Business

EWI Capital Bhd (formerly Eco World International Bhd) reported a net loss of RM10.88 million for the first quarter ended January 31, 2026 (1Q26), widening 190.4% from RM3.75 million in the same quarter last year.

The higher deficit was mainly due to a RM5.71 million impairment on amounts owed by its EWL Living joint venture, increased finance costs from new loans, and the cessation of results from joint ventures that have been fully written off.

At the consolidated level, the group recorded zero revenue, as its Australian projects were fully sold and handed over in FY25.

While joint ventures in the UK and Australia generated RM0.79 million in revenue, these are not consolidated into the group’s top line, and further losses are no longer recognised after the investments were written down to zero.

In a separate filing, EWI Capital said it is divesting its 100% equity interest in Eco World (Macquarie) Pty Ltd to Versione NODE Sdn Bhd for AU$32.0 million (RM89.66 million).

The purchaser is a 50:50 joint venture between Ascension Synergy Sdn Bhd and JLG Land Macquarie Park Sdn Bhd, the latter being a wholly-owned subsidiary of Eco World Development Group Bhd. 

The disposal of the Macquarie Park site in Sydney marks a major strategic shift for EWI Capital as it transitions from a property developer to an investment-holding and management model.

Its president and CEO Datuk Teow Leong Seng noted that while the site has development potential, the group is prioritising “nearer-term income” and capital recycling over the long cycles and risks associated with residential development.

Proceeds from the sale will be redeployed into income-generating assets, specifically supporting the group’s role as an anchor investor in the TrustCapital Australian Office Fund No. 3 (AOF3).

EWI Capital expects this pivot to yield immediate benefits, with AOF3 anticipated to start generating rental income and distributions by the second half of FY26.

Its president and CEO Datuk Teow Leong Seng noted that while the site has development potential, the group is prioritising “nearer-term income” and capital recycling over the long cycles and risks associated with residential development.

Proceeds from the sale will be redeployed into income-generating assets, specifically supporting the group’s role as an anchor investor in the TrustCapital Australian Office Fund No. 3 (AOF3).

EWI Capital expects this pivot to yield immediate benefits, with AOF3 anticipated to start generating rental income and distributions by the second half of FY26.

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MALAYSIA said airlines may need to suspend some flights if the Middle East war pushes fuel costs significantly higher.

Jet fuel accounts for almost half of airlines’ operating costs, Malaysia’s Transport Minister Anthony Loke said on Facebook late Thursday. He met with airline management, airport operators, jet fuel suppliers and aviation authorities to coordinate their response to the US-Israeli war with Iran.

The transport ministry “will discuss with airports and relevant stakeholders to support the survival of local airlines,” he said.

Airlines will also share data with Malaysia’s aviation authorities for a more comprehensive risk assessment, Loke said. “All parties also agreed to meet weekly as this crisis remains volatile and requires rapid action in the event of new developments,” he added.

In the short term, Malaysia needs to ensure that air cargo services for goods such as food can continue to operate “despite the increasingly challenging conditions,” especially in the run-up to the Eid-ul-Fitr celebrations next week, Loke said. –BLOOMBERG

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MN Holdings Bhd has secured a RM216 million contract to design and build a consumer substation for a data centre in southern Malaysia.

In a filing with Bursa Malaysia, the company said the contract was awarded to its wholly owned unit, MN Utilities Engineering Sdn Bhd. The scope includes the design, construction, installation, testing and commissioning of the substation.

Works will also cover the supply of labour, equipment and materials, perimeter fencing, and the connection of high-voltage cables between substation sites.

MN Holdings said it could not disclose the identity of the customer due to a non-disclosure agreement.

The project commenced on Feb 1 and is scheduled for completion by Sept 30.

The group said the contract is expected to contribute positively to its future earnings and net assets per share.

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by SHAHRIN AIZAT NOORSHAHRIZAM

PHARMANIAGA Berhad is on track to exit its Practice Note 17 status (PN17) soon following a sustained turnaround in its financial performance, according to the government-linked investment fund Armed Forces Fund Board (LTAT).

Defence Minister Datuk Seri Mohamed Khaled Nordin said the pharmaceutical group has recorded eight consecutive profitable quarters, with profit after tax reaching RM8.7 million in the fourth quarter of 2025, up from RM2.4 million a year earlier.

“Pharmaniaga is now on track to exit its PN17 status in the near future,” he said at LTAT’s dividend announcement ceremony today.

Pharmaniaga was classified as a PN17 company by Bursa Malaysia in February 2023 after triggering the financially distressed criteria under the exchange’s listing requirements. 

The classification came after the company recorded heavy losses linked to a RM552.3 million impairment on unsold Covid-19 vaccine inventories, which pushed the group into a significant quarterly loss and weakened its financial position. 

