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KUALA LUMPUR (March 17): Adnex Group Bhd (KL:ADNEX), an interior fit-out firm, said trade uncertainties due to the ongoing geopolitical tensions in the Middle East have not had a significant impact on the company’s operations or the broader industry so far.
Speaking at a virtual press conference after its ACE Market debut, managing director Adrian Kan Wai Chun said the majority of Adnex’s materials and supplies are sourced domestically and from China.
He did note that prolonged geopolitical tensions could affect costs indirectly, particularly if higher oil prices push up logistics and material expenses.
The Strait of Hormuz — a route that carries about a fifth of global oil supply — has been locked due to shipping restrictions since the start of the US/Israel-Iran war. Its closure has sent Brent crude prices soaring above the US$100 (RM393.30) per-barrel mark in the past week.
Even with the volatile trade environment, Kan shared his confident outlook on Malaysia’s economic positioning, noting that its identity as a Muslim-majority country could drive investors from the Middle East towards Southeast Asia.
“Investors from the Middle East might move their investments to Malaysia, especially Southeast Asia, which is the best location,” he said, adding that Hong Kong and Singapore also share similar strengths in attracting investments.
The group made its debut on the ACE Market on Tuesday morning with a 25% high, opening at 25 sen against its initial public offering (IPO) price of 20 sen, signalling some renewed confidence within investors despite a cautious market backdrop that did affect previous newly-listed companies.
Compliance standards have always been a key priority
Amid allegations by the US involving forced labour risks across several countries, including Malaysia, Kan reiterated that Adnex always adheres to compliance practices.
The US Trade Representative (USTR) said the investigations under Section 301(b) of the Trade Act of 1974 will determine whether the countries' handling of goods produced with alleged forced labour hurt US commerce.
Kan said Adnex strictly follows regulatory and licensing requirements in Malaysia, including those set by the Ministry of Investment, Trade and Industry (Miti) and Construction Industry Development Board (CIDB).
“Even though our customers are from the US or Europe, we will fully comply and strictly follow all compliance standards,” said Kan.
He added that Adnex has over an estimated 1,000 licensed contractors and suppliers that adhere to Miti and CIDB across its projects.
The interior fit-out services provider mainly serves multinational corporations, which account for a large portion of its customer base.
Looking ahead, Adnex plans to expand its presence within Malaysia, particularly in Penang, Johor Bahru and East Malaysia, while exploring opportunities in Indonesia and the Philippines.
With an unbilled order book of about RM66 million as at January 2026 and a tender book of approximately RM130 million, the group expects continued growth as demand for corporate office fit-out projects remains robust.
For the financial year ended Dec 31, 2024, the group’s net profit was RM6.39 million and revenue stood at RM50.23 million, with interior-fit out projects being its main revenue source.
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