MONEY MASTER

Malaysia’s  Forest City  was conceived as a futuristic metropolis, but the US$100 billion development has spent much of the past decade struggling with weak occupancy, sluggish property sales and questions over what could ultimately bring the city to life. Now, an unexpected answer may be emerging:  technology rather than property . Malaysian crypto entrepreneur  Jeff Yew , the former head of Binance Australia and current chief executive of Monochrome Asset Management, is considering establishing a technology campus at Forest City. The proposed project could focus on artificial intelligence, blockchain and computer science, while combining international talent with the development of Malaysian entrepreneurs. The plans remain preliminary, but they raise a bigger question for investors:  Could Forest City become part of Malaysia’s push to build a higher-value digital economy? From Property Megaproject to Technology Hub? Forest City’s challenge has never simply bee...

Malayan Banking Bhd’s latest disclosure points to more than just deal volume,  it provides  early evidence that the Johor-Singapore Special Economic Zone (JS-SEZ) is beginning to attract meaningful capital flows , positioning the bank at the forefront of a multi-year regional growth theme. Early Signs of Capital Formation in JS-SEZ Malayan Banking Bhd  has facilitated  RM20 billion (US$4.9 billion) in financing and investments  tied to the JS-SEZ, spanning corporate, mid-market and consumer segments. More notably, the bank has supported the establishment of  nine family offices in Johor , signalling: Rising wealth inflows into the corridor Growing demand for  cross-border structuring and asset allocation Early-stage development of a  regional wealth management hub This suggests the SEZ is  moving beyond policy ambition into execution phase , where capital deployment is already taking shape. From Policy Framework to Investable Theme The JS-SEZ...

Based on Bloomberg reporting , China Vanke’s agreement to make  2.9 billion yuan (US$417m)  in partial bond payments is not just a liquidity update — it is a  market signal on state support, recovery values, and contagion risk  in China’s property sector. For investors sensitive to credit stress, this development matters  less for what Vanke paid , and more for  what it implies for defaults, restructurings, and government backstops in 2026 . What Just Happened  China Vanke Co Ltd  won bondholder approval to  delay full repayment by one year In exchange, it will pay: 40% upfront principal  on two missed onshore bonds Plus another partial payment due this week Total cash outlay:  2.9bn yuan This buys Vanke breathing room until its  next major maturity in late April . Why This Matters for Credit Investors The key takeaway is  not default avoidance , but  precedent-setting behavior : A  40% upfront cash payout  ...

 Market Surge Amid Economic Strain China’s equity market is staging a powerful rally despite persistent economic headwinds. The  Shanghai Composite Index  recently hit a  10-year high , while the  CSI 300  has gained more than  20% from its 2025 low , adding nearly  US$1 trillion  in market value in just a month. This surge comes even as  domestic consumption, property prices, and inflation indicators flash red . Consumer prices were flat in July, producer prices declined for a 34th straight month, and GDP deflator readings remained negative — all pointing to a  deflationary spiral  undermining corporate pricing power. Drivers of the Bull Run Excess Liquidity:  Cash-rich investors are rotating into equities amid limited alternatives. Policy Support Expectations:  Hopes for targeted measures from Beijing, though so far the government has avoided large-scale stimulus. Margin Trading:  Outstanding margin debt has cl...

The  Reserve Bank of Australia (RBA)  defied market expectations this week by holding the  cash rate steady at 3.85% , despite widespread predictions of a third rate cut in five months. Key Takeaways: Market Misread : Economists and traders expected a rate cut due to the RBA’s dovish tone in May and its silence leading up to July. However, Governor  Michele Bullock  emphasized the need for more data before proceeding further. Vote Breakdown : The RBA’s newly structured board  voted 6–3 to hold rates , with Bullock defending the transparency and strategy behind the decision. Inflation Watch : The RBA is placing more weight on the upcoming  quarterly trimmed mean inflation  data (due July 30) rather than monthly CPI updates. A print of  2.6% or below  could prompt an  August rate cut . Revised Market Expectations : Traders now price in  two cuts in 2025  (down from three), pushing the third cut to  early 2026 . Housing ...

