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New Straits Times
a day ago
- Business
- New Straits Times
Tenaganita commends RM1.55 million payout order to Bangladeshi workers
KUALA LUMPUR: Human rights organisation Tenaganita has commended a recent decision by the Kuala Lumpur Labour Department, which ordered Meranti Binamas Sdn Bhd to pay nearly RM1.55 million in unpaid wages and related violations to 74 Bangladeshi migrant workers. The payment, totaling RM1,548,000, follows claims filed by the workers through Tenaganita for unpaid wages and related labour violations. Tenaganita executive director Glorene A Das said the latest development represents a significant step forward in the fight for justice and dignity for migrant workers in Malaysia. "The decision affirms that employers must be held accountable for their obligations and that the rights of workers, particularly migrant workers who are often silenced and made invisibilise, must be asserted without compromise," she said in a statement. The case saw the workers, including lead claimant Md Kabir Hossain, pay exorbitant recruitment fees of up to RM25,000 to secure jobs promised under official permits. However, upon arrival in Malaysia, they were left without employment, wages, or adequate living conditions, exposed to legal risks and mental distress. The workers lived for months in overcrowded and unsanitary hostels in Pudu, without income or support, some even contemplating suicide due to the desperation they endured. The case was led by Tenaganita's consultant and lead case officer Abdul Aziz bin Ismail. Aziz, in response to the decision said; "It has been a long and winding road, but we finally have a decision and an order from the Labour Department. This is a significant achievement for the workers and for Tenaganita. It sets yet another precedent that even large, seemingly untouchable companies can be held accountable when workers stand united and demand justice." By ordering Meranti Binamas Sdn Bhd to pay the amounts due, the department has sent a clear message that employers cannot exploit workers with impunity." Such a case was not isolated. "Tenaganita has documented hundreds of similar cases involving fraud, deception, and labour rights violations under the pretense of legal recruitment. We raised these issues in our International Migrants Day 2024 statement, highlighting the systemic failures that have plagued Malaysia's labour migration governance. "Tenaganita continues to urge the government to ensure that the payment is made promptly and in full, and that systemic reform is undertaken to prevent similar abuses in the future. We also call on the authorities to take proactive steps to identify other affected workers and ensure they too have access to redress.
Business Times
a day ago
- Business
- Business Times
South Korea's Cuckoo set for Malaysia debut after scaling down IPO
[SEOUL] A subsidiary of South Korean home-appliance maker Cuckoo Holdings is set to go public in Malaysia after a scaled-down offering that is expected to raise RM395 million (S$119.4 million). Cuckoo International (Mal) will begin trading on June 24, two months after postponing its initial public offering (IPO) due to market volatility. The final amount raised may vary as the company is waiting for approval from the bourse to reduce its public shareholding spread to 20 per cent from the current 25 per cent. Its revised offer price of RM1.08 per share, from RM1.29 previously, will value the company at RM1.55 billion. The company's debut will be closely watched for clues on demand for consumption stocks given the tepid retail subscription rate for Cuckoo. Chief executive officer Hoe Kian Choon is confident that its prospects and sizeable market share in the local home-appliance rental segment will draw investors. 'A lot of our investors were happy' that the offering was put off to ride out the volatility sparked by the US tariff announcement in April, Hoe said. 'None of our cornerstone investors left.' While market uncertainty remains high, the situation is 'more stable now,' allowing the company to revive its listing plans, he added. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Hoe, who founded the local company in 2014 as a distributor of Cuckoo products, has grown the business on the strength of its water purifier rental segment. Cuckoo Malaysia also co-creates some new products with other brands for the domestic market. The company's promising outlook prompted its Korean supplier to take up a majority stake in the Malaysian firm. Hoe said that Cuckoo Malaysia has secured nearly a fifth of the local appliance rental market and opportunities to cross-sell products among its one million active-subscriber base would help the company achieve double-digit revenue growth over the next few years. Cuckoo Malaysia's profit after tax for the first nine months of 2024 jumped 75 per cent from the previous corresponding period to RM104 million. Revenue rose 13 per cent. 