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https://theedgemalaysia.com/node/653024

Malaysia’s 2022 exports three years ahead of 12MP’s projection for 2025, says Matrade

English

KUALA LUMPUR (Jan 26): Malaysia’s export performance in 2022 has surpassed the country’s projection for 2025 under the 12th Malaysia Plan (12MP), placing it three years ahead of the target, according to Malaysia External Trade Development Corp (Matrade). The country’s trade — exports, imports and trade surplus — also maintained its stellar performance despite a challenging global environment, showing the resilience of the Malaysian business community amid robust global demand and high commodity prices, said chief executive officer Datuk Mohd Mustafa Abdul Aziz. Malaysia’s trade for 2022 reached RM2.8 trillion, exceeding the RM2 trillion mark for the second successive year. Exports expanded 25% to RM1.6 trillion, surpassing the RM1.5 trillion mark for the first time. Imports, meanwhile, breached the RM1 trillion mark for the first time, reaching nearly RM1.3 trillion in 2022, said Mohd Mustafa. Malaysia exports high value and competitive range of products to over 200 international markets, he said. In 2022, Malaysia’s top 10 export destinations contributed a 87.7% share of total exports. “Leveraging on the outstanding trade performance, Matrade as the national trade promotion agency, shall strive further to nurture and grow more Malaysian entrepreneurs to venture into exports. “Matrade has been the main focal point in facilitating Malaysian exporters, ministries, agencies, chambers and associations by connecting them with foreign buyers,” he said. Matrade’s commitment to enhance Malaysia’s exports will continue under three main export agendas, namely digitalisation, sustainability and the National Trade Blueprint, Mohd Mustafa said. For 2023, Matrade has planned many programmes and initiatives to support Malaysia’s exporting community, including the Malaysia International Halal Showcase 2023 or Mihas 2023, which will be held from Sept 12 to Sept 15 this year at the Malaysia International Trade and Exhibition Centre. “...I am optimistic that this exhibition will continue to be a premier international halal trade event, linking global buyers with Malaysian exporters,” Mohd Mustafa said, adding that Matrade’s active export promotion efforts will continue to attract more demand for Malaysian products and services globally.

https://theedgemalaysia.com/node/634713

TNB’s high ICPT receivables raise doubts on its prospects, say analysts

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KUALA LUMPUR (Sept 1): Rising fuel costs and persistent populist measures by the government to maintain electricity subsidies have raised concerns among anaysts on the prospects of Tenaga Nasional Bhd (TNB), as reflected in the increasing number of “sell” calls on the stock. Of the 20 analysts currently covering the stock, nine have “buy” recommendations for the stock, another five have issued “hold” calls, while the remaining six have made “sell” calls. Their target price for TNB ranges from RM6.60 to RM19.60, for a consensus target price of RM10.18.   Although researchers with “buy” calls still constitute the largest composition among the research houses polled by Bloomberg’s consensus rating, their percentage has shrunk to 45% from 65% in January, and from 85% in September last year. In contrast, analysts with “sell” ratings rose 30% after TNB’s recent release of its financial report for the second quarter ended June 30, 2022 (2QFY22), which showed receivables at a record high of RM19.17 billion — from RM14.2 billion in 1QFY22 and RM10.7 billion in 4QFY22 — mainly due to the continuous surge in fuel generation costs. Analysts with a “hold” rating on TNB constituted 25% of the consensus, unchanged from January but up from 5% from September last year. The rise in “sell” advocates appear to be in line with rising fuel costs, particularly coal, which constitutes 57.8% of the industry generation mix as at 2QFY22. Year-to-date, Newcastle spot coal prices have jumped by almost three times to US$425 per tonne, from US$151.75 at the beginning of the year. The elevated coal prices, coupled with the government’s intention to maintain electricity tariff for the general public, has resulted in a lag effect for TNB to recover higher fuel cost through the Imbalance Cost Pass-Through (ICPT) mechanism. UOB Kay Hian analyst Chong Lee Len said Putrajaya’s move to provide TNB a RM6 billion guarantee to ensure electricity generation operation is not disrupted is a way to “utilise” the utility giant’s balance sheet to undertake electricity tariff subsidies for Malaysians. “We expect coal prices to remain stubbornly elevated as we enter the wintering period. While this is a good off-balance sheet financing option for the government, TNB’s investability and autonomy as a purely profit-driven entity with a resemblance of decent corporate governance could be at risk,” she said in a note on Thursday (Sept 1), adding that UOB remains cautious on the stock. Chong kept her “sell” recommenation with a target price of RM6.60, as she remains cautious on TNB’s bid to seek the existing RM5.8 billion ICPT surcharge from the government, and possibly another RM6 billion under-recovery for the first half of next year’s tariff review. Nomura’s Ahmad Maghfur Usman highlighted that while TNB’s net gearing stood healthy at 40.1% as at 2QFY22 versus 39.7% in 1QFY22, high receivables have weighed on the group’s working capital. “As a consequence, cash flow generation remains weak, at a mere RM780 million in 2QFY22, versus RM3.4 billion in previous corresponding quarter and RM1.1 billion in 1QFY22,” he said in a note on Tuesday (Aug 30). “Suspension or adjustment to ICPT mechanism is a key downside risk,” said the analyst, who kept his “neutral” rating and RM9.00 target price. Nonetheless, TA Securities analyst Kylie Chan Sze Zan is of the view that it is reasonable to expect the government to pay TNB its due ICPT receivables. “This is integral to instill confidence among foreign investors, and also enforce the integrity of legal frameworks in the country,” she said in a note on Thursday (Sept 1), keeping her “buy” call on TNB with a target price of RM10.70. Hong Leong Investment Bank analyst Daniel Wong agreed that the government would continue honouring the ICPT mechanism, but cautioned that TNB’s cash flow is expected to be dragged down in the near term due to the ongoing mismatch from fuel cost pass-through. “There was time lag effect of the approved imbalance cost pass-through of only RM7 billion in 2HFY22, as compared to RM9.4 billion imbalance cost pass-through recognised in 1HFY22 and the deferred RM2.4 billion from 2HFY21,” he said, while keeping his “buy” call and RM11.65 target price. Kenanga Research analyst Teh Kian Yeong, meanwhile, said he is unperturbed by the seemingly ballooning under-recovery of fuel costs, as it will eventually be recovered under the incentive-based regulatory (IBR) framework. Having said that, Teh cut his target price on the stock to RM10.17 from RM10.27, as he reduced the net profit forecast to take into account of higher-than-estimated prosperity tax and timing difference between the actual fuel costs incurred versus the amount entitled under the ICPT mechanism. “We remain optimistic on Tenaga, given that Cukai Makmur is one-off in FY22, while skyrocketing fuel costs is pass through with lag effect, which is mainly accounting treatment in the immediate term,” said the analyst, who maintained an “outperform” rating on the stock. It remains to be seen to what extent the government — which recently requested Petroliam Nasional Bhd (Petronas) to double dividend payout — is willing to sustain the credibility of ICPT mechanism, as coal prices stay elevated in a protracted period, especially after the upcoming 15th General Election.

https://theedgemalaysia.com/node/650303

Poh Huat, Citaglobal, JAG, MHC, Poh Kong, Hextar Tech, Sarawak Cable, Tune Protect, AAX, Golden Pharos, MCE, Niche Capital Emas, FM Global

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KUALA LUMPUR (Jan 3): theedgemarkets.com highlighted 13 stocks with momentum at Bursa Malaysia’s afternoon close on Tuesday (Jan 3). Only two stocks displayed positive momentum, while the other 11 indicated negative momentum. The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum. This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher-than-normal volume and price movements. For more detailed financial information and reports on the above-mentioned stocks, please subscribe to AbsolutelyStocks at www.absolutelystocks.com

https://theedgemalaysia.com/node/661417

Kenanga expects BNM to hold OPR at 2.75% until year end, with room for 25 bps adjustment

English

KUALA LUMPUR (March 30): Kenanga Research foresees that Bank Negara Malaysia (BNM) has reached the end of its monetary tightening cycle and will keep the overnight policy rate (OPR) unchanged at 2.75% for the rest of the year. This is predicated on a further downtrend in headline and core inflation to below 3.0% and an expected global economic slowdown amid tighter financial conditions, which could weigh on domestic growth over the next year. “We believe that the central bank’s dedication to maintaining both stable prices and sustainable economic growth is coherent with this view. “However, we reckon there is still room for the central bank to adjust the policy rate, probably with another 25-basis-point (bps) hike to 3%, should an unexpected shock to global commodity prices or global financial markets, as well as changes to local subsidy policy, lead to a resurgence in domestic inflationary pressures,” it said in a note on Thursday (March 30). The research house said BNM is not expected to cut rates in 2023 or 2024. On the current account balance, Kenanga said although it anticipates a slowdown in external activities due to weaker global demand amid rising risk of a recession, its in-house view aligns with BNM's projection that the current account balance will remain above 2.5% in 2023. “In comparison, we forecast the current account balance to expand by 2.6% of gross domestic product in 2023, mainly due to an expected increase in tourism activity and solid demand recovery from China. “Despite multiple potential risks to the global economy, we believe these factors will positively impact Malaysia's current account balance,” it said. On the ringgit, the research house is bullish on the local note in view of the weaker US dollar position due to the US Federal Reserve’s (Fed) expected pivot to dovish from hawkish, along with Malaysia's improving political landscape and economic outlook, which may attract foreign capital inflows and support the local currency. It said the strengthening of the yuan amid China’s potential robust post-reopening recovery may also help to bolster the ringgit due to its strong positive correlation. “Once the Fed begins to ease its monetary policy, potentially by 50 bps in the fourth quarter of 2023, it could lead to an increase of net capital flows into high-yielding emerging markets, benefiting the ringgit. “However, we recognise that external risks, such as escalating tensions between the US and China and the Russia-Ukraine war, could have adverse effects on the ringgit and influence its direction. Nonetheless, at this juncture, we still maintain our end-2023 US dollar/ringgit forecast at 4.11,” it added. Kenanga agreed with BNM’s view that reforms are needed to ensure that Malaysians are adequately protected during their retirement. It reckoned greater tax exemptions could be given to retirement contributions to encourage higher voluntary contributions. “Besides ring-fencing retirement funds and improving old-age social safety nets, the retirement age, currently 60, could be raised given the potential for Malaysia’s average life expectancy to continue improving going forward. “This would align with BNM’s recommendation that job opportunities for older workers be created and increased via policy measures to ensure adequate employment for individuals of all ages,” it said. Kenanga said that while raising individual and employer contribution rates may eventually be necessary, it is crucial to be mindful of disposable income levels, and to implement this alongside sufficient wage growth and stable unemployment rates.

https://theedgemalaysia.com/node/678057

EP Manufacturing partners with Grab, scooter provider Blueshark to explore green mobility

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KUALA LUMPUR (Aug 9): EP Manufacturing Bhd’s unit has signed a collaboration agreement with two leading private transportation providers to adopt usage of electric vehicles (EV) as part of its green mobility programme. In a statement on Tuesday (Aug 8), the Main Market-listed company said its wholly owned subsidiary EP Blueshark Sdn Bhd (EPSB) has inked an agreement with superapp Grabcar Sdn Bhd (Grab) and smart scooter provider Blueshark Ecosystem Sdn Bhd to jointly explore business opportunities. EPSB will work with Grab to convert 80,000 Grab driver-partners and delivery-partners from users of internal combustion engine (ICE) motorcycles to users of electric vehicle (EV) motorcycles. “Two key initiatives were announced as part of the collaboration agreement. The first of these projects is the R1 Pilot Programme, where Blueshark will provide, free of charge, 50 units of R1 EV motorcycles to selected Grab delivery partners for a product trial. “The goal of this project is to gather experiential data for Blueshark's EV motorcycles, while promoting cost saving with green mobility,” the company said. Its second initiative is the EV programme where EPSB will manufacture, assemble and distribute the Blueshark IOV Electric Motorcycle, a smart electric scooter model that Blueshark will offer to Grab's driver-partners and delivery-partners at a special offer price. EPSB will provide a factory warranty for the Blueshark IOV Electric Motorcycle. In addition, as part of the EV programme, Blueshark will provide batteries to Grab driver-partners and delivery-partners at a promotional price of RM79 per pair, per month, for the first six months, and subsequently, at RM110 per pair, per month. “Earlier on, we partnered with Blueshark with the vision of giving Malaysians a superior product, powered by the most viable energy solution and a complete ecosystem to support it. Collaborating with Grab gives EPMB and Blueshark access to an extensive user network belonging to one of the most visible brands in the gig economy today. “This is also in line with one of our shared goals with Blueshark, which is to empower Malaysians with truly accessible mobility solutions,” said EPMB group chief executive officer Ahmad Razlan Mohamed. Grab has committed to achieving carbon neutrality within its ecosystem by 2040 as part of its ESG goals for sustainable and inclusive growth. EMPB’s shares were up 2.5 sen or 2.76% to 93 sen, valuing the company at RM204.9 million.

https://theedgemalaysia.com/node/669740

EQT ups bet on pet industry with US$5.6b Dechra deal

English

BENGALURU (June 2): Swedish private equity firm EQT has agreed to buy London-listed veterinary drugmaker Dechra Pharmaceuticals for £4.46 billion (US$5.62 billion or RM25.8 billion)) in the biggest takeover deal in Britain so far this year. EQT will pay £38.75 per Dechra share in cash, the companies said on Friday (June 2), lower than the 40.70 pounds it proposed in April after the British maker of drugs for pets issued a profit warning last month. Dechra's stock, a pandemic darling that shot to a record high in 2021 after people bought more pets for company during lockdowns, has lost more than a third of its value since the all-time high. Its shares were 7.8% higher at £36.4 in morning trade. Dechra's board said it planned to support the deal, which is expected to close towards the end of the year or early next. Analysts at Jefferies, however, raised questions about EQT's basis for revising the offer price, arguing that Dechra's troubles are likely just temporary. "In our view the price reduction from the initial potential offer is disappointing," they wrote in a note to clients. Dechra blamed its profit warning in May on wholesalers taking longer than expected to de-stock but said demand from clinics and customers remained strong. The move to take Dechra private will be a loss for London's stock market, whose rules are set to be radically simplified in an effort to attract companies back to the city after it lost out on some major listings such as chipmaker Arm. Global merger and acquisition (M&A) deals sunk to a decade low by deal value — barring lockdown-hit 2020 — in the first five months of the year, due to higher interest rates, economic uncertainty and volatile stock markets, data from LSEG Deals Intelligence showed on Thursday (June 1). But healthcare was a bright spot, accounting for 15% of global M&A in January-May — one of only two sectors to see growth in deal value. EQT, which has several investments in the pet industry including vet services company IVC Evidensia and pet insurer ManyPets, said the animal health market remained attractive because of increasing pet ownership and greater focus on animal welfare. BofA and Morgan Stanley were joint financial advisers to EQT, while Investec Bank advised Dechra. Sovereign wealth fund the Abu Dhabi Investment Authority (ADIA) is participating alongside EQT in the takeover bid.

https://theedgemalaysia.com/node/659297

Pentamaster withdraws stake subscription in Taiwanese optoelectronics manufacturer Epic

English

KUALA LUMPUR (March 15): Pentamaster Corp Bhd has withdrawn its subscription of a 29.9% stake in the enlarged capital of Taiwan-based Everready Precision Industrial Corp (Epic) for US$6.78 million (RM29.89 million). In a Bursa Malaysia filing on Wednesday (March 15), Pentamaster did not provide a reason for the withdrawal, but said its wholly owned subsidiary Pentamaster InnoTeq Sdn Bhd (PISB) would pursue the return of the investment sum from Epic. “In accordance with its rights under the terms of the proposed subscription, PISB has elected to withdraw from the proposed subscription. PISB will pursue the return of the investment sum of US$6.78 million from Epic,” Pentamaster said. Last July, PISB subscribed for 16.61 million new shares in Epic at 40.79 US cents per share, following an arm's-length negotiation between the two parties. Epic is involved in the design and manufacturing of end-to-end optoelectronics solutions that cover optical molds to lenses and 3D sensing modules. Pentamaster said the deal took into account Epic's intellectual properties, technological know-how and its Greater China plans that met Pentamaster Group's business strategy objectives. It previously said the acquisition was intended to expand its business into synergistic technology solutions and applications, particularly a vertical integration for its electro-optical segment. Pentamaster's share price closed one sen higher at RM4.66, bringing it a market capitalisation of RM3.32 billion. Read also: Pentamaster takes up 29.9% stake in Taiwanese optoelectronics manufacturer for US$6.78 mil

https://theedgemalaysia.com/node/643631

GDP数据乐观 马股延续升势

English

（吉隆坡11日讯）第三季国内生产总值（GDP）数据乐观，刺激马股半天扬升1.04%。 休市时，富时隆综指上涨15.09点，挂1464.83点。 综指今早开市报1467.19点，较昨日闭市的1449.74点，高开17.45点。盘中游走于1459.54点和1467.83点。 上升股达571只、下跌股234只，另有366只无起落、1171只无交易，以及30只暂停交易。 成交量19亿8000万股，值11亿1000万令吉。 国家银行今日指出，我国第三季经济增长14.2%，得益于国内需求持续扩张、劳动力市场强劲复苏、电气与电子产品及非电气与电子产品出口强劲，以及现有政策支持。 国行总裁丹斯里诺珊霞表示，这也部分因为去年第三季严格的防控措施，促使低基数。 她还说，鉴于首9个月增长稳健，2022年全年增长将超过此前预测的7%。 马六甲证券认为，投资者如今憧憬美国联储局（FED）和国行不会这么激进升息。 “我们因而认为，这一积极势头可能会在全天延续至亚洲和本地股市。” 据报道，美国10月通胀率从9月的8.2%，放缓至7.7%，引发对高物价开始放缓的希望。 马六甲证券表示，在纳斯达克综合指数飙升超过7%后，购买势头应会延续到本地股市，尤其是科技股。 重量级股中，马银行（Malayan Banking Bhd）持平于8.64令吉、大众银行（Public Bank Bhd）扬2仙，至4.45令吉、国油化学（Petronas Chemicals Group Bhd）升4仙，挂8.68令吉、联昌国际集团（CIMB Group Holdings Bhd）增3仙，至5.51令吉，以及国家能源（Tenaga Nasional Bhd）涨12仙，报8.42令吉。 至于热门股，顶级手套（Top Glove Corp Bhd）扬8仙，挂96.5仙、XOX说（XOX Bhd）涨0.5仙，报2.5仙、Careplus Group Bhd攀3.5仙，至52.5仙、丰成综合（Hong Seng Consolidated Bhd）增2仙，报25仙，以及Advance Synergy Bhd平盘挂于13仙。   （编译：陈慧珊）   English version：Bursa extends gains at midday amid positive GDP figures

https://theedgemalaysia.com/node/677900

Aemulus stays in the red in 3Q amid slow customer expansion pace, higher operating expenses

English

KUALA LUMPUR (Aug 8): Aemulus Holdings Bhd has incurred its third straight quarterly loss amid cautious capital expenditure spending from customers expecting a slowdown in the semiconductor industry and deferment of delivery due to a slowdown in customers’ expansion pace. The Penang-based equipment vendor saw its net loss widening to RM6.9 million for the third quarter ended June 30, 2023 (3QFY2023), from RM4.69 million in 2QFY2023 and RM4.77 million in 1QFY2023. The group had reported a net profit of RM1.7 million a year earlier for 3QFY2022. In a bourse filing, the group said the latest loss was also due to higher operating expenses (including staff-related costs), research and development (R&D) expenses, and finance cost. Revenue for 3QFY2023 shrunk 77.36% to RM3.86 million from RM17.04 million a year earlier. For the cumulative nine months, Aemulus reported a net loss of RM16.36 million as opposed to a net profit of RM10.84 million in the same period of FY2022, as revenue fell 65.35% to RM18.99 million from RM54.82 million due to the slowdown in customers’ expansion pace. Aemulus expects 4QFY2023 to also see a slow recovery. “Business sentiments continue to be weak with no sign of increasing demand for all market segments at the moment,” it said. On a positive note, the group said business development and customer engineering engagement activities are progressing well and as expected. “As a measure to counter the slower performances of our conventional market segments, we are in the midst of launching new products to enter electric vehicle-related semiconductor and microcontroller or memory market segments which require minimum customisation of existing products,” it added. Aemulus’ shares settled one sen or 3.03% higher at 34 sen on Tuesday (Aug 8), valuing the group at RM227.59 million. The stock has declined 30.61% since early this year.

https://theedgemalaysia.com/node/600784

Council of Eminent Persons, Cabinet shown differing versions of 1MDB audit report, says Madinah

English

KUALA LUMPUR (Dec 22): The High Court here on Wednesday (Dec 22) heard of the differing versions of the National Audit Department’s (NAD) audited 1Malaysia Development Bhd (1MDB) financial reports for the Public Accounts Committee (PAC), and they were presented to and discussed by the Council of Eminent Persons and the Cabinet in 2018. Former auditor-general Tan Sri Madinah Mohamad on Wednesday during her examination in chief conducted by Deputy Public Prosecutor (DPP) Nadia Zulkefli said NAD director Datuk Nor Salwani Muhammad had notified her of two different versions of the audit report prepared by her department in a meeting with her on March 16, 2017. Madinah, who is testifying as the 12th prosecution witness in the 1MDB audit report tampering trial involving Datuk Seri Najib Razak and former 1MDB president Arul Kanda Kandasamy, added that the altered version of the report had several paragraphs redacted and modified compared to the original version. The former auditor-general testified that Nor Salwani had kept a copy of the original version for the purpose of requesting instructions from her, as Madinah succeeded Tan Sri Ambrin Buang, who was asked to modify the report. Nor Salwani wanted to ask Madinah whether to destroy the original version which was originally drafted before amendments were made, or should the NAD keep it as material evidence related to 1MDB. “I later came to the decision not to destroy the original audit report as it is a report which contains information and material evidence relating to 1MDB,” she added. Madinah noted that the issue of the two versions of the audit report was later raised by the Special Audit Task Force, where the authority said the differences between the versions pertained to the findings of the audit and the presence of Jho Low in one of the 1MDB board of director meetings on Sept 26, 2009. Subsequently, she testified that Nor Salwani had informed her, and they then met with the Council of Eminent Persons, chaired by former attorney-general Tan Sri Abu Talib Othman at the time, on May 31, 2018 to discuss the audit report. Madinah said she ordered a copy of the original audit report that is watermarked 09 be provided to the Council of Eminent Persons and added that a copy was also later handed over to the police on Aug 3, and to the Malaysian Anti-Corruption Commission (MACC) on Aug 16, 2018. She added that she could not expose the existence of the two versions of the audit report, as the audit report was only declassified as a government secret on May 14, 2018. Sometime in November 2018, she said she briefed then prime minister Tun Dr Mahathir Mohamad’s Cabinet on the matter and was directed to release a media statement via the NAD detailing the amendments made to the 1MDB audit report, which she released on Nov 24, 2018. Additionally, she noted that she decided to not destroy the other version of the audit report as it contained material evidence on 1MDB. She told the court that six of the 10 printed copies of the original version of the 1MDB report were distributed to the interested parties, while the remaining four were destroyed as instructed by Ambrin. Madinah, in the press release, confirmed that the original audit report on 1MDB has been altered, and that orders to do so first came from Najib. As a result of that, presentation of the audit report to the PAC — which was originally scheduled for Feb 24 — was delayed until March 4 and 7, 2016. Prior to this, Ambrin and Nor Salwani had testified in the trial that they were required to make the amendments during the Feb 24 meeting with then chief secretary to the government Tan Sri Ali Hamsa. Najib is charged with abusing his power to amend the 1MDB report before it was submitted to the PAC to protect himself from disciplinary, civil and criminal actions. Also in the dock is Arul Kanda, who is charged with abetting the former premier. The charges are framed under Section 23(1) of the MACC Act 2009, which specifies a jail term of up to 20 years and a fine of no less than five times the amount of gratification or RM10,000, whichever is higher. The hearing before Justice Mohamed Zaini Mazlan continues this afternoon with former 1MDB chairman Tan Sri Mohd Bakke Salleh slated to testify. For more stories on the 1MDB audit report tampering trial, click here. (This story has been amended for accuracy.) Read also: A-G confirms 1MDB audit report altered on Najib's order; Jho Low's name removed

https://theedgemalaysia.com/node/640466

Malaysia's September 2022 car sales increased 35% to 67,659 units — MAA

English

KUALA LUMPUR (Oct 18): The number of cars sold in September jumped by more than a third or 34.63% to 67,659 from 44,227 a year earlier as automotive companies continued to fulfil many of the bookings received prior to June 30, the Malaysian Automotive Association (MAA) said in a statement on Tuesday (Oct 18). Under Budget 2023, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz announced that the import duty and excise duty exemptions for completely built-up electric vehicles (EVs) would be extended for another year to Dec 31, 2024. In addition, car importers looking to bring in EVs would not need to pay the approved permit fee as it would be exempted until Dec 31, 2023. According to MAA, sales of passenger vehicles in September increased to 60,060 units from 38,258 in September 2021, while sales of commercial vehicles were higher at 7,599 units compared with 5,969 a year ago. Year to date (YTD), the sales volume up to end-September was 62% higher than the corresponding period in 2021. The total industry volume for September was 0.1% higher than that for August 2022 at 67,560 units. Total vehicle production was up year-on-year at 69,389 units in September from 45,972 last year, while the YTD figure stood at 508,761 units versus 303,996 in the corresponding period last year. Looking ahead, MAA expects car sales in October to be maintained at September level. However, the association added the shortage of chips and components will continue to affect some makes.

https://theedgemalaysia.com/node/664414

US Customs blocks fake Botox shipments including from Malaysia

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KUALA LUMPUR (April 25): The US Customs and Border Protection (CBP) intercepted more than 700 unapproved Botox and derma fillers during Operation No Tox from April 10-14. In a statement on Monday (April 24), CBP said its officers at the Port of Louisville focused on suspect shipments of Botox imported without Food and Drug Administration (FDA) approved licence, permit, authorisation, or prescription attempting entry into the US. The officers’ primary focus was on merchandise exported from South Korea, Malaysia, Indonesia, and Turkey described as lotions, creams, skin care and other related merchandise. It said operation No Tox was an enforcement effort between the Port of Louisville, FDA, and Homeland Security Investigation. The CBP said the operation helped protect public health and safety, and corporations, as well as support the agency’s overall goals. Additionally, prior to this operation, since Oct 1, CBP officers in Louisville have made over 100 Botox seizures, it said.   Louisville Port director Thomas Mahn said consumer health and safety are key concerns when CBP officers enforce cosmetic imports. “Unapproved products that you inject could seriously hurt you. “They are manufactured in unregulated and unsanitary facilities with ingredients that you cannot be sure are authentic,” he said. The CBP said Botox, or botulinum toxin, is restricted by the US FDA and cannot be imported into the US without proper documentation. The agency said the FDA provides guidance on how human drugs can be legitimately imported into the US while meeting strict safety requirements.

https://theedgemalaysia.com/node/621960

工程与建筑赚幅下跌 吉打建筑首季净亏翻倍

Mandarin

（吉隆坡30日讯）截至今年3月杪首季（2022财年首季），吉打产业发展商吉打建筑（Bina Darulaman Bhd）的净亏翻倍至600万令吉，一年前为300万令吉，主要是工程、建筑及采石部门的赚幅下跌所致。 吉打建筑指出，该部门在当季录得390万令吉税前亏损，一年前则录得70万令吉税前盈利，因建筑活动和道路铺设工程的赚幅较低。 因此，该集团的每股亏损扩大至1.97仙，2021财年首季为0.99仙。 2022财年首季营业额上扬5.2%至3146万令吉，一年前报2991万令吉。 截至下午3时51分，该股跌3仙或8.57%，至32仙，市值约9723万令吉。   （编译：魏素雯）   English version：Bina Darulaman doubles net loss in 1Q due to lower engineering, construction margins

https://theedgemalaysia.com/node/660822

MIDF：原材料价格波动将影响大马手套制造商生产成本

Mandarin

（吉隆坡27日讯）MIDF研究维持给予手套领域的“负面”评级，并指原材料价格波动将会影响马来西亚手套制造商的生产成本，包括贺特佳（Hartalega Holdings Bhd）、高产柅品工业（Kossan Rubber Industries Bhd）及顶级手套（Top Glove Corp Bhd）。 券商给予贺特佳“中和”评级，目标价为1.80令吉，高产柅品工业和顶级手套则获得“卖出”评级，目标价分别为95仙及55仙。 券商周一在报告中写道，手套制造商的原材料价格短期内仍处于过山车状态。 “据了解，某些买家可能会在短期内补充库存，因预计旧库存将在2023年底耗尽。” “然而，鉴于大多数国家在重新开放边境后，已过渡到流行病阶段，我们预计补充库存活动将保持低迷。” “马来西亚橡胶手套制造商协会（Margma）估计，今年全球手套需求将会恢复到疫情前水平（3000亿只手套），2018年及2019年分别为2800亿只和3400亿只。” MIDF表示，随着年度增长正常化，预计全球手套需求将会恢复到疫情前水平。 券商指出，在撇除暂时关闭的低效率工厂后，行业利用率从2022年第四季的35%至40%，降低至2023年首季的32%至35%。 目前，券商研究的所有手套制造商的交易价格，均比两年历史平均价格对账面价格折价33%至52%。 “考量到这些公司的盈利能力面临持续下行风险，我们认为这是合理的调整。” “因此，在我们获得更多关于客户对平均销售价格上涨的反应之前，我们暂时不谈抄底（bottom fishing）。” MIDF仍谨慎看待前景，因为竞争持续激烈及手套需求正常化，导致手套供过于求。 “因此，我们维持观点，即至少在未来一年内，供需动态不太可能恢复正常。” “我们的心水股是贺特佳，因为其拥有19亿令吉净现金（相当于市值的27%），这可以作为任何潜在下行风险的缓冲。同时，我们看好贺特佳的另一个原因是，尽管面临多种不利因素，该公司仍有能力产生正面的营运现金流。”   （编译：魏素雯）   English version：Raw material price fluctuation will affect Malaysian glovemakers' production cost, says MIDF

https://theedgemalaysia.com/node/671491

Anwar says will discuss sale of KidZania Singapore with Khazanah

English

CYBERJAYA (June 14): Prime Minister Datuk Seri Anwar Ibrahim said he will discuss with Khazanah Nasional Bhd’s management on the sale of KidZania Singapore, which is said to be for a price that was too low. “I will hold a meeting with them on this,” Anwar, who is also finance minister and Khazanah chairman, said, when asked by the media to comment on a report about the sale of the indoor theme park after he performed Friday (June 16) prayers at Masjid Raja Haji Fisabilillah here.  It was reported that Khazanah and Boustead Holdings Bhd have offloaded the discontinued KidZania Singapore to Singapore-listed Sim Leisure Group Ltd for S$110,000 (RM380,000). KidZania Singapore, which opened in April 2016 on Sentosa Island, Singapore, closed its doors permanently in 2020 after the Covid-19 pandemic. Theme Attractions Resorts and Hotels Sdn Bhd, a subsidiary of Khazanah, owned an 80% stake in Rakan Riang Pte Ltd (Rakan Riang Singapore), which operated KidZania through a joint venture with Boustead Curve, a subsidiary of Boustead Holdings.  It is believed that Khazanah and Boustead initially injected S$48 million into the project. On a separate development, Anwar said he had not been informed about the Inland Revenue Board’s (LHDN) alleged raid on the Opposition leader Datuk Seri Hamzah Zainudin’s house as reported. “That is LHDN’s matter, the investigating authorities’ business. I was not informed,” he said. According to media reports, the Larut member of Parliament’s house in Damansara, Kuala Lumpur, was raided by LHDN last Wednesday due to allegations of unreported taxes. Read also: Khazanah-Boustead JV sells discontinued KidZania Singapore to Singapore-listed Sim Leisure for RM380,000

https://theedgemalaysia.com/node/672409

SPToto, 7-Eleven, BFood, Bursa, Boustead, AmBank, Sunway REIT, Affin Bank, Tiong Nam, Yinson, Kumpulan Kitacon, Eco World Development, HHRG, Globaltec Formation, MSM, TM, Maxis, Astino, Pertama Digital, Apollo Food, Jaycorp, Beshom and NWP

