GEORGE TOWN (Aug 7): Semiconductor test equipment manufacturer MMS Ventures Bhd (KL:MMSV) expects to return to the black in the 2025 financial year, riding on the recovery in the smart wearable device market.

Group managing director TK Sia told The Edge that the demand for smart wearables had slumped for three years before picking up in January 2025.

Sia said that since early 2025, the company has resumed receiving orders from multinational companies for their automated equipment used to assemble smart wearables.

“Although we registered losses in the first quarter, we expect sales to improve by a double-digit percentage in the second quarter.

“We should also see a single-digit percentage growth in the third quarter,” he said.

MMS Ventures’ automated pick-and-place lines cost between RM200,000 and RM1.5 million per unit.

In the first quarter ended March 31, 2025, MMS posted an after-tax loss of RM454,000 on the back of RM9 million in revenue.

Currently, MMS Ventures is utilising 80% of its 12,000 sq ft production floor to manufacture automated pick-and-place and assembly cum test equipment, with about RM40 million annual value.

The improved demand aligns with research house TechNavio’s 2025 forecast for smart wearables. According to TechNavio, the global wearable technology market is estimated to grow by US$99.4 billion (RM420.2 billion) from 2025 to 2029, growing at a compounded annual growth rate of 17.3%.

According to Sia, there will be a mixture of contributions from the smart devices and medical equipment segments.

“We are also turning to the energy sector to grow our business.”

“Meanwhile, the ongoing US tariff negotiations have cast uncertainties and need to realign the supply chains, costing and margins in doing business.

“Additionally, broader foreign exchange fluctuations are also making it more challenging to maintain stable gross margins,” he added.

Sia said the group’s bespoke automation manufacturing system for the medical industry and automotive components is expected to generate 40% of its 2025 turnover.

MMS Ventures has dealings with multinational corporations in the medical device manufacturing business, some of which are in Malaysia.

“The demand is steady and will gradually improve. We believe our strategy to be profitable this year should be achievable, barring unforeseen circumstances,” Sia said.