Latest news with #RM154
The Star
26-06-2025
- The Star
Customs Dept foils attempt to smuggle over 50kg of drugs via air courier
SEPANG: The Customs Department at Kuala Lumpur International Airport (KLIA) foiled an attempt to smuggle over 56.81kg of cannabis, estimated to be worth RM5.56mil. This followed the seizure of the cannabis in operations conducted at several air cargo terminal operators in the KLIA Free Trade Zone last April and May. KLIA Customs Department director Zulkifli Muhammad said a total of 19 parcels, which were later found to contain substances suspected of being cannabis flowers, were seized during the operations. "The drugs were believed to be smuggled into the country and then out to various countries using air courier services," he said in a statement on Thursday (June 26). He said the case was being investigated under Section 39B(1)(a) of the Dangerous Drugs Act 1952, which provides the death penalty or life imprisonment and at least 12 strokes of the cane if not sentenced to death, upon conviction. In another development, Zulkifli said his team also foiled an attempt to smuggle 1.54 million white cigarettes of various brands, estimated to be worth RM154,000, with unpaid duties and taxes amounting to RM1.03mil, in a raid in Klang, Selangor, last May 9. He said the contraband was seized from two lorries following information and intelligence gathering by his team. "The syndicate's modus operandi is to use bonded lorries to distribute the smuggled cigarettes, and the cigarette deliveries are carried out at night to avoid detection by the authorities," he said. The case is being investigated under Section 135(1)(e) of the Customs Act 1967, which iprovides a fine of not less than 10 times the value of the goods or RM100,000, whichever is higher, and not more than 20 times the value of the goods or RM500,000, whichever is higher, or imprisoned for not more than five years, or both, upon conviction. - Bernama
The Sun
19-06-2025
- Business
- The Sun
SST expansion set to supercharge Malaysia's rental and subscription economy
As Malaysia's economy navigates an uncertain global environment, domestic consumption continues to stand out as a reliable driver of growth. In the first quarter of 2025, private consumption remained buoyant, supported by stable employment conditions, real wage growth, and subdued inflation. With Bank Negara Malaysia holding its policy rate steady, and with the improved market sentiment, the domestic consumption outlook is underpinned by both macroeconomic stability and sustained consumer confidence. But the mechanics of household spending are shifting, and businesses need to keep pace. One model quietly gaining traction in Malaysia is the subscription and rental economy. Once largely confined to software and media, subscription-based or rental-based models are now expanding into sectors such as home appliances, wellness, personal care, and food services. At its core, the model turns one-time product purchases into recurring service relationships, bundling the product with maintenance, upgrades, and customer support under a single monthly fee. For consumers, it offers convenience, zero up-front cost, and predictability; for businesses, it delivers revenue stability in terms of recurring income, and deeper customer relationships. Recent data underscores the relevance of this shift. According to the Department of Statistics Malaysia, distributive trade sales grew 5.7% year-on-year in March 2025, reaching RM154 billion, driven by a 6.6% rise in retail trade and a 5.7% increase in wholesale activity. This steady momentum in consumer-facing sectors suggests Malaysian households remain willing to spend, but with a growing preference for value-added, service-integrated offerings. Ecommerce and direct-selling channels, often favoured in subscription and rental models, continue to expand their share of wallets, reflecting evolving purchasing behaviours. Importantly, the expansion of Malaysia's Sales and Services Tax (SST) framework from 1 July 2025 could further accelerate this trend. With over thirty additional services, ranging from logistics and maintenance to leasing and repair, now taxable under SST, standalone services will become more costly for consumers and more complex for providers to administer. In this environment, bundled offerings that consolidate services and spread SST impact across a fixed monthly fee will gain traction. As more service categories come under SST, Malaysian households are likely to feel a gradual increase in living costs, prompting a shift toward predictable, all-inclusive pricing models that reduce exposure to unplanned expenses. Subscription and rental- oriented businesses are well-positioned to adapt. By internalising the servicing ecosystem and packaging it with product use, they can offer end-users transparency and convenience, while achieving operational efficiency on the back-end. For SMEs, this also simplifies compliance and improves tax predictability. One illustrative example is CUCKOO International (MAL) Berhad. While its