Latest news with #RM7bil
The Star
27-05-2025
- Business
- The Star
Sim: Investing on human resources will ensure further growth
KUALA LUMPUR: It is time for Asean countries to work together to become a self-sustainable region in the face of economic uncertainties arising from conflicts between global powers, says Steven Sim. The Human Resources Minister said this must include improving the sustainability of key sectors of economic and human resource (HR) development for all Asean countries. He called on the region to enhance its collaboration on human development by sharing best practices and solutions to regional challenges. 'Malaysia itself spends RM80bil on education annually, with up to another RM7bil on skills education, making it almost RM100bil spent a year on HR development. 'If this number is an average even among just 10 of our Asean member states, we are looking at about a trillion budget a year from Asean governments alone for HR development. 'This is why initiatives like the Asean Human Capital Development Investment Symposium (AHCDIS) are key to help us better utilise our HR best practices and solutions among us. 'Combined with our almost 60-year long collaboration as its core, we must utilise our logical and natural tendency to work towards making our economies sustainable,' he said in his speech during AHCDIS here yesterday. Sim said this was especially due to the current turmoil of global geo-economic dynamics that could leave Asean countries to suffer economically. 'For the last half decade, our region has been defined by its mass production model economy, offering low- to mid-skill and low-cost labour input for everyone, which has lifted many members from poverty. 'But it has become unsustainable to offer continual cost cutting to the global economy, especially in an age where global players are calling for more inward nationalism and declining global cooperation. 'We are now constantly depressed and threatened by the big boys despite decades of offering cheap labour and resources to build some of their biggest companies in our region,' he added at the two-day event here. AHCDIS is part of the Human Resources Ministry's Asean Year of Skills (AYOS) 2025 initiative and organised by Human Resources Development Corp (HRD Corp) in collaboration with the International Labour Organisation (ILO) and supported by the Asean Secretariat (ASEC). HRD Corp chairman Datuk Abu Huraira Abu Yazid said the symposium seeks to provide a platform for all stakeholders to explore innovative workforce skills financing solutions. 'This symposium is not just a gathering of experts but a regional action platform where policymakers, employers' organisations, worker representatives, development partners and education institutions come together. 'They can then use this collaboration to identify actionable solutions, share best practices and build momentum for long-term investments in human capital across the region,' he said in his speech at the event. AYOS 2025 organising chairman Rony Ambrose Gobilee said the symposium serves as a key platform to help industries shape and train their workforce for a sustainable future. 'Skills in digitalisation. and technical and vocational education and training (TVET) in particular, are the focus of the symposium as they are the most key skills going into the 21st century. 'While knowledge of concepts is important, these two skills (digitalisation and TVET) will be the most in-demand if we wish to become a sustainable economic region,' he added.
The Star
09-05-2025
- Business
- The Star
Eco-Shop launches the year's biggest IPO to date
PETALING JAYA: Main Market-bound Eco-Shop Marketing Bhd aims to raise RM419.87mil via an initial public offering (IPO), which comprises 347 million new shares at a retail price of RM1.21 apiece. Slated to debut on the Main Market of Bursa Malaysia on May 23, 2025, Eco-Shop is estimated to have a market capitalisation of RM7bil upon listing, making it Malaysia's biggest IPO for this year as of now. Operating as a dollar chain store, Eco-Shop currently has about 350 stores nationwide and is planning to expand by opening up another 70 stores within one year after listing. Executive director and chief executive officer Jessica Ng said there are ample opportunities and space to increase the number of outlets in Malaysia. Despite not disclosing the specific locations for the planned outlets, she said the majority will be in underserved areas in the Klang Valley and states on the east coast. 'In the last 12 months, we focused a lot on Johor to maximise operational efficiency. 'But this year, we would like to open more stores in the Klang Valley. 