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The Star
21 hours ago
- Business
- The Star
Trading ideas: TNB, Bursa, HI Mobility, KIP REIT, UUE, Pestec, Jati Tinggit, SL Innovation, SC Estate, Majuperak, Oasis, Pavilion REIT
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Tenaga Nasional Bhd has been given the green light by the High Court to commence judicial review against the Inland Revenue Board in relation with tax assessment totalling RM291.6mn for FY18. Bursa Carbon Exchange, a subsidiary of Bursa Malaysia Bhd , will host its first bilateral energy supply contract auction this November. HI Mobility Bhd is working to resolve a strike involving drivers of its flagship bus brand Causeway Link, following a recent wage cut. Unitholders of KIP Real Estate Investment Trust have given the green light at its extraordinary general meeting for the RM118.0mn acquisition of 4 retail properties in Kuantan and Selangor as well as a RM132.0mn private placement to fund part of the purchase and subsequent enhancements. UUE Holdings Bhd have inked a memorandum of understanding with Asean Cableship Pte Ltd to provide horizontal directional drilling solutions for offshore telecommunications and infrastructure projects in the Asia Pacific region. Pestec International Bhd has been sued by its former group CEO Paul Lim Pay Chuan and his uncle, former deputy chairman Lim Ah Hock, for a total of RM17.5mn in alleged unpaid advances. Jati Tinggi Group Bhd has secured a RM19.4mn contract from Tenaga Nasional Bhd for submarine cable works in Perak via a 70:30 joint venture. SL Innovation Capital Bhd has decided to defer plans to transfer its listing from the LEAP Market to the ACE Market, citing prevailing market uncertainties. SC Estate Builder Bhd is disposing of a piece of land in Alor Setar, Kedah, measuring 5,834 sq metres to Novium Pinnacle Sdn Bhd for RM8.8mn. Majuperak Holdings Bhd 's RM18.4mn proposed disposal of Brewster Village to Ladang Lekir Sdn Bhd was terminated due to unmet conditions. Majuperak remains an affected issuer and aims to submit its revised plan by 11 October 2025. Oasis Harvest Corporation Bhd, which operates restaurants, saw the emergence of Labuan-based European Credit Investment Bank Ltd as its new substantial shareholder. Pavilion Real Estate Investment Trust 's net property income rose 8.2% YoY to RM129.8mn in 2QFY25, thanks to higher contributions from Pavilion Bukit Jalil and advertising revenue from Elite Pavilion Mall.
The Star
a day ago
- Business
- The Star
Fiscal goals on track
PETALING JAYA: Malaysia appears to be on track to achieve its fiscal deficit target of 3.8% this year, in spite of the various external challenges that are on the horizon. Economists surveyed by StarBiz were in agreement and point to various measures that have been embarked on by the government on both the revenue and expenditure side that would help the country to stay on track in its fiscal goals in the bigger picture. These include the various subsidy rationalisation moves such as the egg subsidy cuts, diesel subsidy re-targeting and the planned RON95 petrol subsidy removal. While on the revenue side, the government had also announced various measures to increase the tax base, which includes the expansion of the scope of the sales and services tax (SST) and the 2% tax on dividends for individuals earning over RM100,000 in dividend income. There is also the rollout of e-invoicing by the Inland Revenue Board, which is being done in phases at this point in time. Perhaps, the coming Budget 2026, which is scheduled to be tabled in less than three months on Oct 10, will detail these initiatives further and reveal if any potential new ones are in the pipeline. Socio-Economic Research Centre executive director Lee Heng Guie said he is confident the fiscal deficit target set for this year will be met, although there may be ongoing concerns that the revenue side will be impacted by lower oil prices at the moment. 'Malaysia will definitely not miss the fiscal deficit target set earlier. 'The government is intent and moving forward with the subsidy rationalisation. 'Oil-related revenue will be impacted by lower oil prices now but at the same time also the subsidy bill for RON95 petrol will be lower as well, if leakages are plugged,' Lee told StarBiz. 'The government has always met these targets, unless there is a major shortfall in revenue or overspending. 'So far, they have already booked in everything, for example the rise in civil service salaries is being covered by the SST scope expansion and SST rate increase for some categories,' he added. Lee said these initiatives will help the country meet these fiscal targets but in any case if the target isn't met, there could be a risk whereby rating agencies have to re-rate the country. Commenting on the country's national debt, Lee said the total outstanding debt is still high, although the new debt figures have seen a decline in recent years. Kenanga Research, in its May report noted that government total current liabilities rose to a record high of RM1,277.3bil in the first quarter of financial year 2025 (1Q25) this year compared with RM1,247.6bil in 4Q24. 