Business

GRAB Holdings Ltd. reported first-quarter profit that exceeded analysts’ estimates, helped by resilient demand for ride hailing and delivery in a Southeast Asian market rattled by economic and political challenges.

Adjusted earnings before interest, taxes, depreciation and amortization rose to $154 million in the quarter ended March 31, the Singapore-based company said Tuesday. Analysts estimated $146.3 million on average, according to data compiled by Bloomberg. Revenue increased 24% to $955 million, also beating projections.

The company didn’t change its annual forecast, maintaining an annual sales outlook of $4.04 billion to $4.10 billion. It expects adjusted Ebitda of $700 million to $720 million. Grab’s shares gained about 2% in late US trading. 

After years of spending to gain market share in Southeast Asia, Grab still faces tough competition from rivals led by Indonesian champion GoTo Group. Grab is attracting users with products such as shared rides and deliveries in a sluggish economy, while curtailing a once-frenetic pace of expansion.

In a speech last week, Indonesian President Prabowo Subianto outlined a surprise plan to cap the ride-hailing commissions that companies like Grab and GoTo collect from drivers and riders in the region’s largest economy. The companies’ cut will be set at a maximum of 8% of fares, compared with about 20% previously, potentially squeezing margins and crimping revenue.

Indonesia is Southeast Asia’s biggest ride-hailing market, with millions of drivers relying on app-based transport and delivery services. Protests over pay and working conditions have intensified in recent years, with many drivers unhappy with what they’ve described as exploitative app policies and regulatory negligence.

Grab, backed by Uber Technologies Inc., has seen growth slow dramatically from triple-digit rates in years past as it takes steps to focus on profitability. An increased customer base has left the company with less room for user gains, prompting it to introduce novel offerings — including AI-powered concierge tools and ways to split ride fares with friends — to entice consumers in a challenging economy.

In a bid to alleviate the cutthroat competition, Grab has also been exploring a combination with Jakarta-based GoTo. The yearslong effort has been delayed by regulatory scrutiny as well as differences over perceived valuation. In the latest hurdle for a deal, negotiations have snagged over wireless carrier Telkomsel’s roughly 2% stake in GoTo.

Shares of Grab remain far below their initial price in its 2021 listing. The company has also taken steps to expand beyond ride hailing and delivery, betting on new initiatives in areas such as digital finance. –BLOOMBERG

The post Grab earnings top estimates on resilient ride, delivery demand appeared first on The Malaysian Reserve.

The group is sharpening its strategic focus on advanced packaging applications, which increasingly require high-accuracy and high-resolution vision inspection solutions 

SHARES of ViTrox Corp Bhd have surged back into focus after climbing 34% to RM5.61 within three weeks last month, prompting a reassessment of the group’s growth trajectory amid a strengthening semiconductor cycle. 

The rally comes as the automatic vision inspection solution provider is increasingly seen as a beneficiary of rising demand tied to artificial intelligence (AI) infrastructure, data centre expansion and a rebound in memory prices. 

The company itself has guided for stronger prospects ahead. In a recent exchange filing, ViTrox said it anticipates a sustained growth trajectory throughout 2026 as the global semiconductor industry enters a robust expansion phase. It noted the momentum is “primarily driven by escalating demand for AI, the expansion of data centre infrastructure and drastic price surge in the memory sector.” 

At the same time, the group is sharpening its strategic focus on advanced packaging applications, which increasingly require high-accuracy and high-resolution vision inspection solutions. To capture this opportunity, ViTrox is rolling out new products such as the QX1 Series, designed for ultra-high-resolution 3D X-ray inspection of miniature and complex components. 

At this point, analysts tracking ViTrox are upbeat. The counter has nine ‘Buy’, two ‘Hold’ and two ‘Sell’ calls amongst analysts tracked by Bloomberg, with a 52-week consensus target price (TP) of RM6.08. The stock, which has traded between RM5.79 and RM2.95 over the past year. 

The counter closed at RM5.45 on April 30. 

