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https://theedgemalaysia.com/node/651188 | Foreign worker recalibration programme reintroduced for one-year period | English | PUTRAJAYA (Jan 10): The government has agreed to reintroduce the labour recalibration programme and create a more relaxed plan to employ foreign worker as a measure to fulfil the demand for foreign workers in the country. Both programmes were among matters agreed upon in the special foreign worker management meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim that took place here on Tuesday (Jan 10). Home Minister Datuk Seri Saifuddin Nasution Ismail said the labour recalibration programme that ended on Dec 31 last year will be continued for a year, effective immediately. “The programme is extended as it can offer jobs to foreign workers already in the country. “We impose compounds on foreign workers who participate in the recalibration programme. Last year, we received over RM700 million in revenue through this programme,” he said at a media conference alongside Human Resources Minister V Sivakumar, following the special meeting. On the implementation of the recalibration programme, Saifuddin said that the labour sector in the country, especially in the 3D — dirty, dangerous and difficult — were hard to fill. The previous recalibration programme was created to legalise existing illegal immigrants in the country so that they could be employed by qualified employers, and was subjected to stringent conditions set by the government through the Immigration Department and the Labour Department of Peninsular Malaysia. On the new relaxed foreign worker hiring programme, Saifuddin said employers will be allowed to hire foreign workers from 15 source countries without needing to go through pre-requisite hiring and quota qualifications. He said he would head a series of visits together with the human resources ministry and supervising agencies to the 15 source countries selected, to discuss safety and welfare issues for foreign workers. The plan, however, is a temporary measure to fulfil the economic development needs and detailed information on the plan would be announced soon, he said. “The government always ensures that foreign worker management in Malaysia is based on the country’s legal provisions and will ensure that the rights of foreign workers in the country are protected fairly,” Saifuddin said. He said the meeting agreed that the implementation of the Employment Act 1955, specifically Section 60k that was amended and gazetted on Jan 1 this year, relating to employer compliance, especially on minimum wage and Social Security Organisation (Socso) payments, will apply. |
https://theedgemalaysia.com/node/641715 | Making IPEF work for Asean | English | (Oct 23): On May 23, US President Joe Biden gathered with leaders of seven Asean countries, Australia, India, Japan, South Korea and New Zealand in Japan to announce the Indo-Pacific Economic Framework for Prosperity (IPEF). Two weeks later, on June 6, the Biden administration announced 24-month duty-free access to solar cells and modules from Cambodia, Malaysia, Thailand and Vietnam. This was following a complaint by a US-based solar company that solar products that were manufactured in China were using these four countries to circumvent existing anti-dumping and countervailing duties that had been imposed by the US on China. The duty-free access to solar components for an economic sector which is important to the Biden administration — clean energy — points the way forward for future IPEF-related initiatives. Countries in Southeast Asia which are part of IPEF can benefit from taking a proactive and strategic approach to reap the full benefits in negotiations and interactions with the Biden administration. One approach would be to take a proactive defensive strategy to protect domestic supply chains that can be connected to one or more of the four pillars of IPEF, especially trade, supply chains and clean energy. Malaysia, Singapore, and Vietnam, for example, are an integral part of the US’ supply chain in the electronics and electrical (E&E) sector, either directly via US investments in these countries or indirectly via companies such as Samsung, which have significant operations in these countries that are also plugged into the US E&E supply chain. At best, these countries can hope to negotiate for similar duty-free access to certain E&E products, which cover the clean energy and supply chain pillars. At worse, they can pre-emptively signal the importance of certain sectors to avoid punitive trade action being undertaken by the US Department of Commerce. The signing of the US-Malaysia memorandum of cooperation on semiconductor supply chain resilience in May is an example of a defensive strategy. Vietnam can seek up to update its 2001 bilateral trade agreement and its 2007 trade and investment framework with the US to include some of the IPEF pillars. Local firms in these countries, which are part of the E&E ecosystem whose customers include US-based multinationals, can be “pre-cleared”, so that they can avoid being accidentally “caught” by US tariff and trade actions. Another approach would be to adopt a proactive strategy to attract new investments and enhance existing connections. The Biden administration is putting pressure on US companies to shift some of its operations out from China, and to reshore some of these operations back on US soil, especially in the manufacturing sector, to provide good-quality blue-collar jobs. It would make it easier for Asean countries to attract US and other foreign direct investment (FDIs) if these investments could be linked to one or more of the four IPEF pillars, and as an investment diversification strategy for these companies. New investments in the US to produce certain higher-end components can be linked to new investments in Asean, which are producing complementary components that are part of the same supply chain. Auto parts, especially those with electrical components for electrical vehicles (EVs), could fall into this category. Minerals such as nickel from Indonesia, which are important components in batteries for EVs, could also fit into this category. Almost all countries in Asean have looked upon the US as a place to attracting FDI. But with the introduction of IPEF, together with recent legislation such as the CHIPS Act and the Inflation Reduction Act (which focuses on climate change mitigation efforts), Asean companies should also look for investment-related opportunities in the US. These investments could focus on research and development in areas which Malaysian and Singaporean companies have a comparative advantage in, such as high-end technology in visual inspection and testing of semiconductors as well as chip design. Thai, Malaysian, and Indonesian companies should consider setting up companies in the US for the purposes of developing smart agriculture technologies, including autonomous vehicles for fruit and palm oil harvesting. Targeted government assistance combined with US incentives announced in the recent Bills could help Asean companies gain a foothold in the US market, and connect with researchers and scientists at the cutting edge of technological innovation, which can then be brought back to the region. Such investments could also be used as “showcases” to highlight that companies from Southeast Asia are able to provide high-quality jobs to Americans in the US. In the recent September meeting with trade ministers, where the negotiations framework was released, an IPEF upskilling initiative that would benefit up to seven million women in eight countries, including Brunei, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, was also announced. This initiative involves 14 US companies, including technology giants AWS, Apple, Cisco, Google, IBM, and Microsoft, and is done in partnership with Asia Foundation. Asean countries should use the IPEF platform to lobby for quotas under the speciality H1-B visa programme, so that more of their citizens who are working or want to work for US companies can gain experience working in the US. The quota for these visas, currently numbering 85,000, is usually filled up very quickly. It makes sense for Asean IPEF countries who have many students studying in the US and many high-skilled employees in US companies in places such as Penang and Manila to have better access to these work visa opportunities. The fact that IPEF does not have the same policy impact as a free trade agreement (FTA) or an Act of Congress should not be lost on Asean IPEF members. EVs made by Hyundai and Kia outside of the US would not qualify for a US$7,500 (RM35,445) tax credit under the Inflation Reduction Act, much to the recent chagrin of the South Koreans, an IPEF member. Without the legal status of an FTA, the benefits of being part of IPEF will be somewhat limited. Perhaps the greatest challenge faced by Asean IPEF members is trying to navigate around the elephant which is not in the room, namely China. To what extent will IPEF be used as a channel to limit the influence of Chinese investments in Southeast Asia? Can Asean IPEF countries take pre-emptive action to safeguard the supply chain links in areas such as the semiconductor, solar module and EV sectors, which will include Chinese companies that have or will invest in the region? The recent announcement by the US Department of Commerce to extend controls on exports of advanced semiconductor chips to China by US companies will likely test the limits of the IPEF “pillars”, especially for countries in the region which are important players in the global semiconductor supply chain. Rather than waiting for the US to set the agenda, Asean IPEF countries should act proactively to safeguard their own interests as much as possible. Dr Ong Kian Ming
Incumbent Member of Parliament for Bangi
Oct 23, 2022 |
https://theedgemalaysia.com/node/633405 | 兴业零售研究：威铖可能着眼于反弹 | English | （吉隆坡23日讯）兴业零售研究指出，威铖（V.S. Industry Bhd）从近期高位回落，并可能着眼于在1令吉支撑位附近反弹。 该研究机构今日在报告中称，1令吉是看涨突破点，并已成为强力支撑。 “如果跌破1令吉关口，可能会进一步跌至93仙的下个支撑位。” “尽管出现温和回调，但我们认为多头仍存，因该股高于21天平均线。” 该机构表示，若升破1.07令吉阻力，该股可能恢复上行趋势，并攀向1.15令吉的更高阻力位。 （编译：陈慧珊） English version：VS Industry may be eyeing a rebound, says RHB Retail Research |
https://theedgemalaysia.com/node/671624 | Frankly Speaking: A necessary move that needs regulation | English | This article first appeared in The Edge Malaysia Weekly on June 19, 2023 - June 25, 2023 Bursa Malaysia is lowering the bar for short-selling activities. Investors are now allowed to short sell securities of companies with a market capitalisation of RM200 million or more. Prior to that, short selling — both regulated and intraday — was only allowed for companies with a market cap of at least RM500 million. The new criterion was made effective on June 12. Based on the closing prices of companies on that date, 495 met the new criterion — more than double the 215 firms that were eligible prior to the change. The stock exchange said the move would boost vibrancy in securities borrowing and lending activities, which are an important component of a well-functioning capital market. The revision will offer market participants “a broader selection of approved securities aimed at meeting investors’ evolving needs”, the exchange explained. From the perspective of improving market vibrancy, this is a necessary move as the broader selection of stocks will help encourage trading interest, apart from hedging activities. Bursa as a profit-driven entity will benefit from the increased transaction volume. However, short selling usually has less positive connotations. This is mainly because short sellers are market bears that make money from falling share prices, although some researchers argue that short sellers help stem falling prices, to some extent, when they cover their short positions. The relaxation on short selling raises concerns of rampant unhealthy speculative activity in small-cap counters, especially those that do not have solid fundamentals. Nevertheless, the stock exchange stresses that the selection of approved securities for short selling will be “based on both quantitative and qualitative criteria to ensure there is sufficient liquidity, and the integrity of the market is maintained”. Having said that, as Bursa is also the stock market regulator, it is its duty to make sure the latest move will not cause market disorder, while enhancing market vibrancy and its earnings base. 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/622275 | Sapura Energy active, falls 11.8% after being classified as PN17 listed issuer | English | KUALA LUMPUR (June 1): Shares in Sapura Energy Bhd fell 11.76% in active trade early on Wednesday (June 1) after the company announced that it had been classified as a PN17 listed issuer due to going concerns over its shareholders’ equity position of RM85 million as of Jan 31, 2022, which was less than 50% of its share capital of RM10.9 billion. At 9.15am, Sapura Energy was one sen lower at 7.5 sen, with 73.51 million shares traded. PublicInvest Research has maintained its “neutral” rating of Sapura Energy, with an unchanged target price of five sen, and said the group appears to be a high-profile casualty of the Covid-19 pandemic with operational challenges resulting in impairment losses on goodwill for its drilling segment (RM1.7 billion) and engineering segment (RM1.6 billion), and impairment on its fixed assets (RM2.3 billion). It said the group had since acted to resolve liquidity challenges and improve its financial health, including negotiations with clients on existing contracts, with the aim of having amicable solutions to recover or limit losses. “It is also in the midst of negotiating with its vendors on outstanding payments as well as lenders through existing or new facilities and under a scheme of arrangement. “While recent press reports with regard to the potential financial assistance from various parties have lifted investors’ sentiment, fundamentals of the group remain weak with much more rehabilitation needed. “We retain our 'neutral' call with an unchanged target price of five sen, though we caution about near-term share price weakness in reaction to this development,” the research house said. Read also:
Auditor flags material uncertainty over Sapura Energy’s ability to continue as going concern |
https://theedgemalaysia.com/node/669536 | JPMorgan hikes India’s fiscal 2024 GDP forecast to 5.5% | English | (June 1): JPMorgan raised its forecast for India's annual growth by 50 basis points to 5.5% for fiscal 2024, but warned that a global economic slowdown and tighter financial conditions will still drag the economy. The change comes after growth in India's gross domestic product (GDP) accelerated to 6.1% in the March quarter, government data showed, boosted by government and private capital spending, even as private consumption remained sluggish. The economy also grew at a better-than-expected 7.2% for fiscal 2023. "Global growth momentum is still expected to slow in the coming quarters and, domestically, the impact of monetary policy normalisation will be felt with a lag," economists led by Sajjid Z Chinoy said. The Indian government revised its full-year growth estimate for the current financial year to 7.2% from 7% on Wednesday, above the Reserve Bank of India's estimate of 7%. India's economy grew 9.1% in fiscal 2022. The brokerage added that the growth could see upsides if the central government can pull off the "very strong increase" in budgeted capex for fiscal 2024 and convince the states to do the same. However, the economy could take a hit if the El Nino phenomenon impacts this year's monsoon, it added. The Wall Street Bank attributed the better-than-expected March-quarter GDP to higher growth in exports, adding that India stood to benefit, as a commodity importer, "through positive terms-of-trade impulses from lower commodities". |
https://theedgemalaysia.com/node/671072 | US inflation report suggests Fed rate pause will become a full stop | English | (June 13): US inflation continues to cool, giving the Federal Reserve room to take a breather from interest-rate hikes this week. The details offer signs it might become a full stop. The consumer price index rose 4% in May from a year earlier, marking the smallest advance since March 2021. Core services inflation excluding housing, a category many forecasters see as key to the outlook, receded to the slowest pace in 15 months. For the Fed, officials can breathe a sigh of relief at the beginning of a two-day policy meeting that Tuesday’s (June 13) data came in as expected. While they will acknowledge that inflation remains well above their 2% target, the US central bank is still on track to skip a rate increase on Wednesday after 10 straight hikes, a decision which may very well turn into an extended pause. “This CPI report is everything the Fed needs to pause — there is deflation and/or disinflation in every category,” Jamie Cox, managing partner at Harris Financial Group, said in a note. “If this trajectory holds in June, the need for further tightening is behind us.” Investors marked down the odds of a rate hike this week after the report and stocks rose, though the probability of another increase in July remained a bit above 50%, according to overnight index swap prices. Core inflation — a measure excluding food and energy items, which the Fed views as a better gauge of underlying price pressures — has been persistently elevated. Those prices rose 0.4% for a third-straight month, according to the data from the Bureau of Labor Statistics, which is roughly double the pre-pandemic pace. But the details underneath that number were encouraging. Rising prices of used cars were a major factor preventing the core measure from slowing in May, and leading indicators compiled by the private sector suggest going forward, those prices are set to decline. Rents, which make up the biggest portion of the index by weight, also posted monthly increases smaller than over much of the past year. “We expect a more pronounced slowdown in core inflation in the coming months,” Wells Fargo & Co economists Sarah House and Michael Pugliese said in a report. “That said, directional progress should not be confused with mission accomplished.” Here are some of the main figures in the report: Fed officials like to look at an even narrower category of core inflation, services excluding housing, to assess the trajectory of the stickiest price pressures. That metric climbed 0.2% from a month earlier, according to Bloomberg calculations, which in line with pre-pandemic trends. It was up 4.6% from a year ago, representing ongoing moderation after peaking late last year. Several Fed policymakers, including Chair Jerome Powell, have signalled they prefer to skip a rate hike at the June 13-14 policy meeting, while still leaving the door open to future tightening if needed. And regardless of whether or not the Fed hikes again, it’s likely to resist cutting rates any time soon. Investors also marked down the odds of a rate cut by the end of the year, according to swaps. For now, economists generally agree the central bank will leave rates unchanged Wednesday, but the next CPI report due in July will play a key role in determining what the Fed will do at its next meeting a couple weeks later. “Such rapid headline disinflation will make it harder for the Fed to justify raising rates again, but we can’t rule out a July hike yet,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note. “Our base case remains that the Fed is done. But it will be close.” |
https://theedgemalaysia.com/node/667867 | Mark Zuckerberg's fortune grew US$44b this year, most among billionaires | English | (May 21): Mark Zuckerberg was all-in on the metaverse last year, willing to spend whatever it took to dominate virtual reality. And it cost him, big time. At one point his wealth fell more than US$100 billion (RM453.8 billion) from its high — a stunning decline for the millennial who just a few years ago was the world’s third-richest person. So far this year, his focus has been on the physical world — first cost-cutting at his Meta Platforms Inc. and now working on a real-life competitor to Elon Musk’s Twitter. The results appear to be paying off. Zuckerberg’s fortune, which is comprised largely of his Meta stake, has grown by about US$44 billion this year, the most of anyone tracked by the Bloomberg Billionaires Index. Even with Meta shares closing down slightly Friday (May 19) in New York, Zuckerberg’s efficiency pivot has made the stock the second-best performer this year on the S&P 500, soaring more than 100% and pushing his net worth to US$89.9 billion. On Friday, Bloomberg News reported that Meta’s Instagram platform is planning to launch a competitor to Twitter as early as next month. The text-based app is currently being tested with celebrities and influencers, people with knowledge of the matter said. Meta has a better chance to take share from Twitter than smaller peers, Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz said. “Meta could be challenged to bring Twitter users to its platform,” they said in a note, yet it “may be a threat to Twitter, whose engagement has likely been hurt by charging its heavy users a monthly subscription fee.” Meta’s revenue outlook is also brightening, Loop Capital Markets analysts Rob Sanderson and Alan Gould wrote in a May 15 note. The analysts have a target of US$320 a share, compared with Friday’s closing price of US$245.64. “We think Meta’s product story is as good as it’s been in some time,” they said. |
https://theedgemalaysia.com/node/642119 | Petronas Dagangan sells Bintulu LPG terminal to Pusaka | English | KUALA LUMPUR (Nov 1): Pusaka Capital Group’s wholly-owned subsidiary Pusaka Integrated Resources Sdn Bhd has acquired the Bintulu liquefied petroleum gas (LPG) terminal from Petronas Dagangan Bhd, the Borneo Post reported on Tuesday (Nov 1). “The sale and purchase agreement was signed by both parties in a signing ceremony held at Dewan Seminar, Sarawak Timber Industry Development Corporation (STIDC) and witnessed by Deputy Premier of Sarawak Datuk Amar Awang Tengah Ali Hasan,” the Borneo Post reported without specifying the value of the transaction. |
https://theedgemalaysia.com/node/649801 | SunCon-led consortium in negotiation to build Toyo Ventures' Vietnam power plant for US$2.2 bil | English | KUALA LUMPUR (Dec 28): Toyo Ventures Holdings Bhd's units have entered into an interim agreement with a consortium led by Sunway Construction Group Bhd (SunCon) to negotiate details for the consortium to undertake a US$2.2 billion (RM9.73 billion) job for the development of a 2,120 MW coal-fired power plant in Vietnam. The agreement sets out the framework for negotiations and discussions between the parties to establish the detailed terms and conditions about the contractor's performance in design, engineering, procurement, manufacture, supply, construction, erection, testing and commissioning of the electric generation facility. Toyo Ventures owns the project through two wholly owned subsidiaries, namely Toyo Ink Group Bhd and Song Hau 2 Power Co Ltd. The other member of the consortium with SunCon is Power Engineering Consulting Joint Stock Co 2, a subsidiary of Vietnam state-owned Vietnam Electricity. Toyo Ventures said the interim engineering, procurement and construction (EPC) agreement will be terminated if the EPC contract is not executed by the parties within six months. "The interim EPC agreement demonstrates the commitment of the owner (Toyo Ink and Song Hau 2) to fulfil the requirements of the BOT (build-operate-transfer) contract and sourcing project financing for the power plant project so that ground works at the project site can commence without further delay," said Toyo Ventures in a stock exchange filing on Wednesday (Dec 28). Toyo Ventures announced back in December 2020 that it had executed the BOT contract with the Ministry of Industry and Trade (MOIT) of the Socialist Republic of Vietnam. The BOT contract involves 25 years of concession before the facility is transferred to an entity nominated by MOIT. In its Dec 29, 2020 stock exchange filing, Toyo Ventures said the project would have a total land area of 117.39 hectares and the estimated cost was approximately US$3.23 billion. Subsequent to the announcement, shares of Toyo Ventures went on a steep rally, rising nearly four times from 99.5 sen on Dec 29, 2020 to RM3.87 less than a month later on Jan 19, 2021, before trending downwards to as low as 41.5 sen in May this year. The counter has been regaining some ground in the past few months, before it spiked 23% to RM1.19 on Tuesday (Dec 27), marking its biggest single-day gain in over seven months. Shares of Toyo Ventures, which have fallen 32% year-to-date, dropped 23 sen or 19.33% to settle at 96 sen on Wednesday, giving it a market capitalisation of RM102.7 million. SunCon, on the other hand, closed one sen or 0.65% higher at RM1.55 on Wednesday, valuing the group at RM2 billion. |
https://theedgemalaysia.com/node/653104 | Bed Bath & Beyond says it received default notice from JPMorgan | English | (Jan 27): Bed Bath & Beyond Inc. edged closer to a bankruptcy filing on Thursday after the retailer said it had received a default notice from JPMorgan Chase & Co, its loan agent, and warned it didn’t have enough funds to make payments. Creditors are demanding immediate repayment of the company’s debt after it breached the terms of a credit line, according to a regulatory filing on Thursday. Bed Bath & Beyond listed around US$2.1 billion of obligations it owed as of November. The shares closed down 22%, the biggest drop since Jan 13. “Generally, in situations like this where a company defaults on their loan agreement our experience is, if they don’t come to an agreement with their lenders, the likelihood of a bankruptcy filing within the next 30 days is relatively high,” said Dennis Cantalupo, the chief executive officer of Pulse Ratings, a credit-rating and consulting firm. Bed Bath & Beyond had said earlier this year that it was considering all options to fix its strained finances, including the possibility of filing for bankruptcy. “At this time, the company does not have sufficient resources to repay the amounts under the credit facilities and this will lead the company to consider all strategic alternatives, including restructuring its debt under the US Bankruptcy Code,” the company said in the filing. In an emailed statement, a Bed Bath & Beyond spokeswoman said the company is continuing to “work with our advisers and implement actions to manage our business as efficiently as possible.” She added: “We will update all stakeholders on our plans as they develop and finalize.” The notice is the latest sign that one of the largest sellers of home goods in the US is likely to seek bankruptcy protection in short order after years of falling revenue. The company has begun speaking with potential lenders that would fund the firm during bankruptcy proceedings, Bloomberg reported earlier. “I’m expecting a filing any day,” said Cristina Fernández, a Telsey Advisory Group analyst. “I’m not sure what other avenues there are for them at the moment.” Fernández said she had visited a Bed Bath & Beyond store in Paramus, New Jersey, in recent days and noticed that many shelves were bare — echoing the observations of many shoppers in recent months as the retailer struggles to convince suppliers to supply merchandise. Bed Bath & Beyond’s revolving credit line, administered by JPMorgan, is secured by a claim on its inventory, the fluctuating value of which determines the amount of credit available at any given point. The company must provide regular updates to the bank regarding the value of inventory it has on hand, calculated at an agreed discount. The filing indicates that the value of Bed Bath & Beyond inventory during the most recent update to JPMorgan had fallen below the amount the company had already borrowed from its revolver. The mismatch breaches the terms of the loan, and must be remedied by a cash payment in order to avoid a default. Separately, Bed Bath & Beyond said it had appointed Carol Flaton to its board. Flaton specialized in restructuring and turnarounds at consultancy AlixPartners and also at the bank Lazard. The retailer said she will be paid US$30,000 per month. The ubiquitous US brand, founded in 1971 in Union, New Jersey, Bed Bath & Beyond was once a staple of going-to-college shopping lists and wedding registries. The firm’s decline has been years in the making and has accelerated in recent months as suppliers become increasingly concerned about the retailer’s future and demand to receive payments in advance. Other manufacturers have lowered their credit limits with the retailer in order to reduce the risk of not getting paid. That limited the retailer’s merchandise during the pivotal holiday season, exacerbating a vicious cycle of falling inventory levels, declining foot traffic and declining revenue — making it harder, in turn, to pay suppliers. |
https://theedgemalaysia.com/node/664735 | Victoria Capital resurfaces as Borneo Oil’s substantial shareholder | English | KUALA LUMPUR (April 26): Sabah-based Victoria Capital Sdn Bhd, has resurfaced as a substantial shareholder of Borneo Oil Bhd after exiting the company in 2019. In a filing with Bursa Malaysia, Borneo Oil said Victoria Capital bought 488.1 million shares or a 5.026% stake in the company on Wednesday (April 26). Following the stake acquisition, Victoria Capital is now the company’s third largest shareholder after Lee Shing Hong Securities Ltd with a 12.96% stake and MT 23 Resources Ltd (5.34%), Bloomberg data showed. On April 5, 2019 Victoria Capital ceased to be the company’s substantial shareholder after disposing of 18 million shares at that time. For the first half of the financial year ended Dec 31, 2022 (1HFY2023), Borneo Oil’s net profit increased to RM28.75 million from RM14.06 million in the corresponding period before as revenue climbed to RM42.66 million from RM29.43 million a year earlier. At the closing bell, Borneo Oil’s share price was half a sen or 33.33% higher at two sen, giving the company a market capitalisation of RM194.23 million. |
https://theedgemalaysia.com/node/602223 | 11月贷款增长稳健 分析员维持银行业增持评级 | English | （吉隆坡3日讯）由于去年11月的贷款按年增长4.3%，分析员维持对银行业的“增持”评级。 丰隆投资银行研究分析员Chan Jit Hoong今日在报告中指出，银行贷款增长超越其对2021财政年3至3.5%的预期。因此，鉴于新冠疫情的不利因素减弱，他将增长预测上调到4至4.5%。 他补充：“在经济复苏推动，2022财年的贷款增长幅度相若。” 他预计，2022财年的净息差将扩大，因存款竞争更加温和、资产再投资收益率提高，以及隔夜政策利率（OPR）可能上调。 他还认为，银行业的风险回报倾向于上行，因市场会考虑大多数的负面因素。 “我们认为，新冠疫情困境可能会在2022年结束，而经济和银行业最终会好转。因此，我们看好并在2022年上半年采用相当广泛的购股策略。同时，维持该行业的‘增持’评级。” 针对大型银行，他看好马银行（Malayan Banking Bhd），目标价9.40令吉，因收益率强劲，以及大众银行（Public Bank Bhd），目标价4.50令吉，因资产质量具韧性。 中型银行方面，则青睐兴业银行（RHB Bank Bhd），目标价7令吉，因一级资本比率（CET1）高，以及价格具吸引力。 至于小型银行，他均给予所研究的3家银行“买入”评级，即大马回教银行（Bank Islam Malaysia Bhd），目标价3.45令吉，因结构增长动力乐观、安联银行（Alliance Bank Malaysia Bhd），目标价3令吉，因股息派发恢复正常快于预期，以及艾芬银行（Affin Bank Bhd），目标价2.25令吉，这是基于其资产管理臂膀的潜在价值释放活动。 达证券分析员Wong Li Hsia指出，由于首11个月的贷款增长已达4%，2021全年的贷款增长可能超过她的预测。她并预计，2022年将增长5.2%。受企业和消费者贷款年增4.6%和5.6%所推动。 有鉴于此，她维持银行业的“增持”评级。 惟由于近期股价上涨，她将大众银行的“守住”评级下修至“卖出”，因上行空间不到7%。 她还将联昌国际集团（CIMB Group Holdings Bhd）的“买入”评级调降至“守住”，因上行空间收窄至7至12%。 兴业投资银行分析员Eddy Do和Fiona Leong表示，2021年11月的银行系统数据表明，经济持续复苏，商业的贷款需求从前一个月的下跌中反弹。 他们维持银行业的“增持”评级，首选股仍是联昌国际（股票提升策略回酬良好）、马银行（环境、社会与治理（ESG）领导地位和具吸引力的股息），以及大马银行集团（AMMB Holdings Bhd），因收益复苏及估值不高。 与此同时，大马投资银行分析员Kelvin Ong指出，首11个月的贷款增长4.3%，符合他对2021年3至4%的增长预测。 “我们预计2022年的贷款增长5至6%，得益于更强劲的经济增长，以及私人界支出和出口改善。” 他维持对银行业的“增持”评级，首选股是兴业银行（目标价6.90令吉）、马银行（目标价9.90令吉）及联昌国际（目标价6.20令吉）。 小型银行股中，他看好安联银行（目标价3.80令吉），因为估值不高、资产质量前景改善，以及股息派发恢复正常。 （编译：陈慧珊） English version：Analysts stay overweight on banking sector on solid November loan growth |
https://theedgemalaysia.com/node/641560 | 昨创业板上市 必达美今遭套利挫18% | Mandarin | （吉隆坡27日讯）昨日在大马交易所创业板上市，且表现强劲的必达美（Betamek Bhd），今日遭投资者套利，下挫18%。 该股今日开盘报72.5仙，较昨日收市的71仙，上升1.5仙。 首30分钟内更攀至75.5仙的高位，惟涨势无以为继，逐步回吐升幅。 闭市时，该股挫18.31%或13仙，收于58仙，市值为2亿6100万令吉。日内于57仙至75.5仙交易。 该股交投冠全场，达1亿7961万股易手。 必达美昨日开盘较首次公开募股（IPO）的50仙溢价23%，半小时内触及1令吉的盘中高位。 （编译：陈慧珊） English version：Betamek drops 18% on profit-taking after Wednesday's strong ACE Market debut |
https://theedgemalaysia.com/node/651729 | Aurelius plans 10% placement to raise RM75 mil, proposes to buy land for RM13.58 mil | English | KUALA LUMPUR (Jan 13): Kulim-based industrial electronic products and semiconductor components manufacturer Aurelius Technologies Bhd has on Friday (Jan 13) proposed a 10% shares placement to raise about RM75 million. The proceeds from the corporate exercise will be mainly used to partly repay bank loans and to purchase additional surface mount technology (SMT) lines. The electronics manufacturing services (EMS) firm said in a bourse filing that the issue price per placement share has been assumed to be RM2.10, which represents a discount of approximately 1.7% to the five-day volume weighted average market price of the shares up to and including the latest practicable date (LPD) of RM2.1353 per share. As at the LPD on Jan 9, the total share base is 358.18 million. With gross proceeds of about RM75.22 million, Aurelius has earmarked RM27.42 million for part repayment of bank facilities within three months. As at Dec 31, 2022, the EMS provider has total bank facilities of around RM97.13 million. “The part repayment of bank facilities of approximately RM27.4 million is expected to result in estimated finance cost savings of approximately RM1.63 million per annum based on the average effective interest rate or profit rate of 5.95%,” Aurelius said. It will allocate another RM25 million for the purchase of three additional SMT lines and RM20 million for investment in a new manufacturing plant, both within 24 months. “As at the LPD, the group’s total manufacturing floor space is 87.2% utilised,” Aurelius said. The group also set apart RM2 million for the installation of a solar photovoltaic system and the remaining RM800,000 for estimated expenses on the proposed placement, which is expected to be completed in the first quarter of 2023. For the financial year ended Jan 31, 2022 (FY2022), Aurelius recorded a 46% increase in profit after tax to RM22 million, up from RM15.1 million in FY2021. The group has secured an order book of approximately RM360 million as at Dec 12, 2022. “The proposed placement is expected to contribute positively to the future earnings of the group arising from the finance cost savings and also when the other benefits arising from the use of proceeds are realised,” Aurelius said. The group, however, acknowledged that there will be an immediate dilution in the earnings per share, as a result of the expanded share base upon completion of the proposed placement. Maybank Investment Bank Bhd has been appointed as the principal adviser and sole placement agent to Aurelius for the proposed placement. Meanwhile, RHB Investment Bank Bhd has been appointed as co-lead manager for the proposed placement. In another bourse filling on the same day, Aurelius also announced that it has signed the acceptance of the letter of offer from Northern Technocity Sdn Bhd for the purchase of the latter’s vacant industrial land in Kulim High-Tech Park measuring about 301,874 sq ft for RM13.58 million. It said the freehold industrial land that has land platform works and basic infrastructure installation is located approximately 6km from the existing operating factory of BCM Electronics Corp Sdn Bhd, a wholly-owned subsidiary of Aurelius. The vendor, Northern Technocity, is a wholly-owned subsidiary of MMC Corp Bhd. “The company intends to construct an additional manufacturing plant (P5) with an approximate gross floor area of 200,000 sq ft on the proposed land to carry out advanced electronics manufacturing, and outsourced semiconductor assembly and test (OSAT) activities. The proposed land acquisition is expected to be completed by the fourth quarter of the financial year ending Jan 31, 2024 (FY2024). The construction cost of P5 is estimated to be at around RM55 million and it is targeted to be operationally ready by the first quarter of FY2025. Aurelius had earlier on Nov 1, 2022 entered into a two-year lease for a 46,320 sq ft plant, also in Kulim Hi-Tech Park for P4, which primarily functioned as a warehouse and to undertake light assembly activities. On Friday, shares of Aurelius declined three sen to settle at RM2.15, valuing the group at RM770 million. |
