Latest news with #SimeDarby
The Star
21-07-2025
- Automotive
- The Star
Competition in EV space to intensify on policy shifts
PETALING JAYA: The automotive industry is approaching a structural inflection point with key policy shifts expected within the next six months, amid intensifying competition in the electric vehicle (EV) space, according to a research house. The government will need to decide by year-end whether to end the completely-built-up EV import tax exemptions and Approved Permit regime, said BIMB Securities Research. The decision will shape the competitive dynamics of the local EV market, either accelerating liberalisation and inviting more aggressive price competition or maintaining a controlled environment that protects local players. Those with strong exposure to electrification, efficient sourcing structures, and high local content will be best positioned to navigate the transition, said BIMB Research. While short-term demand risks persist, particularly from policy uncertainty and price volatility, credible reform execution could unlock medium-term growth and margin stability. It retained its 'neutral' stand on the sector with a positive bias, favouring original equipment manufacturers aligned with themes of affordability, EV adoption and localisation. It reiterated its 'hold' call on Sime Darby Bhd (with a target price of RM1.76 a share) and MBM Resources Bhd (RM4.30 a share). It kept its 'sell' on Bermaz Auto Bhd (65 sen a share). Despite all companies under its coverage having EV exposure, the research house liked Sime Darby for its robust EV portfolio (BYD, BMW) and resilient internal combustion engine (ICE) volumes via Perodua. This balanced mix would ensure defensive earnings amid market transition and positions Sime Darby as a structural winner in both the ICE and EV spaces. BYD slashed the price of its 2025 Atto 3 Ultra by RM44,000 to RM123,800, with a special launch offer of RM118,800 for early buyers, placing it in direct price parity with Proton's Emas 7 Premium (RM119,800). This move has reignited speculation of an impending EV price war. It favoured controlled growth, as it aligned with the government's clear policy direction. The extension of tax incentives for completely-knocked-down EV until end-2027 reinforced Malaysia's commitment to fostering local EV production, supply chain localisation and long-term industrial development, it said.
Free Malaysia Today
15-07-2025
- Business
- Free Malaysia Today
Ex-Sime Darby CEO, 4 others to pay group RM350mil for losses
The High Court entered judgment against Zubair @ Zubir Murshid, Shukri Baharom, Rahim Ismail, Kadir Alias, and Zaki Othman in connection with losses in three projects undertaken in Qatar. KUALA LUMPUR : Sime Darby Bhd's former group chief executive Zubair @ Zubir Murshid and four other former senior executives have been ordered to repay the conglomerate approximately RM350 million as restitution for wrongful payments to consultants in relation to three projects in Qatar. Justice Atan Mustaffa Yussof Ahmad issued the order following an assessment of damages, after the five defendants admitted their liability in the High Court here 11 years ago, according to The Edge. Atan said that admission covered the underlying facts giving rise to the claims, the defendants' breaches of duties, and the various other wrongful acts listed in the pleadings. 'The admission of liability for 'wrongful payments' to consultants carries profound legal consequences. 'Where a defendant admits that payments were 'wrongfully' made, this constitutes an admission that such payments should not have been made and were causally connected to the defendant's breach of duty,' the judge said when delivering his broad grounds of judgment. The other defendants liable under the judgment include: Shukri Baharom, a former executive vice-president of the group's energy and utilities (E&U) division; Rahim Ismail, a former chief financial officer of the division; Kadir Alias, a former head of the E&U's oil and gas business unit; and Zaki Othman, former senior general manager of Sime Darby Engineering Sdn Bhd. The five men are jointly and severally liable to pay the group 67.811 million Qatari Riyal (RM79.235 million), US$2.049 million (RM8.714 million), and RM1.725 million. These sums represent losses incurred by the group arising from three projects under the group's E&U division which experienced massive cost overruns. The suit was brought in 2010 by Sime Darby and four of its subsidiaries – Sime Darby Engineering Sdn Bhd, Sime Darby Energy Sdn Bhd, Sime Darby Marine Sdn Bhd, and Sime Darby Marine (Hong Kong) Pte Ltd. The claims concerned losses suffered by the group's Qatar Petroleum (QP) project, its Maersk Oil Qatar project (MOQ) and Project Marine, involving the construction of marine vessels. Atan said the assessment of damages took place after an interlocutory consent judgment was entered on June 13, 2014. The judge said that during the assessment proceedings, defence counsel had attempted to venture into the area of liability, but were precluded from doing so by the interlocutory consent judgment previously entered. He also dismissed various other legal issues raised by the defendants during the proceedings. Counsels Alexius Lee and Rhosvin Singh appeared for Sime Darby and its subsidiaries, while Shaarvin Raj and Craig Ho appeared for Zubir. Lawyer Ranjinny Andy appeared for Shukri, Jasmin Raj represented Rahim, and Harvinder Singh Sidhu appeared for Kadir and Zaki.