'Based on our calculation, the government debt to gross domestic product (GDP) ratio in 1Q25 expanded to 65.5% from 64.6% in 2024. This is higher than the government's calculation of 62.6%,' Kenanga Research said. The research house anticipates that government debt is projected to rise to RM1,330.6bil or 65.9% of GDP in 2025, which is higher than its previous forecast of 64.7%, amid slower growth and potential delays in fiscal reforms. 'The higher debt projection also reflects our fiscal deficit forecast of 4.1% of GDP, based on a revised GDP growth forecast of 4.3% from 4.8% previously. 'This accounts for downside risks such as lower oil prices, potential subsidy reforms delays and ongoing external uncertainties, driven by the unfolding US tariffs,' it said. Meanwhile, UOB Kay Hian Wealth Advisors' head of investment research Mohd Sedek Jantan said Malaysia is firmly on track to meet its fiscal deficit targets. 'Malaysia is on track to achieve a fiscal deficit of 3.8% in 2025, underpinned by the Fiscal Responsibility Act (FRA) 2023, which institutionalises fiscal discipline through enhanced parliamentary oversight. 'Concurrently, tax reforms — including broadening the revenue base and implementing the e-invoicing system to strengthen compliance — supports fiscal consolidation. 'These measures align with sound public finance principles, fostering sustainable growth, promoting inclusivity and reinforcing governance for improved socio-economic outcomes.' Mohd Sedek said further it would be a good move if the government prioritises continued debt reduction at the national level since lower borrowings would alleviate crowding-out pressures, support private investment and preserve macroeconomic stability. 'Anchored by the FRA and ongoing tax reforms, this trend expands fiscal space, bolsters policy credibility and lowers sovereign risk — key to sustaining investor confidence and economic resilience. 'It also cushions Malaysia against external shocks, particularly amid global trade policy uncertainty and potential growth slowdowns,' he added. CGS International Research head of economics Ahmad Nazmi Idrus said it is still premature to say if the government will miss or meet its fiscal deficit targets for this year. 'As of May, we see fiscal data still on track and there are a few reasons I think the fiscal numbers can still be achieved - the rise in collections from the SST adjustments, electricity tariff reforms, and subsidies removal. 'While GDP is expected to weaken amid the tariff scuffle, I think the domestic economy could stay resilient amid wage reforms, the stronger ringgit, and high tourism numbers which could support tax collections. 'We already have good momentum from last year. If you recall, the 2024 fiscal deficit was targeted at 4.3% of GDP, but the audited result showed that the government managed to get it lower to 4.1%. 'This year's deficit target was designed under the assumption that the deficit last year was 4.3% and not 4.1%, so we started off on a better footing,' he added. Ahmad Nazmi noted that any new debt incurred would tie strongly with the fiscal deficit target as a better fiscal deficit forecast should mean lesser new debt issuance. Moreover, since the government is targeting a fiscal deficit at 3.8% of GDP this year from 4.1% last year, that would mean debt issuance should be lesser, he said. 'Also the overnight policy rate cut will cause the Malaysian Government Securities yield to fall so it will be slightly cheaper for the government to finance its debt, so that's a plus,' Ahmad Nazmi said. He also said any miss in fiscal targets would have to be evaluated based on its circumstances. 'But as long as the government is committed to fiscal consolidation, any near-term deviations are acceptable.'
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
MACC records statements from 27 witnesses in scrap metal smuggling probe
MACC's special operations division senior director Zamri Zainul Abidin said the agency is now inspecting the finances of the suspects and companies. PETALING JAYA : The Malaysian Anti-Corruption Commission has recorded statements from 27 witnesses following an operation against e-waste and scrap metal smuggling syndicates in five states. The syndicates are believed to have bribed enforcement officials, resulting in an estimated tax revenue loss of over RM950 million in the last six years. A source said MACC also recorded a statement from a suspect believed to be involved in the syndicates' activities, but no arrests have been made so far. MACC froze 324 bank accounts of 142 companies and 182 individuals, involving a total value of almost RM150 million. It also seized about RM183 million in assets. 'Overall, the assets seized and accounts frozen amount to over RM332 million,' said the source. MACC's special operations division senior director Zamri Zainul Abidin confirmed the matter and said the commission is still identifying the suspects involved. He said MACC is inspecting the finances of the suspects and companies, with cooperation from the Inland Revenue Board, the customs department, and Bank Negara Malaysia. 'Besides the investigations under Sections 16 and 18 of the MACC Act 2009 (for bribery and false claims) and money laundering activities, investigations are ongoing under the Income Tax Act 1967 and Customs Act 1967 by the agencies involved,' he said.