'So, we hope we can make our presence more visible in the sector,' she explained during a press conference after the launch of Eco-Shop's prospectus here yesterday. That being said, the group has allocated about 13.4% of the proceeds or RM56.27mil for the expansion of new chain stores. When asked about the duration to reach breakeven per store, Ng said it would usually take about one year for each store to be profitable. She stated that the group is looking to enhance its warehouse and distribution capabilities by developing a new semi-automated distribution centre in Klang, Selangor. Eco-Shop will be acquiring a 307,560 sq- m-freehold medium industrial land for the construction of the distribution centre, with the deal to be financed via IPO proceeds amounting to RM200mil. 'This is in line with the growth in the number of our outlets,' Ng said. An allocation of RM10.9mil or 2.6% of the proceeds has been put aside as the group also plans to invest in IT hardware and software to further enhance and support daily operations. The remainder of the proceeds will be used to finance the repayment of bank borrowings, working capital and listing expenses at RM100mil, RM24.7mil and RM28mil, respectively. On that note, Ng stated that the group remains confident in its future prospects despite the current uncertainties within the global economic landscape. 'The consumer sentiment is definitely shifting and people are more budget-conscious as well. So, Eco-Shop is a brand that really fits into this good value proposition,' she said. On the trade war between the United States and China, she views it to be more advantageous for the group considering the opportunities presented from China's exports. About half of its products are imported and the remaining half are supplied locally. Additionally, Ng shared that the group will be expanding its house brands by improving product display and revamping packaging and products as well as product innovation. 'Our house brand represents 70% of our stock keeping units and reflects close to 56% of our sales participation. 'Hence, our house brand plays a very critical role,' she explained, adding that house brands bring in higher margins. Eco-Shop has 29 house brands as of today. On top of its public offering, Eco-Shop will offer 675.37 million shares to institutional investors at a price to be determined through a book-building process – of which 10 investors were identified as cornerstone investors who collectively subscribed for 90.91 million shares or 90.31% of the institutional offering. The cornerstone investors include Aham Asset Management, Albizia Capital Pte Ltd, Areca Capital Sdn Bhd, Eastspring Investments Bhd, Kairous Equity Sdn Bhd, Kenanga Investors Bhd, Kenanga Islamic Investors Bhd, Lion Global Investors Ltd, RHB Asset Management Sdn Bhd and RHB Islamic International Asset Management Bhd. An offer for sale of up to 515.15 million existing shares was also made available. Applications for the IPO are now open and will close on May 7, 2025 at 5pm.
The Star
29-04-2025
- Business
- The Star
SCALING UP IN THE UK
GAMUDA Land is scaling new heights in the United Kingdom, expanding its footprint in one of the world's most competitive property markets. The company's diversified portfolio now spans residential, commercial and purpose-built student accommodation (PBSA). Its biggest milestone to date is the RM7bil (£1.2bil) redevelopment of 75 London Wall, a major commercial-led regeneration project in the heart of the City of London district. The project, which broke ground in early 2025, represents Gamuda Land's largest overseas investment and a significant step into the UK's institutional-grade property sector. '75 London Wall is a statement of intent. It's a long-term play that reflects our confidence in the UK market and our ability to compete on a global stage, while staying true to our town-making values,' said Gamuda Land chief executive officer Chu Wai Lune. Upon its completion in September 2027, the 14-storey 75 London Wall will have a net lettable office space of over 450,000 sq ft. It is set to become a Grade-A sustainable top-tier office, targeting three sustainability performance ratings – Building Research Establishment Environmental Assessment Method (BREEAM) 'Outstanding', WELL Core 'Platinum' and National Australian Built Environment Rating System (NABERS) UK 5 Star Design. Diversifying into student housing Alongside its flagship commercial development, Gamuda Land is actively expanding into the PBSA sector. Its latest project at City Wharf in Glasgow, Scotland – a joint venture with Dandara Living – features 492 student beds integrated into a broader mixed-use neighbourhood. The development follows the company's first PBSA in Woolwich, London – a 299-bedroom scheme delivered in partnership with Q Investment Partners. Together, these projects form part of its strategy to deliver 3,000 student beds across key cities in the UK by 2029. Gamuda Land's move into the PBSA sector is backed by solid market and economic drivers, including: > Leader