The Star
10-07-2025
- Automotive
- The Star
BIMB Securities remains 'neutral' on EV adoption outlook
PETALING JAYA: The future of the electric vehicles (EV) market in the country looks promising as structural incentives and increasing ESG awareness provide a supportive backdrop for long-term electrification. But underinvestment in distribution infrastructure presents a structural bottleneck, said BIMB Securities Research. The absence of proactive upgrades in substations and feeder lines, particularly in high-density urban and legacy residential areas, continue to constrain home-charging scalability. Until grid resilience improves materially, EV uptake may remain biased towards landed homes or public charging networks, delaying broader adoption. In this context, BIMB said, it sees selective upside for contractors exposed to grid enhancement projects and power distribution assets, while turning cautious on EV original equipment manufacturers and charging infrastructure players with concentrated exposure to the residential segment. It retains its 'neutral' stance on both the automotive sector and Malaysia's EV adoption outlook. Within its coverage, it maintains 'hold' calls for Sime Darby Bhd and MBM Resources Bhd , while reiterating its 'sell' call on Bermaz Auto Bhd . Its target price for the three stocks are RM1.76, RM4.30 and 65 sen a share respectively. Despite offering EV models across the board, it continues to favour Sime Darby for its balanced exposure, anchored by strong EV traction from BYD and BMW, and resilient Internal Combustion Engine volumes via Perodua. This diversified product mix enables Sime Darby to ride both ends of the adoption curve, supporting earnings stability as the market transitions. In contrast, Bermaz Auto's narrower model range and higher premium bias limit its relative defensiveness in a more price-sensitive and infrastructure-constrained EV landscape. To ensure that EV adoption can scale sustainably, Malaysia must undertake several key actions, said BIMB. First, a comprehensive mapping and stress-testing exercise should be conducted to identify weak substations and prioritise them for upgrades. Secondly, it suggested, public-private funding mechanisms should be mobilised, particularly involving government-linked companies and institutional investors, to finance grid modernisation efforts. Thirdly, the development of a domestic battery recycling industry should be incentivised to manage end-of-life battery waste and enable second-life usage. Finally, the adoption of smart load management technologies should be encouraged, particularly for home and commercial EV chargers. These systems can balance power draw across time and location, reducing peak stress on the grid. It adds that Malaysia's current electricity generation capacity stands at 27,288MW, and is projected to rise to 40,000MW by 2029. However, generation is not the primary bottleneck, the real pressure point lies in the distribution segment. Substations and feeder lines, particularly in mature urban areas, are not equipped to support EV charging loads ranging from 11–20kW per household. The issue becomes more acute when multiple households charge their vehicles concurrently, resulting in localised demand spikes that risk overloading transformers and causing power disruptions.