roots trace back to South Korea, where the CUCKOO brand is renowned for its rice cookers and other home appliance innovations, including water filtration systems, the Malaysian entity has localised and scaled the model for local households, offering subscription- and rental-based solutions that blend Korean technology, Malaysian customer service, and holistic wellness offerings. By managing the entire product lifecycle internally, the company reduces friction for customers while embedding long-term recurring revenue into its operations. This positions CUCKOO not only to weather macro volatility but to thrive in a service-centric, post-SST marketplace. Rising household debt levels-up from RM1.25 trillion in 2019 to RM1.57 trillion by mid-2024 - suggest that more Malaysian households, especially in the B40 and M40 groups, are becoming value-conscious in their spending. This is driving greater interest in affordable, pay-as-you-go models for essential home appliances. Companies offering low-barrier rental plans, such as CUCKOO International, are likely to benefit from this trend as consumers prioritise financial flexibility over upfront ownership. Notably, CUCKOO's bundled rental and service model means the company is less directly affected by the expanded SST compared to providers that rely on disaggregated service charges—allowing it to maintain price competitiveness and operational continuity. Crucially, the model also generates formal employment across the value chain, from field technicians to logistics, customer service, and digital operations. In an era where servicesector jobs will anchor Malaysia's next phase of growth, these ecosystem-based businesses could play an outsized role in driving quality employment and upskilling. More broadly, the SST expansion may serve as an inflection point for Malaysia's informal and fragmented service providers. Micro-scale or unregistered operators may face new compliance burdens or pricing constraints, potentially pushing consumers toward formal subscription and rental players with structured offerings. In this light, the subscription and rental models become not only a commercial advantage, but a policy-aligned strategy for broadening the tax base and enhancing service delivery standards For investors and policymakers alike, the subscription and rental economy represents an underappreciated lever for long-term economic resilience. Recurring revenues support business continuity across cycles. Embedded service networks encourage job creation in nonoffshorable roles. And customer-centric bundling increases trust, loyalty, and lifetime value. Of course, success depends on execution. These models require strong back-end systems, consistent service quality, and customer relationship management capabilities. Businesses that overextend or fail to deliver may find themselves quickly losing credibility. But for those who get it right, the subscription and rental economy could redefine how value is created, delivered, and sustained in Malaysia's consumer market. In a world where consumers no longer buy just products, but experiences, services, and peace of mind -Malaysia's maturing middle class may well power the next generation of brands that not just sell more, but serve better. As Malaysia transitions into a more service-driven economy, forward-looking models like these may prove pivotal to sustaining growth, innovation, and inclusivity.
New Straits Times
19-06-2025
- Business
- New Straits Times
SST expansion set to supercharge Malaysia's rental, subscription economy
AS Malaysia's economy navigates an uncertain global environment, domestic consumption continues to stand out as a reliable driver of growth. In the first quarter of 2025, private consumption remained buoyant, supported by stable employment conditions, real wage growth, and subdued inflation. With Bank Negara Malaysia holding its policy rate steady, and with the improved market sentiment, the domestic consumption outlook is underpinned by both macroeconomic stability and sustained consumer confidence. But the mechanics of household spending are shifting, and businesses need to keep pace. One model quietly gaining traction in Malaysia is the subscription and rental economy. Once largely confined to software and media, subscription-based or rental-based models are now expanding into sectors such as home appliances, wellness, personal care and food services. At its core, the model turns one-time product purchases into recurring service relationships, bundling the product with maintenance, upgrades, and customer support under a single monthly fee. For consumers, it offers convenience, zero up-front cost, and predictability; for businesses, it delivers revenue stability in terms of recurring income, and deeper customer relationships. SST as a Catalyst for Subscription and Rental Growth Recent data underscores the relevance of this shift. According to the Department of Statistics Malaysia, distributive trade sales grew 5.7 per cent year-on-year in March 2025, reaching RM154 billion, driven by a 6.6 per cent