The company’s largest shareholder is Datuk Chu Jenn Weng with a 25.7% followed by Siaw Kok Tong (17.3%) and Yeoh Shih Hoong (8.3%). Chu is the company’s MD/ president/group CEO. 

The company’s board of directors is led by Datuk Seri Kiew Kwong Sen. Two key members are Siaw and Yeoh, both EDs and senior executive VPs. Kiew, Chu and Siaw had stints at Hewlett-Packard (M) Sdn Bhd. 

Chu drives the company’s vision and growth

Robust Growth 

ViTrox’s latest financial results reinforce the improving outlook. For the first quarter ended March 31, 2026 (1QFY26), the group’s net profit more than doubled quarter-on-quarter (QoQ) to RM51.2 million, supported by revenue of RM267.1 million, up 89%. 

The company attributed the performance to stronger demand for its automated board inspection (ABI) and machine vision system (MVS) offerings, as the semiconductor industry recovered from a low base. 

“The expansion reflects our successful penetration into high-growth sectors, restoring volumes far above the previous year’s low base,” it said. 

ViTrox added that its stronger earnings were also supported by improved operational efficiency and a more favourable product mix compared to the prior year. 

Looking at a longer horizon, the group delivered a solid set of results for the financial year ended Dec 31, 2025 (FY2025), with net profit rising 47% year-on-year (YoY) to RM133.2 million, while revenue jumped 53% to RM843.1 million. 

The growth underscores the company’s ability to capitalise on the recovery in semiconductor demand while enhancing margins through operational improvements. 

Kiew leads the company’s governance and strategic direction

Turning Positive 

Research houses have turned increasingly upbeat on the counter, supported by stronger orderbook visibility and improving industry fundamentals. 

Hong Leong Investment Bank Bhd’s research arm HLIB Research has upgraded its call on ViTrox to ‘Buy’, with a higher TP of RM6.00 from RM4.35 previously. 

“We are turning more positive on ViTrox, supported by sustained orderbook momentum and clearer evidence of pricing power amid the current tight supply in the semiconductor equipment market,” it said. 

Following a recent plant visit, the research house noted that the group’s research and development efforts remain focused on Vision, AI and Robotics, with a push towards sub-1μm inspection capability. This is expected to position ViTrox’s platforms to address advanced packaging requirements such as through-silicon via (TSV) and copper pillar inspection in 2.5D and 3D packaging, allowing it to compete with global industry players. 

Similarly, CIMB Securities Sdn Bhd has maintained its ‘Buy’ call, raising its TP to RM5.90. It expects the group to sustain its growth momentum into 2026, supported by demand from AI infrastructure deployment, 5G expansion and electric vehicle (EV) applications. 

“We expect ViTrox to sustain growth momentum into 2026F, supported by rising demand from AI infrastructure deployment, 5G expansion and EV applications,” it said, adding that the group is also set to benefit from a new product refresh cycle following the launch of its QX1 Series. 

The broader industry outlook remains supportive. World Semiconductor Trade Statistics (WSTS) projects global semiconductor sales to grow 26.3% in 2026, led by strong demand in the logic and memory segments driven by hyperscale data centres and generative AI expansion. 

Siaw oversees key operations and execution

To meet rising demand, ViTrox has been ramping up capacity. It has increased its monthly machine vision system — Texas (MVST) assembly capacity to 40 machines from 30, supported by a 30% expansion in floor space at its Campus 2 facility. 

“The group is also securing additional raw materials and inventories to shorten lead times and manage short-term order surges. These initiatives should ease capacity bottlenecks and support sustained revenue growth in 2026F,” according to analysts. 

However, not all research houses are equally bullish. BIMB Securities Sdn Bhd has downgraded the stock to ‘Hold’, albeit with a higher TP of RM5.30, citing limited upside and a balanced risk-reward profile at current levels. 

Meanwhile, Apex Securities Bhd has maintained its ‘Buy’ rating, highlighting a strong book-to-bill ratio of 1.3 times in 1QFY26 as an indication of robust demand momentum. 

