MONEY MASTER

Asian  equities  and  currencies  extended  losses  for  a  second  straight  session  as  crude  oil  hovered  near  US$100  per  barrel,  intensifying  inflation  concerns  and  strengthening  the  US  dollar. Oil  Shock  Drives  Risk- Off  Mood MSCI Emerging Markets Index   fell  1.4%   on  Friday  and  is  down  nearly  8%   since  late  February  when  the  war  began. The  emerging- market  currency  gauge  slipped  0.6% ,  bringing  its  decline  to  roughly  2%   over  the  same  period. Meanwhile,  the  US  dollar  index  climbed  to  its  highest  level  since  late  November,  supported  by: Safe- haven...

Quick Summary Greentronics’ share price collapsed, wiping out up to 79% of its market value Bursa Malaysia issued an Unusual Market Activity (UMA) query Company must confirm if any undisclosed developments caused the plunge Shares rebounded partially, but volatility remains extremely high What Happened Greentronics Technology Bhd  was ordered by  Bursa Malaysia  to explain an  extraordinary sell-off  that saw its shares crash as low as  5 sen , from  19 sen , erasing  79% of its market capitalisation  at the intraday low. The exchange has asked Greentronics to: Confirm whether there were  any unannounced corporate developments Clarify the existence of  ongoing negotiations, rumours or reports Reaffirm  compliance with disclosure and listing requirements Market Impact Intraday low:  5 sen Noon close:   18.5 sen Shares traded:   8.87 million Market cap: ~RM45 million at the low RM166.2 million at 18.5 sen Key point...

Malaysia is pressing ahead with  fiscal reforms to narrow its deficit and rein in government borrowing , as part of a broader effort to strengthen public finances and reduce rising debt-servicing costs, Deputy Finance Minister  Liew Chin Tong  said in Parliament on Thursday. The reforms are anchored under the  Public Finance and Fiscal Responsibility Act (Act 850) , which has already delivered tangible results. Annual new government borrowing has been  reduced from RM100 billion in 2021–2022 to around RM75 billion in 2025 , reflecting stronger fiscal discipline and consolidation. To sustain this trajectory, the government is  broadening its revenue base  and improving collection efficiency through measures such as expanding the  sales and services tax (SST) , rolling out  e-invoicing , and tightening expenditure via  targeted diesel and RON95 fuel subsidies . Authorities are also moving to  rationalise statutory bodies  to impr...

 Granite Asia has secured more than  US$350 million  in the first close of its new Pan-Asia private credit fund, attracting commitments from major Southeast Asian state investors including  Temasek ,  Khazanah Nasional , and the  Indonesia Investment Authority (INA) . The strategy, known as  Libra Hybrid , is targeting a total fund size of  US$500 million . In addition to the three sovereign anchors, the fund drew capital from global institutional investors, sovereign funds, and Granite Asia’s own partners. Temasek invested through its private credit platform  Aranda Principal Strategies , the firm said. Granite Asia added that roughly  30% of the committed capital  has already been deployed across  six transactions . Private Credit Growth Across Asia The launch comes as Asia’s private credit market continues accelerating. According to a report by the Alternative Investment Management Association and several advisory firms, the...

 Foreign investors returned as net buyers on Bursa Malaysia last week, breaking a two-week selling streak with  RM11.6 million  in net inflows, according to MBSB Investment Bank Bhd’s latest fund flow report for the week ended Dec 5. The strongest foreign buying was recorded on  Tuesday (Dec 2)  at  RM155.7 million , followed by  Monday  at  RM58.0 million  and  Wednesday  at  RM50.5 million . Net selling occurred on  Thursday  (RM80.3 million) and  Friday  (RM172.3 million). Sector Flows The top sectors with  net foreign inflows  were: Financial services:  RM532.0 million Industrial products & services:  RM83.0 million Telecommunication & media:  RM58.6 million The sectors that saw  net foreign outflows  were: Utilities:  RM351.9 million Healthcare:  RM108.1 million Technology:  RM86.7 million Local institutions posted a second consecutive week ...

 Malaysia’s real estate investment trust (M-REIT) sector may face a sharp drop in investor appeal if a long-standing  withholding tax relief on REIT distributions expires on Dec 31, 2025 , Maybank Investment Bank (Maybank IB) warned. The concession — in place since YA2016 — keeps tax on REIT income at  10% for most investors ,  0% for resident corporates , and  24% for non-resident corporates . Although repeatedly extended in the past, authorities have remained  silent  on whether it will continue into YA2026. What Happens If the Tax Relief Ends? Maybank IB said that without an extension, REIT distributions would revert to  marginal tax rates , potentially cutting  post-tax yields by 50–100 basis points . Such a reduction could: Lower net income for retail and institutional investors Make Malaysia’s REITs  less competitive  versus regional peers Deter foreign inflows Undermine sentiment despite the sector’s currently attractive...

