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https://theedgemalaysia.com/node/618234

Ringgit exchange rate is Malaysia's first line of defence as advance economies normalise monetary policies, IMF told

English

KUALA LUMPUR (April 29): The International Monetary Fund (IMF) said Malaysian authorities including Bank Negara Malaysia (BNM) and the Ministry of Finance (MoF) had indicated that the ringgit's exchange rate is the country's first line of defence or "shock absorber" as advanced economies normalise their monetary policies, which involve interest rate hikes to fight inflation. In a report published on Thursday (April 28), the IMF said Malaysian authorities had reiterated their commitment to the ringgit's exchange rate flexibility. "However, they also highlighted mitigating factors including the limited external exposure given low reliance on foreign funding, and the general preparedness of the markets based on previous experiences. "The authorities disagreed on the recommendation to phase out the remaining foreign exchange (FX) market development measures that the fund (IMF) classifies as capital flow management measures (CFMs). "They view these measures as necessary for financial stability and as prudential in nature, building the resilience of domestic markets consistent with the mandate of BNM," the IMF added. According to the IMF, the central bank of Malaysia continues to have reservations about the benefits of regular publication of FX intervention data given the trade-offs, including the likely impact on market speculation. The IMF said its staff prepared the report following a meeting with Malaysian officials, including the governor and deputy governors of BNM and the MoF's chief economist, between Jan 24 and Feb 9. "Mission dates: Jan 24-Feb 9, 2022. The mission met with the governor and deputy governors of BNM, the undersecretary and chief economist of the MoF, senior staff from various ministries/public sector entities, and representatives of the private sector and civil society. "The staff report was prepared by a team at the IMF for the executive board’s consideration on April 6, following discussions that ended on Feb 9 with the officials of Malaysia on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on March 7," the IMF added. According to the fund, the Malaysian authorities agreed with its staff’s assessment of Malaysia, albeit with some reservations. The IMF explained that the Malaysian authorities viewed the country's monetary policy stance as accommodative with inflation expectations well anchored and policy settings well calibrated to the phase of the nation's recovery and price dynamics. "Transition to policy normalisation would be guided by sustained narrowing, but not necessarily closing, of the output gap, sustained growth in private consumption, an improved labour market and stronger investment without over-reliance on policy support," the Malaysian authorities were quoted as telling the IMF. The fund, in its elaboration on Malaysia, said that against the backdrop of monetary policy normalisation in advanced economies, Malaysia's monetary policy should remain agile. While the country is well prepared to face a gradual increase in global interest rates, a sharp tightening of global financial conditions and risk-off investor behaviour could lead to surges in capital outflows, according to the IMF. "Under disorderly market conditions (DMCs), exchange rate flexibility, combined with liquidity support, including in foreign currency, and monetary policy accommodation striking a balance between supporting growth and managing capital outflows, should be the first line of defence. "However, in imminent crisis circumstances, temporary outflow CFMs as part of a broader policy package could be considered in line with the fund’s institutional view," the IMF added. The fund said the ringgit's exchange rate should continue to serve as a shock absorber, with FX intervention limited to DMCs. Malaysia's further reserve accumulation is not called for, given adequate reserve coverage and the undervaluation of the ringgit, according to the IMF. "Malaysia’s relatively liquid FX market, with no strong evidence of FX mismatches that pose systemic risk to the broader financial system, and a mature and multipronged monetary policy framework, limits the argument for FX intervention outside DMCs. "Accordingly, while employing FX intervention, BNM should consider its interactions with other policies against the backdrop of the moderately stronger external position. "BNM’s steps to liberalise foreign exchange policy and to deepen the FX market are welcomed. These include the implementation of electronic trading platforms for access and price discovery, the improvement of market trade transparency via daily publication of interbank FX and money market data, and the liberalisation of CFMs. "In this context, existing CFMs should be gradually phased out with due regard to market conditions. Publication of FX intervention data (with an appropriate lag to guard against market sensitivities) could enhance communication and strengthen the commitment to the monetary policy framework. "The progress made in the operationalisation of BNM’s multi-tool monetary policy model, leveraging the joint work with the fund on integrated policy framework modelling, is welcomed," the IMF said. According to the fund, Malaysia's current accommodative monetary policy stance is appropriate. The real overnight policy rate adjusted for one-year-ahead inflation expectations implies that short-term real interest rates remain close to zero, the IMF explained. "At the aggregate level, there are no signs of liquidity strains, and domestic financial conditions remain accommodative consistent with the financial condition index. "The outlook for core inflation remains benign, and headline inflation is projected to remain broadly unchanged in 2022. The significant output gap and the slack in the labour market limit the risk of second-round effects, and inflation expectations are well anchored. "Monetary policy should remain data-dependent — a tightening would be appropriate if there is strong evidence of de-anchoring of inflation expectations and, conversely, BNM has room to further ease monetary policy, in combination with the supportive fiscal policy, if downside risks materialise," the IMF added. Read also: BNM: Malaysia's banking system remains well positioned to support economic recovery

https://theedgemalaysia.com/node/668577

YTL Power’s 3Q net profit drops 49% due to absence of gain on investment disposal; declares 2.5 sen dividend

English

KUALA LUMPUR (May 25): YTL Power International Bhd’s net profit declined 48.56% to RM519.64 million or 6.41 sen per share in the third quarter ended March 31, 2023 (2QFY2023), from RM1.01 billion or 12.47 sen in the previous year, on the absence of gain on the disposal of its Australian investment.  Nonetheless, the group declared a 2.5 sen interim dividend, to be paid on June 28.     YTL Power announced to Bursa Malaysia that its profit before tax (PBT) in the quarter under review dropped to RM610.4 million from RM1.04 billion a year earlier. Higher PBT in the previous year's corresponding quarter was due to a net gain of RM947.1 million following the disposal of its investment in Australia's Electranet Pty Ltd.   Adjusting from this net gain, its PBT in 3QFY2022 would have been RM89.9 million, YTL Power said.   “Hence, the group PBT of RM610.4 million as compared to the adjusted profit before taxation in the preceding year's corresponding quarter improved significantly by RM520.5 million, principally attributable to better performance by power generation segment,” the electric utility group said on Thursday (May 25).  Its quarterly revenue, in contrast, rose 15.28% to RM5.34 billion from RM4.65 billion, but this was offset by water sewage and telecommunication segments.   YTL Power’s filing showed that revenue from the investment holding activities surged 94.4% to RM132.51 million from RM67.98 million on higher interest income, while the power generation segment recorded a 19.3% rise in revenue to RM4.12 billion from RM3.45 billion due to higher retail prices.   For the cumulative nine months (9MFY2023), the group’s net profit fell 16.22% to RM891.74 million from RM1.06 billion despite revenue expanding by 11.58% to RM14.8 billion from RM13.27 billion.    Following the government’s announcement on the lifting of the export ban on renewable energy, the group said its wholly-owned unit YTL PowerSeraya is well positioned to participate in the green energy import market to meet rising demand in Singapore.    In addition, the group also intends to develop a large portion of the Kulai Young Estate in Johor into a large-scale solar power facility with a generation capacity of up to 500MW to power a green data centre park. ‘This is in line with the group’s shift towards investing in more sustainable energy renewable solutions moving forward,” it added.    At Thursday’s closing bell, YTL Power’s share price was down two sen or 1.71% at RM1.15. This gives the group a market capitalisation of RM9.38 billion.    The stock’s share price has risen over 59% year-to-date.  

https://theedgemalaysia.com/node/644443

令吉兑美元进一步下滑

English

（吉隆坡17日讯）分析员表示，令吉兑美元今早进一步下跌，延续了昨天的回调，因为预期美联储加息，让美元重新站稳了脚步。 截至早上9时，令吉兑美元下滑至4.5420/5505，周三收于4.5400/5485。 ActivTrades交易员Dyogenes Rodrigues Diniz表示，美元兑令吉下跌0.75%后，已经回弹，并节节上升。 此前，美国公布10月核心零售销售数据，达1.3%，高于预期的0.4%。 核心零售销售衡量不包括汽车在内的零售总销售价值的变化，是消费者支出的重要指标，也被视为美国经济健康状况的温度计。 他告诉马新社：“当该指标高于预期时，意味着消费过热，这可能导致中期通胀上升。” Diniz表示，由于控制通胀最有效的措施之一是收紧货币政策，这可能会促使美联储考虑进一步加息等更具限制性的措施，这通常对美元有利。 他指出，从技术角度来看，美元兑令吉在过去几天大幅下跌，看涨回撤是市场的自然反应。 他补充说：“未来几天，美元兑令吉可能会升至4.6000，然后恢复下跌趋势。” 同时，令吉兑一篮子主要货币涨跌互见。 令吉兑新元升至3.3148/3213，周三收于3.3185/3252，令吉兑欧元从4.7311/7400，涨至4.7178/7266。 然而，令吉兑日元从3.2561/2624，降至3.2568/2634，令吉兑英镑则滑落至5.4077/4178，之前为5.4017/4118。   （编译：魏素雯）   English version：Ringgit eases further against US dollar at opening

https://theedgemalaysia.com/node/669524

银行股提振 马股跌幅收窄

Mandarin

（吉隆坡1日讯）美国债务上限法案获大比数通过后，市场情绪略有改善，受银行股的逢低买盘提振，马股跌幅收窄。 休市时，富时隆综指跌1.88点，挂1385.24点。 综指开市报1383.30点，较昨日闭市的1387.12点，下跌3.82点。盘中游走于1378.58点和1386.41点。 下跌股达441只、上升股270只，另有363只无起落、1166只无交易，以及27只暂停交易。 成交量16亿5000万股，值8亿9365万令吉。 一名分析员表示，最新的中国制造业数据显示，在上月收缩后，5月制造业活动回升，这也为马股在内的股市提供一些提振。 财新中国制造业采购经理人指数（PMI）从4月的49.5，升至5月的50.9，供需双双回升。 惟本地PMI指数依然趋跌，从4月的48.8，滑至5月的47.8，连续第九个月收缩。 “在美国联储局（FED）禁言期（6月3日至15日）前，交易者将关注明日发布的美国非农就业数据。” 重量级股中，国油化学（Petronas Chemicals Group Bhd）扬11仙，至6.67令吉、齐力工业（Press Metal Aluminium Bhd）和明讯（Maxis Bhd）各升8仙，分别报4.69令吉和4.19令吉。 大众银行（Public Bank Bhd）攀3仙，挂3.84令吉、联昌国际集团（CIMB Group Holdings Bhd）增4仙，至4.86令吉，以及丰隆金融集团（Hong Leong Financial Group Bhd）涨14仙，报17.46令吉。 至于热门股，今日在创业板上市的升尔集（Synergy House Bhd）挫6.5仙，至36.5仙、婆罗洲石油（Borneo Oil Bhd）降0.5仙，报1.5仙、迪耐（Dagang NeXchange Bhd）则扬2.5仙，至44.5仙，以及杨忠礼机构（YTL Corp Bhd）跌4.5仙，挂92.5仙。   （编译：陈慧珊）   English version：Gains in banking stocks trim FBM KLCI's losses at midday

https://theedgemalaysia.com/node/671278

UMW signs agreement with Cenergi SEA to maintain Jenbacher biogas engines

English

KUALA LUMPUR (June 15): UMW Group has signed a maintenance service agreement (MSA) with Khazanah Nasional Bhd’s subsidiary Cenergi SEA Bhd for a five-year term. The MSA was signed between UMW’s wholly owned subsidiary UMW Industrial Power Services Sdn Bhd (UIPS) with Cenergi RE Sdn Bhd, a subsidiary of Cenergi SEA. It will see UIPS providing maintenance services for Cenergy RE’s existing Jenbacher biogas engines throughout Malaysia as well as newer ones, said UMW in a statement. The agreement was valued at RM12 million, it added. UIPS is an authorised distributor of INNIO’s Jenbacher engines in Malaysia, which are MyHijau-certified, auguring well for Cenergi RE, which has secured the Sustainable Energy Development Authority's feed-in tariff quotas, said UMW. Cenergy RE is primarily in the renewable energy business with 15 biogas power plants, with a total capacity 25 megawatts (MW) of power. Four of them are equipped with five Jenbacher biogas engines, with a total generation capacity of 6.2MW. “With eight more biogas power plants capable of generating up to 14.5MW of electricity underway, it paves the way for further collaboration between UIPS and Cenergi RE,” said UMW. Group chief executive officer of Cenergi SEA Hairol Azizi Tajudin is confident in the operations and upkeep of its existing plants, with UIPS as the maintenance service provider for the Jenbacher biogas engines. “Their expertise in servicing these engines, coupled with their commitment to sustainability, aligns perfectly with our mission to harness the potential of renewable energy sources. “This collaboration with UIPS further strengthens our position as a key player in the renewable energy industry, and we are excited about the future prospects it brings,” he added. Meanwhile, Datuk Ahmad Fuaad Kenali, UMW Holdings Bhd’s president and group CEO, said: “We are fortunate to work with Cenergi RE, which promotes renewable energy, and will ensure that the biogas engines are well maintained to ensure they will continue to be productive throughout their lifespan. “Power plants using Jenbacher engines operating on natural gas or renewable energy sources can achieve power conversion efficiencies of up to a remarkable 48.7%. “Additionally, when operating in combined heat and power configurations, overall efficiency could increase up to an impressive 95%. “This will help our customers in maximising their returns, while reducing their carbon footprint and waste,” he added. At Thursday's (June 15) noon break, UMW Holdings’ share price stood unchanged at RM3.71. Its market capitalisation was RM4.33 billion.

https://theedgemalaysia.com/node/641552

回吐涨幅 马股微跌

Mandarin

（吉隆坡27日讯）亚洲股市涨跌不一，在金融服务和种植股遭温和套利，马股回吐早前涨幅，全日微幅收低。 闭市时，富时隆综指下滑0.89点，收于1454.09点。 综指今早开市报1457.96点，较昨日收盘的1454.98点，上升2.98点。日内于1452.28点和1459.86点之间波动。 惟市场广度正面，上升股达505只、下跌股325只，另有395只无起落、1136只无交易，以及24只暂停交易。 成交量25亿3000万股，值18亿7000万令吉，相比昨日的26亿1000万股和18亿令吉。 乐天交易股票研究副总裁唐柏麟指出，亚股和隔夜美国股市涨跌互见，以及对欧洲央行利率步伐谨慎，促使投资者处于谨慎模式。 他向马新社说，市场预计欧洲央行将升息至13年高位。 “本地市场投资者似乎继续在能源、产业和建筑业寻求避险。本地机构亦对部分股项提供强有力的支持。” “我们预计，综指将在1440至1470点区间波动。” 重量级股中，国家能源（Tenaga Nasional Bhd）跌8仙，收于8.29令吉、亚通（Axiata Group Bhd）减5仙，挂2.76令吉、森那美种植（Sime Darby Plantation Bhd）降6仙，至4.44令吉，以及吉隆坡甲洞（Kuala Lumpur Kepong Bhd）跌22仙，以22.20令吉挂收。 明讯（Maxis Bhd）则扬11仙，至3.80令吉、戴乐集团（Dialog Group Bhd）涨10仙，挂2.01令吉、联昌国际集团（CIMB Group Holdings Bhd）升5仙，报5.60令吉，以及顶级手套（Top Glove Corp Bhd）增2仙，挂77.5仙。 昨日上市的必达美（Betamek Bhd）交投最热，全天挫13仙，收报58仙、Careplus Group Bhd则收平于44.5仙，而Velesto Energy Bhd升1仙，至12.5仙，以及UEM阳光（UEM Sunrise Bhd）攀1.5仙，报21仙。   （编译：陈慧珊）   English version：Bursa gives up earlier gains to end marginally lower

https://theedgemalaysia.com/node/675560

Zafrul: Malaysia-Vietnam to leverage RCEP, CPTPP

English

HANOI (July 21): Malaysia and Vietnam can work together in leveraging their Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) membership. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the RCEP and CPTPP will boost both countries’ ongoing economic recovery efforts, post-pandemic. “These agreements play a crucial role in advancing our agenda of progressive, sustainable and inclusive growth, further strengthening our efforts towards a resilient and prosperous future,” he said at the Malaysia-Vietnam Business Forum here on Friday (July 21). Tengku Zafrul is in Hanoi as part of Prime Minister Datuk Seri Anwar Ibrahim’s two-days official visit to the country.  Meanwhile, he noted that the recent inclusion of the United Kingdom (UK) as a new member of the CPTPP marked a significant development in the trade pact, being the first non-founding country outside the Asia-Pacific region to join the mega trade deal. “The UK's accession clearly shows the attractiveness and benefits of the CPTPP, and this would certainly encourage other countries to consider the advantages of membership, as well as closer economic integration and cooperation,” he said. He added that the CPTPP provides Malaysia and Vietnam with numerous opportunities to unleash their market potential, bolster their services sectors, facilitate investment flows and empower small and medium-sized enterprises. The CPTPP also promotes sustainable and inclusive growth, with provisions that address labour rights, environmental protection and sustainable development. “Encouraging responsible business practices and social inclusivity contributes to long-term prosperity and the well-being of participating nations, including Malaysia and Vietnam,” said Tengku Zafrul. Malaysia and Vietnam are also active partners in Asean, working together to promote regional peace, stability, prosperity and integration within the region. “Let us leverage our common participation in various regional and international platforms to continue addressing challenges and advancing our shared interests for the benefit of both countries and Asean’s sustainable, balanced and inclusive growth,” he said. He added that the Malaysia-Vietnam Business Forum can clearly build on the meaningful milestones achieved in Malaysia and Vietnam’s first 50 years of diplomatic relations. “May the forum be a catalyst for fresh connections, fruitful collaborations, and a prosperous future for both our nations,” he added. Read also: Zafrul talks up Malaysia-Vietnam bilateral ties, cooperation to crack US$3t global halal market

https://theedgemalaysia.com/node/614852

My Say: Bolstering minority shareholder activism

English

This article first appeared in Forum, The Edge Malaysia Weekly on April 4, 2022 - April 10, 2022 Shareholder activism refers to the efforts of investors to exercise their rights as owners to discipline boards and top management teams. It is about driving change, and arises when shareholders believe that the boards have failed to perform their duties, leading to shareholder dissatisfaction with board performance and shareholder value maximisation. By voicing their concerns and making their dissatisfaction known, either via dialogues, in letters written to the company, through shareholder proposals, by adverse voting, press campaigns or exiting the company, shareholders can influence the practices and strategy of a company. Shareholder activism may include institutional investors’ private engagement with companies on issues related to the business model, financial performance, long-term strategic plans and environmental, social and governance (ESG) standards, or retail investors’ shareholder proposals, which mostly cover issues related to the board, executive compensation and ESG matters (including auditor-client relationship), as well as hedge funds’ campaigns to put the company, or part of the company, up for sale. The mid-1980s saw a rise in shareholder activism when institutional investors such as pension funds, asset managers, mutual funds and insurance companies became activist investors. A milestone in 1985 was the founding of the Institutional Shareholder Services and the Council of Institutional Investors in the US. These activist institutional investors initiated shareholder proposals, pressured management “behind the scenes” and used public media campaigns to target the boards and senior management of poorly governed or underperforming companies to implement corporate reforms. In the 1990s, labour union pension funds replaced public pension funds as the main shareholder activism player, and mutual funds also jumped on the activism bandwagon. The latest actor to enter the activism stage in the late 1990s was the hedge funds and private equity funds that took large, relatively long-term positions in underperforming companies. In many cases, hedge fund activists deploy confrontational tactics, ranging from publicly admonishing incompetent executives to unseating the entire board, to achieve their agenda. Thus, hedge fund interventions can induce intense conflicts over firm strategies and often heated battles for corporate control between hedge fund activists and the target firm’s management. There is ample scholarly research around the world that shows shareholder activism is likely to be detrimental to management but beneficial for shareholders. For example, activism is associated with decreased CEO pay and increased disciplinary CEO turnover, but also leads to divestitures of underperforming assets and positive excess stock returns, and improved corporate tax efficiency. An emerging stream of literature also shows that the threat of activism may elicit greater disclosure of climate risk information. Another positive outcome of activism can be observed with BlackRock’s annual Dear CEO letter (published on its website), which compels portfolio firms to align themselves with BlackRock’s preferred strategies. Shareholder activism can also trigger shareholder proposals requesting firms to provide information on corporate political spending, arising from concerns that political spending is symptomatic of agency problems within firms. In sum, the research findings suggest that exposure to shareholder activism is an important determinant of responsible corporate behaviour, and that targeted firms increase public disclosure to satisfy activist demand or to repel activist advances. For example, managers under threat from activist investors can avoid shareholder activism by increasing voluntary disclosure of earnings forecasts, which corrects mispricing and potentially reduces returns to activism. In Malaysia, minority shareholder activism is spearheaded by the Minority Shareholders Watch Group (MSWG). The Malaysian government institutionalised shareholder activism by creating the MSWG in 2000, following the 1997/98 Asian financial crisis. The MSWG was initially funded by several domestic institutional investors to create awareness among minority shareholders of their three basic rights — to seek information, voice opinions and seek redress in cases of corporate misconduct and shareholder expropriation. The mission statement of MSWG is to increase sustainable shareholder value in companies through engagement with relevant stakeholders, with a focus on minority shareholder interests. In the past, shareholders in Malaysia were slightly hesitant to take legal action against boards, challenge those in authority and engage in public confrontation due to cultural factors, such as high power distance and low individualism. Given the high power distance and collectivistic society in Malaysia, a watchdog is an ideal solution, since shareholders who are uncomfortable with confrontation need not fear the board as the provocative issues are raised on their behalf by the MSWG. As a watchdog and gatekeeper that protects the interests of minority shareholders, MSWG monitors the monitors. Its activities include providing voting advice and proxy services, influencing the decision-making process in public-listed companies (PLCs), monitoring corporate governance transgressions, and educating and alerting retail investors by scrutinising and questioning decisions made by companies that are detrimental to the minority shareholders group. As influencers, MSWG periodically highlights issues in the media and at general meetings for board clarifications. Over the years, MSWG has evolved into an independent research organisation. MSWG selects the portfolio of target companies for monitoring based on certain criteria: (i) companies that are FBM KLCI constituents; (ii) companies that are included in the MSWG’s Top 100 Malaysian Corporate Governance Index; (iii) companies that MSWG subscribers request to be monitored; and (iv) companies that warrant monitoring based on complaints received. MSWG also purchases shares in hundreds of PLCs with significant institutional and foreign ownership to enable it to participate in shareholders’ meetings. The MSWG’s 2020 annual report reveals that in that year, it covered 300 PLCs in its monitoring portfolio, or about 33% of the total number of companies listed on Bursa Malaysia, comprising large-, mid- and small-cap stocks that represent about 87% of Bursa’s total market capitalisation. MSWG’s modus operandi is it uses the shareholder general meetings as platforms to raise issues of concerns and encourage or urge actions on good corporate governance and sustainability practices to be adopted by PLCs. By and large, PLCs present their responses to MSWG’s letters at the annual general meetings (AGMs), and many include MSWG’s questions and their responses on their corporate websites under the Summary of Key Matters Discussed at AGMs. Anecdotal and empirical evidence suggests that MSWG plays an important role in lifting the standard of corporate governance in Malaysia. One of MSWG’s early successes was in preventing minority shareholder expropriation when it played a leading role in aborting the attempted acquisition of Malaysian Merchant Marine Bhd by Maruichi Malaysia Steel Tube Bhd, a deal many saw as a disadvantage to the minority shareholders of Maruichi in 2002. More recently, MSWG joined forces with the Employees Provident Fund, the largest institutional investor in Malaysia and chair of the Institutional Investors Council Malaysia (IICM), to bring corporate governance reforms in Sapura Energy Bhd. “We oppose the re-election of the independent directors because every year we keep seeing the same thing happening, especially with the excessive director remuneration” (The Edge, July 18, 2018). In addition, MSWG, together with the Securities Commission Malaysia, was instrumental in the formulation of the Malaysian Code for Institutional Investors (2014) and the issuance of the AGM Corporate Governance Checklist for Shareholders (2020), which highlights questions for shareholders to consider in preparation for an AGM. The role of MSWG as a gatekeeper in reviewing the standard of corporate governance of PLCs has been acknowledged by Asian Corporate Governance Association (2020). “The MSWG’s continuing role is particularly notable. The organisation provides questions in advance of AGMs and companies frequently include these and responses as an addendum to the company presentation at the start of the Q&A section of the meeting. The consistent assessments have improved the quality and professionalism of AGMs over time in Malaysia.” Moreover, empirical studies show that firms targeted by MSWG elicit more transparent disclosure, more credible financial statements and higher returns. Similarly, a study on the China Securities Investor Services Center (CSISC), the equivalent of MSWG, shows that firms in China monitored by CSISC report lower earnings manipulation, particularly among firms with weaker corporate governance. Apart from closely following MSWG and IICM’s corporate engagement, how else can the investing public better gauge the intensity of shareholder activism among the listed companies in Malaysia? As a way forward, I would humbly suggest Bursa revamp its corporate announcements database under the category of general announcements by adding a sub category that is dedicated to shareholder proposals. Additionally, Bursa may want to revamp the way the voting outcomes at shareholder meetings are announced by showing separately shares voted under the public float category, as the number of shares held by minority shareholders that voted at the AGM is a good indicator of minority shareholder activism. Under Paragraph 9.19(7) of the Bursa Malaysia Main Market Listing Requirements, the AGM voting results are required to be announced to the public immediately after the meeting. Unfortunately, the voting results in Malaysia only disclose the number of shares voted by all shareholders without distinguishing between shares voted by controlling shareholders or blockholders and those by minority shareholders (retail investors and institutional investors without board representation). A hybrid shareholder meeting, with video streaming and availability of the minutes online, may further bolster the shareholder activism momentum. Wan Nordin Wan Hussin is professor and deputy dean (academic and international affairs) at the Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia Kuala Lumpur Campus 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/638199

马股随大市走高

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（吉隆坡29日讯）隔夜美国股市收涨，马股跟随亚洲股市走高。 休市时，富时隆综指上扬2.66点，至1404.55点。 综指今早以1407.39点报开，较昨日闭市的1401.89点，高开5.5点。盘中于1403.48点和1410.76点之间波动。 上升股384只、下跌股312只，另有378只无起落、1327只无交易，以及57只暂停交易。 马六甲证券今日在报告中指出，由于隔夜美股大幅上涨，本地股市掀购兴，并称英国央行出人意料的政策调整应能提振区域情绪。 “我们预计交易者将专注于即将提呈的2023年度财政预算案。” “我们看好医疗保健、自动化、汽车、电讯和太阳能行业。” 纵观亚股，新加坡海峡时报指数扬1%、日本日经指数升0.86%，以及香港恒生指数涨1.25%。 重量级股中，国油化学（Petronas Chemicals Group Bhd）扬3仙，至8.40令吉、联昌国际集团（CIMB Group Holdings Bhd）扬5仙，挂5.16令吉，以及IHH医疗集团（IHH Healthcare Bhd）起1仙，报5.94令吉，而马银行（Malayan Banking Bhd）持平于8.56令吉、大众银行（Public Bank Bhd）则跌4仙，挂4.22令吉，以及国家能源（Tenaga Nasional Bhd）降8仙，报8.32令吉。 至于热门股，东海岸资源（PT Resources Holdings Bhd）攀4仙，挂45.5仙、NWP控股（NWP Holdings Bhd）增0.5仙，至25仙、Velesto Energy Bhd平盘挂于11.5仙、顶级手套（Top Glove Corp Bhd）跌1仙，报58仙，以及沙布拉能源（Sapura Energy Bhd）减0.5仙，至3.5仙。   （编译：陈慧珊）   English version：Bursa higher at midday, in line with regional peers

https://theedgemalaysia.com/node/606681

Year of the Black Tiger

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This article first appeared in The Edge Malaysia Weekly on February 7, 2022 - February 13, 2022 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/671495

Malaysian vehicles sales rebounded in May on high order backlogs, new car sales — MAA

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KUALA LUMPUR (June 16): Vehicles sold in Malaysia rebounded by 32.7% month-on-month to 61,795 units in May 2023, from 46,583 units in April, driven by the fulfilment of backlogged orders, and the bookings received for new model launches.  In a statement on Friday (June 16), the Malaysian Automotive Association (MAA) said strong sales by the two national carmakers — Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) — contributed to the higher total industry volume (TIV) in the month under review. As a result, TIV rose 12.3% year-on-year to 300,978 units for the first five months of the year, compared with 268,115 units in the corresponding period in 2022.  Similarly, total production volume grew 18% to 304,484 units for the first five months of the year, from 258,048 units in the same period last year. The MAA said sales in June 2023 are expected to remain at the same level, as demand is still resilient due to the high order backlogs. “With the domestic economic environment remaining mostly supportive, the MAA believes demand for new motor vehicles is still resilient due to high backlogged orders, but registration volume might be slightly moderated,” it said.

https://theedgemalaysia.com/node/657161

Mah Sing eyes RM2.2b property sales in 2023, proposes three sen dividend for FY2022

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KUALA LUMPUR (Feb 28): Property developer Mah Sing Group Bhd ended the financial year ended Dec 31, 2022 (FY2022) on a positive note, with an 11.9% increase in net profit on higher property sales. Full-year net profit rose to RM180.05 million, from RM160.86 million for FY2021. The group saw property sales of RM2.12 billion for the year, the highest figure recorded since 2016, up 32.2% from RM1.6 billion achieved in 2021. Revenue grew 32.1% to RM2.32 million, from RM1.75 million for FY2021. For FY2023, Mah Sing is targeting higher property sales of at least RM2.2 billion, supported by a strong project pipeline and resilient sales momentum across all projects. It has proposed a first and final dividend of three sen per share for FY2022, subject to shareholders’ approval in the upcoming annual general meeting. For the fourth quarter ended Dec 31, 2022 (4QFY2022), net profit rose 16.9% to RM46.78 million from RM40.01 million a year earlier, which led to higher earnings per share of 1.93 sen, compared with 0.53 sen for 4QFY2021. Quarterly revenue also grew 24.8% to RM670.87 million, from RM537.42 million for 4QFY2021. In a filing with Bursa Malaysia on Tuesday (Feb 28), Mah Sing said the development projects that were the key earnings contributors to its FY2022 results included M Vertica in Cheras, M Arisa in Setapak, M Luna in Kepong, M Aruna in Rawang, Meridin East in Johor, M Oscar in Sri Petaling, M Adora in Wangsa Melawati, and Southville City in KL South. Other projects that also contributed included M Senyum in Salak Tinggi, D'sara Sentral in Sungai Buloh, Southbay City and Ferringhi Residence in Penang, Sierra Perdana, Meridin @ Medini and Mah Sing i-Parc in Johor. On its prospects, Mah Sing said its unbilled sales of RM2.18 billion will support liquidity and provide future revenue visibility. "The nimble and execution-focused culture should continue to ensure operational reliability. “In view of the significant volume of construction progress and property completions for 2023, the group expects further growth and stronger delivery of performance for FY2023,” it added. The group’s land bank stood at RM726 million in gross development value at end-December 2022. "Going forward, the group expects further momentum in land replenishment for even stronger growth visibility," said Mah Sing. Its shares ended up half a sen or 0.83% at 60.5 sen on Tuesday, giving the group a market value of RM1.47 billion.

