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The Star
14-07-2025
- Business
- The Star
Trading ideas: Affin Bank, Hong Leong Bank, BTM, Jasa Kita, Greatech, Meta Bright, Hextar REIT, MRCB, Econpile, SkyGate
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Affin Bank Bhd has been upgraded from 'A' to 'AA' in the Morgan Stanley Capital International environmental, social and governance ratings. Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd will revise their lending and deposit rates by 25 bps, effective July 14. BTM Resources Bhd has scrapped its 7MW renewable energy power plant project, citing difficulties in securing financing and rising project costs. Jasa Kita Bhd 's substantial shareholders Tan Sri Tan Hua Choon and Datuk Seri Tan Han Chuan, who collectively hold 181.3mn shares or 40.3% equity interest, have inked a conditional share sale agreement with Kintan Prima Sdn Bhd for their stake at RM68.9mn cash or 38 sen a share. Greatech Tech Bhd said GTech Holdings Sdn Bhd has transferred its 57.7% stake in the automated machinery group to GTech's two shareholders. Meta Bright Group Bhd has sold its wholly-owned Australian subsidiary, Meta Bright Australia Pty Ltd, for RM25.4mn as part of a strategic shift towards strengthening domestic operations. Hextar Real Estate Investment Trust said it has entered into a deal to buy two parcels of leasehold land in Melaka, totalling 41.8 acres, for RM40mn. Malaysian Resources Corp Bhd, through its wholly owned subsidiary Country Annexe Sdn Bhd, has entered into a joint venture development agreement with Ipoh Sentral Sdn Bhd to undertake the proposed Ipoh Sentral project in Ipoh, Perak. Econpile Holdings Bhd 's wholly owned subsidiary, Econpile (M) Sdn Bhd, has secured a RM98.2mn construction contract from Eastmont Sdn Bhd for a proposed industrial development in Klang, Selangor. SkyGate Solutions Bhd said it is raising its stake in SkyGate Integration Sdn Bhd (formerly Leader Range Technology Sdn Bhd) to 95% by acquiring another 44% stake for RM9.8mn via a share issuance deal.
The Star
11-07-2025
- Business
- The Star
Affin Group achieves MSCI ESG rating upgrade to AA
Affin Bank Bhd president and group chief executive officer Datuk Wan Razly Abdullah KUALA LUMPUR: Affin Bank Bhd has been upgraded from 'A' to 'AA' in the Morgan Stanley Capital International (MSCI) environmental, social and governance (ESG) ratings. In a statement today, the bank noted that the upgrade, published in MSCI's latest ESG ratings report, was largely driven by improvements in its corporate governance practices, including enhanced board oversight, accountability, and transparency, all aligned with global best practices. "According to MSCI's evaluation, the group outperformed industry peers, particularly in areas such as corporate governance, consumer financial protection, and data privacy practices. "The group's approach to cyber security risk mitigation, product transparency, whistleblower policy, as well as business ethics and oversight, was found to be superior or in line with global standards,' it said. President and group chief executive officer Datuk Wan Razly Abdullah said the group is honoured to be recognised by MSCI with an AA rating. "This reflects the tangible progress we have made in embedding sustainability into our operations, culture, and governance. "Sustainability is more than compliance; it is a core driver of how we create value for our stakeholders and ensure long-term resilience,' he said. As part of its ESG-focused strategy, Affin said it continues to introduce purpose-driven products and services such as green financing, ethical investment solutions, and inclusive digital offerings that promote financial well-being and environmental stewardship. "These include recent initiatives under its small and medium enterprises banking portfolio that support social enterprises, climate-conscious borrowers, and underserved communities, delivering both commercial and societal value,' the bank added. - Bernama
Business Times
03-07-2025
- Business
- Business Times
South Korea passes commercial Bill revision to tackle ‘Korea discount'
[SEOUL] South Korea's parliament passed on Thursday (Jul 3) a revision to the Commercial Act to expand the fiduciary duty of board members to protect the interests of minority shareholders and try to boost the country's corporate market valuations. President Lee Jae-myung, who was elected last month, had pledged to support the legislation to help eliminate what is known as the 'Korea discount'. The discount refers to the lower valuations that South Korean companies typically trade at relative to their global peers, partly reflecting the dominance of family-owned conglomerates that have been criticised for putting their interests ahead of other shareholders. A previous version of the Bill approved by parliament was vetoed by the conservative government of Lee's predecessor. The latest version was a compromise backed by the conservative main opposition party. 'I am confident that the stock market improvements of revising the Commercial Act and eliminating negative competition factors will make the situation better than now,' Lee said at a news conference earlier on Thursday. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Lee said he had expected the country's benchmark Kospi stock index to rise above 3,000 points just by normalising the country's system, after six months of a leadership vacuum, and reaffirmed his pledge to usher in a period when the index tops 5,000. It has been part of Lee's 'Kospi 5,000' initiative to amend the Commercial Act, along with other market reforms including winning an upgrade from emerging market to advanced market by global index provider Morgan Stanley Capital International. 'The amendment will raise foreign investors' confidence in domestic capital markets and the possibility of South Korea winning developed market status from index provider MSCI in the coming years,' said Seo Sang-young, an analyst at Mirae Asset Securities. However, groups representing both large and small businesses expressed concern that the amendment does not do enough to protect directors from lawsuits, or company boards from speculative investors. 'We hope that discussions on ensuring defence measures for management rights... will take place as soon as possible,' said a statement from eight local business lobby groups, including the Federation of Korea Industries, the Korea Chamber of Commerce & Industry and the Korea Federation of SMEs. The government plans to set up a task force on winning developed market status, the country's vice finance minister said this week, after MSCI said last month in its annual review that it would continue to monitor market accessibility in South Korea. The Kospi rose 1.34 per cent on Thursday to close at 3,116.27 points, the highest since Sep 27, 2021, as investor sentiment was also buoyed by optimism around US tariffs after the trade deal with Vietnam reached by US President Donald Trump's administration. REUTERS