https://theedgemalaysia.com/node/636084 | NYT: Goldman Sachs set for lay-offs as deal-making slows | English | KUALA LUMPUR (Sept 13): Goldman Sachs is preparing for a round of lay-offs that could happen in the next few week, said the New York Times (NYT), citing people familiar with the plans. In a report on Sept 12, NYT said the job cuts will affect employees across the company. Goldman typically revisits its headcount every year, letting go of employees based on performance and to match the bank’s needs. It had paused that programme during the pandemic, which also coincided with a record period for deal-making, when bankers complained of overwork. The programme typically lays off 1% to 5% of workers, and this round of lay-offs is likely to be at the lower end of that range. Goldman’s chief financial officer Denis Coleman told analysts in July that the bank was “probably reinstating our annual performance review of our employee base at the end of the year”. The move comes as the Federal Reserve’s effort to tame inflation by raising rates has cooled deal-making and raise concerns that the US economy will tip into recession. The war in Ukraine has added further uncertainty to the mix. Goldman reported in July that its second-quarter profit had dropped nearly 50% from a year earlier, to just under US$3 billion. Revenue from Goldman’s investment banking division fell 41% from the same period in 2021. The firm said its backlog of deals fell, but did not say by how much. At the time, the bank said hiring for the rest of the year would slow. |
https://theedgemalaysia.com/node/615222 | Kerjaya Prospek获2.65亿建筑合约 | English | （吉隆坡6日讯）Kerjaya Prospek Group Bhd获得2亿6500万令吉的合约，承接槟城斯里丹绒槟榔（Seri Tanjung Pinang）2A期项目的主楼建筑工程。 该集团向大马交易所报备，上述合约是由东家（Eastern & Oriental Bhd）间接子公司Persada Mentari私人有限公司，授予其独资子公司Kerjaya Prospek（马）私人有限公司。 该项目包括两栋公寓，共有1020个单位、一层地下停车场、四层停车场和两层商业单位。 Kerjaya Prospek指出，将从7月1日动工，并预计在32个月内完成。 该集团总执行长兼执行董事郑荣忠表示，连同最近获得的7亿1010万令吉Astrum Ampang发展合约，公司今年来获得3份合约，这迅速接近今年的12亿令吉目标。 他说，加上这些新合约，未完成订单增至44亿令吉，将在未来5年提供盈利能见度。 “我们将凭着自身的竞争优势，继续竞标新项目，以加强股东回酬，并带领集团进入下一增长阶段。” 休市时，该股平盘挂于1.17令吉，市值报14亿5000万令吉。 （编译：陈慧珊） English version：Kerjaya Prospek secures RM265m building work contract in Penang |
https://theedgemalaysia.com/node/662005 | RM109 mil raised, but Bintai Kinden still defaults on loans | English | This article first appeared in The Edge Malaysia Weekly on April 3, 2023 - April 9, 2023 BINTAI Kinden Corp Bhd slipped into Practice Note 17 (PN17) status because it defaulted on RM109 million worth of financing facilities. The company attributes its financial distress to the Melaka government’s failure to take action to address payments owed arising from the Universiti Melaka (Unimel) project. The outstanding amount owed to Bintai Kinden’s wholly-owned unit Optimal Property Management Sdn Bhd (OPM) by Kolej Teknologi Islam Melaka Bhd (KTIMB) is RM49.8 million. KTIMB — the operator of Unimel — had awarded OPM a contract in early 2016 valued at RM121 million via a concession agreement to construct student accommodation. MBSB Bank Bhd terminated Bintai Kinden’s role as the corporate guarantor for the RM109 million in Islamic banking facilities granted to OPM. Consequently, it triggered the Main Market listing requirements pertaining to a default in payment by a listed issuer, its major subsidiary or major associate firm, and is unable to provide solvency declaration. The company’s default on a loan raised eyebrows considering the sums that Bintai Kinden managed to raise over the past four years. Mechanical and electrical engineering services provider Bintai Kinden has previously been linked to the mass rapid transit projects in Malaysia and Singapore. The company is among those that diversified into the healthcare industry during the pandemic. According to filings with Bursa Malaysia, Bintai Kinden raised some RM89.77 million through four rounds of private placements between 2020 and 2022. On top of that, it has also raised RM20.19 million via the issuance of 190.5 million redeemable convertible preference shares (RCPS) to boutique fund management company OUD Asset Management Sdn Bhd. In total, Bintai Kinden raised RM109.96 million fresh cash by issuing new shares and RCPS. The RCPS offers a yield of 4%. But instead of sitting on a large cash pile, the company is heavily in debt, despite all the money it raised in recent years. Its bank borrowings ballooned to RM147.26 million in the financial year ended March 31, 2022 (FY2022), nearly three times the RM57 million in borrowings in FY2018. As at Dec 31, 2022, its bank borrowings had dropped slightly to RM135.10 million. It is also worth noting that the company has been suffering from negative operating cash flow. Between FY2020 and FY2022, Bintai Kinden’s operating cash flow was in deficit of more than RM20 million each financial year. Bintai Kinden spent the money raised on acquiring companies. In FY2022, it invested RM40 million in acquisitions plus “addition of other investments”, as the company stated in the annual report, compared with RM64 million, including RM32.89 million via share placement, that it raised during the year. One notable investment is the acquisition of 100% equity interest in Johnson Medical International Sdn Bhd (JMI) for RM50 million in a bid to expand its healthcare business. Bintai Kinden settled the acquisition with RM26 million cash and the issuance of 58.54 million new shares at 41 sen apiece to the vendor, Yeo Eng Lam. Yeo has become the single largest shareholder in Bintai Kinden, despite only holding a 10.55% stake. The company’s shareholding is highly fragmented. JMI is a medical engineering solutions provider focused on the manufacturing, supply and installation of operating theatres, critical care units and medical gas delivery systems, and the trading of medical equipment and supplies. During FY2022, Bintai Kinden also acquired the entire stakes of two companies, namely Bintai Medical Solution Sdn Bhd and Bintai Biotech Sdn Bhd, for RM10,000 each. Bintai Medical Solution is principally involved in the provision of services in the distribution of medical equipment and operating business relating to wellness programmes, while Bintai Biotech is engaged in the provision of services in relation to the biotech industry. Apart from acquisitions, the company had put down RM16.1 million for “additions of other investments”. However, the group did not provide any explanation for this. Bintai Kinden continued to invest in FY2023. Its cash flow statement as at Dec 31, 2022, shows that its addition of other investments amounted to RM9 million, although its cash flow remained in deficit. At the height of the Covid-19 pandemic in 2020, it ventured into developing a vaccine for Covid-19 through a partnership with a US pharmaceutical company. Bintai Kinden also entered into a licensing agreement with US-based firm Generex Biotechnology Corp and its subsidiary NuGenerex Immuno-Oncology Inc, which granted Bintai Healthcare Sdn Bhd the exclusive rights to distribute, sell and commercialise Generex’s Covid-19 vaccine in Malaysia. Ever since Bintai Kinden announced its foray into the vaccine business, its share price has rallied. From barely 10 sen prior to the vaccine venture announcement in August 2020, its share price leapt to RM1.39 in December 2020. In 2021, the company signed another agreement to supply its cold chain boxes for the storage and distribution of Covid-19 vaccines, a venture that it said would contribute positively towards future earnings. As the saying goes, the rest is history as the world has entered into the endemic phase. Had the healthcare venture paid off, Bintai Kinden would not have been categorised as a PN17 company. It is worth noting that Bintai Kinden’s former major shareholders pared down their stakes during the share price rally. Former executive vice-chairman Ong Puay Koon and his son Choon Lui, via their private vehicle Bintai Holdings (M) Sdn Bhd, disposed of 28.5 million shares on Dec 16, 2020, thereby reducing their stake to 9.43% from 21.39%. Three months later on March 31, 2021, they sold another block of 31.69 million shares, thus ceasing to be substantial shareholders in Bintai Kinden. The second-largest shareholder, Nusankota Development Sdn Bhd, also took advantage of the strong share price to sell its entire 14.4% stake, or 50.03 million shares, at the same time. Nusankota Development got its stake back in March 2017, as it sold equity interest in OPM to Bintai Kinden. The deal was valued at RM10.01 million. Assuming that Nusankota Development sold the 50.03 million shares at the close of 86 sen on Dec 16, 2020, its block of shares should be worth RM43.02 million. The co-founder and former executive director of Aimflex Bhd (formerly known as i-Stone) Chan Kok San emerged as a substantial shareholder of Bintai Kinden via the acquisition of a 6.55% stake, or 25 million shares, at 50 sen per share in an off-market transaction on April 1, 2021, a day after the Ongs’ exit as major shareholders in the group. Apart from Chan, kitchen furniture designer and maker Signature International Bhd emerged as a shareholder in Bintai Kinden with a 4.71% stake, or 18 million shares, in 2021, according to the 2021 annual report. However, Signature International might have sold its stake as it was not on the shareholder list the following year. Bintai Kinden’s PN17 status seems to have prompted many questions, one of which is its ability to raise over RM100 million fresh cash although it is not a profitable company.
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https://theedgemalaysia.com/node/677587 | Over 600 Bersatu members in Rantau Abang leave party for Umno | English | DUNGUN (Aug 5): More than 600 members of Bersatu in the Rantau Abang state constituency here announced they were leaving the party to join Umno on Saturday (Aug 5). Former Rantau Abang Bersatu coordinating chairman Anwar Rosli said they made the decision because they were tired of the Bersatu leadership in the area, which neglected their welfare and only made empty promises. “After examining the current political situation, the members who left the party today (Saturday) feel that they have been marginalised by the Bersatu leadership here, who did not care about our problems. “Many of us here are poor, but Bersatu didn’t help us...the one who helped a lot was Umno, and they didn’t even discriminate whom to help,” he told the media here. Most of the former Bersatu members who left the party were those in the Balai Besar and Taman Permint Indah polling districts. According to Anwar, many more Bersatu members, especially in Dungun, will follow in their footsteps to leave the party and join Umno soon. Former Balai Besar Bersatu branch chief Jalaluddin Mohd Zin handed over 600 application forms from the former members to join Umno to Dungun Umno division deputy chief Nur Hisyam Johari. Visit this link for everything about the State Polls 2023. |
https://theedgemalaysia.com/node/641857 | 5大电讯公司签署接入协议 租用DNB 5G网络 | English | （吉隆坡30日讯）消息指，除了明讯（Maxis Bhd）外，5家移动网络运营商已与Digital Nasional Bhd（DNB）签署各自的接入协议，截止日期为10月30日。 这5家公司包括马电讯（Telekom Malaysia Bhd）、天地通亚通（Celcom Axiata Bhd）、数码网络私人有限公司（Digi Telecommunications Sdn Bhd）、杨忠礼通讯私人有限公司（YTL Communications Sdn Bhd）及U Mobile私人有限公司，他们将租用DNB最近推出的5G网络。 这意味着这5家公司即将推出5G服务。 马电讯今早已就此事向大马交易所报备。马电讯也是持有DNB股权的4家电讯公司之一。 “根据接入协议，DNB将为全国提供5G批发网络产品，这是DNB 5G接入网络的基础产品。” 马电讯在致马交所的文告中表示：“马电讯必须订阅国家5G批发网络产品，才能使用DNB提供的其他5G服务。” 根据马电讯的说法，接入协议规定了5G服务的条款和条件，该服务于10月7日开始追溯，并将继续有效长达10年，直至2032年10月6日到期。 马电讯表示，截至6月30日，约有290万名固定宽频用户，集团提供5G服务，将增强其作为“通过5G和固定宽频解决方案加速采用固定移动覆盖的首选合作伙伴”的地位。 大马通讯及多媒体委员会（MCMC）表示，截至9月30日，我国的5G网络覆盖率已达到人口密集区的33.2%。该委员会两周前告诉媒体，到2024年，覆盖率有望达到政府设定的80%目标。 自2021年12月以来，DNB一直在实施5G推广计划，MCMC的目标是到今年年底在人口密集区实现约38%覆盖率。 除了马电讯外，入股DNB的其他3家电讯公司是天地通亚通、数码网络和杨忠礼通讯。 天地通亚通与数码网络各认购12.5%股权，杨忠礼通讯和马电讯各持有20%股权。财政部则持有剩下的35%股权。 明讯和U Mobile决定不购买DNB股权。 （编译：魏素雯） English version：Five telcos execute access agreements to lease DNB's 5G network |
https://theedgemalaysia.com/node/632021 | 等待GDP数据 马股遭套利走软 | English | （吉隆坡12日讯）投资者在第二季国内生产总值（GDP）数据公布前保持观望，马股昨日强势收高后，今早遭套利走软。 截至9时05分，富时隆综指微滑0.12点，挂1505.44点。 综指以1505.07点报开，较昨日闭市的1505.56点，下滑0.49点。 下跌股189只、上升股105只，另有189只无起落、1855只无交易，以及24只暂停交易。 成交量9891万股，值4792万令吉。 乐天交易股票研究副总裁Thong Pak Leng指出，综指昨日突破1500点关口后，将继续走高。 “随着市场基调改善，我们预计综指今日将在1500至1515点区间波动。” “与此同时，我们注意到物流相关股的购兴回笼，因许多公司最近表现相当强劲。” 重量级股中，马银行（Malayan Banking Bhd）升2仙，至8.96令吉、联昌国际集团（CIMB Group Holdings Bhd）起1仙，报5.38令吉、丰隆银行（Hong Leong Bank Bhd）增1仙，挂20.88令吉，而大众银行（Public Bank Bhd）和IHH医疗保健（IHH Healthcare Bhd）分别持平于4.65令吉和6.48令吉。 国油化学（Petronas Chemicals Group Bhd）和国家能源（Tenaga Nasional Bhd）各跌2仙，分别报8.76令吉和8.56令吉。 至于热门股，Theta Edge Bhd扬2仙，挂98仙、Hibiscus Petroleum Bhd亦升2仙，至86仙、民泰近电（Bintai Kinden Corp Bhd）和G3全球（G3 Globa Bhd）则分别平盘挂于10仙和3仙，而优丽消防（Unique Fire Holdings Bhd）跌1仙，报24.5仙。 （编译：陈慧珊） English version：KLCI opens marginally lower ahead of 2Q GDP announcement |
https://theedgemalaysia.com/node/611795 | QSR品牌委任3名女董事 | English | （吉隆坡14日讯）大马肯德基（KFC）及必胜客（Pizza Hut）营运商QSR品牌（QSR Brands (M) Holdings Bhd）宣布增加4名董事部成员，其中3人是女性。 QSR品牌委任IBM Malaysia前董事经理兼总执行长Chong Chye Neo、亚通（ Axiata Group Bhd）董事Khoo Gaik Bee及大马银行（Ambank (M) Bhd）董事Foong Pik Yee加入董事部。 Chong和Khoo的任命将于本月生效，而Foong的任命则将在4月1日生效。 至于第四名董事，该公司表示，这是一名“从国外加入”的成员，是“区域快餐前负责人”，公司即将公布详情。 （编译：魏素雯） English version：QSR Brands announces three women additions to its board |
https://theedgemalaysia.com/node/656513 | Cover Story: Tokenising real estate in timeshare | English | This article first appeared in Digital Edge, The Edge Malaysia Weekly on February 27, 2023 - March 5, 2023 Before Bernard Lau became a realtor and hotelier, he often travelled abroad for work, sometimes for stretches at a time. On occasions when those trips extended over a month, he always found himself wishing there were affordable and flexible timeshare options that could serve as a base from which to head out, instead of switching hotels from stop to stop. In 2019, an idea that could potentially disrupt timeshares — one of the hospitality industry’s most outmoded products — by leveraging blockchain and Web3 was raised during the planning stage of the first luxury hotel project by Lau and his partners, the Kunang Kunang Tent Resort on the easternmost tip of Java in Indonesia. Lau was ecstatic. A timeshare is a form of fractional ownership of vacation property that has existed since the 1960s, in which multiple purchasers have exclusive use of such property for a period of time. It can be applied to many types of properties and even exclusive modes of transport such as private jets and luxury yachts. Conventionally, a timeshare is a lifetime commitment. According to Forbes Advisor, one prepays or finances a lump sum up front plus an annual maintenance fee. The costs vary widely, depending on one’s contract and ownership type. In the US, where timeshares are most popular, the average cost of stay for a one-week timeshare was US$22,942 in 2019, excluding annual maintenance fees and any other expenses, stated the American Resort Development Association. Hospitality groups such as Marriott, Wyndham, Holiday Inn and Disney are among the most renowned timeshare operators. With Kunang Kunang, Lau and his team wanted to experiment allowing individuals to buy “time they need” at a specific place instead of committing to inflexible arrangements like timeshares of old, says Lau, co-founder of Hong Kong-based Gravity Property Holdings. Gravity Property is the real estate consultancy that manages Gravity Resorts, a boutique resort agency that has a presence in Indonesia, Thailand and Japan. By the second half of 2021, Lau — together with blockchain company LABS Group — had launched the world’s first-ever community-owned project, where stays at Kunang Kunang were fractionalised into Rewarding Timeshare Non-Fungible Tokens (RTS-NFTs). Located in a verdant forest in the mountainous region of Banyuwangi — home to some of Indonesia’s incredible volcanoes and craters — Kunang Kunang was the ideal vacation spot to begin the pilot project, says Lau, given that the luxury resort is only a 30-minute flight or a three-hour car ride out of Bali, one of the world’s most popular holiday destinations. Instead of competing for hotel bookings, he chose to convert the glamping getaway into timeshare units but via contracts with codes written into blockchain. Further, with more than 200 accommodations ranging from cosy inns offering basic services to palatial all-inclusive resorts in the area to compete with, Lau knew the only thing that would set Kunang Kunang apart would be technology adoption and harnessing changing customer profiles. LABS Group had fractionalised the entire resort into 365 RTS-NFTs, which were sold and snatched up over the course of 13 days starting July 15, 2021, while the resort was being constructed. The tokens are linked to “staying rights” at the resort. These can be swapped with other owners, or for a number of other benefits such as limousine pickup services, complimentary access to the resort’s spa and meals. So far, two buyers have claimed their tokens since the resort began operations in April 2022. Traditionally, timeshare products were often promoted by sales associates who approached customers directly. But these are impractical due to the high marketing costs involved. Also, hard selling tactics such as direct approaches no longer suit the current generation of travellers who comprise mostly millennials and Gen Z. These groups prefer to plan and book their own trips at their convenience, says Lau. “Timeshare is an old industry that has not been disrupted. Many big [hospitality] brands do it because they have the capacity and portfolio [of properties],” he explains. “There are a lot of negative points to [traditional] timeshares, such as high marketing costs [sales agent fees], bad service [brokers or intermediaries] and high management fees, all of which can be negated using NFTs [and blockchain]. He continues, “Timeshare adds value to hotels, allowing them to create additional revenue from their existing rooms.” Being able to add value distinguishes hotels grappling with low margins in a highly competitive space. It is an experience Lau knows only too well. Before joining the hospitality industry, he ran a real estate business in Shanghai with his wife. The duo scouted properties in the city, especially historical buildings around the French Concession, to be refurbished and leased out. In 2015, Lau was managing a portfolio of nearly 40 properties when he received a surprising call from his Indonesian friend, Meike Nazeki. Meike had inherited from his father a piece of land in Uluwatu, Bali, on which he wanted to build a hotel. Although neither had experience in building and running a resort, they promptly began working on the project. They started with two villas overlooking Uluwatu’s cliffs, which eventually expanded to five villas by 2018 and later consolidated under Gravity Resorts. In 2019, Lau decided to sell his real estate business in Shanghai and focus on running the suite of vacation homes — including those in Shanghai, Bangkok, Thailand and Japan, which are also parked under Gravity Resorts. His initial plans were to relocate with his family to Bali, but the Covid-19 pandemic threw a spanner in the works and he returned to Kuala Lumpur instead. The emergence of tech disruptors such as Airbnb, Booking.com and Expedia has impacted the timeshare industry, offering a wide range of properties for short-term stays that appeals to those who may be averse to long-term ownership commitments. Despite the home-sharing economy’s aggressive growth, timeshares continue to exist as Airbnb accommodations still mostly comprise residential houses. Many can’t compete with the full suite of services brand-name timeshare resorts offer, which include room service and facilities like gyms and pools, Lau reckons. “Again, it’s a preference. At Airbnbs, cleaning fees are charged separately. I’ve rented a unit for US$200 and the host charged US$100 for cleaning fees,” he says. In a white paper published by Reuters Events, Mike Flaskey, former CEO of US-based Diamond Resorts (a firm with a network of more than 379 vacation destinations in 35 countries), said sales of timeshares have grown significantly over the years, with millennial membership outpacing that of other groups with an average growth of 25% year on year in the last five years until 2020. “This growth seems to mirror other industry trends, as millennials invest more in their vacations compared to any other demographic. It is said that 33% are now willing to spend US$5,000 or more on a vacation!” said Flaskey in the interview. Lau believes the upswing in timeshares has to correspond with the rise of digital nomads. “[Work and travel] trends are changing with the rise of more digital nomads. By some estimates, there are 35 million digital nomads worldwide, with the number expected to hit 100 million by 2030. More people are travelling after Covid-19, with an increasing number working remotely, with the ability to work from anywhere.” A faction of these categories of remote workers want the level of service provided in hotels without the usual exorbitant fees. Lau shares that during a work trip to Singapore in October last year, which coincided with the 2022 Grand Prix there, he had to pay overpriced hotel rates and needed to change rooms every two nights throughout his one-week stay in the city state. “When I speak to digital nomads such as content creators, who travel frequently, the options available to them [if they want a hassle-free stay] are either hotels or rentals. [These options] are usually signed annually as monthly leases and are very expensive. So, they are looking for something in between,” he adds. “One of the perks of staying in a hotel is that everything is covered. You don’t have to worry about fixing light bulbs or tidying up. In Dubai, people are buying hotel rooms instead of apartments. This is a change we have observed.” With the RTS scheme, people have the flexibility of buying time slots at hotels around the world. “When you use it [the token], you use it based on the number of nights you bought. When you don’t [use it], you get benefits from hotel operation income,” he says. “To say that timeshares are only for resorts and vacation retreats is erroneous. It can be used in any way when the need arises.” But before putting his ideas into action, Lau first needed a Web3 expert. That was when he came to know Yuen Wong, chairman of LABS Group, a Hong Kong-based crowdfunding service company that specialises in real estate market investments using blockchain. “I messaged them and offered Kunang Kunang Tent Resort as one of their pilot projects, and they agreed,” says Lau. There are multiple use cases of blockchain available, but LABS Group proposed utilising NFTs to divide the ownership of the resort over 365 days, hence the creation of 365 NFTs that were up for grabs. Lau later joined LABS Group as its CEO. He also lucked out in convincing Gravity Resorts’ pool of investors to take up the Kunang Kunang NFT project. “The questions [they asked] were more about the dynamics of how to redeem nights, bookings and distribution of profits.” Seeing the keen interest in the Kunang Kunang NFTs, the NoMo SoHo Hotel in New York also debuted the usage of NFTs to reserve rooms. Although the launch of the RTS-NFTs sparked great interest, the experiment came with a slew of challenges and revealed many shortcomings. “We started Kunang Kunang just as a proof of concept in 2021. But as we tested it out only on that one property, the concept wasn’t scalable. And we didn’t have a platform to actually manage the NFTs, bookings and rewards. We had to do everything manually as all we had was a crypto account to manage the NFTs,” Lau recalls. These issues, however, presented the opportunity to develop “a vacation club” using blockchain and expand it to allow other hospitality operators to consider converting a certain portion of their rooms into timeshares. The timeshare marketplace dubbed “Staynex” gives users the benefits of having the income stability of real estate and ability to liquidate their membership anytime. Current holders of Kunang Kunang RTS-NFTs will board Staynex once it is launched and stand to benefit from even more perks, says Lau. “With traditional timeshare, or any form of membership-related business such as a golf or equestrian club, when you buy a membership and want to sell it, you have to go through agents or brokers and the process takes time. “But when a timeshare is an NFT embedded in a blockchain, everyone is immediately interconnected to each other on Web3. So, whenever you want to sell your NFT, all you have to do is list it on the marketplace and determine the price. The interested party clicks on the NFT and the transaction happens almost instantaneously, which cuts down on the intermediary fees. There is no need for agents to put out adverts and constantly check whether the timeshare is sold. This is one of the huge advantages of blockchain,” Lau points out. What makes Staynex unique is that NFT holders will reap rewards from the timeshare units even if the units aren’t utilised. “Traditionally, timeshares were sold for fixed weeks. If you bought week No 25, you could only check into the hotel on that week. The concept evolved over time and hotel chains like Hyatt and Marriott started introducing points that can be redeemed for stays at certain times, rather than fixed weeks,” he says. “With Staynex, we have simplified the process where one NFT represents a one-night stay. So, anytime you want to travel, just log on to the website, click on the NFT that you bought and a calendar will pop up showing the availability of rooms. You can then make your reservation straightaway. “The NFT holder will be in direct contact with the hotel. It’s sort of like co-sharing and co-owning the room but on our platform, it’s referred to as a ‘membership’. “Moreover, users aren’t forced to use up their NFTs. One of the disadvantages of timeshares is the ‘use it or lose it’ issue, where you’re forced to use the property or risk losing your vacation rights for the year.” With Staynex, timeshares are treated like real estate. “If you buy a house to live in, it is technically yours. But if you rent it out, you derive an income. So, if you have 30 nights reserved, you can stay in the hotel for 30 nights. But if you don’t claim it, or only use a portion, the hotel still sells the rooms and you get a share of the operation income just by holding on to the NFT. “We came up with this idea because we wanted to have all the benefits of being able to have the income for the stability of real estate and to be able to liquidate their membership anytime,” Lau reiterates. Rooms are not the only services that can be converted into timeshares. They can also be extended to usage of hotel facilities, which will provide operators the opportunity to maximise their ancillary revenue. “[Hotel owners] can explore other revenue models. For example, if you have a group of digital nomads [staying in the hotel], you could probably temporarily convert part of your hotel into a co-working space, or themed rooms for avid gamers,” he says. Once operational, Staynex will take a 10% cut for every NFT sale transacted on the platform. For every subsale transaction, the property will receive a 2% kickback as management fees. “This is the lowest fee in the timeshare market at the moment,” Lau claims. Set to be launched around the second quarter of 2023, Staynex is being developed by Blocklime Technologies Sdn Bhd together with LABS Group. LABS Group has also partnered with Arsenal FC as the football club’s official hotel and resort membership partner in Asia and Europe. “Apart from access to rooms from a network of resorts and hotels around the world that will be available at discounted prices for a set period, over a number of years, select NFT holders will get exclusive tickets to watch Arsenal FC matches at the Emirates Stadium, enjoy fan meets, memorabilia and a uniquely designed Arsenal NFT,” says Lau. Participating hotels will gain exposure through co-marketing campaigns and the club’s 100 million followers, he adds. “For example, Anantara in Phuket will be listing three nights on Staynex, and we are going to embed it in an NFT. This NFT contains one match ticket to an Arsenal match. Currently, we have about 60 hotels on board,” says Lau. So far, LABS Group has spent more than US$500,000 (RM2.2 million) to build the hotel marketplace ecosystem. Hotel operators are open to the idea of listing on Staynex as tokenised timeshares will help them pay forward for “void nights”, an industry term for unoccupied hotel rooms. According to the Malaysian Association of Hotel Owners, the average occupancy rate of hotels across the country stood at 35% to 40% as at July last year. With the NFT membership programme offered by Staynex, the unoccupied rooms could be “paid forward” instead of remaining vacant, which is especially useful for boutique hotels, says Lau. Although the hype surrounding NFTs is fading, those with utility provide more value to users — a trend that looks set to continue, he believes. However, as the use cases of NFTs are still in their infancy, wide-scale adoption will take some time. “Instead of looking for instant financial gains, it would be better to create a product that is needed and uses blockchain technology and NFTs in a way that can improve people’s lives and businesses,” he says. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play. |
https://theedgemalaysia.com/node/654941 | Frankly Speaking: Riding on lofty tech valuations | English | This article first appeared in The Edge Malaysia Weekly on February 13, 2023 - February 19, 2023 The demerger of SMRT Holdings Bhd and its education arm, Minda Global Bhd, is long overdue. Last week, SMRT announced that it was disposing of its 42% stake in Minda, which has 5,712 students at its four campuses. SMRT will incur a loss of RM65.2 million from the disposal to a company that is owned by major shareholder Tan Sri Palaniappan Ramanathan. At the same time, SMRT also announced the purchase of 36% equity interest in a technology service provider, N’osairis Technoloy Solution Sdn Bhd, for RM72 million. The vendor of the block is Permata Kirana Sdn Bhd, which is majority owned by Datuk Ahmad Shalimi Ahmad Shaffie. At the moment, SMRT already owns 64% of N’osairis, which has been seeing double-digit margins on its profits in the last three years. The company’s services are data collection, maintenance of hardware and software, network surveillance and monitoring of operations. N’osairis’ customers range from companies in the power and electricity industries to those in the banking and finance sector. It also provides services to gaming and entertainment, food and beverage and retail companies. From 8,514 sites in 2019, N’osairis now manages 15,000 sites for its customers, mainly in Malaysia and some in Indonesia. The two deals will result in SMRT becoming a technology company. As for Minda, the proposed sale will make Palan its major shareholder. While the demerger makes sense, as SMRT has always been seen as being bogged down by Minda, what is perplexing is N’osairis’ valuation. The technology company is valued at RM200 million, which translates into a historical price earnings multiple of 10 times. The transaction carries an enterprise value (EV) over earnings before interest, taxes, depreciation and amortisation (Ebitda) at just above nine times, which is the industry average. According to the announcement, the original cost of investment for the 36% stake was only RM6 million in 2020. Also, SMRT already owns 64% of N’osairis. Has N’osairis grown so much within the space of three years? 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/656168 | AirAsia X sees fares above pre-pandemic levels as strong demand lifts profit | English | KUALA LUMPUR (Feb 21): AirAsia X Bhd's (AAX) net profit in the sixth quarter for the financial period Dec 31, 2022 (6QFP2022) rose six-fold quarter-on-quarter to RM153.48 million from RM25.09 million on record average fare, higher load factor and a sharp increase in passengers carried. The group sees fare trends to hover above pre-pandemic levels, albeit with some rationalisation on the back of high international air travel demand. The pandemic impact is "well behind us", its chairman Tunku Datuk Mahmood Fawzy Tunku Muhiyiddin said in a statement, adding that AAX is on a strong growth trajectory to support "significant" pent-up demand for affordable mid-range travel. "The group’s restructuring plan is progressing well as planned as it continues to provide scheduled passenger services where there is greatest demand," he said. In the quarter ended Dec 31 — historically AAX’s strongest quarter — revenue rose three-fold to RM339.3 million from RM100.1 million in 5QFP2022, the airline said. Quarterly earnings per share came in at 37 sen from six sen, it added. The group recorded lower maintenance and overhaul spend in the quarter at RM10.52 million from RM112.2 million in 5QFP22, coupled with lower finance costs of RM6.73 million from RM59.38 million. In the quarter, AAX flew 337,638 passengers, up 324% from 79,557 passengers in 5QFP2022, although much lower than 1.61 million recorded immediately pre-pandemic in 4QCY19. This is in line with the group’s current seat capacity of 427,384 seats at end-2022, versus 1.994 million pre-pandemic. Passenger load factor was recorded at 79% from 73% in 5QFP2022 and 81% in 4QCY2019, while average base far rose to a record RM866, versus RM625, it said. “Ancillary revenue per passengers marked RM196 during the quarter, up 17% compared with the same period in 2019,” it added. Meanwhile, AAX’s 49%-owned Thai AirAsia X (TAAX) recorded RM353.6 million net profit in 6QFP2022, on RM340.95 million foreign exchange (forex) gains and RM261.51 million revenue. “Barring the (forex) gain, TAAX’s core net profit would be RM12.8 million,” it said, However, the group’s share of loss of TAAX, which has not been equity accounted for, amounted to RM517.4 million. Under accounting rules, any profits will only be recognised when its shares of the profits equals the share of losses previously not recognised. Meanwhile, the group said its logistics unit Teleport has delivered RM36 million freight revenue to AAX in the quarter, up 26% with one additional operating aircraft. For the 18-month period ended Dec 31, 2022 (18MFP2022), AAX recorded revenue of RM878.17 million, with 417,195 passengers carried in the period for a healthy load factor of 78%. Net profit for the period stood at RM32.98 billion, mainly arising from the completion of its debt restructuring in 1QCY2022. “For 2023, the company expects to relaunch more of its profitable destinations and looks forward to the return to China with the announcement of the reopening of the country’s border in January 2023, in addition to our planned inaugural flight to Turkey this year,” said AAX chief executive officer Benyamin Ismail. “The company is optimistic of the upward fare trend in the near term as demand for international air travel remains high. While we expect this to somewhat rationalise, we do not foresee the fare trend dropping beyond pre-pandemic levels,” it said. The group expects to have 17 Airbus A330s in its active and operational fleet by end-2024. This compares with 14 planes at end-2022, of which seven are activated and operational. TAAX’s fleet size stood at eight A330s, five of which are activated and operational. Shares of AAX slipped half a sen or 0.74% to close at 67 sen on Tuesday, giving it a market capitalisation of RM2.77 billion. |
https://theedgemalaysia.com/node/645989 | Troubled Caely Holdings posts third straight quarterly loss in 1Q | English | KUALA LUMPUR (Nov 29): Perak-based lingerie and apparel manufacturer Caely Holdings Bhd, whose current and former directors are embroiled in several legal suits, notched its third consecutive quarterly loss, posting a net loss of RM568,000 in its first financial quarter ended Sept 30, 2022 (1QFY2023) compared with a net profit of RM831,000 a year earlier, due to decreased manufacturing sales. In comparison, the group posted a net loss of RM352,000 in the previous quarter ended June 30, 2022. In July, it had changed its financial year end from March 31 to June 30. As a result, it recorded a loss per share of 0.22 sen for 1QFY2023 compared with an earnings per share of 0.32 sen for 1QFY2022. Revenue for 1QFY2023 fell 14.5% to RM13.91 million from RM16.28 million a year earlier, mainly due to lower production arising from labour shortage. In a Bursa Malaysia filing on Tuesday (Nov 29), Caely said the manufacturing sector is expected to improve in line with the higher level of economic activities. "However, moving forward with geopolitical tensions, higher inflation, shortage of labour and rising interest rate may impact the performance of the manufacturing activity," it added. In April, the Malaysian Anti-Corruption Commission had issued a freeze order on all operational bank accounts of Caely and its subsidiaries, as part of its probe into the alleged wrongdoings of a former director. In October, Caely's executive director Francis Leong Seng Wui was reported as saying that the bank accounts remained frozen until now. At noon market break, Caely shares were untraded. It last closed at 30 sen apiece last Friday (Nov 25), bringing a market capitalisation of RM101.71 million. |
https://theedgemalaysia.com/node/654252 | Bintai Kinden, Sarawak Consolidated team up to explore business opportunities | English | KUALA LUMPUR (Feb 7): Bintai Kinden Corp Bhd and Sarawak Consolidated Industries Bhd (SCIB) have entered into a memorandum of understanding (MOU) to establish a joint venture (JV) for exploring business opportunities, securing new projects and sharing profits.