rise in retail trade and a 5.7 per cent increase in wholesale activity. This steady momentum in consumer-facing sectors suggests Malaysian households remain willing to spend, but with a growing preference for value-added, service-integrated offerings. E-commerce and direct-selling channels, often favoured in subscription and rental models, continue to expand their share of wallets, reflecting evolving purchasing behaviours. Importantly, the expansion of Malaysia's Sales and Services Tax (SST) framework from July 1 2025 could further accelerate this trend. With over thirty additional services,ranging from logistics and maintenance to leasing and repair,now taxable under SST, standalone services will become more costly for consumers and more complex for providers to administer. In this environment, bundled offerings that consolidate services and spread SST impact across a fixed monthly fee will gain traction. As more service categories come under SST, Malaysian households are likely to feel a gradual increase in living costs, prompting a shift toward predictable, all-inclusive pricing models that reduce exposure to unplanned expenses. Subscription and rental- oriented businesses are well-positioned to adapt. By internalising the servicing ecosystem and packaging it with product use, they can offer end-users transparency and convenience, while achieving operational efficiency on the back-end. For SMEs, this also simplifies compliance and improves tax predictability. Cuckoo's Forward-Looking Business Model One illustrative example is Cuckoo International (MAL) Bhd. While its roots trace back to South Korea, where the Cuckoo brand is renowned for its rice cookers and other home appliance innovations, including water filtration systems, the Malaysian entity has localised and scaled the model for local households, offering subscription- and rental-based solutions that blend Korean technology, Malaysian customer service, and holistic wellness offerings. By managing the entire product lifecycle internally, the company reduces friction for customers while embedding long-term recurring revenue into its operations. This positions Cuckoo not only to weather macro volatility but to thrive in a service-centric, post-SST marketplace. Rising household debt levels-up from RM1.25 trillion in 2019 to RM1.57 trillion by mid-2024 -suggest that more Malaysian households, especially in the B40 and M40 groups, are becoming value-conscious in their spending. This is driving greater interest in affordable, pay-as-you-go models for essential home appliances. Companies offering low-barrier rental plans, such as Cuckoo International, are likely to benefit from this trend as consumers prioritise financial flexibility over upfront ownership. Notably, Cuckoo's bundled rental and service model means the company is less directly affected by the expanded SST compared to providers that rely on disaggregated service charges—allowing it to maintain price competitiveness and operational continuity. Crucially, the model also generates formal employment across the value chain, from field technicians to logistics, customer service, and digital operations. In an era where service-sector jobs will anchor Malaysia's next phase of growth, these ecosystem-based businesses could play an outsized role in driving quality employment and upskilling. More broadly, the SST expansion may serve as an inflection point for Malaysia's informal and fragmented service providers. Micro-scale or unregistered operators may face new compliance burdens or pricing constraints, potentially pushing consumers toward formal subscription and rental players with structured offerings. In this light, the subscription and rental models become not only a commercial advantage, but a policy-aligned strategy for broadening the tax base and enhancing service delivery standards. Subscription and Rental Models as a Resilience Strategy For investors and policymakers alike, the subscription and rental economy represents an underappreciated lever for long-term economic resilience. Recurring revenues support business continuity across cycles. Embedded service networks encourage job creation in non-offshorable roles. And customer-centric bundling increases trust, loyalty, and lifetime value. Of course, success depends on execution. These models require strong back-end systems, consistent service quality, and customer relationship management capabilities. Businesses that overextend or fail to deliver may find themselves quickly losing credibility. But for those who get it right, the subscription and rental economy could redefine how value is created, delivered, and sustained in Malaysia's consumer market. In a world where consumers no longer buy just products, but experiences, services, and peace of mind - Malaysia's maturing middle class may well power the next generation of brands that not just sell more, but serve better. As Malaysia transitions into a more service-driven economy, forward-looking models like these may prove pivotal to sustaining growth, innovation, and inclusivity.