 Malaysia’s banking sector is on track to end 2025 strongly, but analysts caution that  tighter liquidity and rising deposit competition  will dominate the landscape in 2026. MBSB Research, which maintained its  positive sector outlook , said banks remain supported by  robust fundamentals and attractive dividend yields , helping drive a solid 4Q2025 performance. “Multiple tailwinds continue to support the sector, and we expect share prices to extend their uptrend,” MBSB said in a Wednesday note. Dividends, loan growth and improving asset quality still supportive According to MBSB, several factors will continue to underpin bank valuations heading into 2026: High dividend yields Improving loan growth momentum Stable net interest margins (NIMs) Stronger fee income Further recoveries in gross impaired loans (GIL) While risks such as asset quality and liquidity pressures persist, MBSB views them as  manageable for now . However, the house flagged early signs of ...

PETRONAS Chemicals Group Bhd sank to its lowest level since April after reporting another quarterly loss, with analysts cautioning that the petrochemical giant faces a longer and more painful downturn ahead. The latest quarter’s core net loss — excluding exceptional items — was the company’s largest since its 2010 listing, prompting consensus forecasts to now price in a full-year loss for PChem. Hong Leong Investment Bank (HLIB) said the sector remains under heavy pressure due to China’s aggressive capacity expansion and sluggish downstream demand, a combination that continues to depress pricing across key product chains. PChem plunged as much as 13% intraday to RM2.83 before closing 10% lower at RM2.92 on Monday, with over 34 million shares traded. The counter has shed nearly 40% year-to-date, cutting its market value to about RM23 billion. Broker sentiment remains overwhelmingly bearish: 12 sells, four holds, and just three buys, Bloomberg data show. HLIB is the most bearish among 21...

DBS Group Holdings has revised its ambitions in Malaysia, trimming its proposed acquisition of Alliance Bank Malaysia Bhd to a 30% stake after regulators signalled they would not support a larger deal, according to people familiar with the matter. Southeast Asia’s largest bank had initially sought approval to negotiate for as much as 49% of Alliance Bank, a size that would require Bank Negara Malaysia (BNM) to grant a rare ownership waiver. The central bank declined to entertain that request, prompting DBS to withdraw and refile a proposal aligned with Malaysia’s 30% ownership limit. The smaller proposal is expected to have a smoother path, the people said, and would allow DBS to formally engage Alliance’s major shareholder, Vertical Theme Sdn Bhd — a Malaysian holding company partly owned by Singapore’s Temasek Holdings. Temasek indirectly owns 49% of Vertical Theme through Duxton Investment & Development and also holds 28.3% of DBS. Representatives from DBS and Vertical Theme dec...

The Malaysian Ringgit climbed to a one-year high against the US dollar on Nov 12, strengthening past 4.13 per USD as easing global trade tensions and renewed risk appetite lift regional markets. The move marks a notable shift in sentiment, drawing foreign investors back into Malaysian assets after months of volatility. Ringgit Strength Gains Momentum as Foreign Funds Return A combination of improved global risk appetite, firm commodities, and resilient domestic fundamentals has fuelled the Ringgit’s recent climb. Oil and palm oil prices — key pillars of Malaysia’s export economy — remain supportive, while macro indicators show steady recovery. Foreign investors have responded. Malaysian bonds saw more than USD 1 billion in inflows this quarter. On Nov 11 alone, the equity market recorded RM 198 million in net foreign buying — a reversal from the persistent outflows seen earlier in the year. With US rate cuts underway and rising concern over US Treasury risks, some Malaysian exporters a...

Velesto Energy Bhd (KL:VELESTO)  is set to deliver stronger operational results in the  second half of 2025 (2H2025) , but further share price upside appears limited, according to  Hong Leong Investment Bank (HLIB) . The research house said the recent rally has already  priced in higher rig utilisation rates and dividend prospects  following Velesto’s capital reduction exercise. HLIB downgraded the counter to a  “hold”  from  “buy” , citing  normalising earnings growth  under  lower day charter rate (DCR) assumptions  for the financial years ending  Dec 31, 2026 (FY2026)  and  FY2027 . Reflecting a more cautious outlook, HLIB  trimmed its FY2026 and FY2027 earnings forecasts by 6.2% and 1.1% , respectively, to factor in softer DCR expectations as  longer-term contracts  increasingly dominate the company’s portfolio. Stock Performance and Valuation Velesto’s shares have  more than doubled ...

