Malaysia Money Matters Daily News Digest 23rd May 2025

In today’s episode of Malaysia Money Matters, we unpack a busy day of earnings updates, sector shifts, and international developments—from Sunway’s data centre-driven surge to a potential strengthening of the ringgit amid global dollar softness. Plus, what Eurozone weakness and Trump’s tax bill mean for Malaysia.🇲🇾 Malaysian Company & Market News🔹 Public Bank Remains a Defensive PickQ1 profit rose 5.6%, though management lowered their outlook due to net interest margin pressure and macro risks. Analysts remain positive, citing strong buffers and a 5.2% dividend yield forecast.🔹 CelcomDigi Posts Steady Start to FY25Net profit up 1.9%; dividend declared. Network integration now 78% complete, with backend system harmonisation seen as a long-term strength builder.🔹 Sunway’s Construction Business BoomsQ1 net profit jumped nearly 11%, driven by a 170% surge in construction profit, largely from data centre projects. New orders hit RM2.2B, aiming for RM6B this year.🔹 Tomei Capitalises on Gold RallyRecord Q1 earnings and sales—up 33%—as gold prices remain strong amid investor flight to safe havens.🔹 Mixed Bag in the Glove SectorKossan posted a 13% Q1 profit rise, but Supermax reported deeper losses, pressured by Chinese competition and tariff headwinds.🔹 Dayang Enterprise Secures Petronas Win but StrugglesDespite a new Petronas contract, Q1 net profit slumped 56% on low vessel utilisation and higher costs.🔹 Press Metal Profits UpQ1 net profit rose 13%, supported by aluminium price strength. Dividend declared.🌍 Global Trends & Their Impact on Malaysia🌐 Eurozone Private Sector Activity ShrinksUnexpected contraction in May—services worst hit—signals continued fragility despite isolated manufacturing resilience.🌏 Singapore Warns of Recession RisksDespite strong 3.9% Q1 GDP growth, government maintains cautious full-year forecast (0–2%) due to global tariff threats.💸 Trump’s Tax and Spending Bill Passes US HouseExpected to widen the deficit, fueling concerns that support gold and weigh on the US dollar—raising the ringgit’s upside potential if exporters repatriate foreign earnings.💱 Ringgit Watch: Currency May Outperform in ASEANAnalysts flag Malaysia’s large foreign currency deposits and possible conversion flows as drivers for ringgit strength amid global FX volatility.🛢 OPEC+ Mulls New Output Hike for JulyAnother 411,000 bpd increase discussed, following hikes in May and June. Potential impact on oil prices and regional producers.🌐 ASEAN-China FTA 3.0 CompletedTrade pact now includes digital economy provisions, aiming to boost supply chain integration and regional recovery.🚢 South China Sea Tensions Flare AgainNew confrontation between China and the Philippines underscores ongoing geopolitical risk in regional waters.📌 Key Takeaways & Investor Insights✅ Malaysia’s tech and construction sectors continue to show resilience, especially with data centre growth.✅ Glove sector remains pressured by intense pricing and trade tensions.✅ Ringgit strength could be a hidden upside if capital repatriation plays out.✅ Sunway, Public Bank, and CelcomDigi highlight strong operational fundamentals despite broader economic concerns.✅ Global developments—from Eurozone weakness to US fiscal policy—are increasingly shaping local investment dynamics.🎧 Listen Now for a deep dive into Malaysia’s financial gems and global trends shaping 2025!🔗 Subscribe & Share the Malaysia Money Matters podcast on Substack, Spotify, or Apple Podcasts.Malaysia Money Matters is a one-person passion project. Subscribe for free or support me as a paid subscriber—it means the world to me! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit mmoneymatters.substack.com