'Malaysia's market is growing not only in number of households but also in household debt,' Hoe noted. 'Malaysians are looking for the best way to actually maximise their value for money. Rental will be one of the ways for them to enjoy a standard of living.' Korean rival Coway's wholly-owned local unit currently has market leadership in the rental space. Hoe, a former Coway executive, aims to catch up with other Cuckoo offerings including mattresses, massage chairs and air purifiers. Consumer brands that are centred on mass-market affordability have done well in Malaysia. Two of the country's biggest IPOs in the past year were retail chains that catered to customers looking to stretch the dollar – mini-mart operator 99 Speed Mart Retail Holdings and dollar-store chain Eco-Shop Marketing. Hoe said that Cuckoo's business fundamentals remain sound given little exposure to external shocks. While it is vulnerable to a stronger US currency – the company buys stock from its Korean parent in dollars – strong recurring income from its rental segment helps ease the pressure. Cuckoo will use proceeds from the IPO to open new concept stores that will allow cash-and-carry purchases and expand its business in Singapore. BLOOMBERG
Business Times
2 days ago
- Business
- Business Times
Korea's Cuckoo set for Malaysia debut after scaling down IPO
(Bloomberg) – A subsidiary of South Korean home-appliance maker Cuckoo Holdings is set to go public in Malaysia after a scaled-down offering that's expected to raise RM395 million (S$119.4 million). Cuckoo International (Mal) will begin trading on June 24, two months after postponing its initial public offering due to market volatility. The final amount raised may vary as the company is waiting for approval from the bourse to reduce its public shareholding spread to 20 per cent from the current 25 per cent. Its revised offer price of RM1.08 per share, from RM1.29 previously, will value the company at RM1.55 billion. The company's debut will be closely watched for clues on demand for consumption stocks given the tepid retail subscription rate for Cuckoo. Chief executive officer Hoe Kian Choon is confident that its prospects and sizeable market share in the local home-appliance rental segment will draw investors. 'A lot of our investors were happy' that the offering was put off to ride out the volatility sparked by the US tariff announcement in April, Hoe said in an interview. 'None of our cornerstone investors left.' While market uncertainty remains high, the situation is 'more stable now,' allowing the company to revive its listing plans, he said. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Hoe, who founded the local company in 2014 as a distributor of Cuckoo products, has grown the business on the strength of its water purifier rental segment. Cuckoo Malaysia also co-creates some new products with other brands for the domestic market. The company's promising outlook prompted its Korean supplier to take up a majority stake in the Malaysian firm. Hoe said Cuckoo Malaysia has secured nearly a fifth of the local appliance rental market and opportunities to cross-sell products among its one million active-subscriber base would help the company achieve double-digit revenue growth over the next few years. Cuckoo Malaysia's profit after tax for the first nine months of 2024 jumped 75 per cent from the previous corresponding period to RM104 million. Revenue rose 13 per cent. 'Malaysia's market is growing not only in number of households but also in household debt,' Hoe said. 'Malaysians are looking for the best way to actually maximize their value for money. Rental will be one of the ways for them to enjoy a standard of living.' Korean rival Coway's wholly-owned local unit currently has market leadership in the rental space. Hoe, a former Coway executive, aims to catch up with other Cuckoo offerings including mattresses, massage chairs and air purifiers. Consumer brands that are centred on mass-market affordability have done well in Malaysia. Two of the country's biggest IPOs in the past year were retail chains that catered to customers looking to stretch the dollar – mini-mart operator 99 Speed Mart Retail Holdings and dollar-store chain Eco-Shop Marketing. Hoe said Cuckoo's business fundamentals remain sound given little exposure to external shocks. While it is vulnerable to a stronger US currency – the company buys stock from its Korean parent in dollars – strong recurring income from its rental segment helps ease the pressure. Cuckoo will use proceeds from the IPO to open new concept stores that will allow cash-and-carry purchases and expand its business in Singapore. BLOOMBERG
