by Faiz Riziq | Feb 27, 2025 | Ekonomi, Perniagaan & Korporat, Fakta & Informasi, Luar Negara, English & Other Country
Nvidia Corp, the chip giant at the heart of the artificial intelligence (AI) revolution, delivered solid but not spectacular quarterly earnings on Wednesday, leading to a subdued reaction from investors accustomed to record-breaking results.
For the fiscal first quarter ending in April, Nvidia projects sales of about US$43 billion (RM190.49 billion), slightly above analysts’ average estimate of US$42.3 billion. Some had even anticipated figures as high as US$48 billion.
However, the company warned that profit margins would be tighter than expected as it accelerates the rollout of its latest AI chip, Blackwell. Adding to concerns, potential US tariffs could further impact earnings. As a result, Nvidia shares dipped slightly in after-hours trading.
AI Market Faces Uncertainty
The AI industry is at a turning point. Nvidia shares have slipped this year due to fears that data centre operators might cut back on spending. The emergence of Chinese startup DeepSeek has also sparked concerns that AI models can be developed more affordably, reducing the demand for Nvidia’s powerful chips.
Although Nvidia executives addressed many of these concerns, the company is finding it harder to consistently exceed investor expectations. “Guidance was slightly underwhelming,” said Logan Purk, an analyst at Edward Jones. However, the early success of Blackwell should help reassure investors despite initial reports of production delays.
Nvidia’s Rapid Growth
Despite the challenges, Nvidia’s latest financial results reflect its extraordinary growth trajectory. The company generated US$11 billion in revenue from Blackwell in the fourth quarter alone, making it the fastest product ramp in Nvidia’s history. “Demand for Blackwell is amazing,” CEO Jensen Huang said.
Fiscal fourth-quarter sales reached US$39.3 billion, surpassing analysts’ estimates, though by the narrowest margin since early 2023. Meanwhile, profits of 89 cents per share, excluding certain items, narrowly beat Wall Street’s projection of 84 cents.
The stock, which soared in 2023 and 2024, has dipped by 2.2% this year, reflecting concerns about sustaining its meteoric rise. Nonetheless, Nvidia remains the dominant player in AI chips, doubling its revenue over the past two years as major tech companies continue to invest heavily in data centre infrastructure.
The Future of AI and Nvidia’s Role
Nvidia’s data centre division, its largest revenue driver, posted US$35.6 billion in sales, surpassing analysts’ estimates of US$34.1 billion. Gaming-related sales, once Nvidia’s core business, came in at US$2.5 billion—lower than the expected US$3.02 billion. Meanwhile, its automotive unit generated US$570 million in revenue.
Historically known for its graphics processing units (GPUs), Nvidia has become synonymous with AI computing. Its chips are crucial in training AI models and running complex inference processes that power applications like ChatGPT.
Heading into the earnings report, concerns loomed about whether Nvidia could sustain its rapid growth as it transitions to the Blackwell chip. The new technology is more advanced but poses manufacturing challenges. Additionally, DeepSeek’s recent AI model launch raised fears that AI computing could become more efficient, potentially reducing the need for Nvidia’s high-powered chips.
However, major customers like Microsoft continue to invest heavily in AI infrastructure, signaling that demand remains strong. Huang also downplayed concerns about DeepSeek, arguing that its approach to AI will ultimately increase the need for Nvidia’s products. He claimed that the fine-tuning process required for these AI models could exponentially increase computing power demand.
“The future of AI will require much more compute,” Huang said, describing DeepSeek’s model as “an excellent innovation.”
The Road Ahead
While Blackwell is expected to drive Nvidia’s future growth, its rollout has come with costs. The company acknowledged that expenses related to launching the new chip have weighed on profit margins. However, CFO Colette Kress reassured investors that cost efficiencies will improve over time, and gross margins should return to the “mid-70s” percentage by the end of the year.
For the current quarter, Nvidia expects gross margins of around 71%, slightly below analysts’ estimates.
Despite the hurdles, Nvidia has only missed revenue estimates once in the past five years. It has consistently outperformed expectations by more than 10% in recent quarters, setting a high bar for future performance.