Despite the positive outlook, risks remain. Currency volatility and geopolitical uncertainties could weigh on near-term performance, although ViTrox has indicated that it is implementing proactive cost management measures to defend margins. 

On balance, the group appears well-positioned to benefit from structural tailwinds in the semiconductor sector, particularly those linked to AI and advanced packaging. While valuation concerns may temper near-term gains, its strong earnings momentum, technological capabilities and expanding capacity suggest that ViTrox remains a key proxy for investors seeking exposure to the ongoing semiconductor upcycle. — TMR

• This article first appeared in The Malaysian Reserve weekly print edition

The post ViTrox rides AI-driven semiconductor upcycle, analysts turn more bullish appeared first on The Malaysian Reserve.

Translating ideas into scalable, commercially viable outcomes remains a challenge for corporates 

by AUFA MARDHIAH 

THE Corporate Innovation Global Summit (CIGS) 2026 brought together corporates, start-ups, investors and policymakers around a shared ambition to push innovation beyond pitch decks and pilot programmes into real deployment and measurable business outcomes. 

That broader focus was reflected in two panel sessions that tackled the issue from different but closely linked angles. First, why corporate innovation continues to stall despite years of ecosystem-building, and second, what corporations are actually looking for before they are willing to adopt and scale new ideas. 

Together, the sessions suggested that Malaysia’s innovation gap is not simply about tech or talent, but about whether ideas can survive bureaucracy, align with market demand and win enough leadership support to move beyond experimentation. 

Why Innovation Keeps Stalling Inside Corporates

Malaysia’s push to drive corporate innovation is being slowed not by a lack of tech, but rather by internal bureaucracy and a strong focus on short-term returns among large companies. 

With the title Ask Me Anything Live: What Corporates, Investors & Governments Won’t Say About Innovation, speakers said structural and cultural barriers within organisations continue to hinder collaboration with start-ups. 

More importantly, the session heard that while start-ups often highlight the uniqueness of their tech, corporations are primarily assessing whether solutions can deliver revenue within one to three years. 

As such, South Korea-based Groove Round Inc CEO Naia Jang said private firms tend to judge innovation less by its long-term potential than by how quickly it can deliver returns. 

“Private corporations, they don’t care about the long-term future. They care about how much money they can make within a year or within three years by spending their money and resources,” she said. 

That mismatch, in turn, has made it harder for start-ups to turn pilots into lasting commercial partnerships, especially when they are unable to show how a solution will lift revenue in the near term. 

Apart from that, internal corporate dynamics were also cited as a major constraint, with decision-making processes, risk frameworks, and job security concerns among managers contributing to slow adoption. 

Compounding the issue, speakers said intellectual property (IP) concerns remain a recurring friction point, with corporates seeking to maintain control while attempting to benefit from the agility of start-ups. 

Beyond that, the discussion pointed to a deeper cultural divide between start-ups and established firms. 

ASEAN Advisory senior advisor Datuk Sharil Tarmizi likened putting a start-up together with a large corporation with trying to teach a duck to talk to a chicken. 

“They may be the same feathered animals, they have the same intentions, but they cannot talk to one another,” said Sharil, who is also CIGS 2026 angel investor. 

The remark emphasised how differences in mindset and communication can frustrate collaboration. 

Meanwhile, the panel noted that Malaysia’s broader innovation ecosystem still lacks coordination, with limited interaction between corporates, start-ups, investors, researchers and other ecosystem players. 

Cradle Fund Sdn Bhd group CEO Norman Matthieu Vanhaecke said the problem is not a shortage of resources, but the difficulty of bringing them together in a way that produces meaningful commercial outcomes. 

“The money is there, the talent is there, but how do we put all this together? That’s the biggest challenge that we have,” he said. 

He added that the ecosystem should not be viewed as involving start-ups alone, but also buyers, clients, customers, investors, founders, researchers, government and the public, all of whom need to engage more openly with one another. 

In response, he said government-backed programmes are being used to catalyse collaboration that has yet to happen organically within the market. 

