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https://theedgemalaysia.com/node/627202

Najib's lawyers argue QC needed for complex, novel issues in final SRC appeal; court to decide on July 21

English

KUALA LUMPUR (July 6): The High Court will give its decision on July 21 on whether it will allow UK lawyer Jonathan Laidlaw’s bid to be admitted to the courts so he can represent former premier Datuk Seri Najib Razak in his SRC International Sdn Bhd appeal at the nation’s apex court. Judge Datuk Ahmad Kamal Md Shahid set the date after hearing submissions from both Najib’s lawyer Harvinderjit Singh and lead prosecutor Datuk V Sithambaram. Also present during the proceedings were Datuk Dr Gurdial Singh Nijar, who represented the Kuala Lumpur Bar, and Datuk Bastian Vendargon, who represented the Malaysian Bar. Both organisations opposed Najib's application. Earlier, Harvinderjit submitted to the judge that the defence sought out Laidlaw because of his special qualifications in “novel and complex issues", which might arise during the appeal at the Federal Court. He also claimed that Laidlaw was an “expert in regulatory affairs and prosecution conduct”, and that Laidlaw would be dealing with the area of the prosecution's conduct, in particular whether constitutional rights were infringed on, during the SRC trial at the High Court. The lawyer also said Laidlaw would only deal with that specific area of the appeal. He also addressed the prosecution's contention that lead counsel Tan Sri Muhammad Shafee Abdullah and himself are more than capable and experienced in handling the appeal, and that Laidlaw would not know the conduct of Malaysian courts. “He doesn’t need to be an expert in every aspect of the case. He is there for specific and special areas of the case. The local counsel (Najib’s lawyers) will handle other arguments taken. The Queen's Counsel will be complementary to the local counsel, and not apart from the local counsel,” Harvinderjit said. “We just have to show your lordship that he has got expertise and experience and that particular expertise and experience is not available among lawyers here. We have to show that his niche expertise is not available here,” he added. Sithambaram, however, argued that if Laidlaw is allowed to represent Najib in the final appeal, this will open the “floodgates” to similar applications in the future. “Then every time there’s a novel issue and they want to bring in a Queen's Counsel, then we (the local courts) will have to allow it,” Sithambaram said. Sithambaram also said Harvinderjit's arguments indicated the defence was “running to England” for help because the trial was complex. “The moment it’s serious and complex, we should all drop it and run to England to take statements. That’s how they framed their argument,” Sithambaram told the judge. Sithambaram then cited a case in 2006, where UK lawyer Cherie Booth — the wife of former UK premier Tony Blair — had applied to appear for a party in a Malaysian court case, which the Federal Court ruled against. Citing the Federal Court's decision in that case, Sithambaram questioned Laidlaw’s involvement in the trial as he was not involved in the High Court and Court of Appeal stage of the SRC trial. “The appellant was not present at the High Court and Court of Appeal stage, so to what extent would the appellant be able to assist the Federal Court?" Sithambaram asked. He also said a foreign counsel would lack local knowledge, and that since Laidlaw did not handle the trial and appeal, he would be “disadvantaged” in handling the Federal Court appeal. Sithambaram further argued that the issues posed by Najib are not novel, but even if it was so, there was no reason a QC is needed. "He’s (Laidlaw) a brilliant man and while that may be so, that does not mean we need him here,” he said. Gurdial, representing the KL Bar, agreed with Sithambaram and said that allowing Najib's application now would “demean” the more than 20,000 advocates and solicitors in the country. Gurdial argued that Najib and his team could refer to and analyse international cases and precedents to argue their case. “Are we so bereft of a modicum of intelligence to do that? To analyse the laws?" he asked. Bastian concurred, adding that there was no valid reason to suggest that the legal assistance provided to Najib was insufficient and that his appeal would be prejudiced if Laidlaw did not represent him. After hearing submissions from both sides for almost four hours, the judge set July 21 for his decision, which will be delivered via Zoom. In July 2020, Najib was found guilty of abusing his power, committing criminal breach of trust and money laundering involving RM42 million of SRC funds and sentenced to 12 years in jail, and fined RM210 million by High Court Judge Datuk Mohd Nazlan Mohd Ghazali. The Court of Appeal on Dec 8 last year unanimously upheld the High Court's verdict, which led to Najib making his final appeal to the Federal Court. The Court of Appeal has allowed a stay of sentencing pending this appeal, which is set to be heard in August.

https://theedgemalaysia.com/node/650563

Former Klang MP loses final bid to challenge EC's decision to hold GE15

English

PUTRAJAYA (Jan 5): The Federal Court has dismissed two appeals challenging the Election Commission’s (EC) decision to hold the 15th general election (GE15) last November.  In a unanimous decision, the three-judge bench of the apex court led by Datuk Nallini Pathmanathan, and flanked by Datuk Vernon Ong Lam Kiat and Datuk Mary Lim Thiam Suan, said the dissolution of Parliament last year led to the GE15 and a new government, which in turn led to the convening of the 15th Parliament. “It is not in dispute that the GE15 was correct, valid and legal,” Nallini said in her judgement, before dismissing the appeal leave applications by both parties.  She also further drove home the point by saying that the current state of the new government with the convening of Parliament cannot exist without former prime minister Datuk Seri Ismail Sabri Yaakob's request to seek the dissolution of Parliament. “The current and accepted state cannot exist without that initial request for the dissolution [of Parliament]. It is not possible to divorce the result from the events that commenced with and ensued from the request of the dissolution, because the two are indivisible. You cannot sever one from the other,” she said.  The two appeals in question were made by Pandan voter Dr Syed Iskandar Syed Jaafar and former Klang Member of Parliament Charles Santiago.  Charles was seeking to overturn a High Court decision and Court of Appeal decision to quash his suit, following questions surrounding the dissolution of Parliament, while Syed Iskandar was appealing against a High Court and Court of Appeal decision, which quashed his originating summons seeking a judicial review against the dissolution of Parliament. Syed Iskandar was questioning the validity of Ismail Sabri’s request to seek the dissolution of Parliament. He named the Prime Minister's Department, the Government and the EC as respondents. Former Federal Court judge Datuk Sri Gopal Sri Ram and R Kengadharan represented Syed Iskandar, while Datuk Malik Imtiaz Sarwar and Surendra Ananth represented Charles in the appeals. Senior federal counsel Shamsul Bolhassan appeared for the Attorney General's Chambers for the Prime Minister’s Department, the EC and the Government, which were the respondents in Syed Iskandar’s suit.  In Charles’ appeal, former Court of Appeal president Tan Sri Zulkefli Ahmad Makinudin was acting for the Government and Ismail Sabri. Nallini further added that the questions of law brought to the apex court were merely academic. “For these reasons, we are constrained to exercise our discretion to uphold the respondent’s’ preliminary objection and dismiss the application in both cases,” she said.  Before Nallini read out her decision, federal counsel for the Attorney General's Chambers Low Wen Zhen submitted that the notice of motion was misconceived and ought to be dismissed because the questions were academic and held no practical utility, and that the proposed questions had no prospect of success. “The fact that the GE15 has been held, a new government has been formed, and that a new PM has been appointed, who has the confidence of the majority in the House of Representatives, are 'so sufficiently notorious that it becomes proper to assume its existence without proof' as judicial notice taken by the court,” she said. She said that leave to appeal should not be given for “abstract, academic or hypothetical questions of law, particularly when it will not affect the result of the appeal one way or another”. "The general rule is the court does not determine academic or hypothetical questions, where the answer would not affect the rights of obligations of the parties. A question is academic if it is a matter of complete indifference to the parties, who will be in exactly the same position regardless of which way the question is answered,” she added.  Read also: Pandan voter, incumbent Klang MP appeal to Federal Court in last-ditch effort to stop GE15

https://theedgemalaysia.com/node/656907

SoftBank, Ant seek to sell Paytm stake via open market — ET

English

BENGALURU (Feb 27): China's Ant Group and Japan's SoftBank Group Corp are seeking to sell their stakes in Indian digital payments firm Paytm in the open market, the Economic Times (ET) reported on Monday. The companies had earlier approached Bharti Airtel founder-chairman Sunil Mittal to sell their stakes in Paytm's parent One 97 Communications, but those talks did not make much headway, ET reported, citing people familiar with the matter. SoftBank, Ant Group, Paytm and Bharti Airtel did not immediately respond to Reuters' request for comments. A secondary sale to financial investors in the open market through a block deal is, however, still a possibility, ET reported. Ant has a nearly 25% stake in Paytm, while SoftBank owns about 13%, according to exchange data. Paytm has been under pressure to turn profitable ever since its dismal listing in late 2021. Its shares have tumbled about 70% below their IPO price of 2,150 rupees as lofty valuations of loss-making tech firms come under scrutiny amid volatility in the financial markets. China's Alibaba Group earlier this month exited Paytm by selling its remaining stake in the company for about 13.78 billion rupees (US$166.2 million). SoftBank had also previously sold a 4.5% stake in Paytm through block deals for about US$200 million. Paytm's shares rose 1.5% to 632.90 rupees as of 1.47pm IST.

https://theedgemalaysia.com/node/662498

Global IT spending to grow 5.5% to US$4.6 tril in 2023, Gartner says

English

KUALA LUMPUR (April 7): Global IT spending is projected to total US$4.6 trillion in 2023, an increase of 5.5% from 2022, according to the latest forecast by Gartner Inc. In a statement on Thursday (April 6), the firm said despite continued global economic turbulence, all regions worldwide are projected to have positive IT spending growth in 2023. Gartner distinguished vice-president analyst John-David Lovelock said macroeconomic headwinds are not slowing digital transformation. “IT spending will remain strong, even as many countries are projected to have near-flat gross domestic product (GDP) growth and high inflation in 2023. “Prioritisation will be critical as CIOs (chief information officers) look to optimise spend while using digital technology to transform the company’s value proposition, revenue and client interactions,” he said. Gartner said the software segment will see double-digit growth this year as enterprises prioritise spending to capture competitive advantages through increased productivity, automation and other software-driven transformation initiatives. Conversely, it said the devices segment will decline nearly 5% in 2023, as consumers defer device purchases due to declining purchasing power and a lack of incentive to buy. It said as enterprises navigate continued economic turbulence, the split of technologies being maintained versus those driving the business is apparent in their position relative to overall average IT spending growth. Lovelock said CIOs face a balancing act that is evident in the dichotomies in IT spending. “For example, there is sufficient spending within data centre markets to maintain existing on-premises data centres, but new spending has shifted to cloud options, as reflected in the growth in IT services,” he said. Gartner said the IT services segment will continue its growth trajectory through 2024, largely driven by the infrastructure-as-a-service market, which is projected to reach over 30% growth this year. For the first time, price is a key driver of increased spend for cloud services segments, rather than just increased usage, it said.

https://theedgemalaysia.com/node/604465

星展：尽管通胀升高 国行将维持利率于1.75%

Mandarin

（吉隆坡20日讯）星展集团研究（DBS Group Research）经济学家预计，国家银行今日将维持隔夜政策利率（OPR）于1.75%，自2020年7月以来保持不变。 该研究机构表示，尽管明日公布的消费者物价指数（CPI）可能因大水灾和高油价，维持在3%以上的高水平，但国行仍对Omicron变种病毒构成的下行风险保持警惕。 “国行可能会在2022年上半年保持耐心，并在下半年实现货币政策正常化。” 该机构说，美元兑令吉汇率收于4.1938，略高于2021年中以来介于4.14和4.24区间的中间点。短期内将在4.2140高位遇阻。   （编译：陈慧珊）   English version：DBS: BNM to maintain OPR at 1.75% despite elevated inflation

https://theedgemalaysia.com/node/664403

Frankly Speaking: Loosen MM2H criteria or lose out

English

This article first appeared in The Edge Malaysia Weekly on April 24, 2023 - April 30, 2023 The terms and conditions of the revamped Malaysia My Second Home (MM2H) programme that was introduced 19 months ago will be reviewed following reports of a 90% drop in applicants because of the stringent requirements. The scheme, which was temporarily paused during the Covid-19 pandemic, was reintroduced in October 2021 with stricter rules by the previous government to attract higher-quality participants who can contribute positively to our economic growth. Changes were also made citing security reasons, as some participants were believed to be using the country as a transit point to carry out unwanted activities. Last Wednesday, the Ministry of Tourism, Arts and Culture said that a decision to review was reached following a meeting between its minister, Datuk Seri Tiong King Sing, and home ministry secretary-general Datuk Ruji Ubi. While it is not known what changes will be made, the parties have agreed that an MM2H one-stop centre, which was incidentally available pre-Covid-19, will be set up to assist applicants with the processing of their application and collating documents for submission to the home ministry or the immigration department for the issuance of an MM2H pass. It is about time that the MM2H programme is reviewed and liberalised. Malaysia is an open economy and a trading nation, and there should be no reason for these tough requirements. Although perhaps more stringent vetting of applications should be conducted for security purposes, we should be reasonably open to welcoming visitors who wish to make Malaysia their second home. Sarawak, for example, has its own version of MM2H (S-MM2H) that is more foreigner-friendly. That said, there has been recent confusion over a change in the rules which state that S-MM2H applicants cannot live in Peninsular Malaysia. With Tiong being the member of parliament for Bintulu, Sarawak, it will be interesting to see if he relaxes the MM2H rules to match those of Sarawak or improves on them further so that we attract more people to our shores. And, please, no more sudden reversals of criteria. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/654997

My Say: Lessons from visions unrealised

English

This article first appeared in Forum, The Edge Malaysia Weekly on February 13, 2023 - February 19, 2023 Vision 2020, launched by then prime minister Mahathir Mohamad in 1991 at the start of the Sixth Malaysia Plan, was a comprehensive and ambitious development policy document. Positioned as a vision — an outcome to be achieved in a 30-year time frame — it was simple enough to be widely understood and it had the deliberate play with words, where 2020 was both a date and connotes clarity and perfection. Ultimately, Vision 2020 aspired to obtain “a mature, liberal and tolerant society which is at peace with itself, a united Malaysian nation and a Bangsa Malaysia”. This sentence alone contains words and concepts that many would find objectionable today — a measure of how far off-target we are. On the economic front, it sought for Malaysia to become a dynamic and competitive economy that is also equitable, again largely off-target. Far from the Bangsa Malaysia envisioned in Vision 2020, we have instead become a fractured society. Perhaps we were always divided, but we are certainly less united now than we were in 1990. Being “liberal and tolerant” today is actually abhorrent among some circles, not a small part of Malaysia. It was not just the missed economic numbers but, more importantly, the capacity of the economy and the strength of the country’s institutions that were off-target. We continued with the dual-track economy — an indigenous resource-based sector and a foreign direct investment (FDI)-driven manufacturing that was dominated by electrical and electronics that started in the 1970s. Both these sectors formed the backbone of the economy, as both are export-oriented, but there are few linkages, if any, between the two. They are two separate engines. There were downstream resource-based industries in both oleo- and petro-chemicals that contributed to the economy but, over time, all these export-oriented industries became a smaller part of the economy as the domestic-based services sector grew larger. This inability to develop more skill-based, hence more human capital-based, industries explains both the domestication of the economy as well as the skewed yet low median income, as the enlarged domestic services sector is basically made up of low-income businesses. We never substantively made the move towards a knowledge-based economy. We distilled a broad development objective into a single number, the GDP growth number, which is the consequence of many other prerequisites that are also part of the development objectives. Objectives such as sustained growth that is also equitably distributed can only be the result of so many other things being right. The issue of inequality cannot be handled ex-post, as a consequence of growth; it should be a part of the growth story itself. The biggest lesson learnt here is that the pursuit of growth simply measured by output as captured by the GDP is a reason sustainable growth was not obtained and that the accumulated growth, while lifting all boats, did so in a very unequal, inequitable and unsustainable manner. Data shows that, over the last two decades, the share of investments to GDP has been steadily declining, which speaks to the lack of new or additional productive capacity. If not for the heavy capital investments of the oil and gas sector, that number would have been even smaller. Any economy that does not invest in new capacities, new technologies and new capabilities will not generate sustained growth. This needs to be properly understood — why did it happen? Was it driven by supply-side factors or was it a demand failure? Understanding well the answers to these questions will go a long way towards better policy formulation for the future. Was it the lack of human capital or weaknesses in the innovation systems that contributed to our inability to produce firms with new products while also being competitive selling them? Why cannot we see more new small firms that made it big with innovative products? What were the distortions that prevented risk-taking in developing firms with such products? Is our education system churning out the right kinds of talent? The questions have to go beyond the usual tax or fiscal incentives that have largely failed to effect the transformation. The Najib administration, recognising that the economic engine then did not have what it took to get to Vision 2020’s destination, came up with the New Economic Model in 2010 at the beginning of the 10th Malaysia Plan. Mahathir had envisioned the Multimedia Super Corridor to be the economic engine for Vision 2020; though it was well ahead of other countries, that too failed to materialise. Najib’s New Economic Model (NEM) correctly identified the three pillars of sustainability, inclusiveness and high income, but it made the “high income” income level the policy target. It embraced the idea of reforms, making nine reform initiatives the centrepiece of the blueprint. The NEM recognised the need for more openness and the removal of distortions in the economy to have the right incentive structures for investments, and took a serious hard look at the problem of inequality, but the ensuing Economic Transformation Plan, driven by an economically dubious methodology of implementing projects that collectively generate the “GNI targets”, derailed the NEM. Notwithstanding the methodology, the emphasis on projects involving public funds had the usual issues of lobbying and private captures of rents, the same affliction that derailed earlier policies. It illustrated the worst of central planning and unfettered private interests when they coincide. Visions and policies fail for many reasons. One can assume that not all vision statements and policy objectives are bad. So, visions do not fail because of the outcomes they wanted to achieve. One can quibble about completeness or even consistency of the overall vision or policy, but those represent contestations of good objectives, not bad objectives per se. Visions that do not have a clear overarching outcome that engender a common understanding may fail because such lack of clarity gives rise to too broad an interpretation that it fails to provide a true north to focus on. When trade-offs are required, and there will be all kinds of trade-offs required, these decisions need clear metrics that prioritise the true north. Otherwise, there will be misallocation of resources. Another lesson from the past is that while we spent massive fiscal resources over the last two decades, accumulating huge debts, we did not obtain the right outcome — inducing private investments, for example. The main reason is inefficiencies from misallocation of resources, which explains why we also have not been very productive. I would recommend a policy objective that is clear and easily understood and addresses multiple other objectives at the same time. For example, a policy objective of increasing median household income; say, a 10-year median income doubling plan, which implies a median household annual growth of just over 7%. The focus on doubling median income endogenises distribution within the growth story. It is also easily measured; for example, by tracking the distance between mean and median income. Such an objective captures both the issues of growth and how that growth is distributed. A subsidiary objective that is clear is increasing the size of the tradable sectors of the economy; for example, targeting a trade-to-GDP ratio of 150% in the same 10-year period. The outward-looking perspective and being competitive in external markets become the norm and also align all policies from foreign affairs to trade to human resource development towards this simply defined objective, that being a vibrant economy is about being competitive. As for the required fiscal consolidation, hard constraints need to be set and complied with. These constraints should therefore be legislated, then the budgeting process is really about constrained optimisation, which, if properly done and is therefore growth generating, will be self-correcting. Any changes to the constraints will require rigorous debates in parliament. Finally, the planning and budget cycles. Are the five-year plans still relevant as a policy tool? The time horizon coincides with the political term of five years, but are such plans necessary? Policies will have to be embedded into the legislative agenda of an elected government — a government legislates its policies throughout its tenure, and uses the annual budget to achieve the legislative objectives. It no longer makes sense to have five-year plans within a 10-year outline perspective plan. Such plans are the instruments of a state-controlled economy. Malaysia should not be a state-controlled economy, and even if it wants to be one, the prevailing political environment does not allow it to. A government has five years to introduce its policies via legislation and use executive powers to implement them. The more permanent constant in this new environment are laws passed by parliament and not the executive, as was the case in the past. That is not a bad thing. Dr Nungsari A Radhi is an economist Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/646734

马股先起后跌

Mandarin

（吉隆坡5日讯）富时隆综指今早先起后跌，因综指成分股缺乏强劲买盘势头。 截至早上9时25分，富时隆综指降低8.52点，至1473.28点，上周五收报1481.80点。  富时隆综指今早以1482.08点报开，微扬0.28点。  上升股297只，下跌股249只，297只无起落，1398只无交易及9只暂停交易。 马股总成交量为8亿3001万股，总值2亿3947万令吉。 乐天交易私人有限公司预计，银行股将会掀起购兴，因上周股价有所下调。 “随着最近公布的内阁名单受到广泛欢迎，我们认为富时隆综指今天（星期一）可能会出现逆转，估计将在1480点至1500点区间内波动。” 重量级股方面，马银行（Malayan Banking Bhd）跌4仙，至8.54令吉，大众银行（Public Bank Bhd）下滑3仙，报4.38令吉，联昌国际集团（CIMB Group Holdings Bhd）挫3仙，至5.61令吉，国油化学（Petronas Chemicals Group Bhd）下滑2仙，报8.50令吉，国家能源（Tenaga Nasional Bhd）挫13仙，至8.25令吉，以及IHH医疗集团（IHH Healthcare Bhd）企于5.83令吉。  至于热门股，微领科技（MQ Technology Bhd）升1.5仙，至7仙，思泰科技（SMTrack Bhd）扬1仙，报7.5仙，Advance Synergy Bhd增0.5仙，至18.5仙，健坤国际（Jiankun International Bhd）涨2.5仙，至28.5仙，Icon Offshore Bhd及Borneo Oil Bhd分别持平于15.5仙和2仙。    （编译：魏素雯）   English version：KLCI opens slightly higher but turns lower thereafter

https://theedgemalaysia.com/node/628883

大马统计局：贸易及进出口额创季度新高

English

（吉隆坡20日讯）大马统计局指出，我国6月进口额弹升49.3%，至1242亿令吉，创下历史新高，一年前为832亿令吉，部分原因是加工食品和饮料进口增加，主要用于家庭消费。 大马统计局表示，今年第二季的贸易总额、进出口总额数据创历史新高。 今年6月的出口额按年剧增38.8%，至1462亿令吉。 大马统计局说：“今年6月的贸易总额按年劲扬43.4%，至2704亿令吉，达到新高纪录。” 同时，今年次季的贸易总额及进出口额，也是迄今最高季度纪录。 大马统计局表示，今年次季贸易总额按年弹升32.7%，至7304亿令吉。出口额按年大涨30%，至3942亿令吉，进口额也按年劲扬36.1%，至3361亿令吉。 大马统计局说：“贸易总额及进出口额创下迄今最高季度纪录。当季贸易盈余为581亿令吉，下降10.6%。” 今年首半年，贸易总额、出口额、进口额及贸易盈余继续录得双位数增长。贸易总额上升28.2%，得益于出口（+26.1%）及进口（+30.9%）增长。 “因此，贸易盈余达1231亿令吉。” 大马统计局局长Datuk Seri Dr Mohd Uzir Mahidin说：“由于进口增长快于出口，贸易盈余减少0.8%至219亿令吉，这是自2020年5月以来连续第26个月出现贸易盈余。” 根据大马统计局的文告，6月出口额增长，主要是对新加坡、印尼、日本和美国等国家的出口增加。 我国的进口增长，主要是来自新加坡、中国、台湾和美国的贡献。   （编译：魏素雯）   English version：Malaysia posts highest quarterly trade, export, import values — DOSM

https://theedgemalaysia.com/node/650408

Oil falls again after last session's tumble as economic worries grow

English

(Jan 4): Oil edged lower on Wednesday (Jan 4) after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy. Brent futures for March delivery fell 13 cents to US$81.97 a barrel, a 0.1% loss, by 0511 GMT. US crude dropped 28 cents, or 0.3%, to US$76.65 per barrel. Both benchmarks plunged more than 4% on Tuesday, with Brent suffering its biggest one-day loss in more than three months. "Warning signs of global recession, China's lacklustre recovery with surging Covid-19 cases, renewed strength in the US dollar and dampened risk sentiment are all catalysts keeping oil prices in check overnight," said Yeap Jun Rong, Market Analyst at IG, in a note. The Chinese government increased export quotas for refined oil products in the first batch for 2023, signalling expectations of poor domestic demand. Top oil exporter Saudi Arabia may further cut the prices for its flagship Arab Light crude grade to Asia in February, after they were set at a 10-month low this month, as concerns of oversupply continued to cloud the market. "The market remains worried about the impact of macro factors such as the economic downward pressure," said analysts from Haitong Futures. The head of the International Monetary Fund warned that much of the global economy would see a tough year in 2023 as the main engines of global growth — the US, Europe and China — are all experience weakening activity. The Fed had raised interest rates by 50 basis points (bps) in December after four consecutive increases of 75 bps each. If the Fed intensifies its rate hikes, that could slow the economy and hamper fuel consumption. Lending oil some support, the US dollar weakened on Wednesday after posting big gains in the previous session. A weaker US dollar typically boosts demand for oil as dollar-denominated commodities become cheaper for holders of other currencies. US crude oil stockpiles likely rose 2.2 million barrels, with distillate inventories also seen down, a preliminary Reuters poll showed on Monday. Industry group American Petroleum Institute is due to release data on US crude inventories at 4.30pm EDT (2030 GMT) on Wednesday. The Energy Information Administration, the statistical arm of the US Department of Energy, will release its own figures at 10.30am (1430 GMT) on Thursday.

https://theedgemalaysia.com/node/667900

市场情绪谨慎 拖累马股低开

Mandarin

（吉隆坡22日讯）分析员表示，马股今早开盘走低，因为美国债务上限谈判，导致市场情绪谨慎。 截至早上9时18分，富时隆综指挫7.28点，至1421.26点，上周五收报1428.54点。 下跌股242只，上升股132只，另有270只无起落，1604只无交易及14只暂停交易。 马股总成交量为2亿6059万股，总值8959万令吉。 马六甲证券私人有限公司表示，尽管美联储主席Jerome Powell称将采取不那么激进的加息举措，但投资者可能仍会保持谨慎。美国债务上限谈判暂停后，担忧情绪浮出水面。 “本周，所有人的目光都将集中在美国联邦公开市场委员会（FOMC）的会议纪要以及马来西亚通货膨胀率上。” 在大宗商品方面，布兰特原油价格高于每桶75美元大关，而原棕油价格徘徊在每吨3500令吉以下，黄金价格则保持在每盎司2000美元以下。 马股重量级股马银行（Malayan Banking Bhd）降7仙，至8.71令吉，国家能源（Tenaga Nasional Bhd）挫7仙，报9.75令吉，齐力工业（Press Metal Aluminium Holdings Bhd）跌7仙，至4.71令吉，大众银行（Public Bank Bhd）减2仙，报3.96令吉，以及国油贸易（Petronas Dagangan Bhd）滑落36仙，至22.24令吉。 至于热门股，婆罗资源（Bahvest Resources Bhd）起2.5仙，至16.5仙，Jade Marvel Group Bhd涨1.5仙，报23.5仙，标致全球（Iconic Worldwide Bhd）升0.5仙，至15仙，豪华云顶（Ho Wah Genting Bhd）则跌1.5仙，报9仙。   （编译：魏素雯）   English version：Bursa opens lower

https://theedgemalaysia.com/node/610273

Cabinet gives nod for MRT3, to improve Pan Borneo Highway execution

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KUALA LUMPUR (March 4): The Cabinet has agreed to improve the execution of the Sabah and Sarawak Pan Borneo Highway, and to go ahead with the MRT3 Circle Line, Prime Minister Datuk Seri Ismail Sabri Yaakob said. For Pan Borneo Sabah, the Cabinet agreed to continue the implementation of 19 additional work packages involving 367km across five years, Ismail Sabri said in a statement after the Cabinet meeting on Friday (March 4). The government also agreed to undertake the Sarawak-Sabah Link Road (SSLR) and the Trans Borneo Highway Project. “Priority will be given to local contractors, particularly bumiputera, to generate business and job opportunities for Keluarga Malaysia. “This will spur growth and economic development, particularly the government’s objective to continue strengthening the economic sector and to generate 500,000 jobs this year,” Ismail Sabri said. Additionally, the Cabinet decided to increase the allocation for flood mitigation projects to RM15 billion for 2023 to 2030 — from RM1 billion per year initially planned under the 12th Malaysia Plan. This follows the worst flood in decades seen in the country last year up until as recently as this week. Updates on the Pan Borneo projects and the MRT3 have been much awaited by the local construction industry following an absence of newly-sanctioned large-scale projects in recent years. However, the prime minister’s statement lacked details of the MRT3 project. MRT Corp, which handles the MRT projects, had previously alluded to the possibility of tendering out contracts for the 50km MRT3 by August 2021 but this faced delays, including waiting for the government's nod for a proposed hybrid model that would require lead contractors to provide funding of up to 30% to circumvent the fiscal constraints faced by the government. In February 2022, The Edge reported that a group of contractors were seeking to maintain the status quo in terms of participants of the MRT3 project as they had already invested in equipment such as tunnel boring machines and segmental box girder launchers. In East Malaysia, development of Pan Borneo Sabah had been slow ever since the termination of the project delivery partner model in 2019. The Sabah state government now handles the project delivery. Ismail Sabri said in his statement that Phase 1 of Pan Borneo Sabah is now 52% done, with full completion expected by October 2024. Meanwhile, Phase 1 of Pan Borneo Sarawak comprising 786km is 78% complete, the prime minister added. Read also: Newly-greenlit MRT3 set to catalyse socio-economic growth throughout Malaysia, says MRT Corp CEO

https://theedgemalaysia.com/node/607505

Frankly Speaking: ESOS for two

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This article first appeared in The Edge Malaysia Weekly on February 14, 2022 - February 20, 2022 BCM Alliance Bhd should be transparent about its recent employee share option scheme (ESOS) exercise that was offered to only two employees. Why only those two and what roles do they hold in the company? Filings with Bursa Malaysia show that the two, Kiu Cu Seng and Cheng Li Ping, emerged as the largest shareholders of BCM Alliance after exercising their share options. They exercised a total of 469 million share options at 2.91 sen apiece — a 17% discount to the closing price of 3.5 sen on Jan 17, when the offer was made. The stock closed at 3 sen on Feb 8. Kiu exercised some 305.12 million option shares, giving him a 15% stake in BCM, which makes him the largest shareholder in the commercial laundry equipment supplier. Cheng exercised 164.29 million option shares for an 8.08% stake. It is unclear what their roles in BCM Alliance are. However, Kiu’s name has appeared in the filings of Energem Corp as its chief financial officer, and according to the Nasdaq-listed blank-cheque company’s prospectus filed with the US Securities and Exchange Commission, he served as group accountant for BCM Alliance and other Malaysian public- listed companies including Sanichi Technology Bhd and Trive Property Group Bhd. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/672408

CPO futures snap three days of losses to close firmer

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KUALA LUMPUR (June 23): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives reversed three days of losses to end higher on Friday, tracking strength in the Chicago Board of Trade (CBOT) soybean oil market, a dealer said. Palm oil trader David Ng said the weaker-than-expected production pace is also seen as a supporting factor for the local market. “We see support at RM3,500 and resistance at RM3,850,” he told Bernama. According to the Malaysian Palm Oil Association (MPOA), palm oil production declined by 3.64% during the June 1-20 period. At the close, July 2023 grew by RM62 to RM3,644 per tonne, August 2023 added RM61 to RM3,629 per tonne, September 2023 improved RM58 to RM3,620 per tonne, October 2023 and November 2023 put on RM52 to RM3,618 per tonne and RMRM3,630 per tonne respectively, and December 2023 earned RM43 to RM3,644 per tonne. However, the total volume was marginally lower at 48,311 lots from 48,318 lots on Thursday, while open interest declined to 224,995 contracts from 225,949 previously. The physical CPO price for July South gained RM30 to RM3,680 per tonne.

https://theedgemalaysia.com/node/604241

NWP, KPower, Serba Dinamik, SCIB, EcoWorld, GFM Services, F&N, Sunway, Ancom, MAHB, MBSB Bank, SMTrack, Country Heights, Jiankun, Sersol, Techna-X and MQ Technology

