Year 2025 witnessed many economic and trade challenges, both globally and domestically, with impact on business operations including ours.
Our Steel Division is adopting strategies to ensure cost efficiency in the competitive steel sector through plant upgrades and value-added cut-and-bend services aimed at increasing construction efficiency and material performance.
The division is seeking to capitalise on the projected 1.3% rise in global steel demand (October 2025 Outlook by World Steel Association) through strategic partnerships with established foreign manufacturers of high quality steel products. This combination of localised fabrication and global metallurgical excellence will position us as a premier partner for civil and commercial applications in the steel sector.
2025 was a year of stabilisation for our Mining Division after the devastating landslide in its mining site in Banting in 2024. We reviewed our operations, trimmed costs and also embarked on installing a new generation of tin processing plant to increase the yield. With the positive tin price outlook with prices near historical highs, we anticipate 2026 to be favourable with the startup of the new processing plant in the first quarter thereby increasing the recovery and output.
In 2025, Malaysia’s economy expanded steadily, with GDP growth of around 4–5%, supported by firm domestic demand and sustained investment activity, providing a relatively stable environment for the property sector with a sales focus aligned with market demand. Our Property Division delivered a solid outcome across its industrial and data-driven developments in its industrial land in Banting Industrial City, Mahkota commercial development and some other sales.
The division also strengthened its pool of unbilled sales within its industrial and data centre–related land assets; with advanced plans for township developments in Bandar Bukit Mahkota and Shah Alam. Anchored by a diversified, expanding land bank and a measured approach to future township rollouts, it is well positioned to navigate market conditions, continue selective land acquisitions, and adapt development plans and launch timing in line with evolving market dynamics, supporting long-term value creation and sustainable growth.
Parkson operates a total of 81 stores with 39 stores in Malaysia, 41 stores in China and one supermarket in Laos. In 2025, we opened 2 new stores in Malaysia as well as in China; in Sentra Mall @ Ipoh and in Hextar Empire City in Damansara Perdana, and the new Datong Parkson Outlets in northern Shanxi and Mianyang Shopping Centre in Sichuan in China. For Malaysia, the Group remains optimistic of the overall retail prospects with the improved consumer sentiments and tourist arrivals in line with the extended visa-free travel between Malaysia and China. Parkson will continue to work with our business partners to offer the latest fashion and lifestyle products for customers.
Parkson Credit, under our Consumer Credit Financing Division, has established itself as one of the leading motorcycle financiers in Malaysia. The successful launch of its RM1.0 billion Sukuk Bond under HSBC Malaysia’s asset-backed Islamic Medium-Term Notes Programme in December 2024 marks a significant milestone, fueling our path toward accelerated business expansion. Building on this momentum, the company continues to demonstrate consistent growth while contributing positively to the Group’s top and bottom lines.
Our other businesses are SECOM which offers electronic and physical security services, and recorded higher revenue with a slight drop in operating profit due to the increase in operating expenses, mainly from the minimum wage adjustment in 2025. It plans to ride on AI technology to continue strengthening its system integration and Central Monitoring Services in 2026.
POSIM supplies building materials including roofing and wall cladding solutions and ironmongery products; as well as automotive and industrial lubricants under the HI-REV, T-TRAX and TorQe brands. It is focusing on higher quality products with better margins, and stronger sales network to reach out to a wider customer base while keeping costs low and striving for higher productivity and profitability. The automotive lubricants business engages in active brand building strategies via social media, motorsports and on the road initiatives.
Likom in Melaka, provides OEM contract manufacturing services for mechanical and electronics systems, and is continuing with its stable operations.
For 2026, Bank Negara forecasted that Malaysia’s economy will expand between 4.0%–4.5% driven by domestic demand supported by a positive labour market, continued employment and wage growth, and government assistance programs; and investment in strategic sectors like digital/AI, infrastructure, and implementation of national master plans.
A moderate export performance is anticipated for 2026, with global demand pressures and tariffs offset by continued demand for Electrical & Electronic (E&E) goods, robust inbound tourism with Visit Malaysia 2026, and recovery in mining exports.
Prevailing global trade uncertainties i.e. US tariffs and slowdown in major economies pose external risks with the need for the Government to maintain sound and prudent fiscal policies.
I wish to express my sincere thanks to all staff for your continuing hard work and dedication throughout the years and to be prepared to meet the challenges ahead.
My appreciation goes to all our stakeholders; customers, business partners and associates, financiers, shareholders, directors and the Government authorities for their continuing support and cooperation.
I wish everyone well in the new year and take this opportunity to extend festive greetings to those celebrating the Lunar New Year.
TAN SRI DATUK SERI UTAMA WILLIAM CHENG
GROUP EXECUTIVE CHAIRMAN