They said the MOU is a preliminary step they are taking as they explore a working relationship and cooperation to combine skills, expertise, capabilities, experience and collectively bid for projects in Malaysia, as well as to set out the principal terms of the arrangement between the parties.
The JV vehicle to be used is SCIB’s wholly owned subsidiary SCIB Infraworks Sdn Bhd, in which SCIB will retain a 51% stake, while Bintai Kinden will subscribe to the remaining 49%. In its bourse filing, SCIB said the MOU will not have any effect on its issued share capital, and is not expected to have any material effect on its earnings, net assets and gearing for the financial year ending June 30, 2023. Similarly, Bintai Kinden said the MOU will not have any effect on its issued share capital but is expected to contribute positively towards Bintai Kinden’s future earnings. “We welcome this strategic alliance with Bintai Kinden, as both parties can leverage each other’s strengths and expertise that add value to any projects we are involved in together,” said SCIB managing director Rosland Othman in a statement.
“SCIB’s manufacturing arm, the leading precast concrete and industrialised building system products manufacturer in East Malaysia, is already supporting our construction arm in projects throughout the country.
“Our focus on small- to mid-sized construction healthcare, educational and utility facilities, as well as rural infrastructure projects, together with investment in technology such as 3D printing and automation are also strengths that we can leverage on for future JV projects,” he said.
SCIB executive director Ku Chong Hong noted that the JV brings together two teams with core expertise and knowledge in construction and engineering that will give an edge to projects undertaken together.
Meanwhile, Bintai Kinden executive director Azri Azerai said that the group looks forward to the partnership and believes that its services could complement the JV.
”Bintai Kinden’s core expertise is (in) mechanical and electrical engineering services, and as multi-disciplined building and industrial service engineers and specialists, we work in all the major market sectors, from commercial buildings to industrial complexes. We design, install and commission systems that include the full range of engineering services which we believe can complement the JV,” said Azri.
Bintai Kinden’s share price was unchanged at nine sen in afternoon trading on Tuesday (Feb 7), giving the group a market capitalisation of RM73.55 million. SCIB was also unchanged at 15 sen, valuing the group at RM87.31 million. |
https://theedgemalaysia.com/node/671540 | US regulators continue crypto crackdown — but here's why the latest charges are different | English | (June 16): The US Securities and Exchange Commission (SEC) sued the cryptocurrency platform Coinbase shortly after launching a lawsuit against the world’s largest cryptocurrency exchange, Binance. This isn’t the first time Binance and Coinbase have caught the SEC’s attention — it’s not even the first time this year. But the latest charges are much more serious, including accusations that the exchanges are operating without the correct registration. Both cases boil down to whether or not cryptocurrency tokens should be classed as “securities”, like stocks, and regulated in the same way. Binance and Coinbase have spoken out in support of regulation. And many crypto firms believe that by taking legal action instead of creating clear rules, the SEC has failed to provide the industry with enough guidance, leading to uncertainty for people and businesses. Since Gary Gensler became chair of the SEC in April 2021, he has regularly testified before Senate committees on the need for more staff to regulate cryptocurrencies, calling the market a “wild west”. On the other hand, he has also said he has no plans to ban cryptocurrencies, while the SEC approved the first Bitcoin ETF in 2021, as well as Coinbase’s stock exchange listing that same year. But now the SEC has filed 13 charges against Binance and its founder Changpeng Zhao, as well as a motion to freeze assets belonging to Binance’s US affiliate (Binance is based in the Cayman Islands). The SEC has also accused both Binance and Coinbase of operating unregistered exchanges, and offering the sale of unregistered securities in the form of crypto tokens. Binance has pledged to vigorously defend itself against the lawsuit, which it said reflected the SEC’s “misguided and conscious refusal” to provide guidance and clarity on regulation to the cryptocurrency industry. Coinbase’s chief legal officer said in a statement to CNBC about the charges that “the SEC’s reliance on an enforcement-only approach in the absence of clear rules for the digital asset industry is hurting America’s economic competitiveness and companies like Coinbase that have a demonstrated commitment to compliance”. He called for legislation that “allows fair rules for the road to be developed transparently and applied equally, not litigation”. These cases are similar to another brought against a crypto company called Ripple Labs by the SEC in December 2020. It argues that XRP, Ripple’s cryptocurrency token, is an unregistered security. Ripple disputes this and expects to spend US$200 million (£156 million) fighting the suit, according to its CEO. He argues such cases are preventing US innovation around the blockchain technology that powers crypto trading. At the heart of this case is the question of whether Ripple’s token satisfies the Howey test, which would deem it a security, just like a stock or a bond, for regulation purposes. The test sets out three key criteria for deciding whether a financial product should come under securities regulations: According to the SEC, the first criterion is easily satisfied with crypto because fiat money or other digital assets are being exchanged. Likewise, the “common enterprise” test is also easily met when trading cryptocurrencies. The third criterion largely turns on whether digital assets come with an “expectation of profit to be derived from the efforts of others”. The most recent SEC lawsuits against Binance and Coinbase go after the lifeblood of the cryptocurrency industry: the exchanges or platforms on which people trade, as opposed to the individual digital assets or tokens. These platforms enable investors to buy and sell cryptocurrencies easily without the need for expert knowledge of how blockchains work. The lawsuits have had an immediate and significant impact on crypto values. Coinbase customers pulled about US$1.28 billion from the exchange after the news broke, according to initial estimates from data firm Nansen. Coinbase’s parent company, Coinbase Global Inc, saw its shares close down US$7.10, or 12.1%, at US$51.61, after falling as much as 20.9% earlier on the day the charges were announced. In the meantime, customers withdrew around US$780 million from Binance and its US affiliate in the 24 hours following the lawsuit, according to Nansen. The Bitcoin market has rallied since, although Binance.US has stopped trading in a number of its cryptocurrencies. These latest lawsuits look like US regulators are drawing a line in the sand. If successful, these cases will limit US investors’ access to assets on these platforms and will also create further market uncertainty for companies and people. Research shows around 17% of people in the US have traded, invested in or used a cryptocurrency. If the crackdown by regulators cuts their access, these people may be able to use centralised exchanges in other countries, decentralised exchanges, or other means to trade cryptocurrencies. But regulators in other major financial markets could follow the SEC’s lead when it comes to crypto rules. The UK’s Financial Conduct Authority recently announced new regulations for cryptocurrency firms operating in the country. This includes measures to ensure investors know the risks involved, that adverts are clear and not misleading, as well as a ban on “refer a friend” bonuses. But these rules will only affect the marketing of cryptocurrencies in the UK, so it’s a relatively small step. Cryptocurrency providers seem to want regulation to provide legitimacy and clear parameters in which to work. Given the borderless nature of cryptocurrencies, regulators need to align internationally or exchanges will simply move to “friendlier” jurisdictions. Global leadership is needed to establish how — and if — cryptocurrencies should be regulated. Without this, regulators like the SEC will struggle to corral the growing global crypto market. |
https://theedgemalaysia.com/node/633623 | APB, CWG, DRBHCOM, MMSV, PMBTECH, YBS, HHHCORP, Olympia, PCCS | English | KUALA LUMPUR (Aug 24): theedgemarkets.com highlighted nine stocks with momentum at Bursa Malaysia's afternoon close on Wednesday (Aug 24). Six stocks indicated negative momentum, while three stocks had positive momentum. The stocks with negative momentum were: APB Resources Bhd — up eight sen at RM1.26 CWG Holdings Bhd — up two sen at 39 sen DRB-Hicom Bhd — up 11 sen at RM1.40 MMS Ventures Bhd — unchanged at 84 sen PMB Technology Bhd — up 18 sen to RM3.48 YBS International Bhd — up 4.5 sen to 70 sen The stocks with positive momentum were: Hiap Huat Holdings Bhd — up one sen to 14.5 sen Olympia Industries Bhd — up one sen to 8.5 sen PCCS Group Bhd — down two sen to 67 sen 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. For more detailed financial information and reports on the above-mentioned stocks, please subscribe to AbsolutelyStocks at www.absolutelystocks.com |
https://theedgemalaysia.com/node/640727 | Bursa soliciting bids for Exchange Square annexe commercialisation | English | KUALA LUMPUR (Oct 20): Bursa Malaysia Bhd has said it is soliciting proposals for the commercialisation of the Exchange Square's annexe at Bukit Kewangan in Kuala Lumpur. In a notice, Bursa said the tender process' closing date is Oct 20 at 5pm. |
https://theedgemalaysia.com/node/675373 | 出师不利 MST Golf折价13% | Mandarin | （吉隆坡20日讯）今日上市大马交易所主板的MST Golf Group Bhd出师不利，以70.5仙迎市，较首次公开募股（IPO）的81仙，折价12.96%。 休市时，该股暂挂78仙，下跌3仙或3.7%，盘中于69仙和79仙之间交易。市值为6亿4028万令吉。 首宗成交量为346万令吉，半天增至5600万4300股，位居热门榜第四。 针对开盘表现欠佳，MST Golf执行董事兼集团总执行长黄联业表示，他理解目前市场情绪疲软。 他在上市仪式后的新闻发布会上说：“此次上市是为了筹集足够的资金开加速扩张。对我们来说，我们只是专注于我们的基本面。我们已经做好准备将公司发展到下一阶段。显然，我们希望（股价表现）能更好，但没关系。” 根据扩大后股本8亿2087万股，该公司上市市值估计为6亿6490万令吉。基于截至去年12月杪2022财政年的每股盈利3仙，本益比为27倍。 The Edge此前报道称，大多券商对这项IPO持乐观态度，并建议投资者认购，因相信在7月20日上市时将出现溢价。 然而，彭博社数据显示，该估值高于马交所消费指数的20.02倍本益比。MST Golf最接近的上市零售竞争对手，如InNature Bhd、巴迪尼控股（Padini Holdings Bhd）和永旺（AEON (M) Bhd）的本益比分别是18.97倍、10.62倍和14.58倍。Mr DIY Group (M) Bhd本益比则最高，为31.02倍。 达证券给予MST Golf 1.20令吉的合理价，并称其2022财年股本回酬率为40%，相比Mr DIY的36.6%。 基于2024财年每股盈利4.4仙的21.9倍本益比，Apex证券则给出97仙的目标价。 （编译：陈慧珊） English version：MST Golf misses fairway on Main Market debut, dips 13% to open at 70.5 sen |
https://theedgemalaysia.com/node/626962 | Brokers Digest: Local Equities - Chin Well Holdings Bhd, Tenaga Nasional Bhd, VS Industry Bhd, Inari Amertron Bhd | English | This article first appeared in Capital, The Edge Malaysia Weekly on July 4, 2022 - July 10, 2022 Target price: RM2 OUTPERFORM PUBLICINVEST RESEARCH (JUNE 28): We like Chin Well for its wide range of fasteners (over 3,000 products) and wire products, which enable the group to offer “one-stop solutions” to its customers. The group’s extensive global sales and distribution network with diversified clientele base, and attractive dividend yield sustained by a healthy balance sheet, makes it stand out. Chin Well’s prospective dividend yield is an attractive 6.4%. The group’s DIY fasteners cater mainly for the European and US markets and carry higher profit margins. Demand is boosted by anti-dumping duties imposed by Europe and the US on fastener products originating from China. This has allowed the group to secure more orders from both these markets. Intermittent lockdowns in China since April 2020 have also pushed customers to countries here in Asean. The global industrial fasteners market size is projected to reach US$147 billion by 2028, growing at a CAGR of 5.9% from US$98.2 billion in 2020, according to Zion Market Research. Long-term growth for the sector is expected to be driven by increased use of industrial fasteners in various industries such as automotive, construction, infrastructure, furniture and machinery. Despite the ongoing global uncertainties, demand for industrial fasteners is anticipated to return to pre-pandemic levels and resume its growth trajectory from FY22 onwards. The group has a strong and extensive global distribution network with a presence in some 30 countries. About 70% of the group’s total revenue in 9MFY22 is derived from the export market, with the balance from the domestic market. For the export market, Europe represents the largest at 41%, followed by North America at 20% and others at 10%. From time to time, the group would explore new business ventures and/or products in the downstream market for better growth and higher margins. Chin Well expanded its product offering from galvanised wire, PVC wire and black annealed wire to downstream products such as poultry mesh, gabion and security fences in 2014. Due to high demand, the group subsequently expanded its production capacity, which is expected to enhance its performance in the long term with higher value-added margins. Target price: RM8.70 HOLD MAYBANK INVESTMENT BANK (JUNE 28): The government has upheld Tenaga’s imbalance cost pass-through (ICPT) mechanism for 2H22 largely through direct compensation, thus alleviating a near-term overhang. Domestic (household) users will continue to enjoy a 2 sen per kWh rebate, while industrial and commercial users will continue to bear a 3.7 sen per kWh surcharge. The government, in turn, will cover subsidies worth RM5.8 billion. Tenaga has separately disclosed that the ICPT mechanism is intact for 2H22. We have previously highlighted the possibility of the government directly compensating Tenaga, given Malaysia’s status as a net energy beneficiary. At the time of writing, the government’s payment details have yet to be disclosed. We estimate RM1.2 billion would be recovered from the 3.7 sen per kWh surcharge on industrial and commercial users. Coupled with the RM5.8 billion of direct subsidies by the government, we estimate Tenaga should recover RM7 billion for 2H22. Nevertheless, elevated coal prices means ICPT concerns would likely resurface again in six months’ time. In our view, it would take a couple more rounds of successful pass-through to permanently convince the market of the integrity of the mechanism. Target price: RM1.49 BUY RHB INVESTMENT BANK (JUNE 28): VS Industry’s 9MFY22 results missed expectations, as its recovery continued to be capped by the crunch in labour and component parts. Its current valuation is attractive — trading below the mean PER — taking into account a 61% earnings growth in FY23F and the resolution of labour standard issues, with the audit findings expected to be announced soon. We also like the electronic manufacturing services sector for its cost-plus model — hence the insulation from the inflationary environment. Net profit of RM135 million for 9MFY22 (-34% year on year) met 66%-67% of our and consensus full-year forecasts. Despite the anticipation of a stronger 4QFY22, the recovery in 9MFY22 was still milder than expected. Post-results, we cut FY22F-FY24F earnings by 4%, 11% and 10% after refreshing our sales assumptions in accordance with management’s guidance. We expect earnings to continue recovering, post the arrival of new foreign labour (intake of 1,400 workers) starting at end-May. This should effectively lift the company’s production capacity and output from 4QFY22. Beyond the near term, 61% earnings growth in FY23 should be underpinned by the normalisation in production and contribution of new production lines. Target price: RM3.65 BUY MIDF RESEARCH (JUNE 29): Inari’s indirect wholly-owned subsidiary, Amertron International Ltd, has entered into a joint venture (JV) with CFTC (Yiwu) Equity Investment Fund Partnership (Ltd Ptd) and CFTC Equity Investment Management (Beijing) Co Ltd to provide outsourced semiconductor assembly and test (Osat) manufacturing and related businesses for the China market under a JV company named Yiwu Semiconductor International Corp. The share subscription in Yiwu is expected to take place progressively starting from 3QCY22 and to be fully completed in 1QCY23. Upon completion of the exercise, Inari will own a 55% stake in Yiwu, with the rest held by CFTC. Inari’s injection into Yiwu, amounting to RM283 million, will be funded from a private placement’s proceeds, completed in July 2021 (27% of the proceeds). We are positive on the development as the JV will help Inari to improve its existing captive business strategy and grow the existing Amertron Technology (Kunshan) Co Ltd operations in the burgeoning China market. Inari could also diversify its product and customer base with additional revenue and earning streams. Upon successful execution, we expect the JV to be earnings accretive to Inari as it allows Inari to partner with a strong local technology fund that could help open up China’s Osat market for the group. 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/673241 | Treasury's Yellen to visit China this week to expand communications | English | WASHINGTON (July 3): US Treasury Secretary Janet Yellen will travel to Beijing from July 6-9 for meetings with senior Chinese officials on a broad range of issues, including US concerns about a new Chinese counterespionage law, a senior Treasury official said on Sunday (July 2). Yellen's long-anticipated trip is part of a push by President Joe Biden to deepen communications between the world's two largest economies, stabilise the relationship and minimise the risks of mistakes when disagreements arise, the official told reporters. It comes just weeks after Secretary of State Antony Blinken visited Beijing and agreed with Chinese President Xi Jinping to stabilise ties and ensure the two countries' intense rivalry does not veer into conflict. China protested loudly when Biden subsequently referred to Xi as a "dictator," but analysts say the remark had little impact on efforts to improve ties. The Treasury chief plans to tell China's new economic team that Washington will continue to defend human rights and its own national security interests via targeted actions against China, but wants to work with Beijing on urgent challenges such as climate change and debt distress faced by many countries. "We seek a healthy economic relationship with China, one that fosters growth and innovation in both countries," the official said. "We do not seek to decouple our economies. A full cessation of trade and investment would be destabilising for both our countries and the global economy." The official, speaking on condition of anonymity, declined to give details on which Chinese officials Yellen would meet in Beijing. A second administration official told Reuters that Yellen was expected to meet the Chinese Vice Premier He Lifeng. Yellen would underscore Washington's determination to strengthen its own competitiveness while responding with allies to what Washington calls "economic coercion" and unfair economic practices by China, the first official said. One clear area of concern involved China's new national security and espionage law, and the potential implications for foreign and US firms, the official added. "We have concerns with the new measure, and how it might apply, that it could expand the scope of what is considered by the authorities in China to be espionage activity," the official said, citing possible spillovers to the broader investment climate and the economic relationship. While no major "breakthroughs" were expected, Treasury officials hope to have constructive conversations and build longer-term channels of communication with China's new economic team, including at the sub-cabinet level, the official said. US officials would also reiterate concerns about human rights abuses against the Uyghur Muslim minority, China's recent move to ban sales of Micron Technology memory chips, and moves by China against foreign due diligence and consulting firms. Yellen would also talk with Chinese officials about a long-awaited US executive action curbing outbound investment in China in certain critical sectors, and "make sure they don't think something is more sweeping than it is or than it's intended to be," the official said. |
https://theedgemalaysia.com/node/619457 | Cepatwawasan 1Q net profit more than doubles to RM15.23 million | English | KUALA LUMPUR (May 11): Sabah-based plantation company Cepatwawasan Group Bhd's net profit for the first quarter ended March 31, 2022 (1QFY22) more than doubled to RM15.23 million from RM5.61 million in the same period last year, on the back of higher quarterly revenue which surged 87.05% to RM94.63 million from RM50.59 million. This was mainly due to higher average selling price of crude palm oil (CPO), palm kernel (PK), fresh fruit bunch (FFB) and empty fruit bunch (EFB) oil by 55%, 87%, 66% and 53% respectively. "Production of CPO, PK and FFB also increased by 47% ,44% and 12% respectively while production of EFB oil reduced by 18%," the oil palm planter said in a bourse filing. Cepatwawasan noted the group's prospects for 2022 are very much dependent on its FFB production and on the prices of palm oil products. It said the conflict in Ukraine has pushed the prices of CPO contracts for March 2022 beyond RM7,000, with prices of palm oil products expected to remain in this range if the conflict unfortunately persists. "As for our FFB production, the severe shortage in manpower affecting production is expected to continue. Thus, urgent government assistance is required to provide an immediate avenue to recruit foreign workers," it said. Cepatwawasan added that the group's performance for FY22 is not expected to be significantly affected by the Covid-19 pandemic. "Nevertheless, the group will continue to monitor and assess the impact of the pandemic. At the same time, we will pursue all available preventive measures to curb the spread of Covid-19," it said. Cepatwawasan's share price settled two sen or 1.9% higher at RM1.07, bringing a market capitalisation of RM340.74 million. |
https://theedgemalaysia.com/node/661730 | Meeting with high profile Chinese investors unprecedented, says Anwar | English | BEIJING (April 1): Prime Minister Datuk Seri Anwar Ibrahim kick-started the final day of his official visit to China with a round-table meeting with high profile Chinese investors. The high powered meeting which lasted an hour was attended by some 50 investors and captains of industry from various sectors including high-level technology, digital economy and agriculture. Anwar described the deep discussion as unprecedented and meaningful. “It was unprecedented. Never in recent years have there been so many top notch captains of industry assembled together. “This is a new beginning for Malaysia. I am excited,” he said. The prime minister is now attending the Malaysia-China Business Forum 2023, where he will deliver a keynote address. He is also expected to witness the signing ceremony of at least 20 memoranda of understanding between Malaysia and China businesses later on Saturday (April 1). Read also:
Anwar: Malaysia secures a record RM170 bil worth of investment commitments from China
Miti generates RM170 bil potential FDI, RM2.44 bil potential exports to China
DRB-Hicom, Geely seal deal for Automotive High-Tech Valley development in Tanjung Malim
HSBC to continue working with govt to attract more FDI from China
China hopes for policy support for investments into Malaysia, says President Xi Jinping
Unity govt to prioritise building stronger ties with China, says Anwar
China visit secures huge returns for Malaysia, says PM |
https://theedgemalaysia.com/node/644321 | 盈获数码科技IPO超额认购21.39倍 | English | （吉隆坡16日讯）定于11月25日在大马交易所创业板上市的盈获数码科技集团（Infomina Bhd），首次公开募股（IPO）超额认购21.39倍。 根据Tricor Investor & Issuing House Services私人有限公司发出的文告，土著部分收到5779份申请，认购2亿3675万股，超额认购14.75倍。 至于公众部分，获5484份申请，涉及4亿3648万股，超额认购28.04倍。 同时，保留给合格董事和雇员的601万股获得全数认购。 “私下配售的1亿2626万股也悉数配售。” 合盈证券是这项IPO的主要顾问、保荐人、包销商和配售代理。 根据每股40仙的发售价，这家资讯科技服务公司的上市市值料为2亿4050万令吉。 （编译：陈慧珊） English version：ACE-bound Infomina’s IPO oversubscribed by 21.39 times |
https://theedgemalaysia.com/node/655579 | NEWS: Audi’s e-tron rolls into town | English | Audi’s fully electric e-tron range is set to electrify the Malaysian market in the very near future |
https://theedgemalaysia.com/node/635259 | Rehda highlights quality, affordability measures at annual IHA interim meeting | English | KUALA LUMPUR (Sept 6): The Real Estate and Housing Developers' Association Malaysia (Rehda) hosted the 2022 International Housing Association (IHA) interim meeting at the Rehda head office in Kelana Jaya from Aug 30 to Sept 2. Rehda president Datuk Tong Nguen Khoong said in a press release: "Our membership in IHA is also part of our efforts to learn about the experiences these countries have gone through, and the measures that have been or currently being undertaken to mitigate them. "For the years since our membership, we have found that the issues we face here in Malaysia are not uncommon with some of the other member countries, and the IHA meetings have proved to be a great source of information and a knowledge hub for us. "Rehda strives to ensure that our members carry out our nation-building role of providing quality, affordable homes to the rakyat (people) effectively and efficiently. We believe that our participation in IHA will help us to achieve just that, and more," he added. Rehda has been a member of IHA since 2018. The annually held meeting was this time attended physically by members from countries including the US, Australia, Japan, Norway, Indonesia, and Malaysia and virtually via Zoom by those from Canada, Brazil, Taiwan, and South Africa. During the four-day interim meeting session, various working group discussions and presentations were held, covering topics such as legislative and regulatory requirements pertaining to industry, social housing, and housing affordability. Delegates who were present also met with director general of the National Housing Department under the Ministry of Housing and Local Government, Datuk Jayaselan Navaratnam, during a short visit on Sept 1 while other site visits included the TRX Residences, Gamuda Cove, and three projects in Setia Alam, namely De Cemara and ByWater Homes by S P Setia Bhd, and Eco Ardence by Eco World Development Group Bhd. IHA secretariat and National Association of Home Builders US chief operating officer Deborah Malone said: "We were honoured with the opportunity to visit a few local developments as well as [the Ministry of Housing and Local Government] following the IHA meeting. "The IHA members were very pleased to have the opportunity to learn of the forward-thinking housing strategy developed by the ministry, particularly the efforts to embrace and plan for a changing housing market which reflects the needs and desires of the population, inclusive of the younger generation, which we find impressive. "The significant efforts underway to provide eco-friendly, consumer-focused, housing communities are astounding and Malaysia is clearly a leader in leveraging best practices to provide high-quality housing. I was in awe with the construction taking place at Gamuda Cove, Tun Razak Exchange, Setia Alam, and Eco Ardence. The Malaysian housing industry undoubtedly has a bright future and we are all fortunate to have the opportunity to learn from our colleagues here." IHA was established 35 years ago to provide a unique housing policy and solutions forum, bringing together housing sector leaders from countries around the world. The IHA's growing membership spans 13 nations from six continents and includes both developed and developing countries. |
https://theedgemalaysia.com/node/658375 | Advancecon’s former deputy CEO goes to court to nullify his removal from office | English | KUALA LUMPUR (March 8): Advancecon Holdings Bhd’s second largest shareholder Lim Swee Chai has filed an originating summons against the company to nullify his removal as director last year. The originating summons also named Advancecon group chief executive officer (CEO) Datuk Phum Ang Kia as a defendant, Advancecon said. Lim holds an 11.46% stake in Advancecon, while Phum is the largest shareholder with 24.01%. The duo incorporated Advancecon Sdn Bhd in 1993 to expand the construction business within the group, according to the company’s website. Lim was previously the deputy group CEO in the company, but was redesignated as non-executive director in May 2022 before he was subsequently removed from office in August. The removal, conducted in an extraordinary general meeting on Aug 9, 2022, follows a notice of requisition dated June 25 issued by Phum. In his originating summons, Lim sought a court declaration that Phum does not hold the minimum 10% stake in Advancecon required to vote at the EGM, and as such has no locus standi to issue the requisition notice. He also sought a court order to declare the EGM and all subsequent actions null and void, and sought general damages to be assessed by the court. “As of the date of this announcement, the litigation is not expected to have any material financial and operational impact to the group,” Advancecon said. “The company is seeking the necessary legal advice to defend on this matter,” it said. Case management by e-review is fixed on March 20 at 9am, it added. Advancecon shares traded unchanged at 25 sen, giving it a market capitalisation of RM123.19 million. In the last year, the counter has declined five sen or 16.67%. |
https://theedgemalaysia.com/node/676625 | Make National Day celebration as lively as election campaign | English | KUALA TERENGGANU (July 30): The state elections to be held in six states next month, which is National Month, will be a clash between celebrating democracy and the country’s freedom. According to experts, it is important to have a balanced participation or involvement by all parties in order to showcase the love for the country and the spirit of patriotism during National Month, despite the six states being preoccupied with election matters. A senior lecturer at the Faculty of General Studies and Advanced Education, Universiti Sultan Zainal Abidin (UniSZA), Associate Prof Dr Abdullah Ibrahim believes that political parties should show the same enthusiasm in displaying the Malaysian flag, Jalur Gemilang, to fuel the National Day celebration as they do in putting up their own posters and flags. “Indonesia, our neighbouring country, is also conducting campaigns for their upcoming 2024 general election. It would be beneficial for our candidates to follow their example and end their speeches with a unifying goal of making our national flag, Jalur Gemilang, proud. “Regardless of their political party, our candidates should encourage their supporters to fly and wave the flag, which symbolises our country's prosperity and sovereignty,” he said. Meanwhile, political analyst Prof Dr Sivamurugan Pandian, in recalling the country’s history, noted that Malaysia's independence in 1957 was the outcome of negotiations between political parties that were formed through the electoral system. “The presence of leadership, political parties, and freedom fighters who struggled for independence was a direct result of the mass political movement. We should definitely celebrate this aspect of politics and independence because they complement each other. “Coincidentally the six state elections fall in August causing the political temperature to boil even more," he added. Sivamurugan, who is also a member of the National Unity Advisory Council, said the "habit" of Malaysians celebrating the National Month only in August is inappropriate, as the content for the National Day celebration should be ongoing. The Universiti Sains Malaysia (USM) lecturer concluded that the literacy level of Malaysians in appreciating the country’s independence is still "weak". Sivamurugan is of the view that candidates running for election should prioritise promoting good values and a sense of patriotism during their campaign instead of resorting to attacking their opponents' character. “They can play politics, but don't ignore issues of statehood. They should be honourable figures who display courtesy, and politeness, as well as possess a high level of common sense, good manners, and sound judgment. "Apart from campaigning, they (candidates) should educate and encourage people to protect the country's sovereignty, not just play politics,” he added. This year’s National Day 2023 celebration on Aug 31, with the theme of 'Tekad Perpaduan Penuhi Harapan’ (Unity Determination, Fulfilling Hope), will be held in Putrajaya. The Election Commission (EC) has set polling for the elections in the six states, namely Terengganu, Kelantan, Kedah, Selangor, Penang and Negeri Sembilan, as well as the Kuala Terengganu parliamentary by-election, to be held simultaneously on Aug 12. The Kuala Terengganu by-election would be held following the decision of the Terengganu Election Court on last June 27 in annulling the victory of PAS’ Datuk Ahmad Amzad Hashim in the 15th general election (GE15). The nomination was held on Saturday (July 29), while early voting is on Aug 8. The campaigning period is 14 days starting from Saturday and will end at 11.59pm on Aug 11.
