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New Straits Times
16-05-2025
- General
- New Straits Times
More than half of Malaysia's coral reefs affected by bleaching, says report
KUALA LUMPUR: More than half of Malaysia's coral reefs have been affected by bleaching, with over a third showing signs of death, according to a new report highlighting the devastating impact of the 2024 global coral bleaching event. The 2024 Malaysia Coral Bleaching Impact Report, released by Coralku and Reef Check Malaysia, revealed that 50.7 per cent of surveyed corals across Peninsular Malaysia and Sabah experienced bleaching, while 34.1 per cent suffered mortality on average. The northeastern region, particularly the Terengganu archipelago, was the worst hit, with coral death averaging 44.2 per cent. Monitoring data on coral bleaching incidence and mortality were collected across 24 sites in four Malaysian regions: northeastern Peninsular Malaysia, southeastern Peninsular Malaysia, and east and west Sabah. Coralku founder and lead author of the report, Sebastian Szereday, said Malaysia's coral reefs are at a tipping point. "The scale and severity of bleaching observed in 2024 underscore the vulnerability of our reefs to extreme and prolonged heat stress, with profound implications for marine life and reef-dependent communities," he said. Szereday added that unlike previous bleaching events in 2010 and 2019-2020, coral species with complex growth forms, crucial for reef structure and fish habitat, were disproportionately impacted in 2024, resulting in a significant loss of three-dimensional reef complexity. "This threatens not only marine ecosystems but also the aesthetic and economic value of reefs, which are vital to local tourism and fisheries. To date, six archipelagos within Malaysia's marine parks are valued at RM8.7 billion, according to the Department of Fisheries Malaysia (DoF)," he said. Reef Check Malaysia science officer and co-lead author Chen Sue Yee said urgent local and national actions are necessary to support reef resilience. "It is vital to take action to support our weakened reefs. Measures such as eliminating land-based pollution, including untreated sewage, industrial waste, and agricultural runoff, and mitigating coastal development impacts like sedimentation and physical reef damage must be prioritised," she said. "We should also promote sustainable tourism to minimise direct physical harm to coral ecosystems and enhance local research capacity and community-led reef co-management. Our findings with Community Marine Conservation Groups (CMCGs) show that these approaches improve awareness, livelihoods, and reef health. "Strengthening enforcement of no-take zones and fishing regulations is also essential to reduce exploitation and habitat destruction," added Chen. Meanwhile, National University of Singapore researcher and co-author of the report Lee Li Keat said research should focus on expanding standardised bleaching monitoring protocols to identify heat-resilient coral species and sites.
Malay Mail
27-04-2025
- Business
- Malay Mail
Trump trade war pushes firms to consider stockpiling; analysts call it ‘short-term opportunistic' move
PARIS, April 27 — Stockpiling is the reflex response by firms to the imposition of tariffs, but with the rapidly-changing position of the Trump administration, companies are finding that it isn't so straightforward this time around. Whether it's the luxury, electronics or pharmaceutical sectors, US President Donald Trump's unpredictability complicates the calculations of firms. Some companies didn't wait for Trump's April 2 announcement of massive 'reciprocal' trade tariffs: they had already begun shipping more of their goods to the United States. In the end, Trump backed down quickly on the 'reciprocal' tariffs, pausing them for 90 days except for China. That still left the global 10 per cent tariff in place, as well as the 25 per cent tariffs on European steel, aluminium and cars. French cosmetics firm Clarins didn't hesitate and stepped up shipments to the United States at the beginning of the year. 'We've built up three months of stocks, which represents US$2 million (RM8.7 million) in goods,' said Lionel Uzan, the head of Clarins's US operations. With all of its products made in France, Clarins had few other options to mitigate the tariffs. Discreet stockpiling Even if they don't all acknowledge it so openly, firms in many different sectors are stockpiling their products in the United States. In March, exports of Swiss watches to the United States jumped nearly 14 per cent compared to the same month last year. More striking is Ireland, which plays host to a number of international pharmaceutical firms. Its exports to the United States jumped 210 per cent in February to nearly €13 billion (RM64.7 billion), with 90 per cent of those being pharmaceutical products and chemical ingredients. Fermob, a French manufacturer of metal garden furniture that sells around 10 per cent of its products in the United States, said it began planning for US tariffs once the result of the presidential election became known in November. It stepped up production in January and February. 'We've sent around 30 per cent of our extra stock to the United States,' said the company's chief executive, Baptiste Reybier. That extra production has benefitted transportation firms. Lufthansa Cargo said it has seen in recent weeks 'an increase in demand for shipments to the United States'. The trade war 'has incited companies to accelerate certain stages in their supply chains', it told AFP. 'A similar trend was seen for the delivery of cars from the EU to the United States,' it said. The phenomenon also concerns US-made goods. The Japanese newspaper Nikkei reported recently that Chinese tech firms were snapping up billions of dollars of artificial intelligence chips made by US firm Nvidia in anticipation of Washington imposing export restrictions. 'Short-term approach' Stockpiling is not a solution, however, said analysts. Matt Jochim, a partner at consulting firm McKinsey who helps companies with supply chain issues, called stockpiling 'a very short-term opportunistic' move. He said the practice has limits as tariffs are constantly changing and it isn't always practicable. 'In a lot of the electronics space, it's also hard to do, because the technology changes so quickly, you don't want to get stuck with inventory of chipsets or devices that are the prior version,' he said. Fermob said it was taking a measured approach to stockpiling. 'Otherwise, you're replacing one risk with another,' the manufacturer's Reybier said. 'You have to finance stocks and there is also the risk of not having sent the right product.' Having a local subsidiary with warehouses also helped, Reybier added. 'It's too early to say whether we should have sent more or not.' — AFP
