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Assalamu Alaykum,
Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the Malaysia from June. Let’s get started.
Stock market updates
Malaysian markets showed moderate gains in June despite year-to-date declines across key indices. The benchmark FTSE Bursa Malaysia KLCI rose 1.98% to close at RM 1,532.96, though it remains down 6.12% for the year. The FTSE Bursa Malaysia Mid 70 Index gained 1.59% to RM 16,399.61 (YTD: -12.91%), while the FTSE Bursa Malaysia Top 100 Index increased 1.88% to RM 11,229.75 (YTD: -8.06%).
Solarvest Holdings, through JV firm Seri Suria Power, signed a 25-year power purchase agreement with the Brunei government to develop a 30MWac solar plant on a remediated landfill, generating 64.47 million kWh annually. The plant, Brunei’s largest solar project to date, aligns with national goals to achieve 30% renewable energy and cut emissions by 2030. The JV includes Solarvest (34%), Khazanah Satu (30%), and Serikandi (36%), ensuring local participation and capacity building.
Dialog Group has been awarded a 14-year production sharing contract by Petronas for the Mutiara Cluster off Sabah, marking the first PSC under Malaysia’s Bid Round 2025. Dialog’s wholly owned subsidiary will fully operate the five-field cluster, with first production expected by 2029 following two years each of pre-development and development phases. The deal aligns with Dialog’s strategy to expand its upstream presence and build long-term revenue streams beyond its core tank leasing business.
UUE Holdings Bhd has landed RM83.4 million in new underground cabling contracts from Sutera Utama Sdn Bhd, just days after announcing RM92.4 million in wins. These latest deals lift its total order book to an all-time high of RM416 million, ensuring earnings visibility for the next 2–3 years. The contracts involve installation and commissioning of 11kV and 33kV underground cables for Tenaga Nasional’s network, spanning two years with a one-year extension option.
VS Industry Bhd reported a 56.3% drop in 3QFY2025 net profit to RM23.77 million due to reduced sales orders and rising finance costs, with revenue falling 10% year-on-year to RM909.42 million. The company declared a share dividend and highlighted that the revised US tariffs have caused order adjustments, with near-term demand likely influenced by evolving global trade policies. Despite this, it remains optimistic on long-term prospects, supported by new product development, growing operations in the Philippines, and strong financial footing.
Binastra Corporation has won a RM268 million contract to construct a 45-storey serviced apartment block in Segambut for TNJ Development, with work set to begin in August 2025 and finish by December 2027. This deal adds to its RM976.9 million in new wins this year, lifting its total outstanding order book to RM4.3 billion. The contract is expected to contribute to earnings from FY2026 to FY2028 as the company expands its Klang Valley footprint.
NCT Alliance is acquiring a 55.72% stake in Grorich Corp Sdn Bhd, owner of land in Putatan, Sabah, for RM36 million, fully settled through a transfer of approximately 75 million shares. This marks its second Sabah land acquisition in three months, aligning with its Ion Marina Bay project and expanding its landbank for long-term development. The share-based payment structure preserves cash and limits gearing, while reinforcing NCT’s strategic push into East Malaysia’s property market.
Top gainer and top loser Halal stocks in the Malaysia
Economic updates
Thailand has restarted formal tariff negotiations with the US after months of delays, aiming to finalize its proposal this week to avoid the expiry of the current tariff pause in July. The talks seek to avert a planned 36% duty on Thai exports by offering concessions like reducing Thai tariffs on US goods, easing non-tariff barriers, and tightening trade compliance. With the US as its second-largest trading partner, Thailand is under pressure to preserve its export volumes and prevent further economic slowdown.
CPO prices are expected to stay within RM3,900–RM4,200 per tonne through July, supported by strong exports to China and India, higher crude oil prices, and better price competitiveness over soybean oil. Despite record May stocks of 1.77 million tonnes, India’s import duty cut and CPO’s cost advantage boost demand. While soft oil supply may limit gains, downside risk is minimal with stable inventories and easing output.
Malaysia’s halal industry contributed RM149 billion to GDP and RM61.8 billion in exports from 2023–2025 under the first phase of the Halal Industry Master Plan, with an 89.7% implementation rate. Deputy PM Zahid highlighted strong local and global confidence in Malaysia’s halal sector, supported by RM3.8 billion invested across 14 halal parks. A new Halmas framework targets RM25 billion in investment by 2030, alongside initiatives like Women in Halal Industry to boost inclusion and competitiveness.
Maybank Investment Bank expects Malaysia’s GDP growth to slow further from 2Q 2025, maintaining a 4.1% full-year forecast below the government’s 4.5%-5.5% target, citing US trade policies and tariff uncertainties. Domestic risks like delayed fuel subsidy reforms and tax changes may hinder deficit reduction, while consumer spending and investment remain key growth drivers. With moderating inflation, Maybank IB anticipates a 25 bps rate cut by Bank Negara Malaysia in Q3 2025.
Malaysia’s unemployment rate hit a 10-year low of 3.0% in April 2025, supported by resilient domestic demand, tourism, and robust foreign investment, according to economists. Kenanga and BIMB Securities expect stable labour market conditions, though global trade tensions and US tariffs could pressure export-driven sectors like electronics. Youth unemployment remains a concern, with rates above 10%, despite improving overall employment levels.
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