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https://theedgemalaysia.com/node/667555

Govt finalising establishment of non-subsidised fuel stations in Kelantan, says Zahid

English

KUALA LUMPUR(May 18): The Ministry of Domestic Trade and Cost of Living (KPDN) is in the final stage of establishing fuel stations, sans subsidy, in several other states after the ones in Perlis, which were established as a pilot project, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. He said the project, part of the initiatives implemented under the Border Economy Programme, could save the government's oil subsidy allocation, besides providing more revenue to the country through sales tax imposed on foreign vehicles. "The project is currently implemented in Perlis, namely in Padang Besar and Wang Kelian. KPDN is now in the final stage of implementing the petrol stations without subsidies in other states, especially in Kelantan, which will then be followed by Kedah, Perak, Sarawak, Sabah and Johor," he said in a statement on Thursday (May 18). Earlier, Ahmad Zahid chaired the National Action Council on Cost of Living (NACCOL) meeting. He said the preliminary report of the supply of RON95 petrol and diesel without subsidy, implemented in Padang Besar and Wang Kelian, Perlis, found that sales for subsidised petroleum products dropped by 13.2% and 15.7% for RON95 for the first two months. "The total government subsidy savings is about RM5 million. The two non-subsidised petrol stations in Perlis recorded an increase of 14.75% in sales for diesel without subsidy and 43.27% for RON95 without subsidy," he said. On the implementation of OPS Tiris from last March 1 to May 15, Ahmad Zahid said 6,095 inspections were conducted nationwide, resulting in the seizure of 2,262,434 liters of diesel worth RM4,933,692, and the arrest of 124 locals and 39 foreigners. Regarding the supply of eggs, he said a total of 28.10 million chicken eggs had been distributed  to 369 marketing outlets under the Federal Agricultural Marketing Authority (Fama) as of last May 8. In ensuring adequate food supply, especially in high-density areas, Ahmad Zahid said a special study of the population profile had been conducted by the Department of Statistics Malaysia (DOSM) in four selected administrative districts. They are Bagan Datuk, Port Dickson; Petaling and Samarahan, he added.  He said based on the study, DOSM suggested a minimum of one farmer's market for an area with a population of between 3,001 and 5,000 people, while for a population of 100,001 and above, a minimum of 10 farmer's markets were recommended. "Overall, the proposal was to have additional 3,791 farmers’ markets in the peninsula, 64 farmers markets for Sabah and 24 farmers markets for Sarawak," he added. Meanwhile, Ahmad Zahid said the Madani Ramadan Special Sales Programme, carried out in 268 locations from last March 17 to April 14, involved the participation of 13,555 entrepreneurs and generated RM20.14 million in sales.

https://theedgemalaysia.com/node/667094

Bintai Kinden’s 24-year-old executive director, chairman resign

English

KUALA LUMPUR (May 15): Bintai Kinden Corp Bhd has announced a number of boardroom changes on Monday (May 15), with three resignations and two new appointments. In a filing with Bursa Malaysia, the mechanical and electrical engineering services provider said its executive director Noor Azri Datuk Seri Azerai has resigned due to personal reasons and time commitment on other companies. Noor Azri, 24, had assumed the post on July 23, 2021, at the age of 22. He was redesignated (on Oct 1, 2021) as deputy chief executive officer, four months after his first appointment. Later, he was redesignated to his original position, executive director on Feb 16. He recently disposed of four blocks of shares, totalling 12.6 million (or a 1.48% stake) between March 28 and 29, for RM758,806, another filing showed. He previously held directorships in other listed companies, namely Serba Dinamik Holdings Bhd and NWP Holdings Bhd, both as an independent and non-executive director. However, Noor Azri resigned from the board of NWP in March 2022 and Serba Dinamik in October 2022. Currently, Noor Azri only holds directorships in Malaysian Genomics Resource Centre Bhd as executive director. Bintai Kinden also announced the resignation of Ong Choon Lui as non-executive vice/deputy chairman to pursue other interests. Ong, 51, had assumed the post on Feb 24, 2022, after he was redesignated from his previous position as chief executive director. The group’s non-independent and non-executive chairman Datuk Ibrahim Othman has also resigned from his position, effective Monday, due to personal reasons. He was first appointed to the boardroom as independent and non-executive director on March 15, 2021. Meanwhile, Datuk Ng Choon Koon, 47, and Ng Siew Kim, 31, have been appointed as independent and non-executive directors of Bintai Kinden, effective Monday. Choon Koon was previously a state assemblyman for Bemban, Melaka from 2013 to 2018, a former director of Lembaga Perumahan Melaka, former chairman of Real Estate and Housing Developers Association (Rehda) Melaka, as well as former assistant secretary general of Malaysia Basketball Association. He is also a National Council Member of Rehda Malaysia and the legal advisor of numerous non-profit organisations (NGO). He is currently a shareholder of Bintai Kinden, having a total of 20.50 million ordinary shares, representing approximately 2.29% of the total issued share capital in the company. Siew Kim, who is the niece of Choon Koon, holds a Degree in Law from the University of London. She gained her experience in different kinds of legal proceedings, and mainly deals with sales and purchases transactions, banking facilities and other commercial advisory. To recap, Bintai Kinden slipped into PN17 status on March 29, after its wholly owned unit Optimal Property Management Sdn Bhd (OPM) defaulted on RM109 million worth of financing facilities in relation to the construction of the Universiti Melaka (Unimel) student campus accommodation. Noor Azri had blamed the Melaka government for not taking action to address payments of RM49.8 million owed to OPM by Kolej Teknologi Islam Melaka Bhd for the construction of the Unimel project. Shares in Bintai Kinden closed half a sen or 9.09% higher at six sen on Monday, giving the group a market capitalisation of RM49.12 million.

https://theedgemalaysia.com/node/610591

Former EPF CEO Tunku Alizakri appointed director of Malaysia Airlines parent company

English

KUALA LUMPUR (March 7): Former Employees Provident Fund (EPF) chief executive officer (CEO) Tunku Alizakri Raja Muhammad Alias has been appointed as a non-executive director of Malaysia Airlines Bhd and its parent company Malaysia Aviation Group (MAG) effective on Monday (March 7). In a statement on Monday, MAG said Zaiviji Ismail Abdullah had also been appointed as a non-executive director of Malaysia Airlines and MAG. MAG group chairman Tan Sri Wan Zulkiflee Wan Ariffin said in the statement that Tunku Alizakri and Zaiviji Ismail's wealth of experience and leadership values will be vital as MAG continues to execute strategies aligned with its long-term business plan 2.0 and realise its aspirations of becoming Asia’s leading travel and aviation services group. "The next few months will be critical for the group (MAG) in terms of demand recovery as we anticipate the safe reopening of Malaysia’s borders. "We will continue to further enhance our services and capabilities within our airline and non-airline businesses to provide customised experiences and innovative solutions to all stakeholders involved in our journey,” Wan Zulkiflee said. According to MAG's statement, Tunku Alizakri, who is currently the chairman of Malaysia Venture Capital Management Bhd, is also a board member of Prudential BSN Takaful, Bumi Armada Bhd, IHH Healthcare Bhd and Sime Darby Plantation Bhd. "He previously served as the CEO (chief executive officer) of EPF (Employees Provident Fund) from 2018 to 2021, where he played a pivotal role in the digital business transformation of EPF to increase members' digital experience and improve operational efficiency," MAG said. Meanwhile, Zaiviji Ismail is an experienced professional with extensive local and international board and operation experiences in setting strategies and policies for companies, according to MAG. "He is currently the chairman of Cement Industries of Malaysia Bhd and Uniquest Ventures Pte Ltd in India. Prior to this, he served Shell for over 22 years and retired in July 2011, where his last position was chairman of Shell companies in Pakistan," MAG said.

https://theedgemalaysia.com/node/656358

Genting Plantations reports 65% drop in 4Q profit, declares 19 sen dividend

English

KUALA LUMPUR (Feb 22): Genting Plantations Bhd’s fourth quarter net profit fell 65.4% to RM55.86 million, from RM161.64 million a year earlier, in line with weaker palm product prices and higher production cost. Earnings per share for the fourth quarter ended Dec 31, 2022 (4QFY2022) dropped to 6.23 sen from 18.02 sen previously, the group's Bursa Malaysia filing showed. Quarterly revenue decreased 26.1% to RM791.19 million from RM1.07 billion, as both the plantation and downstream manufacturing segments recorded lower palm product prices. The group declared a final dividend of four sen per share for FY2022, along with a special dividend of 15 sen. This brings the total dividend for the year to 34 sen, compared with 30 sen in FY2021. Genting Plantations said its plantation segments reported a lower revenue contribution of RM560.3 million in 4QFY2022, against RM674.6 million in 4QFY2021. The segment's earnings before interest, taxes, depreciation and amortization (Ebitda) fell to RM167.6 million from RM307.8 million. The downstream manufacturing segment's revenue contribution declined 27% to RM419.5 million from RM572.5 million, with Ebitda dropping to RM15.8 million from RM16.2 million. The group's fresh fruit bunch (FFB) production rose to 530,000 tonnes, from 516,000 tonnes in 4QFY2021, as it recovered from drought-induced production stress. For FY2022 as a whole, Genting Plantations' net profit increased 9.1% to RM471.42 million from RM432.22 million in the previous year, with revenue rising 1.9% to RM3.19 billion from RM3.13 billion, underpinned by stronger palm products prices, which was however moderated by lower sales volume of refined palm products. Full-year revenue for the plantation segment rose 16% to RM2.41 billion from RM2.07 billion in FY2021, but the downstream manufacturing segment's revenue dropped 7% to RM1.51 billion from RM1.63 billion. Annual FFB production declined to 1.9 million tonnes from 2.02 million tonnes in FY2021, attributable to disruption of harvesting and logistic activities caused by higher rainfall and lower harvesting area in Malaysia due to replanting activities. Average crude palm oil price fell to RM3,620 a tonne in 4QFY2022 from RM4,007 a tonne a year earlier, but the full-year average price improved to RM4,100 a tonne from RM3,444 a tonne. “The group’s prospects for 2023 will track the performance of its mainstay plantation segment, which is in turn dependent principally on the movements in palm products prices and the group’s FFB production,” said Genting Plantations in a statement. “In the short term, the group expects palm oil prices to remain supported by increased demand due to widened discount against other edible oils and increased allocation for Indonesia’s biodiesel mandate, whilst incremental supply is expected to decline in line with the slowdown of expansion of new plantings in recent years.” For FY2023, the group anticipates an improvement in FFB production, spurred by additional harvesting areas and progression of existing mature areas into higher yielding brackets in Indonesia, barring any weather anomalies. In Malaysia, production growth may be moderated by ongoing replanting activities, the group said. Genting Plantations’ share price fell one sen or 0.17% to close at RM6.02 on Wednesday (Feb 22), giving the group a market capitalisation of RM5.4 billion.

https://theedgemalaysia.com/node/664255

令吉兑美元小幅收高

Mandarin

（吉隆坡20日讯）令吉兑美元今早走强，收盘时小幅上涨。 截至下午6时，令吉兑美元报4.4350/4395，周三收于4.4385/4435。 Bank Muamalat Malaysia Bhd首席经济学家Mohd Afzanizam Abdul Rashid表示，马来西亚最新的消费者物价指数（CPI）显示，通胀率在过去两个月维持在3.7%后，3月逐渐回落至3.4%。 他告诉马新社：“尽管如此，通胀率仍然偏高。虽然隔夜政策利率（OPR）可能会再次上调25个基点，但鉴于全球经济前景充满挑战，机会似乎正在缩小。” 同时，令吉兑一篮子主要货币走低。 令吉兑欧元降至4.8616/8666，周三报4.8508/8563，令吉兑日元从3.2919/2959，下滑至3.2923/2958，以及令吉兑英镑从5.5100/5162，减至5.5127/5183。 令吉兑亚洲货币也贬值。 令吉兑印尼盾滑落至296.4/297.1，周三收于296.1/296.8，令吉兑泰铢从12.8719/8917，跌至12.8947/9134，令吉兑菲律宾比索从7.89/7.91，降至7.91/7.93，而令吉兑新元则下滑至3.3256/3292，周三报3.3190/3230。 配合开斋节特假，大马交易所及子公司将在4月21日（周五）及4月24日（下周一）休市。 马交所将在4月25日（下周二）复市。   （编译：魏素雯）   English version：Ringgit ends marginally higher against US dollar

https://theedgemalaysia.com/node/668204

金融工业股遭抛售 马股续收低

Mandarin

（吉隆坡23日讯）区域市场情绪疲弱，在金融服务和工业产品与服务股持续遭抛售拖累，马股延续昨日跌势收低。 闭市时，富时隆综指跌7.46点，收于1411.54点。 综指今早以1418.32点报开，较昨日收盘的1419点，下滑0.68点。日内游走于1409.51点和1419.61点。 下跌股达518只、上升股315只，另有399只无起落、1027只无交易，以及14只暂停交易。 成交量24亿6000万股，值16亿6000万令吉，低于昨日的27亿9000万股和17亿9000万令吉。 大众银行（Public Bank Bhd）跌4仙，报3.91令吉，以及国油化学（Petronas Chemicals Group Bhd）减7仙，挂6.89令吉，拖低综指2.20点。 乐天交易股票研究副总裁唐栢麟指出，在区域遭抛售，综指继续走低。 他向马新社说：“主要亚洲股市大多下跌，因投资者对美国债务上限谈判持谨慎态度。若谈判未果，可能导致美国债务违约。” 他补充，这将影响深远并对全球金融市场造成重大动荡，以及进一步加重本已步履蹒跚的全球经济负担。 “国内方面，我们认为综指目前处于超卖，因此，逢低买盘可能很快就会出现。” “尽管市场情绪谨慎，但我们预计综指周内将反弹并在1410至1425点区间波动。从技术上讲，即时支撑位是1400点，而阻力位是1440点。” 其他重量级股中，马银行（Malayan Banking Bhd）升3仙，收于8.61令吉、国家能源（Tenaga Nasional Bhd）和联昌国际集团（CIMB Group Holdings Bhd）各跌4仙，分别报9.56令吉和5.01令吉、IHH医疗集团（IHH Healthcare Bhd）降6仙，至5.90令吉，以及天地通数码网络（CelcomDigi Bhd）跌2仙，以4.39令吉挂收。 至于热门股，银丰集团（Revenue Group Bhd）跌1.5仙，报28.5仙、TWL控股（TWL Holdings Bhd）挫0.5仙，至4仙、婆罗资源（Bahvest Resources Bhd）则攀0.5仙，挂16仙，以及大稳控股（Ta Win Holdings Bhd）收平于4仙。   （编译：陈慧珊）   English version：Bursa extends losses to close lower

https://theedgemalaysia.com/node/645138

Guan Chong’s 3Q earnings down 11% on forex losses, revenue up 10%

English

KUALA LUMPUR (Nov 22): Guan Chong Bhd's (GCB) net profit fell 11% to RM30.76 million or 2.89 sen per share for the third quarter ended Sept 30, 2022 (3QFY2022), from RM34.45 million or 3.32 sen per share for the same period last year, mainly due to mark-to-market loss following the strengthening of the US dollar.  The cocoa grinder said the stronger greenback resulted in an unrealised foreign exchange loss of RM17.1 million after the group’s borrowings in US dollars were marked to the market.   During the quarter under review, the US dollar appreciated from 4.408 on June 30 to 4.634 on Sept 30, it added.  Quarterly revenue increased 10% from RM998.10 million to RM1.1 billion due to higher average selling prices of cocoa power and increased sales tonnage of 5.2% year-on-year.  GCB said higher energy cost at the group’s industrial chocolate plant in Germany, SCHOKINAG-Schokolade-Industrie GmbH, also affected the group’s overall profitability as a result of Ukraine-Russia tensions.  GCB managing director and chief executive officer Brandon Tay Hoe Lian said in a press statement on Tuesday (Nov 22): “Our operations face rapidly changing market dynamics, such as increasing interest rates and rising energy cost in Europe.”  Tay added that GCB aims to secure more forward sales for its anticipated Ivory Coast facility and other plants in Malaysia and Indonesia.  Net profit for the nine months ended Sept 30, 2022 (9MFY2022) increased to RM128.64 million from RM104.74 million for the same period last year, while revenue increased to RM3.29 billion from RM2.83 billion.  Singapore contributed the highest revenue at RM3.2 billion for 9MFY2022, followed by Malaysia (RM2.5 billion) and Indonesia (RM1.2 billion).  The group anticipated further decline in energy cost in 4QFY2022 in Western countries, especially in Germany, while global freight rates are expected to go down and be close to normalising.  At noon, GCB's share price had fallen four sen or 1.80% to RM2.18, giving it a market capitalisation of RM2.56 billion.

https://theedgemalaysia.com/node/608003

Trans-Pacific vessel count on course for sharp increase from March — data

English

KUALA LUMPUR (Feb 18): The number of vessels scheduled to depart Asia — and subsequently arrive on the North American West Coast — will increase sharply and surpass a 40% increase compared to the pre-pandemic normality. In a statement Feb 15, ocean liner schedule data provider Sea Intelligence said this in itself will add further pressure on the port infrastructure. What is more alarming is that there is a 60% increase in the number of vessels on the Asia-North America East Coast trade lane in the coming months, as carriers try to circumnavigate port congestion on the West Coast, it said. The firm said this will severely increase pressure on the port infrastructure on the East Coast. It explained that during the early pandemic period, there was an unusually large decline in the number of deployed vessels as blank sailings rose rapidly. But after this early phase, the number of deployed vessels first increased back to normal, and then reached a high point towards the end of peak season 2021. "With the recent data, we can see a seasonal dip due to Chinese New Year 2022, but it is the increase in March/April 2022 which should be particularly noticed," said Sea-Intelligence CEO Alan Murphy.

https://theedgemalaysia.com/node/633016

Focusing on both hardware and software

English

This article first appeared in City & Country, The Edge Malaysia Weekly on August 22, 2022 - August 28, 2022 While it is important to focus on maintenance, tenant satisfaction is equally crucial in the making of a successful office tower, says Tower REIT CEO Noorbaizura Hermeyney. Tower REIT owns Guoco Tower in Bukit Damansara, Kuala Lumpur. “We want to continue to be sought after by tenants despite the age of the building and having more new office towers coming up [in the area]. We believe good property management has helped us to position the tower as the office building of choice. We put everything in order, while managing things proactively,” she says. “We want to meet the satisfaction of the tenants, to make sure that they are happy to stay here … it is about both the hardware and software. Rates will be competitive, but tenants always want to stay for the long term and that long-term factor is about how comfortable and satisfied they are with the building.” Guoco Tower is the Gold winner in the Below 10 years Single-owned Office in a Mixed Strata category. Part of the RM2.5 billion Damansara City development, the 19-storey premium-grade office tower is Green Building Index (GBI)-certified, Gold Leed  2009 for Core & Shell development-accredited and is a designated MSC Malaysia Cybercentre. Its net lettable area is 236,500 sq ft, with each floor contributing about 14,000 sq ft. The anchor tenants include British American Tobacco Malaysia, Dentsu Holdings Malaysia Sdn Bhd, AECOM Perunding Sdn Bhd and GuocoLand Malaysia Bhd. Henry Butcher Malaysia (Mont Kiara) Sdn Bhd (HBMK) was appointed the property manager on Jan 1 last year. Noorbaizura says the tower is occupied by several multinational corporations (MNC), so engagement in terms of service is important. It is where the management gets feedback and understands the improvements needed for the building. “It is critical for us to get feedback and understand their situation … MNC tenants have certain requirements such as ESG (environmental, social and governance) compliance, health and so on. These things are important and we have to make sure that our building management will be able to handle it,” she adds. “Tenant retention is important as the building is under a REIT. We make sure that we plan things ahead and are proactive. We are also benchmarking ourselves against other office towers. It is not for competition’s sake but we want to enhance ourselves. We look at what systems other buildings have and see if they are applicable to us.” Guoco Tower is currently 86.9% occupied, with most tenants having been there since its opening in 2015. HBMK associate director Paris Tian notes that tenant satisfaction is about understanding the tenants’ needs and ensuring that they are well taken care of. “We conduct regular monthly meetings with our anchor tenants to hear from them and, from there, we improve. We believe that constant communication is important and our key to success, besides strong teamwork.” At Guoco Tower, there are 14 planned preventive maintenance conducted in-house on a regular basis. Its outsourced maintenance, meanwhile, include the lift system, fire-fighting system, air-conditioning and mechanical ventilation system, pest control and chiller system. Building manager Abdul Shahnaz Abdul Halim notes that it is about proper control and governance while keeping the management team updated on new systems. “In order to have the best maintenance results, we need to have proper control and governance … We do have our service providers assisting us in terms of preventive maintenance but we need to have some sort of control. The way we do it here is that while our service providers have their checklists, our team also has its own checklist to countercheck to make sure that everything is properly done,” he says. “We won’t rely on the service providers solely. Our team needs to know how things are done. Even though the service providers have more knowledge, the team still needs to know the basic foundation of the stuff going on.” Tian reiterates that it is about checks and balances. “For example, when the lift service provider tells us that we need to make some replacements, Shahnaz will go down the site itself to check and confirm whether there is a need to replace … We will ask for more supporting documents from the service provider to confirm the necessity of the replacement. We will do all the due diligence as well as checks and balances.” Abdul Shahnaz reckons that there are challenges in maintaining Malaysia Digital Status (formerly known as MSC-status) and green-certified building, as it involves a “complex system”. “Some criteria associated with these statuses are difficult to manage and maintain because the [whole] system is complex, and it is not easy to ensure that the system is always in ready mode. For example, we have a building control system that controls and automates our air-conditioning system. It involves a lot of electronic systems and programming works. These are very technical and complex and not straightforward for us to maintain them,” he explains. “We overcome this problem by doing our own research and maintaining a close relationship with our service providers to understand — better and correctly — the system itself. From there, it helps us to troubleshoot the system on our own. We are not experts but we need to have the basic foundation to maintain these systems, especially those electronic-related ones.” Abdul Shahnaz agrees that consistent and proper communication is important in property management. It ensures strong teamwork between Tower REIT and HBMK, as well as a good relationship with the tenants. “We consistently communicate with the landlord. We build rapport with our tenants and get their feedback to make sure the building meets their requirements.” Indoor air quality (IAQ) has been especially important with the advent of Covid-19. Tian notes that IAQ maintenance complies with the Ministry of Health’s guidelines to decrease the infection rate. “We did a gap analysis and we try to close the gap to ensure that the IAQ at Guoco Tower is maintained at a tip-top standard,” she says. On the highest floor is a fresh air fan that brings cool air into the building, thus minimising the cost of keeping the temperature at an optimal level. Abdul Shahnaz hopes Guoco Tower will continue to be one of the best office towers in the Klang Valley, with tenants getting the best service experience. While it is important to keep up with technology to ensure that the systems are always updated, crisis management is also crucial, he emphasises. “When we manage a building, the main thing is how we react when there is a crisis … Most importantly, everyone in the team knows their role and what to do.” Noorbaizura adds that Tower REIT does not want to rest on its laurels. Guoco Tower must continue to be sought after. “The location itself is not enough, because there is a lot of competition around … Benchmarking is important and I think we are at a pretty good stage now … There is always room to improve and I believe in benchmarking ourselves against competitors and market standard, or we will never improve. We even talk to agents, who will give feedback on the offerings of other office towers. Competition will be always there, so we have to keep on improving ourselves.” 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/608177

Ericsson still focused on delivering a world-class 5G network for Malaysia, despite SWN uncertainties

English

This article first appeared in The Edge Malaysia Weekly on February 21, 2022 - February 27, 2022 DESPITE the current uncertainties over whether Malaysia’s 5G rollout plan will be done via the single wholesale network (SWN) model, Swedish telecoms equipment giant Ericsson says it is still focused on delivering a world-class 5G network. Ericsson senior vice-president, head of market area South East Asia, Oceania and India Nunzio Mirtillo tells The Edge the group is accountable for the delivery of the network given its appointment as Digital Nasional Bhd’s (DNB) partner. At RM4 billion, the contract to design, build and maintain the national 5G network is the largest secured by the group in Malaysia so far. “We are not focused on [the uncertainty surrounding the 5G rollout] at the moment — we are just focusing on delivering a great network. “If the government decides on something else [as opposed to the SWN], that would be a government decision. We will take it from there. In the meantime, the only thing that we can do, which is what we are doing, is to make sure that we deliver a world-class 5G network,” he says. However, he is tight-lipped on whether Ericsson would be entitled to compensation if the government decides not to go through with the SWN model although he says he is “sure” that DNB and Ericsson have “protected themselves in a very fair and reasonable way, as is usually done”. “There might be protection clauses here and there but I think it’s a very solid contract,” he adds. While the government had initially opted for the SWN model for an accelerated rollout of the 5G network in the country, uncertainties cropped up later on amid strong lobbies for a second privately owned 5G network consortium. The final decision — on whether the government will stick to its initial plan for the rollout to be done via the SWN — is slated to be made when parliament reconvenes at end-February. Under the model, DNB had planned for a total of 10,000 towers to cover 80% of the population by 2024, although this could change if the government decides to proceed with a dual wholesale network (DWN) instead. Asked how a shift to a DWN model would affect 5G implementation here, Mirtillo declines to delve into the details, but says that in general, a bigger spectrum equals greater efficiency. “Our study [for the rollout] was done based on the spectrum that we got from DNB. If the spectrum is halved, we will have to look into it,” he says. However, he emphasises that Ericsson is not bothered by the noise and is just focusing on delivery. “All big turnkey projects are always very complex, very cumbersome, but since the day we signed our contract, in only six months we have been able to deliver a great 5G network according to plan in Putrajaya, Cyberjaya and Kuala Lumpur,” Mirtillo says. Overall, he says Ericsson is honoured to have been appointed as DNB’s partner after a strict selection process, with the group ranking the best across all categories — from the technology and commercial considerations to the socioeconomic requirements. He notes that Ericsson’s appointment was not surprising, given the efforts the group had put into bolstering its research and development (R&D). “We decided about six to seven years ago to double down on our R&D. Our strategy was really to focus on infrastructure again to regain our leadership, and this has worked out pretty well,” he says. Ericsson has been a part of Malaysia’s ­telecom journey since its 2G days, he says, with the group also operating a repair centre in the country, which also services more than 120 countries across the globe. He also notes Ericsson’s massive involvement in the rollout of 5G networks across the globe, serving a total of 109 5G networks and supporting 48 countries out of the total 70 countries with 5G networks currently. The group was also involved in the launching of the first 5G network in the world, in South Korea back in December 2018, for business-to-business customers, and later, in April 2019, for mobile 5G services. The 5G network will be a platform for new technologies to emerge, Mirtillo says, pointing out use cases around mobile gaming and extended reality (XR), amid the rising development and adoption of virtual, augmented and mixed reality applications. “There will be more developments beyond our imagination — once the platform is there, the developer community will start to build applications on top of these capabilities,” he says. He points to the rise of social media and messaging applications which arose following the adoption of 4G, adding that there is no doubt that 5G will be a platform for growth and innovation.   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/677912

Vietnam imposes up to 32.75% anti-dumping tax on sugar imports from some Thai producers

English

HANOI (Aug 8): Vietnam has imposed an anti-dumping levy between 25.73% and 32.75% on sugar products imported from some of Thailand's biggest sugar producers for a period of nearly three years, the country's trade ministry said on Tuesday (Aug 8). The decision was made after a "careful and fair investigation" and will be in place from Aug 18, 2023 until June 15, 2026, the ministry said in a statement. An anti-dumping tax of 32.75% will be applied to Thailand's and Asia's biggest sugar and bioenergy producer Mitr Phol Sugar and four associated companies, the ministry said. Whereas, Thai Roong Ruang Industry, one of Asia's leading sugar producers and its five affiliates will be imposed with an anti-dumping tax of 25.73% and an anti-subsidy tax of 4.65%, the statement added. Last year, Vietnam imposed an anti-dumping levy of 47.64% on some sugar products imported from five Southeast Asian countries but originating from Thailand for a period of four years Vietnam removed duties on sugar imported from Southeast Asian countries in 2020, in accordance with the commitments of the Asean Trade in Goods Agreement. However, provisions allow Association of Southeast Asian Nations to impose import duties to protect the rights and interests of domestic industries against anti-competitive behaviour.

https://theedgemalaysia.com/node/621891

YX Precious Metals to raise RM31.26m via IPO on ACE Market, to list on June 23

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KUALA LUMPUR (May 30): ACE Market-bound gold jewellery wholesaler and manufacturer YX Precious Metals Bhd (YXPM) is seeking to raise RM31.26 million from its initial public offering (IPO). Notably, YXPM is a wholly-owned subsidiary of Tomei Consolidated.   YXPM managing director Ng Sheau Chyn said the group saw a huge demand for gold jewellery during the pandemic and it intends to increase its product range and establish more business-to-business (B2B) opportunities in the future. “In terms of market share, currently we are less than 10% and are at approximately 6%.   “I still see we have big opportunities within the local market. So we would like to focus on the lower hanging fruit efforts and getting a higher margin,” she said during the group’s prospectus launch on Monday (May 30). YXPM mainly serves the Malaysian market as well as exports its products to countries which include Germany, Hong Kong, Indonesia, Myanmar and Singapore. Its customers are mainly trade customers or intermediaries, such as retailers and wholesalers, as well as jewellery manufacturers. According to the group, the IPO exercise entails the public issue of 111.65 million new ordinary shares in YXPM, of which Public Investment Bank Bhd has agreed to underwrite 48.38 million shares. Meanwhile, 18.61 million shares will be made available to the Malaysia public, 11.16 million shares to eligible directors and employees and 18.61 million shares to all entitled shareholders of Tomei. Of the remaining shares, 16.75 million shares will be privately placed with selected investors and 46.52 million shares will be privately placed to selected Bumiputera investors. On proceeds from the IPO exercise, a total of RM20.86 million or 66.73% will be allocated for working capital, specifically to purchase raw materials. RM4.4 million or 14.08% will be earmarked for purchase of new machinery and equipment for expansion of hollow gold jewellery range while RM3.5 million or 11.2% will be used to fund its listing expense. The remaining RM2.5 million or 7.99% will be utilised for expansion and upgrading of operational facilities. For the financial year end 2021 (FY21), the group reported a 24.18% decline in its net profit to RM7.1 million from RM9.37 million a year earlier while annual revenue rose by 51.1% to RM265.38 million compared to RM175.63 million previously. YXPM is principally involved in wholesaling, design and manufacturing of gold jewellery. Its other related products and services include sales of scrap and pure gold bars, manufacture of silver chains, and provision of refining services for precious metals. The group is slated to make its debut on June 23. At the IPO price of 28 sen per share, YXPM would have a market capitalisation of RM104.2 million. Public Investment Bank is the principal adviser, sponsor, underwriter and placement agent for YXPM's IPO.