Visit this link for everything about the State Polls 2023 |
https://theedgemalaysia.com/node/632790 | Meta leads Norway's wealth fund losses | English | KUALA LUMPUR (Aug 18): Norway's sovereign wealth fund, the world's largest, said Meta Platforms Inc led the top 10 negative single contributions to absolute returns among its investments. The fund on Wednesday (Aug 17) said it made a loss of 1.68 trillion Norwegian kroner (US$174 billion or RM773.48 billion) in the first half of 2022, as stocks and bonds were hit by global recession fears and rampant price inflation. The fund said it saw the weakest return for its technology-sector investments. The fund lost some 414 billion kroner from technology, and 254 billion kroner from consumer discretionary. Two sectors earned positive income for the fund, namely telecommunications with one billion kroner, and energy with 65 billion kroner. Reuters reported that the US$1.3 trillion fund's return on investment was a negative 14.4% for the January to June period, although that was 1.14 percentage points ahead of the return on its benchmark index. "The market has been characterised by rising interest rates, high inflation, and war in Europe," said chief executive Nicolai Tangen of Norges Bank Investment Management, which operates the fund, in a statement. "Technology stocks have done particularly poorly, with a return of -28%," he said. Looking into its detailed report, behind Meta were Amazon.com Inc, Apple Inc, Microsoft Corp, Nvidia Corp, Alphabet Inc, ASML Holding NV, Tesla Inc, Vonovia SE and Netflix Inc. |
https://theedgemalaysia.com/node/659018 | Global race on to attract aerospace investments as aviation sector takes off | English | This article first appeared in The Edge Malaysia Weekly on March 13, 2023 - March 19, 2023 A race is on between countries and regions to attract investments across the aerospace sector and, overall, most industry players are encouraged by the support from the Malaysian government in offering incentives and tax breaks on that front. The recently retabled Budget 2023 saw tax incentives extended to manufacturers in the electrical and electronics and aerospace sectors that relocate to Malaysia, with their C-suite executives entitled to a lower income tax rate of 15% until 2024. The government also plans to extend the income tax incentives and investment tax allowances for the aerospace sector until Dec 31, 2025, to encourage the expansion of existing companies and attract new investments. Datuk Abdul Rashid Musa, president of the aerospace division at UMW Corp Sdn Bhd, deems the measures positive for the development of the local aerospace industry. They are also in alignment with the country’s plans to establish a strong aerospace industry as envisaged by the National Aerospace Blueprint 2030, to make Malaysia the hub for Asean, he tells The Edge. “Generally, the investment required for the aerospace industry is substantial and the return on investment may take a longer time. Thus, any support or assistance from the government is invaluable and will certainly encourage more companies to venture into the aerospace industry.” “The aerospace original equipment manufacturers (OEMs) are constantly looking at best-cost country sourcing to manage their costs. The incentives provided by the government, together with the skilled workforce at a lower cost compared with most parts of the world, provide an excellent opportunity for the OEMs to source for competitively priced aerospace components from Malaysia.” Abdul Rashid cites UMW Aerospace Sdn Bhd, a wholly-owned subsidiary of UMW Holdings Bhd, which has made a “substantial” investment to set up a high-value manufacturing park in Serendah, Selangor. “Today, we are the single-source supplier of fan cases for Rolls-Royce’s Trent 1000 and Trent 7000 aircraft engines. Without the support of the government, it would not have been possible to set up the facility.” He says the aviation industry was affected by the pandemic in the last few years when international borders were closed and air travel came to a halt. As a result, the aerospace industry was affected by the lower demand for aircraft. “The reopening of international borders and the increase in air travel, which is expected to reach pre-pandemic levels by this year, augur well for the aviation industry. Consequently, this is expected to lead to additional orders for planes from the airlines and, together with the clearing of the backlog orders, improve the demand for fan cases,” says Abdul Rashid. “Having established ourselves in the aerospace industry, we are looking for opportunities to expand our business operations as well as our capabilities, mainly in the area of precision machining of aerospace components. So, the incentives provided in Budget 2023 will certainly play an important role in supporting our aspiration to expand our capability in the aerospace industry.” While aerospace is still a relatively new industry for the UMW Group, Abdul Rashid says the company is ramping up production of fan cases with the improving demand for aircraft and is confident of registering strong growth in 2023. “At the same time, we are looking for opportunities to expand our business operations as well as our capabilities through product and customer diversification. We are confident that the aerospace segment will grow to become a major contributor to UMW Group in the future.” European aircraft manufacturer Airbus forecasts global demand for 39,490 new passenger and freighter aircraft over the next 20 years, of which 80%, or 31,620, are single-aisle and 20%, or 7,870, are wide-body. Of the total aircraft, 23%, or 9,160, will come from Asia-Pacific. An Airbus spokesperson says: “We welcome all measures being taken to support the aerospace industry in Malaysia. We remain fully committed to building further on our extensive presence in the country and to working with our customers, partners and government stakeholders.” Malaysia Aerospace Industry Association (MAIA) president Naguib Mohd Nor says incentives such as reduced tax rates and investment tax allowances are important for aerospace companies coming out of Covid-19 and expanding fast, as travel has recovered faster than expected. “Having a good tax regime helps us [Malaysia aerospace companies] to maintain some competitiveness. Because the aviation industry is recovering fast, there is a lot of work that is coming to Malaysia as far as aerospace is concerned.” Naguib notes that Malaysia has made huge strides in developing its aerospace industry. “With nearly 50 years of history in aerospace manufacturing and maintenance, we have a deep capability in enabling new industries such as drones and space. Sometimes, we are not aware of it.” From a manufacturing perspective, Naguib says Malaysia remains a cost-effective base for high-value aerospace parts manufacturing. “Our aerospace industry doesn’t really have foreign workers. Malaysians are highly skilled and not as expensive to employ compared with our closest competitor, Singapore. Take GE Engine Services Malaysia, for example. They are the world leader in providing aircraft engines, systems and avionics and they have a maintenance, repair and overhaul (MRO) facility at Sultan Abdul Aziz Shah Airport in Subang, Selangor [Subang Airport],” he says. He notes, however, that like many other sectors, talent supply remains the biggest challenge for the aerospace industry. “You see the same problem happening in the semiconductor industry. Our problem with our talent supply is that the technical and vocational education training (TVET) ecosystem in Malaysia is still not mature enough. “So, what happens is that we are still training inside companies. If a new company comes in and sets up here, they will poach from the existing companies, resulting in talent instability. This is especially so post-pandemic. “We really need a world-class TVET infrastructure to tap all the opportunities that are coming to our doorstep from the aircraft, drone and space industries. In fact, we are also losing our talent to the Middle East.” Abdul Rashid concurs, saying that while the proposed incentives in the revised Budget 2023 are positive to attract foreign investments into the country and help spur growth in Malaysia Airports Holdings Bhd’s (MAHB) KLIA Aeropolis development, there are other important factors to consider as well. “This includes the availability of a skilled workforce as well as excellent infrastructure and logistical services to drive the growth of the aerospace industry in Malaysia.” (The KLIA Aeropolis development covers the federal land surrounding Kuala Lumpur International Airport (KLIA) in Sepang and Subang Airport.) Meanwhile, Naguib says core policies such as the aerospace blueprint and the aerospace focus as set under the 12th Malaysia Plan (2021 to 2025) have so far been consistent. “While you see some variants with the proposed implementation of aerospace hubs in Kedah, for example, that are based on the government of the day, overall, government policies have been generally supporting the growth of main hubs like Subang Airport. Anthony Loke, in his second stint as minister of transport, is making more affirmative decisions surrounding the redevelopment of Subang Airport, which is beneficial [to aerospace players] in Subang. “Aerotropolis is a concept where you build an ecosystem around an airport. It typically offers commercial air services, technology, business and aviation support services such as MRO. Subang is a city airport with international capacity, while KLIA is our international airport. They are complementary and both have their aerotropolis credentials. In Europe, there are many of these city aerotropolis and international main hub aerotropolis. “When you start going out to other airports in the country, the main airports are like Penang and Johor Baru. The rest are very much hubbing airports for local travel or travel to specific regional points. It is known that the major airports in Malaysia have to cross-subsidise some of the smaller ones. Thus, setting up another large international airport like the one in Kulim, Kedah, requires a lot more consideration,” he says. The Kedah government is urging the federal government to reconsider the Kulim International Airport project, which is expected to cost RM7 billion and also entails the development of an aerotropolis. Critics have argued that there is no need for such a mega project because the new airport would merely cannibalise traffic from Penang Airport. In November last year, the development of KLIA Aeropolis in Sepang received a big boost when the government agreed to extend MAHB’s wholly-owned subsidiary KLIA Aeropolis Sdn Bhd’s land leases of 41 lots totalling 8,537.31 acres there to 99 years. Naguib says a long tenure is important to attract foreign investment. “Before, when the tenure was too short, it was difficult for companies to build business plans and get financing. There are a lot of infrastructure and technology costs involved.” 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/657910 | Banking sector's 4Q earnings commendable, steeper costs to remain a bane, say analysts | English | KUALA LUMPUR (March 6): Banking-sector analysts said the latest quarterly earnings reporting for the October to December quarter (4Q2022) came in mostly within expectations. Hong Leong Investment Bank Research analyst Chan Jit Hoong said the banking sector had delivered commendable quarterly results for 4Q2022, where the sector saw profit up 5% quarter-on-quarter due to lower loan provision. On a yearly basis, the sector’s earnings growth was even more impressive, growing at a rate of 20%, underpinned by smaller impaired loan allowances and positive Jaws (banking jargon for income growth exceeding expense growth), Chan said in a research note on Monday (March 6). “There were little surprises this reporting season, where six out of eight banks under our coverage posted profit within expectations (Affin Bank Bhd, Alliance Bank Malaysia Bhd, BIMB [Bank Islam Malaysia Bhd), CIMB Group Holdings Bhd, Maybank [Malayan Banking Bhd], and RHB Bank Bhd), and [there's] only two beats — AMMB [Holdings Bhd which] booked in stronger-than-anticipated total income growth, while Public Bank Bhd saw lower-than-expected loan loss provision," he commented. Moving forward, Chan is projecting the sector profit to grow at a two-year compound annual growth rate of 8.6% from 2022 to 2024. Nonetheless, Chan forecast banks may now have to grapple with possibly steeper cost of funds, smaller non-interest income, and loan growth this year. He expects sequential net interest margins (NIMs) to shrink given the repricing of matured deposits, current account saving accounts being utilised and substituted to fixed deposits (FDs), along with still stiff price competition for FDs. Also, banks’ loan growth would moderate due to a softer domestic macro environment, he explained. “Besides, the GIL (gross impaired loan) ratio is likely to climb, but we are not overly concerned, as we believe banks are better equipped versus prior slumps. The large pre-emptive provision built up in FY2020-22 (financial years 2020 to 2022) to combat Covid-19 pandemic woes and latency in credit loss from OPR (overnight policy rate) hikes act as robust buffer to cushion for any short-term asset quality weakness,” Chan added. CGS-CIMB also sees the banking sector posting slower loan growth this year, with a growth rate of between 4% to 5%, compared with 5.7% in 2022, following the industry’s loan growth, which eased further from 5.7% year-on-year (y-o-y) at end-December 2022 to 4.9% y-o-y at end-January 2023 amid weak growth in both household and business loans. Also, weak leading loan indicators such as loan applications in January this year fell 13.2% y-o-y, and approvals by 6.1% y-o-y, cementing the research house’s weaker loan growth forecast for the sector. For banks’ GIL ratio, CGS-CIMB projected it to rise to 2% at end-December 2023, from 1.72% at end-December 2022, given the potential increase in credit risks from the economic slowdown. In addition, CGS-CIMB warned that heightened inflation and interest rate hikes could be detrimental to banks’ loan growth and asset quality. "We note a pickup in deposit competition within the banking industry, with most banks running campaigns to offer attractive rates for FDs since last year. Any protracted deposit competition will lead to further increase in banks’ cost of funds, and dilute the positive impact of the hikes in the OPR," the research house added. Key potential downside risks to the sector include weaker-than-expected economic growth in 2023 (especially with potential risks from possible recessions in the US and Europe) as this could cause banks to register higher-than-expected loan loss provisioning and softer loan growth, CGS-CIMB further added. On a positive note, HLIB’s Chan said the banking sector has a balanced risk-reward profile as the undemanding valuation and decent dividend yield of 5% are solaces that would provide downside support to share prices. Chan has "buy" calls on four banks, namely RHB Bank (with a target price of RM6.60) , AMMB (RM4.35), Alliance Bank (RM4.15) and BIMB (RM3). “The quartet share a common trait of inexpensive valuations, and recent price weakness turned their risk-reward profile to become more favourable than the other banks we follow,” Chan said. For the banking sector as a whole, Chan maintained his “neutral” call. CGS-CIMB, which concurred that the banking sector’s dividend yield is attractive at 5.1% in 2023, said the sector picks are RHB Bank, Hong Leong Bank Bhd nd Public Bank. Overall, CGS-CIMB reaffirmed its “overweight” call on banks, predicated on the potential rerating catalysts of an expected recovery in non-interest income growth in 2023 and potential write-backs of management overlay (which would reduce banks’ loan loss provisioning). Most banks' share prices were traded lower on Monday. RHB Bank closed seven sen or 1.22% down at RM5.65, while Public Bank dropped four sen or 0.97% to RM4.10. Maybank fell two sen or 0.23% to RM8.69, and AMMB was also down two sen or 0.5% at RM3.95. Similarly, Hong Leong Financial Group Bhd declined two sen or 0.11% to RM18.34, and Hong Leong Bank fell two sen or 0.1% to RM20.56. BIMB was down one sen or 0.45% to RM2.20 while CIMB was unchanged at RM5.59 and Alliance Bank rose four sen or 1.16% to RM3.50. |
https://theedgemalaysia.com/node/647068 | Frankly Speaking: Grim insights into digital banks | English | This article first appeared in The Edge Malaysia Weekly on July 4, 2022 - July 10, 2022 Developments in Australia clearly illustrate the challenges that digital banks face. Volt Bank became the latest digital bank in Australia to collapse, leaving only one of the four neobanks remaining. Volt Bank, which is an online-only bank, closed shop after it failed to get additional funding from investors to help sustain its business. Fortunately, the bank has enough capital to return deposits to customers and loans are being taken over by other banks. In 2018, Australia issued four digital banking licences to allow customers an alternative to the conventional banks. Apart from Volt Bank, the others were Xinja, 86 400 and Judo Bank. Xinja folded because of inadequate capital raising, while 86 400 was taken over by one of the four conventional banks. The only digital bank left in Australia — after four years of licences being issued — is Judo Bank, which is listed. In Malaysia, Bank Negara Malaysia issued five digital banking licences in April this year. The five were chosen from 29 applications, which included state governments and heavyweights among listed companies such as Genting Group. Out of the five, three of the successful consortiums are majority owned by Malaysian companies, while two are foreign controlled. Following the issuance of the licence, the banks will undergo a period of operational readiness that would be validated by Bank Negara. The process can take between 12 months and up to two years, which is probably the right time for the digital banks to hit the market. However, in banking, a key criterion is capital. Without capital, there can be no lending which would put banks out of business. The advantage of digital banks is that they start with a clean slate and should be able to keep costs low. But can they come up with a unique proposition to draw capital for them to sustain the business and challenge the incumbents? 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/647161 | Frankly Speaking: Persistence finally pays off in CCB takeover | English | This article first appeared in The Edge Malaysia Weekly on August 8, 2022 - August 14, 2022 Singapore-listed Jardine Cycle & Carriage Ltd (JCCL) has finally succeeded in the takeover of Cycle & Carriage Bintang Bhd (CCB). To some extent, the persistence of Datuk David Goh of Road Asia Sdn Bhd in seeking a higher price from the major shareholders of CCB has paid off. Goh is the second-largest shareholder in the distributor of Mercedes Benz with a 1.47% stake. JCCL has been trying to take CCB private since November 2019 but was unsuccessful. In March last year, CCB offered RM2.40 per share. Goh, through privately held Jingshi Holding (M) Sdn Bhd and parties friendly to him, rejected the offer, thwarting JCCL’s attempt. It was JCCL’s second attempt after the first offer in 2019. Since the failed offer last year, JCCL had been accumulating its stake in CCB and attained a 89.9% stake before it launched another offer of RM2.70 per share last month. The price is significantly higher than the first offer of RM2.20 per share that JCCL made in 2019. In the latest announcement, JCCL stated that it had received acceptance that increased its stake in CCB to 91%. As such, it would be taking steps to de-list CCB from Bursa Malaysia, as it does not fulfil the public shareholding spread. In addition, JCCL also stated that it had valid acceptances of 90% of the shares it does not own in CCB. This would pave the way for JCCL to invoke the compulsory acquisition clause in the takeover code. JCCL is wasting no time in invoking the compulsory acquisition clause. The Singapore-based company wants to make the compulsory offer about a month from now. JCCL would not have received acceptance of 90% of the shares it does not own in CCB had Goh and parties friendly to him rejected the latest offer. Then again, Goh probably had little choice because he would have been left holding unlisted CCB shares if he did not accept the RM2.70 offer. 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/666225 | Reservoir's unit inks MOU with Nasdaq-listed VCIG to explore opportunities in clean energy industry | English | KUALA LUMPUR (May 9): Reservoir Link Energy Bhd is keen on exploring potential collaboration in the clean energy industry with Nasdaq-listed company VCI Global Ltd (VCIG). In a filing with Bursa Malaysia on Tuesday (May 9), the oil and gas services player said its 51%-owned subsidiary Founder Energy Sdn Bhd (FESB) has entered into a Memorandum of Understanding (MOU) with VCIG on the matter. “The parties are keen to explore and venture into new market opportunities in the clean energy industry by using their expertise and resources to procure, manage and develop clean energy projects, with their focus in the region of Southeast Asia. “The parties wish to collaborate with each other and cooperate in areas which are mutually beneficial and which may add value, through the sharing of knowledge and expertise, the leveraging of their respective strengths, the opening up of new market opportunities, and the tendering for new contracts or awards,” the filing showed. The duration of the MOU is for 24 months effective from May 9, 2023 and will expire on May 8, 2025, subject to extension by mutual written agreement of the parties. Reservoir said the MOU is not expected to have any material effect on the group's earnings for the financial year ending June 30, 2023, but is expected to contribute positively to the group’s earnings for subsequent financial years should the group enter into any definitive agreement arising from the MOU. VCIG is a consulting group with key advisory practices in the areas of business and technology. The group provides business and boardroom strategy services, investor relation services, and technology consultancy services. Its clients range from small-to-medium enterprises and government-linked agencies to publicly traded companies across a broad array of industries. It operates solely in Malaysia, with clients predominantly from Malaysia, but also serves some clients from China, Singapore, and the US. Meanwhile, Reservoir is an energy-related services provider focusing on the oil and gas and renewable energy industry. Shares in Reservoir Link closed unchanged at 32 sen, translating into a market value of RM93 million. |
https://theedgemalaysia.com/node/647503 | SC issues new guidelines on role of investment advisory | English | KUALA LUMPUR (Dec 8): The Securities Commission Malaysia (SC) has released new guidelines to strengthen the role of investment analyst firms and their analysts as a reliable source of investment information for the public. The new guidelines will take effect on June 8 next year, SC said in a statement on Thursday (Dec 8). The capital market’s regulator also issued a technical note to provide details on the licensing requirements for those providing digital investment advice, saying that this is in line with the SC’s agenda to create a digitally inclusive ecosystem for the capital market. “Investment advisers play an important role in the capital market by providing valuable insight and information for investors to assess investment opportunities. That is why the SC expects them to exercise reasonable care and diligence in providing research-related services,” said SC chairman Datuk Seri Dr Awang Adek Hussin. “The SC is also cognisant of the shift in the investment advisory landscape. The emergence of digital advisory models that combine technology and investment expertise is expected to further strengthen the provision of accessible and quality advice to investors,” he added. The new guidelines outline the core principles and minimum standards that must be observed by holders of a Capital Markets Service License (CMSL) and a Capital Markets Service Representative's License (CMSRL) who issue or promulgate research reports in carrying out the regulated activity of providing investment advice. SC said the technical note is meant to enable digital advisory business models, by facilitating applicants seeking to carry out the business of investment advice through the use of automated, algorithm-based tools to meet the different needs of investors. Under the technical note, parties proposing to undertake digital investment advisory services and requiring dispensation or waiver of certain licensing requirements, which include minimum financial requirements and competency thresholds, can submit an application for waiver to SC. In considering such an application, the applicants are required to demonstrate how their digital innovations can benefit their targeted investors while possessing the requisite technological capabilities. Both the IA Guidelines and the Technical Note are available on the SC website at https://www.sc.com.my/regulation/guidelines/investment-advisers. |
