Malaysia to see more M&A activities

KUALA LUMPUR: Malaysia might see an upward trend in merger and acquisition (M&A) activities, with investment inflows expected to come in from Europe and North Asia.

Malaysian Mergers and Acquisitions Association (MMAA) vice-president Yap Kong Meng said he expects a higher level of M&A activity, driven by a weaker ringgit, private equity transactions and also with some government-linked companies undergoing restructuring plans.

“There will be an influx of Chinese investors coming through, as a result of being driven by “one belt one road” growth initiative, as well as the Chinese economy now is more consumption-driven than export-driven,” he added.

He said European countries might find a footing in Malaysia because of the similarities in market structure while North Asian countries such as China, Japan and South Korea will be inclined to coming in due to familiarity, as some of their home-based businesses are already well established here.

MMAA entered into a collaborative agreement to collaborate and promote best M&A practices and technology in Malaysia with Intralinks Inc., a global provider of software with services such as buy-side and sell-side M&A deal management and alternative investments fundraising and reporting, among others.

With the establishment of this agreement, MMAA will be able to leverage on Intralinks’ Dealnexus, which is the world’s largest deal platform for connecting buy-side and sell-side dealmakers.

Echoing the same sentiments as Yap, Intralinks senior vice-president (Asia Pacific), Allan Robertson said at the ceremony held last Friday, that the Asia Pacific market holds growth potential after recording a positive 44% year-on-year increase in M&A transactions last year, with Malaysia being one of the prime markets.

Citing a survey conducted by Intralinks on the sentiments of the deal making community, Robertson said the community in Asia is more concerned of developments in China than in the US or Europe.

Among the sectors expected to see more M&A activities are consumer-led businesses, infrastructure, construction, logistics and financial services.