Business

PETRON Malaysia Refining & Marketing Bhd has warned that a continuing force majeure event at its Port Dickson refinery is expected to weigh on its financial performance and capital expenditure in 2026.

In a filing to Bursa Malaysia today, the company said the force majeure remains in effect as the product jetty, which is used to receive and discharge refined products between the refinery and tanker vessels, has yet to be restored after suffering damage during Cyclone Senyar last November.

Petron said debris clearing on the seabed alone is estimated to cost RM18 million and is ongoing, although progress has been hampered by poor weather conditions.

In parallel, the company is seeking bids from engineering firms to construct a replacement jetty at the same site once clearing is completed, noting that construction must take place on the allocated seabed plot due to the presence of subsea pipelines in the area.

The company flagged that the refinery shutdown, interim supply arrangements, jetty replacement and related costs are expected to have an adverse impact on its financials and capital expenditure in 2026, although it did not provide an estimate for the total restoration cost.

Petron added that supplies of gasoline and diesel at its service stations, as well as liquefied petroleum gas to customers, have remained uninterrupted. –TMR

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CELCOMDIGI Bhd has appointed Albern Murty as CEO of the group.

He has served as the group’s acting CEO since September 2025, following the departure of the previous CEO, Datuk Idham Nawawi.

In a statement today, CelcomDigi said Albern’s appointment followed the conclusion of an extensive search process that considered both internal and external candidates.

“The board of CelcomDigi is pleased to confirm the appointment of Albern as CEO. This appointment comes following the conclusion of an extensive search process for the next CEO of CelcomDigi, considering both internal and external candidates to ensure the strongest possible leadership to guide the company into its next chapter.

“The board looks forward to working closely with him and the rest of the management team to execute CelcomDigi’s strategic ambitions, drive future growth as Malaysia’s trusted connectivity partner, strengthen corporate governance, and continue building an organisation that is among the best places to work in Malaysia,” said board chairman Tengku Datuk Sri Azmil Zahruddin Raja Abdul Aziz.

Albern was part of the senior management team that led the foundational years of integration following the merger of Celcom and Digi on Nov 30, 2022, previously serving as deputy CEO before assuming the role of acting CEO.

He has more than 22 years of leadership experience in the telecommunications industry, including seven years as CEO of Digi.Com Bhd.

His previous roles at Digi include COO and chief marketing officer.

He has also served as executive vp and head of Emerging Asia for Telenor Asia.

Separately, CelcomDigi announced the appointment of Datuk Kamal Khalid as chief strategy, transformation and regulatory officer as part of a management reorganisation. 

Working closely with Albern, Kamal will drive the group’s strategic, transformation and efficiency initiatives, as well as stakeholder and industry engagement. —TMR

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BOUSTEAD Holdings Bhd has launched a 48-sen per share offer to privatise Boustead Heavy Industries Corporation Bhd (BHIC), proposing to acquire all remaining shares and preference securities it does not already own via a capital reduction exercise.

In a filing to Bursa Malaysia on Monday, BHIC said its 72.38%-owned parent intends to privatise the company through a selective capital reduction and repayment for all ordinary shares not owned by Boustead Holdings, alongside a capital reduction and repayment for the entire Redeemable Convertible Preference Shares Class A and Islamic Redeemable Convertible Preference Shares Class A.

Under the proposal, 155.86 million ordinary shares, representing 27.62% of BHIC’s total issued share capital, will be cancelled, together with 23.63 million RCPS A and 132.17 million RCPS-i A.

Upon completion, entitled shareholders and holders of the preference shares will receive 48 sen in cash for each BHIC share, RCPS A and RCPS-i A held, based on an entitlement date to be determined and announced by the board.

The privatisation will be funded through advances from Boustead Holdings to BHIC, with Boustead Holdings financing the advances via bank borrowings and/or internally generated funds.

Boustead Holdings said that it has sufficient financial resources to implement the proposal and that all entitled shareholders and preference shareholders will be paid in full in cash.

BHIC said further details are set out in the proposal letter issued by Boustead Holdings to the board, with relevant announcements to be made in due course in accordance with regulatory requirements.

Boustead Holdings is wholly owned by Lembaga Tabung Angkatan Tentera. –TMR

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by NURNABIHAH DINI

KHAZANAH Nasional Bhd will maintain its investment focus on connectivity and energy transition in 2026, while remaining cautious on global market risks, particularly the high concentration of returns tied to the US.

Its MD Datuk Amirul Feisal Wan Zahir (picture) said the sovereign wealth fund does not intend to materially reduce or significantly increase exposure to any new sectors next year, as its investment priorities are already anchored under its Malaysia Investment Strategy.

He said connectivity remains a key area of focus, particularly across airport and airline assets, while energy transition efforts will continue to emphasise grid resilience, renewable energy and related research and development initiatives.

