s sustainability journey.

    The three tower blocks of River Park condominium, with Tower B being the latest release, have achieved a healthy take–up rate of 65%. The development comprises 1,332 units across three towers, offering a variety of well–designed, eco–friendly two—and three-bedroom layouts ranging from 812 sq ft to 1180 sq ft. With an estimated gross development value of RM1 billion, this project is slated for completion in 2026. – TSI

  • ECB starts to ease, but how far can interest rates fall?

    ECB starts to ease, but how far can interest rates fall?

    June 2024

    Azad Zangana, Senior European Economist & Strategist 

    While back-to-back cuts are unlikely, there is plenty of room for the European Central Bank to surprise cautious investors, according to Azad Zangana, Senior European Economist & Strategist at Schroders.

    The European Central Bank (ECB) has announced that its three main policy interest rates will be lowered by 25 basis points – the first cut in rates in almost five years. The move was unanimously expected by economists and almost fully priced by financial markets following strong hints of imminent easing by members of the Governing Council.

    Attention now turns to the future pace of easing which remains uncertain. An above-consensus rise in May’s Harmonised Index of Consumer Prices (HICP) inflation rate to 2.6% year-on-year had raised questions as to whether the ECB would cut at all. The unexpected print also clearly influenced the press conference communication following the decision.

    ECB staff projections for the headline annual inflation rate were raised for this year from 2.3% to 2.5%, and from 2% to 2.2% for 2025. However, the projections for 2026 remained unchanged at 1.9%, suggesting ongoing confidence that policy will return inflation to target. Indeed, during the press conference, ECB president Christine Lagarde explained that staff expect inflation to fluctuate above target for the rest of this year and into next year, before returning to the 2% target in the second half of 2025.

    Lagarde stated that while interest rates have been lowered, they remain restrictive, and will need to fall much further before they are considered to be neutral. This suggests that interest rates are likely to be lowered further over the rest of this year, even if inflation remains somewhat elevated.

    Lagarde also explained that the main cause for the persistence in inflation was a catch-up effect of wages to past price increases. This catch-up is now causing services companies to increase their prices. We can see this in the higher rates of services inflation compared to goods and the headline measure (see chart 1, below). Lagarde also mentioned that early indicators suggest wage growth is now stabilising. Meanwhile, data showing that companies are not passing on the full cost of wage increases (at the detriment of profits), suggests that inflation is likely to moderate.

    If the ECB is confident that the economy is on the right track, how fast can interest rates fall?

    Polling conducted by Reuters before the decision shows that the consensus amongst economists is for the ECB to cut rates twice more (quarter-point cuts) by the end of this year, and three times in 2025. However, investors appear to be more cautious. Pricing based on forwards of overnight index swaps (OIS) show that less than one more cut is priced for the second half of this year, and only two cuts for next year (see chart 2, below).

    By contrast, Schroders’ forecast is more optimistic, with three more cuts forecast this year, and two the next. This suggests some upside for both European fixed income markets (lower yields mean higher prices) and equity markets, which would be supported by higher economic growth, and lower discount rates.

  • RAM-CTOS BCI: Sustained business optimism in 2Q 2024

    RAM-CTOS BCI: Sustained business optimism in 2Q 2024

    KUALA LUMPUR, 11 July 2024 – The 2Q 2024 RAM-CTOS Business Confidence Index (BCI) survey indicated that businesses remain broadly optimistic. The overall index came in at 54.0 (1Q 2024: 53.4), staying above the neutral level of 50 for the second consecutive quarter. Corporate sentiment reached a high of 59.3 in 2Q 2024, up from 57.1 in 1Q 2024, while SMEs remained optimistic at 52.6 slightly down from 53.0 in the previous quarter.

    Figure 1: Overall business sentiment continues to improve in 2Q 2024

    * The RAM-CTOS sub-index commenced in 1Q 2022. Data points prior to this are derived from the main RAM BCI. The threshold that indicates positive sentiment is 50.