https://theedgemalaysia.com/node/668701 | Market optimism over debt deal may pave way for Monday selloff | English | (May 26): Markets are largely in the green on Friday but strategists warn there’s still a prospect of US debt-ceiling negotiations breaking down over the weekend, or result in draconian spending cuts that crimp global economic growth. Assets in Asia are especially vulnerable, as they will be the first to react to any agreement when they open on Monday, as the US will be shut that day for a holiday. Republican and White House negotiators are making progress toward a deal to raise the debt limit but details remain tentative and they are yet to agree on the size of a cap for federal spending, according to people familiar with the talks. Spending cuts required to get the Republican side to agree on a deal could cost as many as 570,000 jobs, a Bloomberg Economics model shows. “The outcome of any resolution will probably amount to a fiscal contraction that’s not entirely priced in by the market,” said Aninda Mitra, head of Asia macro and investment strategy at BNY Mellon Investment Management in Singapore. “When you’re trying to rebuild cash balances like crazy, that build-up sucks out liquidity at a time when the markets have kind of whistled past the graveyard a little bit.” Shares in Asia dropped for three days through Thursday, amid growing concern over a possible US default, and after Fitch Ratings said it may cut its AAA rating for the world’s biggest economy, to reflect the increased partisanship that’s preventing a deal. Regional equities ticked higher on Friday, but that was driven more by a rebound in technology shares than optimism over a potential agreement. The bulk of regional markets are still down for the week amid waning risk appetite, led by emerging markets such as China, the Philippines and Malaysia. Materials and consumer discretionary shares have also been among the biggest losers. “We’ve never been in a situation of a default — it’s opening a little bit of Pandora’s box,” said Herald van der Linde, head of Asia Pacific equity strategy at HSBC Holdings Plc in Hong Kong. “I can also see that funds say we just don’t want to be in emerging markets and definitely not in smaller ones.” Investors may want to stick to more defensive positions, while there remains uncertainty over where the expected spending cuts will be made, according to Invesco Asset Management. “It makes sense to own strong cash flow, low volatility, large-cap defensive stocks, such as in healthcare and consumer staples,” said David Chao, global market strategist for Asia Pacific at the money manager in Singapore. Another potential refuge from a selloff may be in some of Asia’s bonds. The region’s investment-grade dollar debt spreads are at their tightest since the middle of March, while an index of emerging Asia bonds has outperformed a similar gauge of Treasuries this month, according to Bloomberg indexes. If there’s a further selloff triggered by a debt deal, India and Korea sovereign debt will probably outperform, said Ray Sharma-Ong, investment director of multi asset solutions at abrdn plc in Singapore. “Both India and Korea sovereign bonds are resilient from US Treasury moves, and will benefit from potential bond-index inclusions,” he said, referring to ongoing reviews for those two Asian markets. There’s no certainty that any debt deal will be the end of the issue, especially as bond markets are potentially underpricing the risks related to the final agreement, according to Owen Gallimore, head of Asia-Pacific credit analysis at Deutsche Bank AG in Singapore. “The resolution can quickly turn into a selloff,” he said. “Bearish calls this year of credit-market woe have not played out yet, and the market in Asia is trading tight spreads into this situation, so the risk-reward isn’t good.” |
https://theedgemalaysia.com/node/608410 | 分析员：手套商的收益将持续低于预期 | Mandarin | （吉隆坡22日讯）将于本月公布2021年10月至12月季度业绩的速柏玛（Supermax Corp Bhd）、Careplus Group Bhd和来百利（Rubberex Corp (M) Bhd）等手套制造商，将难逃与同行相同的命运，即由于新业者的供应增加，导致平均售价和销售下降，最新季度收益因而走低。 尽管分析员在过去几个季度连番修订预测，但贺特佳（Hartalega Holdings Bhd）和高产柅品工业（Kossan Rubber Industries Bhd）2021年第四季收益还是低于预期。 如今所有目光都聚焦在速柏玛，我国4大手套公司中市值最小的，该集团即将公布截至去年12月杪2022财政年第二季的业绩。其在2022财年首季的每股盈利为24.6仙，占2022财年每股盈利预测40.3仙的61%。 由于劳动指控及遭加拿大政府终止手套供应合约，一些分析员上个月已经调整对速柏玛的盈利预测。 银河-联昌证券于1月20日的报告中指出：“我们对此（加拿大合约取消）持负面态度，因认为加拿大政府的订单占速柏玛对该国销售的很大一部分（2021财年总营业额的9%）。” 该研究机构将该股评级下修至“守住”，目标价1令吉，并称估值并没有计入持续的环境、社会与治理问题（外劳方面），且认为2022至2024财年的获利跌幅甚至超过预期。 MIDF研究在1月19日的报告写道，速柏玛于1月3日推出外劳管理政策，以迅速符合国际劳工组织（ILO）的劳动标准后，相信速柏玛可能会比竞争对手更快地克服劳动衍生合约终止的问题。 该机构预计，如果不尽快解决这一问题，将对该集团未来的扩张计划和收益产生重大影响。该机构给予速柏玛“中和”评级，目标价1.39令吉。 投资者也密切关注丁腈手套的原料价格。在东南亚，丁二烯现货价格自年初以来回升，收复2021年第三季的失地。 上周，高产柅品工业截至12月杪2022财年的每股盈利预测遭调降27%至14.3仙，因2021财年的每股盈利较预期低5.82%。 贺特佳截至去年3月杪2021财年的每股盈利亦低于预测5.67%，因此2022财年的预测遭下调6.86%至96.2仙。 与此同时，顶级手套（Top Glove Corp Bhd）截至去年11月杪2022财政年首季每股盈利为2.32仙，占2022财年每股盈利预测11仙的21.09%。 从2021年11月30日的最新高点来看，贺特佳、顶级手套、高产柅品工业和速柏玛这4家手套公司的股价分别下跌19至35.4%。速柏玛年内跌22.45%至周一（21日）的1.14令吉，市值报31亿令吉。 这是因为投资者忽视Omicron变种病毒爆发对手套需求的影响，同时平均售价下降速度快于预期，加上在疫情期间加速扩张，导致中期存在供应过剩风险。 尽管仍高于疫情前的水平，但大型和小型手套公司最新季度收益均恢复到全球疫情爆发之初。 贺特佳2021财年末季净利为2亿5910万令吉，较上财年同期的2亿1970万令吉，增长17.9%；营业额从9亿2010万令吉，仅增8.68%至10亿令吉。 高产柅品工业2021财年末季净利报2亿1870万令吉，较同期的1亿3110万令吉高出66.82%；营业额为9亿2460万令吉，比一年前的7亿170万令吉，扬升31.76%，而小型的Comfort Gloves Bhd最新季度净利回到疫情前水平，报1040万令吉，营业额为1亿2430万令吉。 （编译：陈慧珊） English version：Glove makers' earnings miss streak to continue, say analysts |
https://theedgemalaysia.com/node/659590 | 区域股市走高 带动隆综指升1.47% | Mandarin | （吉隆坡17日讯）分析员表示，随着华尔街对美国银行业危机的乐观情绪增强，提振马股及区域股市趋高。 休市时，富时隆综指上涨20.39点或1.47%，至1411.99点，周四收报1391.60点。 富时隆综指今早高开5.68点，报1397.28点，早盘游走于1397.23点至1412.26点之间。 上升股达578只，下跌股仅221只，另有351只无起落，1115只无交易及27只暂停交易。 马股总成交量为21亿4000万股，总值13亿2000万令吉。 马六甲证券私人有限公司表示，尽管本地和区域股市乐观，但华尔街反弹可能是短暂的，因为投资者可能会谨慎交易，并密切关注美联储下周的利率决定。 “至于本地股市，我们认为在隔夜华尔街强劲反弹之后，尤其是纳斯达克综合指数上涨2.48%，科技板块将获得增长势头。” “除此之外，医疗保健行业可能会大放异彩，因为投资者预计手套平均售价会增加，这可能会缓冲成本上涨。我们继续看好消费必需品、产业信托及公用事业等行业。” 重量级股方面，马银行（Malayan Banking Bhd）涨15仙，至8.41令吉，大众银行（Public Bank Bhd）升6仙，报3.99令吉，国油化学（Petronas Chemicals Group Bhd）起4仙，挂7.03令吉，联昌国际集团（CIMB Group Holdings Bhd）扬10仙，至5.25令吉，以及国家能源（Tenaga Nasional Bhd）弹升20仙，报9.55令吉。 至于热门股，顶级手套（Top Glove Corp Bhd）增2.5仙，报86仙，Capital A Bhd涨7仙，至84.5仙，VinVest Capital Holdings Bhd起0.5仙，挂22.5仙，SMRT控股（SMRT Holdings Bhd）跌4.5仙，至52仙，以及丰成综合（Hong Seng Consolidated Bhd）挫0.5仙，报14.5仙。 （编译：魏素雯） English version：Bursa ends morning session higher, KLCI up 1.47% |
https://theedgemalaysia.com/node/678454 | Ahmad Amzad retains Kuala Terengganu Parliamentary seat | English | KUALA TERENGGANU (Aug 12): PAS central working committee member Datuk Ahmad Amzad Hashim retained his victory in the Kuala Terengganu Parliamentary by-election on Saturday. Ahmad Amzad defeated Pakatan Harapan (PH) candidate Azan Ismail with a 47,266 majority, obtaining 68,369 votes while Azan garnered 21,103 votes. The Kuala Terengganu by-election was held following the decision of the Terengganu Election Court on June 27 in nullifying the victory of Ahmad Amzad, who is also former Science, Technology and Innovation Deputy Minister during the 15th General Election after elements of corruption during the campaign period were found. The by-election was held simultaneously with the state elections involving Selangor, Negeri Sembilan, Penang Kedah, Kelantan and Terengganu. Visit this link for everything about the State Polls 2023 |
https://theedgemalaysia.com/node/652876 | Gold retreats as traders lock in profits before US data | English | BENGALURU (Jan 25): Gold fell on Wednesday (Jan 25), retreating further from last session's near nine-month peak, as some investors locked in profits and the US dollar steadied ahead of US economic data that could steer the Federal Reserve's policy tightening path. Spot gold slipped 0.6% to US$1,926.79 per ounce, as of 0611 GMT, after hitting its highest since late April on Tuesday. US gold futures were down 0.4% at US$1,928.40. The dollar index held steady. A stronger US dollar makes greenback-priced gold less attractive for buyers holding other currencies. "Gold prices are lower primarily due to a technical correction after hitting highs; a steady dollar also weighed on sentiment," said Hareesh V, head of commodity research at Geojit Financial Services. Market focus is now on the fourth-quarter US gross domestic product data due on Thursday, which could set the tone for the Fed's Jan 31-Feb 1 policy meeting. Gold could gain if there are signs that the US economy is slowing and the Fed will soon slow its tightening pace and cut interest rates, said Ilya Spivak, head of global macro at Tastylive. "However, for prices to breach the US$2,000 level, the US dollar has to continue weakening." Most investors expect the Fed to raise rates by 25 basis points (bps) next week. The US central bank slowed its tightening pace to 50 bps last month after four straight 75-bp hikes. With lower rates translating into lesser returns on interest-bearing assets like government bonds, investors may prefer zero-yield gold. Gold may rise into US$1,956-US$1,969 range, according to Reuters technical analyst Wang Tao. Data showed on Tuesday Swiss exports of gold to countries including China, Turkey, Singapore and Thailand surged to multi-year highs in 2022. Among other precious metals, silver dipped 0.6% to US$23.53 per ounce and platinum lost 0.3% at US$1,054.25. Palladium fell 0.8% to US$1,728.43. |
https://theedgemalaysia.com/node/633970 | Bintai Kinden 1Q net profit drops 26% to RM1 mil on lower profit margin | English | KUALA LUMPUR (Aug 26): Bintai Kinden Corp Bhd's net profit for the first quarter ended June 30, 2022 fell 25.8% to RM1.12 million from RM1.51 million a year earlier, as gross profit margin decreased after taking into account variation orders from completed mechanical and electrical (M&E) engineering projects. In a Bursa Malaysia filing on Friday (Aug 26), the building and industrial service engineering outfit said revenue for the quarter jumped 152% to RM30.88 million from RM12.26 million previously, due to higher contribution from M&E engineering business. Earnings per share dipped to 0.15 sen from 0.39 sen. The company did not declare any dividend. In a separate statement, Bintai Kinden executive director Azri Azerai said the company will continue to leverage its core M&E engineering specialisation to seek opportunities in Malaysia and around the region. He said the surge in economic activities following the previous two years of intermittent lockdowns due to Covid-19 will definitely have positive spillover effects. “Through our indirect subsidiary, Johnson Medical International Sdn Bhd, we have a niche as a turnkey solutions provider of mobile, modular and offsite engineered healthcare infrastructure that we intend to expand and in which our M&E engineering services can also benefit. “Through our 51%-owned subsidiary, Bintai Energy Sdn Bhd, we have been busy exploring opportunities to distribute flanges and other related piping products, the latest of which is a business collaboration agreement with PT Raintech Indo Energi,” he said. Azri said Bintai Energy had recently been granted approval for a licence by Petroliam Nasional Bhd (Petronas) under the Standardised Work and Equipment Categories Code, to bid for oil and gas (O&G) projects that come under Petronas. He said Bintai Kinden’s orderbook covering M&E engineering as well as O&G projects total RM120.43 million. At the midday break on Friday, Bintai Kinden rose 5.26% or 0.5 sen to 10 sen with 340,900 shares traded. |
https://theedgemalaysia.com/node/652711 | Brazil and Argentina to discuss common currency | English | BUENOS AIRES (Jan 22): Brazil and Argentina aim for greater economic integration, including the development of a common currency, Brazilian President Luiz Inacio Lula da Silva and Argentine leader Alberto Fernandez said in a joint article they penned. "We intend to overcome the barriers to our exchanges, simplify and modernise the rules and encourage the use of local currencies," says the text published on the Argentine website Perfil. "We also decided to advance discussions on a common South American currency that can be used for both financial and commercial flows, reducing costs operations and our external vulnerability," the article said. The idea of a common currency was raised originally in an article written last year by Fernando Haddad and Gabriel Galipolo, now Brazil's finance minister and his executive secretary, respectively, and was mentioned by Lula during the campaign. Lula chose Argentina for his inaugural international trip since taking office, keeping with the tradition of first visiting Brazil's largest trading partner in the region. That follows four years of tense relations during the government of former Brazilian right-wing President Jair Bolsonaro. Lula's trip to neighbouring Argentina also marks the return of Brazil to the Community of Latin American and Caribbean States (Celac), which Brazil left in 2019 under order from Bolsonaro, who refused to participate in the regional group due to the presence of Cuba and Venezuela. Both presidents emphasised the need for a good relationship between Argentina and Brazil to strengthen regional integration, according to the article. The leaders also emphasised strengthening the Mercosur trade bloc, which includes Argentina, Brazil, Paraguay and Uruguay, and which Brazilian Finance Minister Haddad recently lamented has been abandoned in recent years. "Together with our partners, we want Mercosur to constitute a platform for our effective integration into the world, through the joint negotiation of balanced trade agreements that respond to our strategic development objectives," both presidents said. Earlier in the day, the Financial Times reported the neighbouring nations will announce this week they are starting preparatory work on a common currency. The plan, set to be discussed at a summit in Buenos Aires this week, will focus on how a new currency which Brazil suggests calling the "sur" (south) could boost regional trade and reduce reliance on the US dollar, FT reported citing officials. Politicians from both countries have discussed the idea already in 2019, but met with pushback from Brazil's central bank at the time. Initially starting as a bilateral project, the initiative would later be extended to invite other Latin American nations, the report said, adding that an official announcement is expected during Lula's visit to Argentina, which starts on Sunday night. |
https://theedgemalaysia.com/node/668993 | 齐力工业等股提振 马股全日收高 | Mandarin | （吉隆坡29日讯）受齐力工业（Press Metal Aluminium Holdings Bhd）和天地通数码网络（CelcomDigi Bhd）等重量级股上涨提振，马股在起落拉锯中全日收高。 闭市时，富时隆综指上升1.95点，收于1404.93点。 综指今早开市报1405.47点，较上周五收盘的1402.98点，攀升2.49点。日内游走于1401.93点和1406.53点。 惟市场广度负面，下跌股达449只、上升股376只，另有445只无起落、1005只无交易，以及53只暂停交易。 成交量27亿3000万股，值18亿7000万令吉，相比上周五的24亿4000万股和22亿8000万令吉。 乐天交易股票研究副总裁唐栢麟指出，由于投资者对美国通胀的影响及对全球最大经济体衰退持谨慎态度，本地股市涨幅受限。 他向马新社说：“美国的所有这些事态发展，都会在短期内影响全球投资者情绪。” 他表示，由于上周遭抛售后出现逢低买盘，综指今日走高。 “我们认为，过去几个交易日的下跌将为投资者提供足够的上行空间，因为综指估值变得更具吸引力，加上本地经济状况好转。” “因此，我们预计逢低买盘将持续，综指周内料在1400至1415点区间走高。” 亚洲股市方面，他表示，在美国总统拜登和众议院议长Kevin McCarthy就提高美国债务上限达成最终协议后，主要股市大多收收涨。 重量级股中，齐力工业上涨16仙，收于4.90令吉、天地通数码网络扬10仙，挂4.56令吉、马电讯（Telekom Malaysia Bhd）升12仙，至5.20令吉、国家能源（Tenaga Nasional Bhd）攀6仙，报9.75令吉，以及IOI集团（IOI Corp Bhd）增4仙，以3.95令吉挂收。 由于首季业绩低于预期，亚通（Axiata Group Bhd）则挫14仙，至2.77令吉，而国油化学（Petronas Chemicals Group Bhd）跌8仙，报6.87令吉。 至于热门股，今日在创业板上市的云点科技（Cloudpoint Technology Bhd）跳升13.5仙，报51.5仙、婆罗资源（Bahvest Resources Bhd）挫2.5仙，至20仙、杨忠礼机构（YTL Corp Bhd）则扬6.5仙，挂90仙、大稳控股（Ta Win Holdings Bhd）挫0.5仙，报3.5仙，以及沙布拉能源（Sapura Energy Bhd）收平于3.5仙。 （编译：陈慧珊） English version：FBM KLCI ends in positive zone, selling weighs on low liners |
https://theedgemalaysia.com/node/625819 | Wee: Container volume at Port Klang, PTP expected to be near last year's record level despite headwinds | English | KUALA LUMPUR (June 27): Transport Minister Datuk Seri Dr Wee Ka Siong is hopeful that the combined container volume for Port Klang and Port of Tanjung Pelepas (PTP) will be close to last year’s record-breaking figure, despite the global supply crunch due to the Russia-Ukraine conflict. The nation's two leading ports posted a combined throughput of 24.9 million twenty-foot equivalent units (TEUs) in 2021, with Port Klang at 13.7 million TEUs and PTP at 11.2 million TEUs, their highest achievements. Noting that the Russia-Ukraine conflict had resulted in higher oil prices and a shortage of commodities, Wee said this had affected the performance of the ports. “This happened not only in Malaysia but worldwide. But I am still optimistic that these two ports will not be too far-off (from last year’s TEU figures), because as you can see from radar, detection as well as monitoring systems, they managed it very well and improved efficiency by using all the technologies. “[However,] it would be too early for me to make an exact prediction. But at this junction, we are trying our best to improve the efficiency of the ports,” Wee said at a press conference after launching the 13th biennial International Harbour Masters’ Association (IHMA) Congress. The minister said Malaysia hopes to see a speedy resolution to the Russia-Ukraine conflict and a recovery of the global economy, which is still reeling from the effects of Covid-19. He said that apart from the war-induced challenges, port operators also faced other issues such as a shortage of vessels and containers. In his speech, Wee said several of Malaysia’s ports and many others around the world achieved reasonable growth in 2021 despite registering a slump in 2020, mainly due to the lifting of restrictions imposed during the height of the pandemic. “Port Klang and PTP are among the busiest ports in the world, ranked 12 and 15 respectively in 2021, serving as gateway ports and transhipment hubs and frequently handling the largest container vessels," he said. Read also:
Wee: 'White knight' to take over the major contractor of JB-Singapore RTS Link |
https://theedgemalaysia.com/node/621726 | Paramount 1Q profit doubles as its property business has fewer operational disruptions | English | KUALA LUMPUR (May 27): Property developer Paramount Corp Bhd's net profit for the first quarter ended March 31, 2022 (1QFY22) jumped to RM5.02 million from RM2.29 million a year prior, on stronger contribution from its property division amid fewer operational disruptions following the reopening of the economy as the country transitions into endemicity. The group's revenue grew 10.73% to RM168.1 million from RM151.81 million, its bourse filing showed. Earnings per share rose to 0.81 sen from 0.37 sen. No dividend was declared. The company attributed the improved financial performance to higher profit from the property division, though its performance for the quarter was also dampened by the higher loss before tax (LBT) reported by the investment and others division. "Among factors that contributed to the higher LBT were the depreciation expense and finance cost in respect of the Mercure Kuala Lumpur Glenmarie Hotel, which had its soft opening in November last year," it said. Its property division pulled in revenue of RM163.9 million for 1QFY22, up 10% from the same period last year when it recorded RM149.6 million, due to a larger base of ongoing development projects. "The top three revenue contributors in (the first quarter) were ATWATER development in Selangor, Sejati Lakeside development in Selangor and Bukit Banyan development in Kedah," it said. Its coworking division pulled in revenue of RM2.2 million for 1QFY22, 57% higher than the RM1.4 million previously, mainly due to higher contribution from its Tropicana Gardens outlet as well as revenue from Scalable Malaysia — Paramount’s end-to-end consult, design, build and manage workspace solutions provider. In a separate statement, Paramount Group CEO Jeffrey Chew said the reopening of the economy bodes well for the property market and hoped that the group could regain its strong sales momentum that was disrupted by the pandemic. "The 1QFY22 gross domestic product (GDP) expansion of 5%, coupled with increasing normalisation in economic activity, especially with the reopening of international borders and improving labour market conditions, are positive indicators,” he said. He added that despite the Overnight Policy Rate (OPR) hike of 25 basis points, the prevailing low interest environment remains conducive for property demand. "Malaysians with financial means will still look to property as a hedge against inflation," he said. Nevertheless, the group is still mindful that the property sector's recovery could be dampened by Covid related uncertainties, aggressive interest rate hike, rising cost of living and lower spending power. Meanwhile, he said the group plans to launch six projects, including new phases of existing projects, this year, with a collective estimated gross development value of RM1.3 billion. Among the new projects lined up are: the Arinna Kemuning Utama smart homes in Shah Alam, The Atera, a transit-oriented development project in Petaling Jaya situated next to the Asia Jaya Light Rail Transit Station, and the Sejati Lakeside 2 landed homes in Cyberjaya. Shares in Paramount closed 1.5 sen higher at 74.5 sen on Friday (May 27), giving it a market ccapitalisation of RM460.20 million. |
https://theedgemalaysia.com/node/630266 | 稳固控股次季由盈转亏 | English | （吉隆坡29日讯）稳固控股（Vizione Holdings Bhd）在截至今年5月杪第二季（2022财年第二季）由盈转亏，净亏237万令吉，一年前则净赚204万令吉，主要是所有业务的贡献下跌所致。 因此，2022财年次季的每股亏损为0.16仙，一年前为每股盈利0.26仙。 季度营业额暴跌34.1%至6375万令吉，一年前报9680万令吉。 截至今年5月杪首6个月（2022财年首6个月），净利狂泻74.5%至78万令吉，一年前为306万令吉。营业额也从1亿6064万令吉，降低11.8%至1亿4161万令吉。 该股以7仙平盘挂收，市值为1亿4300万令吉。 （编译：魏素雯） English version：Vizione sinks into red in 2Q |
https://theedgemalaysia.com/node/627594 | Baltic Exchange shipping updates: July 8 | English | A weekly round-up of tanker and dry bulk market (July 8, 2022) This report is produced by the Baltic Exchange. The Baltic Exchange, a wholly-owned subsidiary of Singapore Exchange, is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 650 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic. For daily freight market reports and assessments, please visit www.balticexchange.com. Overall the market was active in both basins, especially with more fixtures reported from the North Atlantic in midweek. With limited cargo interest at the beginning of the week rates remained negative. The West Australia to Qingdao trade failed to maintain the previous week's level of $11, but climbed back to mid $11s on Thursday before having a marginal decline again on Friday. The ballast trade from Brazil to Qingdao remained above $30, slightly lower than last Friday's $30.40 week-on-week. In the North Atlantic, the sentiment was said to be better as the week closed for transatlantic round voyages. Despite improving bids, no new benchmark had set further than the last done or actually reflected a higher time charter equivalent value. By end of the week, the transatlantic run settled at nearly $24,000 whilst the transpacific round voyage closed at $14,205. The Capesize 5TC average gained $539 to finish at $18,825 for the first full week of July. It has been another week which saw further significant losses. A similar pattern emerged in both basins, owing much to a lack of mineral demand in the Atlantic basin and little fresh cargo emerging from both Australia and NoPac in Asia. Transatlantic rates fell sharply to sub $20,000 on inferior described ships whilst reports had an 82,000-dwt delivery North France achieving $31,250 for a trip via US Gulf redelivery Far East. Elsewhere, limited bids were available. Asia still lacked any meaningful cargo both ex Australia and in the north of the region. Consequently, rates came under pressure across the board despite another week of healthy demand from Indonesia. The bid/offer spread on the longer rounds remained wide all week. A 75,000-dwt delivery Korea agreed to $17,000 for a NoPac round trip typifying the lack of support in the region. There was limited period activity, although an 81,000-dwt delivery China accomplished low $23,000s for a 10/12 months period. A rather tricky week for owners with both basins still under pressure and bearish sentiment remaining in many areas. Very little period surfaced, but a 60,000-dwt was heard fixed delivery Far East August/September dates for two years at 113 percent of BSI. In the Atlantic, the only positivity was seen from the US Gulf region which bucked the overall downward trend. A 52,000-dwt open US East Coast was fixed in the upper $20,000s for a trip to the Mediterranean. It was a positional week from the South Atlantic. A 63,000-dwt fixed a trip delivery Tubarao redelivery Bangladesh at $29,000 plus $450,000 ballast bonus. From Asia, it was a similar situation with sentiment remaining negative due to limited steel demand from the north and a good amount of prompt tonnage in the south. From the north, a 63,000-dwt was heard fixed delivery CJK for a trip to the US Gulf at $26,750. Whilst from the south, a 52,000-dwt open Singapore was heard fixed for a trip via Indonesia redelivery China at around $19,000. A week of limited activity, brokers said this was mostly due to limited fresh enquiry in both basins putting negative pressure on rates. In East Coast South America, a 36,000-dwt was fixed from Barcarena to Italy with an intended cargo of grains at $22,000. After a slow start in the US Gulf, a 35,000-dwt was fixed for a trip from Port Arthur to Brazil with an intended cargo of soda ash at $9,500. A 36,000-dwt was fixed from Rouen to Morocco with an intended cargo of grains at $15,000. A 36,000-dwt was fixed basis delivery Canakkale via the Black Sea to the US Gulf at $20,500. In Asia, a 33,000-dwt was rumoured to have fixed for a trip from South Korea to South East Asia with an intended cargo of slag at $20,000 and a 34,000-dwt was fixed from Surabaya to Iran for early July delivery in the high $20,000s. All eyes looking to the upcoming week to see if there will be a change in direction. Freight in the Middle East Gulf continued to decline this week. TC1 dropped 16.79 points to WS206.07 and TC5 bottomed out at WS285 at time of writing. On the MRs TC17 has had a chunk taken out of it to knock it below WS500, the index is currently pegged at WS468.33 (-WS41.67) this is still over $40,000 pd round trip TCE. In the West, the LR2s of TC15 had a significant freight correction this week with $3.75m fixed twice on the same day leading the index to currently sit at this level and taking the TCE for this run back into the negative. The LR1s on TC16 has been resolute, holding around WS240 all week and consistently fixing at this level. On the UK-Continent the MRs have had supply/demand in balance this week. However, they are still leaning towards the softer. TC2 dropped 14.44 points to WS315 ($28,500 pd round trip TCE) and TC19 followed the same path 13.58 points to WS325.71.