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KUALA LUMPUR (Jan 17): Based on corporate announcements and news flow on Monday (Jan 17), companies that may be in focus on Wednesday (Jan 19) include NWP Holdings Bhd, KPower Bhd, Serba Dinamik Bhd, Sarawak Consolidated Industries Bhd (SCIB), Eco World Development Group Bhd (EcoWorld), GFM Services Bhd, Fraser & Neave Holdings Bhd (F&N), Sunway Bhd, Ancom Bhd, Malaysia Airports Holdings Bhd (MAHB), Malaysia Building Society Bhd (MBSB), SMTrack Bhd, Country Heights Holdings Bhd, Jiankun International Bhd, Sersol Bhd, Techna-X Bhd and MQ Technology Bhd. NWP Holdings Bhd has sued its managing director Datuk Seri Kee Soon Ling and independent non-executive director Yew Onn Chong over alleged fraudulent transactions. The timber products manufacturer said the new management of the group had discovered a series of fraudulent transactions allegedly undertaken by Kee and Yew from 2016 to 2021, which had caused NWP and its subsidiaries to suffer losses and damages. It added that Kee and Yew had permitted and/or authorised the fraudulent transactions to be recorded and captured in NWP's consolidated financial statements, which were submitted to Bursa Malaysia. Therefore, the group is seeking RM6.5 million in damages from Kee and Yew, as well as an order to bar the two men from being directors of the group for five years, and restrain them from exercising the voting rights attached to the ordinary shares of the group.  Datuk Mohd Abdul Karim Abdullah has ceased to be a substantial shareholder in construction and engineering solutions player KPower Bhd (formerly Kumpulan Powernet Bhd). Abdul Karim had disposed of 79.05 million shares in a series of transactions that took place between February 2021 and January 2022, and it had received notice of his cessation as a major shareholder on Jan 13. Abdul Karim, who is also the Managing Director and CEO of Serba Dinamik Bhd, is currently facing a charge by the Securities Commission Malaysia in relation to the oil and gas outfit's submission of a false financial statement to Bursa Malaysia. Meanwhile, KPower has redesignated its deputy chairman Mustakim Mat Nun to be its executive chairman with immediate effect. In his role as executive chairman, Mustakim, 48, will be responsible to lead KPower’s board of directors and oversee the group’s business. The chairman's post was previously left vacant after Abdul Karim resigned as the non-independent non-executive chairman on Dec 14, “in order to pursue other matters”. Mustakim is also currently the group's managing director. Trading in the shares of Sarawak Consolidated Industries Bhd (SCIB) will resume on Wednesday (Jan 19), following the release of the group’s outstanding annual report, said Bursa Malaysia. Bursa said the Sarawak-based civil engineering group submitted its annual report for the financial year ended June 30, 2021 (FY21) on Monday. SCIB had been suspended since Nov 9, 2021, after failing to submit the annual report by Nov 8 as directed by Bursa. Eco World Development Group Bhd (EcoWorld) has proposed a bonus issue in the form of one warrant for every five existing shares. The property developer said it plans to issue between 588.87 million and 693.95 million warrants on a date to be announced later. The exercise price of the warrants will also be determined later. It expects to raise gross proceeds of between RM606.5 million and RM714.8 million based on an indicative exercise price of RM1.03 and assuming full exercise of the warrants. Integrated facilities management service provider GFM Services Bhd (GFM) is partnering property developer Majuperak Holdings Bhd to jointly develop and operate a rest and service area (RSA) at Hulu Bernam, Perak, along the North South Expressway. “This marks our second venture in the RSA business and reflects our commitment in enlarging our concessions business. Our maiden entry into RSA was to convert existing lay-bys in Bemban, Melaka into an RSA, and is currently underway,” said GFM executive chairman Ruslan Nordin.  Fraser & Neave Holdings Bhd (F&N)  is expecting market conditions in its financial year ending Sept 30, 2022 to remain tough due to the lingering effects of the Covid-19 pandemic, while commodity prices are anticipated to rise further. As such, F&N CEO Lim Yew Hoe said it would prioritise improving and managing its costs in 2022, particularly its cost of goods sold. It will also leverage its strong manufacturing capability, diversify its range of products, and refine its product mix and pricing to maximise profitability as well as continue to build its halal packaged food. Sunway Bhd’s property arm, Sunway Property Bhd is eyeing RM2.2 billion in sales and RM2.3 billion in launches for 2022, after seeing its highest ever sales of RM2.55 billion in 2021 despite the Covid-19 pandemic. The record performance was attributed to its sales in Singapore, although Sunway Property managing director Sarena Cheah said the group saw commendable sales across all segments. She also highlighted the group's RM4 billion in unbilled sales, almost twice the RM2.2 billion it recorded in the preceding year, providing earnings visibility for the next two to three years. Ancom Bhd recorded a 95.12% jump in net profit at RM12.08 million for its second quarter ended Nov 30, 2021, from RM6.19 million a year prior, due to higher revenue and stronger demand for its agricultural and industrial chemical products in the ASEAN region.  Quarterly revenue for the chemical manufacturing group was 49.16% higher at RM532.91 million from RM357.27 million. Monthly passenger movements for the Malaysia Airports Holdings Bhd (MAHB) group of airports including Istanbul Sabiha Gokcen International Airport (ISG) in Turkey crossed the five million mark in December last year. MAHB said they registered a total of 5.35 million passenger movements where Malaysia operations contributed 3.11 million or 58%, and ISG contributed 2.23 million or 42%. "For Malaysia, the growth was driven mostly by domestic traffic which registered 2.8 million passengers recording a 30% increase from 2.16 million passengers in November, arising from the long year-end festive holidays. International passenger movements also registered encouraging growth from November of 114% to 320,371 movements in December," it said, adding that this was mainly due to the resumption of umrah travel and the implementation of the Vaccinated Travel Lane programmebetween Malaysia and Singapore.  The Employees Provident Fund's 65.4%-owned subsidiary Malaysia Building Society Bhd's (MBSB) wholly-owned subsidiary MBSB Bank Bhd has proposed to issue RM5 billion worth of Islamic bonds or sukuk under the wakalah principle to raise money to finance the financial services provider’s operations. A consortium, comprising SMTrack Bhd along with five listed companies, has signed a Heads of Agreement (HOA) with 5G Infra Tech Solution Sdn Bhd to undertake a series of corporate exercises. The corporate exercises target to raise funds and finance 5G and fibre optics-related projects by Digital National Bhd and Malaysian Communications and Multimedia Commission. The other five other companies are Country Heights Holdings Bhd, Jiankun International Bhd, Sersol Bhd, Techna-X Bhd and MQ Technology Bhd.

https://theedgemalaysia.com/node/673326

Court sets Aug 2 to hear Indira Gandhi's contempt bid against Kota Tinggi Islamic Council

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KUALA LUMPUR (July 3): The High Court on Monday (July 3) has fixed Aug 2 as the hearing date of the committal proceedings initiated by kindergarten teacher M Indira Gandhi and 13 others against the Kota Tinggi Islamic Council, which allegedly interfered in one of the plaintiffs’ application to challenge the validity of state laws concerning unilateral conversion to Islam. The date was fixed by judge Datuk Ahmad Kamal Md Shahid following case management on Monday. He took over the case from Judicial Commissioner Roz Mawar Rozain last month. Ahmad Kamal also directed all parties to file written submissions for the matter by July 17. On Monday, the court also allowed the plaintiffs' application to remove Pahang as a defendant in the suit. The outcome was confirmed by the plaintiffs' counsel Rajesh Nagarajam when contacted by The Edge. Rajesh attended the case management with Lusinthra Pillai. The committal proceedings were initiated in April after the Kota Tinggi Islamic Council had gone to one of the 14 plaintiffs' homes in March, questioning the plaintiff's motive for filing the legal action. The plaintiffs filed an originating summons (OS) in March this year. The 14, including Indira Gandhi, had filed the OS against the Perlis, Malacca, Kedah, Negeri Sembilan, Pahang, Perak, Johor and the Federal Territories for having laws on unilateral conversion. Note that Pahang has been removed as a defendant on Monday. This follows the 2018 landmark Federal Court decision that declared a single parent's unilateral conversion of minors to Islam is unlawful. Senior federal counsel from Perlis Mohd Radhi Abas appeared for the Perlis state government, while senior federal counsel Imtiyaz Wizni Aufa Othman appeared for the Attorney General's Chambers. Nini Shirma Rahmat from Messrs Abdul Razak Muhidin & Associates appeared for the Federal Territory Syariah Lawyers body while Datuk Zainul Rijal Abu Bakar and Danial Farhan appeared for the Federal Territory Islamic council. According to Rajesh, Ahmad Kamal also fixed Sept 4 for the hearing of the intervener application and directed parties to file their submissions by Aug 14. Both the Kuala Lumpur Shariah Bar Council and the Federal Territory Islamic Religious Council have applied to be interveners in this matter. The court also fixed Sept 4 for case management of the main suit. In the OS, the 14 had claimed the states and the federal territories are still practising unilateral conversion of minors into the Islamic faith via the relevant state enactments despite the apex court decision. They are: They claimed that the state enactments had breached Article 12(4) of the Federal Constitution, wherein Article 12 stipulates there should be no discrimination of a person based on religion, race, descent and place of birth, and Subsection 4 stipulates that the religion of person under the age of 18 shall be decided by the parent or guardian. Read also: New judge to preside over case challenging validity of state laws on unilateral conversion Plaintiff in unilateral conversion case to initiate contempt action against Johor religious dept for alleged harassment Indira Gandhi and 13 others file challenge to unilateral conversion laws in eight states

https://theedgemalaysia.com/node/625904

兴业零售研究：汉联机构试图进一步攀升

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（吉隆坡28日讯）兴业零售研究指出，汉联机构（Harn Len Corp Bhd）昨日自21天平均线弹升后，正试图进一步攀升，上探1.28令吉的即时阻力位。 该研究机构今日在报告中称，如果突破该水平，看涨势头可能推动该股至1.36令吉（2021年9月13日高位），然后是1.45令吉（2021年9月6日高位）。 “然而，若跌破1.18令吉的支撑位，走向则可能反转，在平均线下形成‘更低低点’看跌形态。”   （编译：陈慧珊）   English version：Harn Len attempting to climb higher, says RHB Retail Research

https://theedgemalaysia.com/node/642954

Velesto获Hess价值6.4亿的合约

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（吉隆坡7日讯）Velesto Energy Bhd获Hess Exploration and Production Malaysia BV价值1亿3500万美元（6亿4000万令吉）的合约，为后者的North Malay Basin Full Field Development Campaign提供综合钻机、钻井和完井（I-RDC）服务。 Velesto向大马交易所报备，由独资子公司Velesto Drilling私人有限公司获得的这项合约，预计将从今年第四季开始，并于2024年完成，为期两年。 该公司指出，将派遣自升式钻井平台NAGA 5提供钻井和完井服务。 闭市时，该股上升0.5仙或4%，报13仙，市值为10亿3000万令吉。   （编译：陈慧珊）   English version：Velesto bags RM640 mil contract from Hess

https://theedgemalaysia.com/node/671022

Opec holds oil demand view steady despite economic growth warning

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LONDON (June 13): Opec left its forecast for 2023 global oil demand growth steady for a fourth month on Tuesday (June 13), though the producer group warned that the world economy faced rising uncertainty and slower growth in the second half of the year. Global oil demand this year will rise by 2.35 million barrels per day (bpd), or 2.4%, the Organization of the Petroleum Exporting Countries (Opec) said in its monthly report. This was virtually unchanged from the 2.33 million bpd forecast last month. "There are rising uncertainties regarding economic growth in the second half of 2023 amid ongoing high inflation, already elevated key interest rates and tight labour markets," Opec said in its report. "Moreover, it is still unclear as to how and when the geopolitical conflict in Eastern Europe might be resolved," it added, referring to Ukraine. Opec+, which comprises Opec, Russia and other allies, has been taking more steps to support the oil market in 2023. On June 4 the group announced its second package of output cuts since April and Saudi Arabia pledged a voluntary cut for July. Crude prices, however, have remained under pressure from concern over slowing economic growth and demand. The brent crude benchmark added to an earlier gain after the report was released, rising 2.5% gain to trade above US$73 a barrel. Chinese oil demand is now expected to rise by 840,000 bpd, Opec said, up from the 800,000 bpd forecast last month, adding to a recovery after strict Covid-19 containment measures were scrapped. Opec left its 2023 global economic growth forecast at 2.6% and said momentum was slowing. A graphic in the report showed that growth could slow to 0.1% quarter on quarter in the final three months of the year. Potential upside factors, other than a drop in inflation, include an even stronger than previously expected economic rebound in China and the US being able to maintain its first-half momentum, Opec said. The report also showed Opec’s oil production fell in May, reflecting the impact of earlier output cuts pledged by Opec+ as well as some unplanned outages. The Opec report said its May output fell by 464,000 bpd to 28.06 million bpd as voluntary cuts, promised by Saudi Arabia and other members, took effect. Last year, with prices weakening, Opec+ agreed to a two million bpd cut in its output target from November - its largest reduction since the Covid-19 pandemic in 2020. On April 2 several Opec+ members pledged voluntary cuts that added to the deal agreed last year. Opec kept its estimate of the oil demand needed to balance the market at 29.3 million bpd, pointing to a supply deficit if Opec keeps pumping at May's rate and makes the further promised curbs.

https://theedgemalaysia.com/node/663317

Metro Healthcare mulls transfer of listing from LEAP to ACE Market

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KUALA LUMPUR (April 13): Healthcare service provider Metro Healthcare Bhd, which is listed on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia, said it has received a letter from its founder, executive chairman and major shareholder Dr Tee Swi Peng @ Tay Swi Peng requesting the board of directors to consider a transfer to the ACE Market. In a bourse filing on Thursday (April 13), Metro said pursuant to the letter from Tee, its board will deliberate on the proposal. "Further announcement on the above will be made in due course," it added. Last month, Prime Minister Datuk Seri Anwar Ibrahim announced that the Securities Commission Malaysia, together with Bursa, will introduce the LEAP Market transfer framework for companies to migrate from the LEAP Market to the ACE Market. Currently, LEAP Market-listed companies are required to be delisted before they can migrate to the ACE Market. They will have to go through a similar initial public offering assessment process that non-listed companies do in order to be listed on the ACE Market. Metro made its debut on Bursa in February 2018 and raised gross proceeds of RM4.62 million via a private placement to sophisticated investors. Metro shares were untraded on Thursday. It last closed at 59 sen, giving the company a market capitalisation of RM363.86 million.

https://theedgemalaysia.com/node/604811

AirAsia said to be eyeing Raya Airways acquisition

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This article first appeared in The Edge Malaysia Weekly on January 24, 2022 - January 30, 2022 AIRASIA Group Bhd, which is looking to scale up its logistics business Teleport to take advantage of the booming air cargo market, has approached prominent businessman Datuk Ishak Ismail, whose family controls Raya Airways Sdn Bhd, to buy the air cargo carrier, according to people familiar with the matter. However, the conversations are in the early stages and may not materialise into a deal. Also, The Edge learns that top executives at Raya Airways are not keen to sell the air cargo carrier as they plan to take it through the initial public offering (IPO) route themselves. When contacted, representatives for Raya Airways say they will refrain from commenting, given the speculative nature of the questions. Teleport CEO Pete Chareonwongsak tells The Edge that he has no knowledge of any discussions related to news of AirAsia Group’s interest in Raya Airways. “This is, however, a sign of our growing investment and relevance in logistics. Teleport has just had its best year in 2021 and is larger and growing faster than we were pre-Covid-19,” he says. He notes that Teleport’s capital raising is underway. “Our fundraising efforts are in late stage progress and we will announce when we are over the line.” Teleport is looking to secure about US$50 million (RM209 million) to US$100 million of fresh funds as part of a plan that includes expanding its fleet to six freighters by 2023 and going public in three years. The boom in air cargo demand has led Teleport to convert several of AirAsia Group’s passenger aircraft into temporary cargo planes, as well as permanently convert two Airbus A320 passenger jets into freighters. In November last year, it partnered with Thailand’s K-Mile Asia to operate a dedicated Boeing 737-800 freighter (737-800F) to serve key markets — including Hong Kong, Shanghai, Chennai, Mumbai and all the major destinations in Southeast Asia — from Thailand. Teleport nearly tripled its revenue for the third quarter ended Sept 30, 2021 (3QFY2021) to RM157.9 million from RM55.7 million a year ago as it strategically grew its cargo network to establish its presence in the market by operating more charter flights. Teleport made up 53% of AirAsia Group’s overall revenue for 3QFY2021. Teleport’s improved cargo business, however, was offset by its investment in last-mile delivery services, which at the current expansion stage is still operating at a loss position, it said when announcing its financial results for 3QFY2021 on Nov 22 last year. In November 2021, Teleport completed its acquisition of Delivereat, a Malaysian food delivery platform, for US$9.8 million. The deal valued Teleport at US$300 million. “Air cargo is one part of our end-to-end logistics, and the industry outlook is good in 2022 as demand from supply chain and e-commerce continues to be strong, while capacity is expected to recover as more borders begin to open,” says Chareonwongsak. It is worth noting that AirAsia Group was classified as a Practice Note 17 company according to Bursa Malaysia listing rules on Jan 7, and is in the process of formulating a plan to regularise its financial condition. Air cargo has been a bright spot in a pandemic-battered airline industry. According to the International Air Transport Association, global cargo revenue is expected to rise to a record US$175 billion in 2021 and US$169 billion in 2022. “Economic conditions continue to support air cargo growth, however, supply chain disruptions are slowing growth,” the airline group said in a statement on Jan 11. Teleport is not the only one making the necessary investments to tap the boom in air cargo. Malaysia Aviation Group Bhd (MAG) has hired Standard Chartered Bank to explore strategic options for MAB Kargo Sdn Bhd (MASkargo), its profitable wholly-owned air cargo unit. “We are looking at having a global reach ... bringing in [a strategic investor] that has a strong network is an option,” MAG group CEO Captain Izham Ismail told The Edge in an interview last month. Long-haul, low-cost carrier AirAsia X Bhd has also said that it will pivot to the cargo business and is looking at converting a couple of its planes to full freighters. Sources close to the company say the booming demand for air cargo has provided Raya Airways with the ideal environment to go public. In September last year, online news portal The Vibes, citing sources, reported that Raya Airways had been weighing an IPO. Companies Commission of Malaysia (SSM) data shows that Raya Airways’ net worth has more than quadrupled in the past five years, to RM102.64 million as at Dec 31, 2020, from RM23.46 million at the end of 2016. The filing also shows that Raya Airways is wholly-owned by Raya Aviation Holdings Sdn Bhd, which in turn is held in trust by CIMB Islamic Trustee Bhd, with Raya Airways group managing director Mohamad Najib Ishak holding one share. Raya Airways’ and Raya Aviation Holdings’ directors are Mohamad Najib, Siti Nur Aishah Ishak, Mohamad Yusof Ishak — who are the children of Ishak — and Tan Tong Lang is the company secretary. The air cargo carrier has embarked on an expansion spree in recent years, strengthening its fleet of freighter aircraft, network of routes and employees. With a team of close to 450 staff, the carrier currently has a fleet of three 767-200Fs and one 737-400F and operates scheduled air cargo services into major regional hubs such as China, Indonesia, Singapore, Vietnam and Hong Kong as well as Kota Kinabalu, Kuching and Labuan. Raya Airways turned a profit in the financial year ended Dec 31, 2019 (FY2019), marking its first time in the black since taking flight in November 1993. In FY2019, the carrier logged a net profit of RM3.02 million, compared with a net loss of RM19.16 million in FY2018, according to SSM filings. Its revenue rose 25% to RM197.61 million from RM158 million in that same period. In FY2020, Raya Airways’ net profit surged 2,473% year on year to RM77.73 million, while revenue rose 69% y-o-y to RM334.12 million. It has yet to file its financial statements for FY2021 with SSM. Last Wednesday, Raya Airways chief commercial officer Muhamad Hidayat Rahim said in a statement that the carrier is exploring numerous routes to add to its regional footprint. “In the months ahead, we will be announcing exciting destinations across Asia-Pacific, including within China and other countries. Wherever there are business hubs with robust future prospects, we aim to be there,” he added. Raya Airways is the restructured entity of Transmile Air Services Sdn Bhd, formerly a wholly-owned subsidiary of Transmile Group Bhd whose RM530 million accounting fraud was the biggest corporate scandal in mid-2007. Transmile Air Services was acquired by Amrul Nizar Anuar Resources Sdn Bhd — in which Ishak was a director — for RM40 million.   Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/644181

成本及税务增加 潮成资本第三季净利猛挫77%

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（吉隆坡15日讯）营运成本、财务成本及税务费用增加，拖累潮成资本（Teo Seng Capital Bhd）截至今年9月杪第三季净利猛挫77.34%至51万6000令吉，去年同季报228万令吉。 然而，营业额上升15.26%至1亿6658万令吉，一年前为1亿4453万令吉。 现财年第三季营运开销按年剧增27%至1亿7408万令吉，之前为1亿3714万令吉，财务成本则从160万令吉，按年增加10%至176万令吉。 税务费用也暴涨53.17%至542万令吉，2021财年第三季报354万令吉。 因此，每股盈利从0.77仙，狂泻至0.18仙。 截至今年9月杪首9个月（2022财年首9个月），潮成资本净赚861万令吉，2021财年首9个月则净亏905万令吉，累计营业额从3亿7800万令吉攀升24.69%，至4亿7132万令吉。 鉴于饲料成本增加和政府给予鸡蛋补贴，该公司董事认为，现财年末季财务表现仍然充满挑战。 闭市时，该股跌0.5仙或0.63%，至79仙，市值为2亿3700万令吉。   （编译：魏素雯）   English version：Higher costs and tax expenses drag down Teo Seng’s 3Q net profit by 77%

https://theedgemalaysia.com/node/637530

Highest growth in profit after tax over three years: FINANCIAL SERVICES: Insas Bhd - Riding on market sentiment

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This article first appeared in The Edge Malaysia Weekly on September 26, 2022 - October 2, 2022 Insas Bhd, a diversified group that wholly owns stockbroking firm M&A Securities Sdn Bhd, did particularly well in the financial year ended June 30, 2021 (FY2021), thanks to a retail boom in the stock market. Its net profit that year jumped 1,525% to RM242.2 million from RM14.9 million in the previous year, as it earned higher brokerage and corporate advisory fee income. It recorded a 44.6% increase in revenue to RM285.6 million from RM197.5 million. That strong performance got Insas named as winner of the Highest Growth in Profit After Tax Over Three Years under the financial services sector at The Edge Malaysia Centurion Club Corporate Awards 2022, with a PAT compound annual growth rate (CAGR) of 22.5% in the FY2018-FY2021 evaluation period. Insas and Kenanga Investment Bank Bhd are joint winners in this category. The FY2021 rebound more than made up for the 81.8% year-on-year net profit slump to RM14.9 million it saw in FY2020, when the Covid-19 pandemic struck, following the 9.6% y-o-y net profit dip to RM81.8 million prior to that, in FY2019. Insas, which was set up as a private limited company in January 1961 under the name Paper Products (Malaysia) Ltd, has evolved significantly over the decades. Listed on the local stock exchange in June 1969, it assumed its present name in October 1987. Today, its key business divisions are: (1) financial services, credit and leasing; (2) investment holding and trading; (3) technology and information technology-related services; (4) retail trading and car rental services; and (5) property investment and development. The bulk of its revenue comes from the first two divisions. Insas is the flagship company of media-shy businessman Datuk Seri Thong Kok Khee. He is the single largest shareholder, with a 25.05% stake. In August this year, the group announced that its net profit for FY2022 had decreased 16.5% to RM216.1 million, from a restated net profit of RM257.6 million in FY2021. (The restated net profit was due to gains arising from its reduced effective interest in associate company, Inari Amertron Bhd.) Insas is the largest shareholder of Inari Amertron, which is in the electronic manufacturing services industry, with an indirect stake of 14.5% as at July 18. It also has an indirect stake of 26.3% in Divfex Bhd (formerly known as Diversified Gateway Solutions Bhd) as at July 12. Divfex is in the business of information and communications technology. Industry observers note that the group’s fortunes, going forward, will continue to be largely dictated by market sentiment. Nevertheless, Insas is of the view that it is resilient. “The board [of directors] will continue its vigilance to navigate the group through the ongoing challenging and competitive environment amid the war in Ukraine and the disruptions in global supply chains, increase in interest rates and global inflation, which [have dampened] economic growth and affected the investors’ confidence in the global financial markets,” it says in its latest financial statement. And while it is cautious on the outlook for M&A Securities, it expects the business to “remain positive” in FY2023 due to a projected strong performance from the corporate advisory business. Its stockbroking business, however, is likely to be impacted by a global bearish outlook for financial markets. On Oct 6 last year, Insas unveiled plans to unlock the value of M&A Securities via a reverse takeover exercise that valued the company at RM222 million. It is expected to assume the listing status of furniture maker SYF Resources Bhd, which will be renamed M&A Capital Bhd. However, it may take a while yet before this exercise happens as Insas, in a stock exchange filing on July 1 this year, said the parties have agreed to extend the conditional period of their share sale and purchase agreement to Jan 4, 2023. In FY2022, Insas’ financial services, credit and leasing division made a higher profit of RM34.7 million compared with RM31.5 million a year earlier, while its investment holding and trading division registered a loss of RM59.1 million compared with a profit of RM49.9 million the year before. Its share price has shed 17.5% this year to 80 sen as at Aug 29, giving the company a market capitalisation of RM530.4 million. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/649837

地缘政治担忧 令吉兑美元小幅低开

Mandarin

（吉隆坡29日讯）由于围绕中国边境重开和俄罗斯新石油禁令的地缘政治担忧加剧，令吉兑美元开盘小幅走低。 截至9时13分，令吉兑美元跌至4.4250/4295，昨日收报4.4230/4275。 SPI Asset Management董事经理Stephen Innes表示，虽然地缘政治噪音无助于缓解全球经济衰退担忧，但中国重开的步伐和力度是令吉走势的关键。 他向马新社说：“但随着新冠病例激增，市场参与者如今正推迟复苏时间表，认为由于病毒持续的心理影响，即使在全面重开之后，家庭流动性仍可能保持在较低的水平。” 同时，俄罗斯总统Vladimir Putin周二签署了一项法令，从2023年2月1日起禁止向遵守价格上限的国家供应原油和石油产品，为期5个月，以此回应西方国家实施的石油价格上限。 “俄罗斯供应减少，而中国重开的需求增加，这应有利于油价走势。” 令吉兑一篮子主要货币涨跌互见。 令吉兑新元从昨日的3.2802/2840，略升至3.2800/2840，以及兑欧元由4.7043/7091，增至4.7033/7081。 令吉兑英镑则自5.3257/3312，跌至5.3281/3336，以及兑日元贬至3.3069/3108，相比昨日的3.3012/3048。   （编译：陈慧珊）   English version：Ringgit opens slightly lower against US dollar amid geopolitical concerns

https://theedgemalaysia.com/node/656525

亚通拟筹71亿资本开销 不急于整合Digi和Celcom品牌

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（吉隆坡23日讯）亚通（Axiata Group Bhd） 计划今年筹集71亿令吉资本开销（去年为66亿令吉），主要投资用于扩大印尼业务及电讯塔业务。 该集团打算暂时保留数码网络（Digi）和天地通（Celcom）品牌，预计在2022年11月合并完成后的两年内进行网络整合。 联合代集团总执行长Vivek Sood周四在业绩汇报会上表示：“我认为，大部分资本开销将用在印尼业务，我们在那里看到宽频业务和移动业务的投资。” “其次，就是用于电讯塔业务……我们正在现有市场中获得新机会。其他业务在资本开销分配方面，几乎没有变化。” 亚通持有电讯塔业者edotco Group私人有限公司的63%股权。 关于天地通-数码网络合并，Vivek表示，整合活动“已经准备就绪”，但目前亚通打算“保留这两个品牌”。 “因此，数码网络和天地通将会保持现状。我们还没有决定最终是一个品牌，还是继续两个品牌。” Vivek解释说：“但现阶段，我们确实认为保留这两个品牌是有价值的。生意会继续，消费者也会如此，就好像此时什么都没有改变一样。” 他补充说：“我认为，双方有很强的一致性和计划，来实现已经落实的整合活动，到目前为止，无论是整合、实现协同效应及实施计划，各方面都很好。” 亚通料2023财年营业额增长5% 亚通预计，截至2023年12月31日财年（2023财年）营业额将会增长5%，并放眼息税前盈利（EBIT）上升7%至8%。 Vivek表示，这可以通过亚通“大部分”市场的增长来实现。除了大马和印尼，亚通还在孟加拉国、斯里兰卡、尼泊尔和柬埔寨经营移动网络业务。 亚通在截至2022年12月31日第四季（2022财年第四季）录得2亿1950万令吉核心净利，一年前为1亿390万令吉，但最近一个季度，其在尼泊尔、印尼和斯里兰卡的移动业务出现了41亿5000万令吉的巨额商誉减值，而去年同期为3亿3844万令吉。 不过，2022财年末季净利高达99亿7000万令吉，一年前为1亿1602万令吉，因配合天地通-数码网络合并，集团从脱售天地通交易中获得135亿令吉一次性收益。 季度营业额上涨9.34%至58亿3000万令吉，一年前报53亿4000万令吉。 该集团宣布，派发每股5仙第二次股息，将2022财年总股息增至每股14仙，比2021财年的9.5仙，剧增约47%。 2022财年净利飙升至97亿7000万令吉，2021财年报8亿8190万令吉，全年营业额则从199亿9000万令吉，上升8.66%至217亿3000万令吉。 营业额增长得益于所有营运公司提高贡献，但受危机影响的斯里兰卡Dialog Axiata和尼泊尔Ncell Axiata Ltd除外。 闭市时，亚通涨2仙或0.64%，至3.15令吉，市值达289亿1000万令吉。过去一年，该股从3.92令吉下降了19.6%。   （编译：魏素雯）   English version：Axiata plans RM7.1 bil in capex, says in no rush to integrate Digi and Celcom brands

https://theedgemalaysia.com/node/672469

PM: Khazanah to establish new green investment platform

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KUALA LUMPUR (June 25): Khazanah Nasional Bhd (Khazanah) is set to create a new green investment platform to attract more direct investment locally and from abroad, says Prime Minister Datuk Seri Anwar Ibrahim. He said the initiative aimed at helping local companies, especially Bumiputera firms, which would also result in more high-quality jobs for the people. According to Anwar, the matter was discussed during the third Khazanah Board of Directors Meeting for 2023 held a few days ago, with Khazanah's role in national development efforts also thoroughly looked into. "We also discussed the importance of implementing a sustainable energy transition plan to ensure economic sustainability," he said in a post on his Facebook page on Sunday (June 25). Anwar, who is also the Minister of Finance, said the meeting’s main discussion was on investments by Khazanah to strengthen the domestic economic ecosystem, not only for start-up companies but also for those that were already successful and required capital for future growth. He said with Khazanah's involvement, the initiative could help develop local workforce talent and increase the country's capability and competitiveness. Meanwhile, he said Khazanah would continue to work with the government through the "Advancing Malaysia" strategy, in line with the country’s economic development goals. "The government is committed to continue driving Malaysia's economy forward, in an environment of global market and geopolitical uncertainty. "In this regard, stronger cooperation within the private sector and also the government, whether at the federal, state or local authority levels, must continue to be improved," he said. In line with the Madani principles, the prime minister urged Khazanah to be on the right track and stick to its mandate to deliver sustainable economic and social benefits for the people and a better future for the country.

https://theedgemalaysia.com/node/651483

MPOB: Palm oil export revenue to fall 24% to RM102.5b this year despite higher volume

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KUALA LUMPUR (Jan 12): Malaysia's palm oil export revenue is expected to fall by 24.1% in 2023 to RM102.5 billion, compared with a record RM135 billion posted in 2022, due to normalised crude palm oil (CPO) prices forecast for this year. Director general of Malaysian Palm Oil Board (MPOB) Datuk Dr Ahmad Parveez Ghulam Kadir at the Palm Oil Economic Review and Outlook Seminar 2023 on Thursday (Jan 12), however, said exports of Malaysian palm oil are expected to increase 3.7% to 16.30 million tonnes in 2023, from 15.72 million tonnes in 2022, attributed to expected ongoing palm oil demand from importing countries. “CPO production is likely to rise by 3% to 19 million tonnes in 2023, from 18.45 million tonnes in 2022, following an expected increase in mature planted areas, especially in Peninsular Malaysia and Sarawak, better weather conditions as well as improved labour conditions,” said Ahmad. He added that CPO prices are forecast to settle in the range of RM4,000 to RM4,200 per tonne, compared with RM5,087.50 per tonne in the previous year. “The key drivers that will influence CPO prices are labour availability, which is still an issue, lower sunflower seed production from Ukraine due to the ongoing war with Russia, and higher imports of palm oil by China as it loosens its Covid-19 rules. “Other factors include Indonesia’s production of CPO being questionable, its B35 biodiesel mandate, and its tightened export policy,” he said. Indonesia will kick-start its biodiesel mandate known as "B35" from January 2023, which is likely to be given a stronger boost to Malaysian CPO, he added. “This latest policy change would further restrict global palm oil supply. Hence, demand for Malaysian palm oil is expected to rise, which will eventually assist in reducing domestic palm oil stocks,” he said. Malaysia’s palm oil stocks will also likely to fall by 8.75% to two million tonnes in 2023, from 2.19 million tonnes last year, due to an expected increase in export demand, especially from major importing countries. He added that, for the whole of Malaysia, the monthly net income of independent smallholders based on average farm ownership is RM2,634. Sabah recorded RM4,394, Sarawak registered RM3,189, while Peninsular Malaysia stood at RM2,150. Read also: Malaysia might halt palm oil export to EU in retaliation to new deforestation regulations  Arbitrary decision to stop palm oil export to EU is futile attempt, analysts say

https://theedgemalaysia.com/node/662037

Putrajaya committed to tabling Smoking Bill next month, says PM

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KUALA LUMPUR (April 4): Putrajaya is committed to table the Control Smoking Products for Public Health Bill 2023 in the Dewan Rakyat next month, according to Prime Minister Datuk Seri Anwar Ibrahim.  “Initially, the government planned to table the Bill earlier, but unable to do so, because we want to harmonise this Bill with the tax on vape and e-cigarettes, “Anwar told the Dewan Rakyat on Tuesday (April 4).  However, there were many objections and negative reactions from the members of the parliaments (MPs), as they wanted the government to relook certain provisions of the bill, said the prime minister. “We suggest that the Ministry of Health carefully renegotiate with MPs and all health bodies for the purposes of [the Bill] implementation,” said Anwar.  Meanwhile, the Customs Department will continue to control the distribution of vape liquids containing nicotine, said Anwar, while assuring that the Smoking Bill will be tabled in the next parliamentary sitting in May.  Anwar was responding to a question posed by Kuala Langat MP Datuk Dr Ahmad Yunus Hairi, about the justification for the government’s action in the removal of liquid and gel nicotine products used in e-cigarettes from the Poisons Act 1952. Bandar Kuching MP Kelvin Yii also asked him on the timeline to table the Smoking Bill to regulate vape products.  "[The Smoking Bill] is not intended to be delayed. But [negotiations] are necessary so that there is an understanding on some provisions, especially on the implementation, which is considered too harsh. It is appropriate to give room to the MPs to discuss [on this matter],” Anwar said during the minister’s question time.  Over the weekend, Health Minister Dr Zaliha Mustafa said the ministry will introduce a new bill in May to regulate all nicotine-containing smoking products to ensure regulation of nicotine liquids and gels used in e-cigarettes and vape products. This follows the government gazetting an excise duty of 40 sen per millilitre on e-cigarettes and vape products containing nicotine in liquid or gel forms last Friday (March 31).  On the other hand, Anwar said, half of the tax proceeds collected from the vaping industry, which is estimated to be worth over RM2 billion, will be channelled to the MOH.  “So far, the government has decided that the proceeds from these e-cigarettes and vape products will be returned to the MOH, [in an effort] to assist health recovery,” Anwar said in response to a supplementary question by Bandar Kuching MP Kelvin Yii, who asked about the distribution of the tax collection.  Anwar in its Budget 2023 announcement in February said half of the tax revenue collection will be redirected back to the MOH to improve the quality services and fund effective “No Smoking” campaigns.  Read also: Anwar: Too drastic to ban e-cigarettes, vaping products For more Parliament stories, click here.

