Bursa Malaysia's Q1 net profit falls 8.8% on lower trading revenue
[KUALA LUMPUR] Bursa Malaysia's net profit declined 8.8 per cent year on year to RM68.4 million (S$20.6 million) for the first quarter of 2025, the exchange operator said on Monday (Apr 28).
Revenue fell 1.5 per cent to RM184.4 million from a year earlier, as lower trading revenue and higher expenses weighed on performance, Bursa Malaysia chief executive officer Fad'l Mohamed said in a statement.
The average daily trading value on the securities market dropped nearly 12 per cent to RM2.8 billion, compared to RM3.2 billion in the first quarter of 2024. Fewer trading days – 58 versus 60 a year earlier – also contributed to the revenue decline, he said.
Trading velocity slipped to 33 per cent from 39 per cent over the same period.
'The first quarter of 2025 proved to be a challenging period for global markets, weighed down by external factors affecting equity market performance,' Fad'l said.
Bursa Malaysia chief executive officer Fad'l Mohamed notes that Malaysia's capital market remains resilient, supported by strong economic fundamentals and government policy direction. PHOTO: BURSA MALAYSIA
Still, he stressed that Malaysia's capital market remains resilient, supported by strong economic fundamentals and government policy direction, including national roadmaps for key growth sectors.
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Despite softer trading activity, Bursa Malaysia has recorded 16 initial public offerings (IPOs) so far this year, keeping it on track to meet its full-year target of 60 listings, Fad'l said.
As at Mar 31, Bursa Malaysia's market capitalisation stood at RM1.9 trillion, down 1.9 per cent from a year earlier.
Last year, Bursa hosted 55 listings that raised RM7.4 billion, making it the most active exchange by deal count in South-east Asia.
This year, market sentiment has been hit by global uncertainties. Cuckoo International and SPB Development deferred their IPO plans, citing unstable conditions.
Bloomberg also reported that advisers for South Korea's OCI Holdings have paused work on the IPO of its Malaysian polysilicon unit due to market volatility.
On Monday, the benchmark FBM KLCI closed at 1,521.59 points, 0.8 per cent higher from the previous trading day, with 2.6 billion shares traded. Year-to-date, the index has fallen nearly 7 per cent from 1,632.87 points at the start of the year.
Robust activities in derivatives market
The derivatives market provided some support, with revenue up 13.7 per cent to RM28.9 million, driven by higher trading activity in crude palm oil futures and FTSE Bursa Malaysia KLCI Futures contracts.
Revenue from the Islamic capital market rose 23 per cent year on year to RM5.5 million.
Non-trading revenue, which includes listing and issuer services as well as depository services, grew 4.9 per cent to RM66.5 million.
Bursa Malaysia's financial results note indicated that securities market activity remains sensitive to global and local factors – including US policy uncertainties, risks of escalating trade tensions, monetary policy shifts, geopolitical risks and corporate earnings performance.
'The derivatives market's activity was influenced by volatility in commodity prices, delays in Indonesia's biodiesel policy implementation, production levels in palm oil-producing nations, and movements in the broader equity markets,' said the exchange.
For Islamic markets, Bursa Malaysia noted that it remains focused on improving investor accessibility through its Islamic investing platform, and aims to attract a broader range of investors amid growing demand for ethical and syariah-compliant investments.
