By Shikin Louis
KUCHING, April 12: Cahya Mata Sarawak Berhad (Cahya Mata) does not expect to be directly affected by the latest round of United States (US) tariff hikes, as its operations and trading exposure remain largely outside the US market.
Speaking to reporters during the company’s Hari Raya Aidilfitri open house held at Raia Hotel & Convention Centre today, Group General Counsel Izzam Ibrahim explained that the group’s core businesses are not reliant on US markets, either for procurement or sales.
“We are still looking at it, but so far our businesses don’t really deal with the US tariff. We’re not dealing much in US dollars except when purchasing raw materials—and even then, I don’t think we buy anything directly from the US.
“If we buy from countries affected by the US tariff, it still doesn’t impact us because the tariffs apply when entering the US market. And currently, we’re not selling anything to the US,” he said.
Izzam added that Cahya Mata’s international exposure primarily lies in its oil tools division, with operations in Indonesia, India, the Middle East, and parts of Africa.
“In the Middle East, we’re present in Abu Dhabi, Dubai, Saudi Arabia, and Oman.
“In Africa, we operate in Nigeria,” he shared, adding that the only market where the company may face perception-related challenges is Russia.
Despite the global economic uncertainties and geopolitical tensions, including the Russia-Ukraine conflict and increasing protectionist measures by the US, Izzam stressed that Cahya Mata’s oil and gas support services continue to perform well.
“In fact, in our fourth quarter 2024 results announced on February 18, you can already see a marked improvement in the oil tools division. We’ve managed our overseas operations better than the previous owner, Scomi Energy Services Berhad, and the contribution is now stronger,” Izzam added.
He also pointed to ongoing opportunities in the region, including tenders from major players like Pertamina in Indonesia, India’s oil sector, Abu Dhabi National Oil Company (ADNOC), and Saudi Aramco.
While there’s currently no significant concern over the tariffs, Cahya Mata is still taking a cautious approach.
“We are studying the situation closely. As a responsible management team, we have dedicated teams looking at all these scenarios. If we need to pivot or adjust, we will do so—always guided by the board,” he emphasised.
Also present during the open house were Cahya Mata’s chairman General Dato Seri Diraja Tan Sri Mohd Zahidi Zainuddin and group managing director Dato Sri Sulaiman Abdul Rahman Abdul Taib. – DayakDaily
