OSK Expects Steady Progress Across Its Core Business Divisions

OSK Holdings Bhd will enter 2026 with a measured yet constructive outlook, supported by steady progress across its core business divisions, according to group managing director Ong Ju Yan.

In the company's annual report, Ong said the property segment is expected to benefit from gradually improving market conditions following what he described as a "bottoming out year in 2025". The group's launch pipeline for 2026 remains well supported by ongoing development clusters in the Klang Valley, Negri Sembilan, Penang, and Kedah.

Property Segment: RM1.7 Billion Launch Pipeline

OSK expects to launch RM1.7 billion in gross development value (GDV) in 2026, covering projects in the Klang Valley, Negri Sembilan, Penang, and Kedah, as well as re-entering Pahang with the last phase of its Kuantan development. The group's diversified geographical exposure is expected to provide a buffer against any regional slowdowns, while its focus on landed and high-rise residential developments in established and emerging growth corridors should continue to attract demand.

In Australia, Melbourne Square is progressing towards the launch of the fourth tower in the first quarter of 2026. The Melbourne Square project, located in the heart of Southbank, Melbourne's premier residential and commercial precinct, has been a key driver of OSK's international property earnings. The launch of the fourth tower is expected to further strengthen the group's presence in the Australian property market.

Financial Services: Private Credit and Consumer Financing

Within the financial services segment, the private credit business is expected to continue its growth trajectory across Malaysia and Australia, supported by disciplined underwriting and a growing customer base. The recent acquisition of Wilayah Credit broadens the group's product offerings, while the consumer financing arm is expected to deliver further growth across underserved borrower groups.

In Australia, the business will work towards launching its first third-party fund management in 2026, providing a pathway for a gradual shift towards an asset management model. This move is expected to diversify the group's revenue streams and reduce its reliance on balance sheet-funded lending.

The group's Singapore platform is in its early stages and will serve as a springboard into the countries in the Asean region . This expansion reflects OSK's ambition to build a regional financial services presence, leveraging its expertise in private credit and consumer financing.

Industry Segment: Stabilisation and Growth

Ong said the industry segment is expected to benefit from the stabilisation of Johor Baru factories and Melaka plant. The group's manufacturing operations, which produce building materials and components for the construction industry, are expected to see improved utilisation rates and profitability as the construction sector recovers.

OSK Holdings Bhd enters 2026 with a constructive outlook across its core business divisions. The property segment is supported by a strong launch pipeline and improving market conditions, while the financial services segment is expected to continue its growth trajectory in private credit and consumer financing. The industry segment is also expected to benefit from stabilisation in its manufacturing operations.

The group's diversified business model, with exposure to property development, financial services, and manufacturing, provides a buffer against any single sector's downturn. As OSK continues to execute its strategic initiatives, including the expansion of its financial services platform in Australia and Singapore, it appears well-positioned to deliver sustainable growth in the coming years.

Investors will be watching closely to see how the group performs against its targets, particularly given the uncertain economic environment and the ongoing geopolitical tensions that could impact global growth. However, OSK's strong track record and its measured approach to expansion suggest that it is well-prepared to navigate the challenges ahead. The group's ability to maintain its disciplined underwriting standards and execute its development pipeline will be key to its success in 2026 and beyond.