https://theedgemalaysia.com/node/669682

Yellen urges new World Bank chief to 'get the most' from balance sheet

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WASHINGTON (June 1): US Treasury Secretary Janet Yellen on Thursday told incoming World Bank Group President Ajay Banga to "get the most out of the bank's balance sheet" and mobilise more private capital for climate finance and global development objectives, the Treasury said. During a meeting with Banga a day before the former Mastercard CEO takes office at the World Bank, Yellen "conveyed her strong desire for Treasury to continue close collaboration" with him on the lender's evolution to address climate change and other global challenges. That includes continuing to implement recommendations from last year's G20 report on capital adequacy, which argued that changes to multilateral development banks could unlock hundreds of billions of dollars in new lending. Under Banga's predecessor, David Malpass, the bank's shareholders in April approved an initial round of balance sheet changes to boost lending by US$50 billion over 10 years, while maintaining its top-tier AAA credit rating. But Yellen has insisted that further lending reforms and other changes be made on a "rolling basis" in coming months. Yellen said continuing to implement these reforms would "get the most out of the Bank's balance sheet," and mobilise more private capital "for our shared development objectives and to refine the operating model to increase the responsiveness and agility of the bank," the Treasury said. She also said that the World Bank needs to work more closely with its sister development banks. "Secretary Yellen stressed the need to support the poorest of the banks' member countries, as they continue to face multiple crises, including continuing global macroeconomic headwinds exacerbated by Russia's war in Ukraine," the Treasury added. Banga, 63, was elected to a five-year term as World Bank president by the lender's board of governors on May 3. Nominated by US President Joe Biden, the Indian-born finance and development expert was the sole contender for the job. The US, the World Bank's largest shareholder, has traditionally chosen an American to run the World Bank, while Europe has chosen the head of the International Monetary Fund. Banga, a US citizen since 2007, starts his new role on Friday. In a parting LinkedIn post, Malpass highlighted the growth in the bank's climate finance for developing countries during his tenure, more than doubling it to a record US$32 billion last year, as well as US$440 billion mobilised by the World Bank for overlapping crises starting with Covid-19, the war in Ukraine, food and energy price shocks, supply chain disruptions, and unsustainable debt. Malpass has pushed for more debt transparency and restructuring, particularly on China's loans to poorer countries. He said the huge buildup of government debt threatens to sap dynamism from the global economy. "Without change, the world will likely face a long period of slow growth — and developing countries will be hit the hardest," he added.

https://theedgemalaysia.com/node/653050

Global phone shipments plunge most ever as consumers spend less

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SEOUL (Jan 26): Global smartphone shipments suffered their worst quarterly drop on record in a clear sign of cooling consumer demand that signals more pain for manufacturing hubs like South Korea and Vietnam. Shipments declined 18.3% in the December quarter compared to a year earlier, to a little over 300 million units, Needham, Massachusetts-based IDC said on Thursday (Jan 26). For the year, shipments fell 11.3% and marked the lowest total for a decade, the researchers said. “We have never seen shipments in the holiday quarter come in lower,” Nabila Popal, research director at IDC, said in a press release. Along with inflation and economic uncertainties, Covid lockdowns in China were another factor that hurt the industry, including sales of Apple Inc’s iPhone, she said. “Heavy sales and promotions during the quarter helped deplete existing inventory rather than drive shipment growth.” Turmoil in Apple’s main Chinese production base may have disrupted shipments in the quarter. Protests over Covid restrictions and living conditions at the Zhengzhou complex that makes the majority of the world’s iPhones derailed production for weeks, culminating in violent protests in December. Smartphones are among the largest exports for South Korea and a key source of income for Vietnam as Samsung Electronics Co operates factories in both countries. Samsung last quarter reported its biggest profit fall in over a decade, primarily led by a drop in demand for semiconductors. The company’s exposure to smartphone sales is amplified by its role as the leading provider of memory and displays for the industry. Mobile gadget sales serve as a barometer of demand for chips. South Korea’s smartphone shipments are likely to eke out just 0.7% growth this year after falling 2.1% last year, according to a Korea Development Bank forecast. Chip exports from the country will probably contract 9.8% from a year earlier in 2023, it said, adding to earlier suggestions that a recovery in demand shouldn’t be expected until the tail end of the year.

https://theedgemalaysia.com/node/628748

National Recovery Council recommends relevant ministries, agencies to further simplify recruitment of foreign workers

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KUALA LUMPUR (July 19): The National Recovery Council (MPN) recommends the relevant ministries and agencies to further simplify the procedures for the recruitment and entry of foreign workers into the country. MPN chairman Tan Sri Muhyiddin Yassin said he was disappointed that the issue of the entry of foreign workers into the country had not been resolved even though the procedures are said to be relatively simple. “We also discussed this matter [in Tuesday’s (July 19) MPN round-table discussion session] and during the last session. "Although the procedures are said to be relatively simple, the process of hiring foreign workers is slow, and this has a big impact on productivity and the country's recovery process," he said after a round-table discussion entitled "Speeding up Economic Recovery" here on Tuesday. He said the recruitment of foreign workers is a requirement for various economic sectors, such as plantation, construction, manufacturing, factories, as well as small and medium enterprises, to continue with their production. On the country spending over RM77 billion on subsidies, Muhyiddin said the MPN is taking follow-up action to ensure that the government does not continue to bear the burden of high subsidies. He said many MPN members had suggested for the government to provide targeted subsidies to certain groups that are more entitled to receive them. “Some follow-up actions being taken by the MPN secretariat of the National Rehabilitation Council are to think of how and recommendations to give to the government on how to not increase the burden of high subsidies [on the government]. “If it continues to increase because of the increase in prices of goods, that for me will probably be burdensome, and maybe the government will not be able to afford this," he said. Apart from that, Muhyiddin said the MPN had also raised the issue of food security by evaluating measures to increase the country's food supply in a short time as the agro-food sector is important for the country's future.

https://theedgemalaysia.com/node/638203

Guan Eng graft trial: Defence to receive digital copy of key witness' mobile phone from prosecution by Oct 19

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KUALA LUMPUR (Sept 29): The Sessions Court here has ordered the prosecution in former Penang chief minister Lim Guan Eng’s undersea tunnel graft trial to hand over a digital copy of the mobile phone of a key witness to the defence by Oct 19. The Malaysian Anti-Corruption Commission (MACC) had extracted the mobile phone data belonging to the key witness in the trial, Consortium Zenith Construction Sdn Bhd (ZCSB) director Datuk Zarul Ahmad Mohd Zulkifli, for forensic purposes in its investigation. Lim’s defence counsel Gobind Singh Deo on Thursday (Sept 29) applied for the court to order the prosecution to produce the copy. This was after a cross-examination with the eighth prosecution witness, MACC officer Wan Mohd Firdaus Wan Yusof, who shared details of the forensic extraction. Meanwhile, the court also allowed Gobind’s application seeking the particulars of another MACC officer, who was said to have conducted a different forensic extraction on another phone, which is said to contain the complete Whatsapp conversations between Zarul and businessman Gnanaraja Gnanasundram. The separate extraction was allegedly for another criminal trial at the Shah Alam Sessions Court, Gobind raised in court. Earlier, Wan Mohd Firdaus said he did two extractions from Zarul's mobile phone, as the first extraction was incomplete and excluded Zarul’s WhatsApp messages. A second extraction contained Zarul’s conversations with Gnanaraja – but only within a particular timeline, following instructions by the MACC investigating officer (IO) overseeing the probe, Wan Mohd Firdaus said. Notably, Gnanaraja was charged at the Shah Alam Sessions Court in 2019 with deceiving Zarul of RM19 million in relation to the Penang undersea tunnel project. He is alleged to have deceived the director sometime between July to August 2017. To recap, Zarul had previously testified in his trial that he and Gnanaraja communicated via WhatsApp to discuss the delivery of RM2 million cash bribes to Lim. According to Zarul, the pair delivered RM1 million cash in a bag to Lim at Publika at Hartamas on Aug 20, 2017, while another RM1 million bag was dispatched to the former Penang chief minister at Gnanaraja’s residence on Aug 29. Zarul claimed that the RM2 million he gave to Lim was part of the “bribe money” or a 10% cut for aiding his company to secure the Penang undersea tunnel project. Lim, who is Bagan MP, is accused of using his position as the Penang chief minister to solicit a 10% cut of the RM6.3 billion undersea tunnel project’s profit from Zarul, in return for aiding the businessman’s company to secure the project. He is accused of accepting RM3.3 million in kickback from Zarul. The DAP chairman also faces two counts of dishonest misappropriation of property in releasing two plots of state-owned land cumulatively worth RM208.75 million to Ewein Zenith Sdn Bhd and Zenith Urban Development Sdn Bhd ? two companies linked to the undersea tunnel project. The prosecution was led by Datuk Wan Shaharuddin Wan Ladin. The trial is slated to continue before Sessions Court judge Azura Alwi on Oct 19 with the continued cross-examination of Wan Mohd Firdaus. Read also: MACC to charge businessman Gnanaraja with money laundering on Monday

https://theedgemalaysia.com/node/675838

JAG unit wins three-year RM150 mil waste management job

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KUALA LUMPUR (July 24): A wholly-owned subsidiary of JAG Bhd has signed an agreement to provide total waste management services for a period of three years valued at approximately RM150 million. In a filing to Bursa Malaysia on Monday (July 24), the company said its unit Jaring Metal Industries Sdn Bhd (JMI) signed the agreement with Infineon Technologies (Malaysia) Sdn Bhd. JMI will manage all types of waste or by-products generated from Infineon’s production activities, including scheduled waste (such as electrical and electronic waste, process-related waste and maintenance-related waste), non-scheduled waste and critical scrap. The agreement is for a period of three years commencing Aug 1, valued at approximately RM50 million per year. “The execution of the agreement would result in the temporary increase in cash outflows of the group but it is still within an acceptable level of leverage,” said JAG, whose subsidiaries chiefly engage in the recycling, extraction and trading of metals, renewable energy, and real estate. JMI, which was founded in 1997, is principally involved in recycling and manufacturing activities of extraction, production and refinery of ferrous, non-ferrous and precious metals via the recovery and reclamation of industrial and electrical waste, trading of ferrous and non-ferrous metals, and transportation of goods. Meanwhile, Infineon's main activity is the manufacture and sale of semiconductors. JAG shares closed at 32.5 sen apiece, an increase of two sen or 6.56%, valuing the group at RM202.76 million.

https://theedgemalaysia.com/node/626260

项目赚幅改善 高美达末季净利劲翻近2倍

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（吉隆坡29日讯）尽管营业额下跌，但项目赚幅改善，提振产业发展商高美达（Glomac Bhd）截至今年4月杪第四季（2022财年第四季）净利劲翻近2倍至1511万令吉，一年前为546万令吉。 2022财年末季营业额大跌37%至7359万令吉，一年前报1亿1603万令吉，主要是建筑活动减少所致。 每股盈利从0.71仙，增至1.97仙。该集团建议派发每股1.5仙股息，但必须在即将召开的股东常年大会上获得股东放行。 该集团在2022财年净赚3649万令吉，较2021财年的2822万令吉上涨29%，但营业额从3亿6691万令吉，下滑29%至2亿5949万令吉。 该集团指出，随着大马过渡到流行病阶段，建筑活动恢复，总值5亿4200万令吉的未入账销售为集团提供了盈利可见度。 “尽管如此，新冠肺炎仍然存在，并且仍有感染病例上升或出现新变种的风险。当前的全球事件也导致了供应瓶颈，加剧了通胀压力，对利率上升的担忧抑制了经济增长，并可能导致全球经济衰退。有鉴于此，即使我们努力增长，我们也会继续采取谨慎立场。” 闭市时，高美达持平于30.5仙，市值为2亿4403万令吉。   （编译：魏素雯）   English version：Glomac 4QFY22 net profit jumps almost threefold as project margins improve

https://theedgemalaysia.com/node/666991

Thailand’s top opposition parties agree to link up after vote

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(May 15): Thailand’s two biggest pro-democracy parties agreed to join in a coalition that would give them a clear majority in the lower house, moving to quickly maintain momentum after a stronger-than-forecast showing in Sunday’s elections. The liberal Move Forward party claimed a mandate to lead after topping the polls, with party chief Pita Limjaroenrat taking to Twitter early Monday morning to say he would be a prime minister for all. He told reporters that he has extended invitations to five parties to form the next government. With Move Forward leading in total seats and the popular vote, he won backing from the Pheu Thai party that finished second. “Today, I’m ready to be Thailand’s 30th prime minister,” the Harvard-educated Pita, 42, wrote. “We have the same dreams and hopes and we believe that our beloved Thailand can be better.” While pro-democracy groups were expected to do well, the two parties’ performance was a blow to the military-backed government of Prime Minister Prayuth Chan-Ocha, which took power in a 2014 coup. But that outcome is no guarantee of a quick path to power: Under Thailand’s constitution, the 250-member military-backed Senate is still a powerful bloc, with influence in picking the next prime minister. “The Thai establishment cannot accept overnight change,” said Teerasak Siripant, managing director at BowerGroupAsia’s Thailand office. “With such an overwhelming victory, the establishment will only look to cap Pita’s power.” In an early sign that the opposition is seeking to remain united, Pheu Thai said it is ready to back Move Forward’s bid to form and lead a coalition. Pheu Thai also vowed to endorse Pita when the lower house convenes with the unelected Senate to pick the country’s next leader. “Pheu Thai congratulates and accepts the fact that Move Forward has proposed to lead the formation of the new government,” party leader Cholnan Srikaew told reporters on Monday, shortly after Pita’s remarks. “The party has no plan to compete with Move Forward Party, in order to form the government.” Two of Pheu Thai’s prime minister candidates — Paetongtarn Shinawatra, the youngest daughter of former premier Thaksin Shinawatra, who was toppled in a 2006 coup, and Srettha Thavisin — later tweeted that Pheu Thai’s lawmakers will back Pita as prime minister. Srettha also urged the conservative parties in the outgoing coalition to show sportsmanship and back the popular mandate, even if they are in the opposition. Prayuth and his United Thai Nation party were mostly muted, following the rout. After almost nine years in power, the retired general said late on Sunday that he would abide by the results. “I respect democracy and elections,” he said. There was little doubt that Thailand’s voters sent a message: turnout of more than 75% was a record, according to the country’s Election Commission, with about 39 million people casting ballots. Move Forward took 32 of 33 seats in Bangkok, a near sweep that surprised both Pheu Thai and the conservatives. The party’s performance shows “the people’s demand for change and reform, so it would behoove the establishment to make concessions and come to some kind of compromise, instead of playing for keeps and risking everything,” said Thitinan Pongsudhirak, a professor at Chulalongkorn University in Bangkok. If all the parties Pita reached out to eventually join his coalition, he said that would give them 309 seats in the 500-seat lower house. Thailand’s markets reacted cautiously to the results. The benchmark SET Index closed down 1.3%, set for a third straight session of losses and continuing a trend of underperforming regional peers. The baht rose 0.6% against the dollar. But after underperfoming regional peers, there have been positive signs recently for the nation’s US$506 billion economy. Tourism has rebounded quickly following the Covid-19 pandemic and gross domestic product grew 2.7% in the first quarter from a year earlier, above expectations. Domestic inflation returned to the central bank’s 1%-3% target in March. “There is greater clarity now that the election is out of the way,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. “This should favour Thai assets, which had been under some pressure last week in the lead-up to the election.” Bank of Thailand governor Sethaput Suthiwartnarueput urged the next government to focus on fiscal consolidation. “In terms of the fiscal impact on inflation, a lot of that will depend upon the nature of the spending that occurs,” Sethaput said in an interview with Bloomberg Television’s Haslinda Amin in Bangkok on Monday. Investors will be watching closely to see how coalition talks proceed, and how Pita and any of his new partners navigate a delicate relationship with the current government and its influential backers. The election results could put that more conservative establishment, centred around the monarchy helmed by King Maha Vajiralongkorn, in an awkward position. Move Forward was the only major party calling for changes to Article 112 to allow greater freedom to discuss the royal family. Addressing reporters on Monday, Pita vowed to press forward with that proposal, though some analysts have speculated that effort could be an early casualty if Pheu Thai or other parties push back on it. “Does the establishment have to adjust to Move Forward,” asked Isra Sunthornvut, a former member of Parliament for the Democrat Party. “I think the question is does Move Forward have to adjust to the establishment. To become the government, to become the prime minister, become ministers, you have to do the royal oath, you have to be there for the royals and you have to do all that kind of stuff.” On Monday, Pita ruled out an alliance with the centrist Bhumjaithai party — which emerged as a king-maker in the 2019 election on a vow to decriminalise marijuana, eventually working with Prayuth’s military-backed party. Bhumjaithai finished in third place with about 70 seats on Sunday, according to the uncertified results. Pita moved quickly to sustain Move Forward’s momentum. He planned a Monday evening procession to the Democracy Monument in the centre of Bangkok, one of the key sites of 2020 youth protests and a symbolic sign of Thailand turning the page on yet another military government. “Change is possible if we act now,” he said. 

https://theedgemalaysia.com/node/672846

Sime Darby, Ramsay Health Care explore possibility of JV sale

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KUALA LUMPUR (June 28): Sime Darby Bhd said it has reached a decision with its partner Ramsay Health Care Ltd to explore the possibility of a sale of their 50:50 joint venture (JV) Ramsay Sime Darby Health Care Sdn Bhd.  “At this stage, there is no assurance that the sale process will result in a transaction.”  “Sime Darby will make the necessary announcement to Bursa Malaysia Securities Berhad if and when there is a definite corporate proposal by the company,” said the company in a Bursa filing.  Meanwhile, its trading securities will resume with effect at 10am on Wednesday (June 28).  In a Bursa announcement, its trading was halted with effect from 9am on the same day.  On March 29, the company said it had yet to make a decision after Reuters reported that the JV partners planned to revive the sale of Ramsay Sime Darby Health Care Sdn Bhd.  Reuters reported that the companies are in talks with financial advisors to explore a sale of the JV to strategic investors in a deal that could value the business at some RM6 billion.  On Sept 9, 2022, IHH Healthcare Bhd (IHH) announced its discussion with Sime Darby Holdings Bhd and Ramsay Health Care — for IHH’s proposed acquisition of 100% of the JV — had concluded without a binding agreement. Read more: Sime Darby: No decision to divest Ramsay Sime Darby Health Care IHH says talks for planned acquisition of Ramsay Sime Darby for RM5.67b ended with no agreement Frankly Speaking: What went wrong between IHH and Ramsay Sime Darby?  

https://theedgemalaysia.com/node/645354

水表销售强劲 乔治肯特次季净利暴涨

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（吉隆坡23日讯）乔治肯特（George Kent (M) Bhd）截至9月杪2023财政年第二季净利暴涨逾43倍至592万令吉，相比上财年同期的13万3000令吉。 该集团指出，这归功于水表业务的收入增长40%至3680万令吉，而盈利从721万令吉，增长34.6%至971万令吉。工程与建筑业务盈利由17万6000万令吉，激增870%至170万令吉。 董事部宣布派发每股1.0仙的中期股息，将于12月29日支付。 该集团主席丹斯里陈溪福表示：“我们目前正积极竞标工程与基础设施合约，以补充我们的订单。此外，集团还将物色商业机会，包括收购核心和相关行业的公司，以增加收入。” 闭市时，该股起0.5仙或1.03%，报49仙，市值为2亿7600万令吉。   （编译：陈慧珊）   English version：Robust water meter sales sent George Kent’s profits surging

https://theedgemalaysia.com/node/631426

Edu Nation: Many choices in pursuing studies after secondary school

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This article first appeared in Forum, The Edge Malaysia Weekly on August 8, 2022 - August 14, 2022 Students today are spoilt for choice on academic programmes to pursue after completing their secondary schooling. Be it after the Sijil Pelajaran Malaysia (SPM) or International General Certificate of Secondary Education (IGCSE), there are 20 public universities (IPTA), 434 private institutions/universities (IPTS), 36 polytechnics and 105 community colleges to choose from locally. Perhaps the choices are wider for post-SPM students as it is the prerequisite for all institutions of higher learning in the country. IGCSE graduates, on the other hand, would most likely opt for IPTS. Enrolment statistics for IPTA versus IPTS stand on average at a ratio of 1:1. In better economic times before the pandemic, IPTS were the more popular choice. In 2017, IPTS enrolment stood at 666,617 students versus 538,555 in IPTA. In 2021, the enrolment for IPTA was 589,879 while that for IPTS was 517,580. Indeed, the reduced enrolment in tertiary education after the pandemic is a matter of concern. As it stands, the ratio of job seekers with tertiary qualification is still on average 30%, while 70% have SPM qualification and below. This figure seems to be a static trend for the past 10 years. It is hoped that the qualifications of the future labour force will improve over time so that their economic situation will not be constrained by the low earnings of the majority of low-skilled workers. According to the World Bank, the economic returns for tertiary education graduates are the highest — they enjoy an estimated 17% increase in earnings as compared to 10% for those with primary education and 7% for secondary school leavers. The Malaysia Education Blueprint 2013-2025 (MEB) was developed to transform the declining standards of our education system. It was supposed to develop knowledgeable and critical thinkers who would be equipped to take on highly skilled work, and ease their transition into tertiary education. However, in the end, much is left to parental guidance to make good decisions about educational pathways, and to ensure that resources are available for their children. This would result in the least dependence on state assistance in order to secure better prospects for themselves. The choices students make about whether to pursue tertiary education depend on their secondary school qualification, area of interest, capabilities and the availability of funds. Those who are likely to further their studies via IPTAs would most likely opt for Sijil Tinggi Persekolahan Malaysia (STPM), matriculation or a specific foundation or diploma programme. For those who wish to further their studies in an IPTS or a foreign university, the options available are diploma courses, foundation studies, A Levels, United Examination Certificate or UEC, the International Baccalaureate, American degree programmes and Australian and Canadian matriculation. Students and their parents would need to make informed decisions about the path to take. Doing research and talking to experienced friends and family members are good moves. Most would likely choose A Levels as they are the most obvious and widely accepted entry requirement for universities in the world. It is an easy decision to make, with its proven track record, and is a solid choice indeed for many. But for those who are looking for an alternative to A Levels, they would need to be convinced that their choice is the right one for them. In my personal experience when planning and taking that journey with my two daughters, I was looking for alternatives to A Levels as my perception was that it is another mugging, exam-oriented study method, with a longer completion time than the alternatives. Nottingham University Malaysia (UoN), with its foundation programme as an entry point, is a good choice if the student is able to commit to follow through for the whole degree programme from the start. UoN also allows a study-abroad programme for at least one semester in its UK or China campuses, depending on availability. However, UoN is not a twinning programme, although it permits transfer by quota, subject to availability, into the UK/China campus. One would need to apply for transfer should one choose to. My elder daughter chose to complete her degree here though the plan initially was that she would transfer to the UK campus. However, the plan was hampered by the uncertainties caused by the pandemic. When planning for my younger daughter’s higher education, learning from my past experience, we realised that it was better to have more options for university choices. We chose Sunway College’s Canadian International Matriculation Programme (CIMP), a one-year programme for her pre-university phase. CIMP is the Ontario Secondary School Diploma, which is awarded by the Ministry of Education, Ontario. Most universities worldwide accept the certificate as an entry qualification for undergraduate programmes, on par with applicants from Canada. CIMP is not restricted to only programmes for Canadian universities. It is the STPM of Canada, where STPM is the prerequisite for university entry for applicants from Malaysia. My younger daughter is bound for the University of Liverpool UK (UoL) after completing the CIMP and meeting UoL’s entry conditions. For students who have supportive parents with sufficient resources, it is indeed easier to plan for their future and ensure that they have better prospects. But what will happen to the rest of the students, who make up over 70% of school leavers, who do not or are unable to pursue their studies after SPM? Who has failed them? Their parents? The problematic education system that we have been trying, with seemingly futile attempts, to correct time and time again? What will become of the nation’s productivity, level of innovation and competitiveness in the near future? Tunku Munawirah Putra is the honorary secretary of Parent Action Group for Education Malaysia, an educational lobby group that serves as a channel between concerned parents, the Ministry of Education and other educational stakeholders Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/617724

Nestlé Malaysia confident in sustaining growth momentum in 2022 as 1Q net profit up 17%

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KUALA LUMPUR (April 26): Nestlé (Malaysia) Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) grew 17.14% to RM205.18 million from RM175.16 million a year earlier underpinned by stronger sales, coupled with lower Covid-19 related expenses. The improved results were achieved despite the impact of increased commodity prices, as well as the impact of Cukai Makmur (the prosperity tax), said Nestlé in a bourse filing on Tuesday (April 26). Earnings per share rose to 87.5 sen, compared with 74.7 sen previously. According to Nestlé, its quarterly revenue rose 16.91% to RM1.69 billion from RM1.45 billion, driven by both higher domestic and export sales. “The strong performance of both the core food and beverage business and the out-of-home business under Nestlé Professional benefited from the increased mobility and reopening of hotel, restaurant and café channels post lockdown." Compared to the immediate preceding quarter, net profit jumped 83.02% from RM112.1 million for 4QFY21 as revenue rose 16.49% from RM1.47 billion. The global environment remains very challenging, with widespread inflation gaining traction across the world and also in Asia, aggravated by the war in Ukraine, impacting further prices and availability of key food commodities such as wheat, barley and sunflower oils, noted Nestlé.   “We are confident in sustaining growth momentum across the year even if we see growth levelling down from current high levels in the coming quarters. “Overall, 2022 is shaping as a year of solid growth in the top line and some pressure on the bottom line as we do our best to balance the tensions on our cost value chain with internal efficiencies and moderate price increases,” said the group. Despite the foreseeable hurdles, Nestlé said it aims to continue leveraging all possible opportunities to drive another year of solid and resilient results while making meaningful progress in its environmental, social and governance agenda to contribute to Malaysia’s sustainable progress. In a separate statement, Nestlé Malaysia chief executive officer Juan Aranols said the group remains focused on delivering high-quality, great-tasting and nutritious products that meet the diverse needs of Malaysians, alongside ensuring excellence in consumer communications, digital engagement and in-store activities. “We continued to accelerate our sustainability agenda during the quarter. 100% of our electricity needs come now from the green tariff enabled by the Ministry of Energy and Natural Resources in 4Q21 (the fourth quarter of 2021)," he added. At the 12.30pm break, Nestlé’s share price settled at RM132.90, higher by 0.3% or 40 sen, valuing the company at RM31.17 billion.

https://theedgemalaysia.com/node/615857

Moody's Investors Service keeps stable outlook on Asia-Pacific banks including Malaysia

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KUALA LUMPUR (April 11): Moody's Investors Service has maintained its stable outlook on 13 Asia-Pacific (APAC) banking systems including Malaysia, and revised the outlook to stable from negative for two systems ⁠— Japan and Bangladesh. In a statement on Monday (April 11), the agency said the stable outlook is supported by recovering macroeconomic and operating conditions of APAC economies, banks' largely stable asset quality, capital and liquidity, and rising profitability. It said the outlook on one system — Vietnam — remains positive. Moody’s said the outlook on many APAC banking systems could have been positive if not for the military conflict in Eastern Europe, which is a key risk to the outlook. It said potential further escalation of the military conflict and/or additional sanctions or embargoes on Russia's exports would fuel commodity prices and inflation, a credit-negative for real economic growth, financial markets, business and consumer confidence. The 15 banking systems with stable outlooks are Malaysia, Australia,  Bangladesh, China, Hong Kong, India, Indonesia, Japan, South Korea, New Zealand, Pakistan, the Philippines, Singapore, Taiwan and Thailand. Moody’s said APAC banks' non-performing loan ratio will increase but only modestly in some markets amid the macroeconomic recovery, which is consistent with a stable credit view on asset risk, particularly when considering the credit benefits of banks' large loan-loss reserves. Meanwhile, Moody's expects the asset risk of Indian banks to improve, while that of Chinese and Thai banks would deteriorate because of weaker economic performance and industry-specific challenges. Moody's expects APAC banks' profitability to generally rise this year because of wider net interest margins against the backdrop of higher policy rates. It said loan loss provisions as a share of gross loans will likely decrease modestly in parts of APAC, but banks will be reluctant to release significant amounts of general reserves amid macroeconomic uncertainties. Moody’s said APAC banks will maintain strong and stable funding and liquidity, following improvements over the past two years in funding conditions that benefited from easier monetary policy and slow credit growth. It said their core capital will remain stable, although a mild decrease will occur in some systems as banks will post higher credit growth and pursue capital optimisation strategies. Furthermore, it said government support for banks will remain strong in most APAC banking systems, supporting credit ratings of banks.

https://theedgemalaysia.com/node/646259

Higher revenue and margin lift Bonia’s 1Q net profit, pays two sen dividend

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KUALA LUMPUR (Nov 30): Bonia Corp Bhd posted a net profit of RM14.21 million or 7.07 sen earnings per share for the first quarter ended Sept 30, 2022 (1QFY2023), as revenue and gross profit margin improved as economic activities resumed. In the same period last year, it posted a net loss of RM4.84 million or loss per share of 2.41 sen.   The improved quarterly net profit was also due to a low base effect in the same quarter last year, as sales were depressed by Covid-19 restrictions and lockdown affecting its operations in both Malaysia and Singapore, the fashion retailer’s bourse filing showed. Quarterly revenue more than doubled to RM91.74 million, from RM42.85 million a year ago, primarily driven by the growth in volume as a result of normalisation of business, opening of new stores and the continuous brand-building exercise and product development during the quarter. The company has declared a single tier interim dividend of two sen per share, with the entitlement date on Dec 22 and payment on Jan 6, 2023. Moving forward, the company said it remains vigilant amid continuous headwinds in the business environment, primarily driven by geopolitical and economic uncertainty, monetary tightening policy, supply chain disruption and the weakening of the ringgit. Bonia closed up three sen or 1.46% to RM2.09 on Wednesday (Nov 30), giving it a market capitalisation of RM421 million. Year-to-date, the stock has rallied 109% from RM1 on Jan 3 this year.

https://theedgemalaysia.com/node/644009

G Capital's unit signs renewable energy power purchase deal with TNB

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KUALA LUMPUR (Nov 14): G Capital Bhd has entered into a 21-year renewable energy power purchase agreement (Reppa) with Tenaga Nasional Bhd (TNB). According to its filing with Bursa Malaysia, the Reppa was inked via G Capital's 74.64%-owned subsidiary Hydro R E Sdn Bhd (KHRE). Under the deal, TNB will buy electricity from KHRE at a feed-in-tariff (FiT) rate of 24.61 sen per kilowatt hour. The Reppa's tenure will start from the commercial operation date, which is scheduled to be May 11, 2027. The announcement came after KHRE was granted in May this year the feed-in approval by the Sustainable Energy Development Authority Malaysia for a two-megawatt high-head mini hydro water plant in Sungai Geroh, Perak. "The group is targeting to complete and commission the plant on or before May 11, 2027, envisaging a potential revenue of RM53.09 million to the group over a span of 21 years based on the FiT rate of 24.61 sen per kilowatt hour and [an] estimated annual production of 10.27 gigawatt hours of electricity to be generated from the plant," G Capital's filing further said. G Capital's share price dipped 0.5 sen to close at 52 sen on Monday (Nov 14), giving it a market capitalisation of RM167 million.

https://theedgemalaysia.com/node/602884

CGS-CIMB: Bursa Malaysia’s 4Q net profit to decline on weak equity ADTV

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KUALA LUMPUR (Jan 7): CGS-CIMB Research is expecting Bursa Malaysia Bhd’s net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) to decline year-on-year (y-o-y) and quarter-on-quarter (q-o-q) due to weak trading activities in the capital markets. “We estimate Bursa’s 4QFY21F net profit at RM50.5 million, the lowest since 4QFY19 (before the outbreak of Covid-19), based on assumptions for y-o-y declines of 46.2% in equity income and 0.5% in derivative income, on par with a y-o-y drop in the equity ADTV [average daily trading volume] and derivative ADC [average daily contract]. “This would translate into declines of 51.9% y-o-y and 36.8% q-o-q for 4QFY21F net profit,” said CGS-CIMB’s analyst Winson Ng in a note dated Jan 6. Based on CGS-CIMB’s projection, Bursa would have recorded a net profit of RM340.8 million for the whole financial year ended Dec 31, 2021 (FY21), which would be 9.1% lower than the research house’s previous projection of RM347.7 million. “As such, we reduce our projected FY21F net profit by 9.1% as we cut our assumed equity ADTV by 11.2% for FY21F. However, our target price of RM6.59 is intact, as it is still based on a target FY23 P/E of 21.1 times (on par with the five-year historical average),” it said. “We factor in a decline in the assumed equity ADTV from RM3.56 billion in FY21F to RM2.56 billion in FY22F (versus RM4.21 billion in FY20F and pre-Covid-19 level of RM1.93 billion in FY19), due to relaxation of movement control measures and higher stamp duty rate (which will elevate investors’ transaction costs). "With this, we project a 36.8% drop in Bursa’s FY22F net profit," said Ng. However, CGS-CIMB upgraded the Bursa stock to ‘hold’ from ‘reduce’ as it thinks that the decline in equity ADTV has been priced in. “This is because its share price has fallen by 14.5% since the announcement of Budget 2022 in October 2021 (when the government proposed a higher stamp duty fee rate), pushing down its CY23F P/E from 24.1 times on Nov 1, 2021 to 20.6 times currently (which is below the five-year historical average of 21.1 times). “Its FY22F dividend yield is also decent at 3.7%. We prefer Hong Leong Bank Bhd for exposure to the Malaysian financial services sector,” Ng added. Bursa is scheduled to release its 4QFY21 results on Jan 28. At midday break on Friday, Bursa’s share price settled unchanged at RM6.39 with some 131,300 shares traded. At RM6.39, Bursa has a market capitalisation of RM5.17 billion.

https://theedgemalaysia.com/node/652136

A-Rank appoints Cheah Tek Kuang as chairman

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KUALA LUMPUR (Jan 17): Aluminium billets manufacturer A-Rank Bhd has appointed former AMMB Holdings Bhd managing director Cheah Tek Kuang as its new non-executive chairman. He replaces Datuk Shahrir Abdul Jalil, who resigned in December to comply with the group’s 12-year limit for independent directors, according to the group’s bourse filing. Cheah, 75, was appointed to the board as independent non-executive director in October last year. He also holds directorship in IOI Corp Bhd, Eco World International Bhd and UPA Corp Bhd. Cheah started his career in the Malaysian Industrial Development Authority, now known as Malaysian Investment Development Authority, in 1970 as an economist. In 1978, he joined Arab Malaysian Merchant Bank Bhd, now known as AmInvestment Bank Bhd, in its corporate finance department. Cheah was later appointed as chief executive officer and group managing director of AmInvestment Bank in 2002. Following the restructuring of AmBank group, he was appointed as the group managing director of AMMB Holdings Bhd from 2005 until his retirement in 2012.   Apart from Cheah, A-Rank also re-designated Tan Sri Leow Chong Howa as non-executive vice/deputy chairman, while appointing two independent non-executive directors, Neoh Lay Keong and Siti Ruzainah Abd Halim. Leow controls a 26.23% stake in A-Rank, and is also the executive chairman in LB Aluminium Bhd, in which he owns a 30.2% stake. Shares of A-Rank closed unchanged at 53 sen on Tuesday (Jan 17), giving the group a market capitalisation of RM94.66 million. LB Aluminium, meanwhile settled two sen or 3.5% higher at 58.5 sen, valuing the group at 254.39 million.