in global education: The UK is home to 15 of the world's top 100 universities, with over 2.2 million full-time students. International student enrolment is outpacing the growth of domestic students. > Persistent supply-demand imbalance: The UK has consistently faced a shortage of student accommodation, highlighting the need for quality student housing. Real estate and investment firm CBRE's analysis reveals a deficit exceeding 350,000 PBSA beds across major university towns, with Greater London alone facing a shortfall of 106,000 beds – a 45% increase since 2017-2018. > Changing rental landscape: The increasingly challenging environment for smaller private landlords, with the 5% additional stamp duty hike on April 1 and tighter rental regulations, will further drive demand to professionally managed, institutional-grade PBSA. The UK real estate market offers a blend of transparency, resilience and institutional interest that aligns with the company's growth aspirations. The PBSA in City Wharf in Glasgow, Scotland, addresses the acute shortage of high-quality student accommodation in one of the UK's most vibrant and undersupplied student markets. PBSA is a structurally resilient and counter-cyclical asset class, underpinned by sustained demand from both domestic and international students. It is also viewed as a defensive investment, less exposed to political cycles or volatility, making it a stable asset for long-term capital. 'The PBSA sector aligns well with our strengths. We're not just building accommodation, we're designing better living environments for students through thoughtful planning, sustainability and community integration,' added Chu. In line with Glasgow's climate targets and planning policies, City Wharf's PBSA is designed with a strong emphasis on sustainability, integrating low-carbon and zero-carbon technologies, including air-source heat pumps, to achieve a BREEAM 'Very Good' rating. Strategic expansion Gamuda Land entered the UK market in West Hampstead Central in North London, a boutique residential development, completed and fully sold in 2024. With West Hampstead, Woolwich, City Wharf and 75 London Wall in its portfolio, the developer is growing its presence with a measured approach, combining high-growth sectors with institutional-grade opportunities. 'Our UK strategy is to build a diversified and resilient portfolio, balancing short and long-term assets, from income-generating PBSAs to value-accretive commercial projects,' said Chu. He added that the company is actively pursuing several more PBSA opportunities across key university cities in the UK. Creating value As a homegrown developer with a growing global presence, the company continues to draw from its experience in master-planning award-winning townships like Gamuda Gardens, Gamuda Cove and twentyfive7 in Malaysia. The same principles – placemaking, sustainability and community building – are now being applied in its projects across Vietnam, Australia and the UK. 'Expanding abroad has sharpened our capabilities and broadened our perspective. 'It gives us valuable insights into evolving lifestyles, regulatory frameworks and urban challenges, which, in turn, strengthen the way we plan, design and deliver our projects back home in Malaysia,' said Chu. Looking forward With ongoing projects in Vietnam, Singapore, Australia and the UK, the developer's international ventures are a core pillar of its long-term growth strategy. To date, it has invested over RM1.91bil (£340mil) in the UK market, with plans to invest a further RM1.24bil (£220mil) as it scales up its presence in high-growth corridors. This expansion is part of Gamuda Land's broader investment blueprint, which includes RM10.5bil in capital deployment over the next five years, and a total projected gross development value of RM26bil across key markets. 'With strong capital commitment, we are steadfast in scaling our long-term presence in the UK with confidence. And we are actively seeking like-minded partners to match equity in these developments. 'The UK is a sophisticated and mature market – one that rewards long-term thinking and quality execution. We believe there's a real opportunity for strategic co-investment that delivers both financial and social returns,' said Chu. Over the next five years, the company is targeting a balanced sales contribution of 40% from Malaysia, 45% from Vietnam and 15% from the UK, Australia and other regions. As Gamuda Land strengthens its UK footprint, its priority remains clear: delivering high-quality, sustainable developments that respond to the country's evolving market dynamics and long-term housing needs. 'As we build our footprint abroad, we're proud to bring the same values and quality we're known for at home,' said Chu. 'It's about creating places that stand the test of time – wherever they are in the world.'