English

KUALA LUMPUR (June 23): Here is a brief recap of some corporate announcements that made the news on Friday (June 23) involving Sports Toto Bhd, 7-Eleven Malaysia Holdings Bhd, Berjaya Food Bhd, Bursa Malaysia Bhd, Boustead Holdings Bhd, AMMB Holdings Bhd, Sunway Real Estate Investment Trust, Affin Bank Bhd, Tiong Nam Logistics Holdings Bhd, Yinson Holdings Bhd, Kumpulan Kitacon Bhd, Eco World Development Group Bhd, HHRG Bhd, Globaltec Formation Bhd, MSM Malaysia Holdings Bhd, Telekom Malaysia Bhd (TM), Maxis Bhd, Astino Bhd, Pertama Digital Bhd, Apollo Food Holdings Bhd, Jaycorp Bhd, Beshom Holdings Bhd and NWP Holdings Bhd. Sports Toto Bhd (SPToto) via its wholly-owned subsidiary Magna Mahsuri Sdn Bhd (MMSB) has bought shares in sister companies 7-Eleven Malaysia Holdings Bhd (SEM) and Berjaya Food Bhd (BFood) for RM38.78 million cash. Following the share purchases, SPToto and its subsidiaries now hold about 25.42 million shares or about 2.29% stake in SEM and about 7.46 million shares or about 0.43% stake in BFood. Bursa Malaysia Bhd said it has been the target of scams with ill-intentioned impersonations of the exchange and its management on social media platforms, in particular its chief executive, and that an alarming number of them are found on Facebook. Boustead Holdings Bhd is set to be delisted on June 28 from the Main Market of Bursa Malaysia Securities Bhd. Its entire issued share capital will be removed from the official list, in accordance with the Main Market Listing Requirements. In an earlier filing, Lembaga Tabung Angkatan Tentera (LTAT) had posted a compulsory acquisition notice to dissenting holders on June 16, saying that it will pay for the shares mandatorily purchased from them in cash. AMMB Holdings Bhd (AmBank) has clarified that the recent media reports involving AmBank Group regarding mergers and acquisitions (M&A) are purely speculative. “If and when we have anything pertinent to announce, in accordance with best practices and corporate governance, a Bursa announcement will be made,” AmBank told Bernama. Sunway Real Estate Investment Trust (SunREIT) has joined forces with HSBC to execute its first sustainability-linked cross currency swap (CCS) in Malaysia, which is worth RM200 million. The parties said the CCS hedges both the currency and interest rate risks of SunREIT’s foreign currency loan with HSBC, while offering direct sustainability-linked incentives. Affin Bank Bhd said it has successfully issued RM500 million additional Tier 1 Capital Securities (AT1CS) under the RM3 billion AT1CS programme with a distribution rate of 5.7% per annum. The perpetual non-callable bond has a tenure of five years, with an A3 Rating assigned by RAM Rating. First callable date for the bond is June 23, 2028. Tiong Nam Logistics Holdings Bhd has signed a logistic services agreement with Chery Malaysia which will see Tiong Nam handling Chery's spare parts warehousing and transportation in Malaysia, including heavy-duty vehicle models such as TIGGO 8 PRO and OMODA5. Yinson Holdings Bhd has signed a Memorandum of Understanding (MOU) with PLUS Malaysia Bhd to jointly develop the country’s first chargEV hyperpower direct current fast charging hubs along the PLUS highway. Yinson shared that the estimated investment cost for each hyperpower fast charging hub will range from RM10 million to RM20 million. One of the hyperpower fast charging hubs will be located at the PLUS Seremban rest and service area (South-bound), while another is still in the discussion. Yinson also reported that its net profit rose 73.33% to RM208 million for the first quarter ended April 30, 2023 (1QFY2024), from RM120 million a year earlier, on the back of higher contribution from engineering, procurement, construction, installation and commissioning (EPCIC) business activities. Quarterly revenue tripled to RM3.02 billion from RM1.01 billion. Kumpulan Kitacon Bhd has secured a RM50.3 million construction project in Ijok, Kuala Selangor. Its wholly-owned subsidiary Kitacon Sdn Bhd received the contract from Eco World Development Group Bhd’s 60%-owned unit Paragon Pinnacle Sdn Bhd for the proposed construction of 80 units of single-storey terrace houses, one unit of electrical substation, and emblem fencing under package one. The second package involves the construction and completion of 104 units of single-storey terrace houses and another electrical substation unit. HHRG Bhd has proposed to acquire a 7.23-acre piece of leasehold industrial land in Penang for RM15.74 million via cash and share issuance. The biomass material manufacturer plans to utilise the industrial land as the site of its new corporate headquarters. HHRG said the group received a letter of irrevocable offer from canned food maker Jeenhuat Foodstuffs Industries Sdn Bhd for HHRG to purchase the land for RM15.74 million.   The Indonesian Ministry of Finance has given the indirect subsidiaries of Globaltec Formation Bhd tax waivers on their coal-bed methane (CBM) production-sharing contracts (PSC) in South Sumatra. In a filing with the Australian Stock Exchange, NuEnergy Gas Ltd — in which Globaltec owns a 65% stake — announced that its wholly-owned subsidiaries Dart Energy (Tanjung Enim) Pte Ltd and Dart Energy (Muralim) Pte Ltd were awarded the tax exemption facilities on June 22. MSM Malaysia Holdings Bhd is now a part of the Asean Sugar Alliance (ASA) which will help the refined sugar producer to expand its export market. MSM said the ASA membership would further support MSM’s vision to grow its export market share from 6% to 12% to 15% in the region. Telekom Malaysia Bhd (TM) has entered into a collaboration with Maxis Bhd that will see TM getting access to Maxis' 4G Multi Operator Core Network (MOCN), as well as 4G and 2G domestic roaming services to enhance its mobile connectivity nationwide. Through this, TM will extend its 4G coverage across the country by leveraging Maxis’ radio access network infrastructure and improve Unifi Mobile's population coverage to above 95%. Astino Bhd saw an 8.1% increase in net profit to RM12.71 million for the third financial quarter ended April 30, 2023 (3QFY2023) versus RM11.76 million a year earlier, thanks to an increase in overseas sales with higher profit margins. Quarterly revenue, however, dropped by 0.4% to RM155.87 million from RM156.49 million a year ago, mainly due to weakening steel prices. Pertama Digital Bhd received a notice from Australia's Macquarie Bank that the financial institution will subscribe for the company's 425,000 placement shares at an issue price of RM2.69 per share. The loss-making group said the placement shares were allotted on Friday and are expected to be listed on June 27.   Boosted by higher sales, Apollo Food Holdings Bhd's net profit jumped 77.74% to RM6.8 million in the fourth quarter ended April 30, 2023 (4QFY2023) from RM3.83 million in the previous year's corresponding quarter. Quarterly revenue rose 5% to RM60.27 million from RM57.34 million. The confectionery maker proposed a final dividend of 15 sen per share — raising its FY2023 payout to 25 sen, the same as in FY2022. The entitlement and payment dates will be determined later. Jaycorp Bhd posted 40.73% lower net profit at RM5.47 million in the third quarter ended April 30, 2023 (3QFY2023) from RM9.23 million a year ago, due to the absence of a gain on disposal of two subsidiaries. During the quarter, revenue dipped 32.68% to RM61.47 million from RM91.3 million. Beshom Holdings Bhd saw its net profit halved to RM2.66 million for the quarter ended April 30, 2023, from RM5.67 million in the same quarter a year ago, reflecting lower revenue as weak consumer confidence and lower willingness to spend impacted its multi-level marketing business, and higher marketing costs. Revenue fell 13.97% to RM38.94 million from RM45.27 million. Beshom’s board recommended a final dividend of 2 sen per share.   Timber product manufacturer NWP Holdings Bhd’s shares will be traded under its new name Auro Holdings Bhd, with effect from next Tuesday (June 27), to reflect a new corporate identity under its business activities and brand image. The counter’s new short name will be “Auro”, replacing the old stock short name “NWP”.

https://theedgemalaysia.com/node/614575

FBM KLCI expected to stay choppy in April

English

KUALA LUMPUR (April 1): Inter-Pacific Securities Sdn Bhd said it sees the key FBM KLCI index continuing to drift over the near term as leads are still far and in-between. In its daily bulletin on Friday (April 1), the research house said the overnight weakness among key global equities could further leave market conditions guarded at the start of the new quarter. It said this may see the key index remaining mostly sideways due to the still insipid conditions where concerns over inflation, the Russia/Ukraine war and their corresponding impact on economic and earnings growth lingers in the background. “As such, the FBM KLCI may trend within the 1,580 and the 1,600 levels for the time being. “There is a minor support at the 1,585 level, while the interim resistance is at the 1,590 level,” it said, Inter-Pacific said many broader market shares and lower liners also made headway on Thursday to end the first quarter, but the continuing lack of following is likely to keep conditions subdued heading into the weekend. “For the most part, however, the sideway trend is set to prolong in the absence of significantly positive leads,” it said. Hong Leong Investment Bank said that after sliding 21 points m-o-m in a volatile trading in March (hovered within 1,540.9-1,620.4 band), the FBM KLCI is expected to stay choppy in April (supports: 1,545-1,561-1,575; resistances: 1,600-1,620-1,642) amid a prolonged Russia-Ukraine conflict (despite ongoing ceasefire talks), Shanghai’s restricted lockdowns, elevated inflation and worries of the Fed can achieve a “soft landing” for the US economy. However, in its traders’ brief the research house said the downside risk is likely to be well-cushioned by: i) persistent foreign net inflows; ii) high crude oil and CPO prices; iii) Malaysia’s shift into endemic phase and reopening of international borders; and iv) a possible “election rally” on the horizon.

https://theedgemalaysia.com/node/620065

Cover Story: Telekom moves further beyond homes with 5G

English

This article first appeared in The Edge Malaysia Weekly on May 16, 2022 - May 22, 2022 TELEKOM Malaysia Bhd (TM) is guiding a second consecutive year of revenue growth in 2022, after stemming three straight years of top-line decline last year — a testament to the efficacy of its three-year transformation plan that runs until 2023. Its profits would have grown year on year had it not been for higher amortisation and taxes. TM is currently favoured by equity analysts over its local peers in the mobile telecommunications space, given that its high-speed broadband (HSBB) infrastructure and submarine cable connectivity continue to be the backbone of the country’s digitalisation efforts and transition to 5G. The telco will be getting RM2 billion over 10 years from leasing its fibre to Digital Nasional Bhd (DNB), which is building the country’s 5G single wholesale network (SWN). Yet, TM managing director and group CEO Imri Mokhtar knows that the country’s oldest telco needs to up its game fast to capture new growth areas in the digital and enterprise space, as well as better defend its home turf, as other larger mobile operators successfully attract more mobile phone subscribers to also take up home broadband packages that are offered using wholesale capacity on TM’s HSBB network. To better serve the enterprise market and support the nation’s digital transformation, TM created Credence, a new unit for digital services, that will be eyeing mergers and acquisitions (M&A) as well as joint ventures to bolster its proposition and capabilities in the digital space. Not only will Credence complement TM’s business-to-business arm, TM One, the unit will be positioned to seek business in as well as outside Malaysia and may eventually be spun off as a standalone entity if all goes well, says Imri. “We are actively scouting the market [for acquisitions]. If we find the right opportunity, we will make the announcement.” (See “On the prowl for M&A, JV to grow new digital services unit Credence” on Page 53.) On the consumer front, the battle for home broadband subscriptions heated up further this month with dominant pay-TV provider and content aggregator Astro Malaysia Holdings Bhd allowing potential customers to sign up for Astro Fibre broadband without taking up any TV offerings. Obviously targeting higher-end customers to whom it can subsequently market content offerings (as reflected by the larger pricing differential for higher-end versus lower-end packages), Astro Fibre 800Mbps headline pricing of RM249 undercuts the RM349 for TM’s unifi Home 800Mbps (that comes with unifiTV plus unifi Mobile postpaid SIM). Astro’s 800Mbps headline pricing is also more aggressive than its sister company Maxis Home Fibre’s RM299 per month and Digi Business Fibre’s RM318 bundles for the same speed. Astro is not the only rival wooing top-end customers via aggressive pricing. TIME dotCom Bhd’s TIME Fibre Home 1Gbps is RM199 per month (RM500 installation fee waived with a 24-month contract) while Celcom Home Fibre offers 1Gbps at RM229 per month but only in Sabah, according to data on their respective websites at the time of writing. The aggression comes as no surprise, given that Malaysia’s pay-TV penetration is over 80% and mobile phone penetration is currently more than 144%, compared with 41.4% for fixed broadband at end-2021. Mobile phone penetration was already more than 130% six years ago when TM re-entered the mobile market in 2016 with the launch of webe (which has since been rebranded as unifi Mobile) following its acquisition of Packet One Sdn Bhd. That more players are positioning to capture the home and office broadband market means the battle for TM is one of retaining, rather than just upselling to, its 2.78 million fixed broadband subscribers in homes nationwide (90% unifi, 10% Streamyx), almost 400,000 small and medium enterprises and 9,000 corporate and enterprise customers across different verticals including healthcare, education and manufacturing. TM will also seek to convert an undisclosed number of voice-only fixed-line users on its legacy copper network over the next three to five years. Imri says that with 5G, TM can market unifi Mobile more effectively to its home, corporate and enterprise customers and offer converged solutions packages to its existing customers who may otherwise be lured away by mobile operators that can already do the same. “It was because there was a gap [in offering] that TM [re-]entered mobile six years ago,” he explains, relating the desire to serve customers outside of the home or office, just like mobile operators can cater to customers at home or in the office with access to TM’s HSBB network. “The approach is not standalone mobile but more as a bundle to our existing customers — natural since mobile penetration is more than 140% and mobile operators are moving into homes. So, TM is doing the opposite by moving outside the home [and offices],” he elaborates. Describing the 75-year-old telco as “a late entrant” to the mobile scene, Imri concedes that there were “some challenges” in rolling out its mobile network. The differential in mobile network coverage is among the key reasons its presence in the mobile space had been underwhelming after six years, resulting in some deeming it as a “half mobile player” despite owning the coveted HSBB network infrastructure and having access to spectrum in the 850MHz, 2300MHz and 2600MHz bands. TM does not disclose the number of unifi Mobile subscribers, but it is understood that there are about one million of them, most of whom are also broadband subscribers. That is just a fraction of the 47.2 million mobile phone subscribers (70% prepaid) and 42.02 million mobile broadband subscriptions as at end-2021, the Malaysian Communications and Multimedia Commission’s (MCMC) data show. “But we do believe the landscape will change with 5G. With the industry moving to an SWN model, where access to the same network is provided to all licensees, what was an advantage or handicap before on 4G, which is the network, will [become] a level playing field,” says Imri. “The move to a service-based competition rather than a network-based competition is already happening in the fibre space. In addition to the 2.78 million unifi customers, there are another half a million users [customers of rival operators] that are on the same network that TM is supporting on fibre. It is interesting to see the same play out in the mobile space. I believe it is the consumers and businesses that will benefit as the focus of innovation and investment will be more on services and solutions by the telcos rather than investment in [duplicate] infrastructure.” Most of those half a million customers riding on TM’s HSBB network are likely Maxis customers. Maxis had 560,000 home and business fibre connections as at end-March, up from 536,000 at end-2021 and 444,000 at end-2020. Maxis fibre average revenue per user (Arpu) increased 3.8% year on year to RM109 per month in 2021 from RM105 per month in 2020, according to disclosures in its 2021 annual report. That compares with RM141 a month for unifi and RM93 per month for Streamyx as at 4Q2021. Digi.Com had 16,500 fibre subscribers (Arpu: RM124 per month) at end-March, up from 12,600 (Arpu: RM116 per month) at end-2021. There is no breakdown of Celcom’s home fibre subscribers in Axiata Group Bhd’s 4Q2021 results report or 2021 annual report. TIME, which serves multi-dwelling premises like condominiums in the Klang Valley, Penang and Johor, also did not provide fibre subscription numbers in its 4Q2021 results report. There are opportunities to upsell with only 14% or 455,500 of the country’s 3.25 million households with fixed broadband subscribers taking packages with speeds of at least 500Mbps at end-2021, according to the statistics provided by MCMC. Including non-households, the ratio is 14.3% or 533,700 of the country’s 3.73 million fixed broadband subscribers (see Chart 1). Given that the MCMC data also show about 46% or 1.7 million fixed broadband subscribers (including non-households) and close to 28% of the country’s 45.7 million mobile broadband subscriptions were in the Klang Valley at end-2021, the availability of widespread and reliable 5G coverage there may well change the profile of broadband subscriptions according to speeds in the country. While the government in March agreed to cede 70% equity in DNB to telcos (negotiations targeted to conclude by end-June), there is no change to DNB’s aims to reach 80% population coverage by end-2024. Coverage is supposed to reach 40% by year end (Penang, Johor, Selangor, Negeri Sembilan, Perak, Sabah, Sarawak) and 70% by end-2023. When launching 5G in Putrajaya, Cyberjaya and parts of Kuala Lumpur in mid-December last year, DNB told reporters that users at the weakest point of 5G coverage would receive 100Mbps on a 5G-compatible device. Average speeds where 5G has been rolled out are above 600Mbps, says DNB’s website. Imri does not disclose how many unifi and Streamyx subscribers in the 5G coverage areas have packages of less than 100Mbps, but notes that TM continues to upgrade its offerings to better serve customers. At end-2021, some 1.27 million households or 39% of fixed broadband subscriptions were for speeds lower than 50Mbps, MCMC data show. About 46% of fixed broadband subscriptions were in the 100Mbps to 500Mbps range. Asked whether the minimum 100Mbps speed on the 5G network would be a threat to TM’s fixed broadband take-up, Imri replies, “There will be an impact on new fixed broadband sign-ups, especially from B40 households, whom today are mobile-centric individuals and households. However, we don’t expect this impact to be significant as mobile usage is limited by the shared capacity of each cellular tower as well as data caps of mobile packages, while fixed broadband is designed to meet the rapidly growing demands of households and businesses, which expect unlimited and uninterrupted data streaming experience.” Tight-lipped when asked about details of TM’s subscribers on its legacy copper wires and their contribution to group earnings, Imri cites the experience of migrating Streamyx subscribers to better unifi packages. “There will be a drop in customers as we migrate from copper to fibre. However, the net impact is expected to be positive once the migration exercise is completed,” says Imri. “The migration impact and cost will be offset by network savings and the sale of copper cables. Thereafter, it will be net positive on our financials,” he adds, without providing specifics on the value of the asset and potential savings from the copper network shutdown, which includes that for electricity and maintenance. According to MCMC data, as at end-2019, there were 2.2 million Direct Exchange Lines (DELs) or analogue fixed-line telephone subscriptions (34% of 6.47 million total fixed-line subscriptions, which includes Voice-over-Internet Protocol (VoIP) and other fixed wireless equivalents and public payphones) — half that of the 4.6 million in 2001, with 73% being residential and 27% business. While emphasising the need for TM to grow its profits as a public-listed company, Imri lets on that the RM2 billion it is charging DNB over 10 years is a price tag that takes into consideration the national interest because it is a government-linked entity that has public service obligations — attesting to its commitment to infrastructure sharing. “If we charge more than RM2 billion, it goes to the cost of DNB’s 5G rollout that will be passed on to consumers.” He says TM — like the four larger mobile operators Celcom, Digi, Maxis and U Mobile — had also been invited to take up part of the 70% equity stake that the government is offering to telcos. However, he is tight-lipped on negotiations over how much TM would have to pay every month, quarter and year in wholesale payments to access DNB’s network and offer 5G services, as well as its potential impact on its financials going forward. Negotiations are still targeted to be completed by end-June at the time of writing (see “RM26 bil lost from top telco stocks reflects profit pain, 5G uncertainties” on Page 50). “So, TM’s interest in 5G comes at three levels. The first is as a network partner [by providing] the fibre backhaul, which is the RM2 billion over 10 years. That will be gradual, in line with the rollout [ramp up in capacity] and not a straight-line RM200 million a year,” says Imri. “The second is network wholesale [purchase of 5G capacity from DNB] and the third is equity. We are interested and have registered our interest with the government, [but we] need to see the valuations and terms.” Asked whether TM would be prepared to part with its HSBB network that cost RM11.3 billion to build (RM8.9 billion excluding RM2.4 billion from the government), if offered the right price while continuing to have wholesale access to it, Imri says there is already structural separation within TM from an accounting perspective. “As long as TM is fairly compensated like how it has been done in other countries, it is something that can be considered and ultimately decided by shareholders. Personally, I don’t believe that is a necessity. It is only a necessity if there is a need in the market. It is a regulated service [and] we believe we have been serving the market in a fair manner. Otherwise, we wouldn’t see in addition to the 2.78 million unifi customers, the 550,000-plus [ports for customers of rivals riding on the HSBB network to offer fibre broadband]. Competition is flourishing,” Imri says, noting that the government has a golden share in TM, though Khazanah Nasional Bhd only has a 20.11% stake and Kumpulan Wang Persaraan (Diperbadankan) has 10.38%. “From a regulatory perspective, if there is market failure, then one should consider other models. But there isn’t any market failure today because the competition is growing,” he points out, adding that there would also be national security considerations as it also serves the military, police and government networks. Elaborating on ongoing cost-optimisation efforts, Imri notes the rental savings when most of the staff move out from Menara TM in Jalan Pantai Baharu (except the top five floors of the 55-storey building) in January 2023 to its own premises in Cyberjaya, where its R&D centre and 400,000 sq ft Tier III Klang Valley Core Data Centre are located. “We continuously measure and transform ourselves to deliver on our market guidance and aspiration, [but] improvements all go back to the fundamental belief that, all else being equal, it is the customer experience that makes the difference,” says Imri, when describing how his son chose who to buy from because of better pre-sale advice. “Everyone has a floor [when it comes to price]. That’s why we have to work on a winning customer experience [and be a] human-centred technology company.”   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/624555

Kossan, Caely, Cheetah, BAuto, TH Plantations, Axiata, Digi, TSR Capital and LKL

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KUALA LUMPUR (June 17): Here is a brief look at some corporate announcements and news flow on Friday (June 17) involving Kossan Rubber Industries Bhd, Caely Holdings Bhd, Cheetah Holdings Bhd, Bermaz Auto Bhd, TH Plantations Bhd, Axiata Group Bhd, Digi.com Bhd, TSR Capital Bhd and LKL International Bhd. Kossan Rubber Industries Bhd founder Tan Sri Lim Kuang Sia had in recent days raised his indirect stake in the rubber glove manufacturer after buying 7.06 million shares in his first Kossan share buy in about three months after the Employees Provident Fund (EPF) sold Kossan shares on the open market as investors evaluated the impact of the Covid-19 vaccine-led economic recovery on the rubber glove manufacturing sector. Datuk Jovian Mandagie said lingerie maker Caely Holdings Bhd made a false announcement to Bursa Malaysia on Tuesday (June 14) regarding his alleged appointment as the executive vice chairman (EVC) of the company because there were no agreements indicating his acceptance of the appointment. Mandagie who is clothes retailer Cheetah Corp (M) Sdn Bhd's creative director, however, admitted that he attended a meeting with Caely representative Datuk Loh Ming Choon on Monday to discuss a potential collaboration with Caely. Cheetah Corp is an operating entity under Cheetah Holdings Bhd. Similarly, just three days after Mandagie and Sandraruben Neelamagham were appointed as board members in Caely, the lingerie maker has announced the retraction of the appointments.  Notably, Jovian is the son-in-law of Prime Minister Datuk Seri Ismail Sabri Yaakob. Meanwhile, just a day after the board of Caely lodged a police report denouncing the validity of the extraordinary general meeting (EGM) held on Wednesday (June 15), the requisitionists said that they have filed a legal action against Caely to, amongst others, seek a declaration that the EGM was validly held. The requisitionists are also seeking an injunction to restrain the incumbent Caely board from acting and/or holding themselves as directors, pending the determination of the validity of the EGM. Bermaz Auto Bhd issued a fourth tranche of sukuk wakalah totalling RM100 million, under its RM500 million Islamic Commercial Papers (ICPs) programme, with the sukuk having a tenure of six months from the date of issuance. The proceeds raised may be used for refinancing existing financing or debt obligations (including any maturing sukuk wakalah) as well as for working capital and investment purposes. TH Plantations Bhd, the plantation arm of Lembaga Tabung Haji, has completed the lodgement of a sukuk wakalah programme of up to RM1.08 billion in nominal value with the Securities Commission Malaysia. TH Plantations noted the programme will have a perpetual tenure, with the proceeds of each sukuk wakalah issued under the programme utilised to finance or refinance any existing or future Islamic financing of the issuer, including the outstanding sukuk issued under TH Plantations unit THP Suria Mekar Sdn Bhd's existing sukuk murabahah programme of up to RM1.2 billion. The proceeds will also be used to finance TH Plantations group's shariah-compliant business operation and for working capital purposes. Axiata Group Bhd and Digi.com Bhd need more time to fulfil conditions that have been set out in the conditional share purchase agreement (SPA) signed on June 21, 2021 to merge their local mobile service operations. The two telcos announced to the stock exchange that the duo have agreed to extend the current longstop date on June 21 under the proposed merger of Celcom Axiata and Digi.com’s mobile telecommunication network operations to Dec 31 this year. Property and construction group TSR Capital Bhd is disposing of a property in Port Dickson to Malaysia's McDonald's licensee Gerbang Alaf Restaurants Sdn Bhd. TSR Capital said it is selling part of a land measuring 36,617 sq ft together with a McDonald's restaurant erected on it for RM6 million. LKL International Bhd has proposed to undertake a renounceable rights issue with free warrants to raise up to RM58.3 million to fund its diversification into the pharmacy business. The hospital and medical furniture manufacturer is also planning a share consolidation exercise by consolidating every 10 existing shares into one share.

https://theedgemalaysia.com/node/619541

LTAT eyes first international public equity exposure in higher dividend push

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KUALA LUMPUR (May 12): Malaysia’s Armed Forces Fund Board, which is eyeing its first international public equity exposure, hopes to more than double its fixed income or bond investments to 20% of total assets as the fund aims to raise its annual dividend payout to 5% for members, according to chief executive Datuk Nazim Rahman. The Armed Forces Fund Board, also known as Lembaga Tabung Angkatan Tentera (LTAT), was established in 1972 as a statutory body that provides retirement savings and benefits for officers and members of the Malaysian Armed Forces. As of Dec 31, 2021, LTAT had assets under management of close to RM9.7 billion. “We are starting to get exposure to the international equity market by the third or fourth quarter this year (2022). We will do that through external fund managers as well apart from having some of the funds managed internally. “Besides [exposure to the international equity market], we are also increasing our exposure in fixed income, from the current [allocation at] about 8% to about 20%. The management of the fund [for fixed income investments] will also be done through both internal and external fund managers,” Nazim said. Nazim was speaking during the MIDF Conversations event which was held virtually on Thursday (May 12). MIDF group managing director Datuk Charon Mokhzani was the moderator for the event. Nazim said LTAT hopes to achieve and sustain its proposed annual 5% dividend payout from 2022 onwards by diversifying its investments. Looking back, he said LTAT declared a 4.1% dividend for members in 2021 after paying 3.5% in 2020, 2.5% in 2019 and 2% in 2018. “So, what we will see over the next five years is LTAT achieving its objective of the strategic asset allocation framework, the right mix of assets within its portfolio that covers all the asset classes. “This will translate into providing that stable and sustainable return. We will start at 5% (by the end of 2022) and that will be the figure that we hope to achieve over the long term,” Nazim said. As at March 31, 2022, LTAT’s strategic asset allocation comprises a 44.1% portion for public equities, followed by real estate at 27.3%, according to him. He said LTAT’s strategic asset allocation included portions for private equity at 13.3% and fixed income at 8.4% while the money market and cash segment and strategic investments made up 4% and 2.8% respectively. On LTAT's environmental, social and governance (ESG) framework, Nazim said LTAT’s priority is on the governance side.  “We are putting in place the new policies and guidelines for internal practices relating to investment, finance risk management [and] human capital to ensure the due processes are adhered to,” he said. Nazim said LTAT has set up an integrity department, with an integrity committee in place at the board level, to work closely with the Malaysian Anti-Corruption Commission (MACC).