Korea Herald
25-06-2025
- Business
- Korea Herald
S. Korea misses MSCI market upgrade again
South Korea has failed once again to secure an upgrade in market status from Morgan Stanley Capital International, which cited the need for further improvements in foreign exchange market accessibility. "Market participants identified the limited convertibility of the Korean won in the offshore currency market as a key barrier to its reclassification to developed market status," MSCI said in its annual market classification review report. The feedback was based on consultations with global investors between 2008 and 2014, when Korea was on MSCI's watch list for a potential upgrade. It was removed in 2014 due to accessibility issues, including a rigid investor identification system and limited trading hours. While acknowledging progress since then, MSCI said additional reforms and time to assess their impact are still needed for Korea to qualify as a developed market. The report noted Korea's recent steps, including allowing registered foreign institutions access to the onshore interbank forex market and extending trading hours to 17 hours. 'Despite these reforms, investors believe it remains critical to assess whether the implemented measures are sufficient, given that developed markets typically feature fully convertible currencies with active, unconstrained offshore and onshore forex markets,' MSCI said. The easing of identification procedures and reporting requirements for foreign investors was also seen as meaningful progress. However, MSCI noted that operational challenges persist and more needs to be done for market participants to fully experience the benefits of these changes. The index provider also called for broader access to instruments — such as ETFs, futures, options and swaps — to meet developed market standards. A key improvement was the removal of a blanket short-selling ban in March. In place since November 2023, the ban had been a major barrier. In a separate global accessibility review released Friday, MSCI raised Korea's short-selling rating from 'minus' to 'plus.' Still, Wednesday's review showed the ban's removal wasn't enough. "While market activity has recovered, investor concerns remain regarding the operational burden of compliance and the risk of abrupt regulatory shifts," MSCI said, adding it will continue to monitor developments to assess market stability and the consistency of Korea's regulatory framework over time. MSCI classifies global equity markets into developed, emerging, and frontier categories. Korea, designated as an emerging market in 1992, remains grouped with China, Indonesia, Malaysia, and Brazil. To be upgraded, a country must first be placed on the watch list and undergo a one-year review. Following repeated setbacks, expectations had risen amid recent efforts to improve market access. But optimism faded after last week's accessibility review, which gave Korea a 'minus' in six of 18 categories, including forex liberalization, registration, settlements, information flow and foreign ownership limits. The new administration is renewing momentum. President Lee Jae Myung, who took office June 4, has made MSCI developed market inclusion a core policy goal. Foreign inflows could rise sharply if Korea is upgraded, with Goldman Sachs projecting up to $30 billion and the Korea Economic Research Institute estimating as much as $45 billion. As part of the initiative, the government is preparing to launch a task force comprising key institutions — including the Bank of Korea, Financial Services Commission, Financial Supervisory Service and Korea Exchange — alongside private-sector players to develop a roadmap for the upgrade. 'The government is committed to improving foreign investment access and advancing the forex market in line with MSCI's recommendations,' an official at the Ministry of Economy and Finance overseeing the initiative said Wednesday. 'The task force aims to continue discussions on regulatory improvements, staying attuned to feedback from global investors.'
Korea Herald
25-06-2025
- Business
- Korea Herald
S. Korea remains on MSCI emerging market list
South Korea has again failed to be put on a watch list for an upgrade in market status by global index provider Morgan Stanley Capital International), the index provider said Wednesday, stressing the need for the country to work on its foreign exchange market reform and diversify investment instruments. MSCI said it decided to keep South Korea in an emerging market group as market participants have identified the limited convertibility of the Korean won in the offshore currency market as a key barrier to reclassification to a developed market status. The country was initially put on the watch list in 2009 for a potential upgrade of its status to a developed market and inclusion in the MSCI developed market index, but was delisted in 2014 due to flaws such as limits on currency-trading hours. "At that time, other key accessibility issues highlighted were the rigidity of the ID system that made in-kind transfers and off-exchange transactions onerous; and the lack of investment instruments availability due to the restrictions on the use of exchange data for the creation of financial products," MSCI said. The index provider said it will continue to monitor developments to assess the country's market stability and consistency of its regulatory framework over time, adding "potential reclassification consultations require that all issues have been addressed, reforms have been fully implemented, and market participants have had ample time to thoroughly evaluate the effectiveness of the changes." The decision by MSCI came after it said in its annual market accessibility report released last week that foreign accessibility to South Korea's equity and currency markets continues to remain limited, despite a series of reform measures, including the extension of trading hours and the allowance of foreign investors to participate in the onshore foreign exchange market. The global index provider had also highlighted that there is no offshore currency market and that constraints persist on the onshore currency market. MSCI reclassifies its watch list of emerging markets and developed markets every year in June, based on the countries' economic development, size and liquidity of equity markets, and market accessibility for foreign investors. (Yonhap)