The USG MR market resurgence halted this week. This was then followed by an inevitable downturn as a result of Independence Day and reduced activity. TC14 has dropped to WS240 (-WS30) and TC18 has similarly dipped WS248.33 to WS337.5 ($36,000 pd round trip TCE). The MRA TCE dropped from 47,431 to 43,497. On the Handymax TC6 has been tested down significantly this week by what little enquiry there has been. TC6 has lost 131.56 points this week and currently sits at WS323.75 and the round trip TCE dropping from $80,000 pd to the mid $40,000s. In the Baltic TC9 has been resolute this week, unwavering from WS510 and the bunker price fluctuations have just taken the round trip TCE up over the $60,000 pd mark at time of writing. VLCC rates took another step up this week and earnings are looking a little less negative. 270,000mt Middle East Gulf/China rates improved by a point to a shade above WS56.5 (a round-trip TCE of minus $5,400 pd). Meanwhile, the 280,000mt Middle East Gulf/USG (via Cape of Good Hope) trip is assessed at WS33 again. In the Atlantic, rates for 260,000mt West Africa/China were flat at the WS57-58 level (minus $3,600 pd round-trip TCE). However, USG exports had a surge on various different asset sizes resulting in a handful of fixtures on the VLCCs and the rate for the 270,000mt US Gulf/China voyage jumped $643,000 to just shy of $6.9 million (a round-trip TCE of minus $6,600 pd). Some overnight reports now have a major Chinese charterer on subs with a Cosco vessel at $6.9 million. Rates for 135,000mt Black Sea/Augusta eased 3.5 points this week to WS126 (a round-trip TCE of $28,300 pd), while the 130,000mt Nigeria/UKC route saw rates drop almost five points to WS114 (a round-trip TCE of about $20,300 pd). In the Middle East, rates for the 140,000mt Basrah/West Mediterranean slipped two points to WS55. The latest report today is of a vessel on subjects at WS57, but no other details were available at the time of writing. The Mediterranean market continued to face downward pressure with Libya, alongside the Russian uncertainty, leaving the position list quite long. Rates for 80,000mt Ceyhan/West Mediterranean fell another 2.5 points to just below the WS160 mark (a round-trip TCE of about $26,000 pd). Northern European activity perked up with a few fixtures basis loading in the North Sea being done quietly and rates have also picked up. 80,000mt Hound Point/UK Continent is now worth 29 points more than a week ago at WS180 (a daily round trip TCE of $44,800). Meanwhile, the 100,000mt Primorsk/UK Cont route showed a more modest improvement of nine points at a touch above WS197.5 (a round trip TCE of $54,300 pd). Across the Atlantic, a much more exciting story unfolded with charterers coming to the market as the position list was shortening. Rates for the 70,000mt EC Mexico/US Gulf route continued on the upward trajectory with each fixture being done at a higher level than the last, rising 85 points for the week to just over WS280 (a round-trip TCE of $60,100 pd). The 70,000mt Caribbean/US Gulf trip, where sentiment is closely aligned to that of the EC Mexico/US Gulf route, saw rates catapult a further 67 points to WS258 (a round-trip TCE of about $46,600 pd). For the transatlantic trip of 70,000mt US Gulf/UK Continent, rates improved by a significant 26 points to almost WS209 ($30,500 pd round-tip TCE). This looks likely to entice ballasters from other regions. The Baltic Exchange runs a series of professional training courses through its Academy. When possible, these take place in key shipping centres but are also available as an e-learning option. The courses are designed to help shipping, finance and commodity executives build on their knowledge of the maritime markets. The courses are led by experts and deliver a high-level education, combining theory with real-life practical examples. See online for more details. |
https://theedgemalaysia.com/node/637732 | Aside from Agogo's FPSO project, Yinson may be in good position to win Petrobras’ Albacora | English | KUALA LUMPUR (Sept 26): It is still a "buy" recommendation for Yinson Holdings Bhd amid its solid and growing pipeline of both floating production, storage and offloading (FPSO) projects as well as renewables. Apart from strong earnings growth from three new upcoming projects — FPSO Anna Nery, FPSO Atlanta, and FPSO Maria Quitéria — Yinson is comfortable enough to take on one more big project without any equity cash call, according to RHB Research. The research house said in a note that the oil and gas company is able to execute up to three FPSO projects at any point of time. Following the sailaway of FPSO Anna Nery, RHB said Eni’s Agogo project appears to be another potential win that could fill up the slot amid the ongoing conversion of FPSO Maria Quitéria and Atlanta. “Given that contractors are mostly tied up with multiple projects, some clients are even booking contractors’ slots in advance, as evident by the exclusivity agreement with BP for the reservation of FPSO Nganhurra. As such, we believe [the] new FPSO project pipeline will remain robust in the medium term. Funding-wise, clients' upfront payment will be top priority, followed by other options such as capital recycling and FPSO spin-offs,” RHB wrote on Monday (Sept 26). Yinson’s net gearing had improved to 0.95 times as of the second quarter ended July 31, 2022 (2QFY23), from 1.15 times in 1QFY23, following the completion of its rights issue. “If the amount of RM1.8 billion in perpetual securities is treated as debt instead, net gearing would be 1.72 times. The amount of US$100 million (RM459.8 million) perpetual securities that is due in October will be redeemed,” said RHB. Additionally, Yinson is also in a good position to win Petrobras’ FPSO Albacora project. Petrobras is Brazil's state-run oil company. The Albacora is a mature field in the Campos basin offshore Brazil, and Petrobras wants to rejuvenate it with a new FPSO that can continue producing for another 20 years, said CGS-CIMB Research. “Yinson’s project execution team that is currently working on FPSO Maria Quiteria will be available to take on a new project once it is delivered to Petrobras in late 2024. Yinson is targeting to win Petrobras’ Albacora development,” said CGS-CIMB. Petrobras currently has two units in operation at Albacora — the P-25 semi-submersible production platform and the P-31 FPSO — and these will be decommissioned, so that a new FPSO can be put in place for the revitalisation of the field. “Petrobras has set Feb 13, 2023 for contractors to submit bids for the new FPSO Albacora. The FPSO will be a very large crude carrier (VLCC)-sized ship, and the charter may be for 20 years. As this is a revitalisation project, there are no local content requirements, similar to FPSO Anna Nery and FPSO Maria Quiteria,” said the research house. Other than Yinson, bidders for Petrobras’ Albacora project include Modec, SBM Offshore, MISC, BW Offshore, Altera Infrastructure and Ocyan. “However, with MISC struggling with the FPSO Mero-3 project, Altera Infrastructure in Chapter 11 bankruptcy proceedings, and Ocyan disqualified from Petrobras’ P-81 FPSO tender in May, the only real contenders are Modec, SBM Offshore and Yinson, with BW Offshore as a possibility, in our view. The FPSO Albacora project will likely be delivered to Petrobras in 2027,” said CGS-CIMB. On the other hand, other opportunities for Yinson may arise from potential redeployment of FPSO Lam Son, whose contract with Vietnam’s PTSC has been extended to June 30, 2023. “After this, there is the potential to reuse the vessel in Jadestone Vietnam’s Nam U Minh project (PTSC may take the lead to execute this project), or ConocoPhillips’ Salam-Patawali project offshore Sarawak,” said CGS-CIMB. According to Bloomberg, 11 analysts covering Yinson have "buy" calls for the stock, with a 12-month target price (TP) of RM3.25. None has a "hold" or "sell" call. RHB has kept its TP for Yinson at RM2.91, while CGS-CIMB maintained its TP at RM3.20. Yinson’s net profit for the cumulative six-month period ended July 31, 2022 rose to RM263 million from RM238 million a year earlier, as revenue grew to RM2.63 billion from RM2.05 billion. At the time of writing on Monday, Yinson had declined 3.1% or seven sen to RM2.19, valuing the group at RM6.68 billion. The counter, however, has fallen 16.73% year-to-date. |
https://theedgemalaysia.com/node/672123 | Megan Rapinoe, Alex Morgan make fourth US World Cup team | English | (June 22): Megan Rapinoe and Alex Morgan were both named to the FIFA Women's World Cup roster for the fourth time on Wednesday (June 21). US women's national team coach Vlatko Andonovski revealed his 23-member roster for this summer's tournament taking place in Australia and New Zealand. It includes six forwards, seven midfielders, seven defenders and three goalkeepers. Including Rapinoe, Morgan and Kelley O'Hara, who also is headed to a fourth World Cup, the group includes nine players who helped Team USA win the 2019 Women's World Cup in France. Rapinoe, Morgan and O'Hara also won the 2015 World Cup together in Canada and finished runner-up to Japan at the 2011 edition in Germany. "The task of selecting a World Cup team is never easy, but I'm proud of the players for their work ethic and focus during the process and of our coaching staff for doing the work to put together the best team possible," Andonovski said. "It's the players that make the biggest impact on our environment; they push each other to be better, and I know as a group they are extremely motivated to make our country proud at the World Cup. "Every player has a different journey to get to this point, so our roster has some amazing stories, and we have a really good mix of veterans and younger players." Rapinoe, who turns 38 on July 5, is the oldest player on the roster. Alyssa Thompson, 19, is the youngest. Rapinoe's next match will mark her 200th cap with the Stars and Stripes. She sustained a leg injury during NWSL play earlier this month that had threatened her status for the World Cup. The two-time defending champions will be without captain Becky Sauerbrunn, 2023 leading scorer Mallory Swanson and veterans Sam Mewis and Catarina Macario due to injuries. The expanded 32-team tournament opens on July 20. The USWNT is in Group E with the Netherlands, Portugal and Vietnam. US President Joe Biden and First Lady Jill Biden and entertainers Taylor Swift and Megan Thee Stallion were among a star-studded cast who helped to announce the USWNT lineup on social media. Full U.S. Women's National Team roster by position (club; caps/goals): GOALKEEPERS (3): Aubrey Kingsbury* (Washington Spirit; 1), Casey Murphy* (North Carolina Courage; 14), Alyssa Naeher*** (Chicago Red Stars; 90) DEFENDERS (7): Alana Cook* (OL Reign; 24/1), Crystal Dunn** (Portland Thorns FC; 131/24), Emily Fox* (North Carolina Courage; 28/1), Naomi Girma* (San Diego Wave FC; 15/0), Sofia Huerta* (OL Reign; 29/0), Kelley O'Hara**** (NJ/NY Gotham FC; 157/3), Emily Sonnett** (OL Reign; 74/1) MIDFIELDERS (7): Savannah DeMelo* (Racing Louisville FC; 0/0), Julie Ertz*** (Angel City FC; 118/20), Lindsey Horan** (Olympique Lyon, FRA; 128/27), Rose Lavelle** (OL Reign; 88/24), Kristie Mewis* (NJ/NY Gotham FC; 51/7), Ashley Sanchez* (Washington Spirit; 24/3), Andi Sullivan* (Washington Spirit; 44/3) FORWARDS (6): Alex Morgan**** (San Diego Wave FC; 206/121), Megan Rapinoe**** (OL Reign; 199/63), Trinity Rodman* (Washington Spirit; 17/2), Sophia Smith* (Portland Thorns FC; 29/12), Alyssa Thompson* (Angel City FC; 3/0), Lynn Williams* (NJ/NY Gotham FC; 52/15) * -- First Women's World Cup ** -- Second Women's World Cup *** -- Third Women's World Cup **** -- Fourth Women's World Cup |
https://theedgemalaysia.com/node/629197 | Parliament exposed as irrelevant, outmoded and in need of major reforms, says Kit Siang | English | KUALA LUMPUR (July 22): DAP veteran Lim Kit Siang said the first week of Parliament has exposed it as irrelevant, outmoded and in need of major parliamentary reforms to keep it abreast with modern trends and developments. In a statement on Friday (July 21), the member of Parliament (MP) for Iskandar Puteri said while three MPs — Ramkarpal Singh (Pakatan Harapan–Bukit Gelugor), Datuk Seri Salahuddin Ayub (Pakatan Harapan–Pulai) and Isnaraissah Munirah Majilis (Warisan–Kota Belud) — had sought an emergency Dewan Rakyat debate over the seizure of Petronas’ assets by purported descendants of the Sulu sultanate who are claiming US$14 billion from Malaysia, but were blocked by the Speaker Azhar Azizan Harun, citing sub judice rules to prevent debates in Parliament, the government held a closed-door briefing session at Seri Pacific Hotel in Kuala Lumpur on Thursday night for parliamentarians. “If a debate on the matter was denied on sub judice grounds, wouldn’t such a closed-door briefing for MPs be similarly improper on sub judice grounds?” he questioned. The DAP elder added that what happened at the briefing on Thursday night was disclosure on the chronology of the case and should be stated in Parliament, as it is not only MPs but the people of Malaysia, in particular the people of Sabah, who have the right to know the full facts of the matter. “The briefing to MPs yesterday (Thursday) cannot be replacement for a parliamentary debate, which should now be by way of a ministerial statement followed by a debate. “The Speaker Tan Sri Azhar Azizan Harun was wrong when in response to objections raised by MP for Sepang, Mohamed Hanipa Maidin, arguing that his sub judice rulings was incorrect as the rule should be used on a case-by-case basis, the Speaker said that debating the matter could reveal the government's legal strategies to the enemy,” he said. However, Lim, while conceding that Azhar was right that the government’s strategy in any litigation should not be revealed, added it was not the Speaker’s job to impose a blanket ban to prevent any debate on any issue but to uphold a Minister’s right not to disclose such a government strategy. Read also:
Warisan MP suspended two days from Dewan Rakyat over commotion on Sulu claim
Debate on Sulu group's claims may jeopardise national interest — Dewan Rakyat Speaker |
https://theedgemalaysia.com/node/669650 | EU sees red over Chinese demands for cosmetics trade secrets | English | (June 1: The European Union (EU) has raised concerns with China about the detailed product information that cosmetics companies like L’Oreal and LVMH have to provide in order to sell their goods in the country. China is phasing in rules making cosmetics firms supply data spanning from ingredients to details of manufacturing processes, the sourcing of raw materials, and the precise composition of formulas. Much of the information is collected and stored in a database managed by Chinese authorities. The main concern for European companies is that they may be forced to surrender trade secrets under the guise of product safety, according to people familiar with the situation, who asked not to be identified discussing confidential information. These concerns have been raised at the highest levels in recent discussions between the EU and China, said one EU official, who also requested anonymity. The range of information companies are asked to share goes significantly beyond most other markets, according to industry experts. Compared with the EU, China’s rules — which also apply to domestic firms — are much more intrusive, with authorities requiring companies to submit crucial information on the country’s data servers. In the EU, the data is handled by the companies themselves. The process to comply with the new regime is also very time-consuming and requires more resources, the experts said. At the same time, they acknowledge that EU companies have little choice but to comply with the regulations given the massive size of the Chinese market and its importance to their businesses. There is “an extreme level of granularity” in the disclosure requirements, Gerald Renner, a director of technical regulatory and international affairs at the Brussels-based Cosmetics Europe lobby, said in an interview. There are concerns that they could provide China with “very detailed information about the blueprint of the cosmetic product,” he added. Cosmetics Europe’s members include L’Oreal SA and Christian Dior owner LVMH Moet Hennessy Louis Vuitton SE among other beauty groups. Representatives for L’Oreal and LVMH declined to comment. China’s National Medicinal Products Agency didn’t respond to a request for comment. There is no evidence or indication to suggest that China is using the information it collects from cosmetics companies for malign purposes. While market leader L’Oreal doesn’t break down its revenue in China, North Asia was its second biggest region after Europe, generating more than a quarter of its €38.3 billion sales (RM189.49 billion) last year. That illustrates the challenge faced by many companies in the industry, as well as other manufacturing sectors, which need to balance doing business in China with evolving geopolitical developments. Beyond the cosmetics sector, the EU and its allies have been working to cut their broader exposure to China and mitigate supply chain dependencies, especially when it comes to sourcing raw materials. Faced with an increasingly assertive government in Beijing, the EU set out a strategy earlier this year to boost the production of materials seen as key to the green transition. Allies have also been looking to curb investment risks and control exports of some cutting-edge technologies to China. The EU, and the US even more so, have long complained that certain policies and practices in China could lead to the transfer of technologies and intellectual property. The need to disclose additional information can also be seen as stealth protectionism as many more resources are needed to abide by those rules, according to one industry expert. This level of disclosure amounts to handing over manufacturing secrets, the person said. Cosmetics Europe’s Renner said there’s no evidence that intellectual property theft has taken place but cautioned that “any company would be concerned that its trade secrets could be made available” to competitors. “We hope for the best,” he said.
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https://theedgemalaysia.com/node/601174 | Malton in talks to sell Pavilion Bukit Jalil Mall to Pavilion REIT | English | KUALA LUMPUR (Dec 24): Property developer Malton Bhd, whose executive chairman Tan Sri Desmond Lim Siew Choon holds a 43.33% stake in the company, said on Friday that it is in talks to sell Pavilion Bukit Jalil Mall here to Pavilion Real Estate Investment Trust (REIT). Pavilion Bukit Jalil Mall is located within the 50-acre Bukit Jalil City, a development under Malton. In a bourse filing, Malton said MTrustee Bhd, acting as the trustee of Pavilion REIT, has accepted an invitation from its subsidiary Regal Path Sdn Bhd to commence discussion for the potential sale of the mall. “The mall, which has approximately 1.8 million sq ft in retail space, opened its door to shoppers on Dec 3, 2021,” Malton said, adding that further announcements on the matter will be made in due course. Lim is also the chairman and non-independent executive director of Pavilion REIT Management Sdn Bhd, the manager of Pavilion REIT. Currently, the trust's portfolio comprises Pavilion Kuala Lumpur Mall, Intermark Mall, Da Men Mall, Elite Pavilion Mall and Pavilion Tower. Malton shares closed one sen or 2% lower at 49 sen, valuing it at RM258.79 million. Meanwhile, Pavilion REIT units were unchanged at RM1.27, with a market capitalisation of RM3.87 billion.
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https://theedgemalaysia.com/node/603540 | Poll: Majority of consumers kept work and personal lives separate during pandemic | English | KUALA LUMPUR (Jan 12): A majority of consumers have identified trying to keep their work-self and personal-self separate during the pandemic. In a poll conducted during October last year, technology research and consulting firm Gartner Inc found 64% of consumers had tried to keep their work-self and personal-self separate. Gartner marketing practice vice president and analyst Kate Muhl said marketers responsible for strategic planning, targeting, positioning, messaging and corporate responsibility initiatives can use these trends to better align their initiatives to key cultural issues and changes in consumer behaviours and attitudes. The survey found that fewer people tie their identities to their work or career. Gartner said this was evident as the US Labour Department reported that a record 4.5 million workers, or 3% of the workforce, quit jobs in November 2021, matching the record set in September. The survey also revealed that 51% of workers admit to performing personal tasks during work hours more frequently than before the pandemic. Muhl said marketers must recognise that consumers are in the midst of an exhausting practical and spiritual overhaul. “That presents an opportunity for their brands to be facilitators of change. “Consumers are valuing themselves more. Because of this, brands must emphasise their values that speak to topics that include authenticity, identity and self-esteem,” she said. The poll showed 72% of consumers reported experiencing some distortion in their perception of the pace of time, led by Gen Z (91%) and millennials (88%). Also, 66% of consumers reported having difficulty making long-term plans or life changes at some point during the pandemic. Gartner said marketers must appreciate the profound cultural transformations underway regarding time and lean in to brand values that answer consumers' longing for control, health and reality. Gartner’s survey identified 61% of consumers watch or listen to entertainment “to relax or be comforted”, followed by 41% identifying “to escape from, or stop thinking about, reality” and 33% “to experience funny moments”. With these insights, marketers must realise that many consumers are more interested in straightforward, uncomplicated storylines than they used to be. Muhl said the lesson here for marketing leaders is to do all they can to reduce mental load. “This isn’t about increasing emotional engagement or intimacy. Right now, marketers must focus on simplifying the message and streamlining the consumer journey,” she said. |
https://theedgemalaysia.com/node/666421 | AHAM Capital joins global litigation to challenge Credit Suisse AT1 write-downs | English | KUALA LUMPUR (May 10): AHAM Asset Management Bhd has confirmed that it is participating in a class action lawsuit together with other global fund managers to recover investment losses in Credit Suisse's Additional Tier 1 (AT1) bonds. Law firm Quinn Emanuel Urquhart & Sullivan is representing the company in the suit, AHAM confirmed on Wednesday (May 10). "We are participating in a class action lawsuit with other global fund managers on the recovery of the bonds. After reviewing various legal options, we have appointed Quinn Emanuel, to represent unitholders," said AHAM Capital when contacted by The Edge. “Quinn Emanuel has also been appointed by other significant holders of Credit Suisse's AT1 capital instruments to act on their behalf in negotiations with Swiss authorities and potential litigation aimed at recovering losses incurred in the wake of the merger announcement between UBS and Credit Suisse. “Quinn Emanuel is a reputable, worldwide legal firm with a proven record of accomplishment in managing comparable cases. We are confident that they will bring their vast expertise, knowledge, and experience to bear in representing our interests and those of other AT1 capital instrument holders,” the asset management firm added. AHAM Capital had in March this year suspended the dealings of two bond funds — AHAM Single Bond Series 2 and AHAM Single Bond Series 4 — that had invested in Credit Suisse's AT1 bonds following the write-down of those bonds due to the forced takeover of the Swiss giant by rival UBS Group. The total value of investments that was written down to zero by CreditSuisse was 16 billion Swiss francs, or US$17.5 billion (RM78 billion). The combined size of the two AHAM Capital funds that invested in Credit Suisse's AT1 bonds amounted to about RM70 million or less than 0.1% of AHAM Capital's total assets under management of RM77 billion. Last month, Quinn Emanuel revealed that it has been instructed by key holders of the AT1 bonds to represent them in discussions with Swiss authorities and in possible litigation to recover losses. “We are extremely pleased to have been retained by a key AT1 bondholder group and now look forward to seeking compensation for our clients, drawing on our extensive experience in situations of this kind,” said Richard East, Quinn Emanuel’s senior partner in London in a statement last month “There is still a chance that the various actors will recognise and correct the mistakes made in hastily orchestrating this merger,” added Thomas Werlen, managing partner of Quinn Emanuel. Earlier this month, Quinn Emanuel reportedly added over 1,000 holders of Credit Suisse's AT1 bonds in its litigation. Read also:
AHAM Capital says two suspended bond funds make up only 0.1% of total AUM
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https://theedgemalaysia.com/node/667490 | 令吉兑美元小幅高开 | Mandarin | （吉隆坡18日讯）由于对美国债务上限的担忧打压美元，令吉兑美元周四小幅走强。 截至9时，令吉兑美元微升至4.5230/5280，昨日收报4.5250/5275。 Bank Muamalat Malaysia Bhd首席经济学家兼社会金融主管Dr Mohd Afzanizam Abdul Rashid认为，美国政客将解决僵局，因他们需求确保经济继续保持增长。 他向马新社说：“只是政治上的争论可能会导致金融市场不安。因此，令吉周四可能会趋稳。” 同时，ActivTrades交易员Dyogenes Rodrigues Diniz表示，在美国首次申请失业救济及美国费城联储制造业指数发布前，美元兑令吉可能横摆。 令吉兑一篮子主要货币大多走低。 令吉兑英镑从昨日的5.6300/6331，跌至5.6456/6518、兑欧元由4.9006/9033，滑至4.9034/9088，但兑日元从3.3039/3060，升至3.2907/2945。 令吉兑东南亚货币也普遍下跌。 令吉兑印尼盾持平于304.1/304.6，相比昨日的304.2/304.6、兑新元自3.3693/3714，滑至3.3696/3736、兑菲律宾比索从8.05/8.06，跌至8.07/8.09，以及兑泰铢从13.2059/2182，贬至13.2136/2343。 （编译：陈慧珊） English version：Ringgit rebounds to open marginally higher vs US dollar |
https://theedgemalaysia.com/node/674720 | All hands on deck | English | This article first appeared in City & Country, The Edge Malaysia Weekly on July 17, 2023 - July 23, 2023 Although it is located in the lively area of Kerinchi, next to Bangsar South, The Estate exudes a sense of calmness and serenity. Perhaps it is the contemporary, elegant façade and dark exterior or the perfectly landscaped recreational areas of the condominium development that does the trick. “From the front, The Estate looks like the keyboard of a piano. The façade is dark grey, which everyone was initially sceptical about, as a dark colour would make the building very hot. However, over time, that has changed because the unique colour makes The Estate stand out among the other high-rises in the area, and it’s not as hot as they expected because the project’s design allows plenty of natural ventilation,” BON Estates Sdn Bhd CEO Chan Jin-Wy tells City & Country in an interview. Occupying a 3.68-acre freehold tract in Bangsar, Kuala Lumpur, The Estate comprises 328 condo units across two 46-storey towers. The built-ups of the units range from 2,346 to 5,258 sq ft. The facilities include a gymnasium, yoga room, sky lounge, function room, games room, meeting rooms, a multipurpose hall, children’s playground, Jacuzzi and swimming pools. The Estate was completed in May 2021 and handed over to the owners in August 2021. BON Estates appointed Henry Butcher Malaysia (Mont Kiara) Sdn Bhd (HBMK) as its property manager in February 2021. The Estate can now add another accolade to its collection of awards, having been selected the Gold winner in the Below 10 Years Multiple — owned Strata Residential category of The Edge Malaysia Best Managed & Sustainable Property Awards 2023. Chan says the developer started looking for a property manager even before The Estate was completed. “We started discussing things casually at the end of 2020 and we spoke to many vendors. HBMK provided many good ideas by engaging and planning early, which helped us a lot because we were venturing into our maiden project. That experience and learning helped us strengthen the handover process,” he recalls, adding that HBMK’s partnership with The Estate started about seven months before the project’s vacant possession (VP). HBMK managing director Low Hon Keong says that due to the increased awareness of property management, some developers prefer to engage with management companies before the VP. “Many years ago, property management was often overlooked. In the past five years or so, there seems to have been an increased awareness of property management, as it affects a project’s value creation in the long run. For The Estate, the developer made the effort to set up meetings with us even before the VP to discuss maintenance and management plans,” Low adds. HBMK associate director Jessie Koh Ching Nee elaborates, “We have provided input since the drafting of the by-laws, [which are the house rules of The Estate]. In terms of practicality, we have brought in the experience we gained from doing other developments and applied it to The Estate. “We also advised on the renovation hours; sourcing of service providers, including security guards, cleaners and gardeners; setting up the management office such as the furniture and layout of the office; creating the accounting system; and submitting the [required] Form 25 to the Commissioner of Buildings (COB) as part of the strata management requirement for common area defects rectification. The Strata Management Act 2013 is quite new, which is why we worked with them on this. “We worked together on the budget and the four-month advance billing, where we advised the developer to collect a deposit from owners for utilities such as electricity and water.” For The Estate’s long-term maintenance and upkeep, Low says the management team uses the planned preventive maintenance (PPM) method, which is common practice in most condominiums. “It essentially became the sole guide and reference in maintaining the building. As The Estate has many common facilities, the PPM should be integrated into the work scope of technicians on site. “The preventive measures are to ensure the assets and facilities are maintained in the long run. Instead of corrective measures, we have preventive measures. As far as the maintenance of the facilities is concerned, we use PPM to schedule our weekly, monthly and yearly maintenance checklist.” Every week, the management team checks on the development’s water features, swimming pool pump system as well as the common corridors’ staircase and lighting. Features that are checked monthly include the cold water pump system, pressure reducing valve, magnetic and door mechanism, main switchboard electrical equipment, Satellite Master Antenna Television system, surveillance system, access card system, lift system, fire fighting system, fire alarm panel system, bomba intercom system and generator set. The water tanks are checked once a year. Low says, “With long-term preventive maintenance, we get to prolong the lifespan of the facilities and they will last longer than was initially expected. That would also help us save on the sinking fund and expenditure.” The maintenance fee for The Estate is RM2.96 per share unit. Koh says the collection rate has been healthy and maintained at 99%. She adds that the development has been fully sold and the occupancy rate is currently 67.38% for both towers. According to Chan, The Estate has been able to achieve a strong collection rate because it is mostly owner-occupied. “If you sell a residential development and it is mostly occupied, people tend to pay their maintenance fee.” Meanwhile, Koh says that The Estate’s actual amount spent was slightly lower than what was budgeted in 2022. One of the reasons is due to the extra income from fixed deposit interest, facilities income and the sale of access cards. The overall expenditure variance was underspent by 23%, the contractual operating expenditure was underspent by 15%, non-contractual operating expenditure was underspent by 57%, utility charges were underspent by 8% and administrative expenditure was underspent by 22%. “From our previous budget, we saw that we could sustain the sinking fund for the next five years. So far, we have not used the sinking fund at all. This [shows] how important the selection of materials is for a development. For The Estate, it’s safe to say that over 80% of the materials used are of high quality, which makes them durable and long-lasting,” says Koh. Chan concurs, saying: “The project team and shareholders themselves have contributed to choosing all the right materials. We even curated the landscape very carefully. “We went back to the fundamentals of landscaping, that is, the selection of plants, which is very important in terms of maintenance. We can’t afford to have plants that need to be taken care of every single day. The plants that were chosen are also suitable for our tropical weather; so, they are easier to maintain and will live longer.” Of the development’s energy-saving features, Chan says The Estate’s energy and cost-saving ideas came into play during the planning stage of the development. “The design of The Estate in this sense is that all the lighting features use LED lighting, abandoning the usage of conventional light bulbs.” Koh explains, “LED lighting uses much less energy to provide the same amount of light. Using less energy translates into producing less heat. LED lighting also has a longer lifespan than traditional incandescent bulbs. As a result, the management is able to save a lot of money or cut down on electrical expenses.” Another energy-saving initiative undertaken by HBMK is the use of timers in areas that are not commonly used by residents. “For example, in some areas that do not require lighting because there is enough natural light coming in, the lights are turned on only when it gets dark, from 7pm until the next morning,” says Koh. Besides energy-saving features, The Estate optimises cost through its rainwater harvesting system, which collects rainwater and stores it in a tank to be used later for numerous purposes. “At The Estate, the collected rainwater is primarily used by the gardeners for the landscape. Given the abundance of plants and other greenery, the water consumption is significant. So, it is important to have a rainwater harvesting system to support the condominium’s water usage,” says Koh. In terms of challenges, he cites, for example, the defects liability period (DLP) for The Estate, which will expire in September this year. “We are still under the DLP. Now may not be the right time to implement some of the energy-saving measures that we have planned because it could tamper with the system, causing the DLP to be null and void. “That’s the limitation we have but we’re working on a comprehensive plan for things that can be implemented upon the expiry of the DLP. We’ve listed all the assets and equipment that can be upgraded right after it expires.” As long as maintenance work is carried out to ensure that The Estate lasts a long time, the chances are high that the condo units will enjoy a higher resale value. Chan says the units were sold around RM600 psf when the project was launched in 2017. Today, they are valued at more than RM900 psf. “That’s a capital appreciation of more than 50%. The current rental yield of 6% to 7% is usually seen in commercial properties. That is evidence of how maintenance can contribute to a property’s value creation. As long as we work to ensure the building and its features last a long time, we will be able to see the property prices rise.” 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/674449 | Bank of America to pay US$250 mil to settle US ‘junk fee’ case | English | WASHINGTON (July 11): Bank of America Corp agreed to pay US$150 million to regulators and US$100 million to customers for improperly charging fees and mismanaging accounts and rewards, the top US consumer watchdog said. The Consumer Financial Protection Bureau said on Tuesday that it was fining Bank of America for “systematically double-dipping on fees imposed on customers with insufficient funds in their account”. The bank also withheld promised reward bonuses and moved to open accounts without customer authorisation. The lender agreed to pay US$90 million of the penalty and US$60 million to the Office of the Comptroller of the Currency. Bank of America didn’t admit or deny the allegations as part of the settlement. In a statement, when asked about the case, Bank of America declined to address the case or the allegations against the lender. Instead, the firm said that it “voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022”. |
https://theedgemalaysia.com/node/657250 | Oriental posts loss in 4Q on higher finance costs, tax expenses | English | KUALA LUMPUR (Feb 28): Oriental Holdings Bhd sank into the red with a net loss of RM6.16 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), against a net profit of RM95.32 million a year earlier, due to higher finance costs and tax expenses. It was also due to lower earnings from operating activities and lower share of profit of equity accounted associates, as well as foreign currency losses and fair value losses on equity instruments, the group said in a Bursa Malaysia filing. This is the group's first quarterly loss since 1QFY2020, when it posted a net loss of RM81.77 million. Oriental posted a revenue of RM986.45 million in 4QFY2022, up 9.05% from RM904.58 million a year earlier. The group’s finance costs during the quarter rose 74.4% to RM31.16 million from RM17.87 million a year earlier, while tax expenses increased 16.1% to RM36.67 million from RM31.57 million. Operating activities saw a loss of RM31.94 million versus a profit of RM163.65 million in 4QFY2021, while share of profit of equity accounted associates shrank 54.2% to RM11.55 million from RM25.22 million. There was a foreign currency loss of RM40.94 million compared with a foreign currency gain of RM9.43 million in 4QFY2021. The fair value of equity instrument loss stood at RM64.78 million versus fair value gain of RM25.33 million. For the full financial year, Oriental's net profit rose 56.05% to RM500.84 million, from RM320.95 million in FY2021, lifted by gain on disposal from the hotels and resorts segment. Full-year revenue grew 17.14% to RM3.83 million from RM3.27 million, due to higher contribution from all segments. Going forward, Oriental said the shortage of vital components such as semiconductor chips continue to be a concern for certain car models line-up as the war in Ukraine continues to put a strain on supplies of important parts needed. The group said its plantation segment will take necessary steps to ensure that all estates and mills remain efficient, cost effective and competitive. It added that the forex exposure of the Japanese yen and Singapore dollar denominated borrowings will be closely monitored and managed. The group said the hotels and resorts segment has been making a comeback after countries lifted their international travel restrictions As for the healthcare segment, it will continue to focus on strengthening brand awareness and positioning the hospital for sustainable growth. “In the pipeline is the construction of a new hospital in Segamat, which is part of group’s expansionary plans in the north Johor region, slated to open in 2026,” said Oriental. The group's share price settled four sen or 0.59% higher at RM6.85 on Tuesday (Feb 28), giving the group a market capitalisation of RM4.25 billion. |
https://theedgemalaysia.com/node/605465 | Uzma获3000万令吉海上液压修井合同 | English | （吉隆坡27日讯）Uzma Bhd获EnQuest Petroleum Production Malaysia Ltd颁发价值3000万令吉的合同。 Uzma子公司Uzma Engineering私人有限公司获得上述合同，将为EnQuest的2022年修井计划提供液压修井装置（HWU）。 这份声明直到周四才获准发布。 该合同要求Uzma为EnQuest运营的3个平台和12口井提供综合HWU服务。 预计2022年3月开工，2022年10月竣工。 Uzma预计，上述合同将为截至2022年6月30日财年及接下来财年的收益及每股净资产作出积极贡献，直至合同结束。 闭市时，Uzma涨2仙或4.65%，至45仙，市值为1亿5657万令吉。 （编译：魏素雯） English version：Uzma awarded RM30m offshore hydraulic workover contracts |
https://theedgemalaysia.com/node/678277 | Top Glove out of MSCI index; no replacement, less one Malaysian stock for global funds to invest | English | KUALA LUMPUR (Aug 11): Top Glove Corp Bhd has been dropped as a constituent for the MSCI Global Standard Indexes which will take place as of the close of Aug 31, 2023. In the list released on Thursday (Aug 10), there were no Malaysian securities added to the list. With the deletion of Top Glove, there are 32 Malaysian securities remaining on the list. MSCI Inc announced the results of the August 2023 Index Review for the MSCI Equity Indexes — including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes, the MSCI Frontier Markets, and MSCI Frontier Markets Small Cap Indexes, the MSCI Global Islamic and MSCI Global Islamic Small Cap Indexes, the MSCI US Equity Indexes, the MSCI US REIT Index, the MSCI China A Onshore indexes and the MSCI China All Shares Indexes. |
https://theedgemalaysia.com/node/662021 | Oversea Enterprise, Sunsuria, Power Root, CWG | English | KUALA LUMPUR (April 4): theedgemarkets.com highlighted four stocks with momentum at Bursa Malaysia’s afternoon close on Tuesday (April 4). Three stocks showed negative momentum, while only one stock had positive 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. For more detailed financial information and reports on the above-mentioned stocks, please subscribe to AbsolutelyStocks at www.absolutelystocks.com |
https://theedgemalaysia.com/node/670269 | Turkish lira plunges as state banks retreat from defence | English | (June 7): Türkiye's lira plunged to a record low as traders said state lenders had halted dollar sales to defend it, in a sign the new economic administration is giving up on costly interventions as part of an expected turn toward more conventional economic policies. The currency dropped about 7%, the most in more than a year, to as low as 23.1621 per dollar on Wednesday, weakening for a 12th straight day. It was trading 6.5% lower at 11.45am in Istanbul. President Recep Tayyip Erdogan, who won reelection on May 28, has championed an unorthodox economic policy based on ultra-low interest rates, which forced state institutions to compensate with exchange-rate interventions and frequent regulatory tweaks. The costs of that policy mix piled up in the form of depleted foreign-currency reserves, an inflationary spike, and an exodus of foreign capital, and markets had been pricing in a large depreciation following the vote as investors bet that it was unsustainable. Erdogan’s appointment of former Merrill Lynch strategist Mehmet Simsek as his next treasury and finance minister has intensified expectations of a return to orthodoxy and abandonment of state intervention in favour of allowing the market to determine fair value for Turkish assets. Since the election on May 28, the lira has weakened more than 13% against the dollar. Türkiye’s state banks don’t comment on their interventions in the foreign-exchange market. A former governor of the central bank said in 2020 that state-owned lenders carry out transactions in line with regulatory limits and could continue to be active in the currency market. While the lira plunged, other Turkish markets on Wednesday indicated confidence that the policy shift would be positive. The main stocks index rose 3.1%, extending gains since the vote to 21% and reversing this year’s losses. Turkey’s dollar bonds also extended their advance, with the extra yield investors demand to hold Türkiye’s dollar debt over US Treasuries narrowing 44 basis points this week, according to a JPMorgan Chase & Co. index. The central bank’s next meeting to set interest rates is scheduled for June 22 and investors expect a hike, fueled by projections of a change at the top post, currently occupied by Governor Sahap Kavcioglu. Like Erdogan, Kavcioglu has championed low interest rates, cutting the benchmark rate to 8.5% from 19% during his tenure even as inflation accelerated to a 24-year high above 85% last year. Hafize Gaye Erkan, a banking executive in the US, is a potential candidate for governor and met Simsek on Monday in Ankara, people with knowledge of the discussions told Bloomberg. Erkan worked for nearly a decade at Goldman Sachs Group Inc. and she’s the former co-CEO of San Francisco based lender First Republic Bank. Just over a year after her departure from First Republic, it became the second-biggest bank failure in US history. Simsek and his team will face an uphill battle, with the lira’s weakness adding to elevated inflationary pressures ahead of local elections next year. Despite headline inflation’s slowdown last month, core inflation accelerated. “We expect the government’s pricing and tax policies, together with pre-election and quake related fiscal spending and an accommodating monetary policy stance, to add to inflationary pressures going forward. As such, we forecast price gains to move back above 40% in the summer and end the year at 43%,” economist Selva Bahar Baziki said. Goldman Sachs Group Inc analysts recently revised their forecast for the dollar-lira pair higher, citing increased pressure on the currency. The bank sees the lira depreciating to 28 per dollar in 12 months, compared with a previous projection of 22, according to a report dated June 3. The options market is currently pricing about an 80% chance that the lira will hit 25 per dollar within the next three months, and a more than 60% chance that it could hit 27 per dollar. |