https://theedgemalaysia.com/node/671181

Billionaire dynasty behind London’s Chelsea enters new era

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(June 14): In 1717, a member of the Cadogan family married the daughter of Hans Sloane, a physician to Britain’s royal family who owned 166 acres of land in London’s Chelsea neighbourhood. That union paved the way for the Cadogans to become major landlords in the UK capital, and they’re still passing down assets originating from that marriage more than three centuries later. Edward Cadogan, 57, became the 9th Earl Cadogan on Sunday (June 11) following the death of his billionaire father Charles at age 86. His succession marks a new era for one of Britain’s biggest aristocratic fortunes that spans five-star hotels, high-end restaurants and some of London’s most famous retail districts. Edward, a former member of the Royal Air Force and current Cadogan Group chairman, today oversees a roughly US$6.4 billion (RM29.54 billion) fortune through his hereditary title and role at his family’s London-based firm, making him Britain’s 11th-richest person, according to the Bloomberg Billionaires Index. The value of the family’s property holdings rose about 32% over the past decade, largely mirroring UK land values. Charles “passed on a business that is in much better fettle than when he inherited it,” Cadogan Group said in a statement on the patriarch’s death. The Cadogans trace their lineage back more than 1,000 years, but their path to riches accelerated in 1776. Charles Sloane Cadogan — the first earl under the current ancestral line — inherited swathes of London property that year that his grandfather Hans Sloane acquired six decades earlier. The family managed to preserve its lineage and fortune over the following centuries, surviving Napoleonic battles as well as the Blitz, and redeveloped large parts of Chelsea with red-bricked mansions as the neighbourhood became a hub for London’s wealthy and bohemian populations. A central part of the Cadogan estate is on King’s Road, a major retail hub for fashion brands including Calvin Klein and Massimo Dutti as well as restaurants and art galleries. Like other billionaire dynasties such as the Grosvenors behind London’s Westminster and Mayfair districts, the Cadogans also carefully structured their fortune to help maintain their riches. They hold their property assets through a series of family trust structures that allow them to maintain control across generations and curb tax liabilities when beneficiaries die. UK trusts typically pay inheritance tax once a decade at a lower rate than the standard level of 40%. Cadogan Group paid out more than £300 million (RM1.74 billion) over the past decade, mostly to help cover the 2022 tax bill for the family’s trusts. That year, it paid total dividends of £76.6 million, the biggest sum during that period, according to data compiled by Bloomberg. “We have a comprehensive strategy in place to ensure the substantial funding necessary to meet this tax charge is available,” Cadogan Group said earlier this month in its 2022 results.  Edward, a divorced father of three who counts shooting and skiing among his hobbies, was previously known as Viscount Chelsea and served in the UK Royal Air Force’s ground-fighting unit before joining Cadogan Group, where he succeeded his father as chairman in 2012. With former CBRE Group Inc executive Hugh Seaborn, 61, as chief executive officer, the family’s estate has boosted its focus on attracting more global brands to its retail outlets as well as environmental initiatives during the younger Cadogan’s tenure as chairman.  While the closely held firm is still focused on London, Cadogan Group said last year it planned to do more deals outside the city to provide an alternative source of income to help fund its tax costs. Despite Cadogan Group’s involvement in a UK court battle that shows the pressures on bricks-and-mortar retail after the pandemic, the firm is still optimistic about its new era. Charles Cadogan set it “on a clear and confident course,” the family’s firm said in its statement. “Perhaps his greatest source of pride was being able to pass his chairmanship of the estate over to his son.”  

https://theedgemalaysia.com/node/620210

Total market cap at local bourse grew to RM1.83 trillion in April, says Bursa Malaysia

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KUALA LUMPUR (May 18): Total market capitalisation across the local bourse rose by 1.7% month-on-month (m-o-m) to RM1.83 trillion as at the end of April, driven by the plantation sector following the crude palm oil (CPO) export ban by Indonesia. In a market update (trade performance and fund flow) published on Tuesday (May 17), Bursa Malaysia Securities Bhd highlighted that average daily volume (ADV) moderated to RM2.14 billion in April from RM2.96 billion reported in the previous month, dragged by weaker trading activities among local institutional investors. Meanwhile, foreign inflows tapered to RM825 million in April as compared to RM3.28 billion in March. According to Bursa Malaysia, foreign funds emerged as net buyers in financial services, plantation and industrial sectors, and as net sellers in healthcare, technology, and telco and media sectors in April.  “On financial services, foreign inflow continued for the fourth month in anticipation of the country’s economic recovery. “Foreign investors further increased their stakes in plantation stocks with RM246 million, from RM962 million in March, in response to the CPO export ban from Indonesia,” it said.  On stocks, foreigners emerged as net buyers in the following counters — Public Bank Bhd, Malayan Banking Bhd, Petronas Chemicals Group Bhd, Sime Darby Plantation Bhd and RHB Bank Bhd.  On the other hand, foreign funds emerged as net sellers in Top Glove Corp Bhd, Inari Amertron Bhd, Kuala Lumpur Kepong Bhd, Dagang NeXchange Bhd and Tenaga Nasional Bhd. 

https://theedgemalaysia.com/node/664551

EVENING 5: Five things you need to know today

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EVENING 5: Malaysia outperforms region in tourism recovery Dirty dealings. Corporate battles. Consumer woes. Here are five things you need to know today. 1. Malaysia sees the quickest tourism recovery among its regional peers, says StanChart. 2. AirAsia Group founder Tan Sri Tony Fernandes is said to be preparing to step back from the front lines. 3. Tokio Marine Holdings mulls a sale of its life insurance business in Southeast Asia. 4. Sabah’s SMJ acquires a 25% stake in Petronas Chemicals Fertiliser Sabah for RM1.2 billion. 5. Nestlé Malaysia’s 1Q net profit eases 3.9%, weighed down by higher commodity prices.

https://theedgemalaysia.com/node/651858

Zahid’s Yayasan Akalbudi trial vacated until April 10 for undisclosed reasons

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KUALA LUMPUR (Jan 16): The criminal trial of Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, which was slated to resume on Monday (Jan 16), has been vacated until April 10.  In a case management before presiding judge Datuk Collin Lawrence Sequerah, deputy public prosecutor Datuk Raja Rozela Raja Toran attended the case management in the High Court here to inform the judge that the trial dates fixed for April will remain.  She then said that additional dates for the case were set as agreed upon by prosecutors and Zahid’s defence, which is led by Hisyam Teh Poh Teik.  The additional dates are June 12-15, July 24-27, Aug 1-3, Aug 7-10, and Aug 21-24.  The trial was previously slated to resume this week from Jan 16-19, and continue on Jan 30-31, Feb 7-9, and March 27.  No reason was given as to why the January and February dates were vacated and replaced with the additional June, July and August dates as mentioned above, as Sequerah agreed to the adjournment. The trial will now resume on April 10-13, May 15-18, and then during the new dates set for June, July and August.  Zahid is in defence against 47 charges, including alleged criminal breach of trust of RM31 million belonging to charitable foundation Yayasan Akalbudi, which the deputy prime minister leads. Zahid, who is the Bagan Datuk Member of Parliament, was ordered by Sequerah to enter his defence in respect of all 47 corruption charges in relation to Yayasan Akalbudi last year.  Twelve of them are criminal breach of trust charges, followed by eight for graft, and 27 for money laundering.

https://theedgemalaysia.com/node/616152

Bumi Armada poised to move past sideways consolidation, says RHB Retail Research

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KUALA LUMPUR (April 13): RHB Retail Research said Bumi Armada Bhd is poised to move past the sideways consolidation phase of 43 sen as it bounced off the 21-day average line and closed at the immediate resistance level on Tuesday on strong volume. In a trading stocks note on Wednesday (April 13), the research house said if the stock surpasses the consolidation phase in the coming sessions, the bulls are expected to drive the stock towards the 51 sen resistance, followed by 55.5 sen. “However, the momentum may decline if it falls below the 40.5 sen support, which is below the average line,” it said.

https://theedgemalaysia.com/node/632925

KIP REIT appoints co-founder Eric Ong as MD

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KUALA LUMPUR (Aug 18): KIP Real Estate Investment Trust (REIT) has appointed its co-founder and executive director Datuk Eric Ong Kook Liong as managing director, a position that had remained vacant since Datuk Chew Lak Seong’s death in June last year. There has been a slew of shareholding changes since the passing of Chew, with his wife Datin Teoh Siew Chin paring her ownership in the REIT and the emergence of businessman Datuk Eddie Ong Choo Meng as a substantial unitholder with a 19.1% stake. As at April 21, Teoh held a 6.8% stake in the retail-focused REIT. KIP REIT also announced in a filing on Thursday (Aug 18) that Chew’s son Chew Kheng Kai, who was appointed as executive director in July last year, has resigned “due to other professional and personal commitments which requires his full attention”. Meanwhile, Kook Liong’s daughter Ong Pui Shan and Choo Meng’s sister Ong Tzu Chuen were appointed to KIP REIT’s board as executive directors on Thursday. Kook Liong had a 12.9% stake in KIP REIT as of Sept 20, 2021. The REIT, which is in the midst of diversifying its portfolio, recently acquired industrial assets from Choo Meng and Hextar Global Bhd. Units of KIP REIT, which gained about 15% year to date, closed half sen or 0.6% higher at 90.5 sen on Thursday, giving it a market capitalisation of RM457.3 million. Read also: Hextar's Eddie Ong to inject three industrial properties into KIP REIT Hextar group boss continues acquisition spree

https://theedgemalaysia.com/node/666331

Forensic report of Gnanaraja-Zarul text messages furnished last month, says prosecution in Guan Eng's graft trial

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KUALA LUMPUR (May 10): The prosecution in Lim Guan Eng’s undersea tunnel graft trial told the Sessions Court on Wednesday (May 10) that it had handed over the forensic report of text message exchanges between businessman Datuk Seri G Gnanaraja and Consortium Zenith Construction Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli — and the complaint made against Gnanaraja — to the defence. Deputy public prosecutor Farah Yasmin Salleh said the documents were handed to the defence on April 18. Lawyer Haijan Omar, who appeared with RSN Rayer, confirmed with Sessions Court judge Azura Alwi that the documents were handed over to them on that date. Prior to this, Azura on April 5 granted the defence's request to obtain the documents from the prosecution. The WhatsApp exchanges between Zarul and Gnanaraja are vital, the defence claimed, as it revolved around the interpretation of the word “big boss”, and who received the RM2 million cash the duo discussed. Zarul previously testified before Azura that when he and Gnanaraja communicated, the term “big boss” referred to Lim, but the defence contended that it was someone else, namely former prime minister Datuk Seri Najib Razak. In 2019, Gnanaraja was charged in the Shah Alam Sessions Court with cheating Zarul of RM19 million in relation to the undersea tunnel project, where he is said to have deceived Zarul between July and August 2017. This was so that Gnanaraja could help close a Malaysian Anti-Corruption Commission (MACC) probe against Zarul over the project. However, in October last year, it was revealed that Gnanaraja’s case in Shah Alam had been classified as no further action. The prosecution previously shared that they plan to call Gnanaraja to the witness stand in Lim’s trial. A check on the MACC’s website showed that Gnanaraja was found guilty by the Sessions Court under the Companies Act 2016, and fined RM230,000 for using a company’s property with a value of RM11.42 million, to obtain direct profit for himself, without seeking approval in a company’s shareholder meeting. Following the handover of the documents to the defence, Azura directed that the trial resume on July 18. Lim, 62, is standing trial for using his position as the then Penang chief minister to solicit a 10% cut in the RM6.3 billion undersea tunnel project’s profits from Zarul, in return for aiding Zarul's company to secure the project. Lim is accused of accepting RM3.3 million in kickbacks from the director. The Bagan Member of Parliament also faces two counts of dishonest misappropriation of property in releasing two plots of state-owned land, cumulatively worth RM208.75 million, to Ewein Zenith Sdn Bhd and Zenith Urban Development Sdn Bhd — two property companies linked to the controversial undersea tunnel project. Read also: Guan Eng’s defence finally secures coveted WhatsApp messages between star witnesses in undersea tunnel graft trial

https://theedgemalaysia.com/node/607340

扯购金融及能源股 提振马股上涨

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（吉隆坡14日讯）投资者趁低吸纳重量级金融股及能源股，提振富时隆综指上涨0.33%。 截至中午12时30分，富时隆综指上扬5.14点，至1584.03点，上周五挂1578.89点。 富时隆综指今早低开1.9点，报1576.99点，盘中游走于1575.1点至1585.08点之间。 下跌股517只，上升股363只，357只无起落，972只无交易及22只暂停交易。 总成交量为17亿7000万股，总值10亿7000万令吉。 马六甲证券私人有限公司表示，国家银行计划在下个月宣布数字银行牌照名单，与数字银行相关的股票可能会成为焦点。 同时，原油价格大涨，把能源指数推高1.72%或13.55点，至802.34点。 截稿时，布兰特原油价格上涨1.1%，至每桶95.48美元。 券商说：“尽管如此，我们认为交易商可能会将注意力转向将在未来几周发布的季度业绩。” 重量级股项联昌国际集团（CIMB Group Holdings Bhd）升9仙，至5.64令吉，丰隆银行（Hong Leong Bank Bhd）扬28仙，报20.28令吉，戴乐集团（Dialog Group Bhd）涨10仙，至2.87令吉，以及国油化学（Petronas Chemicals Group Bhd）起5仙，至9.27令吉。 热门股方面，科恩马（KNM Group Bhd）持平于18.5仙，思泰科技（SMTrack Bhd）增1仙，至20.5仙，艺丽控股（AHB Holdings Bhd）扬3.5仙，报19.5仙，Hibiscus Petroleum Bhd升6仙，至1.15令吉，以及迪耐（Dagang NeXchange Bhd）起2仙，至1.11令吉。   （编译：魏素雯）   English version：FBM KLCI ends morning session mixed

https://theedgemalaysia.com/node/651491

Bursa almost flat at lunch break amid cautious sentiment

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KUALA LUMPUR (Jan 12): Bursa Malaysia settled the morning session almost flat amid cautious sentiment on regional bourses, ahead of the upcoming US Federal Open Market Committee meeting on Jan 31, said a dealer.  At lunch break on Thursday (Jan 12), the benchmark FBM KLCI had risen slightly by 0.20 of a point to 1,488.07, from Wednesday's close at 1,487.87. The market bellwether, which opened 0.70 of a point firmer at 1,488.57, moved between 1,486.15 and 1,491.35 throughout the morning session.  However, market breadth was negative, with losers outpacing gainers 390 versus 373, while 411 counters were unchanged, 1,028 untraded, and 12 others suspended. Turnover amounted to 2.17 billion units worth RM1.43 billion. Malacca Securities Sdn Bhd said the tourism and aviation sectors may remain resilient amid the influx of Chinese travellers, while the technology sector may sustain its uptrend, with the Nasdaq notching up the fourth day of gains. "Meanwhile, the energy sector may outperform the broader market, following a surge in crude oil prices," it said.  Among the heavyweights, Malayan Banking Bhd (Maybank) lost three sen to RM8.80 a share, Tenaga Nasional Bhd (TNB) shed one sen to RM9.39, Public Bank Bhd gained one sen to RM4.32, Petronas Chemicals Group Bhd added seven sen to RM8.37, and CIMB Group Holdings Bhd was flat at RM5.77.  As for the actives, DS Sigma Holdings Bhd ticked up 1.5 sen to 67 sen, Tex Cycle Technology (M) Bhd widened 5.5 sen to 65.5 sen, Leform Bhd inched up half a sen to 23 sen and SMTrack Bhd rose half a sen to 4.5 sen, and Nylex (Malaysia) Bhd decreased two sen to 43 sen.  On the index board, the FBM Emas Index garnered 14.75 points to 10,741.13, the FBMT 100 Index advanced 14.62 points to 10,438.54, the FBM Emas Shariah Index inched up 21.58 points to 10,938.67, the FBM 70 Index climbed 75.85 points to 13,345.16, and the FBM ACE Index firmed 31.00 points to 5,440.76.   Sector-wise, the Energy Index perked 8.74 points to 822.64, the Technology Index improved 0.88 of a point to 65.92, the Industrial Products and Services Index went up 0.71 of a point to 184.01, while the Financial Services Index shrank 32.66 points to 16,532.80, and the Plantation Index decreased 15.10 points to 6,919.58. 

https://theedgemalaysia.com/node/650886

Thailand brings back Covid-19 entry rules as China’s borders reopen

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(Jan 7): Thailand will reintroduce Covid-19 entry requirements for foreigners flying into the country from Monday (Jan 9), the nation’s transport minister said, as the Southeast Asian nation prepares for an expected wave of tourists from China. Adults must show proof of at least two vaccinations, or recovery from the virus since July, according to comments from Saksayam Chidchob published on the minister’s political party’s website. Unvaccinated visitors will need a medical report justifying their lack of inoculations, a Civil Aviation Authority of Thailand statement posted on site said. The rules apply until Jan 31. Additionally, visitors from countries that require Covid-19 tests for arrivals from Thailand must have health insurance during their stay, the statement said. Among nations that recently reimposed Covid entry rules, India this month began mandatory Covid-19 tests for fliers from China, Hong Kong, Japan, South Korea, Singapore and Thailand. The reintroduction of entry requirements aimed at stemming the spread of Covid-19 comes as China rapidly dismantles its zero-tolerance policies, reopening the country to the world and scrapping quarantine for arrivals from Jan 8. Thailand expects 300,000 Chinese visitors in the first quarter of this year, after it reached a target of 10 million foreign arrivals last year in a better-than-expected recovery of its vital tourism sector. Airlines are required to screen visitors’ eligibility to enter Thailand under the reimposed rules, while people suspected of displaying symptoms of Covid-19 will be advised to get tested on arrival. Passengers transiting to other destinations are exempt, the statement said.

https://theedgemalaysia.com/node/677080

MIDF Research sees Malaysia’s GDP growth moderating at 4.2% in 2023

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KUALA LUMPUR (Aug 2): MIDF Research has maintained its forecast that Malaysia’s GDP growth will moderate at 4.2% in 2023 (2022: 8.7%), weighed down by uninspiring external trade performance as real exports of goods is predicted to contract by 2.8% (2022: +11.1). Commenting on the Malaysian manufacturing sector moderating further at the start of 3Q2023, the research house said the pessimism among manufacturers in Malaysia and regionally, reflects persistent weakness in regional and global demand. In an economic brief on Wednesday (Aug 2), MIDF said Malaysia’s S&P Global Manufacturing PMI recorded at 47.8 in July 2023 (June 2023: 47.7), marking 11 straight months of contraction. It said the contraction was mainly attributable to a significant dip in new orders, as demand has consecutively paced down for the last 11 months. The research house said client confidence remained dented in domestic and international markets, with new export orders having moderated the steepest since May 2020. Meanwhile, production volumes were tapered down for the 12 consecutive months, reflecting the tepidness in demand conditions. MIDF said that in the same survey, input cost inflation is at a five-month high, while output cost inflation remains unchanged. It added that firms cited weakness in the exchange rate as one of the reasons for the rise in the cost of raw materials, although the price charged by producers remained unchanged to stimulate demand. Delivery times saw an end to the six-month sequence of shortening lead times. Both pre- and post-production inventories also decreased, as firms scaled back input buying, said MIDF.   “Nevertheless, industries remained hopeful, registering the 25 consecutive months of optimism for future output to improve. “Among regional peers, Japan, Korea, Taiwan and China also recorded manufacturing PMI below the 50-demarcation line,” it said. Read also:  Malaysian manufacturing sector moderated further at the start of 3Q2023

https://theedgemalaysia.com/node/607483

Lawyers for chief syariah judge applies for judgment in default on Umno's Lokman Noor Adam

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KUALA LUMPUR (Feb 15): Lawyers for Chief Syariah Judge Datuk Mohd Na'im Mokhtar filed an application with the High Court on Monday (Feb 14) for judgment in default to be entered on former Umno Supreme Council member Datuk Lokman Noor Adam for defaming him. This follows Lokman failing to file his defence against Mohd Na'im's RM30 million defamation suit that was due last Friday. The filing of the judgement in default application was made by the firm of Messrs Akberdin & Co on Monday. When contacted by theedgemarkets.com, Datuk Akberdin Abdul Kader confirmed the filing of the application. High Court Judge Datuk Rozana Ali Yusoff on Feb 7 directed lawyers for Lokman to file an affidavit in reply to the injunction granted to Mohd Na'im's application and also the Umno man's defence by last Friday. Last month, Mohd Na'im filed the RM30 million defamation suit against Lokman as a result of the latter's two postings on Jan 10 and 14 this year on his Facebook and YouTube channels alleging that the judge was involved in widely reported lewd acts.  It was previously reported that Rozana had granted Mohd Na'im an ex parte injunction application and directed Lokman to remove the postings he had made. The injunction has been extended until March 22 for the inter partes injunction application to be heard. An ex parte is a single party's application to be or being heard and decided, while inter partes is when the court has heard both sides — that is, the plaintiff and defendant's application to set aside the injunction. Meanwhile, in another High Court on Tuesday, Judicial Commissioner Datuk Mohd Arief Emran Arifin fixed April 1 to 4, 2022 as trial dates of lawyer Rosli Dahlan's defamation suit against Lokman. The dates were fixed following case management on Tuesday for the parties to update the court on the status of the case to make sure all pretrial conditions are met. Rosli was represented by Syafinaz Vani from Messrs Rosli Dahlan Saravana Partnership, while Fakhrul Redha Paridul Adras from the Chambers of Fakhrul Redha appeared for Lokman. Prior to this, it was reported that Rosli, whose firm had acted in SRC International Sdn Bhd and some 1Malaysia Development Bhd (1MDB) cases, had obtained a permanent injunction against Lokman after the Umno politician failed to set it aside last July. The lawyer filed the defamation suit against Lokman for purportedly making false allegations that the lawyer had received 10% of the RM17 billion settlement by Goldman Sachs to the Malaysian government in the 1MDB matter as legal fees. Lokman also alleged that Rosli then gave RM500 million from the RM1.7 billion in fees that he allegedly received as a kickback to Parti Pribumi Bersatu Malaysia. The politician also claimed that Rosli benefited from the RM2.83 billion AmBank settlement with 1MDB. The lawyer had categorically denied and rebutted these as fabrications and falsehood, and hence filed the suit. Read also: Injunction against Lokman for defamatory posts concerning Syariah judge extended to March

https://theedgemalaysia.com/node/602023

2021年新上市公司增53%至29家

Mandarin

（吉隆坡31日讯）大马交易所今年有29家新上市公司，较2020年的19家增加53%。 根据马交所的数据，这使得在马交所上市的公司从去年的936家，增至949家。 今年的首次公开募股（IPO）中，有6家是主板、11家在创业板，以及12家在杰出企业家加速器平台（LEAP）市场上市。 这其中包括在主板上市的Swift Haulage Bhd和怡保花园商业产托（IGB Commercial Real Estate Investment Trust）、创业板上市的HPP控股（HPP Holdings Bhd）和Mobilia控股（Mobilia Holdings Bhd），以及LEAP上市的Jishan Bhd。 马交所指出，2020年新上市公司从2019年的30家，跌至19家。 然而，马交所没有具体说明新上市公司增减的原因。 市场观察人士认为，2020年全球市场的关键是新冠疫情，之后的行动限制措施影响了全球经济和商业增长。 至于2021年，新冠疫苗接种的进展为经济和商业正常化带来希望，因而提振全球市场。   （编译：陈慧珊）   English version：Bursa’s number of new listings rises 53% to 29 in 2021

https://theedgemalaysia.com/node/654653

Ta Win’s MD Ngu Tieng Ung emerges as Khee San’s largest shareholder

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KUALA LUMPUR (Feb 9): Ta Win Holdings Bhd’s managing director Datuk Seri Ngu Tieng Ung has emerged as Khee San Bhd’s largest substantial shareholder, according to the candy maker’s filings on Thursday (Feb 9).  This came after Khee San director Datuk Mohamad Razali Mohamad Rahim ceased to be the candy maker’s major shareholder on Thursday, having offloaded all 22.8 million shares, or a 16.667% stake, by way of a direct business transaction at 13 sen apiece, or RM2.97 million in total. Ngu bought that block of shares through Timur Enterprise Sdn Bhd, raising his stake in Khee San to 16.754%. This makes Ngu the single largest shareholder of Khee San, while founder of security seal manufacturer Mega Fortris Malaysia Sdn Bhd, Datuk Dr Ng Meng Kee, holds a 12.42% stake.  According to Ta Win’s annual report, Ngu has close to two decades of experience as an accountant-turned-entrepreneur and a venture capitalist with specialisation in corporate finance, business consultancy, investment banking and venture capital. He has direct and indirect stakes of 0.56% and 13.6% respectively in Ta Win, which is involved in the manufacturing and sale of copper wires and copper rods. Khee San slipped to Practice Note 17 status in November 2021, after its wholly owned subsidiary Khee San Food Industries Sdn Bhd was placed under judicial management following an application by Maybank Islamic Bhd to put the unit under court-supervised restructuring. The company has until May 17 to submit its regularisation plan to the relevant authorities for approval. It incurred a higher net loss of RM2 million for 1Q ended September 30, 2022 against RM1.89 million in the same quarter a year ago. Khee San’s shares jumped three sen or 21.43% to 17 sen on Thursday, translating into a market capitalisation of RM23.34 million. 

https://theedgemalaysia.com/node/667489

Bursa retreats after opening marginally higher

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KUALA LUMPUR (May 18): Bursa Malaysia opened slightly higher on Thursday (May 18) but retreated within minutes despite Wall Street’s rallies overnight as the market speculated about a positive outcome from the US' ongoing debt ceiling negotiations, a dealer said. At 9.11am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.49 points to 1,422.85 from 1,424.34 at Wednesday's close. The barometer index opened 0.4 points higher at 1,424.74. On the broader market, gainers led losers 158 to 120, while 234 counters were unchanged, 1,734 untraded and 13 others suspended. Turnover stood at 236.98 million units worth RM93.64 million. Malacca Securities Sdn Bhd said the ongoing negotiations on the US debt ceiling contributed to the Wall Street’s strong overnight performance, adding that the market has also been reducing exposure to gold. On commodities, Brent crude oil price surged to above US$75 per barrel, while crude palm oil fell to below RM3,500 per tonne and gold prices eased to below US$2,000 per ounce. “Following Wall Street’s positive performance, we believe traders may look into riskier sectors soon. “We expect the healthcare-related stocks to take the lead on the back of recovering earnings, while investors may look into poultry stocks for investment opportunities after Teo Seng Capital’s stellar results,” the brokerage firm said. However, it said the state elections, coupled with the ongoing earnings season could cap the upside potential at least for the near term. Among the heavyweights, Malayan Banking Bhd gained two sen to RM8.73, Petronas Chemicals Group Bhd rose two sen to RM7, Tenaga Nasional Bhd lost 12 sen to RM9.63 and CIMB Group Holdings Bhd eased one sen to RM4.97, while Public Bank Bhd was flat at RM3.96. As for the actives, Revenue Group Bhd inched up one sen to 32 sen, Dagang NeXchange Bhd gained one sen to 46.5 sen, YTL Corp Bhd trimmed one sen to 74 sen, while Bahvest Resources Bhd stood at 11.5 sen, followed by Classita Holdings Bhd at 15 sen and Meta Bright Group Bhd at 18 sen, as all three counters were flat. On the index board, the FBM Emas Index shaved 6.61 points to 10,434.83, the FBMT 100 Index declined 7.24 points to 10,129.28, the FBM Emas Shariah Index went down 12.47 points to 10,799.19 and the FBM ACE Index slipped 3.58 points to 4,993.2. However, the FBM 70 Index advanced 4.31 points to 13,588.33. Sector-wise, the Industrial Products and Services Index inched up 0.02 of-a-point to 166.44, the Financial Services Index gained 7.23 points to 15,512.84 and the Energy Index added 3.06 points to 837.63, but the Plantation Index fell 27.25 points to 7,021.17.

https://theedgemalaysia.com/node/662163

SC adds one potential clone to Investor Alert List

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KUALA LUMPUR (April 5): The Securities Commission Malaysia (SC) has updated its Investor Alert List. In an alert on Tuesday (April 4), the commission said the following entity was added to the list: The Investor Alert List contains a list of unauthorised websites, investment products, companies and individuals, including:

https://theedgemalaysia.com/node/603829

AirAsia active, falls to over one-year low on classification as PN17 company

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KUALA LUMPUR (Jan 14): AirAsia Group Bhd slipped to an over one-year low of 55 sen on Friday (Jan 14) after Bursa Malaysia dismissed its appeal from being classified as a PN17 company. The counter, which opened seven sen lower at 67.5 sen, fell as much as 19.5 sen or 26.17% to a low of 55 sen. The last time the stock declined to 55 sen was on Oct 30, 2020. At 10.04am, the counter pared some losses at 63 sen, still down 11.5 sen or 15.44%. The counter saw 227.9 million shares traded. Meanwhile, Bursa Malaysia Securities Bhd said on Friday that the short selling under proprietary day traders (PDT) and intraday short-selling (IDSS) for AirAsia's stock has been suspended for the rest of the day as the last done price of the approved securities dropped more than 15 sen from the reference price. The short selling under PDT and IDSS will only be activated the following trading day (Monday, Jan 17 at 08:30am). AirAsia said in a bourse filing on Thursday that an application was submitted to Bursa Malaysia for the relief period to be extended beyond Jan 7. “The board of directors wishes to inform that after due consideration of all facts and circumstances including all written representations and documents submitted before Bursa, Bursa has decided to dismiss the appeal,” it said. AirAsia triggered the PN17 suspended criteria in July 2020 after its external auditors Ernst & Young PLT issued an unqualified audit opinion with material uncertainty relating to going concern in respect of its audited financial statements for the financial year ended Dec 31, 2019 (FY19) and its shareholders’ equity on a consolidated basis was 50% or less of its share capital. The airline had also triggered the prescribed criteria pursuant to Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market Listing Requirements, where AirAsia's shareholders' equity on a consolidated basis was 25% or less of its share capital and such shareholders' equity is less than RM40 million based on the audited financial statements for FY20. Due to the relief measures of Bursa and the Securities Commission Malaysia, AirAsia was not classified as a PN17 listed issuer for a period of 18 months from the date of the first relief announcement. Read also: AirAsia classified as PN17 company after Bursa dismisses its appeal

https://theedgemalaysia.com/node/615581

Brahim's plunges as much as 73.9% on rejection of extension to submit regularisation plan

