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Petronas Chemicals upgraded to Buy, target price up at RM5.56

2 months ago

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PETRONAS Chemicals Group Bhd is evaluating the divestment of its 50% stake in Pengerang Petrochemical Company Sdn Bhd (PPC) by end-2026, potentially removing a significant earnings drag and unlocking value through a special dividend. Meanwhile, the renewal of a major olefins & derivatives customer’s under term contract underscores increasing demand for supply security. We lower our FY26 urea average selling price assumption to USD550/metric tonne (MT) (from USD700/MT), resulting in a 22% cut to our FY26 earnings forecast, while maintaining FY27-FY28. Following the recent share price correction, we believe the risk-reward has become more compelling. Upgrade Petronas Chemicals to Buy (from Hold) with a revised target price of RM5.56 (from RM5.63), based on a 1.2x price to book value multiple (near 5-year average). – HLIB Research, a unit of Hong Leong Investment Bank Bhd (June 29, 2026)

(Calls by analysts tracked by Bloomberg: 9 Buy, 9 Hold, 3 Sell; Consensus target price: RM5.54)

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Hantavirus outbreak nearing its end, WHO chief says

2 months ago

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GENEVA — The hantavirus outbreak is nearing its end, the head of the World Health Organisation (WHO) said on Sunday, reported German news agency dpa.

WHO Director General Tedros Adhanom Ghebreyesus said all contacts of two cases identified in South Africa had now completed their follow-up period, with no additional cases reported.

“Quarantine and follow-up periods have also been completed for everyone in Spain and the Netherlands, including the MV Hondius crew members,” he wrote on X.

As of June 25, 30 contacts were still under follow-up, he said.

“The total number of cases remains at 13, including three fatalities. The situation remains stable, and the outbreak is nearing its end.”

WHO “expresses gratitude to all countries involved in the response for their cooperation,” Tedros added.

The outbreak of the South American Andes variant of the virus on the small cruise ship sparked global concern. In total, around 150 passengers, crew members and accompanying experts from 23 countries were on board the Hondius.

The WHO believes the chain of infection may have originated with a Dutch couple, who could have contracted the virus ashore in Argentina before boarding the ship. — BERNAMA-dpa

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Corporate Malaysia News

Beyond buzzwords: Taylor’s makes ESG real, relevant

2 months ago

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(From left) Ong, Sunita, Anita, Camacho and Jee Lian, during the ‘Are We Solving the Right Problem?’ session (Source: Taylor’s Education Group)

The festival was designed to bridge that gap by bringing sustainability conversations closer to lived experiences

by HIDAYATH HISHAM

FOR many organisations, Environmental, Social and Governance (ESG) commitments begin with frameworks, policies, targets and reports.

At Taylor’s Education Group (TEG), however, sustainability is increasingly being approached through a more human lens — one that connects governance and reporting with everyday experiences, communities and decision-making.

This was the intention behind Taylor’s ESG Festival 6.0, held at Taylor’s Lakeside Campus and co-hosted with Gamuda Berhad, where the theme “Food for Thought” turned sustainability discussions into a conversation- driven dining experience.

Instead of a conventional conference format dominated by speeches and prepared talking points, the festival brought together dialogue, rescued ingredients, refugee storytelling, youth voices and upcycled fashion under one central provocation: “Are We Solving the Right Problem?”

The question reflected a broader challenge facing organisations today. As ESG reporting requirements become increasingly sophisticated, there is growing debate about whether ESG efforts are producing genuine environmental and social outcomes, or whether too much attention has been placed on reporting, compliance, and corporate messaging.

For Taylor’s, the festival was designed to bridge that gap by bringing sustainability conversations closer to lived experiences.

TEG Head of Group Sustainability Office Dr May Wong said the theme was deliberately chosen to move away from the familiar rhythm of ESG conferences, where participants often hear similar messages without seeing enough practical action.

“I want participants to walk away feeling that this dialogue is different and fresh. You understand more about food and the story of refugees. You have seen their first-hand stories,” she told The Malaysian Reserve (TMR).

Turning Sustainability into Lived Experience

One of the festival’s centrepieces was an upcycled dining experience developed in collaboration with Saving Graze, a Malaysian social enterprise specialising in rescued ingredients and repurposed meals.

Through the five-course meal, participants were encouraged to consider issues surrounding food waste, preservation, consumption patterns and personal responsibility.

For Wong, success was not measured solely by what participants learned during the event, but by whether they left inspired to act.

“If each participant walks away with one inspired action, it could be to support refugees, it could be as simple as trying a new food habit. As long as there is one action inspired by our event, I think that is enough,” she said.

Beyond food, the festival highlighted the social dimensions of sustainability through an immersive storytelling and music performance by refugee participants in collaboration with Taylor’s University School of Liberal Arts and Sciences.