https://theedgemalaysia.com/node/650319

Robin Tan resigns as 7-Eleven Malaysia chairman, succeeded by Anwar’s ex-political secretary

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KUALA LUMPUR (Jan 3): 7-Eleven Malaysia Holdings Bhd chairman Datuk Seri Robin Tan Yeong Ching has stepped down “to pursue other interests”. He is succeeded by Farhash Wafa Salvador, the former political secretary to Prime Minister Datuk Seri Anwar Ibrahim. Tan, the son of 7-Eleven’s major shareholder Tan Sri Vincent Tan Chee Yioun with a 41.8% stake, was appointed to the group’s board as chairman, non-independent non-executive director on Nov 25, 2021. 7-Eleven said the boardroom change is effective immediately. The convenience store chain operator said Farhash, 40, brings with him over more than a decade worth of experience in the field of business, consultancy and advisory. Farhash is or had been a director and shareholder in at least 10 private companies which include Swag Technologies Sdn Bhd, Salvador & Sons Sdn Bhd and Pacific Samudera Sdn Bhd, the group said in a stock exchange filing on Tuesday (Jan 3). He was also an independent non-executive director of Bluemont Group Ltd (now known as Southern Archipelago Ltd) from 2014 to 2016, a company listed on the Singapore Exchange. Farhash was also appointed as group executive chairman of Apex Equity Holdings Bhd a week ago, replacing Datuk Ahmad Redza Abdullah, who resigned from his position in September last year after just three months since his appointment in June. Ahmad Redza came onboard as Apex Equity chairman after the retirement of his predecessor Chithra Ganesalingam, whose chairmanship spanned from April 30, 2021 to Jun 20, 2022. Shares of 7-Eleven settled 16 sen or 8.3% lower at RM1.77 on Tuesday, valuing the company at RM2.18 billion, while Apex Equity closed unchanged at RM1.19 with a market capitalisation of RM254.14 million.

https://theedgemalaysia.com/node/634594

M'sian companies working on Kasawari gas project among targets of Beijing-backed hackers — research

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KUALA LUMPUR (Aug 31): Malaysian companies working on the Kasawari gas project in the South China Sea were among the targets of cyberattacks by Beijing-backed hackers. Citing new research from cybersecurity firm Proofpoint and consulting firm PwC, energy portal Oilprice.com on Tuesday (Aug 30) said hacking group Red Ladon, also known as TA423, is using a simple phishing scam to attack politically significant targets in Europe and the Asia-Pacific region, including defence contractors, infrastructure, and law firms involved in diplomatic disputes. The scam sees victims lured in by fake news websites that infect targets’ computers with malicious software, called ScanBox, that lets hackers gather information for reconnaissance purposes. The ScanBox software, which has been used in the past to spy on Tibetan campaign groups, gives hackers information about potential security flaws in their target’s systems.  From April to June, Red Ladon used emails pretending to be Australian news outlets to target manufacturers and infrastructure companies involved in maintaining a wind farm in the South China Sea, the research showed. The report comes after Lloyd’s of London this month said insurers should exclude coverage for state-backed cyberattacks from their standard cyber-insurance policies, due to the financial risks such policies could pose to the insurance marketplace’s stability. Read also: Chinese hackers tied to attacks on South China Sea energy firms

https://theedgemalaysia.com/node/661204

HLIB starts coverage of SAM Engineering & Equipment, target price at RM4.58

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KUALA LUMPUR (March 29): Hong Leong Investment Bank (HLIB) Research has initiated coverage of SAM Engineering & Equipment (Malaysia) Bhd (SAMEE) at RM4.57 with a “hold” rating and target price (TP) of RM4.58, and said SAMEE’s aerospace business division specialises in precision machining of niche aerospace products of complex geometry mostly in the scope of nacelles and engine cases while the group’s equipment business division provides system integration services to global multinational companies in the semiconductor and data storage industries. In a note on Wednesday (March 29), the research house said as SAMEE is positioned in both the front-end and back-end of the semiconductor equipment value chain, the group will stand to benefit from the steady increase in global semiconductor capex and equipment sales. “We initiate coverage of SAMEE with a 'hold' recommendation and a TP of RM4.58 — pegged to a target P/E multiple of 25x on FY2024 profits. “We like SAMEE given its exposure in both the ultra-fast-growing aerospace and semiconductor industries, which we deem to be long-term complementary businesses. “We believe that current valuations are fair amid the following uncertainties: i) the global semiconductor industry is going through a cycle of inventory correction; and ii) we are seeing a considerable slowdown in demand for both data storage and consumer electronics segments globally,” it said.

https://theedgemalaysia.com/node/618068

Cover Story: Committed to building quality, affordable homes

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This article first appeared in City & Country, The Edge Malaysia Weekly on May 2, 2022 - May 8, 2022 On the back of Malaysia’s recovering economy, Mah Sing Group Bhd is optimistic about its property market strategy that focuses on offering affordable high-rises in central business districts and landed houses in strategic, suburban locations with good catchment areas around the country. “Our M-Series projects, such as M Luna, M Adora, M Arisa and M Vertica, have been seeing healthy take-up rates amid the Covid-19 pandemic. Tapping into the robust affordable home market that supports the national homeownership aspirations, a good-quality home with a functional layout that is strategically located is able to offer an enhanced quality of life, including social mobility, improved career prospects and access to good schools or nearby amenities,” Mah Sing founder and group managing director Tan Sri Leong Hoy Kum tells City & Country in an email interview. Mah Sing is an established name in the country with more than 20 years of property development experience. In its financial year ended Dec 31, 2021 (FY2021), the group’s property sales returned to pre-pandemic levels at RM1.6 billion. “This is an increase of 45% compared with RM1.1 billion in sales in 2020 as well as an increase from pre-pandemic sales of RM1.5 billion in 2019. The growth was driven primarily by strong execution, the success of our M-Series projects and effective digital marketing initiatives,” says Leong. This year, the company will continue to focus on affordable properties targeting first-time homebuyers, as the fundamental demand for properties remains strong domestically due to the young demographic and resilient new household formations, says Leong. “We plan to launch RM2.4 billion worth of projects and target a 25% increase in new property sales to RM2 billion for 2022. Price points will be attractive, with 60% of properties below RM500,000 and 94% below RM700,000.” According to him, the company’s project development team engages closely with the local authorities to ensure compliance with regulations and guidelines, and that projects are on track for delivery. “We focus on effective project management, from land banking to construction and ultimately handover, towards ensuring timely completion of the projects at the specified quality.” In terms of undeveloped land bank, Mah Sing has 2,022 acres with an estimated gross development value (GDV) of RM22.65 billion to support future growth. “Our balance sheet remains strong, mainly due to the group’s disciplined financial management and strong execution of strategy of driving growth through strategic landbanking and quick turnarounds,” Leong continues and adds that unbilled sales is RM1.9 billion. He notes that Mah Sing’s cash flow remained strong last year, despite the lockdowns, owing to several vacant possessions. “We recorded a year-end cash balance of RM1.02 billion. This is in addition to three new land acquisitions and ongoing works.” Meanwhile, Mah Sing is continuously looking to add to its land bank. “Backed by the company’s strong balance sheet and fast take-up of our ­M-Series projects, we are constantly on the lookout for strategic land bank. In addition to the Klang Valley, Johor and Penang, we may also seek suitable land for affordable landed products in Seremban, Melaka and Perak, which will be financed by equity or internal funds or borrowings, or a mix of these sources of funds,” says Leong. One of the key projects for the company this year is M Astra in Setapak, Kuala Lumpur, which is set to be launched in June or July. According to Leong, the project has secured about 7,275 registrants to date. With a GDV of RM618 million, the mixed-use development sits on a five-acre leasehold parcel and will comprise two 39-storey towers with a total of 1,426 residential units. The three-bedroom and four-bedroom units will have built-ups ranging from 850 to 1,044 sq ft and prices starting from RM399,000. Leong says the units will be suitable for first-time homebuyers, upgraders, young couples and young families who prefer the city lifestyle and ready amenities. Some of the units will come with balconies, which can be used as a private outdoor space for gardening or exercise. M Astra will also have 24 two-storey shops on the ground floor. These will measure 1,420 to 3,637 sq ft for the typical units and 5,338 to 6,468 sq ft for the drive-through units. Their indicative prices start from RM1.69 million. Leong explains that contactless technology will be used within the development. To reduce physical contact, a delivery parcel locker will be provided for residents. “Some green and sustainable features will also be incorporated in the project, including LED lights in common areas to save energy, enhancing indoor air quality through cross ventilation, using low volatile organic compound (VOC) paint in all units as well as rainwater harvesting to irrigate the landscaping.” Other features of the project will include an automated waste collection system, electric-vehicle charging stations and regenerative elevators, which use energy-efficient elevator technology. The neighbourhood where M Astra is located is easily accessible via Jalan Kuching, Jalan Gombak, Middle Ring Road 2, the Duta-Ulu Kelang Expressway, Kuala Lumpur-Karak Expressway and Ampang-Kuala Lumpur Elevated Highway, and is linked to the upcoming Setiawangsa-Pantai Expressway. Another upcoming project is M Panora, a strata freehold landed residential development in Rawang, Selangor, which is slated to be launched in August this year. It is the developer’s fourth development in the area, following M Residence, M Residence 2 and M Aruna. Sitting on 45.38 acres, M Panora has a GDV of RM300 million and will feature 396 two-storey super link homes with indicative prices starting from RM650,000. The 24ft by 65ft homes will come in four-bedroom, three-bathroom layouts with built-ups of 1,770 to 2,026 sq ft. According to the developer, the low-density development has only nine units per acre and aims to provide a zen-inspired living environment through integrating natural aspects into its design. “Homes at M Panora will be located on a naturally elevated land and will have a northwest and southeast orientation. Units will feature practical layouts, offering flexibility for future renovation and maximising usage of space. The units will also come with a 24ft-wide frontage or car porch, which can fit up to two cars,” Leong notes. “The target market is mainly owner-occupiers, including newlyweds, upgraders, multi-generational families, as well as buyers from the surrounding areas such as Sungai Buloh, Kepong, Selayang, Petaling Jaya, Damansara and Kota Damansara,” he adds. M Panora will be a gated-and-guarded community with perimeter fencing, CCTV surveillance, radio-frequency identification (RFID) system and security patrol. The monthly maintenance fee inclusive of sinking fund is estimated at RM180. “There will also be a five-acre central garden with four sections, namely Zen Residence, Paradise Garden, Pine Forest and Green Avenues, with facilities such as a Zen garden, swing pavilion, labyrinth/meditation garden, children’s playground, barbecue area and a bird sing cage pavilion. It will cater for residents of all walks of life, from the young to the elderly,” says Leong. M Panora enjoys easy access to highways such as the North-South Expressway, Kuala Lumpur-Kuala Selangor Expressway (Latar) and Guthrie Corridor Expressway. The Rawang KTM Station is within an 8.2km radius of the development. The developer is also planning to launch M Senyum in Bandar Baru Salak Tinggi, Sepang. Registration of interest started in 3Q2021 and the project has so far secured 10,000 registrants, notes Leong. The 100-acre development has a GDV of RM681 million and will comprise 1,176 two-storey terraced houses. The four-bedroom, three-bathroom units will measure 20ft by 60ft, 20ft by 65ft and 20ft by 70ft, with built-ups of 1,555 sq ft for intermediate lots and 1,630 sq ft for corner lots. Indicative selling prices start from RM450,000. Another upcoming project is M Nova in Kepong, which will be launched in 3Q2022. Registration of interest for the estimated RM790 million GDV project started in 1Q2022. The project will offer serviced residences with indicative built-ups of 700 to 1,000 sq ft and tentative selling prices from RM318,000. It will be the developer’s third project in the area, following M Luna and Lakeville Residence. Mah Sing’s ongoing projects are Meridin East in Johor Baru, M Aruna in Rawang, M Vertica in Cheras, M Arisa in Sentul, M Luna in Kepong, M Adora in Wangsa Melawati and M Oscar, off Kuchai Lama in Kuala Lumpur. The developer opened for sale Erica Phase 2 @ Meridin East in Pasir Gudang on Feb 17. With a GDV of RM108.25 million, Erica Phase 2 will consist of 210 two-storey link homes. The four-bedroom, three-bathroom units will measure 18ft by 70ft, with built-ups of 1,601 sq ft, and are indicatively priced from RM425,000. Delphy, the final phase in M Aruna, was launched in March and has achieved a take-up rate of 95%. The 96.7-acre M Aruna township with an estimated GDV of RM520 million was launched in 2018. Delphy has a GDV of RM108 million and comprises 177 two-storey link homes with prices starting from RM662,800. In July last year, the developer launched the last block of M Vertica. The RM425 million Block E comprises 646 units priced from RM480,000. In total, the entire M Vertica has 3,600 units spread over five blocks on an 11.25-acre parcel.  M Arisa, launched in 1Q2020, has an estimated GDV of RM652 million and is 80% taken up. The project has two 55-storey towers with more than 1,590 units priced from RM380,000. Meanwhile, M Luna and M Adora have seen a 90% take-up since their launch in June 2020 and July 2020 respectively. The RM705 million M Luna comprises two 57-storey towers with a total of 1,672 serviced apartments and prices starting from RM385,000. M Adora has a GDV of RM378 million and comprises two 31-storey towers with a total of 677 residential units. Selling prices start at RM468,000. M Oscar was launched in 4Q2019 and is 82% taken up. The RM500 million development comprises 910 apartment units with prices starting from RM428,000. Moving on, the developer plans to explore new construction technologies to be more efficient in terms of construction costs. Its strategic focus will remain on meeting environmental, social and governance (ESG) criteria. “Through these challenging times, we have learnt to expect the unexpected at all times. As such, we will continue to provide products that are in line with market demand because such properties will attract buyers owing to their strategic location, affordable price points and well-designed features,” says Leong. To avoid business interruptions, Leong notes that the group will always plan ahead and establish contingency plans. “We have always believed in integrating technology into the business processes and have engaged in digital transformation since before the epidemic. Technology has become one of the most important tools in the property market, and the pandemic has accelerated the entire adoption process. “This is where we will continue to leverage the strengths of the existing digital market platforms to boost sales by streamlining the processes from awareness to payments. Moving forward, we will strive for excellence in our management and operations, and one of the lessons learnt from the pandemic is a renewed commitment to resilience,” he adds. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/659827

My Say: Global financial system must serve the interests of common people

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This article first appeared in Forum, The Edge Malaysia Weekly on March 20, 2023 - March 26, 2023 It has been one crisis after another, ever since financial liberalisation took off. There was the Latin American debt crisis of the 1980s. Then, the Asian financial crisis engulfed our own region, causing huge convulsions. That was followed by currency crashes in Russia, Brazil and Argentina. Soon after, the tech stock frenzy ended in a debacle of monstrous proportions. Then came the mother of all commodity price booms, followed by a bust. In 2007, the US housing boom also ended in a crash, culminating a year later in the worst global financial crisis since the 1930s. Right now, we have smaller banks in the US and elsewhere under pressure as a result of the collapse of Silicon Valley Bank (SVB) and that’s triggering sharp corrections in other banks. Just a few months ago, the UK pension funds came within a few hours of collapsing, saved in the nick of time by regulatory intervention. While it does not look as if the current stresses will trigger another global crisis anytime soon, they are a warning to us that deep-rooted flaws in the global financial system remain unresolved. If nothing is done, another stomach-churning crisis may well be just a matter of time. Following the collapse of SVB, fears of bank runs and other collateral damage induced sharp falls in the prices of risky assets all over the world. Swift action by US regulators appears to have prevented a downward spiral. We were also lucky in that SVB had unique vulnerabilities that are not prevalent elsewhere: its clientele was dominated by start-ups and tech-industry affiliates, making it highly undiversified, unlike conventional financial institutions. With interest rates rising and liquidity conditions tightening, cheap funding for tech companies virtually ended. SVB’s clients were forced to draw down their deposits to survive, depriving SVB of liquidity. The same monetary tightening had also caused losses in SVB’s bond portfolio, which meant that, adjusted for the unrealised losses in that portfolio, SVB’s capital base had eroded. SVB’s deposit portfolio was also severely underinsured: out of its deposits of US$173 billion, just US$8 billion were covered by the Federal Deposit Insurance Corporation’s scheme. Finally, there was some degree of herd behaviour in how SVB’s tech clients rushed to withdraw their deposits simultaneously and rapidly, giving the SVB and regulators little time to prepare. Another reason why we have stability (at least temporarily) in financial markets is because investors are deluding themselves by betting that the US Federal Reserve and other central banks will pivot away from sizeable rate increases. That won’t happen unless the current stresses escalate into an outright crisis — and that is not likely. The Fed may well pause rate hikes briefly in order not to aggravate nervousness in financial markets. But, with core inflation still running at an uncomfortable pace and the real economy proving resilient, the Fed will resume rate hikes of at least 25 basis points each in succeeding months. More salient is the fact that over the medium term, there are underlying upward pressures on inflation in the global economy. That means that interest rates will still remain higher for longer. So, while a broader financial crisis has been averted, this is not the end of the story: •     More tight money means more stresses: SVB’s collapse was just one consequence of tighter monetary conditions that we will all have to live with for a long time. The UK pension funds’ near death was just one example of how the long period of easy money had led to poor financial decisions. As central banks continue to raise rates and cut back on their quantitative easing, more such incidents are likely in our view. No doubt, further skeletons will be exposed in the closets of banks or other corporations. In the current mood of fear and nervousness, more turbulence can be expected, which Asian markets will not be immune to. •     Tech sector slowdown will persist: SVB’s collapse will hurt funding for the embattled US tech sector, already reeling from higher borrowing costs and difficulties in reversing the pandemic-induced overexpansion. Slower capital spending in this sector will hurt demand for Asian exports of key info-tech components. In short, financial markets may well regain some of their balance in coming days but we should nevertheless expect a period of nervousness and volatility. However, if there are more financial accidents, then we could see wilder movements in Asian bonds, equities and currencies.  Even if we are likely to avoid an outright crisis, it is time we asked ourselves whether the current structure of the global financial system is fit for purpose. Ultimately, global finance exists to serve the interests of the common man. If instead, finance becomes a source of frequent crises which damage the livelihoods of ordinary folk while enriching a small minority, then it is not playing its role well and there is a need for change. What are the features of global finance today, and do the pluses offset the minuses?  The financial system, comprising banks, capital markets, asset managers, intermediaries and related institutions, helps to support economic activity by mobilising capital from savers and allocating that capital to the most efficient use. For the first 30 years of the post-war period, finance was heavily regulated. In the 1960s, domestic banking activity was gradually deregulated. Then from the late 1970s, developed countries began to open up their capital accounts, to allow more cross-border capital flows. By the late 1980s, emerging economies also began to follow suit. The rationale for easing restrictions on cross-country capital flows was to allow capital surplus countries to export their excess savings and earn a good return while capital-short economies could utilise the funds flowing in to accelerate economic growth. Indeed, the deregulation of portfolio capital flows — that is, trading in bonds, equities and other financial securities — has helped fundraising in many parts of the world. We could also argue that subjecting policymakers to the discipline of financial markets made for better macroeconomic management. Central banks have become more rigorous in managing inflation. Finance ministers are more conscious that poor fiscal policies would invite punishment in bond and currency markets — as the short-lived administration of former UK prime minister Liz Truss found out last year. However, the trouble is that this benefit comes with many questionable side effects as well. Overall, the current architecture of the global financial system has many unwelcome characteristics: •     There has been an explosion of capital flowing across borders whose value today is multiples of the value of trade in goods and services. That would be fine if not for the fact these flows are highly volatile. When capital flows abruptly and in large scale into or out of the bond, equity and currency markets of emerging economies, they produce outsized increases and falls in values because these markets lack breadth and depth. Such large flows have proved to be greatly destabilising. For example, in 2013, when global investors realised that the Fed would tighten monetary policy ahead of expectations, there was a rush to the exits. Massive outflows clobbered currencies in India, Indonesia and other emerging economies, creating a crisis of confidence. As outlined in our opening paragraph, all too often such volatility leads to crises that have caused immense suffering. •     There seem to be too many shock amplifiers rather than shock absorbers built into the financial system. In some cases, a small shock such as the unanticipated devaluation of the baht in July 1997 can trigger downward spirals in financial markets, with devastating effects. Less dramatically but still damagingly, derivative instruments meant to help hedge against downside risks are used for speculative purposes and often lead to major financial shocks. •     Every now and then, financial markets tend to be subject to frenzies of speculation that produce bubbles, which eventually burst with terrible consequences. Banking supervisors and other regulators have consistently failed to quell this risk. Efforts to regulate seem to eventually be watered down as vested interests in the financial sector are able to use their political clout to telling effect. For example, it is now being reported that the weakening of regulatory rules in the US in 2018 under the Trump administration was partially responsible for the SVB collapse. •     Another troubling characteristic is that central banks, which have a disproportionate influence on the world economy, such as the Fed and the People’s Bank of China, conduct policy with only their economies in mind and do not prioritise the potential fallout elsewhere. While they may consider the impact their policies have on emerging economies, this is not the highest priority. Unfortunately, the result is that such monetary policy decisions cause emerging economies to suffer terrible consequences, as we experienced during the 2013 taper tantrums. The view of the big and powerful countries is that emerging economies should learn to deal with this, for example, by allowing their currencies to float more freely. But this is unworkable for most emerging economies, which cannot manage the consequences of volatile currencies on their economies.  •     Finally, instead of painlessly facilitating capital flows from rich to poor countries, we have the perverse outcome of huge amounts of savings from Asia being exported to rich countries, principally the US. Even in periods when there was a consensus in favour of reforming the global financial architecture, such as just after the 2008 global financial crisis, achieving a consensus has been difficult. The G20 was formed to facilitate such improvements. It has done some good work but struggled to move the needle on the big questions. Today, this is even more the case because of the increased geopolitical frictions that bedevil relations between the US and China, two key players in the global financial system. In fact, finance has become a major arena for that big power tussle. The US and its allies have used powerful financial sanctions to punish Russia for the invasion of Ukraine. That has made China ever more conscious of its vulnerability to US sanctions given the preponderant role of the US dollar in the global financial system. The danger is that each side will devote its energies to weaponising finance rather than working together to reform the system for the better. Southeast Asian economies must find ways to insulate themselves against a more turbulent financial environment. One way is to build strong domestic buffers such as highly capitalised banking sectors and reinforce strict regulation on the financial sector. Another way is to ensure that fiscal and monetary policies are credible and do not invite speculation. A final way is to find ways to throw sand into the wheels of speculation through various forms of controls on foreign exchange trading and speculation. In the longer term, efforts must be made to create regional institutions that can help individual countries stand up to the titans of global finance. That might mean reviving the idea of an Asian Monetary Fund, difficult though that may sound right now. Manu Bhaskaran is CEO of Centennial Asia Advisors Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/668193

South Korea's HYBE signs deal with China's Tencent Music

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SEOUL (May 23): South Korean entertainment company HYBE, home to K-pop superstars BTS, said on Tuesday (May 23) it has signed a music distribution deal with China's Tencent Music. The Seoul Economic Daily reported earlier on Tuesday that the deal would see music from HYBE artists become available on streaming platforms owned by Tencent Music Entertainment Group, including QQ Music, KuGou Music, KuWo Music, and WeSing. Last week, Tencent Music announced a "deep strategic cooperation" deal with HYBE on music copyright and artist promotion in its latest collaboration with major Korean major music labels. Spearheaded by the likes of BTS and Blackpink, South Korea's pop music industry, known as K-pop, has enjoyed a rise in global popularity in recent years. But the Chinese market has proven difficult to enter for South Korean entertainment companies due to Beijing's unofficial ban on South Korean content. Relations between the two countries took a hit in 2017 following South Korea's installation of a THAAD system, a US missile defence shield to better counter North Korea's evolving missile threats. Beijing had argued that THAAD's powerful radar could peer into its airspace and responded sharply by cutting trade and cultural imports from South Korea.    

https://theedgemalaysia.com/node/638101

Central Global赢得1.83亿合约

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（吉隆坡28日讯）Central Global Bhd获得一项价值1亿8329万令吉的合约，为沙巴州山打根的“Projek Jalan Semawang ke Tanjung Kuala Gum-Gum”项目提供建筑所需的设备、机械、劳工和材料。 该公司向大马交易所报备，持股70%的子公司RYRT International私人有限公司于周三获得第三方主要承包商Pembinaan Urusmesra私人有限公司授予这个项目，计划于10月14日动工，并于2025年10月13日完成。 值得注意的是，合约价值超过了该公司的市值。根据今日的91仙收盘价，其市值为1亿1389万令吉。 “合约预计为2023至2025财政年提供额外的营业额和盈利来源。”   （编译：陈慧珊）   English version：Central Global wins RM183 mil contract in Sandakan

https://theedgemalaysia.com/node/669542

Panasonic says shutting down only two manufacturing units in Shah Alam

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KUALA LUMPUR (June 1): Panasonic Manufacturing Malaysia Bhd has clarified a news report that it will shut down several of its operations in Malaysia this year, which will leave hundreds of its workers jobless. In a statement, the electrical home appliances manufacturer said it has shut down two product manufacturing departments at the Shah Alam 1 (SA1) plant, while it has no plans to cease operations in Malaysia. “We completed a rationalisation exercise and business restructuring on March 31. This was in line with the closure of two product manufacturing departments at the Shah Alam 1 (SA1) plant only,” it said. It reiterated that “no other plants or departments other than the one stated are affected”. Panasonic said a nominal number of employees within the affected departments were provided with the option of a mutual separation scheme (MSS), and a significant proportion of them voluntarily opted for the opportunity. For the remaining employees who did not opt for the MSS, Panasonic has offered to transfer them to other relevant departments within the company, in positions that suit their skill sets and potential for growth. “During this rationalisation exercise, those employees who opted for the MSS have received fair and equitable compensation packages which are above industry norms,” it said. Panasonic said that the group is constantly looking at how it can best adapt and navigate to maximise business efficiencies and grow the company sustainably amid the complex environment. “The strategies undertaken are thoroughly thought out and any decisions regarding our workforce are made with the utmost consideration and deliberation,” it said. Meanwhile, the group clarified that the rationalisation exercise is not related to lawsuits involving its former supplier, executive director Chen Ah Huat and his staff. “Regarding the query on the lawsuits filed in 2016 and 2017, we would like to inform that the same have been successfully resolved. “For clarity, the said lawsuits are independent of and unrelated to the recent rationalisation exercise and business restructuring that was completed on March 31,” it noted. News portal Malaysiakini reported that Panasonic will be closing several of its operations including Panasonic Appliances Refrigeration Devices Malaysia Sdn Bhd in Melaka as the group is said to be facing many challenges. The challenges include the group having lost two separate lawsuits related to Chen and 15 of his staff members who had defrauded it of "millions of dollars" as payment for work that could not be verified as having been carried out, according to Malaysiakini. It was reported that Chen was fired in 2013, and subsequently, 15 managers were also terminated. In a separate filing, Panasonic announced that its managing director Kenji Kamada, 58, has resigned from the board, effective May 31. His resignation was due to the change of representative of Panasonic Holdings Corp of Japan, it said. As such, the group has appointed Takashi Sugihara, 57, to take over the office, effective June 1. It said Sugihara has more than 35 years of working experience with Panasonic. "He joined the corporate planning department of Panasonic in 1988 and has been involved with strategic business planning and has taken up various assignments of planning, sales and marketing in America from 1999 to 2005. He was then assigned as general manager to the procurement department [at the] telecom company Panasonic Communications (Malaysia) Sdn Bhd for the period 2005 to 2008," it added. At noon break, shares in Panasonic declined eight sen or 0.36% to RM22.10, valuing the group at RM1.34 billion.

https://theedgemalaysia.com/node/656734

Court allows Hollywood producer Riza Aziz to amend defence statement in 1MDB's civil suit

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KUALA LUMPUR (Feb 24): The High Court on Friday (Feb 24) allowed Hollywood film producer Riza Shahriz Abdul Aziz and his two companies to amend their statement of defence in a lawsuit filed by 1Malaysia Development Bhd (1MDB) and three of its subsidiaries. Following the amendment, Riza, Red Granite Pictures Inc and Red Granite Capital Ltd are allowed to include the details of their settlement agreement with the Malaysian government and consent judgement with the US government. They may also include the fact that the suit was filed after the six-year limitation period that applies to civil cases. Riza — a stepson of jailed former prime minister Datuk Seri Najib Razak — and his two companies filed their original statement of defence in October 2021, and applied to amend it in August 2022. This case had been pending due to a change of judges. Initially, it was before High Court judge Datuk Amarjeet Singh. It was subsequently taken over by judicial commissioner Roz Mawar Rozain, before it was transferred to judicial commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan. Riza and the two companies now have up to March 10 to file their amended defence. 1MDB — along with 1MDB Energy Ltd, 1MDB Energy Holdings Ltd and 1MDB Energy (Langat) Ltd —  has been given until April 10 to reply to the defence by April 10. Raja Ahmad Mohzanuddin Shah fixed April 12 for further case management. The court also ordered Riza and his companies to pay RM3,000 in costs to 1MDB. MDB and the three subsidiaries were represented by lawyers Rabindra S Nathan, Nad Segaram, Lim Jun Rui and Amanda Cheak Xin Yi, while Low Zhi Jie appeared for Riza and his companies. Last August, the High Court allowed the discovery application by 1MDB and the three subsidiaries to obtain documents from Riza and his two companies concerning his correspondence with fugitive businessman Low Taek Jho, or Jho Low, from 2009 to 2015. The court also ordered Riza, Granite Pictures and Red Granite Capital to provide all documents in relation to Red Granite Pictures receiving US$10.173 million between April 12, 2011 and Sept 10, 2012, along with documents in relation to the company receiving US$238 million between June 18, 2012 and Nov 14, 2012. 1MDB and the three subsidiaries filed their suit in May 2021. They claimed that Riza misappropriated their funds from Jho Low, or was willful and reckless in failing to make relevant inquiries as to the sources of the funds. They said the first tranche of payment of more than US$10.173 million made to Riza was from Good Star Ltd, a company controlled by Jho Low, and the US$238 million that Red Granite Capital received was actually from bonds raised by 1MDB for the purchase of several power plants. Riza, in his defence, claimed that the US$10 million was borrowed from the Saudi royal family, while the US$238 million was borrowed from Abu Dhabi-based International Petroleum Investment Company. He also claimed to have paid the US$10 million back to the Saudi royal family. Read also: Court allows 1MDB's application to obtain documents from Riza Aziz in US$248m suit Riza Aziz knowingly received US$248 mil misappropriated from 1MDB — statement of claim

https://theedgemalaysia.com/node/638658

Nazir Razak: 'Serious problem' with blanket subsidies, reform needed to address fiscal impact

