Utilities on positive trajectory as power demand stays strong

HLIB Research maintained its “overweight” call on the sector, citing earnings and dividend sustainability.

PETALING JAYA: The utilities sector in Malaysia is expected to continue on a positive trajectory in the second half of this year (2H24).

This is driven by the anticipated growth in electricity demand in country, while the incentive-based regulation (IBR) and imbalance cost pass-through (ICPT) frameworks are expected to remain stable, according to Hong Leong Investment Bank (HLIB) Research.