Magma Group Bhd widened its net loss to RM54.32 million for the financial year ended Dec 31, 2025 (FY25), compared to a RM45.67 million loss a year earlier, weighed down by a hefty one-off write-off in its property development division.
The diversified group — with interests spanning hospitality, property development and lifestyle retail — said the deeper annual loss was largely due to a RM43.61 million write-off in project development costs recognised in the third quarter.
However, the final quarter offered signs of operational stabilisation.
For the fourth quarter (4Q25), Magma returned to the black with a net profit of RM0.35 million versus a net loss of RM36.63 million previously, on revenue of RM1.87 million. The improved quarterly showing was supported by steadier contributions from its hotel operations and hotel management segments, the absence of earlier exceptional charges and a RM9.1 million gain arising from the waiver of long-outstanding borrowings under its property arm.
Despite group-level volatility, hospitality remained Magma’s core earnings pillar.
Group Managing Director and Chief Executive Officer Datuk Seri Thomas Liang Chee Fong said the stronger 4Q performance reflects the cumulative impact of the group’s restructuring and operational measures.
With its Mont Kiara development progressing and its hospitality segment gaining traction, Magma said it is positioning FY26 towards a more diversified and resilient income base, while maintaining a cautious but optimistic outlook.
Looking ahead, Liang said it continues to prioritise occupancy optimisation, higher average room rates and tighter cost controls across its portfolio. The group expects further support from Malaysia’s tourism upcycle and the government’s Visit Malaysia 2026 campaign, which is anticipated to lift international arrivals and domestic travel across key urban destinations.
