Latest news with #Neoh
New Straits Times
5 days ago
- Business
- New Straits Times
Petronas signals long-term LNG commitment in Canada
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas)'s continued presence in Canada highlights its long-term commitment to natural gas and liquefied natural gas (LNG) as a core pillar of its energy transition strategy. According to Tradeview Capital fund manager Neoh Jia Man, natural gas remains a vital transitional fuel for Petronas, which is expected to sustain investments in LNG and related infrastructure. However, Neoh said Petronas may eventually divest its Canadian upstream operations while retaining its stake in LNG Canada, a move that would still reflect its strategic focus on LNG and align with its long-term plans in the region. "In our view, Canada's low-cost natural gas and crude oil resources remain attractive to most energy companies. "However, cultural differences and a lack of local operational expertise may present execution challenges for some Asian energy firms," he told Business Times. As such, Neoh said that over the long term, as Petronas shifts away from traditional fossil fuels, a full exit from Canada remains possible. He noted that this is likely unless the company identifies new opportunities that align with its evolving portfolio in renewable energy, hydrogen, green mobility, speciality chemicals, carbon capture and storage, or bio-based products. Petronas has denied reports suggesting it intends to exit Canada, reaffirming its strong, long-term commitment to the country's energy sector. In a brief statement issued on Wednesday, the Malaysian state-owned energy firm clarified that claims of its withdrawal from Canada are incorrect. This statement follows a Bloomberg report on Tuesday indicating that Petronas is evaluating strategic options for its Canadian subsidiary, formerly Progress Energy Resources Corp. According to sources cited by Bloomberg, Petronas is working with a financial advisor and gauging interest from potential buyers. The Canadian business is estimated to be worth between US$6 billion and US$7 billion. Reports suggest that Petronas is considering either a full or partial sale, with the possibility of selling only a minority stake depending on investor interest. Meanwhile, Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan noted that Petronas has a history of reassessing its LNG investments in Canada based on prevailing market conditions. He pointed out that back in 2017, Petronas withdrew from the Pacific Northwest LNG project following a period of low LNG prices, while simultaneously focusing on the Rapid LNG project in Pengerang, Malaysia. Azmi suggested that this approach reflects a strategic prioritisation rather than a complete withdrawal from Canadian projects. Another industry expert said Petronas' ongoing commitment to Canada demonstrates confidence in the value of Canadian LNG assets and reflects a balanced strategy to diversify its portfolio across stable markets. He noted that Canada offers political stability, strong regulatory frameworks, and access to the Pacific market, making it an attractive and reliable destination for Asian energy investments, especially as demand in Asia continues to grow. "While companies routinely review their portfolios, Petronas' current stance suggests it sees continued value in Canada. "However, any future decisions to exit from Canada would likely be driven by long-term market trends," he said. Petronas entered Canada in 2012 by acquiring Progress Energy for US$5.3 billion, securing shale gas assets in northeastern British Columbia. Currently, Petronas operates the North Montney Joint Venture (NMJV) and holds a 25 per cent share in LNG Canada, a significant US$40 billion liquefied natural gas project nearing completion in Kitimat, British Columbia. Other LNG Canada partners include Shell plc, PetroChina, Mitsubishi Corp., and Korea Gas Corp. The LNG facility is set to be one of the lowest in carbon emissions globally and is preparing to ship its first cargo later this year. Petronas reaffirmed its commitment to supplying lower-carbon, reliable Canadian liquefied natural gas to global markets for the long term.
