Latest news with #Neoh
The Star
15-07-2025
- Business
- The Star
Semiconductor sector holds steady for now
PETALING JAYA: While Malaysia's semiconductor sector is unlikely to be sidelined anytime soon, analysts caution that the risk of gradually losing market share is real if cost pressures persist and regional competition intensifies. Tradeview Capital fund manager Neoh Jia Man said demand for local semiconductor products and services is expected to remain inelastic over the next few years, as customers struggle to find alternative suppliers quickly. However, in the long run, they will still look to diversify. 'Customers will almost certainly seek to renegotiate prices, expecting local suppliers to help share the cost burden from tariffs. 'In the end, it depends on how big the local semiconductor companies' profit margins are and how much cost they can absorb,' Neoh told StarBiz. 'I wouldn't say there's no impact on demand, but for now, US customers don't have much choice – at least for the next few years. It would take time for them to fully establish alternative supply chains.' The United States recently announced a 25% tariff on Malaysia, up from 24% previously, effective Aug 1, 2025. By comparison, Vietnam will face a lower 20% rate. It was also reported that the US is working on an interim trade deal with India that could reduce its proposed tariffs to below 20%. For sectors like semiconductors, the Trump administration has signalled since April that a special tariff rate would be applied. While some semiconductor products are exempted from the tariffs announced in April, it remains to be seen if this will continue beyond Aug 1. Earlier this month, US President Donald Trump said he will 'soon' announce the tariff rate for the chip industry. Vietnam's success in negotiating a lower tariff, along with India's push into higher-value semiconductor activities, may increase competitive pressure on Malaysia. This may also accelerate the Malaysia+1 trend, where companies shift some operations out of Malaysia. Neoh said Vietnam and India 'could pose serious threats' to Malaysian semiconductor companies over the long run, as both countries have the advantage in terms of labour costs and market size. 'Hence, if Malaysia is unable to negotiate a better tariff rate with the United States compared with these countries, then we will definitely lose more business to them over the next decade,' he said. Phillip Nova senior analyst Danish Lim noted a silver lining: Malaysia's overall tariff rate remains lower than some neighbours such as Thailand, Indonesia and Cambodia. 'The tariff saga could also accelerate the China + 1 shift, with US fabless companies that still run test and packaging facilities in China likely to fast-track (moving) their facilities to Penang or Kulim. 'This would also apply to other countries that have higher tariff rates than Malaysia,' Lim added. Neoh opined that the China+1 trend may still outweigh the Malaysia+1 phenomenon, as players continue relocating from China to Malaysia. 'As such, we are still a net beneficiary amid the ongoing tariff developments.' While the risk of gradually losing market share is real, Neoh said the rate at which Malaysian chip companies gain market share from Chinese players might still outpace the rate at which India and Vietnam erode theirs, at least for the next few years. Between India and Vietnam, Phillip Nova's Lim said the latter poses a bigger risk given its lower tariff rate of 20%, more competitive labour costs and proximity to China. Crucially, Vietnam also has one of the world's largest rare earth deposits, he added. Nevertheless, he noted that both Vietnam and India have less mature ecosystems than Malaysia, particularly in the outsourced semiconductor assembly and test (Osat) space. 'Both still face challenges such as talent availability and infrastructure development. Hence, as the semiconductor space becomes more globally competitive, we believe market share erosion will be gradual, not abrupt. 'Volume relocations by US companies are very unlikely in the near term,' Lim said. Lim is of the view that if the 25% tariff remains post Aug 1, Malaysia's electrical and electronics exports, and consequently semiconductor players, could take a hit, as supporting industries like raw materials, industrial components and machinery remain subject to tariff. He added that the structural drivers for artificial intelligence or AI remains intact, and demand for Osat is likely to grow as more advanced chips hit the market. 'Provided the exemptions for semiconductors remain, Malaysia's key role in the global semiconductor supply chain is unlikely to take much of a hit, even with rising competition from neighbours like Vietnam,' he said.