“I wouldn’t describe it as doubling down. We’ve already set the strategy and the path going forward under the three main clusters,” he added. 

Khazanah chief investment officer Datuk Hisham Hamdan said portfolio diversification remains critical as global risks persist, noting that while emerging markets have delivered strong returns over the past two years, global equity benchmarks remain heavily skewed towards the US.

He said the US accounts for about 65% of global equity indices, meaning portfolio returns remain highly dependent on US market performance despite valuation concerns.

“That concentration is something we are mindful of when we think about risk,” he said, adding that emerging markets, including Malaysia, Asean and China, have outperformed in recent years, particularly in US dollar terms.

Khazanah remains overweight in emerging markets, which tend to perform well during periods of US interest rate easing, although Hisham cautioned that global market volatility remains a key factor guiding capital allocation decisions in 2026.

On geographic exposure, Khazanah said India continues to be an important part of its global investment strategy, having invested in the country since 2008, while China is receiving renewed attention as it enters a new phase of growth.

Hisham said Khazanah wants to avoid missing opportunities in China’s “right tail” of growth, citing renewed IPO activity in Hong Kong and the country’s strength in select industrial and technology sectors.

“India and China remain important for global diversification, alongside Asean,” he said.

On Malaysia Airports Holdings Bhd (MAHB), Amirul Feisal said the post-privatisation strategy is firmly focused on upgrading and optimising existing domestic airport assets rather than pursuing overseas acquisitions.

“There is so much to do at the moment when it comes to existing assets including improving standards, network connectivity and passenger experience,” he said.

Responding to questions on rare earths, Amirul Feisal said the sector should not be viewed as a near-term investment opportunity, highlighting the need for extensive validation, environmental assessment and long development timelines.

“These are large, long-term investments. A lot more work needs to be done on validation and environmental considerations before anything else,” he said, adding that rare earth development requires an integrated approach across the value chain.

Khazanah’s investment decisions for 2026 will continue to be guided by long-term portfolio resilience, diversification across geographies and asset classes, and alignment with national economic priorities rather than short-term market cycles.

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by NURNABIHAH DINI 

KHAZANAH Nasional Bhd recorded a resilient financial performance in 2025 despite heightened global volatility, with net assets rising to RM105 billion and a 5.2% return for the year, underpinned by disciplined execution of its investment strategy and long-term portfolio management.

The sovereign wealth fund’s seven-year rolling annualised return stood at 6.1%, reflecting sustained performance across market cycles. Total assets increased to RM156 billion as at end-2025, while profit from operations rose to RM5.6 billion. Khazanah paid RM2 billion in dividends to the government during the year.

MD Datuk Amirul Feisal Wan Zahir said 2025 demonstrated the fund’s ability to remain resilient amid volatile global conditions.

“Despite the volatility which everyone saw globally this year, we delivered a resilient financial performance,” he said at the Khazanah Annual Review 2026 briefing today.

Global markets in 2025 experienced significant fluctuations driven by geopolitical developments, trade-related uncertainties and shifting monetary policy expectations, including sharp market movements earlier in the year. 

Market sentiment improved towards year-end amid stronger fiscal spending in developed economies and expectations of interest rate easing.

Against this backdrop, Malaysia’s economic fundamentals remained supportive. The country recorded GDP growth of 4.9% year-on-year, exports expanded by 6.5%, tourism arrivals rose 12%, and approved foreign direct investment increased 30.2% year-on-year. 

The ringgit strengthened by 10% during the year, while the FTSE Bursa Malaysia Kuala Lumpur Composite Index rose 7%.

Amirul Feisal said Khazanah’s diversified portfolio enabled it to absorb market shocks while continuing to deliver long-term value.

“We are long-term investors, and we do look at the long-term growth of our portfolio,” he said, adding that consistency across cycles remains a core focus.

Public markets continued to be the main contributor to returns. In 2025, Malaysia public markets delivered a return of 6.7%, while global public markets generated 11.7% in ringgit terms. Over a seven-year rolling period, Malaysia and global public markets recorded returns of 6.6% and 10.1% respectively.

Private markets and real assets delivered seven-year rolling returns of 2.7% and 6.9% respectively, although 2025 returns were moderated in ringgit terms due to the strengthening ringgit.

Khazanah also completed several major portfolio actions during the year, including the privatisation of Malaysia Airports Holdings Bhd, an increase in its stake in edotco Group Sdn Bhd to 31.7%, the completion of Axiata Group Bhd’s XL–Smartfren merger in Indonesia, and the issuance of a US$500 million exchangeable bond in August.

Amirul Feisal said the transactions reflected Khazanah’s focus on disciplined execution while supporting national economic priorities.

