Latest news with #MIDF
New Straits Times
a day ago
- Business
- New Straits Times
MIDF leveraging Islamic finance to drive industrial transformation
KUALA LUMPUR: The Malaysian Industrial Development Finance Bhd (MIDF) is leveraging Islamic finance to accelerate the country's industrial transformation, particularly in high-growth sectors such as advanced manufacturing, green technology, the digital economy, and halal industries. Its vice president and head of marketing and business advisory, Fadzlan Abu Bakar said Islamic finance serves as a strategic enabler to support Malaysia's developmental goals under the New Industrial Master Plan (NIMP) 2030. "We view Islamic finance not only as a funding tool but as a catalyst that supports ethical, inclusive, and sustainable industrial growth," he said in a statement. As a financial services provider, MIDF offers Shariah-compliant financing solutions that promote interest-free funding and equitable risk-sharing, benefitting especially small and medium enterprises (SMEs) seeking to scale operations and adopt new technologies. Among its flagship programmes is the Halal Accreditation and Technology Improvement (HATI) scheme, which addresses two key challenges faced by SMEs — halal certification and technological enhancement. "Through an RM100 million fund allocation, the scheme assists SMEs in sectors such as food and beverages, cosmetics, logistics, and pharmaceuticals in obtaining halal certification while upgrading their technological capabilities," it said. It noted that this initiative was carried out in collaboration with the Halal Development Corporation (HDC), Department of Islamic Development Malaysia (JAKIM), and other strategic partners. MIDF also plans to roll out more Shariah-compliant financing instruments over the next three to five years, tailored to SMEs and mid-sized firms while accelerating the digitalisation of Islamic finance delivery through fintech platforms. To this end, Fadzlan said MIDF is working on expanding equity-based instruments like Musharakah and Mudarabah, and exploring peer-to-peer Islamic financing and blockchain-based platforms to improve transparency and accessibility. It also aims to integrate environmental, social and governance (ESG) elements into its Islamic finance framework to ensure alignment with Malaysia's sustainability agenda. MIDF currently manages several ESG-focused government funds, including the Sustainable and Green Biz Financing and the Sustainable Mobility Biz Financing schemes. "These initiatives support Malaysian businesses in adopting cleaner technologies, improving energy efficiency, and contributing to the growth of the electric vehicle ecosystem. "MIDF will continue to align its financing mandates with key national policies such as the National Energy Transition Roadmap and the 12th Malaysia Plan to advance the country's low-carbon transition and promote an inclusive, sustainable industrial ecosystem," it added. Meanwhile, in conjunction with Expo 2025 Osaka, MIDF hosted a forum titled "The Benefits of Islamic Finance in Supporting a Resilient Global Economy" at the Business Hall of the Malaysia Pavilion. The forum provided an insight on Islamic finance's contribution in fostering a more resilient and inclusive global financial system, at the same time reinforcing Malaysia's position as a thought leader in Islamic finance and sustainable investment.
Barnama
a day ago
- Business
- Barnama
MIDF Leveraging Islamic Finance To Drive Industrial Transformation
BUSINESS KUALA LUMPUR, June 4 (Bernama) -- The Malaysian Industrial Development Finance Bhd (MIDF) is leveraging Islamic finance to accelerate the country's industrial transformation, particularly in high-growth sectors such as advanced manufacturing, green technology, the digital economy, and halal industries. Its vice president and head of marketing and business advisory, Fadzlan Abu Bakar said Islamic finance serves as a strategic enabler to support Malaysia's developmental goals under the New Industrial Master Plan (NIMP) 2030. 'We view Islamic finance not only as a funding tool but as a catalyst that supports ethical, inclusive, and sustainable industrial growth,' he said in a statement. As a financial services provider, MIDF offers Shariah-compliant financing solutions that promote interest-free funding and equitable risk-sharing, benefitting especially small and medium enterprises (SMEs) seeking to scale operations and adopt new technologies. Among its flagship programmes is the Halal Accreditation and Technology Improvement (HATI) scheme, which addresses two key challenges faced by SMEs — halal certification and technological enhancement. "Through an RM100 million fund allocation, the scheme assists SMEs in sectors such as food and beverages, cosmetics, logistics, and pharmaceuticals in obtaining halal certification while upgrading their technological capabilities," it said. It noted that this initiative was carried out in collaboration with the Halal Development Corporation (HDC), Department of Islamic Development Malaysia (JAKIM), and other strategic partners. MIDF also plans to roll out more Shariah-compliant financing instruments over the next three to five years, tailored to SMEs and mid-sized firms while accelerating the digitalisation of Islamic finance delivery through fintech platforms. To this end, Fadzlan said MIDF is working on expanding equity-based instruments like Musharakah and Mudarabah, and exploring peer-to-peer Islamic financing and blockchain-based platforms to improve transparency and accessibility.
New Straits Times
2 days ago
- Business
- New Straits Times
Deleum's 70pct stake in PT OSA to boost Southeast Asia presence
KUALA LUMPUR: Oil and gas services provider Deleum Bhd's 70 per cent acquisition of PT OSA Industries Indonesia (PT OSA) for RM31.3 million is set to enhance its presence in Southeast Asia, strengthen its technical expertise in valve services, and broaden its operations within Indonesia. In a research note today, MIDF Amanah Investment Bank (MIDF) opined that the acquisition, carried out through Deleum's wholly owned subsidiary Deleum Services Sdn Bhd, also complemented the group's current valve business under its subsidiary, Penaga Dresser Sdn Bhd. "The acquisition aligns with the group's expected growth trajectory, and we had anticipated it as a logical step to support long-term operational benefits. "Going forward, Deleum will likely focus on integrating PT OSA's operations and aligning business processes," it said. MIDF said the integration with PT OSA is expected to unlock synergies such as improving valve lifecycle management services, streamlining delivery mechanisms, and fostering knowledge sharing with the Indonesian team. "We make no changes in its forecast projection for Deleum, as we had factored in this acquisition in its estimates. "We maintain our 'buy' call, with a target price of RM1.92," MIDF said.