“We think it will be challenging for management to continue significantly exceeding expectations for growth,” said Purk.
As Nvidia navigates this evolving landscape, its ability to maintain its AI dominance will depend on execution, innovation, and the continued expansion of AI adoption worldwide.
by Faiz Riziq | Feb 27, 2025 | Ekonomi, Perniagaan & Korporat, Fakta & Informasi, Luar Negara, English & Other Country
Perkembangan kecerdasan buatan (AI) semakin memberi impak besar terhadap dunia pekerjaan. Bukan sahaja meningkatkan tahap produktiviti syarikat, malah AI kini menjadi faktor utama dalam pengurangan tenaga kerja manusia secara berperingkat. Terbaru, Development Bank of Singapore (DBS) mengumumkan rancangan untuk menggantikan 4,000 pekerja kontrak dan sementara dengan AI dalam tempoh tiga tahun akan datang.
Langkah ini diambil sebagai sebahagian daripada usaha DBS untuk mengurangkan kos operasi dan mengekalkan kestabilan prestasi syarikat. Malah, sokongan AI dijangka mampu menjana pendapatan tambahan melebihi SGD 1 bilion setahun, sekali gus memperkukuhkan kedudukan DBS dalam industri perbankan.
Namun, keputusan ini tidak terlepas daripada kritikan, terutama berkaitan impaknya terhadap tenaga kerja. Walau bagaimanapun, pihak DBS memberi jaminan bahawa pekerja tetap tidak akan terjejas dan sebaliknya, sekitar 1,000 jawatan baharu berkaitan kemahiran AI akan dibuka bagi memenuhi keperluan pasaran pekerjaan semasa.
Dengan perubahan pesat dalam teknologi, langkah DBS ini mungkin menjadi penanda aras bagi institusi kewangan lain dalam mengadaptasi AI untuk operasi yang lebih cekap dan menguntungkan.
by Faiz Riziq | Feb 25, 2025 | Ekonomi, Perniagaan & Korporat, Kewangan, Keberhutangan & Pelaburan, Luar Negara, English & Other Country
The aviation industry in Malaysia is set for a significant transformation with the partnership between Menzies Aviation and MMAG Sky Services Sdn Bhd. This collaboration aims to introduce international expertise, expand business operations, and elevate service quality within the sector, according to Transport Minister Anthony Loke.
Menzies Aviation has officially secured its ground handling licence from the Malaysian Aviation Commission (Mavcom), effective November 1, 2024, enabling the company to commence operations in Malaysia.
Enhancing Ground Handling Services
Speaking at the launch of Menzies Aviation Malaysia, Loke highlighted the importance of this collaboration in strengthening Malaysia’s position as a regional aviation hub.
“Menzies is a company with a long-standing history, and we believe their presence in Malaysia will introduce international best practices. We look forward to their growth and the improvements they will bring to our aviation industry,” he said.
Currently, Menzies is partnering with MMAG Sky Services to handle ground operations, focusing primarily on the cargo segment.
A Global Aviation Leader Arrives in Malaysia
Founded in 1833, Menzies Aviation has established itself as a world-leading ground handler, operating in over 265 airports across 55 countries. The company serves more than 500 customers globally, offering services such as ground handling, air cargo management, and aircraft fuelling. Their mission is to enhance aviation safety, efficiency, and reliability worldwide.
Raising KLIA’s Global Standing
Darren Masters, Menzies Aviation’s Executive Vice President for Oceania & Southeast Asia, expressed the company’s excitement about entering the Malaysian market, noting the nation’s well-developed aviation infrastructure.
“The aviation industry here already operates at a high level. We aim to build upon this strong foundation and bring further enhancements,” Masters said.
He also emphasized Menzies’ commitment to making Kuala Lumpur International Airport (KLIA) one of the top global airports.
“We want to start small, establish our footing, and then expand. Ultimately, we aspire to become a key player in Malaysia’s aviation industry,” he added.