“2025 for us was about disciplined execution of our mandate,” he said.

Under its Malaysia Investment Strategy, Khazanah continues to cluster domestic investments around key economic enablers, including connectivity, energy transition and digitalisation, while supporting firm-level transformation and ecosystem development.

Amirul Feisal said connectivity remains a critical area of focus, particularly in addressing gaps in long-haul air connectivity and strengthening tourism, business travel and cargo capabilities.

“This is not just about tourism, but also business travellers and cargo for trade,” he said.

Beyond financial performance, Khazanah continued to deliver socioeconomic impact through capacity building and community development initiatives. In 2025, RM330 million was deployed for these programmes, bringing cumulative contributions since 2006 to RM2.7 billion.

“Whatever we do, it is for the benefit of Malaysians,” Amirul Feisal said, adding that capacity building and community development remain central to Khazanah’s mandate.

Looking ahead, Khazanah expects Malaysia to sustain resilient growth in 2026, supported by strong private investment and foreign direct investment inflows, even as global growth moderates.

“For 2026, we will continue to focus on execution while strengthening portfolio resilience and delivering sustained contributions to the country,” Amirul Feisal said.

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by NURNABIHAH DINI 

KHAZANAH Nasional Bhd recorded a resilient financial performance in 2025 despite heightened global volatility, with net assets rising to RM105 billion and a 5.2% return for the year, underpinned by disciplined execution of its investment strategy and long-term portfolio management.

The sovereign wealth fund’s seven-year rolling annualised return stood at 6.1%, reflecting sustained performance across market cycles. Total assets increased to RM156 billion as at end-2025, while profit from operations rose to RM5.6 billion. Khazanah paid RM2 billion in dividends to the government during the year.

MD Datuk Amirul Feisal Wan Zahir said 2025 demonstrated the fund’s ability to remain resilient amid volatile global conditions.

“Despite the volatility which everyone saw globally this year, we delivered a resilient financial performance,” he said at the Khazanah Annual Review 2026 briefing today.

Global markets in 2025 experienced significant fluctuations driven by geopolitical developments, trade-related uncertainties and shifting monetary policy expectations, including sharp market movements earlier in the year. 

Market sentiment improved towards year-end amid stronger fiscal spending in developed economies and expectations of interest rate easing.

Against this backdrop, Malaysia’s economic fundamentals remained supportive. The country recorded GDP growth of 4.9% year-on-year, exports expanded by 6.5%, tourism arrivals rose 12%, and approved foreign direct investment increased 30.2% year-on-year. 

The ringgit strengthened by 10% during the year, while the FTSE Bursa Malaysia Kuala Lumpur Composite Index rose 7%.

Amirul Feisal said Khazanah’s diversified portfolio enabled it to absorb market shocks while continuing to deliver long-term value.

“We are long-term investors, and we do look at the long-term growth of our portfolio,” he said, adding that consistency across cycles remains a core focus.

Public markets continued to be the main contributor to returns. In 2025, Malaysia public markets delivered a return of 6.7%, while global public markets generated 11.7% in ringgit terms. Over a seven-year rolling period, Malaysia and global public markets recorded returns of 6.6% and 10.1% respectively.

Private markets and real assets delivered seven-year rolling returns of 2.7% and 6.9% respectively, although 2025 returns were moderated in ringgit terms due to the strengthening ringgit.

Khazanah also completed several major portfolio actions during the year, including the privatisation of Malaysia Airports Holdings Bhd, an increase in its stake in edotco Group Sdn Bhd to 31.7%, the completion of Axiata Group Bhd’s XL–Smartfren merger in Indonesia, and the issuance of a US$500 million exchangeable bond in August.

Amirul Feisal said the transactions reflected Khazanah’s focus on disciplined execution while supporting national economic priorities.

“2025 for us was about disciplined execution of our mandate,” he said.

Under its Malaysia Investment Strategy, Khazanah continues to cluster domestic investments around key economic enablers, including connectivity, energy transition and digitalisation, while supporting firm-level transformation and ecosystem development.

Amirul Feisal said connectivity remains a critical area of focus, particularly in addressing gaps in long-haul air connectivity and strengthening tourism, business travel and cargo capabilities.

“This is not just about tourism, but also business travellers and cargo for trade,” he said.

Beyond financial performance, Khazanah continued to deliver socioeconomic impact through capacity building and community development initiatives. In 2025, RM330 million was deployed for these programmes, bringing cumulative contributions since 2006 to RM2.7 billion.

“Whatever we do, it is for the benefit of Malaysians,” Amirul Feisal said, adding that capacity building and community development remain central to Khazanah’s mandate.

Looking ahead, Khazanah expects Malaysia to sustain resilient growth in 2026, supported by strong private investment and foreign direct investment inflows, even as global growth moderates.