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KUALA LUMPUR (April 8): Practice Note 17 (PN17) company Brahim’s Holdings Bhd shares slumped as much as 8.5 sen or 73.91% to three sen on Friday (April 8) after the regulator rejected its application for an extension of time to submit its regularisation plan. At 10.43am, the counter had pared losses at five sen, still down 6.5 sen or 56.52%. At five sen, it was valued at RM21.5 million. The counter was the most actively traded stock, with 128.51 million shares done. Year to date, the counter has tumbled 44.44%. Brahim’s said in a bourse filing on Thursday that following the rejection by the stock exchange operator, shares in the airline caterer will be suspended from trading effective April 15. Brahim’s securities will be delisted on April 20 unless an appeal against the delisting is submitted to Bursa Securities on or before April 14. Any appeal submitted after the time frame will not be considered by Bursa Securities, the company added. It also said in the event it submits an appeal to Bursa Securities within the appeal time frame, the delisting of its securities from the official list of Bursa on April 20 will be deferred, pending the decision on the company’s appeal. However, it said Bursa Securities shall proceed to suspend trading of the company’s securities on April 15 even though the decision on the company’s appeal is still pending. Read also: Trading of Brahim's shares to be suspended on April 15 as extension request quashed 

https://theedgemalaysia.com/node/628432

MRT Corp CEO gets three-month extension

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KUALA LUMPUR (July 17): Mass Rapid Transit Corp Sdn Bhd (MRT Corp) Chief Executive Officer (CEO) Datuk Mohd Zarif Hashim is understood to have obtained a three-month extension to his contract, sources familiar with the matter tell The Edge. While the sources are tight lipped, they say that the three-month extension could very well be an interim measure before his tenure is extended for a longer period. MRT Corp did not reply to questions sent by The Edge last week.   Mohd Zarif’s two-year contract is understood to have expired recently on July 14. “It (Mohd Zarif’s extension) is a three-month extension pending some interim issues, but it could be extended further, even before the three months is up… There is a lot going on now at MRT Corp. The MRT3 tenders are closing soon, and this is one of the few [if] not the only big construction project on now. What needs to be said is that the government is committed to undertake the MRT3,” one source says. Another source said on Friday (July 15), a day after his contract had expired: “He is still at MRT Corp, still at work, so what I understand is there is an extension,” he said. After some thought, he said, “It is good to have continuity”. Another source who knew of the three-month extension, had said that there was immense lobbying for the CEO position as the entire contract value of the MRT3 could be pegged at close to RM40 billion, with the construction cost expected to be about RM31 billion. MRT Corp is also understood to be adopting a hybrid financing model, although the Ministry of Finance has given a RM50 billion funding commitment, with contractors expected to shoulder the responsibility of funding the project as well. “It’s huge, so of course there is a lot of lobbying for the CEO position,” he said.     The MRT3, which is a big-ticket infrastructure project, is likely to be a catalyst for the construction sector with a huge ripple effect that could possibly positively impact the economy. Also known as the Circle Line, the MRT3 is scheduled to be fully operational by 2030, with the first phase completion expected to conclude in 2028, subject to land acquisition process. The third MRT line will have a circular alignment running along the perimeter of Kuala Lumpur City, with a length of about 51 kilometres (km) split between 40km of elevated tracks and 11km of underground tunnels, according to MRT Corp. The current proposed alignment of the MRT3 will have 31 stations, with 10 of them serving as interchange stations with the eight existing rail lines in Klang Valley. The construction cost of RM31 billion for MRT3 is similar to the cost of the MRT2 Sungai Buloh-Serdang-Putrajaya (SSP) Line, which recently commenced operations. The first MRT Sungai Buloh-Kajang (SBK) Line cost RM21 billion and commenced operations in end 2016. Mohd Zarif’s contract extension had come under the spotlight recently, after a controversy where he had taken former prime minister Datuk Seri Najib Razak and some of his family members on a preview of the Putrajaya MRT Line, a day before Prime Minister Datuk Seri Ismail Sabri Yaakob launched the service in mid-June. If there are no cost overruns at MRT3, the government would have dished RM83 billion for the three MRT lines, which require the costs of travel to be subsidised for them to be functional. For its financial year ended December 2020, MRT Corp suffered an after-tax loss of RM8.94 billion, down 22.4% from a year earlier, where it bled RM7.3 billion in after tax losses. As at end December 2021 as well, MRT Corp had accumulated losses of a whopping RM52.98 billion.

https://theedgemalaysia.com/node/629172

Former Bank Pembangunan managing director Mohd Zafer passes away

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KUALA LUMPUR (July 22): Former president/group managing director of Bank Pembangunan Malaysia Bhd (BPMB) Datuk Mohd Zafer Mohd Hashim has passed away in London. Mohd Zafer was most recently in the news as one of the defendants in a legal action initiated by BPMB, over a RM400 million loan granted to Aries Telecoms (M) Bhd. The RM400 million loan, which was approved in May 2012, was to partly finance a RM1.3 billion project undertaken by Aries to instal a fibre optic network around Peninsular Malaysia. One of the lawyers close to the case informed The Edge that Mohd Zafer had passed away.   The lawyer confirmed that the court was told of Mohd Zafer's passing on Friday morning at a case management in the BPMB case. The late Mohd Zafer began his career with Price Waterhouse in London. He was previously chief financial officer of Maybank Investment Bank Bhd and Bank Muamalat Malaysia Bhd. Prior to his stint at Bank Muamalat Malaysia, he was attached to MMC Corporation Bhd as a general manager. His directorship in companies within the Bank Pembangunan group included being a director of Global Maritime Ventures Bhd. He also sat on the board of Malaysian Bulk Carriers Bhd and Malaysia Industry-Government Group for High Technology (MIGHT). Read also: Bank Pembangunan sues former MD and 26 others for alleged fraud, bribery  How come MACC has not charged anyone over Bank Pembangunan loan scandal, asks Rafizi

https://theedgemalaysia.com/node/676440

Chipmakers signal supply glut easing but demand recovery still slow

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SEOUL (July 28): From Intel to Samsung, global chipmakers are celebrating the beginning of the end of a semiconductor supply glut, but the outlook for demand from customers outside the artificial intelligence (AI) industry remains gloomy. All the major markets for chips — smartphones, PCs and data centres — have shrunk this year, as both corporate customers and consumers scale back spending amid a weak global economy, high inflation and rising interest rates. This has created an unprecedented oversupply of commodity chips, causing a record combined 15.2 trillion won (RM54.5 billion) first-half operating loss for the world's two largest memory chipmakers, Samsung and SK Hynix. This glut, however, has started to ease largely due to production cuts and as a decline in PC shipments eased to 11% in the June quarter compared to a 30% slump in each of the previous two quarters, data from tech analysts Canalys showed. The smartphone market is also improving, with cellphone shipments falling 8% in the June quarter, versus 14% in the first quarter, according to research firm Counterpoint. "Demand is recovering very gradually," Woohyun Kim, chief financial officer at SK Hynix, said on an earnings call this week. "The recent improvement in PC shipments has been mainly led by promotions and low-end models, meaning it provided limited impact on chip demand recovery," he said, adding that shipment forecasts for PCs and smartphones this year have been downgraded from earlier predictions. While demand for chips to support generative AI has rapidly increased since OpenAI's ChatGPT was launched late last year, the sector still accounts for a small fraction of overall chip demand and is crimping corporate spending on servers, as some companies prioritize investment in AI. Intel CEO Pat Gelsinger said on Thursday (July 27) an inventory glut in server central processing units (CPUs) will persist until the second half of the year and that data centre chip sales will decline modestly in the third quarter before recovering in the fourth quarter. A sluggish recovery in China, the world's biggest chip buyer, is also dampening the overall outlook. Both Samsung and SK Hynix said China's reopening failed to live up to expectations that it would revive the smartphone market, and that they were extending production cuts of NAND memory chips, widely used in smartphones to store digital data. Analog chipmaker Texas Instruments, which has heavy exposure to China, forecast third-quarter revenue and profit below Wall Street targets on Tuesday, bogged down by a sluggish recovery in end-market demand that has forced clients to cancel orders. "China was roughly half of sales at the end of fiscal 2022, so China has the largest impact on TI's business," said Logan Purk, analyst at investment firm Edward Jones. Manufacturers of the equipment used to make chips such as KLA Corp and Lam Research are early winners of the AI boom. Both companies forecast quarterly revenue above Wall Street estimates this week, sending their shares higher. "Advanced AI servers have significantly higher leading-edge logic, memory and storage content versus traditional servers, and every incremental 1% penetration of AI servers and data centres is expected to drive US$1 billion to US$1.5 billion of additional (chip equipment) investment," Lam CEO Tim Archer said on a conference call with analysts. Chipmakers are also increasing production of the high-end chips used to support AI related chips. SK Hynix said demand for AI server memory had more than doubled in the second quarter compared to the first quarter. Its DRAM chips, which hold information from applications while the system is in use, sold for a higher price in the second quarter versus the first, on average. The company leads the market in high bandwidth memory (HBM) DRAM used in generative AI. It had a 50% market share in HBM as of 2022, followed by Samsung' 40% and Micron's 10%, according to TrendForce.    

https://theedgemalaysia.com/node/655914

MITI: Battery EV demand up 11-fold to over 3,400 units in 2022, charging points up 51% from 2020

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KUALA LUMPUR (Feb 20): Demand for electric vehicles (EVs) in the fully battery electric vehicle category jumped by more than 11 times to over 3,400 units in 2022, compared with an average of 300 units annually in past years, according to the Ministry of International Trade and Industry (MITI).  Deputy Minister Liew Chin Tong also told the Dewan Rakyat on Monday (Feb 20) that the number of charging stations stood at 900 units in 2022, an increase of 51% from 2020. He said the total number of ready EV and hybrid units in Malaysia currently stands at 21,659 units. Liew was responding to Tebrau Member of Parliament Jimmy Puah Wee Tse, who asked the ministry to state its policy to encourage the use of EVs, and to set up more charging points nationwide.  Liew, who is also the Iskandar Puteri MP, said there is a proposal to increase the number of EVs, including hybrids, as department vehicles and official vehicles, and the proposal is being refined by the Ministry of Finance. “Land public transport vehicles will also continue to be encouraged to convert to vehicles that use electricity," he added.  While the government has offered tax breaks for EVs in Budget 2022, Liew said additional incentives had also been proposed for the revised Budget 2023 to be announced on Friday (Feb 24). The previously announced tax incentives included the complete exemption of import duty, excise duty and road tax for EVs that are assembled locally or imported as completely built-up (CBU) units.  “The current import permit or approved permit guidelines have been improved by providing flexibility on the maximum quantity of vehicles imported as CBU [units] for market research pre-assembly of EVs, so that local assembly companies have more opportunities to assess new market needs for the EV segment before starting production,” Liew said. “In addition, mobility service providers are also given the same flexibility in terms of importing CBUs for EVs. This improvement gives more EV options to be offered in the market to the people.”  Liew on Monday also said the Malaysian Green Technology and Climate Change Corporation (MGTC) is developing a strategic framework for the development and planning of overall EV charging infrastructure in Malaysia.  “The current procedure for the electric vehicle charging system (EVCS) is being studied to reduce the installation approval processing time. The Energy Commission has also issued a guide for EVCS installation activities to ensure that the installed EV charging system is safe for users to use, in addition to complying with the technical requirements,” he added.  MITI is responsible for transforming the automotive industry from the production of internal combustion engine type vehicles to EVs, in line with the energy efficient vehicle target under the National Automotive Policy 2020. For more Parliament stories, click here.

https://theedgemalaysia.com/node/617852

Court sets July 25 for interlocutory injunction hearing in Ismail Sabri's defamation suit against Agenda Daily

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KUALA LUMPUR (April 27): The High Court has set a new hearing date for the interlocutory injunction in Prime Minister Datuk Seri Ismail Sabri Yaakob's defamation suit against news portal Agenda Daily. The matter which was set to be heard on Wednesday (April 27) has now been set for July 25, following case management. Joshua Tan Jo-Ven, Ismail Sabri's counsel, confirmed this with theedgemarkets.com when contacted.   Ismail Sabri, in his personal capacity, is suing Agenda Daily for defamation over its article titled “Ismail Sabri bimbang jadi PM paling singkat, ‘rayu’ jangan tarik sokongan” (“Ismail Sabri concerned about being the PM with the shortest tenure, begs not to retract support”). Muhamad Izwan Mohd Zubit, the sole proprietor of Agenda Daily Media Enterprise which owns the news portal, is named the sole defendant in this suit. On Feb 18, the High Court granted an interim injunction for the article to be removed, a restrain on the defendant from making similar defamatory statements on any websites or social media platforms maintained by the defendant as well as from making similar statements as the article. On March 4, the High Court granted another ad interim injunction to maintain the status quo pending the disposal of the inter parte injunction application. In his statement of claim, Ismail Sabri contended that the article published contained ill-intentioned and defamatory statements. He also claimed that the article has seriously injured his character, credit and reputation as the PM and as a member of Umno. He is currently vice president of Umno. It also implied that he was desperate to hold on to the office at all cost and that he was willing to beg certain political parties for their continued support. Muhamad Izwan in his statement of defence refuted that the article contained defamatory and malicious statements. He claimed that he and his company had practised responsible journalism. He added that should Ismail Sabri disagree with the analysis, he as the premier and a notable politician always had the space and opportunity to refute the analysis and commentary in the article. Read also: Ismail Sabri: I have never begged any party for support to remain as PM

https://theedgemalaysia.com/node/618644

马股随大市收低

English

（吉隆坡5日讯）公用事业和科技等股遭抛售，马股跟随大市收低。 闭市时，富时隆综指跌17.45点或1.09%，以1582.98点挂收。 综指今早以1614.34点报开，较上周五收盘的1600.43点，上涨13.91点。日内于1576.84点和1615.17点之间波动。 下跌股达628只、上升股380只，另有421只无起落、809只无交易，以及16只暂停交易。 成交量26亿8000万股，值23亿8000万令吉，相比上周五的28亿1000万股和20亿7000万令吉。 乐天交易股票研究副总裁Thong Pak Leng指出，尽管隔夜美国股市造好，但由于投资者趁机套利，亚洲主要股市走低。 他向马新社说：“长假后恢复交易的中国股市则走高。” 新加坡海峡时报指数跌0.16%、韩国首尔综合指数和日本日经指数皆下滑0.11%，以及香港恒生指数收低0.36%。 Thong表示，在种植和博彩股带动，综指高开，惟在攀升至1615.17点的盘中高位后，出现套利活动，并延续跌势至收盘。 “由于在1600点水平面对强大阻力，我们预计综指暂时将保持盘整模式。” “因此，综指周内料在1580和1590点区间窄幅波动。 重量级股中，马银行（Malayan Banking Bhd）跌8仙，收于8.99令吉、大众银行（Public Bank Bhd）减6仙，至4.63令吉、IHH医疗保健（IHH Healthcare Bhd）下滑1仙，报6.60令吉、联昌国际集团（CIMB Group Holdings Bhd）跌9仙，挂5.11令吉，而国油化学（Petronas Chemicals Group Bhd）升8仙，报10.30令吉。 至于热门股，PUC控股集团（PUC Bhd）和大稳控股（Ta Win Holdings Bhd）各跌1.5仙，分别挂6仙和13.5仙、MN控股（MN Holdings Bhd）跌2.5仙，报22仙，而宏进工业（Permaju Industries Bhd）平盘收于9.5仙，Sedania创新（Sedania Innovator Bhd）则涨11仙，至47仙。   （编译：陈慧珊）   English version：Bursa Malaysia ends lower on May 5, in sync with regional markets

https://theedgemalaysia.com/node/651902

Japanese yields top policy cap for second day, defying massive BOJ buying

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TOKYO (Jan 16): Japan's 10-year government bond yield topped the Bank of Japan's policy ceiling for a second straight trading session on Monday, despite a new wave of emergency bond-buying operations by the central bank. The 10-year JGB yield jumped 1 basis point to 0.510% at the start of the session, exceeding the BOJ's 0.5% cap. The announcement of unlimited fixed-rate purchase operations in maturities up to 10 years and another 1.4 billion yen (US$11 million) of unscheduled buying across the curve was slow to take effect on the yield, but by 0536 GMT had brought it back to 0.5%. The BOJ will begin a two-day meeting on Tuesday, and speculators continue to pile on bets that Governor Haruhiko Kuroda and his team could be forced to tweak policy again. In December, the BOJ surprised markets by doubling the margin of tolerance for 10-year yields to 50 basis points either side of its 0% target. While another widening of that band is seen as the most likely option should the BOJ move again, more extreme options include scrapping yield curve control (YCC) altogether, or even raising the negative overnight interest rate. "The market is pricing in a chance of a hike in the short-term rate — not necessarily at this meeting, but in the next few meetings — and that's the source of the yield spike," said Naka Matsuzawa, chief Japan macro strategist at Nomura. "That's what the BOJ wants to fight against most. The BOJ is firmly against the notion of raising the short-term policy rate." Matsuzawa also highlighted the conundrum for speculators if the BOJ forgoes a change on Wednesday: with the next meeting not until March — the last of Kuroda's career — can they continue to short the 10-year bond for so long when it has been the focus of the BOJ's buying operations? Monday's rise in yields was dwarfed by the spike on Friday, when they hit the highest since mid-2105 at 0.545%, before being calmed by a record 5 trillion yen of buying by the BOJ. Central bank policy makers have not spoken out about the market ructions because they in a blackout period before this week's meeting. But Kuroda has insisted that the widening of the yield band was to correct market distortions, not the start of a stimulus exit. Market participants say that functioning has actually deteriorated since then. That puts BOJ officials in a predicament, because further tweaks could again backfire by stoking already red-hot speculation about a capitulation on decades-old ultra-easy policy. Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management, takes the contrarian view that a bold doubling again of the yield ceiling to 1% could actually lessen the pressure on the bond market. "If the BOJ completely discards yield curve control, many people estimate JGB yields should stay around 0.9% to 1%," he said. "Of course, speculation would continue for a complete discarding of YCC, but the momentum of speculation would gradually become moderate," he added. "The attack on the BOJ could become a little bit more moderate as time goes by."

https://theedgemalaysia.com/node/671410

Carving up the bond market swells into US$39b ETF business

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(June 16): Money managers are flocking to extremely precise fixed-income exchange-traded funds as a hawkish central bank and economic uncertainty batter the bond market. Assets in BlackRock Inc and Invesco Ltd’s maturity-focused bond ETFs, which hold debt maturing in a certain year, have soared to all-time highs this year, data from the issuers show. BlackRock’s iBonds lineup now holds over US$22 billion (RM101 billion), while Invesco’s BulletShares suite of funds isn’t far behind with over US$16 billion. The highly specific ETFs were once niche products with a couple billion dollars between them a decade ago. In recent years, they have ballooned amid sticky inflation and the Federal Reserve’s historically aggressive campaign to cool it. That backdrop fuelled volatility across fixed-income markets as yields rocketed higher over the past year. As a result, money managers and financial advisers are hyper-focused on managing interest-rate risk in portfolios, according to VettaFi’s Dave Nadig. “Advisers and quasi-institutional folk are all about balancing credit and duration risks on the head of a pin right now,” said Nadig, financial futurist at data provider VettaFi. “Almost literally every conversation I have with an adviser is about what the heck to do about the bond portion of their portfolio.” Managing duration risk — a measure of sensitivity to rate changes — has taken on a increased urgency over the past year after policymakers lifted rates by 500 basis points from rock-bottom levels over 10 consecutive hikes. Benchmark 10-year Treasury yields currently stand near 3.7%, after entering March 2022 near 1.7%. Financial markets were dealt another harsh lesson about the dangers of duration this past March. Silicon Valley Bank’s portfolio of long-dated Treasuries — accumulated when rates were still pinned at ultra-low levels — played a starring role in the lender’s stunning collapse. The heightened focus on rate risk has benefited BlackRock and Invesco. The Invesco BulletShares 2024 Corporate Bond ETF (ticker BSCO) is the category’s heavyweight with US$3.9 billion in assets, followed by the US$2.9 billion iShares iBonds Dec 2023 Term Treasury ETF (IBTD). In the case of the iBonds and BulletShares products, when the securities held by the ETF reach their maturity date, the fund shuts down. BlackRock has launched 64 such funds since 2010, 30 of which have reached maturity. Invesco has created 57 duration-focused funds since its first debuted in 2010, 28 of which are still trading. The demand for these bond funds — particularly ones that hold shorter-dated debt — has also been a boon for startup ETF issuers. The US Treasury 3 Month Bill ETF (TBIL) has collected over US$1 billion since launching last August, leading F/m Investments’ stable of single-maturity bond funds. Meanwhile, BondBloxx Investment Management LLC’s duration-focused funds have attracted cash as well. The BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) has already reached about US$758 million in assets after launching in mid-September. “Buying a portfolio of securities, for any investor, for any investment management firm, is a lot of work,” Bondbloxx co-founder Joanna Gallegos said in a Bloomberg Radio interview. “ETFs give you that exposure with one trade, one click, it settles in your account. It’s very simple for asset managers and investment managers to use them for that exact exposure.”

https://theedgemalaysia.com/node/629521

创建集团获2.25亿令吉房屋发展工程

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（吉隆坡25日讯）林木生集团（LBS Bina Group Bhd）的建筑臂膀——创建集团（MGB Bhd）获Akitek Akiprima私人有限公司（AASB）授予价值2亿2503万令吉的合同，在雪兰莪Bandar Putra Permai进行房屋发展项目。 创建集团独资子公司MGB Construction & Engineering私人有限公司（MGBCE）接受了由AASB代表林木生集团子公司Utuh Aspirasi私人有限公司（UASB）发出的中标函。 创建集团指出，发展项目分为两个阶段，分别价值1亿4574万令吉和7929万令吉。 两个阶段都需要建造1栋29层的建筑物，包括725间商业服务公寓以及其他配套设施。 创建集团表示，加上这份最新的合同，目前尚未完成订单总额高达20亿8000万令吉。 “这份合同不会影响公司的缴足股本，但将在合同期限内，为集团的收益及每股净资产作出积极贡献。” 值得注意的是，创建集团执行副主席丹斯里林福山也是林木生集团主席兼大股东。 创建集团周一收报55.5仙，市值为3亿2837万令吉。从年初至今，该股下滑了26%。   （编译：魏素雯）   English version：MGB bags RM225 mil housing development job

https://theedgemalaysia.com/node/649904

Help MSMEs become globally competitive with more development programmes — Matrade

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KUALA LUMPUR (Dec 29): The Malaysia External Trade Development Corp (Matrade) said micro, small and medium enterprises (MSMEs) need more development programmes that would enable them to become globally competitive. Matrade chief executive officer Datuk Mohd Mustafa Abdul Aziz said the requirements to compete in international markets have changed significantly over the past few years, with buyers no longer basing their decisions solely on prices. "Policymakers, numerous stakeholders, and consumers now have different expectations and are more concerned about the significance of adopting sustainability measures," he said in a statement on Thursday. Mohd Mustafa also said exporters must invest in developing sustainable export strategies that promote and adopt environmental, social, and governance principles in their production process and global supply chain to meet changing market requirements. "Business governance and operations, including community care, must be centred on socio-economic trends. Our MSMEs need the relevant certifications, standards, labelling, and global endorsement in order to compete on a global scale and in high-value markets," he said. He explained that to do this, MSMEs should keep up with effective facilitation while pragmatically modifying some development programmes to fully realise their global potential in the current economic climate. "Our MSMEs must be prepared for the digital age, which goes beyond simply having websites, which includes exposing them to cutting-edge technology like the metaverse," he said. Highlighting e-commerce marketing as another key area, Mohd Mustafa said Matrade has long introduced a programme called the eTrade Programme (now eTrade 2.0) to expedite the learning and adoption of e-commerce marketing as a tool to export among local MSMEs. "We must develop new capabilities in order to further diversify our strengths. "With regard to international trade, Matrade urges all relevant parties to work with us to develop new areas of strength such as the service sector and environmentally friendly and highly innovative sectors," he said. He noted that Matrade has since forged high-value partnerships with industry players across various segments such as Google, DHL Express, CIMB, Malaysian Green Technology and Climate Change Corp, Sirim, and Bank Islam, among others. As Malaysia endeavours to strengthen existing partnerships and forge new ones with nations in the region, he said the country's commitment to free trade and open economies will bolster Malaysia's capabilities to compete in the international market and ensure economic prosperity for years to come. Meanwhile, Mohd Mustafa said the presence of Malaysian businesses in the global supply chain contributes to its stability and the country can undoubtedly continue to solidify its position as a strong and reliable trading nation. "Malaysia can benefit from opportunities brought about by greater globalisation and regional economic integration through the Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership by utilising its strategic location. "Additionally, globalisation has immense potential for Malaysia, offering wider access to markets, investment, and resources to facilitate Malaysia's economic growth," he said. As Malaysia continues to pursue greater international trade, he said there are many opportunities that can be leveraged over the next three to five years. He said Malaysia is expected to see a surge in demand for its products and services, provided the readiness of local companies is addressed and pragmatic in the market access approach. Mohd Mustafa also said Malaysia's move to position itself at the forefront of the digital economy by leveraging its expertise in technology, communications infrastructure, and local knowledge will be a key catalyst to the country's export growth. "Most initiatives in Malaysia are focused on providing better access to resources such as finance, technology, skills, and talent, and these efforts help improve Malaysia's infrastructure and connectivity to the global economy. "We must continue to strengthen our presence in international trade through the World Trade Organization and other regional organisations as well as encourage the use of free trade agreements as an instrument to boost market access," he said. Mohd Mustafa said Malaysia must also be ready for changes in the nature of international trade, such as growing tariffs, protectionism, and production costs. "We must work concertedly to make sure that its trade laws are adaptable to these developments and that Malaysia is in a good position to take advantage of emerging opportunities in global trade, such as the digitalisation of processes, blockchain technology, and e-commerce platforms. "Finally, our companies must continue to invest in their human capital and foster innovation through education and training. Investments in upskilling its workforce will help Malaysian companies remain competitive by developing innovative skills and technologies to strengthen its position in both the domestic and international markets," he said. Malaysia must also keep its commitment to sustainable development, which is essential for the country's long-term development and success in the rapidly evolving global trade environment, he said.

https://theedgemalaysia.com/node/673453

Sapura Energy won't appeal Rafizi's bid to obtain documents on ex-CEO's remuneration

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KUALA LUMPUR (July 4): Sapura Energy Bhd has decided to not pursue its appeal against the Sessions Court's decision to allow Economy Minister Mohd Rafizi Ramli's discovery application to obtain documents concerning its former CEO Tan Sri Shahril Shamsudin's remuneration package. Following that, High Court judge Datuk Nik Hasmat Nik Mohamad recorded a consent order on Tuesday (July 4). Initially, Nik Hasmat had fixed Aug 8 to hear Sapura’s appeal. This was confirmed by Rafizi’s counsel Navpreet Singh to The Edge. Kwong Chiew Ee appeared for Sapura Energy. Navpreet said the Sessions Court then fixed Aug 19 for pre-trial case management to obtain further directives. Previously, it was reported that Sapura Energy had filed an appeal against Sessions Court judge Lailatul Zuraida Harron @ Haron’s decision on April 14 to allow the application. Lailatul Zuraida found that the documents concerning Shahril’s remuneration were relevant to the Pandan member of Parliament as he is the defendant in a defamation lawsuit filed by Shahril against him. Lailatul Zuraida also ordered Sapura Energy to produce the document within one month, but the company appealed and sought an interim stay, which Lailatul Zuraida granted on May 8. Shahril had filed a defamation suit against Rafizi, who is also PKR deputy president, over statements he made that were published in three articles via his social media accounts, in response to former prime minister Datuk Seri Najib Razak asking the government to save Sapura Energy by injecting more funds into the company. Rafizi said that public funds should not be used to protect the elite. In his defence, Rafizi said he was justified in raising the matter, and that Shahril’s remuneration when he served as CEO was not commensurate with Sapura Energy’s financial performance. Read also: August hearing for Sapura Energy’s appeal against Rafizi’s discovery application on ex-CEO Shahril’s remuneration Rafizi succeeds in bid to get Sapura Energy to produce documents revealing ex-CEO Shahril's remuneration package  

https://theedgemalaysia.com/node/641650

温和套利活动 拖累马股微跌

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（吉隆坡28日讯）今早甫开市，本地银行股、种植股及电讯股出现另一轮温和套利活动。 截至早上9时05分，富时隆综指微跌0.52点，至1453.57点，周四收于1454.09点。 富时隆综指以1454.54点报开，微扬0.45点。 上升股135只，下跌股103只，207只无起落，1924只无交易及83只暂停交易。 马股总成交量为8700万股，总值3900万令吉。 马六甲证券私人有限公司表示，华尔街负面情绪和欧洲央行加息可能会蔓延到本地，而富时隆综指短期内的上涨潜力可能有限。 华尔街收盘涨跌互现，道琼斯指数连续第五天上涨，但标准普尔500指数和纳斯达克指数因Meta Platforms、亚马逊（Amazon） 和苹果（Apple）等几家科技公司的业绩低迷而下跌。 大宗商品方面，布兰特原油价格继续攀升至每桶96美元以上，而原棕油价格则维持在4100令吉以上，因此将有利于油气相关股和种植股。 因此，乐天交易私人有限公司股票研究部副总裁唐柏麟估计，富时隆综指今日将游走于1450点至1470点之间。 马股重量级股方面，马银行（Malayan Banking Bhd）跌2仙，至8.66令吉，亚通（Axiata Group Bhd）降2仙，报2.74令吉，明讯（Maxis Bhd）挫6仙，至3.74令吉，吉隆坡甲洞（Kuala Lumpur Kepong Bhd）减6仙，至22.14令吉，国油气体（Petronas Gas Bhd）下滑14仙，报17.02令吉，以及数码网络（Digi.Com Bhd）滑落5仙，至3.70令吉。 另外，IHH医疗集团（IHH Healthcare Bhd）涨8仙，至6令吉，MR DIY Group (M) Bhd、国家能源（Tenaga Nasional Bhd）与贺特佳（Hartalega Holdings Bhd）各升2仙，分别报1.98令吉、8.31令吉及2.10令吉。 至于热门股，Top Builders Capital Bhd挫1仙，至2仙，UEM阳光（UEM Sunrise Bhd）跌0.5仙，报20.5仙，以及SNS网络科技（SNS Network Technology Bhd）起0.5仙，至24.5仙。   （编译：魏素雯）   English version：FBM KLCI sees mild selling in early trade

https://theedgemalaysia.com/node/670959

MSMEs increasing hiring to meet growing demand

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This article first appeared in The Edge Malaysia Weekly on June 12, 2023 - June 18, 2023 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/676915