A recent  major power outage  across  Klang Valley and Johor  has reignited debate about Malaysia’s energy infrastructure resilience, with analysts at  CGS International  emphasizing that the incident underscores — not undermines — the case for a  new power sector capex cycle . Power Disruption Signals Systemic Stress CGS noted that the blackout, which originated from the  Edra Melaka CCGT  plant and was compounded by an  unplanned outage  at the  1,000MW Tanjung Bin Energy coal plant , exposed vulnerabilities in Malaysia’s power grid. Together, both plants account for  around 13% of Peninsular Malaysia’s total installed generation capacity , highlighting a  tight reserve margin  and growing system stress. With  electricity demand surging  — driven by  foreign direct investments (FDI)  into  electronics, electrical manufacturing , and  data centres  — Malaysia’s grid is increasi...

Malaysia is expected to unveil an  expansionary yet fiscally disciplined Budget 2026  on Friday, aiming to  shrink the fiscal deficit  through improved tax collection and new levies, even as government spending rises to support growth. Economists project the  deficit to narrow to 3.4%-3.6% of GDP  next year from 3.8% in 2025, in line with Prime Minister and Finance Minister  Anwar Ibrahim’s medium-term fiscal consolidation target  of 3% by 2030. Total expenditure is forecast to climb to  RM435 billion , driven by record-high  operating expenditure of RM348 billion —reflecting  higher civil service wages ,  targeted cash aid , and  social spending .  Development expenditure  may rise modestly to  RM87 billion , with allocations for  infrastructure, green energy, and digital projects  under the  13th Malaysia Plan . Key projects include the  LRT Mutiara Penang ,  Johor–Singapore Specia...

Trade Momentum Strengthens Malaysia-China bilateral trade reached  US$131.84 billion (RM555.8 billion)  in the first eight months of 2025, underscoring robust momentum as both nations enter the “Golden 50 Years” of diplomatic relations. China has remained Malaysia’s largest trading partner for  16 consecutive years , accounting for  RM484.12 billion  in total trade in 2024, or 16.8% of Malaysia’s global trade. Tourism Rebounds Tourist arrivals from China surged to a historic  2.78 million visitors in the first seven months of 2025 , reflecting deepening people-to-people exchanges and recovery in travel flows. High-Level Visits Elevate Ties China’s Ambassador to Malaysia, Ouyang Yujing, highlighted that  state visits by Chinese President Xi Jinping and Premier Li Qiang , alongside Malaysian Prime Minister Anwar Ibrahim’s visits to China this year, have boosted momentum. Both nations agreed in April to  build a high-level strategic community with a ...

 Aluminium Prices Hit One-Year High Maybank Investment Bank (Maybank IB) remains positive on  Press Metal Aluminium Holdings Bhd (PMETAL)  as aluminium prices climb to their highest in a year amid tight global supply. Prices on the London Metal Exchange (LME) rose to  US$2,737 per tonne in September , already exceeding Maybank’s year-end forecast of  US$2,550 per tonne . The research house highlighted that inventories remain near multi-decade lows, while sanctions on Russia and China’s 45 million tonne production cap continue to squeeze supply. High energy costs have also led to smelter shutdowns in some regions, adding to the deficit risk. U.S. Dollar Weakness a Key Earnings Headwind While a weaker greenback could support aluminium demand globally, Maybank IB cautioned that it poses a downside risk for Press Metal’s earnings. This is because the company  earns revenue in U.S. dollars but reports in ringgit . Maybank estimates that a  5% depreciation o...

Modest Earnings Uptick Expected Top Glove Corp Bhd (KL:TOPGLOV), the world’s largest rubber glove maker, is likely to post  only slight quarter-on-quarter earnings improvement  in its fiscal 4QFY2025, according to Phillip Capital. Projected net profit:  RM22–23 million, versus RM21.5 million in 3QFY2025. This would mark a turnaround from the  net loss of RM50.5 million  in 4QFY2024. The improvement is underpinned by higher utilisation rates, with the company running at  74% capacity  on stronger US orders. Headwinds: Prices and Currency Pressure Despite better volume, Phillip Capital warned that: Softer average selling prices (ASPs)  and A  stronger ringgit against the US dollar will weigh on margins. The research house has  cut its target price by 12 sen to 59 sen , citing persistent structural challenges that cap earnings recovery. Competitive Pressures Intensify Global oversupply continues to plague the glove sector, with: Chinese riv...