Founded in 1994, Pharmaniaga is one of Malaysia’s largest integrated pharmaceutical companies with operations spanning drug manufacturing, logistics, distribution and marketing. The group also supplies medicines to the public healthcare system through government procurement programmes. 

LTAT, which is the ultimate shareholder of Boustead Holdings — Pharmaniaga’s major shareholder — has been spearheading efforts to strengthen governance and restore the group’s financial footing as part of broader restructuring initiatives.

The company has undertaken several recapitalisation measures including rights issues, private placements and capital restructuring to strengthen its balance sheet as part of a regularisation plan aimed at exiting PN17 by 2026.  

Khaled said the recovery demonstrates the effectiveness of LTAT’s transformation initiatives across its portfolio companies and reflects stronger governance oversight.

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by SHAHRIN AIZAT NOORSHAHRIZAM

THE Armed Forces Fund Board (LTAT) has declared a 5.35% dividend for the financial year ended Dec 31, 2025, amounting to RM524.74 million — the fund’s highest distribution in eight years.

The military pension fund recorded total investment income of RM749.49 million during the year, while distributable profit stood at RM541.56 million.

Combined reserves rose 29.1% year-on-year to RM1.31 billion from RM1.01 billion previously, strengthening LTAT’s financial position in managing retirement savings for members of the Malaysian Armed Forces.

LTAT chief executive Mohammad Ashraf Md Radzi said the results reflect structural improvements implemented by the fund in recent years.

“We are encouraged by the sustained year-on-year performance and are confident of the Fund’s sustainability. The results announced today showcase that the Fund is stable and ready for its next phase of institutional growth,” he said in a press conference today.

Looking ahead, LTAT will accelerate its transformation under its 2026-2030 strategic roadmap known as “Gempur30”, which aims to strengthen portfolio resilience and redeploy capital into sectors with stronger long-term growth potential.

Defence Minister Datuk Seri Mohamed Khaled Nordin said the roadmap will also support the country’s defence ecosystem under the National Defence Industry Policy, including investments through Boustead Group in defence-related industries and housing initiatives for armed forces personnel.

The dividend marks the fourth consecutive year LTAT has delivered returns of 5% or higher. The payout will be credited to contributors’ accounts on March 13 through the MyWira application and the fund’s official website.

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T7 Global Bhd has secured a two-year contract to provide hydraulic workover services for EnQuest Petroleum Production Malaysia Ltd’s Package B3 well campaign.

The contract, which started on 19 February, covers a hydraulic workover unit, project management team, offshore supply vessels, pumping services, as well as fishing and wellbore cleanup equipment and services.

Hydraulic workover units are used for intervention, maintenance and repair on both live and emptied wells, and EnQuest’s campaign involves workover and plug-and-abandonment operations across multiple wells at various offshore platforms.

The award comes as Ptronas forecasts an increase in plug-and-abandonment activity to 70 wells in 2026.

“We remain optimistic of achieving stronger results in 2026 and the years ahead as industry activity continues to grow. We see a robust pipeline of potential plug-and-abandonment wells,” T7 Global ED Tan Kay Zhuin said. — TMR

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KNUSFORD Bhd plans to dispose of a 0.304-hectare freehold land in Setapak, Kuala Lumpur, to Tahap Juara Sdn Bhd for RM7 million.

The company said the sale allows it to monetise a non-core asset and unlock the property’s value.

Upon completion, Knusford expects a net gain of approximately RM4.55 million.

Proceeds from the disposal will be used for general working capital.

The board anticipates the transaction will be completed by July 2026, subject to necessary approvals. — TMR

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KUALA LUMPUR — Malaysian cinema chain, MBO Cinemas, has announced that it will cease operations permanently after many years of serving moviegoers across the country.

In a statement posted on its official social media account, the company said the decision was made with heavy hearts, marking the end of its long-standing presence in Malaysia’s cinema industry.

“After many incredible years, MBO Cinemas will now be ceasing operations permanently. The show is over,” the statement read.

The company expressed appreciation to its customers for their support over the years, noting that the memories created in its cinemas meant a great deal to the organisation.

“It has been our greatest privilege to serve you, our audience, and to be part of your cinematic experiences. All the cheers and laughter in packed halls to the quiet moments during heartfelt scenes meant the world to us,” it said.

MBO Cinemas also thanked patrons for their continued support throughout its operations.

“From all of us at MBO Cinemas, thank you for filling our seats, and our hearts,” the statement added.

The cinema chain shut its branches in Malaysia in 2020 due to the COVID-19 pandemic. It made a comeback the following year under new management after Golden Screen Cinemas acquired its assets.

MBO Cinemas operated eight outlets located across Selangor, Melaka, Perak, and Johor. — BERNAMA

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