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New Straits Times
2 days ago
- Business
- New Straits Times
[UPDATED]: MACC questions 27 witnesses in scrap metal, e-waste smuggling probe
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has questioned 27 witnesses in connection with its operation against a syndicate involved in the smuggling of scrap metal and e-waste across five states. The syndicate is believed to have bribed enforcement officers, resulting in a loss of export tax revenue estimated at more than RM950 million. According to a source, one of the suspects believed to be involved in the activities was also questioned today. "However, no arrests have been made so far. "To date, the MACC has frozen a total of 324 bank accounts, 142 belonging to companies and 182 to individuals, involving nearly RM150 million, with seized assets amounting to approximately RM183 million. "In total, the value of seized and frozen assets now stands at more than RM332 million," the source said. Meanwhile, MACC Special Operations Division senior director, Datuk Mohamad Zamri Zainul Abidin, when contacted, confirmed the information and said that the MACC is still in the process of identifying suspects linked to the syndicate, which has caused the government to suffer export tax losses of more than RM950 million over the past six years. He added that the MACC is currently scrutinising the financial sources of the suspects and the companies under investigation in collaboration with agencies such as the Inland Revenue Board (LHDN), Royal Malaysian Customs Department (JKDM), and Bank Negara Malaysia (BNM). "In addition to investigations under Sections 16 and 18 of the MACC Act 2009, as well as offences related to money laundering, probes are also being conducted under the Income Tax Act 1967 and the Customs Act 1967 by the relevant agencies involved in this operation," he said. It was reported that three bungalows, a penthouse, shop lots, land, oil palm plantations, luxury cars, and luxury watches are among the assets seized, estimated to be worth more than RM183 million, following a raid on a scrap metal smuggling syndicate across five states that began yesterday. According to sources, the raids under Op Metal were carried out by the Special Operations Division of the MACC in collaboration with the Customs Department, Inland Revenue Board, and Bank Negara Malaysia. The operation also saw the freezing of 45 company accounts and 82 individual bank accounts involving a total value of about RM51 million. The source added that during the raid, the MACC also seized five luxury watches, namely Patek Philippe, Tag Heuer, Rolex, Omega Speedmaster and Omega Seamaster, estimated to be worth more than RM740,000. The MACC also conducted searches at 13 new locations in Penang, Kedah, Johor and around the Klang Valley on July 15.
The Star
2 days ago
- The Star
MACC seizes over RM332mil in assets in major scrap metal smuggling probe
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC) has frozen and seized assets worth over RM332 million as part of an extensive investigation into a scrap metal and e-waste smuggling syndicate, which allegedly bribed enforcement officers, leading to a loss of over RM950 million in export tax revenue over the past six years. An MACC source reported that 27 witnesses have been questioned so far, including a primary suspect whose statement was recorded on Monday (July 21). No arrests have been made at this stage. "MACC has frozen 324 bank accounts, comprising 142 corporate accounts and 182 individual accounts, totalling nearly RM150mil. Assets seized so far amount to about RM183mil," the source said, adding that investigations are ongoing. Datuk Mohamad Zamri Zainul Abidin, senior director of MACC's Special Operations Division, confirmed these developments and stated that MACC is actively identifying those involved in the syndicate and scrutinising financial links between suspects and the implicated companies. The investigation is being conducted under Sections 16 and 18 of the MACC Act 2009 for bribery and false claims, as well as potential offences under anti-money laundering laws. Collaborating agencies, including the Inland Revenue Board (LHDN), Customs Department, and Bank Negara, are pursuing related offences under the Income Tax Act 1967 and Customs Act 1967. On July 14, MACC launched a large-scale crackdown, targeting 19 locations in Penang, Selangor, Negri Sembilan, Johor, and Kedah. The operation focused on a prominent scrap metal company owner with a 'Datuk' title. However, the suspect, believed to be a foreign national, was not at his Batu Maung home, having reportedly left the country two days prior. The team then moved to a scrap metal storage and processing facility on Jalan Bukit Minyak, mainland Penang, believed to belong to the suspect. For over six years, the syndicate exported scrap metal and e-waste to several countries, evading nearly RM1bil in export duties by falsely declaring cargo as machinery and other non-taxable metal goods to bypass the government's 15% export duty. Destinations included China, India, and others. The syndicate allegedly bribed Customs Department officers, establishing a corrupt network that operated undetected for years. MACC continued its crackdown with asset seizures of over RM183mil on July 15. The coordinated sweep at 13 locations across Penang, Kedah, Johor, and the Klang Valley was conducted with the Customs Department, Inland Revenue Board, and Bank Negara Malaysia as part of Ops Metal.