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KUALA LUMPUR (Oct 3): Reform is needed to mitigate the fiscal burden of the ballooning subsidy bills on the government’s coffers, said Bank Pembangunan Malaysia Bhd chairman Tan Sri Nazir Razak. Touching on the anticipated rise in subsidy bills to a record RM80 billion this year, Nazir said there is a serious problem with blanket subsidies practised by the Malaysian government. “Firstly, in terms of subsidies, we have a serious problem because I think I’m getting subsidised on my petrol too. We must find a better way of subsidising because the bill is way too high,” he said during the Malaysian Institute of Certified Public Accountants (MICPA) 64th Anniversary Commemorative Lecture entitled “Towards a Better Malaysian Political Economy”. While subsidies are “absolutely necessary”, Nazir pointed out that the government will be incapable of continuing with the subsidies in its current form for the long term. The only solution for the government to fund the subsidy bills is to widen its tax base, he said. Malaysia has to “innovate” with its taxation and look beyond the goods and services tax (GST) or sales and services tax (SST), he added. “I know it's controversial, people get very upset when I talk about the windfall tax, but this happens all over the world,” he said. He gave an example of companies based in Malaysia that made huge profits because of the Covid-19 pandemic. "What is wrong with getting them to pay a higher tax bill?" He added that it is very key to sort out the other side of the equation, in terms of the government’s funding to support the subsidy bills. However, Nazir noted that raising taxes should not be done in isolation. The government should also find ways to build trust in how it spends the rakyat’s funds. He pointed to Indonesia’s fiscal deficit ceiling of 3% which has been done “very successfully”. The absence of a spending cap will tempt “every government in power” to overspend, he added, citing the UK as an example. The Malaysian government, which has set its sights on a 2022 fiscal deficit target of 6% of gross domestic product (GDP), will table the 2023 federal budget on Friday (Oct 7). The Ministry of Finance in its pre-Budget 2023 statement said that targeted subsidies are better for the country’s fiscal balance and long-term growth, but has yet to set a deadline for their implementation. Read also: If corruption was a disease, Malaysia is in stage four cancer — Nazir Razak

https://theedgemalaysia.com/node/667476

Prince Harry, Meghan say they were pursued by paparazzi in New York

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LONDON/ NEW YORK (May 18): Britain's Prince Harry, his wife Meghan and her mother were involved in a "near catastrophic" car chase with press photographers after attending an awards ceremony in New York, Harry's spokesperson said on Wednesday. The incident involved "a ring of highly aggressive paparazzi" in half a dozen cars with blacked out windows, driving dangerously and putting the lives of the couple and Doria Ragland in danger, the spokesperson said. "This relentless pursuit, lasting over two hours, resulted in multiple near collisions involving other drivers on the road, pedestrians and two NYPD (New York Police Department) officers," the spokesperson said in a statement. The couple — the Duke and Duchess of Sussex — were shaken by the incident but otherwise unharmed. The NYPD, which said it had assisted the private security team protecting them, made the incident sound less serious. "There were numerous photographers that made their transport challenging," Julian Phillips, the NYPD's chief spokesperson, said in a statement. "The Duke and Duchess of Sussex arrived at their destination and there were no reported collisions, summonses, injuries, or arrests." The Washington Post quoted taxi driver Sukhcharn Singh, who said he drove the group and a security guard for around 10 minutes before returning to the police station he had picked them up from at the security guard's request. "I don’t think I would call it a chase," Singh was quoted as saying, adding that two vehicles had followed them and come next to the car, taking pictures and filming. "I never felt like I was in danger. It wasn’t like a car chase in a movie. They (the couple) were quiet and seemed scared but it's New York — it's safe." Pictures on social media show Harry, Meghan and her mother sitting in the back of a New York taxi which their spokesperson said showed "a small glimpse at the defence and decoys required to end the harassment". Media reported the couple had switched to the taxi to try and shake off the photographers, after the car they left the Ziegfeld Ballroom in midtown Manhattan in was pursued. The prince has long spoken out about his anger at press intrusion which he blames for the death of his mother Princess Diana, who was killed when her limousine crashed as it sped away from chasing paparazzi in Paris in 1997. The couple's spokesperson said the chase on Tuesday could also have been fatal and involved paparazzi driving on the sidewalk, running red lights, and driving while taking pictures. Those involved were confronted by police officers multiple times, according to the spokesperson. Chris Sanchez, a member of the couple's security team, told CNN he was concerned members of the public could have been hurt. "I have never seen, experienced anything like this," he said. "What we were dealing with was very chaotic. There were about a dozen vehicles: cars, scooters and bicycles." New York City Mayor Eric Adams said he had received a briefing that two NYPD officers could have been injured in the incident. "I don't think there's many of us who don't recall how, how his mom died," Adams told reporters. "And it would be horrific to lose an innocent bystander during a chase like this and something to have happened to them as well." He said he would be given an in-depth briefing later, but that he found it hard to believe there would have been a two-hour high speed chase. "If it's 10 minutes, a 10-minute chase is extremely dangerous in New York City," Adams said. The Ms. Foundation for Women, the organisers of the awards ceremony where Meghan was honoured for her work, said it was horrified by the episode. "Everyone, especially the media, must do better," the statement said. Buckingham Palace had no comment. The couple, who live in California with their two young children, had been staying at a private residence but decided against returning there as they did not wish to compromise their host's safety, according to their spokesperson. Harry has never hidden his dislike for the press, fuelled by the treatment his mother received and by his own experiences, particularly when he was young. In his memoir "Spare", the couple's Netflix documentary series and TV interviews, he has railed against British tabloid newspapers invading his and his family's privacy — one of the main reasons he and Meghan gave for stepping down from their royal roles in 2020 and moving to the US. The prince is currently involved in numerous court cases in London where he has accused newspapers of using unlawful methods to target him and his family. While papers reject nearly all his allegations, one publisher last week apologised for unlawfully seeking information about him in 2004. He is also seeking to overturn a decision by the British government to take away his specialist police protection when he is in Britain.

https://theedgemalaysia.com/node/615278

EVENING 5: Five things you need to know today

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EVENING 5: BNM okays start of talks for MBSB’s MIDF buy Dirty dealings. Corporate battles. Consumer woes. Here are five things you need to know today. 1. Bank Negara Malaysia gives the nod for MBSB to commence negotiations to acquire MIDF from PNB. 2. The MACC probes the sale of land proposed for the development of an international airport in Seri Iskandar, Perak. 3. Moody’s projects that Malaysia’s GDP will expand 6% this year and continue at the same pace in 2023. 4. DanaInfra Nasional will issue a combined RM2.5 billion worth of Islamic bonds under its RM71 billion scheme. 5. A PayNet survey shows the percentage of Malaysians that use cash to pay has fallen to 78%.

https://theedgemalaysia.com/node/667656

Billionaire real estate investor Sam Zell dies at 81

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(May 18): Billionaire real estate investor Sam Zell has died at the age of 81 due to complications from a recent illness, according to statements from the two real estate investment trusts (REITs) that he chaired. Known for his bets on distressed assets and for popularizing the REIT structure in the 1990s, Zell founded the company that was a precursor to Equity Residential and took it public in 1993. The Chicago property czar also invested in a wide range of businesses including manufacturing, travel, retail, healthcare and energy through Equity Group Investments, the private investment firm that he founded more than 50 years ago. Zell had a net worth of US$5.2 billion, according to Forbes. In 2007,he sold Equity Office Properties to Blackstone Inc for US$39 billion in one of the largest real estate deals ever. Soon after, he took media giant Tribune Co private in a US$8.2 billion highly leveraged deal that saddled the company with too much debt. Tribune filed for bankruptcy protection a year later during the global financial crisis after advertising revenue tumbled as more readers began getting their news online. Zell had famously dubbed the acquisition a "deal from hell".

https://theedgemalaysia.com/node/612731

MRT3’s RM31 bil construction price tag in spotlight

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This article first appeared in The Edge Malaysia Weekly on March 21, 2022 - March 27, 2022 THE RM31 billion construction cost for the upcoming Mass Rapid Transit 3 (MRT3) Circle Line has come as a pleasant surprise. The amount is the same as that for MRT2, previously known as the Sungai Buloh-Serdang-Putrajaya line, for which construction commenced in September 2016 and is close to completion. MRT3 will be 51km long, with 40km ­elevated and 11km underground. It will have 31 stations, 10 of which will be interchange stations. MRT3 will form a perimeter around Kuala Lumpur. In comparison, MRT2 is 57.7km long, stretching from Kwasa Damansara to the federal capital of Putrajaya. It has 44.2km of elevated track and 13.5km running through underground tunnels. MRT2 has 36 stations, of which 27 are elevated and nine underground. To put things in perspective, cement and steel prices, which are key elements in construction, have risen substantially over the past few years. The Ministry of International Trade and Industry (Miti) Weekly Bulletin listed steel bar prices at between RM3,200 and RM3,350 per metric tonne on March 11 this year, up from RM2,300 to RM2,400 at end-2020. An analyst who covers the construction sector says that cement is now at about RM18 per bag or RM360 per tonne, compared with about RM10 per bag or about RM200 per tonne prior to the pandemic. This raises the question of how Mass Rapid Transit Corp Sdn Bhd (MRT Corp), the project developer and asset owner of all the MRT lines, hopes to contain the construction costs for MRT3. In a brief conversation with The Edge, MRT Corp CEO Datuk Mohd Zarif Hashim merely says, “You will see more stringent conditions. I will brief the industry in due course.” The construction of MRT3 consists of five main packages — two turnkey contractors for elevated works, one for underground works, one for integrated rail systems, and one project management consultant. The 46km MRT1 (also known as the Kajang line) runs from Sungai Buloh to Kajang. With 9.5km running underground, it cost RM21 billion to build and commenced operations in December 2016. A joint venture company of Gamuda Bhd and MMC Corp Bhd handled the tunnelling jobs for both MRT1 and MRT2. Some say the JV is the front runner to clinch the MRT3 tunnelling contract as well. The underground works package for MRT3 — covering 11km, with six stations — could amount to RM10.7 billion, or 34% of the total RM31 billion construction cost, according to an analyst. This is after taking into consideration the fact that the MRT1 underground portion of 9.5km with seven stations cost RM8.2 billion while MRT2’s underground portion of 13.5km with nine stations cost RM13.1 billion. While there has been talk of an international open tender for the tunnelling portion, The Edge understands that a restricted open tender is being considered, with the possibility of foreign companies participating with local partners, either via a JV or some other working arrangement. However, there is likely to be a requirement that the local company have majority control or drive the partnership. It is also understood that measures are being taken to ensure that the parties awarded contracts are capable and will not merely contract the work out for margins. MRT Corp reduced the underground portion to 11km — or 21% of the 51km line — from previous estimates of about 20km. The MRT3 map shows that there will be two underground tunnels, from Bukit Kiara to Jalan Kuching, and a shorter one from Bukit Kiara South to Universiti, in the Pantai area. In an emailed response to questions by The Edge on why MRT Corp opted for elevated as opposed to underground stations, the Ministry of Finance-controlled entity explains, “The construction cost of the underground section is generally two to three times (depending on the geology) higher than the cost of the elevated section.” Other than RM31 billion in construction costs, MRT Corp is also setting aside about RM8 billion for land acquisition. The National Land Code (Underground Land) (Minimum Depth) Regulations 2017 was expected to considerably reduce costs, but it is not clear if this has been the case. Under the regulation, the depth after which an acquisition need not be undertaken is 6m for agricultural land, 10m for building land, and 15m for industrial land. Under the new National Land Code, while the requirement for land acquisition in underground developments was removed, a compensation payment was made mandatory. Replying to a question on the use of the National Land Code to reduce costs, MRT Corp says, “For the underground portion, the project still needs to acquire the land below the minimum depth. In Kuala Lumpur, the land below the minimum depth will be acquired as stratum title. Compensation must still be paid to landowners for limiting their land use beyond the minimum depth. “The valuation process will be carried out by the Jabatan Penilaian dan Perkhidmatan Harta Kementerian Kewangan Malaysia (Valuation and Property Services Department).” The Edge understands that the compensation payments for the use of land below the threshold depth could amount to as much as 60% of the acquisition value, which may have discouraged MRT Corp from taking this route. There has been much scrutiny over the MRT construction costs ever since the Pakatan Harapan government managed to slash the overall costs by RM8.82 billion to RM31 billion. The above-ground or elevated portion itself was slashed by 23% to RM17.42 billion from RM22.64 billion. There have also been comparisons lately to the tunnelling costs for the Light Rail Transit Line 3 (LRT3) project, which stretches from Johan Setia to Kayu Ara. The cost is considerably lower for the latter, albeit with different specifications and a much shorter tunnel.   Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/676734

Before suing Coinbase, SEC asked it to trade only in bitcoin — FT

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(July 31): The US Securities and Exchange Commission (SEC) had asked Coinbase to stop trading in all cryptocurrencies except bitcoin before suing the cryptocurrency platform in June, the Financial Times reported on Monday (July 31), citing CEO Brian Armstrong. "We really didn't have a choice at that point. Delisting every asset other than bitcoin, which by the way is not what the law says, would have essentially meant the end of the crypto industry in the US," Armstrong told the FT. "It kind of made it an easy choice ...  let's go to court and find out what the court says," he added. The SEC had accused Coinbase of operating illegally because it failed to register as an exchange. It also alleged that Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon. The SEC told FT that its enforcement division did not make formal requests for "companies to delist crypto assets". "In the course of an investigation, the staff may share its own view as to what conduct may raise questions for the commission under the securities laws," FT said, citing the SEC. The regulator sued Binance in June, with both civil cases part of SEC chair Gary Gensler's push to assert jurisdiction over the crypto industry. Gensler has labelled the crypto industry a "Wild West" that has undermined investor trust in the US capital markets. Crypto companies say the SEC rules are unclear, and that the agency is overreaching by trying to regulate them. The SEC and Coinbase did not immediately respond to a Reuters request for comment on the report.

https://theedgemalaysia.com/node/667590

BGMC Group reaches settlement on RM180m suit filed by former JV partners

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KUALA LUMPUR (May 18): The BGMC Group of Companies said it has arrived at a settlement with its former joint venture partners — a Japanese national and his Singapore-based company DPI Solar 1 Pte Ltd — who initiated a RM180 million lawsuit against the group and 23 others linked to it last year for purported fraud and wrongful loss involving the sale of two solar photovoltaic plants, one in Kuala Muda, Kedah and one in Machang, Kelantan. BGMC's solicitor announced this in a statement on Thursday (May 18), saying it was a comprehensive resolution to all legal proceedings filed by Kazuomi Kaneto and DPI Solar 1, who previously held a 40% stake in the plants. "This settlement was achieved strictly without any admission of wrongdoing and/or liability by any of the parties," BGMC's solicitor Messrs Thomas Philip said in the statement. In the suit filed in July, Kaneto and DPI Solar 1 claimed the BGMC Group allegedly committed fraud, misrepresentation, conspiracy and breaches of fiduciary duty, among others, when it sold BGMC Bras Power and Idiwan Solar — the BGMC subsidiaries who are developing the two solar plants — to a company named reNIKOLA Holdings Sdn Bhd, without the consent of the JV partners. reNIKOLA has been identified in the suit as a white knight brought in by BGMC that would ensure the completion of both projects. It was previously reported, a month after the suit was filed, that the disputing parties were trying to reach a settlement. "We are very pleased with the settlement, which clearly shows that reNIKOLA as the white knight is able to deliver not just the completion, but also allowed this comprehensive settlement agreement for our client," said Mathew Thomas Philip, the founder and managing partner of Messrs Thomas Philip. According to the law firm, the settlement follows the recent subscription by reNIKOLA for new redeemable preference shares and the purchase of three companies holding the parcels of land on which the two solar power plants are on. "The details of the settlement are confidential, and as such, we cannot provide any further information on the matter. We would like to thank all parties involved and our legal team for their hard work and dedication in reaching a resolution that is satisfactory to all parties," said BGMC Group chief executive officer Datuk Teh Kok Lee. Moving forward, the settlement will allow the BGMC Group to focus on its core business and the interests of all stakeholders involved, the statement added.

https://theedgemalaysia.com/node/635941

金融医保股带动 马股微升

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（吉隆坡12日讯）金融服务和医疗保健等重量级股的持续买盘带动，马股休盘微幅走高。 休市时，富时隆综指上升1.47点，挂1498点。 综指今早以1497.66点报开，较上周五闭市的1496.53点，微扬1.13点。 上升股362只、下跌股323只，另有389只无起落、1241只无交易，以及9只暂停交易。 成交量15亿3000万股，值7亿9060万令吉。 乐天交易股票研究副总裁唐柏麟表示，由于华尔街继续上涨，无视美国联储局（FED）遏制通胀的强硬立场，综指周一走高。 “部分银行和电讯股获买入，带动综指上周五微幅收升，并数次试图突破1500点关口，但均无法升破。” 他向马新社说：“我们认为综指今日将突破这一阻力，因预计市场情绪将改善，而市场再次关注银行和科技股。” 尽管原油价格反弹，布兰特原油价格飙升至92美元以上，能源股可能会出现一些波动。 重量级股中，马银行（Malayan Banking Bhd）和联昌国际集团（CIMB Group Holdings Bhd）各扬3仙，分别报9令吉和5.47令吉、大众银行（Public Bank Bhd）攀1仙，至4.70令吉、IHH医疗保健（IHH Healthcare Bhd）增5仙、挂6.22令吉，而国油化学（Petronas Chemicals Group Bhd）跌1仙，报8.93令吉。 至于热门股，CSH Alliance Bhd和美全（Metronic Global Bhd）皆涨0.5仙，分别挂4.5仙和4仙、Velesto Energy Bhd扬1.5仙，至10仙、SNS网络科技（SNS Network Technology Bhd）升2.5仙，报28.5仙，以及登高集团（Tanco Holdings Bhd）起2仙，至30.5仙。   （编译：陈慧珊）   English version：Bursa ends morning session higher

https://theedgemalaysia.com/node/642010

Anwar Ibrahim the best and most suitable candidate for Prime Minister, says Kit Siang

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KUALA LUMPUR (Nov 1): PKR president Datuk Seri Anwar Ibrahim is  the best and most suitable candidate for the 10th Prime Minister of Malaysia, said DAP veteran Lim Kit Siang. In his speech at the Pakatan Harapan announcement of Sabah PH candidates in Tuaran, Sabah on Monday (Oct 31), Lim said Anwar was better than BN chairman Datuk Seri Dr Ahmad Zahid Hamidi, PN chairman Tan Sri Muhyiddin Yassin and PAS president Tan Sri Abdul Hadi Awang while Warisan president Datuk Seri Mohd Shafie Apdal is not a candidate at all. He said that although Umno and Barisan Nasiobal coalition are using caretaker Prime Minister Datuk Seri Ismail Sabri Yaakob as the “poster boy” in the 15th General Election, the DAP elder said he does not think that Ismail Sabri is himself convinced that he will be the Prime Mihister if Umno and Barisan Nasional wins the 15th General Election. “Zahid wants to make Malaysia into an international outcast. Malaysia became an international joke when  the whole world regards the  monstrous 1MDB financial scandal as “kleptocracy at its worst” but not in Malaysia under UMNO-Barisan Nasional rule. “Malaysia will  become a bigger international joke when the mastermind of the 1MDB scandal, Najib Razak, walks out of Kajang Prison a free man without fully serving his 12-year jail sentence and paying his RM210 million fine. “Muhyiddin Yassin is responsible for the backdoor  government which toppled the democratically-elected Pakatan Harapan government in 22 months while  the PAS President Hadi Awang could say the wildest lies and falsehoods, the latest of which is that DAP is communist,” he said. Lim said although Warisan will be fielding candidates in Peninsular  Malaysia, its President, Shafie Apdal is not a candidate for Prime Minister of Malaysia. “I do not question the right of Warisan to field candidates in Peninsular Malaysia, although their candidates in Peninsular Malaysia will be fighting to save or lose their deposits. “Anwar is the only Prime Ministerial candidate who appreciates that Malaysia is a plural society with many races, languages, religions and cultures which is asset and not a liability for Malaysia to be a great world-class plural nation,” he said.  

https://theedgemalaysia.com/node/667174

Tests clear recalled Philips sleep apnoea machines of health risks — company

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AMSTERDAM (May 16): Dutch medical devices maker Philips said on Tuesday that independent tests have shown that the use of its respiratory devices involved in a major global recall did not cause health risks for patients. Philips said "rigorous testing" by external parties on the range of DreamStation machines used to treat sleep apnoea showed positive results, confirming preliminary results released last year. "We are very pleased with these results, it is very important for patients to know that the use of the devices did not lead to a health risk", Philips chief executive Roy Jakobs told Reuters in a phone interview. "It proves we have worked with a safe product, even though it might degrade." Amsterdam-based Philips has been grappling with the fallout of the global recall in June 2021 of millions of respirators used to treat sleep apnoea over worries that foam used in the machines could become toxic. It said exposure to particulate matter emissions and volatile organic compounds from degraded foam in DreamStation devices was "unlikely to result in an appreciable harm to health in patients". Philips had already said last year that tests indicated foam degradation was very rare and was linked to the use of unauthorised ozone-based cleaning products. It now added that foam degradation as a result of such cleaning was also unlikely to result in appreciable harm. Philips shares were up 3% in early Amsterdam trading. Philips has lost around 70% of its market value since announcing the recall, as investors feared large litigation bills from a string of lawsuits launched by worried patients. The DreamStation machines included in the tests cover 95% of all recalled devices, Philips said. The company expects test results for the remaining 5% to become available in the third quarter of 2023.

https://theedgemalaysia.com/node/613142

RHB Research sees strong earnings rebound for Astro Malaysia

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KUALA LUMPUR (March 23): RHB Research sees a strong earnings rebound for Astro Malaysia Holdings Bhd following three consecutive quarters of decline with the recovery in advertising expenditure (adex) as a key catalyst. Astro's results for the fourth quarter ended Jan 31, 2022 (4QFY22) are due to be announced on Mar 31. Astro’s stronger sequential showing in 4QFY22 should be driven by a strong rebound in ad sales (off the 3QFY22 low base due to movement control order 3.0), and incremental uplift from new subscription plans unveiled last November, RHB Research analyst Jeffrey Tan said in a note on Wednesday (March 23). The key earnings swing factor, according to him, would be the treatment of Cukai Makmur as 9MFY22 effective tax rate hovering at 24% with the group benefiting from tax losses at certain subsidiaries and qualifying capital allowances. He also said Astro is likely to declare a final and interim dividend per share (DPS) of 3.5 sen, bringing DPS for the financial year ended Jan 31, 2022 (FY22) to eight sen (about 8% yield), ahead of its 75% payout guidance and the research house's projection. “Our forecasts are unchanged pending the earnings release,” he added. Tan also noted if the strong 27% quarter-on-quarter rebound in gross industry adex in 4QFY21 is of any indication, investors should see a similarly strong uplift in Astro’s 4QFY22 adex sales with the resumption of on-ground sponsorship activities under Phase 4 of the National Recovery Plan (NRP). He opined that the launch of a holistic advertising solution (addressable advertising) last December will see the group benefiting from more effective monetisation of ad inventories across platforms. The solution, which kicked off initially on Astro On-Demand (AOD) and on its Ultra/Ulti set-top boxes, will eventually be replicated on linear channels, allowing advertisers to stretch their ad dollars via customised campaigns for a specific audience mix. On Astro's new subscription packages, Tan said, while it may still be premature to discern the overall impact to the group given the pandemic-weakened wallet share of consumers and over-the-top (OTT) substitution effect, anecdotal evidence suggests that the new plans are value accretive. According to him, this is because viewers are presented with stronger content and value proposition via the bundling of Netflix and Disney+Hotstar alongside more flexibility accorded on package offerings. He also said an average household gains from the richer content line-up, a more seamless viewing experience and unified billing platform. “Overall, we see TV subscription revenue stabilising in the medium term from the upgrade to value bundles, a recovery in commercial/enterprise sales and lower churn,” he said. The integration of more iconic OTTs should see cord-cutting level off with cord-nevers joining the fray with its independent OTT service Sooka driving new digital revenue, he added. He maintained a "buy" call on Astro with a target price of RM1.30. “We continue to like the stock for its digital pivot and superior dividend yields, with valuation at -1.5 standard deviation (SD) from its historical enterprise value/earnings before interest, taxes, depreciation and amortisation (EV/EBITDA) mean,” he said. At 9.48am, Astro rose two sen or 1.9% to RM1.07, valuing the group at RM5.42 billion. Year to date, the counter has gained 12.63%.

https://theedgemalaysia.com/node/650518

West Ham stop the rot with point at Leeds

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LEEDS, England (Jan 5): West Ham United brought an end to a run of five consecutive Premier League defeats as they battled to a 2-2 draw at Leeds United on Wednesday. The writing looked to be on the wall for the visitors after teenage forward Wilfried Gnonto gave Leeds the lead in the 27th minute, but David Moyes's side responded well and deservedly levelled just before halftime through a Lucas Paqueta penalty. With supporters still taking their seats for the second half, Gianluca Scamacca stunned Elland Road with a second for West Ham 44 seconds after the restart to complete the turnaround. Leeds toiled as the rain came down, but a thunderbolt out of the blue from Rodrigo restored parity once more with 20 minutes to go. Both sides had chances to win it but had to settle for a point apiece, with West Ham remaining 17th in the table, level on 15 points with Everton in the relegation zone, while Leeds are two points clear of the bottom three in 14th. It was not only West Ham who needed the points coming into the encounter, with Leeds slipping closer to the relegation zone by the week. The hosts started well in the West Yorkshire drizzle, creating several good openings before Italy international Gnonto hammered home his first goal in English football after a neat one-two with Crysencio Summerville. Vladimir Coufal almost scored a spectacular equaliser from just inside the Leeds half after home goalkeeper Illan Meslier had darted from his line to make a tackle, but the audacious loft landed on the roof of the net. It appeared Pablo Fornals had missed another opportunity to equalise as he side-footed wide on the cusp of the interval, but VAR ruled Jarrod Bowen had been fouled in the build-up and a penalty was given, which Paqueta stroked home. The second half was equally as thrilling, with Leeds needing Scamacca's thunderbolt, just his third league goal since arriving in England in the close season, to jolt them into life. After Rodrigo had arrowed his 10th league goal of the campaign into the bottom corner, Declan Rice fired over from a good position, while West Ham goalkeeper Lukasz Fabianski made several fine stops to preserve a much-needed point for his side.

https://theedgemalaysia.com/node/631777

原料成本上涨 合成工业次季净利降15%至300万

English

（吉隆坡10日讯）投入成本持续上升，减缓了赚幅增长，导致合成工业（Hup Seng Industries Bhd）截至今年6月杪第二季（2022财年第二季）净利降至304万令吉。 这比2021财年次季的358万令吉，下滑了15.14%。 每股盈利从0.45仙，减至0.38仙。 季度营业额增加11%至7381万令吉，2021财年次季报6650万令吉，得益于售价上涨。 合成工业说：“出口市场增长6%至90万令吉，主要来自马尔代夫和泰国的贡献。本地市场增长大约13%或640万令吉。” 截至今年6月杪首半年，合成工业的净利猛挫27.06%至981万令吉，一年前为1345万令吉，营业额则微扬2.56%至1亿5307万令吉，一年前报1亿4924万令吉。每股盈利从1.68仙，降至1.23仙。 展望未来，合成工业预计，今年的经营环境将保持高度竞争。 该集团补充说，全球大宗商品价格大幅上涨以及政府逐步取消食品和燃料补贴，对集团的投入成本构成压力，这仍令人担忧。 尽管如此，该集团将密切关注商品价格的发展，评估和调整定价策略和/或在需要时调整主要产品的尺寸。 该集团补充说，将利用运营效率和节省成本的举措。 合成工业周三以75仙平盘挂收，市值为5亿9605万令吉。   （编译：魏素雯）   English version：Hup Seng's 2Q net profit falls 15% to RM3 mil on higher raw material costs

https://theedgemalaysia.com/node/612208

Clarity needed over MNOs 70% stake in DNB, say fund managers

English

KUALA LUMPUR (March 16): While the government has finally announced its decision to proceed with the single wholesale network (SWN) model for the nation’s 5G rollout plan, fund managers said more clarity is needed over how this would actually be implemented. At a press conference on Wednesday (March 16), Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz unveiled a modified version of the SWN model, which will see a 70% stake in Digital Nasional Bhd offered to mobile network operators (MNOs) in the country, to be completed by the end of June 2022. He said the move was to “encourage public-private partnership” in the rollout and that it demonstrates the government’s firm stance on policy continuity. Several MNOs had previously mooted for a dual wholesale network model instead, citing concerns over competitiveness and continued investment and innovation of products and services in the sector. Areca Capital CEO Danny Wong pointed out that the granting of the 70% equity stake will still be subject to further negotiations, and that full details of the government's latest announcement have yet to be revealed. “We don’t know who gets how much [of the equity stake] and at what price. And how would they make it as fair as possible? Is each MNO going to be entitled to the same amount of shares, and would the price be the same for all MNOs, which may have different capacity requirements?” he questioned. Meanwhile, an analyst said the decision to grant equity to the MNOs was somewhat expected, as the government needs the support of the telcos for the rollout. Nevertheless, he noted that there were expectations that the government would opt for the DWN model instead. However, the analyst said the involvement of many parties in DNB could result in potential delays in the 5G development and rollout, and questioned how the roles of DNB and the MNOs would be split. “When there are so many parties involved, there could be disagreements, which can cause delays and might even lead to cost overruns,” said the analyst. While more clarity is needed, the market reacted positively to the news, with telco counters marking gains across the board following the government’s announcement of the new SWN model. At 5pm, Maxis Bhd closed 11 sen or 2.7% higher at RM4.19, while Digi.com Bhd rose seven sen or 1.8% to RM4.01. Axiata Group Bhd ended the day four sen or 1.1% higher at RM3.80, TIME dotCom Bhd increased one sen or 0.2% to RM4.12, while Telekom Malaysia Bhd settled six sen or 1.2% higher at RM4.92. Fortress Capital Asset Management CEO Thomas Yong said the announcement was mildly positive for the telecommunications sector, given concerns shared among industry players that a single state-run network could hinder competition. “Offering a 70% stake in DNB to the MNOs at the initial stage should alleviate concerns over pricing and transparency issues. This will allow the MNOs to have better participation in the roll-out plan. “The exact impact on the telecommunication sector would depend on the eventual wholesale agreement between DNB and the telcos. Nevertheless, finalisation of the framework should remove some overhang of the sector,” Yong added. Read also: Govt to maintain SWN model for 5G rollout, offer 70% stake in DNB to MNOs, says finance minister DNB welcomes govt decision to maintain SWN, seeks to engage with telcos  Big four telcos welcome govt's decision to stick with SWN with DNB stake offer for 5G rollout  YTL calls for mobile network operators to support govt's 5G vision 

https://theedgemalaysia.com/node/664257

吉隆再跌停板

Mandarin

（吉隆坡20日讯）自从本月初宣布与Apple Malaysia私人有限公司法律纠纷的审讯日后，吉隆公司（Salutica Bhd）连续第二天跌停板。 该股今日劲挫34.5仙或29.7%，以81.5仙挂收，为盘中低位，市值为3亿4520万令吉。 该股为马股第二大下跌股，也是第三大热门股，共1亿22万股易手。 该股自3月杪以来节节上升，自从《The Edge Malaysia》财经周刊在最新一期报道中提到，吉隆公司与Apple Malaysia的官司临近，促使投资者对该股的兴趣，刺激股价在周二（4月18日）攀升至1.65令吉，创下史上新高纪录。 林氏家族通过私人公司Blue Ocean Enlightenment私人有限公司持有吉隆公司的50.6%股权。   （编译：魏素雯）   English version：Salutica hit by another limit down ahead of Aidilfitri break

https://theedgemalaysia.com/node/677628

Anwar: Campaign well, do not curse, insult

English

PETALING JAYA (Aug 6): Entering the second round of the election campaign in the six states, Prime Minister Datuk Seri Anwar Ibrahim advised all contesting parties, including the opposition, to campaign prudently and not insult the opponents. The Pakatan Harapan (PH) chairman said they should use the campaign election as a platform to explain current issues to the people. "In politics, you can be firm, but don't swear. I heard in a ceramah (political talks) recently words like 'Anwar is treacherous, Anwar is an idiot' said.... My advice is, let's not be too arrogant. "They (the opposition) want to criticise, it's alright.... What I did may not be right all the time, [they] can criticise and can give views, but don’t insult. Campaign well, no need to curse and no need to insult because in the end, we are friends, family too” he said. Anwar said this at the Unity Public Talk at Dataran Anak Muda here on Sunday (Aug 6) night. Meanwhile, Anwar also refuted claims that he and the unity government are arrogant and cruel, and insisted that as prime minister, he and his Cabinet members always wanted to be leaders who are just, look after the welfare of the people and reject corruption. "Now they (the opposition) call us tyrants, a tyrant because they (opposition) [were] charged in court for corruption, that was not my decision, I was in and out of prison, and spent almost 11 years in prison. "I’m a prime minister now, not a job to be cruel. Why did Allah put me through so tough a test, not only me, (wife) Wan Azizah, my children, family and friends," he said. Meanwhile, Anwar said the unity government has never denied the rights of all races in the country. "I am a Muslim, my religion does not teach me to insult people because of their skin colour and race. If it is right (good for the people), we support.... Allocation for the Islamic agenda, raising the dignity of the Malays, is increased. “All these, (DAP secretary general) Anthony Loke does not object [and], in fact, supports, because he understands the country’s needs,” he said. Visit this link for everything about the State Polls 2023.

https://theedgemalaysia.com/node/676493

UEM Sunrise appoints Hafizuddin Sulaiman as CFO

English

KUALA LUMPUR (July 28): UEM Sunrise Bhd has appointed Hafizuddin Sulaiman as its chief financial officer (CFO) with effect from Aug 1. The group said that from the same date, Azmy Mahbot will cease as the group's principal officer of finance and resume his current role as head, controller. Azmy had served as principal officer of finance since April 1, following the departure of Siew Chee Seng as the group's CFO. In a bourse filing on Friday (July 28), UEM Sunrise said Hafizuddin, 48, has more than 20 years of extensive experience in strategic planning, venture capital, equities, capital markets and mergers and acquisition. He began his career in audit and accounting with Ernst & Young and went on to hold several key positions in a number of large public and private institutions in Malaysia. He served in Khazanah Nasional Bhd as director of finance, group head of treasury at Permodalan Nasional Bhd and chief treasury officer with Berjaya Corporation Bhd.  Prior to joining UEM Sunrise, he served as group head of strategy at QSR Brands (M) Holdings Bhd. He holds a Bachelor of Accountancy from Universiti Teknologi MARA and is also a chartered accountant of the Malaysian Institute of Accountants. UEM Sunrise shares closed half sen or 1.03% higher at 49 sen, valuing the group at RM2.48 billion.

https://theedgemalaysia.com/node/672642

SNB to launch digital currency pilot, says chairman

English

ZURICH (June 26): The Swiss National Bank (SNB) is to issue a wholesale central bank digital currency (CBDC) on Switzerland's SIX digital exchange as part of a pilot, the central bank's chairman said at a conference in Zurich on Monday. "This is not just an experiment, it will be real money equivalent to bank reserves and the objective is to test real transactions with market participants," chairman Thomas Jordan said at the Point Zero Forum. Jordan said the pilot project, which will start "soon", is intended at the moment to be for a limited time. Central banks across the world are studying digital versions of their currencies to avoid leaving digital payments to the private sector, as the decline of cash has accelerated in some cases due to the Covid-19 pandemic. As opposed to wholesale CBDCs which use tokenised securities, the SNB has long been cautious about the use of public, or retail, CBDCs. Jordan said he was concerned about potential risks retail CBDCs could have for the financial system, while the use of them was more difficult to control. "We do not exclude that we will never introduce retail [CBDCs] but nevertheless, we are a little bit prudent at the moment," he said. Despite exploring digital currencies, the SNB does not see cash disappearing in Switzerland, the central bank's governor Andrea Maechler said, speaking on a separate panel at the Zero Point Forum. "It is the one way that retail households can hold central bank money," she said. "That feature needs to be maintained irrespective of the technology".

https://theedgemalaysia.com/node/611223

Rising global fuel costs prompt Malaysia Airlines to impose fuel surcharge on passengers, air cargo in some markets from March 23

