Latest news with #SunBiz
The Sun
5 days ago
- Business
- The Sun
Topmix expects resilient demand for its decorative surface products on steady renovation activity
KUALA LUMPUR: Topmix Bhd expects demand for its decorative surface products to remain resilient on the back of steady renovation activity in the residential and commercial segments, said CEO Teo Quek Siang. On the commercial front, with retail and hospitality spaces seeing more customers and positive momentum, the company expects increased renovation projects, driving demand for its decorative surface solutions. 'As a renovation industry player, we enjoy a unique position because spaces or premises constantly need refreshing,' Teo told SunBiz. He said the government's recent support measures, such as the RM100 cash aid and temporary RON95 fuel price cuts that are intended to ease the cost of living and stimulate consumer spending, will offer modest boost to demand. 'As a business in the home improvement and renovation industry, we expect these initiatives to offer a modest boost to demand, particularly among cost-conscious homeowners.' For the year, Teo said the company maintains a cautious optimism in the business as on-going demand for space refurbishment driven by homeowners and businesses will continue to provide a platform for growth. He noted that economic downturns do not usually hit TopMix as hard as they do property or construction sector, which fluctuate with economic cycles. 'Our renovation sector maintains constant demand because people will still need to maintain and upgrade their spaces, whether it is homeowners or businesses who need rebranding.' While some businesses may move out, Teo said, the new tenant comes in and renovates the space to their requirements. 'This on-going cycle ensures consistent demand for our premium decorative surface solutions materials. In many ways, when the economy slows, we often see more renovation activity as customers choose to renovate rather than relocate or invest in new premises.' Topmix experienced a sequential decline in sales and gross profit in the first quarter of 2025 (Q1'25) despite strong year-on-year growth in revenue and profitability. For Q1'25 ended March 31, 2025, its net profit more than doubled to RM3.09 million from RM1.27 million in the same period last year, supported by improved gross profit margins from favourable foreign exchange movements. Topmix recorded revenue of RM22.07 million, up 14% from RM19.36 million a year earlier, driven by strong sales of high pressure laminate (HPL) products and a surge in PVC plywood and melamine-faced chipboard sales. However, on a quarter-on-quarter basis, revenue fell 19% from RM27.33 million in Q4'24 and net profit declined 27% from RM4.25 million, reflecting the seasonal slowdown in renovation activity during festive periods. Teo said Topmix fully acknowledges that business activity tends to slow during festive seasons. 'While this is inevitable, we have structured our approach to ensure consistent performance year-round.' He stressed its second-half results tend to be stronger, but the strategy is not limited to just certain quarters. 'What we have is a long-term approach that is executed and implemented consistently.' Operationally, he said, Topmix uses historical sales data to accurately forecast demand and optimise inventory levels, helping to control holding costs, prevent storage constraints and ease cash flow pressure. On the marketing front, Teo said not many industry players can produce catalogues as frequently as Topmix due to high production costs. 'We release new, trend-driven catalogues once every two years, keeping our brand relevant and aligned with the latest design trends.' On foreign exchange strategy, Teo said the company adopts a prudent hedging approach to minimise exposure. 'We closely monitor currency fluctuations and use forward contracts to mitigate risks from foreign currency movements.' He added, 'Rising input costs are unavoidable due to global raw material fluctuations and supply chain pressures. While we strive to manage costs efficiently, with only minimal price adjustments, some increases are reflected in our pricing to ensure continued product quality and service standards.' Teo said the company works closely with five major original equipment manufacturer suppliers under exclusive arrangements for its HPL products. 'In the event of any disruption with our current suppliers, we can switch to alternative manufacturers with minimal impact.'