The performance offered participants a more personal understanding of resilience and inclusion, reinforcing that sustainability extends beyond environmental concerns to encompass dignity, opportunity and community well-being.

The event also featured a waste-to-fashion showcase developed under the Denim Project, bringing together refugee seamstresses, students from The Design School at Taylor’s University, Gamuda’s fabric collection efforts and Taylor’s own staff as models for the showcase.

Using discarded denim and fabrics, the refugees created upcycled fashion pieces that demonstrated how creativity and intention can transform waste into value by giving materials a second life.

While experiential activities formed a major component of the festival, governance and accountability remained central themes throughout the day.

Sustainable fashion creations by refugee participants and The Design School at Taylor’s University are showcased through the Denim Project

The platform brought together leaders from governance, finance, urban development, sustainability and social impact sectors to discuss how ESG is being translated into practice across industries.

Speakers included Gamuda Berhad Group Chief Sustainability and Communications Officer Ong Jee Lian, Climate Governance Malaysia Founder and Chairperson Datin Seri Sunita Rajakumar, Yayasan MySDG CEO Anita Ahmad, and IDEO Consulting South-East Asia Director Bea Camacho.

The session was moderated by Prof Dr Ong Kian Ming, adjunct professor at Taylor’s University.

Discussions explored whether sustainability is genuinely integrated into business models, the role of developers in shaping sustainable communities and the importance of board-level accountability in driving meaningful outcomes.

Wong said organisers deliberately designed the session to encourage differing perspectives rather than consensus.

“We wanted people to leave with more questions, clearer intentions and a stronger sense of responsibility,” she said.

Beyond the festival itself, Taylor’s ESG journey has evolved significantly over recent years.

Wong explained that the Group began its sustainability efforts recognising that ESG could not remain a standalone initiative or corporate buzzword. Instead, it required changes to governance structures, institutional culture and operational decision-making.

One of the Group’s earliest strategic partners in that journey was Gamuda Berhad.

According to Wong, Gamuda provided valuable guidance in areas such as governance frameworks, stakeholder buy-in, committee structures and policy development.

From Reporting to Real-World Impact

During the weeklong festival, different days were structured around different agendas, including knowledge-sharing on how to conduct baseline engagement with People’s Housing Programme (PPR) communities.

Taylor’s has collaborated with CIMB for approximately a decade on entrepreneurship initiatives involving marginalised communities, providing practical experience in stakeholder engagement, community mapping and needs identification.

The Group now hopes to share some of these implementation frameworks with organisations seeking to strengthen their own community impact efforts.

At an organisational level, Taylor’s continues to strengthen ESG integration across leadership, governance, campus operations and institutional culture.

Operating across Malaysia, Singapore and Vietnam, the Group comprises 11 divisions spanning higher education, K-12 schools and properties.

As sustainability reporting expectations continue to evolve, Taylor’s is also investing in internal governance and data capabilities ahead of Malaysia’s National Sustainability Reporting Framework requirements.

Wong said the Group is currently compiling data through its ESG dashboard across institutions with varying levels of sustainability maturity.

According to Wong, the current priority is establishing a reliable baseline before introducing ambitious sustainability commitments.

“It is too premature to set a lofty target if you do not yet have a proper decarbonisation pathway plan,” she said.

Instead, the Group is focusing on strengthening ESG governance, improving measurement capabilities and building confidence in its reporting processes.

The approach reflects a growing emphasis on credibility and transparency at a time when organisations face increasing scrutiny over sustainability claims.

Participants experienced a unique upcycled dining concept as part of Taylor’s ESG Festival 6.0

Preparing Future Generations For Sustainable Leadership

Taylor’s Education Pte Ltd President and TEG ESG Co-Chair Karl Engkvist said avoiding greenwashing remains an important consideration.

“It is a very complex topic. The last thing that we want to see happen is greenwashing. We are very careful in communicating our commitments because we want to make sure that we can stand behind whatever we commit to,” he explained

Engkvist believes sustainability will also play a larger role in shaping the future of education, particularly as the world grapples with new technologies such as artificial intelligence (AI) and their growing resource demands.

“It is the students who are going to be the ones who drive more economical ways to use new technologies.

Their expectations will drive the behaviour of the institutions they choose to attend,” he said.

He added that students are likely to choose universities and schools based on the track record of the institution, making it important for sustainability to become an integral part of the education experience.

Initiatives such as the Waste War campaign, which addresses issues ranging from plastic consumption to digital waste, originated from student concerns and continue to shape sustainability conversations on campus.

“These are real practical things happening in students’ everyday lives. They are telling us these issues matter to them, and they help create our priorities,” he said.