HSBC announces fresh buy-back as higher rates propel profits

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(Aug 1): HSBC Holdings plc announced a new buy-back programme and painted a bullish outlook for its 2023 earnings, joining peers in benefiting from global rate rises that have been boosting income. The London-based lender, which generates most of its income in Asia, will repurchase an additional US$2 billion (RM9.03 billion) on top of a previous programme announced just three months ago, according to a second-quarter earnings statement on Tuesday (Aug 1). HSBC also said it is now expecting net interest income for 2023 to be above US$35 billion, up from more than US$34 billion.  Its net interest margin rose to 1.72%, pushing pre-tax profits to US$8.8 billion in the three months through June, beating a company-compiled analyst estimate of US$7.96 billion. “If you take one thing from today’s results, it’s our strategy is working,” chief executive officer Noel Quinn said in a media call, later stressing to analysts that the bank’s wealth business continued to gather momentum, particularly in Asia. HSBC shares had risen 2.46% as of 8.23am in London. HSBC is in the midst of a strategic repositioning of its business in a pivot towards Asia, with more of the group’s resources focused on capturing growth in faster-growing markets. The lender has been under pressure from top shareholder Ping An Insurance Group Co to improve returns, even as the insurer failed to gain the backing of other investors to compel HSBC to report regularly on a possible carve-out of the Asian unit. “That matter is now closed from the point of view of HSBC,” Quinn said on a Bloomberg Television interview. The results make HSBC the latest lender to see profitability surge on higher lending income. Smaller rival Standard Chartered plc also raised its forecasts last week after strong second-quarter earnings.  Still, banks are coming under pressure to pass on more of the rate rises to savers. They have only passed through about a quarter of interest rate rises to consumers, the UK’s Financial Conduct Authority has said, as it warned of “robust action” for firms that don’t transfer benefits to consumers. Wealth revenue rose 19% compared to the same period last year due to growth across all products, particularly in life insurance. At HSBC’s global banking and markets arm, debt capital market revenues offset falls in its global foreign exchange and equities business. Banking revenue rose with capital markets and advisory up due to higher debt capital markets volume. The lender booked US$913 million of charges for expected credit losses, including about US$300 million linked to commercial real estate in mainland China. The UK ring-fenced bank took a US$300 million expected credit loss charge relating to commercial banking. While Quinn emphasised that there was a focus on boosting operational performance, he said on the call with journalists that “we’re open-minded to doing further bolt-on acquisitions” if it bolsters strategic ambitions. HSBC has earmarked countries such as India for expansion. The firm saw invested assets in India more than triple in 2022 from a year ago, and expects this to continue growing at a fast pace, according to comments made by HSBC executive Nuno Matos last month. Other highlights from HSBC’s second-quarter results include:

https://theedgemalaysia.com/node/642867

Datasonic bags RM140m i-Kad job from govt

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KUALA LUMPUR (Nov 7): Datasonic Group Bhd has clinched a contract worth RM140 million to supply foreign worker cards (i-Kads) to the Immigration Department of Malaysia (IDM) for a period of three years. In a filing on Monday (Nov 7), the security-based ICT solutions provider said the group’s wholly owned subsidiary Datasonic Technologies Sdn Bhd (DTSB) received the letter of award from the Ministry of Home Affairs. Datasonic noted that DTSB is to supply the i-Kads to the IDM from Nov 1, 2022, to Oct 31, 2025. Meanwhile, the group said DTSB will also implement the Professional Training and Education for Growing Entrepreneurs (PROTÉGÉ) programme as set by the government. Datasonic said the contract is expected to contribute positively towards the group's future earnings and net assets per share. At the noon break on Monday, shares in Datasonic stood unchanged at 53.5 sen, giving the group a market capitalisation of RM1.57 billion.

https://theedgemalaysia.com/node/640503

G Capital to jointly develop mini-hydropower plants in Sabah, raise over RM3 bil for first 200 MW

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KUALA LUMPUR (Oct 18): G Capital Bhd is planning a joint venture (JV) to develop mini-hydropower projects in Sabah, which could see the JV raise funds of no less than RM3 billion for the first 200 MW. It would be G Capital's first foray into the renewable energy segment in East Malaysia. Its wholly owned unit, CM Creative Itinerary Sdn Bhd, on Tuesday (Oct 18) inked a JV and shareholders' agreement with Innoprise Synergy Sdn Bhd and Kerap Hijau Sdn Bhd. "The parties have agreed to collectively pool their resources, leading to fundraising of no less than RM3 billion in developing the first 200 MW projects, which may be financed via a combination of fundraising exercises and bank borrowings," said G Capital in its filing with Bursa Malaysia on Tuesday. Innoprise is a wholly owned subsidiary of Innoprise Corp Sdn Bhd, which is majority owned by the Board of Trustees of Yayasan Sabah. Meanwhile, Kerap Hijau, which is involved in the operations of general facilities producing electric energy and general trading, is wholly owned by Tan Sri Pandikar Amin Mulia. The proposed JV involves Pandikar transferring 80 Kerap Hijau shares to CM Creative for RM80 and 20 Kerap Hijau Shares to Innoprise for RM20. This means G Capital via CM Creative will hold a 80% stake in Kerap Hijau, while the remaining 20% stake will be controlled by Innoprise. In a press release, Pandikar, who is the chairman of Innoprise and representative of Yayasan Sabah, said that the JV has identified five hydropower schemes with an estimated capacity of 65.3 MW. "Estimated to deploy RM1 billion, the completion of such mini-hydropower schemes brings solutions to the energy crisis faced by Sabahan on top of an annual revenue yield of RM85 million to the shareholders," he said. The five hydropower schemes are Sg Bayoyo (Sg Bunsit) hydropower scheme, Sg Rayoh hydropower scheme, Sg Mokodou hydropower scheme, Sg Wariu hydropower scheme and Sg Panataran (Sg Melangkap) hydropower scheme. Pandikar further added that the JV is setting paths to raise RM3 billion to develop the mini-hydropower projects. G Capital executive director Datuk Yap Yee Ping said in the same press release that with the JV, the company is confident of successfully executing the fundraising exercise to develop the mini-hydropower projects. G Capital is involved in the businesses of passenger vehicle chartering and renewable energy sector. Shares of G Capital were up two sen or 3.31% at 62.5 sen on Tuesday, giving it a market value of RM198.61 million. The stock has risen 22.55% since the beginning of this year.

https://theedgemalaysia.com/node/651411

Corporate Malaysia to see moderate earnings growth in 4Q22

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KUALA LUMPUR (Jan 11): Stocks are riding a tentative recovery, with the local benchmark index FBM KLCI raising the curtain to a new year. But whether the index could keep up the good momentum in the long run will depend on how the upcoming fourth quarter (4Q) corporate earnings season will play out in the month ahead. Analysts whom The Edge spoke to opined that although there is a general recovery in the economy, macro challenges relating to inflation, higher interest rates and growing recession risks, as well as flattish commodity prices and an increase in input cost continue to weigh on the quality of financial performance among Malaysian-listed companies. According to Maybank Investment Bank Bhd, in the first nine months of 2022, core profit among companies rose 11% year-on-year (y-o-y) with strong reopening-driven growth recorded in the property (+106%), consumer (+69%), and auto (+35%) sectors, real estate investment trusts (REITs, +56%), as well as construction and infrastructure (+61%) counters. Meanwhile, big-cap sectors such as banks (+5%), plantation (+14%) and telecommunications (+6%) also showed good traction, despite the Cukai Makmur dragging companies that fall under these sectors. “Operating margin pressures have been rising across a broad range of sectors, underpinned by increasing labour and raw material input costs, while a damaging combination of rising inflation and interest rates are eroding disposable incomes, and hence demand, into 4Q22/1H23,” said Maybank IB in a research note. Areca Capital's CEO Danny Wong said in terms of financial results, companies will still be able to hold their ground in the full 2022 year or 4Q. However, some sectors — namely petrochemicals, gloves and plantations — are poised for a moderated performance. The Edge takes a look at which sectors could outperform and underperform in the upcoming quarter. In March last year, the US Federal Reserve (Fed) began a series of hawkish interest rate hikes. Its aggressive monetary tightening set into motion a cycle of rate hikes by central banks all over the world, including Bank Negara Malaysia (BNM). Following four consecutive hikes of 25 basis points (bps), up from 1.75% in the beginning of 2022, BNM’s overnight policy rate (OPR) stands at 2.75%. Although it is clearly bad news for borrowers, the banking sector in the country has historically benefited from the higher interest rate, Wong told The Edge. “The net interest income (NIM) margin is actually good. The financial performance for banks in the fourth quarter may not be as strong as 3Q, but it will still be a positive growth for banks. Year-on-year we see strong growth for banks, but not by quarter-on-quarter (q-o-q)” said Wong. Meanwhile, Fortress Capital Asset Management Sdn Bhd CEO Thomas Yong also said on a year-on-year basis, the banks' core profits are likely to improve, underpinned by higher net interest margins in line with higher interest rates. “We expect the banks’ fourth quarter 2022 core profits to be similar to that observed in the third quarter 2022. However, earnings growth could accelerate to 15% to 20% for the year 2023 in the absence of 'Cukai Makmur', and this could potentially allow the banks to pay out higher dividends,” Yong told The Edge. Geopolitical tensions, poor weather, foreign workers shortage and export restrictions in 2022 continue to weigh on plantation companies, said Areca’s Wong. “Investors have already priced in weaker average selling price (ASP) for commodities like palm oil and seasonality factors that will be impacting company profit in the fourth quarter. Rainfall is usually much higher in October and November, which usually prevents palm fruit harvesting,” said Wong.   Meanwhile, Yong added that the fourth quarter financial results are likely to reflect lower CPO prices in the fourth quarter 2022. “The sector has experienced labour shortages and a rise in minimum wage, so earnings are unlikely to be exciting. Having said that, expectations are that China’s reopening could drive a demand recovery for cooking oils,” he added. The current palm oil price stands at RM4,118 per tonne, according to data from the Malaysian Palm Oil Council (MPOC). Corporate earnings are likely to be mixed for the oil and gas (O&G) sector, said Fortress' Yong, adding the sector has enjoyed high profits during the first half of 2022 in line with higher crude oil prices. “Crude oil and related commodity prices, however, have eased in the fourth quarter of 2022. For the maintenance and services segment, earnings are likely to be more stable as revenues are derived from contracts. “As O&G prices, while coming off their recent peak, have sustained at fairly high levels, increased capital expenditure is expected to be spent by oil majors after a long period of underinvestment,” said Yong. He added, O&G activities normally taper lower at the year-end as a result of the annual monsoon season. Wong said petrochemical companies are likely to post less exciting quarters due to declining ASPs in polyethylene (PE) and polypropylene (PP) which have declined by 30-37% from their 2Q22 peaks in early Dec 2022. The decline in prices of those two items was caused by weakening global demand due to the inflation and cost-of-living crisis. According to Chemical Market Analytics (CMA), Southeast Asia PE prices will decline by 7-13% y-o-y in 2023, accelerating from the 2-7% y-o-y drop in 2022. Meanwhile, Southeast Asia PP prices are expected to drop 3-6% y-o-y in 2023, on top of the 10-11% y-o-y drop in 2022. The semiconductor and technology sectors are expected to continue to see slower growth in earnings during  4Q as demand from advanced economies slowed. “We expect the semiconductor cycle to likely bottom out in the first half of 2023 before investor interest picks up again as the secular trend of technology demand persists,” said Yong. According to RHB Research in a note, the outlook for chip-related companies are less bullish for the near term, but the prospects for non-semiconductor players should be brighter. “The main challenges are labour and material shortages, demand uncertainties, and geopolitical tensions. Overall, the sector is still clouded by weakening demand for consumer products — as people have been affected by spiking and rampant inflation, geopolitical tensions, and the impact of China’s lockdowns and weaknesses in Europe,” said RHB. The report noted a few bright spots lie in vehicle electrification, servers and high-performance computing-related chips. In the healthcare sector, glove manufacturers will likely continue to report dismal earnings as a result of industry-wide oversupply, said Yong. Hong Leong Investment Bank (HLIB) in a research note also shared a similar opinion saying the oversupply situation is unlikely to be resolved in the short-term. “We expect competition to remain stiff in the first half of 2023. Judging from the lower operational efficiency, depressed ASPs (which could potentially inch lower in 1H23) and the inability to pass on higher costs, we are of the view that earnings for the glove makers have yet to bottom,” HLIB said. However, healthcare businesses that focus on hospitals are likely to benefit from the rebound in domestic mobility. “Hospitals are likely to report improving results with recovery in domestic health checks and health tourism,’ said Yong.

https://theedgemalaysia.com/node/625051

PetGas, Green Packet, Astro, Dynacite, Yinson, UWC, Inix Technologies and Bina Puri

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KUALA LUMPUR (June 21): Here is a brief look at some corporate announcements and news flow on Tuesday  (June 21) involving Petronas Gas Bhd (PetGas), Green Packet Bhd, Astro Malaysia Holdings Bhd, Dynacite Group Bhd, Yinson Holdings Bhd, UWC Bhd, Inix Technologies Holdings Bhd and Bina Puri Holdings Bhd.  Petronas Gas Bhd (PetGas) has awarded a RM92 million contract to undertake a gas pipeline extension to a consortium comprising Carimin Engineering Services Sdn Bhd and I Drill Pipelines Constructions Sdn Bhd. The job involves the construction of about 10km of lateral pipeline and metering station to supply natural gas to a paper making plant belonging to ND Paper Malaysia (Selangor), which is part of China's Nine Dragons Paper Ltd.   Digital solutions provider Green Packet Bhd has announced the appointment of Datuk Firmansyah Aang Muhamad as its independent and non-executive chairman. He replaces Tan Sri Omar Abdul Rahman, who has retired after holding the post for 18 years. Astro Malaysia Holdings Bhd's net profit for the first quarter ended April 30, 2022 fell 29.19% to RM100.02 million from RM141.25 million a year earlier, due to factors that included higher net financing costs amid unfavourable unrealised foreign exchange loss. Revenue dropped 9.36% to RM962.09 million from RM1.06 billion, following a decrease in subscription revenue and merchandise sales. Astro declared its first interim dividend of 1.25 sen per share, to be paid on July 20. Dynaciate Group Bhd has proposed to acquire a freehold industrial land measuring 7,690 sq metres in Nilai, Negeri Sembilan from a unit of Sime Darby Property Bhd to expand its property portfolio. The property belonging to Sime Darby Property (Nilai) Sdn Bhd in Setul district consists of a single-storey factory building with a two-storey office building Yinson Holdings Bhd’s rights issue to raise some RM1.19 billion was oversubscribed by 22.31% as at close of acceptance on June 14. The valid acceptance and excess applications totalled 1.03 billion rights shares, against the 844.2 million rights shares made available for subscription. UWC Bhd has reported its highest ever quarterly net profit of RM28.71 million, supported by forex gains and higher operating income. The net profit registered for the third quarter ended April 30, 2022 is 24.62% higher than the RM23.04 million posted a year earlier. Quarterly revenue rose 21.66% to RM87.32 million from RM71.78 million, fuelled by continued demand from the group’s global customers. Inix Technologies Holdings Bhd is changing its name to Zen Tech International Bhd effective Thursday (June 23). Bina Puri Holdings Bhd has proposed to raise some RM27 million via a private placement and rights issue. The construction company plans to raise RM21.57 million via a private placement of up to 479.29 million shares or 30% of its total issued shares at an issue price to be determined later.  

https://theedgemalaysia.com/node/634883

华商控股售狮城闲置产业计划告吹

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（吉隆坡2日讯）由于买家无法获得相关部门的批准，华商控股（Wah Seong Corp Bhd）拟以1300万新元（4010万令吉）脱售新加坡闲置产业的计划告吹。 该产业是面积1万3734平方米的有期土地，设有工业厂房、仓库和办公室。租赁期为28年，至2037年底。 买家是由Singaport Cleanseas私人有限公司独资拥有的Swee Joo私人有限公司。 华商控股表示，双方都同意取消这笔交易，因在新加坡国家环境局拒绝了买家对该物业的预期用途后，Swee Joo无法获得裕廊集团的书面批准。 此次出售是华商控股释放闲置资产，以改善营运资本状况的举措之一。 该集团指出，由于制造业务在几年前已转移到印尼的巴淡岛，因此该物业已闲置。 华商控股今日跌0.5仙或0.76%，收报65.5仙，市值为5亿755万令吉。自7月25日以来，该股在不到两个月的时间就攀升了31%。   （编译：陈慧珊）   English version：Wah Seong's bid to divest idle Singapore property falls through

https://theedgemalaysia.com/node/646023

GE15 Outcome: The swing factor in historic GE15

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This article first appeared in The Edge Malaysia Weekly on November 28, 2022 - December 4, 2022 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/667142

Wall Street touts Japan stocks as Topix hits highest since 1990

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(May 16): Japan is fast becoming the most favoured developed market with investors as conviction grows that a rally taking the Topix to the highest since August 1990 will accelerate.  Strategists at Goldman Sachs Group Inc to Macquarie Group Ltd say the case for a bull run is solid with corporate governance reforms set to boost valuation and loose monetary policy adding tailwinds. The economy, long beset by deflation, is seeing a revival in price pressure as activity revs up — a combination that sets it apart from the stagflation woes stifling developed peers in the US and Europe.  The Topix benchmark climbed 0.6% to close at 2,127.18 on Tuesday, taking gains this quarter to 6.2%. That compares with a less than 1% advance for the S&P 500 and a sub-2% rise for the Stoxx Europe 600 index. The Nikkei 225 Stock Average rose 6.4% during the period.  “We have entered a two to three year bull market period for Japan now, this has legs,” said Neil Newman, deputy head of Japan research at Macquarie Capital Securities. “Japan has breadth and depth, liquidity is good and with corporate earnings looking solid now, this will draw further attention.”  The world’s third-largest economy stands out as overseas investors have qualms about investing in the other Asian giant — China — with its increased geopolitical risks and the policy whims of Beijing. Warren Buffett’s renewed endorsement of Japanese stocks has also provided hope that foreign investment is returning to the market.  Overseas traders bought a net US$15.8 billion worth of the nation’s stocks in April, the most since October 2017, according to Tokyo Stock exchange data.  “Domestic and foreign investors are positive about Japan relative to the US and Europe, as it does not face an imminent recession and yet has very low valuations,” said John Vail, chief global strategist at Nikko Asset Management Co. “There is a strong possibility that it will outperform global markets.” A renewed push by companies to increase buybacks and focus on returns is boosting sentiment, after the Tokyo Stock Exchange called on firms that are trading below book value to outline capital improvement plans. Dai-Ichi Life Holdings Inc shares jumped on Monday, after it announced plans to repurchase as much as 120 billion yen (US$882 million) of its stock. Mitsubishi Corp said on May 9 that it expects to buy back up to US$2.2 billion.  Expectations on such structural changes, as well as solid fundamentals, are helping “justify a bullish stance” on the nation’s equities, Goldman Sachs strategists Kazunori Tatebe and Bruce Kirk wrote in a note. The outlook for the world’s third-largest economy is strong, given positive factors including an inbound tourism recovery, plans for robust capital expenditure and ongoing easing by the Bank of Japan, they wrote.    To be sure, the Topix index is still about 26% below its 1989 record at the height of Japan’s bubble economy. Despite the gauge’s outperformance, when and if it will reclaim that level remains in doubt. Fundamental changes in the economy over the past decades including a population decline and maturing industries suggest the days of inflated asset prices are gone.    Still, earnings and cheap valuations are in bulls’ favour, as well as a persistently dovish stance by the BOJ. Positioning in Japanese equities have also been light, which means there’s room for more gains, Keita Matsumoto, head of financial institutions sales and solutions at Citigroup Global Markets Japan Inc said last month.   “We believe Japanese stocks still have further to go,” Fabiana Fedeli, chief investment officer for equities and multi assets at M&G Plc, said on Bloomberg Television. “Companies in Japan were improving their balance sheets and were giving back to shareholders in terms of buybacks and dividends.” Options trading implies the rally may have legs. The put-to-call ratio on the Nikkei 225 Stock Average has trended lower, even as the index has climbed more than 14% this year, indicating rising bullishness despite technical signals the advance is getting overheated.    “The outperformance of Japan versus Europe and US has been happening and that will continue as long as the BOJ doesn’t change. I think that’s a key criteria,” said Alexandre Tavazzi, head of CIO office and macro research at Pictet Wealth Management.  

https://theedgemalaysia.com/node/657167

Lawyers to withdraw originating summons at High Court after Fed Court rules MACC probe into Nazlan against protocol

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KUALA LUMPUR (Feb 28): An originating summons filed last year at the High Court by two lawyers and an activist concerning an investigation into Court of Appeal (COA) judge Datuk Mohd Nazlan Mohd Ghazali by the Malaysian Anti-Corruption Commission (MACC) will be withdrawn after a Federal Court ruled that the probe is against protocol. Lawyers Nur Ain Mustapa and Sreekant Pillai, as well as activist Haris Fathillah Mohamed Ibrahim, filed an originating summons last year, among others, to refer two questions to the Federal Court, and to seek a declaration that the investigation conducted by the MACC against Nazlan is unconstitutional. The two questions are on whether criminal investigation bodies, including the MACC, are only legally permitted to investigate High Court, COA and Federal Court judges who have been suspended under Article 125(5) of the Federal Constitution, and whether the public prosecutor is empowered to institute or conduct any proceedings for an offence against serving judges pursuant to Article 145(3) of the Federal Constitution. Last Friday (Feb 24), the Federal Court delivered a unanimous decision that the probe was done without following certain protocols, in relation to an application filed by the lawyers and activist. Leading the panel in giving her decision was Chief Justice Tun Tengku Maimun Tuan Mat, who said the protocol is that any investigative body needs to consult with the CJ first before commencing probes into any judge. The other protocols were that the public prosecutor must also consult with the CJ if they intend to prosecute the said judge, and the facts of the investigation cannot be made public. “The failure to consult the chief justice, even if the chief justice is the subject of a criminal complaint, is thus a very strong indication of a lack of bona fides in a criminal investigation,” she said in reading out the judgement via Zoom proceedings on Friday morning. The first question pertains to whether criminal investigating bodies are only legally permitted to investigate High Court, COA and Federal Court judges who have been suspended. The second question pertains to whether the public prosecutor is empowered to institute or conduct any proceedings for an offence against serving judges of the aforementioned courts. The trio’s application to refer the questions of constitutional law to the apex court was allowed by the High Court. It forms part of the trio’s larger suit against the MACC, the anti-graft agency’s chief commissioner Tan Sri Azam Baki and the government. Tengku Maimun led a seven-member panel in reading out the unanimous decision, among them were Chief Judge of Sabah and Sarawak Tan Sri Amar Abang Iskandar Abang Hashim, acting Chief Judge of Malaya Datuk Mohamad Zabidin Mohd Diah, and Federal Court judges Datuk Nallini Pathmanathan, Datuk Vernon Ong Lam Kiat, Datuk Harmindar Singh Dhaliwal and Datuk Rhodzariah Bujang. After her decision, Tengku Maimun had advised both parties to remit the matter back to the court for the disposal of the suit. At the High Court on Tuesday, the lawyers who filed the summons had informed the court that they are withdrawing it with no order as to costs. The defendants also agreed to the same. Upon informing the deputy registrar of the court, they were then instructed to attend case management on Friday for parties to update the High Court on the status of filing the notice of withdrawal. Read also: Chief Justice: MACC probe against justice Nazlan not according to protocol; timing is suspect

https://theedgemalaysia.com/node/676111

Singapore says US, China need to come together for climate push

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(July 26): The US and China need to come together to give global climate negotiations a “big push”, according to Singapore’s Minister for Sustainability and the Environment Grace Fu.  The world’s biggest greenhouse gas emitters are making progress on their own net-zero targets, but need to continue discussions with each other, especially at the Group of 20 summit in India in September, Fu said at Bloomberg’s Sustainable Business Summit on Wednesday (July 26). US Climate Envoy John Kerry’s trip to China last week ended without any grand bargain, although the two sides did promise to keep talking. The negotiations were complicated by internal political dynamics in the two countries, which are sparring over trade controls, human rights and other issues. The US is also attempting to challenge China’s dominance in clean energy industries like solar panels and electric vehicle batteries. Despite the tensions, it’s positive Kerry met with his Chinese counterpart, Xie Zhenhua, Fu said. “It is a good sign. They are talking, and they were not talking before,” she said. “Is it going to be easy? Not at all. But we are hopeful.”

https://theedgemalaysia.com/node/668266

Twenty-three defects, eight different names: What a dark fleet tanker looks like

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(May 24): A giant oil tanker that was detained in China failed its safety inspection on more than 20 counts, spotlighting the dangers posed by a rapidly expanding fleet of aging vessels sailing the world’s oceans. The ship, currently called the Titan after being renamed seven times, is managed by a company whose address is a postbox in the Seychelles. While the vessel’s owners are hard to trace, it’s also not clear what insurance the Titan has in place. Insufficient documentation, safety lapses and murky backgrounds are all too typical of so-called dark-fleet tankers that have proliferated since Russia’s invasion of Ukraine. Sanctions from the Group of Seven nations on Russian oil, as well as existing ones on Iranian and Venezuelan cargoes, have created a booming trade for these old vessels operating outside of western oversight. Detentions of tankers have been rising over the past year amid increasing safety concerns, with more vessels held at Asian ports in April than any other month since at least January 2020. A port in China has stepped up safety checks in recent weeks, marking a potential shift in attitude toward the aging vessels that have helped deliver the country a slew of Russian, Iranian and Venezuelan oil.   Indeed, the Titan — which was built 20 years ago — was stopped in the northeastern port of Qingdao not because it had been carrying about 2 million barrels of oil from Iran, but for the possible danger it presented. China and other maritime states had a glimpse of those risks earlier this month. About 10 days after departing the nation’s shores, another dark-fleet vessel, the Pablo, blew up off the coast of Malaysia. Though the cause of the explosion is unclear, it is thought that vapors from the remains of the oil cargo may have played a part. Among Titan’s 23 deficiencies were oil accumulation in its engine room and fire safety issues with its inert gas system — the very equipment that helps prevent vapors exploding. After being detained on April 29, the ship was released on May 2 and was last seen sailing close to Taiwan. Since 2019, Titan has hauled a series of Iranian crude oil shipments, according to data intelligence company Kpler. The vessel carried about 16 million barrels of Iranian oil in 2022, according to data from United Against Nuclear Iran, which tracks the nation’s crude exports. Seapalm Shipping Ltd is listed on multiple maritime databases as its manager, with no other current owners and only the Seychelles postbox and a generic email address for contact details. A message to the email address didn’t immediately receive a reply. The Titan was last known to fly under the flag of Cameroon, the only state listed as “high risk” by Paris MoU, an organisation that helps ensure safe shipping. Of the 211 vessels of various types that Clarkson Research Services sees using the country’s flag, only seven are less than 10 years old. The youngest large oil tanker is 19 years old. Unlike the regular merchant fleet, dark tankers often lack industry-standard insurance. Titan isn’t registered with any members of the International Group of P&I Clubs, which provide such cover.

https://theedgemalaysia.com/node/673528

TWL Holdings, LJ Development abort deal to develop Klang project after six years

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KUALA LUMPUR (July 4): After six years, property development and construction firm TWL Holdings Bhd, formerly known as Tiger Synergy Bhd, has decided to scrap its plans to jointly develop a residential and/or commercial development in Klang, Selangor, with LJ Development (KL) Sdn Bhd. In a filing with Bursa Malaysia on Tuesday (July 4), TWL said its wholly owned subsidiary Kejuruteraan TWL Sdn Bhd and LJ Development had mutually agreed to terminate the memorandum of understanding that both parties had entered into in June 2017. Under the proposed joint venture, TWL was to develop and construct residential and/or commercial units in the project, which was estimated to have a minimum gross development value (GDV) of RM80 million. LJ Development would be entitled to receive from TWL a number of units with the total value equivalent to 30% of the GDV. The directors of LJ Development are Tan Li Li, the sister to TWL executive chairman Datuk Tan Wei Lian and its deputy chairman and managing director Tan Lee Chin, and Joanna Yong Hui Fun, who is the sister-in-law to Wei Lian and Lee Chin. Earlier on Monday, TWL announced that it had entered into an agreement on June 29 to acquire two pieces of land in Klang, measuring a total of 3.6674ha, from Credence Property Management Sdn Bhd for RM30.3 million. TWL said it intends to undertake the proposed acquisition with a view to develop the land into a residential project comprising 1,000 units of affordable apartments, which have an estimated GDV of RM330 million and gross development cost of RM220 million. Barring unforeseen circumstances, the proposed acquisition is expected to be completed by the fourth quarter of 2023. TWL shares closed unchanged at 3.5 sen on Tuesday, giving it a market capitalisation of RM146.4 million.