The Star
25-06-2025
- Automotive
- The Star
Sime Darby stays bullish on China auto market
PETALING JAYA: Despite the turmoil in international trade, Sime Darby Bhd remains bullish on China where it is a sizeable dealer of luxury cars from BMW. The group recently posted disappointing results, with particular weakness observed in its China operations. To mitigate ongoing pressures, Sime Darby is actively implementing cost-saving measures, including the closure of underperforming outlets and a more targeted brand focus, Kenanga Research said in a report following a recent visit to Shanghai to conduct on-the-ground surveys to gain direct insight into the state of the automobile market there. 'From Sime Darby's perspective, they are long-term bullish on the China market with the China-for-China strategy led by the new BMW Neue Klasse electric vehicle (EV) that is set for production next year with special designs and functions for China, as well as cost optimisation strategy in place which includes closure of non-performing dealerships, special rebates and a lower volume target from principal BMW,' the research house said. Kenanga Research said, overall, based on the small sample of one BMW dealership it visited, which was bustling, and from conversations with Shanghai drivers, it appears that market challenges remain. 'The BYD price discounts that we read about in the news are more pertinent to that brand. BMW, which is positioned as a maker of internal combustion engine cars, is being pitted against a sea of EV choices, where support for EVs from the Chinese government remains strong.' The research house said based on its conversations, year-to-date discounts remain steep, suggesting that the auto market in China is not out of the woods yet. This supports its continued contrarian 'sell' call on Sime Darby at the moment. Kenanga Research has a RM1.65 target price on the stock, one sen higher than the RM1.64 it was trading at the time of writing. It noted the re-emergence of new rounds of deep discounts, with BYD recently slashing its prices by 35% and other makers expected to follow suit. According to the research house, Sime Darby guided that the heavy discounts and weak domestic demand could weigh on the automotive market in China. However, it plans to launch several new models across Malaysia, Australia and China to support sales and refresh its product lineup. Currently, Sime Darby's China automotive business contributes around 22% of total group revenue, with a net loss of RM10mil for the first half of its financial year 2025 (FY25). This came as the group fell into losses for its recent second quarter of FY25 despite staging a recovery in the first quarter. 'We believe that the price-discount pressure, whether in China or Malaysia , have become more intense with the influx of China-made cars due to aggressive pricing or discounts that render other brands' pricing unattractive. 'Locally, we believe the RM100,000 floor price of imported EVs has been a blessing in disguise for the national marques, especially Perodua, which looks to be insulated from the competition so far. 'The expected ending of incentives for imported completely-built-up EVs into Malaysia by the end of this year may alleviate some of the intense competition in the non-nationals space.' However, Chinese brands like Chery are planning to stay, with a RM2.2bil investment in a Smart Auto Industrial Park in Hulu Selangor, which could pose long-term competition in the non-nationals space. To stay competitive, more local partnerships with Chinese car brands may emerge in the coming years.
The Star
22-06-2025
- Business
- The Star
Hire local TVET grads first before foreign workers, Johari tells plantations
KUALA KANGSAR: The Plantation and Commodities Ministry has mandated that plantation industry players must hire graduates from Technical and Vocational Education and Training (TVET) programmes before filling the same jobs with foreign workers. Minister Datuk Seri Johari Abdul Ghani said industry players must provide proof of their efforts to hire TVET graduates to the ministry before they are permitted to recruit foreign workers. "We are currently facing a situation where many industries are unwilling to hire graduates who have completed their training. They are reluctant to provide these students with the opportunity to gain practical experience because they prefer to take the easier route. "Although the government has approved foreign workers for the plantation sector, I will not allow it unless industry players contribute to our local youth," he said when met at the Dialog@MPIC session here on Sunday (June 22). Johari said the ministry will train about 250 TVET students annually in the plantation sector, and they will be placed in the industry based on the specific needs of the industry players. He said industry players must train these students until they become skilled and future specialists in the plantation sector. "I want to commend Sime Darby and FGV for their dedicated initiatives to provide accommodation and decent salaries for young individuals who did not attend university. These youths can earn a salary of RM2,500 if they develop their skills and complete a TVET Level 3 qualification, and in another eight months, they could earn up to RM3,500. "…we must support these students in developing their careers. Otherwise, we're abandoning these youths, and that's not what we promised. Some industry players even refuse to hire them, and that's why I want to enforce this prerequisite. Currently, we depend on nearly 260,000 foreign workers to manage our plantations," he said. Johari said the sector is vital as it represents the world's third-largest export industry, and within the national commodity sector, Malaysia exports approximately RM168 billion. He emphasised the need for industry players to take responsibility for mentoring and supporting these young talents. - Bernama
