Latest news with #RM80mil
The Star
04-07-2025
- Business
- The Star
AEON Credit valuations to hinge on banking arm
AEON Bank is projected to see losses peak in FY26 and gradually ease from FY27 with breakeven targeted in FY28 and profitability by FY29. PETALING JAYA: Aeon Credit Service (M) Bhd 's valuations will likely be driven by the performance of its loss making subsidiary, AEON Bank (M) Bhd, which is Malaysia's first Islamic digital bank. AEON Credit's management expects the bank to only post a profit in financial year 2029 (FY29) and to run losses till then due to expansion and product development related costs. At its AGM on June 25, AEON Credit had guided to RM80mil to RM90mil in associate losses from its 50%-owned digital banking venture in FY26. 'This represents a 17.1% to 31.8% year-on-year (y-o-y) increase from the RM68.3mil loss recorded in FY25 and exceeds our RM75mil loss forecast by 7% to 20%. The updated guidance also surpasses consensus estimates of RM60mil by 33.3% to 50%. 'Further checks with AEON Credit revealed that the higher projected losses are driven by the rollout of expanded product offerings under AEON Bank, including a personal financing facility of up to RM10,000, business banking services and term deposit offerings,' CIMB Securities said in its report. The research house noted that the expansion entailed higher upfront costs, particularly in digital infrastructure and core banking systems, including cloud deployment, cybersecurity and regulatory compliance. AEON Bank is projected to see losses peak in FY26 and gradually ease from FY27 with breakeven targeted in FY28 and profitability by FY29. The financing company also guided to minimal impact on its business from the expanded sales and service tax (SST) apart from RM1.8mil in SST related costs for FY26 (year ending February). To improve its collections, AEON Credit expects to finalise discussions with two agencies to explore the potential implementation of a salary deduction scheme for civil servant borrowers by this month. This market segment accounts for 19% of its customer base. It might not fully mitigate the risk of rising impairments, particularly in light of elevated household debt levels and living costs. The recent increase in civil servant bankruptcies – triggered by the Malaysian Anti-Corruption Commission's 'Op Sky' investigation and the implementation of Malaysia's 'second chance policy' – may continue to weigh on the creditworthiness of this segment, potentially limiting the effectiveness of the salary deduction mechanism over the longer term. AEON Credit's impairment losses surged 32.9% y-o-y in FY25, driven by an 18.4% y-o-y increase in delinquent accounts. This resulted in a higher net credit cost of 3.87% in FY25 (FY24: 3.35%) and an increase in the non-performing loans ratio to 2.64% (FY24: 2.57%).
The Star
13-06-2025
- Automotive
- The Star
Nanta: East-West Highway safety works are coming
GERIK: The Works Ministry is preparing a road condition assessment (PCA) report to facilitate maintenance and paving work on the Gerik-Jeli route of the East-West Highway (JRTB) to be carried out soon, says its minister Datuk Seri Alexander Nanta Linggi (pic). He said the PCA is being done 'according to the latest, modern and internationally applicable methods'. 'However, all the facilities and methods used depend on the allocations given, especially in building and repairing roads,' he said during a visit to the location of the bus crash that claimed the lives of 15 Universiti Pendidikan Sultan Idris (UPSI) students. Nanta previously announced that the crash location was among the sections along the highway that had been identified for upgrading work this year, with an allocation of RM55mil. The minister also said that various initiatives had been put in place since 2023 to improve the Gerik-Jeli route, especially on the FT04 federal road, Bernama reported. He said funds totalling RM80mil were also allocated to cover 55 scopes of work under the periodic pavement maintenance programme, which aims to ensure that the route on the JRTB is in good condition. Nanta added that RM3.58mil was allocated for the street light and signal light maintenance project involving the maintenance of traffic lights and the installation of solar lights along the JRTB, which will begin next month. He said the installation of solar-powered lights would also involve the location of the fatal bus crash. 'This project is currently in the procurement process by the Perak Public Works Department, and is expected to be completed by the end of October,' the minister said.