https://theedgemalaysia.com/node/651964

Russian buyers help propel Dubai property sales to record

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DUBAI (Jan 16): Russians were the biggest international buyers of Dubai real estate last year, when the city emerged as a safe haven amid geopolitical and economic uncertainty elsewhere, according to brokerage Betterhomes. Once a niche group of buyers in Dubai, Russians’ interest surged after the war in Ukraine as their nation faced ever tighter sanctions, helping to push the value and number of sales to record levels.  Dubai registered more than 86,000 residential sales transactions last year, surpassing a previous record of 80,000 in 2009, according to Dubai-based Betterhomes. About 208 billion dirhams (US$56.6 billion) worth of property was sold last year, an almost 80% gain from 2021. The increase in prices slowed to 11% in 2022 from 21% a year earlier, it said.  The property market in Dubai has bucked the trend in much of the world, where home values have dropped amid surging interest rates and a darkening growth outlook. Prices and rents in the emirate have also been buoyed by bankers fleeing strict lockdowns in Asia, Israeli investors, crypto millionaires, and hedge fund executives after the city eased social restrictions and liberalised laws to cement its position as the region’s top business hub. In another report published on Monday, real-estate consultant Knight Frank said Dubai also saw a record 219 ultra-prime residences — properties worth at least US$10 million — sold last year. That’s more than double the number of such purchases in 2021.  The real estate sector accounts for about a third of the economy in Dubai, one of seven sheikhdoms that make up the United Arab Emirates. European buyers also dominated property transactions in the emirate last year, with British, Italian and French non-resident buyers in the top five. Indian nationals were third, while Chinese buyers fell out of the top five as the country’s strict Zero Covid policy restricted travel.  Betterhomes expects a resurgence of Chinese investors in Dubai this year, as the Asian nation opens up.  The brokerage last year started categorising buyers into residents and non-residents. In 2022, Indian residents were the biggest property buyers, followed by British investors, and then Russians.  The growth in transactions was mainly fuelled by the off-plan segment, which rose an annual 80% as developers boosted new properties. Going forward, Betterhomes expects “more of the same”, according to managing director Richard Waind. “Dubai is likely to continue to attract new residents and investors, ensuring transactions remain strong,” he said.  But Waind added that as interest rates remain at elevated levels, affordability will be impacted “and keep sales prices in the secondary market in check”.

https://theedgemalaysia.com/node/601191

Cooking up a storm

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This article first appeared in Digital Edge, The Edge Malaysia Weekly on December 27, 2021 - January 2, 2022 Amid a gruelling day of deadlines, meetings, children’s multiple online classes, walking the dog, managing cohabiting troubles and running never-ending errands — the idea of spending hours whipping up complex healthy meals is enough to drive anyone to a breakdown. Sure, at some point at the beginning of the coronavirus pandemic while we were still figuring out a routine, we made time to cultivate our own yeast cultures for sourdough pizza bases, whisked instant coffee by hand over 200 times to make the Insta-worthy Dalgona coffee and revelled at the endless capabilities of our air fryers. But with the Covid-19 pandemic well into its second year, with evolving fast-spreading variants causing a surge in infections and corresponding deaths in many countries and renewed lockdowns, simple has become the way to go. According to a survey by market research firm Vase.ai, 85% of respondents in Malaysia said they have been consuming their daily meals by cooking at home, and around seven out of 10 said they cooked elaborate meals. Its survey of 1,100 Malaysians in June last year found that 7% of the respondents chose to prepare easy-to-cook meals such as pasta and eggs or microwave meals, with 30% stating instant meals were the preferred choice and 20% opting for fast food such as burgers and fries. Mother of two primary schoolers (and two fur babies), Thevi Kulendran had to think of ways to get her young charges to stick to eating healthy and offer variety at the same time, as they were spending hours in front of computer screens and often bored out of their minds with little to keep them occupied outside of schoolwork, music classes and chores. “Quick and easy meals are essential when you’re juggling so many things. It is already stressful trying to keep up with the kids’ different schedules and yours. And, takeout isn’t always an option because you don’t know what goes into your food,” she says. Thevi — who is the face of Thevi’s Kitchen, a food page on Facebook and Instagram — started coming out with easy-to-prepare meals from pantry staples just to manage the daily grind. The former public relations professional started documenting her cooking adventures in 2015 to share her passion for cooking, food photography and styling, and as means to share much-loved traditional family recipes. “Growing up, cooking was just a chore we had to do. It’s either we cook or clean, so it wasn’t something I truly enjoyed then. “It was after I became a stay-at-home parent that I started cooking a lot more. The children needed to eat and I wanted to make sure they had nutritious food. I could also try my hand at recipes that I rarely had time for before. I learnt a lot from YouTube tutorials and all the tips and tricks from other home cooks and chefs. “I started sharing what I used to cook at home or what my grandmother used to cook, and I shared those recipes. And, I used to get a lot of questions like ‘what kind of dhal do you use?’, ‘how do I pick the right dhal?’. That’s when I realised that there are plenty of people who want to try different kinds of cuisine.” Along the way she developed her recipes, which then saw the food page morph into the recipe-sharing platform that it is today. When the pandemic hit, she acquired more followers who were keen to try out her recipes. “I think with everyone being home, they needed good ideas on what to cook and eat because there were few things you could do other than exercising or hobbies.” Thevi also started recording more reels — with the help of her children — of her cooking and styling process. Some of her recipes — sardine pasta, chicken soup with a base of canned mushroom soup, and kicap chicken — take less than 30 minutes to prepare. And Thevi found she was attracting first-time cooks. “I was getting questions like ‘what pan should I get for this dish?’, ‘what pot are you using for this?’, ‘how do I pick an avocado?’ “I also realised very few people read through long captions. I’ve had instances where I have posted recipes down to the little details, and some people would still mess it up and send messages asking what went wrong. “To deliver a clear message and engage the audience, I felt it would be better to shoot reels for quick and easy recipes,” she says. People also wanted more flexibility in their recipes and needed to know what substitutions would work, says Thevi. “People wanted to eat home-cooked food that’s quick to prepare. They didn’t want to spend a whole day slogging in the kitchen. Many were working from home and taking their kids through their lessons simultaneously. “So, I was moving towards those kinds of recipes when the pandemic hit. The recipes were mostly what my grandmother used to cook. She used to cook a feast on Saturdays or Sundays in a jiffy. I still wonder how she managed to whip up so many dishes in a couple of hours,” she says. “I tried my best to replicate her process through the reels, and that had got more people to try out the recipes I posted on my feed,” she says. There were also instances where some would see the photos of the meals she had prepared and be too intimidated to try making those themselves because they looked fancy when plated and photographed. “They see beautiful food pictures and they think, ‘I can’t do that, it is too fancy.’ When it is really not; it’s just that I take pride in what I have made and decided to plate it nicely. “So, when they watch the videos and see how easy it is to make, they are motivated to try it. Like I posted an easy chicken curry recipe that my grandmother used to make, and it takes 30 minutes. Many loved it because it is a simple recipe to follow,” she says. It was this that caught the attention of gourmet grocer K Fresh by First Pick. The company then engaged Thevi to craft recipes using produce flown in from South Korea. Her 12,000 followers may be drawn to her take on everyday food, but Thevi’s “makcik kantin” — a persona she takes on whenever she prepares meals for her children — is equally endearing. On the other hand, Mushroom Lah founder Aisya Jabaruddin started creating vegan recipes for the local palate after observing that there were too few options to explore for Malaysians who wanted to make a lifestyle change. Before the pandemic, most people relied on restaurants and cafés to get vegan meals. So, Aisya, who has been an ardent vegan for six years, started putting more of her recipes on her feed — which garnered quite a bit of attention when she was asked by TikTok to be one of its food creators. She then started crafting recipes and modifying some favourite Malaysian dishes using staple, everyday ingredients. Aisya has easy recipes for local dishes such as laksa Johor, apple pie, pad kra pao — a Thai dish made of minced chicken stir-fried with basil — and even five-ingredient peanut butter balls. “There is the perception that veganism is an expensive and time-consuming lifestyle. I’m the only vegan in my family, and I had such a hard time making my parents understand why I chose this path. They used to think it was difficult because they thought there needs to be a lot of substitution to meals we had daily, and that the food wouldn’t be as tasty. “My mum, for example, would cook beef and chicken rendang during Hari Raya, and set aside the paste to make rendang from tofu for me, because she used to think that tofu and tempeh are the only vegan ingredients that she could substitute for meat. “But by the time it made it to the table, the dish would be so soggy and unappetising. There are ways to make rendang with tofu but the process of preparing the tofu takes a little longer than meat,” she says. Determined to rectify their perception in the early days of her vegan journey, she embarked on a mission of experimenting with different vegan ingredients such as mushrooms to make rendang, and succeeded. And it was this mushroom rendang experiment that has now turned into an online business for Aisya, who lost her job during the pandemic. With the support of her husband, Akmal Hakim Ali — who is also vegan — she started Mushroom Lah in June last year. “The first time Akmal tried the rendang, he ate half of the two kilogrammes of it.” They started out making 8kg of rendang a week and now they make 60kg, yet, there is a waiting list. Aisya continues to attempt other recipes and has garnered a following of over 8,000 on Instagram since last year.   If you haven’t bought an air fryer or succumbed to investing in a cast-iron casserole pot since the pandemic hit, chances are you are in the minority. According to Commerce.Asia, an e-commerce ecosystem of technology and big data solutions, there was an 880% surge in purchases of cooking appliances such as frying pans and woks online. Artisanal luxury cookware retailer Queenspree tells Digital Edge that it saw a 400% jump in sales month on month at the peak of the movement restrictions in 2020 and this year. The retailer sells both local and international artisanal cookware such as Le Creuset and Staub. It started out with just one brand but has now expanded to a variety of premium cookware brands from the UK and Europe. Queenspree, founded by Abdul Rahman Md Din and Rafiza Abd Hamid, was launched in the last quarter of 2019 — barely three months before Malaysia came under its first Movement Control Order (MCO) on March 18, 2020. Rafiza, who is the start-up’s chief financial officer, says its month-on-month sales grew rapidly during the MCO because of the company’s capacity to operate digitally and scale order processing. “Year to date, September 2021 sales figures rose by 48% compared with the same period last year — with both periods plagued by lockdowns,” says Rafiza. “The pandemic was definitely a factor, but e-commerce is also an enabling factor. Businesses that were not ‘digitally’ ready might not be able to ride the wave to its full potential. “We observed that some of our bricks-and-mortar counterparts had to switch to online selling by taking orders through WhatsApp during the pandemic, but it was definitely a struggle for them to process the orders manually,” she says. With the economic stimulus provided by the government, coupled with a moratorium on loans, most people had a lot more disposable income. “Many took the opportunity to acquire things they had been longing for, something that they desired but would not normally purchase due to the high price point. It has been observed that these desirable brands are the ones that have done really well,” Rafiza says. Queenspree also introduced buy now, pay later (BNPL) payment options provided by companies like Hoolah and GrabPay, and zero-interest instalment plans for up to 12 months with Maybank. Rafiza says around 40% of Queenspree’s orders use BNPL. She believes that the pandemic-driven uncertainty is one of the reasons many opted for BNPL options. “Although some customers can afford to buy the goods in one go (based on their purchase record), they still opt for the BNPL option just because it gives them more room to manage their cash flow in case of any uncertainty,” she reasons. This form of payment is also seamless and instant. “The BNPL seamless user experience from application to approval is also a factor. The process is as easy as entering one’s card details and some extra personal information — that’s it. The risk assessment algorithm will then take over, and approval or rejection takes place almost instantly.” Moreover, BNPL makes products more affordable, and the service is free of charges and interest if payments are made promptly. All these factors have motivated the company to aspire to expand regionally. Rafiza says the company is undertaking a systems upgrade project to streamline the checkout and fulfilment processes for international orders. This includes partnering with STRIPE, an international payment solutions provider that will enable the processing of international payments in “a more secure, intuitive and robust manner”. It has also entered into a Memorandum of Understanding with one of its suppliers in Milan “which will enable us to introduce more European brands on our e-commerce platform”. Rafiza and her husband are certainly looking upwards and outwards in spite of the pandemic. “We aspire to be a regional hub for kitchen furnishing products by enabling our technology and growing our product offerings,” she 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/670438

Probe underway to find cause of blaze razing Northport's containers at Port Klang, says Loke

English

SHAH ALAM (June 8): Investigations are underway to determine the cause of the fire that razed 13 shipping containers belonging to Northport (Malaysia) Bhd near Jalan Pelabuhan Utara, Port Klang. Transport Minister Anthony Loke Siew Fook said the investigations by the Port Klang Authority and Northport are ongoing, and will involve all aspects, including false declarations. “We still are investigating the cause of the fire, and I do not want to speculate. “If the declarations were false, then stern action will be taken against those responsible,” he told the media after the presentation of the ISO 37001:2016 Certificate of Compliance for the Anti-Bribery Management Systems to the Port Klang Authority here on Thursday (June 8). Loke said his ministry is concerned about the declaration of goods in the containers to ensure safety, adding that some controls will be tightened to prevent such incidents from recurring. Read also: Northport says fire at container yard under control, with no casualties or injuries

https://theedgemalaysia.com/node/619003

My Say: Ensuring a minimum wage does not affect business competitiveness

English

This article first appeared in Forum, The Edge Malaysia Weekly on May 9, 2022 - May 15, 2022 The labour income or wage is very much a subject of debate in the political sphere as a measure of how the benefits of growth are shared between workers and owners of capital. Wages account for about two-thirds of household income in Malaysia and, thus, play an important social function in influencing the welfare indicators such as living standard, poverty and income inequality. On May 1, the government announced the implementation of a new minimum wage of RM1,500 per month. However, the issue of the new minimum wage is still a point of contention among politicians, employers, workers and analysts. From the perspective of workers, an increase in the minimum wage is needed to offset the higher prices of goods and services that have resulted in a rise in the cost of living. This wage increase is also expected to raise the labour force participation rate, especially among the local population. From the perspective of employers, especially micro, small and medium enterprises (MSMEs) and those still affected by the Covid-19 pandemic, a 25% increase in labour costs (from a monthly salary of RM1,200 to RM1,500) is likely to put pressure on their operation costs. Rising prices of goods and services and a reduction in the number of workers are among the market responses that are expected to occur when the higher costs cannot be offset by an increase in revenue. The cost of labour is an important factor affecting business competitiveness. If we understand competitiveness to mean growth potential, we must examine the size and efficiency of use of labour in production. Employers hire workers up to the point at which the additional revenue generated by hiring an additional worker is equal to the wage rate (that is, the additional cost of employing that worker). Both employers and workers are in a “win-win” situation when additional labour costs are compensated by the additional revenue (see Figure 1). The bridge between wage and revenue is productivity. In the case of the new minimum wage, when the increase in the wage rate is associated with productivity growth, then production and revenue expand. In this case, the increase in the minimum wage does not affect the level of business competitiveness. In contrast, a relatively lower productivity growth in relation to labour cost will limit competition and thus threaten business growth and job creation. To give an overview of the relationship between wages and competitiveness, Figure 2 shows the growth of labour productivity (value added per worker) and wages (salaries) for the manufacturing sector and the overall economy for the period 2011-2020. For the manufacturing sector, the growth of labour productivity and wages are fairly correlated (wages change with productivity). It should be noted that no country in the world experiences a perfect association between labour productivity and wages. For the economy as a whole, labour productivity and wage movements are less connected than in the manufacturing sector. This means there is a mismatch between labour productivity and wages for the agriculture, mining and quarrying, construction and services sectors. It is possible that there are some sectors in which labour productivity growth surpasses wage movements and the opposite may be true for other sectors. This requires a sector by sector examination. Similarly, a close examination of labour productivity and wages at the state level is crucial because of significant variations in the competitiveness levels among the states in Malaysia. Finding an equilibrium point between balancing the need for salary increases and business competitiveness is important. The economic situation that we are facing is not similar to that of previous years, where the implementation of the minimum wage order was more efficient. The country is still in the economic recovery phase and will take longer to fully recover given the global economic situation and geopolitical conflicts. We have to believe that the equilibrium between wages and competitiveness exists and finding that equilibrium point requires the wisdom of policymakers. In conclusion, the following analogy may be useful. An old vehicle with a small engine capacity will find it quite impossible to accelerate as quickly as a vehicle with a large and modern engine. That is not taking into account the safety factor during acceleration. Interventions to modify the engine are possible, but at the risk of compromising on safety. The ideal situation is to have a vehicle with a larger engine capacity for better acceleration (higher productivity) and to ensure that we reach our destination on time (more wealth creation and better well-being). Associate Professor Dr Mohd Yusof Saari is chief economist at the EIS-UPMCS Centre for Future Labour Market Studies (EU-ERA) 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/623320

资本开销提高至600亿 国油首次为清洁能源拨款

Mandarin

（吉隆坡9日讯）国家石油（Petronas）将为截至12月杪2022财政年拨出约600亿令吉的资本开销，而一年前为305亿令吉，因国油准备恢复早前受新冠行动限制令影响的业务活动，且首次为清洁能源和非碳氢化合物相关领域拨款。 国油财务总监Liza Mustapha表示：“由于业务活动恢复，资本开销增加近一倍，达到600亿令吉。这也是我们必须在非碳氢化合物领域进行一些实质性行动的时候。” 她是在今日举行的MIDF线上对话会议上发表谈话。MIDF集团董事经理Datuk Charon Mokhzani是这场活动的主持人。 Liza指出，在这600亿令吉资本开销中，除了非碳氢化合物相关业务外，约400亿令吉将用于油气业务，而余下将为国油化学（Petronas Chemicals Group Bhd）独资子公司Petronas Chemicals International B.V.（PCIBV）拟以15亿4000万欧元（约70亿2000万令吉），向Financiere Foret S.A.R.L收购瑞典特种化学品集团Perstorp Holding AB全部股权提供资金。 根据国油化学的最新年报，国油持有该公司64.35%股权。 展望未来，她预计，非碳氢化合物相关收入预计将占国油营业额的30%左右。 “我们必须把（业务）增长计入，否则将无法管理能源转型，也将无法实现2050年净零碳排放目标。” 据她说，约10%的资本开销将拨给非传统业务，如特种化学品和太阳能。 “以前，并没有规划（清洁能源领域）比例，所以我们需要考虑资本分配的决定……若只是放手不管，让其顺其自然，那么我们将再次落后（实现目标）一年。”   （编译：陈慧珊）   English version：Petronas ups annual capex to RM60 bil, makes first allocation for clean energy

https://theedgemalaysia.com/node/625913

隔夜美股波动 马股高开低走

English

（吉隆坡28日讯）马股微幅高开后下滑，跟随波动的隔夜美国股市。 截至9时07分，富时隆综指下滑0.39点，挂1437.73点。 综指开市报1438.98点，较昨日闭市的1438.12点，微升0.86点。 下跌股126只、上升股117只，另有181只无起落、1918只无交易，以及79只暂停交易。 成交量1亿5056万股，值4650万令吉。 乐天交易股票研究副总裁Thong Pak Leng指出，科技股领跌，隔夜美股收低。 他向马新社说，由于区域情绪改善，而马股估值相对同侪仍具吸引力，因此对本地股市短期内表现持谨慎乐观的态度。 “尽管如此，由于区域和全球波动性仍然很高，投资者依然将保持警惕。” “因此，我们预计综指今日将在1430和1450点区间游走。” 重量级股中，亚通（Axiata Group Bhd）升3仙，至2.77令吉、马银行（Malayan Banking Bhd）和戴乐集团（Dialog Group Bhd）各扬2仙，分别报8.60令吉和2.15令吉、联昌国际集团（CIMB Group Holdings Bhd）和齐力工业（Press Metal Aluminium Holdings Bhd）皆起1仙，分别挂4.93令吉和4.70令吉。 大众银行（Public Bank Bhd）则下滑1仙，报4.43令吉，而国油化学（Petronas Chemicals Group Bhd）和IHH医疗保健（IHH Healthcare Bhd）分别持平于9.20令吉和6.48令吉。 至于热门股，绿驰通讯（Green Packet Bhd）和迪耐（Dagang NeXchange Bhd）各跌0.5仙，分别至6仙和79仙、沙布拉能源（Sapura Energy Bhd）增1仙，挂5.5仙，科恩马（KNM Group Bhd）和有利工业（Yew Lee Pacific Group Bhd）则分别平盘挂于12.5仙和25仙。   （编译：陈慧珊）   English version：Bursa Malaysia opens slightly higher, but retreats thereafter

https://theedgemalaysia.com/node/621249

HLIB cuts Leong Hup earnings forecasts, downgrades stock to 'hold' after 1QFY22 miss

English

KUALA LUMPUR (May 25): Hong Leong Investment Bank (HLIB) Research on Wednesday (May 25) cut its earnings forecasts for Leong Hup International Bhd and downgraded the stock to "hold" from "buy" after the company’s latest results missed expectations. The local research house also lowered its target price for the stock to 56 sen from 66 sen. HLIB Research analyst Chye Wen Fei in a Wednesday note cut her core earnings forecasts for Leong Hup for the financial year ending Dec 31, 2022 (FY22) and FY23 by 19.7% and 26.4% respectively, mainly to account for higher feed cost, finance and depreciation charges. The new target price was based on 18 times revised FY23 core earnings per share of 3.1 sen, she added. According to her, Leong Hup's core net profit for the first quarter ended March 31, 2022 (1QFY22) of RM23.5 million (-34.7% quarter-on-quarter; -67.3% year-on-year) missed expectations, accounting for only 14.2% to 17.5% of the consensus and her full-year estimates, due mainly to higher-than-expected feed, depreciation and finance costs. She believes near-term headwinds remain for Leong Hup, on the back of the government’s recent move to ban exports of chicken (starting from June 1 in an attempt to manage food inflation and ensure food security in the country) which will likely hurt its bottom line, and prices of key inputs (in particular, soybean meal and corn) will likely remain escalated (arising from high fertiliser prices and tight supply of corn and soybean). But despite the weak 1QFY22 showing, she believes Leong Hup’s performance will improve from 3QFY22 as prices of key inputs (in particular, soybean meal and corn) have weakened since 1QFY22, and this will result in lower feed cost. Besides, she believes demand for poultry products will remain robust as economic activities in all countries Leong Hup is operating in have resumed with minimal restrictions. At the time of writing on Wednesday, Leong Hup had risen half a sen or 0.99% to 51 sen, valuing the group at RM1.8 billion. Year to date, the counter has tumbled 7.27%. Read also: Leong Hup 1Q net profit plummets 71% on higher input costs of feed 

https://theedgemalaysia.com/node/659279

终止五连跌 马股收涨10点

English

（吉隆坡15日讯）在连续5个交易日收低后，受逢低买盘带动，马股反弹收高。 闭市时，富时隆综指上涨10.10点或0.72%，收于1403.93点。 综指今早开市报1400.10点，较昨日收盘的1393.83点，高开6.27点。日内游走于1399.80点和1406.57点。 上升股达604只、下跌股289只，另有383只无起落、972只无交易，以及10只暂停交易。 成交量31亿3000万股，值23亿4000万令吉。 乐天交易股票研究副总裁唐栢麟指出，随着隔夜全球股市乐观，主要亚洲股市也收高。 他向马新社表示，投资者猜测美国银行危机对全球造成的最严重影响已经过去，因美国总统拜登承诺在硅谷银行（Silicon Valley Bank）倒闭后提供全面存款保险。 “国内方面，由于波动加剧，即使本地和全球股市反弹，但我们仍然保持谨慎。” “我们认为，由于本地市场仍处于超卖，逢低买盘活动可能会继续。” 唐栢麟预计，综指周内将在1400至1420点区间波动。 同时，马六甲证券高级分析员Kenneth Leong指出，随着投资者关注美国联储局（FED）下周议息决定，综指料进行盘整。 他向马新社说：“从技术层面来看，如果1400点水平得以维持，持续的逢低买盘可能推高综指至1435点的下个阻力位。支撑位落在1375点。” 重量级股中，马银行（Malayan Banking Bhd）起1仙，收于8.35令吉、大众银行（Public Bank Bhd）扬7仙，至3.95令吉、国油化学（Petronas Chemicals Group Bhd）攀5仙，挂7令吉、联昌国际集团（CIMB Group Holdings Bhd）升6仙，至5.23令吉，以及国家能源（Tenaga Nasional Bhd）涨15仙，以9.42令吉挂收。 至于热门股，今日在创业板上市的Oppstar Bhd飙升1.80令吉，报2.43令吉、丰成综合（Hong Seng Consolidated Bhd）增0.5仙，挂15仙、日马集团（Jade Marvel Group Bhd）升0.5仙，至30仙、SMRT控股（SMRT Holdings Bhd）攀5仙，挂51.5仙，而万成利企业（BSL Corp Bhd）挫1仙，报4仙。   （编译：陈慧珊）   English version：Bursa snaps five-day losing streak, KLCI up 0.72%

https://theedgemalaysia.com/node/671206

JAG unit appointed as service partner for spent catalyst treatment processing

English

KUALA LUMPUR (June 14): JAG Bhd said its wholly-owned recycling unit, Jaring Metal Industries Sdn Bhd (JMI), has been appointed as the service partner of Atreon Holdings Sdn Bhd for spent catalyst treatment processing and reworking at JMI’s facilities in Malaysia. Spent catalyst is a waste material produced from the cracking of petroleum in oil refineries. The minimum total value of the three-year contract is RM27.6 million, said JAG in a stock exchange filing on Wednesday (June 14). JMI is involved in waste reduction and recovery strategies, specialising in scrap removal and recycling of ferrous and non-ferrous metal. Atreon's business includes waste management and mining activities. JAG’s shares closed unchanged at 32 sen, with a market capitalisation of RM199.93 million.

https://theedgemalaysia.com/node/611570

(Unofficial) Johor Polls: PN wins in Bukit Kepong

English

(Unofficial) Johor Polls: PN wins in Bukit Kepong 

https://theedgemalaysia.com/node/603302

Allianz拟派息63仙 膺第二大上升股

Mandarin

（吉隆坡11日讯）Allianz马来西亚（Allianz Malaysia Bhd）建议在截至2021年12月杪财年，派发每股63仙中期股息，刺激该股今早挤入马股十大上升股排行榜。 该股今早高开24仙，报13.20令吉，并一度攀升至13.28令吉盘中高位。 截至早上9时42分，该股回吐了部分涨幅，报13.24令吉，仍上升28仙或2.16%。 该股成为马股第二大上升股，共5万1300股转手。 Allianz马来西亚周一还宣布，不可赎回可转换优先股（ICPS）的中期股息为每股75.6仙。 该集团在2020财年分别为普通股和ICPS派发58仙和69.6仙股息。   （编译：魏素雯）   English version：Allianz Malaysia among top gainers after proposing interim dividend of 63 sen for FY21

https://theedgemalaysia.com/node/601033

Futureproofing TNB’s business via sustainability pathway 2050

English

As the world emerges from the impact of the Covid-19 pandemic, which has devastated lives and livelihoods over the last two years, now more than ever there is an urgent need to rebuild lives and economies in a manner that is sustainable — an imperative that resonates deeply with Tenaga Nasional Bhd (TNB). Responsible for ensuring reliable supply, TNB’s sustainability strategy delicately balances socioeconomic considerations and conservation of the environment. A strategic priority, the sustainability agenda at TNB has continuously evolved over the last two decades towards driving impactful, long-term value for the company’s business and stakeholders. In recent years, sustainability is seen as key to addressing not just the energy trilemma but also to future-proof TNB’s business. As TNB continues its efforts to ensure energy reliability and balance energy affordability and sustainability, it also has to navigate the challenges and risks posed by climate change and the pandemic. To stay ahead of industry disruptions — which are centred on decarbonisation, decentralisation, digitalisation and deregulation — a robust sustainability plan is vital. TNB’s Sustainability Pathway 2050, which was unveiled a few months ago, sets out the national electricity utility’s green ambitions. At its core, the pathway also sees to the future-proofing of TNB’s business. This is crucial because the transition to a green economy has to be balanced with financial sustainability and ensuring that shareholder value continues to be well protected. Through the Sustainability Pathway, TNB has set a target to achieve net-zero emissions by 2050. This aspiration is underpinned by a commitment to reduce 35% of its emissions intensity as well as 50% of its coal generation capacity by 2035. The electricity utility company had earlier committed to no longer investing in greenfield coal plants — the last being Jimah East Power, which was commissioned in 2019 — and aspires to be coal-free by 2050. The Sustainability Pathway is also in sync with national sustainability goals. Malaysia recently declared its target of becoming a carbon-neutral country by as early as 2050 — reinforcing its Nationally Determined Contributions to reduce greenhouse gas emissions intensity by 45% by 2030, relative to 2005 levels. Through the Sustainability Pathway, TNB has also affirmed its commitment to the country’s renewable energy (RE) plan to increase the share of Malaysia’s RE capacity to 31% by 2025 and 40% by 2035. To that end, TNB plans to expand its renewables portfolio. To date, it has 3,406MW domestic and international RE capacity, and is targeting to have 8,300MW by 2025. In Peninsular Malaysia, TNB is developing the Nenggiri hydroelectric dam in Gua Musang, and has also secured a new 50MW large-scale solar plant in Kuala Muda, Kedah, which is scheduled to commence operations at the end of 2023. TNB also has established platforms to encourage RE supply and trading among its customers. These include rooftop solar solutions from TNB subsidiary GSPARX Sdn Bhd and Malaysia Renewable Energy Certificate (mREC) from TNBX Sdn Bhd. For the former, GSPARX has secured 103MW of rooftop solar installations to date. Plans are afoot to collaborate with the Langkawi Development Authority to reduce its carbon emissions through the installation of a 363kWp solar photovoltaic system at the Dermaga Tanjung Lembung Complex. Meanwhile, through the newly launched Green Electricity Tariff (GET) programme, customers will receive mREC from grid-connected RE generators. There has also been an increase in uptake of green energy generation among consumers, with TNBX issuing 621GWh of mREC to its customers to date. On the global front, TNB’s international subsidiary Vantage RE Ltd recently acquired a 49% stake in Blyth Offshore Demonstrator Ltd, an offshore wind farm company in the UK, from EDF Renewables, with installed capacity of 41.5MW and further development rights of up to 58.4MW. This marks TNB’s first foray into offshore wind assets, and with a strong partner, it aims to build expertise in this technology and beyond. The focus of the international business will be to further grow the overall RE portfolio and serve as the pathfinder for green technologies that can eventually be adopted in Malaysia. As TNB moves towards the adoption of new technologies, it is cognisant of the importance of being prudent and securing the right timing on green technology investments, such as carbon capture, to ensure the economic feasibility of these investments. The foundation of managing sustainability at TNB is the integration of its sustainability pillars — namely governance, economic, environmental and social — within its goal of becoming a leading global electric utility. Its sustainability strategy is centred on TNB’s most material environmental, social and governance (ESG) issues and contributions to the UN Sustainable Development Goals. In the case of the Nenggiri hydroelectric dam, for example, apart from supplying 300MW of green energy and contributing to flood management, the main reservoir will supply clean water for irrigation and create new employment and economic opportunities. Furthermore, collaborations with environmental organisations at these project sites ensure that the right expertise is leveraged for biodiversity conservation. TNB also actively engages with nearby communities, including the Orang Asli communities who live near the operation sites, and initiatives are rolled out with the purpose of protecting their well-being and to generate socioeconomic benefits. At the Hulu Terengganu Hydroelectric Power Stations, forest seedlings and grass were replanted for forest regeneration to enhance the area’s function as a wildlife corridor. Conservation efforts of fish species are also carried out at fish sanctuaries, for example, for the kelah, as part of TNB Research’s Fish and Fisheries Management, as well as eco-tourism activities such as sport fishing through the catch-and-release method. TNB balances the three key elements of the energy trilemma of security, sustainability and affordability by continuing to invest in modernising the grid to increase system efficiency, security and reliability. Under the incentive-based regulatory framework, TNB is investing RM7 billion to RM10 billion a year from 2022 to 2024 to develop the grid as one of the key enablers of the energy transition. Investments to modernise the grid to become the “Grid of the Future” take into account the adoption of new technologies such as the energy storage system to enhance the grid’s flexibility and address the intermittency issue in RE. That TNB is investing gradually and continuously to modernise the grid is especially noteworthy to ensure not only spikes in investments can be balanced, but also that TNB is prepared for increased demand, driven by extreme climate changes. As the nation’s energy provider, TNB plays a significant role in contributing to nation-building, which has been more crucial than ever since the pandemic. It directed its focus towards stimulating the economy while keeping the lights on, alleviating its customers’ financial burdens and safeguarding its employees. In 2020, TNB achieved 99.78% system availability, and its System Average Interruption Duration Index (SAIDI) stood at 44.95 mins/customer/year, on par with developed nations such as the UK, France and Australia. This translates into high-quality service for 9.44 million homes and businesses connected to its system in peninsular Malaysia. What is equally noteworthy is the fact that such a world-class service is achieved and delivered to customers at tariffs that are highly competitive with those of other developing nations, and among the lowest if not the lowest in the region. TNB is also continuously looking for ways to leverage cutting-edge digital technologies to improve the quality of its services. It is increasingly interacting with customers digitally, with more than 5 million myTNB app users to date. It has also rolled out more than 1.8 million smart meters to help consumers better manage their energy consumption and implement energy-efficiency initiatives. In keeping with new pandemic norms and for the convenience of consumers, it also recently launched the TNBtemujanji online appointment booking.