    Sources: RAM BCI and RAM-CTOS BCI MCO = Movement Control Order

    Respondents were more sanguine about their business performance outlook in 2Q 2024, with q-o-q improvement in both the sales (+2.1 points to 56.4) and profitability sub-indices (+1.5 points to 50.5). However, profitability sentiment remains relatively soft, just above the 50 neutral mark, inhibited by ongoing cost pressures. Rising cost of doing business continue to top the list of challenges, cited by nearly 80% of the 109 respondents, although this is a decrease from 90% in the previous quarter.

    “It is heartening to see positive sentiments in consecutive quarters, which bucks the trend of the past year. As business agility remains key in the coming quarters, we will continue to support businesses by providing real-time data analytics, digital solutions and on-ground training opportunities to ensure that SMEs are equipped to prosper through good times and remain prepared for future challenges,” said Erick Hamburger, Group CEO of CTOS Digital Berhad.

    Diesel subsidy retargeting appears to have minimal impact on sentiment

    Our survey results also show that the recent diesel subsidy retargeting did not appear to have dented sentiment of respondent firms. The 2Q 2024 survey was conducted from 27 May to 18 June. Based on responses received prior to the policy implementation on 10 June, overall sentiment index for corporates and SMEs would amount to 58.0 and 52.9 respectively. Reponses received after 10 June showed a higher sentiment index for corporate at 60.7, while SME sentiment was marginally lower at 52.2.

    Regarding the upcoming phase-out of blanket RON95 subsidies, around 67% of the 109 firms polled anticipate price increases for their products or services. Around 70% of respondents reported that RON95 constitutes up to 10% of their overall business costs.

    Figure 2: Sentiment remained healthy after diesel subsidy retargeting   Figure 3: Majority of firms surveyed anticipate price increases

    Source: RAM-CTOS BCI

    Concerns over increase in labour costs from progressive wage policy

    Firms are most concerned about the impact of higher labour costs arising from implementation of the progressive wage policy (PWP), as cited by around 61% of firms. This is followed by uncertainties regarding productivity benchmarks (46%) and compliance costs (42%). Despite these concerns, about 78% of firms foresee some benefits from the adoption of PWP, with enhanced employee morale and satisfaction (53%), greater talent attraction and retention (47%) and improved employee productivity (40%) being the most cited benefits.

    Figure 3: Needs in government assistance differ across business segments

    * Percentages sum to more than 100% as firms are allowed to pick more than one response Source: RAM-CTOS BCI

    Need for increased communication and marketing of PWP

    While the PWP is a much-discussed plan among policymakers and researchers, efforts to educate and market it to businesses can be further improved. Our survey indicates that some 52% of respondents have heard of PWP but are not familiar, while almost a quarter stated they are not aware of it at all. Interest is also fairly low, with only about 7% of firms surveyed indicating they would voluntarily participate and the majority, circa 64%, are undecided.

    “We welcome the implementation of the PWP, given the potential benefits of a restructured wage system, which links wage increases to training and upskilling. However, a more broad-based adoption is needed to realise its full benefits to the nation as a whole,” said Chris W.K. Lee, RAM Holdings Berhad Group CEO and Executive Director.

  • SC’s FIKRA ACE Seeks Fintech Startups to Enhance Islamic Capital Market

    SC’s FIKRA ACE Seeks Fintech Startups to Enhance Islamic Capital Market

    Kuala Lumpur, 11 July 2024

    The Securities Commission Malaysia (SC) is inviting applications for the second cohort of its FIKRA ACE Accelerator programme, part of the FIKRA ACE initiative.

    Launched in 2023, FIKRA ACE¹ is a three-year initiative aimed at advancing the Islamic Capital Market (ICM) through innovative Islamic fintech solutions. The programme comprises an Accelerator, Circle and Excel components.

    Following the success of the first cohort² last year, the SC is now inviting applications for its 2024 cohort. FIKRA Accelerator provides a platform for startups to develop innovative solutions, from ideation to minimum-viable product. The eight-week structured programme consists of workshops, mentorship, networking activities, and funding facilitation.