The Sun
05-08-2025
- Business
- The Sun
13MP – RM1 trillion semiconductor exports by 2030 target ‘ambitious yet achievable'
PETALING JAYA: Malaysia's plan to boost semiconductor exports to RM1 trillion by 2030, a centrepiece of the 13th Malaysia Plan (13MP), has been hailed as ambitious yet achievable by industry leaders, though economists warn that structural reforms will be key to ensuring the benefits translate into broader economic gains. Prime Minister Datuk Seri Anwar Ibrahim, in tabling the 13MP, identified semiconductors as one of the flagship high-growth, high-value industries vital to Malaysia's transition to high-income status and deeper integration into global technology supply chains. Malaysia Semiconductor Industry Association president Andrew Chan said the nation's recent performance and policy direction provide a solid foundation for the RM1 trillion export target. 'Malaysia's E&E exports reached RM601 billion in 2024, and with the global semiconductor market projected to double to US$1 trillion (RM4.23 trillion) by 2030, driven largely by the surge in demand for AI chips, Malaysia's RM1 trillion export target is both ambitious and attainable,' Chan told SunBiz. He highlighted RM319 billion in approved investments between 2021 and 2024, alongside the rollout of the National Semiconductor Strategy (NSS), launched in May 2024 and updated in July 2025, as pivotal enablers for the industry. 'These developments lay a strong foundation for growth,' he said, pointing to foreign direct investments from global giants like Intel and Infineon as well as the rapid scaling of local champions such as Inari and Vitrox. Chan stressed, however, that incremental growth would not be enough. 'Success will require us to make hard choices and sacrifices,' he said. 'It demands a deliberate pivot into high-value segments such as IC design, advanced packaging, semiconductor equipment manufacturing, wafer fabrication and particularly the design and production of AI chips and servers, where global demand will be most pronounced.' Chan noted that Malaysia's current strength lies in outsourced semiconductor assembly and testing services but argued that capturing greater value will require moving into front-end manufacturing and design, areas currently dominated by economies like Taiwan, South Korea and the United States. 'One area for greater focus is on a more coordinated talent development strategy, especially skills for the new growth areas. What got Malaysia to where we are today will not get us to RM1 trillion in E&E exports by 2030.' While agreeing that semiconductors will be a key growth engine, economist Professor Geoffrey Williams cautioned against viewing the sector's success as a panacea for Malaysia's broader economic challenges. 'These high-value sectors are largely market-driven, and government interference is often unnecessary,' he said. 'The most important features of 13MP are actually the social and structural elements, the extension of the minimum wage, the review of the retirement age and reforms to pensions and healthcare.' Williams argued that without parallel reforms to raise incomes, address underemployment and open up opportunities for SMEs, semiconductor gains risk being concentrated among larger corporations and global players. 'Technology and green growth are already unfolding organically,' he added. 'Structural reforms are needed to ensure these gains benefit the wider economy and address long-standing issues like wage stagnation and job quality.' The 13MP's semiconductor strategy builds on the NSS's targets to create 10 local companies with revenues exceeding US$210 million each, nurture 100 firms approaching US$1 billion revenue and train 60,000 skilled engineers by 2030. Economists say the combination of surging global demand, particularly for AI chips and Malaysia's established role in the electronics supply chain creates a unique opportunity. However, they warn that talent bottlenecks, infrastructure gaps and uneven SME participation must be addressed for the RM1 trillion target to translate into inclusive growth.