https://theedgemalaysia.com/node/664463

Kronologi rides wave of growing cloud demand

English

This article first appeared in The Edge Malaysia Weekly on April 24, 2023 - April 30, 2023 ACE Market-listed data storage and cloud specialist Kronologi Asia Bhd, whose operations in China count Baidu Inc as a client, reveals that it is in talks with Amazon Web Services (AWS), Alibaba Cloud, Tencent, Ping An Cloud and Microsoft Azure to offer them its enterprise data management (EDM) services. Baidu is one of the largest artificial intelligence and internet companies in the world. Kronologi is a hybrid and cloud EDM technology and solutions provider with a diversified customer base, comprising government sectors, large enterprises, food and beverage companies, banks, financial institutions, stock exchanges, as well as media and broadcasting companies. It provides EDM solutions to Baidu. “In terms of where we are on the value chain, both AWS and Kronologi are cloud service providers. But if you look at how we are serving Baidu’s hyperscale infrastructure in China, there is a possibility that AWS could also be our client in Malaysia,” says Kronologi CEO and executive director Edmond Tay Nam Hiong. “But then again, it’s not just AWS. We would like to think that all hyperscalers (large cloud service providers) could potentially be our clients. We could provide EDM solutions to them and we could be a hybrid cloud enabler.” He says AWS’ decision in March this year to invest RM25.5 billion in Malaysia by 2037 has validated Kronologi’s proposition on the growing importance of data and rising demand for cloud storage. This is AWS’ first cloud computing infrastructure investment in Malaysia. “Overall, we are happy to see more hyperscalers coming to Malaysia. It’s good for the whole market. It shows that the cloud market is buoyant. Everybody will be enjoying a bigger slice of an enlarged pie,” Tay continues. Unlike hyperscalers, Kronologi does not own data centres, which are capital intensive. Instead, the group leases space from data centre providers. But for Tay, it is Kronologi’s business in China that gets him excited. In November 2018, Kronologi invested in a 16.67% stake in China-based digital infrastructure outfit Quantum China Ltd (QCL) for US$3 million. About two years ago, Kronologi acquired the remaining 83.33% stake in QCL for RM150 million via a 50:50 cash-plus-share deal, in a move to expand its sales, marketing and customer coverage footprint in China. Tay says that it has been a successful acquisition by Kronologi, as QCL has met its profit guarantee targets and fulfilled the terms of the deal. “China is a market that we have to be in. The growth in Asia surrounds China. If we want to grow bigger and faster, we have to participate in the country. Today, we are not a big player there, but even then, China is already contributing to about 28% of our group’s revenue. “We see huge growth potential in China. The way I see it, we are merely scratching the surface of the Chinese enterprise data market. By virtue of its size and business momentum, I think China has the potential to overtake Singapore as the top contributor to our group in the near term,” he elaborates. The bulk of Kronologi’s turnover in FY2023 came from Singapore, amounting to RM106.82 million (34% of total revenue), followed by China and the Philippines, which contributed 28% and 24% of the group’s top line respectively. “Moving forward, we expect more Chinese hyperscalers and multinational corporations to use our total solutions to serve their ever-growing data management requirements. “Definitely, we hope to secure more clients in China. Besides hyperscalers, we are also targeting webscalers in various countries. For example, some telcos want to participate in the cloud market. They are not as big as hyperscalers, but they are our potential customers,” says Tay. By product category, the EDM infrastructure technology segment continued to dominate Kronologi’s turnover, amounting to RM248.44 million or 79% of its total revenue, with EDM as-a-service making up the balance. Tay observes that Kronologi’s performance in various markets has been “pretty good”, and the group intends to strengthen its financial performance in the coming years. “Our core strength is our ability to provide ‘as-a-service’, ‘pay-per-use’, consumption-based and subscription-based services in the area of data management,” he says. Despite various global challenges, such as a weakening IT spending environment, Kronologi aims to double its turnover and triple its earnings before interest, taxes, depreciation and amortisation (Ebitda) within the next three to five years. In March this year, IT consulting and research firm Gartner Inc said that global IT spending contracted by 0.2% to US$4.38 trillion in 2022. Earlier, in January, it had forecast a 2.4% growth for worldwide IT spending this year — less than half its previous estimate last October — as economic uncertainties continue to rattle markets. Tay acknowledges that the macro environment is expected to remain challenging this year, but he is confident that the group will continue to register growth in the coming years. “Conservatively, we work towards a 10%-15% growth for both top line and bottom line every year. But our long-term goal is to double our group’s revenue and triple our Ebitda in the next three to five years,” he says. For the financial year ended Jan 31, 2023 (FY2023), Kronologi saw its net profit grow 5.7% to RM25 million, from RM23.65 million a year ago. The technology firm’s revenue increased 2% to RM314.24 million in FY2023, from RM308.01 million the year before. The group’s Ebitda grew 21% to RM57.6 million in FY2023, from RM47.6 million the previous year.  As at end-January, its debt ratio stood at less than 0.3 times, while its cash and cash equivalents amounted to over RM100 million. Tay highlights that Kronologi had been well positioned to benefit from the continued recovery of demand for data management solutions in the second half of 2022. “Our group is well poised and confident in taking advantage of the secular growth trend in data-driven digitalisation and hybrid cloud. We believe data remains key and mission critical for enterprises,” he says. Year to date, Kronologi’s share price has risen 16% to close at 55.5 sen last Tuesday, giving the company a market capitalisation of RM399.8 million. The counter is currently trading at a historical price-earnings ratio (PER) of 16 times. Kronologi executive director and chief operating officer Tan Jeck Min believes that the group’s pan-Asia business footprint offers exposure to the growing data markets across the region, including China. “In the business segment that we are in, we feel that our stock valuation should be seen in the same light as other digital service providers such as ITMAX System Bhd and LGMS Bhd, which are trading at much higher stock valuations,” he says. ITMAX is trading at a historical PER of 36 times, whereas LGMS’ is at 42 times. Although Kronologi meets the requirements to transfer its listing to the Main Market, Jeck Min says the board is still deliberating on the benefits of making the transfer. “Other than a higher mandate for institutional investors, we are reviewing if there are any other clear advantages of going to the Main Market.” According to its Annual Report 2022, as at May 5 last year, Kronologi had three substantial shareholders, namely Desert Streams Investments Ltd (14.7%), Lavender Blooms Investments Ltd (12.57%) and Jeck Min (7.67%). In a March 30 research report, Apex Securities Bhd analyst Jayden Tan Kean Dick maintains a “buy” call on Kronologi, with a higher target price of 67 sen, up from 56 sen previously. “We favour Kronologi for its sustainable income, promising industry outlook driven by the digitalised data era, as well as its robust balance sheet [which] minimises risk amid the economic downturn,” he writes. Jayden also points out that as Kronologi exclusively serves the Asian market, the group is anticipated to capitalise on the region’s economic growth. “We understand that Kronologi is engaging with some corporate giants in China. Hence, we are optimistic on the group’s China operations, [which are expected] to grow further moving forward, supported by the reopening of China’s economy,” he adds.    Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/646907

美国经济数据强劲 令吉兑美元低开

Mandarin

（吉隆坡6日讯）美国经济数据走强，提振美元走势，导致令吉兑美元周二开盘下跌。 截至早上9时02分，令吉兑美元降至4.3780/3830，周一收报4.3660/3715。 供应管理协会（Institute for Supply Management，简称ISM）周一公布的数据显示，11月服务业活动意外上升。分析员表示，继上周五公布的美国就业数据反弹之后，美联储的加息幅度可能超过最近的预期。 SPI Asset Management董事经理Stephen Innes表示，由于美国股市下跌和债券收益率飙升，令吉周二早上开盘略微走弱。 他表示，美国经济数据意外强劲，引发了整体美元人气的轻微逆转。 “尽管如此，随着中国在经过3年严厉的封锁后真正开始开放经济，重新开启的乐观情绪应该会让令吉不至于走弱太多。” 他告诉马新社：“尽管我们预计中国重新开放将是一件颠簸的事情，但最终对令吉非常有利。” 令吉兑一篮子主要货币走高。 令吉兑英镑升至5.3425/3486，周一收报5.3632/3700，令吉兑欧元从4.6087/6146，上涨至4.5991/6043。 令吉兑新元也从3.2379/2425，攀升至3.2281/2323，而令吉兑日元则从3.2291/2334，上扬至3.2038/2079。   （编译：魏素雯）   English version：Ringgit opens lower against greenback amid strong US economic data

https://theedgemalaysia.com/node/647955

追踪华尔街上涨 马股小幅高开

English

（吉隆坡13日讯）尽管投资者在全球货币政策于本周出炉前采取谨慎模式，但华尔街隔夜上涨，提振马股今早开盘稍微反弹。 截至早上9时10分，富时隆综指微扬0.59点，至1474.97点，周一收报1474.38点。 富时隆综指高开2.15点，报1476.53点。 上升股234只，下跌股95只，231只无起落，1702只无交易及10只暂停交易。 马股总成交量为2亿1265万股，总值1亿4379万令吉。 乐天交易私人有限公司股票研究部副总裁唐栢麟表示，华尔街出现反弹，是因为现在焦点已转移到新的通胀数据及美国联邦储备委员会的利率举措上。 惟他预计，马股将继续表现平淡，因为区域市场表现疲软，市场情绪仍保持谨慎。 他告诉马新社：“尽管隔夜华尔街反弹，我们预计今天（星期二）也是如此。因此，我们预测富时隆综指将维持在1470点至1485点之间。” 重量级股方面，马银行（Malayan Banking Bhd）跌2仙，至8.68令吉，大众银行（Public Bank Bhd）挫1仙，报4.39令吉，国油化学（Petronas Chemicals Group Bhd）降1仙，至8.47令吉，联昌国际集团（CIMB Group Holdings Bhd）涨2仙，报5.76令吉，以及国家能源（Tenaga Nasional Bhd）升2仙，至9.22令吉。 至于热门股，甫于主板上市的ITMAX System Bhd弹升37仙，至1.44令吉，Velesto Energy Bhd扬0.5仙，报16仙，有利工业（Yew Lee Pacific Group Bhd）起1仙，至37仙，Advance Synergy Bhd企于18仙，以及利峰钢铁（Leform Bhd）增1.5仙，报22仙。   （编译：魏素雯）   English version：Bursa opens slightly higher in line with Wall Street gains

https://theedgemalaysia.com/node/667291

Wall Street declines after Home Depot outlook, US retail sales

English

NEW YORK (May 17): US stock indexes closed lower on Tuesday after a disappointing forecast from Home Depot and US retail sales data for April pointed to softer consumer spending, while uncertainty about interest rates and debt limit negotiations weighed on sentiment. Home Depot declined as the biggest drag on the Dow Industrials and was among the heaviest weights on the S&P 500 after the home improvement retailer cut its annual sales forecast and projected a steeper-than-expected decline in profit. Shares of peer Lowe's Companies Inc fell 1.38%. "You can argue that people are tired of spending on the house, they want experiences, they want to go out they want to do other things, they don’t want to fix up the house according to Home Depot, because they had horrendous earnings," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida. The Commerce Department reported retail sales rose 0.4% in April, short of the estimate for an increase of 0.8%. But core retail sales rebounded, a figure excluding automobiles, gasoline, building materials and food services. "There is a sense that people are starting to get a little bit more sensitive to the Fed being successful and this ongoing drama of the debt ceiling is causing angst." According to preliminary data, the S&P 500 lost 26.39 points, or 0.64%, to end at 4,109.89 points, while the Nasdaq Composite lost 21.89 points, or 0.18%, to 12,343.05. The Dow Jones Industrial Average fell 335.01 points, or 1.00%, to 33,013.59. Recent data has indicated slowing in the US economy following a string of rate hikes by the Federal Reserve to fight high inflation. That slowing along with recent negotiations over the US debt ceiling has focused attention on when the central bank will pause hiking, or cut interest rates. While the market is currently pricing in a rate hike by the end of the year, recent comments from Fed officials suggested they are not ready to cut rates soon. Richmond Fed President Thomas Barkin said he was "comfortable" with raising interest rates further if needed, but liked the "optionality" implied in the latest policy statement. Cleveland Fed President Loretta Mester said she does not think the central bank can hold interest rates steady yet. Lawmakers held a new round of talks about raising the debt ceiling. The Treasury Department has warned it could run out of money as soon as June 1 without a deal, which would trigger a default and likely cause a sharp economic slump. Horizon Therapeutics tumbled as the Federal Trade Commission said it would file a lawsuit to block Amgen Inc's US$27.8 billion deal to buy the company. Shares of Amgen fell. The decline in both stocks weighed on the Nasdaq Biotech Index, with each acting as the top two drags on the index. Shares of Capital One Financial Corp climbed the day after Berkshire Hathaway Inc disclosed it had taken a stake of nearly US$1 billion in the stock.

https://theedgemalaysia.com/node/674438

Citi to launch new commercial banking digital platform in Singapore

English

SINGAPORE (July 11): Citi has launched CitiDirect Commercial Banking, bringing together its products and services into a single digital platform to address the needs of Citi Commercial Bank (CCB) clients. Currently live in the US, CCB plans to pilot the platform in 2H2023 across Singapore, Hong Kong, India and the UK. Key features include access to data-driven insights necessary to help inform...(click on link for full story on theedgesingapore.com)

https://theedgemalaysia.com/node/655656

MPI tops losers list on Bursa after posting 78.5% plunge in 2Q net profit

English

KUALA LUMPUR (Feb 17): Malaysian Pacific Industries Bhd (MPI) fell by as much as 8.77% in Friday (Feb 17) morning trade on Bursa Malaysia, after reporting that its net profit for the second quarter ended Dec 31, 2022 (2QFY2023) plummeted by 78.5%. At 10.20am, the stock shed RM2.96 to settle at RM30.78 a share, giving it a market capitalisation of RM6.46 billion. On Thursday, MPI reported that its net profit fell to RM18.33 million from RM85.32 million a year ago, weighed by lower demand in the consumer electronics market. Earnings per share slumped to 9.22 sen for 2QFY2023, from 43 sen for 2QFY2022, while revenue dropped 13.42% to RM526.42 million from RM608 million previously. No dividends were declared for the quarter. The weaker quarterly performance resulted in a 57.47% contraction in net profit for the first six months of FY2023 to RM71.03 million, from RM167 million a year ago. Revenue was down 8.56% to RM1.09 billion, from RM1.19 billion. The outsourced semiconductor assembly and test firm warned that the challenging operating environment it is under will persist in the coming quarters, especially for its China operations, due to the overall weak demand in China and current geopolitical tensions. "However, the board expects demand in China to improve as it enters the endemic phase [of Covid-19]. Thus, the group will continue to focus on its business strategies and operational efficiencies to ensure sustainability, and strengthen its fundamentals in conducting business," it said. Meanwhile, CGS-CIMB Research downgraded MPI to “reduce” at RM33.74, with a lower target price of RM24 from RM27, and said MPI’s core net profit for the first six months of FY2023 was below expectations at 34% of its estimate and 38% of the Bloomberg consensus for the year, due to lower-than-expected utilisation of its Carsem Suzhou plant in China during the quarter under review. Read also: MPI's net profit falls 78.5% in 2Q on weaker demand for consumer electronics

https://theedgemalaysia.com/node/675286

Yellen sees disinflation pressures at work as hiring surge fades

English

(July 18): Treasury Secretary Janet Yellen said a cooling — but not faltering — labour market is playing a key role in helping to slow US inflation, among a raft of factors imposing disinflationary pressures. “The intensity of hiring demands on the part of firms has subsided,” Yellen said on Tuesday (July 18)in an interview with Bloomberg News. “The labour market’s cooling without there being any real distress associated with it.” Along with job market shifts, Yellen cited housing costs and vehicle prices among factors that are likely to keep pushing down cost pressures. She also suggested that corporate profit margins could play a role. At the same time, she urged against excessive optimism based solely on June’s consumer price data. The improvement in the inflation landscape comes as welcome relief for Yellen and the Biden administration after they bungled the issue in 2021. Yellen initially said the burst in prices triggered by the pandemic would be “transitory”, a forecast she later characterised as a mistake. Receding inflation has prompted economists and investors to reassess recession risks. Goldman Sachs Group Inc on Monday (July 17) scaled back its estimate of the odds of a downturn to 20%, from 25% previously. And JPMorgan Chase & Co’s Marko Kolanovic, who started turning bearish on markets last December, said the path to a soft landing is “modestly wider”. Last week’s consumer price index report showed a year-on-year gain of 3%, the smallest since March 2021 — when the US was in the very beginning of the pandemic inflation surge. That’s well down from the peak above 9% in June last year. Excluding food and energy, the core CPI was up 4.8% from a year before. In the interview, Yellen cautioned against reading too much into the June data, calling it “one month’s numbers”. But she saw other positive points in the underlying data, especially in housing, that she thinks will continue. “Housing had a reduced contribution, and there’s every reason to believe that that will continue and come down further,” she said. “That’s an important thing that influences core inflation.” Rent inflation in the US has been slow to drop because of the length of typical leases. In goods, where prices fell on a month-over-month basis in June, Yellen pointed to autos as an important factor providing signals about supply chains that Covid so deeply disrupted. “Used cars have been a significant contributor” in the reduction of core inflation, she said. “Inventories are being rebuilt. The whole supply chain in autos is improving. So there’s reason to believe that we could get some continued benefit from that.” The improvement in US inflation trends has contrasted with suggestions of outright deflationary risks in China. The Treasury chief on Monday said while China’s slowdown could have negative spillovers, she still saw the US averting a recession. The jobs market remains crucial for President Joe Biden and his re-election hopes next year. Biden needs inflation to fall, but without the Federal Reserve’s aggressive rate increases — five percentage points of hikes since March 2022 — triggering a recession or significant rise in unemployment. Yellen has consistently said it’s possible to bring inflation back to the Fed’s 2% target without a spike in joblessness, a view that has been seen as overly optimistic in some quarters. But so far, the labor market has proved remarkably strong. Unemployment remained at 3.6% in June, near a half-century low. “We’re not seeing firms actively reduce” their headcount, “except in a few hard-hit sectors, like tech,” Yellen said. “We’re not seeing them lay off workers, it’s just the intensity with which they’re trying to add to their workforce seems like it’s reduced somewhat.” She also cited a drop in job openings. Despite wage growth that continues to contribute to inflation, she said she believes it may not be absolutely necessary to rein wages in to further temper price rises, alluding to the potential for reduced corporate margins. “Profit margins are also quite high, and they have some cyclical dimension,” she said. “So, I don’t want to go so far as to say you couldn’t see inflation come down without further moderation in wages.” Lael Brainard, the White House National Economic Council director, was more direct, last week calling on companies to “bring their markups down.” Yellen was speaking on the sidelines of meetings in India with finance chiefs from around the world. She departs India on Tuesday for two days of meetings in Vietnam with government and business leaders.

https://theedgemalaysia.com/node/664495

Lebtech unit wins RM55.3m job for reclamation, shore protection, revetment works in Pekan

English

KUALA LUMPUR (May 5): Lebtech Bhd’s unit has won a RM55.3 million job for reclamation, shore protection and revetment sub-contract in Pekan, Pahang from Global Marine Contractor Sdn Bhd. In a bourse filing on Friday (May 5), Lebtech clarified that the letter of award to its wholly-owned subsidiary Lebtech Construction Sdn Bhd was issued by Global Marine, which in turn was awarded the sub-contract by Vista Infinity Development Sdn Bhd. "The project was awarded to Vista Infinity by the Ministry of Natural Resources, Environment and Climate Change," Lebtech added. The job will span 33 months starting from May 3, involving sand supply, site management and mobilising all dredging plant and equipment necessary for the project, said Lebtech in an earlier stock exchange filing on April 25. Lebtech said this contract is expected to contribute positively to its earnings from the financial year ending Dec 31, 2023 (FY2023) onwards. For FY2022, the group reported a net profit of RM74,000, down 77% from RM326,000 in FY2021, while revenue fell 23.4% to RM20.17 million from RM26.33 million, as the group’s construction project was in the final stage of completion. Commenting on FY2023 prospects, Lebtech said it remains cautious as its board of directors foresees operational results to be “equally challenging”. “The group expects the construction industry to record slower growth in year 2023 amid revision of mega projects and in line with the slowdown in the global construction sector and the Covid-19 pandemic,” it said. “The revenue generation mainly comes from the construction contracts of property development projects with significant effort be given to secure new construction jobs to improve the order book,” it added. At 3.49pm on Friday, shares of Lebtech were traded down 3 sen or 4% at 72 sen, giving it a market capitalisation of RM98.27 million.

https://theedgemalaysia.com/node/622373

Education, the key to Malaysia’s aspirations, says BMCC chairman

English

KUALA LUMPUR (June 1): To realise Malaysia’s ambition to grow its digital economy, education is key, according to the British Malaysian Chamber of Commerce (BMCC) Chairman Abrar A Anwar. Abrar, who is also Standard Chartered Bank Malaysia Managing Director and CEO, said that Malaysia needs to provide more local educational opportunities in the country to both retain its talent, as well as provide those present in the country with the appropriate skill sets for what the country wishes to aspire. In view of this, he added that in line with the 12th Malaysia Plan (12MP), the Malaysian education sector is one key area where the UK has been contributing and continues to contribute. “Education is the backbone of a nation, and the UK has got a lot of campuses here — invested in campuses to provide world-class education to the students of Malaysia and there are also a lot of students who travel to the UK for education. [Therefore], one area that the UK has been contributing and will continue to contribute and where it has got a competitive advantage is education.  “What is the 12MP? It is digital Malaysia, high-end Malaysia. To get high-end Malaysia you need people, you need the right skilled people to take Malaysia to the next level. "So from that perspective, developing the people of the future is what I think the UK can do [for Malaysia] and continues to do,” Abrar told The Edge in an interview on May 26. Abrar noted that Malaysia has to attract foreign direct investment (FDI) to support its provision of local educational opportunities, as well as siphon skills and technology not currently available in the country. “For that we need educational institutions, you need entities which give hands-on-training, and you need FDI of high-tech manufacturing or services, so that there is a technology transfer.  “If you look at where Malaysia is looking for its opportunities in future, [look at] data centres, regional business centres, services and then manufacturing, high-tech manufacturing,” he added.  However, Abrar highlighted that Malaysia has to both train its current labour force, as well as attract FDI to buoy this initiative to attract more investments in future.  “For anybody that comes for investment, it's like chicken and egg, which comes first. Will the investment be brought if the skill sets and manpower are available, or do we keep manpower and then wait for them to train our manpower. It goes hand in hand, and therefore has to be in tandem,” he said, noting that the BMCC had given a presentation to the National Recovery Council (MPN) on the matter. However, besides equipping Malaysia’s labour force with the correct skill set, Abrar also noted that Malaysia has to find a way to retain its talent and prevent them from leaving the country. “At any point in time, I think 20,000 Malaysians will go to the UK to study, but are we able to bring them back? "There is a global war on talent, it is not only local, it is a global war. Many countries need people, people can make the difference,” he said.  Looking to our neighbours, Abrar said the competition for FDI is heated in ASEAN and noted that with the headwinds China currently faces, an opportunity has opened up to become an alternate major global supply chain player. “If you look at ASEAN, all the countries are trying to get investments — Indonesia, Vietnam, Cambodia plus Singapore is also there. Who will get those investments? “There is this space for opportunity, plus there is a supply chain disruption with China due to the lockdowns. Also people realise that these lockdowns can result in massive logistical disruptions. What is the alternative to China? Will there be a China plus one?” Abrar forwarded. Abrar noted that the BMCC will continue to provide platforms for Malaysian and UK businesses to do trade and investments via the provision of business to business (B2B) and business to government (B2G) connectivity, to provide economic opportunities to both sides of the aisle. Following the Covid-19 pandemic, Abrar noted that the BMCC is now more well-equipped in providing its services, as he noted that the chamber has learned to efficiently adapt and act as a platform of intermediation in a more deftly manner. “But of course, Malaysia has this fundamental strength of remaining robust during this period with some advantages in the commodity space, plus very good performance in the export of electronics and electrical space.  “So going forward, there will be competition for capital: see emerging markets, everyone is looking for capital; everyone is trying to sell and market their goods or bring tourists, whatever is a mainstay of each economy. “So the way we want to remain relevant in the future is to ensure that we are able to provide the necessary services [to those] who are trying to enter Malaysia as investors, [or] doing trade, and also facilitate their face to face interaction to connect with the relevant stakeholders over in Malaysia,” he said.

https://theedgemalaysia.com/node/654294

Willowglen bags contract in Singapore worth RM11.9m

English

KUALA LUMPUR (Feb 7): Willowglen MSC Bhd has bagged an RM11.92 million contract from SP PowerAssets Ltd in Singapore for comprehensive maintenance of a fence intrusion detection system. In a bourse filing, Willowglen said the contract was awarded to its wholly-owned subsidiary, Willowglen Services Pte Ltd. The commencement date of the contract is Monday (Feb 7) and will end on April 6, 2028. The contract is expected to contribute positively to the group’s earnings and net assets per share for the financial years ending Dec 31, 2023 (FY2023) to 2028. Willowglen's shares price rose 0.5 sen or 1.28% to close at 39.5 sen, giving it a market capitalisation of RM196 million.

https://theedgemalaysia.com/node/656549

MBSB’s 4Q profit up by 2.6 times on absence of net modification loss following end of moratorium

English

KUALA LUMPUR (Feb 23): Malaysia Building Society Bhd’s (MBSB) net profit surged by 2.6 times to RM200.72 million in the fourth quarter ended Dec 31, 2022 (4QFY2022), compared with RM76.45 million a year earlier, due to an absence of net loss on modification of cash flows following the end of the moratorium period. In 4QFY2021, MBSB incurred RM115.05 million in net modification loss, the company’s filing to Bursa Malaysia showed. Quarterly revenue improved 11.8% to RM668.02 million from RM597.73 million in 4QFY2021. For the full financial year, the group’s net profit rose 4.9% to RM460.19 million from RM438.70 million in FY2021, helped by a lower modification loss following the end of moratorium under the repayment assistance programme. Full-year revenue rose by a marginal 0.7% to RM2.64 billion from RM2.62 billion in FY2021. MBSB’s deposits advanced to RM36.5 billion in FY2022 against RM33.3 billion in the previous year, mainly contributed by current accounts and savings accounts (CASA) from retail customers. CASA ratio grew to an estimated 6.2% in FY2022. “Our financing segment grew by 6.6% in FY2022 which is the highest since 2018, driven by corporate financing at 19.7% and property financing at 14.8%,” said MBSB chief executive officer Datuk Nor Azam M Taib in a statement. “This was the highest profit after tax we have achieved in three years which signals the efficacy of the group’s strategic business plan. We aim to grow our financing by 7%-8% this year as the financial sector benefits from the current domestic economic landscape,” he said. MBSB’s total assets stood at RM54.95 billion at the end of FY2022, up 8.42% against RM50.68 billion in FY2021 due to the increase in financing. On the outlook for FY2023, the financial group said its business strategy will be centred on enhancing its core business in the retail segment, and targeting large, premium corporates to provide the bank with financing growth. “The group is pursuing a four-pronged strategy to grow its financing by 7%-8% by the end of the year. The strategy includes plans to increase market share in corporate and property financing, expand its footing in SME (small and medium enterprise) financing, particularly amongst businesses involving agriculture and food manufacturing as well as prioritising its CASA-i to fund the financing growth,” he added. MBSB shares closed 0.83% or half sen lower at 60 sen, giving the group a market capitalisation of RM4.27 billion.