https://theedgemalaysia.com/node/651010

证监会批准锐鼎发展在主板上市

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（吉隆坡9日讯）产业发展商锐鼎发展（Radium Development Bhd）获得证券监督委员会（SC）批准，在大马交易所主板进行首次公开募股（IPO）。 自2013年起，锐鼎在吉隆坡打造高层住宅项目，发展总值（GDV）达14亿9000万令吉。 截至2022年8月31日，建竣项目包括Vista Wirajaya、Vista Semarak、Platinum OUG Residence及Vista OUG（全已售罄），而Platinum Splendor Residensi Semarak已售出99.93%。 锐鼎表示，发展中项目的累积发展总值为14亿5000万令吉。 这些吉隆坡城市项目计有PV9 @ Taman Melati、Vista Wirajaya 2、Vista Sentul Residences及R Suite Chancery Residences，计划在截至2025年12月31日财年竣工。 锐鼎集团董事经理颜佳祥表示，锐鼎特意专注于在吉隆坡实现房屋所有权，以适应城市的快速城市化，特别是在可负担房屋类别。 他指出，这一策略在过往记录中取得了成效，购屋者可以在发达的基建设施和便利设施中享受城市生活方式，比如公共交通、教育机构、医疗设施、购物中心和休闲公园。 “配合为社会缔造美好建筑的目标，我们致力为现有及即将推行的项目提供优质标准。” 他说：“此外，我们即将在主板进行首次公开募股，将使更多利益相关者和国家受益，以支持可负担房屋议程。” 锐鼎计划在2023年第二季上市。 马六甲证券私人有限公司是此次首次公开募股活动的主要顾问、承销商和配售代理。   （编译：魏素雯）   English version：Radium Development gets SC's nod to list on Main Market

https://theedgemalaysia.com/node/670450

PBA secures three-year renewal of Penang water licence

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KUALA LUMPUR (June 8): The government has renewed PBA Holdings Bhd’s water supply licence in Penang for another three years. In a bourse filing on Thursday (June 8), PBA said Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad approved its application to renew its wholly-owned subsidiary Perbadanan Bekalan Air Pulau Pinang Sdn Bhd’s individual licence (Facilities and services) pursuant to the Water Services Industry Act 2006 (WSIA). “The licence shall be effective from Jan 1, 2023, to Dec 31, 2026, unless renewed in accordance with Section 17 of the WSIA and Regulation 7 of the Water Services Industry (Licensing) Regulations 2007," the group said. For the first quarter ended March 31, 2023 (1QFY2023), PBA’s net profit fell 12.71% to RM12.97 million from RM14.86 million a year earlier, dragged by higher energy expenses. This was despite a 22.64% rise in revenue to RM97.39 million versus RM79.42 million previously, following an increase in water tariff for non-domestic and special category consumers from Jan 1 this year. According to PBA's annual report 2022, its substantial shareholders include the Penang State Secretary with 55% equity interest and the Penang Development Corp with a 10% stake. It noted that the Penang State Secretary also holds one "special share". Shares in PBA last traded at 80 sen on Wednesday (June 7), giving the group a market capitalisation of RM263.38 million.

https://theedgemalaysia.com/node/641988

Tune Protect unit receives conditional approval to enter BNM’s Financial Technology Regulatory Sandbox

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KUALA LUMPUR (Oct 31): Tune Protect Bhd said its wholly-owned subsidiary Tune Protect Ventures Sdn Bhd (TPV) has received conditional approval from Bank Negara Malaysia (BNM) to participate in the Financial Technology Regulatory Sandbox. This will allow TPV to test a digital life insurance business for the Malaysian market in the Sandbox for a period of 12 months from the date of meeting certain conditions set out by BNM, the group said. The Sandbox environment, it said, will allow TPV to innovate and offer a differentiated value proposition to the unserved and underserved communities, in line with its aspiration of providing simple and affordable pure life and health protection, particularly for this market segment. TPV will leverage technology to simplify the process of buying, self-service and claims for customers, and is expected to introduce its first proposition in the coming weeks, upon meeting BNM’s conditions, said Tune Protect in a statement. Its chief executive officer Rohit Nambiar said the group had 18 months ago, set in motion a plan to establish a bolt-on business that leverages the strong engagement it had with Gen Z, millennials and small and medium enterprise (SME) customers. “This business idea stems from our fundamental belief that these segments are under-penetrated, under-insured and traditional forms of distribution has not worked to reach them. We believe they are now more open to buying simple life protection solutions, above and beyond their lifestyle; health, and SME package solutions from us. “As a Malaysian homegrown digital insurer, we believe we can target them with a digital-first approach on a Sandbox mode (Test and Learn), where one can buy all day-to-day retail insurance solutions, service or claim through an app or website. The next few weeks will be exciting for us, as we will be rolling out our solutions and we can’t wait to show you what and how,” Rohit said. TPV principal officer Koot Chiew Ling said the company is going back to the fundamentals of insurance, focusing on pure life and health protection. “We are excited to showcase our flagship product, which will be a first of its kind on our shores. Our first proposition will be for SMEs and their employees. Being a startup and new, we will also be bringing about new technology and end-to-end digitisation,” Koot added. Tune Protect’s share price closed up half a sen or 1.89% at 27 sen on Monday (Oct 31), giving the group a market capitalisation of RM203 million.

https://theedgemalaysia.com/node/674179

Malaysia's end-June palm oil stocks rise slower than expected as exports jumps

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KUALA LUMPUR (July 10): Malaysia's palm oil inventories rose at the end of June but at a much slower than expected pace, as production declined and exports jumped, data by the country's palm oil board showed on Monday (July 10). Stockpiles at the world's second largest producer gained 1.9% from the month before to 1.72 million metric tonnes, hitting a four-month high, Malaysian Palm Oil Board (MPOB) data showed. That was much smaller than a Reuters forecast of a 10.5% jump. The MPOB report is a surprise for most market participants and can force them to reassess the supply and demand, as well as trade flows, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group. Crude palm oil output in June fell 4.6% to 1.45 million tonnes, MPOB data showed. Exports rose 8.6% to 1.17 million tonnes, surpassing cargo surveyors’ estimates. Intertek Testing Services had estimated June export shipments to decline 6.9%, while Amspec Agri said shipments rose 0.6%. The biggest surprise was the extent of a rise in imports, Bagani added. MPOB data showed imports surged 67%, partly due to rival Indonesia's lower palm oil prices.      

https://theedgemalaysia.com/node/608891

Amway aims to deliver moderate topline growth for 2022

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KUALA LUMPUR (Feb 24): Amway (Malaysia) Holdings Bhd is aiming for moderate topline growth in 2022 and will continue to invest strategically and prudently in certain areas to achieve long-term business growth. These include Amway Business Owners (ABO)-centric programmes, new product launches such as Nutrilite Botanical Beverage Berries with Lutein and Nutrilite Botanical Beverage Apple, Jujube and Wheat Peptide to improve vision and stomach health, and further enhancements to the digital platform and associated delivery infrastructure. The wellness company has a core force of more than 274,000 ABOs. In a virtual press briefing on Thursday (Feb 24), Amway Malaysia, Singapore and Brunei managing director Mike Duong said while the costs associated with these investments will put pressure on the operating margin, the group expects the sales incentive plan introduced in previous years to normalise and improve the operating margin compared to the previous year. Duong however, declined to comment on whether there are any targets or projections for the top line growth. “We are focused on delivering sustainable topline growth and improved profitability; growing the entrepreneurial ABO and registered customer force size; expanding our healthy and wellness solutions, community programmes, and loyal customers; and modernising our omnichannel digital experience,” he said. "I would just say moderate. If I look at the last two years, we have seen such phenomenal and strong growth when most of our sales were online, up from 20% to 25% to 62%. "With the easing of some Movement Control Order restrictions, we want to make sure that we return to sustainable but moderate growth," Duong said, adding that the group is optimistic about increasing the profitability of its business by 2022. “We are committed to serving Malaysia’s health and wellness needs. We will continue to introduce safe, high-quality, and relevant products across all categories in an effort to meet customers’ needs while offering fun and engaging communities for achieving a healthy lifestyle,” remarked Duong. Investment analysts covering the stock said Amway's recent results were below their expectations. For the full year ended Dec 31, 2021 (FY21), the company's cumulative net profit declined 21.57% year-on-year (y-o-y) to RM36.78 million from RM46.9 million due to the new sales incentive plan introduced at the beginning of the year, as well as true-up adjustment in view of the higher pay-out for the new sales incentives for the ABO performance year ended Aug 31, 2021. Cumulative revenue increased by 28.82% from RM1.15 billion to RM1.49 billion due to continued strong demand for nutrition and wellness products and the newly launched product (Atmosphere Mini). The higher revenue was also driven by the Amway Privileged Customer (APC) programme and strong sales force momentum motivated by the new sales incentive plan launched in January 2021, the group said in a Feb 23 stock exchange filing. Cumulatively, the group declared a dividend of 24 sen per share for FY21, less than the 27.5 sen paid in FY20. “Amway’s FY21 results came below expectations on account of higher-than-expected distribution expenses in the 2HFY21 [second half of financial year 2021] as sales and renewal fees weakened. Final dividend declared was also below at 24 sen (versus our expectation of 35 sen),” said Kenanga Research analyst Ahmad Ramzani Ramli in a note on Thursday (Feb 24). Following the results announcement, Ahmad Ramzani said Kenanga has lowered its FY22 profit forecast by 6% to RM53 million as high costs and an unfavourable ringgit (MYR) persist. “The higher sales incentives and provisioning were a surprise but we believe it was unavoidable, as sign-up and renewal fees declined (-24% y-o-y and flattish y-o-y) implying declining growth in ABOs as economic activities gradually reopen. “The higher incentives were an immediate dampener, and we believe it is unsustainable as economic recovery builds up leading to moderating growth in ABOs. The unfavourable USD/MYR forex rate is an added pressure to margins, leading to lower profitability in the immediate term,” said the analyst. With sales driven to unprecedented levels by the Covid-19 pandemic, Ahmad Ramzani said the gradual reopening of the economy and the endemic stage will likely lead to a slowdown in sales in FY22 as ABOs decline while revenues should improve due to lower distribution costs. Kenanga downgraded Amway to “marketperform” from “outperform” call previously. “We downgraded our call to ‘marketperform’ with a lower target price (TP) of RM5.65 (from RM6.05) pegged to FY22E PER [price-earnings-ratio] of 17.6 times (unchanged) implying 1SD below its five-year means. The lower PER is justified given its pre-pandemic PER trading levels of 18 times when the ringgit started to turn unfavourable,” said the analyst. Meanwhile, TA Securities Research said Amway's FY21 earnings were below expectations, meeting only 61% of the research firm's estimates and 71% of consensus estimates for the full year. “We are keen to see how Amway could monetise on the higher sales in FY22 driven by rapid acceleration of ABO counts. Moreover, we expect some downward normalisation in the sales incentive which should provide a profitability boost to the group,” said TA Securities analyst Jeff Lye Zhen Xiong. However, TA Securities maintained its “buy” recommendation on the stock, with an unchanged TP of RM7.05, and made no changes to its earnings forecasts.

https://theedgemalaysia.com/node/650767

Crypto exchange Huobi to lay off 20% of staff as industry slump deepens

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SINGAPORE (Jan 6): Crypto exchange Huobi plans to lay off about 20% of its staff, the company told Reuters on Friday, in the latest sign of sharp cost cutting in the industry as investor interest in digital assets slumps. "The planned layoff ratio is about 20%, but it is not implemented now. With the current state of the bear market, a very lean team will be maintained going forward," Huobi said in a statement, responding to queries from Reuters. The statement confirmed an earlier message from Tron founder Justin Sun, who said that the "structural adjustment" in Huobi had not started yet but was expected to be completed by the end of the first quarter. Sun said the company has 1,100 employees now. Sun, a Chinese cryptocurrency entrepreneur who is also a member of Huobi's global advisory board, said in an internal memo to Huobi staff that the company has been like "a fire in the (crypto) winter" despite the deteriorating macro environment. He added that the platform has had an average of 20,000 new daily users the last three months. Huobi was ranked the eighth largest crypto exchange in terms of volume as of last November, according to analytics website CoinGecko. Sun billed the restructuring as "short-term pains" that can eventually bring advantages to the exchange. The layoffs come against the broader backdrop of concerns about reserves and solvency at various cryptocurrency exchanges and lenders after the collapse of FTX and a series of other bankruptcies last year. Cryptocurrency firm Genesis just cut 30% of its workforce in a second round of layoffs in less than six months, while crypto-focused bank Silvergate Capital Corp reported a sharp drop in its fourth-quarter crypto-related deposits. "All these companies are resorting to cost cutting measures. Instead of plotting the ship through turbulent times, these executives have simply cut people losses," said Joshua Chu, group chief risk officer at blockchain technology firms XBE, Coinllectibles and Marvion. "Cutting people will not help these tech companies with solving the inherent problem in that they need to make products with underlying value." Last year, Huobi founder Leon Li sold his controlling stake in the company to buyout firm About Capital Management (HK) Co. As per CoinMarketCap, the Huobi Token peaked at US$9.40 in late October, with a 24-hour volume then of US$52.50 million. Its price on Friday was US$4.68, and volume was down to US$20.53 million.

https://theedgemalaysia.com/node/668664

Australia retail sales flat in April as consumers cut back on food, dining out

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SYDNEY (May 26): Australian retail sales were flat in April as consumers, who face high living costs and rising interest rates, cut back spending on food and dining out, bolstering the case for a pause in rate hikes next month. Data from the Australian Bureau of Statistics (ABS) on Friday showed retail sales were unchanged in April from March, when they rose 0.4%. Analysts had looked for 0.2% growth. Sales of A$35.26 billion (US$23.92 billion) were up 4.2% from a year earlier, slowing from the 5.4% growth in March. While shoppers spent more on winter clothes and in department stores, they curbed spending on food and dining out, which registered declines of 0.1% and 0.2% respectively. Household goods fell 1%. The slowdown in consumer spending is evidence that a whopping 375 basis-point tightening by the Reserve Bank of Australia since May is having the desired effect of cooling demand. "Retail turnover has plateaued over the last six months, as consumers spent less on discretionary goods in response to cost-of-living pressures and rising interest rates," said Ben Dorber, ABS head of retail statistics. Retail sales volumes had already posted a fall in the first quarter, marking a second straight quarterly decline and indicating a drag on economic growth. However, the central bank has warned that more rate rises might be required, citing upside risks to the inflation outlook, and this has prompted markets to price in the chance of another hike in August or September, and a scenario of rates staying higher for longer. Economic data over the past month has printed on the soft side. Quarterly gains in Australian wages missed forecasts, net employment unexpectedly dipped in April and the jobless rate ticked up, adding to the case for a pause next month. "The rate of inflation in the economy will not drop to the desired level overnight. But the data is encouraging and is directionally moving the right way," said Gareth Aird, head of Australian economics at Commonwealth Bank of Australia.

https://theedgemalaysia.com/node/603921

TWL plans to partner MARDI unit to invest in pineapple planting, processing

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KUALA LUMPUR (Jan 14): TWL Holdings Bhd, previously known as Tiger Synergy Bhd, is planning to collaborate with a subsidiary of Malaysian Agriculture Research and Development Institute or MARDI to invest in pineapple plantation and downstream processing of pineapples. In a bourse filing, TWL said it has inked a memorandum of understanding with Mardi Corp Sdn Bhd on Thursday (Jan 13) for the potential partnership, which will involve the development of pineapple planting material production centre, pineapple plantation, as well as agrotourism. The parties will also explore the potential of expanding the overseas export markets, and the marketing of pineapple industry products and other agriculture products. The MoU shall be in effect for one year or until the execution of a definitive agreement between the two parties. TWL’s shares closed 0.5 sen or 9.09% higher at six sen apiece on Friday (Jan 14), for a market capitalisation of RM154 million.

https://theedgemalaysia.com/node/634216

买卖盘拉锯 马股休盘微滑

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（吉隆坡29日讯）重量级股的买卖盘拉锯，马股休盘微幅下滑。 休市时，富时隆综指微滑0.18点，挂1500.11点。 综指今早以1486.52点开市，较上周五闭市的1500.29点，大跌13.77点。盘中于1481.79点和1506.55点之间波动。 下跌股达602只、上升股223只，另有311只无起落、1223只无交易，以及81只暂停交易。 成交量11亿9000万股，值8亿2514万令吉。 一名交易商表示，马股开盘大幅走低，之后在种植、消费产品和金融等重量级股的逢低买盘带动转升，惟休盘时又不敌卖压。 “在美国联储局（FED）主席Jerome Powell发表高利率遏制通胀的鹰派言论后，美国股市上周五大跌，亚洲股市今日跟随美股跌势。” 香港恒生指数跌0.7%、日本日经指数降2.71%、新加坡海峡时报指数减0.96%，以及韩国首尔综合指数跌2.31%。 重量级股中，马银行（Malayan Banking Bhd）升2仙，至8.93令吉、大众银行（Public Bank Bhd）起1仙，报4.64令吉、国油化学（Petronas Chemicals Group Bhd）扬6仙，挂8.75令吉、联昌国际集团（CIMB Group Holdings Bhd）则跌6仙，报5.40令吉，以及IHH医疗保健（IHH Healthcare Bhd）降5仙，挂6.30令吉。 至于热门股，MyEG服务（My E.G. Services Bhd）减2仙，报73.5仙、迪耐（Dagang NeXchange Bhd）和日马集团（Jade Marvel Group Bhd）各跌2.5仙，分别挂85仙和81仙，而Agmo Holdings Bhd扬1.5仙，至91仙，以及中国汽车零件控股（China Automobile Parts Holdings Ltd）持平于1仙。   （编译：陈慧珊）   English version：Bursa ends morning session slightly easier

https://theedgemalaysia.com/node/672086

Jade Marvel proposes RCPS to raise funds for money lending business

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KUALA LUMPUR (June 21): Jade Marvel Group Bhd plans to raise up to RM80 million through the issuance of  redeemable convertible preference shares (RCPS) to fund its money lending business and working capital.   The group said the exercise would involve the issuance of up to 80 million new RCPS, at the issue price of RM1 per share, to Sycamore Capital SPC, a company incorporated in the Cayman Islands and acting on behalf of Sycamore Equity Fund SP. “The proposed RCPS issuance will enable the group to finance its money lending business without drawing upon its existing cash and bank balances, which is required for the group’s existing operations and funding needs,” Jade Marvel said in a bourse filing on Wednesday (June 21). As at March 31, the group’s cash and bank balances amounted to RM3.7 million. “The board is of the opinion that the group’s successful venture into the money lending business (on Jan 26, 2022) which has shown continued growth is expected to contribute positively to the financial performance and position of the group,” added Jade Marvel. The group said the RCPS will be issued in 320 equal tranches at any time before the maturity date, which is 36 months from the issue date of its first tranche. The RCPS are convertible into new ordinary shares in Jade Marvel, not exceeding 10% of the enlarged total number of issued shares following the conversion of the RCPS. “The conversion price shall be at 80% of the average closing price on any three consecutive business days as selected by the RCPS holder during the 45 business days immediately preceding the relevant conversion date of the RCPS, subject to the minimum conversion price (at 12 sen),” Jade Marvel said. On the maturity date, any remaining outstanding RCPS which are not converted into new ordinary shares will be redeemed by Jade Marvel. The group said the RCPS does not carry any right to receive dividends.   TA Securities Holdings Bhd has been appointed as the adviser for the exercise. Jade Marvel’s shares closed one sen or 5.56% higher at 19 sen, bringing the group a market capitalisation of RM80.48 million. In the past one month, the counter has fallen 24%.

https://theedgemalaysia.com/node/641719

ACE Market-listed Kim Teck Cheong seeks to transfer listing to Main Market

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KUALA LUMPUR (Oct 28): ACE Market-listed Kim Teck Cheong Consolidated Bhd (KTC) is seeking to transfer its listing status to the Main Market of Bursa Malaysia. The consumer packaged goods distributor believes that the proposed transfer will enhance its corporate profile, credibility and reputation, and accord it greater recognition and following among institutional investors. In a filing with the local bourse on Friday (Oct 28), the group said it had met the requirements for the transfer of its listing to the Main Market, as set out in the equity guidelines issued by the Securities Commission Malaysia (SC) and the Main Market Listing Requirements of Bursa. KTC recorded a net profit of RM20.4 million for the most recent audited financial year ended June 30, 2022 (FY2022), and an aggregate consolidated net profit of RM31.41 million for the past three audited financial years (FY2020-22). Under the SC's equity guidelines, a corporation is required to achieve a net profit for the most recent financial year of at least RM6 million, and an aggregate audited net profit of at least RM20 million for three to five full financial years. KTC also met the healthy financial position requirement of the equity guidelines, which requires a corporation to have a sufficient level of working capital for at least 12 months from the date of the announcement, positive cash flow from operating activities over the profit track record period, and no accumulated losses based on the latest audited consolidated statement of the corporation's financial position (as at June 30, 2022 for KTC). As at Oct 17, KTC's public shareholding spread stood at 30.29% of its issued share capital, meeting the public shareholding spread requirement of Bursa of at least 25%. "Barring any unforeseen circumstances, the board expects the proposed transfer to be completed by the first half of 2023," said KTC. UOB Kay Hian Securities (M) Sdn Bhd is the adviser for the proposed exercise. At the time of writing on Friday, KTC shares were unchanged at 23 sen, bringing the company a market capitalisation of RM153.09 million.

https://theedgemalaysia.com/node/670426

Penang state assembly to be dissolved on June 28, says CM

English

GEORGE TOWN (June 8): Penang will dissolve its state legislative assembly on June 28 to pave the way for a state election, Chief Minister Chow Kon Yeow said on Thursday (June 28). Chow said he would seek an audience with the Yang di-Pertua Negeri of Penang Tun Ahmad Fuzi Abdul Razak to get consent on the matter soon. Meantime, Chow, who is also Penang Pakatan Harapan (PH) chairman, said seat allocation among PH and Barisan Nasional (BN) in Penang is now 95% resolved. “Any negotiation between PH and BN is now done at the national level, and the final decision will also be made at the national level. “We believe there will be more negotiations,” he told a press conference here. Prior to this, Chow reportedly said that the negotiation, which began last month, was running smoothly, but a decision has yet to be made for several seats due to overlapping claims. Penang has 40 state seats and in the 14th General Election (GE14), PH won 37, including two by Bersatu candidates, while BN won two, and PAS, one. Kedah, Penang, Selangor, Negeri Sembilan, Kelantan and Terengganu did not dissolve their respective state assemblies when the country held GE15. Leaders of the states, however, have agreed to do so within the last two weeks of June to enable state elections be simultaneously held in all six states.

https://theedgemalaysia.com/node/628664

US drug legislation to weigh on global pharma growth and margins, says Fitch

English

KUALA LUMPUR (July 19): An attempt by the US Senate to pass prescription drug pricing legislation through the budget reconciliation process could dampen longer-term profitability of global pharmaceutical companies, said Fitch Ratings. In a statement on Monday (July 18), the rating agency said the new bill is similar to the package that was passed by the US House last year, which would allow Medicare to negotiate prices with drug manufacturers. It said a key factor to watch is the Senate's request that the new law adheres to the complex budget reconciliation requirements, which would allow passage of the legislation, with a simple majority given the evenly divided Senate. Fitch’s assessment of the potential rating implications, should the legislation become law, would initially centre on branded pharma manufacturers, with cash flow generation derived from the affected drugs. It said global pharma companies generally maintain diversified product portfolios, which should minimise pricing pressure on any single drug. However, it said there would be limited offsets to declining revenue, which could moderately affect sector profitability and the cash flow. Fitch said it would assess whether issuers would be willing to reduce dividends and share repurchases, or make any other capital allocation changes, to mitigate the effect of lower revenue on leverage and the free cash flow. It said issuers choosing to reduce shareholder-oriented capital allocation to maintain financial policies could mitigate downside risk to ratings. Fitch said generic and biosimilar manufacturers may find the core drug negotiation proposals unattractive because such proposals will make it more difficult to estimate the potential returns of investing large amounts of research and development over long periods for drug candidates that may be expected to experience price negotiations. “We believe the legislative proposals could add to the challenging business conditions for biosimilar biological manufacturers, which already include uncertain regulatory pathways for biosimilar approvals, patent thickets created by manufacturers of reference biologics, and overall market acceptance,” it said. The rating agency said that in contrast to prior versions, the new bill would require the US health and human services director to negotiate prices for the maximum number of drugs allowable in a given year, which would limit the ability for future administrations to curb the bill’s effectiveness. In addition, the bill provides some incentives for biosimilar competition. Fitch said the mechanism would be to delay for up to two years the selection of a biological product for price negotiation if there is a “high likelihood” of a biosimilar biological product being licensed and marketed before a negotiated price were to become effective. However, it said the draft legislation also stipulates that this mechanism would not apply to a manufacturer of a biosimilar biological product that is also the manufacturer of the reference biological product.

https://theedgemalaysia.com/node/652497

Man City close gap at the top with thrilling comeback win over Spurs

English

MANCHESTER, England (Jan 20): Manchester City got back to winning ways in thrilling style after coming from two goals down to beat Tottenham Hotspur 4-2 on Thursday, a victory that moved the champions to within five points of Premier League leaders Arsenal. Looking to avoid a third successive defeat in all competitions, City were sluggish from the off and went into the break two goals behind after Dejan Kulusevski and Emerson Royal netted in quick succession at the end of the opening period. Three goals in 12 second-half minutes, however, quickly turned the match on its head, as strikes from Julian Alvarez, Erling Haaland, the Norwegian's first in four appearances in all competitions, and Riyad Mahrez put City in front. With the visitors chasing an equaliser down the other end, Mahrez added a late fourth to keep City well in the title race, five behind Arsenal having played one game more than the Gunners, while Spurs stay fifth, five points off the top four.  

https://theedgemalaysia.com/node/671655

持续套利活动 拖累马股走低

Mandarin

（吉隆坡19日讯）持续套利活动，拖累马股休盘下跌，与亚洲股市走势一致。 市场情绪依然低迷，投资者等待周二中国的贷款优惠利率决定，以判断全球第二大经济体上周下调主要贷款利率后的市场走向。 截至中午12时30分，富时隆综指跌3.94点，至1384.67点，上周五收报1388.61点。 富时隆综指今早以1383.89点报开，挫4.72点，盘中游走于1379.83点至1385.70点之间。 下跌股427只，上升股300只，379只无起落，1187只无交易及25只暂停交易。 马股总成交量为12亿5000万股，总值7亿1655万令吉。 乐天交易私人有限公司股票研究部副总裁唐栢麟表示，尽管富时隆综指上周五收高，但近期的上升趋势不那么令人信服，预计市场情绪将保持低迷。 “因此，我们估计富时隆综指将处于盘整模式，今日徘徊于1380点至1390点之间。” 他告诉马新社：“由于印尼正在调查贪污案，最近原棕油价格上涨至每吨3700令吉以上，购兴应该会重返种植股的怀抱。” 重量级股方面，马银行（Malayan Banking Bhd）升6仙，至8.63令吉，联昌国际集团（CIMB Group Holdings Bhd）涨7仙，挂5.05令吉，国家能源（Tenaga Nasional Bhd）跌4仙，报9.16令吉，IHH医疗保健（IHH Healthcare Bhd）降7仙，至5.89令吉，以及大众银行（Public Bank Bhd）企于3.87令吉。 至于热门股，Sarawak Consolidated Industries Bhd增1.5仙，至42仙，Boustead Plantations Bhd扬9仙，报98仙，顶级手套（Top Glove Corp Bhd）减4仙，挂93.5仙，科恩马（KNM Group Bhd）企于8.5仙，以及Widad集团（Widad Group Bhd）持平于42仙。   （编译：魏素雯）   English version：Bursa ends morning session lower on profit-taking

https://theedgemalaysia.com/node/606766

Buy now, pay later unicorn Klarna Bank threatened by rising rates

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(Feb 9): Klarna Bank AB is Europe’s most valuable fintech unicorn, a payment pioneer in a booming sector that’s being wooed by London for its potential stock listing. It also has a funding model that’s going to be threatened by the rapidly emerging reality of higher interest rates. The Swedish “buy now, pay later” company gives out effectively interest-free loans so online shoppers can stagger payments, while it depends on merchant fees and late payment penalties for revenue. It was valued at almost US$46 billion after a funding round led by Softbank Group Corp last year. It uses a mix of customer deposits — it offers conventional bank accounts in Sweden and Germany — and short-term debt to fund the loans. This is a model that thrives in a low interest-rate world because such debt tends to be very cheap, and rates on deposits are still extremely low. But things are shifting fast. Bank of England interest rates are already rising, the US Federal Reserve is set to follow in March, and there are bets that the European Central Bank could also move this year. Given the model behind Klarna’s rapid growth, the change coming in 2022 has implications for funding costs. “The whole business model is based on wafer thin margins — it doesn’t have the buffer of high interests that credit card providers charge on usage,” said John Colley, a professor at Warwick Business School and a fintech expert. “Once the environment turns nasty, which it is going to, it falls flat.” Klarna is among a raft of “buy now, pay later” companies attracting young consumers and investor attention. It says it has 90 million active customers and processes 2 million transactions a day. Others including Affirm, PayPal Holdings Inc’s In 3 and Afterpay, which was bought by Jack Dorsey’s Square Inc for US$29 billion last year. The firm’s debt includes 3.1 billion Swedish krona (US$297 million) of bonds coming due in the next two years and a 5 billion-krona commercial paper program, a form of short-term debt that’s becoming less popular because of market stress at the onset of the Covid-19 crisis.   In response to questions from Bloomberg, Klarna said that only a small portion of its lending is funded through debt, and estimates that 80%-85% comes from customer deposits. “The average maturity of Klarna’s credit portfolio is around 40 days. As such, the maturity profile of the funding overall is longer than that of the assets,” it said. In a financial report last October, Klarna said that loans to consumers totaled about 52 billion krona. Deposits stood at 45 billion krona and debt securities at 8.1 billion krona, about 15% of the mix. While that ratio bynitself isn’t a concern, the potential issue relates to the nature of the debt. “Thanks to the ECB, short-term borrowing costs will remain very low for the next year or so. But eventually, rates will go up and companies using this will have to re-evaluate their model,” said Pierre Boyer, head of short-term debt at Belgian fund manager Candriam. “Will that mean a big change for financial institutions using this? Absolutely.” He hasn’t invested in Klarna’s commercial paper, but has positions in similar instruments by other European financial institutions. Klarna’s debt is mostly held by local Swedish investors; Bloomberg attempted to contact a selection of these without success. While traditional banks also borrow to lend, Klarna is different because it charges customers little to no interest if they pay on time. It reported a pretax loss of 3.1 billion krona in the first nine months of 2021. There’s also the fragility of commercial paper, where maturities typically range from a few days to a few months, which was exposed in the turmoil in the early days of the coronavirus outbreak. Access to commercial paper froze when the pandemic first roiled markets, forcing the Fed and the European Central Bank to step in to stabilize it. Several large corporations have since reduced reliance on it. “Understandably, companies such as Klarna like to get as cheap funding as possible, but the risks are when that debt turns over and the markets do get volatile or seize up as it did during the pandemic,” said Michael Taiano, an analyst at Fitch Ratings. “We tend to like longer-dated maturities that are, in an ideal world, spread out over a longer time frame.”