https://theedgemalaysia.com/node/662625 | Keihan Real Estate to launch The Fine Tower Osaka Higobashi this month | English | This article first appeared in City & Country, The Edge Malaysia Weekly on April 10, 2023 - April 16, 2023 Japan-based property developer Keihan Real Estate Co Ltd is poised to launch The Fine Tower Osaka Higobashi in Nishi-ku, Osaka, this month. In Malaysia, the high-rise apartment tower will be launched in collaboration with JLL Property Services (Malaysia) Sdn Bhd on April 15 and 16. The development is the latest addition to the developer’s Fine condominium series. Keihan Real Estate director Takashi Imanaga says, in terms of design concept, the tower offers a façade and finishing that are modern-classical. “The tower’s design matches the atmosphere of the [surrounding] area, where there are many properties that have Western architecture. With our latest tower, the area [will have an atmosphere that is] a mix of modern and retro-nostalgic,” Imanaga tells City & Country in an email interview. “Keihan Real Estate has a successful track record of developing our Fine condominium series not only in our home ground, which is the Osaka region, but also in other cities such as Tokyo and Sapporo.” Keihan Real Estate is a subsidiary of Keihan Holdings, which is listed on the Prime Market of the Tokyo Stock Exchange. Keihan Holdings started its business in 1906 with railway development, connecting Kyoto and Osaka. It now has more than 50 companies in transportation and property development as well as hotel, retail and leisure facility operations. The 34-storey Fine Tower Osaka Higobashi occupies a 1,989.37 sq m freehold tract and will comprise 197 apartments, which will come in three layouts: 42 sq m, one-bedroom units; 56 sq m, two-bedroom units; and 106 sq m, three-bedroom units. The selling prices will range from ¥44.1 million to ¥245.2 million (RM1.46 million to RM8.12 million) and the maintenance fee is inclusive of a sinking fund of ¥19,180 to ¥50,310. The units will be equipped with oak main doors and the common corridors will be fitted with carpets. The lobby and elevator area will feature two-layered granite walls and black marble, showcasing a high-end living standard, says Imanaga. The development will also have 550 sq m of green space. Imanaga says selected trees and plants were chosen to showcase Japan’s four seasons. Facilities at The Fine Tower Osaka Higobashi include a garden with a fountain that will be lit up at night, a residents’ lounge and a party room. To ensure the safety of residents, Imanaga says, the building will have a seismic isolation structure, which minimises earthquake damages and after-effects. He adds that Keihan Kind Co Ltd, a subsidiary of Keihan Holdings, will be in charge of the maintenance and management of the tower. The developer is targeting both local and international buyers for The Fine Tower Osaka Higobashi. Jones Lang LaSalle KK (Japan) director of capital markets Meg Tang says the majority of Japanese property buyers have been owner-occupiers. “For this project, however, we see quite an equal number of buyers who are owner-occupiers and investors because of its prime location and the potential for growth in the area. Nishi-ku has been gaining popularity because prices there are still reasonable among the central wards of Japan and yet it has good connectivity,” she says. Tang adds that there has been no new supply of residential properties in the area for the past few years. “Comparable properties would be those completed from 2013 to 2017, which are currently reselling at a similar per sq m rate as this project. Compared to similar projects in Yodoyabashi East, The Fine Tower Osaka Higobashi would be 12% to 18% more expensive.” Meanwhile, JLL head of sales (international residential) Chong Shu Ling says the local consultancy firm provides rental schemes for Malaysian buyers. “A third-party company that JLL has been working with for more than nine years will provide bilingual rental support services. Both guaranteed and non-guaranteed rental schemes are available for interested Malaysian buyers.” The area in which The Fine Tower Osaka Higobashi is being developed is adjacent to established neighbourhoods such as Yodoyabashi, Nakanoshima and Umeda, which Japanese authorities have listed as urban renewal areas. Nishi-ku comprises mainly office and residential properties, says Jones Lang LaSalle’s Tang. “Though it’s within walking distance of Osaka’s financial district of Yodoyabashi, Nishi-ku has a more tranquil, liveable environment. There are classic and old-school shops and buildings nearby that have been converted into trendy businesses. To the south of the property, there are many eateries ranging from street food to three-Michelin star restaurants. “To the north is Nakanoshima, an area comprising public facilities and commercial components along the Tosahori River. There are also museums, a convention hall, hospitals and city offices in the area,” Tang adds. Aside from these amenities, the area will also witness the development of the new Naniwasuji Line, an underground heavy rail line under construction that will run north-south through Osaka. One of its stations will be a six-minute walk from The Fine Tower Osaka Higobashi. JLL’s Chong says the new line is being developed by West Japan Railway Co and Nankai Electric Railway Co Ltd to connect the Yamatoji Line and Nankai Main Line with the Shin-Osaka bullet-train station. “It will provide direct access from Kansai International Airport to Umeda as well as Shin-Osaka Station connecting gateways for overseas and domestic travel. Currently, to go from Kansai International Airport to hotels in Umeda, you would have to change trains at Namba. With the new train line, there will be no need to change trains, which would shorten travel time,” she says. Other means of travelling include the Osaka Metro Yotsubashi Line (Higobashi Station), which is a four-minute walk away; the Osaka Metro Midosuji Line (Yodoyabashi Station), which is a nine-minute walk away; and the Keihan Line (Nakanoshima Station), which is about 10 minutes’ walk away. Chong says the Japanese property market has been self-sustaining during the pandemic. “Now that Japanese borders are open, more international travel and attention are returning to Osaka. Based on data from the Japan National Tourism Organisation, Osaka was the most visited prefecture for leisure and sightseeing in 2019. Osaka is also undergoing infrastructure upgrades to welcome international events in 2025, such as the World Expo and a potentially integrated resort with a casino. So, we’re expecting positive growth in the area.” 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/644937 | BN-PH discussion did not include Zahid's court cases, says Anwar | English | KUALA LUMPUR (Nov 21): The court cases of Umno president and Barisan Nasional (BN) chairman Datuk Seri Dr Ahmad Zahid Hamidi did not surface in the discussion to form a Pakatan Harapan (PH) and BN coalition government, said PH chairman Datuk Seri Anwar Ibrahim on Monday (Nov 21). "There was no reference at all to the issue of the present or anticipated charges. He (Zahid) stressed on the importance of governance, of inclusiveness and unity, which we agreed on, and the focus on the economy," Anwar told a press conference held at the Seri Pacific Hotel in Kuala Lumpur. "I want to make it very clear: This was not raised at all either in private meetings or the formal meetings," Anwar added. In September, Zahid, 69, was acquitted of all 40 graft charges in the foreign visa system case. However, he is still facing 47 charges, including 12 for criminal breach of trust, eight for corruption and 27 for money laundering involving RM31 million of Yayasan Akalbudi funds. Anwar emphasised that the negotiation with BN is on the formation of government (executive) and has no relation to the judiciary, which he said should be independent from the executive branch. Anwar also said that BN did not have any "unreasonable conditions" imposed and that he was "extremely pleased" with the meeting between the top BN and PH leaders held on Monday morning. He said he presently remains the prime minister candidate if BN agrees to work with PH. "They did not suggest any other name in the discussion. But my preferred choice over deputy prime minister... let me assume the premiership first," Anwar said. In regard to the open defiance of BN treasury general Datuk Seri Hishammuddin Hussein against BN's partnership with PH, Anwar said he believes Hishammuddin has since "revised his views". "My response to that is there is no DAP government here or a PH government. It is a coalition government, unity government. So I believe he has now revised his views," Anwar said. Earlier, Hishammuddin posted on his Facebook page that he would rather be sacked by his party than to change his stance on "no Anwar, no DAP". When asked about the possibility of a conflict between PH and BN due to the issues raised by both coalitions during the campaigning season for the 15th general election (GE15), Anwar said PH will have to "proceed to form an inclusive government". Despite coming out as the biggest bloc with 82 parliamentary seats from the GE15, Anwar said PH still "requires the support of parties". "The key and fundamental issue here is the non-compromise of the issue of governance and focus on economy. Then we have to keep moving on, as we said, to save the country," Anwar said. He also said that PH is open to working with the Sabah and Sarawak parties, referring to Gabungan Rakyat Sabah (GRS) and Gabungan Parti Sarawak (GPS), but added that the main partner would be BN. BN, which won 30 parliamentary seats in GE15, has yet to make a final decision on whether to support the formation of the federal government together with PH or with Perikatan Nasional, GRS and GPS. Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah on Monday granted an additional day for all leaders of political parties and coalitions to inform Istana Negara of the agreed combination of political parties to form the next government, as well as to submit the name of their prime minister candidate. Get our comprehensive GE15 coverage here. |
https://theedgemalaysia.com/node/661195 | BNM: US banking crisis impact on Malaysian equity market ‘moderate and short-lived’ | English | KUALA LUMPUR (March 29): The recent global market volatility due to concerns in the banking sector of some advanced economies had minimal impact on the Malaysian financial markets beyond some weakness observed in the domestic equity market, said Bank Negara Malaysia (BNM). The central bank added that it remains vigilant of potential spillover risks from the global banking sector to the domestic financial markets. “Renewed uncertainty over the pace of US monetary policy tightening amid a persistent increase in inflation and the failure of some US banks in the first quarter of 2023, has dampened the performance of equity markets globally, including Malaysia’s,” said BNM in its Economic and Monetary Review and Financial Stability Review 2022 reports. The US Federal Reserve lifted the benchmark interest rate by 0.25 percentage points to a target range of 4.75% to 5% last week. BNM added: “While the risk-off sentiment among investors due to concerns in the global banking sector has placed some pressure on the domestic equity market, especially the banking counters, the impact was nevertheless moderate and short-lived”. The collapse of several banks in the US in mid-March, followed by the Credit Suisse crisis in Europe, sent markets tumbling all around the world. On the home front, the FBM KLCI suffered its largest single day decline of 1.97% on March 14 to 1.393.83. It was the first time the index fell below the 1,400 mark this year, signalling investors’ shaky confidence. Don't miss the other highlights of the BNM Annual Report 2022. Read the articles here. |
https://theedgemalaysia.com/node/674691 | Belanjawan 2023 Fuelling Malaysia’s SMEs for a Successful and sustainable future | English | In recent years, we have seen a rapidly growing momentum on corporate climate action. Investors, customers, regulators and other key stakeholders increasingly expect companies to undertake ambitious efforts to minimise their environmental impact and reach the goals of the Paris Agreement. In fact, there is also a growing expectation for small and medium enterprises (SMEs) to implement environmental, social and governance (ESG) initiatives and be transparent about their performance. This will be increasingly important for SMEs to maintain their competitive advantage and stay ahead of compliance requirements. Unfortunately, despite the Malaysian government’s efforts in educating businesses on the importance of ESG, the country’s SMEs still lack the required awareness of its significance. Failure to adapt to the times could see these businesses lose their competitive advantage and market share, and they would not be able to be part of the supply chains of larger corporations, especially when it comes to exports. This is because multinational corporations are increasingly requiring their suppliers to adhere to ESG standards and have the required certifications. Thus, SMEs that take the initiative to “green” their operations would have the upper hand, not only in being able to attract more customers but also in making their businesses more sustainable. Implementing sustainability practices is now business-critical for every company, whether large or small. This brings challenges but also opportunities. When it comes to ESG, most companies assume that it is just good for the environment and to reduce climate change. However, what these companies fail to see is that it also has a direct impact on their business operations. Apart from providing SMEs with a competitive advantage, investing in ESG practices would also help them future-proof their business. There is increasing pressure on organisations of all stripes to adopt such practices, most notably from economies such as those of the European Union and the US. Countries and companies that are not ESG-compliant are likely to find themselves facing embargoes or higher barriers to entry. In contrast, those that make the integration of ESG practices a priority would have more opportunities to expand into new markets in such high-income countries, where consumers often willingly pay a premium for products that meet green standards. This is on top of benefits such as being able to make a positive social and environmental impact, elevating a company’s reputation, increasing customer satisfaction and improving stakeholder relationships. Furthermore, as financial institutions move full steam ahead with ESG to mitigate climate and environmental risks, SMEs that are not on board with the sustainability agenda will face difficulties in accessing capital. For SMEs, sustainability practices should be woven into their mission statement and purpose as a company. Many firms would look at their internal operational sustainability first — for example, using less energy or paper, or producing less waste. As sustainability develops within a company, it will grow to encompass risk management and the needs of stakeholders, from customers and suppliers to investors. With SMEs still experiencing the after-effects of disruptions caused by the Covid-19 pandemic, the government understands that companies are mainly focusing on business survival, of which cash flow is a key issue, while neglecting non-business-related matters without near-term benefits. Thus, the government, through Belanjawan 2023, has introduced several financing initiatives to encourage green practices in businesses. Bank Negara Malaysia is providing up to RM2 billion in financing facilities to support sustainable technology start-ups and help SMEs implement low carbon practices. With the whole world transitioning from a carbon-heavy economy to a green economy, businesses need to get with the times by developing products and services that can address the needs of a more sustainable world. Thus, this RM2 billion in financing facilities will go a long way in supporting start-ups in their journey to achieving such goals. Meanwhile, Khazanah Nasional Bhd is providing RM150 million to spur the development of environmentally friendly projects, including supporting the carbon market and reforestation. To support this drive even further, the Green Technology Financing Scheme (GTFS) has been enhanced, with the guarantee value increased to RM3 billion until 2025. The GTFS is a special financing scheme introduced by the government to support the development of green technology in Malaysia. The funds are available to finance green technology in various sectors, including energy, water, building and township, transport, waste and manufacturing. While ESG practices are often associated with larger firms and global corporations, its significance for SMEs cannot be underestimated. With Belanjawan 2023 having a strong emphasis on ESG activities, the stage is set for SMEs to embrace sustainable practices and unlock their true potential. Companies with a robust ESG record tend to have a stronger corporate brand value, which would attract both good quality employees and investors. Such companies also tend to perform better financially through a greater focus on innovation, operational efficiency and risk management. Conversely, firms that fail to act on their ESG aspirations could risk losing investor interest, as well as alienating customers and top-notch talent, especially among the younger generation. Ultimately, ESG will only become more important to the success of any business, including SMEs. Companies that fail to meaningfully incorporate sustainability practices in their operations and supply chains risk becoming irrelevant. Meanwhile, SMEs that prioritise ESG now can look forward to a more successful and sustainable future. |
https://theedgemalaysia.com/node/636874 | Opcom proposes to diversify into telecommunication network business | English | KUALA LUMPUR (Sept 19): Fibre optic cable manufacturer Opcom Holdings Bhd has proposed to diversify its business to include the provision of telecommunication network infrastructure solutions.
The group said it is buying the entire equity interest in T&J Engineering Sdn Bhd (TJE) from T&J Assets Holdings Sdn Bhd at a price of up to RM90 million, to be paid via a combination of cash (30%) and new shares (70%).
TJE provides telecommunications network infrastructure solutions, encompassing civil, as well as mechanical and electrical engineering telecommunication infrastructure deployment.
The firm has been sub-awarded contracts for the implementation of Jalinan Digital Negara (Jendela) Phase 1 project in multiple locations across Sarawak, added Opcom in a filing with Bursa Malaysia.
The group expects the telecommunication network business to contribute 25% or more of Opcom’s net profits.
Opcom executive director Ong Soon Lim said the acquisition will enable the group to offer more comprehensive solutions for the telecommunications industry, ranging from fibre optic cables to telecommunication network infrastructure solutions.
“Further, the proposed acquisition and diversification will provide Opcom with an opportunity to enlarge its footprint in East Malaysia,” he said in a statement. |
https://theedgemalaysia.com/node/655737 | Cooler conversations: Doubt cast on Verra’s carbon credits | English | This article first appeared in The Edge Malaysia Weekly on February 20, 2023 - February 26, 2023 One of the most talked about news articles in January was an investigation by The Guardian, Die Zeit and non-profit SourceMaterial into the veracity of Verra’s rainforest carbon offset credits. Essentially, the journalists accused Verra of overstating the emissions reductions generated from its “avoided deforestation” carbon credits. Carbon credits are generated from projects that avoid, reduce or eliminate carbon emissions. Businesses and other entities purchase the credits to offset their own emissions. To purchase valid credits, they often seek those certified by well-known bodies like Verra. An “avoided deforestation” credit would be generated by keeping a forest that is not already protected from being cleared. Verra is one of the biggest certifiers of carbon credit projects globally. Huge corporations like Shell, Gucci, Disney and Netflix have bought their credits to offset emissions. In Malaysia, Bursa Malaysia has mentioned plans to use Verra-certified credits in the voluntary carbon market. The journalists analysed Verra’s projects and concluded that at least 90% of them demonstrate “no benefit to climate” and could contribute to global warming rather than reduce it. They cited peer-reviewed studies by scientists who used satellite imagery to verify the impact of these rainforest projects and travelled to see some of Verra’s largest projects in Peru. The journalists said at Verra’s flagship project in Peru, they were shown videos by residents of their homes being destroyed by authorities who wanted to evict the residents for the sake of a carbon offset project. Verra strongly disputes the findings. It argues that the studies ignore project-specific factors that cause deforestation. The criticisms of its methodology have already been addressed by a review, it says. The core of the disagreement comes from calculating the baseline emissions from the project and, subsequently, the impact. If the project did not occur, what is the risk of deforestation for that particular plot of land? From that assumption, the number of emissions avoided by implementing the projects can be calculated. This methodology is being challenged by journalists and scientists, who argue that the threat of deforestation in a business-as-usual scenario has been overstated. The calculation of emissions avoided through carbon offset projects can get technical. It is difficult to figure out whether it is greenwashing unless someone truly understands how the credits are calculated and visits the site itself to see the progress. In response to the article, some parties have called for a change to the incentive structure of verifying, auditing and purchasing carbon credits, as well as a common methodology for calculating the impact of carbon offset projects. ESG reached out to Bursa Malaysia for a response. The regulator said it is cognisant that international carbon standard providers like Verra are continuously improving their methodologies. “For example, the exchange is aware that Verra has already shortened the reassessment of project baselines from 10 to six years. Verra is also consolidating the multiple methodologies for avoided deforestation projects and adopting a jurisdictional approach, which will help to improve the robustness of the methodology,” said Bursa Malaysia in an email response. It stressed that, given the climate urgency, the precautionary approach must be taken and cost-effective measures to prevent environmental degradation should not be postponed. “The exchange will be organising forums with international carbon experts to share their independent views and perspectives on this matter to raise awareness to all stakeholders, both purchases and developers, to ensure high-quality carbon credits are traded on our platform,” it added. Regardless, as demand for carbon offsets increases, accusations of greenwashing are expected to rise and more debate over valid carbon credit projects will emerge. 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/638625 | HCK Capital to revive Empire Remix 1 in Subang Jaya, confirms The Edge’s report | English | KUALA LUMPUR (Oct 3): HCK Capital Group Bhd announced that it will take over the incomplete property development project — Empire Remix 1 — in Subang Jaya. This is the second abandoned project that the company has taken over there. The property developer’s wholly-owned subsidiary Subang Sentral Developments Sdn Bhd has entered into a joint venture agreement (JVA) with the land owner Projek Muara Sdn Bhd and its subsidiary Dergahayu Sdn Bhd for the former to complete the development, according to HCK’s filing to Bursa Malaysia. The company’s announcement confirms The Edge Malaysia weekly’s article titled “HCK Capital being asked to help save Empire Remix 1 in Subang Jaya’s USJ1”. The Edge Malaysia weekly reported that the ailing project is located across the road from Empire Remix 2, which has been renamed as Edumetro. HCK may have to pump in as much as RM900 million for the construction and infrastructure to complete Empire Remix 1, whose estimated gross development value (GDV) was at RM2.3 billion at the launch in 2012. On its latest move, HCK said the JVA came after original developer True Renaissance Development Sdn Bhd, a unit of Mammoth Empire Holding Sdn Bhd, was not able to complete the development. True Renaissance had agreed to use the court-sanctioned Corporate Voluntary Arrangement scheme to obtain its creditors’ approvals in allowing the appointment of Subang Sentral as the white knight to complete Empire Remix 1 project, said HCK. True Renaissance’s creditors in this scheme are mainly made up of owners of sold units of the project. By taking over this project, HCK is able to broaden its earnings base and expand the group’s property-related businesses, it said. “This is in line with HCK’s intention to continuously seek suitable and viable acquisition opportunities which may include, among others, joint venture projects, acquisition of land bank, and property projects to further expand the property-related businesses of HCK. “The total development revenues, costs and expected profits to be derived from the JV development have yet to be finalised at this juncture, as the detailed development plan and the proposed amendments to it are pending finalisation with the relevant authorities,” it said. HCK’s share price closed unchanged at RM2.15 per share on Monday (Oct 3), giving it a market capitalisation of RM977.33 million. |
https://theedgemalaysia.com/node/668098 | HLIB upgrades Petronas Dagangan, raises target price to RM22.77 | English | KUALA LUMPUR (May 23): Hong Leong Investment Bank (HLIB) Research has upgraded Petronas Dagangan Bhd (PetDag) to “hold” at RM22.40 with a higher target price (TP) of RM22.77 (from RM19.12) and said PetDag reported first quarter of 2023 (1Q2023) core profit after tax and minority interest (Patami) of RM298.9 million (+67% quarter-on-quarter, +136% year-on-year), which came in above expectations, accounting for 39% of house’s full-year forecast and 37% of consensus. In a results review note on Tuesday (May 23), HLIB said the key variance against house estimates was mainly due to a stronger-than-expected showing from the group’s profit margins — believed to be due to favourable price movements from the Mean of Platts Singapore (MOPS) product price assessments by Platts throughout the quarter. “We think that PetDag will continue to be a beneficiary of the ease of restrictions on local and international travel — which is expected to boost consumer spending, further revival in the tourism industry, and investment in local infrastructure projects in 2023. “Post-revision of our earnings forecasts, we upgrade PetDag to 'hold' with a higher TP of RM22.77 (from 'sell' with a TP of RM19.12 previously) — pegged to a multiple of 23.5 times on revised rolled-over FY2024 forecast EPS (earnings per share), which is at parity to its five-year mean valuation,” it said. |
https://theedgemalaysia.com/node/605430 | Lotte Chemical Titan’s 4Q earnings surge 283% q-o-q to RM186.84m | English | KUALA LUMPUR (Jan 27): Lotte Chemical Titan Bhd’s (LCT) net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) surged 283% to RM186.84 million quarter-on-quarter (q-o-q) from RM48.84 million, mainly due to tax income arising from reversal of tax expenses. Earnings per share (EPS) increased to 8.2 sen compared with 2.14 sen in the immediate preceding quarter, according to its filing with Bursa Malaysia. LCT’s quarterly revenue grew 20.03% to RM2.7 billion from RM2.24 billion in 3QFY21, mainly due to higher sales volume in its olefins, derivative and polyolefin products. “Profit from operation decreased by 65% to RM35.6 million from RM102.2 million in 3QFY21, mainly due to higher feedstock costs and margin squeeze. However, this impact was offset by the one-off gain on disposal of investment of RM101 million from LC USA. As such, profit before tax in 4QFY21 has remained comparable with 3QFY21 at RM147 million,” said the group. On a year-on-year basis, the company’s net profit rose 23.6% from RM151.16 million, while revenue climbed 39.63% from RM1.92 billion a year ago. For the full financial year ended Dec 31, 2021 (FY21), the group’s cumulative net profit stood at RM1.06 billion, surging by 612% from RM148.59 million. Full-year revenue grew 42.45% to RM9.83 billion from RM6.9 billion in the previous year, while EPS grew to 46.49 sen from 6.54 sen. The improvement is chiefly due to the much higher key products margin spread observed in 2021, on the back of significantly higher average product selling prices, noted the group in a statement. This was due to higher overall market demand supported by global reopening and post-pandemic economic recovery, as well as supply disruptions to the region due to shipment constraints. In addition, the company’s performance is further supported by a performance turnaround in its US associate’s operations on the back of improved operating performance with better product margin spread. Its earnings before interest, tax, depreciation and amortisation rose to RM1.65 billion, an almost 100% increase from RM830 million booked during the same period last year. Meanwhile, operating profit expanded four-fold to RM1.1 billion from RM272 million on better revenue. “At the same time, the company also generated strong operating cash flows amounting to approximately RM1.2 billion for the financial year,” it said. The company has said it will review the final dividend payable for FY21 at a later date. On top of its regular dividend schedule, LCT had earlier declared and paid the first-ever special dividend of 18 sen per ordinary share in November 2021. Following the successful completion of statutory turnaround activities involving a cracker plant and a polyethylene plant in Malaysia, the group’s operating rate for its complex has improved to 88% in 4Q, from 76% in the previous quarter. Meanwhile, 2021’s operating rate rose to 84% from 82% a year ago. Looking ahead, LCT’s president and CEO Park Hyun Chul said the company is cautiously optimistic on the petrochemical market outlook with some balancing factors weighing on the sector. Given that its naphtha feedstock correlates with the crude oil outlook, rising global crude oil price will notably be an area of concern, Park said. “In addition, there are new additional domestic capacity expected to come online this year, which potentially have downward pressure on the product prices. On the other hand, stable demand with the easing of lockdown measures, coupled with freight constraints and regional supply disruptions would lead to firm footing for the overall product prices.” “As the petrochemical sector moves in tandem with economic growth, it would likely be supported by the continued global economic recovery projected for 2022. Nonetheless, recent flaring up of the new Omicron variant which is spreading across the world will need to be monitored closely. As such, we would expect elements of volatility to remain for the petrochemical sector moving into 2022,” he explained. Park also noted that its LOTTE Chemical Indonesia New Ethylene (LINE) project in Merak, Cilegon, and Banten Province, Indonesia, is slated to commence construction by this year and be completed by 2025. LINE is a joint venture between LCT and its parent company Lotte Chemical Corp. The company will continue to focus on operational and financial performance optimisation initiatives to brace for the volatile and ever-changing external environment, added Park. “We will continue to be vigilant and explore value-accretive opportunities to further drive our growth, while at the same time remain steadfast to focus on our key growth strategies as we seek to become a top-tier petrochemical company in the Southeast Asia region,” according to him. At the time of writing on Thursday (Jan 27), LCT shares went down three sen or 1.33% to RM2.22. The company has a market capitalisation of RM5.13 billion. |
https://theedgemalaysia.com/node/645057 | Yinson set to rebound towards 10-week high, says RHB Retail Research | English | KUALA LUMPUR (Nov 22): RHB Retail Research said Yinson Holdings Bhd is set to rebound towards its 10-week high as it bounced off its 21-day average line while reclaiming above the RM2.22 previous breakout – this follows the recent pullback. In a trading stocks note today, the research house said that since it has formed a “higher low” bullish pattern above the average line, the bullish momentum above the breakout level may continue to dominate – propelling the stock towards the 10-week high of RM2.37, which was Sept 15’s high. “This is followed by RM2.52, ie the highest level since Jan 13. “Conversely, the momentum may lose steam if the counter falls below the RM2.18 support, forming a “lower low” bearish structure beneath the average line,” it said. |
https://theedgemalaysia.com/node/660483 | Pasukhas accepts increase in contract value for construction project in Penang | English | KUALA LUMPUR (March 23): Pasukhas Group Bhd said the value of the contract the group won last year to undertake concrete substructure works for the head building of
the Dexcom Malaysia Factory 3 project in Penang has been increased to RM12.7 million from RM7.08 million. The group said in a bourse filing that it has accepted an amendment to its agreement with Exyte Malaysia Sdn Bhd to revise the contract value agreed to in August 2022. Another amendment involved the final acceptance date being extended to June 30 from Jan 9. Pasukhas' share price closed 0.5 sen or 50% higher at 1.5 sen, giving the group a market capitalisation of RM21.43 million. |
https://theedgemalaysia.com/node/671992 | Asean must hold Myanmar junta accountable — UN expert | English | JAKARTA(June 21): Southeast Asian neighbours of conflict-riven Myanmar must consider imposing measures to hold its military rulers accountable, a United Nations expert said on Wednesday (June 21), adding the bloc is "deadlocked" over how to resolve the ongoing crisis. United Nations Special Rapporteur on the human rights situation in Myanmar, Thomas Andrews, said the Association of Southeast Asian Nations (Asean) must not engage with Myanmar's military leaders as there had been no progress in implementing a five-point peace plan agreed between the bloc and the junta after it seized power in a 2021 coup. "It is time to consider alternative options to break what has become a deadly stalemate," he said at a press conference in Jakarta. "Asean must consider measures to impose accountability on the junta for its grave human rights violations and blatant disregard for implementation of the Five-Point Consensus." The peace plan calls for an immediate halt in hostilities, safe humanitarian access, and inclusive dialogue to achieve peace in the strife-torn country. In November, an Asean leaders' summit issued a warning to Myanmar's junta and concluded a need for "concrete, practical and measurable indicators with a specific timeline." But frustration has grown over a lack of progress and the junta's stepped-up attacks on opponents. Andrews' remarks come as Thai media reported the US plans to slap fresh sanctions on state-owned Myanmar banks and on the heels of this week's Thai-hosted gathering of regional diplomats aimed at re-engaging junta leaders, who have been barred from high-level Asean meetings. The Thai meeting was shunned by key Asean countries, including chair Indonesia, which has led behind-the-scenes efforts to bring the military and its opponents together for dialogue. Andrews said the meeting in Thailand "can have the dangerous effect of legitimising the junta and undermining Asean unity". Read also:
US to slap new sanctions on Myanmar state-owned banks — sources
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https://theedgemalaysia.com/node/658812 | EPF dividend for year 2022 has been announced! Here are top things you can do with it. | English | The Employees Provident Fund (EPF) recently declared a dividend rate of 5.35% for Conventional Savings and 4.75% for Syariah Savings for year 2022, with total payout amounting to RM51.14bil.1 Whilst dividend payout for Year 2022 may be lower than 2021, it is still higher than 2020 and it still indicates positive returns in savings for contributing EPF members. Here are top things you can do to manage your EPF savings and returns to grow your wealth: Investors can take charge of their retirement savings by re-investing a portion of your EPF savings via EPF’s i-Invest. By investing with Principal through this method, you will have diversification opportunities with over 20 EPF-approved Global, Regional and Domestic funds with various asset classes. Here are our recommended investment strategy investors can use to identify growth pockets2: It is said that RM145.5bn was withdrawn from members’ accounts during the Covid-19 pandemic3, which caused a drop in median savings. In the recent re-tabling of Budget 2023, the Malaysian government has made minor amendment to the current income tax relief that will allow Malaysians to claim tax reliefs for EPF self-contribution. This will allow EPF members to enjoy tax relief of up to RM4,000 for statutory EPF contributions.4 Understand your time horizon, risk tolerance and investment goals before choosing. For example, apart from voluntary EPF contribution and diversification of EPF savings via i-Invest, you can also look at investing in Private Retirement Scheme Fund (PRS). You can also enjoy up to RM3,000 tax rebate on PRS contributions until 2025. Your retirement plans will determine how much you will need in save and invest. The general rule of thumb is to review and rebalance at least once every 6 months or once every quarter. Here are also 4 scenarios you can consider before rebalancing your portfolio: Investing your EPF savings is a good start to diversifying your investment portfolio. It gives you greater control over where your savings are invested in, and it can also help you reach your retirement goals. Here are our recommended funds. Begin investing with a minimum of RM10,000 and you’ll get up to RM188 Touch ‘n Go eWallet Reload PIN as your reward. Invest with 0% sales charge (for investments using EPF savings). Use offer code “Invest&Grow”. Valid from now till 31 March 2023. T&C apply. Find out more about the offer here Disclaimer:
You are advised to read and understand the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) before Investing. Among others, you should consider the fees and charges involved. The registration of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) with the Securities Commission Malaysia (SC) does not amount to nor indicate that the SC recommends or endorses the funds. A copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) may be obtained at our offices, distributors or our website at www.principal.com.my. The issuance of any units to which the relevant Prospectus, Information Memorandum and/or Disclosure Document relates will only be made on receipt of an application referred to in and accompanying a copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document. Please be advised that investment in the relevant unit trust funds, wholesale funds and/ or private retirement scheme carry risk. An outline of the various risk involved are described in the relevant Prospectus, Information Memorandum and/or Disclosure Document. As an investor you should make your own risk assessment and seek professional advice, where necessary. Securities Commission Malaysia does not review advertisements produced by Principal. Sources: |
https://theedgemalaysia.com/node/601933 | Inta Bina bags RM79.8 mil contract for housing scheme in Beranang | English | KUALA LUMPUR (Dec 30): Inta Bina Group Bhd said its unit Inta Bina Sdn Bhd has bagged a contract worth RM79.8 million from Eco Majestic Sdn Bhd to build 149 double-storey houses of various sizes for a gated and controlled community housing scheme (strata property) in Precinct 6 in Beranang, Hulu Langat, Selangor. The project, which will include the construction of two power substations, will start on Jan 5 and be completed in 20 months, according to Inta Bina's bourse filing on Thursday (Dec 30). The construction group expects to finance the project using internal funds or external borrowings. Inta Bina's shares closed unchanged at 26.5 sen on Thursday, giving the group a market capitalisation of RM139.22 million. |
https://theedgemalaysia.com/node/665222 | Frankly Speaking: No room for Sheraton Move 2.0 | English | This article first appeared in The Edge Malaysia Weekly on May 1, 2023 - May 7, 2023 There is no place for politics as the global economy braces itself for a slowdown and possible recession. The US, which is the world’s largest economy, recorded growth of 1.1% in the first quarter, much lower than the 2.6% in the preceding quarter and economists’ expectations of 2%. China, the second-largest economy, chalked up a 4.5% growth in the first quarter, which is below the government’s full-year target of 5%. The trend is the same for other countries. Malaysia’s growth rate this year is likely to be between 4% and 5%, much lower than the 8.7% recorded in 2022. The global economy is firmly locked in slowdown mode. In the worst-case scenario, it could tilt into a technical recession or two quarters of negative growth. During trying economic times, political manoeuvring should take a back seat. Sadly, this is not the case in Malaysia. During the Hari Raya festivities, the rumour mill was working overtime over a possible attempt to topple the current unity government led by Pakatan Harapan’s Datuk Seri Anwar Ibrahim. The scheme supposedly was for some members of parliament from Barisan Nasional to resign and force by-elections, hence destabilising the government. The speculation was so intense that it prompted reactions from MCA president Datuk Wee Ka Siong as well Deputy Prime Minister Datuk Seri Fadillah Yusof. Both denied any moves to topple the current government. Malaysia’s lack of political stability between May 2018 and November last year took a huge toll on the economy and business confidence. During the period, the country saw a succession of three prime ministers take charge in Putrajaya, each without a two-thirds majority. Each time a new person headed the cabinet, there were changes to the line-up and, consequently, government policies. Since last November, a unity government has been in charge in Putrajaya, commanding a two-thirds majority in parliament and led by Anwar. After more than four years, there is finally some political stability in Malaysia. The Anwar government has promised not to dig into past contracts entered into by the previous government, which works well for the business community. Apart from that, he has always promised to beef up government finances and put in place a new framework and policies to attract foreign investments. When the global economy recovers, which could be at the end of this year, capital flows will resume. Money will go to places where there are growth potential, good policies and political stability. Malaysia has a short window of opportunity to get its act together. It starts with the current government proving to investors that it is here to serve the full term. The time frame in which to send the message is short. There really is no room for Sheraton Move 2.0. 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/621443 | Serba Dinamik top active counter, up 20% | English | KUALA LUMPUR (May 26): Serba Dinamik Holdings Bhd was the top most active counter on Bursa Malaysia on Thursday morning (May 26) and its share price was up 20% or two sen to 12 sen. Trading volume stood at 68.2 million shares as at the time of writing. On Wednesday, Bursa filings showed that Serba Dinamik group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah had been forced to sell more shares in the company — this round involving 16.99 million shares representing a 0.458% stake. The filings showed that the forced disposal of the shares was done in two blocks of 3.54 million and 13.45 million shares on Monday and Tuesday respectively. The filings also showed that the latest round of forced selling trimmed his stake in Serba Dinamik to 20.368% or 755.57 million shares. A few weeks ago, Serba Dinamik and its four top executives that included Mohd Abdul Karim were given a discharge and acquittal after paying RM16 million in compounds issued by the Securities Commission Malaysia (SC). The discharge and acquittal were for the charge by the SC under Section 369(a)(B) of the Capital Markets and Services Act for submitting a false statement involving revenue of RM6.01 billion for the financial period ended Dec 31, 2020. Read also:
Serba Dinamik will send further draft of terms of consideration to its debt to creditors later on Wednesday, says counsel
Serba Dinamik MD Abdul Karim forced to sell more shares |
https://theedgemalaysia.com/node/633303 | MSM Malaysia posts third straight loss-making quarter on high input costs | English | KUALA LUMPUR (Aug 22): Sugar refinery operator MSM Malaysia Holdings Bhd posted its third straight quarterly net loss due to high input costs. Net loss widened by 23% quarter-on-quarter to RM34.07 million for the second quarter ended June 30, 2022 (2QFY22), while the group fell into the red after posting a net profit of RM13.47 million a year ago, MSM Malaysia's stock exchange filing showed.
