In today’s episode, we explore the latest market-moving news in Malaysia and abroad—from AEON Credit’s digital banking drag to IGB REIT’s RM2.65B mall deal, EPF policy changes, and a growing global pivot away from the US dollar. As always, we connect the dots so you stay ahead of what really matters.
🇲🇾 Malaysian Company & Market News
🔹 AEON Credit Sees Lower Returns AheadROE forecast drops for FY2026 due to widening losses at AEON Bank. Profitability now only expected by FY2029—highlighting digital banking's long runway.
🔹 Crest Builder Secures RM233.3M JobAdds serviced apartment project in Bukit Jalil, boosting order book to RM1.7B. Earnings visibility extends over four years.
🔹 Destini Gets MRT Line 1 SubcontractsScope includes HVAC and brake system overhauls. Positive earnings impact expected over the next 20 months.
🔹 IGB REIT to Acquire Mid Valley Southkey MallMassive RM2.65B deal expands footprint to Johor. IGB plans to distribute sale proceeds as dividends—seen as a win-win by analysts.
🔹 PMCK Files for IPOHospital operator’s listing aligns with gov’t efforts to expand private healthcare access. Sector expected to grow amid regulatory support.
🔹 Mi Technovation Bets on Asia DemandConfident in semicon equipment recovery through new product launches and growing demand from Asia despite global caution.
🔹 Gas Malaysia Eyes DecarbonisationPartners to explore clean energy tech—part of diversification tied to the New Industrial Master Plan 2030.
🔹 Sapura Energy Still Under MACC ProbeTwo separate investigations ongoing. Allegations tied to misuse of funds and bribery—impacting investor sentiment.
🔹 Sime Darby Property’s SJCC Phase One Hits 80% Take-UpStrong demand for transit-oriented, sustainable housing. Reflects buyer appetite for connectivity and green living.
🏛️ Domestic Economy & Policy
🔸 EPF Adds Mandatory 2% Employer ContributionApplies to non-Malaysian workers from October. Aims to raise national savings—but industry groups warn of higher labor costs.
🔸 SST Applies to Commission-Based Financial ServicesStandard savings/current account charges exempt. 8% tax applies to fee-based financial services—boosting gov’t revenue.
🔸 FDI Inflows Surge in 2024Driven by Asian capital (Singapore, HK) into services. Underscores investor confidence in Malaysia’s long-term outlook.
🔸 Palm Oil Gets Boost via MEEPA AgreementPreferential access to European markets for MSPO-certified palm oil—lower tariffs, better recognition for sustainability.
🔸 BNM May Cut Rates in JulyLow inflation (1.2%) and ringgit strength support speculation of a 25bps rate cut. Regional trends add momentum.
🌍 Global & Market Developments
🪙 Central Banks Reduce USD ExposureDiversification into gold, euro, yuan picks up pace. Driven by US political uncertainty and shifting global power dynamics.
🇦🇺 Australia CPI Cools Faster Than ExpectedStrengthens case for RBA rate cut next month—adding to global easing trend.
✈️ Israel-Iran Ceasefire Spurs Market RallyAsian assets rebound. Oil drops to 1-week low—good for inflation, mixed for Malaysia’s oil-linked revenues.
⚖️ EU–US Trade Tensions EscalateEU threatens tariffs on US goods (incl. Boeing) if disputes persist. July 9 deadline looms.
🔒 US Bill Targets Chinese AI FirmsProposed ban on gov’t use of AI tools from China, Russia, Iran, and NK. Driven by data security concerns and tech sovereignty.
🛢️ Oil Volatile Amid Geopolitics & Fed UncertaintyPrices fluctuate as markets weigh Middle East stability and potential US rate cuts. Complex interplay shaping commodity markets.
📌 Key Takeaways & Investor Insights
✅ IGB REIT’s Johor mall move signals confidence in regional retail and dividend upside.✅ Digital banking remains a long-term play—AEON’s case is a reminder of the steep cost curve.✅ BNM may join regional easing wave, but inflation and external risks still matter.✅ MEEPA boosts palm oil prospects, while FDI inflows affirm Malaysia’s investment appeal.✅ The dollar’s dominance may be eroding—watch global reserve trends and trade tensions.
🎧 Listen Now for a deep dive into Malaysia’s financial gems and global trends shaping 2025!
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