https://theedgemalaysia.com/node/615412

Gagasan Nadi Cergas to deliver 10,000 affordable houses in next five years

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PETALING JAYA (April 7): Gagasan Nadi Cergas Bhd is targeting to deliver more than 10,000 affordable houses over the next five years, beginning with the launch of 2,800 units in financial year 2022 ending Dec 31, 2022. According to the press statement, the 10,000 affordable houses include Idaman Bukit Jelutong (launched on Thursday), Idaman Elmina West (upcoming launch), as well as other ongoing projects such as Rumah Selangorku housing project in Serendah, two high-rise affordable housing projects for Paramount Corp Bhd in Kemuning Utama and Greenwood Salak Perdana, and the Rumah Idaman project for Kwasa Land Sdn Bhd in Kwasa Damansara. Launched on Thursday in Bukit Jelutong, Idaman Bukit Jelutong consists of 1,260 condominiums with built-up of 1,000 sq ft and priced at RM250,000. Each unit is partially furnished with cabinets and wardrobes and comes with two parking bays. The gross development value (GDV) is RM304 million. The project is initiated with the support of Menteri Besar Selangor Inc to provide affordable housing to the mass population segment in Selangor. Construction works for the development commenced in the second quarter of 2022, and are estimated to be completed in the fourth quarter of 2025. "The launch of Idaman Bukit Jelutong offers an opportunity for B40 and lower M40 families to own a home in the increasingly vibrant Shah Alam economic hub, consistent with the Selangor state government's goal of promoting inclusivity and equity ownership among the rakyat. Since the registration of interest started for the project, we have already received three times more registrations than the units offered; a clear indication that demand for affordable housing is resilient, especially in strategic locations like Bukit Jelutong, Shah Alam," said group managing director Wan Azman Wan Kamal. Riding on the strong interest, Gagasan Nadi Cergas is launching Idaman Elmina West in Shah Alam in the second half of 2022. "This will reiterate our role in supporting the state's target of building 30,000 affordable houses by 2026." Idaman Elmina West will comprise 1,500 affordable residential units worth a total of RM370 million in GDV.

https://theedgemalaysia.com/node/600462

Kretam secures RM21 mil banking facilities from Alliance Bank

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KUALA LUMPUR (Dec 12): Kretam Holdings Bhd (KHB) has secured RM21 million of banking facilities from Alliance Bank Malaysia Bhd. Its wholly-owned subsidiary Syarikat Kretam Plantations Sdn Bhd, which cultivates oil palms, has accepted the facilities to finance the purchase of two pieces of agricultural land planted with oil palms in Sabah from NPC Resources Bhd. “The facilities are not expected to have a material impact on the earnings per share, net tangible assets per share, share capital and the substantial shareholders' shareholdings of KHB for the financial year ending Dec 31, 2021,” said Kretam. Kretam’s shares were last traded at 54 sen, valuing the group at RM1.26 billion.

https://theedgemalaysia.com/node/671251

需求疲软 令吉兑美元低开

Mandarin

（吉隆坡15日讯）尽管美国联储局（FED）周三在联邦公开市场委员会（FOMC）会议上将基准利率维持在5.25%，但由于需求低迷，令吉兑美元继续低开。 截至9时02分，令吉兑美元报4.6210/6245，昨日收于4.6195/6235。 ActivTrades交易员Dyogenes Rodrigues Diniz表示，马来西亚目前的利率为3%，与美国利率的微小差异可能会使美元在中短期内失去吸引力，为未来几个月令吉可能升值开辟空间。 他向马新社指出，美联储的最新举措也标志着其立场发生重要转变，该局在过去10次会议逐步加息。 “这也增加了美联储在下个会议上继续降息的可能性，虽然目前看来这种可能性仍不大。” “从技术角度来看，如果令吉兑美元汇率突破4.5980，未来几天内可能至4.5250。” Bank Muamalat Malaysia Bhd首席经济学家兼社会金融主管Dr Mohd Afzanizam Abdul Rashid指出，尽管美联储将基准利率维持在5.25%，但继续保持强硬态度，并倾向于将通胀率降至2%的目标水平。 这反映在最新预测中，即联邦基金利率将在年底达5.6%，而今年3月的预测为5.1%。 他说，这意味着在2023年下半年的后续会议，美联储很有可能再次加息25个基点。 “接下来的焦点将落在欧洲央行，市场普遍预期今日会议将把政策利率再上调25个基点。” “我们预计令吉兑美元会有所回升，但兑欧元，令吉正在走软。” 令吉兑一篮子主要货币大多走低。 令吉兑日元从昨日的3.3015/3046，升至3.2899/2926，但兑英镑由5.8423/8473，跌至5.8497/8542，以及兑欧元自4.9918/9962，贬至5.0078/0116。 惟令吉兑东南亚货币普遍走高。 除了兑印尼盾由309.8/310.3，滑至309.9/310.3，令吉兑泰铢从13.3192/3380，增至13.2864/3022、兑新元自3.4433/4465，扬至3.4429/4460，以及兑菲律宾比索从8.26/8.27，升至8.25/8.27。   （编译：陈慧珊）   English version：Ringgit opens lower against US dollar on soft demand

https://theedgemalaysia.com/node/617214

Serba Dinamik gives its take on why AG issued a compound offer

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KUALA LUMPUR (April 21): Serba Dinamik Holdings Bhd believes an "internal irreconcilability" of the charges levelled by the Securities Commission Malaysia against the company over the alleged false RM6.01 billion revenue figure was what prompted the Attorney-General (AG) to compound the company and its top executives, instead of pressing ahead with the criminal charges against them. Serba shared its take on the matter in a 26-page long bourse filing on Thursday, which it said "concerns" the Feb 7 High Court order that compelled the company to reveal the factual findings update (FFU) that was prepared by Ernst & Young Consulting Sdn Bhd (EYC), which was appointed to undertake a special independent review on the group following audit issues raised by KPMG. Serba, however, has been dragging its feet in complying with this order, which led to Bursa Malaysia Securities to initiate contempt proceedings against the company last Thursday (April 14). Meanwhile, it believes the AG would have taken into account several considerations in arriving at its decision to compound the company and its four executives, including the continued delay by the SC in producing documents to support its allegations against those charged regarding the false RM6.01 billion revenue figure. It also said the SC had alleged that only the fourth quarter's consolidated cumulative revenue of RM6.01 billion was false but not that of the first, second and third quarter figures, which "amply demonstrates an internal irreconcilability within the four corners of the charge itself". "As a matter of logic, in order for the consolidated cumulative 4th quarter revenue of RM6.014 billion to be false, the 1st, 2nd and 3rd quarter revenues should also be false. This ought not to be viewed as a mere mistake on the part of the SC but rather, a manifestation of a hasty action in bad faith, to bring charges in furtherance of an underlying improper purpose. It is the SC who should explain why they had come to the conclusion that every item of the revenue was false," Serba said. It also suggested that its subsidiary Serba Dinamik Sdn Bhd (SDSB) had been singled out in the SC's single charge in the Shah Alam High Court for falsifying revenue, which it said implied that the false RM6.014 billion consolidated cumulative revenue emanated from SDSB alone. It also suggested that the matters raised by KPMG and the FFU did not weigh on the SC's decision to draft the charges in the way it was drafted. "The charges brought by the SC against the company are peculiar in that it constitutes a complete departure from the issues raised by KPMG and EYC," it claimed, adding the three — KPMG, EYC and SC have different contentions. "KPMG’s main thrust is that they are not able to accept or reconcile certain matters they have come across. KPMG then stopped work. "EYC’s findings suggest that they have come across many suspicious materials but are completely silent on how such suspicious materials translated into false revenue only. EYC in fact suggests that they have found issues in both revenue and expense matters, across various years, not only 2020. EYC then stopped work. "It is necessary to view SC’s charges in the light of the SC having access to KPMG’s complaint and EYC’s FFU, where SC had chosen to focus only on consolidated revenues of a very specific quarter, i.e. the cumulative 4th quarter for 2020," Serba said. Read also: Bursa Malaysia files contempt proceedings against Serba Dinamik for failing to reveal FFU Serba Dinamik questions SC’s motive to press charges, alleges SC threatened staff

https://theedgemalaysia.com/node/622868

Bank provisions seen to be lower this year

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This article first appeared in The Edge Malaysia Weekly on June 6, 2022 - June 12, 2022 ANALYSTS continue to expect bank provisions to come in lower this year despite fresh challenges arising from certain troubled oil and gas (O&G) firms such as Sapura Energy Bhd and Serba Dinamik Holdings Bhd, and the expected rising interest rate environment. “Yes, there are problems with certain O&G accounts that have been highlighted in the press, but from what we understand, the banks with exposure to them have already done proactive provisioning, and this should cover the majority of their exposures already,” MIDF Research head Imran Yassin Md Yusoff tells The Edge. Tushar Mohata, a banking analyst at Nomura Research, concurs. “Taking everything into consideration, our view on provisions has not changed — we expect it to be lower year on year. Banks were last year building up a lot of overlay provisions, and most of them have not used up a material chunk of the overlays. So, if anything, there are chances of writebacks happening in due course,” he tells The Edge. He sees rising inflationary pressure as the potentially bigger threat to banks’ provisions. “Inflation is a rising risk factor that all banks are watching closely. They will want to see how it affects the debt servicing capability of consumers and businesses because cost of living will be higher. So, it is possible that banks may decide to hold on to their overlays for a longer time and delay writebacks towards the end of this year or maybe even next year,” he adds. Meanwhile, repayment assistance (RA) programmes offered by banks are progressively coming to an end. Banks have guided that the percentage of their exposure to loans under RA have come down significantly, with most borrowers resuming payments as normal. “It used to be in the double-digits, and now it has come down to single-digit levels, so the overall trend is positive. However, some customers continue to need assistance for a more prolonged period — we are likely to see whether additional provisions were needed in the third- or fourth-quarter results, once the relief measures have ended. The overlay balance is significant for most of the banks, so it should not be a major problem,” Mohata says. MIDF’s Imran expects the majority of future provisions to be centred on credit-related provisions for graduating RA loans, and less so for macroeconomic overlays and O&G sector exposure. At AMMB Holdings Bhd’s full-year results briefing on May 31, its group chief financial officer Jamie Ling was asked by the media whether the mid-sized lender had made adequate provisions for its exposure to “two specific” O&G companies. Ling replied: “We have provided up to 83% of our total exposure for O&G — for the two specific [companies]. From that perspective, we have drawn the line around that episode. Eighty-three per cent is one of the highest cover levels for this, so we are confident that it is adequate.” Impaired loans in the banking system rose 5% y-o-y in absolute terms in April and are up 11% year to date, Bank Negara Malaysia’s latest data shows. Impaired loans were higher YTD mainly for share financing (+5%), purchase of non-residential property (+2%), personal loans (+12%) and working capital loans (+25%). As such, the industry’s gross impaired loans (GIL) ratio was higher at 1.57% in April compared with 1.44% in December 2021. “The rise in impaired loans is not surprising, given that loans under moratorium, particularly under the Pemulih [government stimulus package], have started rolling off since February this year, and we continue to expect the GIL ratio to continue to rise in the coming months,” says Maybank Investment Bank Research in a June 1 report. On June 1, debt-laden Sapura Energy was classified as a Practice Note 17 listed issuer, given going concerns over its shareholders’ equity position of RM85 million as of Jan 31, which was less than 50% of its share capital of RM10.9 billion. The company is currently in negotiations with creditors for a proposed scheme of arrangement as part of its debt restructuring plan, after receiving winding-up petitions. On the same day, Serba Dinamik said its unit, Serba Dinamik International Ltd, defaulted on a sukuk with an outstanding principal of US$222.22 million (RM975.65 million) that matured on May 9. The O&G services firm also defaulted on ringgit-denominated debt after missing payment on May 24, again citing the impact of Covid-19 on operating conditions. It recently posted a net loss of RM434.19 million for the third quarter ended March 31, 2022 — its third consecutive quarter in the red and its largest net loss so far. Nevertheless, theedgemarkets.com reported last Friday that six lenders were said to have arrived at a settlement with Serba Dinamik and four of its subsidiaries in regards to the scheme of arrangement and restraining order sought by the companies. It is understood that the parties have agreed that the lenders would hold their applications for a winding-up petition against the Serba Dinamik companies, provided that the companies do not default on the payment of debts as agreed in the proposed scheme of arrangement. The parties are set to finalise the proposal on Tuesday (June 7). The six syndicated and bilateral lenders that filed the winding-up petition were reported to be HSBC Amanah Malaysia Bhd, Ambank Islamic Bhd, Bank Islam Malaysia Bhd, MIDF Amanah Investment Bank Bhd, Standard Chartered Saadiq Bhd and United Overseas Bank (Malaysia) Bhd. This was after the Serba Dinamik companies failed to service their RM1.2 billion syndicated term financing. MIDF’s Imran notes that, even with these new developments, banks would already have had early-warning triggers that would have required them to make proactive provisions earlier. The problems at distressed companies do not surface overnight, he points out, adding that the MFRS 9 accounting standard requires banks to make forward-looking provisions. “So, even with all these new developments coming in, the way I understand it, if banks need to top up provisions, it would not be substantial. You wouldn’t get lumpy provisions,” he remarks. “Thus, we don’t see this as something that is going to be a stumbling block for the recovery of banking sector earnings this year. If you look at loan growth, it’s growing nicely [at 5% y-o-y in April], in tandem with the growing economy. The only potential drag on earnings is bank’s non-interest income, because of the volatility of the bond market and yields going up.” MIDF expects Bank Negara to raise the overnight rate by 25 basis points in 2H2022, following a similar hike on May 11.   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/652400

PwC: Malaysian CEOs plan to navigate global economic slowdown without reducing workforce or compensation 

English

KUALA LUMPUR (Jan 19): Despite the pessimistic global economic growth outlook, 73% of Malaysian CEOs intend to maintain their workforce, and 83% are not planning to reduce compensation for the next 12 months. Instead, PwC's Global CEO survey, unveiled at the World Economic Forum in Davos, Switzerland, found that most Malaysian CEOs are aiming to reduce operating costs (74%), diversify product and service offerings (63%), and increase prices (40%) to drive revenue growth.   The firm said in a statement on Thursday that Malaysian CEOs are taking that approach as they are striving to maintain a balance between long-term growth and current operating issues.   The 26th annual survey, which polled 4,410 CEOs in 105 countries and territories in October and November 2022, revealed that 73% of CEOs globally, and 74% of Malaysian CEOs, believed global economic growth would decline over the next 12 months. PwC said this bleak outlook is the most pessimistic one in over a decade.    In contrast, 92% of Malaysian CEOs and 71% of Malaysian CEOs had expressed optimism over global economic growth in 2022 and 2021, respectively.    PwC said the latest survey had revealed that inflation (40%), macroeconomic volatility (29%) and geopolitical conflict (23%) were ranked as the top threat to economic growth for Malaysian CEOs in the next 12 months.     Also, 51% of Malaysian CEOs believed their organisation would no longer be economically viable in 10 years if they continued on their current course. PwC said this pattern is consistent across a range of sectors globally, including telecommunications (46%), manufacturing (43%), healthcare (42%) and technology (41%).    Meanwhile, PwC said CEOs in larger Asia Pacific countries were much more optimistic about their domestic growth, namely China (64%), India (57%) and Indonesia (50%).   "The growing emphasis on national interests over global ones represents an acceleration of trends underway. However, the fundamentals of the Asia Pacific region continue to be bolstered by trade liberalisation and markets welcoming foreign direct investment," PwC said.    In addition, PwC said 57% of CEOs in Malaysia still need to plan to apply an internal price on carbon in decision-making, and 26% do not intend to implement initiatives to protect their company's physical assets and workforce from the impact of climate risk.   The survey has shown that climate risk did not feature as prominently as a short-term risk over the next 12 months. However, CEOs globally still see climate risk impacting their cost profiles (50%), supply chains (42%) and physical assets (24%) from a moderate to a considerable extent.   PwC Malaysia managing partner Soo Hoo Khoon Yean said 51% of Malaysian CEOs had anticipated the supply chain as the area most impacted by climate change risks in the next 12 months.

https://theedgemalaysia.com/node/675397

Fed set to launch long-awaited instant payments service, modernising system

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(July 20): The US Federal Reserve is due to imminently launch a long-awaited service which will aim to modernise the country's payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week. The "FedNow" service, which has been in the works since 2019, will seek to eliminate the several-day lag it commonly takes cash transfers to settle, bringing the US in line with countries including the United Kingdom, India, Brazil, as well as the European Union, where similar services have existed for years. FedNow is launching with 41 banks and 15 service providers certified to use the service, including community banks and large lenders like JPMorgan Chase, Bank of New York Mellon, and US Bancorp, but the Fed plans to onboard more banks and credit unions this year. The service will compete with private sector real-time payments systems, including The Clearing House's RTP network, and was initially opposed by big banks who said it was redundant. But many have since agreed to participate on the basis FedNow will allow them to expand the services they can offer clients. "For us, FedNow really is a wonderful way of expanding reach," said Anu Somani, head of global payables and embedded payments at US Bank. Unlike peer-to-peer payments services like Venmo or PayPal, which act as intermediaries between banks, payments made via FedNow will settle directly in central bank accounts. The Fed also operates a real-time payments system called FedWire, but that's reserved for large-scale, mostly corporate payments and is only operational during business hours. While the new FedNow system is for everyone, it's likely to benefit consumers and small businesses the most, analysts have said. "We want our clients to benefit from these capabilities, and we want that to be a competitive edge for us,” said Carl Slabicki, global co-head of payments for BNY Mellon’s Treasury Services. Smaller banks, which often connect to FedWire via larger lenders, encouraged the Fed to develop FedNow, arguing that it would allow them access to real-time payments without having to pay larger competitors for the service. “Having the Fed in the space makes our members feel more comfortable that their needs will be met, that they will be treated fairly for pricing,” said Lance Noggle, senior vice president of operations and senior regulatory counsel at the Independent Community Bankers of America, a trade group. FedNow will not charge consumers, although it's unclear whether or how participating banks will pass on any costs associated with the service. Some market participants have raised concerns that FedNow could super-charge a potential bank run by facilitating fast outflows from financial institutions, a fear that was amplified after the failure of Silicon Valley Bank earlier this year. But Fed officials have downplayed those concerns, arguing that banks have tools available to mitigate a wave of outflows. At the outset, FedNow will have a maximum payment limit of US$500,000 (RM2.2 million), but banks can choose to lower that cap if need be.

https://theedgemalaysia.com/node/673562

Abolition of Sg Nyior toll under federal govt's jurisdiction, says Chow

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GEORGE TOWN (July 4): The decision to abolish the Plaza Sungai Nyior toll falls under the jurisdiction of the federal government since there is an agreement between the government and the highway concession company. Chief Minister Chow Kon Yeow said his office was waiting for the federal government's consideration on the issue of compensation to be paid to Lingkaran Luar Butterworth (Penang) Sdn Bhd (LLB) if it is abolished. "This is under the jurisdiction of the federal government, which has an agreement with the concession company, and if it is cancelled, then the issue of compensation arises because the concession agreement period has not expired. "I believe this matter needs to be considered by the relevant ministry to see what compensation is required," he told a press conference here on Tuesday (July 4). He added that if it is cancelled before the concession agreement period expires, it will involve losses on the part of the concessionaire company that has invested in building the highway. He said previously the abolition of tolls in some highway areas had been implemented and it also involved the issue of compensation to the concessionaire companies involved. Meanwhile, when asked if the cancellation of the Sungai Nyior Plaza toll will be included in the state election manifesto, Chow, who is also the chairman of Pakatan Harapan (PH) Penang, said the issue of the manifesto has not yet been finalised. "We are aware of the issues played by [opposition parties] including the abolition of tolls," he said. On Monday, the Penang Gerakan urged DAP, which leads the state government, to provide an explanation for the failure to abolish the Sungai Nyior Plaza toll as promised in the 12th general election (2008). The Sungai Nyior Toll Plaza began operating in January 2007, and in October 2015, LLB announced an increase of between 50 sen and RM1.60 in the toll rate. The new toll rates for class one is RM1.20 compared to 70 sen, class two is RM2.40 compared to RM1.00 and class three is RM3.60 compared to RM2.00.

https://theedgemalaysia.com/node/600095

手套股暴跌 拖累马股表现

Mandarin

（吉隆坡17日讯）马股是今年全球表现最差的股市之一，这一切都可以归咎于橡胶手套股。 富时隆综指今年下跌约8.6%，在全球主要国家指数中排名倒数第三，显示近三分之二是由医用手套出口商造成——1年前全球大流行最热门的交易之一。 富时隆综指可能会连续第三年落后于摩根士丹利资本国际亚太指数，主要受累于顶级手套（Top Glove Corp Bhd）及贺特佳（Hartalega Holdings Bhd）。 周五，在这两家公司的反弹带动下，富时隆综指在午盘小幅上涨0.2%。 Fortress Capital Asset Management私人有限公司董事Geoffrey Ng说：“在全球大流行的当前阶段，投资者的注意力正从手套转向疫苗接种。” “该行业的表现已经不再像2020年般辉煌，并可能在未来几个季度继续对市场造成压力。” 富时隆综指周二收于13个月以来的最低水平，并可能创下全球金融危机以来最严重的年度跌幅。 银河-联昌证券指出，2022年的前景依然不温不火，因为高税收带来的企业盈利风险，以及将原定于2023年的大选提前举行的可能性所带来的政治风险。券商将富时隆综指2022年底目标下调至1612点。   （编译：魏素雯）   English version：Slumping glove stocks drag down entire Malaysian equity market

https://theedgemalaysia.com/node/638335

MISC与ExxonMobil子公司签署10年期液化天然气船舶租赁协议

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（吉隆坡30日讯）MISC Bhd的两家子公司已与埃克森美孚（ExxonMobil Corp）独资子公司SeaRiver Maritime LLC签署两艘液化天然气（LNG）船舶租赁协议，为期10年。 MISC向大马交易所报备，上述协议或定期租船合约是由Polaris LNG Three Pte Ltd（Polaris 3）和Polaris LNG Four Pte Ltd（Polaris 4）所签署。租船合约将从2026年开始。 该集团已与韩国一家造船公司签署协议，将于2023年首季交付。 同时，Eaglestar Shipmanagement Gas (S) Pte Ltd将在造船阶段提供项目管理服务，并负责船舶于2026年交付时的营运和船舶管理。 闭市时，MISC跌14仙或2.03%，收于6.76令吉，市值达301亿8000万令吉。   （编译：魏素雯 & 陈慧珊）   English version：MISC signs 10-year LNG ship lease agreements with ExxonMobil unit

https://theedgemalaysia.com/node/673079

Fitch Ratings revises global mining sector outlook to Neutral

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KUALA LUMPUR (June 30): Fitch Ratings has revised its global mining sector outlook to "neutral" from "deteriorating" due to increased demand from China following earlier reopening, more resilient global GDP growth in 2023 and balanced supply and demand for major mining commodities. In a statement on Thursday (June 29), the rating agency said the earlier-than-expected end to Covid-19 restrictions in China led to a rapid rebound in consumption-driven economic expansion and an increase in forecast of the country’s GDP growth in 2023, to 5.6%. It said as more than 50% of major mining commodities are consumed in China, returning demand supports a more positive view of the sector. Fitch said broad infrastructure investment increases (so far in 1H2023 and in its forecast for 2H2023) and a seasonal construction pick-up in 3Q2023 will further boost demand from the Chinese steel sector. It said Chinese infrastructure investments are underpinned by special-purpose bond issuances and higher local government investment targets. This will support demand for iron ore, metallurgical coal, ferronickel and zinc, it said. Fitch said world economic activity is also holding up better than expected and revised its forecast for global GDP growth in 2023 to 2.4%, up from 1.4% in in December 2022. However, it said this still represents a slowdown from the 2.7% outturn in 2022. Fitch said while demand for and prices of mining commodities have varied in 1H2023, the energy transition and infrastructure spending are supportive of the sector. It said global miners have maintained robust investment discipline since the 2015-2016 commodity downturn, postponing investment projects when returns were uncertain. Supply and demand in major mining commodities remain balanced with no concerns about fundamental oversupply, leading to broadly unchanged short-term price assumptions during Fitch's most recent review of mining price assumptions. Copper and aluminium prices are responsive to economic growth and sentiment. “The year-to-date copper price has held up well at about US$8,400 per tonne, supported by very low global stocks and heightened supply disruptions. “The aluminium market has been better supplied with prices weakening to US$2,100 per tonne, but we expect market sentiment to improve in 2H2023. “The current aluminium inventory levels of 50 days point to market equilibrium,” it said.

https://theedgemalaysia.com/node/639748

百慕大法庭下令云顶香港清盘

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（吉隆坡12日讯）百慕大法庭（Bermuda Court）上周五下令，云顶香港（Genting Hong Kong Ltd）清盘及间接非独资子公司星梦邮轮控股有限公司（Dream Cruises Holding Ltd）清盘。 Alvarez & Marsal代表上述集团周一向香港交易所报备，根据公司法令第161条文，百慕大法庭于10月7日下令云顶香港和星梦邮轮清盘。 云顶香港自6月7日起延迟呈交2021年年度审计报告及2022年中期报告。 根据文告，如果云顶香港和星梦邮轮的清盘有任何重大进展，将适时发布进一步公告。 截至早上11时44分，云顶（Genting Bhd）跌2.04%或9仙，至4.33令吉，共251万股转手。   （编译：魏素雯）   English version：Bermuda Court orders Genting HK to be wound up

https://theedgemalaysia.com/node/636315

Bursa ACE Market-bound Cosmos Technology to be listed on Oct 6

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KUALA LUMPUR (Sept 14): Cosmos Technology International Bhd, which is scheduled to be listed on Bursa Malaysia's ACE Market on Oct 6 at 35 sen a share, said on Wednesday (Sept 14) that it plans to raise about RM22.44 million from its initial public offering (IPO), which involves a public issue of 64.13 million new shares.   According to Cosmos' prospectus which was filed with Bursa on Wednesday, Cosmos plans to use the estimated RM22.44 million gross proceeds to finance among others, the acquisition of a new building and purchase of new machineries. Based on Cosmos' issue price of 35 sen a share and the company's enlarged number of outstanding shares at 256.5 million, the company will have a market capitalisation of about RM89.78 million upon listing, the water technology solutions provider said. Substantial shareholders of Cosmos include Datuk Chong Toh Wee and Singapore-listed MSM International Ltd, which will own 40.5% and 27% stakes in Cosmos respectively after the IPO, according to Cosmos. Chong is also the managing director of Cosmos, the company said. Cosmos said investors' application for the company's shares starts on Wednesday and that the application's closing date is on Sept 22, 2022. Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for Cosmos' IPO in conjunction with Cosmos' planned ACE Market listing, according to the prospectus. Prior to the current IPO, Cosmos was initially listed on Bursa as a LEAP Market entity on March 9, 2020 at 28 sen. "Subsequently, our company was delisted from the LEAP Market on Nov 10, 2021, pursuant to the withdrawal of the listing from the LEAP Market, to facilitate the listing on the ACE Market," said Cosmos, which had on Wednesday organised a press conference in conjunction with the prospectus launch for the company's proposed ACE Market listing. In a statement issued to reporters covering the press conference here, Chong said the ACE Market listing will enable Cosmos to enhance its corporate image among its customers, suppliers, employees and other stakeholders, as well as provide funding for the expansion of Cosmos' business. “With this IPO, we will be able to streamline and consolidate our operations and purchase new machineries to enable us to increase our manufacturing capacity and capability that can take us to even greater heights,” Chong said. Cosmos' financial performance is expected to improve in 2022. Its prospectus shows that the company's net profit is expected to rise to RM5.79 million in its financial year ending 2022 (FY22), from RM5.59 million a year earlier. Meanwhile, Cosmos is expected to record a higher revenue at RM49.12 million in FY22, versus RM33.72 million a year earlier. "Our company presently does not have a fixed dividend policy. As our company is a holding company, our income and therefore, our ability to pay dividends is dependent upon the dividends we receive from our subsidiaries from time to time. "The payment of dividends or other distributions by our subsidiaries will depend upon their operating results, level of cash, retained earnings and gearing, capital expenditure and working capital requirements, business expansion and investment plans, and other relevant factors," Cosmos said.