“The government’s role is always about trying to spark something, catalyse something and let the private world take it on automatically,” he said. 

Norman also highlighted Cradle Fund’s corporate innovation programme, which has been expanded into a second round, widening participation beyond government-linked companies (GLCs) to include a broader range of corporates, including public-listed firms. 

Even so, the panel stressed that structural changes within organisations, particularly around decision-making and commercial priorities, will be critical to unlocking more meaningful outcomes. 

Ultimately, the speakers agreed that without a shift towards valuing both commercial viability and long-term innovation, Malaysia risks continuing to see promising technologies fail to translate into real business impact. 

Participants at the What Corporates Want: Why Some Innovations Scale and Most Don’t panel session

What Corporates are Actually Willing to Back 

If the first session laid out why innovation often breaks down inside large organisations, the second turned to the other side of the equation: What corporates actually want before they are prepared to commit. 

Corporates are prioritising innovation that delivers clear commercial value, aligns with market demand and is supported by leadership willing to take calculated risks.

Panel speakers during a session titled What Corporates Want: Why Some Innovations Scale and Most Don’t agreed that businesses ultimately evaluate innovation through the lens of cost, risk and return rather than novelty. 

Basis Bay Sdn Bhd CEO Goh Eng Hui said innovation only counts when the market adopts it. Otherwise, it is just experimentation. 

He added that corporations, as business entities, will only scale innovation when there is clear commercial demand. 

He further explained that even highly advanced solutions may not gain traction if customers are not willing to pay for them, noting that innovation in sectors such as data centres has often been shaped by market needs rather than purely technological capability. 

Meanwhile, MacroKiosk co-founder and group COO Datuk Henry Goh said innovation within corporates has widened over time, moving beyond its traditional role of improving internal efficiency to a broader focus on products, services, and customer outcomes. 

According to him, when MacroKiosk first started, the company’s own innovation efforts were centred on staying ahead of competitors, remaining relevant and offering better solutions to customers, while many corporate clients were more focused on reducing costs and improving operational efficiency. 

Over the years, however, that distinction has narrowed as corporations themselves have become more product- and customer-driven in how they think about innovation. 

“They used to be very much an operational efficiency innovation. They have now also become a product-driven innovation. They ask, ‘what can I do for my customer? How can I make my customers better? How can I offer better services to my customers through innovation?’” he said. 

In that sense, Goh said the shift shows innovation is no longer just a supporting function within companies but has become central to how businesses stay competitive and relevant. 

“I think innovation now becomes not an option, but rather it is a necessity in everything that we are pursuing here,” he said. 

Even so, both speakers noted that risk appetite within organisations remains a major constraint, with many companies hesitant to pursue new ideas that may not deliver immediate returns. 

Goh said innovation inherently involves moving ahead of market demand, making it a high-risk endeavour that requires strong backing from leadership. 

At the same time, he pointed out that resistance can also come from within organisations, where employees may question the value of new solutions or worry about being displaced. 

The panel also highlighted that many innovation initiatives fail not because of weak tech, but due to gaps in execution and commercialisation. 

One of the exhibitors at CIGS 2026

In this regard, Goh said companies often underestimate the resources needed to bring products to market, including marketing, regulatory approvals and operational support. 

“If you spend a ringgit in terms of product development, you actually need to have two ringgits in terms of advertising the product,” he said, stressing that scaling innovation requires sustained investment beyond development. 

At the same time, Goh added that innovation must remain aligned with evolving customer needs, warning that even successful products can quickly become obsolete if companies fail to adapt. 

He cited the example of BlackBerry, which lost relevance as user preferences shifted, thereby underscoring the need for continuous renewal in innovation strategies. 

On artificial intelligence (AI), both speakers agreed that the tech is reshaping the competitive landscape, but cautioned that adoption alone does not guarantee meaningful transformation. 

In particular, Goh said AI is lowering barriers to entry by enabling smaller teams to do much more with fewer resources, making it harder for companies to claim they cannot compete with larger players. 