The Star
12-06-2025
- Automotive
- The Star
Gerik highway to receive safety upgrades following tragic bus crash, says Nanta
GERIK: The Works Ministry is preparing a report on the Pavement Condition Assessment to facilitate maintenance and paving work on the Gerik-Jeli East-West Highway, set to begin soon. Minister Datuk Seri Alexander Nanta Linggi stated that the assessment uses technologies like multi-laser profiler, falling weight deflectometer, dynamic cone penetrometer, and trial pit. The assessment began on March 13 and was completed on May 13, following modern international methods. However, the facilities and methods used depend on the allocated budget, particularly for road construction and repair, he told reporters on Thursday (June 12) after visiting the site of the June 9 bus crash that killed 15 Universiti Pendidikan Sultan Idris students at KM 53 of the highway. Nanta previously announced that the crash site is among sections of the highway identified for upgrades this year, with an allocation of RM55mil. Various initiatives have been taken since 2023 to improve the Gerik-Jeli route, especially on the FT04 Federal Road, Nanta said. Funds totaling RM80mil were allocated for 55 scopes of work under the Periodic Pavement Maintenance Programme to ensure the highway's good condition. The Work Order approval will be issued based on recommendations from the assessment report, he explained. Additionally, RM3.585mil has been allocated for the Street Light and Signal Light Maintenance Project, involving solar light installation along the highway, set to begin in July. The solar lights will be installed at the crash site. This project is currently in the procurement phase by the Perak Public Works Department and is expected to be completed by the end of October, he added. The ministry assures that all allocations will be used optimally for effective highway maintenance. - Bernama
The Star
05-06-2025
- Business
- The Star
Transport Ministry launches 13 new bus routes in Kedah
ALOR SETAR: Thirteen stage bus routes have begun phased operations in Kedah from June 1,as part of the Transport Ministry's stage bus services transformation programme. The ministry said the programme is a federal government initiative under Budget 2024, with an allocation of RM80mil for a five-year service period, or RM16mil per year. "This initiative is part of efforts to improve the quality of stage bus services in Alor Setar and other towns, including Sungai Petani, Jitra, Kuala Kedah, Kuala Nerang, and Pendang. " Kota Setar services will operate at a frequency of every 30 minutes on urban routes and between 60 and 90 minutes on inter-district routes. The routes have been designed to connect major destinations around Alor Setar, such as Sultanah Bahiyah Hospital, Pekan Rabu, Darul Aman Stadium, Sultan Abdul Halim Airport, and the Kuala Kedah Jetty," it said in a statement on Thursday (June 5). The routes are K10 Shahab Perdana-Kuala Kedah; K20 Shahab Perdana-Jitra; K30 Shahab Perdana-Kuala Nerang; K40 Shahab Perdana-Pendang via Simpang Empat; K41 Shahab Perdana-Pendang via Kota Sarang Semut; K50 Shahab Perdana-Sungai Petani; K51 Sungai Petani-Tanjung Dawai; K52 Sungai Petani-Pantai Merdeka; K60 Sungai Petani-Bandar Baharu; K61 Sungai Petani-Taman Kelisa; K62 Sungai Petani-Taman Ria Jaya / Taman Batik; K63 Sungai Petani-Bandar Perdana and K100 Alor Setar Feeder. The ministry added that the Land Public Transport Agency (Apad), as the implementing agency of the programme in Kedah, appointed Gopi Travel Tours Sdn Bhd as the network operator for the bus services through an open tender process. "Gopi Travel Tours Sdn Bhd has experience in operating stage bus services under the programme in Seremban. "A total of 48 new buses of 'midi' and low-floor mini types will be used. These new low-floor buses make boarding and alighting easier and are disabled-friendly. They are also equipped with cashless payment systems and closed-circuit television (CCTV) cameras to enhance passenger safety," it said. The government has also introduced a free fare initiative for senior citizens, persons with disabilities and students via the Concession Card. "Registered users can enjoy unlimited rides on Kota Setar services for 30 days at a cost of RM50. "Through this programme, services are expected to ease mobility for approximately 28,000 users per month, encourage the use of public land transport among the local community, and help reduce daily travel costs," it said. – Bernama
The Star
29-05-2025
- General
- The Star
3,000 community rangers to be deployed to enhance forest, wildlife protection
GEORGE TOWN: The Natural Resources and Environmental Sustainability Ministry (NRES) will increase the number of community rangers to 3,000 this year under the Biodiversity Protection and Patrolling Programme (BP3), to curb illegal activities involving wildlife and forests. NRES secretary-general Datuk Dr Ching Thoo said the new appointments, comprising mainly members of the Orang Asli community as well as veterans of the Malaysian Armed Forces and Royal Malaysia Police, aim to strengthen protection efforts against encroachment in permanent forest reserves nationwide. "With the RM80mil allocation received this year, we plan to appoint up to 3,000 community rangers. The impact has been positive so far, with reports indicating a clear reduction in illegal activities, especially poaching,' he told reporters after launching the Jelajah Kelestarian Alam 2.0 programme at Universiti Sains Malaysia (USM) on Thursday (May 29). "BP3 enables us to monitor forests more effectively and combat threats such as encroachment, illegal logging and poaching,' he added. The programme, jointly organised by NRES, the Sultan Mizan Antarctic Research Foundation and the Department of Environment (DOE), drew over 250 participants, including USM vice-chancellor Datuk Seri Abdul Rahman Mohamed and DOE director-general Datuk Wan Abdul Latiff Wan Jaffar. Meanwhile, Ching urged residents affected by wildlife disturbances that damage property or crops to apply for the Property and Crop Damage Compensation (BKHT). He said RM10mil was allocated for the programme last year, but only 10 percent was disbursed due to the low number of applications. "BKHT was introduced last year to assist victims facing significant losses due to human-wildlife conflicts. The initiative will continue this year with an additional RM1.5mil,' he said. He added that the ministry is reviewing a proposal to increase the BKHT payout rate from 50 percent to 60 percent of the reported damages to better support affected individuals. "Based on records, most of these claims involve elephant-related damages, especially in Johor, Kelantan and Pahang. There are also reports involving monkeys, though to a lesser extent,' he said. - Bernama