https://theedgemalaysia.com/node/672557

My Say: Policymaking and its continuous genesis

English

This article first appeared in Forum, The Edge Malaysia Weekly on June 26, 2023 - July 2, 2023 One typically wonders how national policies are made. Quite simply, most policies are made in response to a problem; one that hurts the rakyat gets the most immediacy in its formulation and implementation. Some problems, however, are complex and not easily pinpointed. At times, one just “knows” that an unfolding event will hurt, but when the relevant data is checked and examined, there appears nothing of the sort happening impact-wise. How does one argue with that? This is where think tanks and independent research institutions can play a defining role. Let us take, for example, the question of whether the fall of the ringgit against the US dollar will actually spur price increases in Malaysia. Intuitively, we all “know” that the answer is “yes”, that imported goods, for example, will cost more. The questions are, by how much more, when, for how long and whether it will spur a total inflation problem. An instance that I would bring out concerns my company’s own operating costs, albeit a small one. Between Jan 22 this year and May 22, the ringgit fell 5.4% against the euro; consequently, a digital service that I pay €14 a month for rose 5.5% in ringgit terms! So, no doubt, there are consequences. As for when and if prices will come down with, say, the re-strengthening of the ringgit against the US dollar (or any other currency), one can rely on the old economic rule of thumb, “prices are sticky downwards”, meaning, one, don’t hold your breath (you’ll turn blue before it happens) and, two, upward price changes tend to be rather permanent. This stuff is serious. So, let’s see how it works. The question as to whether a fall of the ringgit against the US dollar causes inflation as a whole in Malaysia to rise was examined in 2016 by Bank Negara Malaysia. The ringgit, in 2015, fell 18.7% against the US dollar. In an article titled “The Impact of Exchange Rate Depreciation on Inflation in Malaysia” and published in its 2015 annual report, Bank Negara researchers concluded that “experience in the past two decades, however, has shown that episodes of persistent exchange rate depreciation may not always result in significantly higher inflation”. Further, in examining the exchange rate pass through (ERPT), its formal name, the researchers concluded that: 1.     ERPT to core inflation is low; 2.     Analysis of disaggregated Consumer Price Index (CPI) data shows no positive relationship between import content and sensitivity to the exchange rate; 3.     Analysis of stage of processing using disaggregated Producer Price Index (PPI) data suggests that ERPT via the indirect channel is also low and incomplete; 4.     Exchange rate appreciation and depreciation have an asymmetric effect on inflation; and 5.     There is a lack of robust evidence to suggest threshold effects (that is, exchange rates must fall by a certain amount before they hit inflation) between exchange rate depreciation and inflation. We are still mystified as to why, in explaining Point 2 above, the researchers noted that, for ERPT calculations for the CPI basket, a 10% depreciation of the exchange rate is associated with a 3% higher inflation at the peak, and that was headlined as having “no positive relationship”. A key reason for such was stated as the prevalence of price controls; they noted, however, that contrary to Point 5 above, during the Asian financial crisis of 1997/98, large movements of the exchange rate did trigger inflationary rises. Policy-wise, of course, nothing was done to curb imported inflation based on this research report. Needless to say, that set off howls of protest among intellectuals and research houses. Our own research paper, “Time for a New Foreign Exchange Regime, Malaysia” on Feb 28, 2018, as published on our website, noted that the data readings for that Bank Negara paper were very short term. Consequently, conclusions made in 2016 for currency depreciations in 2015 (that is, only one year) did not take into account lags in the economy, such as inventory replacement lags that would have captured the higher prices, which could take more than a year (see chart). From 2004, it is obvious that the CPI tended to react to changes in the RM/USD rate with a lag of around three years per cycle; this would exhibit a possibility that primary, secondary and tertiary effects to movements in exchange rates take that amount of time to show up in CPI numbers. Further research showed that Malaysia, as a small open economy, needs to set its interest rates at the “world” interest rate, herein meaning the world’s largest economies, the US or our small country will suffer massive outflows of capital (when its interest rates are lower than the world’s), according to the Mundell-Fleming Model. Lastly, research by Klein & Shambaugh of the US National Bureau of Economic Research (NBER) showed in their book, Exchange Rate Regimes in the Modern Era (2010, MIT Press), that the choice of exchange rate regime has no distributional (that is, welfare or standard of living) effects whatsoever. Thus, taking no action in the hopes of keeping economic growth going, or hoping that nothing will happen when nothing is done, is entirely fallacious. Thus, the calls for stronger policy examination were very strong indeed. Then, in 2022 and 2023, the ringgit became volatile again, owing mainly to countries fighting inflation using their interest rates (remember the “world interest rate” argument above), and this set off another period of examining imported inflation. Bank Negara revisited the topic in the 2022 Economic and Monetary Review, in an article called, “Revisiting Exchange Rate Pass Through to Inflation in Malaysia”. It acknowledges that there are ERPT effects and they are significant in food and beverages, items that directly affect the rakyat. Elsewhere in the report is a quantification that a 5% change in the ringgit would lead to a 0.2% change in core inflation over a year (as opposed to 2016 when it was deemed negligible). Further, import price inflation would rise 2.1% with a 5% ringgit depreciation over a year, according to the report. No quantification was made for overall inflation, nor what the rate of inflation would be over the next three years or so as the inventory replacement cycle kicks in. The report further noted that greater research is needed to fully understand the phenomenon. It notes that monetary policy is the foremost available tool to manage this damaging action. This usually means using interest rates. A step in the right direction, at least. Policy change is now called for, with the requisite rationale and research present. What will we see? More aggressive monetary policy? Or will we change our stance from the current interest rate-focused monetary policies to foreign exchange rates policies such as those of Singapore? What would be its target? An inflation target of 2% like that of the world’s advanced economies? Nonetheless, the great aim, as always, would be to improve the standards of living for the rakyat. Huzaime Hamid is chairman and CEO of Ingenium Advisors, Malaysia’s financial macroeconomics advisory 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/613469

Cypark bags KL road upgrading contract worth RM74m

English

KUALA LUMPUR (March 24): Cypark Resources Bhd has bagged a RM74.3 million contract to undertake road upgrading and associated works along Jalan Dutamas 2 here. In a bourse filing, Cypark said the project, awarded by TTDI KL Metropolis Sdn Bhd, is scheduled to be completed by Nov 22, 2023. “The project is expected to contribute positively to the earnings and net assets of the group,” it added. At market close, Cypark shares were one sen or 1.2% lower at 83 sen, valuing the group at RM495.06 million.

https://theedgemalaysia.com/node/619230

Bargain hunting pushes Bursa Malaysia to end mixed, KLCI up marginally

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KUALA LUMPUR (May 10): Bursa Malaysia ended mixed on Tuesday (May 10) with the FTSE Bursa Malaysia KLCI (FBM KLCI) snapping three consecutive days of losses to rise by 0.35%, as bargain hunting emerged in telecommunications and banking heavyweights, a dealer said. On the broader market, however, losers thumped gainers 640 to 331, while 444 counters were unchanged, 828 untraded, and 14 others suspended. At 5pm, the barometer index rose 5.4 points to 1,554.58 from Monday’s close of 1,549.18. The benchmark index, which opened 2.37 points higher at 1,551.55, moved between 1,548.73 and 1,559.04 throughout the day. Total turnover declined to 2.75 billion units worth RM2.25 billion from 3.22 billion units worth RM2.03 billion on Monday. Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said investors remained in cautious mode with most regional key indices ending in the negative territory as sentiment was affected by the sharp decline on Wall Street overnight. "As for the local bourse, we believe investors will continue to bargain hunt for stocks at reduced levels following the recent selldown, despite the volatility in regional markets. "We anticipate the FBM KLCI to move within the 1,545-1,560 range for the remainder of the week with immediate support at 1,545, followed by 1,530, and resistance at 1,580," he told Bernama. Among the heavyweights, Malayan Banking Bhd was flat at RM9, Public Bank Bhd gained eight sen to RM4.64, IHH Healthcare Bhd rose seven sen to RM6.43, while Petronas Chemicals Group Bhd lost 11 sen to RM9.89, and CIMB Group Holdings Bhd eased two sen to RM5.08. Of the actives, Serba Dinamik Holdings Bhd erased 3.5 sen to 7.5 sen, Hibiscus Petroleum Bhd slid two sen to RM1.35, both Dagang NeXchange Bhd and Widad Group Bhd were flat at RM1 and 36 sen, respectively, and Ta Win Holdings Bhd inched up half-a-sen to 13.5 sen. Across the index board, the FBM 70 advanced 76.63 points to 13,301.18, the FBM Emas Index added 26.85 points to 11,110.46, the FBMT 100 Index expanded 43.19 points to 10,787.49, and the FBM Emas Shariah Index climbed 20.57 points to 11,548.54, while the FBM ACE shed 9.93 points to 5,373.08,  Sector-wise, the Financial Services Index improved 52.4 points to 16,660.44, while the Industrial Products and Services Index was 3.03 points lower at 197.16, and the Plantation Index gave up 105.33 points to 8,146.1. The Main Market volume declined to 1.98 billion shares worth RM2.08 billion from 2.4 billion shares worth RM1.9 billion on Monday. Warrants turnover improved to 352.23 million units valued at RM61.16 million from 207.99 million units valued at RM21.89 million on Monday. The ACE Market volume shrank to 415.82 million shares worth RM113.96 million versus 613.79 million shares worth RM107.08 million previously. Consumer products and services counters accounted for 274.11 million shares traded on the Main Market, industrial products and services (409.23 million), construction (148.77 million), technology (161.85 million), SPAC (nil), financial services (81.72 million), property (112.89 million), plantation (82.67 million), REITs (10.88 million), closed/fund (15,400), energy (592.07 million), healthcare (33.27 million), telecommunications and media (26.45 million), transportation and logistics (24.88 million), and utilities (16.66 million).

https://theedgemalaysia.com/node/611906

大马研究：产业领域将逐步复苏 但面临滞胀风险

Mandarin

（吉隆坡15日讯）大马研究维持产业领域的“中和”评级，因认为该行业将逐步复苏，但面临滞胀风险。 该研究机构今日在报告中指出，由于俄罗斯-乌克兰冲突，在长期供应链受扰的情况下推高了全球大宗商品价格，滞胀的可能性加大。 “这可能会抑制住房需求，同时提高建筑成本并压缩开发盈利赚幅。” 该机构还说，谨慎的观点也是由于银行在住宅产业贷款仍持谨慎态度，这反映在35%的低贷款申请/批准率，相比2011至2014年上升周期的51至53%。 惟大马研究表示，其研究的发展商在去年出现一些令人鼓舞的迹象，包括在黄金地带的购地活动，以及2022年度财政预算案公布第六年起售屋豁免产业盈利税（RPGT）。 该机构称，其研究的7家公司在2021财政年第四季表现参差不齐，其中2家符合预期、3家低于预期，以及2家超越预期。 除了UEM阳光（UEM Sunrise Bhd），大多数发展商2021财年转亏为盈，在国家复苏计划限制措施于末季放宽后，净利有所改善。 大马研究指出，归功于居者有其屋（HOC）、数字营销措施和新项目推出，其研究的发展商新销售按年增长37%。 “大多数发展商为2022财年设定保守的销售目标，低于2021财年实际销售，这可能由于HOC结束。” 然而，该机构表示，专注于可负担房屋发展的马星集团（Mah Sing Group Bhd）和Lagenda Properties Bhd设定更高的销售目标，寄望这市场的被压抑需求。 “展望未来，我们预计产业交易将逐渐回升，尤其是住宅领域，因国际边境将于4月1日重开，以及国际贸易和旅游恢复，尽管大马第二家园计划的标准更严格，但发展项目相对区域可负担。” 该机构补充，俄乌冲突带来的地缘政治风险可能会加剧通胀和衰退担忧，导致在失业率上升的情况下，可支配收入可能下降。 “在当前不确定的环境，潜在购屋者可能会采取观望态度，这可能会抑制住宅需求，并导致房价停滞。” 同时，根据大马研究内部预测，国家银行预计将在2022年下半年上调隔夜政策利率（OPR）一到两次，每次25个基点，以维持美国和大马之间的利率差异在175至225个基点左右。 “潜在加息可能对消费者情绪和购买力产生负面影响，从而抑制产业整体需求。” “尽管如此，我们认为影响是可控的，因为与新冠疫情之前水平相比，利率可能会维持在较低水平。” 大马研究指出，其首选股是双威产业（Sunway Property Bhd），目标价2.27令吉，因高度成功的标志性发展和不断壮大的医疗保健业务，建立了强大的品牌知名度，并有大量未入账销售和未完成订单。   （编译：陈慧珊）   English version：AmResearch sees gradual recovery in property sector with risk of stagflation

https://theedgemalaysia.com/node/651107

Anwar gives Hajiji his blessings to remain as Sabah chief minister

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KOTA KINABALU (Jan 9): Prime Minister Datuk Seri Anwar Ibrahim has given his blessings to Datuk Seri Hajiji Noor to remain as Sabah chief minister. Anwar said he also wants the Sabah government to remain strong under Hajiji’s leadership.  “We will give room to the chief minister (Hajiji) to hold discussions and find the best formula for the good of Sabah,” Anwar said. He was speaking to reporters after a 40-minute discussion with Hajiji and representatives of the state government bloc at the chief minister’s official residence in Sri Gaya here on Monday (Jan 9) night.  Also present was Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Anwar thanked Hajiji and all Sabah elected representatives present at the meeting for their views, which he said were for the good of the state. On Friday, Sabah Barisan Nasional (BN) chief Datuk Seri Bung Moktar Radin announced that Sabah Umno and BN were withdrawing support for Hajiji, as they had lost confidence in the latter’s position as chief minister and that there was a breach of an agreement between BN and Perikatan Nasional (PN). Anwar went on to say that the Sabah government had an important agenda to pursue, namely the bill to hand over the power to regulate gas supply in the Sabah Legislative Assembly, in an effort to restore the state’s rights. “An important bill (will be tabled) to restore Sabah’s rights, which I presented to the Cabinet; this is a big change and to me, a priority,” he said. On Dec 21 last year, Anwar announced that the federal government had agreed to hand over the gas supply regulatory power in Sabah to the state government and that the matter was agreed upon as part of the federal government’s effort to honour the Malaysia Agreement 1963 (MA63).

https://theedgemalaysia.com/node/606941

明试控股与中国伙伴洽商 向联营公司注资

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（吉隆坡10日讯）明试控股（Aemulus Holdings Bhd）探讨向唐明盛世（Tangming Shengshi Technology）注入资金，后者从事半导体设备的开发和销售，并提供设计咨询服务。 明试控股于2020年，与中国科技公司唐人制造（嘉善）有限公司（Tangren Microtelligence Technology (Jiashan) Co Ltd）达成协议，以40:60比例成立联营公司，进军中国市场。 该集团今日向大马交易所报备，独资子公司Aemulus Corp私人有限公司已与唐人制造签署谅解备忘录（MoU），讨论有关向唐明盛世注资的事宜。 “明试控股和唐人制造同意在3个月内，分别以40%和60%的比例向唐明盛世注资。” 根据明试控股，这项MoU标志双方向唐明盛世的意向，因此没有合约价值。 “注资金额将由双方决定。” 该集团补充，MoU预计不会对截至9月杪2022财政年的盈利、净资产和负债产生实质影响。 “但若成事，料对集团未来收益作出贡献。” 明试控股执行董事兼总执行长及大股东伍尚明也是唐明盛世的董事。他是被明试控股提名，代表该集团的权益，入驻唐明盛世董事部。 闭市时，该股跌1.5仙或1.52%，收于97.5仙，市值报6亿4749万令吉。   （编译：陈慧珊）   English version：Aemulus in talks with China partner to inject capital into JV

https://theedgemalaysia.com/node/645348

首季净利跌35.5% 马太平洋派息10仙

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（吉隆坡23日讯）由于亚洲消费电子市场需求下降，拖累马太平洋（Malaysian Pacific Industries Bhd）首季净利按年下跌35.5%，惟被美元兑令吉汇率升值部分抵销。 这家半导体公司向大马交易所报备，截至9月杪2023财政年首季净利为5270万令吉，或每股26.5仙，低于上财年同期8168万令吉，或每股41.17仙。 首季营业额也从5亿8453万令吉，下滑3.5%至5亿6402万令吉。 尽管季度业绩疲弱，但该集团宣布派发每股10仙的中期股息，将于12月21日支付。 展望2023财年，马太平洋预计，由于消费电子市场疲软和宏观经济不确定性，营商环境仍将充满挑战。 “集团将专注于商业策略与营运效率，以确保可持续性，并加强开展业务的基本面。” “尽管近期存在不确定性，但长期策略保持不变。我们继续在中国和马来西亚进行策略设施扩张。截至2023财年首季，我们的净现金头寸为8亿4040万令吉。” 闭市时，马太平洋扬80仙或2.99%，收报27.60令吉，市值达57亿9000万令吉。今年来则挫跌了44.24%。   （编译：陈慧珊）   English version：Malaysian Pacific Industries sees consumer electronics market softening in FY2023, declares 10 sen dividend

https://theedgemalaysia.com/node/638037

Maybank says to fully migrate from SMS OTP to Secure2u

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KUALA LUMPUR (Sept 28): Malayan Banking Bhd (Maybank) said on Wednesday (Sept 28) that it will fully migrate to a more secure authentication method via Secure2u by June 2023, from SMS one-time password (OTP), to heighten online banking security. This is in line with Bank Negara Malaysia’s steer for banks to migrate from SMS OTP to a more secure authentication for online banking transactions, Maybank said in a statement. “Currently, Maybank only allows one Secure2u device per account holder (per customer) to minimise the possibility of a customer’s online banking details being compromised or used by any third party. “As an added security measure, Maybank alerts a customer via SMS, a push notification and an email when Secure2u is registered on a new device,” Maybank said. At Bursa Malaysia on Wednesday, Maybank’s share price dipped one sen or 0.12% at 3:43pm to RM8.56, for a market capitalisation of about RM102.55 billion. Maybank’s latest-reported number of outstanding shares stood at 11.98 billion, according to Maybank’s Bursa filing on Tuesday (Sept 27).

https://theedgemalaysia.com/node/642622

Highest Returns to Shareholders over three years: Construction: Gamuda Bhd - Fortunes lifted by MRT2 and property sales

English

This article first appeared in The Edge Malaysia Weekly on November 7, 2022 - November 13, 2022 Many in the construction industry were hit by the economic contraction over the last two years due to the Covid-19 pandemic. Gamuda Bhd, however, was bolstered by large infrastructure projects such as the MRT Putrajaya Line (MRT2). If the RM16.5 billion allocation under Budget 2023 for the continuation of key infrastructure projects and the government’s appetite for large-scale infrastructure projects are any indication, Gamuda’s shareholders can expect the stellar performance to continue. Over the last three years, Gamuda’s share price has increased from RM2.74 per share on March 29, 2019, to RM3.46 per share on March 31, 2022. That brings shareholder returns over the awards review period to a compound annual growth rate (CAGR) of 8.2%, making the company the winner of this year’s The Edge Billion Ringgit Club award for the highest returns to shareholders over three years in the construction sector. Gamuda’s share price has since risen, reaching as high as RM4.06 in September this year before giving up some gains in October. On Oct 25, the counter closed at RM3.83, valuing the group at RM9.92 billion. In its financial results announcement for the quarter and year ended July 31, 2022 (FY2022), Gamuda says the revival of public-private partnerships may provide some momentum to public spending and stimulus for infrastructure development. Coupled with its international contracts, the momentum in public infrastructure spending is expected to benefit Gamuda in the short and medium term. “It is anticipated that next year’s performance will be driven by property sales; the pickup in work progress of the Sydney Metro West — Western Tunnelling Package and Coffs Harbour Bypass projects in Australia; and work to complete the MRT Putrajaya Line. “Moving forward, the resilience of the group is underpinned by its large construction order book of nearly RM14 billion and unbilled property sales of RM6.2 billion,” says Gamuda, commenting on its prospects for the current financial year ending July 31, 2023 (FY2023). On top of that, its healthy balance sheet with net gearing of 0.1 times will turn net cash positive once the sale of four highway concessionaires (in which Gamuda is a significant shareholder) is completed. At the time of writing, this was expected to happen by end-October. In FY2022, Gamuda recorded a net profit of RM806.23 million, compared with RM588.32 million in FY2021, a jump of 37% year on year on the back of stronger construction and property earnings as work on all fronts continued to pick up pace. Overseas earnings tripled to RM292 million compared with FY2021 earnings of RM98 million, as the group continued to expand its footprint to broaden its international market reach, the group states in its FY2022 results announcement. “It was a record-breaking year for the property division with all-time-high performances in sales, revenue and earnings,” it adds. The property division sold a record high RM4 billion worth of properties in FY2022, a 40% jump from RM2.9 billion the year before. Local property sales doubled to RM2 billion as overseas projects contributed to another RM2 billion in sales. Property revenue reached an all-time high of RM2.7 billion in FY2022, a 111% jump from RM1.3 billion the prior year, while property earnings reached an all-time high of RM340 million, a 97% jump from RM172 million in FY2021. MIDF Research has a “buy” call on Gamuda with a higher target price of RM4.71 per share, compared with the pre-FY2022 results target price of RM4.02 per share. The counter is the research house’s top pick for the construction sector, premised on its effective diversification strategy out of Malaysia. “This (having a diversified market) also shields Gamuda from being too overly exposed to the ups and downs of the construction sector cycle in Malaysia, though it is one that we have a positive call on, with the impending rollout of the MRT3 breathing new life into the sector. “We are positive on management’s focus to secure RM9 billion in jobs in Australia annually. With its current portfolio, we believe Gamuda is in a good position to bid for more jobs Down Under, which is now going through an infrastructure boom period,” MIDF Research says in a Sept 30 note. At press time, Maybank Investment Bank had a “buy” call with a RM4.40 target price, CGS-CIMB had an “add” recommendation with a target price of RM4.75, while Kenanga Research had an “outperform” call with a RM5.15 target price. 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/639392

GLIC chiefs hail inclusive Budget 2023

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KUALA LUMPUR (Oct 7): Chiefs of government-linked investment companies (GLICs) have welcomed Budget 2023 which entails the government continuing its spending spree with total expenditure of RM372.3 billion. Presenting the Budget in Parliament on Friday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said it would ensure the well-being of the people, business continuity, economic prosperity and the efficiency of government services. Below are excerpts of comments by GLIC leaders on Budget 2023: Datuk Amirul Feisal Wan Zahir Managing director of Khazanah Nasional Bhd The Budget has been in line with the focus of the Ministry of Finance to be responsive to the short-term needs of people and businesses, and also on being responsible and reformist in building resilience. It forms a comprehensive policy package towards reinforcing Malaysia’s economic recovery, strengthening Malaysia’s overall resilience against future storms, advancing the agenda of inclusive and sustainable development, as well as implementing serious reforms for the nation to thrive in the new global environment. Khazanah and our investee companies are excited to play our part in delivering the various initiatives within Budget 2023. Tenaga Nasional Bhd will pilot rural internet projects benefiting more than 60,000 rural residents as well as drive the clean energy transition through investing RM165 million in rooftop solar and EV charging infrastructure until 2025. As part of Khazanah’s Advancing Malaysia agenda, Dana Impak is on course to help increase Malaysia’s economic competitiveness and national resilience. Dana Impak will allocate RM1 billion for strategic investments for the nation across its six themes. Of this, RM230 million has been identified for digitalisation and technology, focusing on building up the domestic start-up ecosystem and talent pool, RM200 million for investments in projects which seek to increase agrifood smallholders’ productivity and income, and RM150 million for supporting the development of nature-based solutions for Malaysia’s carbon markets ecosystem. Taking an ecosystems-based approach, Khazanah will continue to seek and implement projects along the six Dana Impak themes, namely, Digital Society and Technology, Quality Health and Education for All, Decent Work and Social Mobility, Food and Energy Security, Building Climate Resilience and Competing in Global Markets. We believe this requires an all-of-Malaysia approach, and welcome partners as well as collaborators with shared goals. Overall, Budget 2023 is another crucial step forward in Malaysia’s journey towards growing a competitive, inclusive and sustainable economy. While global conditions remain challenging, Budget 2023 promises to steer us on the right course towards a more positive future, in tandem with Khazanah’s overall long-term strategy of Advancing Malaysia. Nik Amlizan Mohamed Chief executive officer of Kumpulan Wang Persaraan (Diperbadankan) (KWAP) KWAP along with fellow GLICs and GLCs will be investing up to RM50 billion in 2023. We are particularly keen on ensuring that our investee companies are fully environmental, social and corporate governance (ESG)-compliant and focused on carbon-neutral operations. We can only have sustainable economic growth if we have food security, particularly a Malaysia-owned food security strategy. The Government’s initiative to highlight food security as one of the focus areas for this year’s Budget is indeed timely. The fact that RM1 billion has been allocated for the Central Bank to drive its Malaysia Agrofood Financing Scheme focused on facilitating productivity improvement for entrepreneurs, augurs well for the future of Malaysia’s food security. KWAP is also focused on impact investing in the area of food security as it will have direct positive spillover benefits for Malaysians as well as the nation’s sustainable development. The Budget also champions the importance of women in Malaysia’s workforce. To this end, we are pleased to note that the contribution of women is being recognised through a five-year tax exemption for those returning to work after a career break. Datuk Seri Amrin Awaluddin Managing director and CEO of Lembaga Tabung Haji (TH) It is a comprehensive Budget aimed at assisting Keluarga Malaysia. GLCs and GLICs will continue to support the government's efforts and strive to work together in strengthening the country's economic resilience amid external uncertainties. TH will also continue with the targeted Haj Financial Assistance, funded from its investment income, to all Muassasah pilgrims although the cost of Haj is expected to rise to about RM31,000 per person next year compared with RM28,632 this year. Get our comprehensive coverage of Budget 2023 here.

https://theedgemalaysia.com/node/660687

Metrod declares six sen dividend, payable on Aug 25

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KUALA LUMPUR (March 24): Copper rod producer Metrod Holdings Bhd declared a final dividend of six sen per share for the year ended Dec 31, 2022 (FY2022) that will be paid on Aug 25. The ex-date falls on July 27 and the entitlement date is July 28, according to its bourse filing on Friday. The group's annual net profit for FY2022 about doubled to RM17.04 million from RM8.64 million in FY2021, as revenue grew 18.16% to RM4.15 billion from RM3.51 billion. In releasing its FY2022 results in end-February, Metrod said credit, commercial and security risks are expected to remain high due to volatile copper prices and currency and the uncertainties surrounding weak economic sentiment and forecasts. “LME [London Metal Exchange] copper prices continue to remain at high levels resulting in significant increase in working capital funding requirements,” it said, adding it continues to manage the copper and exchange exposure due to its hedging policies. Metrod also said the operating results of the group’s hospitality segment for the full year ahead would be impacted by a partial shutdown due to renovation, which will take place from April to September this year. Hence, Metrod is optimising its working capital cycle while working with banks to secure additional financing. “Despite all the above challenges and headwinds, the group continues with its efforts to optimise cost, improve operational efficiencies and internal processes to mitigate the impact of these challenges,” it concluded. Shares of Metrod closed unchanged at RM1.25 on Friday, translating into a market capitalisation of RM150 million.

https://theedgemalaysia.com/node/630784

Global investment in RE hit US$226 billion in 1H2022, says BNEF

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KUALA LUMPUR (Aug 3): Global investment in renewable energy (RE) totalled US$226 billion in the first half of 2022 (1H2022), setting a new record for the first six months of a year. In a statement on Tuesday (Aug 2), research company BloombergNEF (BNEF) said the uptick in investment reflects an acceleration in demand for clean energy supplies to tackle the ongoing global energy and climate crises. In its Renewable Energy Investment Tracker 2H 2022, BNEF said investment in new large- and small-scale solar projects rose to a record-breaking US$120 billion, up 33% from 1H2021. It said wind project financing was up 16% year-on-year at US$84 billion. The firm said both sectors have been challenged recently by rising input costs for key materials such as steel and polysilicon, as well as supply chain disruptions and rising financing costs. However, it said the figures indicate that investor appetite is stronger than ever, in part due to the very high energy prices currently being seen in many markets around the world. BNEF said one category that saw falling investment was public equity issuances. It said that after a very strong 1H2021, public market issuances for RE companies dropped 65% in 1H2022, totalling US$10.5 billion. It said the second quarter figure, at US$3.9 billion raised, is the lowest quarterly total since the second quarter of 2020. BNEF head of analysis Albert Cheung said policy makers are increasingly recognising that RE is the key to unlocking energy security goals and reducing dependence on volatile energy commodities. “Despite the headwinds presented by ongoing cost inflation and supply chain challenges, demand for clean energy sources has never been higher, and we expect that the global energy crisis will continue to act as an accelerant for the clean energy transition,” he said. BNEF said China posted remarkable investment growth in both wind and solar project finance. It said the country’s large-scale solar investments totalled US$41 billion in 1H2022, up 173% from the year before. It also invested US$58 billion in new wind projects, up 107% year-on-year. BNEF’s head of China analysis Nannan Kou said green infrastructure is the most important investment area that China is relying on to boost its weak economy in 2H2022. “The investment growth trend follows China’s strategy to build new renewable generation capacity so that it can replace its existing coal fleet. “China is well on track to hit its 1,200 gigawatt wind and solar capacity target by 2030,” said Kou. BNEF said offshore wind was another sector that saw a stark increase, with investment up 52% to US$32 billion from the previous year. Offshore wind analyst at BNEF, Chelsea Jean-Michel, said investments in 2022 will flow into projects coming online in the next few years as the offshore wind installed base is set to grow tenfold from 53GW in 2021 to 504GW in 2035. “Offshore wind projects enable companies and governments to make progress towards their decarbonisation goals at scale. “The United Kingdom, France and Germany are just a few of the countries that have increased their offshore wind targets in the first half of 2022, signalling further support for investment in the technology,” she said.

https://theedgemalaysia.com/node/668732

TNB inks three MOUs in Vietnam and Laos to explore collaboration in RE power generation

