Empire Premium Food Bhd , the operator of the Empire Sushi chain , has launched its Main Market IPO , aiming to raise RM254 million to fund aggressive expansion across Malaysia. IPO Details and Valuation The offering is indicatively priced at 70 sen per share , implying a market capitalisation of RM770 million and a valuation of 20.3 times FY2025 earnings . RM152.6 million will go to the company RM96.3 million will be raised by existing shareholders (founders) Listing is scheduled for April 17 , with pricing on April 7 For FY2025, the group reported: Net profit: RM37.9 million Revenue: RM235.6 million Expansion Strategy Drives Growth Story A key IPO driver is Empire’s aggressive outlet expansion plan . The group aims to open 56 new outlets over the next three years , focusing on high-traffic locations such as: Shopping malls Airports Transit hubs More than 51% of IPO proceed...
Japan’s latest wage negotiations delivered another strong outcome, with pay increases exceeding 5% for a third consecutive year, reinforcing expectations that the central bank may proceed with further policy tightening.
Strong Wage Momentum Continues
Japan’s largest labour federation, Rengo, reported:
- Average wage increase: 5.26%
- Base pay growth: 3.85%
While slightly below last year’s initial 5.46%, the result still signals sustained wage momentum, a key condition for Japan’s long-awaited demand-driven inflation cycle.
BOJ Rate Hike Expectations Firm
The strong wage data supports the Bank of Japan’s (BOJ) path toward policy normalisation.
- Markets are pricing a ~64% probability of a rate hike in April
- The BOJ has indicated it may act if inflation trends remain intact despite external shocks
This keeps Japan on track for a gradual tightening cycle, after years of ultra-loose monetary policy.
Inflation Dynamics Backed by Wage Growth
Sustained wage increases are critical because they:
- Support consumer spending
- Drive domestic inflation sustainably
- Reduce reliance on imported inflation (e.g., energy)
Economists note that companies’ ability to absorb higher labour costs, even amid rising energy prices, strengthens the case for continued inflation.
Risks from Middle East Conflict
However, external risks are rising:
- Over 1,500 Japanese firms in the Middle East may face disruptions
- Higher oil prices could squeeze corporate margins
- Prolonged conflict may weigh on future wage negotiations
While current wage outcomes remain intact, next year’s outlook could be more uncertain.
Focus Shifts to SMEs
A key uncertainty lies with small and mid-sized enterprises (SMEs):
- Wage negotiations for SMEs are still ongoing
- These firms are more vulnerable to cost pressures
The extent to which wage gains spread across the broader economy will be crucial for policy decisions.
Outlook: Policy Normalisation Within Reach
The latest data supports the BOJ’s baseline scenario of stable wage-driven inflation, potentially paving the way for:
- Rate hikes as early as April
- Gradual exit from ultra-loose monetary policy
However, geopolitical risks remain a key variable.
Investor Takeaways
- Japan has achieved >5% wage growth for the third straight year, supporting inflation sustainability.
- Markets are increasingly pricing a BOJ rate hike in the near term.
- Strong wages reinforce domestic demand and policy normalisation.
- External risks (oil prices, Middle East conflict) could impact corporate margins and future wage cycles.
- Watch SME wage trends, which will determine the breadth and durability of inflation.
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