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New Straits Times
22-07-2025
- Business
- New Straits Times
Improvement driven by E&E and reforms
KUALA LUMPUR: Malaysia's rise in the IMD World Competitiveness Ranking 2025 was driven by its electrical and electronics (E&E) sector and regulatory efficiency reforms. The Malaysia Productivity Corporation (MPC) said the improved standing reflects sustained industrial momentum and government-led efforts to create a more business-friendly environment. A key initiative is the Industrial Green Lane (IGL), which expedites development and licensing approvals for industrial projects. "Malaysia's improved competitiveness reflects not just industrial strength, but regulatory transformation on the ground," MPC director-general Datuk Zahid Ismail said in a statement. "Through IGL, we are enabling faster, cleaner and more predictable approvals, essential for investment, productivity and growth." The IGL model streamlines approvals via simultaneous technical briefings, fast-track licence processing and licence issuance within 24 hours of the certificate of completion and compliance. This approach has generated RM0.5 billion in local authority revenue, created 20,000 jobs and facilitated billions in investments. Last year, Malaysia approved RM378.5 billion in total investments, including RM120.5 billion in the manufacturing sector. "The E&E industry led the way with RM55.8 billion, making it the largest sub-sector, supported by 73.8 per cent of foreign direct investment. These outcomes align with the National Semiconductor Strategy and the New Industrial Master Plan," MPC said. However, issues like Customs efficiency, trade transparency and documentation handling remain hurdles to export growth. MPC said reducing non-tariff measures and improving trade facilitation are critical for enhancing export competitiveness. "The E&E Productivity Nexus, alongside national agencies, is addressing these challenges through digital adoption, artificial intelligence and Internet of Things-driven energy efficiency and regulatory coordination. "There is also continued emphasis on helping small and medium enterprises adapt to global standards. The government aims to expand IGL implementation nationwide, improve logistics infrastructure and drive data-driven regulatory reforms."
New Straits Times
21-07-2025
- Business
- New Straits Times
Malaysia rises in IMD rankings, driven by green lane reforms and E&E growth
KUALA LUMPUR: Malaysia has moved up the ranks in the IMD World Competitiveness Ranking (WCR) 2025, driven by its electrical and electronics (E&E) sector and regulatory efficiency reforms. The Malaysia Productivity Corporation (MPC) said the improved standing reflects sustained industrial momentum and government-led efforts to create a more business-friendly environment. A key initiative is the Industrial Green Lane (IGL), which expedites development and licensing approvals for industrial projects. "Malaysia's improved competitiveness reflects not just industrial strength, but regulatory transformation on the ground," Director-General Datuk Zahid Ismail said in a statement. "Through IGL, we are enabling faster, cleaner, and more predictable approvals, essential for investment, productivity, and growth." The IGL model streamlines approvals via simultaneous technical briefings, fast-track licence processing and licence issuance within 24 hours of the certificate of completion and compliance. This approach has so far generated RM0.5 billion in local authority revenue, created 20,000 jobs and facilitated billions in investments. In 2024, Malaysia approved RM378.5 billion in total investments, including RM120.5 billion in the manufacturing sector. "The E&E industry led the way with RM55.8 billion, making it the largest subsector, supported by 73.8 per cent foreign direct investment. "The sector continues to thrive through deeper integration into global semiconductor value chains, creation of high-skilled jobs, and stronger supplier ecosystems. "These outcomes align with the National Semiconductor Strategy and the New Industrial Master Plan," it said. Despite the gains, issues like customs efficiency, trade transparency and documentation handling, highlighted in the WCR 2025, remain hurdles to export growth. MPC noted that reducing non-tariff measures and improving trade facilitation are critical for enhancing Malaysia's export competitiveness. "The E&E Productivity Nexus, alongside national agencies, is addressing these challenges through digital adoption, artificial intelligence and Internet of Things-driven energy efficiency and regulatory coordination," it said. "There is also continued emphasis on helping small and medium enterprises adapt to global standards. The government aims to expand IGL implementation nationwide, improve logistics infrastructure and drive data-driven regulatory reforms," it added.