Investment in Infrastructure and Future Growth
One of the key areas identified for improvement is upgrading airport equipment to meet international standards. Masters acknowledged that some current airport equipment may not be at the level required for optimal efficiency and consistency.
“We are assessing how we can contribute to improving the infrastructure at KLIA. Over time, we plan to invest in new equipment, which will enhance overall service quality across the network,” he explained.
Malaysia was chosen as one of Menzies’ Tier 1 expansion countries due to its strong infrastructure, skilled workforce, and welcoming business environment.
Long-Term Commitment and Licence Renewal
Menzies Aviation has been granted a 12-month operating licence. However, Masters is confident in securing a renewal based on the company’s performance.
“If we deliver high-quality services, I’m sure the authorities will see our value and extend our licence. It’s up to us to prove that we deserve to stay,” he said.
A Strategic Partnership for the Future
The establishment of Menzies Aviation (Malaysia) Sdn Bhd marks a significant milestone in Malaysia’s aviation industry. This joint venture between Menzies Aviation and MMAG Sky Services—a subsidiary of MMAG Aviation Consortium Sdn Bhd under MMAG Holdings Bhd—sets the stage for greater advancements in aviation services.
With a focus on efficiency, innovation, and superior service quality, the partnership between Menzies and MMAG is poised to strengthen Malaysia’s standing in the global aviation landscape, creating new opportunities and driving the industry towards greater excellence.
by Faiz Riziq | Feb 24, 2025 | Kewangan, Keberhutangan & Pelaburan, Luar Negara, English & Other Country
The Employees Provident Fund (EPF) has shown an encouraging performance for the third quarter of 2024, raising hopes for higher returns for its contributors. Second Finance Minister, Datuk Seri Amir Hamzah Azizan, stated that based on EPF’s strong financial standing, contributors can expect a better dividend distribution for 2024 compared to 2023.
“If we look at its performance up to the third quarter of last year, it has been very encouraging. By the third quarter, EPF had already earned RM57.5 billion in investment income, surpassing the previous year’s performance.
“This momentum is expected to continue into the fourth quarter. The dividend will be promising, but I cannot disclose the exact figure yet. Just wait for it—it will be better,” he shared with the media after completing the “Larian ASEAN: Trek Kewangan @MOF” event organised by the Finance Ministry (MOF) on Sunday.
Higher Dividends in 2023, Even Better in 2024?
For 2023, EPF declared a higher dividend of 5.50% for conventional savings, up from 5.35% in 2022, with a total distribution of RM50.33 billion. Meanwhile, for Shariah savings, the dividend increased to 5.40% from 4.75% in 2022, with a total distribution of RM7.48 billion. EPF is expected to announce its 2024 dividend rate in early March. Several economists and financial experts have predicted that this year’s dividend could exceed 6%, given the strong investment income reported so far.
Financial Awareness Through Sports
More than 3,700 MOF staff and members of the public participated in the Larian ASEAN: Trek Kewangan @MOF event, held in conjunction with Malaysia’s ASEAN chairmanship in 2025. The event aimed to educate MOF staff and the public about ASEAN’s role and significance to Malaysia and other member nations.
Datuk Seri Amir Hamzah, along with MOF’s top management, completed the three-kilometre category run.
“The run promotes a healthy lifestyle, especially among MOF staff, aligning with the Madani values of well-being, which emphasise balance in life,” he added.
With EPF’s stellar performance, contributors can look forward to promising financial returns, reinforcing the fund’s role in securing Malaysians’ retirement future.
by Faiz Riziq | Feb 21, 2025 | Ekonomi, Perniagaan & Korporat, Kewangan, Keberhutangan & Pelaburan, Luar Negara, English & Other Country
Tesla Inc’s potential move to establish a manufacturing plant in Malaysia remains under discussion as the company evaluates its commercial viability amid growing competition in both regional and domestic markets. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz stated that Malaysia’s initial engagement with Tesla in 2023 focused on EV infrastructure, including charging stations and sales operations, while the possibility of a manufacturing facility is still being considered.
Competition in the Southeast Asian EV Market
Several Southeast Asian nations are also competing to attract Tesla, but increasing competition from other EV brands, such as BYD, MG, Great Wall Motor, and Neta, is affecting expansion strategies.
