KUALA LUMPUR: MSB Global Group Bhd
said US tariffs will have a minimal impact on its business operations as the company’s supply chain and market focus remain primarily within Asia.
Making its debut on Bursa Malaysia’s ACE Market today, the automotive parts and components distributor said it imports most of its products from China and serves the domestic market, with plans to target expansion within Southeast Asia.
"US tariff will not directly affect the company. Our products are sourced from China and our target market remains local.
"Our expansion focus will remain on Southeast Asia in the future,” said MSB Global executive director Ow Chen Lun at a virtual press conference following the group’s listing ceremony here today.
It raised RM26.60 million in gross proceeds through the issuance of 133.00 million new shares.
It will allocate 22.58 per cent of the proceeds to purchase new machinery and equipment, 20.67 per cent to repay bank borrowings and 18.70 cent to build a new factory-cum-warehouse in Ulu Tiram, Johor Bahru.
Ow said 17.99 per cent will be for working capital, 16.92 per cent for listing-related expenses, and 3.14 per cent to fund the rollout of an in-house branded EV charger.
He added that the recent depreciation of the US dollar helped lower the company’s procurement costs, another buffer against any external headwinds.
"We maintain a close relationship with our key suppliers in China. This has given us flexibility and helped manage cost fluctuations.
"MSB Global has worked (with them) for 23 years. If there are (any) market changes or rising costs, we believe they will support us,” he said.
Looking beyond its listing, Ow said MSB Global is positioning itself as a corporate disruptor in Malaysia’s fragmented aftermarket automotive service industry - an ambition he likens to how Mr DIY and 99 Speedmart revolutionised their respective sectors.
"Today marks the start of a transformation. We see ourselves becoming the first in Malaysia to corporatise the car service and maintenance market, which is currently very fragmented,” he added.
Like the transition of traditional hardware and convenience stores into nationwide chains, he believes MSB Global can elevate car servicing into a structured, professionally managed network.
At 10.40 am, the group’s share price fell three sen, or 15 per cent, to 17 sen from its initial public offering price of 20 sen, with 38.82 million shares changing hands. - Bernama