    The Accelerator programme is expected to start in August. It is opened to individuals or companies with less than three years market presence. Applications are open to both local and international applicants.

    The Malaysia Digital Economy Corporation (MDEC) is the strategic local ecosystem partner for the programme. MDEC will continue to support startups participating in the programme with the infrastructure, resources, and market knowledge to scale their businesses more effectively.

    The SC will also collaborate with the Islamic Development Bank as the global ecosystem partner, to help enrich contents of the programme with international insights and perspectives.

    Those interested are encouraged to register from today until 31 July 2024 at https://www.sc.com.my/fikra-ace/accelerator.

    ¹ FIKRA was launched in 2021 as part of the SC’s initiative to enhance the ICM ecosystem. In continuation, the SC is now organizing FIKRA ACE, a three-year initiative to facilitate the development of Islamic fintech through a structured approach.
    ² The two previous winners were Global Psytech, which focused on building a credibility scoring system for Islamic finance, social finance, and financial inclusion as well as Pewarisan, a fintech startup providing solutions for Islamic inheritance planning.

    For more information on the FIKRA ACE Accelerator programme, please visit https://www.sc.com.my/fikra. For inquiries, please write in to fikraace@seccom.com.my.

  • CITADEL GROUP AND GAMBIT GROUP FORGE ALLIANCE: STREAMLINING DIGITAL AND TRADITIONAL ASSET MANAGEMENT IN MALAYSIA

    CITADEL GROUP AND GAMBIT GROUP FORGE ALLIANCE: STREAMLINING DIGITAL AND TRADITIONAL ASSET MANAGEMENT IN MALAYSIA

    KUALA LUMPUR, 9 JULY 2024 – In a landmark move poised to reshape the landscape of financial services, Citadel Group and Gambit Group have inked a Memorandum of Understanding (MOU) to collaborate and offer innovative solutions to their respective clients and partners.

    The collaboration between these two industry leaders marks a significant step forward in bridging the gap between traditional and digital finance realms. With Citadel Group specializing in fiat currency trustee services and Gambit Group renowned for its expertise in digital currency trustee solutions, the partnership sets the stage for a seamless integration of traditional and digital asset management services.

    Gambit Custody, a subsidiary under Gambit Group, licensed in principle under the Securities Commission Malaysia (SC) as the second company of its kind, specializes in safeguarding digital assets such as cryptocurrencies, bitcoin, and ethereum. Meanwhile, Citadel Group, with its track record of five years of excellence since its establishment in 2019, offers Islamic-compliant wealth products and services catering to diverse clients’ needs.

    Speaking about the partnership, Dato’ Jeff S. Medina, Citadel Chairman and Group CEO commented, “We are excited to join forces with Gambit Group in this strategic partnership, which will innovate vast options for our clients by not only enhancing our fiat currency trustee services but also offering robust solutions in the realm of digital currency trustee. This collaboration exemplifies our commitment to staying at the forefront of the evolving financial landscape and delivering comprehensive wealth management solutions tailored to our clients’ diverse needs.”

    Under the terms of the MOU, Citadel Group’s clients will have the opportunity to appoint Gambit Custody for their digital asset custody needs, while Gambit Reserve Berhad’s clients will benefit from Citadel Group’s expertise in handling fiat currency trustee services for redeemable preference shares (RPS). This collaboration aims to provide clients with a comprehensive suite of wealth management solutions that encompass both traditional and digital assets.

    Gambit Group CEO, Datuk Clifford Hii added, “The synergy between Gambit Group and Citadel Group presents a unique opportunity to cater to the evolving needs of our clients in the rapidly changing financial landscape. Together, we are well-positioned to deliver seamless, integrated solutions that drive enduring financial success.”

    As Citadel Group celebrates its fifth year of establishment, this partnership with Gambit Group marks a pivotal moment in its journey towards international expansion by 2025, solidifying its position as a leader in the wealth management industry.

    END