Malaysia's corporate landscape delivered a broad mix of strategic initiatives on Tuesday, ranging from renewable energy partnerships and infrastructure expansion to capital restructuring and asset realignment . The announcements reflect rising corporate interest in sustainability-linked growth, energy transition, and real asset monetization. Below is a roundup of key developments with analyst insights on their potential market implications. Renewables & Green Infrastructure Gamuda Bhd (GAMUDA MK) Co-developing 600MW RE Portfolio in Australia Gamuda entered into a JV with the Downie family to co-develop 600MW of wind and solar capacity with up to 600MW of battery storage in Tasmania. Analyst Take:  Signals deeper penetration into international renewables. Long-term EPS contribution likely minimal initially, but supports Gamuda’s ESG repositioning narrative. Samaiden Group Bhd (SAMAIDEN MK) Acquires Land for Utility-Scale Solar in Teluk Intan RM45.5M acquisition of 185.6 hectares...

Bank of America Corp strategist Michael Hartnett is advising investors to buy into any dips in Chinese equities , anticipating fresh fiscal stimulus from Beijing. The government is expected to unveil as much as 2 trillion yuan (US$283 billion) in new measures at a briefing scheduled for Saturday, according to analysts and investors polled by Bloomberg . Hartnett believes that allocations to China will increase as forecasts for economic growth improve and bond yields rise. He pointed out that policymakers may use capital markets aggressively to stimulate domestic demand and boost investor confidence . Despite a volatile week for Chinese stocks, with the CSI 300 Index snapping a 10-day rally and dropping 2.8% on Friday, Hartnett remains optimistic. The index has still gained over 20% since September 23 , following the central bank's introduction of monetary stimulus measures. The strategist emphasized his team's stance: "We buy any China dips." Investors pou...

Maybank Investment Bank Bhd (Maybank IB) has upgraded its outlook on the Malaysian property sector from “neutral” to “positive” after a recent market sell-down highlighted the sector’s value.  Here's a breakdown of their assessment and recommendations: Key Points: Upgrade Rationale: Sector Value: The recent sell-off in the property market has revealed significant value, prompting Maybank IB to upgrade its rating. Strong Fundamentals: The sector's fundamentals remain robust, with resilient property sales, especially in the industrial property segment. Thematic Drivers: Data Centres: Investments in data centers are seen as a key driver for the sector in the medium term. These investments could expedite the monetization of land value. Upcoming Developments: Investors are advised to position themselves ahead of major upcoming developments, such as: Johor-Singapore Special Economic Zone (JS-SEZ) New Data Centres Kuala Lumpur-Singapore High-Speed Rail (KL-Singapore HSR) Potential...

Retain HOLD with a higher target price (TP) of RM12.21 Highlights FFB output growth to mitigate lower palm prices…  GENP registered FFB output growth of 28.5% yoy in 1Q17 , boosted by yield recovery (as lagged impact of El Nino subsided since end-FY16) and more areas moving into mature and higher yielding bracket (for its plantation estates in Indonesia). Management remains confident that the strong FFB output growth achieved in 1Q17 will sustain into the next few quarters (with output ratio of 45:55 in 1H and 2H), underpinned by young age profile for its plantation operations in Indonesia (with average age of only ~ 5 years as at end- FY16), which will in turn cushion lower palm product prices. The opening of GHPO to boost JV’s earnings from 2H…  We expect the opening of Genting Highland Premium Outlet (GHPO, likely by end-2Q) to perform as well as Johor Premium Outlets (JPO), if not better, as it will be serving a more diverse group of shoppers vis-à-...

Downgrade to MARKET PERFORM from OUTPERFORM with a higher target price (TP) of RM9.38 We met up with SCIENTX?s management last week and came away feeling comforted as their expansion plans are well on track. As expected, the Group is focused on the expansion of its BOPP and PE plants, and longer term growth of stretch film plant in Arizona, US. All in, we maintain FY17-18E earnings. Downgrade to MARKET PERFORM (from OP) but increase TP to RM9.38 on a higher PE of 6.8x for our property segment. PE plant expansion at Ipoh to be completed by end CY17 . As part of expanding its consumer segment, SCIENTX is in the midst of completing capacity expansion at its PE plant in SGW Ipoh to 24,000MT p.a. by end CY17 (1HFY18), increasing total capacity for the PE segment to 84,000MT p.a. which is on track. BOPP plant focused on ramping up capacity.  The BOPP plants in Rawang and Pulau Indah currently have a total capacity of 60,000MT p.a. (as at Dec 2016) and will continue ...