The Sun
03-08-2025
- Business
- The Sun
13th Malaysia Plan ambitious, needs strong execution and clear funding plans: Analysts
PETALING JAYA: The 13th Malaysia Plan (13MP) is ambitious and its goals can only be delivered with strong execution and clear funding plans, analysts say. Berjaya Mutual Bhd chief investment officer Datuk Dr Nazri Khan said the government's 4.5–5.5% gross domestic product (GDP) growth target is challenging but not impossible to achieve. 'Given the current situation, it's very challenging to hit 5.5%. But it is achievable – just more challenging,' he told SunBiz. He welcomed the focus on high-value, high-growth sectors such as artificial intelligence (AI), describing the move as a good way to break out of the middle-income trap. 'Targeting a fiscal deficit below 3% of GDP and keeping government debt under 60% – that's excellent. It will strengthen governance and fiscal reforms,' Nazri said. He added that regional development in Sabah and Sarawak, targeted subsidies such as the Rahmah Cash Aid and structural transformation efforts are all positive steps. However, execution remains the main hurdle. 'Bureaucracy is the problem. The ability to coordinate – that's a key challenge,' Nazri said, adding that investments in digitalisation and rural internet infrastructure will require a whole-of-government approach and strong monitoring. 'We always want to cut debt, but our execution and oversight have been weak,' he said, warning that the global environment adds to the difficulty. Nazri also flagged concerns about heavy reliance on domestic demand amid a disrupted labour market, global commodity shocks and geopolitical tensions. He said the 13MP's privatisation mechanisms are not clearly explained and hoped Malaysia Madani will not become purely rhetorical. 'The RM430 billion development budget is great, but it's unclear how it will be funded. There are still many subsidies, so how exactly will the deficit be reduced?' He also stressed the need for more job creation to prevent the rakyat from being left behind and called for stricter project management, especially for infrastructure efforts in poorer regions. BIMB Securities chief economist Imran Nurginias Ibrahim described the 13MP as a forward-looking roadmap centred on digitalisation, inclusivity and economic competitiveness. He said the targeted 4.5–5.5% GDP growth is consistent with Malaysia's potential and supports both recovery and reform, adding that 'RM430 billion in development spending and the aim to bring the fiscal deficit below 3% by 2030 show a strong intent to balance growth with sustainability'. Imran Nurginias welcomed the focus on digital transformation, AI and data infrastructure, along with social equity and education-employment alignment under the Madani Framework. However, he cautioned that targets such as tripling household income or increasing wage share of GDP are ambitious and would require productivity reforms and private sector buy-in. 'The absence of concrete tax reform measures creates uncertainty over how these plans will be sustainably funded.' Imran Nurginias warned of diluted focus, noting the 600 initiatives and 120 strategies listed, and urged the government to establish clear priorities and delivery mechanisms. 'Critical issues such as ageing population policy, long-term healthcare and institutional governance remain underdeveloped,' he said. Ultimately, he added, the 13MP's success hinges not on the number of strategies outlined but on bold, disciplined implementation supported by strong interagency coordination. Independent analyst Jason Loh commended the Madani government's strategic use of deficit spending to drive growth, noting that only RM61 billion or less than 10% of the RM611 billion allocation comes from the private sector, mostly through public-private partnerships. 'This reinforces the need for the government to rely on its own fiscal power to engineer economic growth,' he said. Loh said private sector dependency on public spending helps offset rising costs from tax expansions, tariff hikes and subsidy rationalisation, especially for SMEs. Loh added that high private and household debt – now at 84.3% of GDP – could limit consumption, and further strain the economy if Bank Negara Malaysia raises the Overnight Policy Rate (OPR) to manage debt levels. Given these conditions, he said, there should be no rush to reduce the fiscal deficit to 3% of GDP, noting that the current 4.8% target can be deferred if necessary. The recent OPR cut to 2.75% may help ease the government's debt servicing burden, and Malaysia's bond market remains relatively stable due to the Employees Provident Fund's role as a statutory purchaser, he said. Loh praised the government's balance between public and private spending, especially its prioritisation of education and technical and vocational education and training (TVET), which is allocated RM133 billion under the plan. 'Deficit spending should build the economy's productive capacity – human capital included. TVET is crucial to unlocking potential idle capacity over the long term,' he said. Loh also called for political culture reform to complement institutional changes. 'Political culture is the software, and institutional reform is the hardware. Without both, changes won't stick,' he said. Loh said Malaysia must avoid the 'First World infrastructure, Third World mentality' trap and emulate Singapore's model of high standards in both execution and mindset. He added that the 13MP should have included green bonds to modernise fiscal policy and support sustainable growth. To that end, Loh proposed a Green Investment Bank under Bank Negara Malaysia to issue and trade green bonds, supporting a debt-driven sustainability market alongside Bursa Malaysia's Voluntary Carbon Market.
