MONEY MASTER

Malaysia’s real estate investment trust (REIT) sector may  avoid a tax shock , with  Kenanga Investment Bank  expecting the  10% withholding tax on REIT dividends to be fully renewed , despite the concession expiring at end-2025. Why Renewal Looks Likely Kenanga believes the government has  little incentive to change the current structure , given the limited fiscal benefit. Annual REIT net earnings:  ~ RM2.8bn Contribution to  2026 estimated tax revenue:   <0.2% Any policy shift would offer  immaterial fiscal upside , but  meaningful downside  to the sector Key point:   The cost to REIT valuations outweighs the tax gain to the government. What’s at Stake for Investors The concessionary  10% withholding tax , in place since 2016 and renewed annually, has been a key pillar supporting REIT yields. Investors already face an  additional 2% dividend tax  on income above  RM100,000 Effective dividend tax for lar...

Strong H1 Performance The Employees Provident Fund (EPF) posted RM38.92 billion in investment returns for the first half of 2025, up 3% from RM37.80 billion a year ago. Q2 Driven by Equities For the second quarter alone, returns jumped 22% year-on-year to RM20.61 billion, compared with RM16.91 billion in Q2 2024. Equities led the performance, contributing 67% of quarterly returns. Fixed income remained the single largest contributor, delivering RM13.77 billion, or 35% of Q2’s total. Balanced Portfolio Pays Off EPF credited its diversified strategy — balancing growth-focused equity exposure with the stability of fixed income — for sustaining strong outcomes for members. Track Record of Competitive Dividends In 2024, EPF declared a dividend of 6.30%, one of its highest on record and well above prevailing fixed deposit rates of 2%–3.4%.

Two telco giants—TIME dotCom and Maxis—may reward investors with special dividends in FY2025 , driven by lower capital expenditure needs and a more disciplined approach to balance sheet optimisation. Key Highlights 1. Dividend Prospects Brighten for TIME and Maxis TIME dotCom (KL: TIMECOM)  and  Maxis (KL: MAXIS)  are expected to maintain or improve their dividend profiles in FY2025. Lower capex intensity and a renewed focus on capital efficiency are paving the way for potential  special dividend distributions . Neutral sector rating  but views fixed-line operators like TIME dotCom more favorably, as they are insulated from the near-term volatility tied to mobile 5G network policy shifts. 2. 5G Dual Network Transition: A Sector Overhang The eventual alignment of mobile network operators (MNOs) to either  Digital Nasional Berhad (DNB)  or the upcoming  Second Network (NW2)  will heavily influence: Future earnings Capital expenditure trajectori...

Key Takeaway: Hextar Global's 3QFY2024 net profit surged 28% , driven by growth in its specialty-chemicals segment and expectations of rising herbicide prices . Hextar Global Bhd posted a net profit of RM19.7 million for 3QFY2024, up from RM15.39 million in the same quarter last year. Revenue climbed 38.27% to RM252.96 million , boosted by the specialty-chemicals and newly acquired fruits segments. Highlights: Segment Performance: Specialty-Chemicals: Key driver of growth, offsetting weaker margins in agriculture. Agriculture Segment: Anticipates stabilization and positive upward price movement in herbicides soon. Fruits Segment: Contributed RM154.1 million during the durian season. Dividend Declaration: Hextar proposed a second interim single-tier dividend of 0.8 sen per share . Year-to-Date Growth: Net profit for the first nine months surged 46.97% to RM51.01 million . Revenue jumped 53.39% to RM698.19 million compared to the previous year. Expansion Plans: Strengthenin...

As Malaysia prepares to introduce a 2% tax on individual shareholders receiving over RM100,000 in annual dividends , experts suggest that family-controlled companies with substantial retained profits might issue special dividends before the tax takes effect in 2025. The new tax was part of the recent Budget 2025 announcement aimed at high-net-worth shareholders, leading many companies to consider pre-emptive payouts. According to Choo Swee Kee of TA Investment Management, paying dividends before the tax applies would allow companies to avoid an additional layer of taxation on earnings already taxed at the corporate level. Some analysts argue the tax ensures tax equity , while others see it as an extra burden on earnings. The impact of this tax may be muted overall, affecting only major individual shareholders. For high-net-worth investors, strategies such as holding company structures may provide avenues to minimize tax exposure. For example, dividends received by family holding com...

EPF announces 6.35% dividend for financial year 2013 and it was the highest in the last decade. Below is some news snippet from The Star. KUALA LUMPUR: The Employees Provident Fund (EPF) announced a 6.35% dividend for 2013, higher than the 6.15% declared for 2012. EPF chairman Tan Sri Samsudin Osman said in a statement on Sunday that this would involve the highest sum in dividend payout to subscribers, totalling RM31.20bil. It is 13.66% higher than the total dividend payout in 2012, which was RM27.45bil, he added. Samsudin said the dividend rate was declared on the back of a record gross investment income of RM35bil, a 12.81% rise from the RM31.02bil gross investment income recorded in 2012. "The 2013 dividend payout was derived after deducting the net impairment allowance on financial assets, investment expenses, operating expenditures, statutory charges as well as dividend on withdrawals," he said. Samsudin said equities emerged as the largest contributor to the...