Malaysia Money Matters Daily News Digest 28th May 2025

In today’s episode of Malaysia Money Matters, we dig into a wave of local earnings—from record-breaking bank results to surging data centre contracts—while also unpacking global trade tensions, index reshuffles, and currency swings. We break down what it all means for investors navigating both local strength and global volatility.🇲🇾 Malaysian Company & Market News🔹 AMMB & Alliance Bank Post Record ProfitsAMMB delivered a record FY2025 net profit of RM2B (+7%), with a higher dividend payout ratio of 50%. Alliance Bank’s full-year profit hit RM750.7M, driven by 12% loan growth—double the industry average—and a planned RM600M rights issue to bolster capital.🔹 MN Holdings Hits All-Time HighQ3 net profit tripled to RM16.69M on robust utility project execution. The group also secured a RM52.5M data centre job in Johor, reinforcing its position in the booming digital infrastructure space.🔹 Felda’s New FGV Offer & Sime Darby OutlookAnalysts recommend FGV shareholders accept Felda’s revised RM1.30/share offer, seen as a fair 10% premium. Meanwhile, Sime Darby warned of a weaker FY2025, citing pressure on its Motors division from global competition.🔹 FBM KLCI Index Shuffle Incoming?CIMB Securities suggests AMMB may replace Hong Leong Financial Group due to the latter’s failure to meet liquidity criteria. Index reshuffles can drive significant fund rebalancing.🔹 Earnings Boosts Across the BoardStrong quarters from Deleum, Greatech Technology, Nextgreen Global, and Velesto Energy. Malakoff, however, saw profit decline due to lower energy payments. Sentral REIT acquired RM70M in retail assets from Sunrise to boost 2025 income.🌍 Global Trends & Their Impact on Malaysia🌐 Anwar, ASEAN, and the US Trade TightropeASEAN members reached consensus to avoid undermining each other in future US trade deals. PM Anwar Ibrahim has requested a direct meeting with President Trump amid ongoing tariff uncertainty.🇪🇺 EU Scrambles on Tariffs, China Holds GroundEU accelerates US talks to avert 50% tariffs on autos and steel. China’s April industrial profits held steady, but Asian currencies, including the ringgit, slipped on global uncertainty.💸 Fed Holds Steady Amid UncertaintyMinneapolis Fed’s Kashkari signaled caution on rate cuts due to unclear inflation trends and trade policy fallout. Meanwhile, US capital goods orders fell, adding to concerns.📉 Bond Markets Rally on Fiscal JittersGlobal bond yields dipped as investors grew wary of sovereign debt loads. US 30-year yields dropped below 5%, while Japan considers debt sale adjustments.📌 Key Takeaways & Investor Insights✅ Malaysian banks remain a bright spot, with AMMB and Alliance Bank delivering record earnings and dividend strength.✅ MN Holdings’ performance highlights rising demand for digital infrastructure and data centre development.✅ Potential index changes—like AMMB entering the FBM KLCI—can spark significant fund movements.✅ Ongoing US tariff policy remains a major wildcard for ASEAN exporters and global inflation.✅ Market volatility is being shaped not just by earnings, but also by geopolitics and policy shifts. Stay nimble. 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