The Star
11-06-2025
- The Star
Four charged in Sabah for alleged role in multi-million ringgit investment scam
KOTA KINABALU: Four suspects have been charged at the Sessions Courts here for allegedly allowing their bank accounts to be used for scams and non-existent investment schemes. Their actions allegedly caused a childcare centre owner in Penampang over RM2mil in losses from transactions made in 2024, the court heard on Wednesday (June 11). No pleas were recorded from the four accused: Vincent Chia, 20; Maggie Neoh, 39; Wilson Anak Penchen, 40; and Nurul Mazidah Badrol Hisham, 34. Their charges were read before Sessions Court judges Marlina Ibrahim, Hurman Hussain, Amir Shah Amir Hassan and Elsie Primus. According to the facts of charge, Chia was involved directly in transactions amounting to RM135,000 in his personal account between Dec 10 and Dec 18, last year. Neoh was accused of committing the same offence where she allegedly received RM39,000 on Dec 14, while Wilson received RM111, 668 from Dec 25 up to Jan 7, this year, and Nurul RM19,000 on Dec 17. They were all charged under Section 424C (1) of the Penal Code for engaging in transactions using one's own payment instrument or financial account without lawful purpose. If convicted, they could be jailed between three and 10 years and fined at least RM10,000 or up to RM150,000, or both. The court set July 10 for case mention for Chia, July 8 for Neoh and July 10 and July 31 for Wilson and Nurul, respectively. Earlier, the court heard that the victim lost over RM2mil after joining an investment scheme which she saw on a Facebook advertisement on Nov 26, 2024. She had contacted the representative of the so-called investment company and was attracted to the scheme. She made her payments and topped up her investments in a total of 53 transactions totalling more than RM2.17mil throughout her involvement in the scheme. She received RM6,600, a cellphone and several gold plates weighing 15g and 50gr as investment returns. The woman realised she had been scammed when her requests to withdraw a large amount of her 'profit' were denied, while she was compelled to top up her investments multiple times if she wished to withdraw. Police are still pursuing other members of the syndicate involved in similar scams.
New Straits Times
05-06-2025
- Business
- New Straits Times
Petronas signals long-term LNG commitment in Canada
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas)'s continued presence in Canada highlights its long-term commitment to natural gas and liquefied natural gas (LNG) as a core pillar of its energy transition strategy. According to Tradeview Capital fund manager Neoh Jia Man, natural gas remains a vital transitional fuel for Petronas, which is expected to sustain investments in LNG and related infrastructure. However, Neoh said Petronas may eventually divest its Canadian upstream operations while retaining its stake in LNG Canada, a move that would still reflect its strategic focus on LNG and align with its long-term plans in the region. "In our view, Canada's low-cost natural gas and crude oil resources remain attractive to most energy companies. "However, cultural differences and a lack of local operational expertise may present execution challenges for some Asian energy firms," he told Business Times. As such, Neoh said that over the long term, as Petronas shifts away from traditional fossil fuels, a full exit from Canada remains possible. He noted that this is likely unless the company identifies new opportunities that align with its evolving portfolio in renewable energy, hydrogen, green mobility, speciality chemicals, carbon capture and storage, or bio-based products. Petronas has denied reports suggesting it intends to exit Canada, reaffirming its strong, long-term commitment to the country's energy sector. In a brief statement issued on Wednesday, the Malaysian state-owned energy firm clarified that claims of its withdrawal from Canada are incorrect. This statement follows a Bloomberg report on Tuesday indicating that Petronas is evaluating strategic options for its Canadian subsidiary, formerly Progress Energy Resources Corp. According to sources cited by Bloomberg, Petronas is working with a financial advisor and gauging interest from potential buyers. The Canadian business is estimated to be worth between US$6 billion and US$7 billion. Reports suggest that Petronas is considering either a full or partial sale, with the possibility of selling only a minority stake depending on investor interest. Meanwhile, Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan noted that Petronas has a history of reassessing its LNG investments in Canada based on prevailing market conditions. He pointed out that back in 2017, Petronas withdrew from the Pacific Northwest LNG project following a period of low LNG prices, while simultaneously focusing on the Rapid LNG project in Pengerang, Malaysia. Azmi suggested that this approach reflects a strategic prioritisation rather than a complete withdrawal from Canadian projects. Another industry expert said Petronas' ongoing commitment to Canada demonstrates confidence in the value of Canadian LNG assets and reflects a balanced strategy to diversify its portfolio across stable markets. He noted that Canada offers political stability, strong regulatory frameworks, and access to the Pacific market, making it an attractive and reliable destination for Asian energy investments, especially as demand in Asia continues to grow. "While companies routinely review their portfolios, Petronas' current stance suggests it sees continued value in Canada. "However, any future decisions to exit from Canada would likely be driven by long-term market trends," he said. Petronas entered Canada in 2012 by acquiring Progress Energy for US$5.3 billion, securing shale gas assets in northeastern British Columbia. Currently, Petronas operates the North Montney Joint Venture (NMJV) and holds a 25 per cent share in LNG Canada, a significant US$40 billion liquefied natural gas project nearing completion in Kitimat, British Columbia. Other LNG Canada partners include Shell plc, PetroChina, Mitsubishi Corp., and Korea Gas Corp. The LNG facility is set to be one of the lowest in carbon emissions globally and is preparing to ship its first cargo later this year. Petronas reaffirmed its commitment to supplying lower-carbon, reliable Canadian liquefied natural gas to global markets for the long term.