The Sun
01-08-2025
- Business
- The Sun
Defining moment for Malaysia's AI, data centre ambitions
PETALING JAYA: As US-led semiconductor chip restrictions tighten and regional energy costs rise, Malaysia faces a defining moment in its artificial intelligence (AI) and data centre ambitions. Industry leaders say these global disruptions could either stall the nation's progress or become the very trigger that accelerates its push for AI self-reliance and digital sovereignty. National Tech Association of Malaysia research committee chairman Woon Tai Hai said the recent US export curbs on high-end AI chips, such as Nvidia's H100 and A100, are already impacting AI-focused startups, research institutions and data centre operators in Malaysia. 'These chips are crucial for training large AI models and powering generative AI applications. Without them, we're seeing delays in deployment and increased costs for local developers,' he told SunBiz. While some companies are pivoting to older graphic processing unit (GPU) models or exploring Chinese-made alternatives, such as Huawei's Ascend chips, the transition is not seamless. Compatibility issues, software support gaps and geopolitical uncertainty make it a complex adjustment. Meanwhile, electricity and cooling costs have surged, especially with Malaysia's high ambient temperatures pushing the limits of energy efficiency in data centres. Coupled with US tariffs on Malaysian exports and the weakening ringgit, Woon said, the environment is increasingly hostile for small players. 'This triple hit of chip shortages, energy inflation and trade pressure could force some AI projects to downscale or pause altogether.' However, Woon believes this challenge presents a rare opportunity for Malaysia to reposition itself. 'We are still an attractive alternative to Singapore for hyperscalers, especially with land and energy constraints over there,' he said, pointing to recent investments such as Google's RM9.4 billion data centre in Selangor. He added that Malaysia could leverage this disruption to double down on home-grown capabilities, forge new global partnerships beyond the US-China binary and evolve from being just a digital consumer to a true AI contributor. 'This is not just a supply chain issue; it's a wake-up call. If we want to lead in AI, we can't import our way to success,' Woon stressed. Universiti Malaysia Kelantan Institute for Artificial Intelligence and Big Data director Dr Muhammad Akmal Remli warned that Malaysia's long-standing dependency on foreign hardware, cloud platforms and proprietary models has become a strategic liability. 'The AI ecosystem doesn't just rely on talent and data. It runs on compute power and right now, Malaysia doesn't own its compute destiny,' he said. Akmal called for a comprehensive localisation strategy, beginning with substantial investment in foundational AI research and development through universities, public research agencies and long-term national programmes. 'We can't just be training people to use ChatGPT. We need to train them to build the next generation of language models,' he explained. Beyond research and development, Akmal proposed the creation of strategic hardware stockpiles and investment in alternative chip architectures, such as RISC-V, Graphcore and Tenstorrent, to diversify away from US-made GPUs. 'Waiting for supply to return to normal is naive. This is structural, not cyclical,' he warned. Akmal also urged the government to champion a sovereign compute initiative, a state-supported push to establish Malaysia's own high-performance computing infrastructure. 'This is no longer a luxury. We need our own compute backbone to support AI research, secure data hosting and digital services that cannot be outsourced,' he said. While some pilot efforts exist, Akmal noted that they remain fragmented and underfunded. What's missing, he said, is a unified national AI policy that aligns research, compute infrastructure, industry application and talent development under one coordinated strategy. 'Right now, we have isolated efforts by Mimos, Mosti, universities and agencies like MRANTI, but they aren't talking to each other. We need a central AI authority or framework to synchronise this,' he said. Akmal also cautioned that Malaysia's delay in building domestic capacity will ultimately result in higher costs. 'We are not just competing for tech, we're competing for independence. The AI race is about who owns the tools of the future, and right now we're still borrowing them,' he said. Akmal believes that Malaysia still has the talent, infrastructure and investor interest to build a competitive, ethical and independent AI ecosystem, but only if it takes bold steps now. 'AI is not just about innovation anymore. It's about sovereignty, resilience and relevance in a fractured world.'