https://theedgemalaysia.com/node/666977

Thai central banker signals more hikes to win inflation fight

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(May 15): Bank of Thailand (BOT) governor Sethaput Suthiwartnarueput signalled that the central bank will stick to its gradual and measured monetary tightening to curb inflation, although price gains have returned to target. “I think we’re not done on the inflation front yet,” Sethaput said in an interview with Bloomberg Television’s Haslinda Amin in Bangkok on Monday (May 15). The central bank is due to review monetary policy settings on May 31. A relative laggard in the global interest rate-hiking cycle, Thailand has stuck to small increments to borrowing costs, even as peers around the world have either paused or signalled room to stand pat. While domestic inflation returned to the BOT’s 1% to 3% target in March, a faster-than-expected pace of economic recovery is keeping the central bank guarded on price pressures. “Yes, we’ve seen inflation come down, but it’s important not to be sanguine,” Sethaput said. “If we look ahead, even though inflation is likely to be low for a while, there are risks of upside inflation pressure”, including tourism uptick, spending from a new government, and minimum-wage promises, he said. His comments followed data earlier on Monday that showed the economy benefiting from a resurgent tourism sector, with the outlook hinging on political stability. Results from Sunday’s vote showed pro-democracy opposition parties were the biggest winners, in a rebuke to the military-led establishment that had ruled for close to a decade. While it remained unclear who would emerge as the prime minister, Sethaput said the government should focus on fiscal consolidation. “The focus should be more on trying to gradually consolidate the fiscal picture” because the economic recovery is “progressing”, the BOT governor said. “In terms of fiscal impact on inflation, a lot of that will depend upon the nature of the spending that occurs.” Thai political parties have promised billions of dollars worth of freebies in a bid to woo voters in the general election. Sethaput warned last month that subsidies and populist promises with eye on votes could pose fiscal risks if implemented. While the BOT has scope to sustain its gradual policy tightening to check price pressures as tourism powers spending, inflation that’s already returned to the central bank’s 1% to 3% target band boosts the case for halting rate increases. Headline inflation eased for a fourth straight month in April, according to the Commerce Ministry that forecast the pace to decelerate to below 2% in May. Price gains of 2.67% last month were at the slowest in more than a year, and had come off dramatically from 14-year highs in 2022.

https://theedgemalaysia.com/node/602457

G3 Global appoints former MOE sec-gen as new chairman

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KUALA LUMPUR (Jan 4): G3 Global Bhd has appointed former Ministry of Education (MOE) secretary-general Datuk Seri Alias Ahmad as its chairman and independent non-executive director effective from Tuesday (Jan 4). He succeeds Datuk Wan Khalik Wan Muhammad, who has resigned as the company's director and executive chairman, said G3 Global in a statement. It said Alias retired from the civil service in May 2018 after serving for 34 years, holding many posts of importance in the government, including as director general of the Immigration Department (2010-2014), secretary general of the Ministry of Domestic Trade and Consumer Affairs (2014-2016), and secretary of the National Security Council (2016). Other departments that he served included the Prime Minister's Office, Ministry of Home Affairs, and the State Security department. Commenting on the appointment of the new chairman, G3 Global managing director Dirk Quinten said with the extensive experience and credibility possessed by Alias, he is confident that the company will continue to flourish as a dynamic and competitive player in the industries it is involved in, such as artificial intelligence and healthcare. The statement said recent interesting developments at G3 Global recently included the appointment of Datuk Seri Aminul Islam Abdul Nor in late November as an executive director after he emerged with a 25% stake in the company. Aminul Islam, better known as Mohd Amin, is the founder and chairman of technology firm Bestinet Sdn Bhd, which provides information technology solutions for managing foreign labour for all stakeholders. Subsequently, G3 Global proposed to diversify into healthcare sector related business, including the distribution of Covid-19 test kits. The proposed diversification is being ventured via Bestinet Healthcare Sdn Bhd, a 51% owned subsidiary of G3 Global. An extraordinary general meeting will be conducted for the shareholders' approval soon. Loss-making G3 Global, formerly known as Yen Global Bhd, is principally involved in apparel manufacturing as well as in the information, communications and technology sector.

https://theedgemalaysia.com/node/624137

Boardroom tussle at Caely intensifies

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KUALA LUMPUR (June 15): The boardroom tussle at Caely Holdings Bhd has intensified with the extraordinary general meeting (EGM) requisitionists claiming victory in removing nine directors from the existing board on Wednesday (June 15). This is despite group executive chairman Datuk Loh Ming Choon declaring that the EGM is adjourned pending final determination of the lawsuit in court. In a Bursa Malaysia filing on Wednesday (June 15), the Perak-based lingerie firm said Loh had been advised by the group's legal adviser that the subject matter of the EGM was sub judice and that it could not lawfully continue with the EGM, which carried 12 resolutions. Three shareholders who collectively hold at least 10% stake in the group — namely Leong Seng Wui, Kok Kwang Lim and Valhalla Capital Sdn Bhd — made their first attempt to call for an EGM to remove the existing board members in February this year. On March 16, Caely commenced a lawsuit at the Kuala Lumpur High Court against the trio as well as five others in a challenge against their voting rights and the nomination of themselves or nominees at an EGM. On March 18, the trio filed a lawsuit against Caely to declare that they were entitled to call and hold an EGM subject to any protocol or requirement as determined by the court to ensure a fair and smooth running of the EGM. Two months later on May 19, the trio requested for another EGM to discuss various issues, including the removal of newly appointed executive chairman Wong Siaw Puie and six other existing directors. In supporting the decision to adjourn the EGM, Caely said: "The chairman forewarned that this EGM and the decisions that the members present are being asked to take this morning interfere with the reliefs sought at the Kuala Lumpur High Court by the company. "All members who are present today should be aware that, in defiance of the ongoing legal proceedings, they may find themselves in contempt of court." Separately, a statement released on Wednesday contradicting the group's filing on the local bourse said nine Caely board members have been removed, including Loh Ming Choon, Mohamad Hanafiah Zakaria, Sin Hock Min, Wong Siaw Puie, Ng Mei Choo, Khoo Chen Yeng and Koh Mui Tee. Two new board members — executive vice chairman Datuk Jovian Mandagie and independent director Sandraruben Neelamagham — who were appointed before the EGM have also been removed. Jovian is the son-in-law of Prime Minister Datuk Seri Ismail Sabri Yaakob. Only one existing director Datin Fong Nyok Yoon remains on the board. Meanwhile, it claimed four new directors have been appointed to the board, namely Leong, Datuk Kang Chez Chiang, Ng Keok Chai and Krishnan Dorairaju. Leong is an executive director of Green Packet Bhd. Citing the EGM adjournment being invalid, the requisitionists said: "Firstly, Article 82 of the company's constitution clearly states that any adjournment has to be put to vote and shall be determined by poll. Despite Loh being advised by the company secretary of the same, his advice was ignored. "Secondly, there is no injunction obtained by the company to adjourn the EGM. As far as the Kuala Lumpur High Court suit No WA-24NCC-178-03/2022 filed by the requisitionists is concerned, the requisionists' intention to withdraw the same was made known to the company during the case management on June 13, 2022," it said. The requisionists also claimed that the shareholders present then unanimously appointed Leong as the new chairman. Niche Unity Consultants Sdn Bhd was appointed as the independent scrutineer of the EGM. Caely has been in the spotlight in the past two months after the Malaysian Anti-Corruption Commission issued a freeze order on all of its bank accounts in April. On Monday, Caely announced that its auditor Virdos Lima Consultancy (M) Sdn Bhd could not continue with its forensic audit as critical information was not available. At market close on Wednesday, shares in Caely were up 5.5 sen or 14.86% to 42.5 sen, giving it a market capitalisation of RM109.75 million. Penang-based businessman Datuk Seri Goh Choon Kim is the largest shareholder of Caely with a 21.05% stake. Read also: Lingerie maker Caely sees first share-price rise in two weeks despite ongoing boardroom tussle

https://theedgemalaysia.com/node/604820

Security token space seen picking up steam

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This article first appeared in Capital, The Edge Malaysia Weekly on January 24, 2022 - January 30, 2022 SECURITY tokens, tokenised versions of financial securities that are recorded and traded on blockchain networks, are expected to hit the digital asset space at a much faster pace in the next couple of years,underpinned by wider market adoption. Global issuance volumes for security tokens could reach US$4.1 trillion (about RM17 trillion) by 2030 from an estimated US$100 billion in 2022, according to independent strategy consultancy Quinlan & Associates’ report released in September last year. Meanwhile, listed trading volumes are forecast to surge to US$162.7 trillion by the same period from US$9.4 trillion. Seeing the potential in this security token space is Fusang Corp, Asia’s first fully licensed and regulated digital financial ecosystem for security tokens and assets. The seven-year-old start-up announced last Wednesday an initial public offering (IPO) on its own digital asset exchange to raise US$10 million, making it the world’s first IPO of fully regulated equity tokens. This comes after it received approval from Malaysia’s Labuan Financial Services Authority. This is in contrast to other digital asset exchanges that have gone through conventional ways such as private equity to raise capital. “When it comes to own equity, many large exchanges choose to list on places like Nasdaq using paper shares. Even they don’t believe what they are selling. That’s why we are listing on our own exchange with fully equity tokens. If we are not willing to show that we can go through this process, how can we ask anyone else to do it?” says Fusang founder and CEO Henry Chong in an interview with The Edge. “There is a narrative today that crypto is very exciting with high returns, but very dodgy. That shouldn’t be the case. We are here to show that digital token is a great technology layer and we can absolutely have this to represent shares, bonds, funds and IPOs of traditional companies. “By nature, paper-based securities are inefficient. Once you have a digital token, you can start to move and transact in a different way. We can do digitally where individuals can come and sign up with the exchange and get through the KYC (know-your-customer) checks,” he adds. Founded in 2015, Fusang is licensed in two jurisdictions, namely Labuan and Hong Kong. Its IPO has an offering size of US$10 million and will be available for institutional and public subscription. Its equity tokens will be listed on Fusang Exchange by the end of March. Chong shares that some companies that are already listed on traditional stock exchanges do have plans for a secondary listing with the issuance of security tokens. “I hope our IPO will kick off a massive trend of showing people that digital tokens don’t just have to be ICOs (initial coin offerings) for cryptos. They can be fully regulated and licensed securities. “Instead of creating tokens that do not have intrinsic value, we take the most exciting and innovative companies to tokenise their shares offered and traded by the same people who want to trade cryptos in the first place. We know the market demand is out there. The question is can we bring products that are great in nature and that is why we want to start it ourselves,” he says. “We are blending the traditional capital market, like shares, bonds and funds, with the best of blockchain technology. Our combination of licences in technology platforms as well as operations and services capabilities that we have let us construct this process, where we can take the securities through the whole life cycle from issuance to tokenisation, listing and trading.” Chong assures that the quality of companies will not be compromised, given that there is a robust set of listing rules in place. Also, to comply with securities regulations, Fusang has built a fully licensed, end-to-end platform that leverages blockchain technology to facilitate client onboarding, trading, and the management of security tokens and assets, including cryptos. “For a lot of traditional stock exchanges, the biggest determinant of quality is size and I don’t think that is true. Big companies are preferred because traditional stock exchanges’ processes are very manual and paper-based.” He is of the view that the hurdle to broad-based institutional adoption in digital assets is a lack of regulated platforms that institutions can feel comfortable to invest in. “It is hard for pension funds to justify to their boards why they should buy Dogecoin. But if we can show people how tokens can be shares, bonds or the kind of instruments they used to buy daily, that’s when the floodgate will open.” Nonetheless, he advises retail investors to look at the value of the company when they want to invest in security tokens. As funding remains a crucial part for many companies, Chong believes that digital asset exchanges can also play their role in facilitating fundraising in the digital asset space.   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/670078

亚股涨跌互见 马股小幅收高

Mandarin

（吉隆坡6日讯）亚洲股市涨跌互见，在部分重量级股的温和买盘提振，马股小幅收高。 闭市时，富时隆综指上升1.91点，收于1383.17点。 综指今早以1382.10点报开，较上周五收盘的1381.26点，微扬0.84点。日内游走于1377.35点和1383.58点。 惟市场广度负面，下跌股达507只、上升股355只，另有413只无起落、968只无交易，以及14只暂停交易。 成交量35亿5000万股，值19亿2000万令吉，略低于上周五的36亿股和19亿4000万令吉。 乐天交易股票研究副总裁唐栢麟指出，在经济数据显示美国5月服务业意外走软后，投资者的不一反应影响主要亚股。 他向马新社说，最新数据显示美国经济疲软的迹象。 “由于投资者等待下周的美国联储局（FED）会议，区域交投仍然有些低迷。” 他认为，在州议会拟于6月底解散前，本地股市有望小幅走高。 他补充，由于目前本地的政治气候，投资者不愿在股市投入大量资金。 重量级股中，马银行（Malayan Banking Bhd）收平于8.58令吉，而大众银行（Public Bank Bhd）扬3仙，至3.81令吉、国家能源（Tenaga Nasional Bhd）则跌12仙，挂9.30令吉、天地通数码网络（CelcomDigi Bhd）降8仙，报4.40令吉，以及国油化学（Petronas Chemicals Group Bhd）减3仙，以6.52令吉挂收。 至于热门股，婆罗洲石油（Borneo Oil Bhd）平盘收于1.5仙、迪耐（Dagang NeXchange Bhd）挫4.5仙，报47仙、Advance Synergy Bhd则扬1.5仙，挂15仙、Techna-X Bhd涨0.5仙，至2仙，以及Classita Holdings Bhd增1仙，报13仙。   （编译：陈慧珊）   English version：Bursa ends mixed, KLCI up slightly

https://theedgemalaysia.com/node/668019

Siemens Healthineers to establish Malaysia head office at The MET Corporate Towers

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KUALA LUMPUR (May 22): Triterra Metropolis Sdn Bhd has signed a lease agreement with medical technology company Siemens Healthineers to establish its new Malaysian head office in The MET Corporate Towers located in Mont’Kiara, Kuala Lumpur on Monday. Triterra Metropolis secured a nine-year lease with Siemens Healthineers to occupy 18,500 sq ft on Level 34. “This partnership signified a shared vision to create a dynamic environment. At Triterra, we are committed to building in-depth relationships that inspire greatness, field innovation and drive transformational change,” Triterra Metropolis Sdn Bhd group chief executive officer (CEO) Christopher Lim said in a press statement. According to the press statement, the office will feature a contemporary training area and a cutting-edge customer experience centre showcasing a diverse product and service portfolio, including AI-supported applications and digital offerings that play an increasing importance in in-vitro diagnostics, image-guided therapy, in-vivo diagnostics and innovative cancer care.  According to Siemens Healthineers Malaysia managing director Rod Frazer, “The future Malaysia head office will provide a modern, dynamic and flexible working environment for our dedicated team, enabling us to achieve our goals for customers and partners."  The MET Corporate Tower also features a retail component called 3rd Space where it offers a social hub for dining, wellness and curated events. Within vicinity to The MET Corporate Tower is the Ministry of Investment, Trade and Industry (Miti), Malaysia External Trade Development Corporation (Matrade) and Malaysia International Trade and Exhibition Centre.

https://theedgemalaysia.com/node/644728

非官方成绩：希盟赢11席

Mandarin

（吉隆坡19日讯）根据非官方成绩，希盟目前已赢得11个国席。 这些席位是新山、峇吉里、士基央、斗湖、拉美士、兵南邦、丹绒、亚庇、山打根、礼让，以及由林冠英赢得的峇眼。   （编译：陈慧珊）   English version：Unofficial: Pakatan Harapan picks up 11 seats

https://theedgemalaysia.com/node/604368

New airlines a surprise to Malaysia Airlines as industry braces for overcapacity — CEO

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PETALING JAYA (Jan 19): Malaysia Airlines Bhd's parent Malaysia Aviation Group Bhd's (MAG) chief said on Wednesday (Jan 19, 2022) that announcement on the Malaysian Aviation Commission's (Mavcom) preliminary approvals for new airlines SKS Airways Sdn Bhd and MYAirline Sdn Bhd was a surprise to MAG at a time when the Malaysian aviation sector is mindful of a potential airline overcapacity for a nation of about 32 million people. "My concern here, is that... can a country with a 32 million population take more airlines? [The new airlines] are flooding the market with unnecessary capacity," MAG group chief executive officer (CEO) Captain Izham Ismail said. "This is where regulators and policymakers [have] got to be really clear on what they want to do. Do they want to flood the market with capacity in a free-for-all situation or do you want to make aviation companies contribute to the country's economy by being profitable and sustainable?" Izham said. Izham was responding to queries by theedgemarkets.com on SKS Airways and MYAirline at the memorandum of understanding signing ceremony here on Wednesday between MAG and the Sarawak Tourism Board (STB) under a collaboration for which the two parties will work hand-in-hand to market and promote events involving STB, Malaysia Airlines, Firefly, MASwings and MHholidays. On Dec 22, 2021, aviation regulator Mavcom announced on its website that the regulator had approved the issuance of a conditional approval (CA) for an air service licence (ASL) to Z9 Elite Sdn Bhd, which is doing business as MYAirline. Mavcom said the CA for MYAirline was for 12 months effective from Jan 1, 2022 to Dec 31, 2022. In another announcement on Dec 22, 2021, Mavcom said it had also approved the issuance of an ASL to SKS for 36 months effective from Jan 1, 2022 to Dec 31, 2024. On Wednesday (Jan 19), Izham said MAG is monitoring the situation closely, adding that the aviation group does not know the share of the business that the new airlines will take from MAG. "The announcement on the new airlines is certainly a surprise to us at the moment [and that] obviously [the new airlines] could be a threat and competitor [to MAG]." According to him, the ASL granted by Mavcom to MYAirline is still subject to the airline obtaining an air operator's certificate from the Civil Aviation Authority of Malaysia. "Does it make sense that you have airlines such as AirAsia Group Bhd and Malaysia Airlines scrambling to try and stay alive post-pandemic, [and] you add more capacity. It will make things worse. "My fear for the new airline is that it may derail the sustainability of existing airlines with unnecessary extra capacity, which will benefit consumers but might not be sustainable to the country as a whole," Izham said. Looking ahead, Izham said Malaysia's infrastructure developments such as the East Coast Rail Link and Pan-Borneo Highway will render the extra aviation capacity redundant while noting that Malaysia is still a relatively small market with an estimated 32 million population. For now, as the structure and business plan of MYAirline are unclear at the moment, Izham declined to comment further on the airline. He, however, said MAG believes that SKS Airways can help fill up the unmet demand for flights to island destinations. Read also: Malaysia approves two new airlines in aftermath of pandemic Malaysia Airlines parent company and Sarawak Tourism Board embark on a year-long partnership

https://theedgemalaysia.com/node/668781

Pitfalls & Pitch Calls: Why diversify?

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This article first appeared in Wealth, The Edge Malaysia Weekly on May 29, 2023 - June 4, 2023 Simple question. Why diversify when it just dilutes returns in an uptrend and still loses on the downside? It sounds like a reasonable question. A review of what is happening globally helps us answer it. In the US, the financial results for 1Q2023 so far have been broadly in line with expectations. If the trend continues for the rest of the earnings season, earnings per share (EPS) growth is likely to come in at -3% compared with the same period last year, which is better than expected. Having said that, the better-than-expected numbers are relative to management guidance that had already been downgraded in the first quarter.And 1Q2023 only incorporated a small impact from the banking crisis and is likely not representative of how seriously it may have impacted consumer sentiment across the economy. It is crucial to consider a broad range of leading macro indicators, which at this juncture appear to be softening. One such measure on credit metrics points towards a potential economic contraction ahead. The latest April 2023 Senior Loan Officer Opinion Survey (SLOOS) indicates that loan approval standards have tightened and demand has softened across both commercial and industrial loans. Company management teams have also cited tighter lending conditions during this earnings season. These measures indicate some pressure on corporates, as credit tends to lead business activities by roughly six months according to historical records. Adding to the mix of less rosy earnings and stricter bank lending are the uncertainties and volatility in the markets created by the anticipated US debt ceiling. The US debt ceiling is a legislative limit on the amount of national debt that can be incurred by the US Treasury. The debt ceiling was established by the Budget and Impoundment Control Act of 1974. It has been raised or suspended 78 times since 1960. The most recent increase was in October 2021. Currently, the so-called “X-date”, the date by which the US government must raise or suspend the debt ceiling in order to continue borrowing money, is sometime in early June, if US Treasury Secretary Janet Yellen is to be trusted. The base assumption is that the X-date is possibly in June or July, leaving policymakers with a short runway to reach an agreement. The US debt ceiling is thus likely to become a major focal point for markets over the next few weeks, up to late July or August if an agreement is not reached before the estimated X-date. Political football is thus likely to come into play. At this juncture, there has been a meeting between US President Joe Biden and House of Representatives Speaker Kevin McCarthy on the issue, but no substantive progress has been made towards a resolution. If no agreement is reached, the US government will be unable to borrow money and will be forced to default on its debt. A default on US debt would have several negative consequences, including a decline in the value of the US dollar, an increase in interest rates, a decrease in economic growth and a loss of confidence in the US government. Readers with good memories will remember 2011, when the S&P 500 index fell 17% on debt ceiling concerns. It was one of those times when negotiations on the debt ceiling were infamously acrimonious, and we expect things to be no less challenging this time around. Taking into account the highly uncertain macroeconomic outlook, it may be sensible for investors to take a defensive stance, preferring investment-grade bonds and gold which are well-accepted assets that perform well in a recession. The US recession is an opportunity to deploy cash for the long-term investor. Notwithstanding the US debt ceiling issue, the US economy has been slowing down since the start of 2023, with 1Q GDP coming in at +1.1% and likely to slow further. The talk of a recession is centred on “when”, not “if”, a recession will happen. In our outlook, a shallow recession is in the pipeline sometime in the second half of the year. The US stock market is likely to be volatile in the near future. Investors should focus on companies with strong balance sheets and resilient cash flows.  For those looking at the US industrial and semiconductor sectors, a longer-term view is required when investing in these sectors, as they are likely to be impacted by the recession in the near term. The US banking sector is currently facing several challenges, including rising interest rates, inflation and the ongoing war in Ukraine. These challenges are likely to weigh on the sector in the near term. Investors should take a long-term view when investing in US banks, and they should focus on large US banks that are well positioned to weather the current storm and come out the other side stronger. So, back to the question at hand. A well-diversified portfolio tends to eliminate extreme types of returns. While a well-timed market entry is always great conversation during dinner parties, they tend to be few and far between. And if the question is asked, anyone with retirement savings in the Employees Provident Fund knows what it means to choose between a few stellar years of returns and other not-so-great ones. A return that is consistent, sometimes featuring boring numbers that range between 4.5% and 5.5% a year, is reason itself for a diversified portfolio. Michael Lai is executive director of wealth advisory (wealth management) at OCBC Bank (M) Bhd Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/618249

Digi.Com 1Q net profit down at RM236m from RM265m a year ago, pays 2.9 sen dividend

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KUALA LUMPUR (April 29): Digi.Com Bhd said on Friday (April 29) that its first-quarter net profit dropped to RM236.15 million from RM264.83 million a year earlier as revenue declined on lower prepaid segment income and as the group registered a tax rate increase from 24% to 33% due to the implementation of Malaysia's one-off Cukai Makmur or Prosperity Tax for 2022. The Prosperity Tax aims to finance the country's efforts to manage the Covid-19 health crisis. In a statement to Bursa Malaysia, Digi.Com said its group revenue fell to RM1.52 billion for the first quarter ended March 31, 2022 (1QFY22) from RM1.55 billion a year earlier. The mobile telecommunications network provider also declared its first interim tax-exempt dividend of 2.9 sen a share for FY22. The dividend's ex and payment dates fall on May 30 and June 24 respectively. "[During 1QFY22,] prepaid revenue declined by 3.9% year-on-year (y-o-y) and 1.6% quarter-on-quarter (q-o-q) to RM615 million as a result of weaker acquisition and demand for Internet passes and lower non-Internet usage. Digital revenue was down 25% y-o-y and 10.4% q-o-q to RM60 million as we reduced our focus on the lower-margin segment. "Postpaid revenue strengthened by 2.6% y-o-y and 0.6% q-o-q to RM633 million, driven by continued subscription growth and effective churn management," Digi.Com said. The company's number of subscribers in the postpaid segment rose, while its number of prepaid subscribers fell. "The postpaid segment sustained its growth momentum, expanding its subscriber base by 249,000 y-o-y and 42,000 q-o-q to 3.34 million users via quality acquisitions, a low churn rate and a growing base opting for attractive smart bundles and entry-level plans. "The prepaid base narrowed by 258,000 y-o-y and 119,000 q-o-q to 6.9 million in a highly competitive market, where Digi prioritised acquiring higher-value subscribers attracted by our leading network position," the company added. Looking ahead, Digi.Com said it remains focused on executing its strategic priorities to deliver on its 2022 guidance of returning to service revenue growth and sustained earnings before interest, taxes, depreciation and amortisation (EBITDA) while continuing to innovate and accelerate modernisation, expand its mobile telecommunications network and deepen its responsible business commitments. Looking back, the company said that in 1QFY22, "overall macroeconomic development improved with signs of recovery in retail and commercial activities,  supported by the opening of international borders". At 4.09pm on Friday, Digi.Com had slipped three sen or 0.78% to RM3.83, giving it a market value of RM29.8 billion. The company has 7.78 billion outstanding shares, according to the latest quarterly financial report.

https://theedgemalaysia.com/node/650843

FDI important but capital policies should not favour interest groups, says PM

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KUALA LUMPUR (Jan 6): The focus on attracting foreign direct investment (FDI) is important for Malaysia’s economy, but the Government should ensure that policies on capital do not favour interest groups. Prime Minister Datuk Seri Anwar Ibrahim noted that FDIs had contributed much to the country’s economy, especially in the 80s and 90s, helping to provide jobs, raise the people’s income, and generate revenue for the Government. “However, the country needs to make wise choices. What is the big revenue generation for? To build megaprojects, or to take care of the people’s problems in education, health, and basic infrastructure? “For me, attracting foreign investors is very important for Malaysia. Approvals must be fast, policies must be clear and must be pro-business, but we need to ensure that capital policies do not favour certain groups,” Anwar said in the Special Narrative with PM programme shown live on RTM. Anwar, who is also the finance minister, said the Government had a responsibility to ensure that the people are exposed to understanding government contracts, projects and policies. He reminded corporate leaders and companies that the Government bears a responsibility to take care of the welfare of the people and workers, besides generating economic growth. On strengthening Malaysia’s image on the international stage, the PM said he had received many positive reactions from Islamic countries, as well as Europe and China, following the transition of power in Putrajaya after the 15th general election. Anwar also said Malaysia needs to play a role in the Palestinian issue, as well as other global issues. Nevertheless, the initial focus of his administration will be on domestic issues, such as the country’s economy, job opportunities, the cost of living, and the people’s housing needs. “If I have to visit Indonesia, Brunei and other neighbouring countries, it is to strengthen the spirit of neighbourliness, which is done by every new leader,” he added.