https://theedgemalaysia.com/node/620732

Rakuten Trade names two new members to executive management team

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KUALA LUMPUR (May 21): Fully-digital equity broker Rakuten Trade, which has activated more than 245,000 trading accounts and more than 20,000 for its US trading services as of April 30, 2022, has named two new members to its executive management team. In a statement, Rakuten Trade CEO Kazumasa Mise said the firm has handled more than RM100 billion in total trading value on Bursa Malaysia since business day one while its clients’ assets under trust were more than RM3.7 billion. “The retail market in Malaysia has also matured tremendously in recent years and with it the Rakuten Trade customer profile, with a growing number of traders [with] more than three years of experience finding our platform a complementary tool to their existing trading strategy,” he said. Mise said Rakuten Trade will expand its trading offerings to include foreign currency wallets, trading access to Hong Kong, and an enhanced reward ecosystem. He said last month it announced its stop order management services for Bursa Malaysia trades. Mise said that with dynamic plans to boost the platform, Rakuten Trade has named two new members to its executive management team. He said deputy chief marketing officer Tracy Anne Leong is a founding member of Rakuten Trade and was responsible for its significant acquisition and debut trading growth since its official launch. He said she currently manages the company’s business development as well as its marketing and communications strategies. The second appointment was its deputy chief financial officer Younne Lim, who has revamped and digitalised the broker’s financial operations. She manages the strategic corporate planning initiatives and identifies solutions to deliver optimal operational efficiencies.

https://theedgemalaysia.com/node/669409

Stocks in EM slip to worst underperformance since 2019 trade war

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(May 31): Stocks in the developing world haven’t had such a bad run since the height of the US-China trade war four years ago. The MSCI Emerging Markets Index is not only heading for a decline in May, but is also poised for a fourth successive month of underperformance against developed-market equities in general, and the S&P 500 Index in particular. That’s the longest streak since 2019, when the gauge trailed its peers for eight successive months through September a time when Washington and Beijing were deadlocked over restrictive tariffs. Despite stellar equity rallies in Latin America and in the semiconductor sector, the broader emerging-market performance is lagging behind because of growth risks in Asia and political uncertainty in emerging Europe, Middle East and Africa. As China’s recovery falters and policy flipflops continue, heavyweight technology stocks in Hong Kong are missing out on the rally by their US peers. Ten out of 11 industry subgroups in the developing nation benchmark have dropped in May, led by property and commodity stocks. The MSCI index is heading for a 1.7% loss in May, while the S&P 500 is poised for a 0.9% gain. The Hang Seng Tech Index is down 7%, compared with an 8.4% advance in the Nasdaq 100.  The underperformance has dragged the emerging-market index to a forward price-earnings ratio of 11.7 times, down from 12.4 in January. That marks a valuation discount of 37% to US stocks and 29% against the broader developed-market universe. Both relative valuations are the lowest since November. Earnings forecasts suggest a choppy road ahead for emerging-market stocks. For the next 12 months, equity analysts remain pessimistic on corporate performance in poorer nations, cutting their average forecast by 0.7% this year. In contrast, estimates for developed markets have steadied and started rising. 

https://theedgemalaysia.com/node/613468

Datasonic obtains RM22.5m contract to supply security documents to NRD

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KUALA LUMPUR (March 24): Datasonic Group Bhd has received a RM22.5 million contract to design, print, supply and deliver various security documents to the National Registration Department (NRD). The contract from the Home Ministry was awarded to Datasonic’s wholly-owned subsidiary Datasonic Technologies Sdn Bhd for a period of 36 months from May 1, according to its bourse filing on Thursday (March 24). The RM22.5 million contract marks the second contract Datasonic has obtained in 2022, with the first being a RM50.12 million contract to supply the NRD with MyKad, MyTentera and MyPOCA raw cards and consumables announced on Feb 17. Datasonic is required to pay a performance bond of RM374,937.26 to the ministry with a validity period commencing from May 1, 2022 to April 30, 2026 as well as implement the Professional Training & Education for Growing Entrepreneurs (PROTÉGÉ) programme as set by the government based on the contract sum, with a minimum number of nine participants. The group said the contract is expected to contribute positively towards its future earnings and net assets per share for the financial year ending March 31, 2023 and the subsequent financial years throughout the duration of the contract. Datasonic’s shares were unchanged at 46 sen on Thursday, giving the group a market capitalisation of RM1.36 billion.

https://theedgemalaysia.com/node/677739

审计费谈不拢 Opcom审计师辞职

Mandarin

（吉隆坡7日讯）Opcom控股（Opcom Holdings Bhd）表示，外部审计师Baker Tilly Monteiro Heng PLT辞职，因为双方无法在审计费方面达成共识。 该集团指出，辞职从周一（8月7日）开始生效，集团正在委任新审计师。 闭市时，该股企于74仙，市值为2亿4818万令吉。   （编译：魏素雯）   English version：Opcom’s auditor resigns amid disagreement over audit fees

https://theedgemalaysia.com/node/634984

YTL Power set to resume uptrend movement, says RHB Retail Research

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KUALA LUMPUR (Sept 5): RHB Retail Research said YTL Power International Bhd is set to resume its uptrend movement after managing to reclaim above the 74.5 sen breakout level last Friday (Sept 2). In a trading stocks note on Monday, the research house said that the stock initially broke above that level while printing a “White Marubozu” bullish candlestick last Tuesday, only to retreat below it the following session, before rebounding during Friday’s session. “Hence, we expect the buying momentum to propel the stock towards the 74.5 sen next resistance, followed by 82 sen — its 52-week high. “If it falls below the 71 sen support, the momentum may reverse as it forms a 'lower low' bearish pattern, below the 21-day average line,” it said.

https://theedgemalaysia.com/node/675166

World economy in a difficult place but not destined to stay there, says World Bank chief

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GANDHINAGAR, India (July 17): The world economy is in a difficult place but it is not destined to stay there, World Bank president Ajay Banga said on Monday (July 17). The World Bank last month cut its 2024 forecast for global economic growth to 2.4% from 2.7% earlier, citing global monetary tightening. "The fact is that the world economy is in a difficult place. It has outperformed what everybody has thought but it won't mean there won't be more challenges," Ajay said on the sidelines of a G20 meeting in the Indian city of Gandhinagar. "Forecast is not equal to destiny. We can change destiny, that's what we should think of right now," Ajay said. 

https://theedgemalaysia.com/node/623152

DXN Holdings eyes re-listing on Main Market, releases prospectus exposure

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KUALA LUMPUR (June 8): DXN Holdings Bhd is offering up to 1.41 billion shares in an initial public offering (IPO) as it seeks to re-list on Bursa Malaysia’s Main Market, according to its prospectus exposure published on the Securities Commission Malaysia (SC) website on Wednesday (June 8). The 1.41 billion shares — 25.1% of its enlarged issued share capital — comprise 1.25 billion new shares and an offer for sale of 160 million existing shares. The issue price as well as the opening and closing dates of the IPO have yet to be fixed. DXN is an investment holding company engaged in provision of management services. Through its subsidiaries, DXN is involved in the sales of health and wellness consumer products through a direct selling model. Previously listed in 2003, it was subsequently delisted in December 2011 following a takeover and privatisation by its founder Datuk Dr Lim Siow Jin.   Its direct selling network consists of members (including stockists) and external distribution agencies who exclusively carry its products to on-sell and distribute to other members and end-consumers, its prospectus exposure said. “Our group’s other business activities that primarily serve to support our core business include conducting laboratory testing services for third parties, offering of lifestyle products and operating a café. “Our top 10 markets in terms of revenue for FY Feb 28, 2021 are Peru, Mexico, India, Bolivia, Malaysia, Philippines, the Middle East, United States, Thailand and Colombia. “Our group has sales branches in these top 10 markets except for the Middle East, where our group uses an external distribution agency structure,” it said. Of the 1.25 billion new shares, a total of 623.13 million shares are allocated to Bumiputera investors approved by the Ministry of Industry and Trade (MITI), Malaysian institutional and selected investors (other than Bumiputera investors approved by the MITI) and foreign institutional and selected investors. The offer shares of 160 million will be allocated to the directors of DXN, eligible employees of DXN and its subsidiaries, persons who have contributed to the success of the group and the Malaysian public. Maybank Investment Bank Bhd is the principal adviser, managing underwriter and placement agent for the IPO.

https://theedgemalaysia.com/node/673353

EU, Japan to deepen chip cooperation — Breton

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TOKYO (July 3): The European Union (EU) will deepen cooperation with Japan on semiconductors, industry chief Thierry Breton said on Monday, as countries move to strengthen control over a technology vital for the defence, electronic and automotive sectors. The EU and Japan will work together to monitor the chip supply chain and facilitate the exchange of researchers and engineers, Breton said. The EU will also be supportive of Japanese semiconductor companies considering operating within the bloc. "We believe that it's extremely important to secure the supply chain of semiconductors," Breton told Reuters in Tokyo, where he is discussing cooperation on chips and artificial intelligence with the government and companies. Japan is offering subsidies to revitalise its chip industry, which retains an edge in materials and equipment but has lost overall global market share, while a Japanese government-backed fund last week agreed to buy photoresist maker JSR Corp for US$6.4 billion to drive consolidation in the industry. Japan is also backing chip foundry venture Rapidus, whose executives are scheduled to meet Breton on Tuesday. "I think it's really an important initiative and going in the right direction," he said of the foundry venture. Plans by Rapidus to produce cutting edge chips rely on support from Belgium-based research company imec and IBM. The deepening cooperation between the EU and Japan comes as the bloc has pledged to reduce its dependence on China, which aims to increase its capabilities in high-end technology such as chips. "We made it very clear we just want to de-risk," Breton said. Breton also met with Japan's Minister for Digital Affairs Taro Kono, Minister of Internal Affairs and Communications Takeaki Matsmoto, and State Minister for Economy Trade and Industry Fusae Ota, for the first EU-Japan Digital Partnership ministerial talks. They agreed to cooperate on undersea cable connectivity, semiconductors and cybersecurity, and in other areas of the digital economy, they said in a joint statement. At a subsequent news conference, Breton said much of the discussion was about AI. He said a further round of talks would be in Brussels in the first half of next year.

https://theedgemalaysia.com/node/633018

TCS获1亿令吉合同 在布城建酒店

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（吉隆坡19日讯）TCS Group Holdings Bhd获得价值1亿838万令吉的合同，以兴建Moxy Putrajaya酒店。 该集团通过独资子公司TCS Construction私人有限公司获得IOI City Hotel私人有限公司授予合同，以兴建1栋19层的酒店。 IOI City是IOI产业（IOI Properties Group Bhd）的间接独资子公司。 Moxy Putrajaya酒店位于布城IOI Resort City的综合城镇内，将与IOI City Mall直接相连，由万豪国际公司（Marriott International Inc）管理。 合同期限为16个月，从2022年9月1日开始，将于2023年12月31日之前竣工。 TCS董事经理拿督郑再盛表示，上述合同将可提高集团的订单及加强收益可见度。 他指出，展望未来，在建筑业经营环境充满挑战的背景下，TCS将保持谨慎。集团正积极应对所面临的挑战，专注于项目的执行质量和及时交付。 “我们继续专注于竞标住宅和商业建筑、基建设施项目以及机构建筑，以利用建筑行业的上升势头。总而言之，在强大订单的支持下，我们已准备好继续前行。” 截至周五休市，TCS挫5仙或1.85%，至26.5仙，市值为1亿144万令吉。   （编译：魏素雯）   English version：TCS bags RM108.38 mil contract to build hotel in Putrajaya

https://theedgemalaysia.com/node/643429

MUIProp, MUIInd, PMCorp, Chinhin, Picorp

English

KUALA LUMPUR (Nov 10): theedgemarkets.com highlighted five stocks with momentum at Bursa Malaysia’s afternoon close on Thursday (Nov 10). Only one stock displayed positive momentum, while the other four indicated negative momentum. The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum. This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher-than-normal volume and price movements. The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time. However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks if they want to ride the momentum. For more detailed financial information and reports on the above-mentioned stocks, please subscribe to AbsolutelyStocks at www.absolutelystocks.com

https://theedgemalaysia.com/node/600164

EVENING 5: Five things you need to know today

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EVENING 5: Supermax invests US$350mil on first phase of US plant Dirty dealings. Corporate battles. Consumer woes. Here are five things you need to know today. 1. Supermax invests US$350 million to build the first phase of a major manufacturing facility in the US state of Texas. 2. A Malaysian firm is among the entities banned by the US for “diverting or attempting to divert US items to Iran’s military programmes”. 3. MAA says total industry volume in Malaysia fell 7.48% month-on-month in November due to a shortage of chips and parts. 4. Tan Sri Muhammad Shafee Abdullah's money laundering trial is postponed due to his and his counsel’s mySejahtera status. 5. A witness claims Lim Guan Eng instigated the offer to solicit a 10% cut of the profits from the undersea tunnel project.  

https://theedgemalaysia.com/node/667680

US agrees on Taiwan trade terms, clouding plans for China talks

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(May 19): The US and Taiwan agreed to boost trade ties, the first tangible results under an initiative announced last year that faces vehement opposition from Beijing and clouds the outlook for a visit to the US next week by a Chinese commerce official. The Taiwan initiative isn’t a formal free-trade agreement and doesn’t address thorny issues such as tariffs, but it’s part of a broader drive to deepen trade ties amid heightened tensions with Beijing. China, which claims Taiwan as its territory, has denounced the trade talks, saying any move to formalise such ties is a change to the uneasy status quo around Taiwan. The agreement was announced hours after the Chinese embassy in Washington said Minister of Commerce Wang Wentao is scheduled to meet next week with Commerce Secretary Gina Raimondo in Washington and US Trade Representative Katherine Tai at an Asia-Pacific Economic Cooperation ministerial meeting in Detroit. The planned meetings with Wang come after US National Security Adviser Jake Sullivan sat down with China’s top diplomat for two days of talks earlier this month as the two countries sought to ease tensions. “The question is the extent to which this will irritate the Chinese, and what will they do about it,” said Bill Reinsch, a former Commerce Department official in the Clinton administration and now at the Center for Strategic and International Studies. The initial agreement announced Thursday under the US-Taiwan Trade Initiative will streamline customs, reduce wait times for trucks and vessels and improve regulation, Tai’s office said Thursday. Tai called it “an important step forward in strengthening the US-Taiwan economic relationship”. “We look forward to continuing these negotiations and finalising a robust and high-standard trade agreement that tackles pressing 21st century economic challenges,” Tai said in a statement. China’s government last year protested Washington’s deepening bilateral engagement with Taiwan. In a statement after the US-Taiwan agreement was announced Thursday, the Chinese embassy in Washington said “the US must not negotiate agreements with sovereign implication or official nature with China’s Taiwan region or send any wrong signal to the ‘Taiwan independence’ separatist forces in the name of trade and economic interactions”. The agreement also comes as President Joe Biden is in Japan to meet with leaders of the Group of Seven nations, with a focus on countering China’s influence. The Taiwan trade initiative was announced last June, days after President Joe Biden initiated the Indo-Pacific Economic Framework for 13 other nations in the region. That deal was designed to counter China’s influence but didn’t include Taipei. The measures announced Thursday will smooth border procedures and cut red tape, making it easier, faster, and less expensive for US businesses to sell products to Taiwan and Taiwanese customers, the trade representative’s office said. The steps on regulatory practices will boost transparency and mechanisms to help small- and medium-sized businesses better understand procedures, it said. The initiative also will address money laundering, denial of entry for foreign public officials, and strengthened protections for whistleblowers, according to the trade office. The US has also been pushing to offer Taiwan a better tax deal to facilitate investment in semiconductors and other high-end technology in the US. Representative Mike Gallagher, the Wisconsin Republican who chairs the House Select Committee on the Chinese Communist Party, said there’s strong bipartisan support for a comprehensive Taiwan free-trade agreement and a tax deal, which he called important for economic and national security. Earlier in the week, US Defense Secretary Lloyd Austin confirmed that the Pentagon was crafting a security assistance package for Taiwan using military equipment drawn from US inventory, and subsequently could seek funding to replenish its stockpiles. “This is part of our long-standing commitment to upholding our obligations under the Taiwan Relations Act and other US policies and to doing our part to maintain peace and stability in the Taiwan Strait,” he told a Senate panel on Tuesday.

https://theedgemalaysia.com/node/649889

Recovery Stocks: Mixed returns for beneficiaries of ‘reopening’ play

English

This article first appeared in Capital, The Edge Malaysia Weekly on December 26, 2022 - January 1, 2023 THE recovery theme was well in play even before Malaysia began its transition to the endemic phase of Covid-19 on April 1 because markets traditionally move ahead of the economy and financial results by at least six months. Some stocks began to rally in the early part of the year as investors anticipated that they would benefit from the reopening of borders. While some companies have continued to gain after the reopening of all economic sectors, profit-taking has had an effect on some stocks despite turning in a better financial performance year on year. The runaway performer in this category is Berjaya Food Bhd (BFood), given the massive 137.21% gain in its share price year to date (YTD). Its annual net profit of RM122.7 million for the financial year ended June 30, 2022 (FY2022) was the highest since FY2015, driven by existing and newly opened Starbucks outlets, as well as the turnaround of its Kenny Rogers Roasters (KRR) restaurant chain. Based on Bloomberg data, the consensus target price for BFood is RM1.19, representing a 16.7% upside over its closing price of RM1.02 on Dec 16. Other consumer stocks like ­7-Eleven Bhd, Kawan Food Bhd, Focus Point Holdings Bhd and Power Root Bhd have also delivered decent returns so far this year, rising between 7.3% and 66%. BFood and Focus Point (up 35% YTD) are Hong Leong Investment Bank (HLIB) Research’s top picks in the consumer sector. The research house is positive on BFood’s Starbucks, which continues to grow via new outlet openings and higher sales from active promotions, while a leaner KRR store concept would enable the group to maintain profitability. On Focus Point, it says the favourable outlook is premised on the continued focus on expanding both the optical and food and beverage (F&B) segments, in particular, new corporate clients in the latter segment, which is expected to contribute sizeable earnings to the group’s bottom line in the coming years. CGS-CIMB Research highlights that demand for Power Root’s products will remain healthy, given the potential for consumer downtrading towards its products, as its premix products are priced more competitively than that of its peers and retail dine-in prices. For Kawan Food, CGS-CIMB expects the sales momentum to continue in the last quarter of the year, driven by higher exports, easing labour shortages and margin expansion. During the year in review, Perak Transit Bhd’s share price doubled on the back of stable earnings expansion, its growth attracting the attention of Datuk Eddie Ong Choo Meng. Having emerged as a substantial shareholder at the end of October with a 6.92% stake, he raised his shareholding to 8.753% on Dec 8. To drive growth more aggressively, the Ipoh-based transport terminal and bus operator aims to replicate its recurring business model in other states in the longer term. Analysts project an upside of 24.6% based on the consensus target price of RM1.57 over Perak Transit’s closing price of RM1.26 in mid-December. In the brewery sector, Heineken Malaysia Bhd and Carlsberg Brewery Malaysia Bhd appear set to climb further, notwithstanding the 21.4% and 15.74% YTD gains respectively in their share price, underpinned by their exposure to the normalisation of travel and tourism, says HLIB Research. In 2023, brewers are expected to post a y-o-y growth in earnings, supported by the absence of the one-off prosperity tax, the full-year reflection of a hike in average selling prices and continued recovery in tourist arrivals. “While there is a risk of beer demand slowdown due to inflationary pressures, higher interest rates and softer economic growth in 2023, we expect beer to retain its inelastic properties — after all, it remains one of the cheapest alcoholic drinks on the market,” the research house said in a Dec 22 note. In the first nine months of 2022, Heineken’s net profit surged 105.69% to RM308.19 million from RM149.83 million. Similarly, Carlsberg’s net earnings almost doubled to RM256.93 million from RM129.57 million. Appearing less inelastic owing to higher input costs — especially freight charges and staff costs — is MR DIY (M) Bhd, whose share price has slipped 15.24% YTD. Though it managed to register a 13.3% rise in net profit to RM336.87 million for the first nine months of 2022, the home improvement products and mass merchandise player highlighted the need for pricing reviews to address continued input cost pressures. An investor favourite for their dividend play, real estate investment trusts (REITs) have seen little change in their share price YTD. Sunway REIT managed to eke out a positive return of 2.84%, as its nine-month net property income ended September jumped 77.13% to RM354.05 million from RM199.88 million in the same period a year earlier, contributed by the retail and hotel segments. Although shares of Pavilion REIT and IGB REIT have dropped 1.6% and 1.82% YTD, they are supported by dividend yields of 6.63% and 6.02% respectively. Banking stocks are seen as beneficiaries of improved economic activity, and the Bursa Malaysia Financial Services Index has climbed 6.7% YTD. Driven by strong interest income and low impairment losses, AMMB Holdings Bhd has enjoyed the biggest increase in share price of 32.81% YTD, followed by Hong Leong Bank Bhd (+10.85%), CIMB Group Holdings Bhd (+6.06%), Public Bank Bhd (+5.77%) and Malayan Banking Bhd (+4.94%). Conglomerate Genting Bhd and its hospitality subsidiary Genting Malaysia Bhd (GenM) have not been able to sustain their gains in the first half of the year from a revival in global tourism. After reaching a high of RM5.34 on June 1, Genting’s share price retraced to below RM5 and is down RM4.5% YTD. GenM has declined 4.37% over the same period. Last month, Genting and GenM hit lows of RM4.01 and RM2.40 respectively because of political uncertainties after the 15th general election, which resulted in a hung parliament before a unity government was formed. The resumption of tourism and business activity has been a catalyst for the travel-related sector this year. Malaysia Airports Holdings Bhd’s net loss narrowed significantly to RM9.04 million in 3QFY2022 from RM58.15 million in 2QFY2022. Despite the recovery in air travel, Capital A Bhd’s share price has slipped 24.68% YTD, as its Practice Note 17 status remains a concern for investors. To address that, Capital A has proposed to sell its aviation business to AirAsia X Bhd (AAX) in exchange for AAX shares. Post-restructuring, Capital A will be a pure digital group with maintenance, repair and overhaul, logistics, digital and fintech businesses. Recently, Capital A also announced its foray into Cambodia, which marks the fifth Southeast Asian destination for the group after Malaysia, Indonesia, Thailand and the Philippines. While the venture is deemed positive, Kenanga Research is of the view that it could take longer than expected before the expansion turns profitable. Financially, Capital A remained in the red with a wider net loss of RM901.31 million for 3QFY2022 against RM887 million a year earlier, impacted by a share of loss from associates and foreign exchange losses. On the healthcare front, the shares of IHH Healthcare Bhd and KPJ Healthcare Bhd have flagged, posting negative returns of 20.98% and 11.71% YTD. Even so, HLIB expects the resilience in IHH’s patient volume growth to continue, underpinned by the opening of additional beds, shift in patient behaviour and growing foreign patient volumes. For KPJ, CGS-CIMB foresees the core earnings per share for the last quarter of 2022 to wane quarter on quarter owing to the impact of the new KPJ Damansara Specialist Hospital 2’s gestation losses and continued cost pressures, which may offset the steady revenue growth elsewhere. However, a recovery may be seen in 2023 and 2024 should there be improvement in patient visitations, revenue intensity and associate earnings, coupled with a normalisation of the effective tax rate from 2023 onwards.   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/667178

JPJ targets over RM5b in revenue collection this year

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KUALA TERENGGANU (May 16): The Road Transport Department (JPJ) aims to collect more than RM5 billion in revenue by year end. Its director general Datuk Zailani Hashim said this is based on several programmes and digitalisation initiatives launched by the department recently. He said the largest collection of JPJ each year is contributed by road tax and driving licence renewal at more than 60%. “Last year, we collected RM4.92 billion. This year, we are confident of being able to collect more than RM5 billion taking into account the digitalisation initiatives and programmes launched by JPJ for the community. “JPJ's collection is one of the highest in the country after the Royal Malaysian Customs Department and the Inland Revenue Board. If we go by last year's statistics, we managed to collect an average of RM11 million a day,” he said after officiating at the Terengganu JPJ Aidilfitri celebration and kiosks here. It was also attended by state JPJ director Zulkarnain Yasin.  Zailani said that thus far, there are 201 JPJ kiosks nationwide, and up to now, RM120.7 million in revenue had been successfully collected through the service. In another development, Zailani said that up to May 12, a total of 9,564 motorists had renewed their driving licence for the maximum period of 10 years. He said that the implementation of the initiative, launched by Transport Minister Anthony Loke Siew Fook, is well received by the public. “Apart from being able to renew the driving licence for a period of 10 years, motorists can also save expenses, as they get a 10% discount,” he said.

https://theedgemalaysia.com/node/673415

Drought menacing Thailand threatens global supply of sugar, rice

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(July 4): Thailand is preparing contingency plans to deal with a potential drought that could last years and squeeze global supplies of sugar and rice. Rainfall across the nation may be as much as 10% below average this monsoon season, and the onset of the El Niño weather pattern could lower precipitation even further over the next two years, according to government officials. Thailand is facing widespread drought conditions from early 2024, authorities have warned. The dire outlook has prompted Thai authorities to ask farmers to restrict rice planting to a single crop to conserve water, and sugar producers see output falling for the first time in three years. A drought is certain to fuel inflation in the Southeast Asian nation as the cost of vegetables, fresh food and meat get pricier on reduced harvests and more expensive animal feed. Prime Minister Prayuth Chan-Ocha has asked state-run power utility Electricity Generating Authority and the Office of Natural Water Resources to help draw up contingency plans to conserve water. So far in 2023, the nation’s rainfall has been 28% below the same period last year, according to official data. El Niño can lead to drier conditions in parts of Asia and Africa, and heavy rains in South America, damaging a wide range of crops globally. Previous El Niños have resulted in a marked impact on global inflation and hit gross domestic product in nations from Brazil to India and Australia. Thailand is seeking to nurture a rebound in economic growth that’s already facing headwinds from a slowdown in China, the nation’s largest trade partner, and a prolonged drought may scupper efforts to keep inflation under check. Thailand has already grappled with record heat this year. “El Niño will pose a bigger worry on growth than inflation,” said Euben Paracuelles, an analyst at Nomura Holdings Inc. “Thailand is a large food exporter, with only half of total output consumed domestically. So the buffers could help limit the near-term inflation impact, alongside government price controls and subsidies.” If El Niño turns severe, it could shave off 0.2 percentage point of gross domestic product this year because drought conditions could coincide with seasonal production in the second half, especially for rice, Paracuelles said. The central bank forecasts Thailand to clock GDP growth of 3.6% this year, accelerating from 2.6% in 2022. Power demand in Thailand hit a record in April when some regions saw all-time high temperatures, forcing companies and households to increase the use of air-conditioning to escape the sweltering heat. The bigger, global impact from below-average rainfall in Thailand will be the hit to crops such as sugar and rubber, and could even threaten the nation’s position as the world’s second-biggest supplier of rice. Shipments tumbled a third to 7.6 million tonnes in 2019, the first year of the previous El Niño. Sugar cane is a sturdy crop, but the nation’s millers have forecast a decline in output. That will cut the supply to the world market and further fuel a rally in refined sugar prices that are hovering around a decade-high. The nation produced about 11 million tonnes of sugar in the 2022-23 season and is estimated to have exported about 80% of its output. Thailand’s lack of long-term mitigation efforts to deal with floods and droughts will likely aggravate the impact of extreme weather on the nation, according to the World Bank. “The frequency of floods and droughts, and the high human and economic cost associated with them, make climate change adaptation and water management important in Thailand,” said Fabrizio Zarcone, the World Bank’s country manager for Thailand. “A more robust framework prioritizing risk mitigation planning, investing in water resources infrastructure, and managing land and water use is needed.”

https://theedgemalaysia.com/node/609081

大马气象局：苏门答腊地震多州有震感 但没有海啸威胁

Mandarin

（吉隆坡25日讯）大马气象局证实，印尼苏门答腊上午9时39分发生里氏6.1级强震后，雪兰莪、霹雳、森美兰、马六甲和柔佛均有震感。 该局在上午10时13分的通告中说：“大马没有海啸威胁。” 根据气象局，印尼苏门答腊北部Payakumbuh第76公里发生地震，震源深度为10公里。   （编译：陈慧珊）   English version：Malaysian Meteorological Department: No tsunami threat to Malaysia but tremors felt in several states after Sumatra earthquake

https://theedgemalaysia.com/node/621245

Developments that blend with nature

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Property developer Gamuda Land has long embraced the idea that humans have an innate desire to connect with nature and incorporated it in their townships' masterplan design. Visitors to Gamuda Land's developments will begin to realise that as soon as they enter its townships, each one is overwhelmed by lush greenery, seemingly reclaimed by the tropical landscape. Even as you make your way through the township to the town centre, you will notice open spaces such as parks and tree-lined streets. So, despite the constant heat and humidity in our tropical climate, you will get a feel that the temperature here is cooler. Grounded on its town-making principle of "listening to what the land has to tell us", Gamuda Land works with the land's natural topography to restore nature and bring biodiversity back to its site. "Biophilic designs encourage a strong connection between the community, attracting them to come out of their house into the natural outdoors. So, when we first came to this site, we did an environmental and biodiversity assessment. We worked with experts to identify native species to be planted in Gamuda Gardens, we widened the existing stream into lakes and we harnessed our engineering expertise to create two waterfalls in our central park with respect to the undulating terrain. What is key to us, is to work with nature and not against it," said Wong Siew Lee, Assistant General Manager of Gamuda Gardens. In the heart of Gamuda Gardens lies five cascading lakes and two waterfalls that make up the wetland portion of the vast biodiverse ecosystem of the 50-acre pet-friendly park. Together with the lush greenery and undulating lawns, the green lung is also a social and recreational hub for the community. As part of its on-going efforts to improve biodiversity and the overall natural environment, the Miyawaki planting method was adopted with the aim to create a dense urban forest. Approximately 77% of the 8,000 trees at Central Park are native species while 33% of the species are classified as having conservation importance. The park is open to both residents in the township as well as the public. It offers numerous recreational facilities including a 5.5km jogging and cycling loop, a 1.5km forest trail where horse-riding activities are available, Adventure Playland, viewing towers and pavilions, picnic boat rides on the lake and bicycle rental for the community to explore the park on wheels. Wong added, "Today, we are glad to see our community living in harmony with nature, surrounded by thriving biodiversity". Biophilic design embraces open air spaces with an abundance of natural light. Large windows that allow natural daylight to flood the room and offering a sweeping view of nature outside, fosters connection and flow between interior and outdoor spaces; skylights, and minimally dressed windows are part of the strategy, too. "This is what we will be bringing to Valeria, our upcoming launch at Gamuda Gardens. Inside the house, residents will have plenty of natural light and views out to the natural greens on and surrounding the site. Outside, the site will boast open green spaces, pollinator gardens and natural habitats, a protective wildlife corridor and convenient access to public transportation as well as surrounding amenities," Wong explained. With only 434 units, Valeria will feature a double volume dining area to create a perception of spaciousness that draws natural light from the outdoors into the centre of the living area and internal garden space giving it an open look and feel. At Valeria, well thought-out designs such as flexible spaces have also been provisioned. These spaces are able to transform into a flexible space for multi-purpose living which can cater to the ever-changing lifestyles of residents. These spaces can be converted into either a home office, gym or even a children's playroom. The balcony area can also act as a usable semi-outdoor space which can be fully enclosed or open whenever necessary. Beyond the home design, the entire precinct of Valeria will also play host to pollinator gardens, a vital aspect in creating and maintaining the habitats and ecosystems that insects rely on for food and shelter. These pollinator gardens, coupled with cascading lakes within the precinct, will ensure the continued thriving biodiversity that is in Gamuda Gardens. These initiatives align with targets set under Pillar 1 of the Gamuda Green Plan 2025: Sustainable Planning & Design for Construction. The Gamuda Green Plan 2025 is a comprehensive framework that charts tangible targets for Gamuda Group, driven on environmental, social and governance (ESG) dimensions over the next five years and beyond. The Gamuda Green Plan targets to achieve 40% reduction in carbon emissions via sustainable master-planning, shared facilities, climate responsive designs and green features, integrated transport planning, energy-efficient buildings with smart features and renewable energy amongst others, compared to business-as-usual.  Climate-responsive design such as the installation of solar PV panels on the rooftop of Gamuda Gardens sales gallery where power generated is used to operate the central lake's fountain and waterfall, while excess energy is utilised to power the sales gallery. In enabling greener transport mobility to reduce emissions, Gamuda Gardens is equipped with charging stations for electric vehicles (EVs) at our commercial hub and a 68km interconnected walking and cycling pathway laid out in the township. Moving forward, all buildings within Gamuda Land's townships will be Green Building Index (GBI) certified which takes into account operational carbon with good land spatial planning, material choice, traffic demand and patterns, energy and water consumption, and waste management.  "As townships take years to develop, we need to mindfully plan for the future and not just for the present. We want to build towns that can stand the test of time - this is a fundamental aspect in our position as town makers," says Wong. Find out more here

https://theedgemalaysia.com/node/610826

Muhamad Umar: Malaysia's 2022 CPO production began strong despite ongoing economic volatilities

