Latest news with #RM159.8
The Sun
5 days ago
- Business
- The Sun
MARC Ratings assigns AA+ credit rating to Perak, cites low debt, healthy reserves
PETALING JAYA: Malaysian Rating Corporation Bhd (MARC Ratings) has assigned a sub-sovereign credit rating of AA+ with a stable outlook to Perak, based on its sub-sovereign rating scale. The rating, although unsolicited, reflects the state's prudent fiscal management, its strong commitment to strategic, development-focused spending, and a notably low debt burden – all supported by healthy reserve levels. 'The stable outlook reflects our expectation that Perak will continue to uphold disciplined fiscal practices, maintain high levels of development investment, and preserve its low debt and strong reserves,' MARC Ratings said in a statement. 'The successful execution of its economic and social development strategies could further strengthen its credit profile over time.' Perak has consistently demonstrated sound fiscal management, maintaining a near-balanced fiscal position even while allocating a significant portion of its budget – averaging over 30% between 2019 and 2023 – to development spending, the rating agency said. Over the same period, the state's total revenue grew at a compound annual rate of 2.6%, slightly outpacing its operating expenditure growth by 0.2 percentage point. This enabled Perak to maintain a balanced fiscal position while pursuing its development objectives. A key revenue driver has been the steady increase in tax collections, primarily from quitrent and royalties. In 2023, tax revenue accounted for 46.1% of total income, significantly exceeding both national and peer medians. Perak contributed 5.3% to Malaysia's real gross domestic product (GDP) in 2023, positioning it as a mid-sized contributor to the national economy. The state's GDP growth closely mirrored its revenue growth, averaging 2.5% annually from 2019 to 2023. Looking ahead, MARC Rating noted that while Perak's financial management remains sound, operating expenses are expected to rise due to planned increases in civil servant salaries and pension adjustments. In anticipation, the Perak government has budgeted for a deficit in 2025. However, the state is expanding its revenue-generating initiatives, which are expected to improve its fiscal standing over time. Perak maintains a conservative debt profile. It has not undertaken any new borrowings since 2016 and has maintained a solid debt servicing record. As of 2023, Perak's outstanding debt stood at RM159.8 million, the third lowest among Malaysian states, behind only Penang and Selangor. Between 2019 and 2023, Perak recorded an average debt-to-GDP ratio of just 0.2% and a debt-to-revenue ratio of 17.3%, both of which are well below the national and peer medians. Meanwhile, the state's consolidated funds increased to RM1.5 billion in 2023, up from RM1.3 billion in the previous year. The reserves covered 126.2% of annual expenditure and exceeded the state's outstanding debt several times over, offering ample fiscal flexibility and shock absorption capacity for future capital investments and economic initiatives. MARC Ratings also highlighted Perak's political landscape, which has seen alternating ruling coalitions in recent elections. While smaller development projects can be completed within a single administrative term, larger, multiphase initiatives – such as the Lumut Maritime Industrial City and Silver Valley Technology Park – would benefit from greater political continuity. 'Conversely, any significant shifts in development priorities or weak socioeconomic outcomes could introduce downward pressure on the rating,' the agency warned, emphasising the need for strategic consistency and long-term policy focus to translate development plans into meaningful economic progress.
New Straits Times
28-05-2025
- Business
- New Straits Times
Axiata's Q1 earnings more than double to RM160mil
KUALA LUMPUR: Axiata Group Bhd posted a strong set of results for the first quarter ended March 31, 2025 (1QFY2025), with net profit more than doubling to RM159.8 million from RM60.03 million a year earlier. This was underpinned by merger synergies, lower depreciation and amortisation expenses, favourable foreign exchange (Forex) movements and a higher profit contribution from CelcomDigi Bhd. However, its revenue fell 11.3 per cent to RM5.09 billion, weighed down by the depreciation of the Indonesian rupiah and Bangladeshi taka. The improved bottom line was also supported by reduced impairment charges, lower marketing and promotional spending, and net forex gains amounting to RM28.4 million. In a statement, the group noted that all of its telecommunications units except XLSmart, contributed to earnings growth, alongside continued momentum from CelcomDigi. "Underlying net profit was impacted by one-off losses, without which it would have recorded a 7.4 per cent growth," it said. Chairman Tan Sri Shahril Ridza Ridzuan said the results demonstrate Axiata's ability to adapt, integrate and grow amid a volatile macroeconomic environment. "With a solid financial footing, strategic clarity and strong leadership across our markets, we are laying the groundwork for enduring relevance in Southeast and South Asia's digital future. "The board remains focused on ensuring governance strength, strategic discipline and long-term resilience as we continue to shape the next chapter of the group," he added. Axiata's basic earnings per share rose to 1.7 sen in 1QFY2025 from 0.7 sen in the corresponding quarter last year. Axiata said both of its jointly controlled entities are progressing well in their integration efforts, with synergy realisation on track. CelcomDigi is expected to generate RM700 million in annual run-rate synergies by 2027, while XLSmart is targeting annual pre-tax synergies of between US$300 million (RM1.27 billion) and US$400 million within the same period. The group is actively monetising its infrastructure assets, including Link Net and Edotco Group, as part of its strategy to attract capital investment and pare down debt. Axiata's frontier market operations - Robi Axiata Ltd, Dialog Axiata PLC and Smart Axiata - continued to demonstrate resilience, posting strong profit growth and positive cash flow despite ongoing market volatility.
Malaysiakini
28-05-2025
- Business
- Malaysiakini
Axiata's 1Q net profit more than doubles to RM159m
Axiata Group Bhd's net profit jumped to RM159.8 million in the first quarter ended March 31, 2025 (1Q 2025) from RM60.03 million in the same period last year. The increase was driven by foreign exchange gains, lower depreciation and amortisation, and higher contributions from CelcomDigi. In a filing with Bursa Malaysia, Axiata reported that...