https://theedgemalaysia.com/node/665236

Agmo — from reality-TV show winner to listed app developer

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This article first appeared in The Edge Malaysia Weekly on May 1, 2023 - May 7, 2023 ACE Market-listed digital solutions and applications development specialist Agmo Holdings Bhd has come a long way since it emerged a winner of a reality-TV show 11 years ago. In 2011, Agmo co-founders Tan Aik Keong, Tham Chin Seng and Steven Low Kang Wen had participated in e-government services provider MyEG Services Bhd’s (MyEG) Make the Pitch competition — a reality-TV show aired on NTV7 about Malaysian entrepreneurs pitching their innovative ideas to a group of potential investors to obtain financing. The trio had emerged a winner of the start-up programme in January 2012, securing an investment of RM300,000 from MyEG, which valued Agmo at more than RM1 million. “We pitched an idea called Masatu, which was a first-of-its-kind and location-based social networking and photo-sharing application. The app was based on augmented reality with a time capsule concept. It was quite a unique and high-technology app back in 2011,” Tan tells The Edge in an interview. At the time, mobile apps were just starting to gain in popularity, and the judges of Make the Pitch, including MyEG co-founder Wong Thean Soon, saw the potential of Masatu — or, to be more precise, the potential of what the three young entrepreneurs could achieve. “Initially, it wasn’t really our intention to make Agmo an app developer. We wanted to be the Facebook of Southeast Asia, but it was tough to build traction. So, we pivoted,” says Tan, who is CEO of the company.  In 2012, Agmo was officially incorporated, with Masatu being its maiden consumer mobile app. A year later, it secured mobile app development projects from several notable companies, as well as its first web app project. Tan, Tham and Low have not looked back since. Today, Agmo is a Bursa Malaysia-listed technology firm with a market capitalisation of RM208 million, having developed more than 100 apps. Tham is its chief technology officer and Low its chief operating officer. Collectively, the trio owns 40.9% equity interest in the company.  MyEG, which was a pre-initial public offering (IPO) investor of Agmo, recognised an investment gain of RM61.9 million, following the listing of Agmo. Last December, MyEG announced its plan to distribute all of its 84 million shares, or a 25.8% stake, in the company by way of dividend-in-specie to its shareholders. The dividend-in-specie is in the process of being distributed in two tranches. The first tranche, involving 69.7 million shares, was completed in March. The second, involving the remaining 14.2 million shares, is expected to be completed in August. As a result of the dividend-in-specie, MyEG’s Wong has become a direct shareholder of Agmo, with a 10.8% stake. Considering that the second tranche of dividend-in-specie has yet to be completed, MyEG remains a shareholder of Agmo, with a 4.4% stake at the time writing. Since its listing on Aug 18 last year, Agmo has seen its share price gain 138% to settle at 62 sen last Wednesday, up from its IPO price of 26 sen. The counter hit a record high of RM1.01 on Sept 12 last year, before paring its gains to the current level. Tan says it has been an exciting journey for Agmo since its IPO last August. “The listing exercise has raised our corporate profile. Before the IPO, we employed about 130 people. Today, we have expanded our team by 30% to more than 170 employees. We are aiming for a workforce of 220 to 230 by the end of this year. We are now halfway there in meeting the recruitment targets.” Headquartered at MYEG Tower, Empire City Damansara, Agmo also operates its subsidiaries’ offices in Puchong and the Mid Valley area. While it is difficult to hire good talent, Tan believes this is a good sign, as it shows that the market is in high demand. More than 98% of the group’s talent comprises Malaysians, who include front-end and back-end developers, research and development engineers and designers. He says: “Agmo is an asset-light software company. Our operating expenses are mainly for human talents and computers. We don’t have a data centre to store data; everything is on the cloud. Our prominent customers include Petronas, Pos Malaysia, CTOS and Shangri-La Asia,” he says. Notably, the company has launched Agmo EV Dashboard, a tool that helps charge point operators plan the installation of their next charging station, by employing a data-backed scientific approach, as well as leveraging AI and big data analysis. Meanwhile, to cater for the electric vehicle (EV) consumer market, it has developed the Agmo EV SuperApp, which allows EV users to locate the nearest charging stations in Malaysia and could help them with route planning while reducing “range anxiety”. Tan believes Agmo EV Dashboard can help the charge point operators maximise their return on investment, and he hopes the Agmo EV SuperApp will become the go-to mobile app for Malaysian EV owners. “Being an EV user myself, I must download 12 to 13 apps just to survive with an EV in Malaysia. I need an app to find a charging station and another app to plan my route, and different apps are required for different charge point operators. It’s so fragmented; that’s why we see a gap that provides with us a great opportunity to build a super-app,” he says. A super-app is a mobile or web application that can provide multiple services, including payment and financial transaction processing, effectively making it an all-in-one online platform that embraces many aspects of personal and commercial life. Notable examples of super-apps include Alipay, Tencent Holdings Ltd’s WeChat in China, and Grab in Southeast Asia. By partnering with Alibaba Cloud, Agmo plans to fully launch the Agmo EV SuperApp by the middle of this year, says Tan. “This will be a one-stop solution for all EV users. We believe this business model is highly scalable. So, how do we make money from this app? Our next phase is to support payment infrastructure. Just like a payment gateway, we will be charging a merchant discount rate (MDR). “In simpler terms, you could say that Agmo plans to become an ‘e-wallet player’ in the EV space. By utilising data analytics tools, our app could help drive traffic to our charge point operators’ EV charging stations. The more people use their EV charger, the more revenue we could derive from the MDR,” he explains. Agmo generated net profit of RM6.47 million on revenue of RM19.98 million in the nine months ended Dec 31, 2022 (9MFY2023). The group has three core businesses: development of bespoke digital solutions; provision of digital platform-based services; and provision of subscription, hosting, technical support and maintenance services. “We develop bespoke digital solutions for our clients under our main business division, whereas we develop our own Agmo solutions under our digital platform division. As for the hosting and technical support division, we are the reseller partners for cloud service providers and hyperscalers, while ensuring our customers’ solutions are always up and running,” says Tan. Agmo’s bread-and butter is bespoke digital solutions, which contributes about 80% of the group’s revenue, whereas two other business segments contribute 10% each on average. “We hope our digital platform division, along with our hosting and technical support division, can collectively contribute 30% to 40% to our group’s revenue in the next three to five years,” he says. Tan says Agmo hopes to achieve a top-line growth of 40% to 50% in the financial year ended March 31, 2023 (FY2023) and FY2024, while it is looking to maintain its net margin around 30% for FY2024. “The growth rate is an internal target. Although it’s not a formal forecast, we believe we can comfortably achieve it, given our current order book and recurring revenue.” Tan adds that Agmo aims to migrate to the Main Market of Bursa Malaysia but has not set a timeframe for it.    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/634463

商业银行业务推动 丰隆金融末季净利增18%

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（吉隆坡30日讯）受商业银行部门丰隆银行（Hong Leong Bank Bhd）业绩推动，丰隆金融集团（Hong Leong Financial Group Bhd）第四季净利按年增长18%。 该集团今日向大马交易所报备，截至6月杪2022财政年末季净利达6亿7468万令吉，或每股59.5仙，高于上财年同期的5亿7337万令吉，或每股50.6仙。 该集团表示，保险和投资银行业务的贡献则下降。 末季净利息收入从9亿3809万令吉，微升1.2%至9亿4968万令吉。 该集团宣布派发每股31仙的终期股息，全年为46仙，相比2021财年末季的29.2仙和全年的40仙。 丰隆金融在2022财年净赚24亿5000万令吉，较同期的22亿6000万令吉，上扬8.3%，而净利息收入由35亿6000万令吉，攀8.4%至38亿6000万令吉。 休市时，该股跌22仙或1.13%，至19.30令吉，市值达221亿5000万令吉。   （编译：陈慧珊）   English version：Hong Leong Financial Group 4Q earnings up 18%, driven by commercial banking segment

https://theedgemalaysia.com/node/672026

Ex-Treasury sec gen says voice in four recordings sound like Najib's

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KUALA LUMPUR (June 21): Former Treasury secretary general Tan Sri Dr Mohd Irwan Serigar Abdullah has verified former prime minister Datuk Seri Najib Razak’s voice in four audio recordings during the 1Malaysia Development Bhd-Tanore (1MDB-Tanore) trial at the High Court here on Wednesday (June 21). Deputy public prosecutor Ahmad Akram Gharib had asked the 42nd prosecution witness in the trial to verify Najib's voice in the phone call recordings, which were played in court before judge Datuk Collin Lawrence Sequerah. After listening to the first three recordings, Irwan said that while he was not present when the conversation took place, one voice "sounds like" Najib and the other sounded like a Middle-Easterner, but he was not sure who it was. Likewise for the fourth recording, Irwan said he was not present during the conversation, but one of the voices sounded like Najib, while the other was like the ex-PM's former aide Datuk Amhari Efendi Nazaruddin. During proceedings earlier, Sequerah had allowed the admission of the recordings as evidence, making the decision on an application which was argued last year. The four recordings were part of multiple audio clips that were made public by former Malaysian Anti-Corruption Commission (MACC) chief commissioner Latheefa Koya in January 2020. They purportedly feature Najib and other 1MDB-linked individuals. The prosecution argued last year that the recordings were crucial to supporting their rebuttal of Najib's claim that the money was donated by Saudi Arabian royalty. They said the recordings should be admissible under Section 41(A) of the MACC Act and that it is a "special provision" which takes precedence over Section 65 of the Evidence Act which deals with documentary evidence. However, Najib’s lawyer Tan Sri Muhammad Shafee Abdullah also argued last year that admitting the recordings would impinge on Najib's right to a fair trial. Shafee said the prosecution's reliance on Section 41A of the MACC Act for the admission of the audio was too "simplistic" and "demolishes all the safeguards" in the Evidence Act 1950, thus impacting Najib's right to a fair trial. In the 1MDB-Tanore trial, Najib — who is currently serving his 12-year jail sentence after having been convicted for graft involving 1MDB's former subsidiary SRC International Sdn Bhd — is facing four charges of abuse of power for enriching himself with RM2.3 billion of 1MDB funds said to have been siphoned off through Tanore Finance Corp, and 21 counts of money laundering of the same amount. He could face a fine and up to 20 years' imprisonment if convicted. The trial is set to continue on July 7. The Edge is covering the trial live here. Users of The Edge Markets app may tap here to access the live report. Read also: 1MDB-Tanore trial: Najib paid former speechwriter more than RM22 mil

https://theedgemalaysia.com/node/666756

IT6

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IT6

https://theedgemalaysia.com/node/652381

立艺企业携手印尼公司 5月推新的互联网电视服务

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（吉隆坡19日讯）立艺企业（Digistar Corp Bhd）与印尼多元集团PT MNC Asia Holding Tbk合作，为马来西亚酒店和住宅市场提供互联网电视服务。 立艺企业通过子公司Panorama TV Asia Broadcast私人有限公司，今日与MNC签署合作协议，计划于今年5月推出这项服务，主要针对酒店和医疗中心。 立艺企业创办人兼总执行长拿督威拉李华中在签署仪式上表示：“我们希望同时为商业和国内家庭市场推出这项服务，但我们将看看进展如何，距离正式推出还有4个月的时间。” 根据这份为期15年的协议，MNC将向Panorama TV客户提供Android机顶盒。 立艺企业持有Panorama TV 60%股权、Muhammad Hamka Mohd Ali拥有20%，而Azman Yusoff和Ong Fee Chong各持10%。 间接持有公司26%股权的李华中预计，这个拥有40个频道内容，价格从10令吉起的新互联网电视，将因其实惠价格而振奋业界。 “我们的目标是在5年内拥有100万活跃用户，并在大马每个州属开设支援中心。” MNC执行主席Hary Tanoesoedibjo认为，考虑到目前有200万到300万印尼人居住在大马，5年内100万订阅目标相当保守。 “这里有200万到300万印尼人，假设我们攫取其中的20%左右，我们就非常接近目标了。” 他补充，该项目所需的投资可能微不足道。 他解释说：“成本主要是（Android）机顶盒，因为我们已经有内容，所以投资可能非常低。” 休市时，立艺企业平盘挂于9.5仙，市值为4311万令吉。   （编译：陈慧珊）   English version：Digistar partners Indonesia's MNC Group to roll out new internet TV services in May

https://theedgemalaysia.com/node/677114

AMMB says in talks with Great Eastern over MetLife Malaysian arm sale

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KUALA LUMPUR (Aug 2): AMMB Holdings Bhd has begun preliminary discussions with Great Eastern Holdings Ltd over the sale of MetLife Inc’s Malaysian venture. The transaction could value AmMetLife Insurance Bhd, which the US company jointly owns with Kuala Lumpur-listed AMMB, at US$250 million (RM1.13 billion) to US$300 million, said Bloomberg, citing people familiar with the matter. In a bourse filing on Tuesday (Aug 1), AMMB said the discussions are part of its business review. "It is crucial to note that these talks are still at a very preliminary stage. At this juncture, there is no certainty that we will enter into any definitive or binding agreement," it said. It was reported on Monday that Great Eastern is in talks to buy MetLife’s Malaysian venture. The subsidiary of Oversea-Chinese Banking Corp is conducting due diligence on AmMetLife and seeking regulatory approval to clinch the deal, said the people. On Wednesday, AMMB said it is committed to abiding by the exacting disclosure requirements that it is governed by. "Accordingly, any and all announcements related to this matter will be made in strict accordance with the Main Market Listing Requirements of Bursa Malaysia Securities," it said. At the midday break, AMMB slipped eight sen or 2.09% to RM3.75, with 886,700 shares traded. Read also: OCBC’s Great Eastern in talks to buy MetLife Malaysian arm, sources say

https://theedgemalaysia.com/node/669100

Cover Story: RED FLAG FOR EXPORTS: Further contraction ahead

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This article first appeared in The Edge Malaysia Weekly on May 29, 2023 - June 4, 2023 THE softness in global trade has been apparent since the last quarter of 2022, extending into the first quarter of 2023. In Asean, this can be seen in the external trade data — specifically in export growth — where the impact is more pronounced in some countries than others. The deceleration in export growth can be attributed to a combination of factors. For one, Asean is a key producer of the world’s electronic components, so a slowdown in the sector produces a huge effect. After all, the sector accounts for between 20% and 50% of the total value of exports in most Asean countries. “Asean’s exports have been falling substantially and a large part of the story is due to the cooling electronics trade cycle, which many Asean economies are sensitive to,” says HSBC Asean economist Yun Liu in an email reply to questions from The Edge. Meanwhile, for many Asean countries, exports to China are seen slowing because the country’s economic recovery is looking more muted than expected, casting a pall over export expectations. Furthermore, there is the high base effect, which is weighing on numbers this year after a strong showing in 2022, following the reopening of borders. However, while the general trend has been that of a contraction in exports year on year among the major Asean economies of Indonesia, Malaysia, Singapore, Thailand, the Philippines and Vietnam, the severity differs from country to country. Looking at the data, countries with a large exposure to the electrical and electronics (E&E) sector have seen their exports fare badly — which is the case for all these countries. Singapore, for example, has seen its non-oil domestic exports (NODX) shrink for seven consecutive months since last October, while its electronic NODX has been in negative territory since August 2022. In the latest update, April NODX fell 9.8% y-o-y while the electronic NODX contracted 23.3%.   The city state’s main exports from the E&E sector are integrated circuits, which have declined steeply in recent months. Meanwhile, Thailand’s exports tumbled from October 2022 to March 2023 with the worst fall seen in December 2022 (down 14.6% y-o-y). Nevertheless, the contraction narrowed in 1Q2023 (easing to 4.2% by March. Apart from having a foothold in the semiconductor sector, Thailand is known for being the largest production base for the electrical appliances sector and is also a manufacturing hub for the automotive sector. Vietnam, which was the outlier economy in 2022 with its stellar GDP growth of 8%, is also seeing its exports shrink. These have contracted for five months, falling 17.1% y-o-y in April. Telephones and components, computers, electronics and components as well as machine, equipment, tools and instruments make up slightly more than 40% of the country’s total exports. It is also a main exporter of textiles, garments and footwear. There was a weakness in the country’s April exports in the telephone and components, textiles and garments as well as computers, electronics and components sectors. The Philippines has seen exports contracting year-on-year since December 2022. In March 2023, exports contracted 9.1%, a smaller decline than the 18.1% in the previous month. Exports of electronic products, its main export product, contracted 12% from a year earlier. Notably, electronic products exports make up about 53% of total exports for March. As for Malaysia and Indonesia, their exports have shrunk for the least number of months so far — thanks to their commodities. In Indonesia, which is reliant on commodity exports such as palm oil, coal and nickel, exports contracted 11.6% in March this year but fell a sharp 29.4% in April. The decline was due mainly to commodity prices weakening from a year ago. Prices are normalising, following the commodity boom in the last two years. On top of that, Indonesia’s coal exports declined in volume as its largest trading partner, China, cut back on coal imports in line with its zero-emissions policy, according to the country’s official statistics body Statistics Indonesia. In Malaysia, exports contracted 1.41% in March but by 17.4% in April. The country managed to avoid a contraction earlier on, possibly because of the diversified nature of its exports, although E&E products make up 38% of the total. Malaysia’s export data for April was worse than expected as there was a contraction across all economic sectors and almost all products, except for refined petroleum. UOB Research says this was because of a shorter working month, a year-ago high base effect, lower commodity price earnings and dimmer global growth prospects. So far, the export performance of Malaysia and Indonesia has been fairly resilient compared with that of the rest of Asean, mainly because as key commodity exporters in Asia, they have benefited from elevated global commodity prices. However, it is hard to say if this trend will continue, with commodity prices normalising and demand softening. HSBC’s Liu says Malaysia has generally been more resilient, even in terms of its electronics shipments because the country has gained substantial market share in specific semiconductor products, thus partly offsetting some external weakness. Malaysia’s overall exports have also been supported by such segments as petroleum products and optical equipment, despite its large exposure to the E&E sector, says UOB Malaysia Bhd’s senior economist Julia Goh. Having said that, Malaysia and Indonesia could experience deeper contractions ahead, says OCBC Bank’s economist Lavanya Venkateswaran, on account of the “double-whammy” effect of slowing commodity prices and subdued global demand as economic growth in key trading partners remains constrained. She sees contractions in export growth persisting for Singapore, Thailand, Indonesia, Malaysia and the Philippines through 3Q2023, albeit at a slower pace. Given how entrenched E&E exports are for many Asean economies, the global electronics cycle is an element that is being closely watched. HSBC’s Liu says high-frequency indicators are pointing to stabilisation in the global electronics cycle, although she does not think Asean is out of the woods yet, as a meaningful rebound in electronics shipments will take time. Optimists are convinced that the electronics cycle has bottomed out, indicating that exports for that sector could recover later this year. This conviction stems from global semiconductor sales in March 2023 rising for the first time since May 2022. In March 2023, worldwide semiconductor sales rose 0.3% from the previous month, according to the Semiconductor Industry Association (SIA). Similarly, OCBC’s Lavanya sees the global electronics cycle bottoming-out towards 4Q2023, giving the electronics exports of Singapore, Malaysia and the Philippines a much-needed boost and lifting overall export growth only in 4Q2023 and into 2024. “As for Indonesia, a recovery in exports will largely depend on commodity prices,” she says, adding that prices are expected to remain subdued through this year. Lavanya also expects Thailand’s exports to recover only in 2024. She believes Indonesia’s and Thailand’s export recovery is likely to lag that of their regional peers. For now, with expectations of slowing external demand and weaker commodity prices, Asean exports are likely to continue to contract. “Some resilience in intra-Asean trade may come through in the second quarter of 2023 as domestic demand in the region holds up better than export growth. But this will be more than offset by slowing demand in major global centres,” says Lavanya.    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/600129

Trailblazing with originality and biodiversity

English

This article first appeared in City & Country, The Edge Malaysia Weekly on December 20, 2021 - December 26, 2021 A stroll in the scenic 810-acre township of Gamuda Gardens in Rawang, Selangor, is both soothing and experiential. Surrounded by the hilly terrain of Klang Valley North that includes cascading waterfalls, the township is rich with biodiversity, with many types of flora and fauna documented there: 96 plants, 48 birds, 11 mammals, eight reptiles and 14 insects (which includes four fauna and two flora species of conservation importance). By showcasing green and sustainable qualities that are part of Gamuda Land’s DNA and offering a host of socioeconomic benefits, Gamuda Gardens ticked all the boxes and qualified as one of the winners of the Property Development Excellence Award at The Edge Malaysia Property Excellence Awards 2021. The award recognises successful large property developments that have made a significant impact and become a catalyst for growth while contributing positively to the vibrance of an area. Gamuda Land chief operating officer Aw Sei Cheh gives City & Country an update on the township in a virtual interview. Due for completion in 2030, about 190 acres of Gamuda Gardens have been developed. “The current overall take-up rate for our ongoing projects there is about 80%,” says Aw. Gamuda Gardens has a gross development value (GDV) of RM10 billion. There are five phases comprising 6,000 units, including high-rise units. Village Homes, which was handed over in October, is projected to be half occupied by year end. In January this year, the company launched The Waterfront Village, a lifestyle retail hub facing the 50-acre pet-friendly Central Park, with conveniences such as a grocer and dining options.  This month, it is launching Gardens Square, “a vibrant commercial hub that emphasises climate-responsive features, pedestrian-friendly and car-free streets, spaces for healthy alfresco community building in the new normal and electric-vehicle charging stations, with photovoltaic (PV) panels providing renewable energy for operational needs”, says Aw.  Gardens Square will comprise 133 units of 2- and 3-storey offices and shoplots, with built-ups from 666 to 6,737 sq ft and land sizes from 22ft by 43ft.  “We have signed a memorandum of understanding with a well-known grocer and drive-through fast food franchise as anchor tenants, which we will announce soon,” he says, adding that the grocer will occupy 20,000 sq ft of Gardens Square. Meanwhile, Jovita and Joya, comprising 429 double-storey link, superlink and semi-detached homes, will be completed in 2022, as will Gaia Residences, the township’s serviced apartments built using Gamuda’s Digital Industrialised Building System. “Illaria, our hillside homes designed for post-pandemic needs, has seen an 90% take-up to date, with targeted completion and handover by 2023,” says Aw. Another notable upcoming phase is Monarc, which will comprise 16 bungalows and 78 semi-detached units with prices from RM1.6 million for semi-detached units. The built-ups are from 6,000 to 6,300 sq ft (with 5+1 bedrooms) and land sizes from 36ft by 80ft. Targeted to be launched in the first half of 2022 and completed by 2025, Monarc is the debut offering in Gardens Esteem, the first luxury precinct in Gamuda Gardens with lake-fronting bungalows. Aw highlights the township’s target market and catchment areas. “Gamuda Gardens will cater for the higher end of the market, specifically high-income and upper-middle-income purchasers, comprising owner-occupiers and upgraders from Kuala Lumpur and Petaling Jaya. “Earlier phases catered for the middle-income group, with bread-and-butter products, as well as Rumah Selangorku housing for those in the lower-income bracket.” According to Aw, the residents’ feedback has been encouraging. “We do try to stay in touch with them via our mobile app, GL Lifestyle, and so far, they are mostly happy with their purchase. In the event that they encounter any issues, we try to be hands-on in solving the issues.” The developer is targeting a population of 340,000 for Gamuda Gardens by 2023. “This is complemented by surrounding communities such as Bandar Tasik Puteri and Rawang, which are driving economic and population growth. The burgeoning residential demographics of the Klang Valley’s northern development corridor present commercial opportunities for business operators and entrepreneurs,” says Aw. Gamuda Land is leveraging the launch of Gardens Square, built for sustainability from the ground up, to enhance the commercial vibrance of the township and surrounding community. “We are doing our part to drive job creation and economic growth as Malaysia recovers from the Covid-19 pandemic,” he says. “We are also driving sustainable growth and price appreciation with a range of vibrant placemaking activities that position Gamuda Gardens as the ‘Pulse of Klang Valley North’.” This will bring together diverse entertainment and lifestyle amenities such as Malaysia’s first luge theme park, Skyline Luge, which will cater for 1.1 million rides annually; Curve Ziplines; enhanced Big Bucket Splash water play park for families; lifestyle retail; and GParks Nature School, all of which are expected to materialise from 2023, he adds.  These initiatives are part of Gamuda Garden’s Adventure hub (31.88 acres) and Work & Wellness hub (18.07 acres). There are a number of sustainable features that the developer deems as distinctive and have contributed to Gamuda Gardens’ success. One of them is the Central Park, which was transformed “from a monocultural rubber plantation into a biodiverse parkland” by Gamuda Parks, the developer’s initiative that manages the implementation of natural elements across its townships, says Aw. Gamuda Parks has brought in 22 species of conservation importance and planted more than 5,000 trees in the Central Park alone, he adds.  The developer is planting #OneMillionTrees across its townships and communities by 2023. “To date, more than 25,900 trees have been planted in Gamuda Gardens. We ensure our planting efforts are sustainable through the use of advanced tree planting in nurseries located on our site, where seedlings are grown ahead of time for planting, enhancing their viability,” says Aw. “By planting with the Miyawaki technique, we produce dense urban forests by encouraging healthy competition and reproducing forest canopy and ground layers in our ecosystems,” he adds, referring to the quick afforestation method developed by Japanese botanist Akira Miyawaki in the 1980s.  There are also solar PV panels with a capacity of 310kWp built into Gamuda Gardens’ sales gallery and badminton hall. “This renewable energy is utilised in the Central Park’s fountain and waterfall, with excess electricity going to the sales gallery,” says Aw.  Another green element is sustainable mobility for resilient community building while reducing the community’s carbon footprint, which includes a 5.5km loop for jogging, walking and cycling and interconnected walkways to facilitate access to residential spaces. “We are mindful of placemaking, with everything within reach to reduce transport emissions while maximising convenience for homeowners and residents. We also integrate permeable pathways throughout Gamuda Gardens [and Gamuda Land townships] to reduce emissions from concrete use while managing surface runoff,” says Aw. “The Gamuda Green Plan 2025 itself was launched on World Environment Day, June 5, 2021, as a comprehensive group-wide framework that charts tangible targets for Gamuda Group in terms of environmental, social and governance (ESG) dimensions over the next five years.” He notes Gamuda Gardens’ noteworthy level of accessibility. “Every place is centrally located with interconnectivity in the township’s masterplan while encouraging sustainable modes of transport such as biking, walking and shuttle services, maximising convenience for homeowners and residents, while reducing our carbon footprint and driving value creation. Another highlight of the township is Gardens Wellness, a one-stop fitness hub with an Olympic-length swimming pool, badminton courts and a dance studio, among others.  Gamuda Land intends to position Gamuda Gardens as the elevating feature of Klang Valley North, distinguishing it from the surrounding offerings through an emphasis on premium products. The launch of Gardens Esteem, one of the luxury precincts in Gamuda Gardens, as well as Monarc, its debut offering comprising 94 bungalows and semi-detached homes, is the first step. “We are launching the Gardens Esteem Lounge specifically to cater for high-net-worth individuals, along with the launch of Monarc in 2022. We are confident of this positioning despite recent market impacts, as our sales have stabilised to nearly pre-pandemic levels. In addition, the purchasing habits of the high-net-worth group show less vulnerability to large market fluctuations,” says Aw. He adds that the Covid-19 pandemic has given Gamuda Land the opportunity to review and reset its five-year business plan, with an eye on diversification. It is targeting a compound annual growth rate of at least 20% in sales and earnings and will continue to diversify its portfolio with high-value, low-risk acquisitions and projects overseas. “Following more than a year of lockdown, we are optimistic about the outlook for the property market as the vaccination rate increases, economic activities resume and borders reopen. We aim to roll out more products with attainable price points in the township,” says Aw, noting that 95.4% of the adult population in Malaysia have been vaccinated.  “As with all our townships and vertical communities, Gamuda Gardens delivers on our brand promise as a sincere, responsible and original town-maker, with a focus on crafting places that people will call home, want to be a part of and can grow up and grow old in,” he says. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/671668

Apex Equity's largest shareholder fails to nominate directors to the board

English

KAJANG (June 19): Apex Equity Holdings Bhd’s single largest shareholders Fun Sheung Development Ltd has failed in its attempt to appoint three directors to the board despite owning 15.78% stake. Fun Sheung’s nomination of three directors — namely Quintin Jeyaraj Vello, Lim Tian Huat and Hong Kim Heong — received 45% of shareholders’ support here at the group’s annual general meeting, while 55% voted against. Fun Sheung was among a few other substantial shareholders in Apex controlled by the late Lim Siew Kim — daughter of Genting group founder Tan Sri Lim Goh Tong — prior to her passing last year. These companies, including Fun Sheung, Yenson Investments Ltd, Pinerains Sdn Bhd and Cergas Megah Sdn Bhd, are estimated to collectively hold about 32.28% shareholdings in Apex. Meanwhile, incumbent directors who offered themselves for re-election received 55% of support from shareholders here on Monday (June 19) while 45% of them voted against. Those re-elected were group executive chairman Farhash Wafa Salvador, executive directors Datuk Leong Wai Leng, Lim Kok Eng, independent non-executive directors Woon Wai En and Rozana Shamsuddin. Speaking to The Edge after the AGM on Monday, executive director Lim Kok Eng said management’s focus going forward is on sustaining the group’s profitability amid ongoing competitive market conditions.  “Now we have the executive directors who actually [are capable of] managing the company, to provide leadership and direction for the company,” he said when asked about the group’s leadership void since the passing of founder Chan Guan Seng in 2018.  Kok Eng also maintains that the current board of directors are independent from Apex former shareholder ACE Group.  “I think it is quite clear that we are independent, because in the current AGM, new shareholders also voted us in, that [connection with ACE Group] was our past,” he said.   Apex AGM on Monday is the first following Siew Kim’s death and exit of ACE Group after the divestment of its stake in the open market, followed by the emergence of two active corporate players in its top 30 largest shareholders – Datuk Seri Jacky Pang Chow Huat of Sanichi Technology Bhd and Datuk Eddie Ong Choo Meng of Hextar Group.  In mid-December last year, ACE Credit (M) Sdn Bhd, a part of the ACE Group, had disposed of the bulk of its stake in Apex Equity, days after the Securities Commission Malaysia (SC) went to court to block ACE Credit from taking control of Apex Equity. ACE Credit had on Dec 9 ceased to be a substantial shareholder in Apex Equity after disposing a 13.34% stake, in the open market.  The new and notable Apex Equity shareholders, namely the Hextar family members and their business associates, Pang and his associates, and Proven Venture Capital, controlled 18.58% of Apex Equity as at end-March.  With sufficient shareholders’ backing, Kok Eng said Apex's main challenge today is addressing market competition.   “Our competitors are offering between five to eight basis points [of brokerage fee]. Our is 10 basis points; it is going to be very challenging,” he said.   Therefore, Kok Eng said Apex will not be competing with peers in terms of near-to-zero brokerage fee, but will instead focus on providing quality advisory to premium customers, while trying to develop robo-advisory for the mass market.  Apart from that, Kok Eng said Apex will also conduct rebranding activities to provide a fresh market image to customers, while expanding its market presence beyond its five branches in Malaysia currently.  “Currently we are in Kajang, Petaling Jaya, Penang, Johor Bahru and Puchong, we hope to establish presence in another five cities and grow our team of remisiers to over 100 next year. Today we have about 80 remisiers,” he said.  Read also: Eddie Ong, Jacky Pang surface among Apex Equity's top 30 shareholders Apex Equity's largest shareholder nominates three directors to board Lim Goh Tong’s daughter Siew Kim’s will in dispute  

https://theedgemalaysia.com/node/607317

IMF料大马2022年经济增长5.75%

English

（吉隆坡14日讯）大马经济将逐步复苏，2021年实际国内生产总值（GDP）增长率为3.1%，预计2022年将加速至5.75%左右，这要归功于当局推行的新冠疫苗计划及迅速实施经济政策等支持措施。 国际货币基金组织（IMF）昨日表示，尽管如此，大马经济复苏仍将不均衡，因为存在经济严重疲软及中期大流行相关风险。 IMF小组建议，向脆弱和受严重打击的经济部门和生产性投资提供更多短期有针对性的财务支援。 IMF表示，短期支持应与以预算改革为基础的中期财政整顿计划相结合，以重建缓冲并保障可持续性。 IMF还指出，宽松的货币政策立场是适当的。 IMF表示，金融领域的支持措施应继续更具针对性，并应随着复苏巩固而逐步取消。 IMF的Lamin Leigh透露，协调和有针对性的结构性改革政策，将有助于解决长期存在的结构性挑战，包括加强社会安全网、限制经济创伤和增强经济韧性的必要性。 Leigh表示，在短期内，财政政策应继续保持灵活和更具针对性，重点是进一步支持经济复苏，最大限度地减少经济创伤，保护人口中的弱势群体，并扩大生产性投资，与当局的“支出优先事项”保持一致。   （编译：魏素雯）   English version：Malaysia's economic growth projected to rise to 5.75% in 2022, says IMF

https://theedgemalaysia.com/node/672114

Wall St drops as Powell doubles down on inflation fight

English

(June 21): Wall Street's main indexes fell on Wednesday, with the Nasdaq leading declines, as Federal Reserve Chair Jerome Powell struck a hawkish tone in his congressional testimony, while Tesla fell the most among megacap stocks. Powell told lawmakers that the central bank was undeterred from its goal to bring inflation down to the 2% target and, despite a recent pause in rate hikes, officials were in agreement borrowing costs would likely still need to move higher. A majority of money market participants expect only one rate hike of 25 basis points in July by the central bank for the rest of the year, according to CMEGroup's Fedwatch tool. "We just ran too far, too fast and comments from Powell spooked the market because he doesn't come off as he's done," said Dennis Dick, market structure analyst at Triple D Trading. "The market would really like the Fed to indicate that (the rate-hike cycle) is closer to the end than what (Powell) indicated today." Megacap companies came under pressure as yields on the two-year and 10-year treasury notes, which move in line with interest rate expectations, rose marginally after Powell's comments. Tesla fell 4.2% after Barclays downgraded the EV maker to "equal weight" from "overweight." Five out of the top 11 S&P 500 sectors fell, with the rate-sensitive tech sector .SPLRCTdropping 1.7% to over a week's low. Following a tech-induced rally over the past few weeks, Wall Street's top indexes fell as investors booked profits amid worries of weakening global demand. Still, the benchmark S&P 500 has advanced around 14% so far this year and the CBOE market volatility index is hovering near pre-pandemic lows. FedEx, seen as a US economic bellwether, slipped 1.2% after posting a decline in quarterly earnings. At 12.05pm ET, the Dow Jones Industrial Average was up 2.35 points, or 0.01%, at 34,056.22, the S&P 500 was down 17.73 points, or 0.4%, at 4,370.98, and the Nasdaq Composite was down 166.74 points, or 1.22%, at 13,500.55. Meanwhile, Goldman Sachs said if a US recession becomes more likely, investors should maintain upside exposure to equities by using options to hedge a potential 23% fall in the S&P 500 index. Crypto firms, including Coinbase, Riot Platforms, Marathon Digital and Bit Digital, rose between 2.6% and 9%, tracking an uptick in bitcoin prices, which hit their highest levels in more than two months. Declining issues outnumbered advancers for a 1.06-to-1 ratio on the NYSE and a 1.61-to-1 ratio on the Nasdaq. The S&P index recorded 14 new 52-week highs and no new lows, while the Nasdaq recorded 55 new highs and 91 new lows.