The Sun
28-07-2025
- Business
- The Sun
insureKU partners global insurers to offer solutions tailored for today's tech-savvy consumers
KUALA LUMPUR: Today's consumers demand greater control over their choices, and nowhere is this more evident than in the insurance sector. As digital adoption accelerates and expectations evolve, Malaysians – particularly younger, tech-savvy individuals – are increasingly seeking insurance solutions that offer speed, transparency and effortless access. Recent findings from the Malaysia Insurance and Takaful Customer Satisfaction Survey indicate a growing preference for online channels among customers when purchasing insurance or takaful products. This shift highlights a broader trend, that convenience and instant accessibility are now key factors influencing how Malaysians select essential services. 'At insureKU, we have designed our platform to support this shift by offering side-by-side comparisons, real-time pricing, and instant coverage – all in one place. 'But beyond the purchase, we are also focused on building intuitive, responsive post-sale support to ensure users feel secure and informed throughout their insurance journey,' insureKU's co-founder and CEO Shadhana Sekaran told SunBiz. She said collaborations with global insurers are also changing the way Malaysians discover, compare and buy insurance through digital platforms. 'At insureKU, our partnerships with global insurers are making insurance more straightforward and more transparent for Malaysians. Users can now easily compare travel insurance with real-time quotes and instant coverage, all from their mobile devices. 'We are proud to work with digital-first partners like Tokio Marine, Tune Protect and Generali, and travel insurance is just the start – motor insurance and more products are on the way, all designed for today's mobile-savvy consumers seeking speed, clarity, and confidence online.' Shadhana said partnering with globally recognised insurers significantly strengthens insureKU's value and brand proposition. She pointed out that these industry leaders bring decades of expertise, financial stability and proven track records for delivering high-quality insurance solutions. 'Their involvement enhances our platform's credibility and builds trust, particularly among first-time insurance buyers who may be new to the process. 'These collaborations also enable us to offer a broader range of robust, compliant products, and to co-develop digital-first solutions tailored to local needs, while benefiting from global best practices in risk management and customer service,' Shadhana said. When asked how insureKu is tailoring products and services to meet the needs of younger, digitally savvy Malaysians, she said insureKU designs every feature with the digital-native generation in mind, recognising that younger Malaysians expect speed, clarity and convenience. As a result, the platform offers a fully digital experience where users can compare, customise and purchase policies within minutes. 'Our platform offers real-time price comparisons, clear policy explanations and instant policy issuance. We are also continually improving the experience with features such as financial planning calculators and multilingual support, making insurance more accessible and inclusive. 'As one of the earliest authorised participants in Bank Negara Malaysia's Financial Technology Regulatory Sandbox, we further reinforce our credibility as a safe and compliant digital platform, giving users, especially first-time buyers, greater peace of mind when choosing and purchasing insurance online,' Shadhana said. Explaining how artificial intelligence (AI) and data analytics are shaping the future of insurance distribution and customer engagement in Malaysia, Shadhana said these technologies are set to play a big role in how insurers serve customers in Malaysia. 'At insureKU, we see this as a significant opportunity to raise the bar for customer service in the industry. 'We are still early in our journey, but the potential is clear. AI can simplify customer interactions – answering questions instantly, clarifying policy details, and guiding users through claims – while data analytics helps us continually improve support based on real user behaviour. 'Our goal is to deliver a highly personalised, intuitive service from quote to claim. As more insurers adopt digital-first models, we are excited to help make insurance more accessible and truly customer-friendly,' said Shadhana. She pointed out that industry projections from GlobalData suggest that Malaysia's general insurance market will expand steadily over the next few years, growing at a compound annual growth rate (CAGR) of 6.6% and reaching RM31.8 billion in gross written premiums by 2029. This growth is being driven not only by rising consumer awareness and evolving lifestyles but also by ongoing regulatory efforts to broaden insurance coverage and develop the overall market. Explaining how insureKU plans to increase insurance adoption among first-time buyers and underserved market segments in the next three to five years, Shadhana said the company's partnership with global insurers is designed to support this national agenda by creating inclusive, needs-based insurance solutions. 'Through digital channels, flexible pricing, and simplified product structures, we aim to reach first-time buyers and underserved communities who have traditionally faced barriers to access. By doing so, we help lay the foundation for a more resilient, better-protected population in the years to come. 'We want to close the protection gap, especially among groups like students, gig workers, and low-to-middle-income earners. We're doing this by making insurance easy to understand, affordable, and accessible on mobile devices,' she said.