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KUALA LUMPUR (May 26): Tenaga Nasional Bhd (TNB) has inked three Memoranda of Understanding (MoUs) with the major energy players in Vietnam and Laos to explore potential collaboration in renewable energy (RE) power generation.   In a statement, the utility giant said the collaborations are set to accelerate regional decarbonisation efforts and cater to the increasing demand for cleaner, sustainable energy options, besides strengthening the Asean Power Grid interconnectivity and advancing Malaysia’s aspiration of becoming the RE hub for the Asean region. The two MOUs signed in Vietnam were between TNB Renewables Sdn Bhd  and Saigon Gia Dinh Electric Joint Stock Company and between TNB Repair and Maintenance Sdn Bhd and North Power Service Joint Stock Company. Meanwhile, the MOU in Laos was signed between TNB Genco and Electricite Du Laos. “Our commitment in promoting RE and creating a sustainable future for Southeast Asia is unwavering. By combining our strengths and expertise, we will unlock the vast RE potential in Vietnam and Laos, driving economic growth and the broader energy transition,” said TNB president and chief executive officer Datuk Indera Ir Baharin Din. TNB's share price closed up 11 sen or 1.15% at RM9.69 on Friday (May 26) with some 3.94 million shares changing hands. The group's market capitalisation stood at RM55.75 billion.

https://theedgemalaysia.com/node/647239

The Week Ahead: Trial to forfeit seized luxury items belonging to Najib and Rosmah, regional PMI data and monetary policy decisions in focus

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This article first appeared in The Edge Malaysia Weekly on September 26, 2022 - October 2, 2022 Three events will make for a busy week in the local courts, with the 1Malaysia Development Bhd-Tanore trial back on the schedule, in addition to the hearing of the prosecution’s application to forfeit hundreds of luxury items allegedly linked to the 1MDB scandal. The 1MDB-Tanore trial will resume on Monday after it had to be vacated last week as former prime minister Datuk Seri Najib Razak, who is charged with four counts of abuse of power in enriching himself with RM2.3 billion of 1MDB funds and 21 counts of money laundering of the same amount, was hospitalised. Najib could face a fine and up to 20 years’ imprisonment if convicted. He is currently serving a 12-year prison sentence for misappropriating RM42 million of SRC International Sdn Bhd funds. The Kuala Lumpur High Court is also set to hear the prosecution’s application to forfeit luxury items seized from Najib, his wife Datin Seri Rosmah Mansor, their children and five other respondents on Monday and Tuesday. In 2019, the prosecution filed a forfeiture application to seize various items, including 11,991 pieces of jewellery, 401 wristwatches, 16 watch accessories, 234 pairs of spectacles and 306 handbags, as well as cash in various denominations amounting to RM114.16 million. However, in June, Rosmah relinquished her claim to a US$220,000 white gold diamond bracelet, which is now kept in Bank Negara Malaysia’s vaults. Over at the KL Sessions Court, the hearing of former Penang chief minister Lim Guan Eng’s Penang undersea tunnel graft trial will resume on Thursday. The defence will continue with its cross-examination of Consortium Zenith Construction Sdn Bhd senior executive director Datuk Zarul Ahmad Mohd Zulkifli. Lim is accused of using his position to solicit a 10% cut of the project’s profit from Zarul, in return for aiding the businessman’s company to secure the project. He is also accused of accepting RM3.3 million in bribes from Zarul. In contrast, it will be a quiet week ahead on the economic data front for Malaysia. However, the same can’t be said for other Asian economies. Japan, South Korea and Singapore will release their August industrial production data this week, which will give an indication of manufacturing activity in Asia. According to ING senior economist for South Korea and Japan Kang Min Joo, Singapore is expected to see a modest monthly decline in its Industrial Production Index (IPI) as the manufacturing Purchasing Managers’ Index (PMI) fell in August. “However, as the material shortage situation has improved since June, the magnitude of the decline should be smaller than in the previous month,” she said in a report last Thursday. UOB Global Economics and Markets Research estimates that Singapore’s IPI declined 3% year on year in August, after growing 0.6% y-o-y in July. Japan’s industrial production in August is expected to take a breather and decline moderately after a strong gain over the past two months, says Kang. Meanwhile, South Korea’s industrial production is expected to contract more intensely on the back of weak output from automobiles and IT/semiconductors, she adds. This week, China’s September official manufacturing and services PMI will be released. ING’s Kang says China’s PMI is expected to follow the declining trajectory of the previous months. “The worrying amount of Covid-19 cases in China led to the tightening of measures in multiple cities, including in the tech hub of Shenzhen, as well as a weeks-long lockdown in Chengdu. This could contribute to falls in orders, employment and business confidence, leading to the Caixin Manufacturing PMI and China’s National Bureau of Statistics non-manufacturing PMI falling for the fourth straight month,” she adds. “The impact of the economy might be cushioned for large-scale and state-owned firms surveyed in the NBS manufacturing PMI as orders and input costs for these companies are stable and business sentiment is less affected, contrary to that of private companies.” In its weekly outlook report last Friday, UOB highlighted two major Asian central banks with monetary policy decisions this week. According to UOB, a further hike by Thailand’s central bank is expected at the next meeting on Wednesday. It expects the Bank of Thailand to raise its key interest rate by another 25 basis points (bps) to 1% and to stay there for the rest of 2022, before possibly resuming hikes in 2023. Meanwhile, ING’s Kang says it is likely that the Reserve Bank of India will hike its key repo rate by 30bps to 5.7% when it meets on Friday. “As inflation rose from 6.7% in July to 7% in August, policymakers should continue to feel the pressure and increase repo rates in an attempt to cool the economy.” Vietnam is likely to be the first economy in Asia to release its gross domestic product data for 3Q2022 this week. UOB estimates that Vietnam’s GDP would have expanded 7.6% y-o-y in the third quarter, from 7.7% y-o-y in the second quarter. Japan will honour former prime minister Shinzo Abe with a rare state funeral on Tuesday, to be attended by local and foreign dignitaries, including US Vice-President Kamala Harris. On the local corporate front, electronics manufacturing services provider Betamek Bhd will launch its prospectus on Wednesday in conjunction with its initial public offering on the ACE Market of Bursa Malaysia. 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.

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Fahmi: RM3.9b allocated for phase two of Point of Presence project

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REMBAU (July 6): The Communications and Digital Ministry (KKD) has allocated RM3.9 billion to continue the implementation of phase two of the Point of Presence (PoP) project, involving 3,693 PoP sites near schools in rural areas throughout the country. Its minister Fahmi Fadzil said the project, which started in December last year to provide high-speed broadband services, would benefit at least 432,300 premises. As for the implementation of phase one, involving some 630 locations, Fahmi said this was expected to be completed by the end of this year. "The high-speed optical fiber broadband infrastructure will help to improve the learning process in schools more effectively through access to a wide range of information and reference sources. “It also gives the community an opportunity to improve their livelihoods via the digital economy by conducting various activities, including home businesses, online with better quality and comprehensive internet network access," he said. He said this in his speech when launching the South Zone Point of Presence (PoP) at Sekolah Menengah Kebangsaan Dato’ Undang Haji Adnan here on Thursday (July 6). Fahmi said the PoP initiative was one of the government's commitments to encouraging the use of digital technology by all levels of society, whether in the city or in rural areas. He said it was also aimed at preparing people with digital skills to bridge the digitalisation gap, as well as empower the country's telecommunications infrastructure, thus meeting the country's needs in driving the digital economy. According to him, the PoP project implemented in locations near rural schools and in interior areas, such as SMK Dato' Undang Haji Adnan, functions as a hub for the provision of fiber optic broadband infrastructure, not only for school use, but also for use by the surrounding industrial areas and government premises. “The surrounding community also has the opportunity to enjoy more stable high-speed broadband services. "The speed of the Internet service provided will also be a benchmark for the use of modern technology related to infrastructure and utilities, including the Internet of Things (IoT), Artificial Intelligence (AI), and Smart Grid which can improve people's quality of life," he added. Meanwhile, he said that a total of 36 locations in Negeri Sembilan, including seven in the Rembau parliamentary constituency, had been equipped with PoP facilities and were ready for subscription as of Wednesday. The PoP facilities are expected to benefit 3,744 premises in Negeri Sembilan, he added. Fahmi called for the cooperation of all parties in helping the country move towards a golden digital decade. "I hope that the telecommunications infrastructure that is provided will be utilised in the best way by the people to improve their standard of living,” he added.

https://theedgemalaysia.com/node/618437

Cover Story: What a weak Ringgit means for Malaysia

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This article first appeared in The Edge Malaysia Weekly on May 2, 2022 - May 8, 2022 MANY in Malaysia watched with sinking hearts last week as the ringgit dropped precipitously against the US dollar to 4.36 — the lowest level in the last two years. The ringgit was not the sole decliner, as other major currencies also depreciated against the greenback. Among Southeast Asian countries, however, the local unit was the hardest hit, down 4.74% since the start of the year. Its depreciation against the Singapore dollar was also steep, hitting 3.17 last week. Year-to-date, the ringgit has fallen 2.76% against the SGD. The drastic decline prompted many to scoop up the ringgit and money changers across the Causeway reported they had run out of the currency. The SGD’s appreciation against the ringgit is due to the increase in its nominal effective exchange rate (NEER). OCBC Bank rate strategist Frances Cheung says because Singapore manages the SGD by a gradual appreciation in the currency’s NEER, it has shown relative resilience. “The SGD outperformed other regional peers, including the [Chinese] renminbi (RMB) and Korean won, over the past week and, as such, is not something specifically pertaining to ringgit characteristics,” says Cheung. As for the weakness against the US dollar, a large part of it is due to the strengthening of the greenback as investors pencilled in a larger quantum of rate hikes this year by the US Federal Reserve, which is expected to raise interest rates, as inflation rose 8.5% in March. Some have also tied the currency’s weakness to the depreciation of the RMB against the greenback, which has come about because of capital outflows and negative yield differentials with the US as China’s economic outlook turns cloudy, given the sudden surge in Covid-19 cases. Malaysia’s strong trade linkages to China is another reason for the ringgit’s weakness, experts say. HSBC Global Research says the ringgit weakness could also have been prompted partly by foreign bond investors selling Malaysian government securities amid the global bond rout as well as negative domestic developments such as large withdrawals from the Employees Provident Fund under a scheme approved by the government to boost consumption. Interestingly, the research house also pointed out that Malaysian residents may have contributed to the ringgit’s decline as onshore foreign exchange deposits climbed in recent months. “Residents’ views on the ringgit were probably negatively affected by broad US dollar strength as well as the RMB’s depreciation — there are a lot of Chinese corporates using Malaysia as a manufacturing hub. Outflows and foreign currency deposit hoarding explain why the ringgit has not really benefitted from a robust trade balance and very strong foreign direct investments inflows — the strongest in Asean recently, overtaking Vietnam,” says the research house. Many believe the ringgit will correct itself in the second half of the year. HSBC Global Research says the ringgit will see a modest correction in 2H2022 when sentiment surrounding China stabilises, but it acknowledges that the ringgit is likely to remain undervalued while political uncertainty lingers. Nevertheless, there is also concern among many that the ringgit weakness may persist longer than expected. If it persists, what would it mean for the country? Inflation has been a hot topic since the height of Covid-19. The pandemic and subsequent lockdowns across the globe resulted in supply chain disruptions that continue to this day. Covid-19 disruptions were not the only reason, however, as other factors such as drought or frost compounded the shortage of crops, which has been further exacerbated by the war in Ukraine. Globally, commodity prices have soared, as crude oil, metals and even basic crops such as wheat are in short supply. The surge in commodity prices has inevitably resulted in a rise in inflation, which has been more apparent in developed nations. In March, UK inflation topped 7%, the highest in 30 years, and the eurozone’s was at 7.4%. US inflation was even more alarming at 8.5%, a 40-year high. In Malaysia, the effects of inflation have been less severe than in developed nations, capped largely by the fuel subsidy and ceiling prices set by the government as well as price controls on basic food items. Inflation in March increased by 2.2% year on year, a relatively modest increase even though the food and non-alcoholic beverages category registered a 4% y-o-y rise versus 3.7% in February. The increase in the sub-category was due largely to an increase in the component for “food at home”, which rose 4.3% versus 4.1% in the previous month while “food away from home” also increased 4% in March. Many consumers are feeling the pinch. Despite price controls on selected basic food necessities, the price of a packet of noodles or cup of teh tarik has crept up. A current concern is that a prolonged period of a weak ringgit, coupled with a rise in commodity and food prices, will lead to added inflationary pressures. “Manufacturers are already saying that potential pass-through of higher costs could raise prices by up to 10%. Around 8% of total imports are consumption imports. Malaysia also imported around RM8 billion worth of vegetable oils and fats from Indonesia last year,” says UOB Malaysia senior economist Julia Goh. Indonesia recently announced a palm oil export ban from crude palm oil to refined palm oil, a move that is expected to drive up the price of edible oil globally. Malaysia imports a significant amount of its food — RM51.4 billion in food products compared to RM38.7 billion in exports in 2021. This resulted in a trade deficit in food products of RM12.7 billion for the year. Economists anticipate food inflation to increase for some time. CGS-CIMB Research head of economics Ahmad Nazmi Idrus notes that some components in the food basket have seen moderation, specifically vegetables, fruits and seafood, following the government’s effort to rein in prices, but other components have continued to remain on an uptrend. Nazmi believes the rise in food prices will remain within the range of 4% and 5% y-o-y before easing off towards year-end. The Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) Socio-economic Research Centre executive director Lee Heng Guie projects food inflation will continue to rise as consumer demand — usually higher during festive celebrations — outpaces the country’s ability to supply products. Although a weaker currency could inadvertently nudge up inflation, OCBC economist Wellian Wiranto believes it will be more muted for Malaysia than other economies. “For one, the price effect of commodities is more contained because Malaysia is a net commodities exporter, particularly for hydrocarbons. The fact that subsidies remain very much in place should help blunt some of these effects as well,” he says. Nevertheless, he adds that some cate­gories of food inflation bear watching, especially given how prices of meat items such as chicken, a staple in Malaysian consumers’ diets, have crept up significantly so far this year and could run up further if the Ukraine war drags on and results in further feed supply disruption. In an interview with Bernama recently, Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus said Malaysia would not experience hyperinflation, as policies such as the fuel price ceiling and price controls on essential items help keep prices stable and mitigate cost pressures. Income transfers to vulnerable households also help soften the impact. Having said that, the ringgit’s trend in the months ahead will be keenly watched, as a persistently soft currency will add a layer of cost for businesses buying imported intermediate goods (56% of total imports) and capital goods (9.6% of total imports). Consumers will also see higher prices of goods and services, as imports of consumption goods make up 8.5% of total imports. For now, producers usually hedge against ringgit volatility in the short term, says Nazmi. If the ringgit can claw back its losses over the next few weeks, he adds, the impact on importers’ bottom line will be minimal. He believes the ringgit needs to weaken for a longer period of time before the cost trickles down to the Consumer Price Index (CPI). The country’s gross domestic product (GDP) for 2022 is projected to grow between 5.3% and 6.3%, according to the central bank, with a large part of growth predicated upon a stronger revival in domestic demand, especially from private consumption and public investment. Higher inflation, coupled with a flaccid ringgit, could result in the crimping of consumer spending power, thus hampering private consumption, especially as the economy is only beginning to recover from the pandemic. Economic recovery could be affected, as inflation disproportionately hurts low- and middle-income households, which spend a significant portion of their income on essential goods and services such as food, utilities, health and communications. CGS-CIMB’s Nazmi thinks it is still too early to say whether the impact of the ringgit will be significant. “Assuming that the local currency persistently weakens, it will be reflected in the CPI and cost of living. Should both factors be high, then consumers may start to limit their spending and this will dampen the private consumption component for the GDP and hence economic growth,” says Nazmi. What is important now, says UOB Malaysia’s Goh, is stability in the ringgit and its relative movement against other currencies. She points out that all Asian foreign currencies have currently weakened against the USD. Goh believes the cost-conscious consumer is likely to turn to cheaper options and seek out locally produced items, which could benefit domestic industries. She adds that the release of pent-up demand, lower unemployment and higher wages are likely to sustain the robust trend of consumption growth. In the Bernama interview, Bank Negara governor Shamsiah highlighted that 36% of Malaysian workers and 42% of labour income in Malaysia were part of export-oriented sectors. A weaker ringgit is likely to make Malaysian exports more competitive, as it makes them relatively cheaper, she said. “Firms in these sectors also see their net revenues increasing in ringgit terms, especially when they have little imports or if their imports are priced in the same currency of their exports. These would help benefit jobs and incomes in these sectors,” she maintained. Another saving grace for the country could be its transition to endemicity, which has seen the reopening of borders and more relaxed rules surrounding Covid-19. SERC’s Lee says a weak ringgit would mean that the tourism and retail sectors could see more foreign tourists spending in the domestic economy, although increased prices locally would somewhat reduce their purchasing power. He cites, for example, how a weak ringgit against the SGD is likely to spur Singaporeans to cross the causeway and spend in popular places such as Johor and Melaka, thereby helping to boost the local economy. Nonetheless, Malaysia’s tourism sector also relies heavily on tourists from China, who are now still restricted by closed borders. About 11% of international tourists in 2019 were from China. The export sectors are likely to benefit most from the weak ringgit. Industries that are export-oriented with high local content as well as resource-based have already been benefiting from the surge in commodity prices and, with a weakening ringgit now, are likely to see even higher revenue value. While OCBC’s Wellian expects to continue to see exports being largely supported, it is not so much from the angle of currency competitiveness. “It will be more of a testament to the twin support coming from semiconductors and commodities. Demand softness, especially in major economies such as the US and China, is a risk factor in the months ahead, but thus far, the trade numbers have been staying on the robust side, signalling that there is still more ‘juice’ left, especially given the in-demand product mix that Malaysian exporters offer,” he says. In the first quarter of 2022, export growth was strong at 22.2% y-o-y. Still, some believe a moderation could be ahead, owing partly to the base effect. The export numbers would also depend on how severe the cost pressures are and on the growth prospects of Malaysia’s key trading partners, such as the US, EU and China. UOB Malaysia’s Goh expects to see a current account surplus of RM16 billion for 1Q2022, higher than the RM15.2 billion recorded in 4Q2021. She adds that a balance of factors could tilt the trade surplus in the coming months, including higher contribution from net exports of liquefied natural gas, crude oil and palm oil, amid the sharp rise in commodity prices. “However, Malaysia’s high share of imports of intermediate (56% of total imports) and consumption (8.3% of total imports) goods may climb higher in coming months as import prices adjust to reflect the spike in commodity prices and input costs. “For now, we maintain our forecast for a current account surplus of 2% of GDP in 2022 (2021: 3.5%), pending the actual 1Q2022 current account data that will be released on May 13,” she says. Malaysia has long subsidised fuel for its people. Subsidies no doubt keep the rakyat happy, as the measure alleviates the cost burden and keeps inflation in check, especially during times when crude oil prices have risen substantially in the past year. While crude oil prices have risen significantly in recent times, Malaysians have continued to enjoy a retail fuel price of RM2.05 per litre for RON95 — the most commonly used fuel — and RM2.15 per litre for diesel. Only the price of unleaded RON97 has risen in line with global crude oil prices. There are no official numbers on how much exactly the government subsidises fuel each year. The RM17.35 billion “subsidy and social assistance” budgeted for 2022 by the federal government includes cash handouts, a cooking oil stabilisation scheme, education assistance and scholarships, subsidies on interest rates, electricity, paddy plantations, flour and liquefied petroleum gas, as well as farmer, fisherman and livestock incentives. The figure does not provide a detailed breakdown of the sub-categories. Economists have their own estimates of the government’s fuel subsidy bill, which range from RM12 billion to RM28 billion, based on their average forecast of Brent crude prices. Nonetheless, with the ringgit weakening against the greenback, the fuel subsidy bill could increase further as fuel import costs increase, especially if the current subsidy is maintained at the present rate. While the weakening of the ringgit would also mean that the federal government could collect more from fuel and fuel-related revenue, economists think the impact on the fiscal balance is negative, given the higher subsidy bill. Goh believes the government will prioritise price stability. To reach its fiscal deficit target of 6% of GDP, she says there may be a moderate adjustment to the fuel ceiling price, additional revenues from higher oil prices and rationalising other expenditure. There have been mutterings of a targeted subsidy mechanism but no details or timeline has been given on its introduction, although an increase in fuel prices will affect inflation. Another aspect of the federal government’s financial position that has also come into question with a weakening ringgit is the possibility of higher debt service payments for foreign currency-denominated borrowings. Nevertheless, SERC’s Lee does not see this as a concern, given that these loans are small and the export proceeds generated are more than enough to service external loans. As at end-December 2021, the federal government’s external loans, including foreign holdings of ringgit-denominated bonds amounted to RM240.4 billion, or 27.1% of total debt outstanding. The ringgit loans, being Malaysia bonds held by non-residents, made up 97% of total external borrowings, followed by loans denominated in the USD, at 1.8%, and Japanese yen, at 1.2%. In the Bernama interview, Nor Shamsiah also stressed that Malaysia was “nowhere near that position” of having trouble paying its external debts. “We are expected to record a current account surplus exceeding RM75 billion in 2022. We are exporting more than we are importing. It also means that we are getting more foreign currency than we are paying out. Besides that, Malaysia is a net creditor to the world. “Today, we have more foreign assets than foreign liabilities — unlike during the Asian financial crisis. Because of that, there should be no concerns that Malaysia might not be able to meet our foreign currency obligations, given the recent fluctuations in the ringgit,” she emphasised.   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.

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Negeri Sembilan must expand agriculture sector, modern livestock farming to stimulate economy — Rafizi

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PORT DICKSON (May 30): The Negeri Sembilan government must take the opportunities to expand the agriculture sector and modern livestock farming to invigorate the state’s economy and create more jobs for the people. Economy Minister Rafizi Ramli said, towards this effort, the federal government is forging cooperation with private sector investors in the two sectors. "Besides modern agriculture, livestock farming here also has the potential to be expanded. (There’s) high demand for the supply of beef. "The federal and state governments are cooperating in the aspects of providing the site and several other assistance. I'm looking forward to seeing projects related to agriculture and livestock farming can be carried out as soon as possible,” he said. He said this after attending the Mid-Term Review of the 12th Malaysia Plan (12MP) (2021-2025) engagement session at the Negeri Sembilan level here on Tuesday (May 30). Rafizi in his address also proposed to the state government to explore two other sectors, namely renewable energy and digital sector to increase the state’s economic income. He said Negeri Sembilan has better potential than other states due to its proximity to the Klang Valley. “The constant focus is on the renewable energy and digital sector, because at present (they are expected to be) the highest investment in the world for the next one or two years," he said. Meanwhile, Menteri Besar Datuk Seri Aminuddin Harun said the state government is committed to its effort to produce entrepreneurs in the high-technology agriculture sector in its bid to become a food producer. "In the last six months to one year, the state government had increased the number of industry players in the modern agriculture sector. It had identified a suitable site in Rembau," he said. Earlier in his speech, Aminuddin said the state’s current development direction is based on the Negeri Sembilan Development Plan 2021- 2025 (RPNS) and Negeri Sembilan Digital Economy Plan 2023-2027 (PEDNS).  He said both plans were launched in December 2022 as the development guidelines for the state in line with the 12MP as well as the Malaysia Digital Economy Blueprint at the federal level. "The two development plans will become the catalysts for the medium- and long-term development plans for Negeri Sembilan, besides becoming the basic planning for the annual budget at the state level as well as the federal government so that the objectives of the development plans are fully realised," he said.  

https://theedgemalaysia.com/node/638851

Ecoscience staging for an uptrend continuation, says RHB Retail Research

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KUALA LUMPUR (Oct 5): RHB Retail Research said Ecoscience International Bhd is staging for an uptrend continuation as it bounced off the 21-day average line and reclaimed the previous breakout level of 30.5 sen – forming a “higher low” bullish pattern. In a trading stocks note today, the research house said if the breakout sustains, the stock may climb towards the recent high of 33.5 sen, or Sept 27’s high, before propelling further towards the 40 sen mark. “If it falls below the 28.5 sen support, the stock may see a reversal in momentum as it forms a “lower low” bearish pattern, below the average line,” it said.

https://theedgemalaysia.com/node/673645

Farm Fresh clarifies its UMA explanation is voluntary, not due to query

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KUALA LUMPUR (July 5): Farm Fresh Bhd (FFB) clarified that it willingly released information regarding the recent current market price fluctuation and volume of its shares to the public, and not in response to any unusual market activity (UMA) query from Bursa Malaysia.  “... the announcement made by the company yesterday (July 4) was voluntary to provide clarity to the public in relation to the market price volatility and trading volume of the FFB shares in Bursa Malaysia vis-a-vis the recent development concerning Australian milk production as mentioned in Bega Group's recent announcement...” it said in a filing at noon break on Wednesday (July 5). Notably, Australia’s Bega Group warned earlier this week that it could be facing a non-cash impairment of between A$180 million-A$280 million (RM559.5 million-RM870.3 million) due to a decline in milk production volumes and rising dairy ingredient prices. In a filing with Bursa Malaysia on Tuesday (July 4), Farm Fresh clarified that its exposure to falling milk production is lesser in Australia, compared to that of Bega, which sources 100% of its milk requirement from Australian farmers. Farm Fresh’s share price settled at 2.6% lower or three sen at RM1.10 at noon break, valuing the company at RM2.08 billion with 12.9 million changing hands.   Read more:  Farm Fresh hits record low on concerns over intense competition for raw milk

https://theedgemalaysia.com/node/668097

MORNING CALL:23/5/23

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Kenanga Research said it came away from MPI’s post-3QFY23 results briefing feeling cautious on its outlook.

https://theedgemalaysia.com/node/666018

Glove stocks close in red after Hartalega’s move to decommission Bestari Jaya plant

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KUALA LUMPUR (May 8): Glove stocks appear to come under selling pressure after one of the sector’s largest producers Hartalega Holdings Bhd announced plan to decommission its Bestari Jaya production facility to weather through tough market landscape. Hartalega itself fell as much as 8.1% to an intraday low of RM1.81 following the announcement, before paring losses to close at RM1.87, down 10 sen or 5.1% on Monday (May 8), valuing it at RM6.41 billion. Top Glove Corp Bhd declined by 6.5 sen or 6.44% to 94.5 sen, giving it a market capitalisation of RM7.76 billion. Year-to-date, shares of both glove producers still recorded a gain of 4.4% for Top Glove and 10% for Hartalega. Supermax Corp Bhd also settled lower by four sen or 4.44% to 86 sen on Monday, while Kossan Rubber Industries Bhd closed unchanged at RM1.22. The glove sector, once the darling of the stock market during the peak of the pandemic, has been struggling operationally as softening demand weighs on selling prices, which led to margin squeeze amid rising raw material prices. Most of them have been taking steps to rationalise previously announced aggressive plans to ramp up production capacity as expansion by peers in China worsen the industry’s supply and demand dynamic. Top Glove, for one, had decided to let its Hong Kong initial public offering application to lapse last year, a fund-raising round originally planned to fund the group’s expansion and to tap market demand from China.

https://theedgemalaysia.com/node/649302

US Patriot system won't thwart Russia's plans for Ukraine, says Kremlin

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WASHINGTON/KYIV (Dec 22): US supplies of advanced Patriot missile systems to Ukraine, announced during Ukrainian President Volodymyr Zelenskiy's visit to Washington, will not help settle the conflict or prevent Russia from achieving its goals, Moscow said on Thursday. Kremlin spokesman Dmitry Peskov told reporters said that there had been no signs of readiness for peace talks during Zelenskiy's visit, proving that the United States was fighting a proxy war with Russia "to the last Ukrainian". "This is not conducive to a speedy settlement, quite the contrary," Peskov said of the Patriot system. "And this cannot prevent the Russian Federation from achieving its goals during the special military operation", using Russia's term for a war in which tens of thousands of people have been killed. Zelenskiy told Congress on Wednesday that US aid to his country was an investment in democracy as he invoked battles against the Nazis in World War Two to press for more assistance in the war against Russia. Zelenskiy said the Patriot system was an important step in creating an air shield. "This is the only way that we can deprive the terrorist state of its main instrument of terror — the possibility to hit our cities, our energy," Zelenskiy told a White House news conference, standing next to President Joe Biden. Zelenskiy's comments came as Republicans — some of whom have voiced increasing scepticism about sending so much aid to Ukraine — are set to take control of the US House of Representatives from Democrats on Jan. 3. Congress is on the verge of approving an additional US$44.9 billion in emergency military and economic assistance, on top of some US$50 billion already sent to Ukraine this year as Europe's biggest land conflict since World War Two drags on. The United States announced another US$1.85 billion in military aid for Ukraine, including the Patriot system. "We would like to get more Patriots ... we are in war," Zelenskiy told reporters. Russia says it launched its "special military operation" in Ukraine on Feb 24 to rid it of nationalists and protect Russian-speaking communities. Ukraine and the West describe Russia's actions as an unprovoked war of aggression. White House National Security Council spokesman John Kirby said Washington was seeing no sign that Russian President Vladimir Putin was willing to engage in peacemaking. Zelenskiy's aide, Mykhailo Podolyak, said the United States had "finally pinpointed the baseline" in the conflict. "1. Russia must lose. 2. No 'territory in exchange for pseudo/world' compromises. 3. Ukraine will receive all necessary military aid. As much as possible. 4. No one cares about Russia's 'talk to us' hysteria...," he wrote on Twitter. Ukraine has come under repeated Russian strikes targeting its energy infrastructure in recent weeks, leaving millions without power or running water in the dead of winter. Zelenskiy congratulated electrical workers for working round the clock, trying to keep the lights on as they marked Power Engineers' Day on Thursday, a day after the Winter Solstice, the shortest day of the year. "Even if the enemy can temporarily leave us without light, it will still never succeed in leaving us without the desire to make things right, to mend and restore to normal," he said on Telegram. "...Together we will overcome any darkness." TASS news agency earlier cited Russia's US ambassador as saying that Zelenskiy's visit to the United States confirmed that Washington's statements about not wanting a conflict with Russia were empty words. America's actions were leading to an escalation, the consequences of which were impossible to imagine, TASS cited Anatoly Antonov as saying. Moscow said last week that Patriot systems, if delivered to Ukraine, would be a legitimate target for Russian strikes. Russian Defence Minister Sergei Shoigu visited army units fighting in Ukraine, state-owned news agency RIA reported on Thursday, citing the ministry. It did not say where. Before his trip to Washington, Zelenskiy paid a surprise visit to the frontline city of Bakhmut, where he hailed the "superhuman" troops waging a battle that has come to symbolise the grinding brutality of the war. One person was killed and two were wounded on Thursday during Russian shelling of the town of Chasiv Yar, in the Bakhmut area, said Kyrylo Tymoshenko, the deputy head of Ukraine's presidential office.