BusinessToday
3 days ago
- Business
- BusinessToday
Malaysia's PMI Remains Contracted Amid Weak Demand And Tariff Concerns
Malaysia's Manufacturing Purchasing Managers' Index (PMI) saw a marginal increase to 48.8 in May, up from 48.6 in April, according to the latest data. However, the index remained below the neutral 50.0 mark for the twelfth consecutive month since June 2024, signaling a continued, albeit mild, deterioration in manufacturing conditions midway through the second quarter of 2025. Despite the prolonged contraction, economists anticipate that Malaysia's Manufacturing GDP growth in 2Q25 is likely to remain relatively stable, mirroring the performance of the previous quarters (1Q25: 4.1%; 4Q24: 4.2%). Weak Demand Persists, Weighing on Key Indicators: The latest PMI reading highlights the persistent challenge of weak demand. Total new orders continued their downward trend for the third straight month, although the pace of decline has eased. Notably, new export orders also contracted for the sixth consecutive month, indicating sluggish external demand. Finished goods inventories continued to decline, suggesting manufacturers are adjusting to lower order volumes. While the rate of inventory reduction has slowed, overall stock levels remain lower. Rising Input Costs Amid Stable Output Prices: Manufacturers faced increased pressure from rising input costs in May. Input prices saw their most significant jump since November 2024, primarily attributed to unfavorable exchange rates and the impact of new tariffs, which have increased the cost of imported raw materials. Interestingly, despite the higher input costs, output charges remained unchanged in May, ending a four-month period of price declines. This suggests that manufacturers are absorbing some of the cost increases rather than passing them on to consumers. Business Optimism Dips Amid Global Uncertainties: Business sentiment within the manufacturing sector has taken a hit, falling to its lowest level since June 2021. While firms expressed relative optimism for better demand conditions in the coming year, the prevailing concerns surrounding US trade tensions and ongoing labor shortages have dampened overall confidence. Employment levels remained steady in May, halting a seven-month streak of job cuts. Companies continued to work through outstanding orders, with backlogs declining slightly. Outlook: Domestic Demand to Provide Cushion Amid Tariff Uncertainty: MIDF Research has revised its 2025 GDP growth forecast for Malaysia downwards to 4.3% (from 4.8%), following a weaker-than-expected performance in 1Q25 (4.4%). The downgrade also factors in anticipated headwinds in the second half of the year stemming from global trade uncertainty linked to potential US tariffs. While the possibility of a favorable Malaysia-US trade deal exists, a return to pre-2024 tariff levels is deemed unlikely. Despite these external challenges, MIDF believes that Malaysia could still benefit from trade and investment diversion resulting from the ongoing US-China decoupling, leveraging its strategic location and diversified export portfolio. Domestically, the services and construction sectors are expected to be key drivers of growth, providing a buffer against external pressures Related
The Star
27-05-2025
- Business
- The Star
MIDF recommends investors to accept Felda's RM1.30 privatisation offer
KUALA LUMPUR: MIDF Amanah Investment Bank Bhd has recommended investors to accept Federal Land Development Authority's (Felda) offer to buy all remaining shares in FGV Holdings Bhd (FGV). In a note today, MIDF said the RM1.30 offer price represents a 12 per cent premium over its fair value estimate of RM1.16. "Notably, Felda and its persons acting in concert (PACs) collectively hold approximately 86.93 per cent of FGV's total issued shares. The offer, priced at RM1.30 per share - similar to the bid made in 2020 - aims to raise their stake to at least 90 per cent, which would allow Felda to delist FGV,' it said. MIDF said the stock is currently valued at 16.7 times price-to-earnings ratio (PER) based on the forecast financial year (FY) 2025 earnings per share of 7.6 sen, which is 8.6 per cent below the integrated plantation sector's average PER of 18.3 times. "If valuation were instead based on FY2024 earnings, the implied PER would be 17.2 times. Although the historical and forward implied PERs are notably below FGV's five-year average of 21.7 times and lag behind sector valuations, we view this as a fair benchmark given the company's mixed outlook,' it said. MIDF said the rationale for the takeover reaffirms Felda's objective to fully privatise FGV and consolidate its ownership and strategic control over the group. "Felda has clearly stated that it does not intend to maintain FGV's listing status upon completion of the offer. Should Felda and its PACs reach the 90 per cent ownership threshold, Bursa Malaysia will suspend trading of FGV shares within five market days, after which the delisting process will be initiated as per Bursa's listing requirements. "If successful, the privatisation is expected to streamline Felda's operational oversight, align FGV's strategic direction with broader national interests, and potentially unlock long-term value through improved efficiency and coordination across the group,' it added. - Bernama Trading ideas: Public Bank, U Mobile, Kerjaya, Samaiden, Titijaya, PeterLabs, Shin Yang, NexG, Globaltec, Maybank, AMMB, PetGas, Hume Cement