English

KUALA LUMPUR (March 8): Malaysia's crude palm oil (CPO) production in 2022 began on a positive note despite the ongoing economic volatilities, said Bursa Malaysia Derivatives chairman Datuk Muhamad Umar Swift. According to Muhamad Umar, who is also Bursa Malaysia chief executive officer, January output grew by 11% to 1.25 million tonnes, compared with 1.13 million tonnes recorded during the same year-on-year period. However, he said while production has not returned to pre-pandemic levels, the demand for edible oil has seen a strong recovery. This comes as markets remain volatile after the Covid-19 pandemic impacted the global economy in 2021 while the commodity sector has not been spared by soaring prices as the world reopens due to disruptions to both production and supply chains across multiple commodity classes, he added. As a result of such events, Muhamad Umar said the prices of CPO for both the physical market and for Bursa Malaysia Derivatives' global benchmark crude palm oil futures (FCPO) contract have reached new historical highs. "In the physical market, the price of CPO reached a high of RM8,400 per metric tonne while for the FCPO spot month contract, the price recently peaked at RM8,757 per metric tonne. At the same time, the price of the third  month FCPO contract breached RM7,000 per metric tonne this year for the first time. "Despite volatile price movements in the CPO market, Bursa Malaysia Derivatives and our FCPO contract showed a resilient overall trading performance in 2021, exceeding its performance in 2020. "In 2021, both our total trading volume and FCPO trading volume recorded historical highs of 18.4 million and 15.6 million contracts traded respectively," he said in his welcome address at the Palm & Lauric Oils Conference & Exhibition on Tuesday (March 8). Looking ahead, Muhamad Umar said as the world reopens, market participants must be prepared to capitalise on heightened price volatilities brought about by uncertain economic recovery, potential changes to global trade policies, increasingly unpredictable weather conditions and the recent conflict between Russia and Ukraine. "And in times of market volatility, exchange-traded derivatives may be used by both producers and consumers of commodities to mitigate risks while also preserving portfolio values. "In this respect, Bursa Malaysia Derivatives will continue our focus on developing a sustainable marketplace by improving our ecosystem and enhancing our products as a reliable hedging instrument against price volatility," he said. Read also: Cooking oils have more room to rally as war deepens supply fears Russia-Ukraine crisis: Palm oil likely the solution to shortage of frying fat, says CPOPC  Palm oil producing countries need to increase production sustainably, says CPOPC director MPOB: CPO price has peaked, projected to decline in near term Govt needs to introduce carbon tax mechanism to facilitate nationwide B20 biodiesel plan, says industry expert

https://theedgemalaysia.com/node/600042

追踪美股走势 马股早盘走低

Mandarin

（吉隆坡17日讯）交易商表示，科技股及非必需消费品股惨遭抛售，拖累美国股市再度下跌，并影响马股今早走低。 截至早上9时，富时隆综指微跌0.87点，至1483.77点，周四收报1484.64点。 富时隆综指高开0.79点，报1485.43点。 下跌股175只，上升股111只，185只无起落，1855只无交易及43只暂停交易。 总成交量为1亿1154万股，总值6116万令吉。 马六甲证券私人有限公司表示，由于市场参与者对英格兰银行的加息决定做出反应，隔夜美国股市大幅下跌。 “由于美联储在最近的联邦公开市场委员会会议上变得更加鹰派，投资者变得谨慎，并继续消化美联储加快缩减债券购买的步伐。” “因此，我们认为本地市场波动仍然存在，呈下行倾向。” 券商表示，追踪华尔街走势，交易员可能会谨慎交易，尤其是科技股，以及在州选举之前将关注砂拉越股票，并在大宗商品价格走强的背景下，寻找种植股和能源股。 重量级股项马银行（Malayan Banking Bhd）和联昌国际集团（CIMB Group Holdings Bhd）各跌3仙，分别报8.08令吉和5.20令吉，IHH医疗保健（IHH Healthcare Bhd）升6仙，至6.56令吉，大众银行（Public Bank Bhd）、国油化学（Petronas Chemicals Group Bhd）及国家能源（Tenaga Nasional Bhd）分别企于4.03令吉、8.68令吉和9.24令吉。 至于热门股，开泰（ATA IMS Bhd）降1仙，至67仙，Fast Energy Holdings Bhd凭单涨3仙，报3.5仙，华大工业（Hwa Tai Industries Bhd）起5仙，至72仙，科恩马（KNM Group Bhd）扬1仙，报15仙，而大稳控股（Ta Win Holdings Bhd）则持平于12.5仙。   （编译：魏素雯）   English version：Bursa Malaysia lower in early trade, tracking US equities

https://theedgemalaysia.com/node/650126

2022 - Newsmakers: Trials and tribulations

English

This article first appeared in The Edge Malaysia Weekly on December 26, 2022 - January 1, 2023     Former Goldman Sachs Group Inc banker Apart from Datuk Seri Najib Razak, former Goldman Sachs Group Inc banker Roger Ng Chong Hwa is the only other person to have been found guilty in court in the 1Malaysia Development Bhd (1MDB) debacle. In a criminal trial in Brooklyn, New York, that spanned almost two months, Ng was convicted by a federal jury in April this year. He faces up to 30 years in prison. Ng, who was Goldman’s head of investment banking in Malaysia, was convicted on all three charges involving conspiring to violate US anti-bribery laws and launder money. The 49-year-old was found guilty on two counts of conspiring to violate the US Foreign Corrupt Practices Act in relation to 1MDB by bribing government officials in Malaysia and Abu Dhabi through bond offerings that Goldman Sachs handled. He was also convicted on a charge of conspiracy to launder money. Ng’s lawyers have said they would appeal the decision. His sentencing has been delayed several times, the last was supposed to be in early December. According to Reuters, the new date is in February next year. Ng also awaits trial in Malaysia, where he faces four charges of abetting Goldman Sachs over the sale of 1MDB bonds valued at US$6.5 billion by dropping material facts and making false statements. — By Timothy Achariam   Sixth prime minister of Malaysia Former prime minister Datuk Seri Najib Razak’s conviction in the SRC International case was upheld by the Federal Court on Aug 23, 2022. The decision is said to have restored the people’s confidence in the judiciary but for Najib, 69, he faces the ignominy of being the first former prime minister and highest-ranking politician to be convicted and sentenced in Malaysian history. Najib was first arrested and charged in July 2018 on three counts of criminal breach of trust, three counts of money laundering and one count of abuse of power involving RM42 million of SRC International Sdn Bhd’s funds. SRC was a unit of 1Malaysia Development Bhd (1MDB). The High Court convicted him of the charges in July 2020 and sentenced him to 12 years in jail along with a fine of RM210 million. After a lengthy court battle where the theatrics of the lawyers on both sides were often on display, a five-member Federal Court bench led by Chief Justice Tun Tengku Maimun Tuan Mat affirmed the decision of the Court of Appeal, which had upheld the High Court’s verdict. Najib, who was PM from 2009 to 2018, is serving his sentence in Kajang Prison. Apart from applying for a royal pardon, he has also filed an application for a judicial review. Although incarcerated, Najib’s presence in local politics can still be felt. He appears to be active on social media and frequently posts commentaries on political developments in the country on Facebook and Twitter. In the Nov 19 general election, his eldest son, Datuk Mohd Nizar Najib, contested and won on a Barisan Nasional ticket the Peramu Jaya state seat, which is part of the parliamentary constituency of Pekan, previously held by Najib and his father for decades. Najib still faces a string of charges against him, namely four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount. — By Kamarul Azhar   Former Goldman Sachs Southeast Asia unit chief Tim Leissner was thrust into the spotlight this year when he dropped several bombshells in the New York trial of Roger Ng Chong Hwa, the former head of investment banking at Goldman Sachs Malaysia and his accomplice in the 1Malaysia Development Bhd (1MDB) heist. Leissner, who was the prosecution’s star witness, testified to sordid extramarital affairs, exorbitant kickbacks — from established figures in Malaysia to relatively little-known individuals — and an intricate web of funds belonging to 1MDB that made its way around the global financial system as the thieves conspired to loot the company and cover their tracks. Leissner was convicted of charges similar to those of Ng, but pleaded guilty in August 2018 and agreed to cooperate. He was ordered to forfeit US$44 million stolen from 1MDB. In his testimony, Leissner cast an unflattering spotlight on how Goldman had operated to exploit the apparent weaknesses in Malaysia’s institutions and lack of checks and balances to secure itself a very attractive mandate for 1MDB’s cumulative US$6.5 billion bond issuances. Leissner also came clean on his own role and machinations in the multibillion-dollar theft from 1MDB. To reap as much benefit as he could, he even stole millions of dollars that his partner in crime and alleged mastermind Low Taek Jho (Jho Low) had asked him to retain for safe-keeping. He testified that former prime minister Datuk Seri Najib Razak had sought jobs for his children at Goldman in return for the bank’s bond mandate. Using his influence, Leissner then helped Najib’s daughter Nooryana Najwa Najib land a position at private equity firm TPG Inc. Leissner also spoke of his extramarital affair with Datuk Rohana Rozhan, the former CEO of media company Astro Malaysia Holdings Bhd. He also testified that he had bought her a US$10 million home in London in 2013 after she had threatened to expose his illegal deals involving 1MDB. Although Leissner pleaded guilty and cooperated with authorities to testify against Ng, he still faces almost 20 years in jail for his crimes. — By Timothy Achariam   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/639802

G Capital appointed non-revenue water specialist for Sarawak project

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KUALA LUMPUR (Oct 12): G Capital Bhd has been appointed as a non-revenue water (NRW) specialist for a project in Kota Samarahan, Sarawak. In a bourse filing, G Capital said its 51%-owned subsidiary G Capital Water Solutions Sdn Bhd received a letter of award from main contractor Exxor Technologies Sdn Bhd on Tuesday (Oct 11), appointing the unit as a NRW specialist for a "70km leak detection and pipe inspection" for the Sarawak Rural Water Supply Department. Kuching-based Exxor Technologies is involved in the supply and installation of industrial machinery equipment. The project is expected to contribute positively to G Capital’s earnings for the financial year ending Dec 31, 2022, and is estimated to be completed within two months from October 2022. For the cumulative six months ended June 30, 2022, G Capital posted a net loss of RM8.52 million, versus a net profit of RM798,000 a year ago, in spite of an increase in revenue to RM11.83 million from RM4.12 million. Its shares closed half a sen or 1.06% higher at 47.5 sen on Wednesday, translating into a market capitalisation of RM152.33 million.

https://theedgemalaysia.com/node/603168

Technology the focus in 2022 as market remains flush with liquidity

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This article first appeared in Capital, The Edge Malaysia Weekly on January 10, 2022 - January 16, 2022 AFTER a lacklustre performance by most sectors in 2021, investors are hoping for a rebound this year. But is that likely and, if so, in which sectors? Early indications are not so promising. Last Wednesday, investors in the US were spooked by the latest Federal Reserve meeting minutes that signalled interest rate hikes may take place sooner than expected. The tech-heavy Nasdaq plunged more than 3% while the Dow Jones and S&P 500 lost 1.07% and 1.94% respectively. A strong pullback in the US markets could trigger a global sell-off, especially as stocks continued to climb to record highs the previous week, spurred by optimism that corporate earnings would be robust. Market liquidity is another factor to keep an eye on, as global markets may experience monetary tightening later this year. Kenanga Research head Koh Huat Soon is not unduly worried, however. “I don’t think the central bank will raise the OPR (overnight policy rate) so soon, and the earliest could be in September. I don’t think liquidity will disappear before that. Moreover, the market has priced in a hike of 50 basis points this year, so I think there will be ample liquidity this year,” he tells The Edge. Nevertheless, should there be an increase in the OPR and statutory reserve requirement ratio (SRR), the market may see heightened volatility as liquidity reduces, he says. This year, Koh continues to favour the technology, gaming and oil and gas (O&G) sectors. “The thematic storyline for technology is still in place because of chip shortages. There is a lot of pent-up demand, which will translate into real earnings. So, I believe technology firms will continue to deliver strong growth,” he says. But a major concern in the sector is valuations, which are deemed expensive since the sector has enjoyed a longer run than most. Should investors wait for better timing? “I don’t know the market timing. But I suppose if you are really underinvested, you may want to have exposure to technology stocks,” says Koh. Bursa Malaysia’s Technology Index gained 38.57% last year, making it the best-performing sector in the local equity market. The valuations of local tech stocks hit a peak in 1Q2021, with the average price-earnings ratio (PER) surging to 47.32 times before moderating to 40.52 times and 41.61 times in 2Q and 3Q2021, according to Bloomberg data. In the final quarter of last year, the average PER rose slightly to 43.21 times. Inari Amertron Bhd, which became a constituent of the FBM KLCI last month, enjoyed a 52% jump in market capitalisation last year and is now valued at more than RM14 billion. Other technology giants, such as Malaysian Pacific Industries Bhd, Vitrox Corp Bhd and Greatech Technology Bhd, also had a fantastic year. Their market caps grew 92.1%, 44.8% and 40.2% to RM10.5 billion, RM9.3 billion and RM8.7 billion respectively. On the other hand, cheap valuations are expected to drive gaming and O&G stocks higher, according to Koh, who anticipates the latter being supported by projections of US$70 to US$75 per barrel this year. Danny Wong, CEO of Areca Capital Sdn Bhd, notes that the 2022 strategy is a continuation from the previous year. “Because of the pandemic and lockdowns, it [the recovery] has been delayed. The recovery and reopening plays are still there,” he says. “I am okay with sectors like banking, which is a proxy to recovery, as well as selected consumer and gaming stocks. On a longer-term basis, I am positive on growth, export-oriented, technology and industrial stocks.” Wong believes that technology stocks will continue to attract investors, provided the share prices do not climb too high. “You cannot be overly bullish on any counter. While investors are willing to pay slightly higher on the PER side for growth stocks, technology players must be able to demonstrate their growth trend, which is supported by fundamentals.” Victor Wan, head of research at Inter-Pacific Securities, agrees. He notes that tech appears to be the only sector that will continue seeing strong earnings growth. On key risks for the equity market this year, Wong is concerned about the emergence of new Covid-19 variants as well as a fresh wave of infections. Monetary policy can also be used to dampen economic growth if tightening begins too early or is used too aggressively to deal with inflation. Wong, however, believes that is unlikely to be the case. “I don’t think Bank Negara Malaysia will react very aggressively. It is a cost-push inflation and not driven by spending. Addressing the country’s fiscal position is more important as the debt level is more of a concern and there should be a boost in income collection for the country,” he points out. Touching on political risks, as 2022 could be an election year for Malaysia, Wong opines that it may not be a bad thing if the current political landscape is a concern for the equity market. “Sentiment-wise, it may have an impact on the market. But the reality is that we need a stronger and stable government. Political stability will help improve market sentiment,” he says. More bullish market sentiment is especially crucial to attract foreign funds, says Wong. “For Malaysia to be back on investors’ radar screens, we need to show political stability and growth. “We can’t just rely on the government to do pump-priming, which is not enough. We need foreign direct investments and investors to come in, to boost our economy.” A laggard in the region last year, Malaysia could play catch-up in 2022 if there is more stability in government policies. “We are still positive on corporate earnings, in line with the reopening of the economy. Commodity prices will remain at current levels for the next few months because of the supply issue as well as global recovery,” says Wong. Wan sees a better market outlook underpinned by the economic recovery, provided that the spread of the Omicron variant does not get worse. When the economy recovers further, commodity prices are expected to remain robust. The local equity market will also be supported by the reinstatement of a stamp duty cap on share trading, albeit with a higher rate of 0.15% from 0.1% previously. “The stamp duty hike will still have an impact on the market. It takes time for investors to get used to the higher stamp duty rate,” says Wan. Still, he believes there could be more interest from foreign funds with the focus more on liquid and big-cap stocks. Koh cautions the potential for excessive US monetary tightening, and the tapering of its bond purchases may trigger a pullback in US markets and subsequently lead to a global sell-off. “The correlation between the US and local market is 50%, based on the past 12 months’ performance. Given that US stocks have become expensive, it seems that risks outweigh rewards at the moment. Anyway, the pullback may not happen so soon, maybe later this year,” he says. Most analysts are neutral on the construction, property and consumer sectors. Koh says replenishment prospects seem challenging for the construction sector as public project rollouts are being hindered by the government’s weak fiscal position, while there will be fewer private projects because of the reduced office needs post-pandemic as well as an oversupply of high-rise residential units. In his view, the property sector lacks sustainable earnings visibility and growth to justify a rerating in valuations. Meanwhile, environmental, social and governance (ESG) issues plaguing the plantation and O&G sectors are a concern to Wong. “You have to be selective because some institutional investors may temporarily shy away from them, until they can reduce their ESG risk,” he says. The following are some of the recommended stocks in 2022:   Inari Amertron Bhd Outsourced semiconductor assembly and test player Inari remains a favourite pick among research outfits due to its role as a proxy for the growth of 5G through its radio frequency (RF) business, which is set to benefit from the expected increase in demand for 5G smartphones going into FY2022. AmResearch highlighted that the group’s positive prospects arise from the resilience of its RF earnings due to higher chip complexity in 5G phones, as well as its continuous efforts to enhance and diversify its revenue streams. The consensus target price for Inari is RM4.62, implying an upside of 17.9% over its closing price of RM3.92 last Thursday. The stock rallied 52% in 2021. As the only technology stock on the FBM KLCI, RHB Research is of the view that potential new customer wins and any value accretive acquisitions will provide further upside to Inari’s share price. For 1QFY2022 ended Sept 30, 2021, Inari posted a 52.6% jump in net profit to a record high of RM106.93 million from RM70.07 million a year earlier. According to Bloomberg data, its net earnings are expected to hit another record high of RM125 million in 2QFY2022 before moderating to RM88 million in 3QFY2022.   Kelington Group Bhd Having doubled in 2021, Kelington’s share price is set to outperform this year. Kenanga Research has a target price of RM2.50 for the stock, which translates to an upside of 41.2% over last Thursday’s closing price of RM1.77. “Kelington ended the year with a bang after securing RM195 million (RM85 million on Dec 6 and RM110 million on Dec 22) worth of ultra-high-purity-related jobs in December alone, propelling the value of job wins to RM1.18 billion in 2021, while the current order book soared to RM1.23 billion,” the research house notes. “The RM85 million award was for a customer involved in solid state memory while the RM110 million award was for a silicon wafer manufacturer. With the amount of orders on hand, we are sanguine for a strong 4QFY2021 performance, followed by a record FY2022.” Kelington provides ultra-high-purity gas delivery solutions to the electronics and semiconductor industries. Its net profit for the first nine months of 2021 doubled to RM20.86 million from RM9.58 million in the same period a year earlier.   Genting Bhd For RHB Research, Genting remains its top pick among casino operators, with a target price of RM6.10, due to its attractive EV/Ebitda valuation of 6.1 times, versus the average of 11 times among its peers in the region. This provides investors a cheaper entry into the “tourism recovery play”. “Moreover, further upside could come from the stronger-than-expected Resorts World Las Vegas contribution, as management mentioned that the group is still in the early stages of ramping up the business. A potential value-unlocking monetisation, via a listing exercise, is another major catalyst,” says the research house. Kenanga Research has a higher target price of RM6.38 for Genting, which is in deep value. “It is a good pick for recovery play as its business should recover quickly once cross-border restrictions are relaxed and lifted, especially for Genting Singapore and Genting Malaysia Bhd. The new Resorts World Las Vegas could be a wild card, judging from the initial data. However, a key risk remains — if there are more related-party transactions in the future.” Genting was in the red in 9MFY2021, with a higher net loss of RM1.24 billion, against RM1.05 billion in 9MFY2020.   RHB Bank Bhd Kenanga Research sees RHB as a strategic pick in the pursuit of a digital banking licence. It believes a successful award in 1Q2022 could spur sentiment for the stock. “RHB Bank is the only listed bank that has applied for a digital banking licence, for which we think it has favourable odds of winning, thanks to Axiata Digital (via Boost) already having a strong presence in the e-money/e-wallet space. This should assist penetration of digital banking products and accelerate adoption, which is one of Bank Negara’s aspirations. Having said that, it is not expected to be a meaningful earnings contributor in the near term.” Having the second-highest dividend yield in the banking industry, of 5% to 6%, is another plus point for the group. So far, it has declared a 15 sen dividend for FY2021. Kenanga has a target price of RM6.50 for RHB, while that of Hong Leong Investment Bank Research is RM7 as it believes the interest rate upward cycle and economic recovery will benefit the banking group. AmResearch, which has a target price of RM6.90, says RHB is seen as being in a strong capital position with a common equity tier-1 ratio of 16.8%, as well as trading at an attractive price-book value of 0.7 times in FY2022.   Dialog Bhd Dialog was one of the worst-performing FBM KLCI counters last year, with a decline of 20.4%, after touching a recent peak of RM3.06 in October. Nonetheless, Kenanga Research is hopeful that 2022 will be a year of recovery for the O&G support services provider, given the gradual resumption of activities. The research house says Dialog’s stable midstream operations provide a defensive base to cash flow and earnings. As Petroliam Nasional Bhd’s (Petronas) Pengerang Integrated Complex is set to commence operations soon, it will help boost prospects of further investments in Pengerang. Kenanga’s target price of RM3.50 for Dialog implies an upside of  31.1% over its closing price of RM2.67 last Thursday. The stock is also a top pick for MIDF Research, which has a target price of RM3.80. In 1QFY2022 ended Sept 30, 2021, Dialog’s net profit slipped 12.14% to RM128.82 million from RM146.62 million a year earlier, mainly dragged by slower downstream activities because of the Covid-19-related lockdowns and slower activity levels. Meanwhile, AmResearch favours Dialog for its resilient non-cyclical tank terminal and maintenance-based operations.   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/668827

Washington and Tokyo vow closer chip cooperation

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TOKYO (May 27): The US and Japan will deepen cooperation in the research and development of advanced chips and other technologies, they said on Friday (May 26), the latest sign of the two allies strengthening ties in semiconductors. The move, which also includes collaboration on quantum computing and discussions on artificial intelligence, comes as both Washington and Tokyo reduce exposure to China and work together to expand chip manufacturing and secure advanced components essential for economic growth. The US, Japan and other members of the Group of Seven advanced nations last week agreed to "de-risk" but not decouple from China, underscoring the deep concern among advanced democracies about China's rising technological might and its lockhold on technology supply chains. In a joint statement, the two countries agreed to increase cooperation between their research and development hubs, as they map out future technology collaboration. The statement came after Japan's Minister of Economy, Trade and Industry Yasutoshi Nishimura met in Detroit with US Secretary of Commerce Gina Raimondo. The two countries agreed to work together "to identify and resolve geographic concentrations of production undermining semiconductor supply chain resilience". They also committed to strengthening supply chains by collaborating with emerging and developing countries. Japan has established Rapidus, a new chipmaker that is working with International Business Machines Corp (IBM) to develop advanced logic semiconductors, and is offering subsidies to US memory maker Micron Technology Inc so it can expand production there. Japan, along with the Netherlands, has also agreed to match US export controls that will limit the sale of some chipmaking tools to China. Raimondo on Thursday met China's Minister of Commerce Wang Wentao in Washington, where the pair exchanged views on trade, investment and export policies.

https://theedgemalaysia.com/node/672306

Boustead sets June 28 for delisting from Bursa Malaysia

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KUALA LUMPUR (June 23): Boustead Holdings Bhd is set to be delisted on June 28 from the Main Market of Bursa Malaysia Securities Bhd. In a bourse filing on Friday (June 23), its entire issued share capital will be removed from the official list, in accordance with the Main Market Listing Requirements. In an earlier filing, Lembaga Tabung Angkatan Tentera (LTAT), via UOB Kay Hian Securities (M) Sdn Bhd, had posted a compulsory acquisition notice to dissenting holders on June 16, saying that it will pay for the shares mandatorily purchased from them in cash. It added that LTAT will take the remaining shares in Boustead Holdings after the expiration of one month from the date of the notice, or after 14 days following the posting of the names and addresses of all other dissenting holders. Last month, LTAT accumulated an over 90% stake of Boustead Holdings Bhd — reaching the threshold that paves the way for its privatisation of the company. At the time of writing, Boustead Holdings’ share price stood unchanged at 85.5 sen, with a market capitalisation of RM1.73 billion.

https://theedgemalaysia.com/node/677018

China’s home sales drop most in a year as slowdown worsens

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(Aug 1): China’s home sales tumbled the most in a year in July, underscoring why policy makers are seeking to address a property slowdown that’s weighing on the economic recovery. The value of new home sales by the 100 biggest real estate developers fell 33.1% from a year earlier to 350.4 billion yuan (RM220.82 billion), according to preliminary data from China Real Estate Information Corp. The drop was the second in a row, after four months of gains. Sales slid 33.5% month-on-month. The slump in transactions is a blow to developers which need cash to alleviate a multi-year credit crisis that is showing no sign of easing. Country Garden Holdings Co, which faces US$2.9 billion in debt payments for the rest of the year, cancelled a share placement overnight, according to IFR. “The weak sales trend, if continued, will lead to more developers, especially private ones, to default in the near future,” Raymond Cheng, head of China and Hong Kong research at CGS-CIMB Securities, said before the figures were released. China’s State Council called on cities to start introducing policies to ensure the healthy development of their property markets, China Central Television reported after a meeting chaired by Premier Li Qiang on Monday (July 31). The Communist Party’s top decision-making body last week pledged to optimise and adjust policies for the property sector. The Politburo also dropped a reference to President Xi Jinping’s mantra that homes are for living in rather than speculation. Existing policies have so far failed to sustain a housing rebound, putting the government’s 5% annual economic growth target at risk. Home prices have resumed falling while property investment continues to shrink. Chinese authorities are moving to address developers’ funding strains. In July, regulators extended loan relief for builders to ensure the delivery of homes under construction. The securities watchdog vowed to ensure developers’ funding in both debt and stock markets.

