Latest news with #RM29.4bil
The Star
12-06-2025
- Business
- The Star
M'sia secures RM90bil approved investments in 1Q
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. KUALA LUMPUR: Malaysia has secured RM89.8bil in approved investments for the first quarter of financial year 2025 (1Q25), a steady 3.7% year-on-year increase despite a challenging global economic backdrop. In a statement yesterday, the Malaysian Investment Development Authority (Mida) said these investments, spread across 1,556 projects in manufacturing, services, and primary sectors, are set to generate over 33,300 new employment opportunities for Malaysians. 'The results reflect continued investor confidence in the country's clear policies and long-term fundamentals, bucking the trend of cautious international capital flows due to geopolitical and macroeconomic volatility, and the intensifying global competition for fresh investments. 'Foreign investments dominated the investment landscape, contributing RM60.4bil or 67.3% of total investments, while domestic investments accounted for RM29.4bil or 32.7%,' it said. Besides job creation, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said the increase in the Managerial, Technical, and Supervisory index to 46.3% from 44.2% in the same quarter last year reflects the country's success in creating higher-skilled, better-paying jobs. 'With a better integrated Asean economy, which we are working hard on as Asean chair, we are also paving the way for Malaysia's continued positioning as a manufacturing and services hub to this fast-growing 680-million strong region,' he said. He said the investment environment in 2025 is expected to remain challenging due to continued geopolitical and macroeconomic headwinds from the US-China trade war. 'Nonetheless, although major markets' protectionist policies and supply chain frictions continue to weigh in on companies' investment decisions, Malaysia's clear policies should be able to attract more investments from Asia's growing economy, which is expected to expand to about 42% of global gross domestic product by 2040,' he said. Besides bringing in good jobs and business opportunities, Mida chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the projects secured by Mida for 1Q25 supported the national effort to build a more diversified and resilient economy. 'To remain a choice location for high-performing companies, we will strengthen our local ecosystem as enablers and prepare our workforce to seize new job and leadership opportunities.' — Bernama
The Star
11-06-2025
- Business
- The Star
Malaysia records approved investments of US$21bil in 1Q
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.— MUHAMAD SHAHRIL ROSLI/The Star KUALA LUMPUR: Approved investments in Malaysia rose by 3.7% in the first quarter from a year earlier to RM89.8bil (US$21.2bil ), the Malaysian Investment Development Authority said on Wednesday. Foreign investments were RM60.4bil, or two-thirds of the total, and domestic investments accounted for RM29.4bil, the authority said in a statement. "The investment environment in 2025 is expected to remain challenging due to continued geopolitical and macroeconomic headwinds stemming from the U.S.-China trade war," Trade Minister Tengku Datuk Seri Zafrul Abdul Aziz said in the statement. Tengku Zafrul said that while protectionist policies and supply-chain frictions would affect corporate decision-making, he expected Malaysia to attract more investment, given that the broader Asian economy was increasing its share of global GDP. The top three sources of foreign investment in the quarter were Singapore with RM28.3bil, the United States at RM9.9bil and China at RM7.9bil. The services sector attracted RM57.8bil on the approved investments, the authority said. - Reuters
The Star
05-05-2025
- Business
- The Star
Banks stay strong on sustained loan growth
PETALING JAYA: Analysts are maintaining their positive stance on the banking sector following stable loan growth in March. The banking industry's total loan growth was sustained at 5.2% in both February and March. By segment, household and business loans expanded by 6% year-on-year (y-o-y) and 4.8% y-o-y, respectively, in March. In the first quarter of 2025 (1Q25), the banking industry's total loans increased by 1.1%, translating to an annualised loan growth rate of 4.3% for 2025. 'This is slightly below our projection of between 4.5% and 5.5% for loan growth in 2025. 'The marginal slippage was mainly due to the weak loan expansion of only 0.1% month-on-month (m-o-m) in February, but this improved to 0.6% m-o-m in March,' CGS International (CGSI) Research said. The research house maintained its 'overweight' rating on Malaysian banks, premised on potential sector rerating catalysts of further write-backs in management outlay and an uptrend in dividend payout ratios for most banks. 'The dividend yield for the sector is also attractive at 5.8% for 2025. 'Downside risks include a material deterioration in asset quality and loan growth,' it said, adding that its top pick for the sector is Hong Leong Bank Bhd (HLBB). Meanwhile, banks' total provisions declined by RM517.2mil, or 1.7% quarter-on-quarter in 1Q25, from RM29.9bil at end-December last year to RM29.4bil at end-March. 'As such, we think that the banking sector's loan loss provisioning (LLP) in 1Q25 would likely remain benign, not far off from the levels of between RM850mil and RM920mil in the preceding three quarters (from 2Q24 to 4Q24). 'Based on this, banks' LLP could have declined by more than 20% in 1Q25, assuming banks' total LLP falls in the range of RM950mil to RM1bil in 1Q25,' CGSI Research added. Similarly, Maybank Investment Bank Research (Maybank IB) has kept its 'positive' stance on the sector, with its three top picks being Public Bank Bhd , HLBB and AMMB Holdings Bhd . 'Public Bank is well-managed and its RM1.1bil management overlays should keep credit costs low. 'The acquisition of LPI Capital Bhd enhances non-interest income and we think that concerns over a share overhang are overblown,' the research house noted. Additionally, it said HLBB offers strong asset quality, high loan loss coverage and a very liquid balance sheet, while AMMB's focus on proactive funding cost management and business banking operations should contribute to growth momentum, as it strives for higher dividend payouts. Moving forward, Maybank IB has lowered its industry loan growth forecast downward to 4.8% from 5.5%, on the back of slower gross domestic product growth this year amid external economic volatility. Meanwhile, Kenanga Research maintained that the banking sector continues to be defensive amid unfavourable foreign trade policies, driven by supportive appetite for loans and generally stable economic pillars. Its top pick for 2Q25 is AMMB, for its efforts in optimising its return on equity (ROE) and increasing payouts to drive dividend yields above the current 5%. The research house also likes Malayan Banking Bhd for remaining the market share leader while still expanding at the expense of larger peers. It recently upgraded CIMB Group Holdings Bhd, which it believes is now trading at more palatable levels for accumulation, with ROEs positioned to breach 12% and yields at a more attractive 6%.
