Corporate Malaysia Recap: Affin Bank Upgraded, Hong Leong Bank Revises Rates, BTM Resources Scraps Renewable Energy Project

Affin Bank upgraded to 'AA' in MSCI ESG ratings. Hong Leong Bank and Hong Leong Islamic Bank to revise lending and deposit rates by 25bps. BTM Resources scraps 7MW renewable energy project due to financing difficulties and rising costs. Jasa Kita's substantial shareholders sell 40.3% stake to Kintan Prima for RM68.9mn. Greatech Tech transfers 57.7% stake to GTech Holdings shareholders. Meta Bright sells Australian subsidiary for RM25.4mn. Hextar REIT buys 41.8 acres of land in Melaka for RM40mn. Malaysian Resources Corp enters joint venture agreement for Ipoh Sentral project. Econpile Holdings secures RM98.2mn construction contract. SkyGate Solutions raises stake in SkyGate Integration to 95% for RM9.8mn.

KUALA LUMPUR: Affin Bank Bhd has been upgraded from ‘A’ to ‘AA’ in the Morgan Stanley Capital International (MSCI) environmental, social and governance (ESG) ratings, reflecting significant improvements in its corporate governance practices [1]. The upgrade was driven by enhancements in board oversight, accountability, and transparency, aligning with global best practices.

The bank's approach to cyber security risk mitigation, product transparency, whistleblower policy, and business ethics was found to be superior or in line with global standards. President and group chief executive officer Datuk Wan Razly Abdullah expressed pride in the recognition, stating that sustainability is a core driver of value creation and long-term resilience [1].

Affin Bank continues to introduce purpose-driven products and services, such as green financing, ethical investment solutions, and inclusive digital offerings. These initiatives support social enterprises, climate-conscious borrowers, and underserved communities, delivering both commercial and societal value [1].

Lending Rates Adjustments

In response to Bank Negara Malaysia's Monetary Policy Committee cutting the overnight policy rate (OPR) by 25 basis points to 2.75% on July 9, several banks have announced reductions in their lending and deposit rates [3]. Hong Leong Bank and Hong Leong Islamic Bank have lowered their standardised base rate (SBR) to 2.75%, while their base rate (BR) and Islamic base rate have been revised to 3.63% from 3.88% [3].

RHB Bank has reduced its SBR and BR by 25 basis points, bringing them to 2.75% and 3.50% per annum, respectively. Similarly, Maybank has announced a reduction in its BR to 2.75% from 3%, effective July 14. Other banks, including Public Bank, CIMB, and Affin Bank, have also adjusted their rates accordingly [3].

Corporate Developments

BTM Resources has scrapped a 7MW renewable energy project due to financing difficulties and rising costs. Jasa Kita's substantial shareholders sold a 40.3% stake to Kintan Prima for RM68.9mn. Greatech Tech transferred 57.7% of its stake to GTech Holdings shareholders. Meta Bright sold its Australian subsidiary for RM25.4mn. Hextar REIT purchased 41.8 acres of land in Melaka for RM40mn. Malaysian Resources Corp entered a joint venture agreement for the Ipoh Sentral project. Econpile Holdings secured a RM98.2mn construction contract. SkyGate Solutions raised its stake in SkyGate Integration to 95% for RM9.8mn [2].

References:

[1] https://www.thestar.com.my/business/business-news/2025/07/11/affin-group-achieves-msci-esg-rating-upgrade-to-aa
[2] https://theedgemalaysia.com/node/762370
[3] https://theedgemalaysia.com/node/762229