English

KUALA LUMPUR (March 10): Malaysia Airlines Bhd has announced it will impose a fuel surcharge on passengers and air cargo in selected markets from March 23 after global fuel prices escalated.  “Following the escalating global fuel price, Malaysia Airlines will be imposing a fuel surcharge for passengers and air cargo in selected markets beginning March 23.  “The airline is pro-actively managing its capacity to mitigate unprofitable routes due to rising fuel costs,” said a Malaysia Airlines’ spokesperson when contacted by The Edge.  Oil prices rose in volatile trading on Thursday (March 10) after a sharp drop in the previous session, as the market pondered whether major producers would increase supply to fill the output gap caused by Russia's sanctions for its invasion of Ukraine, Reuters reported.  Brent crude futures were up US$2.53 (RM10.59), or 2.28%, at US$113.67 a barrel by 0651 GMT, after trading in a range of about US$5. The benchmark contract had plunged 13% in the previous session, its biggest one-day drop in nearly two years, said the news agency.  Meanwhile, the US West Texas Intermediate (WTI) crude futures rose US$1.64, or 1.51%, to US$110.34 a barrel after trading in a US$4 range. The contract had fallen 12.5% in the previous session, its biggest one-day drop since November.  TA Securities Research said in its March 2 report that it is maintaining its oil price assumption of US$88 to US$92 per barrel. “In the short term, we believe the following drivers will sustain oil price strength: worries of oil supply disruptions emanating from Russia’s invasion of Ukraine, receding concerns that the Covid-19 Omicron variant will impact oil consumption, shrinking inventories, demand for oil as an alternative due to gas shortage in Europe, and OPEC+’s inability to increase production to fulfil set quotas,” it said.  On the other hand, there are factors that could limit the upward trend in oil prices. These are the possible return of 1.3 million barrels per day of Iranian crude oil supplies after the lifting of sanctions, inflationary pressures that could derail the economic recovery and collapse of oil demand, and the rapid release of US Strategic Petroleum Reserves (SPR) to cool off prices in the wake of the Russia-Ukraine war. “Nevertheless, over the medium term, we expect oil prices to soften in the second half of 2022. This is underpinned by expectations of increased oil production from OPEC+ and the US that will lead to inventory build-ups,” TA Securities added.  Read also: Malaysia Aviation Group aims to restore 70% of capacity by end-2022

https://theedgemalaysia.com/node/635932

My Say: A return to the 1980s — a new context but old threats

English

This article first appeared in Forum, The Edge Malaysia Weekly on September 12, 2022 - September 18, 2022 As rich countries raise interest rates in double-edged efforts to address inflation, developing countries are struggling to cope with slowdowns, inflation, higher interest rates and other costs, plus growing debt distress. Rich countries’ interest rate hikes have triggered capital outflows, currency depreciations and higher debt servicing costs. Developing country woes have been worsened by commodity price volatility, trade disruptions and less foreign exchange earnings. Almost 60% of the poorest countries were already in or at high risk of debt distress, even before the Ukraine crisis. Debt service burdens in middle-income countries have reached 30-year highs as interest rates rise with food, fertiliser and fuel prices. Developing countries’ external debt has risen since the 2008/09 global financial crisis (GFC) — from US$2 trillion in 2000 to US$3.4 trillion in 2007 and US$9.6 trillion in 2019! External debt’s share of gross domestic product (GDP) fell from 33.1% in 2000 to 22.8% in 2008. But with sluggish growth since the GFC, it rose to 30% in 2019, before the pandemic. The pandemic pushed up developing countries’ external debt to US$10.6 trillion, or 33% of GDP in 2020, the highest level on record. The external debt-to-GDP ratio of developing countries other than China was 44% in 2020. Borrowing from international capital markets accelerated after the GFC as interest rates fell. But commercial debt is generally of shorter duration, typically less than 10 years. Private lenders also rarely offer restructuring or refinancing options. Lenders in international capital markets charge developing countries much higher interest rates, ostensibly for greater risk. But changes in public-private debt composition and associated costs have made such debt riskier. Private short-term debt’s share rose from 16% of total external debt in 2000 to 26% in 2020. Meanwhile, international capital markets’ share of public external debt rose from 43% to 62%. Also, much corporate debt, especially of state-owned enterprises, is government-guaranteed. Another factor is that unguaranteed private debt now exceeds public debt. Although private debt may not be government-guaranteed, states often have to take them on in case of default. Hence, such debt needs to be seen as potential contingent government liabilities. Sri Lankan international capital market borrowings grew from 2.5% of foreign debt in 2004 to 56.8% in 2019! Its dollar-denominated debt share rose from 36% in 2012 to 65% in 2019, while China accounted for 10% of its external borrowings. Private borrowings for less than 10 years were 60% of Sri Lankan debt in April 2021. The average interest rate on commercial loans in January 2022 was 6.6% — more than double the Chinese rate. In 2021, Sri Lankan interest payments alone came to 95.4% of its declining government revenue! Commercial debt — mostly Eurobonds — made up 30% of all African external borrowings, with debt to China at 17%. Zambian commercial debt rose from 1.6% of foreign borrowings in 2010 to 30% in 2018; 57% of Ghana’s foreign debt payments went to private lenders, with Eurobonds getting 60% of Nigeria’s and over 40% of Kenya’s. Thus, external debt increasingly involved more speculative risk. Public bond finance, foreign debt’s most volatile component, rose relative to commercial bank loans and other private credit. Meanwhile, more stable and less onerous official credit has declined in significance. Various factors have made things worse. First, most rich countries have failed to make their promised annual aid disbursements of 0.7% of their gross national income, made more than half a century ago. Worse, actual disbursements have actually declined from 0.54% in 1961 to 0.33% in recent years. Only five nations have consistently met their 0.7% promise. In the five decades since promising, rich economies have failed to deliver US$5.7 trillion in aid! Second, the World Bank and donors have promoted private finance, urging “public-private partnerships” and “blended finance” as seen in the World Bank blogpost, “From billions to trillions: converting billions of official assistance to trillions in total financing” (2016), a call to mobilise private finance to drive global growth. Sustainable development outcomes of such private financing — especially in promoting poverty reduction, equity and health — have been mixed at best. But private finance has nonetheless imposed heavy burdens on government budgets. Third, since the GFC, developed economies have resorted to unconventional monetary policies — “quantitative easing”, with very low or even negative real interest rates. With access to cheap funds, managers seeking higher returns invested lucratively in emerging markets before the recent turnaround. Large investment funds and their collaborators, for example, credit rating agencies, have profitably created new means to get developing countries to float more bonds to raise funds in international capital markets. Policy advice from donors and multilateral development banks (MDBs), rating agencies’ biases, and the lack of an orderly and fair sovereign debt restructuring mechanism, have shaped commercial lending practices. Favouring private market solutions, donors, MDBs and the IMF have discouraged pro-active development initiatives for over four decades. Hence, many developing countries remain primary producers with narrow export bases and volatile earnings. They have urged debilitating reforms, such as arguing that tax cuts are necessary to attract foreign direct investment (FDI). Meanwhile, corporate tax evasion and avoidance have worsened developing countries’ revenue losses. Thus, net revenue has fallen as such reforms fail to generate enough growth and revenue. Credit rating agencies often assess developing countries unfavourably, raising their borrowing costs. Quick to downgrade emerging markets, they make it costlier to get financing, even if economic fundamentals are sound. The absence of orderly and fair debt restructuring mechanisms has not helped. Commercial lenders charge higher interest rates, ostensibly for default risks. But then, they refuse to refinance, restructure or provide relief, regardless of the cause of default. Following the 1970s’ oil price hikes, Western banks, especially US banks, were swimming in liquidity as oil exporters’ dollar reserves swelled. These banks pushed debt, getting developing country governments to borrow at low real interest rates. After the US Federal Reserve began raising interest rates from 1977 to fight inflation, other major central banks followed, raising countries’ debt service burdens. Ensuing economic slowdowns cut commodity exporters’ earnings. In the past, the IMF and World Bank imposed “one-size-fits-all”, “stabilisation” and “structural adjustment” measures, impairing development. Developing countries had to implement severe austerity measures, liberalisation and privatisation. As real incomes declined, progress was set back. With the pandemic, developing countries have seen massive capital outflows, more than in 2008. Meanwhile, surging food, fertiliser and fuel prices are draining developing countries’ foreign exchange earnings and reserves. As the US Fed raises interest rates, capital flight to Wall Street is depreciating other currencies, raising import costs and debt burdens. Thus, many countries need financial help. Debt-distressed countries once again seek support from the Washington-based lenders of last resort. But without enough debt relief, a temporary liquidity crisis threatens to become a debt sustainability and, hence, a solvency crisis, as in the 1980s. Anis Chowdhury, a former professor of economics at the University of Western Sydney, held senior United Nations positions from 2008 to 2015 in New York and Bangkok. Jomo Kwame Sundaram, a former economics professor, was United Nations assistant secretary-general for economic development. He is the recipient of the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/670814

China tells last Indian journalist in nation to leave this month in visa spat

English

(June 12): The last Indian journalist in China has been asked to leave, as Beijing and New Delhi eject each other’s reporters in a tit-for-tat row deepening a rift between the Asian economic powerhouses. Chinese authorities have instructed the Press Trust of India reporter to leave the country this month, according to a person familiar with the matter. His departure will wipe India’s media presence from the world’s second largest economy at a moment of deteriorating ties. Indian media outlets had four reporters based in China earlier this year. The Hindustan Times reporter left over the weekend, while two Indian journalists from public broadcaster Prasar Bharati and The Hindu newspaper were denied visa renewals in China in April.  China’s foreign ministry and India’s Ministry of External Affairs did not reply to requests for comment.  Last month, Chinese Foreign Ministry spokeswoman Mao Ning said there was one Chinese journalist left in India, who was still awaiting renewal of their visa. Earlier, New Delhi rejected visa renewal applications from two journalists from Xinhua news agency and China Central Television.  India’s Foreign Ministry said earlier this month that Chinese reporters had been operating in the South Asian country without any difficulty, but this was not the case for Indian journalists in China. Both countries were in touch over the issue, it added. The visa spat started a few months ago over Indian journalists hiring assistants in China to help with reporting, according to Indian officials familiar with the matter, who asked not to be identified due to the sensitivity of the situation. Beijing imposed measures limiting employment to three individuals at a time who must come from a pool provided by the Chinese authorities, they said. India doesn’t have a cap on hiring. Relations between Beijing and New Delhi have been tense since a deadly brawl on their shared Himalayan frontier in 2020. China has since sought to keep that dispute separate from the overall relationship and focus on trade and economic ties, but India has said relations cannot go back to normal until the border issue is resolved.  The visa rejections come as India hosts the Group of Twenty (G20) and the Chinese-founded Shanghai Cooperation Dialogue meetings this year. Xi is expected to attend the G20 leaders summit in September as China looks to build its diplomatic and political presence globally.  China and the US have also been in a years-long dispute over journalist visas. After the Trump administration designated a handful of Chinese media companies as “foreign missions” and put caps on the number of Chinese journalists in the country, Beijing responded by revoking press credentials for reporters at US media companies.  In 2020, two Australian journalists based in China fled the country as diplomatic tensions worsened between the two nations. The two men were initially banned from leaving and spent five days under consular protection until Australian diplomats could negotiate their departure. That year, Beijing accused Canberra of raiding the homes of Chinese state-media staff and seizing their property.  

https://theedgemalaysia.com/node/666119

Seal Inc shoots up after news on placing shares to Genetec major shareholder Chen

English

KUALA LUMPUR (May 9): Seal Incorporated Bhd jumped to an intraday high of 47 sen, up over 40%, or 14 sen — the highest level since February 2018 — in the morning trading session on Tuesday (May 9), following news that businessman Aaron Chen Khai Voon is taking up a substantial stake in the company via share placement.  As at noon break, trading volume ballooned to 49.69 million, which is nearly 16% of its issued share capital of 311.4 million. The sharp rise in share price added RM35.8 million to its market capitalisation to RM138.6 million.  The emergence of a new major shareholder raises expectations that there might be asset injections in the near future.  Seal said in its bourse filing that the share placement will raise gross proceeds of about RM16.19 million, of which RM15.6 million is being earmarked for the company to expand its business to include renewable energy, for instance engineering, procurement, construction and commissioning (EPCC) for solar and related renewable energy activities. Coincidentally, Chen owns a company called MSR Green Energy Sdn Bhd, which is involved in renewable energy. The firm undertakes EPCC project management and consultancy for solar photovoltaic projects. Chen is also the largest shareholder of Genetec Technology Bhd holding 12.03% stake.   Seal, whose core business is property development, announced on Monday that it would be placing some 62.29 million shares, or 20% stake, to businessman Aaron Chen Khai Voon.  Chen will be the single largest shareholder in Seal holding a 16.67% stake in Seal's enlarged issued share capital after the placement, which is priced at 26 sen per share — a 21% discount to Monday’s closing price of 33 sen.  The placement came shortly after Seal completed a 10% private placement in March, raising RM7.08 million mainly earmarked for working capital.  Seal’s current largest shareholders are Datin Seri Tan Guik Lan with a 14.38% stake, followed by her son Koay Shean Loong with 7.99%.  Following the placement to Chen, Tan’s shareholding will be diluted to 11.98%, while Koay’s stake will be reduced to 6.66%.  Read also: Aaron Chen subscribes to Seal Incorporated’s 20% placement, to emerge as largest shareholder

https://theedgemalaysia.com/node/630371

Stronger improvement in manufacturing conditions in July

English

KUALA LUMPUR (Aug 1): Malaysian manufacturers reported a further improvement in operating conditions at the start of the third quarter of 2022. S&P Global said output volumes returned to growth territory for the first time in seven months amid the strongest rise in new orders since April, albeit with rates of growth subdued. It said firms often attributed stronger demand conditions to improved client confidence. It said that in fact, input price inflation rose at the softest rate since last September as the price of some raw materials fell, notably metals. Improved conditions also lifted business confidence surrounding the 12-month outlook for activity during July with the level of optimism strengthening to a five-month high. The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose from 50.4 in June to 50.6 in July. The latest reading pointed to a marginal improvement in the health of the sector that was nonetheless the strongest reported since April. The headline PMI was buoyed by a renewed rise in production levels during July. Though only slight, the expansion was the first since December 2021. Companies reported that increased new orders helped boost output. That said, some firms commented that raw material prices remained elevated and supply constraints persisted, holding back a stronger recovery. S&P Global said new order inflows increased at a quicker rate in the latest survey period, extending the current period of growth to four months. It said the rate of growth was the strongest since April, albeit only marginal, and was attributed to improved client confidence. On the other hand, new export orders declined for the first time since March and at the quickest pace for ten months amid global supply chain issues and subdued overseas demand. Input costs increased further in July, reflecting higher prices for a range of raw materials and freight costs. The overall rate of inflation eased to the lowest for ten months however as some firms reported lower costs for metals and other commodities. Manufacturers sought to partially pass higher costs to clients by raising output charges. In line with the trend for input prices, factory gate inflation eased to the softest since February. Shortages of raw materials and improved demand conditions led to firms increasing their purchases of raw materials and other inputs for the first time in three months. At the same time, stocks of purchases stagnated as firms utilised increased purchases to fulfil orders amid delays in receiving shipments. Supplier delivery times lengthened at a solid pace in July, though the deterioration was softer than the average seen over the current 32-month period of deterioration to hint at some easing of supply constraints. S&P Global Market Intelligence chief business economist Chris Williamson said business conditions are improving yet remain tough, with firms struggling against headwinds of falling export demand, persistent supply constraints and rising prices. However, he said July saw the best expansion in output so far this year, in part reflecting the gradual revival of manufacturing as the worst of the pandemic impact fades. "Looking at the historical relationship between the PMI and official statistics, the latest reading signalled that industrial production is now increasing gradually after broadly stagnating throughout the first half of 2022, to hint at an encouraging start to economic growth in the third quarter. “A major uncertainty remains the path of global demand, as recession risks have intensified in the US and Europe, which could severely limit any export- derived growth,” he said.

https://theedgemalaysia.com/node/652208

Datasonic clinches contract in Africa worth almost RM1 bil — sources

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KUALA LUMPUR (Jan 18): Main Market-listed technology firm Datasonic Group Bhd has secured a contract, which has an estimated value of close to RM1 billion over 10 years, to provide total turnkey solutions for the land office of a West African nation, according to market sources. “It is a PFI (private finance initiative) project, whereby the African country's government and Datasonic will split the revenue in a ratio. The contract value for Datasonic’s portion is projected to be around RM100 million every year,” a source told The Edge. “Upon the expiry of the initial term (10 years), the agreement shall automatically be renewed for a further term of five years, subject to the revision on profit-sharing formula,” he said It is learnt that the African country and Datasonic have agreed that the prevailing rate chargeable on a successful land title issuance under the e-land system would be €1,000 (or around RM4,672). In other words, Datasonic will be collecting €400 for every transaction made. According to sources, the African country guarantees a minimum number of land title migration and issuance during the contract period. Another source said the African nation has signed an agreement and the official announcement shall be made by Datasonic soon — possibly as early as Wednesday (Jan 18). It is understood that Datasonic, being a security-based information and communications technology (ICT) solutions provider, will build the domain name system, as well as the IT infrastructure and facility for the coastal country. “Currently, the West African country’s land office is still using the old filing system which they inherited from the French colonial era. Their system is outdated and quite messy at the moment, so they have seen a lot of land title dispute cases,” the source highlighted. “Datasonic will now be providing an identity management system to their land office by using biometrics technology, including face recognition. If this project is successful, they might replicate it in other African countries,” the source added. However, the sources acknowledged that there are always concerns about project risks abroad, particularly in developing nations. Read also: Datasonic inks deal with Republic of Guinea on digitisation, land management matters

https://theedgemalaysia.com/node/641543

Maybank revises midterm ROE target down to 11%-12% by 2025, from 13%-15%

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KUALA LUMPUR (Oct 27): Malayan Banking Bhd (Maybank) has revised its return on equity (ROE) target down to 11%-12% by 2025 in its latest midterm strategy, dubbed M25+, from 13%-15% previously, on expectations of higher investment and growing uncertainties in global economy. "[The revision is] primarily premised on the environment that we see globally. We mentioned about post-pandemic, but we also see the geopolitical uncertainties globally," said Maybank's group president and chief executive officer Datuk Khairussaleh Ramli at a media briefing after announcing M25+ on Thursday (Oct 27). "That's why we believe that in the next few years we think that an ROE of 11%-12% will be more realistic, [also] given the investment that we are also making. "The key thing to highlight is that despite the headwinds and challenges, we are here to still invest for the future and differentiate ourselves. To be a true regional bank, we think that it is the right time to do it, not wait until things are better," he added. For the first half of the financial year ending Dec 31, 2022 (1HFY22), Maybank recorded an ROE of 9.3%, up from 8.1% for FY20. Khairussaleh said Maybank will be investing RM3.5 billion-RM4.5 billion in technology and talent over the next three to five years to beef up the group's capabilities for long-term growth. "Next couple of years, the cost-to-income (CTI) ratio will pick up, but over time we expect value to be created, and hence will reduce our CTI ratio. "Having said that, there is also another element that we are focusing on, in terms of having a more sustainable asset quality as well, we believe we got room to improve our asset quality and hence, that value can also contribute to ROE," he said. The group's CTI ratio stood at 45.3% as at 1HFY22. Khairussaleh said under M25+, the group is aiming to maintain its CTI ratio at about 45%, compared to the target for it to fall below or equal to 45% in the original M25 strategy, which was formulated when the bank was under his predecessor Tan Sri Abdul Farid Alias' leadership. Under the latest strategy, Maybank, the country's largest bank by asset size, also aims to achieve an average loan growth of 7% between 2022 and 2025, up from 3% between 2017 and 2021. There was no loan growth target in the previous M25 plan, which Maybank unveiled in May last year. In the previous M25 plan, the group also aimed for earnings per share (EPS) of more than 100 sen and delivering a dividend payout ratio of between 40% and 60% on a net cash basis. At the briefing on Thursday, Khairussaleh said ROE is the better metric to measure a bank's performance. "We believe that ROE would be the most appropriate measurement, from an EPS point of view, it is going to be difficult to pin a point, for example, we have been giving DRP (dividend reinvestment plan), means we are giving out new shares, but that doesn't mean we can't improve the profitability from an ROE point of view," he said. Shares of Maybank closed two sen or 0.23% lower at RM8.68 on Thursday, giving it a market capitalisation of RM104.63 billion.

https://theedgemalaysia.com/node/641925

Special Report: Building retired civil servants’ nest eggs

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This article first appeared in The Edge Malaysia Weekly on October 31, 2022 - November 6, 2022 THE tide is turning for private assets. The macroeconomic challenges currently roiling the public equity markets, including high inflation, rising interest rates and a slowing economy, are forcing many investors to steer their portfolios to the private markets. This includes long-term investors such as Kumpulan Wang Persaraan (Diperbadankan) (KWAP). The public pension fund is doubling down on its investments in the private markets by looking to private equity (PE), which includes venture capital (VC) as well as real estate and infrastructure. And 41-year-old Hazman Hilmi Sallahuddin has been put in charge of pivoting the fund towards investing in these non-liquid assets. Hazman became chief investment officer (CIO) of KWAP on Jan 3. Prior to joining KWAP, he was the managing director of Damansara Assets Sdn Bhd — a wholly-owned real estate subsidiary of Johor Corp — and also worked as the CEO of Amal, a unit of Malaysia Airlines Bhd that is dedicated to offering flights specifically for haj and umrah pilgrims. Hazman also spent over 12 years at Khazanah Nasional Bhd in various roles, including as the senior vice-president of Khazanah Europe Investment Ltd based in London, and vice-president of the Khazanah Turkey regional office based in Istanbul. He acknowledges that his multi-sector experience in PE and VC investments played a large part in landing him the CIO role in KWAP that had been vacated for more than a year with the departure of Azmeen Adnan in October 2020. “If you look at pension funds, they typically would hire someone [with] public markets background. However, I was brought in because of my PE experience to help KWAP execute [the pivot],” he tells The Edge in his first media interview since joining the pension fund. Hazman’s appointment comes at a time when KWAP, under the leadership of Nik Amlizan Mohamed, is poised to take it to the next level of growth. The fund unveiled in August Teras 5, a three-year programme intended to grow its gross fund size of RM159 billion at end-2021 by more than a quarter to RM200 billion by end-2025, as well as to have a more robust strategic asset allocation (SAA) model. As part of the new strategic plan, KWAP expects to double the proportion of private market investments in its portfolio to 20% over the next three years. “Specifically, within the private market portfolio, we intend to grow it from 10% to 20% of assets under management, comprising PE 8%, infrastructure 3% and real estate 9%,” he says, adding that the fund achieved blended returns from the private market in the high teens last year. The remaining 80% of its total assets are currently focused on riskier public assets like equities. In that vein, KWAP is planning to launch a catalytic fund specifically focused on providing funding to VC and tech companies in Malaysia. Hazman declined to disclose the fund size, except to say that it will be “substantial” for the VC market. “It is still subject to internal approval. While it (the catalytic fund) is small as a percentage to our asset size, it would be substantial for the VC world. We expect to get the approval this year, and the best-case scenario would be to launch it by year end but, realistically, in the first quarter of next year,” he says. KWAP was set up in 2007 to specifically help ease the government’s pension liability, with the aim to ultimately take over the task of paying civil service pensioners using KWAP funds. Asked what kind of fund size would make KWAP ready to take up the civil servants’ pension liability in its entirety, Hazman says, “That is something that we need to review every now and then. It depends on the size of the public service, the number of employees and others. It is not an easy task to come out with [an exact] amount. “[In the meantime,] our job is to grow the fund through [government and employer] contributions and investment returns. We have quadrupled our fund size since 2007 from RM40 billion to RM160 billion at end-2021.” The government had tapped about RM5 billion per year from KWAP to help pay the civil servants’ pension bill of about RM27 billion per year in 2018, 2020 and 2021. KWAP data for 2019 shows that 709,794 government retirees received their pensions. Currently, only the 2019 annual report is available publicly as the 2020 and 2021 annual reports are pending being tabled in parliament. “It is about time for the government to tap some of our funds. It is good that KWAP is assisting the government, so that they don’t have to use all their revenues to pay pensions. It goes back to the purpose of KWAP being set up — it is to assist the government in paying the pension bill,” he adds. “Moving forward, we still need to continue to grow [our fund size], but with the 5%-6% long-term time-weighted rate of return (TWRR), [the question we ask ourselves] is whether that is sufficient. Because people are living longer and have a higher income, the pension liability, of course, also increases. “So we at KWAP asked ourselves, ‘What can we do?’ One way is to get better returns. That’s why last year we got approval to increase our asset allocation for overseas investments from the current 20% to 30%. But the increase will be gradual over the next three years,” Hazman notes. Currently domestic investments account for 80% of the fund’s portfolio, with the remaining 20% being overseas investments. KWAP is right now in over 40 countries, both in direct and indirect investments. “If you look at specific asset classes, we try to make it flexible because it depends on the opportunities that we have. For example, our PE investments are more overseas than in Malaysia. Having said that, we want to increase our PE exposure in Malaysia but the local PE ecosystem is still a developing one. Thus, we are developing a catalytic programme to invest more in the VC and tech companies here,” says Hazman. Within its private market portfolio, the pension fund is invested in about 60 PE and VC funds to date. “Historically, our strategy is sector agnostic in terms of our investments in PE and VC funds. Moving forward, part of the portfolio diversification that we are trying to do is to have thematic investing. Currently, we are looking to explore four verticals: Fintech, food security, energy transition such as green renewables, and healthcare/life science/silver economy,” he says. Still, KWAP is not alone in its pivot towards the private markets. Funds such as Permodalan Nasional Bhd, Khazanah Nasional Bhd and Ekuiti Nasional Bhd have also diversified their portfolios with investments in private assets. “For Malaysia, PE valuation is not a concern because the industry is still in the nascent stage. If you compare us with Singapore or Indonesia, the valuation [of the PE firms there] is much higher. Even [Malaysian investors] go there. If you look at the tech ecosystem, Singapore and Indonesia are way more advanced [than Malaysia]. They have funding coming from developed markets such as the US, and big names in the VC industry such as Sequoia Capital are already in Singapore and Indonesia,” says Hazman. “In Malaysia, we are sort of in that trap because we are still new, and also it is a supply-demand kind of situation whereby because of a lack of capital coming in, there are not as many start-ups coming up yet. Someone needs to go in and invest, and then more companies will flourish. “This is what happened in Singapore and Indonesia. Because of the mature ecosystem, you will see more and more companies coming up. That is what we are trying to do in Malaysia. [With the catalytic fund,] we are trying to address that gap in the market by providing that capital,” he adds. Nevertheless, the gestation period to profitability in a typical start-up is long. Sometimes even a path to profitability is not clearly visible. Hazman says the pension fund is well aware of this. “That’s why as a long-term investor, we look at a five- to 10-year investment horizon. It is part of the game. We come in early seeing their (start-ups) growth potential and they make [a] profit later. And part of our exit strategy is either an initial public offering or a strategic sale, where someone else comes in and buys our stake. We are open to that. “In fact there are a few good ones in our pipeline, of which some are profitable now, but only at this level. When we look at VC and start-up companies, they can be profitable but if they want to grow, they have to go through that J-curve. They have to go through some loss period and then they will come back [to profitability],” he notes. Hazman cites drone service provider Aerodyne Group as one of the six VC direct companies KWAP has invested in that is going through the J-curve. KWAP, which initially invested in the group back in 2020, had participated in Aerodyne’s latest bridging round, which raised US$30 million (RM142 million). “Our mandate allows us to invest directly in Series B [funding] onwards,” he says, noting that KWAP is no longer a shareholder of Uber Technologies Inc having exited the ride-hailing service start-up when it went public in 2019. In 2016, KWAP had invested US$30 million in Uber’s G series preferred stock. While the pension fund wants to do more direct investments, Hazman says KWAP is not going to stop investing in PE and VC funds as these funds have the advantage of going into spaces that it is not familiar with. In terms of KWAP’s investments in real estate, he says it is balanced between Malaysia and overseas while that for infrastructure is mainly overseas. “For real estate, we have invested outside Malaysia, mainly in the UK and Australia, and we are trying to increase our exposure in Europe. We have not invested in the US yet, but we are looking at it. “Traditionally, we have investments in offices and purpose-built student accommodation. Moving forward, we would like to invest more in that space, mainly logistics, data centre and student or worker or senior living accommodation,” he adds. As for its investments in infrastructure, KWAP is looking at railroads, renewables and highways. “For direct investments in infrastructure, we have invested in a solar company in the UK. We have also invested in 12 infrastructure PE funds, which are part of the 60 [PE and VC funds]. We are now assessing two green companies in Malaysia.” At the height of the Covid-19 pandemic, KWAP still managed to report a record net investment income of RM10 billion in the financial year ended Dec 31, 2021, up from some RM8 billion in 2020 and RM6.67 billion in 2019. Under Teras 5, KWAP is aiming to achieve a higher return target of 7% per year from its investments by 2025, from the current 5% to 6% per year. But for this year, it is expecting a TWRR of between 5% and 6%. “Based on the approved 2025 SAA, the allocation to public equity is 39%, fixed income 39%, private equity 8%, infrastructure 3%, real estate 9% and the rest in cash. We believe that this will give us the optimal mix for us to achieve the 7% returns while staying within the risk appetite that the KWAP board has set,” says Hazman. Hazman says KWAP is one of the early movers in environmental, social and governance (ESG) investing, starting back in 2009. “We started investing based on ESG factors in 2009, and in 2016 we formed a responsible investing team that looks at ESG. Within KWAP, there is an ESG guideline at the enterprise level, and within investments, we have ESG guidelines for each asset class. We have ESG guidelines for public equity, PE, fixed income and real estate. We are quite advanced in that sense. “Having said that, in terms of ESG-focused investments, it is still a very small percentage of our total portfolio. We haven’t made a commitment of how much but we want to increase that further. However, if you look at Bursa Malaysia, only about 8% of the companies are ESG-compliant,” he says. Nevertheless, KWAP has started to focus on impact investing, that is, investing in funds that have a positive social impact such as renewables, education and healthcare. “When we talk about impact, people always say, ‘But you are compromising your returns’. I suppose it was true at the beginning, but things are changing. That is no longer accurate. We have seen more and more PE funds coming up with impact funds and these impact funds are making good returns. That’s why, after three years of observing this, we decided to make an investment in one impact fund this year,” Hazman says.   Over the next three years, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) plans to allocate more capital to invest in overseas assets as part of its Teras 5 transformation plan to look beyond its current borders for growth. But the pension fund is in no rush. While the current 20% of the fund’s portfolio of stocks, bonds and alternative investments that are overseas may seem small, it now looks like a blessing in disguise amid the global economic uncertainty. “In a way we are grateful that we are currently 80% domestic because the Malaysian and Asean economies have been quite resilient to the shock. Our in-house view is that we do not expect a recession next year for Malaysia and most Asean countries because we still have strong demand and fundamentals, albeit the growth will be smaller,” KWAP chief investment officer (CIO) Hazman Hilmi Sallahuddin tells The Edge in an interview. “(However,) the US is already in a technical recession, while the UK and Europe might be in a recession. So we are quite bullish on Malaysia and this region. Our in-house view is that we think a recovery will kick in by the end of next year or early 2024. “That is why, as we increase our global exposure from 20% to 30% (by 2025), we want to do it gradually and not too rampantly, increasing by 2% to 3% every year. Our diversification abroad will be done gradually to ensure minimal disruption to our investments and adverse impact on the market. We will go in as and when we see the opportunity to go in. (Today,) the Malaysian market is attractive relative to the market in the US,” he notes. The additional 10% of its asset allocation to foreign exposure translates into up to RM20 billion in additional investments for the next three years as KWAP hopes to grow its gross fund size to RM200 billion by 2025. In comparison, overseas assets accounted for 37% of the Employees Provident Fund’s total assets of RM1.01 trillion as at Dec 31, 2021, while overseas investments made up only 17% of Permodalan Nasional Bhd’s RM336.7 billion assets under management (AUM) at end-2021. Hazman joined KWAP as CIO in January, at a time when global capital markets were volatile. Additionally, the stubbornly high inflation and rising interest rates will continue to weigh heavily on overall sentiment in the stock markets as they affect central banks’ monetary policy decisions and global economic growth. Hazman is unfazed and instead regards the situation as presenting further opportunities for the pension fund. “Last year, when inflation was rising and, looking at the market, we had expected the central bank would increase the interest rate. We took a proactive approach [by] reducing our position in tech companies and those that would be affected by the higher interest rates. “In a way, we acted much earlier, before the market reacted. Of course, we cannot exit everything, but at least we moved faster,” he says. “This year, knowing that next year could potentially be a recession globally, we have taken the same step. We rebalanced our portfolio and moved from growth to value and defensive stocks such as banking, healthcare and consumer discretionary. “Again, we are guided by our strategic asset allocation (SAA), which is a long-term target, but in the short term, to address this volatility, we also have our tactical asset allocation and also the tolerance corridor to provide that flexibility,” he adds. Asked whether it is an expensive time to look at international markets given the weaker ringgit, Hazman says: “Yes, in terms of valuation, some currencies such as the US dollar and the Singapore dollar are relatively more expensive than the ringgit year to date (YTD). However, other currencies, particularly the euro, the pound sterling, the Australian dollar and the yen have weakened YTD against the ringgit.” “[Nevertheless] we do not treat foreign exchange (forex) as an asset class, nor do we think investors can perfectly time forex movements. Fundamentally, for any new investment, the return, risk and liquidity will always be the key drivers that we consider before we take that leap in view of our obligation to assist the government in pension payments, which are denominated in the local currency. We have already taken into account the currency risk as part of our return evaluation,” he adds. The strategy has borne fruit for the fund, which had AUM of RM159 billion at end-2021. Last year, KWAP achieved a historical high net income of RM10 billion despite the weaknesses in the global and domestic markets. This year, the fund is looking to achieve a long-term time-weighted rate of return of between 5% and 6%. That is not too bad considering how the broader market has been performing. The FBM KLCI has been battered down in the past eight years. In six of those years, the 30-stock index was in the red. The benchmark index has fallen more than 7% YTD, in line with the weakness of the global market. Over in the US, the Dow Jones Industrial Average has declined more than 9% year on year, while the S&P 500 and Nasdaq Composite Index, which are largely made up of technology stocks, dropped 15.7% and 28.6% respectively over the last one year. “The SAA is being reviewed as and when required but on average, we do it every two to three years, which is robust enough to be applied in the market,” says Hazman. Still, he points out that at the end of the day, KWAP as a pension fund is a long-term investor. “We should not look at one year or a short horizon, but long term. We need to react but not overreact, which is why we are guided by the SAA.” Currently, almost 90% of its AUM is in traditional assets — fixed income and stock market, while the remaining 10% is in alternative investments including private equity, real estate and infrastructure.   Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/644605