https://theedgemalaysia.com/node/607487

Malaysia's Covid-19 R-nought at 1.38 as of Feb 14, says Health DG

English

KUALA LUMPUR (Feb 15): The basic reproduction number (R-nought or R0) of Covid-19 infections in Malaysia climbed up to 1.38 on Monday (Feb 14), according to Health director-general Tan Sri Dr Noor Hisham Abdullah in a tweet on Tuesday. R0, an indicator of how contagious the infection is, shows the average number of people who will contract the disease from a single infected person. Among the states, Selangor's R0 stood at 1.32, followed by Sabah (1.56), Penang (1.43), Johor (1.33), Kelantan (1.34), Melaka (1.23) and Kuala Lumpur (1.23), Labuan (1.94), Putrajaya (1.28), Negeri Sembilan (1.29), Kedah (1.40), Pahang (1.36), Perak (1.26), Terengganu (1.35), Sarawak (1.56) and Perlis (1.41).

https://theedgemalaysia.com/node/667797

PIE Industrial 1Q net profit shrinks 27% as higher costs, impairments and provisions eat into profitability

English

KUALA LUMPUR (May 19): PIE Industrial Bhd registered a net profit of RM14 million in the first quarter ended March 31, 2023 (1QFY2023), a 26.67% decline from RM19.10 million a year prior, despite registering a higher revenue for the quarter under review. “The decrease was mainly attributable to higher administrative and distribution expenses, provision for slow-moving inventories and impairment of trade receivables in the current quarter,” said the electronic manufacturing services (EMS) company. Administrative and distribution expenses increased 29.65% to RM7.38 million in 1QFY2023, from RM5.69 million, while impairment of trade receivables jumped nearly nine times to RM401,000 in 1QFY2023, from RM47,000 a year ago. Inventories written down stood at RM404,000 in 1QFY2023, versus the reversal of inventories write-down worth RM2.06 million a year before. Meanwhile, foreign exchange gains swelled to RM6.85 million, from RM1.97 million a year ago. As a result, the company posted earnings per share of 3.55 sen in 1QFY2023, from 4.9 sen per share a year ago. Quarterly revenue rose 24.52% to RM332.45 million, from RM266.98 million a year before, mainly attributable to higher demand from new and existing customers for electronics manufacturing, but partly offset by lower revenue from raw wire and cable and wire harness products. Prior to the announcement of the 1QFY2023 result, PIE Industrial had on Monday (May 15) declared a dividend per share of seven sen — consisting of a dividend of five sen and a special dividend of two sen — to be paid on June 20, 2023.  On prospects, PIE Industrial said orders are expected to remain strong from its existing customers in the EMS activities. The group also remains optimistic about engaging potential new customers mainly in the server, medical and consumer industries. In order to accommodate new business opportunities, two of its existing plants are undergoing major renovation and expansion and are expected to be ready for production in the third quarter of 2023 and the first quarter of 2024 respectively. Furthermore, installation of solar panels in five plants for green electric energy generation has kickstarted, which will mitigate the rising electricity cost. The solar panels are expected to be completed by the end of 2023, it noted.    PIE Industrial also expects the revenue from the manufacturing activity of raw wire and cable to continue to grow, with a consistent profit margin in the near future. Meanwhile, it also expects the revenue from its Thailand operations, Pan-International Electronics (Thailand) Co Ltd (PIT), to increase as more orders are expected to be transferred from PIE Industrial to PIT, citing more available labour supply at PIT and customers in general being acceptable to having dual sites supporting the manufacturing of their products as a contingency measure. “In addition, PIT may have an opportunity to enter into the electric vehicle (EV) industry as a supplier of EV parts in view of the rising EV manufacturing industry in Thailand,” it noted.  In its trading segment, the company does not expect significant growth in the near future due to a lack of attractive electronic products from the parent companies. Shares of PIE Industrial closed up one sen or 0.29% to RM3.46, giving the EMS company a market capitalisation of RM1.33 billion. Year-to-date, the stock has risen 32% from RM2.63. 

https://theedgemalaysia.com/node/609197

Russia accuses Ukraine of going silent on talks possibility

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MOSCOW (Feb 25): The Kremlin said on Friday it had offered to hold talks with Ukraine in the Belarusian capital Minsk after Ukraine said it was willing to discuss declaring itself a neutral country, but said Ukraine had instead proposed Warsaw as a venue. Kremlin spokesman Dmitry Peskov said the Ukrainians had then taken what he described as a quite a long time-out and that there was now a "pause" in contacts. During that pause, he said Ukrainian nationalists had deployed missile systems in residential areas in big cities. He did not provide evidence to back the assertion, but said it was a very dangerous development. There was no immediate comment from Ukrainian authorities.

https://theedgemalaysia.com/node/669217

KAB's profit jumps in 1Q, lifted by sustainable energy solutions biz

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KUALA LUMPUR (May 30): Kejuruteraan Asastera Bhd (KAB), soon to be renamed Kinergy Advancement Bhd, saw its net profit for the first quarter ended March 31, 2023 (1QFY2023) jump over four times to RM2.43 million from RM590,000 a year ago, thanks to higher contribution from its sustainable energy solutions (SES) segment. Earnings per share for the quarter amounted to 0.13 sen, up 0.1 sen from a year earlier. The profit improvement came despite lower revenue of RM42.76 million compared to RM52.98 million in the previous year. The group has two main business segments, namely SES and mechanical and electrical engineering (M&E).   Its SES segment's revenue grew 38.6% to RM5.56 million in 1QFY2023 compared to RM4.01 million in 1QFY2022, which boosted segment profit by over seven times to RM2.68 million from a mere RM304,000 previously. The group attributed the better segmental performance to the improved performance of its SES assets and higher tariffs. The group's M&E segment, meanwhile, saw revenue fall by 23.7% to RM37.37 million from RM48.96 million, but segment profit increased by 14.4% to RM1.69 million from RM1.47 million. The group said the industry's profit margin is still affected by the hike in copper and iron ore prices. In a statement, KAB group managing director Datuk Lai Keng Onn said the improvement in the group's net profit is a testament to the board’s conscious and calculated decision in pivoting into the SES segment. “Our efforts in the journey into the SES segment have paid off and we are poised to further accelerate our expansion and capture more opportunities in this fast-growing industry. This milestone quarterly result reflects the immense potential that lies ahead, and we are positively optimistic of our coming year prospects, in line with our ongoing acquisitions which are slated to be completed by this year,” he said. The group also said its shareholders have passed the special resolution to rename Kejuruteraan Asastera Bhd to Kinergy Advancement Bhd at a virtual annual general meeting on Tuesday (May 30). Its share price ended the day at 32 sen, up 3.23% from the previous trading day. This values the company at RM578.53 million.

https://theedgemalaysia.com/node/626368

Six telcos agreed on DNB stake deal, official announcement by next week, says Annuar Musa

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KUALA LUMPUR (June 30): Six local telcos have agreed to take up the stake in Digital Nasional Bhd (DNB) ahead of Thursday (June 30)’s deadline for them to finalise the decision, according to Communications and Multimedia Minister Tan Sri Annuar Musa. Speaking in an event in Putrajaya on Thursday, Annuar said a total of 70% stake in DNB will be spread between these six mobile network operators. He also shared that everything is according to plan, and issues pertaining to transparency and the pricing involved have all been sorted out. “Bear with me, it just takes another seven or eight days before an official announcement will be made. “Conversations have taken place and they (telcos) have reached a certain understanding and everything will be concluded by next week,” he said. DNB is the special purpose vehicle (SPV) set up by the government to roll out and own the 5G network infrastructure nationwide. On June 29, Singapore’s Straits Times (ST) reported that a non-binding term sheet had been agreed upon by six telcos ahead of the deadline, along with a shareholders agreement to take up a stake in DNB, which is expected to be signed early next month. The six telcos, including Celcom Axiata Bhd, Digi.com Bhd, Maxis Bhd and U Mobile Sdn Bhd, or collectively known as (CDMU), will take up equal shares in DNB, ST reported. The ST was also made to understand that the agreement will include a price review that will be overseen by the Malaysian Communications and Multimedia Commission (MCMC) every three years. Additionally, the wholesale pricing for the lease of DNB’s 5G assets by the telcos will be discounted until DNB achieves 80% nationwide coverage which is expected to happen only by 2024, the report added. Previously, the CDMU reportedly expressed their intention to hold a controlling 51% stake in DNB. As of May this year, YTL Communications Sdn Bhd has signed up with DNB for the leasing of the 5G infrastructure, while Telekom Malaysia Bhd has joined the 5G roll-out pilot. Read also: Telcos grab DNB stake ahead of 5G rollout deal in July  Zafrul: DNB stakes for 5G rollout may be opened to new players Malaysia's biggest telcos seek majority stake in 5G agency — document

https://theedgemalaysia.com/node/660191

令吉兑美元续升

Mandarin

（吉隆坡22日讯）由于对全球经济发展的担忧日益加剧，导致更多投资者撤离避险资产，令吉兑美元维持上升趋势。 截至9时15分，令吉兑美元升至4.4680/4710，昨日收报4.4690/4715。 ActivTrades交易员Dyogenes Rodrigues Diniz表示，在备受关注的美国利率公布前，美元兑令吉汇率下跌。 他向马新社说：“对于美国联储局（FED）最有可能采取的行动，市场存在很大分歧。其中一种可能性是升息，因为通胀高企而失业率低。” “但这可能给银行业带来更大的压力，而对银行的信心危机往往比通胀更严重。” 同时，令吉兑一篮子主要货币大多走高。 令吉兑英镑从5.4759/4789 ，增至5.4590/4627、兑日元由3.3807/3829，升至3.3736/3761，但兑欧元从4.8028/8055，跌至4.8111/8144。 令吉兑东南亚货币则表现不一。 令吉兑泰铢自13.0166/0311，扬至12.9425/9575、兑新元从3.3423/3444，微升至3.3418/3446，但兑印尼盾报291.10/291.50，以及兑菲律宾比索为8.21/8.22，皆平盘。   （编译：陈慧珊）   English version：Ringgit remains higher vs US dollar in early session on Wednesday

https://theedgemalaysia.com/node/639567

Insider Moves: Mynews Holdings Bhd, Jiankun International Bhd, Computer Forms (M) Bhd, Alcom Group Bhd, Chin Hin Group Bhd

English

This article first appeared in Capital, The Edge Malaysia Weekly on October 10, 2022 - October 16, 2022 Mynews Holdings Bhd saw Abrdn plc cease to be a substantial shareholder after the Edinburgh-based investment fund management company disposed of 33.95 million shares, or 4.98% of the issued shares of the retailer, on Sept 23, according to the company’s Bursa Malaysia filing dated Sept 28. Abrdn is known as a conservative investment fund and the recent losses at Mynews could have contributed to its decision to dispose of its holdings. Mynews was still loss-making in the third quarter ended July 31, during which it recorded a net loss of RM1.45 million. However, it was a huge improvement from the net loss of RM14.92 million that the retailer suffered in the previous corresponding quarter, as the relaxation of Covid-19 measures increased footfall at malls and commercial centres where Mynews outlets are located. Meanwhile, Jiankun International Bhd saw the emergence of Datuk Yong Chong Long as a substantial shareholder after he subscribed for 24 million shares on Sept 29. The shares were part of the property developer’s first tranche of 49 million new shares in a private placement exercise. The other 25 million shares were taken up by Teh Hooi Tyung. The exercise will see up to 98 million shares, or 40% of Jiankun’s share base, being placed out. In the first tranche, the shares were placed out at 19.2 sen apiece. The bulk of the proceeds to be raised from the private placement will be used to fund the construction of a 10-storey serviced apartment building in Klebang, Melaka Tengah, called One Le Tower. Last month, Jiankun announced that it had been offered the role of main contractor for a RM90 million development undertaken by a unit of Menara Rezeki Sdn Bhd in Sentul. Menara Rezeki is connected to Umno president Datuk Seri Dr Ahmad Zahid Hamidi by virtue of his son-in-law Datuk Saiful Nizam Mohd Yusoff being its deputy executive chairman and managing director. Saiful Nizam is also a substantial shareholder of Jiankun, with 21 million shares, or an 8.58% stake. On Sept 26, Cita Realiti Sdn Bhd emerged as a substantial shareholder of Computer Forms (M) Bhd after it acquired 1.35 million shares, or 0.57% of the computer forms printing company’s share base, on the open market. Cita Realiti acquired another 4.92 million shares, or 2.1% of Computer Forms’ share base, on Sept 26 and another 1.5 million shares, or 0.64% of the group’s share base, on Sept 29, increasing its equity interest in the group to 7.94%. During the week of  Sept 26 to 30, the share price of Alcom Group Bhd fell 2.99% to 81 sen apiece, from 83.5 sen. Over the past year, its share price had not changed much, adding just 6.4% to close at 81.5 sen last Wednesday. On Sept 28, its largest shareholder Yeoh Jin Hoe, through his investment holding company Towerpack Sdn Bhd, acquired 1.11 million shares, or 0.82% of the group’s share base, increasing his stake in the country’s largest manufacturer of rolled aluminium products to 32.5%. The shares were acquired at 82.23 sen per share, which was a 0.28% premium to the closing price of 82 sen on Sept 28. Yeoh is also the largest shareholder of Can-One Bhd. Meanwhile, the share price of Chin Hin Group Bhd increased 3.23% during the week in review to RM2.88 from RM2.79. Over the past year, the stock had rallied by more than 317% to close at RM2.81 last Wednesday. On Sept 26 and 27, Chin Hin Group’s largest shareholder, Datuk Seri Chiau Beng Teik, acquired a total of seven million shares, or 0.4% of the property developer and construction group’s share base, in off-market transactions.   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/653587

Cover Story: Klang Valley’s industrial property segment continues to grow

English

This article first appeared in City & Country, The Edge Malaysia Weekly on January 30, 2023 - February 5, 2023 The Klang Valley industrial property segment has seen its fortunes blossom, thanks to the pandemic, which pushed the demand for such properties higher than expected. While generally not considered sexy to investors, this important subsector has been part of the Malaysian real estate landscape for decades. According to VPC Alliance (KL) Sdn Bhd director James Wong, industrial development in the country started in the Klang Valley, referring to Kuala Lumpur and Selangor in general. “The pioneer developer of industrial estates or parks in the Klang Valley was the public sector and mainly PKNS (Selangor State Development Corporation), which developed the Section 13 and Section 51A industrial areas in Petaling Jaya and Seksyen 15 and 16 industrial estates in Shah Alam in the 1970s and 1980s, which coincided with then prime minister Tun Dr Mahathir Mohamad’s ‘Look East Policy’ and industrialisation programme,” he says. “Only in the 1990s did private developers come into the picture to develop industrial parks such as Subang Hi-Tech Industrial Park, Bukit Raja Prime Industrial Park and Hicom Industrial Park. Their titles are mainly freehold, and hence command higher land values and have fewer restrictions on transfers, whereas PKNS’ industrial lands are leasehold.” PPC International Sdn Bhd managing director Datuk Siders Sittampalam also cites the Look East Policy as the impetus for growth in industrial properties.  “With the separation of Singapore from Malaysia in 1965, Port Klang became the new national port, replacing the Port of Singapore. Along with it came the expansion of the Federal Highway to an expressway linking Kuala Lumpur, Shah Alam, Klang and then leading to Port Klang via Persiaran Raja Muda Musa. This led to Shah Alam being planned as a major industrial hub in the Klang Valley, attracting Japanese, Korean and Taiwanese industrial-based companies with the government adopting a Look East Policy in 1981,” he says. “With renewed interest in Shah Alam as a centre of industrial development for Selangor, demand for  and prices of industrial land increased and investors had to look at further and cheaper locations in the Klang Valley such as Bukit Raja, Banting, Rawang and Sungai Buloh. Bukit Raja was originally an oil palm plantation owned by Sime Darby and was developed into a township with planned industrial estates.” The most clustered industrial estates are in Shah Alam’s Seksyen 15, 16, 22, 23, 31 and 32. These are considered the oldest and most mature industrial areas in Selangor, says Siders. The industrial property market isn’t big but plays an important role in the economy. “Although the industrial sector is a very small subsector of the overall property market, with existing stock at only 46,316 units in the first half of 2021, the manufacturing sector contributes about 24% to the national gross domestic product and the industrial/manufacturing sector employs about one million workers,” says Wong. Data gleaned from the National Property Information Centre (Napic) shows that the volume and value of industrial properties had risen since 2017 before dipping in 2020 and rebounding in 2021, according to Wong (see Table 1). He adds that Selangor, the country’s most industrialised state, is a major contributor with 34.9% of the nation’s industrial volume. Siders says, “The industrial subsector had seen a gradual pick-up since 2017 with more investment activities. In 2018, the subsector contributed about 3.3% in volume and 19.8% in value to the entire Selangor property market, with 2,029 units worth RM8.28 billion transacted. The state’s property transactions stood at 61,266 units worth RM41.69 billion in 2018.” He adds that the volume and value of industrial properties continued to increase until 2019, when 2,212 units worth RM8.276 billion were transacted. However, with the outbreak of Covid-19 and the imposition of the Movement Control Order (MCO) in 2020, transaction volume and value decreased to about 27.6% and 11.9% respectively (1,601 units worth RM7.291 billion were transacted) that year (see chart). Wong highlights the strong performance of industrial real estate investment trusts (REITs), which have offered dividend yields of 5.1% to 5.7%. He points out that the main attraction of these REITs is security of tenure, as landlords only deal with a few tenants but have long-term tenancies with fixed and secured rental rates. Axis REIT is the largest industrial REIT. It currently owns 60 properties and is actively looking to make more acquisitions. “Industrial REITs are expected to see the highest rental growth in the coming years and are driven by the rapid growth of e-commerce and demand for logistics facilities,” Wong remarks. Siders notes that the pandemic-induced lockdowns have changed the consumption patterns of consumers, who embraced e-commerce during the MCO, resulting in “strong demand for warehouse and logistics properties”. “The e-commerce penetration rate in Malaysia is currently the second highest in Southeast Asia. The growth in e-commerce not only focuses on online shopping for goods and fashion but also food and beverage products, pharmaceuticals and manufacturing, spurring the demand for logistics and warehousing,” he points out. “The changing consumption patterns to e-commerce have not only driven logistics and warehouse demand but also the expansion of Industry 4.0 and smart factories. During the MCO period, many manufacturers showed interest in artificial intelligence, technologies, investments in robotics and 5G connectivity systems as these would generate a more efficient operational workflow, reduce costs and experience fewer risks amid lockdowns.” Wong highlights that despite the stiff competition from its Asean neighbours, Malaysia has been able to attract industrial investments worth billions. “For example, Intel Corp announced in January 2022 that it would be investing RM30 billion over 10 years to expand its manufacturing capabilities in advanced semiconductor packaging technology in the Bayan Lepas Free Trade Zone, creating 8,000 new jobs. And China-based solar energy giant Risen Energy Co Ltd is investing RM42.2 billion over 15 years to set up solar plants in the Kulim Hi Tech Industrial Park in Kedah. “Microsoft is setting up a RM1 billion regional data centre. And home-grown company Hartalega is investing RM7 billion to build 16 rubber glove factories.” As the economy chugs on, it isn’t surprising that the industrial property segment is seeing a transformation. According to Wong, Malaysia’s foreign direct investment in the manufacturing sector has declined in the last four years, spurring the government to implement the Industrial Master Plan 4 to attract more high-technology and value-added industries. “The industrial sector is gradually evolving from manufacturing-based to logistics and warehouse-based. This was especially so during the pandemic years of 2020/21, with the increased adoption of e-commerce and the globalisation of supply chains. As a result of the US-China trade war, many China manufacturing companies are moving their operations overseas, to countries like Malaysia,” he says. Malaysia’s pro-investment policies and good infrastructure are some of its attractions and this has resulted in some logistics and distribution centres being completed in 2021, such as the Ikea Distribution Hub in Port Klang (floor area: 1 million sq ft), Hap Seng Industrial Hub in Shah Alam (1.3 million sq ft) and Lam Soon Distribution Hub in Selangor (277,000 sq ft). Wong mentions another hub called Cainiao Aeropolis eWTB Hub at the Kuala Lumpur International Airport, which is a joint venture between Alibaba Group Holding Ltd and Malaysia Airports Holdings Bhd. It serves as a regional distribution centre and e-commerce logistics hub. Siders notes that the newer industrial developments are mostly built-to-suit (BTS) properties or customised according to the tenant’s or buyer’s specifications. He points to Bandar Bukit Raja Industrial Gateway in Klang and Cipta Serenia in Sepang as examples of the BTS concept. He highlights that Bandar Bukit Raja Industrial Gateway has set aside 869 acres for BTS factories, which will keep the developer busy until 2035. At Cipta Serenia in Sepang, 196 acres have been allocated for the BTS concept, with about 55 acres developed so far into light industrial plots with detached factories. Some 98 acres have been earmarked for medium industrial land and the developer is currently in the planning stage. Siders says the two industrial parks, which used to be oil palm plantations, have evolved into their current form to take advantage of the “good accessibility and network of roads”. Wong notes that the BTS concept is being adopted in Malaysia and cites the joint venture between Sime Darby Property Bhd, Mitsui & Co and Mitsubishi Estate Co Ltd to build modern warehouse facilities for confirmed tenants with pre-agreed rental rates on a long-term basis at Bandar Bukit Raja Industrial Gateway. Another trend he has observed is the setting up of industrial development funds such as the one formed between Sime Darby Property and logistics service provider Logos Property Group Ltd. Also, integrated industrial parks are becoming the norm, as such parks no longer just sell vacant industrial land, Wong points out. “Many industrial parks are incorporating logistic hubs and an inland port. For example, PKT Logistics Group has logistic hubs that have incorporated a truckers’ lounge, rest and relaxation centre, food court and an inland port. Its Penang Hub at Batu Kawan Industrial Park has also incorporated a maritime campus and student residences. “[PKT Logistics Group] is developing the One Northern Hub in Bukit Kayu Hitam and is incorporating an inland port. It will be ready in 1H2023.” He also points to land reclamation efforts to increase industrial lands, such as the Penang Development Corporation’s Penang South Island Project, comprising three new islands, and the Melaka Gateway project in Melaka. Looking forward, both property experts foresee some shortcomings in the industry. “One of the serious challenges to the manufacturing industry is the shortage of skilled and unskilled labour, and employers are finding it difficult to recruit foreign labour,” says Wong. He adds that there isn’t enough industrial land to cater for both local and foreign demand. “Especially from foreign multinational corporations that require a few hundred acres of industrial land to relocate their manufacturing plants to Malaysia.” Siders says the industry may need to look at its existing products and upgrade where necessary. “Relocation of warehouses and logistics facilities to the outskirts and cheaper locations due to changing trends in e-commerce will gradually result in a relook at older and outdated warehouses for modification and adaptation. “Some may pave the way for residential and commercial development while newer industrial parks with good infrastructure are developed in the outskirts. Eventually, unless older industrial schemes are remodelled to improve the efficiency of the buildings with smarter facilities and technology in line with the changing requirements, the value of these premises may decline over time even though they are in good locations.” Moving forward, the property experts see positive growth in the industrial property market. “With the growth of the local and regional economies, demand for industrial space is imminent. Generally, the industrial sector will be driven by the growth in e-commerce, generating demand for space in warehousing in particular. Going by the trend in the industrial sector and changing consumer trends, we believe growth in the industrial sector will be seen for some years to come,” says Siders. According to Wong, Malaysia’s march towards becoming an industrialised nation means the industrial property segment has a bright future. “With the Regional Comprehensive Economic Partnership agreement set up to create the world’s largest free trade zone and investment opportunities in the 15 participating Asia-Pacific countries — of which Malaysia is a member — this will create extensive market access and relocation of investments to the Asia-Pacific region.” Opportunities abound for the Malaysian industrial sector and time will tell how the country takes advantage of this growing demand. 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/655854

Frankly Speaking: Good initiative but not too restrictive, please

English

This article first appeared in The Edge Malaysia Weekly on February 20, 2023 - February 26, 2023 Last week, Minister of Tourism, Arts and Culture Datuk Seri Tiong King Sing said his ministry would be issuing a circular to bar tour operators and guides from including shopping in a tour itinerary. Itineraries that include one or two attractions followed by shopping would be forbidden. Instead, operators have been told to schedule breaks of a day or two so that tourists can decide for themselves where to shop. He also warned that action would be taken if incoming tours continue to include shopping trips. Tour operators and tour guide licences are, after all, issued by his ministry. The latest decision is said to have been prompted by tourist complaints that tour agents are taking tourists to certain outlets because of the commission they receive from the retailer. That may be true of some tour agents, but not all. Industry players want the tourism minister to review the decision and not place a blanket ban on the industry. They have countered that shopping ought to be included in an itinerary as long as it is not restricted to nominated shops. Tourism is undeniably a major revenue generator for the country. In 2019, pre-Covid 19, it was the third-largest contributor to the economy, contributing 15.9% to total GDP. While it is good that the ministry is looking into restraining tour operators whose itinerary is dominated by visits to outlets that reward them with commissions, instead of shopping malls that the tourists would prefer to go to, it should be mindful of not making the measure overly restrictive. This is especially because both tourism and the retail sector took a battering during the pandemic and have only just begun to recover. 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/661273

Stage 1 of Ilham Residence 3 fully taken up, says Sime Darby Property

English

KUALA LUMPUR (March 29): Sime Darby Property Bhd’s (SDP) latest offerings in the City of Elmina — Ilham Residence 3 (Stage 1) — were all taken up at the early bird preview earlier this month. In a press statement on Wednesday (March 29), SDP chief marketing and sales officer Datuk Lai Shu Wei said that the positive response is a testament to homebuyers’ trust in the SDP brand as well as in its capabilities to fulfil their needs. “We are happy that our newly introduced Ilham Residence 3 products are well received, showing that the City of Elmina is a definite must-have address. As a pioneering property developer, we will continue to leverage our strategic locations to provide homes with well-curated designs, practical layouts and good amenities in excellent neighbourhoods, in line with our purpose to be a value multiplier for people, businesses, economies, and the planet,” he added. There are 69 Lifestyle Homes and 62 Urban Twinhomes in Ilham Residence 3 (Stage 1). The two-storey Lifestyle Homes, with the typical lot size of 20ft by 70ft and built-ups from 1,944 sq ft, have four bedrooms and four bathrooms. Priced from RM901,888 each, these units have larger living spaces whereby the kitchen, living and dining area are connected as one large area, allowing buyers greater flexibility in planning their lifestyle needs. There is also skylight roofs that enhance the overall ambience by allowing natural sunlight and promote better comfort. The enclosed inner courtyard offers a flexible area for indoor planting, while the private backyard garden encourages residents to practise the "garden to table" living concept by growing their own produce. Meanwhile, the Urban Twinhomes introduce a single-floor living concept to provide greater mobility, visibility and convenience to homeowners. With the typical lot size of 36ft by 70ft and built-ups from 1,150 sq ft, they are priced from RM582,888. Featuring three bedrooms and two bathrooms, as well as a distinctive brick wall at the front façade for privacy and noise reduction, the ground floor unit boasts dual courtyard features that attract natural light and promote a greener lifestyle, while the upper floor unit has a balcony for improved ventilation and connection to the outdoors. Residents of Ilham Residence 3 will get to enjoy over 20 facilities for all generations, including a barnhouse-inspired playground, multipurpose hall, Tai Chi lawn and reflexology path. It will also come with comprehensive security systems with round-the-clock monitoring, an integrated parcel and letter box, weatherproof power outlets, and one-year free high-speed internet. To encourage sustainable living, each home comes with solar photovoltaic panels (2kW) to reduce the carbon footprint and improve electrical savings.

https://theedgemalaysia.com/node/618756

艾芬黄氏下修科艺集团 目标价调低至1.39令吉

Mandarin

（吉隆坡6日讯）艾芬黄氏投资银行将科艺集团（ Kelington Group Bhd）的评级从“买入”下修至“守住”，并把目标价调低至1.39令吉（之前为2.10令吉），主要是在高利率环境下，收益增长轨迹不那么激进。 艾芬黄氏分析员Tan Jianyuan表示，上海自2022年3月底以来封锁，预计将打击科艺集团的收益。 根据科艺集团对中国的总敞口估计有30%，他认为，目前约有10%的订单来自上海，这些工作受到了目前全城封锁的影响。 他说：“自3月以来，工地一直处于停工状态，没有明确迹象表明政府将全面重新开放。5月份的劳动节假期可能会继续影响工作进度。” 然而，他认为，中国供应链及其贸易部门（科艺集团的天然气来源）并未因最近的封锁而受到任何干扰。 他指出，科艺集团在砂拉越的建筑合同也出现了一些延迟，该合同约占其订单的33%。 “前期的场地准备工作出现了一些挫折，导致计费进展缓慢。最初的合同完成时间表定于2022年底。” 惟他认为，合同确认可能会延续到2023年首季。 他将科艺集团的2022年盈利预测下调13%，但将2023年预测上调16%，原因是考虑到一些项目延误以及与上海和砂拉越合同相关的工作将延至明年。 截至早上10时35分，科艺集团跌5仙或3.88%，至1.24令吉，市值为8亿2591万令吉。从年初至今，该股下滑了28.32%。   （编译：魏素雯）   English version：Affin Hwang downgrades Kelington, cuts target price to RM1.39

https://theedgemalaysia.com/node/652771

Does Serba Dinamik’s integrated annual report paint an accurate picture?