This is despite revenue growing 13% to RM624.2 million in 2QFY22, from RM554.1 million a year ago, due to higher overall average selling price. For the first half of this year (1HFY22), the group posted a net loss of RM61.8 million, versus a net profit of RM44.7 million in the previous corresponding period, while revenue grew 14% to RM1.2 billion, from RM1.1 billion. Going forward, the group said domestic and export markets are seeing stronger demand, which provide growth opportunities and recovery of product consumption including sugar, across consumer and industrial segments. “MSM will ensure consistent supply of sugar is made available to the market. The group remains focused on meeting these demands by improving our operations to attain lower refining costs with higher efficiency, and simultaneously continues to engage the government for all necessary economic support,” it said. Nonetheless, MSM, which is 51%-controlled by FGV Holdings Bhd, said it recognises the current challenging environment amidst high input costs, mainly from raw sugar, freight, natural gas and the weakening of the ringgit. “Other input costs such as packaging materials, wages and inland logistics have also increased significantly,” it said. Shares of MSM, which fell about 28% year-to-date, closed one sen or 1.11% lower at 89 sen per share on Monday (Aug 22), giving it a market capitalisation of RM625.65 million. |
https://theedgemalaysia.com/node/650329 | US surges to top of LNG exporter ranks on breakneck growth | English | SINGAPORE (Jan 3): The US tied Qatar as the world’s top exporter of liquefied natural gas last year, a milestone for the meteoric rise of America as a major supplier of the fuel. Both countries exported 81.2 million tons in 2022, according to ship-tracking data compiled by Bloomberg. While that’s a modest increase for Qatar, it marks a huge leap for the US, which only began exporting LNG from the lower-48 states in 2016 and has seemingly overnight become a dominant force in the industry. A shale gas revolution, coupled with billions of dollars of investments in liquefaction facilities, transformed the US from a net LNG importer to a major supplier. The global energy crisis and a shift away from Russian pipeline gas has increased demand for US LNG, which could also help support construction of several new export projects across the Gulf Coast. The US would have been the world’s top LNG exporter if not for a fire at the Freeport export plant in Texas, which has kept the plant shut since June. The facility is slated to resume operations later this month, which will cement the US as the biggest exporter of the fuel. Still, the US will need to build a lot more LNG export capacity if it wants to hold onto the top spot through the end of this decade. Qatar is in the midst of an enormous expansion to its production facility, which could solidify its position as the LNG leader from 2026. Australia is poised to remain as the world’s third-largest supplier. In another shakeup, Japan overtook China to become the biggest LNG importer in 2022, according to ship data. China’s Covid restrictions dashed demand for the fuel, while Japanese rivals hoarded gas to prepare for winter. |
https://theedgemalaysia.com/node/677915 | Pertama Digital seeks 12-month extension to submit regularisation plan | English | KUALA LUMPUR (Aug 8): Pertama Digital Bhd is seeking a 12-month extension of time until Aug 9, 2024 to submit its regularisation plan to the relevant authorities. The application for the extension was submitted to Bursa Malaysia Securities on Tuesday (Aug 8), the digital services provider said in a filing. In August last year, Pertama Digital, formerly known as Sinotop Holdings Bhd, triggered paragraph 8.03A(2)(a)(b) of the Main Market Listing Requirements after selling its China-based textile subsidiary Be Top Group Ltd for RM70 million, with the aim of becoming a pure-play digital services provider. The paragraph stipulates that a listed issuer may not have a level of operations that is adequate to warrant continued trading or listing if it has an insignificant business or operations. Pertama Digital owns and operates a mobile application known as MyPay which consolidates the e-services of Malaysian government agencies into a single digital platform. It also owns and operates a website app known as eJamin which allows users to make payment electronically for criminal courts bails. Shares in Pertama Digital finished two sen or 0.64% lower at RM3.12 on Tuesday, giving the company a market capitalisation of RM1.37 billion. The stock has appreciated 78.29% from RM1.75 since early this year. |
https://theedgemalaysia.com/node/625596 | Boustead Projects' unit acquires 28 & 30 Bideford Road for S$515.0 mil | English | SINGAPORE (June 24): A subsidiary of Boustead Projects has acquired the property at 28 & 30 Bideford Road from SC Aetas Holdings (also known as the Singapore subsidiary) after the latter was placed under creditors’ voluntary liquidation. The consideration amount for the property is US$515.0 million, excluding tax, and will be funded via external bank financing, as well as shareholders’ loans. The consideration was arrived at on the basis of...(click on link for full story on theedgesingapore.com) |
https://theedgemalaysia.com/node/600838 | Highest return on equity over three years: PROPERTY — RM3 bil and above market capitalisation: Uoa Development Bhd - Striving to continue outperforming in trying times | English | This article first appeared in The Edge Malaysia Weekly on December 27, 2021 - January 2, 2022 Notwithstanding the sluggish property market exacerbated by the pandemic for close to two years, UOA Development Bhd continued to beat its peers by delivering the highest weighted return on equity (ROE) of 7.9% for three years, from the financial year ended Dec 31, 2018 (FY2018), to FY2020. That said, its ROE has been on a downward trend — from 8.4% in FY2018 to 8.2% in FY2019 and 7.5% the year after. A look at the property developer’s financial statements shows that its net profit was marginally lower at RM391.29 million in FY2020 versus RM399.47 million in FY2019, owing to slower property sales and the absence of new project launches. The temporary suspension of construction activities during the Movement Control Order also resulted in a delay in progressive revenue recognition. However, the delay was mitigated by a fair value gain from the disposal of UOA Corporate Tower in Bangsar South to UOA Real Estate Investment Trust (UOA REIT) for RM700 million. In the first six months ended June 30, 2021 (1HFY2021), UOA Development’s net earnings contracted 38.6% to RM90.44 million from RM147.4 million in the previous corresponding period. Its earnings performance was mainly dragged down by the contraction in the financial quarter ended March 31, 2021 (1QFY2021), in which its net profit fell nearly 71% due to higher progressive recognition from certain projects a year ago. The company achieved total new property sales of about RM197.6 million in 1HFY2021, mainly derived from the Goodwood Residence, Sentul Point, Aster Green Residence and United Point Residence. Total unbilled sales stood at about RM101.3 million. UOA Development is one of the few property developers in Malaysia with a comprehensive integrated in-house development and construction division. This allows the group to execute its developments efficiently on a “fast-track basis” — that is, within a shorter development cycle. Moving forward, the group will continue to look out for land that fits its strategic development requirements. Recognising the cautious economic outlook, it will maintain its focus on the mid-end residential segment within the Klang Valley. “The group will cautiously time its future project launches in line with the property market sentiment, the pandemic situation as well as the overall economic condition. “Whilst there is no specific timeline for our future project launches, the group continues its planning for future development projects in locations such as Bangsar South and Sri Petaling,” UOA Development says in its 2020 annual report. It is worth noting that the group has built up its net cash position over the years to RM1.93 billion as at end-June 2021. Given its expanding war chest, UOA Development, in which UOA Holdings Sdn Bhd controls a 71.35% stake, has been able to maintain its dividend policy of paying out 30% to 50% of realised profit after tax. Kenanga Research has an “outperform” call on the group with a target price of RM1.76. The research house believes that the planned new launches of RM1.05 billion in 4QFY2021 will have a greater earnings impact starting late FY2022, once construction enters a more advanced stage. These launches include Desa 3 landed properties with a gross development value of RM18 million, as well as Laurel Residence at Bangsar South (RM550 million), and Sri Petaling Phase 2 (RM480 million). “Due to the overall uncertainties, the group continues to remain cautious, compromising on short-term earnings by holding out on launches backed by its high cash reserves of RM1.9 billion (or 89 sen per share),” Kenanga Research opines. There are two “buy” and three “hold” calls on UOA Development, with a consensus target price of RM1.79, according to Bloomberg data. Since early this year, its share price has been flat at around the RM1.70 level. UOA Development does not intend to rest on its laurels. While strategising its new launches to sustain earnings growth, it is also cultivating new income sources. Last May, the company announced its plan to diversify into the provision of caregiving services involving patients and senior citizens under a proposed joint venture, which will enable it to venture into the new business. The caregiving business will be set up at the Komune Living and Wellness Centre in Cheras, which is owned by its wholly-owned subsidiary UOA Golden Pines Sdn Bhd. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play. |
https://theedgemalaysia.com/node/619598 | CIMB inks MoU with Bursa to expedite ESG adoption among Malaysian PLCs | English | KUALA LUMPUR (May 12): CIMB Group Holdings Bhd said it has entered into a memorandum of understanding (MoU) with Bursa Malaysia Bhd to accelerate the adoption of environmental, social and governance (ESG) practices among Malaysian public listed companies (PLCs) via the "#financing4ESG" initiative. In a statement on Thursday (May 12), CIMB said that under the MoU, the bank will collaborate with the bourse to offer sustainable finance offerings for Malaysian PLCs in alignment with the ratings model of the FTSE4Good Bursa Malaysia (F4GBM) index. "The collaboration aims to help Malaysian PLCs improve their sustainability performances and ratings for inclusion into the index, and at the same time support their transition towards more sustainable business practices through the various green, social, sustainable impact products and services (GSSIPS) offered by the group," it added. CIMB said Bursa Malaysia will also coordinate joint engagement and onboarding sessions for eligible PLCs together with CIMB on the F4GBM framework, as well as the group's solutions under its GSSIPS framework. The group noted that the solution may include its existing ESG offerings such as sustainability-linked loans and sustainability-linked treasury solutions for corporate clients, which it said encourage sustainable practices by providing financial incentives to the clients based on their achievement of pre-agreed sustainability performance targets (SPTs). "CIMB may also reference the F4GBM framework and ratings model in structuring sustainability-linked transactions with the relevant SPTs for corporates that week to raise financing or enter into a derivative transaction whilst also strengthening their ESG adoption," it added. CIMB claimed that via this MoU, it will become the first home-grown bank to collaborate with the bourse on "#financing4ESG". CIMB Group chief executive officer (CEO) Datuk Abdul Rahman Ahmad said Bursa Malaysia's "#financing4ESG" initiative is critical for the financial sector to encourage ESG adoption within the corporate sector through sustainable finance. He noted the initiative will help enhance the long-term resilience and competitiveness of Malaysian businesses and in tandem support the nation's transition towards a net-zero economy. "This strategic collaboration is firmly in line with CIMB's sustainability agenda under our Forward23+ strategic plan. We look forward to working closely with Bursa Malaysia and engaging Malaysian PLCs towards advancing our shared sustainability agenda, and in doing so support the Malaysian government's commitment to achieving carbon neutrality by 2050," Abdul Rahman said. Bursa Malaysia CEO Datuk Muhamad Umar Swift said that as ESG compliance and disclosure have become a global demand, the bourse is pleased to have CIMB join it in its journey to enable Malaysian PLCs to become regional leaders in the ESG space. "Being one of the largest banks in Malaysia, CIMB is in a position of influence to encourage its clients to adopt ESG best practices," it noted. CIMB shares closed five sen or 0.98% lower at RM5.05 on Thursday, giving the group a market capitalisation of RM52.89 billion. |
https://theedgemalaysia.com/node/633438 | Matrix Concepts 1Q net profit jumps 48% to RM47 mil, declares three sen dividend | English | KUALA LUMPUR (Aug 23): Matrix Concepts Holdings Bhd's net profit for the first quarter ended June 30, 2022 (1QFY23) jumped 48.44% to RM47.03 million from RM31.69 million a year ago, on the back of a 40.3% growth in revenue to RM229.3 million from RM163.4 million. Earnings per share was 5.64 sen versus 3.80 sen previously. The company declared a first interim dividend of three sen per share in respect of FY23, to be paid on Oct 6, 2022, representing a total dividend payout of RM25 million or 54.2% of 1QFY23 profit after tax. In a Bursa Malaysia filing on Tuesday (Aug 23), the property developer said the improved performance was driven by a significant increase in revenue contribution from the group’s residential and commercial properties, primarily from its flagship Sendayan Developments, as well as industrial property sales at Sendayan TechValley. Matrix Concepts said it also recorded healthy new property sales of RM309.2 million in 1QFY23, up 2.7% from RM300.9 million previously. It said demand for the group’s affordable premium products remained strong, despite the end of the government’s Home Ownership Campaign (HOC), increase in interest rates, as well as challenging environment faced by the property development sector. In a separate statement, Matrix Concepts chairman Datuk Mohamad Haslah Mohamad Amin said the challenges posed by the economic climate in uncertain times put a greater emphasis on providing customers with strong value proposition, by offering various homeownership packages of right-priced properties. "The all-round improvement in our 1QFY23 performance shows a positive growth outlook, albeit from a low base effect of a pandemic-impacted 1QFY22. "This was achieved amidst slower-than-expected revenue recognition due to the impact of labour shortages on project progress, and inflationary pressures on raw material prices," he said. Haslah added that to continue meeting the firm demand for homes, the developer has lined up launches of more than RM1.5 billion across Seremban, Johor, and Klang Valley in FY23. At 12.30pm, Matrix Concepts was flat at RM2.28 with 41,700 shares traded. |
https://theedgemalaysia.com/node/635200 | Destini tumbles 21% despite denying PN17 classification, delisting reports | English | KUALA LUMPUR (Sept 6): Shares in Destini Bhd fell 21.05% in morning trade on Tuesday (Sept 6), despite the company having denied that it has been classified as a Practice Note 17 (PN17) company or that it was set to be delisted on Monday. At 9.40am, Destini had fallen two sen to 7.5 sen, with 8.92 million shares traded. In a statement on Monday, it said that any such announcements would have been announced in accordance with Bursa Malaysia’s Main Market Listing Requirements. On Aug 30, Destini reported a net loss of RM1.29 million, versus a net profit of RM1.16 million a year earlier, for the second quarter ended June 30, 2022. Revenue for the quarter edged up to RM32.75 million versus RM30.34 million previously. For the six months ended June 30, 2022, Destini reported a net loss of RM730,000 against a net profit RM2.28 million, on the back of a lower revenue of RM58.82 million against RM116.88 million. Read also:
Destini denies PN17 classification, delisting reports |
https://theedgemalaysia.com/node/622506 | Banks, planters and telcos KLCI outperformers in 1Q, MIDF says | English | KUALA LUMPUR (June 2): Banks, plantation companies and telecommunications companies (telcos) were the outperformers among the FBM KLCI component stocks in terms of earnings performance for the quarter ended March 31, 2022 (1Q22) based on MIDF Amanah Investment Bank Bhd's estimates. In an earnings review, MIDF Research said three financial services groups, namely CIMB Group Holdings Bhd, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd, two plantation companies, namely Sime Darby Plantation Bhd and IOI Corporation Bhd, and two telcos, namely Axiata Group Bhd and Telekom Malaysia Bhd (TM), were among the outperformers. In addition, IHH Healthcare Bhd, Nestlé (Malaysia) Bhd and Petronas Chemicals Group Bhd also outperformed in the quarter under review, the research firm said in an earnings wrap review of corporate earnings for 1Q22 released on Thursday (June 2). Meanwhile, MIDF stated in the report that the underperformers comprised of two glove companies, namely Top Glove Corporation Bhd and Hartalega Holdings Bhd, two utilities companies, namely Petronas Gas Bhd and Tenaga Nasional Bhd, as well as Dialog Group Bhd, Digi.Com Bhd, MISC Bhd, Petronas Dagangan Bhd, PPB Group Bhd and RHB Bank Bhd. The research house revised downwards its aggregate earnings forecast for the KLCI constituents for 2022 marginally by 0.3% or RM187 million to RM64.5 billion. "The lower aggregate forecast for 2022 was mainly contributed by downward earnings revisions for Top Glove and Hartalega, MISC, Petronas Dagangan, Petronas Gas, Digi and RHB Bank but moderated by upward revisions for Petronas Chemicals, Kuala Lumpur Kepong Bhd (KLK), Hong Leong Bank and Hong Leong Financial Group," said the research outfit. MIDF noted that the earnings performances of the glove companies under its coverage were all below expectations. Top Glove, Hartalega, Supermax Corporation Bhd and Kossan Rubber Industries Bhd are part of MIDF’s coverage. "The lacklustre performance was due to the industry coming off a period of exponential growth on the back of the Covid-19 pandemic," said MIDF. The research firm also pointed out that the average selling price (ASP) and demand for rubber gloves are declining as the world is now entering the endemic phase of Covid-19. "The influx of new players results in higher supply, thus creating more downward pressure on the ASP. Buying activities have moderated in tandem with a reduction in consumption levels as large buyers, such as governments and large hospital chains, are full or near full in terms of personal protective equipment supplies,” MIDF added. Over at the banking sector, MIDF observed a trend of poorer investment and core net fee gains dragging non-interest income, credit costs coming within or better than management guidance, and higher lending yields but stationary cost of funds benefiting net interest margins. It also observed a trend of good-to-great loan growth, less chunky provisions coming from oil and gas provisions, and macroeconomic overlays to be maintained until 2023. “We expect credit costs to be skewed towards the second half of 2022, when the effects of rescheduling and restructuring loan run-off on asset quality become clearer. Ultimately, we remain positive on the sector, with a ‘buy’ call on nine out of 10 of the stocks under our coverage. “We can look to the overnight policy rate hike's positive effects on loan books, major provision write-backs in 2023, less chunky overlays and the economy's return to normalcy as core drivers of the sector's growth,” MIDF said. It added that banks such as Affin Bank Bhd, Alliance Bank Malaysia Bhd and CIMB had undertaken strategic improvements such as portfolio derisking and restructuring and kitchen-sinking exercises, making them more attractive stock candidates now than pre-pandemic. For the plantation sector, MIDF said that while companies like Sime Darby Plantation, KLK and IOI Corp recorded a stellar performance driven by higher margins owing to a higher average crude palm oil price, the majority of planters were having lower fresh fruit bunch production due to unusual heavy rainfall during January to early February, compounded by a harvester shortage. “Going forward, we expect production levels to slightly improve following seasonal high [production] months, better weather conditions as well as the return of 32,000 foreign workers in June,” the research firm said. MIDF believes crude palm oil prices would remain high, driven by a better demand outlook on the back of better economic activities locally and globally, a subdued production outlook for soybeans on the back of drought in South America, and supply tightness for sunflower oil on the back of the Russia–Ukraine crisis. “All factors considered, we maintain our 'positive' stance on the plantation sector,” MIDF said. As for the telco sector, MIDF explained that the performances of TM and Axiata in 1Q22 were much on the positive side as the former, being the nation’s main fixed line player, had many business opportunities under the MyDIGITAL initiatives, while the latter had regional exposure to emerging countries with a lot of growth potential. Moving forward, MIDF opined that the introduction of a single wholesale network model will add more pressure for telcos to adapt to the changing dynamics of the competitive industry. “The companies may be required to pay upfront wholesale fees to Digital Nasional Bhd. In terms of the 5G adoption rate, we think it will likely be slow as a complete ecosystem is still in its infancy stage. “All in all, we are 'neutral' on this sector due to potential delays in Malaysia’s 5G roll-out plan as well as unexciting mobile service revenue growth,” MIDF said. |
https://theedgemalaysia.com/node/615439 | Roger Ng, wife sue RHB Bank for denying them access to their accounts after govt's failed forfeiture | English | KUALA LUMPUR (April 7): Former Goldman Sachs banker Roger Ng Chong Hwa and his wife, who have initiated legal actions against Malayan Banking Bhd to gain access to their five frozen bank accounts, have also filed a similar lawsuit against RHB Bank Bhd in January after being denied access to the two joint accounts they have at RHB. Their two RHB joint accounts, along with Ng's four accounts in Maybank and one under his wife Lim Hwee Bin, are said to have cash totaling RM1.88 million, which the Malaysian authorities had sought to seize via a forfeiture suit, but failed in its bid last November. Like Maybank, RHB Bank has filed an application to strike out the couple's suit. The application, filed on March 25, has been fixed for hearing on July 13 before High Court judicial commissioner Liza Chan Sow Keng, following case management on Thursday. RHB was represented by Andrea Chew Mei Y'ng from Messrs Lee Hishammuddin Allen and Gledhill, while Datuk Tan Hock Chuan appeared for the couple. Ng, notably, is facing money laundering and bribery charges in New York, US, in relation to the looting of billions of ringgit from 1Malaysia Development Bhd. He is the only former Goldman Sachs employee to stand trial in relation to the looting scheme. In the statement of claim (SOC) filed in their lawsuit against RHB sighted by theedgemarkets.com, the couple said they opened the joint accounts at RHB's branch in Bangsar Shopping Centre. On or about March 2019, they said the RHB accounts were seized by the authorities under the Anti Money Laundering, Anti Terrorism Financing and Proceeds of Unlawful Activity Act 2001 (AMLATFPUA). They claimed that the seizure order ceased in March 2020, while the High Court had dismissed the authorities forfeiture application on Nov 8 last year. After the failed forfeiture order, Lim had gone to RHB Bank on several occasions in November and demanded access to the accounts to pay for their daily expenses, child's education fees and other expenses, but was denied. The couple then filed a notice of demand to get access to the two accounts, which they said the bank had refused to comply with. Like in the SOC filed in their suit against Maybank, the couple said Lim had issued a cheque for RM100,000 to one Rudy Ng Chong Jin, but the cheque was not honoured by the bank. The bank then replied through its solicitors that the couple's accounts remained seized by the authorities. Hence, the couple is seeking a court order that they be given access to the accounts, that the bank furnish them with true certified copies of the monthly statements from March 2019 till the date of the court order, special damages of RM100,000, as well as general and exemplary damages to be assessed by the court. In response to the suit, RHB has also filed a third party notice to the damages claimed by the couple to Supt Foo Wei Min from the police commercial division and Deputy Public Prosecutor Atiqah Liyana Shahrir, who is attached to the Anti Money Laundering and Forfeiture unit of the Attorney General Chambers. The third party notice was filed last March 9. Meanwhile, in RHB Bank's defence dated March 10, the bank said the couple is not liable to claim damages from the bank pursuant to Section 50(2) of the AMLATFPUA, adding their remedy lies with the authorities. “They should be aware that the order to seize had not been revoked due to the fact that the Public Prosecutor is continuing with the forfeiture application by appealing to the Court of Appeal. The bank is merely complying with the seizure order by the authorities,” the bank said. As such, the bank said the duo are not entitled to seek the reliefs they sought, and that their claim should be dismissed by the court. Ng and Lim, however, argued that the High Court, in dismissing the forfeiture orders sought by the authorities last November, had not made any orders for a stay of execution. This, they said, meant they should be allowed access to their accounts. To this, RHB's Bangsar branch manager Awangku Mohamad Ali Karim said in an affidavit in support of RHB's striking out application, that the authorities had not revoked or varied the seizure order in view of the forfeiture application having continued on to appeal, and that the money in the couple's accounts remained seized. "In the event the bank failed to comply with the seizure order, it would be deemed to commit an offence under Section 50(3) of the AMLATFPUA. "The plaintiff's remedy lies with the authorities and not with the bank. For these reasons, I have been advised that the couple's claim in this action is scandalous, frivolous, vexatious and an abuse of the court process, and we pray the defendant's striking out application will be allowed,” Awangku Mohamad said. Meanwhile, the couple's suit against Maybank, in which they are seeking similar reliefs, has been fixed for further e-review before Judicial Commissioner Adlin Abdul Majid on May 13. Read also:
Roger Ng and wife want access to their Maybank accounts after Govt's failed forfeiture bid
Govt fails in bid to forfeit monies from Roger Ng and wife
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