At Taylor’s University, sustainability is embedded through Impact Labs, designed to be interdisciplinary learning experiences linked to the United Nations Sustainable Development Goals.

Regardless of whether a student is studying engineering, architecture, marketing or another discipline, Impact Labs allow students to explore sustainability challenges through practical and collaborative problem-solving across different subject areas.

Engkvist added that universities have an important responsibility to take public positions on environmental and social issues.

“Universities have historically been places of intellectual thought. They are expected to help set aspirations and expectationsfor society,” he said.

Meanwhile, TEG Executive Chairman Dato’ Loy Teik Ngan said the annual ESG Festival reflects the Group’s commitment to embedding sustainability into how it leads, governs and operates.

He said sustainability and responsible practices cannot exist as parallel initiatives, but must be reflected through everyday decisions, institutional culture and the experiences created across campuses and communities.

“We recognise meaningful progress requires long-term commitment, collective responsibility, and a willingness to continuously evaluate if the systems we build today will create lasting impact for tomorrow,” he said.

By turning ESG into a five-course conversation, Taylor’s ESG Festival 6.0 sought to demonstrate that sustainability does not have to remain abstract, technical or distant from everyday life.

It can be experienced through food, expressed through creativity, strengthened through community partnerships and embedded through governance, rather than being confined to reports and boardrooms.

In that sense, “Food for Thought” was not just a theme. It was a reminder that sustainability becomes meaningful when people are able to connect it with their own choices, communities and responsibilities.

This article first appeared in The Malaysian Reserve weekly print edition

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Economy News

Italy sees Malaysia as strategic manufacturing hub with complete E&E supply chain

2 months ago

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Deputy Investment, Trade and Industry (MITI) Minister Sim Tze Tzin said Malaysia’s trade-to-GDP ratio reached 134%, in which the total trade surpassed RM3 trillion for the first time (pic: SHAUQI WAHAB/TMR)

by SHAUQI WAHAB

ITALY has chosen Malaysia as an investment destination because of its complete electrical and electronics (E&E) ecosystem and supply chain, which enables manufacturers to localise production efficiently while leveraging Malaysian suppliers,

Deputy Investment, Trade and Industry (MITI) Minister Sim Tze Tzin said Italian companies see Malaysia as more than just a manufacturing base, but as a strategic partner that offers an integrated industrial ecosystem capable of supporting advanced manufacturing, machinery and semiconductor investments.

“We can see that Italian companies are picking Malaysia because they feel that Malaysia has a complete ecosystem, complete supply chain for the machinery.

“They use our local suppliers to complete their projects, and that is a very good synergy and partnership,” he said after launching the Italy-Malaysia Business Mission 2026 today.

Sim gave examples such as an Italian crane manufacturer that operates with only 25 employees in Malaysia while relying on local suppliers to complete projects, as well as Perodua’s collaboration with Italy’s Magna Steyr on the QEV electric vehicle.

He added that Malaysia’s mature E&E and machinery sectors complement Italy’s expertise in advanced machinery manufacturing, creating opportunities for technology transfer and higher-value industrial collaboration.

“I believe Italy and Malaysia can work stronger together in many parts, including the E&E. I’m very confident that the Malaysia-European Union Free Trade Agreement (MEUFTA) will bring better collaborations between Malaysia and Italy,” he said.

Sim said negotiations remain on schedule, with five chapters already concluded after the fourth round of talks in Kuala Lumpur earlier this month.

The fifth round is scheduled to take place in Brussels from Sept 21 to 25.

He also highlighted Malaysia’s new incentive framework, introduced in March 2026, which supports investments in advanced manufacturing, front-end semiconductor activities and integrated circuit (IC) design.

During the event, a 35-company Italian business mission has begun in Kuala Lumpur to deepen economic cooperation with Malaysia, focusing on infrastructure and transport, energy transition, oil and gas, and advanced manufacturing.

The mission comes as bilateral trade reached €3.4 billion (RM13.79 billion) in 2025, a 6.3% increase year-on-year, reflecting the steady growth of economic ties between the two countries.

Meanwhile, Italian Ambassador Raffaele Langella said the initiative is aimed at translating strong bilateral relations into tangible business outcomes.

“Malaysia represents a strategic partner for Italy in Southeast Asia and a natural platform for the internationalisation of our enterprises.

“This mission is designed to move beyond dialogue and to actively generate new opportunities for investment, industrial cooperation and joint projects,” he said.

The programme includes sectoral roundtables, business-to-business meetings and site visits to Malaysian companies to foster new commercial partnerships and investment opportunities.