Axiata shareholders green-light Celcom-Digi merger

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KUALA LUMPUR (Nov 18): Shareholders of Axiata Group Bhd approved the proposed merger of its Malaysian cellular arm Celcom Axiata Bhd with Norwegian Telenor Group’s unit Digi.Com Bhd, in an extraordinary general meeting (EGM) held on Friday morning (Nov 18). “As shareholders of Axiata have given the nod, the merger moves closer to completion, having previously cleared the Malaysian Communications and Multimedia Commission (MCMC), the Securities Commission Malaysia (SC), and Bursa Malaysia prior to the EGM,” said Axiata in a statement on Friday. Meanwhile, Digi’s EGM for the proposed merger is scheduled for 2pm on Friday. The proposed merger entails Axiata transfering 100% of its stake in Celcom Axiata to Digi for RM17.76 billion, which will be satisfied via a combination of 3.96 billion new Digi shares issued at RM4.06 each and RM1.69 billion cash. The proposed merger is expected to be completed by year end. At completion, Axiata and Telenor will hold equal ownership of 33.1% each in the newly-merged company. Read also: After Axiata, Digi also obtains shareholders’ nod for merger plan Bursa Malaysia approves listing, quotation of Digi's 3.96 billion new shares for Celcom-Digi merger 

https://theedgemalaysia.com/node/642534

BEST CR Initiatives: BELOW RM10 BILLION MARKET CAPITALISATION: KPJ Healthcare Bhd - Caring for lives sustainably

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This article first appeared in The Edge Malaysia Weekly on November 7, 2022 - November 13, 2022 When KPJ Healthcare Bhd turned 40 in 2021, the healthcare provider commemorated the event by doing what it does best — caring for lives amid ongoing Covid-19 challenges while championing its sustainability agenda and balancing its economic ambitions with social and environmental considerations. That probably won KPJ points with the panel of judges for the corporate responsibility (CR) portion of The Edge Billion Ringgit Club awards, bagging the company the accolade of Best CR Initiatives: Below RM10 Billion Market Capitalisation. As public hospitals buckled under the volume of positive Covid-19 cases during the height of the pandemic in 2020, KPJ — in partnership with the Ministry of Health — offered more than 100 types of services and procedures to MoH-decanted non-Covid-19 patients, emerging as the single largest private services provider to assist the government in treating such cases. For perspective, KPJ has nine sustainability goals that guide its journey: adherence to regulatory requirements, anti-corruption, responsible products and services, anti-competitive behaviour, energy and resources management, community investment, safety and health, workforce inclusion and diversity as well as human resources management. Acknowledging the importance of sustainability to KPJ’s long-term agenda, the group has shifted its focus to establishing a low-carbon health ecosystem throughout its operations and is in the process of building more green-building hospitals, it says in its 2021 annual report. KPJ’s digital transformation journey has also seen the group installing a new core IT system for the entire organisation — Hospital Information System (HIS) — not just to enhance the doctor-patient relationship, but also to provide a wide range of solutions from the predictive, preventive, curative, promotive and rehabilitative aspects. KPJ’s new HIS was slated to be rolled out at its new KPJ Damansara Specialist Hospital 2 by the third quarter. On the environmental front, KPJ saw to the reduction of hazardous waste by 4.2% in 2021 from the year before, while recording 99 cu m of water usage per employee (hitting its target of not more than 111 cu m per employee) and achieving its target of not exceeding 27.69kWh psf for electricity consumption. The top three institutions that garnered the highest annual electricity savings last year were KPJ Penang Specialist Hospital (RM382,499.67 a year), KPJ Klang Specialist Hospital (RM327,938.69) and KPJ Tawakkal Specialist Hospital (RM349,747.68). KPJ’s social initiatives over the year saw to growth opportunities for the group’s employees and KPJ University College (KPJUC) students, while continuing relief efforts via the group’s flagship Klinik Wakaf An-Nur (KWAN clinics for the underprivileged and B40 groups at affordable rates), mobile clinics and Briged Waqaf volunteers. Activities conducted within these programmes included basic healthcare screening, public health talks and campaigns to advocate healthy lifestyles and good hygiene where the group invested a total of RM9.2 million in its community programmes over the year. More than 1.7 million patients have been treated in KWAN clinics since the programme was first launched in 1998. As at 2021, KPJ had 44,005 KWAN clinic patients and 12,286 mobile clinic patients. Briged Waqaf was formed as a voluntary group in 2007 by KPJ’s parent company Johor Corp through Waqaf An-Nur Corp Bhd (WANCorp). Spearheaded by KPJ’s employees, Briged Waqaf’s disaster relief missions include the provision of treatments and distribution of medicines to survivors of disasters such as the floods that devastated parts of the Klang Valley last year. Briged Waqaf had in the past participated in humanitarian relief efforts such as the earthquake in Padang, West Sumatra, in 2009, Kedah flood in 2010 and Kelantan flood in 2014 and 2015. KPJUC, which is an established provider of nursing diplomas, also has a scholarship programme that disbursed in-kind financial aid to 464 students in 2021, with an allocation of RM1.7 million. The university college also sponsored 90 staff members and students pursuing the post-basic nursing programme. The healthcare provider’s economic highlights for 2021 included the opening of its second Ambulatory Care Centre in Bandar Kinrara, Puchong, in Selangor, as well as having a further six of its hospitals assessed and recognised by Sirim SCM, bringing the total to nine hospitals. “No matter what the state of the economy is, our practices remain grounded in deep-rooted principles of improving the quality of life of our patients and communities. Our unrelenting focus on providing a strong and robust continuum of care remains a topmost priority as we believe this is the best way to create long-term sustainable value. “To realise our goals, we proactively assess the evolution of technology and societal values and execute strategies that will give us the competitive edge in caring for lives,” KPJ says. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/621326

Mega First 1Q profit jumps 11% on higher contribution from renewable, packaging divisions

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KUALA LUMPUR (May 25): Mega First Corporation Bhd (MFCB)’s net profit in the first quarter ended March 31 (1QFY22) jumped by 10.9% to RM81.34 million from RM73.34 million a year earlier, underpinned by higher profit contribution from the Renewable Energy and Packaging divisions. Earnings per share rose to 8.6 sen from 7.74 sen. In a Bursa Malaysia filing on Wednesday (May 25), the group’s quarterly revenue rose by 40.61% to RM272.38 million compared with RM193.72 million, supported by higher sales contribution across all of its core divisions. On a quarterly basis, net profit tumbled by 61.78% from RM212.81 million reported in the immediate preceding quarter (4QFY21) while revenue slid by 2.93% from RM280.62 million. Moving forward, the group expects to deliver another year of healthy earnings growth in 2022, driven primarily by expected improved earnings performance by the Renewable Energy Division and the Packaging Division, and a sustainable turnaround of the Group’s joint venture company, Edenor Group.   “The ongoing global supply chain disruptions, escalating inflationary cost pressures, rapidly rising interest rate environment and tight labour market are several key challenges the Group will need to manage in the coming year,” it said. Meanwhile on its packaging division, the group shared that the impact of higher raw material costs and other inflationary pressures remain a concern. However, it is optimistic of recovering some lost margin through production efficiency gains on higher volumes. Earlier on Wednesday, the group which builds, owns and operates renewable energy (RE) plants, extended an invitation to the public to its results briefing for 1QFY22, in what is probably the first time that a listed company in Malaysia has done so. Shares in MFCB ended unchanged at RM3.74, valuing the company at RM3.7 billion.

https://theedgemalaysia.com/node/600949

PNB announces five sen income distribution for ASB unitholders

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KUALA LUMPUR (Dec 23): Permodalan Nasional Bhd (PNB) has announced a total distribution of five sen per unit for Amanah Saham Bumiputera (ASB) unitholders, comprising a 4.25 sen distribution and a 0.75 sen bonus for the year ending Dec 31, 2021. The income distribution for the year is higher than last year's total distribution of 4.25 sen per unit, comprising a 3.5 sen distribution and a 0.75 sen bonus.  The total payout for the income distribution will be RM8.9 billion, benefitting 10.4 million unitholders, bringing the fund's total cumulative income distribution and bonus to RM168.5 billion to date since its inception in 1990. PNB group chairman Tun Arifin Zakaria said the fund's continuous efforts in diversifying and strengthening its portfolio had yielded positive results. “The stronger performance of our global equity investments has managed to cushion the impact of the challenging domestic market.  “This exemplifies the importance of a well-diversified portfolio in managing portfolio risks and delivering sustainable returns,” he added.  Notably, PNB highlighted that ASB’s allocation for international investments increased from 5.9% in 2020 to 8.2% this year.  International public equities contributed 30.7% of gross income in 2021, compared with 24.2% last year, it added.  “The total rate of five sen per unit translates into a spread of 315 basis points over the 12-month fixed deposit rate, which currently stands at 1.85%,” Tun Arifin elaborated.  Meanwhile, PNB president and chief executive Ahmad Zulqarnain Onn shared that despite the challenging environment, PNB demonstrated its resilience in navigating the uncertainties of 2021, posting a commendable financial performance.  “For the first 11 months of the year, PNB’s total assets under management increased by 4.9% to RM338.4 billion, reflecting continued trust by its unitholders.  “Strengthening its Focus 4 strategy, PNB this year made significant progress in three focus areas, namely creating value in the performance of its domestic portfolio, continuing its diversification efforts into global markets through multiple asset classes, and accelerating its digital offerings,” Zulqarnain shared.  According to PNB, ASB’s number of accounts increased by almost 200,000 to 10.4 million accounts, while units in circulation rose by 7.4 billion or 4.3% to 181.2 billion units. Read also: PNB not moving away from domestic market, says CEO PNB’s Merdeka 118 tower 100% owned by PNB, not ASB unitholders — Zulqarnain

https://theedgemalaysia.com/node/673086

Hextar Tech up 6% on land disposal, bonus issue plans

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KUALA LUMPUR (June 30): Shares in Hextar Technologies Solutions Bhd [HexTech] (formerly known as Complete Logistic Services Berhad) rose 6.03% in thin trade at mid-morning on Friday (June 30) after the company said it was selling land to entities that are partly owned by its controlling shareholder Datuk Eddie Ong. At 10.41am, the stock was up RM1.58 to RM27.80 with 18,800 shares traded. On Wednesday (June 28), HexTech also proposed a 30-for-one bonus issue that will enlarge its share capital to 3.99 billion shares. The proposed land sales will enable HexTech to raise RM78.3 million cash. It has no plan for dividend payment. HexTech said in the filing with Bursa Malaysia that it will use most of the proceeds for expansion of its technology businesses (RM68 million) and working capital (RM8.71 million) within the next two years. Meanwhile, one of the land buyers, SWS Capital Bhd, in which Ong also holds a 13.07% stake, announced it will diversify into the property development business and will change its name to Hextar Homes Bhd. The parcels of tracts that SWS Capital is purchasing are in Nilai, Pasir Gudang and Klang, including a parcel of leasehold industrial land measuring 130,674 sq ft in Pasir Gudang and a 104,539 sq ft of leasehold vacant land in Klang, plus five adjoining parcels of freehold industrial land in Bandar Nilai Utama, Negeri Sembilan. In total, SWS Capital will fork out RM61.61 million cash for the land deals. To fund the land purchase, SWS is proposing a renounceable rights issue of up to 2.38 billion new ordinary shares at an issue price of 12 sen per right share, on the basis of six rights shares for every one existing share. SWS said the proposed rights issue has a minimum target of raising RM180 million. Another buyer is Hextar Holdings Sdn Bhd, which is taking over HexTech’s wholly-owned unit Channel Legion Sdn Bhd (CLSB) that owns land in Pulau Indah, Port Klang. Hextar Holdings is paying RM16.7 million to take over CLSB. Hextar Holdings is Ong’s investment vehicle that holds stakes in several public-listed companies such as a 62.53% stake in Hextar Industries Bhd, 58.01% in Hextar Global Bhd and 20.16% in Pekat Group Bhd. Read also: Hextar Tech sells land to firms linked to shareholder Eddie Ong to raise RM78.3 mil cash

https://theedgemalaysia.com/node/613454

Cover Story: Plugging the logistics gap

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This article first appeared in Digital Edge, The Edge Malaysia Weekly on March 28, 2022 - April 3, 2022 In 2006, brothers Ong Chin Keong and Ong Chin Kian started Transcargo Worldwide (M) Sdn Bhd to provide freight forwarding services in Malaysia. They facilitated shipments for courier and e-commerce companies, whether it was by land, sea or air transport. Over their decade of running the company, the brothers have seen the content of their freight change with the rise of e-commerce. “At least 15 years ago, e-commerce was still not in the picture. During that time, we shipped mostly semiconductors and electronics. We’re still shipping that now. But in addition, we have a lot of e-commerce orders now,” says Chin Keong.  “Malaysians buy a lot of products from overseas via platforms like Taobao, Alibaba and Amazon. So, we can see a lot of imports, especially from China. We do not have enough capacity [to handle the demand]. That’s why you notice new cargo airlines emerging now.” E-commerce exports from Malaysia used to be dismal, they add. But that changed after e-commerce companies such as Zalora made Malaysia their regional e-fulfilment hub.  “Suddenly, we have so much cargo to export. There is also a lot of demand from West to East Malaysia from the likes of Shopee and Lazada. The tonnage can be more than 100 tonnes a day. This has changed the way the air cargo industry works,” says Chin Keong. The brothers’ experience is a reflection of the overall rise in demand for e-commerce in recent years, which shot up dramatically during the Covid-19 pandemic when people were stuck at home. In fact, the e-Conomy SEA 2021 report by Google, Temasek and Bain & Co found that Malaysia’s internet sector gross merchandise value (GMV) was expected to reach US$21 billion (RM88.47 billion) — a 47% year-on-year surge from the previous year — in 2021, which can mainly be attributed to a 68% growth in e-commerce. By 2025, the e-commerce GMV is expected to grow another 8% to US$19 billion.  Transport Minister Datuk Seri Dr Wee Ka Siong has said that the freight and logistics market is projected to grow to more than US$55 billion by 2026 in Malaysia, with e-commerce being the significant driver.  The rising demand for e-commerce, however, has also strained the existing logistics infrastructure. It is a global problem. During the pandemic, videos of warehouses being overwhelmed by parcels and news of workers protesting their low pay despite a heavier workload went viral.  The spread of the coronavirus further hamstrung the global supply chain as the number of workers was reduced, resulting in port congestion and raw material shortages.  While the Covid-19 factor might be temporary, it has exposed gaps in the logistics industry that have to be filled in order to meet the rising demand for e-commerce, industry observers say. And it’s not just a problem for last-mile deliveries.  “While it’s true that the downstream segment was initially struggling to cope with the sheer volume [of deliveries], the whole value chain is highly interconnected. It is not just a bottleneck at the point of delivery but rather, it extends across the whole value chain,” says Cheong Yen Li, director of deals strategy at PwC Malaysia.  “The pandemic was purely a catalyst for growth, and e-commerce volume is expected to continue growing even post-pandemic. Therefore, it is not a temporary problem and more structural changes will be required.” Dealing with the lack of manpower in a labour-intensive industry is a major challenge in Malaysia, say various interviewees. Other countries are managing this shortage by investing in automation and robots, but in Malaysia, the relatively high cost of installing technology is a hurdle.  As e-commerce becomes more mature, the logistics industry also needs to invest in tech-enabled processes that are more complex, accurate and meet the demand for speedy deliveries. Nowadays, people want next- or even same-day delivery of e-commerce orders, much as they do with food deliveries. That’s something that Joe Khoo, co-founder and CEO of e-commerce fulfilment start-up iStore iSend, personally experienced since starting the company in 2009. In e-commerce, people were initially selling goods out of their houses but now, they are storing huge inventories in proper warehouses. With the growth in e-commerce, demand for sophisticated logistics infrastructure has spiked.  “When we first started, logistics for e-commerce was not a sexy business. The perception was that logistics was a very manual and dirty blue-collar work for people who didn’t graduate from university. But it has changed a lot since the boom of e-commerce,” says Khoo.  It’s also because of the pandemic that people began to notice the logistics industry, especially the last-mile delivery riders. But the supply chain is longer than that. There is the warehouse that the riders pick up parcels from, which is the space in which iStore iSend operates. The number of players involved will be even more if it involves cross-border commerce. “For the whole thing to work seamlessly, the whole industry must improve,” says Khoo.  Watch videos of some warehouses in countries like South Korea, the US and Germany, and you will see automated guided vehicles (AGVs) following workers around the warehouse as they pick e-commerce orders, robotic arms directed by smart cameras sorting parcels and conveyor belts transporting the parcels around the warehouse.  Some of these AGVs can be seen in Malaysia. For instance, MR DIY’s e-commerce warehouse utilises them to send the products to packers, while Lazada and Ninja Van have conveyor belts running through their warehouses. Last-mile delivery players are using analytics and software to plot the most efficient delivery routes, while e-commerce fulfilment companies have software that allows merchants to have a real-time view of their inventory, among other things.  But the use of technology, especially automation and robotics in warehouses, is still not as common in Malaysia as overseas, say the interviewees. The high cost of adoption as compared to the affordable labour cost is a major factor.  This is especially true in the last-mile segment, where thin margins and high competition mean the players have to focus on preserving their profits.  “We see a lot of automation in countries where their cost of labour is very high. The math works out for them. But for the last-mile delivery players here, how do we expect them to compete with the rest and still invest in technology? I think that’s where the business model breaks down,” says iStore iSend’s Khoo.  “Automation only works if you have a huge volume. But you can’t do that unless you have enough to invest in technology, and the return-on-investment period might be too long if your profit margins are thin. It becomes a vicious cycle.” iStore iSend, for instance, utilises conveyer belts in its warehouses. “The more heavy-duty stuff like robots might only be introduced at a later stage when there’s bigger volume or when labour cost has gone up so much that we have to look into it,” says Tommy Yong, co-founder of iStore iSend.  With more players entering the market promising even lower delivery rates, the competition will become fiercer. But businesses are looking into technology solutions now, as there is inflationary pressure on labour wages and a shortage of workers. Xteven Teoh, founder and managing director of XTS Technologies Sdn Bhd, can attest to that, as queries and orders from logistics companies for its warehouse automation solutions have increased in the past year. Many are interested in installing conveyor and dynamic weighing scales (DWS) systems for the sorting line. “The DWS and sortation system automatically reads the barcode on the goods and sorts it accordingly. Without it, operators have to manually scan the barcode and sort the goods,” says Teoh.  He has also assisted companies to set up a warehouse management system (WMS) so that the process of storage and packing can be more efficient and accurate. This is complemented by the Automated Storage and Retrieval System (ASRS) and Autonomous Mobile Robot (AMR) forklift, which can replace humans to do palletising, picking and checking.  “All logistics players need to have a WMS at the very least instead of manually doing the stock count. Secondly, they should do labelling in the warehouse and thirdly, they should consider ASRS,” says Teoh.  Many logistics players are also hesitant because they are unsure which technology to implement and they are unwilling to change their current way of operation, he adds.  “We will study and analyse the whole process and identify which areas need to be improved or automated, and which technologies should be implemented. The investment can be less than RM1 million.” The importance of software such as a WMS cannot be overemphasised, the interviewees stress. Transcargo, for instance, uses in-house software that links its customers to the airline and shipping lines and allows them to see their inventory and liaise with Transcargo for documentation needs. Malaysia is years behind China in digitalising the supply chain, says Transcargo’s Chin Kian. He and his brother visited the headquarters of Cainiao, the logistics arm of Alibaba, in China in 2017, and saw its highly automated warehouses. Now, Cainiao is doing similar things at Malaysia’s Digital Free Trade Zone (DFTZ).  Transcargo worked with Alibaba to develop and execute the electronic World Trade Platform (eWTP) that enables Alibaba sellers to export their products from Malaysia seamlessly. The sellers’ shipping orders will be sent to Transcargo, which will book the shipment once the relevant documents are sent to them digitally. “We use the eWTP system for customs clearance; the exporter can see the whole progress and status on the dashboard,” says Chin Kian.  iStore iSend also thrives in this area. “For logistics to be automated, you need to have a system to integrate the hardware. We try to make things simple with our ODIN system, where clients can see from the dashboard what’s happening in the warehouse and which order is being packed. It makes it easier for them to manage and scale,” says Khoo.  As for whether technologies like drones can be utilised for last-mile delivery, the initiatives seem to be in the planning stages. A trial was done by Teleport, AirAsia’s logistics unit, last year under the government’s National Technology and Innovation Sandbox.  In the last few years, the government has launched e-commerce strategic road maps and incentives for logistics companies to adopt technology, in hopes of establishing Malaysia as an e-fulfilment hub.  It partnered with Alibaba Group Holding Ltd to establish the eWTP in 2017, and set up the Cainiao Aeropolis eWTP Hub, an e-fulfilment and smart logistics centre to support e-commerce exports. The hub was formerly known as the KLIA Aeropolis DFTZ. Lazada was the first to leverage the hub. According to reports, it has an auto parcel sorting system, AGVs and smart CCTVs.  These actions are a step in the right direction, observes PwC’s Cheong. What else is needed? Enhanced flight connectivity and network, improved turnaround and efficiency of the clearance processes and the true digitalisation of the delivery value chain, alongside support for small and medium-sized enterprises (SMEs) to digitalise.  To do so, however, requires investments. Cheong suggests two areas that last-mile players need to focus on. “They need scale, which can be achieved either through organic or inorganic means such as mergers and acquisitions, and [they need to] improve operational efficiency. This includes technological investments, as investing in digital networks will be just as important as the physical infrastructure.” On the other hand, for logistics players to justify their investments in technology, bigger volumes of exports would be ideal, Khoo suggests. Malaysia will have to think about how it can get its companies to export to more markets and make the process smoother.  “Service providers like us make it easy for potential clients to make Malaysia a hub. If we [provide this service] for many SMEs, we have the volume to automate. The government needs to come up with policies to help us and merchants to be more export-friendly and provide them with education on how to do business in other countries,” says Khoo.   In one of DHL Express’ service centres in South Korea, a robotic arm sorts documents and small parcels into separate bins. The DHLBot, powered by artificial intelligence (AI), is positioned at the end of the conveyer belt and sorts packages based on their destination.  The robot can sort more than 1,000 small parcels in an hour, increasing efficiency by 40%. This is a part of the DHL Group’s overall digital transformation effort. According to Lau Tian Chen, Vice President, Head Asia Pacific Innovation Center, DHL Customer Solutions & Innovation, the company has been utilising robotics, automation, the internet of things (IoT) and data analytics in its facilities. The mobile robots, for instance, have been deployed in Japan, China, Singapore and Australia. Drone delivery is available in China while robotic arm applications are implemented in Singapore, Thailand and Korea. Autonomous robots for last-mile delivery are also being used in Singapore.  “One of the biggest challenges facing the logistics industry today is a talent shortage. The use of technology helps our employees with repetitive and strenuous tasks, while automation improves efficiency and reduces error rates,” says Lau, who believes that scaling new technologies will be crucial to their future success.  Why are these technologies only deployed in certain markets? Lau says DHL picks locations based on their volume, labour costs and the availability of technology and providers.  The last point can be a challenge, as the company is constantly looking for technology partners that can deploy solutions consistently across its network and are scalable. “There are a lot of vendors that are still in the start-up phase, and that poses some challenges to their scalability. [Additionally, they] don’t have a presence in [some of] the markets that we would like to be in,” says Lau.  The deployment must also be economically viable. That is why it could be more challenging to do it in countries with lower labour costs. For such markets, technologies like IoT and data analytics that are not as infrastructure-heavy are more ideal.  “Some examples include the tracking and tracing of high-value goods, smart security locks to deter nefarious activities in logistics operations and complex network and inventory optimisation using data analytics,” he says. Malaysia, for one, could benefit a lot from IoT. It has an extensive network of communication technologies, says Lau. IoT enables data collection, which can then be used for data analytics.  DHL has been actively looking for technology partners in Malaysia. He points to a recent memorandum of understanding (MoU) signed with Pen Aviation to commercialise time-critical goods deliveries for port logistics missions using unmanned aerial vehicles. This is done in partnership with Raya Airways as the cargo drone operator. Another partnership that DHL has in Malaysia is for last-mile drone delivery operations, which Lau says still has to overcome regulatory and privacy challenges to become commercially feasible. DHL signed an MoU with Iskandar Investment Bhd and the Malaysian Global Innovation and Creativity Centre (MaGIC) in 2020 to establish the Iskandar Drone and Robotics Zone.  What are the technologies that Lau is excited about? Data analytics for warehousing operations, whereby the data is captured using IoT, is one. This allows for optimisation of inventory and processes quickly and accurately. Another is the use of robotic arms for picking, paired with computer vision AI and mobile robot technologies. The robots can move autonomously between workstations to pick items directly from shelves.  “Using drones for inventory cycle counting and security patrols in the warehouse is another interesting technology,” Lau says.  “To go to the next level, industry players could explore blockchain. For example, Dubai customs recently launched a cross-border e-commerce platform that uses blockchain technology to integrate and automate operations between customs, logistics and courier companies. It’s the first of its kind in the region and aims to help the emirate become a global hub for e-commerce. This is the future and it is an untapped opportunity in Southeast Asia,” Lau adds.    Last August, Lazada took a step forward in easing the e-commerce experience in Malaysia by rebranding its logistics arm as Lazada Logistics and introducing multi-channel logistics (MCL) services, whereby it will fulfil e-commerce orders made through Lazada and other channels. This makes Lazada the only e-commerce player in Malaysia with an end-to-end integrated logistics network, according to the company. It has its own warehouses, sorting centres, delivery hubs and last-mile delivery riders in Malaysia.  When the pandemic struck, Lazada collaborated with many offline businesses to help them go digital, says P Sunil Singh Gill, Lazada Malaysia’s chief logistics officer. It did this by taking 0% commission and having a dedicated team to help them set up online stores, among others.  This, and the already rising appetite for e-commerce, has increased the demand for logistics.  “There are numerous stories of employees going above and beyond, such as those who soldiered on to deliver massive TVs in cardboard boxes or those who had to walk [many] kilometres to work when public transport was suspended during the lockdown,” says Sunil. “Another dedicated group of employees once spent the night sorting parcels in a sortation centre. All of these are incredible evidence of professionalism, commitment, kindness, unity and solidarity.” Does Lazada Logistics utilise technology? Sunil says the company is powered by a data-driven, smart routing algorithm, which is needed to meet the surging demand for e-commerce.  “Data facilities technologies play an important role for Lazada Logistics. We spend time analysing the data and information; utilising digital tools and machine learning with back-end support; testing and optimising the route patterns and ways to facilitate greater efficiency for our drivers; as well as figuring out how to simplify the journey of an order package from a seller to the customer.” What about robotics or even drone deliveries for the last mile? According to Sunil, the company is always keen to optimise leading technologies. “There’s definitely a vast potential, but cost effectiveness is a factor to be considered. We also believe that success is enabled through resource optimisation of both technology and people,” he says. Nevertheless, the company hopes to continue supporting Malaysian local entrepreneurs to digitalise their businesses and adopt best practices from other markets, especially from China through Alibaba, which owns Lazada. It will keep expanding its fulfilment capacity and improving its last-mile delivery service, Sunil adds, to meet the high demand during peak e-commerce shopping seasons.  “The decision to have some last-mile fleets do first-mile pickups and the establishment of multifunctional hubs and mini fulfilment centres are a few recent examples of operational agility and flexibility improvements that aim to reduce the average delivery time spent on one order,” says Sunil. “This year is Lazada’s 10th anniversary and in the next 10 years, we will continue to optimise digital innovation while empowering our people and finding better ways of doing business.” Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/605127

Syed Jalaludin is new Bioalpha chairman as Abdul Rahman steps down

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KUALA LUMPUR (Jan 25): Bioalpha Holdings Bhd said its independent non-executive chairman Tan Sri Abdul Rahman Mamat has stepped down from his position, effective Tuesday (Jan 25). After serving the company for nearly nine years, the health supplement group said in a bourse filing that Abdul Rahman resigned "to pursue other corporate interests". Abdul Rahman, who holds 583,333 direct shares in Bioalpha, also sits on the boards of directors of several public listed companies including Hiap Teck Venture Bhd, Malaysian Industrial Development Finance Bhd, Dagang NeXchange Bhd, Lotte Chemical Titan Holding Bhd and MCE Holdings Bhd. In a separate filing, Bioalpha said it has redesignated its independent non-executive director Tan Sri Dr Syed Jalaludin Syed Salim as its independent non-executive chairman. According to Bioalpha, Syed Jalaludin was the longest chairman of Bank Rakyat Malaysia and a founding director of the Capital Market Development Fund board. Bioalpha shares closed down half a sen or 2.7% to 18 sen, valuing it at RM217.81 million. It saw some 1.45 million shares traded. The stock has dropped 35.71% in the past one year, from 28 sen.

https://theedgemalaysia.com/node/626960

Petronas chairman: Be prepared to pivot when faced with the unexpected

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Below are excerpts of Petroliam Nasional Bhd (Petronas) chairman Tan Sri Mohd Bakke Salleh's letter to stakeholders. Excerpts of the letter were extracted from the Petronas Integrated Report 2021. Dear stakeholders, Two years have passed since the pandemic began, and our world continues to be challenged by volatility and uncertainty on an unprecedented scale in living memory. Even as countries and industries alike strive to recover from the brutal impact of Covid-19, they now face new-found challenges in the wake of the ongoing Russia-Ukraine conflict whose consequences may well long outlast the hostilities themselves and which are likely to reshape the industry landscape in fundamental and complex ways. Notwithstanding the prevailing uncertainties, the role that Petronas plays as an energy company in the context of the wider society remains clear — namely, that it continues to serve as an effective engine that drives economic recovery for Malaysia and beyond by ensuring the safe, secure and reliable supply of energy, while taking vital steps that pave the way to gradually transition to a lower-carbon future in a just and equitable way. In our efforts to fulfil this role, Petronas remains unwavering in the delivery of its amanah (trust), always striving to dutifully discharge its obligations and responsibilities despite the overwhelming odds and challenges. With prudent financial management and an unyielding commitment to upholding safety performance as well as delivery of commercial and operational excellence, Petronas registered a strong performance in 2021 after two years of extreme disruptions to the energy ecosystem. This achievement by the group is credited to the courage, dedication and tenacity of our people. In this opportunity, I  would also like to thank our stakeholders for their support and assistance that allowed us to continue operating safely and optimally throughout the lockdown periods. Looking ahead, changes in the energy landscape will provide new challenges and growth opportunities that we must approach with a credo and mindset for progress and innovation. To this end, I am confident that with the right steer and support from the board, Petronas is well positioned to progress with pace and resilience to deliver profitable and sustainable growth aligned to our three-pronged growth strategy and net-zero carbon emissions by 2050 (NZCE 2050) aspiration. Petronas’ performance for the year in review demonstrates its relentless focus on operational and commercial excellence across the group. The organisation ensured the reliability of its operations to leverage the recovery in global energy demand seen in 2021 with the safety of our people and assets as its highest priority. Although some degree of stabilisation was seen with the roll-out of vaccinations and economies recovering from easing of lockdowns and gradual removal of border restrictions, delivering the group’s performance did not come easily. During the year, the oil and gas industry continued to be very volatile and uncertain in the face of sudden shocks to the market, many of which were beyond our control. These included: Nevertheless, Petronas successfully demonstrated its ability to respond and become part of the solution. Together, the Petronas board and leadership team were able to not only preserve and enhance its core oil and gas portfolio but also grow in the new energy space for long-term business sustainability and resiliency. As a result, Petronas was able to generate healthy financial returns and contribute to its stakeholders in the form of cash payments, tax, export duties, state sales tax and dividends. In 2021, we paid the scheduled RM25 billion dividend payments to the government of Malaysia.  The year 2021 has proven that we need to constantly be prepared to pivot when faced with the unexpected. The unprecedented challenges of the past year offered Petronas an opportunity to reform strategies, expedite transformation and prioritise sustainability risks. It was imperative that Petronas emerged from this trying period more resilient, more agile, technologically stronger and financially more robust. The achievements of 2021 demonstrate the dedication and strength of our people coupled with a robust integrated portfolio that provided Petronas with the strong foundation it needed to capitalise on price recovery. I am deeply grateful to the women and men who stood by Petronas amid the turbulence and offer my sincere thanks to each and every one of them. As we progress to capitalise on this period, Petronas will continue in its efforts to safely deliver commercial and operational excellence. We remain focused on maintaining fiscal discipline and careful operational spending as well as preserving liquidity to ensure resiliency and high performance across the group. We are determined to seize new opportunities for sustainable, profitable growth as we uphold our commitment to our shareholder and lay the foundation for our future growth. The Petronas of the future will still have hydrocarbons as a key part of its portfolio with products delivered safely, responsibly, cost optimised, and emissions abated. The new forays that we are making in step-outs today will complement our core portfolio to provide energy for a world that continues to progress and develop, while being in ever-greater need of solutions for emissions. While the variety of our business offerings expands, the heart of the organisation, in its purpose and values are timeless and remain the same. Our purpose, cultural beliefs, and shared values of loyalty, integrity, professionalism and cohesiveness will continue to bind us together. Looking ahead, the pressures on Petronas are only going to increase as we continue to bear the expectations and aspirations of Malaysia and the communities where we operate. We must make our move to navigate through the turbulence to find our position for the future. In our quest to create a sustainable legacy for the next generation, we must steer the business and shape an energy future that they deserve, one in which Petronas will continue to be their preferred energy and solutions partner. Tan Sri Mohd Bakke Salleh Chairman

https://theedgemalaysia.com/node/678104

Wall Street ends lower as investors await US inflation data

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(Aug 10): US stocks closed lower on Wednesday (Aug 9), the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of US Consumer Price Index (CPI) inflation data that could influence Federal Reserve interest rate decisions. “The markets today are just kind of waffling around. And the reason for that is tomorrow is going to be the CPI report for July being released,” said Jason Krupa, vice-president of asset management at Lenox Advisors. On Tuesday, the New York Federal Reserve Bank said US credit cards debt surpassed US$1 trillion (RM4.58 trillion), and Philadelphia Fed President Patrick Harker said the US central bank may be at the stage where it can leave interest rates unchanged. “With price of oil going up, the consumer is the backbone of the economy. If they are too stretched and they stopped spending, that feeds us more into a recession narrative,” said Gina Bolvin, president of Bolvin Wealth Management Group in Boston. Traders put the chance of no rate hike at the Fed's next policy meeting in September at 86.5%, according to CME FedWatch Tool. Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia, Apple and Tesla, were down between 0.8% and 4.8%. The CPI for July, due on Thursday, is expected to show a slight acceleration from last year. On a month-to-month basis, consumer prices are seen increasing 0.2%, the same as in June. China's consumer sector fell into deflation in July. The CPI dropped in the world's second-largest economy, the National Bureau of Statistics said, its first decline since February 2021. The Dow Jones Industrial Average fell 191.13 points, or 0.54%, to 35,123.36, the S&P 500 lost 31.67 points, or 0.70%, to 4,467.71 and the Nasdaq Composite dropped 165.93 points, or 1.2%, to 13,718.40. The losses followed a broad selloff on Tuesday, after credit rating agency Moody's downgraded several small and mid-sized banks. On Wednesday, big banks extended those losses with Bank of America down 0.8% and Wells Fargo down 1.3%. Four of the top 11 S&P 500 sectors rose, with energy stocks leading the gain by a 1.22% jump, touching a near six-month high, tracking a jump in crude oil prices. Casino owner Penn Entertainment's shares surged 9.1% on a US$2 billion deal with Walt Disney's ESPN to launch a sports betting business. Walt Disney's shares dipped 0.7%, erasing early gains ahead of its quarterly results due after the bell. Lyft shares tumbled 10% despite a strong earnings forecast, as the company signalled it would double down on competitive pricing to catch up with rival Uber. Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data. “It could be a little bit of that [the market is] digesting the fact that we're beating expectations (on earnings) but those expectations have been coming down quarter over quarter”, said Krupa. Volume on US exchanges was 11.06 billion shares, compared with the 10.89 billion average for the full session over the last 20 trading days. Declining issues outnumbered advancing ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favoured decliners. The S&P 500 posted 16 new 52-week highs and seven new lows; the Nasdaq Composite recorded 60 new highs and 178 new lows.

