Significant Event

·        The Malaysian government is looking at the possibility of introducing carbon pricing solely for the iron and steel sector.

·        IHH Healthcare, Malaysia's largest private hospital operator, is exploring the feasibility of outcome-based payment models.

·        The yield on Malaysia's 30-year bond is sinking to a 1-year low at 4.141%, while the yield on Malaysia's 1-year bond has risen to a 1-year high at 3.3%. Usually, rising short-term bond yields coupled with falling long-term bond yields can serve as a warning signal of potential economic difficulties ahead.

Real Estate Industry 

• Paragon Globe Bhd is selling more land located in Plentong, Johor Bahru, to Bridge Data Centres Malaysia IV Sdn Bhd.

Cash Call/ Debt restructuring/Restructuring/Proposed Listing

·        PMB Technology Bhd, a company with an annual capacity of 108,000 MT of silicon, is undertaking a rights issue of up to 266.78 million new ordinary shares on the basis of six rights shares for every one existing ordinary share held to raise around RM300 million.

·        WCT Holdings Bhd, the operator of KLIA 2 and Paradigm Mall, is raising up to RM163.06 million via a private placement of shares to third-party independent investors.

Company Expansion Plan/ Capex Plan

·        Dialog Group, the operator of Pengerang Deepwater Terminals, is adding 150,000 cubic metres of storage for renewable and petroleum products at its Terminal Langsat 3 (DTL3) in Tanjung Langsat, Johor.

News we are reading

Malaysia's recent removal of subsidies has significantly increased costs for construction companies due to the higher expenses associated with operating heavy machinery. Now, the government is proposing a carbon tax on steel, which will further escalate construction costs. Consequently, construction expenses are expected to rise, leading to higher real estate prices.