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News Property

Property market to consolidate in 2026 as financing gap persists

2 months ago

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Affordable and mid-market homes, landed properties, integrated townships, Johor developments, industrial assets and REITs are expected to remain resilient

by AKMAR ANNUAR

MALAYSIA’S property market is expected to remain in consolidation mode in 2026 as genuine housing demand continues to support selected segments, while affordability pressures, tighter financing access and persistent unsold stock keep the broader recovery uneven.

Industry players and analysts said the market is unlikely to see a broad-based breakout this year, although pockets of strength are emerging in affordable and mid-market homes, landed properties, integrated townships, Johor-linked developments, industrial assets and selected real estate investment trusts (REITs).

Instead, the year is shaping up as one of disciplined growth, with developers aligning supply more closely to genuine demand while buyers remain selective over price, location, connectivity, financing eligibility and long-term liveability.

Financing Cost

Nawawi Tie Leung Real Estate Consultants Sdn Bhd executive advisor Eddy Wong said Malaysia’s residential property market has entered a consolidation phase following a weaker first quarter (Q1).

“There were 52,936 transactions valued at RM22.6 billion, a reduction of 23.8% by volume and a reduction of 25.6% by value compared to the previous quarter.

“Compared to the first quarter of 2025 (1Q25), it’s a reduction of 10.7% by volume and a reduction of 7.8% by value,” he told The Malaysian Reserve (TMR).

Wong attributed the weaker performance to affordability challenges and difficulties in securing end financing.

The housing loan approval rate fell to 39.2% in the first four months of 2026, down from 41% in 2025 and 42% in 2024, highlighting the growing difficulty many buyers face in converting interest into completed purchases.

Although Bank Negara Malaysia’s (BNM) 25-basis-point (bps) reduction in the Overnight Policy Rate (OPR) to 2.75% has lowered borrowing costs, analysts said cheaper financing alone is unlikely to drive a meaningful recovery without stronger wage growth.

Agility Valuers & Property Consultants Sdn Bhd Yap Kian Ann said a 25bps movement in interest rates affects monthly loan instalments by about 3%, but housing demand is also shaped by income, employment, population growth, consumer confidence, government policies, rental yields, capital appreciation prospects and unsold inventory.

“While lower interest rates can improve affordability and support market activity, the pace and sustainability of the property market recovery in 2026 will depend on the combined effect of these broader demand and supply factors,” he told TMR.

Financing costs and wage growth are equally important in determining housing demand, says Yap (Source: Agility Valuers & Property Consultants)

Yap added that financing costs and wage growth remain equally important in determining housing demand.

“As long as property prices continue to outpace wage growth, reductions in interest rates alone are unlikely to generate a significant uplift in housing demand,” he said.

MyRumahBaru founder Melvin Soh said Malaysia’s challenge is no longer a shortage of homes or buyers, but connecting financing-ready buyers with suitable properties.

National Property Information Centre (Napic) data showed Malaysia recorded 89,966 property transactions worth RM51.09 billion in 1Q26, while the House Price Index still rose 1.7% year-on-year (YoY).

However, transaction volume fell 8% YoY, residential overhang climbed for a sixth consecutive quarter to 32,801 units worth RM16.37 billion, and completed unsold residential stock exceeded 52,000 units.

Soh said prices remain relatively resilient, but the market’s transactional momentum is slowing.

The RM300,000-and-below segment recorded the highest buyer activity with 27,209 transactions, yet also carries the largest overhang, suggesting affordability alone does not guarantee ownership when financing and product suitability remain barriers.

He said developers should compete on conversion rather than marketing volume by identifying financing-ready buyers earlier instead of relying on broader lead generation.

Lifestyle Concerns

The financing challenge is also reshaping developer strategies. OSK Property Holdings Bhd CEO Chu Wai Lune said buyers are no longer comparing homes based on price alone but on the overall lifestyle value offered.

“Selling a property by price alone cannot address the concern for lifestyle,” he told TMR.

Chu said buyers increasingly consider furnishing, renovation costs, amenities and the expense of making a unit move-in ready, prompting developers to introduce more holistic homeownership packages through collaborations with furniture and appliance partners.

He added that responsible developers must focus on creating long-term value as buyers become increasingly selective.

Affordability pressures are also encouraging more Malaysians to rent for longer, particularly younger buyers building savings or waiting to qualify for financing.

Industry players stressed that this does not signal a decline in homeownership aspirations, but reflects more deliberate purchasing decisions.

MK Land Holdings Bhd said 2026 is shaping up to be a year of gradual and sustainable recovery driven mainly by genuine owner-occupiers rather than speculative activity.

MK Land COO for the central region Ahmad Soalahuddin Al-Thani Ahmad Termizi said the group continues to see encouraging demand, particularly for homes priced below RM500,000.

“Buyer confidence has certainly improved compared to previous years, particularly among genuine owner-occupiers.

