(Alliance News) - Cash shell Hidong Estate PLC on Friday reported a drop in investment income, the firm's sole source of income for 13 years.
Hidong has been a cash shell since selling natural rubber and oil palm fresh fruit operations in 2006. It has been looking for "suitable investments" since then.
In the year to March, income from investments was MYR197,135, or GBP38,484. A year prior, it was MYR230,643, 15% higher.
"The Malaysian economy registered a growth of 4.7% during the final quarter of 2018, bringing the total GDP for the year to 4.7%. The Malaysian economy is expected to experience moderate growth in 2019 due to challenging external factors," said Chair Chew Sing Guan.
"The uncertainties in US monetary policy, the slowdown in China's economic growth and the ongoing unresolved trade tension between the US and China also affected global economy and thus Malaysia economy," he continued.
"The trade war will be seriously contagious, spreading beyond the two involved parties. The global supply chain and financial markets are major transmission mechanisms that can propagate the shock across the world economy. While everyone will suffer, Asia will take the worst hit, given its high degree of supply chain integration with China's manufacturing and assembly operations."
Therefore, the company will always remain vigilant of the developments that could affect our local and global economies," he concluded.
Hidong shares were untraded Friday, last quoted at 50 pence each.
Hidong Est. (HID)