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Business Times
a day ago
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South-east Asia's export rush wanes as tariff clock ticks down
[SINGAPORE/KUALA LUMPUR/HANOI/JAKARTA] South-east Asia's export boom may be running on borrowed time as traders rush to front-load goods ahead of the end of US President Donald Trump's 90-day tariff pause on Jul 9, masking signs of fading momentum. While April's export data climbed year on year across much of the region, a closer look reveals a month-on-month slowdown that is already hitting Thailand, Vietnam and the Philippines, with the rest of South-east Asia likely to follow by the second half of the year. April trade figures suggest not just front-loading, but also a possible rerouting of US-destined China-origin goods through Asean economies, said Nomura analysts Rob Subbaraman and Toh Si Ying. Such front-loading means Asian export growth in the second quarter of the year could be stronger than projected, noted the duo in a May 28 report. But they warned that this may just be 'a brief respite before an Asian export slump in H2, driven by the inevitable payback from front-loading and an overall slowdown in global trade activity caused by the highest US tariff rates in over 80 years and historically high business uncertainty'. The major exporters in trade-reliant South-east Asia – Indonesia, Thailand, Malaysia, Vietnam and Singapore – face a looming slowdown. On the other hand, the Philippines – a net importer – saw front-loading taper off early. It could ultimately benefit from trade diversion and a potential US deal, as tariffs position its goods to become more competitive. The Business Times breaks down how the shifting trade tide is unfolding across the region. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Singapore: surge now, strain later Singapore's non-oil domestic exports surged 12.4 per cent in April – the fastest pace since July 2024 – driven by gains in both electronics and non-electronics, with the former buoyed by current tariff exemptions. The surprise jump was largely driven by front-loading, as exporters raced to capitalise on the tariff pause and get ahead of looming sector-specific duties on pharmaceuticals and semiconductors. The current boost is 'really no consolation', as advanced sales mean that exports will slow when markets have stocked up, said Deputy Prime Minister Gan Kim Yong recently as he gave an update on the work of the Singapore Economic Resilience Taskforce. Gan, who leads Singapore's tariff talks with the US, said Washington is open to discussion on 'some form of concession' in the impending sectoral tariffs, though it will not budge on the baseline 10 per cent duty. Economists warned of medium to long-term risks amid uncertainty over Trump's next move, though sentiment has improved with the unexpectedly swift easing of US-China trade tensions, said UOB's Jester Koh. But OCBC chief economist Selena Ling warned that whether the two players can reach a permanent trade deal remains to be seen. DBS senior economist Chua Han Teng flagged that global trade frictions remain elevated compared to pre-Trump 2.0 which could be a drag on Singapore's 2025 exports, though likely less severe than earlier feared. — ELYSIA TAN Malaysia: trade momentum meets tariff jitters Malaysia's exports rose 16.4 per cent year on year to RM133.6 billion (S$40.5 billion) in April, as exporters rushed to beat a now-delayed US tariff hike. The jump, from RM114.7 billion a year earlier, was led by a 9.1 per cent rise in domestic exports and a 46 per cent surge in re-exports, driven by strong global demand for electrical and electronic products. Electrical and electronic exports, led by semiconductors and data processing equipment, jumped 35.4 per cent year on year, marking five straight months of double-digit growth. Malaysia's total trade rose 7.2 per cent in the first four months of 2025, with MIDF Research expecting export growth to hold over the next few months as firms take advantage of the temporary tariff reprieve. Analysts remain cautious, with MIDF forecasting a slowdown in export growth to 2 per cent and imports to rise 4.5 per cent, as trade uncertainty and tariff risks persist. Bank Negara expects front-loaded exports to normalise soon. UOB economists Julia Goh and Loke Siew Ting flagged ongoing uncertainty as US trade talks continue, noting firms may scale back production on weaker demand expectations. Pending clearer outcomes, UOB maintains its 2025 export growth for Malaysia forecast at 3.8 per cent. — TAN AI LENG Thailand: export fever cooling Thailand may have notched its tenth straight month of year-on-year export growth in April, but the pre-tariff shipping rush is losing steam. Exports rose 10.2 per cent from the prior year – a clear pullback from March's 17.8 per cent surge. Thailand posted US$25.6 billion in exports in April, amounting to a US$3.3 billion trade deficit, revealed data released by the kingdom on May 26. Bank of America's emerging Asia economist Pipat Luengnaruemitchai said April's cooling confirms the house's view that the strong first-quarter performance was temporary, driven by front-loaded shipments ahead of anticipated tariffs. In a May 26 report on Thailand's trade balance, he said: 'Combined with limited domestic production gains and increasing external pressure, Thailand's export and trade balance outlook remains weak in the coming quarters.' He added that more Chinese products may enter the kingdom as Beijing sources for alternative markets. Industrial and agro-industrial products continue to be key growth drivers of Thailand's exports. Notably, a jump in gold exports for a second month kept Thailand's exports robust. Maybank analysts Erica Tay and Chua Hak Bin noted in a recent report that exports of the yellow metal surged 250.5 per cent in April (and 269.5 per cent in March), which accounted for a third of export growth in Thailand – one of the largest physical gold trading hubs. While there is little visibility on bilateral trade talks with the US, the house expects tariffs on Thailand