At the same time, he cautioned that firms should not mistake access to AI tools or employee training for genuine transformation. 

“What a company needs is to have an AI roadmap,” he said, adding that companies must decide which parts of their operations should use AI and how it will create value, rather than treating it as a blanket solution. 

Beyond that, the panel also pushed back against the notion of a talent shortage in Malaysia, with both speakers saying the country has strong capabilities but lacks sufficient opportunities for talent to grow locally. 

Goh added that the issue is not a shortage of talent, but whether companies are creating the right environment for them to grow. 

“The key part here is whether we are able to give these talents the opportunity, whether we have the chance for these talents to flourish,” he said. 

Ultimately, both speakers agreed that leadership plays a critical role in shaping innovation outcomes, particularly in setting the tone for risk-taking within organisations. 

In that respect, Goh said innovation must be driven from the top and supported by a culture that allows experimentation and accepts failure as part of the process. 

“Any innovation needs to come very much from the top, and we need to make sure that our employees are being given an opportunity to make mistakes,” he said. 

Taken together, the two sessions pointed to the same underlying conclusion. Corporate innovation does not fail because there are no ideas in the system. It fails when promising solutions run into organisational caution, weak coordination, unclear commercial value or a lack of leadership willingness to absorb risk. 

At the same time, the innovations that do stand a better chance are those that are market-driven, commercially practical and backed from the top.

• This article first appeared in The Malaysian Reserve weekly print edition

The post Corporate innovation push runs into execution gap appeared first on The Malaysian Reserve.

MISC Bhd has secured a 20-year contract from Petronas Gas Bhd for the supply, operation and maintenance of a floating storage and regasification unit (FSRU).

The group said it accepted the letter of award on April 30, 2026, with the project expected to commence in 2029. The FSRU services will be provided via a wholly owned subsidiary.

In conjunction with the project, MISC has also entered into a shipbuilding contract with Samsung Heavy Industries Co Ltd to construct the newbuild FSRU.

The contract marks MISC’s entry into the FSRU segment, building on its experience in liquefied natural gas carriers and floating storage units, and strengthens its collaboration with Petroliam Nasional Bhd in supporting domestic energy infrastructure.

The group said the project is not expected to have a material impact on its financials for the financial year ending Dec 31, 2026. — TMR

The post MISC secures 20-year FSRU contract from PetGas, enters regasification segment appeared first on The Malaysian Reserve.

XL Holdings Bhd is acquiring the business assets of 34 “GIANT Mini” minimart outlets across Malaysia for RM15 million, marking its entry into the convenience retail segment.

The acquisition is undertaken via its wholly owned subsidiary XL Retail Sdn Bhd, which entered into an asset purchase agreement with Jutaria Gemilang Sdn Bhd.

The deal covers tenancy rights, fixtures and fittings, equipment, inventories of about RM100,000 per outlet, as well as employees and goodwill associated with the outlets.

XL said the purchase will be funded via internally generated funds and will be completed by May 31, 2026, with full access to the outlets upon completion. The group will also be granted a one-year licence to use the “GIANT Mini” brand name, with options to extend.

The group said the acquisition is part of a strategic diversification into retail, which offers recurring income and established customer traffic, while reducing reliance on its existing core business. 

It is expected to contribute positively to earnings over time but may expose the group to execution, competition and margin risks associated with the retail segment. — TMR

The post XL Holdings to acquire 34 Giant Mini outlets in RM15m diversification into retail segment appeared first on The Malaysian Reserve.

INDUSTRONICS Bhd has been classified as a Practice Note 17 (PN17) affected listed issuer after its external auditors issued a disclaimer of opinion on the group’s financial statements for the financial period ended December 31 2025, citing pervasive limitations in audit scope and insufficient audit evidence.

The auditors said they were unable to obtain sufficient appropriate audit evidence over multiple key areas, including inventories, receivables, revenue, cost of sales, cash and bank balances, and payables. 