New Straits Times
22-05-2025
- Business
- New Straits Times
PN17 companies struggle to stay afloat
KUALA LUMPUR: The potential removal of companies from Bursa Malaysia for failing to submit financial regularisation plans is becoming an increasingly familiar reality in the 2025 corporate landscape. Since January, at least one company has been shown the door, while two more under Practice Note 17 (PN17) face potential delisting amid an increasingly challenging global economic environment. Last month, Reach Energy Bhd became the first to be delisted this year, on April 29, after its third extension request to submit a regularisation plan was rejected. The oil and gas company, once a high-profile special purpose acquisition company (SPAC), had failed to demonstrate a viable turnaround strategy despite repeated assurances. It slipped into PN17 in April 2023, after the shareholders' equity fell below 50 per cent of its share capital as of the fiscal year ended Dec 31, 2022. In terms of financial performance, for the fiscal year ended Dec 31, 2024, Reach Energy reported revenue of RM207.83 million, a slight decrease from RM208.67 million in the previous year. The company recorded a net loss of RM18.11 million, an improvement compared to the RM208.3 million loss in the prior year. On Tuesday, Sarawak Cable Bhd and Annum Bhd were flagged for potential delisting after Bursa rejected their appeals for more time. Both companies are scheduled for trading suspension on May 28, with delisting set for May 30, unless a fresh appeal is submitted and accepted. In early trade, shares of Sarawak Cable and Annum plunged by 56 per cent and 70 per cent, respectively. Sarawak Cable continued to slide throughout the day, ending 62.5 per cent lower at 3 sen with a total of 59.1 million shares traded. Annum tumbled 80 per cent, losing 4 sen to close at 1 sen, with 7.9 million shares changing hands. Tradeview Capital fund manager Neoh Jia Man said while the share price crashes may appear dramatic, they are not out of the ordinary within the current market context. "The share price performance of both firms on Wednesday is not unusual, as it merely reflects the broader weak market sentiment," he told Business Times. Neoh advised investors not to concentrate only on day-to-day share price changes, but to pay closer attention to shifts in a company's fundamentals, especially when firms fail to stabilise their operations, increasing the risk of delisting. "Although the technical triggers for their classification as PN17 or GN3 (under Paragraph 8.03A) differ, the underlying issue is the same: both firms are considered to have insufficient levels of operations to meet ongoing listing requirements," he added. He said there are not any particular industries or sectors that are more prone to delisting, as the risk of being delisted due to inadequate business operations is generally not tied to any specific sector. "Investors should seek to understand the root causes of the potential delisting in each case. It is crucial to engage management on their recovery plans, as this may offer insight into the likelihood of a white knight emergence or the viability of a new business plan," he added. Meanwhile, several other distressed firms have received temporary reprieve. Pertama Digital Bhd and Iskandar Waterfront City Bhd were recently granted six-month extensions by Bursa to finalise their respective regularisation plans. Majuperak Holdings Bhd, a Perak state-linked developer, was given until October 11 to submit its proposal. The developer's turnaround strategy involves several key elements, including acquiring strategic assets, selling off underperforming properties, and investing in renewable energy initiatives. PN17 and Guidance Note 3 (GN3) are designations by Bursa Malaysia for financially distressed companies listed on the stock exchange. These classifications apply to firms experiencing issues such as shareholders' equity dropping below 25 per cent of paid-up capital or loan defaults. Affected companies are required to submit a regularisation plan, typically within 12 months, or risk suspension and potential delisting. Currently, 24 companies are classified under PN17 and GN3 on Bursa Malaysia, representing about 2.34 per cent of the 1,025 listings across the Main and ACE Markets.
New Straits Times
25-04-2025
- Business
- New Straits Times
MBI Ponzi scheme targeted foreigners unfamiliar with local market [WATCH]
KUALA LUMPUR: Investment scams like the now-exposed Mobility Beyond Imagination (MBI) scheme often target foreign investors who are less familiar with local market conditions, says fund manager Neoh Jia Man. Neoh, of Tradeview Capital, said it is not uncommon for schemes originating in one country to lure victims from another, precisely because the latter lack on-the-ground knowledge to spot red flags. "These scams are designed to exploit gaps in awareness," Neoh told the New Straits Times' Beyond the Headlines. "When you're unfamiliar with how things operate locally — the regulations, the players, the red flags — you're far more vulnerable." Neoh added that investors should focus on markets where they have a "homegrown advantage" — familiarity with the business environment, regulations, and on-the-ground realities. "That local knowledge gives you an edge. There were actually a lot of obvious warning signs in MBI's case that locals might have picked up on — but foreigners wouldn't necessarily recognise them," he said. MBI, founded by Tedy Teow Wooi Huat, is believed to have defrauded more than 11 million people globally. On April 11, four 'Datuks' — including two lawyers — were among eight people arrested in connection with MBI. Inspector-General of Police Tan Sri Razarudin Husain said the federal police's Anti-Money Laundering Unit has so far frozen and seized assets and accounts worth RM3.17 billion. The arrests and seizures were made under Op Northern Star, a cross-border operation launched after an Interpol Red Notice was issued on March 20. Assets linked to MBI's Ponzi-style operation — based in a neighbouring country — are still being traced.