to stay within 30 per cent. — GOH RUOXUE Vietnam: tariff boost to factory blues Vietnam posted strong export growth in April, driven by a spike in orders after the US delayed its 'Liberation Day' tariffs and temporarily exempted some electronic goods. Despite facing a looming 46 per cent reciprocal tariff – among the highest in Asia – Vietnam's exports and imports surged in April by 19.8 per cent and 22.9 per cent year on year to US$37.45 billion and US$36.87 billion, respectively, Vietnam Customs indicated. However, exports dipped 2.8 per cent from March, while imports were flat. Vietnam's electronics exports surged nearly 59 per cent in April, while footwear and textiles rose more than 20 per cent and 17 per cent, respectively, boosting its trade surplus with the US by 25 per cent in the first four months of 2025. At the same time, its trade deficit with China widened by more than 44 per cent. The balance of trade is a key point in the tariff negotiations between Hanoi and Washington. The two countries concluded their second round of trade talks on May 22 and are expected to continue in early June, based on a statement from Vietnam's trade ministry. So far, Hanoi has not only offered to purchase more US goods and reduced tariffs on certain imports, but has also taken steps to address Washington's non-tariff concerns, including fraud related to the origin of goods transshipped from China. Tariff uncertainty is dampening sentiment among Vietnamese manufacturers, with business confidence sinking to its lowest since August 2021, according to S&P Global's April purchasing manager's index survey. Factory activity shrank at the fastest pace since May 2023, as new orders and overseas demand had sharp declines. — JAMILLE TRAN Indonesia: short-term gains, long-term doubts Indonesia's exports climbed 5.8 per cent year on year in April to US$20.7 billion, driven by a 60 per cent increase in electrical machinery shipments and solid gains in iron and steel. Meanwhile, imports jumped 21.8 per cent year on year to US$20.6 billion in April, outpacing export growth and dragging the monthly trade surplus down to a five-year low of US$158.8 million, based on data released by the statistics agency on Jun 2. On a monthly basis, Indonesia's exports dropped 10.8 per cent, which Permata Bank economist Josua Pardede attributed to the typical slowdown during the Eid holidays. 'Additionally, weaker prices for key commodities like crude palm oil and coal are expected to have contributed to the monthly decline,' he said. Exports to the US jumped 18.4 per cent year on year in April, with Bank Central Asia economist David Sumual attributing the rise to front-loading shipments ahead of impending US tariffs. Indonesia's non-oil and gas exports to the US were driven by machinery and electrical equipment, up 17 per cent, alongside solid gains in footwear and apparel. This helped deliver a US$5.4 billion trade surplus with the US from January to April – now under scrutiny as Washington considers a 32 per cent tariff on key sectors. In contrast, Indonesia posted a US$6.9 billion trade deficit with China over the same period, driven by surging imports of machinery, vehicles parts and electronics. Sumual said: 'It appears there is also dumping of goods from China ahead of the tariff deadline.' Maybank economist Brian Lee said the rerouting and import surge from China will likely ease in May and reduce pressure on the trade surplus, given China's trade deal with the US that cut tariffs to 30 per cent from 145 per cent for 90 days. Economists at Samuel Sekuritas wrote while exports are expected to stay positive, global uncertainties and a weaker rupiah could limit gains and raise import costs. — ELISA VALENTA The Philippines: modest tariffs, muted trade Front-loading tied to the Philippines tapered off after the announcement of the tariffs, which imposed a relatively modest 17 per cent levy – the second-lowest among Asean countries after Singapore. If enacted after the 90-day pause, the lower tariff could make Philippine goods more competitive in the US, positioning the net-importing nation to attract diverted trade and investment despite its limited reliance on export-led growth. 'We'll have to wait and see if this does materialise into better export volumes to the US,' said Nicholas Antonio T Mapa, chief economist at Metropolitan Bank. ANZ Research expects a trade agreement between Manila and Washington could be struck by the end of June, with a possible lower tariff rate of 10 to 15 per cent. 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Business Times
6 days ago
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The best deal with Trump is no deal
THE 46th Asean Summit took place this week against a backdrop of a changing world order, with multilateralism and globalisation in retreat. As Asean leaders confront the global economic uncertainty, created by the current US administration's policies, the most strategic response to President Donald Trump's tariff-driven approach is disengagement – not negotiation or appeasement. Ignoring Trump is not passivity – it is strategic defiance. By refusing to be drawn into asymmetrical negotiations, Asean can safeguard its interests and let the costs of protectionism fall squarely on the US economy. Trump's depiction of China, Japan, South Korea, India, and Asean as job thieves is not just misleading – it is a deliberate distortion of economic reality. From 2021 to 2024, US unemployment averaged just 3.8 per cent – among the lowest not only in the developed world, but globally – exposing the falsehood that foreign economies are siphoning off American jobs. In fact, the US economy soared to a record US$29.3 trillion in 2024, retaining its status as the world's largest economy, with per capita income of US$86,000. Structurally, 81 per cent of US GDP stems from services, which employ 79 per cent of American workers – in fact 91 per cent when including the self-employed. Manufacturing, though politically resonant, accounts for only a sliver of employment. Tariffs, particularly against Asia, under the guise of 'saving jobs', distort this reality and risk harming the very global networks that power US growth. For decades, Asean has contributed significantly to US prosperity. In goods, Asean's supply of semiconductors and machinery is critical to sustaining US manufacturing competitiveness. At the same time, the region's demand for American aircraft and defence equipment supports thousands of high-skilled jobs across the United States. In services, Asean is a major destination for US exports – ranging from finance and education to digital platforms – contributing significantly to America's trade surplus. In 2024, the US recorded a US$24.4 billion services surplus with Asean. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up More broadly, US services exports reached US$1.11 trillion, while imports totalled US$812.2 billion, yielding a global services surplus of US$293.4 billion (Bureau of Economic Analysis). On investment, US firms channelled US$328.8 billion into Asean in 2024 alone, accounting for 22.5 per cent of total foreign direct investment into the region. Risks of aggression Yet, Trump's tariff aggression risks unravelling this mutually beneficial relationship. Punitive tariffs risk alienating a trillion-dollar trade partner, disrupting supply chains, and weakening America's own economic prospects. For over five decades, Asean has anchored US prosperity – economically, strategically, and diplomatically – by supplying essential intermediate goods, absorbing US services exports, and generating trillions in annual revenue for American companies operating throughout the region. How, then, should Asean respond to Trump's destructive approach? First, Asean should lead with principles. Trump's exploitation of trade in goods imbalances to justify tariffs must not be rewarded with preferential treatment. Disengagement from Trump is a firm reaffirmation of Asean's core values: non-alignment, multilateralism, and mutual respect. Asean should underscore its unwavering commitment to rules-based trade and regional stability. It remains open to partnerships with any country that respects international norms and embraces equitable cooperation. By insisting on World Trade Organization (WTO) principles of reciprocity and most-favoured nation (MFN) treatment, Asean rejects Trump's zero-sum logic. These principles were reaffirmed in the Asean Leaders' Statement of May 26-27, 2025 – a unified rejection of discriminatory trade practices. Asean must also partner other regions to uphold these rules. In an era of growing economic fragmentation, Asean's adherence to multilateralism offers one of the few remaining anchors of rules-based global trade. Second, Asean must mobilise the American business community, whose long-term interests lie in open, stable markets. These companies have profited enormously from Asean's openness. It is time they defend the very conditions that enabled their success. From Boeing to Apple, Microsoft, IBM, and Intel; from Freeport, ExxonMobil, and Chevron to platforms such as Starlink; from global consumer names such as McDonald's, Coca-Cola, Nike, and Unilever to banks such as Citibank, Visa, and Mastercard; from insurers AIG and Chubb to law firms Skadden and Baker McKenzie and consultancies such as McKinsey and BCG – these firms flourish on open markets and regional cooperation. Yet if influential corporations – such as Elon Musk's Tesla and Starlink, or Meta (which owns Facebook and Instagram, whose leadership aligns with Trump's nationalist agenda) or media outlets such as Fox News, which amplify protectionist rhetoric – continue to disregard Asean's strategic relevance, the region must take note. These firms must harness their influence in Washington to counter economic nationalism. If they fail to speak up – or worse, remain complicit – Asean is right to reconsider the privileged access they enjoy in its markets. Asean should make clear that market access is not a blank cheque. In today's contested global economy, partnerships must be reciprocal. If US firms benefit from Asean's openness but fail to defend the frameworks that enable it, Asean has every right to reassess their privileged access. Last, Asean should let the US deal with the consequences of its own policies. Trump has made clear – through sweeping tariffs and nationalist rhetoric – that he has little regard for Asean, or for America's own longstanding allies, including the European Union, Canada, Japan, and South Korea. He is unlikely to change. He responds neither to diplomacy nor to data, but only to two constituencies: his domestic political base and a narrow circle of business elites. So let them feel the impact. If Trump slaps tariffs on Asean, it will be US firms – those dependent on South-east Asian supply chains – who will bear the consequences: higher costs, logistical delays, and eroded competitiveness. Ultimately, they may be the only voices he listens to. Strategic discipline Trying to reason with Trump is a dead end. Asean should instead invest in building economic resilience: deepen regional integration, diversify trade partners, and expand strategic alliances. Let the pressure come from within. This is not retreat – it is strategic discipline. Sometimes, the most strategic move is to stand back and let the costs of bad policy speak louder than diplomacy ever could. Moving forward, following the conclusion of the Asean summit and the Asean-GCC-China Economic Forum, there is now a critical window for Asean to assert a bold economic agenda. The region must double down on intra-Asean trade, fully utilise the Asean+1 free trade agreements and Regional Comprehensive Economic Partnership (RCEP), strengthen Asean+3 with China, Japan, and Korea cooperation, and deepen strategic ties with partners across the EU, Middle East, Eurasia, Latin America, and Africa. Diversifying not only trade and investment but also currency use and payment systems will be essential to building a more autonomous and future-ready Asean. As Trump turns inwards, Asean must turn outwards. The writer is secretary general of the International Economic Association. The commentary reflects her personal views.