“However, affordability remains an important consideration, especially for first- time homebuyers and young families, while financing eligibility continues to influence purchasing decisions,” he told TMR.

Buyers are placing greater emphasis on affordability, accessibility, connectivity and long-term liveability before committing to a purchase.

According to Ahmad Soalahuddin, buyer confidence has improved compared to previous years

Demand remains steady across the group’s developments, including Damansara Perdana, Meru Perdana, Taman Bunga Raya and Damansara Damai.

Taman Bunga Raya in Bukit Beruntung continues to attract buyers through its double-storey Rumah Selangorku developments, while Residensi Suasana @ Damai appeals to young families seeking homes within an established community.

MK Land is also seeing demand for selected premium landed homes such as Rafflesia in Damansara Perdana from owner-occupier upgraders seeking exclusivity, greenery and strong connectivity to key areas including Taman Tun Dr Ismail (TTDI), Bandar Utama, Mont Kiara, Hartamas, and Bangsar.

The group said demand continues to differ according to locality, demographic profile and socioeconomic conditions, reinforcing the need for developers to tailor projects to local market needs.

“Buyers today are investing in more than just a property. They are looking for a complete lifestyle offering within a well-planned community that provides connectivity, quality infrastructure, integrated amenities and long-term value appreciation,” Ahmad Soalahuddin said.

That preference for integrated communities is becoming increasingly evident across the market.

Tropicana Corp Bhd said policies which strengthen purchasing power, improve financing accessibility and enhance consumer confidence continue to generate the strongest market response, particularly for integrated townships.

The extension of the full stamp duty exemption for Malaysian first-time home-buyers purchasing homes priced up to RM500,000 until Dec 31, 2027, is also expected to reduce upfront acquisition costs.

Mah Sing Group Bhd has also continued to see resilient demand.

The developer recorded RM2.51 billion in property sales in 2025, its highest in a decade, followed by RM978 million in new sales during the first five months of 2026, keeping it on track to meet its RM2.76 billion full-year target.

Mah Sing founder and group MD Tan Sri Leong Hoy Kum said the group also sees opportunities arising from Malaysia’s industrial transformation and digital economy.

“In our core property business, we will continue to address genuine market demand by delivering quality homes at attainable price points in strategic growth locations,” he said.

Beyond residential developments, Mah Sing is expanding into industrial parks and digital infrastructure, including MS Industrial Park @ Kulai and potential data centre projects in Johor, reflecting a broader trend among major developers to diversify into recurring-income assets and industrial developments.

Wong says the number of completed unsold residential units has continued to rise since 3Q24

Overhang and Oversupply

The housing overhang remains one of the sector’s biggest structural challenges. Wong said the number of completed unsold residential units has continued to rise since 3Q24, with the overhang in 1Q26 about 49% higher than in 3Q24.

“Almost all market segments are impacted to varying degrees,” he said.

The overhang continues to weigh on serviced apartments, luxury high-rises, selected high-density urban locations and affordable housing projects where pricing, location, unit size or financing do not align with buyer expectations.

Soh’s observation that the RM300,000-and-below segment is both the most active and the most oversupplied highlights a more complex issue, which is that affordability alone does not translate into ownership when financing accessibility and product suitability remain obstacles.

For developers, this is reinforcing more disciplined land acquisitions, phased launches and greater emphasis on market research, pricing, unit layouts and location.

Chu said developers must ensure supply and demand remain balanced. “For us, we will always continue to be mindful when we buy land, develop a place, pricing must be correct, the layout must be right according to the needs.”

Despite the cautious national outlook, several markets are expected to outperform. Johor remains one of the strongest prospects, supported by the Johor-Singapore Special Economic Zone (JS-SEZ) initiative and the expected completion of the Johor Bahru-Singapore Rapid Transit System (RTS) Link by the end of 2026.

Wong said foreign buying interest has strengthened, although overseas purchasers still account for only a small proportion of total transactions.

“The number of foreign buyers has increased significantly, by about 84% between 2024 and 2025.

“However, they comprise only about 1% of the total transactions in the property market, and the foreign buying interest remains very much focused in the Klang Valley and Johor,” he said.

He said the increase in stamp duty for foreign purchasers from a flat 4% to 8% from Jan 1, 2026, may moderate demand but is unlikely to derail overall foreign buying interest.

Foreign demand is expected to remain concentrated in Johor, supported by Singapore’s proximity, currency advantages and cross-border connectivity, while the Klang Valley continues to attract buyers seeking lifestyle, education, healthcare and investment opportunities.

Commercial property is also expected to remain selective rather than broadly expansionary.

Companies continue to reassess office requirements as hybrid work becomes more established, although Grade A buildings with stronger sustainability credentials, transport connectivity and higher-quality workplace environments continue to attract tenants.