New Straits Times
22-05-2025
- Business
- New Straits Times
PN17 companies struggle to stay afloat
KUALA LUMPUR: The potential removal of companies from Bursa Malaysia for failing to submit financial regularisation plans is becoming an increasingly familiar reality in the 2025 corporate landscape. Since January, at least one company has been shown the door, while two more under Practice Note 17 (PN17) face potential delisting amid an increasingly challenging global economic environment. Last month, Reach Energy Bhd became the first to be delisted this year, on April 29, after its third extension request to submit a regularisation plan was rejected. The oil and gas company, once a high-profile special purpose acquisition company (SPAC), had failed to demonstrate a viable turnaround strategy despite repeated assurances. It slipped into PN17 in April 2023, after the shareholders' equity fell below 50 per cent of its share capital as of the fiscal year ended Dec 31, 2022. In terms of financial performance, for the fiscal year ended Dec 31, 2024, Reach Energy reported revenue of RM207.83 million, a slight decrease from RM208.67 million in the previous year. The company recorded a net loss of RM18.11 million, an improvement compared to the RM208.3 million loss in the prior year. On Tuesday, Sarawak Cable Bhd and Annum Bhd were flagged for potential delisting after Bursa rejected their appeals for more time. Both companies are scheduled for trading suspension on May 28, with delisting set for May 30, unless a fresh appeal is submitted and accepted. In early trade, shares of Sarawak Cable and Annum plunged by 56 per cent and 70 per cent, respectively. Sarawak Cable continued to slide throughout the day, ending 62.5 per cent lower at 3 sen with a total of 59.1 million shares traded. Annum tumbled 80 per cent, losing 4 sen to close at 1 sen, with 7.9 million shares changing hands. Tradeview Capital fund manager Neoh Jia Man said while the share price crashes may appear dramatic, they are not out of the ordinary within the current market context. "The share price performance of both firms on Wednesday is not unusual, as it merely reflects the broader weak market sentiment," he told Business Times. Neoh advised investors not to concentrate only on day-to-day share price changes, but to pay closer attention to shifts in a company's fundamentals, especially when firms fail to stabilise their operations, increasing the risk of delisting. "Although the technical triggers for their classification as PN17 or GN3 (under Paragraph 8.03A) differ, the underlying issue is the same: both firms are considered to have insufficient levels of operations to meet ongoing listing requirements," he added. He said there are not any particular industries or sectors that are more prone to delisting, as the risk of being delisted due to inadequate business operations is generally not tied to any specific sector. "Investors should seek to understand the root causes of the potential delisting in each case. It is crucial to engage management on their recovery plans, as this may offer insight into the likelihood of a white knight emergence or the viability of a new business plan," he added. Meanwhile, several other distressed firms have received temporary reprieve. Pertama Digital Bhd and Iskandar Waterfront City Bhd were recently granted six-month extensions by Bursa to finalise their respective regularisation plans. Majuperak Holdings Bhd, a Perak state-linked developer, was given until October 11 to submit its proposal. The developer's turnaround strategy involves several key elements, including acquiring strategic assets, selling off underperforming properties, and investing in renewable energy initiatives. PN17 and Guidance Note 3 (GN3) are designations by Bursa Malaysia for financially distressed companies listed on the stock exchange. These classifications apply to firms experiencing issues such as shareholders' equity dropping below 25 per cent of paid-up capital or loan defaults. Affected companies are required to submit a regularisation plan, typically within 12 months, or risk suspension and potential delisting. Currently, 24 companies are classified under PN17 and GN3 on Bursa Malaysia, representing about 2.34 per cent of the 1,025 listings across the Main and ACE Markets.
New Straits Times
25-04-2025
- Business
- New Straits Times
MBI Ponzi scheme targeted foreigners unfamiliar with local market [WATCH]
KUALA LUMPUR: Investment scams like the now-exposed Mobility Beyond Imagination (MBI) scheme often target foreign investors who are less familiar with local market conditions, says fund manager Neoh Jia Man. Neoh, of Tradeview Capital, said it is not uncommon for schemes originating in one country to lure victims from another, precisely because the latter lack on-the-ground knowledge to spot red flags. "These scams are designed to exploit gaps in awareness," Neoh told the New Straits Times' Beyond the Headlines. "When you're unfamiliar with how things operate locally — the regulations, the players, the red flags — you're far more vulnerable." Neoh added that investors should focus on markets where they have a "homegrown advantage" — familiarity with the business environment, regulations, and on-the-ground realities. "That local knowledge gives you an edge. There were actually a lot of obvious warning signs in MBI's case that locals might have picked up on — but foreigners wouldn't necessarily recognise them," he said. MBI, founded by Tedy Teow Wooi Huat, is believed to have defrauded more than 11 million people globally. On April 11, four 'Datuks' — including two lawyers — were among eight people arrested in connection with MBI. Inspector-General of Police Tan Sri Razarudin Husain said the federal police's Anti-Money Laundering Unit has so far frozen and seized assets and accounts worth RM3.17 billion. The arrests and seizures were made under Op Northern Star, a cross-border operation launched after an Interpol Red Notice was issued on March 20. Assets linked to MBI's Ponzi-style operation — based in a neighbouring country — are still being traced.