New Straits Times
01-05-2025
- Business
- New Straits Times
Public Bank may face credit cost upside amid softer outlook: CIMB
KUALA LUMPUR: Public Bank Bhd (PBB) could face upward pressure on credit costs beginning April 2025, driven by a softer macroeconomic environment and uncertainties linked to global trade tensions, according to a note by CIMB Securities Sdn Bhd. CIMB Securities said it expects adjustments in PBB's general provisioning for Stage 1 and Stage 2 loans in response to changes in macroeconomic variables, particularly lower gross domestic product (GDP) forecasts. These revisions could be reflected in PBB's upcoming first quarter of financial year 2025 (1QFY25) results briefing scheduled for May 21, 21,2025. "Therefore, we believe there may be some upward revision to PBB's credit cost target," CIMB Securities stated, noting that PBB had previously guided for credit costs to remain at the low single-digit level for FY25, with a gradual write-back of overlay provisions. CIMB Securities has already revised its credit cost forecast for PBB to 22 basis points, up from 15 basis points, following the Liberation Day tariff announcement, which heightened concerns around global trade disruptions. Despite this, PBB's direct exposure to potentially vulnerable trade sectors remains limited. Based on CIMB Securities' checks, the bank's exposure to domestic trade-related loans, including both exports and imports, stands at RM5 billion — just 1.2 per cent of its total loan portfolio of RM424 billion. In the electrical and electronics sector, PBB's loan exposure is even smaller, amounting to RM0.5 billion, or 0.1 per cent of total loans. Within this, loans specifically tied to the semiconductor segment represent just RM36 million, or 0.01 per cent of total loans. PBB had indicated that potential second-order ripple effects from the tariffs are difficult to gauge at this juncture. As for its Indochina operations, PBB hinted that it is watchful of exposures in Cambodia and Vietnam, which may hit a soft patch if the US proceeds with the 49 per cent and 46 per cent reciprocal tariffs on Cambodia and Vietnam, respectively, after the 90-day pause. Given that pre-tax contributions from the Cambodia and Vietnam operations are not large, CIMB Securities do not expect a significant change to its credit cost assumption of 22 basis points in FY25. Overall, CIMB Securities has maintained a "Buy" call on PBB with an unchanged target price of RM5.10. The firm said key catalysts for PBB include resilient asset quality, decent dividend yield, and release of capital from Basel III changes next year, while downside risks include higher-than-expected credit costs, lower-than-expected loan growth, and elevated cost of funds.
Yahoo
12-02-2025
- Business
- Yahoo
Estimating The Fair Value Of TMC Life Sciences Berhad (KLSE:TMCLIFE)
The projected fair value for TMC Life Sciences Berhad is RM0.50 based on Dividend Discount Model Current share price of RM0.47 suggests TMC Life Sciences Berhad is potentially trading close to its fair value When compared to theindustry average discount to fair value of 29%, TMC Life Sciences Berhad's competitors seem to be trading at a greater discount In this article we are going to estimate the intrinsic value of TMC Life Sciences Berhad (KLSE:TMCLIFE) by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. See our latest analysis for TMC Life Sciences Berhad We have to calculate the value of TMC Life Sciences Berhad slightly differently to other stocks because it is a healthcare company. In this approach dividends per share (DPS) are used, as free cash flow is difficult to estimate and often not reported by analysts. Unless a company pays out the majority of its FCF as a dividend, this method will typically underestimate the value of the stock. We use the Gordon Growth Model, which assumes dividend will grow into perpetuity at a rate that can be sustained. The dividend is expected to grow at an annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We then discount this figure to today's value at a cost of equity of 8.0%. Relative to the current share price of RM0.5, the company appears about fair value at a 5.4% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate) = RM0.02 / (8.0% – 3.6%) = RM0.5 We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at TMC Life Sciences Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.0%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is well covered by earnings. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Healthcare market. Opportunity Current share price is below our estimate of fair value. Lack of analyst coverage makes it difficult to determine TMCLIFE's earnings prospects. Threat Debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For TMC Life Sciences Berhad, we've compiled three additional elements you should consider: Risks: To that end, you should be aware of the 2 warning signs we've spotted with TMC Life Sciences Berhad . Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! Other Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