“For 2026, we will continue to focus on execution while strengthening portfolio resilience and delivering sustained contributions to the country,” Amirul Feisal said.

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KINERGY Advancement Bhd has entered a long-term virtual power purchase agreement (VPPA) with Safran Landing Systems Malaysia Sdn Bhd, a unit of France’s Safran Group, to offset the electricity consumption of Safran’s Negeri Sembilan manufacturing plant.

Under the 21-year agreement, Safran will purchase 80–108 GWh of renewable electricity annually, with an option to extend the term.

The VPPA, a financial rather than physical contract, allows Kinergy to deliver renewable electricity from hydropower facilities into the national grid while Safran secures environmental attributes and a financial hedge linked to the output.

Kinergy executive deputy chairman Datuk Lai Keng Onn said the agreement helps multinational corporations accelerate decarbonisation despite infrastructure constraints.

The deal builds on Safran’s existing integration with Malaysia’s only Organic Rankine Cycle waste heat recovery facility and broadens clean energy solutions by introducing hydropower as a reliable source within a VPPA framework, reinforcing Kinergy’s position as a provider of complex renewable energy solutions.

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HIBISCUS Petroleum Bhd has started construction of a 12MW ground-mounted solar photovoltaic plant in Sungai Liang Industrial Park, Brunei, as part of its energy transition strategy.

The facility, spanning 10.52 hectares, is expected to supply its first power by year-end exclusively to the company’s low-pressure compressor at the onshore processing plant.

The project aims to generate stable cash flows, support long-term returns, reduce operational emissions, and enhance energy reliability.

It aligns with Brunei’s goal of achieving at least 30% renewable energy capacity by 2035, while supporting energy efficiency and emissions reduction efforts.

Its MD Datuk Kenneth Pereira said the project strengthens Hibiscus’ energy transition portfolio and Brunei presence, laying the groundwork for further expansion into power generation.

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KUCHING — The Kuching High Court today granted five Petroliam Nasional Bhd (Petronas) subsidiaries leave to seek judicial review over RM120 million in penalties imposed under Sarawak’s gas distribution law.

Judicial Commissioner Dean Wayne Daly ruled that the applicants had raised an arguable case and the issues should be heard in a substantive hearing.

The court, however, did not grant a stay on the imposition of the financial penalties.

The applicants – Petronas Carigali Sdn Bhd, Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, Malaysia LNG Tiga Sdn Bhd and Petronas LNG 9 Sdn Bhd are seeking to quash notices of financial penalty issued under Section 7 of the Distribution of Gas Ordinance (DGO) 2016.

They were penalised for allegedly failing to apply for licences to operate in Sarawak, with eight notices of RM15 million each issued against them, amounting to RM120 million.

The applicants’ legal team comprised lawyers Khoo Guan Huat and Alex Ngu Sze Shae, while the respondents were represented by State Legal Counsel Datuk Seri JC Fong and State Senior Counsel Mohd Adzrul Adzlan from the State Attorney General’s Chambers.

The court fixed March 2 for case management. — BERNAMA

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PENDANG — Food manufacturer Mudim Zakaria Food Industries Sdn Bhd has invested RM10 million in the purchase of high-technology machinery to increase production capacity and ensure the quality of its products.

The marketing and brand manager of the small and medium enterprise (SME), Mohd Izzad Al Syafiq Abdul Karim, said the new production machinery is capable of producing up to 12 million units of products annually, compared to about seven million units at present.

He said the company’s production had previously relied entirely on old machinery that was more than a decade old and was no longer able to cope with rising market demand.

“Last year, we produced 7.2 million units using the existing machines, even though their actual capacity was only about four million units a year, resulting in overuse beyond their limits,” Mohd Izzad told reporters here today. 

He said that operating the machinery beyond its capacity had led to several product quality issues, particularly involving soy sauce and chilli sauce, forcing the company to recall several products from the market.

Mohd Izzad said the new production machinery, which is currently undergoing trial runs, is expected to ensure consistent quality and enhance the efficiency of the company’s production operations.

Meanwhile, the company is actively implementing product quality recovery measures following complaints from distributors and consumers since last year.

“We have tightened quality control and conducted a comprehensive investigation into the issues raised, including taking drastic action in the mechanical and technical aspects of production,” he said.

Mohd Izzad highlighted that the company’s halal certificate had previously been suspended for review in line with a new policy, but was reinstated on Dec 15 last year.

He clarified that the suspension was not due to the use of prohibited ingredients or product hygiene issues.

Mudim Zakaria Food Industries, which operates in Kampung Jelutong here, currently produces some 20 types of food products, including soy sauce, chilli sauce, vinegar, sardines and cooking powders, and has 2,000 distributors nationwide. — BERNAMA

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