New Straits Times
25-04-2025
- Business
- New Straits Times
Greed, false confidence drove MBI scheme, says fund manager [WATCH]
KUALA LUMPUR: The now-defunct Mobility Beyond Imagination (MBI) investment scheme thrived for years by feeding off investor greed and projecting a façade of legitimacy through physical assets, says fund manager Neoh Jia Man. Speaking to the New Straits Times' Beyond the Headlines, Neoh, of Tradeview Capital, said investors are often aware of the risks behind schemes promising high returns — but greed frequently overrides sound judgment. "People who invest in these schemes are often well-informed, but they still fall for promises that are simply too good to be true," he said. Neoh added that MBI stood out from other scams because it was backed by a wide range of physical assets, including shopping malls, hotels, property projects and even durian orchards. "These tangible assets gave investors a false sense of security. Unlike other schemes based purely on digital or virtual offerings, MBI's real-world presence gave the illusion of credibility," he said. He added that some investors may have suspected the scheme was unsustainable, but stayed on as long as the payouts kept coming. "They were blinded by greed. There's also the belief that because the company had so many visible assets, the money game could last longer than others — and in MBI's case, it did." Authorities believe the MBI scheme defrauded more than 11 million people. Police have since identified billions more in assets potentially linked to the scam. On April 11, four 'Datuks' — including two lawyers — were among eight people arrested in connection with MBI. Inspector-General of Police Tan Sri Razarudin Husain said the federal police's Anti-Money Laundering Unit has so far frozen and seized assets and accounts worth RM3.17 billion. The arrests and seizures were made under Op Northern Star, a cross-border operation launched after an Interpol Red Notice was issued on March 20. Assets linked to MBI's Ponzi-style operation — based in a neighbouring country — are still being traced.
New Straits Times
23-04-2025
- Business
- New Straits Times
Malaysia seen weathering US solar tariffs better than peers
KUALA LUMPUR: Malaysia may be less affected than Cambodia, Thailand and Vietnam as the four countries brace for steep new tariffs by the US on solar panel imports from Southeast Asia. Hence, Malaysia should maintain its key role in the regional solar supply chain, industry observers said. On Monday, the US Department of Commerce announced plans to slap up to 3,521 per cent tariffs on solar products from the region. The proposed duties are part of an effort to counter alleged Chinese subsidies and dumping practices in the solar sector. The tariffs, which target companies operating in Cambodia, Thailand, Malaysia, and Vietnam, are still subject to approval by the US International Trade Commission with a final decision expected by June 2. Tradeview Capital fund manager Neoh Jia Man noted that if the duties are approved, Malaysia may fare better than its regional peers. He said this is primarily because the combined US anti-dumping and countervailing duties on Malaysian solar photovoltaic (PV) producers, excluding six named firms, stand at 34.41 per cent. This is significantly lower than the general rates of 651.85 per cent for Cambodia, 375.19 per cent for Thailand and 395.85 per cent for Vietnam. "As such, Malaysia is likely to maintain a meaningful role in the regional solar supply chain," he told Business Times. "However, we do not rule out the possibility that some producers may consider relocating operations to jurisdictions not affected by these duties." Nevertheless, Neoh said there remains a possibility that some producers may consider relocating their operations to jurisdictions not impacted by the proposed duties. This, he added, could very well be the underlying intention of the US government. "The imposition of such high duties appears to be aimed at incentivising domestic solar PV production in the US. "Given the scale of these duties, they could prove effective in gradually redirecting solar sourcing away from Southeast Asia," he said. Neoh also expects expect foreign direct investment (FDI) into the region's solar PV manufacturing sector to be adversely affected, at least in the near term. However, he does not foresee a major impact on broader regional stock markets, as many key solar PV manufacturers operating in Southeast Asia are mainland Chinese companies. UniKL Business School economic analyst associate professor Dr Aimi Zulhazmi Abdul Rashid said Malaysia's tariff rate is the lowest among Southeast Asian countries. This helps position the country at the most favourable end of the spectrum and helping to maintain its competitiveness. He said this is especially beneficial for Malaysia, as the country is no longer an ideal destination for low-cost manufacturing and is ready to transition into high value-added industries. "In terms of production costs, we are not as competitive as Vietnam and Cambodia. "This upward shift aligns with the objectives of the New Industrial Master Plan 2030 (NIMP), which aims to increase the manufacturing sector's value-added by 61 percent to RM587.5 billion by 2030, while also creating more jobs and raising median salaries," he added. Aimi also acknowledged that despite these advantages, the region's role as a key global solar manufacturer has come under significant pressure. He said this could potentially divert solar investments to countries outside Southeast Asia and result in the loss of potential foreign direct investment. However, he emphasised that Southeast Asia remains an attractive region, both as a manufacturing base and as a consumer market. "Asean has a growing population of 660 million and a gross domestic product of US$4 trillion, with an average annual growth rate of four percent. It is the third-largest economy in Asia and the fifth-largest in the world. "The rising size of the middle-income segment and increasing purchasing power over the years certainly make Asean irresistible to investors. "The solar tariff imposed by the US is a minor setback for the region if it is implemented. However, other industries continue to attract investors on a large scale," he added.