It also highlighted the absence of prior auditors’ working papers and incomplete appointment of component auditors for certain subsidiaries, which prevented them from verifying opening balances and completing group audit procedures.

Inventories were stated at RM21 million as at June 30, 2024 and RM1 million as at December 31, 2025, while trade and other receivables amounted to RM42 million and RM71 million respectively over the same periods. 

Revenue and cost of sales for the 18-month period were reported at RM40 million and RM38 million, but auditors said supporting documentation such as invoices and delivery records was insufficient for verification.

The audit report also flagged going concern uncertainty, noting that the group had ceased its principal business operations after the reporting period. 

Its ability to continue as a going concern depends on restructuring initiatives and financial support from related parties, for which sufficient evidence could not be obtained.

Following the disclaimer of opinion, Industronics triggered PN17 criteria under Bursa Malaysia’s Main Market Listing Requirements and is now required to submit a regularisation plan within 12 months, appoint a sponsor within three months, and comply with monthly disclosure obligations. 

The company said it is still formulating its restructuring plan and will announce developments as they arise.

The post Industronics enters PN17 after audit disclaimer of opinion triggers wide financial uncertainties appeared first on The Malaysian Reserve.

ADVANCECON Holdings Bhd has secured a RM47.6 million infrastructure contract from Johor Corporation (JCorp) for works at the Tanjung Langsat Industrial Complex in Pasir Gudang, Johor.

The contract was awarded to its wholly owned subsidiary Advancecon Infra Sdn Bhd and covers roadworks, drainage systems, street lighting, landscaping and related infrastructure across several internal roads within the industrial area.

The project is scheduled to be completed within 12 months from April 28, 2026.

Advancecon said the contract marks its third major Johor win in 2026, strengthening its presence in the state’s industrial corridor supported by the Johor-Singapore Special Economic Zone and rising cross-border activity.

The group said the project is part of its strategy to focus on infrastructure and industrial development works in high-growth regions, with emphasis on earthworks and civil engineering projects.

The post Advancecon wins RM48m Johor infrastructure works from JCorp appeared first on The Malaysian Reserve.

FEYTECH Holdings Bhd has secured a long-term contract through its wholly owned subsidiary Gosford Leather Industries Sdn Bhd to supply seat covers for an upcoming Proton model.

The contract from Perusahaan Otomobil Nasional Sdn Bhd is expected to start in the fourth quarter of this year and run for 84 months, generating about RM96.83 million in revenue over the period.

The group said the project is expected to contribute positively to earnings and net assets throughout the contract duration, with no unusual risks beyond normal automotive supply operations. 

It also noted that no directors, major shareholders or connected persons have any interest in the deal.

The post Feytech lands seven years Proton seat cover supply contract from Proton appeared first on The Malaysian Reserve.

EXSIM Hospitality Bhd has accepted a RM2.08 million subcontract from Epic Team Construction Sdn Bhd for interior and electrical works at Maybank KLCC.

The contract, awarded to its wholly owned subsidiary Exsim Concepto Sdn Bhd, involves a four-month scope starting May 11, 2026, with completion targeted for September 7, 2026. It also carries a six-month defects liability period.

The group said the job is expected to contribute positively to earnings, net assets per share and gearing over the project duration, and falls within its ordinary course of business, with no unusual risks beyond normal operational execution.

The post Exsim Hospitality unit secures RM2.1m fit-out job for Maybank KLCC project appeared first on The Malaysian Reserve.

CROPMATE Bhd said some of its and its subsidiary’s bank accounts have been partially released by the Malaysian Anti-Corruption Commission (MACC), following an earlier freeze involving RM12.21 million.

The group said it has submitted a further letter of representation via its solicitor, seeking the full unfreezing of all affected accounts.

The accounts were frozen under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. Cropmate had disclosed last week that the freeze, affecting both the company and Cropmate Fertilizer Sdn Bhd, was effective April 24 and that it was taking steps to resolve the matter.

The post Cropmate says some bank accounts unfrozen by MACC, seeks full release appeared first on The Malaysian Reserve.