https://theedgemalaysia.com/node/639273

顶级手套暂停派息以保存现金

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（吉隆坡7日讯）由于手套平均售价低及来自中国的价格竞争，工厂使用率从2022财年第二季的52%，降至第四季的35%，顶级手套（Top Glove Corp Bhd）暂时停止派发股息，以保存所持现金。 大马投资银行今日在报告中指出，顶级手套在汇报会上向分析员说，最终客户的存货已达6至7个月的峰值，预计到2023年中（2023财年末季）才进行补货。 丁腈和乳胶橡胶手套的平均售价仍在下降，每千只跌了0.50至1美元，与7、8月以来的按月跌势一致。 然而，9月整体平均售价维持在每千只24美元，大马投行表示，如果平均售价上涨5%，顶级手套10月平均售价将达25美元。 顶级手套的盈亏平衡厂房使用率为60%。 “我们认为，该集团可能在9月净亏500万至600万令吉。” “至于2023财年，我们预计首3个季度的亏损可能会继续收窄，并在末季实现盈亏平衡，得益于客户补货。” 中国丁腈手套9月平均售价为每千只15美元，较大马的20美元，折价25%。 我国在全球橡胶手套出口市场的份额从2019年的64%，降至2022年51%，而中国的市场份额则从9%，增至20%。 尽管如此，大马投行维持顶级手套的“守住“评级，目标价60仙不变。 休市时，该股跌3仙或4.44%，报64.5仙，达6233万5800股易手。   （编译：陈慧珊）   English version：Top Glove halts dividend payout to preserve cash

https://theedgemalaysia.com/node/651779

Tuanku Muhriz: Leaders must be sincere, put country's interests above self

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KUALA PILAH (Jan 14): Yang di-Pertuan Besar of Negeri Sembilan Tuanku Muhriz Ibni Almarhum Tuanku Munawir said leaders who have been given the mandate by the people must possess sincerity to serve and put the interests of the country above their own. He said this is because the continuous conflict and narrow political culture only show Malaysia as a country which is unstable and fragile. "Although there are differences in our ideologies and agenda among us, I am sure that there are similarities, especially in the agenda for development and people's welfare, to establish a more prosperous country,” he said. He said this at the state investiture ceremony, held in conjunction with his 75th birthday celebration at the Balairong Seri, Istana Besar Seri Menanti, near here, on Saturday (Jan 14).   Tunku Ampuan Besar of Negeri Sembilan, Tuanku Aishah Rohani Almarhum Tengku Besar Mahmud, was also in attendance. Tuanku Muhriz also called on leaders to defend, protect and implement the principles of the Rukun Negara, in addition to paying attention to the principles of the Supremacy of the Constitution and the Rules of Law, which are closely related to the concept of separation of powers. “The separation of powers must continue to exist, so that responsibilities can be executed without any interference and disturbance, thus avoiding any forms of abuse of power and ensuring justice for all parties,” he said. Meanwhile, he said the momentum of Negeri Sembilan's economic recovery in 2021 is seen to continue to be strong, with a positive growth of 3%. This is due to the state government's proactive efforts in dealing with post-Covid-19 challenges, as well as the formulation of strategies to boost inclusive economic growth. Tuanku Muhriz also congratulated the state government for successfully recording a total revenue collection of RM521 million in 2022, exceeding the initial target of RM432 million. However, he said, the outlook for the world economy this year is expected to be bleak and likely to experience a slowdown, with Malaysia not being spared from being affected by global economic uncertainty. Therefore, he urged the state government to strengthen its cooperation with the federal government in dealing with the situation, thus giving serious attention to the challenges of the recession for the good and well-being of the people. In addition, Tuanku Muhriz also called on the public sector to further improve the efficiency of governance and management systems, as well as the delivery of services to the people. “It (public sector)  needs to realise this effort continuously, based on the principle of working transparently, ethically and with integrity. The public sector is an important machinery which plans the course of administration, the process of formation and implementation of all policies introduced by the government,” he said.

https://theedgemalaysia.com/node/641337

Kerjaya Prospek consortium bags RM1.45b factory job from Texas Instruments, confirms The Edge report

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KUALA LUMPUR (Oct 26): Kerjaya Prospek Group Bhd said a consortium comprising its unit and South Korea-based Samsung C&T Corp has bagged a contract from Texas Instruments Electronics Malaysia Sdn Bhd to build a factory in Melaka for RM1.45 billion. This confirms The Edge weekly's report for the week of Oct 10-16, citing people with knowledge of the matter, that Kerjaya Prospek and Samsung C&T Corp are confident of securing their first joint project in Malaysia worth at least RM800 million this year after entering into a partnership in June. In a filing with Bursa Malaysia on Wednesday (Oct 26), Kerjaya Prospek said the joint venture (JV) between its unit Kerjaya Prospek (M) Sdn Bhd (KPM) and Samsung C&T (KL) Sdn Bhd had received a letter of award to build and complete TIEM2 bump/probe/AT factory construction at Taman Perindustrian Batu Berendam, Free Trade Zone, Melaka. Samsung C&T has a 70% stake in the JV, while KPM holds the remaining 30%. Kerjaya Prospek said the project will commence on Nov 21, and be completed within 28 months. It said the contract is expected to provide an additional stream of revenue for the group over the next two to three years. Earlier, Kerjaya Prospek and Samsung C&T Corp announced that they will jointly explore large-scale construction contracts exceeding RM300 million in the country. The pact is effective for five years, with automatic renewal of one-year periods. At the midday break on Wednesday, Kerjaya Prospek was unchanged at RM1.19, with 10,000 shares traded.

https://theedgemalaysia.com/node/604678

海豚物流突破4令吉 创新高纪录

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（吉隆坡21日讯）海豚物流（Complete Logistic Services Bhd）一度飙升53仙或15.19%，至4.02令吉，创下新高纪录。 截至下午3时58分，大马交易所最大上升股海豚物流回吐了部分涨幅，报4.01令吉，共91万3500股转手。 该公司共发行了1亿2865万股，根据每股4.01令吉，市值约5亿1589万令吉。 海豚物流的股价飙升至当前水平，是因为该公司在周三（1月19日）透露，Hextar Tech私人有限公司及拿督王子铭自愿收购了尚未持有的海豚物流股权后，把持股权累积至73.42%，包括9445万股。 Hextar Tech及王子铭在去年11月30日宣布收购计划。   （编译：魏素雯）   English version：Complete Logistic tops RM4 at record high

https://theedgemalaysia.com/node/652914

Adjustment on fuel subsidy likely on the cards in revised Budget 2023

English

KUALA LUMPUR (Jan 25): An adjustment of the fuel subsidy in 2023, albeit in a targeted measure, is expected to be on the cards in the revised Budget 2023. In a report on Wednesday (Jan 25), RHB Research group chief economist and head of market research Dr Sailesh K Jha said Budget 2023, which will be announced on Feb 24, shows limited possibility of significant tax policy reforms and reduction of other subsidies being announced. Malaysia is predicted to maintain a strong business cycle and core consumer price index (CPI) inflation that is decreasing (although still higher than normal) in the first half of 2023 (1H2023). Additionally, commodity prices are expected to remain steady in 1H2023 as the global economy slows. “Our view is that the re-opening of China is unlikely to have a significant impact on economic activity in the giant economy and global growth in 1H2023, the timing is appropriate for a reduction in fuel subsidies to be announced on Feb 24,” he added. He further added that the government is likely to highlight the targeted fuel subsidy policy to international rating agencies.    “In the summer, international rating agencies are likely to hold discussions with the Ministry of Finance, and this is the one policy adjustment which the government can highlight to these entities to buy more time to announce and implement a significant fiscal consolidation path,” said Sailesh in the report. He added that from a monetary policy perspective, RHB maintains the view that the overnight policy rate (OPR) will peak in the 3.0% to 3.5% range in 2023, with the balance of risks tilted towards a print of 3.00% to 3.25%. “The uncertainty around our OPR forecasts stems from the timing, quantum, and scope of the targeted fuel price adjustment,” he stated. He said Bank Negara Malaysia believes that inflationary pressures are widening, although moderating, and are likely to remain elevated in 1H2023 even without a fuel subsidy adjustment. “From what we observe in close to real time as of the second week of February from our proprietary satellite images/machine learning derived data base is that consumer spending remains resilient and well above trend, while tourist arrivals are accelerating above trend. “In addition, labour market conditions remain robust even though the economy has been slowing since 4Q2022 (fourth quarter of 2022) (which is a phenomenon we are observing in many Asian economies),” added the economist. Sailesh added core CPI inflation will remain sticky for several months at around 0.25% to 0.50% month-on-month if a modest targeted fuel price adjustment materialises in 2023. “The most impacted sectors initially could be the transport and food & non-alcoholic beverage sectors within core CPI inflation. The second round effects could be felt in the services sectors with the restaurants & hotels sectors relatively more impacted,” he said. The December inflation report indicated services sector inflation on a momentum basis is up while goods inflation is moderating but is still elevated. “In our view, the dynamics of inflation have shifted to being more demand side driven and will likely remain so in 1H2023 compared to supply side driven for most of 2022 with commodity price shocks and supply side congestions being at the forefront in terms of price pressures last year,” he stated. December headline CPI printed at 3.8% year-on-year (y-o-y) versus the Bloomberg consensus estimate of 3.9% and the November print of 4.0%. December core CPI printed around 4.1% y-o-y versus the November print of around 4.2%.

https://theedgemalaysia.com/node/614235

兴业：常成控股有望进一步攀升

Mandarin

（吉隆坡30日讯）兴业零售研究表示，常成控股（Jaya Tiasa Holdings Bhd）有望进一步攀升，因为该股昨天从盘中低点反弹后，形成正面烛台。 该研究机构指出，如果反弹继续突破1.06令吉即时阻力位，看涨势头可能推动该股升至1.14令吉阻力位，然后是1.23令吉52周高位。 “相反，跌破92.5仙支撑位将触发卖压，因为它形成了‘更低低点’看跌结构。”   （编译：魏素雯）   English version：Jaya Tiasa poised to climb higher, says RHB Retail Research

https://theedgemalaysia.com/node/606014

Google issues warning to Chrome users

English

KUALA LUMPUR (Feb 3): Internet-related services and products behemoth Google LLC has cautioned Chrome users of vulnerabilities in a new blog post, where it confirmed 27 exploits have been discovered in the web browser. In the post on Wednesday (Feb 2), Google said that eight exploits have been classified as posing a “high” threat level. It said users of Windows, Mac and Linux operating systems are all affected. To enable Chrome users to upgrade, Google is currently restricting information about the threats but it has also revealed the areas within the browser that the new hacks are exploiting. In response to these hacks, Google has announced the launch of Chrome 98 (specifically 98.0.4758.80/81/82 for Windows and 98.0.4758.80 for Mac and Linux). The company warned that Chrome 98’s release “will roll out over the coming days/weeks”, so users may not be able to protect themselves immediately. So, Google provided “As usual” a “wide range of fixes”. “[1293087] Various fixes from internal audits, fuzzing and other initiatives,” it said. There is an estimated three billion Chrome users globally.

https://theedgemalaysia.com/node/654010

China's hotel, catering job openings surge on post-Covid demand recovery — survey

English

BEIJING (Feb 3): Chinese hotels and restaurants are seeking employees amid demand recovery in the services sector after the end of Beijing's zero-Covid protocols, with a survey by a leading recruiter showing a surge in job openings in the hospitality industry. During the first six days of work after China's Lunar New Year holiday, job openings in the hotel and catering sectors surged 40% from the same period a year earlier, according to a survey published on Friday by Zhaopin, one of the county's biggest recruitment firms. Passenger vehicle and freight truck drivers and airplane and train crews are also badly needed, with job openings jumping by 85.2% over the same period, due to busy transport and logistics sectors following China's post-Covid reopening. Openings in tourism services industry grew 58.9% on the abandonment of the zero-Covid regime as well as on resurgent demand during the festival season, while posting for workers in the manufacturing sector also rose 42.2%. The survey was taken over Jan 28-Feb 2 in 38 major cities including Beijing, Shanghai and Shenzhen. Foshan, Guangzhou and Dongguan cities in southern economic powerhouse Guangdong province saw rapid year-on-year growths of overall job openings at 43.2%, 19.6% and 9.2% respectively, according to the survey. The country's biggest provincial economy aims to achieve more than 5% gross domestic product growth (GDP) in 2023 after its economy grew only 1.9% in 2022 because of frequent Covid lockdowns. About 72% of the firms surveyed said they are optimistic about China's economic development, with the relaxation of Covid curbs and prioritisation of economic growth boosting confidence. With higher uncertainty in China's property and export sectors, however, more job hunters sought secure positions. About 33.9% of jobseekers said they would look for "stable jobs, without lay-off risks", more than last year's 26.8%. China's services activity in January expanded for the first time in five months, another private survey showed on Friday.

https://theedgemalaysia.com/node/630616

Many nations experiencing double-digit inflation, says World Bank

English

KUALA LUMPUR (Aug 2): Record high food prices have triggered a global crisis that will drive millions more into extreme poverty, magnifying hunger and malnutrition, while threatening to erase hard-won gains in development, said the World Bank Group. In its latest food security update, the bank said the war in Ukraine, supply chain disruption, and the continued economic fallout of the Covid-19 pandemic are reversing years of development gains, and pushing food prices to all-time highs. It said as of July 29, the Agricultural Price Index was 19% higher compared to January 2021. Maize and wheat prices were 16% and 22% higher respectively, compared to January 2021, while rice prices were about 14% lower, it said. The World Bank said domestic food price inflation remains high around the world. It said information from March to June showed high inflation in almost all low- and middle-income countries, as 93.8% of low-income countries, 89.1% of lower-middle-income countries, and 89% of upper-middle-income countries saw inflation levels of above 5%, with many experiencing double-digit inflation. It added that the share of high-income countries with high inflation also increased sharply, with about 78.6% experiencing high food price inflation. According to the World Bank’s April 2022 Commodity Markets Outlook, the war in Ukraine has altered global patterns of trade, production, and consumption of commodities, in ways that will keep prices at historically high levels through the end of 2024, exacerbating food insecurity and inflation. It said food prices were already high before, and the war is driving food prices even higher. Commodities that have been most affected are wheat, maize, edible oils, and fertilisers. Global commodity markets face upside risks through a reduction in grain supplies, higher energy prices, higher fertiliser prices, and trade disruption due to shutting down of major ports. According to the 2022 State of Food Insecurity in the World report, the number of people affected by hunger rose in 2021 to 828 million, an increase of about 46 million since 2020, and 150 million since 2019, before the outbreak of the Covid-19 pandemic.

https://theedgemalaysia.com/node/660648

Adnan Wan Mamat, former Pahang exco, exits PUC

English

KUALA LUMPUR (March 24): Datuk Seri Adnan Wan Mamat, a substantial shareholder of PUC Bhd, exited the group after disposing of 125.02 million shares representing 6.86% of the share base of the group, via an off-market transaction on Tuesday (March 21). According to a filing with Bursa Malaysia by PUC, Adnan, a non-independent non-executive director of the company, was its second largest shareholder prior to the disposal, after GVPF Sdn Bhd at 10%. GPVF is a wholly-owned subsidiary of Genting Plantations Bhd. No price was listed in the filing, but based on the closing price of PUC of three sen on Tuesday, Adnan could have disposed of the shares for RM3.75 million. If this were the case, he could have made a loss of RM11.88 million, considering that he acquired the shares at 12.5 sen apiece. Adnan emerged as a substantial shareholder of PUC back in March 30, 2022, through the subscription of new ordinary shares at 12.5 sen per share in PUC by Matrix Edge Venture Sdn Bhd, of which he is a shareholder. He was appointed to the board of PUC on Nov 14, 2022. Besides PUC, Adnan is also on the board of Magna Prima Bhd and Infraharta Holdings Bhd (formerly known as Vertice Bhd). Adnan is also a board member of Royal Pahang Durian Sdn Bhd. PUC closed at three sen per share on Friday, valuing the group at RM54.64 million. 

https://theedgemalaysia.com/node/613656

民泰近电成立联营公司 供应油气材料与设备

English

（吉隆坡25日讯）民泰近电（Bintai Kinden Corp Bhd）与Petro Flanges & Fittings私人有限公司（PFF）成立持股权比例为51:49的联营公司，向本地及国际石油与天然气领域，包括中东，供应材料与设备。 这两家公司成立联营公司Bintai Energy私人有限公司，是为了利用预期的油气行业复苏，因为全球能源和大宗商品危机，国内外都在增加资本投资。 文告显示，民泰近电独资子公司Kejuruteraan Bintai Kindenko私人有限公司（KBK）与PFF周五签署了特别用途公司及股东协议（SPV协议），以进行策略合作。 根据SPV协议，专门从事机电工程服务的KBK将负责管理Bintai Energy，并为联营公司提供必要的资金。 同时，PFF将负责Bintai Energy的营销工作，利用其在油田工业厂房、造船和水处理行业的法兰贸易经验。 民泰近电今日以15.5仙挂收，升6.9%或1仙，共3110万股转手，市值为1亿1435万令吉。   （编译：魏素雯）   English version：Bintai Kinden forms JV for O&G materials, equipment supply biz

https://theedgemalaysia.com/node/677811

Early voting: Fine weather for most areas on Tuesday morning

English

KUALA LUMPUR (Aug 8): The weather early on Tuesday (Aug 8) morning is reported to be clear in most locations of early voting centres for the six state elections. This allows the early voting process to run smoothly with military and police personnel along with their spouses turning up early to fulfil their responsibilities as voters. A total of 260 early voting centres involving 377 channels for the Kedah, Kelantan, Terengganu, Penang, Selangor and Negeri Sembilan state elections were simultaneously opened at 8am on Tuesday, as well as three early voting centres at the Terengganu contingent police headquarters (IPK) for the Kuala Terengganu parliamentary by-election. In Terengganu, the weather was reported to be fair in most areas although some locations reported to experience heavy rain early on Tuesday morning. In Negeri Sembilan, fine weather is reported as of 10am on Tuesday, especially at the voting centres at Sendayan Air Force Base, Sikamat police station and Army Basic Training Centre (PUSASDA) and Segenting Camp, Port Dickson. Among the leaders present at the location to review the early voting process are caretaker Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun and Defence Minister Datuk Seri Mohamad Hasan. In Kelantan, the survey found that sunny and favourable weather facilitated the early voting process at the Gua Musang district police headquarters (IPD), with personnel queuing as early as 7.30am to cast their ballot papers. Apart from that, a check at the General Operations Force's (GOF) eighth Battalion Camp in Pengkalan Chepa and Desa Pahlawan Camp in Kok Lanas, Kota Bharu found that military personnel and their spouses came out early to vote. In Selangor, a check at the Selangor IPK in Shah Alam and the Kuala Selangor IPD in Kuala Selangor found that the early voting process went smoothly, contributed by sunny and favourable weather at the locations. Meanwhile, in Kedah, despite the early morning drizzle at 7am in Alor Setar, the weather changed to be favourable afterwards which facilitated a smooth voting process at Kedah IPK as of 10am on Tuesday. A similar situation was also reported in Penang and a total of 11,294 early voters involving military and police personnel and their spouses are expected to cast their ballot papers at 28 voting centres statewide. According to the Election Commission website, the electoral roll used for the six state elections and the Kuala Terengganu by-election is the latest register of voters updated as of June 21, 2023. It involves 49,660 military personnel and 47,728 police personnel with their respective spouses in the six states involved in the elections. Meanwhile, 1,362 police personnel and 35 military personnel, with their spouses, are involved in the early voting process for the Kuala Terengganu by-election. Visit this link for everything about the State Polls 2023 Read also: State polls: Early voting centres opened at 8am State polls: Over 50% turnout for early voting as at 11am EC chairman calls on voters in six states to fulfil responsibility this Saturday

https://theedgemalaysia.com/node/628364

CTOS to buy Creador's stake in RAM, raising ownership to 39.1%

English

KUALA LUMPUR (July 15): CTOS Digital Bhd has proposed to buy a 19.9% stake in RAM Holdings Bhd from Creador’s Oscar Matrix Sdn Bhd for RM51.3 million or RM25.80 per share. The acquisition, which is expected to be completed by the third quarter of this year, will raise CTOS’ shareholding in RAM to 39.1% or 3.91 million shares, the credit reporting agency said in a filing with Bursa Malaysia. Oscar Matrix’s original cost of investment in RAM was  RM29.6 million, or RM14.88 a share, between May and August 2019. CTOS had previously spent RM49.6 million or an average of RM25.82 per share to buy 1.92 million shares or a 19.2% stake in RAM between July 2021 and May this year from CIMB Bank Bhd, Standard Chartered Bank Malaysia Bhd, OCBC Bank (Malaysia) Bhd, Affin Bank Bhd, Affin Hwang Investment Bank Bhd and Alliance Investment Bank Bhd. Creador also owns a 30.39% stake in CTOS as of July 4. CTOS on Friday said the purchase consideration represents a price-to-earnings ratio of about 18.2 times and price-to-book ratio of 1.5 times. Meanwhile, CTOS has also proposed to buy up to an additional 3.087 million shares or a 30.9% stake in RAM at a price not more than RM28.50 per share or up to RM88 million over a period of 12 months. CTOS, which was listed on the Main Market of Bursa Malaysia in July last year, said it is in discussions with potential sellers for this acquisition but has yet to enter into any definitive agreement. The acquisition price of RM28.50 per share is about 10.5% higher than the offer made for Creador’s block of shares in RAM. At RM28.50 per share, RAM appeared to be valued at about RM284.77 million based on a back-of-the-envelope calculation. CTOS said if it manages to buy up this additional 30.9% stake, it may hold up to seven million shares or a 70% stake in RAM. CTOS first emerged as RAM’s shareholder in July 2021 after it bought a 4.6% stake or 462,500 shares from CIMB Bank Bhd for RM10.1 million, which works out to be RM21.74 per share, valuing RAM at about RM217.4 million at that time. Apart from CTOS and Creador’s Oscar Matrix, RAM’s other substantial shareholders include Tunku Ali Redhauddin Tuanku Muhriz’s vehicle Dragonline Solutions Sdn Bhd (15.65%), Hong Leong Bank Bhd (5.8%), Public Bank Bhd (5.33%) and S&P Global Asian Holdings Pte Ltd (19.2%). In a separate filing, CTOS said it plans to seek its shareholders' approval to buy back shares of the company at the forthcoming EGM. Through this share buyback programme, CTOS intends to repurchase a total of 231 million shares — equivalent to 10% of its total issued shares of 2.31 billion as at March 31. CTOS shares closed three sen or 2.56% higher at RM1.20 on Friday (July 15), giving the company a market capitalisation of RM2.77 billion. The stock has fallen 33.4% year to date.

https://theedgemalaysia.com/node/619729

Ringgit pegging not in Malaysia's interest, poses 'great risk’ — BNM governor

English

KUALA LUMPUR (May 13): Bank Negara Malaysia (BNM) Governor Tan Sri Nor Shamsiah Mohd Yunus said on Friday (May 13) pegging the ringgit to the US dollar is not in Malaysia's interest because it will pose a great risk to the country during the current difficult global environment which has been marred by factors including the Russia-Ukraine war and prospects of China's slower economic growth due to the Covid-19 outbreak. "A flexible foreign exchange policy is able to absorb economic shocks and maintain Malaysia's competitiveness in a challenging global environment,” Nor Shamsiah said at a press conference here in conjunction with the release of the country's economic figures for the first quarter of 2022. She said the current weakness of the ringgit is caused by external factors such as anticipation of US interest hikes to fight inflation and China’s economic uncertainty due to Covid-19-driven movement restrictions. At the time of writing on Friday, the ringgit weakened to 4.3953 against the US dollar from Thursday’s close at 4.3940. The exchange rate so far on Friday was between 4.3918 and 4.3980. Over the last one year, the exchange rate was between 4.1070 and 4.3980. The current weakness of the ringgit against the greenback has led to reminiscences of the ringgit’s RM3.80 peg to the US dollar in 1998 during the Asian financial crisis then. Malaysia had in 2005 replaced the currency peg with a managed float system for the ringgit exchange rate. On Sept 2, 1998, BNM said in a statement: "BNM announces effective 2 September 1998, the exchange rate for the ringgit will be quoted at RM3.80 against the US dollar for foreign currency transactions.” BNM did not elaborate. On July 21, 2005, BNM said in a statement that with immediate effect, the exchange rate of the ringgit will be allowed to operate in a managed float, with its value determined by economic fundamentals. "BNM will monitor the exchange rate against a currency basket to ensure that the exchange rate remains close to its fair value. Promoting stability of the exchange rate continues to be a primary objective of policy. "Such stability can best be achieved by maintaining the value of the ringgit against a trade-weighted index of Malaysia’s major trading partners,” BNM said then. Looking back, Nor Shamsiah said on Friday that certain conditions apply when a currency is pegged to another currency. She said these include the loss of monetary policy independence. Citing an example, she said if the US raises interest rates, Malaysia will have to raise interest rates as well to maintain the currency peg. "Malaysians, in this case, will have to bear the highest borrowing costs, even though the economy is weaker than the US [at this point]. We will also have to resort to capital controls. We have to acknowledge the key factor that contributed to [the] successful pegging [of] the ringgit in 1998 was the capital control that was introduced then which came at a cost.  "This will also have a detrimental effect on the investors' sentiments affecting not only FDI (foreign direct investment) coming into Malaysia, but also exaggerate capital outflows from Malaysia. “At BNM, we ensure that there is no excessive volatility in the [ringgit’s] exchange rate," she said. The idea of re-pegging the ringgit to the US dollar resurfaced after former prime minister Tun Dr Mahathir Mohamad wrote in a Facebook post on Wednesday (May 11) that the ringgit's value would not fluctuate if the ringgit was pegged at RM3.80 to the US dollar. Dr Mahathir, who was Malaysia's prime minister from 1981 to 2003, said the ringgit's current value had been fluctuating because the currency's value was not fixed and guaranteed by the government. He said the ringgit's value was "not stable" due to the Covid-19 outbreak. "Sometimes it (ringgit's value) goes up, sometimes it goes down," he said. Read also: BNM: Malaysian economy grew 5% y-o-y in 1Q22 as domestic demand improved BNM sees high volatility in Malaysian financial markets  OPR hike is to remove excess monetary policy accommodation, says BNM governor

https://theedgemalaysia.com/node/630145

Global coal demand to return to its all-time high in 2022, says IEA

English

KUALA LUMPUR (July 29): The world’s consumption of coal is set to rise in 2022, back to the record level it reached nearly a decade ago. In its July 2022 Coal Market Update released on Thursday (July 28), the International Energy Agency (IEA) noted that significant uncertainty hangs over the outlook for coal as a result of slowing economic growth and energy market turbulence. It said based on current economic and market trends, global coal consumption is forecast to rise by 0.7% in 2022 to 8 billion tonnes, assuming the Chinese economy recovers as expected in the second half of the year. The IEA said this global total would match the annual record set in 2013, and coal demand is likely to increase further next year to a new all-time high. The report highlighted the significant turmoil in coal markets in recent months, which has important implications for many countries where coal remains a key fuel for electricity generation and a range of industrial processes. At the same time, the IEA said the world’s continued burning of large amounts of coal is heightening climate concerns, as coal is the largest single source of energy-related CO2 emissions. The agency said worldwide coal consumption rebounded by about 6% in 2021 as the global economy recovered rapidly from the initial shock of the Covid pandemic. It said that sharp rise contributed significantly to the largest ever annual increase in global energy-related CO2 emissions in absolute terms, putting them at their highest level in history. The IEA said global coal demand is being propped up this year by rising natural gas prices, which have intensified gas-to-coal switching in many countries, as well as economic growth in India. It said those factors are being partly offset by slowing economic growth in China and by the inability of some major coal producers to ramp up production. The IEA said demand for coal in India has been strong since the start of 2022 and is expected to rise by 7% for the full year as the country’s economy grows and the use of electricity expands. In China, coal demand is estimated to have declined by 3% in the first half of 2022 as renewed Covid lockdowns in some cities slowed economic growth, but an expected increase in the second half of the year is likely to bring coal consumption for the full year back to the same levels as last year. China and India together consume double the amount of coal as the rest of the world combined, with China alone accounting for more than half the world’s demand, said the IEA.

https://theedgemalaysia.com/node/675661

Ringgit expected to trade in tight range with upside bias next week

English

KUALA LUMPUR (July 22): The ringgit is expected to trade in a tight range between 4.54 and 4.55, with an upside bias, against the US dollar next week, as investors await the outcome of the US Federal Open Market Committee (FOMC) meeting. Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the FOMC meeting to be held on July 25 and 26 is widely expected to be followed by a 25-basis-point hike in the federal funds rate (FFR). “While this has already been priced in, their latest assessment of the current state of the economy is the key factor that will drive the foreign exchange market going forward. It will also determine the value of the US dollar at a time when concern over global growth prospects has become elevated. “On one hand, concern over weaker global growth prospects will result in a higher US dollar, as investors seek refuge in the safe-haven currency. On the other hand, the Federal Reserve (Fed) may want to shift its stand in preparation for an eventual cut in the FFR possibly next year. “As such, should the Fed become dovish, the ringgit could be moving towards its immediate support level of 4.5491 [against the greenback],” he told Bernama. On a Friday-on-Friday basis, the ringgit was lower against the US dollar to 4.5600/5655, from 4.5255/5280 a week earlier. The local unit was traded higher against major currencies. It went up against the British pound to 5.8669/8740 from 5.9338/9371 on the previous Friday, appreciated vis-a-vis the Japanese yen to 3.2185/2229 from 3.2659/2679, and advanced versus the euro to 5.0735/0796 compared with 5.0799/0827 previously. The ringgit was traded lower against its Asean peers. The local unit slid against the Singapore dollar to 3.4304/4350 from 3.4263/4287 a week earlier, and fell versus the Thai baht to 13.2327/2541 from 13.0689/0814. It weakened against the Indonesian rupiah to 303.4/303.9 from 302.5/302.8 previously, and declined vis-a-vis the Philippine peso to 8.33/8.34 versus 8.31/8.33 last Friday.