Rather than widespread downsizing, the office market is increasingly characterised by upgrading, consolidation and decentralisation, with some occupiers relocating to higher-quality buildings while others shift towards fringe locations, Petaling Jaya, Johor or mixed-use developments offering better value.

Retail property is also evolving alongside changing consumer behaviour and e-commerce growth.

Shopping centres that continue refreshing their tenant mix, strengthening food and beverage (F&B) offerings, expanding lifestyle and entertainment components, and integrating with surrounding residential communities are expected to remain resilient.

Neighbourhood malls serving established residential catchments may continue to outperform, while central business district malls will need to keep reinventing the customer experience.
For investors, Yap said selected REITs

have outperformed direct property ownership. He cited IGB REIT, Pavilion REIT and Sunway REIT as examples of listed property vehicles that have delivered dividend yields of about 5% to 7%, while recording capital appreciation of roughly 50% to 65% over the past three years.

“The stronger performance of selected REITs suggests that investors seeking expo- sure to the real estate sector may currently find listed property vehicles more attractive than direct property ownership, given their combination of liquidity, dividend income and capital growth potential,” he said.

Geopolitical Challenges

Nevertheless, several risks could delay the sector’s recovery. These include geopolitical tensions, higher oil prices, construction cost inflation, labour shortages, supply chain disruptions, financing constraints, weaker consumer sentiment and persistent unsold stock.

Wong said geopolitical shocks and higher oil prices could increase construction costs and ultimately push property prices higher, while inflation would further erode household purchasing power.

“The prospect of rising interest rates may cause many potential purchasers to reconsider their financial situation and delay their decision to commit to a house purchase until there is more clarity in the global geopolitical situation,” he said.

Tropicana said developers are also navigating rising construction costs, labour and material price pressures, lengthy approval processes, infrastructure readiness and evolving regulatory requirements.

These factors continue to affect project timelines, cashflow planning and delivery efficiency.

“For developers, execution certainty is critical. A stable and predictable operating environment enables better planning, resource allocation and project delivery,” Tropicana said.

MK Land said the industry’s challenge extends beyond rising costs to managing price volatility while keeping homes affordable.

“Developers must strike a careful balance between maintaining operational efficiency, preserving margins and ensuring that homes remain accessible, particularly within the affordable and mid-market segments where demand continues to be the strongest,” Ahmad Soalahuddin said.

Overall, Malaysia’s property market is expected to remain in consolidation through 2026, with demand concentrated in well- priced, well-located and well-connected developments.

Opportunities remain strongest in attainable homes, mature townships, integrated developments, industrial assets, selected REITs and growth corridors such as Johor.

However, a broader recovery will depend on stronger wage growth, improved financing accessibility and a gradual reduction in housing overhang.

The next phase of recovery is therefore likely to depend less on producing more supply than on better execution — connecting qualified buyers with the right homes, in the right locations, through financing pathways that can successfully convert demand into completed transactions.

This article first appeared in The Malaysian Reserve weekly print edition

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Economy News

INSKEN expands global collaboration through rural social enterprise network

2 months ago

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KUALA LUMPUR — The National Entrepreneurship Institute (INSKEN) is expanding its global collaboration through its role as one of the stewards of the Rural Social Enterprise Network (RSEN), a platform that empowers rural communities through social entrepreneurship and promotes inclusive and sustainable economic development.

In a statement today, INSKEN said the initiative aims to support social enterprises in addressing community challenges while generating sustainable economic impact for rural populations.

“As a steward, INSKEN works alongside ecosystem partners to foster the growth of rural social enterprises by enhancing entrepreneurial capabilities, facilitating access to resources and creating opportunities for collaboration and market expansion,” it said.

The network, jointly stewarded by INSKEN, the Social Enterprise World Forum (SEWF) and Australian Centre for Rural Entrepreneurship (ACRE), provides the administrative and facilitative foundations necessary for the network to thrive, ensuring effective coordination, collaboration and long-term sustainability.

It said stewardship refers to supporting and nurturing the network on behalf of its members, rather than owning or directing it, allowing members to guide the network while stewards facilitate collective action and shared impact.

Drawing on its expertise in entrepreneurship development, INSKEN contributes to the network through capacity-building programmes, business coaching, mentoring and strategic interventions aimed at strengthening the resilience and scalability of rural social enterprises.

Meanwhile, INSKEN chief executive officer Viviantie Sarjuni said the organisation’s involvement in RSEN reflects its ongoing commitment to ensuring entrepreneurship remains a catalyst for positive social and economic transformation.

“Through INSKEN’s stewardship of the RSEN, we are able to collaborate with global and regional partners to strengthen rural social enterprises, expand access to opportunities and create lasting impact for communities.