English

This article first appeared in The Edge Malaysia Weekly on January 23, 2023 - January 29, 2023 THE cover of Serba Dinamik Holdings Bhd’s integrated report for 2021/22 has the heading “Awakening to the next chapter” and a visual of a phoenix taking flight. Inside, in non-independent non-executive chairman Datuk Abdul Kadier Sahib’s statement, he explains that the phoenix describes the company’s current state of affairs, as the bird, according to Greek mythology, is said to be immortal and cyclically regenerates itself, being reborn by rising from the ashes of its predecessor. “In simpler terms, it is a bird that never dies. We at Serba Dinamik believe that we, too, will rise from any setbacks and come back stronger in the face of challenges, just like the phoenix,” says Abdul Kadier. “In its moments of adversity, Serba Dinamik fell back on the company’s corporate governance, strong values and purpose to continue moving forward.” Many would disagree with him. Meanwhile, Datuk Mohd Abdul Karim Abdullah — Serba Dinamik’s controlling shareholder, managing director and CEO — in his statement in the document, says, “I am certain that when we have restructured and transformed our company, it will be met with positive feedback from our shareholders, customers, suppliers and, last but not least, our employees.” Mohd Abdul Karim’s sentiments are viewed as optimistic by others in the oil and gas industry. On Jan 10, the High Court allowed a petition by six financial institutions to wind up Serba Dinamik and three of its subsidiaries, which have mounting debts of about RM5 billion, including US$500 million in sukuk. Serba Dinamik filed for an adjournment of the winding up proceedings but was rejected. While the company is appealing the decision, whether or not it will be successful remains to be seen. The court had appointed Victor Saw Seng Kee of PricewaterhouseCoopers Advisory Services Sdn Bhd as the liquidator. At the hearing in court, it emerged that Serba Dinamik and the three subsidiaries had failed to make obligatory statutory payments, including those that relate to the Employees Provident Fund and Social Security Organisation, for their staff. A lawyer for one of lenders had said: “The interim liquidator’s report on Aug 23 conclusively showed the companies are commercially insolvent,” when arguing against Serba Dinamik’s application to adjourn the winding up proceedings. Back to the integrated annual report, which covers the 18 months ended June 30, 2021 (FPE2021) and financial year ended June 30, 2022 (FY2022). In the report, Serba Dinamik says that cash flow constrains brought about by Covid-19 had hampered its debt paper obligations. One of Serba Dinamik’s issues stems from debt paper it issued for working capital and the refinancing of existing debt, among others. In FY2019, the company issued and raised US$300 million in debt paper with tenures of three years — maturing in 2022 — with a coupon of 6.3% payable semi-annually. Also in FY2019, it issued US$200 million in sukuk with a tenure of five years and three months — maturing in 2025 — with a coupon of 6.99% payable semi-annually. In FY2020, Serba Dinamik issued RM100 million in sukuk with a tenure of one year and a coupon of 4.35%, maturing in 2022. Its inability to service the debt gave rise to the petition by the financial institutions. Looking at the Practice Note 17 company’s numbers, and what has transpired thus far, Serba Dinamik seems unlikely to make good anytime soon. To put things in perspective, for FY2022, the company suffered a net loss of RM1.09 billion from revenue of RM1.35 billion. For FPE2021, it had a net loss of RM185.37 million on the back of RM8.61 billion in revenue. Serba Dinamik’s cash and cash equivalents have tumbled about 88% from RM497.41 million as at end-FPE2021, to RM57.49 million as at end-June 2022. Short-term debt commitments, due within 12 months, stand at RM1.51 billion, while long-term borrowings are pegged at RM2.14 billion. Serba Dinamik’s net finance cost for FY2022 was RM195.18 million, while it had negative cash flow of RM273 million generated from operating activities. While its chairman and managing director have painted a picture that things may pick up at the company, its auditors Nexia SSY PLT, or Jason Sia Sze Wan to be exact, indicate that at the group level, there were unverified property, plant and equipment of RM1.99 billion, unverified inventory of RM1.59 billion, unverified trade and other receivables of RM1.59 billion, unverified trade and other payables of RM639.56 million, unverified loans and borrowings of RM3.65 billion, unverified revenue of RM1.35 billion and unverified cost of contract with customers of RM1.61 billion. These work out to some RM11.08 billion in total of unverified items for which Nexia SSY PLT was unable to conclude the carrying amounts. Abdul Karim says of the losses in FY2022, “This is mainly due to the outcome from the debt settlement scheme ... (and the initiatives of the interim liquidator) to manage the operations, restructure the operational efficiency, continuous cost optimisation, minimising the value of existing contracts and strengthening legal and contractual position with clients and sub-contractors.” He adds, “The margins decreased due to impairment of trade and other receivables and inventories written down value.” How deep this issue goes is not clear, but Serba Dinamik’s net assets for FY2022 were RM1.91 billion, down RM1.06 billion from RM2.97 billion as at end-FPE2021. What is clear is that from a company with a market capitalisation of RM6 billion at its peak, it is now valued at RM74 million and its shares are suspended at two sen apiece. In Serba Dinamik’s integrated annual report, it is stated that there were compounds of RM3 million each for one key management figure and two directors, but no were details given and the culprits were not named. The four officials compounded, as widely reported, are Mohd Abdul Karim; executive director Datuk Syed Nazim Syed Faisal who was chief financial officer from June 2016 until mid-2020; the group chief financial officer at the time of the compounding Azhan Azmi, and vice-president of accounts and finance Muhammad Hafiz Othman. All of the four are still at Serba Dinamik. When accounting issues cropped up at the company in May 2021, many were shocked, and some were sceptical of the claims of the auditors, KPMG. KPMG had highlighted discrepancies involving transactions worth some RM4.54 billion in the FY2020 accounts to independent directors in May 2021. On the insistence of frontline regulator Bursa Malaysia, Serba Dinamik appointed Ernst & Young Consulting Sdn Bhd (EY Consulting) to undertake a review of KPMG’s work and findings. In the meantime, Serba Dinamik sued KPMG, suggesting that the auditors had blown things out of proportion. When EY Consulting maintained KPMG’s findings and flagged revenue of RM6.01 billion for FY2020, Serba Dinamik sought legal redress against them as well. However, when court documents leaked, it was revealed that the Securities Commission Malaysia (SC) had found 59 company and personal stamps of external parties — such as Malaysia LNG Sdn Bhd, Petronas Gas Bhd, Petronas Carigali Sdn Bhd, Petronas Methanol (Labuan) Sdn Bhd, Petronas Chemicals Methanol Sdn Bhd, Petronas Refinery and Petrochemical Corp Sdn Bhd, Petronas Chemicals Ammonia Sdn Bhd, Sarawak Shell Bhd, Petronas Chemicals LDPE Sdn Bhd, Exxonmobil Exploration and Production Malaysia Inc, Petronas Carigali (Turkmenistan) Sdn Bhd, Petronas Chemicals Derivatives Sdn Bhd, Sabah Shell Petroleum Co Ltd, Shell MDS (Malaysia) Sdn Bhd, PRPC Utilities and Facilities Sdn Bhd and Shell Cyberjaya. There were questions about a customer and supplier in Bahrain whose office address could not be located, and transactions with this outfit totalled US$101 million (RM417.48 million then) and the trade receivables balance was US$24 million (RM99.2 million then). If the objective of an annual report is to present to shareholders a true picture of the financial position of the company for the period that has just passed, it is not clear if Serba Dinamik’s integrated report achieved this. 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/643834

NEWS: S P Setia tops Top Property Developers Awards 2022

English

S P Setia took the No 1 spot at this year’s The Edge Malaysia Top Property Developers Awards. This is the fourteenth time it has come in first ever since the awards were established in 2003.

https://theedgemalaysia.com/node/628192

BHIC获国防部续约 潜艇服务支援合同总值7932万

English

（吉隆坡14日讯）Boustead Heavy Industries Corp Bhd接受了国防部为期9个月的合同延期，价值7932万令吉，为马来西亚皇家海军的首相级潜艇提供在役支持。 BHIC指出，Boustead DCNS Naval Corp私人有限公司（BDNC）已接受续约，有效期从今年1月1日至9月30日。 BDNC是BHIC Defence Technologies私人有限公司（60%）及France’s Naval Group（40%）的联营公司。BHIC Defence Technologies是BHIC的独资子公司。 BHIC首次获得供应合同是在2019年3月28日。当时，合同有效期为13个月，从2018年12月1日起生效，价值1亿5000万令吉。 公司在2020年6月16日获得类似合同，价值1亿5430万令吉，从2020年1月1日起生效，有效期为1年。BHIC在2021年7月19日宣布获得续约1年，合同价值为1亿5915万令吉，有效期从2021年1月1日至12月31日。 BHIC今日以49仙平盘挂收，市值为1亿2170万令吉。   （编译：魏素雯）   English version：BHIC gets RM79.32m extension on Mindef submarine service support contract

https://theedgemalaysia.com/node/667158

Microsoft’s Activision deal gets sliver of hope as EU defies UK

English

(May 16): Microsoft Corp’s US$69 billion (RM310.53 billion) takeover bid for game developer Activision Blizzard Inc came back from the brink after the European Union (EU) gave its blessing for one of the biggest deals in history. In a decision diametrically opposed to findings by British and US antitrust authorities, EU regulators said on Monday (May 15) that the transaction could actually boost competition, and make the fledgling cloud-gaming market better. But while EU competition chief Margrethe Vestager’s team has raised hopes in Redmond and Santa Monica — where Microsoft and Activision have their headquarters — the duo still face a formidable task convincing UK and US judges to side with them in legal challenges.  The hardest fight could be in Britain, where the firms must get a positive ruling from the specialised Competition Appeal Tribunal (CAT), a court with a narrow remit and a history of siding with the officials who pen the initial decisions. Microsoft is expected to formally file its appeal there by the end of the month. “I struggle to see what can be done,” said Pablo Ibanez Colomo, a law professor specialised in competition at the London School of Economics. “The standard of review in merger cases in the UK is deferential,” meaning that “the grounds on which the decision can be annulled are quite limited”.  If deference is a factor, then the CAT will be mindful of comments from Sarah Cardell, the Competition and Markets Authority’s (CMA) chief executive officer, who responded to the EU’s announcement in an unusually blunt fashion, highlighting how commitments accepted by Brussels would allow “Microsoft to set the terms and conditions for this market for the next 10 years”. “They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale,” Cardell warned. Earlier on Monday, Vestager dubbed the deal a “pro-competitive” merger that would help to “kick-start” the cloud streaming market. She said the EU saw merits in Microsoft’s remedy offering, with her team noting how 10-year licensing deals for rival platforms represented a “significant improvement for cloud game streaming compared to the current situation”.  Microsoft president Brad Smith praised the EU decision as empowering “millions of consumers worldwide to play these games on any device they choose”. Activision CEO Bobby Kotick said the EU conducted a “thorough, deliberate process to gain a comprehensive understanding of gaming”.  Microsoft’s and Activision’s lawyers will now use it “to provide greater ballast to their appeal against the CMA’s decision, which is in the works”, said Alex Haffner, a competition partner of London law firm Fladgate Haffner. When the Federal Trade Commission (FTC) sued to block the merger in December, Microsoft maintained that it still had avenues for approval. The Xbox maker’s plan was to persuade UK and EU authorities to accept a global behavioural remedy, then return to negotiations with the FTC. If the US regulator refused to budge, the company wagered it could persuade a US judge that those binding global remedies resolved the competition concerns.  That strategy has suddenly become much more challenging. As it stands, the FTC trial isn’t set to begin until early August and isn’t likely to produce a decision until year end. Back in the UK, if the CAT does rule that the decision needs another look, it won’t make a new decision and instead will send the case back to the CMA for re-examination. This is also usually undertaken by the same case team who came to the first conclusion.  When Meta Platforms Inc appealed against a UK order to unwind its acquisition of Giphy, for example, the CAT took eight months to issue a decision — and foisted the case back to the UK regulator, which upheld the block. Observers say the CMA’s latest decision is indicative of how it wants to bolster its worldwide reputation in a post-Brexit age. “One of the things that was obvious to happen immediately after Brexit was exactly what we’re witnessing, that the CMA would become a global player,” said Ibanez Colomo. “There’s an element of novelty, and getting used to something will obviously take time,” he added. “But that the CMA would be a major player was something that everybody knew would happen.”

https://theedgemalaysia.com/node/653189

Fee for labour recalibration programme to remain at RM1,500

English

PUTRAJAYA (Jan 27): The fee to hire undocumented migrants in this country under the Labour Recalibration Programme (RTK) 2.0 will remain at RM1,500, Home Minister Datuk Seri Saifuddin Nasution Ismail said. “So far, there is no plan to reduce or abolish the fee. So it remains status quo,” he said in response to calls by the Federation of Malaysian Manufacturers (FMM) to review the recalibration fee or compound. On Jan 18, Immigration director general Datuk Seri Khairul Dzaimee Daud said that employers can start applying for recruitment of foreign workers through RTK 2.0 from Jan 27 until Dec 31. The eight sectors allowed to recruit foreign workers are manufacturing, construction, mining and quarrying, security guards, services, agriculture, plantations and foreign maid. RTK, which initially ended on Dec 31, 2022, was created to regularise illegal immigrants in the country so that they could be employed by qualified employers but subject to strict conditions set by the government through the Immigration Department and the Labour Department of Peninsular Malaysia. The extension of the RTK and the creation of the Relaxation of Employment of Foreign Workers Plan were among the matters agreed upon in the special meeting on foreign worker management chaired by Prime Minister Datuk Seri Anwar Ibrahim on Jan 10. Saifuddin Nasution said RTK aims to facilitate employers in hiring undocumented migrants already in this country, which is cheaper than paying recruitment agencies to bring in new foreign workers from source countries. He added that last year, the government recorded over RM700 million in revenue through the recalibration programme. As of Jan 22 this year, the Immigration Department recorded 1,484,677 foreign workers holding temporary working visit passes, of which 446,229 are from Bangladesh, Indonesia (399,827), Nepal (285,768), Myanmar (135,590) and India (81,002). Read also: Applications involving 156,621 foreign workers received under new relaxation plan — home minister  88,564 visitors served with Not-To-Land notice in 2022

https://theedgemalaysia.com/node/659325

令吉兑美元小幅收高

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（吉隆坡15日讯）令吉兑美元小幅收高，因预期美国将温和加息，投资者因而继续青睐令吉。 截至6时，令吉兑美元为4.4810/4870，周二收报4.4820/4860。 Bank Muamalat Malaysia Bhd经济、市场分析与社会金融主管Dr Mohd Afzanizam Abdul Rashid表示，令吉兑美元周三继续造好。 他指出，令吉超卖可能激励投资者留下来，尤其是当美国联储局（FED）下周会议可能偏向鸽派。 他向马新社说：“市场预计美联储将在下周的美国联邦公开市场委员会（FOMC）会议上改变立场，这可能在短期内有利于令吉。” 同时，令吉兑一篮子主要货币亦大多走高。 令吉兑英镑从5.4474/4523，升至5.4292/4364、兑欧元由4.8007/8050，增至4.7853/7917，但兑日元跌至3.3405/3453，相比周二收盘的3.3383/3415。 令吉兑东南亚货币起落参半。 令吉兑泰铢自12.9830/9999，扬至12.9415/9675、兑印尼盾基本收平于291.20/291.80，昨日报291.20/291.70。 令吉兑新元则从3.3254/3286，贬至3.3291/3341，以及兑菲律宾比索由8.13/8.14，跌至8.15/8.17。   （编译：陈慧珊）   English version：Ringgit ends marginally higher against US dollar

https://theedgemalaysia.com/node/674830

FTC asks appeals court to pause Microsoft-Activision deal

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(July 14): The US Federal Trade Commission (FTC) urged an appeals court to delay Microsoft Corp’s US$69 billion (RM311.88 billion) takeover of Activision Blizzard Inc, while the agency’s challenge to the largest-ever gaming deal is pending. The FTC wants the Ninth Circuit Court of Appeals in San Francisco to overturn a lower-court judge’s July 10 order that cleared the companies to proceed towards their July 18 closure deadline. “Consummation of the proposed deal would irreversibly alter the status quo and, if done before the merits of the FTC’s appeal are heard, would irreparably harm the FTC’s ability to order effective relief for the public should the deal prove to be in violation of the antitrust laws,” FTC lawyers wrote in a filing on Thursday (July 13). US district judge Jacqueline Scott Corley earlier on Thursday rejected the FTC’s request that she extend a pause on the deal while the appeal proceeds. Barring action by the appeals court, Microsoft and Activision can complete the deal as of 11.59pm in San Francisco on Friday. The FTC isn’t backing down in the antitrust fight that represents a major test of its ability to block big tech deals in the court after the agency lost a challenge to an acquisition by Meta Platforms Inc earlier this year.  FTC chair Lina Khan defended the agency’s decision to appeal against the ruling earlier on Thursday during a House Judiciary Committee hearing. Republicans criticised the FTC’s record of merger losses, asking if she was “losing on purpose” to influence Congress to pass antitrust legislation. “We fight hard when we believe there is a law violation,” she said. “When we get an adverse ruling, our teams look closely at the text of opinion and see if there are errors on matters of law that warrant an appeal.” The appeal creates another legal hurdle for Microsoft, as it pushes to close a deal that would help expand its presence in mobile gaming and vault itself to the No 3 position in the global gaming market after Tencent Holdings Ltd and Sony Corp. The FTC is angling to move ahead with an administrative antitrust challenge to the deal that was scheduled to begin early next month. Microsoft also remains stuck in limbo with the UK’s Competition and Markets Authority (CMA) after that agency vetoed the deal in May.  After Corley’s decision came down, the CMA said it’s willing to reassess proposals from Microsoft and agreed to pause the companies’ appeal before the Competition Appeal Tribunal. That hold gives the firms a chance to suggest potential fixes aimed at easing UK concerns that the takeover would stymie competition. But a restructuring of the deal could also trigger a new investigation by Britain’s antitrust watchdog. Read also: UK regulator extends Microsoft-Activision deadline to Aug 29 Microsoft, Activision eye UK rights sale to push merger through

https://theedgemalaysia.com/node/612827

售两家亏损印尼子公司 TDM进账1150万令吉

Mandarin

（吉隆坡21日讯）TDM Bhd接受Ikhasas CPO私人有限公司的献议，以1150万令吉收购两家亏损印尼子公司。 TDM指出，在截至2018年12月31日财年（2018财年）、2019财年及2020财年的3个财年，这两家印尼子公司PT Rafi Kamajaya Abadi（RKA）及PT Sawit Rezeki Abadi（SRA）一直蒙亏，估计近期内不会获利。 TDM接受Ikhasas的献议，分别收购RKA及SRA的93.75%及95%股权。 Ikhasas从事棕油业务以及棕榈产品的贸易和出口。 Ikhasas也将向TDM的小股东——Haji Rahman的合法继承人收购RKA及SRA的6.25%及5%股权。 根据TDM，Ikhasas将在收到TDM接受要约之日起7个工作日内向集团支付230万令吉，占售价的2%。 TDM指出，此次出售为TDM及其子公司提供了退出印尼业务，并将资源集中在大马业务上的机会。 闭市时，TDM升1仙或3.85%，至27仙，共194万股转手。根据闭市价，TDM的市值为4亿6518万令吉。   （编译：魏素雯）   English version：TDM accepts RM115m offer for two-loss making Indonesia subsidiaries

https://theedgemalaysia.com/node/669818

Wall St rises after jobs data; debt default averted

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(June 2): US stock indexes rose on Friday after jobs data showed a moderation in wage growth, boosting bets that the Federal Reserve will skip hiking rates this month, while investors cheered the country averting a catastrophic debt default. The tech-heavy Nasdaq index touched its highest intraday level in over 13 months and headed for its sixth straight week of gains, its best streak since January 2020. The Labor Department's closely watched employment report showed unemployment rate at 3.7% in May against a forecast of 3.5%, while average hourly earnings were at 0.3%, down from 0.4% in April, highlighting a cooling in wage inflation. "This is a reflection of a labour market that, while still robust, is softening gently, not rapidly. That's exactly what the Fed would like to see," said Art Hogan, chief market strategist at B Riley Wealth in New York. The data brought relief to investors who now expect the Fed to skip an interest rate hike this month for the first time since starting its aggressive policy tightening more than a year ago. But the data also showed non-farm payrolls increased by 339,000 jobs vs. expectations of 190,000 additions. Steve Wyett, chief investment strategist at BOK Financial, said the report is enough to allow the Fed to skip rate hikes, but "they're (Fed) not seeing the type of weakness where they could even think about beginning to ease on interest rates at any point." Fed funds futures trading showed an over 70% probability that the Fed will hold interest rates steady at its June 13-14 policy meeting. Markets now await more signs of slowing inflation from consumer and producer prices data later this month. Also lifting the mood, the Senate passed a bill late on Thursday to lift the government's US$31.4 trillion debt ceiling, avoiding a catastrophic, first-ever default. The CBOE volatility index .VIX fell to its lowest since November 2021, down 0.8 point at 14.8 points. At 12.36pm ET, the Dow Jones Industrial Average was up 625.87 points, or 1.89%, at 33,687.44, the S&P 500 was up 58.00 points, or 1.37%, at 4,279.02, and the Nasdaq Composite was up 131.41 points, or 1%, at 13,232.4. Amazon.com Inc gained 1.6% after a report that the company is in talks with telecom operators to offer low-cost mobile services in the United States. The S&P 500 communication services index edged up 0.2% while the S&P 500 consumer discretionary sector, housing Amazon, soared 2.3%. All 11 major S&P 500 sectors traded higher, with a nearly 3% jump in materials leading gains after a report said China is mulling new measures to support the property market. The S&P 500 industrials sector rose 2.8%, while Dow heavyweight Caterpillar gained 7.7%. Advancing issues outnumbered decliners by a 4.79-to-1 ratio on the NYSE and by a 2.47-to-1 ratio on the Nasdaq. The S&P index recorded 12 new 52-week highs and two new lows, while the Nasdaq recorded 58 new highs and 32 new lows.

https://theedgemalaysia.com/node/607345

Lawsuit by retired judges against govt over pension adjustments set for further case management on March 21

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KUALA LUMPUR (Feb 14): The High Court on Monday (Feb 14) has set March 21 for further case management in the matter of retired senior judges and dependants' lawsuit against the Malaysian government over their pensions and benefits. In the matter held before Justice Datuk Wan Ahmad Farid Wan Salleh on Monday, the judge also disclosed that he was related to one of the plaintiffs in the case. Messrs Chooi & Company + Cheang & Ariff's Christopher Leong, representing the plaintiffs, told theedgemarkets.com this when contacted. He added that the plaintiffs have no concerns with Justice Datuk Wan Farid presiding over the matter. The Attorney General's Chambers (AGC)'s M Kogilambigai, representing the defendants, said the AGC has to await further instructions from its clients over this development. Leong added that the judge has indicated for parties to explore the possibility of mediation. The plaintiffs were amenable to this while federal counsel Kogilambigai informed the court that she will seek further instructions from the defendants. Also representing the plaintiffs were Abdullah Abdul Rahman and Derrick Moh while Ikbal Harith held brief for the Malaysian Bar. Some 28 judges and seven dependants of former judges have taken the government, prime minister, Cabinet and director-general of the Public Services Department to court over adjustments to their pensions and benefits. They claim that the government failed to implement an appropriate higher percentage adjustment of more than 2% annually to their pensions and other benefits in accordance with Section 15B(2) of the Judges Remuneration Act 1971. The increment, they added, should have been effective since July 1, 2015. The plaintiffs are also claiming that the adjustment is a violation of Article 125(7), read together with Article 125(9) of the Federal Constitution. Article 125(7) stipulates that the remuneration and other terms of office (including pension rights) of a judge of the Federal Court shall not be altered to his disadvantage after his appointment. Among others, they are seeking a declaration that the gazette for the higher percentage of adjustment of 2% annually to their pension and other benefits had been altered to their disadvantage. Besides the rightful increase in pension of more than 2% annually, they are also claiming that payments due from July 1, 2015 are paid in one lump sum, a pre-judgment interest of 5% per annum and costs. Among the 28 judges are former Court of Appeal (COA) president Tan Sri Alauddin Md Sheriff, and former chief judges of Malaya Tan Sri Haidar Mohamed Nor and Tan Sri Siti Norma Yaakob. Others include Datuk Pajan Singh Gill, Tan Sri Sulong Matjeraie, Datuk Azmel Maamor, Datuk Mahadev Shankar, Datuk Seri Mohd Hishamudin Md Yunus, Datuk Shaik Daud Ismail, Datuk Clement Allan Skinner, Datuk Abdul Malik Ishak, Datuk Mah Weng Kwai, Datuk VC George, Datuk Syed Ahmad Helmy Syed Ahmad, and Tan Sri Mohamad Ariff Md Yusof, who is a former COA judge and former Dewan Rakyat speaker. The dependants include the wife of the late COA president Tan Sri Abdul Malek Ahmad, as well as dependants of former Federal Court judges Datuk Hashim Che Yusoff and Datuk Mohd Noor Ahmad, and former COA judges Datuk KC Vohrah and Datuk Vincent Ng Kim Khoay. Read also: Retired senior judges and dependants sue govt over pension adjustments  Lawsuit by retired judges against govt, PM over no pension increment set for case management on Feb 14

https://theedgemalaysia.com/node/677609

Moscow mayor says hostile drone destroyed by air defences

English

(Aug 6): Moscow mayor Sergei Sobyanin said a hostile drone was destroyed by air defences as it approached the city on Sunday, while one of the capital's airports suspended flights. Russia's Defence Ministry said separately that the Ukrainian drone had been downed over the Podolsk district of the Moscow region south of the capital. Sobyanin wrote on messaging app Telegram that the drone approached Moscow around 11 a.m. (0800 GMT). Russia accused Ukraine of two drone attacks on its capital last week, which damaged a skyscraper in the Moskva Citi district. On Sunday, the Vnukovo airport said it was suspending flights "for reasons beyond our control".

