EquitiesTracker Holdings Bhd (ETH) Executive Director and Group CEO Alvin Vong
By TEE LIN SAY
linsaytee@suketv.com
11 May 2026, 9:00am
KUALA LUMPUR: There is a boring but safe way to generate income, which most companies or individuals aren’t even thinking about.
Drum roll please... think treasury management.
Before the eyeballs roll and the yawns begin, EquitiesTracker Holdings Bhd (ETH) Executive Director and Group CEO Alvin Vong says this is an investment avenue that isn’t considered by most companies simply because they are not aware it exists.
For those who are aware, they may think that this is inaccessible to them, possibly because of a high capital requirement. Again, this isn’t true.
In a nutshell, investing in treasury instruments for companies, particularly over the short term, enables a company to make use of its idle cash or liquidity to generate consistent returns.
The keywords here are steady and safe.
This makes it very suitable for small and medium-sized enterprises (SMEs) that have some idle cash and want to generate consistent returns instead of leaving the money sitting idle in current accounts that do not generate returns.
For SMEs that feel they may need quick access to that cash again, this is also possible, as short-term securities can be invested in for as little as one night.
So how do short-term treasury securities work?
Let’s say a company has RM50,000 of idle cash in its bank account. By next week, it needs to make certain payments.
This means that for the next five days, that RM50,000 will be sitting idle.
So why not place it in short-term securities during that five-day duration and earn some interest instead?
After those five days, the money will return to the company along with the interest earned.
This is basically how idle cash — which would have earned nothing if left in its existing account — can benefit when invested in short-term securities.
When Net Profit Exceeds Revenue Because of Good Balance Sheet Management
Investing in treasury securities is basically a form of good balance sheet management.
This is because treasury securities held by a company are reflected on the balance sheet, typically classified under current assets as “cash equivalents” or “marketable securities” if they are highly liquid and short term.
They represent safe, interest-bearing investments.
Good balance sheet management significantly optimises a company’s financial health by improving access to capital and ensuring sufficient cash flow to meet short-term obligations.
Vong cites the unique example of Haw Par Healthcare Limited, which owns and sells Tiger Balm.
He points out that a sizable portion of the company’s net profit does not come from product sales.
In fact, for the past few years, the company’s investment income has exceeded the profit generated from its core business.
Based on its 2025 financial results, more than half of its income comes from dividends derived from its sizable ownership of UOB shares.
For the financial year ended Dec 31, 2025 (FY25), the company reported sales of SG$229.97mil compared to SG$244.82mil a year earlier.
Net income stood at SG$265.46mil compared to SG$228.27mil a year earlier. Notice that its net profit is higher than its revenue.
Hence, the company is not just generating income from its business operations, but also from dividends and other interest income.
This is a clear example of a company generating strong returns for its shareholders because of good balance sheet management, even when revenue from its core business may not be exceptionally high.
“You don’t need a Chief Financial Officer or a full-fledged treasury team to manage your balance sheet. We can do it for you via Treasury Services by ET, and you can start with a small amount,” says Vong.
“We can make your company’s funds work for you using a variety of strategies, starting from just RM50,000.
“We can help companies optimise idle corporate cash through structured, risk-appropriate investment strategies instead of leaving it in non-yielding accounts,” concludes Vong.
EquitiesTracker Holdings Bhd (ETH) is listed on Bursa Malaysia. ETH’s unit, ET SmartWealth Sdn Bhd, is a licensed fund manager.
It has been educating investors on growing their wealth since 1976.
Web Edited by YAN PHENG LIANG
yanphengliang@suketv.com