“This reflects our commitment to building an inclusive entrepreneurship ecosystem where every community has the opportunity to participate, grow and thrive,” she added.

The RSEN serves as a collective platform that brings together social enterprises, development agencies, private-sector organisations and ecosystem enablers to accelerate the growth of impact-driven ventures in rural areas.

Through knowledge sharing, capacity development and strategic partnerships, the network seeks to create long-term socioeconomic benefits for underserved communities. — BERNAMA

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News Politics / News

Johor polls: Underdog status does not dampen spirit of PH candidate in Pasir Raja

2 months ago

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(pic credit: Fakharuddin Moslim’s Facebook)

KOTA TINGGI — Being the underdog in a Barisan Nasional (BN) stronghold has not dampened the spirit of Pakatan Harapan (PH) candidate for the Pasir Raja state constituency, Mohd Fakharuddin Moslim (picture).

The Johor PKR information chief said his candidacy in Pasir Raja offers a golden opportunity to present new ideas to advance the local community.

Mohd Fakharuddin, involved in politics and community work since 2010, said he aims to bring further development to residents if given the mandate in the 16th Johor State Election.

He said his manifesto focuses on three main areas: youth empowerment, infrastructure, and community welfare.

“The first step I will take is to create a sustainable local economic ecosystem for youth to curb migration to cities like Kulai, Johor Bahru, or Singapore,” he told Bernama here recently.

He said these efforts include strengthening Technical and Vocational Education and Training (TVET) and supporting young entrepreneurs in the constituency.

Mohd Fakharuddin added that infrastructure is also a priority, especially road quality, public amenities, and internet access, which need improvement in some areas.

He pledged to ensure that welfare aid for groups such as the elderly, single mothers, and B40 families is distributed more efficiently and widely.

He also intends to practise a no-protocol leadership style to strengthen ties between the elected representative and the public.

“I want the community to contact me directly, chat casually like friends, and see me as part of their family because my office doors will always be open to the people,” he said.

Asked about contesting in a BN stronghold, Mohd Fakharuddin said he did not feel pressured during the campaign and believed PH had the advantage due to instability and internal issues within the opposing parties.

“We also need to look at the composition of young voters, who make up 54 per cent of the total registered voters in this constituency. Therefore, I am applying a two-pronged campaign strategy by balancing digital and physical methods,” he said.

Mohd Fakharuddin will face a three-cornered fight in the Pasir Raja state seat, which has 29,818 registered voters, going up against Barisan Nasional (BN) candidate Datuk Seri Dr Adham Baba and Yuhanita Yunan of Perikatan Nasional (PN).

The Johor state election will take place on July 11, while early voting is set for July 7. — BERNAMA

N35: PASIR RAJA: 29,818 voters

Datuk Seri Dr Adham Baba (BN-UMNO)
Yuhanita Yunan (PN-PAS)
Mohd Fakharuddin Moslim (PH-PKR)

(2022: Rashidah Ismail: BN-UMNO: Maj: 4,888)

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Economy News

Amir Hamzah: Over 18,000 applications for additional diesel quota received

2 months ago

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THE official BUDI MADANI portal has received more than 18,000 applications for an additional 100 litres of subsidised diesel per month from eligible owners of diesel-powered pickup trucks and SUVs as of 10 pm yesterday.

Second Finance Minister Datuk Seri Amir Hamzah Azizan said the early implementation of BUDI MADANI Diesel (BUDI Diesel), now in its second day, has proceeded smoothly without any technical issues.

“From yesterday until now, more than 40,000 transactions have been recorded involving users benefiting from the BUDI Diesel programme,” he told reporters after inspecting the early implementation of BUDI Diesel at NKVE, Damansara Bound Petronas petrol station, with Treasury secretary-general Tan Sri Johan Mahmood Merican.

Amir Hamzah said applications for the additional quota can be submitted online through the official BUDI MADANI portal and that those requiring assistance can seek help from officers at Inland Revenue Board (LHDN) offices, Urban Transformation Centres (UTCs), as well as service counters provided by several oil companies.

He added that the government has also introduced a quota transfer facility for cases where the registered owner of a vehicle is not the actual user.

“For quota transfers, applications can be made through the same portal. We will ensure that the quota is transferred to the actual user,” he said.

He explained that once the transfer is approved, verification at petrol stations will be carried out using the identity card (IC) number of the user linked to the quota.

“The quota will be tagged to the new user’s IC. When it is used at a petrol station, the system will recognise that the quota has been transferred.

“However, the quota amount remains tied to the vehicle and can only be used by the individual designated under the transfer,” he said.

Amir Hamzah said no technical issues involving the system or petrol station operators have been reported so far, and the government will continue to focus on ensuring the initiative runs smoothly ahead of July 1.