https://theedgemalaysia.com/node/640620

Pivot towards quantum computing before it’s too late

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Today’s digital world has altered the physical reality of our lives in so many ways – some more significant than others. Virtually everything in mainstream life is now interconnected in a complex of cyberspaces and ICT (information and communications technology) networks driven by broadband and data transmission via frequency signalling or wireless and cable/fibre, satellite, and so on (including not least, 5G). This has given rise to the fantasia of the “metaverse” (conflation of “meta” and “universe”) – an alternative reality – where humans interact with each other solely via avatars, i.e., 2-D or 3-D (dimensional) graphical icons or models characteristic in role-playing games/RPGs. We can even push the metaphor further by positing that the only thing which “separates” virtual reality from the “exterior” world circumscribed by time and space (geography) is the humble crystalline silicon – used to produce the tiny microchips which are the foundation of digital technology. And the remarkable speed at which the digital world is progressing has now given us what’s known as quantum computing. Based on the logic of quantum physics, quantum computing harnesses and deploys the principles of superposition (simultaneity of multiples states at any one time and space) and entanglement (co-dependence of existence), etc. to operate very/highly complex tasks that conventional computers are typically constrained from – due to the binary digits (bits) of 0 and 1 as arranged in opposition to one another, i.e., either/or (dualism), i.e., 0,1. In turn, the dialectical logic is rooted in Western philosophy (as eminently embodied by Aristotelian logic of the law of the excluded middle, the law of identity, and the law non-contradiction and mediated by medieval scholasticism and inherited by the Enlightenment, etc. with examples like Boolean algebra). In short, distinction is opposition. Bits are the smallest and most basic unit and value (form) of data and information which a computer stores and processes. Put in another way, bits are the fundamental and rudimentary alphabets of computing language for the hardware (as opposed to computing language/script for the software, i.e., programming). What separates the foundations of quantum computing from conventional computing is how the binary digits (bits) are arranged. Hence, quantum computing uses qubits which defies binary logic and allows two states to co-exist simultaneously/same time and space. That is, we can now use 0, 1 or anything in between to represent one qubit (a unit of information) – which opens the door for tremendous/incredible implications in computing. The ongoing developments of quantum computing over the past few years have led to a remarkable breakthrough in numerous domains that have improved the dynamism of the current technological systems. Rapidly emerging technologies such as cloud-based quantum computing allow businesses to access quantum computing power without purchasing or owning quantum computers, and assist physicists and scientists conduct experiments in quantum physics, etc. To appreciate the scope of quantum computing, this “… new generation of technology … involves a type of computer 158 million times faster than the most sophisticated supercomputer we have in the world today. It is a device so powerful that it could do in four minutes what it would take a traditional supercomputer 10,000 years to accomplish” (Live Science). Furthermore, it’s estimated that a potential quantum computer such as a 4,099-qubit one would only need 10 seconds to break a Rivest-Shamir-Adleman (RSA) encryption (one of the most secure encryption algorithms in the world). In contrast, conventional computers would need 300 trillion years to do so. No quantum computer has yet attained this stage but increasing investment and extensive research coupled with strong political will would shorten the time for such development to fully materialise (“Encryption Security for a Post Quantum World”, Georgia Wood, Center for Strategic and International Studies/CSIS, June 2, 2022). To leverage on these possibilities, many countries especially major powers, namely US and China, have embarked on a race to achieve (unrivalled) quantum supremacy due to the growing realisation of its far-reaching impact on geopolitics and geo-economics. The quantum sector is anticipated to grow into a multibillion-dollar industry within the next ten years. Quantum computing is projected to capture approximately USD700 billion in value as early as 2035 with the market estimated to exceed USD90 billion annually by 2040 (“How quantum computing could change the world”, McKinsey, June 25, 2022). For this reason, the US Department of Energy (DOE) has supported and funded the five National Quantum Information Science Research Centers (NQISRC) massively since 2020 to set the stage for future scientific quantum discoveries. The NQISRC comprises around 70 institutions across the US (“How the five National Quantum Information Science Research Centres harness the quantum revolution”, Argonne National Laboratory, August 26, 2022). Rival China has also successfully developed its first-ever quantum computer, dubbed “Qianshi”, that’s made accessible to the public and surpassing Google in quantum supremacy last year (“China has quantum computers that are 1 million times more powerful than Google’s”, Tech HQ, October 28, 2021). Our closest neighbour Singapore is stepping up investments in quantum computing and collaborating with various non-state and state actors (particularly with Finland). Singapore is, of course, leading the way in the region – with the National Quantum Computing Hub poised to develop the components and materials needed to build quantum computers and devices (“Singapore sets the pace for quantum computing in Southeast Asia”, Tech Wire Asia, June 6, 2022). During the World Islamic Economic Forum (WIEF) 2018 edition entitled, “Global Discourse on Quantum Computing”, Tun Musa Hitam (former chairman of WIEF) remarked that North America might be leading the way in terms of research in this field but Malaysia can still aspire to play a role and have a stake in the development and progress (“Quantum computing to propel businesses further”, The Malaysian Reserve, September 21, 2018). Is our country ready to take up the challenge? Malaysia needs to prepare to adopt quantum computing technology in order not to be left behind. This would include responding to ever-evolving cyber threats that is an integral aspect of the overall national security – affecting everything from food, water and energy security to even “remote” areas such as the stock exchange (securities market) in terms of e.g., trading platforms and data feeds affecting intra-day volume alongside misconduct such as insider trading, etc. Not only that, as it is, quantum computing will enable us to definitively address and resolve critical issues relating to our self-sufficiency levels (SSLs) to redress our balance of payments (BOP) deficits in food imports and promote a more integrated and aggregated supply-chain and logistics as it’s capable of processing highly complex logistics algorithms in real-time, among others. Quantum computing can be key to providing us with holistic and out-of-the-box solutions to the horizon of range of risks and challenges confronting us such as the link between climate change resilience and sustainable flood management practices. It also means we don’t have to overly rely on outside help and assistance in mapping out our own digital journey and blueprint and that we can be “buffered” against any geopolitical quantum supremacy which seeks to pit one bloc against the other (when we have achieved some measure of quantum computing self-sufficiency). Quantum computing would, therefore, be central to our quest to achieve digital sovereignty. Towards this end, EMIR Research would like to offer some policy recommendations in the push for a national quantum computing blueprint and roadmap: 1.    A specially focussed national quantum computing blueprint and roadmap would bring together, incorporate and further develop on the pre-existing policies such as the Malaysia Artificial Intelligence (AI) Roadmap (2021-2025), the Malaysia Cyber Security Strategy (MCSS) 2020-2024, and the Malaysia Digital Economy Blueprint (MyDIGITAL) – the goal of which is the convergence and integration of AI and quantum computing. AI is simply the algorithms and models that could be transplanted into quantum computing as driven by qubits. The combination and “synchronisation” will further speed up the process and development of specific AI parameters. This by enabling AI to break out of the conventional computing framework as driven by bits. The logic of quantum physics (in contradistinction to Aristotelian/Boolean logic) would become normalised and regularised in AI – set within the framework of quantum computing. In turn, our AI can then achieve the status of Artificial Superintelligence – capable of going beyond human intelligence. On the other hand, the potential for quantum computing to perform and solve highly complex problems will be correspondingly heightened and take the machine learning (ML) role to a higher level. This is where human intelligence can be re-created in the quantum computing framework. AI can help transform cyberspace into a quantum communication network. For example, when small quantum processors instantly transfer quantum data (travelling even faster than the speed of light), this can be performed without optical fibres as well as manual manipulation (i.e., by the human).   Finally, it's very critical for the national quantum computing blueprint and roadmap to also “internalise” the IOOI (Input-Output-Outcome-Impact) model – so that the resources deployed would achieve the intended results optimally/maximally for the long-term (including sustained private sector investment). 2.    Establish a dedicated national agency that only focuses on quantum computing technologies. This national agency will be responsible for policy and technical inputs and outputs on the full spectrum of quantum computing, including defence and security. 3.    Utilise Malaysia’s neutral standing by forging closer strategic cooperation with major powers in quantum research and development (R&D). In conclusion, quantum computing is a promising field in which we can’t afford to be left behind when the time comes. After all, the global quantum race could well be just another geopolitical and geo-technological zero-sum game that Malaysia must be well-prepared to manage, adapt to and ride on. Jason Loh and Hazriq Iqmal Abdul Aziz are part of the research team of EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research.

https://theedgemalaysia.com/node/604748

Global crypto users could reach one billion by end of 2022

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KUALA LUMPUR (Jan 24): Global crypto users could reach one billion by the end of 2022. In a report last Wednesday (Jan 19), Singapore-based cryptocurrency exchange app Crypto.com said at present, global crypto owners are nearing 300 million. In the report titled “2021 Crypto Market Sizing Report & 2022 Forecast”, the firm noted that it expects the number of global crypto owners to reach one billion by end-2022. It said the global crypto population increased by 178% in 2021, rising from 106 million in January to 295 million in December. It added that crypto adoption was remarkable in the first half of 2021. “Heavyweight institutions, such as Tesla and Mastercard, took steps to embrace cryptocurrency. “In the second half of 2021, traction slowed, while adoption rates were maintained well above the previous year’s benchmark. “In summary, crypto adoption continued to grow sustainably throughout 2021,” it said. Crypto.com noted that the overall adoption growth in the second half of 2021 was 37.5%, 13% higher than the same period in 2020 (33.3%), suggesting an accelerated adoption rate year-on-year. It said unlike the trend in the first half of 2021, Bitcoin drove the growth and outperformed Ethereum adoption in the latter half. It added that Bitcoin also gained market share during the third and fourth quarters from alternative cryptocurrencies (altcoins). “The weakness of Ethereum adoption may result from the emergence of Ethereum competitors like Terra and Avalanche together with the Layer 2 solutions that bridged assets away from Ethereum to other chains,” it said. The firm stated that it expects developed nations to devise clear legal and taxation frameworks for crypto assets. “In parallel, more nations facing a highly inflationary economy and depreciating currency may adopt cryptocurrencies as legal tenders, following the example of El Salvador,” it said. Crypto.com noted that in 2021, the number of global crypto owners almost tripled from 106 million in January to 295 million in December. “If we extrapolate a similar rate of increase in 2022, we are on track to reach one billion crypto users by the end of 2022,” it said.

https://theedgemalaysia.com/node/651024

MGRC partners SIRIM to explore commercialisation of R&D projects in medical, biotech fields

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KUALA LUMPUR (Jan 9): Genomics and biopharmaceutical specialist Malaysian Genomics Resource Centre Bhd (MGRC) has announced a strategic cooperation with government-owned SIRIM Bhd to explore the commercialisation of joint research and development (R&D) projects in the medical and biotechnology fields. Under the strategic cooperation, both parties will evaluate the potential commercial value of a range of genomics-driven biotechnology R&D projects. These include developing biofuels and biopharmaceuticals, companion diagnostic tests for cancer treatment, and bioactive cosmeceuticals, said MGRC in a statement. The two-year strategic collaboration will also jointly source for suitable private and public institutional partners for the funding and commercialisation of these projects. “SIRIM and MGRC have complementary experiences, resources, and technology assets. Teams from both organisations have met to explore their research and develop interests in precision medicine, food security, and products for the consumer market. This strategic collaboration will pave the way for individual agreements specific to projects for which commercial opportunities have been identified,” said MGRC chief executive officer (CEO) Sasha Nordin. SIRIM president and group CEO Datuk Indera Dr Ahmad Sabirin Arshad said the collaboration can benefit the country and domestic industries. "This strategic collaboration will expedite the relevant processes to ensure that both parties can explore the commercial viability of projects, before commencing research, development and commercialisation,” Ahmad Sabirin said. At the time of writing on Monday (Jan 9), MGRC shares were half a sen or 0.65% higher at 78 sen each, bringing the group a market capitalisation of RM100.91 million.

https://theedgemalaysia.com/node/625805

持续购买兴趣 刺激马股收高

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（吉隆坡27日讯）分析员表示，科技股及能源股持续吸引购兴，刺激马股收高。 截至下午5时，富时隆综指小涨1.42点，至1438.12点，上周五挂1436.7点。 富时隆综指今早高开2.12点，报1438.82点，盘中游走于1431.65点至1441.03点之间。 上升股546只，下跌股365只，另有393只无起落，1004只无交易及55只暂停交易。 马股总成交量增至26亿5000万股，总值14亿3000万令吉，上周五有24亿6000万股转手，总值14亿7000万令吉。 华尔街的利好消息，包括以科技股为主的纳斯达克综合指数（Nasdaq Composite）上周五上涨，提振主要区域股市继续走高。 乐天交易私人有限公司股票研究部副总裁唐柏麟表示，在区域货币兑美元走强的情况下，投资者情绪改善，刺激富时隆综指收高0.1%。 “至于马股，我们谨慎乐观看待富时隆综指的短期表现，因为区域情绪有所改善，而与区域同业相比，本地股票的估值仍然具有吸引力。” 他告诉马新社：“尽管如此，由于区域和全球市场仍然剧烈波动，因此投资者必须保持警惕。” 券商预计，富时隆综指将在本周游走于1430点至1460点之间，即时支撑位为1430点，阻力位则在1490点。 马股重量级股丰隆银行（Hong Leong Bank Bhd）涨32仙，挂20.48令吉，森那美种植（Sime Darby Plantation Bhd）扬8仙，收于4.30令吉，MISC Bhd升12仙，至7.06令吉，IHH医疗保健（IHH Healthcare Bhd）起6仙，报6.48令吉，以及MR DIY Group (M) Bhd增3仙，至2令吉。 马银行（Malayan Banking Bhd）跌2仙，挂8.58令吉，国油化学（Petronas Chemicals Group Bhd）挫5仙，至9.20令吉，大众银行（Public Bank Bhd）起1仙，收报4.44令吉。 热门股方面，绿驰通讯（Green Packet Bhd）企于6.5仙，Reach能源（Reach Energy Bhd）降0.5仙，至8仙，迪耐（Dagang NeXchange Bhd）升3仙，挂79.5仙，沙布拉能源（Sapura Energy Bhd）持平于4.5仙，以及Nylex (M) Bhd涨5.5仙，至29.5仙。   （编译：魏素雯）   English version：Bursa ends broadly higher

https://theedgemalaysia.com/node/625551

Hong Seng disposes of its 35% stake in Pantasniaga to former PSD DG for RM24 mil cash

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KUALA LUMPUR (June 24): Hong Seng Consolidated Bhd has disposed of its 35% stake in life science healthcare service provider, Pantasniaga Sdn Bhd for RM24 million cash. In a Bursa Malaysia filing on Friday (June 24), the healthcare industry supply chain management specialist said its wholly-owned subsidiary HS Bio Sdn Bhd had entered into shares sales agreement with Nexterra Sdn Bhd for the stake disposal. According to the group, Nexterra, who acquired the stake from Hong Seng, is currently engaged in the business of investment holding. Former Director General of the Public Service Department (PSD) Tan Sri Mohd Khairul Adib Abd Rahman is the sole director and shareholder of Nexterra. Mohd Khairul, 60, served as PSD Director General from October 2019 to January 2022. He was previously the Secretary General for the Ministry of Transport. Following the disposal, Hong Seng’s holding in Pantasniaga will be reduced from 51% to 16%. It is expected to gain RM20 million from the proposed disposal. Pantasniaga has secured multiple contracts to supply Covid-19 PCR test kits, including an ongoing arrangement with the Ministry of Health (RM112.32 million for one-year period until July 25, 2022). Hong Seng acquired the 51% stake in Oct 2020 from Norashikin Tajuddin and Lee Yeow Tuck for RM51. The deal then considered Pantasniaga’s losses in 2019, and that “Pantasniaga intends to leverage on the resources and network of Hong Seng Group”, it said.   Commenting on the proposed disposal, Hong Seng Executive Director Christopher Chan said the proceeds received from the said disposal could be reallocated to mainly fund the group's existing businesses and/or any future prospective businesses. “The Proposed disposal is viewed as a positive move that provides a timely opportunity for the Group to immediately unlock and realise the value of the investment and assets in Pantasniaga. “We aim to digitalise the local healthcare industry by building a seamless ecosystem that can influence the way medical services are being conducted,” he said. Hong Seng added that the proposed disposal is expected to be completed by the third quarter of the year. Shares in Hong Seng closed four sen or 5.13% higher to 82 sen on Friday, giving it a market capitalisation of RM4.19 billion.

https://theedgemalaysia.com/node/642888

国行截至10月杪国际储备升0.7%至1052亿美元

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（吉隆坡7日讯）连续两个月下跌后，国家银行截至今年10月31日的国际储备微扬0.7%至1052亿美元，10月14日报1045亿美元。 过去两个月，国行的国际储备从1109亿美元（截至8月15日）降至1045亿美元（截至10月14日）。 国行今日发布文告指出：“国际储备水平足以应付5.5个月进口和1.1倍短期外债。” 国际储备包括5个组成部分，即外汇储备、国际货币基金组织（IMF）储备、IMF相关特别提款权、黄金即其他储备资产。 值得注意的是，外汇储备从两周前的926亿美元，增至937亿美元，其他储备资产则从30亿美元，降至26亿美元。 同时，其他组成部分保持不变，IMF储备企于13亿美元，特别提款权及黄金则分别企于55亿美元和21亿美元。 截至10月31日，国行的资产总额达5830亿3000万令吉，流通货币则有1578亿6000万令吉。   （编译：陈慧珊  & 魏素雯）   English version：BNM international reserves up 0.7% to US$105.2b as at Oct 31

https://theedgemalaysia.com/node/661387

Market in 2QCY2023 will continue to be beset by lack of conviction, says Kenanga

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KUALA LUMPUR (March 30): Kenanga Investment Bank Research has maintained its end-calendar year 2023 (CY2023) FBM KLCI target of 1,610 points, and said the market in the second quarter of CY2023 (2QCY2023) will continue to be beset by a lack of conviction, both to buy and, to a certain extent, to sell, similar to what happened during the greater part of 1QCY2023. In a strategy note on Thursday (March 30), the research house said that globally, investors are still awaiting the elusive signs of inflation finally being reined in. “Complicating the situation are mixed signals from the continued strength in the US economy (especially the labour market and, to a certain extent, consumer spending), and the recent banking crisis in the US and Europe. “Locally, while the new government continues to advance its policy reform agenda in favour of a more progressive, pro-consumer, pro-competition and free-market approach, it will do so at a more measured pace and subtle way, ahead of the six state elections that are widely expected to be held in June 2023,” it said.

https://theedgemalaysia.com/node/625450

Kit Siang urges Cabinet to freeze all increases in salaries and allowances of GLCs

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KUALA LUMPUR (June 24): DAP veteran Lim Kit Siang has called on the Cabinet to issue a directive to freeze all increases in salaries and allowances of government-linked companies (GLCs) and government-linked investment companies (GLICs). In a statement on Friday (June 24), the Iskandar Puteri MP also said the government should sack GLC and GLIC nominees who violate the Cabinet directive. Lim said the Cabinet directive should be presented to Parliament on July 18 for parliamentary sanction. His urging comes in the wake of FGV Holdings Bhd (FGV) voting for the increase in the annual allowance of the FGV chairman to RM480,000 from RM300,000 — an increase in RM180,000 — and the increase in the annual allowance of the six board directors  to RM150,000 from RM120,000. “This is not only most excessive in troubled economic times, but downright obscene, and must be smacked down by the Cabinet and Parliament,” he said. The DAP elder said the Cabinet and Parliament must send out a strong and unmistakable message that this is the time for belt-tightening and not for extravagance and waste. “Will the Cabinet and Parliament send out such a message? “The chairman of FGV and the six board members can help retrieve the situation by declaring that they would not accept the indecent increase in the allowances,” he concluded. Read also: Pay raise for FGV chairman, non-executive directors

https://theedgemalaysia.com/node/667853

5G: Govt to ensure rural communities are not marginalised, says Zahid

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TAMPIN (May 20): The government will ensure that residents in rural areas, especially those involving the Federal Land Development Authority (Felda), the Federal Land Consolidation and Rehabilitation Authority (Felcra) and the Rubber Industry Smallholder Development Authority (Risda) are not marginalised from 5G coverage, says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. He said the responsibility was not only borne by telecommunications companies, but also required the cooperation of all parties. “As the person who has been given the responsibility to take care of rural and regional areas, I don't want them to be marginalised from getting telecommunications coverage. "I don't want our children to have to climb trees to get coverage. I don't want settlers to have to go near the (telecommunications) tower just to get coverage," he said while speaking at the Negeri Sembilan Umno Liaison Body's Aidilfitri Open House here on Saturday (May 20). Also present were Menteri Besar Datuk Seri Aminuddin Harun and Defence Minister Datuk Seri Mohamad Hasan. Ahmad Zahid, who is also rural and regional development minister, said rural communities must be given equal treatment in getting 5G coverage even though it had now reached 64% in highly populated areas. Apart from that, he said the government would ensure the housing issue for Felda's second generation was resolved immediately. "In Felda Jelai 1,2,3 here (for example) I know the Menteri Besar (Aminuddin) is helping, but the needful must be done now. I believe that the problems of the second generation must be solved immediately because they are our supporters," he said.

https://theedgemalaysia.com/node/652478

Tech startup workers’ dreams of big payouts are put on hold

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SAN FRANCISCO (Jan 19): For employees, joining a startup can be like making a bet: That getting shares in the business will one day provide a lucrative payout, despite the long hours and instability. Rank-and-file staff who are in the right place at the right time — a hot company in a soaring market — can score millions. But even in the good times, many workers walk away without much to show for their stock options.  And this year is not poised to be a good time. Late-stage companies that were expected to enter the public markets this year are facing uncertainty, and big-ticket company sales have become increasingly rare. The result is less liquidity for startup workers, more interest in creative ways to cash out, and for many, at least a short-term hit to compensation.  Startup equity “is such a black box for people. You join a company and you sign this equity package, and the reality is you don't know how it’ll work,” said Jaime Moreno de los Rios, chief operating officer at Secfi, which helps startup employees manage their shares. “People thought 2022 was going to be their year. All of a sudden, things froze.”  On average, stock options make up about 86% of a Silicon Valley startup staffer’s net worth, according to a recent report by Secfi, which analysed more than 4,300 stock option grants uploaded to its platform by employees last year. That means that many workers are badly exposed to declines in tech market valuations, which have hit both the public and private sectors. Meanwhile, about a quarter of companies on the Secfi platform reduced their internal valuations in 2022. At the same time, a recent report from salary tracker Levels.fyi found that total compensation had fallen across a wide swathe of tech industry jobs in 2022. Secfi’s Moreno de los Rios said that there’s been an uptick in startup employees interested in financing — a way to extract money from their stakes, even if there’s no clear opportunity to sell them on the horizon. Workers can borrow cash against their shares, and won't have to pay it back if the shares go to zero. Kevin Swan, co-head of global private markets at Morgan Stanley at Work, which provides financial services for employees, said he’s also seen more companies try to get employees financing. “We’re now having an increased number of conversations with companies looking to explore how to do this,” Swan said. “We’ll see that continue to develop as we move further into 2023.” In a turbulent environment, there are some silver linings for employees at companies that lower their internal valuations. Cheaper shares could mean more upside if the market recovers, and the possibility of lower tax bills for employees. Last year, according to Secfi’s report, startup staffers walked away from 36% to 54% of their vested stock options, leaving them to trickle back into their company’s equity stockpile — a move that meant those employees lost out on anywhere from US$10,000 to US$96,000 in assumed gains. One reason workers forfeit equity is that they don’t have the funds to foot the tax bill that comes along with exercising options. Even in a market characterised by massive layoffs, companies are still aware of the need to keep their best employees happy. “There seems to be an increasing level of responsibility companies are feeling to take care of their employees,” Swan said. “In the tech market, talent is everything.”

https://theedgemalaysia.com/node/676792

Sabah will enjoy equitable development under Economy Madani, says Arthur Kurup

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KOTA KINABALU (July 31): Sabah will get to enjoy equitable development encompassing education, infrastructure, and job opportunities through the Economy Madani framework which was launched by Prime Minister Datuk Seri Anwar Ibrahim recently. Describing the framework as being inclusive, Parti Bersatu Rakyat Sabah (PBRS) president Datuk Arthur Joseph Kurup said the commitment of the unity government to raise the quality of life of Malaysians can be seen, among others, through the additional allocation of RM800 million to solve water issues in Kelantan and Sabah. The deputy science, technology and innovation minister said the additional allocation for a short-term solution to water issues in both states will ensure quality water supply can be enjoyed by the people consistently. In the education aspect, Arthur said PBRS fully supports the unity government's move to increase the allocation, simplify procurement procedures as well as on the decentralisation of power to speed up the implementation of school projects and repair of dilapidated schools. "I am confident that this effort will help simplify matters and speed up the Sabah government's efforts to plan, repair, and develop educational facilities in accordance with the needs of the people," he said. Arthur, who is Pensiangan Member of Parliament, said access to facilities and a comfortable school environment are critical in shaping the minds of children in rural areas. Elaborating further, he said the unity government's aim to ensure low-carbon development by focusing on increasing renewable energy generation capacity is in line with Sabah's commitment to producing renewable energy to attract investors who prioritise environmental, social, and governance aspects. Apart from this, the implementation of policies to support the increasing wages compared to gross domestic product (GDP) to a level of 45% will allow Sabahans to earn more without having to migrate to the peninsula. "This will indirectly accelerate the domestic economic cycle and drive Sabah's economy to a higher level," he also said. Meanwhile, United Progressive Kinabalu Organisation (Upko) president Datuk Ewon Benedick said he believes the Economy Madani framework will take Malaysia towards being more progressive for the next 60 years  Ewon, who is the entrepreneur development and cooperatives minister, said the Prime Minister when launching the framework, among others, emphasised the significant role of Malaysian youths, especially in economic activities and entrepreneurship. "In my opinion, the cooperative movement is among the best platforms for youths to collaborate in entrepreneurship and cooperatives," he said

https://theedgemalaysia.com/node/671207

Man shot dead at close range in Bandar Sunway

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KUALA LUMPUR (June 14): A man was shot dead at close range at a telecommunication accessory shop in Bandar Sunway, Subang Jaya here on Wednesday. In the 1.35pm incident, the 32-year-old victim was believed to have been shot twice. Subang Jaya District Police chief ACP Wan Azlan Wan Mamat said that when police arrived at the scene, they found the man lying in a pool of blood and rushed him to hospital. “The victim was pronounced dead at Serdang Hospital,” he said in a statement. Wan Azlan said that based on the initial investigation, three men entered the premises and one of them fired at the victim, who had criminal records for theft and robbery. “The forensics team found two bullet casings, one bullet shrapnel, one fired bullet and a pair of slippers at the scene. “Investigations are being carried out under Section 302 of the Penal Code for murder and police are also investigating if there is any secret society involvement,” he said. Wan Azlan urged those with information to contact the police at the Subang Jaya District Control Centre at 03-78627100 or investigating officer ASP Ahmad Faizal Shaikh Ab Rahim at 019-7506606.

https://theedgemalaysia.com/node/608480

Dividend of 3% announced for PTPTN’s education savings scheme

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KUALA LUMPUR (Feb 22): A dividend of 3% has been declared for the National Education Savings Scheme (SSPN) for 2021, slightly lower than 4% dividend declared for the previous year.  The dividend involves an estimated allocation of RM206.25 million, which will benefit 5.24 million SSPN account depositors, according to National Higher Education Fund Corp (PTPTN) chairman Wan Saiful Wan Jan.  This brought to RM1.06 billion the total annual dividend given to distributors since SSPN was set up, he shared.  The dividend payment is facilitated by net returns on investments made using deposits received by PTPTN.  Wan Saiful said PTPTN earned profit on SSPN investment deposits amounting to RM267.61 million, an increase of RM30.19 million or 12.72%, compared with RM237.42 million in 2020. “We would like to congratulate all depositors who always continued to save with PTPTN using SSPN.  “We will continue to diversify our efforts in ensuring that this achievement can be improved in the upcoming years,” Wan Saiful said during an event on Tuesday (Feb 22).  He said the SSPN collection of RM3.01 billion in 2021 was the highest since the establishment of PTPTN, and was higher by RM1.02 billion or 51.26% compared with the RM1.99 billion collected in 2020. Total SSPN collection as of Dec 31, 2021 was RM10.88 billion, he added. PTPTN also said 421,281 new SSPN accounts were opened in 2021, higher than its target of 400,000 new accounts per year. “As at Dec 31, 2021, a total of 5.24 million accounts had been opened since SSPN was introduced in 2004,” Wan Saiful added.

https://theedgemalaysia.com/node/615776

Youth investors not averse to risk, say financial planners

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This article first appeared in Capital, The Edge Malaysia Weekly on April 11, 2022 - April 17, 2022 YOUTH have always been seen as having a higher risk appetite in search of greater investment returns. But that may not be the case among Malaysian youth after the pandemic outbreak, with only 3% saying they have a high-risk appetite, according to the recently-published Securities Commission Malaysia Annual Report 2021. An investor survey was undertaken by the regulator in 2021 to assess the level of knowledge, behaviours and motivation of youth in the capital market. Marshall Wong, a licensed financial planner at FA Advisory Sdn Bhd, is surprised that only 3% had a high-risk appetite. “Quite a lot of people that I know are considered high risk. They actually invest in assets like cryptos. Some invested in cryptos in early 2019 and 2020. Even though cryptos fell a lot early this year, the returns are still quite high as compared to any other asset classes,” he tells The Edge. Kevin Neoh, a licensed financial planner at VKA Wealth Planners Sdn Bhd, observes that there has not been a shift towards being more conservative among youth when it comes to investing. On capital market products and their associated risks, 70% of the respondents deemed stocks/shares to be high risk. In contrast, they viewed investments in Amanah Saham Bumiputera as low risk. Interest was also seen in private retirement schemes, as well as unit trusts/mutual funds. Overall observations suggested that respondents perceived the capital market products as high-risk and this perception was consistent across the demographic profiles. “At the same time, the same survey reveals that the respondents view certain instruments such as contracts for difference as medium risk, whereas these can be a rather high-risk instruments,” says Neoh. “Investors have to understand if the investments and products they are currently investing in are actually risky or conservative. If I have the perception that the products I am investing in are safe — when they are not — I may feel that I am not taking risk as well,” he adds. The findings suggested that respondents considered several factors prior to investing, such as being aware of how much money was available for them to invest, advice as well as recommendations from friends and family, including on the potential returns on the investment. Paul Low Hong Ceong, president of the Financial Planning Association of Malaysia, says it is common to see those who have more disposable income but are not investment savvy and those from lower-income groups being more conservative in investing. Their investment portfolio should preferably be based on life goals, the duration they have for the investment and their ability to take risk. “Definitely, allocation across different instruments that move differently in the changing market is ideal. Again, this has to be pegged against the youth’s ability to take risk, otherwise they will be in for an emotional roller-coaster ride which may result in a knee-jerk reaction by selling too fast or following the wrong crowd in investing,” he explains. Wong stresses that having an emergency fund is the most important thing in the first three years of employment. His advice to the youth is to allocate a portion of their monthly salary to investments in an automatic manner. “Make sure the money is automatically credited into other types of investments, such as recurring investments for unit trusts. You can do that for crypto investments as well. The key here is ‘automatic’— you don’t have to think too much about it. For most people, when they see a huge amount of money in a bank account, they may not be able to resist the temptation to buy gadgets.” Wong shares that his personal investment in cryptos is aimed at hedging against any inflation risk that may happen in fiat currency. “However, [it is] not that a lot of my money will be going there. It is about 5%-10% of my investment portfolio, but it is quite high for a lot of people. So, it depends on your risk appetite.” Max Growth Wealth Education Sdn Bhd managing director Nicholas Chu thinks young investors should be able to take on more risks given their longer investment time horizon. “They have time to learn and even to have losses at a very young age, which they can absorb. They must learn to achieve consistent returns in future.” He advises investors to adopt the dollar-cost averaging method. “Investors can try to choose the top 20 best-performing financial products regardless of [whether they are] unit trusts or stocks. During this process, they can sharpen their mind and analytical skills and find more valuable investment products. “When they go for dollar cost averaging, it is recommended to have just a 10%-20% [of their] investment portfolio in income funds, in case you need funds to top up equity investments during a market correction.” Chu is of the view that, compared with alternative investments, traditional investments are a better option for young investors with greater protection. “If investors are interested, I would suggest less than 20% in alternative investments. I don’t think this should be their main investment.” Similarly, he does not encourage excessive investments in the crypto space. “I don’t reject it, but I don’t encourage investments in cryptos. Many youth only pay attention to the returns, which is a big problem. You must have an interest to find out why you have this kind of return.” On whether youth should explore opportunities in alternative investments, Low thinks that this may happen as the youth earn and learn more. “They must also have emergency funds and, if possible, investment funds so that they do not need to dip into their savings should their investments drop when going through a down market. Personal finance and investment knowledge helps build confidence to take higher risk in investing through informed decisions.” Neoh cautions that certain alternative investments may have higher risks, such as liquidity and default risks. “Investors should be aware of their financial planning needs, with suitable asset allocation. I would suggest they focus on how to use the money they have to live better, and not just let potential investment returns be the major driver in their decision making.” Nonetheless, Wong opines that peer-to-peer (P2P) lending is something investors can consider. Although there have been defaults, investors may want to allocate a bit to this space considering its return rates. In 2021, the total funds raised via P2P lending reached RM1.14 billion, more than twice the amount raised in 2020, according to SC. Retail investors accounted for 90% of the investor base, while angel and sophisticated investors came in at 5% each. The total assets under management of licensed fund management companies (FMCs) in Malaysia continued to grow in 2021, increasing 5.04% to RM951.05 billion in 2021 from RM905.46 billion in 2020. Notably, the top five FMCs contributed to 54.81% of the total AUM compared to 55.27% in 2020. Take Areca equityTrust — the winner of the Equity Malaysia (Malaysia) category (three, five and 10 years) in the Refinitiv Lipper Fund Awards 2022 — for example. It registered returns of 104.98%, 161.39% and 334.62% for the periods of three, five and 10 years ended Dec 31, 2021, respectively. During the same three- and five-year period, the benchmark FBM KLCI was down 7.3% and 4.5% respectively, but it registered a positive return of 2.4% for the 10-year period. Meanwhile, Bitcoin — the largest crypto by market capitalisation — has leapt 1,058.5%, 4056.3% and 10,200 times during those periods.   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/621984