Tesla faces mounting challenges worldwide, as rival brands introduce more affordable and technologically advanced EV models, impacting the company’s sales targets. Zafrul highlighted that Tesla currently has only one manufacturing plant in Asia, and any decision to set up a plant in Malaysia will depend on commercial factors.
Malaysia’s Growing EV Industry
Local automaker Proton Holdings Bhd has also entered the EV space with the launch of its first electric model, the e.MAS 7, in December 2024. Based on the Geely Galaxy E5 platform, the C-segment SUV is priced at RM109,800 for the Prime variant and RM123,800 for the Premium version.
Reports have suggested that Tesla was reconsidering its expansion into Malaysia and Southeast Asia, which initially dampened expectations of a local assembly facility. However, the company continues to strengthen its presence in Malaysia through direct sales and the rollout of its charging infrastructure.
Government Incentives for EV Manufacturers
Malaysia’s Battery Electric Vehicle (BEV) Global Leaders initiative outlines key conditions for foreign EV manufacturers looking to establish a presence in the country. These include:
- Installing at least 50 ultra-fast chargers (above 180kW capacity), with 30% open to the public and compatible with multiple EV brands.
- Partnering with at least 10 local companies to support the development of the domestic EV charging ecosystem.
- Collaborating with local suppliers for EV charger installations and sourcing components such as transformers and cables from Malaysian manufacturers.
With Malaysia positioning itself as a hub for EV innovation, Tesla’s next move remains a highly anticipated development in the region’s automotive landscape.
by Faiz Riziq | Feb 19, 2025 | Ekonomi, Perniagaan & Korporat, Luar Negara, English & Other Country
While Sarawak respects the federal and state laws pertaining to petroleum and gas development activities there, the state has requested that gas produced in areas offshore western Sarawak and in the continental shelf be designated for the state’s “domestic” use, says its Premier Tan Sri Abang Johari Tun Openg.
In a statement, Abang Johari said the request is to ensure that Sarawak will have the supply of 1.2 billion standard cubic feet per day (MMscf/d), which is guaranteed by Petroliam Nasional Bhd (Petronas), to advance the Sarawak Gas Roadmap.
“The Sarawak government will have to ensure that the guaranteed volume shall be delivered at a fair price or a price that would promote investments and industries in Sarawak.
“The Sarawak government, in the national interests, is firmly committed to ensuring that the guaranteed volume of gas as well as any additional gas produced from the offshore of western Sarawak and elsewhere in the continental shelf will be used sustainably, in support of the growth of industries in Sarawak, to meet the demand for energy in Peninsular Malaysia and the production of clean energy, consistent with the declared intention of the federal government that Sarawak will be the clean energy hub for Malaysia,” said the premier in the statement.
To give perspective, the 1.2 billion MMscf/d requested by Sarawak is around 17% of Malaysia’s current total gas production of seven billion MMscf/d, according to Petronas Activity Outlook 2024-2026.
The guaranteed volume of gas and any additional production from the requested offshore areas will be used “sustainably,” said Abang Johari, in particular, consistent with the federal government’s “declared intention” for Sarawak to be Malaysia’s clean energy hub.
Petronas’ Contractual Obligations Unaffected
Abang Johari said a mutual understanding was reached with Prime Minister Datuk Seri Anwar Ibrahim that Petronas and Petros will work together “as partners to advance national and state interests and revenues,” but he also stressed that Sarawak’s interests “would have to be prioritised.”
Abang Johari stated that Petros’ role as Sarawak’s gas aggregator will not affect Petronas’ ability to fulfil its domestic and international contractual obligations.
However, this “must not in any way adversely affect the role of Petros as gas aggregator” and is not inconsistent with the Distribution of Gas Ordinance 2016 (DGO 2016), he added.
Abang Johari’s statement comes after Anwar’s parliamentary statement on Monday concerning Petros assuming control as Sarawak state gas aggregator effective March 1, 2025, and assurances that Petronas’ contractual obligations in Sarawak would be retained.
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