https://theedgemalaysia.com/node/609654

Trend: Millennials and Gen Z reshaping asset management industry

English

This article first appeared in Wealth, The Edge Malaysia Weekly on February 28, 2022 - March 6, 2022 Declining birth rates, debt-burdened millennials and a rapidly ageing population are some inevitabilities that will have profound implications on the asset management industry going forward. Now that Malaysia is already an ageing nation by the World Bank’s standards, with 7.4% of its population being 65 and above, the fund industry has its work cut out to cater for incredibly different generations. Demographic changes are slow but relentless, thus the key to getting through this is to harness technological advancements, experts say. In the past decade, the advent of digitalisation has disrupted business models across industries, particularly financial services and asset management, laying the foundation for the vicissitudes that population ageing brings. “One of the structural changes facing the unit trust industry is the accelerated shift to digital platforms,” says Lum Ming Jang, chief investment officer at Public Mutual Bhd. Much of this shift is being driven by millennials — aged 26 to 40, who account for 50% of Malaysia’s working population — and Generation Z, aged up to 25 and who, unlike their predecessors, want direct control of their wealth and are tech-savvy enough to use the latest technology to achieve this. Right now, the fintech revolution is already upending the traditional asset management industry by offering automated algorithm-driven financial planning services for micro-investments, access to peer-to-peer financing and equity crowdfunding platforms, and an avenue to buy cryptocurrencies in bite-size lots through services such as digital wallets. “The younger generation of investors, especially millennials, are more tech-savvy than previous generations when it comes to investing. They are beginning to demand innovative investment solutions that offer more convenience, greater transparency and lower costs,” says Lum. To cater for this budding clientele and to enable greater access, numerous digital-only financial advice services have been launched in the last 10 years. Digital investment management platforms saw a 90% jump in new account openings between July 2020 and July 2021, while online brokerage services saw a 35% increase in new account openings. “Technology has created greater access to financial services with the emergence of many new digital financial services through online or app offerings — for example, StashAway, Wahed Invest, Luno, MIDF Invest and eToro. This has enabled the public to invest with the simple push of a button,” observes Clement Chew, managing director of Apex Investment Services Bhd. “Among the new generation of investors, there is a greater awareness of the benefits and importance of investing. Social media platforms such as Instagram, YouTube and TikTok have seen a significant rise in finance-related content and influencers,” he says. “Consequently, we see a growing trend of investor participation from the millennial generation. As an example, millennials accounted for more than 50% of new retail investors in 2020, which was a record year for retail participation in the Malaysian stock market.” Pandemic-induced restrictions were part of the reason for this adoption. Covid-19 has hastened the shift from the physical to the digital realm, forcing laggards to implement measures at breakneck speed to ensure business continuity, says Chan Ai Mei, chief marketing officer at Affin Hwang Asset Management Bhd. “Covid-19 propelled a lot of businesses to speed up their digital initiatives. We had to quickly ensure that our processes could cater for the scenario when we could not meet clients face to face,” she adds. Besides, greater adoption of technology could make human advisers more efficient, observes Munirah Khairuddin, CEO of Principal Asset Management Bhd. “Principal Asset Management is considering new ways to integrate digital capabilities with our asset management expertise to help clients in their quest to save more, invest more and protect more for their financial future.” The fund house has collaborated with Touch ‘n Go Sdn Bhd to introduce the Principal e-Cash Fund in the mainstream e-wallet, providing its customers the opportunity to earn daily returns with a minimal investment, from as low as RM10. “We do believe that some millennials would opt for more personalised services offered by financial consultants or agents as they grow older to help them manage their portfolio and grow their investments further,” says Munirah. Most fund houses have since taken their distribution strategies online, where everything from client onboarding and portfolio management to report generation can be done in minutes. Some have even included goal-based investing. Public Mutual, for example, introduced the Digital Onboarding and e-Suitability Assessment facility to help new investors onboard digitally without the need to submit physical documents. “They will also have access to our online investment platform, Public Mutual Online (PMO), where they can invest, transact, monitor their investment portfolio as well as sign up for facilities like Direct Debit Authorisation on a 24/7 basis with ease and efficiency. We have an accompanying app, Pocket-PMO, that allows them to transact and monitor their investments any time, anywhere, set target price alerts as well as designate investment accounts for specific financial goals,” says Lum. The fund house has introduced the Public e-Series of Funds, which are available exclusively on PMO. Among other things, this series of funds enables investors to invest from as low as RM100 as well as enjoy reduced sales fees, he elaborates. “Many of these funds also provide investment opportunities in evolving themes such as artificial intelligence, digital innovation and ESG (environmental, social and governance) considerations,” says Lum. But with competition arising from digital investment management platforms, merely digitalising processes is not enough to draw the richly diverse millennials and Gen Z, who want to be empowered to make decisions on their wealth while paying lower management fees. This area of the retail fund industry, where online services provide automated investment advice, is expected to grow strongly and has a profound effect on how investors view their wealth relationships, says Chew. “We believe that younger investors will be more demanding, not only on returns but on the transparency and accessibility of information, which they prefer to be on-demand. They generally have a greater need to be well informed throughout their investment journey.” Some digital platforms have been quick to pick up on this — for example, StashAway and Luno offer computation of personalised returns through their apps, says Chew. “Investors can access their data at any time to see how well their investments have performed. We acknowledge that the increasing adoption of technology may exert pressure on the fees that we charge for investments.” But as the wealth management industry becomes more democratised, Apex is working on ways to provide value to its investors, he adds. “Be it customised reports, outcome-based fees or certain value-added services that a regular investor cannot obtain from mass-market technology-enabled solutions.” Lum concurs. “The prevalence of digital services and the wide availability of online investment products have allowed people to invest and transact entirely online. Likewise, due to the convenience and accessibility they offer, robo-advisory services are likely to continue being a part of the investing sphere over the long term.” However, he asserts that the popularity of such platforms does not negate the need for financial advisers and consultants. “We believe that investors will always value the personal touch.  “In fact, despite having access to their investments online, most of our investors have continued to rely on the guidance of their servicing unit trust consultants when investing and transacting online. The personal touch also tends to matter more to investors as they grow older and have more investment options open to them to grow their wealth.” Despite their economic prowess, Gen Z and millennials still lack knowledge and confidence when it comes to investing. “Financial education is pertinent to help millennials understand the benefits of starting to invest at a young age. We engage with millennials using digital channels such as social media, news websites and financial websites,” says Munirah. Digitalisation aside, firms are embedding sustainable investment values that are increasingly ingrained in the psyche of younger investors. Wanting to use their money in the best interests of society and the planet, this demographic has been credited with driving the exponential growth in ESG inflows over the last couple of years. Millennials have been the key pillars of the growth of sustainable investing throughout the 2010s, contributing US$51.1 billion to sustainable funds in 2020 alone, compared with less than US$5 billion five years ago. The after-effect of the pandemic has led to more conscientious investors, says Chan. “The emphasis on ESG is much more pronounced now with investors baulking whenever a company is found to be guilty of bad practices.” “With the current instantly accessible information to the world, and social problems, this will continue to drive interest in sustainable investing,” says Munirah. While reinforcing their offerings to cater for the young working populace, investment firms are gearing up to guide the boomers and Gen X — whose investments make up the bulk of assets under management — into their advanced years. Moreover, the demand for tech-enabled financial tools and advice is increasing across different demographics, not just among the millennials, says Munirah. “Demographic changes in Malaysia are increasing demand for financial tools and advice. Consumers, regardless of their age group, are driving the need for greater access to financial solutions. They want choice in how they access financial tools. “The financial services industry and its customers in Asia are embracing technology at a faster rate than developed markets. Without legacy systems and infrastructure, emerging markets are leapfrogging developed countries in terms of the development and adoption of new digital solutions. “High mobile penetration rates in most markets mean consumers are comfortable buying online. Especially in Asia, that comfort with digital transactions is happening across all age groups.” While she acknowledges that there is still a reluctance to adopt digital services among older investors, the digital adoption has accelerated. “We acknowledge that most elderly consumers are not tech-savvy and some are reluctant to embrace digital services. However, the journey of digital transformation has been on a time frame that has been compressed from years to weeks, and we believe this will transcend age boundaries, forcing previously hesitant but loyal customers to move online.” Contrary to popular belief, this group too prefers tech-enabled services to a certain extent when it comes to planning their portfolios, says Chew. Seeing that income generation is pivotal to maintaining their lifestyle in the latter years, rarely does this group invest in alternative assets, he points out.  “Products that give a reasonable yield or income with less volatility are always popular. Many investors, including older ones, prefer a less risky product with a regular income feature.”   Over the years, cryptocurrencies as an alternative investment option have been growing steadily among young investors, providing them with wildly unanticipated returns. Investments have filled a void for the average young person impacted by the lockdown-induced ennui and economic uncertainties caused by the Covid-19 pandemic. In October last year, the Securities Commission Malaysia reported that more than RM16 billion in digital assets and cryptocurrencies were traded through licensed exchanges in Malaysia between August 2020 and September 2021 amid an upward trend in the price of blockchain-based assets. But should this young demographic be embracing such high risks considering that many are laden with debt despite their purchasing power and the fact that this may be the last opportunity for the generation to build wealth before heading for retirement? Finance Minister Tengku Datuk Seri Zafrul Aziz said in March last year that 47% of Malaysian youth have high credit card debt. The Malaysian Association of Borrowers and Consumers Solution has already warned that many aged 30 to 45 are expected to go bankrupt when most government aid packages end in 2022. This cohort, having entered the workforce during a recession sparked by the 2008 global financial crisis in their prime earning years, took a second pummelling from the economic fallout that resulted from the Covid-19 pandemic. “It is true that most of the wealth is still sitting with those aged 50 and above. They do have the bulk of the assets under management today,” says Chan Ai Mei, chief marketing officer at Affin Hwang Asset Management Bhd. The younger generation is likely to be drawn to wildly risky investments such as cryptocurrencies to make quick gains seeing that they have a shorter time horizon to work with, she notes. “Most of them have little to start with, and so they want to make quick gains. Cryptocurrencies have risen over 1,000 times, which is why the asset class appeals to them a lot.” The high and instant gratification of cryptocurrencies is addictive despite the risks, compared to traditional unit trust funds that require most to invest for three to five years, Chan observes. “They are always on the lookout for new, innovative asset classes, be it things like peer-to-peer lending or Bitcoin. This generation is impatient, but there are still those who prefer sustainable income to something wildly risky where they could lose their entire capital,” she says. Apex Investment Services Bhd managing director Clement Chew, however, attributes young investors’ affinity for intangible assets such as cryptocurrencies to their inquisitiveness and risk appetite.  “The new generation of investors sees value from a different perspective. Younger investors are open to concepts and untested ideas. The investment need not be profitable. In contrast, the older generation of investors usually want to be convinced of the ‘asset’ behind the investment — an investment that is backed by earnings, cash flow or hard assets,” he says. “The new generation of investors is more receptive to conceptual investments such as cryptocurrencies and non-fungible tokens. They are also more open to transacting on different exchanges and platforms.” He points out that millennials are more risk-agnostic and are willing to set aside a larger portion of their wealth for alternative investments in the hope of catching the next “big wave”.  “This investment style will have some influence on the way traditional fund houses operate as they would see some potential in offering these new emerging investments and developing such alternative products to meet this demand. However, this strategy will ultimately need to be balanced by a disciplined approach as these alternative investments have much higher volatility and are traded around the clock globally,” he says. “Fund managers can no longer ‘clock out’ at market close and will have to have strategies to capitalise on gains or limit losses as and when they occur. This is a fundamental shift in the way we think of investments moving forward as the inevitable decentralisation of the financial industry occurs.” Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's App Store and Android's Google Play.

https://theedgemalaysia.com/node/671326

HR Ministry finalising gig workers guidelines

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KUALA LUMPUR (June 15): The Human Resources Ministry is finalising the Gig Worker (P-hailing) Guidelines 2023, which will act as an interim measure to regulate the rapidly developing gig work activities before creating a suitable policy or relevant Act on the matter. Human Resources Deputy Minister Mustapha @ Mohd Yunus Sakmud told the Dewan Rakyat on Thursday (June 15) that the guidelines will safeguard gig workers’ incomes, which will be controlled by the country’s minimum wage legislation. It will also ensure social protection, occupational health and safety as well as freedom of speech and negotiation power for gig workers, Mustapha (Sepanggar-PH) added. “We need to give room for gig workers to voice their complaints or their needs to their employers, and also provide them with training and guidance for their progress. “These guidelines will be expedited at the ministry level and once approved, we will announce them to the public in the near future,” he said. Mustapha also said the guidelines are designed to harmonise the relationship between platform providers and gig workers. In a supplementary question, Datuk Mohd Shahar Abdullah (Paya Besar-BN) asked about the government’s view on changing the definition of workers in labour laws so that the elements of gig work are included. In reply, the deputy minister said the suggestion to amend the existing Act is an option the ministry is studying. He reiterated that the government is finalising the guidelines to work as an interim measure. Since June 1, 2017, the Human Resources Ministry through the Social Security Organisation (Socso) has implemented a specific social protection mechanism for informal sector workers including gig workers under the Self-Employment Social Security Act 2017. The Act was introduced then to provide protection to individuals who are self-employed with a self-employed permit under the Self-Employed Social Security Scheme. Mustapha on Thursday updated that as of June 4, 2023, a total of 449,618 gig workers have been registered and actively contributing under the scheme. Of that number, he said a total of 173,150 people are p-hailing and e-hailing workers. “Socso also implemented the Self-Employed Scheme Contribution Matching initiative where the self-employed only have to pay 20%, which is only RM46.60 of the contribution rate of RM232.80 under the second contribution plan. “Self-employed people are eligible for protection for 12 months after the payment is received, while the remaining 80% contribution payment of RM186.20 is financed by the government,” Mustapha said. Under Budget 2023, the Human Resources Ministry through Socso was given the role of implementing the informal gig riders career building programme which provides an allowance of RM300 per month for a period of three months to riders who are actively undergoing skills training to get stable employment in the formal sector. “So far, 325 applications have been received (under the informal gig riders career building programme),” Mustapha said. For more Parliament stories, click here.

https://theedgemalaysia.com/node/652369

Bid by Irwan, Arul Kanda to strike out 1MDB suit postponed as fund changes solicitors

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KUALA LUMPUR (Jan 19): The applications by both ex-treasury secretary general Tan Sri Mohd Irwan Serigar Abdullah and former 1Malaysia Development Bhd (1MDB) president Arul Kanda Kandasamy to strike out a US$6.59 billion suit filed by the fund against them has been postponed. The postponement comes as 1MDB plans to appoint new lawyers to represent them in the matter, but it is not clear yet who the new solicitors will be. 1MDB's counsel Kong Xin Qing from Rosli Dahlan Saravana Partnership confirmed the matter with The Edge when contacted. Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan has now fixed Feb 14 as the next case management for the applications. Mohd Irwan is represented by Lavinia Kumaraendran while Arul Kanda is represented by Adam Lee.  Both applications were initially set to be heard on Thursday. According to court filings, Mohd Irwan applied to strike out the suit against him in February last year on the grounds that it was premature, as 1MDB's claim over the Brazen Sky Ltd investment and the payment of Aabar Investments PJS Ltd were unsustainable because the court has yet to determine whether 1MDB suffered losses of US$1.83 billion and US$3.5 billion, and who were responsible for the losses. Meanwhile, Arul Kanda applied to strike out the suit in June last year. Among others, he claimed that he cannot be held responsible for 1MDB's losses as a result of fraud committed by others. 1MDB filed the suit in May 2021 against Mohd Irwan and Arul Kanda among others for alleged breach of fiduciary duty, breach of trust and conspiracy. Among others, the strategic development company is seeking US$6.59 billion from the duo as a result of the purported breach. Separately, 1MDB is also seeking an additional RM2.9 million against Mohd Irwan and Arul Kanda for fraudulent breach of duties and knowing receipt respectively over an alleged extension of the employment agreement dated Feb 23, 2018. The RM2.9 million was the sum paid to Arul Kanda for the purported employment extension agreement. In its statement of claim, 1MDB claimed that both Arul Kanda and Mohd Irwan are liable for breach of duties and breach of trust, which resulted in the strategic development company paying a sum of US$1.83 billion to 1MDB-PetroSaudi Ltd, which was converted into stakes in Brazen Sky, and subsequently converted into an investment in Bridge Global Fund. 1MDB also alleged that the duo committed fraudulent breach of duties and breach of trust, resulting in a payment of US$1.265 billion to the International Petroleum Investment Company (IPIC) as part of a consent award dated May 9, 2017, and US$3.5 billion being misappropriated from the company to Aabar BVI. Read also: Irwan Serigar’s striking out of 1MDB suit fixed on Jan 19, 2023 before new JC

https://theedgemalaysia.com/node/645937

跟随美股 马股低开

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（吉隆坡29日讯）由于美国联储局（FED）几位主要官员重申需要进一步激进加息以遏制通胀，隔夜美国股市收跌，马股今日开盘走低。 截至9时06分，富时隆综指跌5.62点，挂1480.92点。 综指以1483.77点报开，较上周五闭市的1486.54点，下跌2.77点。 由于首相拿督斯里安华上周四宣布，周一（11月28日）为特别公共假期，因此，大马交易所及子公司昨日休市一天。 上升股152只、下跌股191只，另有249只无起落、1666只无交易，以及67只暂停交易。 成交量2亿7264万股，值8985万令吉。 马六甲证券今日在报告中指出，由于中国多地民众就政府抗疫限制措施举行抗议，引发对全球金融复苏的担忧，全球股市本周开局走弱。 “本地股市可能跟随全球疲势，因买盘势头可能放缓，而焦点落在企业财报。” “同时，投资者将密切关注近期的内阁组建及重新提呈2023年度财政预算案。” 重量级股中，马银行（Malayan Banking Bhd）下滑1仙，至8.66令吉、大众银行（Public Bank Bhd）跌4仙，挂4.48令吉、国油化学（Petronas Chemicals Group Bhd）降20仙，报8.88令吉、IHH医疗集团（IHH Healthcare Bhd）减3仙，挂5.97令吉，而联昌国际集团（CIMB Group Holdings Bhd）扬6仙，至5.86令吉，以及国家能源（Tenaga Nasional Bhd）升7仙，报8.85令吉。 至于热门股，MMAG控股（MMAG Holdings Bhd）和大稳控股（Ta Win Holdings Bhd）分别持平于3仙和7仙、Advance Synergy Bhd跌1仙，报19.5仙，而微领科技（MQ Technology Bhd）涨1仙，至5仙，以及伊甸机构（Eden Inc Bhd）增0.5仙，挂14.5仙。   （编译：陈慧珊）   English version：Bursa Malaysia opens lower, tracking Wall Street

https://theedgemalaysia.com/node/673944

MARC Ratings affirms AA-IS rating on DUKE 3’s RM3.64b sukuk wakalah

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KUALA LUMPUR (July 7): MARC Ratings Bhd has affirmed its AA-IS/Stable rating on Lebuhraya DUKE Fasa 3 Sdn Bhd's (DUKE 3) RM3.64 billion sukuk wakalah. DUKE 3 is the concessionaire for the 32km Setiawangsa-Pantai Expressway (SPE) under a concession that runs through Aug 5, 2069.  In a statement on Friday (July 7), MARC said that the sukuk is fully amortising; with annual debt service back loaded with gradual ramp-up to RM440 million at maturity in 2039.  The rating agency said it provides some headroom for DUKE 3 to build up traffic volume, generate cash and meet its financial obligations.  “The rating continues to incorporate the adequately structured sukuk repayment profile that accommodates traffic ramp-up on SPE,” said MARC.  It also considered SPE’s well-positioned alignment within mature catchment areas.  “The project is practically complete with only minor work remaining,” it said. “The company received its Certificate of Practical Completion on May 21, 2023, and inspections by Lembaga Lebuhraya Malaysia are currently underway.”  “The concessionaire expects SPE to fully open by end-July 2023."  MARC noted that the annual average daily traffic remained significantly below its forecast of 32,717 vehicles, despite traffic at the Wangsa Maju toll plaza improving to 6,375 vehicles in the first four months of 2023, versus 5,058 vehicles in 2022. Toll collection commenced since March 1, 2022, it said.  “We believe usage may improve once SPE is fully operational but would require a considerable ramp-up.” “Nevertheless, the company has no immediate liquidity pressure of significant debt maturing in the short to medium term."  MARC noted that DUKE 3 has a cash position of RM259.6 million as of end-May 2023 to cover liquidity needs, including approximately RM94 million to complete SPE.  “DUKE 3’s cash position is further supported by RM90 million to be placed by project sponsor Ekovest Berhad into the Operating Revenue Account (ORA) upon project completion.” “At the same time, the RM184.5 million currently in the Construction Reserve Account will also be transferred into ORA.”  “The total RM274.5 million in ORA — in the form of an irrevocable and unconditional bank guarantee — can be drawn down partly or fully when required.”  The rating agency also assumed full tolling in October 2023, a more conservative six-year traffic ramp-up to financial year 2030 (FY2023) from FY2025.  “We have also assumed repayments of the Reimbursable Interest Assistance (RIA) of RM560 million are deferred to after full settlement of the sukuk in FY2040 — the RIA is technically subordinated to the sukuk in terms of cash flow or payment priority, as well as a one-year deferment in toll compensation in lieu of toll hikes.” It added that under the rating case, average and minimum finance service cover ratio — with cash and ORA — are projected at 2.1 times and 1.5 times (2034) thus meeting the covenanted 1.5 times.  In terms of financial flexibility, MARC said that the current financing structure provides DUKE 3 with a 30-year tail period which provides room for a refinancing exercise if required.

https://theedgemalaysia.com/node/676891

Govt to look into need to establish regulatory framework for AI technology, says Fahmi

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PUTRAJAYA (Aug 1): The government is looking into the need to establish a regulatory framework for artificial intelligence (AI) to address ethical issues related to the use of the technology, said Communications and Digital Minister Fahmi Fadzil. Speaking at a press conference after delivering his keynote address at the Public Sector Day Malaysia programme here on Tuesday (Aug 1), Fahmi said the establishment of the framework would help the government understand some of the challenges of using the new technology. “This is a new thing (technology), and we need a group of experts from government agencies and the industry to help us understand some of the challenges. AI may have an impact on the employment sector. “Many people have started using AI applications now, so the government should look into the need to establish a regulatory framework for the use of the technology,” he said. AI is a technology that mimics human intelligence to perform tasks, and can iteratively improve itself based on the information it collects. To improve people’s understanding of AI, Fahmi suggested that Radio Television Malaysia (RTM) produce a special programme with Dewan Bahasa dan Pustaka (DBP) as guests to talk about AI in Malay. “In line with the development of the technology sector, I hope RTM can discuss this with DBP. This effort may aid in increasing the Malay vocabulary related to technology,” he said. According to Fahmi, language development must keep pace with technological advancement in order to ensure that new technologies are easily understood by all levels of society. “When we have an expansive vocabulary [about technology] in Malay, it will be easier to understand,” he said. Earlier in his keynote address, Fahmi pointed out that Malaysia needs more talent and expertise in data and technology, as the country is fast approaching a golden digital decade and becoming an Asian digital tiger. “Opportunities are abundant to enhance services to the people by embracing digitalisation, as Malaysia strives to become a digital-first nation, and embark on a prosperous digital decade,” he said. On MyDigital, Fahmi said the initiative, which was launched in February 2021, had made significant progress towards its goal of transforming Malaysia into a digitally enabled and technologically advanced high-income nation, as well as a regional leader in the digital economy.  He added that the government is considering making Malaysia a hub for sustainable and resilient data centre investment.

https://theedgemalaysia.com/node/671864

Kumpulan Jetson redesignates Teh Kian An as executive chairman; Ong Ah Soon as director

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KUALA LUMPUR (June 20): Construction group Kumpulan Jetson Bhd has redesignated its managing director Datuk Teh Kian An as executive chairman.  Teh, 75, is Jetson’s co-founder, holding a 6.04% stake in the group. His past working experience includes being an executive director of Kumpulan Suria Sdn Bhd.  The group also announced the redesignation of its non-executive chairman Datuk Dr Ong Ah Soon to non-independent and non-executive director. Ong holds a 0.17% stake in Jetson.  The boardroom changes will take effect from Thursday (June 22),  its bourse filings showed on Tuesday (June 20).  Notably, Jetson’s non-independent non-executive director Kington Tong Kum Loong has acquired more shares in the group since last month. From May 25 to June 13, Tong bought 25.08 million direct shares, or a 9.36% stake. With a direct stake of 20.72% and an indirect stake of 6.9%, Tong is currently Jetson’s largest shareholder. He became the group’s substantial shareholder last August, when he acquired 13.05 million shares, raising his direct stake to 7.09%. Two months later, in October, he joined the board as a director. Jetson’s share price dropped 34.88% from a high of 43 sen on June 12, to 28 sen on June 14. On Tuesday, the counter was trading 3.64% or two sen lower at 26 sen, with a market capitalisation of RM71.01 million.

https://theedgemalaysia.com/node/604384

SC now clarifies Azam Baki controlled his own share trading account

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KUALA LUMPUR (Jan 19): The Securities Commission Malaysia (SC) has clarified that evidence gathered in its inquiry into Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki’s share trading account shows that he is the named account holder and had control of the account. Azam “operated the account that he had opened, in that he had given instructions to buy, sell and transfer securities from the said account”, the SC said in a statement on Wednesday (Jan 19). “Therefore, the SC arrived at the decision that there was no breach of Section 25(4) of the Securities Industry (Central Depositories) Act 1991 (SICDA),” it added. Section 25(4) stipulates that a trading account must be opened in the name of the beneficial owner or authorised nominee. Under the Rules of Bursa Malaysia Depository, an individual cannot act as an authorised nominee, this would mean that Azam was the beneficial owner of the shares in his account. In an earlier statement on Tuesday, the SC said it had completed its inquiry into Azam’s share purchase claims, but could not “conclusively establish” if the MACC chief’s trading account was not opened in his name as the beneficial owner or an authorised nominee. Azam, who is mired in a proxy stock trading issue, had explained in a press conference earlier this month that his share trading account had been used by his younger brother Nasir to purchase shares in 2015. The explanation was made after it was reported that Azam had significant shareholdings in several companies. He denied any wrongdoing and said the stocks purchased had subsequently been transferred to Nasir’s account. The SC then issued a statement on Jan 6 saying it would look into the issue, noting the stipulation under Section 25(4) of the SICDA, as well as Section 29A which states that all dealings in securities shall be effected only by the beneficial owner of the securities or an authorised nominee. It is not immediately clear if critics of Azam’s share trading case will be satisfied with the latest clarification. It is likely that they will demand evidence that the funds used to purchase the shares in fact came from Nasir. A group of PKR members of Parliament (MPs) had previously questioned Anti-Corruption Advisory Board chairman Tan Sri Abu Zahar Ujang if the board saw the documents that showed the money trail from Nasir to Azam. This came after Abu Zahar had announced that the board found there was no criminal conduct or conflict of interest by Azam over the share purchase as it was not made by the MACC chief but by Nasir. But the PKR MPs — Sivarasa Rasiah, Maria Chin Abdullah, Ahmad Fahmi Mohd Fadzil, Sim Tze Tzin, Hassan Karim, Maszlee Malik and Syed Ibrahim Syed Noh —  questioned if it was allowed for Nasir to acquire shares using Azam’s trading account, and demanded evidence of the money trail between the brothers. Meanwhile, six other MACC advisory board members — Tan Sri Ismail Omar, Datuk Seri Azman Ujang, Datuk Seri Akhbar Satar, Datuk Dr Hamzah Kassim, Datuk David Chua Kok Tee and Prof Datuk Dr Mohammad Agus Yusoff — had distanced themselves from the statement made by Abu Zahar, saying it was merely the chairman’s personal view. Read also: SC says it can't establish SICDA breach in MACC chief Azam Baki's stock trading case SC to look into MACC chief's share purchase claims  MACC Anti-Corruption Advisory Board members say chairman's statement on Azam Baki his 'personal views’ MACC independent monitoring body says no conflict of interest in share trading involving Azam Baki 

https://theedgemalaysia.com/node/639618

Labour market continued to improve in August, but seen to hit speed bump in 2023

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KUALA LUMPUR (Oct 11): The labour market continued to improve further in August with the latest unemployment rate at a pandemic low of 3.7% year-on-year (y-o-y), similar from the month earlier. Prior to the pandemic, the unemployment rate hovered at 3.4% y-o-y. Meanwhile, the labour force expanded for the 14th straight month, by 30,500 or a 0.2% increase month-on-month, to the largest ever size of 16.63 million, lifting the labour force participation rate to 69.7% in August, which was another new record high, from July's 69.6%. However, United Overseas Bank (M) Bhd economists Julia Goh and Loke Siew Ting opined that the improving labour market could hit a speed bump going into 2023. "Cognisant of the potential global recession next year, still high operating costs and lingering Covid-19-related risks, Malaysia's labour market recovery may hit a speed bump going into 2023," said Goh and Loke in a report. The economists added that the International Monetary Fund calculated that about one-third of the world economy would have at least two consecutive quarters of contraction this year and next.  "To counter these hazards, a successful end to the country's transition to Covid-19 endemicity by the end of this year as well as continued government initiatives to aid business recovery, create and sustain employment under the re-tabled Budget 2023 after the general election are key to hold up the existing labour market recovery momentum," added the duo. UOB projected unemployment rate to come in at 3.5% by end-2022 and 3.2% by end-2023, resting upon a projected economic expansion of 4% next year. Meanwhile, MIDF Research said it believes that the labour market would continue to stay in its recovery trend as indicated by the job vacancy rate of 60.3% in July. "As for 2HCY22 (second half of calendar year 2022) outlook, we believe Malaysia's economy to stay in [an] upward trajectory underpinned by robust domestic demand, international borders' reopening, revival of construction projects, expansion of primary sectors amid elevated global commodity prices and steady external trade activities," it said. The research house kept its unemployment rate forecast for 2022 unchanged at 3.8%. MIDF also added that with the expectation of the 15th general election (GE15) being set to take place in November, it is of the view that the election will reduce domestic political uncertainties and it is certain that the new government will table an expansionary fiscal policy for 2023. "We believe stimulus bullets for labour market recovery and domestic economic growth will be among the major elements in the upcoming Budget 2023 after GE15," added the research house. For 2023, MIDF said it foresees unemployment rate to decline further to an average of 3.5% on the back of improving domestic economy, uptick in tourism-related activities and higher output capacity in primary sectors as commodity prices are expected to stay elevated. Read also: Unemployment rate unchanged at 3.7% in August

https://theedgemalaysia.com/node/631948

Sapura Energy completes disposal of RM318 mil vessel

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KUALA LUMPUR (Aug 11): Sapura Energy Bhd, which is disposing of assets to address its cash flow and balance sheet position, said it has completed the disposal of heavy-lift and pipelay vessel Sapura 3000 for US$71.5 million (RM317.82 million). The disposal of Sapura 3000 was completed on Thursday (Aug 11), the group said in a brief filing with Bursa Malaysia. Built in 2008, the vessel is equipped with a 3,000 short tonnes revolving mast crane, capable of executing deep and shallow water projects. Sapura Energy took over the ownership of the vessel in 2017 following the discontinuation of its 50:50 joint venture with Subsea 7 SA. The integrated energy services and solutions provider entered into a definitive memorandum of agreement on May 30 with Safeen Feeder Co – Sole Proprietorship Llc, a company under the Abu Dhabi Ports group, for the disposal of the vessel. Sapura Energy shares settled unchanged at five sen, giving the group a market capitalisation of RM799 million. Read also: Sapura Energy begins asset sale with US$71m Sapura 3000 disposal