Press Metal 1Q net profit more than doubles on higher aluminium price and output

English

KUALA LUMPUR (May 30): Press Metal Aluminium Holdings Bhd's first quarter (1Q) net profit surged 104.66% to RM421.02 million, from RM205.72 million a year earlier, on higher aluminium price, additional output and higher profit sharing from associated companies. Earnings per share for the quarter ended March 31, 2022 rose to 5.21 sen from 2.55 sen previously, the group's bourse filing showed. Revenue grew 86.56% to RM3.92 billion from RM2.1 billion mainly due to the higher aluminium price and additional production output following the full commissioning of the group's Phase 3 smelting operations in October 2021. Press Metal declared a first interim dividend of 1.5 sen per share, payable on June 27. Press Metal group chief executive officer Tan Sri Paul Koon said the financial results represent a growth trajectory driven by expansion strategies across its value chain. "Market fluidity on the backdrop of demand and supply dynamics is an expected phenomenon in our business. "We have experienced numerous cycles over the years and ultimately, placing an emphasis on our own competency and efficiency is how we continue to remain competitive," he added. On the supply front, Koon said persistently high energy prices in Europe have led to the curtailment of aluminium supply which should lend support to the metal's price. He said China is currently filling the supply gap in the Western markets as its domestic market activities faced temporary slowdown due to the implementation of pandemic lockdowns in recent months. But he said this could swiftly reverse when the Chinese economy switches back on gear with the eventual easing of lockdowns coupled with its US$2.3 trillion infrastructure plan to spur the economy. "With the reopening of economies and heightened manufacturing activities in the region, we believe that Southeast Asia, being an export hub, should see additional demand for raw materials such as aluminium. "Leveraging on our position as the largest aluminium smelter in this region, we are well positioned to seize this opportunity as customers prefer to avoid uncertainties stemming from logistic disruptions and trade tensions," he said. Press Metal's share price settled two sen or 0.36% higher at RM5.50 on Monday, bringing it a market capitalisation of RM45.32 billion.

https://theedgemalaysia.com/node/609089

末季净利扬20% 大众银行派息7.7仙

Mandarin

（吉隆坡25日讯）全国第三大银行大众银行（Public Bank Bhd）截至2021年12月杪第四季（2021财年第四季）净利上升20.3%至13亿8000万令吉，上财年同季为11亿5000万令吉，得益于贷款减值拨备金减少（2亿7430万令吉）及净利息收入增加（1亿4990万令吉）。 然而，这被投资及其他收入下跌所部分抵消。 这导致2021财年末季每股盈利增至7.11仙，2020财年末季为5.91仙。 惟营业额从49亿2000万令吉，微跌1.2%至48亿6000万令吉， 该集团宣布，派发每股7.7仙第二次中期股息，将于3月22日支付。这把全年总股息提高至15.2仙，总计29亿5000万令吉，占2021财年净利的52.2%。 季度业绩表现亮眼，把2021财年净利推高至56亿6000万令吉，较上财年的48亿7000万令吉上涨16.1%。不过，2021财年营业额下滑了3.4%至196亿2000万令吉，2020财年报203亿令吉。 大众银行把2021财年盈利增长归功于一年前的低基数效应，当时新冠肺炎疫情史无前例地引发公共卫生危机，导致大多数经济活动停止。 大众银行创办人、名誉主席、董事兼顾问丹斯里郑鸿标在文告中表示：“尽管2021年充满挑战，大众银行集团仍能够以持续的资产负债表实力度过艰难的一年。集团继续展示弹性，净股本回报率为 12.4%，有效成本对收入比率达31.6%。” “随着经济逐步复苏，集团将继续专注于进一步加强业务弹性，包括保持资产质量、维持成本纪律和维持高标准的公司治理。” 他补充说：“集团将继续保持敏捷和应变能力，以确保业务的长期可持续性，以及所有利益相关者的利益。” 休市时，大众银行涨9仙或2.1%，至4.37令吉，成交量约1200万股。市值达848亿2000万令吉。   （编译：魏素雯）   English version：Public Bank 4Q net profit up 20%, declares 7.7 sen dividend

https://theedgemalaysia.com/node/654272

SRC International would appoint new solicitors in its suit against Najib, courts told

English

PUTRAJAYA (Feb 7): The Federal Court and the High Court here were informed on Tuesday (Feb 7) that SRC International Sdn Bhd will have a new set of solicitors representing it, replacing the previous one from Messrs Rosli Dahlan Saravana Partnership. With that, the scheduled SRC International hearing of the suit against former prime minister Datuk Seri Najib Razak and six others at the High Court later this month had to be vacated. This was indicated to High Court (commercial division) judge Datuk Ahmad Fairuz Zainol Abidin following case managementon Tuesday morning. He has fixed Feb 28 for the new solicitors to update the court as understood by The Edge. Initially, Ahmad Fairuz had fixed Feb 13 to Feb 23 this year for the hearing of the suit. Similarly, with regard to Najib’s appeal for the RM42 million Mareva injunction imposed against him — in relation to the suit filed by SRC International and Gandingan Mentari that was obtained by the High Court and affirmed by the Court of Appeal, the apex court deputy registrar Mazuliana Abdul Rashid was also informed on Tuesday by the representative from Rosli Dahlan Saravana that new solicitors for SRC International and Gandingan Mentari had been pulled in. Hence, Mazuliana has fixed Feb 22 for case management for parties to update the apex court. Rosli Dahlan Saravana was the solicitor for the 16 suits filed by SRC International and six by 1Malaysia Development Bhd (1MDB). However, it remains unknown if the law firm will represent 1MDB. All those suits were filed in May 2021 by the firm. SRC International filed the US$1.18 billion suit against Najib and six former senior officers of SRC that included its former managing director Nik Faisal Ariff Kamil. The company claimed Najib as the advisor emeritus and leader of the government who supported the company and gave the go-ahead for it to get the RM4 billion Retirement Fund (Incorporated) (KWAP) loans in 2011 and 2012, leading to the bulk of the funds being transferred overseas. It claimed that Najib changed the investment structure of which the loans were supposed to be utilised, going against Bank Negara Malaysia (BNM)’s requirements. The firm further showed the money trail in the utilisation of the fund, including a sum of US$120 million that had allegedly gone into Najib’s account or placed under his control, and a sum of US$82,000 that was allegedly transferred to Najib’s proxy Nik Faisal. Besides naming Najib and Nik Faisal, the firm named former board members Datuk Suboh Md Yassin, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail, Datuk Mohammed Azhar Osman Khairuddin and Datuk Che Abdullah @ Rashidi Che Omar as defendants. However, five of them were later dropped as defendants. The firm obtained a judgement in default against Nik Faisal on Nov 1, after he failed to enter an appearance in the suit. Later, Ahmad Fairuz allowed Najib’s application to bring third party notices against Suboh, Shahrol Azral, Ismee, Azhar and Che Abdullah back into the claim late last year. Besides the commercial suit, SRC International and Gandingan Mentari also filed a RM42 million suit against Najib for the fund he received from SRC. The former premier had been convicted and is already serving his 12-year jail sentence and a RM210 million fine. As a result, the High Court judicial commissioner Datuk Mohd Arief Emran Arifin, had in March last year obtained a Mareva injunction which bars the former premier from removing, disposing of, dealing with or diminishing the value of any of his assets in and outside of Malaysia, of up to RM42 million, pending the final determination of the suit. Besides this, the court directed Najib to disclose to the plaintiff’s solicitors in writing, his assets in or outside of Malaysia, up to the value of RM42 million, within 30 days of the March last year’s order. Najib, in complying with the Mareva injunction requirements on SRC and Gandingan Mentari, however, disclosed to the court in his affidavit last August that his assets were worth RM4.49 million. A three-member Court of Appeal bench had upheld the Mareva injunction last Dec 22, resulting in Najib appealing the matter to the apex court, where the case management was fixed for Feb 7 (Tuesday). “Having considered the submissions, both orally and written, the bench found there is no appealable error that warrants the appellate court’s intervention. The order of the High Court [to impose the Mareva injunction] is therefore affirmed,” Datuk Yaacob Md Sam, who was leading the bench, said in dismissing Najib’s appeal. In Tueday’s proceedings, Najib was represented by Muhammad Farhan Shafee, while Thenest Anbalagan and Lisa Yong from Rosli Dahlan Saravana appeared for SRC International at the High Court and Federal Court respectively. Read also: Najib granted leave to file third-party notices against SRC board in US$1.18b suit  SRC obtains judgement in default against Nik Faisal in US$1.18 billion suit  Najib fails to set aside RM42m Mareva injunction

https://theedgemalaysia.com/node/668034

Komarkcorp's subsidiary gets establishment licence from MDA for sterile surgical tie-on mask

English

KUALA LUMPUR (May 22): Komarkcorp Bhd’s unit Komark Mask (M) Sdn Bhd (KMM) has received official notification from the Medical Devices Authority (MDA) that the company’s prototype, sterile surgical tie-on mask has been granted MDA registration.   In a bourse filing, Komarkcorp said the award of MDA registration for this product is timely as KMM is beginning to explore overseas markets for export of surgical masks.   Surgical tie-on masks, unlike medical face masks, are used in operating theatres and in countries with high levels of medical safety awareness. The demand for sterile surgical masks is robust and continuous, Komarkcorp noted.     According to Komarkcorp, KMM has spent the last nine months in research and development (R&D) to produce this product and have explored the market through two international medical expos in Dusseldorf November 2022 and Dubai in Feb 2023 with a great deal of interest.   In addition to the MDA licensing, KMM has also submitted a non-sterile version to cater for markets which have not adopted a higher standard of protection.   Shares of Komarkcorp closed 0.5 sen or 5.88% lower at eight sen, for a market capitalisation of RM46 million.

https://theedgemalaysia.com/node/656064

More than 93,000 workers in US-based tech companies laid off so far in 2023 — data

English

KUALA LUMPUR (Feb 21): More than 93,000 workers in US-based tech companies have been laid off in mass job cuts so far in 2023. In a report last Friday (Feb 17), Crunchbase, which tracks trends, investments and news of global companies from start-ups to the Fortune 1000, said the number includes Twilio’s 1,500-person cut, DocuSign’s 680-worker cut, and Wix‘s 370-person layoff announcements this week. The firm said that last year, more than 140,000 jobs were slashed from public and private tech companies, as they were forced to confront rising inflation and a tumultuous stock market. It said the economy has come to reckon with a culture of overzealous hiring and soaring valuations, and startups are now forced to carry themselves through a frosty market as venture funding becomes barren. Tech companies as big as Qualtrics, Carta and Verily have slashed jobs this year, citing overhiring during periods of rapid growth, it said. Crunchbase said it only covers US-based companies or companies with a strong US presence, and included both startups and publicly traded tech-heavy companies. It also included companies based elsewhere that have a sizable team in the United States, such as Klarna, even when it’s unclear as to how much of the US workforce has been affected by layoffs. The firm sources the layoffs from media reports, its own reporting, social media posts, and layoffs.fyi — a crowdsourced database of tech layoffs.

https://theedgemalaysia.com/node/646195

次季净利扬36% AMMB派息6仙

English

（吉隆坡30日讯）大马银行集团（AMMB Holdings Bhd）第二季净利按年上扬35.6%，得益于贷款增长和净息差扩大。 该银行集团今日向大马交易所报备，截至9月杪2023财政年次季净利达4亿3540万令吉，或每股13.15仙，相较于上财年同期的3亿2104万令吉，或每股9.69仙。 次季营业额从11亿2000万令吉，微增至11亿8000万令吉。 该集团宣布派发每股6仙的中期股息，派息率为23%。 累积首6个月的净利为8亿5460万令吉，高于一年前的7亿764万令吉；营业额则由23亿6000万令吉，滑至23亿5000万令吉。 休市时，该股微升0.49%或2仙，至4.14令吉，交投量为121万股。   （编译：陈慧珊）   English version：AMMB reports 36% rise in 2Q net profit to RM435m, declares six sen dividend

https://theedgemalaysia.com/node/627353

Of property headwinds and wealth creation

English

This article first appeared in City & Country, The Edge Malaysia Weekly on July 11, 2022 - July 17, 2022 Good times or not, Malaysian real estate value will continue to climb over the long term, albeit some at a stronger rate than others. There are, however, exceptions where property values have plunged but never recovered, even after decades. Fortunately, such sad incidents are few. Real estate investment is close to the heart of Malaysians, creating fortunes for many. Renting a home is not unusual either and this is often the result of financial constraints or work convenience. Interestingly, I know of a gentleman who had strongly advocated against buying a house on mortgage — he chose to be a renter. Very well-educated and one who has his finger on the pulse on the economy, he was adamant that there was no way the bank would benefit from his investment! Clearly, he was not convinced about the power and benefits of leveraging, ignoring the ravages of inflation. Eventually, he did buy a house — presumably with cash — at a very late stage of his life. As exciting and exhilarating as the experience can be, buying a property is not without risks. The journey has been known to have scarred some unfortunate investors for life. This begs the question of how to nail a winning investment but we shall leave this discussion for another day. Besides buying property, there are other real estate-­related wealth creation avenues such as property stocks and real estate investment trusts (REITs).  REITs are a key consideration in the make-up of an equity or fixed-income portfolio. Yet, even though they have been available in Malaysia for many years now, providing diversification with relatively stable returns and lower overall risk, they are not on the radar of many investors. Some REITs are traded on the stock exchange but there are others that are privately owned. Promoters of REITs call this investment a good proxy for the property market. Furthermore in Malaysia, if 90% or more of a REIT’s current-year taxable income is distributed to unitholders, it is exempt from income tax. However, the fund will still have to pay a withholding tax at 10%. Earnings for REITs are derived from revenue tied to the occupancy and rental rates of the buildings in its portfolio. Beyond earnings growth, there is upside potential in the value of the buildings. As their name suggests, commercial REITs focus on office blocks while retail REITs place their money on retail properties. Currently, as the Covid-19 pandemic eases, industrial and logistics-related REITs are the darlings of the day. Commercial and retail buildings are still reeling from not just the impact of the pandemic but also the hard knocks arising from the abundant space supply that existed even before the onslaught of Covid-19 in early 2020. It is basic knowledge that occupancy and rental rates are aligned to supply and demand. As at the end of 2021, Malaysia had a total of 2,583 purpose-built office buildings (23.97 million sq m) with an occupancy of 78.3%. Another 44 buildings among incoming supply will add 1.65 million sq m. According to the latest government data, as at 1Q this year, Malaysia’s private (non-government-owned) purpose-built office buildings were 71% occupied on average. The bulk of these vacant spaces totalling 5.23 million sq m (housed in 836 buildings) are found in Kuala Lumpur followed by Selangor, Johor and Putrajaya. On the retail scene, as expected, shoppers have begun returning to malls. Still, retailers will not find it a walk in the park in the days to come. They have to contend with shoppers having an abundance of choice, the popularity of online shopping as well as the rising cost of living.  By 2021, Malaysia already boasted a total of 1,062 shopping complexes (17.28 million sq m). Another 43 complexes (1.71 million sq m) will soon be joining the already crowded market. As at March this year, the shopping complexes were 76.2% occupied. It must be noted that the government’s classification of shopping complexes is pretty general. For instance, open-air hybrid retail centres, fast becoming popular, are also lumped into this category. In reality, it is not just gloom and doom. There are office and retail centres that continue to enjoy high occupancies and this could be attributed to reasons such as their respective unique offerings like a strategic location, easy connectivity and profile of tenants. Last but certainly not least, providing a safe and conducive working or shopping environment matters and this is something that can only be achieved with top-in-class maintenance of the spaces. In a crowded market that is still expanding, tenants are king. Rental wars and the throwing in of rebates and other freebies to fill spaces are neither sustainable nor effective in the long run. Be that as it may, a building, any building for that matter, requires quality maintenance for value creation.  Best practices in property management go beyond paying attention to what is visible to the eyes of the public, such as a beautiful façade. It is what goes on behind the scenes that matters even more. For, ultimately, it is about the safety, security and general well-being of the building’s occupants or visitors. Naturally, any enhancement work and quality upkeep of a building is not cheap. Saving costs by focusing just on the bare minimum operating expenditure in order to get the building going is a step towards a slippery slope.  The injection of capital expenditure to continuously improve and enhance the condition and experience of the building must be considered. For instance, is the indoor air quality good enough? In order to keep tenants, is the building management acceding to demands that infringe on safety rules? Are there any structural defects that need fixing? How about the red flags raised over the piping or electrical issues? Do not be surprised that security and fire control rooms, the heart of buildings, are often in a sorry state with bad air circulation and sometimes very cramped.  Just how could those tasked with the important role of manning these stations stay alert under such trying circumstances? Is the equipment in tip-top condition? Preventive property management practices are crucial and these do not come free. Hence, there is always the temptation for REITs owners or managers to ignore the capital investment and stick to operational expenditure so that unitholders can be rewarded handsomely. Those in the driving seat must remember that investing in the sustainability of the building is not something that can be ignored or delayed. With the abundant choices for tenants on the market, it is only a matter of time before an ill-managed property will nudge itself out of play. A badly managed building will also impact negatively on its value. Hence the importance of balancing the rewarding of unitholders with ensuring the sustainability and relevance of the building. That’s the Real Deal. Au Foong Yee ([email protected]) is editor emeritus of The Edge. She is also the head judge of The Edge Malaysia Best Managed and Sustainable Property Awards, which examine, among other attributes, building safety. 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/675055

Vitrox, JF Technology, Kelington, Inari, Advance Synergy, Sports Toto, Hexza, AYS Ventures, UEM Sunrise, UPA Corp, Mah Sing

English

KUALA LUMPUR (July 17): theedgemarkets.com highlighted one stock with positive momentum and 10 stocks with negative momentum at Bursa Malaysia's afternoon close on Monday (July 17). The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum. This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements. The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time. However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum. For more detailed financial information and reports on the above-mentioned stocks, please subscribe to AbsolutelyStocks at www.absolutelystocks.com

https://theedgemalaysia.com/node/656568

UEM Sunrise returns to the black in 2022 after two years of losses

English

KUALA LUMPUR (Feb 22): UEM Sunrise Bhd returned to the black for the year ended Dec 31, 2022 (FY2022) after two years of losses, helped by a similar turnaround in the final quarter. The property developer posted a net profit of RM20.46 million in 4QFY2022, against a net loss of RM150.98 million a year earlier, supported by lower operating expenses and higher other income. This was despite a 28.41% drop in quarterly revenue to RM336.22 million from RM469.63 million in 4QFY2021, due to lower revenue contribution of RM42 million from the sale of industrial plots in Phase 3 of Southern Industrial & Logistics Clusters (SiLC) in Iskandar Puteri, Johor compared with RM192 million previously. For the full financial year, UEM Sunrise registered a net profit of RM80.54 million versus a net loss of RM213.05 million in FY2021, in tandem with higher revenue, in addition to improvements in other income, scaled down operating expenses and better share of results from joint ventures and associates. The group last recorded a profit in FY2019, when it posted a net profit of RM221.6 million, before slipping into the red with a net loss of RM277.28 million in FY2020 and RM213.05 million in FY2021. Full-year revenue increased 24.39% to RM1.47 billion from RM1.18 billion. About 72% of the revenue came from property development activities, 21% from land sales and assets divestment, and the remaining 7% from property investments and others. The group declared a dividend of 0.5 sen per share, amounting to RM25.3 million, payable on May 22.     UEM Sunrise reduced its inventories by 49% to RM203 million as at Dec  31, 2022, from RM396.9 million a year earlier. Its cash balances remained strong at RM1.02 billion while its net gearing remained moderate at 48%, as at Dec 31, 2022. The group's chief executive officer, Sufian Abdullah, said the results for FY2022 was a testimony to the effectiveness of the initiatives taken under Triage, the first phase of its three-pronged strategic turnaround plan. "Among the objectives under Triage was to ‘suture the bleed’ and better position ourselves for a long-term sustainable growth. “We have successfully monetised our inventories, heightened our property development activities and improved our cashflow. We have also completed the bulk of the phase 3 SiLC sale and divested some non-strategic lands," he said in a statement. Following the positive momentum of FY2022, the group plans to launch products worth RM2.5 billion in FY2023, while it set a sales target of RM1.5 billion for this year. Going forward, Sufian said the group aims to strengthen its  core business, ensuring that launch plans are intact, and target to have a healthier balance sheet. The group is optimistic of its performance in FY2023, given its sound financial position with a net gearing of 0.48 times, and cash balances of RM1.02 billion as at Dec 31, 2022. The group said its performance this year will also be supported by land sale transactions entered into the previous years. This includes the sale of the remaining land it owns in Tapah, Perak of 1,777 acres for RM75.5 million, and the sale of 67.7 acres in Gerbang Nusajaya, Iskandar Puteri for RM85.6 million. “Both transactions were entered into in December 2022 and are expected to become unconditional in the current year, contributing towards this year's profitability,” it said. UEM Sunrise has an unbilled sales of RM1.8 billion, which will be substantially recognised over the next 18 to 36 months. Shares in UEM Sunrise closed up 0.5 sen or 1.96% at 26 sen on Wednesday, giving the group a market capitalisation of RM1.32 billion.

https://theedgemalaysia.com/node/662284

European Union Aviation Safety Agency certification to accelerate Pecca's aircraft leather seat business

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KUALA LUMPUR (April 5): Automotive leather upholstery maker Pecca Group Bhd has reached a new milestone as the first and only Malaysian company to be certified by the European Union Aviation Safety Agency (EASA). The certification comes on the heels of Pecca’s wholly-owned subsidiary, Pecca Aviation Services Sdn Bhd (PASSB), receiving a Production Organisation Approval (POA) certificate from the agency. In a statement on Wednesday (April 5), Pecca said the POA, which is valid indefinitely unless revoked, certifies that PASSB is compliant with European Union regulations. The approved scope of work under the POA certificate are wrapping, cutting and sewing of leather or fabric for aircraft seat dress covers, headrest covers and armrest covers. The POA certificate is expected to contribute positively to Pecca’s earnings going forward. Chief Executive Officer of Pecca Group Foo Ken Nee said the aviation segment is one of Pecca’s key pillars and the EASA certification will certainly accelerate the segment’s revenue growth. “The POA certificate will provide us the platform to connect and serve with all types of aircraft globally registered under the EASA principles and guidelines. The certification will enable PASSB to have a competitive edge among the POA industry players in Malaysia, ASEAN and globally." He added this will provide further business opportunities to expand the customer portfolio of PASSB globally, in addition to the existing customer base that only serves Malaysian registered aircraft including private jets and helicopters, under the CAAM Part 145 AMO C6 rating (Civil Aviation Authority of Malaysia). With certification from the EASA, Pecca said it is poised to command  better pricing and margins for its aircraft upholstery offerings compared to the normal car seats it currently manufactures. “In addition, given the fact that there are not many players in the aircraft upholstery manufacturing landscape, this would better position Pecca in capturing future opportunities in the market,” the company said. The group is currently in the midst of expanding its production capacity to about 40,000 seats per month — from 20,000 to 22,000 seats — upon completion of its second manufacturing facility in Serendah. Shares of Pecca closed unchanged at RM1.02 per share, giving the company a market capitalization of RM767.04 million.

https://theedgemalaysia.com/node/643011

LGMS set to resume uptrend momentum, says RHB Retail Research

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KUALA LUMPUR (Nov 8): RHB Retail Research said LGMS Bhd is set to resume an uptrend momentum after it rebounded following two consecutive sessions of decline, forming a “higher low” bullish pattern above the previous breakout point of RM1.25. In a trading stocks note on Tuesday (Nov 8), the research house said on Oct 27, the stock demonstrated a strong breakout above that level before retracing from the recent high. “Assuming the buying momentum follows through, the stock will likely climb further towards the RM1.38 resistance, followed by the historical high level at RM1.45, or Sept 12’s high. “Conversely, the bullish momentum may reverse if it falls below the RM1.16 support, forming a 'lower low' bearish structure below the 21-day average line,” it said.  

https://theedgemalaysia.com/node/661776

The Week Ahead: Najib’s CBT trial, central banks’ monetary policy decisions in focus

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This article first appeared in The Edge Malaysia Weekly on April 3, 2023 - April 9, 2023 As the nation settles into the second week of Ramadan, attention will invariably turn to the trial of former prime minister Datuk Seri Najib Razak and former Treasury secretary Tan Sri Mohd Irwan Serigar Abdullah on six counts of criminal breach of trust charges involving more than US$6 billion to be paid to International Petroleum Investment Company. The trial will be heard from Monday to Thursday. On the economic front, the monetary policy decisions of three major central banks in Asia-Pacific are scheduled to be released: the Reserve Bank of Australia (RBA) on Tuesday, the Reserve Bank of New Zealand (RBNZ) on Wednesday and the Reserve Bank of India (RBI) on Saturday. Sixteen of 25 economists polled in a March 31 Bloomberg survey expect RBA to keep its cash rate target unchanged at 3.6% while nine expect a hike of 25 basis points to 3.85%. “In comparison, we are keeping our view of one more 25bps hike in April, which will take the cash rate target to 3.85%,” UOB Global Economics & Markets Research senior economist Alvin Liew said in the report. For RBNZ, 13 of the 14 economists polled expect the central bank to hike rates further by 25bps to 5% while a lone economist expects no change to the policy rate of 4.75%. “We expect a pause in the current tightening cycle [after the rate hike],” Liew said. Meanwhile, 10 of 11 economists polled expect RBI to hike its reverse repurchase agreement rate by 25bps to 6.75% but, again, one lone economist expects no change (6.5%). “The RBI cash reserve ratio is expected to be unchanged at 4.5% for the upcoming monetary policy meeting. RBI’s policy priority is containing inflation pressures while being mindful of the ongoing pass-through of input costs, and the stickiness of core inflation is ‘a matter of concern’,” Liew said. In Singapore, the preliminary first quarter of 2023 Urban Redevelopment Authority private home price index and official Purchasing Managers’ Index (PMI) for March will be released on Monday (April 3), S&P Global Singapore PMI and February retail sales on Wednesday, and the potential release of the nation’s March foreign reserves data between April 6 and 10. Liew said: “We expect to get confirmation of the release date for the Monetary Authority of Singapore’s (MAS) semi-annual Monetary Policy Statement (MPS) while the Ministry of Trade and Industry (MTI) will concurrently issue the preliminary 1Q2023 GDP data.” He added that MAS typically announces the MPS release date seven days in advance and it is expected to be released no later than April 14. UOB Global Economics & Markets Research expects MAS to tighten policy further in April via another higher re-centring of the Singapore dollar nominal effective exchange rate policy mid-point. “Admittedly, our confidence level for further tightening is now lower, owing to the US and European banking sector turmoil in recent weeks,” said UOB’s Liew. The Singapore market will be closed for the observation of Good Friday (April 7), alongside Australia, New Zealand, Hong Kong, the Philippines, India and Indonesia. Ahead of Good Friday, the Philippine market is closed for Holy Thursday (April 6) while India is closed for Mahavir Jayanti on Tuesday (April 4). Australia, New Zealand and Hong Kong will get an extended holiday for Easter on Monday (April 10). Elsewhere, attention will be on China’s announcement of its foreign exchange reserves for March on Friday. “This data is important to gauge the direction of cross-border capital flows when the US and Europe are at the core of the financial market turmoil. We expect a slight inflow into China in March, as China is away from the sources of the turmoil and its economy is recovering,” ING said in a March 30 note. Meanwhile, consumer price index data in Indonesia and South Korea are also on the cards this week. Over in the US, eyes will be peeled for the ISM manufacturing survey for March, February construction spending and Wards total vehicle sales for March on Monday (April 3); US February factory orders on Tuesday; trade data for February on Wednesday; initial jobless claims for the week ending April 1 on Thursday; and the March Labor Market report on Friday. On the corporate front, Bursa Malaysia-listed KLCC Property Holdings Bhd will hold its annual general meeting on Thursday while Harn Len Corp Bhd will hold an extraordinary general meeting on Friday. 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/674606

Companies in the news: Pharmaniaga, Microlink Solutions, Sapura Resources, Hap Seng, Serba Dinamik, Sersol, SMTrack, Zhulian