https://theedgemalaysia.com/node/653082

Short seller attack shows risks of going global for Adani empire

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(Jan 26): Gautam Adani was on top of the world, diversifying his conglomerate into everything from green energy to media as his fortune soared by US$40 billion (RM169.8 billion) last year, and mounting ambitious expansion plans from Israel to Morocco. Sure enough, the global spotlight has arrived — but not the sort he craved. The world’s fourth-richest man is now the target of Hindenburg Research, a US short seller, which characterised his meteoric rise as the “the largest con in corporate history” in a voluminous Jan 24 report. It led to a US$12 billion wipeout for Adani investors in a day — an extraordinary turnaround in fortune for a group of stocks, many of which led gains in the S&P BSE 200 Index last year. While the ports-to-power giant has refuted the report — published on the day it was opening a US$2.5 billion share sale for institutional investors — the charges are at best a reputational hit to the nascent global ambitions of the once-shy, self-made billionaire. At worst, it may turn away global investors from whom Adani is seeking broader legitimacy and overseas funding. This level of scrutiny is also something Adani has largely managed to avoid in his home country, where he has mostly faced criticisms over high levels of debt and political barbs for his perceived proximity to Prime Minister Narendra Modi. None of that came close to hurting his conglomerate’s meteoric rise. That may now be changing. While Hindenburg is relatively small for a short seller, it has a history of taking down companies like Nikola Corp, an electric vehicle maker. “If you become rich you should expect to be questioned, that is how the game works,” said Deepak Shenoy, the chief executive officer of Bengaluru-based wealth management firm Capitalmind. “Everybody’s going to question how come these companies are worth so much.” The last time the Adani Group faced questions was in August, when debt research firm CreditSights highlighted the rising and massive leverage across the Adani Group. The following month, CreditSights dialled back its tone after the conglomerate issued a 15-page rebuttal, saying leverage ratios of its companies were “healthy” and citing its own calculations on how debt had reduced. While the initial report did hurt some of the group’s stocks, many of them rebounded later. But the allegations by Hindenburg are markedly different — and the short seller is unlikely to back down — posing the biggest challenge yet for Adani, 60. The firm said the Adani Group was involved in “brazen” market manipulation, accounting fraud, used offshore shells for money laundering and siphoned from listed companies. “Infrastructure firms are generally relatively sleepy, low growth, low multiple enterprises, yet valuation metrics of the Adani listed companies are comparable to the frothiest of high-growth tech companies,” Hindenburg said in its report. “Compared to industry peers, we see 85%+ downside purely on fundamentals.” In a Jan 25 statement, the Adani Group dismissed the report as “a malicious combination of selective misinformation and stale, baseless and discredited allegations”. It also questioned the timing of publication on the eve of Adani Enterprises Ltd’s follow-on offer, and on Thursday, said it’s exploring legal action against Hindenburg. When asked for further comment on Thursday, a spokesperson for Adani Group referred to the company’s two earlier statements issued on the Hindenburg report. Many Indian analysts believe the domestic fallout will be limited for the Adani Group, mainly because the group’s fortunes and strategy are tied to Modi’s infrastructure development goals for the country. The “short has garnered momentum because of its timing ahead of the follow-on offer”, said Sameer Kalra, founder of Target Investing in Mumbai. “My guess is Hindenburg may exit after small declines, given how illiquid the stocks are. India doesn’t have a great track record of rewarding short sellers.” Yet the explosive claims could be damaging not just for the US$2.5 billion follow-on share sale this week, which is aimed at broadening the investor base of the thinly traded stock and paring debt, but also over a longer time horizon as more Adani companies seek investors. The real test for the follow-on offer, a fund-raising route that hasn’t been popular in the last decade, will be when it opens for retail subscriptions on Friday. The conglomerate plans to list at least five companies between 2026 and 2028, chief financial officer Jugeshinder Singh told Bloomberg News earlier this month. In fact, Adani tends to come under more damaging scrutiny whenever he ventures outside of the safe ground of India. Prior to the Hindenburg report, the Adani Group were attacked in Australia by climate activists for developing a coal mine. Global environmentalists decry Adani’s recent drive into green energy as muddied by his continued development of new fossil fuel projects. The first-generation tycoon built his fortunes on a bedrock of coal trading. Locally, there have been some regulatory investigations by government agencies, but none amounted to a serious threat to group’s expansion. In June 2021, they saw a short-lived selloff after India’s junior finance minister told lawmakers that some of the companies were being probed for possible violation of local laws. No one has taken the fight as far as Nate Anderson’s Hindenburg, which has dredged up ugly allegations with 88 questions for the Adani conglomerate. Its track record is significant: Of the about 30 companies Hindenburg has targeted since 2020, their stocks on average lost about 15% the next day, according to calculations by Bloomberg News. The shares on average were down 26% six months later. The investigation carried out by @HindenburgRes raises some serious questions with regards to propriety and transparency of the Adani group. Considering the detailed research is out in the public domain it is important that GoI takes note of the charges made. “Given Hindenburg’s reputation, one can assume that these allegations have been thoroughly researched,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM GmbH. For some, the reckoning has been a long time coming. “There is enormous political clout behind Adani and his meteoric rise,” said Sharmila Gopinath, a specialist India adviser at the Asian Corporate Governance Association. “I’m taken aback sometimes by how he has managed to get the kind of national reputation and image that he has with such little scrutiny.”

https://theedgemalaysia.com/node/672752

Fed Court dismisses insurance companies’ bid to intervene in MyCC’ s attempt to reinstate RM10 mil fines on AirAsia, MAS

English

PUTRAJAYA (June 27): A three-member Federal Court bench on Tuesday (June 27) has unanimously dismissed an application by three insurance companies to intervene in Malaysia Competitions Commission (MyCC) review of another apex court panel’s decision concerning its appeal to reimpose RM10 million fines on AirAsia and Malaysia Airlines Systems Bhd (MAS). The bench, led by Court of Appeal president Tan Sri Abang Iskandar Abang Hashim, said the insurance companies are not proper parties to intervene in this case. “There is no doubt [that] they may be affected (later) but we find [that it is] not at this stage,” he said. Abang Iskandar ordered the three insurance companies — Allianz General Insurance Company (Malaysia) Bhd, AmGeneral Insurance Bhd and RHB Insurance Group — to pay total costs of RM90,000 (ie RM30,000 each) to MyCC. The other members of the bench were Federal Court judges Datuk Zabariah Mohd Yusof and Datuk Harmindar Singh Dhaliwal. The three insurance companies, represented by Anand Raj, wanted to intervene in the review proceedings after MyCC filed a judicial review application at the High Court over the Competitions Appeal Tribunal (CAT) having overturned the commission’s decision to fine the insurers RM130.2 million. In 2020, MyCC had found that an agreement on the application of trade discounts on automotive parts prices and hourly labour rates for motor vehicle repairs done under the PIAM Approved Repairers Scheme (PARS) was a breach of the Competition Act 2010. Anand Raj had earlier told the panel that if MyCC’s review is allowed, the insurers would be directly affected as they are in a similar situation as the two airlines, because the CAT had allowed the airlines’ appeal, and the commission is challenging the tribunal’s decision. He also alleged that the MyCC also intends to amend the Competition Act to allow the commission to review CAT’s decision. MyCC’s counsel Kwan Will Sen said the matter in the High Court had yet to be canvassed, and that the insurers’ bid to intervene are akin to them “being at the wrong airport”. Despite Tuesday’s decision not to allow the three insurance companies to intervene, Anand Raj applied for them to hold a watching brief to the proceedings, which Abang Iskandar allowed. However, the proceedings for MyCC’s review against the two airlines did not proceed on Tuesday, as it was already late in the afternoon. The court has fixed July 18 to hear the review. Besides Kwan, the MyCC was led by lead counsel Datuk Lim Chee Wee, while Datuk Ambiga Sreenevasan appeared for AirAsia, and Logan Sabapathy for MAS. The MyCC is seeking a review of CAT’s decision to lift the fines on AirAsia and MAS, which it had earlier imposed in 2014, after it found that both airlines had breached the market sharing prohibition under Section 4(2) of the Competition Act 2010 by entering into an agreement on sharing markets in the air transport services sector within Malaysia. The CAT lifted the fines in 2016, following the airlines’ appeal. After that, the MyCC filed a judicial review application against the CAT’s decision, and in 2018, the High Court reinstated the fines on the two airlines. However, the Court of Appeal overturned the High Court’s decision and upheld the CAT’s decision in 2021. The appellate court ruled that the MyCC should have abided with CAT’s decision to lift the fines, and not filed a judicial review to challenge the tribunal’s findings. The appellate court further ruled that the MyCC cannot challenge its appellate authority, and that the commission is not considered an aggrieved party under Order 53 Rule 2 to initiate a legal challenge against the CAT. The decision was upheld by a three-member Federal Court bench last year, led by then Court of Appeal president Tan Sri Rohana Yusof, resulting in this present review case. Read also:   Court adjourns MyCC’s bid to seek leave to challenge CAT’s decision to allow insurers’ appeal MyCC’s bid to reinstate fines on AirAsia, MAS to be heard on June 27 

https://theedgemalaysia.com/node/643611

Global growth to slow in 2023, says Moody’s Investors Service

English

KUALA LUMPUR (Nov 11): Moody’s Investors Service has lowered its economic growth expectations for 2023, and said the global economy is on the verge of a downturn amid extraordinarily high levels of uncertainty amid persistent inflation, monetary policy tightening, fiscal challenges, geopolitical shifts and financial market volatility. In its report titled “Global Macro Outlook 2023-24: Global economy faces a reckoning over inflation, geopolitics and policy trade-offs” released on Thursday (Nov 10), the firm said global growth will slow in 2023, and remain sluggish in 2024. “Still, a period of relative stability could emerge by 2024 if governments and central banks manage to navigate their economies through the current challenges,” it said. Moody’s said it expects real gross domestic product growth in the Group of 20 economies to decelerate to 1.3% in 2023, significantly lower than the previous estimate of 2.1%, and down from an estimated 2.5% growth this year. It said declining economic activity in advanced economies, notably in Europe and North America, will drive the sharp moderation in 2023 growth. In 2024, global economic activity will accelerate, but only at a below-trend 2.2% growth rate, it said. The firm said that the decisive end to the decade-long era of low interest rates and quantitative easing had generated large financial losses in asset values around the world, raised dollar funding costs and widened credit spreads. It said that so far, the adjustment to higher rates has come without a large systemic financial event with global implications, and its baseline forecasts assume that central banks will avoid a disorderly tightening of financial conditions. Moody’s said the Russia-Ukraine conflict will remain the central geopolitical risk to the larger macroeconomic picture. “While we assign a very low probability to the potential for the conflict to broaden beyond Ukraine’s borders, such an event would mark a significant escalation, creating further and severe downside economic risks. “Geopolitical considerations will increasingly drive economic policies globally, as great-power relationships turn ever more confrontational," it said.

https://theedgemalaysia.com/node/674940

Paying for that something for everyone

English

KUALA LUMPUR (July 15): With less than a month to go for the six state elections on Aug 12, Prime Minister Datuk Seri Anwar Ibrahim’s administration has already announced the good news for civil servants, civil service pensioners as well as Felda settlers, on top of the usual pre-festivities cash transfers and pledges to eradicate hardcore poverty by year-end. There is even hope of more populist Employees Provident Fund withdrawals with the pension fund reviving the idea of an Account 3, which could allow discretionary withdrawals within two years and possibly earlier, should the green light be given faster. The business and investment community were not left out in the strife to “build a better Malaysia” together, anchored on the Madani concept. Among other things, Anwar, who is also the finance minister, on July 14 laid out his administrative roadmap of major policy announcements leading up to Budget 2024 on Oct 13, telling some 400 people present at the engagement session that he will soon be fleshing out the country’s economic vision and direction, starting with ‘Perkasa Ekonomi Madani’ or Empowering the Madani Economy in late July, the New Industrial Master Plan 2030 and the National Energy Transition Roadmap in August, and the mid-term review of the 12th Malaysia Plan in September before his round-up in October with the tabling of Budget 2024. Will reforms and revenue measures also come as swiftly with the tabling of Budget 2024 just three months away? What could happen to federal government finances if nothing changes? And would the ‘Special Appreciation for Pensioners (PKKP)’ — which basically compensates pensioners whose monthly cheques should have been bigger if a 2013 amendment to the Pensions Act that the Federal Court threw out on June 27 had not been followed in the first place — affect the Budget 2023 deficit? Read our cover story on this week's issue of The Edge Malaysia by picking up a copy at news stands. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/662923

亚股提振 马股走高

Mandarin

（吉隆坡11日讯）受积极的亚洲股市表现提振，马股休盘走高。 休市时，富时隆综指微升1.54点，挂1429.67点。 综指今早以1429.12点报开，较昨日闭市的1428.13点，起0.99点。盘中游走于1426.50点和1430.74点。 上升股371只、下跌股347只，另有410只无起落、1105只无交易，以及13只暂停交易。 成交量18亿2000万股，值8亿5493万令吉。 亚股周二造好，因投资者乐观认为，无论美国联储局（FED）作何决定，区域央行将继续暂停或结束加息周期。 然而，乐天交易股票研究副总裁唐栢麟认为，市场基调将保持谨慎，因为在两家银行倒闭后，美联储官员对加息持强硬态度，美国股市依然动荡。 将于周三和周四公布的美国消费者物价指数和生产者物价指数，也将为市场提供新的线索。 他向马新社说：“因此，我们认为综指今日将在1425至1435点区间徘徊，交投料淡静。” 重量级股中，马银行（Malayan Banking Bhd）扬3仙，报8.68令吉、联昌国际集团（CIMB Group Holdings Bhd）升6仙，至5.24令吉、大众银行（Public Bank Bhd）持平于3.98令吉，而国油化学（Petronas Chemicals Group Bhd）跌15仙，挂7.25令吉，以及国家能源（Tenaga Nasional Bhd）减9仙，至9.09令吉。 至于热门股，丰成综合（Hong Seng Consolidated Bhd）、Barakah Offshore Petroleum Bhd和辉德（Fitters Diversified Bhd）各升1仙，分别报12.5仙、6仙和6仙、Dolphin International Bhd增0.5仙，至2仙，而顶级手套（Top Glove Corp Bhd）平盘挂于1.15令吉。   （编译：陈慧珊）   English version：Bursa Malaysia turns higher at midday

https://theedgemalaysia.com/node/668678

Hyundai Motor Group, LG Energy to build US$4.3b EV battery plant in US

English

SEOUL (May 26): South Korea's Hyundai Motor Group and LG Energy Solution Ltd (LGES) on Friday said they will build a US$4.3 billion electric vehicle (EV) battery plant in the US amid a push to take advantage of tax credits. Manufacturers must adhere to new US sourcing requirements for EV battery components and critical minerals so that buyers of their vehicles can qualify for up to US$7,500 in tax credits under the Inflation Reduction Act (IRA). Vehicles from Hyundai Motor Co and sister automaker Kia Corp are currently not eligible. Hyundai and LGES said construction of the factory in the state of Georgia will begin in the second half of 2023, with battery production starting at the end of 2025 at the earliest. It will have an annual production capacity of 30 gigawatt-hours (GWh), enough for 300,000 EVs, they said. Hyundai Motor Group, the world's third-largest automaker by vehicle sales, is building EV and battery manufacturing facilities in Bryan County in the state, where its joint factory with LGES will be based. LGES and Hyundai Motor Group, which houses Hyundai Motor, Kia and autoparts maker Hyundai Mobis Co Ltd, will each own 50% of the joint venture. LGES supplies automakers including Tesla Inc and General Motors Co. "Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America," LGES CEO Youngsoo Kwon said in a statement. In April, Hyundai Motor finalised a US$5 billion EV battery joint venture in the US with SK On, a battery unit of SK Innovation Co Ltd, boosting electrification efforts in its largest market.

https://theedgemalaysia.com/node/647069

The Week Ahead: Eyes on whether Bank Negara will make back-to-back OPR hike of 25bps or a historic 50bps move

English

This article first appeared in The Edge Malaysia Weekly on April 4, 2022 - April 10, 2022 This Wednesday (July 6), Bank Negara Malaysia’s eight-member Monetary Policy Committee (MPC) will decide whether it will raise the overnight policy rate (OPR) by 25 basis points to 2.25%.  If it does hike the OPR, it would mark the first back-to-back increase since mid-2010, when interest rates were normalised, following the recovery from the 2008/09 global financial crisis. If a 50bps hike to 2.5% is made, it would make history as Bank Negara’s first since the current policy interest rate regime (OPR) was introduced in April 2004 to replace the three-month intervention rate (the previous benchmark). “We now expect Bank Negara to increase the OPR by 50bps in the upcoming meeting in July, bringing the OPR to 2.5%,” AmInvestment Bank group chief economist and head of research Anthony Dass wrote in a June 27 note. He expects inflation to range between 2.8% and 3% for 2022, which implies that inflation would hover between 3% and 3.5% from June to December after averaging at 2.4% in the first five months of this year. A quick check on central bank data shows that the largest OPR ever made so far has been a 30bps increase in November 2005. It is worth noting, though, that Bank Negara made a 50bps rate cut in May 2020 after two back-to-back 25bps cuts in January and March. And these were followed by another 25bps cut in July 2020 to bring total reduction to 125bps and the OPR down to the record low of 1.75%. In May, Bank Negara’s MPC had surprised most economists with a 25bps OPR hike to the current 2%. UOB Bank Malaysia, which was among the minority that rightly predicted that Bank Negara would begin normalising rates in May, expects a 25bps hike this week and another 25bps hike in the next scheduled meeting on Sept 8, after the release of 2Q GDP data on Aug 12. “Based on the latest Bloomberg survey (July 1), four economists (including from UOB) expect a 25bps OPR rate hike to 2.25% while there is a sole analyst who expects Bank Negara to stay on hold. Bank Negara has signalled a more positive view on Malaysia’s economy amid signs of firmer economic growth, which is supported by the easing of restrictions and reopening of international borders. As such, we think there is room for Bank Negara to follow through with another 25bps rate hike at both the July and September meetings. Thus, our updated OPR forecasts are 2.5% by end-2022 and 3% by mid-2023 (versus 2.25% and 2.5% previously),” UOB told clients in a July 1 note. Bank Negara governor Tan Sri Nor Shamsiah Mohd Yunus has repeatedly said that any adjustment to the OPR will be “measured and gradual to support sustainable economic growth, while ensuring price stability”. The central bank’s fortnightly release on its international reserves on July 7 (for the two-week period ended June 30) will also be closely watched. Its previous release on June 22 showed foreign reserves falling US$3.6 billion in the first two weeks of June to US$109.2 billion — the largest fortnightly fall since July 2015 — to its lowest level in 15 months. The Department of Statistics Malaysia is slated to release unemployment data and the Industrial Production Index (IPI) for May on July 7 and 8 respectively. Unemployment had declined to 3.9% in April from 4.1% in March, helped by the reopening of the economy. The IPI rose 4.6% in April, helped by a 6.2% expansion in the manufacturing sectors. This was slower than the 5.1% increase in March when manufacturing grew 6.9%. Meanwhile, the Reserve Bank of Australia will make its key rate decision on July 5. Eight economists expect RBA to raise its cash rate by 50bps to 1.35% while one expects a 75bps hike to 1.6%, says UOB, which expects a 40bps hike to 1.25%. Central bank watchers will be poring over June minutes of the US Federal Open Market Committee (FOMC), slated for release on July 7, the same day the Bank of England is expected to release its financial stability report. The European Central Bank will also be releasing the minutes of its June meeting this week. There might be some relief in global equities markets, with the US markets closed for Independence Day on July 4. The next FOMC meeting is scheduled for July 27, where the current fund range of between 1.5% and 1.75% is expected to increase by at least 50bps or 75bps (plus more rate hikes in September and 4Q) to bring it closer to the expected terminal rate of 3.5% by year end. The G20 foreign ministers meeting in Bali, Indonesia, on July 7 and 8, may also draw interest, given that Russian Foreign Minister Sergei Lavrov is expected to be among attendees. Over at the Kuala Lumpur High Court, the 1Malaysia Development Bhd (1MDB) audit tampering trial is slated to resume on July 4, with former prime minister Datuk Seri Najib Razak’s lead defence lawyer Tan Sri Muhammad Shafee Abdullah resuming cross-examination of former 1MDB CEO Arul Kanda Kandasamy. On July 7, High Court judge Datuk Collin Lawrence Sequerah will hear Umno president Datuk Seri Ahmad Zahid Hamidi’s application to stay his corruption trial, pending an appeal to the Court of Appeals regarding 11 witness statements, which he is trying to obtain. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/629592

Ringgit to trade between support level of 4.450 and 4.470, says AmBank

English

KUALA LUMPUR (July 26): AmBank Group expect the ringgit to trade between the support level of 4.450 and 4.470 while the resistance is pinned at 4.560 and 4.610. In its FX Daily highlights on Tuesday (July 26), AmBank group chief economist/head of research Dr. Anthony Dass said the ringgit appreciated only slightly by 0.01% to 4.453 and traded within the range of 4.456 and 4.450. Malaysia's Leading Index increased by 0.4% m/m in May 2022, signalling positive development in the economy. Dass said the dollar index started the week on weaker footing as it fell 0.23% to 106.48, the lowest level since early this month. “Ahead of the Fed meeting which will conclude on Wednesday, the central bank is expected to raise its rate by 75 basis points, in line with our view. “The main concern here is that the effort to rein in inflation could tip the world’s largest economy into a sharp recession,” he said.  

https://theedgemalaysia.com/node/646581

Sabah launches new Strategic Plan of Actions to further energise Heart of Borneo conservation

English

KOTA KINABALU (Dec 2): The Sabah government has launched a new set of Strategic Plan of Actions (2021-2023) to address emerging challenges and take advantage of potential opportunities to enhance conservation and management of the Heart of Borneo landscape. Sabah Chief Minister Datuk Seri Hajiji Noor said Sabah made significant strides in implementing programmes and projects set forth in the Second Sabah Strategic Plan of Actions. However, he said given the rapidly changing economic, social, and environmental landscape, a new set of Strategic Plan of Actions is needed to build on the achievements of its predecessor. "The achievements are underpinned by the following strengths of the Sabah HOB (Heart of Borneo) initiative: state and federal governments' commitment towards the initiative, policy continuity, the ability for key stakeholders to work together, and the ability to leverage the HOB brand for funding and new partnerships," he said. Hajiji said this at the opening of the Heart of Borneo Symposium Sabah themed "The Need for Holistic and Pragmatic Approaches on Conservation Efforts" on Friday. His speech text was read out by Sabah Deputy Chief Minister Datuk Seri Dr Jeffrey Kitingan, who is also Sabah agriculture and fisheries minister. Hajiji said several new features were introduced in the new Strategic Plan of Actions to further align its focus moving forward, representing strategic shifts critical to move the Sabah Heart of Borneo initiative to higher gear towards conservation. "The goals of the focus area of the Sabah HOB Strategic Plan of Actions are closely aligned with the main goals of the key state's and national's development plans including the Haja Tuju Sabah Maju Jaya Development Plan 2021-2025, Sabah Development Corridor Blueprint 2021-2030, and the 12th Malaysia Plan 2021-2025. "Public awareness of HOB and its conservation efforts has always been a priority to Sabah. Over the past years, roadshows, environmental education, and training programmes to promote HOB Initiatives have been conducted for teachers and local communities, especially to those residing within or near the HOB landscape," he said. Hajiji said the Sabah Heart of Borneo represents around 60% of Malaysia's Heart of Borneo landscape and it holds one of the world's remaining bastions of treasured biodiversity. He said that 64% of Sabah's land mass has been protected forest since 1990, of which 52% has been gazetted as forest reserves, state parks, wildlife sanctuary, and also wildlife conservation areas. The chief minister also thanked the federal government, particularly the Ministry of Energy and Natural Resources, for supporting the Heart of Borneo initiative through the Malaysia Plan since 2009. The federal government has provided a total of RM47 million to Sabah for the Heart of Borneo initiative implementation since 2009, and a total RM13 million has been pledged under the 12th Malaysia Plan, he added.

https://theedgemalaysia.com/node/604378

UOB Kay Hian starts coverage of Coraza, sets target price at 65 sen — more than double IPO price

English

KUALA LUMPUR (Jan 19): UOB Kay Hian has set a target price of 65 sen for Coraza Integrated Technology Bhd, which is slated to list on Bursa Malaysia's ACE Market on Thursday (Jan 20). The target price represents a 132.1% premium to its initial public offering (IPO) price of 28 sen, the research house said in a note on Wednesday (Jan 19). According to the research house, the target price was derived from a multiple of 21 times price-to-earnings (P/E) for 2022, which is at a 50% discount to its industry peers' average forward P/E. "Our P/E multiple yardstick implies an undemanding PEG (price/earnings-to-growth) ratio of 0.6 times given its multi-year growth story. Blue-sky valuation if pricing at 1x PEG ratio suggests a potentially higher target price of RM1.05 (at 34.6 times 2022F PE)," it said. UOB Kay Hian added that the sheet metal fabrication firm is an attractive proxy to the booming tech sector, noting that it was on track to posting record revenue and profit for 2021, with higher contribution from the semiconductor sector coupled with improved operational efficiency. According to the research house, the expanded capacity from its new factory and machinery will mostly be allocated towards serving semiconductor customers as well as new services to be offered later. "As of November last year, the group had an outstanding purchase order of RM91.5 million to be fulfilled in 2022. "The group has also maintained a good working relationship with its major customers which are the prominent players in the semiconductor, medical & life sciences as well as electrical & electronics sectors listed on the New York Stock Exchange. "These customers are deepening their presence in Malaysia currently following the US-China trade diversion which would continue to benefit Coraza. "We see multiple legs of growth that can supercharge a three-year revenue/core net profit CAGR (compound annual growth rate) of 17%/35%, riding on a strategic portfolio exposure, aggressive capacity expansion and growing relevance in major customers' high margin products. Coraza is expected to raise RM33 million from its IPO exercise. The company said that it will deploy RM15.5 million or 47% of its expected RM33 million IPO proceeds to purchase new machinery and equipment over the next three years for its existing and new factories in Nibong Tebal, Penang. Coraza added that it has earmarked RM6.4 million or 19.5% of the IPO proceeds to part-finance the construction of the new factory, which is adjacent to its current factory and expected to have a total built-up area of approximately 91,110.1 sq ft. It said construction will be carried out in three phases and is targeted for completion by December 2023. Meanwhile, the remainder of the proceeds will be utilised to repay bank borrowings of RM4.6 million (13.9%), extend its existing factory to add an additional area for capacity expansion costing RM1.5 million (4.6%), as well as procure and integrate a new enterprise resource planning system to streamline and automate its processes for more efficient operations while spending RM3.8 million (11.4%) on estimated listing expenses. The group recently reported a net profit of RM3.52 million for its third quarter ended Sept 30, 2021 (3QFY21) against a revenue of RM28.13 million. For the cumulative nine months ended Sept 30, 2021 (9MFY21), the group achieved a net profit of RM8.94 million against a revenue of RM71.33 million. It said revenues for its 3QFY21 and 9MFY21 came mainly from its sheet metal fabrication segment, which accounted for RM24.2 million and RM61.3 million or 86% of both its quarterly and cumulative revenues, respectively. Coraza provides a comprehensive range of services, which include fabrication of sheet metal, precision engineering components as well as provision of related services, such as design and development and value-added sub-module assembly to customers across a diverse range of industries, including semiconductor, instrumentation, life science and medical devices, as well as aerospace. M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for Coraza's IPO.

https://theedgemalaysia.com/node/651044

Henry Butcher Malaysia: Local residential market will not be much impacted in 2023

English

KUALA LUMPUR (Jan 9): Despite Malaysia’s residential property market being expected to face some headwinds this year, Henry Butcher Malaysia is confident that the market is not likely to reverse gears along its current recovery path. According to the annual property market report titled “HB Perspective. Malaysia Property Outlook 2023” released by Henry Butcher Malaysia on Monday (Jan 9), the property consultant firm reckons that the residential property market is expected to face some headwinds and challenging conditions in 2023, and will probably register a slight slowdown in its pace of growth. However, it is not likely to have big impacts on its recovery path. “Some international economists have predicted a global recession to happen in 2023 and if their predictions come true, Malaysia’s economy will be impacted and this will ultimately affect the property market negatively. However, local economists believe that Malaysia will not enter a recession, although the rate of growth is expected to slow down,” Henry Butcher Malaysia said in the report. Meanwhile, concerns of an oversupply of office space in the Klang Valley will continue in 2023. The imminent completion of a number of mega office projects in the coming one- to two years will worsen the oversupply situation. “The looming oversupply situation may lead to some developers rethinking about their new office projects and shelving or deferring them. [Moreover], multinational and local companies have placed increasing importance on environmental, social and governance (ESG) issues and in response, more new office buildings will adopt designs which will comply with ESG requirements in order to attract such tenants,” the property consultant firm said. On the other hand, the retail property segment — which recorded a strong recovery in 2022, with retail sales performance registering double digit growth with the highest expansion recorded in Q3 — is expected to face more challenges in 2023, such as a substantial rise in prices of goods and services, shortage of staff, an increase in the supply of retail floor space with the completion, and the impending completion of a number of new malls. Nonetheless, the lifting of travel restrictions after China relaxed its Zero Covid policy is good news for the retail segment, as it could result in an increase of tourist arrivals to the country, which in turn could lead to more footfalls and sales recorded by malls in the main cities visited by the Chinese tourists. “Overall, the retail property sector should continue to see an improvement in 2023 but the pace of growth could be affected by the global recession, depending on its severity and duration, if it does happen as predicted by some economists,” the firm said in the report. Commenting on the industrial property segment, Henry Butcher Malaysia said it was the best-performing segment in 2022 and is likely to continue its good performance in 2023, thanks to the overall improvement in economic sectors. “All economic sectors have now been allowed to open and this will permit businesses, including manufacturers and logistics operators to resume normalised operations, while international borders have opened up and international travellers are allowed into the country without having to go for any Covid testing or quarantine. This will ease and facilitate business, as well as leisure travel. “The increase in inflow of FDIs (foreign direct investments), especially in the manufacturing sector, is expected to translate into an increase in demand for industrial space /properties. Malaysia has continued to record a good trade performance over the past two years. This will provide a boost to demand for industrial properties. However, this may be affected by any global recession,” Henry Butcher Malaysia added.

https://theedgemalaysia.com/node/672641

Mitsotakis sworn in as Greek PM, promises more jobs and 'big changes'

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ATHENS (June 26): Kyriakos Mitsotakis promised to rebuild Greece's credit rating, create jobs, raise wages and boost state revenues, after he was sworn in for a second term as prime minister on Monday, following a resounding election win. His centre-right New Democracy party got 158 seats in the 300-seat Parliament in the repeat election on Sunday, well ahead of the 48 secured by leftist Syriza, which ran Greece from 2015-2019 at the height of the decade-long economic crisis. "I have committed that in this second term, we will realise the big changes that the country so much needs," Mitsotakis told President Katerina Sakellaropoulou after receiving an official mandate to form a government. The 55-year-old former banker and scion of a powerful political family was prime minister from 2019 until stepping down in favour of a caretaker premier, following an inconclusive May 21 vote. He has promised to push ahead with reforms to rebuild the credit rating after the debt crisis, boost revenue from the vital tourist industry, and increase wages to near the European Union average. Ratings agency Moody's senior vice president Steffen Dyck said New Democracy's victory was credit-positive. A second four-year term under Mitsotakis "will ensure continuity in fiscal and economic policies. In particular, continued focus on improving the business environment and banking sector health," he said. He forecast Greece "will post one of the largest debt reductions globally," with its general government debt burden declining to less than 150% of GDP by 2025, from 171.3% at the end of 2022. A government spokesman announced the new Cabinet at 1400 GMT. Mitsotakis appointed Kostis Hatzidakis as his finance minister. Hatzidakis, a 58-year-old soft-spoken politician and reformist according to political analysts, is New Democracy's vice president. He served as labour and energy minister in the former government, overseeing the restructuring of Greece's biggest power utility PPC, which had been struggling with overdue bills, the legacy of the debt crisis. Nikos Dendias, foreign minister in the previous administration, was appointed defence minister. The foreign ministry portfolio went to George Gerapetritis, a senior aide to Mitsotakis, who was state minister and took over the transport ministry after a deadly train crash in February. The Cabinet will be sworn in on Tuesday. While the Covid-19 pandemic and the rail crash exposed shortcomings in health and public transport systems, soaring prices and economic hardship have more recently topped voters' concerns. Sunday's vote saw a heavy defeat for Alexis Tsipras' Syriza party, which lost more than 30 lawmakers. "Mitsotakis' absolute dominance, with no opponent," Greek newspaper Ta Nea wrote on its front page. Tsipras said Syriza would work hard for a come-back and his party would decide on his own future. The vote also saw three fringe right-wing and nationalist parties, including the anti-immigrant "Spartans", enter Parliament with a combined 34 seats.