Malaysian Reserve
11-06-2025
- Business
- Malaysian Reserve
Cuckoo Malaysia slashes IPO price to RM1.08, trims fundraising to RM154.7m
Cuckoo International (MAL) Bhd (Cuckoo Malaysia) has lowered its IPO price to RM1.08 per share for both retail and institutional investors, down from RM1.29, following the completion of its book building process. The company will refund 21 sen per share to successful retail applicants. The revised pricing reduces its IPO proceeds to RM154.74 million – RM30.08 million less than the earlier target – based on the unchanged issuance of 143.28 million shares. The South Korean-backed home appliance company earlier delayed its Bursa Malaysia Main Market debut from April 30 to June 24 due to global market volatility. With the new IPO price, Cuckoo Malaysia's market capitalisation stands at RM1.55 billion, and its trailing PER drops to 17.7 times from 21.2 times previously. The IPO subscription period closed on June 5. Cuckoo Malaysia intends to allocate 56.7% of its IPO proceeds to fund product purchases for expanding its rental business. Additionally, 21.6% will go toward repaying bank borrowings, 2.7% for opening 'Brandshops', 3.0% for IT system upgrades, 5.4% for the expansion of its Singapore unit, Cuckoo International (S) Pte Ltd, and the balance for listing-related expenses.
New Straits Times
24-04-2025
- Automotive
- New Straits Times
Petronas Dagangan to branch out offerings, explore low-carbon solutions
KUALA LUMPUR: Petronas Dagangan Bhd (PetDagang) plans to diversify its offerings and explore low-carbon solutions, aligning with the broader goals of the National Energy Transition Roadmap (NETR). The company will also sharpen its focus on long-term shifts in consumer behaviour, including increased mobility, evolving and more transient commuter patterns, as well as the growing demand for convenient lifestyle. For the financial year ended Dec 31, 2024, PetDagang reached its highest-ever sales volume of 16.8 billion litres, reinforcing its market leadership in both retail and commercial segments. Revenue for the year totalled RM37.95 billion, driven by higher sales volumes, particularly from Mogas and Jet A-1, despite a lower average selling price. Operating profit increased by 15 per cent to RM1.55 billion, supported by higher gross profit across all segments. This was partly offset by increased expenditure linked to business growth. Its pre-tax profit improved 15 per cent to RM1.53 billion, while net profit rose to a post-pandemic record of RM1.12 billion, marking the first time the company surpassed the RM1 billion mark since the pandemic. PetDagang managing director and chief executive officer Azrul Osman Rani said the past year served as a reminder that staying grounded in its purpose, customers and execution is what drives the company forward. "As needs evolve and the landscape shifts, we are moving with focus and intent, while staying true to what makes us different - the ability to create simpler, better experiences in everyday life," he said in a statement in conjunction with the company's 43rd annual general meeting (AGM) here today. PetDagang delivered a solid performance across its business segments, achieving key milestones in both financial and operational outcomes. In its retail business, the company achieved its highest-ever sales volume while continuing to enhance customer experience and safety across the network. The commercial business recorded strong growth by maximising returns from high-value segments, with volume increasing by nine percent in aviation and 19 percent in diesel. The LPG business reaffirmed its position as Malaysia's leading LPG retailer, achieving its highest volume since 2016 and securing over 50 new commercial customers during the year. In the lubricants business, PetDagang reinforced its market leadership through strong partnerships and posted a nine per cent volume growth, surpassing industry benchmarks. Mesra Retail and Café Sdn Bhd (Mesra) maintained its momentum as a retail and lifestyle hub, with chargeable sales reaching a record high for the third consecutive year. Setel achieved an all-time high in gross merchandise value, continuing to deliver a seamless and rewarding customer experience.