New Straits Times
24-04-2025
- Business
- New Straits Times
Binastra to acquire 51pct stake in LF Lansen for up to RM44.8mil
KUALA LUMPUR: Binastra Corporation Bhd is acquiring a 51 per cent stake in mechanical and electrical solutions provider LF Lansen Sdn Bhd for up to RM44.8 million in cash, to be paid in three stages. LF Lansen specialises in thermal energy storage (TES) systems for district cooling plants and buffer tanks for data centres, as well as providing engineering, procurement, construction and commissioning (EPCC) services for industrial ventilation, air-conditioning and mechanical ventilation. In a statement today, Binastra said it will purchase a 40.8 per cent stake for RM15 million cash in the first stage, of which RM12.8 million will go towards subscribing for new LF Lansen shares, while the remaining RM2.2 million will be used to acquire existing shares from the vendor. "In the second stage, Binastra has been granted a call option to acquire an additional 10.2 per cent equity interest in LF Lansen from the vendor, at a valuation based on eight times the price-to-earnings multiple of its audited profit after tax (PAT) for the financial year ended March 31, 2025 (FY2025), with the exercise price capped at RM8.7 million. "Upon exercising the call option, Binastra would hold a 51 per cent controlling stake in LF Lansen," it added. In the third stage, should LF Lansen achieve a PAT of RM10 million for each of the three financial years from FY2025 to FY2027, the vendor will be entitled to an earn-out payment of RM5.9 million per annum, totalling RM17.6 million over the three years. Binastra said the transaction is expected to be completed in the second half of 2025. As of end-March 2025, LF Lansen's outstanding order book stood at RM43 million, with several construction contracts currently under negotiation. Binastra managing director Datuk Jackson Tan Kak Seng said the acquisition will enhance the company's EPCC capabilities and expand its presence in energy-efficient engineering solutions. "Binastra will gain immediate access to the energy efficiency space, which includes TES systems and buffer tanks. "The acquisition will also broaden Binastra's exposure to the emerging data centre space in ASEAN countries through the design and supply of buffer tanks," he added.
Malaysian Reserve
24-04-2025
- Business
- Malaysian Reserve
Binastra to acquire majority stake in TES specialist LF Lansen for up to RM45m
BINASTRA Corporation Bhd has entered into conditional agreements to acquire up to 51% equity interest in LF Lansen Sdn Bhd, a regional player in Thermal Energy Storage (TES) systems and engineering, procurement, construction and commissioning (EPCC) services, for a maximum consideration of RM44.8 million. The acquisition will be executed in three stages, beginning with an initial purchase of 40.8% equity interest for RM15 million, comprising RM12.8 million for new shares and RM2.2 million via a share purchase from the vendor. The group has also been granted a call option to acquire a further 10.2% stake for up to RM8.7 million, exercisable after the finalisation of LF Lansen's FY2025 audited financials. To align long-term interests, the deal includes a performance-based earn-out mechanism. If LF Lansen achieves a profit after tax (PAT) of RM10 million annually from FY2025 to FY2027, the vendor is entitled to RM5.9 million per year in additional payments. The total earn-out could reach RM21.2 million, depending on profit performance, bringing the full acquisition price to the agreed cap of RM44.8 million. Founded over 20 years ago, LF Lansen is a CIDB G7-certified contractor with operations in Malaysia, Singapore, Vietnam and the Philippines. It specialises in TES systems for district cooling plants, buffer tanks for data centres, and industrial HVAC solutions. As of end-March 2025, the company's outstanding order book stood at RM43 million, supported by an unaudited 9MFY2025 PBT of RM7.1 million, indicating strong earnings growth from FY2024's RM2.1 million PAT. Binastra MD, Datuk Jackson Tan Kak Seng, said the acquisition marks a strategic move to expand into energy-efficient engineering and data centre infrastructure. 'We see potential in LF Lansen, given its strong track record and established reputation both in Malaysia and across the region. The acquisition will enable Binastra to enhance its EPCC capabilities and expand its business into the provision of energy efficient engineering solutions,' he said. He added that the deal gives Binastra immediate access to the growing data centre segment in ASEAN, especially through LF Lansen's TES and buffer tank expertise, while also supporting Malaysia's broader energy efficiency agenda. 'By embedding these capabilities into our offering, we will also enhance Binastra's ESG profile, which is increasingly viewed as a priority for institutional investors,' Tan said. The acquisition will be fully funded via internal funds, with Binastra holding RM62.6 million in cash and bank balances as of March 25, 2025. The transaction is expected to be completed in the second half of 2025. –TMR
