Letter to Editor
NOW is reporting season, and many companies, especially public-listed ones, are bouncing back after tough times. Recent headlines about profits made by many Malaysian public listed companies (PLCs) attest to this.
These turnarounds tell a bigger story. They show the resilience of Corporate Malaysia in navigating economic shifts, particularly in the post-COVID landscape.
There are many examples. Malaysia Airlines, which has faced financial struggles for years, is now on a more stable footing after restructuring and a recovery in travel.
AirAsia X, once burdened by pandemic-related losses, has regained momentum with increased passenger numbers and expanded routes.
Proton, after years of declining market share, has staged an impressive turnaround, thanks to its partnership with Geely. Better technology, stronger after-sales service, and new model launches have helped the brand reclaim its position in the domestic market while expanding abroad.
The GLCs have also shown improvements—Khazanah’s net asset value jumped RM 18.8 bil and recorded its highest ever returned 24.6% since its inception, generating RM 5.1 bil operating profit.
In the same vein, the Employees Provident Fund (EPF) had recently announced its highest dividend since 2017.
Even pharmaceutical companies like Pharmaniaga, which faced financial challenges in the past, have returned to profitability. The company recorded a net profit of RM131.8 mil and a 10.4% revenue increase to RM3.8 bil last year.
This recovery is also tied to broader improvements at the Armed Forces Fund Board (LTAT), who owns Boustead, Pharmaniaga’s parent company.
LTAT itself has been undergoing restructuring to strengthen its financial position, and as a key subsidiary, Pharmaniaga has benefited from a more stable corporate environment.
LTAT under leadership of new CEO, Mohammad Ashraf Md Radzi seems to be quietly chalking up small wins in its corporate turnaround and given time, the bets it has taken through the latest iteration of its transformation strategy, code named “Project Earth”, will bear fruit.
While corporate resilience has been crucial, external factors have also played a role in these recoveries. The global reopening of borders helped the aviation industry, leading to higher demand for travel.
By 2023, AirAsia X, which was hit hard by the pandemic, carried over 2.8 million passengers—nearly seven times more than the previous year—with an 80% load factor.
Proton’s turnaround was also aided by shifting global trends. With rising demand for fuel-efficient and electric vehicles, its collaboration with Geely allowed it to introduce more competitive models and access global supply chains.
Pharmaniaga’s expansion in Indonesia, where it benefited from higher demand and new branches, has helped strengthen its regional presence.
It is easy to brush aside these success stories as luck or market timing. But the reality is that these companies saw opportunities and, more importantly, knew how to make the most of them.
The government also played a part in shaping these recoveries. Policies such as the National Semiconductor Strategy and the New Industrial Master Plan (NIMP) 2030 have strengthened Malaysia’s position as a semiconductor hub, benefiting key players in the tech and manufacturing sectors.
Similarly, the RM45.3 bil healthcare allocation in Budget 2025 and the RM2 bil earmarked for the Approved Products Purchase List (APPL) purchases have created opportunities for pharmaceutical companies like Pharmaniaga supplying critical medicines to the market.
As we take stock of this reporting season, we should acknowledge the resilience of Malaysian companies. Many have weathered difficult periods and are now showing signs of recovery.
We should recognise the resilience of companies like Malaysia Airlines, AirAsia X, Pharmaniaga, Proton, and many others that have found a way to turn challenges into opportunities.
Their recovery didn’t happen by chance—strong leadership and strategic decisions played a key role in shaping their comeback. – March 6, 2025
Thomas Rozario,
Bangi
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image: Properly