Maintain outperform with an unchanged target price (TP) of RM2.23 The Group’s 9MFY16 net profit of RM57.5m (+8.4% YoY) came in within expectations, at 73% of our and 74% of consensus full-year estimates. With the group currently undertaking 16 on-going projects against the backdrop of a record-high unbilled sales amount of RM1.46bn, the company remains primed for sustained growth in the coming few financial years, particularly owing to its predominant focus on affordably-priced properties which stand it in better stead. Recent corporate exercises in which 1) the construction division was spun off into ML Global and 2) land acquisitions in Dengkil and Alam Perdana, are positive and underscores management’s focus on long-term shareholder value creation. While we leave FY16 estimates unchanged, we are lifting FY17 and FY18 net profits by 15.1% and 22.2% respectively, scaling back on our previously-conservative sales assumptions. Our  Outperform  call is affirmed with an...

Maintain outperform with unchanged target price (TP) of RM0.50   MK Land started FY17 with a net profit of RM4.1m (+46.4% YoY, -1.7% QoQ), which was below expectations. The 1Q net profit only constituted 15% of our full year estimates. With no meaningful launch in FY16 in the Klang Valley and while existing inventory is still slow moving, revenue dropped 21.3% QoQ. As reported, we already expected the Group’s earnings to remain slow due to the lack of new launches and absence of land sale. The timing of new projects are still sketchy, given current tough operating environment. Pending clarity from Management, we keep our earnings unchanged for now and maintain our  Outperform  call from a valuation standpoint with  TP  of  RM0.50 , pegged at a c.70% discount to our RNAV estimate. Limited new launches.  So far, it has only launched the first phase of its Residensi Suasana @ Damai condominium project. We understand that only c.65% of the...

Retain neutral call with target price (TP) of RM7.15 Sime Darby (Sime) has entered into an implementation agreement with Japan Residential Asset Manager, the manager of Saizen REIT to acquire at least 25% of the enlarged Saizen REIT through a reverse takeover (RTO) after the expiry of framework agreement last week. There are some slight changes with regards to the shareholding and agreed prices compared to the previous agreement. The estimated market capitalization of Saizen REIT also revised up from RM900m to RM1.1bn. At this juncture, we maintain our  Neutral  call and  TP (RM 7.15)  pending the completion of recent proposed private placement and more guidance from management on the outlook of its plantation and industrial arms. Salient details of the RTO.  Under the new agreement, Sime indirect wholly-owned subsidiaries, Hasting Deering (Aus) Limited and Austchrome will dispose 20 industrial properties located in Queensland and the Northern Terri...

One of the asset class that's not mentioned as often in this blog is property. Today, we will try to talk a bit about one of the common metric that's being used to evaluate the value of a piece of investment property. EFFECTIVE GROSS INCOME is a metric commonly used to evaluate the value of a piece of investment property. It's calculated by adding the amount of income produced by the piece of property and the miscellaneous income, less vacancy costs and collection losses.  Here is an example: A condominium has an income of $1,000,000 if it is able to rent out all of its units (full occupancy). Historically, the condominium is unable to fill 10% of its units, meaning that it is unable to collect $100,000 ($1,000,000 * 0.1).  The Effective Gross Income for the property is $1,000,000 - $100,000, = $900,000 Some things to ponder when calculating EGI is the factors that can influence the vacancy costs and collection losses for a piece of property. The...

Recently I have learned that a lot of my colleagues, who are few years my junior bought their 1st property right after they start to work and it seems that it is slightly contradict with the article "The young find it difficult to afford a home" from The Star - which brings me to think that it could be the mindset between people from the northern region with the people living in the central region of the peninsula. I see that the people from the northern region, especially the Chinese tend to believe that property is a good investment and one should always get the first property at very young age. Although I personally don't agree on buying property right after getting the first job, I agree that purchasing property must be at young age - and we should not aim for the high-end property but rather the kind of property that we can afford at that time. I personally agree with Malaysian Institute of Estate Agents (MIEA) president Siva Shanker that the Gen-Y definitely n...