Today, we unpack a packed slate of headlines—from AEON Credit’s rising bad loans and YTL Power’s RM10 billion AI bet to fresh US tariff threats and Petronas’ LNG milestone. Here’s what you need to know.
🇲🇾 Malaysian Company & Market News
🔹 AEON Credit Profit Drops 27%
Q1 net profit fell to RM77.55M despite revenue rising nearly 15%. Higher impairment losses pushed NPL ratio up to 2.57%, signaling consumer repayment stress.
🔹 Bina Puri Faces More Winding-Up Petitions
Two new tax-related petitions bring 2025 total to five—raising concerns over long-term stability.
🔹 Binastra Corp Wins RM45M Contract
Bukit Jalil residential project lifts total order book to RM4.6B—strong earnings visibility.
🔹 Khazanah Eyes AI Partnerships
Talks with French and Italian sovereign funds to build cross-border AI collaboration—part of Malaysia’s high-tech strategy.
🔹 YTL Power’s RM10B AI Push
Major investments in Nvidia-powered data centres and the upcoming ILMU 1.0 large language model and Ryt Bank AI-driven digital bank.
🔹 Penang Water Authority Launches RM5B Sukuk
Funding long-term water and green infrastructure—sets precedent for sustainable financing.
🔹 Kenanga Downgrades O&G Service Stocks
Warns of earnings decline into FY26 amid petrochemical weakness—cautions against bottom-fishing.
🔹 Petronas Exports First LNG from Canada
New low-emission LNG cargo delivered to Japan—underscores clean energy expansion.
🔹 Paris Air Show Secures RM1.16B Potential Sales
Malaysia’s aerospace sector sees strong momentum—exports hit RM3.63B Jan–May.
🏛️ Domestic Economy & Policy
🔸 US Tariff Threats: Malaysia Faces 25%
New tariffs effective Aug 1, not cumulative with existing rates. Penang’s electronics exports especially vulnerable.
🔸 GDP Growth Could Slip by 0.5–1.5%
HLIB estimates significant drag if full tariffs proceed—negotiations underway to lower rates.
🔸 Potential Upside for Palm Oil
Malaysia’s 25% tariff is lower than Indonesia’s 32%—may redirect US demand.
🔸 BNM Rate Cut Expected
Half of economists forecast a 25bps cut to 2.75%—aimed at cushioning consumption and investment.
🌍 Global & Market Developments
⚠️ US Tariffs Target Asia
Japan 25%, South Korea 25%, Indonesia 32%, Thailand 36%—China warns against supply chain exclusion.
🇨🇳 China’s Rare Earth Curbs Disrupt Auto Supply Chains
Parts shortages persist—higher costs likely for longer.
🇨🇳 China May Double Bond Connect Quota
Potential RMB1T expansion could boost yuan’s global role.
🇦🇺 RBA Surprises Markets—No Rate Cut
Cites need for more data on inflation despite expectations for easing.
🇺🇸 US Stocks Hit New Highs
S&P 500 upgraded by BofA, Goldman Sachs—resilient earnings and possible Fed cuts support optimism.
🛢️ OPEC+ Adds Supply—Oil Steady
Extra 548k barrels/day for August—market absorbs increase amid firm demand.
📌 Key Takeaways & Investor Insights
✅ YTL’s RM10B AI and data centre push positions Malaysia as a digital leader—but geopolitical risks remain.
✅ New US tariffs could drag growth and unsettle exporters—diversification is crucial.
✅ BNM expected to ease policy to support the economy—lower borrowing costs likely.
✅ Petronas’ clean LNG exports reinforce sustainability credentials.
✅ Global trade tensions, energy shifts, and AI competition create both risks and opportunity.
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