The early implementation of BUDI Diesel began yesterday in Peninsular Malaysia, with eligible users enjoying subsidised diesel at RM2.15 per litre under a flexible quota of up to 200 litres.

The subsidised price will be reduced to RM2.10 per litre starting this Wednesday. — BERNAMA

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Money News

Ringgit slightly higher vs greenback, supported by low oil prices

2 months ago

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THE ringgit was slightly higher against the US dollar on Monday as the domestic unit continues to be well-supported with lower crude oil prices.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said West Texas Intermediate and Brent crude prices were hovering around US$69.87 per barrel and US$72.46 per barrel, while the United States and Iran are expected to continue negotiations.

At 8 am, the local currency was pegged at 4.0855/0950 against the greenback from last Friday’s close of 4.0860/0910.

“Shipping continues in the Straits of Hormuz, which suggests that oil shortages could be resolved soon. On that note, expect the US dollar/ringgit (pair) to revolve around RM4.08 to RM4.10 today,” Mohd Afzanizam told Bernama.

At the opening, the ringgit traded higher against a basket of major currencies.

It advanced against the British pound to 5.3929/4054 from 5.4013/4079 at Friday’s close, rose versus the euro to 4.6526/6634 from 4.6605/6662 and was marginally higher vis-à-vis the Japanese yen at 2.5258/5318 from 2.5283/5316 previously.

The local note was traded mixed against regional currencies.

It appreciated against the Singapore dollar to 3.1560/1639 from 3.1581/1625 on Friday’s close, was almost flat versus the Indonesian rupiah at 227.9/228.6 from 227.9/228.3, and was flat against the Philippine peso at 6.66/6.68 from 6.66/6.67.

The local note increased versus the Thai baht to 12.2284/2627 from 12.2445/2643 previously. — BERNAMA

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Markets News

Bursa Malaysia opens higher but retreats thereafter

2 months ago

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BURSA MALAYSIA opened higher but retreated thereafter, tracking Wall Street’s weaker performance last Friday amid heightened US-Iran tensions.

At 9.10 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index fell 5.70 points to 1,662.04 from Friday’s close of 1,667.74. The index opened 1.04 points higher at 1,668.78.

Market breadth was negative, with decliners outpacing gainers 211 to 143, while 303 counters were unchanged, 2,086 untraded, and 133 were suspended.

Turnover amounted to 156.50 million shares worth RM75.07 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Wall Street ended lower last Friday, with technology stocks under pressure as investors locked in profits following the recent sharp sell-off in artificial intelligence-related counters.

He added that the latest US-Iran attacks have further heightened geopolitical tensions in West Asia, dampening overall market sentiment.

“Market undertone remains cautious in the absence of catalysts. While current levels present a solid opportunity to accumulate, we recommend investors proceed with care.

“Although laggards may be on the radar, we believe punters should stay on the buying list. For today, we expect the index to hover within the 1,665-1,675 range,” he told Bernama.

Among heavyweight stocks, Maybank shed two sen to RM10.78, Public Bank decreased five sen to RM4.78, Tenaga Nasional slipped 18 sen to RM14.16, and IHH dropped a sen to RM8.53, while CIMB was flat at RM7.41.

Among the active counters, ACE Market debutant RT Pastry eased one sen to 17 sen, Nova MSC, Zetrix AI and Bina Puri were half-a-sen lower at 6.5 sen, 76.5 sen and 29 sen, respectively. GIIB was flat at 48 sen.

On the gainers’ list, Fraser & Neave ticked up 40 sen to RM28.10, United Plantations bagged 28 sen to RM32.88, Petronas Chemicals and Nestle were 14 sen higher at RM4.16 and RM95.98, respectively. Sunway Construction increased 11 sen to RM7.43.

Among the top losers, Malaysian Pacific Industries shed 42 sen to RM46.58, Hong Leong Financial gave up 22 sen to RM18.28, Petronas Dagangan trimmed 18 sen to RM18.42, KL Kepong slid 14 sen to RM21.16, and Ajinomoto decreased six sen to RM18.80.

On the broader market, the FBM Emas Index was 30 points lower at 12,335.02, the FBM Top 100 Index slipped 30.70 points to 12,170.89, and the FBM Emas Shariah Index reduced 19.13 points to 12,222.17.

The FBM Mid 70 Index went up 2.16 points to 17,728.35, and the FBM ACE Index shed 23.95 points to 4,721.35.

Sector-wise, the Financial Services Index reduced 72 points to 19,591.12, the Energy Index inched up 0.59 of a point to 746.49, the Plantation Index weakened 12.09 points to 8,870.89, and the Industrial Products and Services Index added 1.10 points to 180.69. — BERNAMA

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