BusinessToday
22-05-2025
- Business
- BusinessToday
KLK 2Q Profit Falls To RM154 Million, Hit By Overseas Associate Losses, FX Impact
Kuala Lumpur Kepong Bhd Kuala Lumpur Kepong Berhad (KLK) posted a lower net profit of RM154 million for its second quarter ended March 31, 2025 (2QFY25), down from RM220 million in the preceding quarter, despite a rise in group revenue to RM6.3 billion, compared to RM5.9 billion in 1QFY25. On a year-on-year basis, KLK's 2Q pre-tax profit rose 15% to RM269.9 million from RM234.7 million in 2QFY24, supported by a 16.2% increase in revenue to RM6.34 billion. Segmental Performance Manufacturing The group's manufacturing segment narrowed its loss to RM38.3 million, compared to RM53.4 million in 1QFY25. The improvement was largely driven by: Higher revenue of RM5.42 billion (1QFY25: RM4.76 billion), Stronger profit contribution from the Oleochemical division, and A smaller loss from its non-oleochemical operations. However, the segment continued to be weighed down by losses in its refinery and kernel crushing operations. Property Development The property segment saw its profit slump 53.4% to RM3.5 million, from RM7.5 million in 1QFY25, on lower revenue of RM39.7 million (1QFY25: RM44.1 million), reflecting a slower property market. Investment Holding/Others This segment posted a larger loss of RM94.8 million, widening from RM58.1 million in the previous quarter. The decline came despite a stronger farming profit of RM34.6 million (1QFY25: RM186,000), as the group absorbed a RM63.3 million equity loss from its UK-listed associate Synthomer plc, which continues to face performance headwinds. Net corporate expenses increased to RM54.8 million (1QFY25: RM50.6 million), mainly due to a larger foreign exchange loss of RM40 million from the translation of intercompany loans denominated in foreign currencies. This was partly offset by a RM3.9 million gain from land sales and government acquisitions. Despite challenges in its manufacturing and investment holding arms, KLK remains supported by steady revenue growth and contributions from its oleochemical business. However, the group's near-term profitability may remain volatile due to external pressures, particularly from its overseas associate performance and currency fluctuations Related
Malay Mail
20-05-2025
- Business
- Malay Mail
Asian stocks climb as investors weigh US debt, trade and rate decisions
Investors shrug off Moody's US credit downgrade Dollar drifts as selloff in Treasuries ease Eyes on RBA policy decision; rate cut expected SINGAPORE, May 20 — Asian stocks rose today while US Treasury yields steadied allowing a bit of a breathing room for the US dollar as investors took stock of the debt load of the world's biggest economy and awaited trade deals. Moody's downgrade of its rating for US sovereign credit last week — due to concerns about that nation's growing US$36 trillion (RM154 trillion) debt pile — led to a selloff in Treasuries yesterday but that stabilised by Asian trading hours today. 'The Moody's downgrade was a temporary shock and rather meaningless in the bigger picture,' said Kyle Rodda, senior financial market analyst at 'But then we're not really being fed any kind of fresh new news for investors to buy into... We haven't gotten any new deals coming through.' With little indication of trade deals on the way, markets are struggling for direction, analysts said. The 30-year bond yield was 3.5 basis points lower at 4.906 per cent after hitting an 18-month high of 5.037 per cent in the previous trading session. Major US stock indexes recovered from early loss to end mostly flat. That left the MSCI's broadest index of Asia-Pacific shares outside Japan 0.36 per cent higher, hovering near the seven-month high touched last week. Japan's Nikkei gained 0.65 per cent in early trade. Chinese stocks were steady at the open after the local central bank cut benchmark lending rates for the first time since October, while five of China's biggest state-owned banks also lowered deposit interest rates. The blue-chip index was 0.15 per cent higher whereas Hong Kong's Hang Seng Index rose 1 per cent. US Federal Reserve officials took on cautiously the ramifications of the Moody's downgrade and unsettled market conditions as they continued to navigate an uncertain economic environment in the wake of erratic US trade action. While not an imminent issue for the Fed, higher borrowing costs tied to a deteriorating US financial position could make credit generally more expensive and create restraint on economic activity. Traders have priced in two interest rate cuts from the US central bank this year, versus four last month when President Donald Trump's tariff salvos upended markets and led to investors exiting US assets. 'For now, US exceptionalism and corporate resilience are offsetting the risks,' said Charu Chanana, chief investment strategist at Saxo in Singapore. 'But how long before investors start demanding a higher risk premium, especially with the Fed in wait-and-see mode and trade talks seemingly stalling?' Markets will be monitoring a US congressional debate over a tax bill later in the day at which Trump is widely expected to be present ahead of a vote on the legislation later this week. The measure would extend Trump's 2017 tax cuts and potentially add US$3 trillion to US$5 trillion to national debt over the next decade. Investors will also watch out for a policy decision from the Reserve Bank of Australia, with cuts to interest rates widely expected. The Australian dollar was a tad weaker at US$0.64485. In commodities, oil prices were mixed as investors contended with a potential breakdown in talks between the US and Iran over the latter's nuclear activity and weakened prospects of more Iranian supply entering the market. — Reuters
