Latest news with #RM369mil
The Star
6 hours ago
- Business
- The Star
Bursa sees growth in non-trading revenue
Bursa Malaysia Bhd chief executive officer Datuk Fad'l Mohamed. KUALA LUMPUR: Bursa Malaysia will continue to focus on its role as the key fundraising platform while serving as an enabler for the country's economic growth. Chief executive officer Datuk Fad'l Mohamed said key drivers would include strong cash position by fund managers looking for yield and attractive FBM KLCI valuation. The consensus expectation for FBM KLCI 2025 level is 1,664 versus the current levels of 1,530. According to him, the stock exchange has set a double-digit growth target for the next three years for the non-trading revenue segment. The segment registered an increase of 7.6% year-on-year on the back of higher contributions across all segments. 'Except for our Securities Market, all business segments saw revenue in the first half of 2025 (1H25) rise year on-year. 'This reflects the importance of the exchange's strategy to diversify revenue lines by enhancing our offerings across multiple asset classes,' he told a media briefing on the first-half financial results here yesterday. He added that Bursa would continue to maintain its guidance for the second half of the year, supported by a comeback of trading activities since there is clear and strong local liquidity from investors, particularly local investors. The local bourse has kept its 2025 pre-tax profit target of between RM369mil and RM408mil. 'We're maintaining our guidance. Ultimately, it ties back to Malaysia's economic trajectory, with gross domestic product growth for 2025 projected between 4% and 4.8%,' said Fad'l. He pointed out that local fund managers are holding record cash levels at 11.5% as of May – the highest since January 2024. 'We hope to see a greater level of trading activities once those cash are deployed. 'And I think also with the pre-emptive move undertaken by Bank Negara to reduce interest rates by 25 basis points, will bring in additional liquidity to the financial system,' he explained. He added that the initial public offering (IPO) activities are also on track, as market capitalisation more than doubled this time around compared with a year ago. 'The target is still 60 IPO's this year with RM40.2bil in total IPO market capitalisation,' Fad'l said. He noted other positive factors include government bond yields and the ringgit that had remained resilient so far. Bursa saw its net profit fall 29.07% to RM56.51mil in the second quarter ended June 30 from RM80.45mil a year ago. For 1H25, net profit declined 19.29% to RM125.48mil from RM155.48mil a year ago while revenue dropped 7.8% to RM356.96mil. 'The total operating revenue decreased 8.1% due to the lower average daily value of trades recorded, as security trading remained the largest contributor to the total at 42%. 'Derivatives trading revenue, which represents 16% of the group's total operating revenue in the first half of 2025, saw a notable increase of 8.1% year-on-year,' he said. He added that this was mainly due to the higher average daily contract of the crude palm oil (CPO) futures contracts, as there was higher volatility of the underlying CPO prices during this period. Fad'l said at the same time, operating expenses had increased 6.6% to RM189.3mil primarily due to higher staff costs and technology related expenses to support product expansion across asset classes, and capacity building, as well as an increase in administrative and building management expenses. Bursa declared a dividend of 14 sen per share for the first half, amounting to RM113.3mil corresponding to a dividend payout ratio of 90.3%.
The Star
03-06-2025
- Health
- The Star
Govt must ban vapes to avoid burdening public healthcare system, says Segamat MP
JOHOR BARU: Firm action has to be taken by the government to completely ban vape usage, distribution and sale to avoid heavily burdening the public healthcare system, says a Johor lawmaker. Segamat MP R. Yuneswaran highlighted the economic burden on the healthcare system, where the treatment for a single Vaping Product Use-Associated Lung Injury (Evali) patient could cost up to RM150,000. 'Without effective controls, treatment costs for vape-related diseases could rise to RM369mil annually by 2030, nearly matching the government's projected vape tax revenue of RM500mil per year. 'This shows any economic benefit from the vape industry does not justify the healthcare costs,' he said in a statement Tuesday (June 3). He pointed out that several state governments such as Johor, Kedah and Terengganu have stopped renewing business licences for vape sales, effectively banning the product in their jurisdictions. Yuneswaran also criticised the federal government's move in 2023 to exempt vape nicotine liquids from the Poisons Act 1952, which allowed the unregulated sale of vape products. 'This has caused the vape market to grow rapidly, making it even harder to control, especially among youths,' he said. He also lamented the removal of the Generational End Game (GEG) clause from the recently passed Control of Smoking Products for Public Health Act 2023. The clause would have banned the sale of nicotine products to anyone born after 2007. 'That was a missed opportunity because without GEG and comprehensive controls, efforts to curb nicotine addiction among youths will be even more difficult,' he said. On Monday (June 2), the Health Ministry issued a statement saying that e-cigarette liquids can be legally sold in Malaysia, but they are subject to strict regulations aimed at protecting public health. The ministry was reportedly responding to recent media reports about a company that had been granted an interim manufacturing licence to produce e-cigarette devices using nicotine-infused liquids or gels. The ministry said decisions related to the importation, manufacturing and distribution of such liquids are 'collectively made by various government agencies'. It clarified that the issuance of manufacturing licences falls under the purview of the Investment, Trade and Industry Ministry via the Malaysian Investment Development Authority, as provided for under the Industrial Coordination Act.