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KUALA LUMPUR (July 13): Here is a brief recap of some corporate announcements that made the news on Wednesday (July 12) involving Pharmaniaga Bhd, Microlink Solutions Bhd, Sapura Resources Bhd, Hap Seng Consolidated Bhd, Serba Dinamik Holdings Bhd, Sersol Bhd, SMTrack Bhd and Zhulian Corp Bhd. Pharmaniaga Bhd has bagged a new seven-year concession agreement to provide medical supply logistics services to the Ministry of Health (MOH), following the end-June expiry of the six-month extension on its concession agreement with the government for the provision of medicines and medical supplies. The Practice Note 17 company said MOH issued the group's wholly-owned Pharmaniaga Logistics Sdn Bhd (PLSB) a letter dated July 12 for the contract, which took effect from July 1, 2023 and will last till June 30, 2030. The value of the contract, however, was not disclosed. It is also not clear how the new agreement varies from its previous concession agreement, which it originally secured in 1994. Technology solutions provider Microlink Solutions Bhd has accepted a letter of award worth RM28.97 million from the National Audit Department to develop a data warehouse, audit analytics application, audit dashboard as well as hardware and other supporting infrastructure. The company said that the contract is subject to a formal agreement being entered into by the parties. The project is expected to commence beginning August 2023 and will run for three years, concluding in July 2026. Sapura Resources Bhd said its aviation business at the Subang Airport that it is considering selling to Abu Dhabi-based private jet operator Royal Jet LLC comprises two wholly-owned subsidiaries with a total issued shared capital RM79.96 million. The subsidiaries are Sapura Aero Sdn Bhd with an issued capital of RM37.5 million, and DNEST Aviation Sdn Bhd with an issued capital of RM42.46 million. The group said this in a filing issued a day after it announced that it had signed a heads of agreement with Royal Jet on June 23. Hap Seng Consolidated Bhd is disposing of hotel operator Richmore Development Sdn Bhd to Gek Poh (Holdings) Sdn Bhd for RM51 million cash in a related party transaction. Via the deal, the diversified group is to see RM212.5 million in liabilities deconsolidated from the group’s books as Gek Poh replaces it as the new guarantor for Richmore’s bank borrowings. A share sale agreement was inked between the group’s indirect wholly-owned subsidiaries HS Hospitality Sdn Bhd, Hap Seng Land Development Sdn Bhd and Gek Poh for the disposal. HS Hospitality owns a 99.01% stake in Richmore, while Hap Seng Land Development owns the other 0.99%. The High Court in Shah Alam has fixed Aug 24 as the auction date in respect of five properties of Serba Dinamik Holdings Bhd for which Public Bank Bhd has obtained an order for sale. The five parcels of properties, charged to the bank, are located in Section 11, Shah Alam. The High Court in Kuala Lumpur has meanwhile fixed Aug 28 as the auction date in respect of three other properties charged to Public Islamic Bank Bhd (PIBB), two of which are located in Johor Bahru and the other in Klang. This comes after Serba Dinamik's wholly-owned subsidiary, Serba Dinamik Sdn Bhd (SDSB), defaulted on payments totalling RM14.63 million. The Malaysian Anti-Corruption Commission (MACC) said it is seeking the public's help to locate Datuk Justin Lim Hwa Tat to assist in an investigation.  Lim sits on the board of several public listed companies including Johor-based Sersol Bhd as chief executive officer and SMTrack Bhd as an executive director. Sersol executive chairman and managing director Datuk Lim Tiong Siang is the father of Justin Lim. Jewellery and consumer product manufacturer Zhulian Corp Bhd saw a 4.32% drop in net profit to RM9.45 million for the second quarter ended May 31, 2023, versus RM9.88 million a year earlier, mainly due to the absence of a net gain on disposal. Quarterly revenue slid 8.17% to RM33.43 million, from RM36.4 million, due to weak consumer spending associated with prevailing economic conditions and rising inflationary pressures. Despite the lower earnings, Zhulian declared a second interim dividend of three sen per share.

https://theedgemalaysia.com/node/660124

MOF: Bank loans supported by EPF savings to bear 4% to 5% interest

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KUALA LUMPUR (March 21): Bank loans using Employees Provident Fund (EPF) Account 2 savings as support are to bear annual interest rates of 4% to 5%, according to the Ministry of Finance (MOF). In a statement on Tuesday (March 21), the MOF reasoned that the initiative will therefore not burden the rakyat as the rate is much lower than the current personal financing market rate of around 8% to 15%. The ministry added that the government is currently finalising the initiative, and more details will be announced by the EPF at a later date. The ministry clarified that the Account 2 savings will be used as support for these loans; Prime Minister and Minister of Finance Datuk Seri Anwar Ibrahim had earlier said that the funds could be used as collateral. Reiterating Anwar's earlier reply during Minister Question Time at Parliament, the MOF said the initiative does not conflict with Section 51 of the EPF Act 1991 as savings in Account 2 are only used as support for the loan through withdrawals at the age of retirement. “This is in line with the EPF’s investment objective as a long-term retirement fund to protect and increase the value of members’ savings through the declaration of a stable and sustainable dividend rate,” it said. On March 9, Anwar — while adamantly against further EPF withdrawals — announced that Putrajaya was giving the green light to EPF contributors to use savings in their Account 2 as support for personal loans from banks to wade through difficult times. The EPF has since been tasked with assessing the measure’s implementation, with the pension fund saying it will carefully consider all relevant factors to ensure its smooth implementation. In the past two years, four tranches of EPF withdrawals were allowed — the special withdrawal facility (Pengeluaran Khas) of up to RM10,000 last year, i-Citra in 2021, as well as i-Lestari and i-Sinar schemes in 2020 — which resulted in a whopping RM145 billion withdrawn in total. According to Deputy Finance Minister Datuk Seri Ahmad Maslan, median EPF savings across all races fell to RM8,100 in 2022, versus RM16,600 prior to the pandemic in 2019. The pension fund also saw its assets under management drop for the first time in history in 2022, down 0.7% to RM1 trillion from RM1.01 trillion in 2021. Read also: Proposal to use EPF savings as bank loan collateral not against Act, says PM

https://theedgemalaysia.com/node/675921

UBS to pay US$387m in Credit Suisse-tied Archegos fines

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(July 24): UBS Group AG will pay a total of about US$387 million (RM1.77 billion) in fines related to misconduct by Credit Suisse Group AG in its dealings with Archegos Capital Management as the new owner of the collapsed Swiss rival starts picking up its legal tab. In a consent order with the Federal Reserve, UBS agreed to pay US$268.5 million for “unsafe and unsound counterparty credit-risk management practices” at Credit Suisse, which UBS acquired in June. The Bank of England’s Prudential Regulation Authority fined the bank £87 million (RM509.8 million), which it said was its largest penalty to date. Credit Suisse “failed to learn from past similar experiences and had insufficiently addressed concerns previously raised by the PRA”, the UK regulator said in a statement Monday (July 24). UBS’s acquisition of its stricken rival closed last month, handing chief executive officer Sergio Ermotti a potential windfall gain in the tens of billions of dollars after the government-brokered rescue. At the same time, UBS has previously guided that legal liabilities related to Credit Suisse could run to as much as US$4 billion over 12 months, and asset mark-downs could come in at some US$13 billion. The Fed said Credit Suisse “lacked adequate governance, experienced staff with sufficient stature, and sufficient data quality and model-risk management to ensure that activities conducted with counterparties were properly risk managed”. In addition to paying the fine, the bank must submit to regulators a plan for sustainable governance and a risk-management framework, among other things. Unlike other banks working with the family office that managed Bill Hwang’s fortune, Credit Suisse was slow to unwind its positions and ended up with US$5.5 billion in losses related to that business in 2021. UBS suffered a much smaller loss. The fines wrap up one of many legal and regulatory issues that UBS will aim to resolve after completing the purchase. The firm also faces a potential civil trial over a scandal in Mozambique and scrutiny into dealings with Russian oligarchs. US lawmakers last week also pushed Credit Suisse to cooperate with a probe into allegations the bank concealed information about accounts held by Nazis in the decades after World War II. UBS said that Credit Suisse would record a provision tied to the matter in its second-quarter results, which UBS would reflect in its purchase accounting for the deal. UBS is set to announce the combined firm’s second-quarter earnings next month. UBS “has already begun implementing its risk framework, including actions addressing these regulatory findings, across Credit Suisse”, the bank said in a statement Monday. Credit Suisse two years ago published a 172-page report into its failings that was prepared by the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP. Regulators cited details from that report, including that in early 2021 the bank’s credit risk management team downgraded Archegos’s credit rating internally, while also more than doubling Archegos’s potential exposure limit to US$50 million. The Swiss financial regulator, Finma, also ordered corrective measures for UBS as the regulator concluded that Credit Suisse had violated financial-market law in its relationship with Archegos. “The bank was unable to adequately identify, limit and monitor the significant risks associated with Archegos,” Finma said in a statement. The regulator doesn’t have the authority to impose fines.

https://theedgemalaysia.com/node/666530

Main Market returnee DXN’s IPO oversubscribed by 3.2 times

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KUALA LUMPUR (May 11): DXN Holdings Bhd announced that its initial price offering (IPO) was oversubscribed by 3.20 times by the Malaysian public, ahead of its listing on the Main Market of Bursa Malaysia on May 19. In a statement, the group said a total of 12,146 applications for 420.12 million new shares were received for the 100 million made available to the Malaysian public. Meanwhile, a total of 4,765 applications for 92.93 million new shares were received, representing an oversubscription rate of 0.86 times. On the other hand, for the non-Bumiputera portion, a total of 7,381 applications for 327.19 million new shares were received, representing an oversubscription rate of 5.54 times. Additionally, “the 60 million issue shares made available for application by the directors of DXN, eligible employees of the group and persons who have contributed to the success of the group have been fully subscribed”, the group added. As for the institutional offering, the joint bookrunners have confirmed that the 772.68 million shares offered to Malaysian and foreign institutional and selected investors, including Bumiputera investors approved by the Ministry of Investment, Trade and Industry, have all been taken up. Under the listing exercise, DXN aims to raise RM121.6 million from its IPO of 160 million new shares at an issue price of 70 sen per share. Of the RM121.6 million raised, RM80 million or 65.8% has been earmarked for repayment of bank borrowings, followed by RM17.51 million (14.4%) for working capital, and RM24.09 million (19.8%) for listing expenses. DXN is involved in sales of health-oriented and wellness consumer products. Previously listed on the Main Market in 2003, it was delisted in December 2011 after being privatised by founder Datuk Lim Siow Jin. Principal adviser Maybank Investment Bank Bhd, together with CIMB Investment Bank Bhd, are the joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO. Another joint underwriter is RHB Investment Bank Bhd, who is also a joint bookrunner for the IPO with CLSA Ltd and CLSA Securities Malaysia Sdn Bhd. The latter two are also joint global coordinators for the IPO. The notices of allotment will be mailed to all successful applicants by May 19, the group added. Read also: DXN eyes RM3.8 bil market cap upon Main Market return  DXN inks underwriting agreement with three investment banks for IPO  DXN Holdings eyes re-listing on Main Market, releases prospectus exposure

https://theedgemalaysia.com/node/671148

Fama targets to implement 115 Bazar Rakyat Agro Johor

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BATU PAHAT (June 14): The Johor Federal Agricultural Marketing Authority (Fama) is targeting a total of 115 Bazar Rakyat Agro Johor (BRAJ) to be implemented statewide. State Fama director Faidz Afizi Mohamad said the ongoing BRAJ, which started in February, will be held until April next year, with the cooperation of local community leaders. To date, as many as 30 BRAJ bazaars have been successfully implemented, and the remaining 85 locations will be focused on rural areas, mainly targeting sales of fresh produce, as well as small and medium enterprise (SME) products. “Among products sold at BRAJ are daily necessities, such as vegetables, chicken, meat, fish and eggs, at lower prices than the market. “The main purpose of the BRAJ bazaar which is held in the focus area is to help ease the burden of the people, who are affected by the rising prices of goods,” he said. He said this to reporters after inspecting the bazaar, at the Rengit Fama Food Processing Centre, which was also attended by Rengit assemblyman Datuk Dr Mohd Puad Zarkashi. At this BRAJ, a total of 600 chickens were sold, priced at RM6.40 per kg, within three hours, while 200kg of beef, at a price of RM32 per kg, sold out within two hours. Chicken seller, Zulkifli Abd Wahab, 47, said that he had to limit sales to two chickens per customer, due to an overwhelming response.  

https://theedgemalaysia.com/node/648447

Ancom Logistics poised to propel northwards, says RHB Retail Research

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KUALA LUMPUR (Dec 16): RHB Retail Research said Ancom Logistics Bhd is poised to propel northwards after it bounced off the 21-day average line on higher volume on Thursday, hitting the 14 sen immediate resistance level. In a trading stocks note on Friday (Dec 16), the research house said that if stock manages to surpass above that level, forming a “higher high” bullish pattern, the bullish bias above that level will likely drive the stock higher towards the 16.5 sen resistance, followed by the 20 sen mark. “Conversely, the stock may reverse direction if it falls below the 12 sen support, forming a 'lower low' bearish structure,” it said.

https://theedgemalaysia.com/node/605579

Tony Fernandes diversifies AirAsia, now known as Capital A, into non-airline biz

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KUALA LUMPUR (Jan 28): AirAsia Group Bhd has been renamed to Capital A Bhd to reflect the group's new business strategy as an investment holding group for not only its aviation business but also its logistics, lifestyle and financial services ventures, according to its chief executive officer (CEO) Tan Sri Tony Fernandes. At Capital A's event to unveil the new corporate identity on Friday (Jan 28), Fernandes said the name change is not just about unveiling a new logo but a significant milestone that marks a new era for the investing holding group, which reinforces that the group is not just an airline anymore. This comes after the group received almost 93% approval from its shareholders at its extraordinary general meeting on Thursday (Jan 27) to change its name from AirAsia to Capital A. Fernandes said that the group aims to achieve 50% of its revenue from its non-airline business by 2026 and it plans to focus exclusively on the ASEAN region with a 700 million population and strong growth prospects in the future. Capital A's CEO added that by 2026, it aims to achieve the following in the ASEAN region: its airlines connecting over one billion passengers; its engineering division, Asia Digital Engineering, to be the market leader in maintenance, repair and overhaul; airasia super app to be the app of choice, 10 million monthly active users for BigPay; 10% market share in Southeast Asia for Teleport, in the logistics and e-commerce industry; five million sign-ups for edutech arm AirAsia Academy; and over 21 million monthly orders on airasia grocer. Meanwhile, Fernandes also revealed that Capital A's long-haul affiliate, AirAsia X Bhd (AAX), is planning to launch flights to London and New York in the near future. AAX stopped flying to London in 2012 owing to record-high fuel costs and soaring taxes. Fernandes said that the group is unfazed by the entries of two new airlines, namely SKS Airways and MYAirlines, which were approved in December 2021. "We do not see the new airlines as an issue unlike some who try to block or talk about overcapacity, because our goal has always been to become the best in everything that we do, so no, competition does not affect us in any way," Fernandes remarked. Fielding questions from the media on its Practice Note 17 (PN17) status and how it would affect its liquidity, Fernandes said that the classification is merely an "accounting issue" and does not affect its liquidity by pointing to the RM2.5 billion it managed to raise in 2021. "I mean, if you look at the PN17 classification, it is purely accounting and in fact, the solution has nothing to do with liquidity. "That is why I have spoken with Bursa to relook at the rules and clarify the definition of what constitutes PN17, because it is not really clear to the layman. "PN17 has zero effects on us. We have technically been PN17 for the last two years but for the relief measures. "We raised RM2.5 billion [in 2021] and we are raising another RM1 billion of capital soon. PN17 was imposed because we did not pay the leasing costs which appear on the profit and loss (P&L) statement. "By accounting the restructuring, a merger deficit of RM5 billion has been recorded on the P&L. If we take these two things out, we would not be PN17 as the solution to PN17 is accounting as well, because the group has more than enough liquidity. "We are very focused on growing and adding value. We will continue to do so," Fernandes highlighted. When asked by theedgemarkets.com on how the group plans to unlock values from its digital businesses as it currently suffers from the "conglomerate discount", which rates investment holding companies with diversified businesses at a lower valuation, Fernandes responded by saying Capital A is still undergoing an evolution from an airline to an investment holding company with diversified businesses in logistics, lifestyle and financial services. He added that any talks of exit in the form of an initial public offering of its digital business is premature and the group will announce it in due time. "Changes are not going to happen overnight. We will just wait and see. The market will have to decide whether there is value in what we are doing," Fernandes added. Meanwhile, Fernandes said that the high oil prices will not affect its airline business as the group has pricing power owing to pent-up demand for travel after two years of movement restrictions due to the pandemic. "Last time I checked, every airline is affected by oil prices, but we do have pricing power in that we have the capacity and we can charge higher but the demand is still there. "Oil right now is a little bit frothy and it will come back. Crack prices are still manageable, so it is not a big issue for us right now. But oil prices still affect everybody, so that is one good thing for us," Fernandes added. At the time of writing, shares in Capital A Bhd (formerly known as AirAsia Group Bhd) were unchanged at 58 sen, valuing the investment holding company at RM2.41 billion.

https://theedgemalaysia.com/node/622190

Cocoaland's 1Q net profit soars 85% as revenue improves on stronger demand

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KUALA LUMPUR (May 31): Snack and candy maker Cocoaland Holdings Bhd reported an 85.39% jump in its net profit for the first quarter ended March 31, 2022 (1QFY22) to RM10.54 million from RM5.69 million a year earlier, despite rising raw material prices, fuel costs and freight charges, as revenue rose on stronger demand for its gummies, both under its house brand and its contract manufacturing business. The group's revenue for 1QFY22 rose 21.48% to RM65.74 million from RM54.12 million. The rise in revenue was also contributed by higher demand for snacks in Saudi Arabia, its bourse filing showed. Earnings per share for 1QFY22 jumped to 2.35 sen from 1.26 sen. No dividend was declared. Compared with the immediate preceding quarter of 4QFY21, net profit rose 19.27% from RM8.84 million, as revenue climbed 4.88% from RM62.69 million. Moving forward, Cocoaland said it is cautiously optimistic that its revenue will gradually return to pre-pandemic level. "The group will continue to monitor the development of the Covid-19 pandemic, impact of the implementation of the RM1,500 minimum wage starting May 1, 2022 as well as geopolitical tension and will take the necessary measures to mitigate against any potential impact on the financial position and operating results of the group," it said. Shares in Cocoaland closed one sen or 0.85% higher at RM1.19 on Tuesday, valuing the candy manufacturer at RM544.54 million.

https://theedgemalaysia.com/node/666149

Citaglobal’s unit wins RM261m rail rehabilitation KVDT2 works contract

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KUALA LUMPUR (May 9): Citaglobal Bhd’s wholly owned subsidiary has secured a RM261 million works contract for the Klang Valley Electrified Double Track Phase 2 (KVDT2). The contract, spanning three years starting from June 1, 2023, was awarded by KVDT2’s main contractor Dhaya Maju Infrastructure (Asia) Sdn Bhd and is expected to be completed after 36 months from commencement, it said. The KVDT2 is a rail rehabilitation project with an estimated value of RM4.475 billion that is being undertaken by Dhaya Maju LTAT Sdn Bhd — Dhaya Maju’s 80:20 joint venture with armed forces fund Lembaga Tabung Angkatan Tentera (LTAT). The KVDT2 project involves the replacement of existing 25-year-old railway tracks, an electrification system and an upgrade and maintenance of the facilities involving two railway tracks from Salak South to Seremban, and from Simpang Port Klang to Port Klang. In a statement, Citaglobal said its scope of works include the supply, delivery, construction, successful completion and maintenance of bridges, culverts, drainage and fencing works which forms part of the 265km electrified double-track network in the Klang Valley. “We are very grateful to have won this contract and play a role in the construction of KVDT2,” said Citaglobal executive chairman and president Tan Sri Dr Mohamad Norza Zakaria. “We will get down to business and look to complete the project within the stipulated timeline. This contract also marks Citaglobal’s orderbook approaching the RM1 billion mark, which further strengthens the earnings visibility of the company,” said Mohamad Norza, who is also a major shareholder in Citaglobal. Shares of Citaglobal slipped one sen or 0.69% to RM1.44 at the noon market break, giving it a market capitalisation of RM601.24 million.

https://theedgemalaysia.com/node/632711

Teladan Setia's 2Q profit nearly doubles to RM14 mil, declares 0.6 sen dividend

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KUALA LUMPUR (Aug 17): Teladan Setia Group Bhd's net profit for the second quarter ended June 30, 2022 (2QFY22) jumped 85.85% to RM14.24 million from RM7.66 million in the same quarter last year on higher revenue. Quarterly revenue soared 86.61% to RM75.61 million from RM40.52 million, mainly due to better sales from Taman Desa Bertam Phases 2, 3A and 3B as well as Bali Residences. The Melaka-based property developer declared a single-tier interim dividend of 0.6 sen per share, to be paid on Sept 19. For the cumulative first half ended June 30, 2022, Teladan Setia's net profit grew 60.58% to RM23.71 million from RM14.77 million, as revenue increased by 64.29% to RM134.51 million from RM81.87 million. On a quarter-on-quarter basis, Teladan Setia's net profit leapt 50.4% from RM9.5 million in 1QFY22, while revenue increased by 28.4% from RM58.9 million in the immediate preceding quarter. Going forward, the group plans to launch four more projects with a gross development value of RM808.2 million by 2022, including the group's first project outside of Melaka — comprising two towers of serviced apartments — in Seri Kembangan. "While the sentiment in the first half of the year has been largely positive, we are cognisant of the potential headwinds ahead. Bank Negara Malaysia has raised the overnight policy rate to 2.25% recently to contain inflationary pressure. This could impact demand as borrowing costs increase. However, our focus remains on introducing homes that are relevant to the demographics and thus possess price inelasticity," Teladan Setia's managing director Richard Teo Lay Ban commented. Shares in Teladan Setia closed up four sen or 3.67% at RM1.13, giving it a market capitalisation of RM910.08 million.

https://theedgemalaysia.com/node/652772

A good start for IPO market

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This article first appeared in The Edge Malaysia Weekly on January 23, 2023 - January 29, 2023   THE Bursa Malaysia gong has been hit six times in the first three weeks of the new year — perhaps an indication of a more active initial public offering (IPO) market in 2023. The six companies, of which five are listed on the ACE Market, have collectively raised more than RM500 million. Although the amount raised isn’t something to shout about, the counters’ performance has certainly raised eyebrows. The share price of two companies skyrocketed more than 200% above their offer price while that of two others soared more than 50% despite the cautious market sentiment. Nationgate Holdings Bhd, which made its debut on Jan 12, saw its share price more than double to 81 sen shortly after the market opened on its maiden trading day. Its offer price was 38 sen. TT Vision Holdings Bhd, which was listed on Jan 18, opened at RM1.49 — a huge premium of RM1.15 or more than four times over its issue price of 34 sen. Based on their closing price last Thursday, Nationgate’s share price had gained nearly 208% to RM1.17 from its offer price, while that of TT Vision had risen 253% to RM1.20. Of the other four that were listed this month, L&P Global Bhd had climbed 78.3%, while Wellspire Holdings Bhd, DS Sigma Holdings Bhd and Kumpulan Kitacon Bhd (Main Market) were up 58.7%, 17.3% and 10.29% respectively. M&A Securities Sdn Bhd managing director of corporate finance Datuk Bill Tan says “attractive valuation” is one of the factors driving the share prices up. Citing Nationgate as an example, he points out that the company had seen a big improvement in its quarterly net profit prior to listing. M&A Securities was the adviser for the IPO exercise. “Nationgate posted a profit after tax of RM30.05 million for its third quarter ended Sept 30, 2022 (FY2022). On an annualised basis, that is about RM120 million,” he tells The Edge. “Based on its IPO price, the price-earnings ratio (PER) is six times. In comparison to its peers in the electronics manufacturing services (EMS) sector, which is trading at an average PER of 20 to 25 times, there is still a lot of upside to Nationgate’s IPO price.” According to Nationgate’s prospectus, the company was valued at a PER of 11.9 times based on an offer price of 36 sen per share and audited pro forma annualised earnings per share (EPS) of 3.18 sen, or RM33.04 million, for the financial period ended June 2022. Tan points out that there is still strong interest in technology-related companies. “Despite the current weakness in the tech industry globally due to the US-China trade war, I believe the long-term growth of the sector will make it attractive to investors. Investors are interested in technology companies that have regional and overseas exposure, and there are not that many in Malaysia,” he adds. Some quarters have pointed out that low liquidity due to a small share base is another factor that fuelled the upward trend. A senior investment banker observes that the moratorium on substantial shareholders for new listings, requiring them to hold their shares for six months, could be a reason for the jump in stock price. “As you can see, some of the listed companies that have a lukewarm [share price] performance are likely to have public float of 40% to 50%. “One of the reasons for this [bigger free float] is because many listed companies did very well during the 2020/21 rally in the stock market and that prompted companies’ substantial shareholders and founders to sell some of their shares. As a result, the public spread widened.” He adds that the share price movement also depends on the companies’ financial performance, their fundamentals, the nature of their business, as well as the industry they are in. Danny Wong, CEO of Areca Capital Sdn Bhd, says the improved market sentiment, attractive valuations of the IPOs, limited number of shares offered and high subscription rate are among the key reasons for the stellar performance of some of the listings of late. Astramina Advisory Sdn Bhd founder and managing director Datin Wong Muh Rong says the weakness in the broader market could be one of the reasons investors are shifting their focus to the IPO market. “The market has been fairly lukewarm and people haven’t been making money. With Chinese New Year around the corner, there is a mood for a rally and everyone likes a good punt. “When the first IPO does well, the momentum starts building up and there is an expectation that the second IPO will do well. This attracts more followers. The confidence level is also slowly returning, with people now firmly believing that Covid-19 and lockdowns are things of the past.” She believes that many of the ACE Market listings offered a small number of shares at their IPO, which explains the double-digit oversubscription rate. “Over the years, the number of shares offered to the public has reduced and demand is increasing,” she says. “The allocation for public balloting is extremely small. It is usually less than 2%. The bulk of these allocations go to the high-net-worth individuals and institutions. “It is because of this that the subscription rate for IPOs is very high. You see these IPOs being oversubscribed by more than five to 10 times. This is something we haven’t seen in the last two to three years.” Muh Rong reckons that the reason the public portion is getting smaller could be due to the promoters’ preference to work with long-term investors. “The portion that is being allocated to the public is getting smaller. There are no more big allocations for the investing public. I think this is because the promoters would rather deal with high-net-worth individuals and private banking clients. These investors are more savvy and typically longer term. All these factors contribute to the successful performance of the IPO,” she adds. According to Bursa Malaysia, 2023 could be another robust year for the IPO market. The regulator is expecting about 39 companies to seek listing this year, with an estimated RM3 billion in proceeds to be raised. Bursa Malaysia CEO Datuk Muhamad Umar Swift was quoted as saying that he expected the new listings to be mainly on the ACE Market, compared to the Main Market and LEAP Market, due to the flexible requirements of the ACE Market. “There is a lot of liquidity. The market is generally strong and that will balance out the year. But of course, all these will have to be backed by investor sentiment. We are expecting the funds raised this year to be greater than in 2022,” he was quoted by the media as saying. According to a filing with the Securities Commission Malaysia, five companies are seeking to list on the Main Market of Bursa Malaysia — DXN Holdings Bhd, Cape EMS Bhd, Radium Development Bhd, Skyworld Development Bhd and MST Golf Group Bhd. Sources say Harps Holdings Bhd could be making its way to the public market this year. Recall that the glove maker shelved its plan to list on Bursa Malaysia in 2021, citing market conditions as the reason. Harps’ IPO was one of the most anticipated by the market due to the boom in the glove sector following the outbreak of Covid-19 in early 2020. But the big drop in demand for gloves at end-2021 after vaccination programmes were rolled out globally led the company to call off its RM2.5 billion IPO. MIDF Amanah Investment Bank director of corporate investment banking Sherilyn Foong expects the local stock market sentiment to improve on the back of China’s reopening, political stability post-election and bullish view on the technology and consumer sectors. “The IPO market for the new year is definitely looking interesting, with the positive momentum from last year clearly extending into the new year,” she tells The Edge.   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/668598

East coast of Sabah operating with 30% electricity supply deficit, says Nik Nazmi

English

KUALA LUMPUR (May 25): Natural Resources, Environment, and Climate Change (NRECC) Minister Nik Nazmi Nik Ahmad said the east coast of Sabah is operating with a 30% reserve margin deficit, in stark contrast to its west coast's excess 48%. Nik Nazmi told Dewan Rakyat on Thursday (May 25) that this discrepancy between the electricity supply in Sabah’s east and west coasts is a prevailing issue that has caused shortages in the state, a problem the state is grappling with at the moment.     “The interconnectivity between the two coasts is not enough, but there are plans to connect [the grids] between Sabah and Sarawak — however, that also has its problems as Sarawak is closer to the west coast, while the major issue remains in the east coast,” NRECC Minister said during the debate session of the Renewable Energy (Amendment) Bill 2023. “I have raised this (discrepancy in east and west coast of Sabah’s reserve margin) at various levels and we will try to find an optimal solution,” he added. On Thursday, Dewan Rakyat passed the Renewable Energy (Amendment) Bill 2023 and Sustainable Energy Development Authority (Amendment) Bill 2023 via voice vote, both of which are necessary to enable the transfer of electricity supply regulatory power to the Sabah state government on a target date of Jan 1, 2024, according to Nik Nazmi.   Nik Nazmi noted that the transfer of power to the Sabah state government will be managed by the Sabah Energy Commission. Subsequent to the devolution of authority on electricity, Nik Nazmi said the Federal Government is to continue providing subsidies to Sabah Electricity Sdn Bhd (SESB) for an agreed-upon period, as SESB faces several "major financial issues" and depends on subsidy support to cover the costs of electricity supply to operate. “For the period from 2005 to 2021, the Federal Government has given subsidies to SESB amounting to RM8.35 billion,” he said, adding that SESB’s subsidy requirements are to be discussed in a Sabah Planning and Implementation Committee for Electricity Supply and Tariff meeting with Sabah Chief Minister Datuk Seri Hajiji Nor later this year. The amendments to both the Renewable Energy Act 2011 and Sustainable Energy Development Authority Act 2011 empower the minister to suspend the operation of the whole or any of the provisions in either law in different parts of Malaysia. It is worth noting that both Bills had previously been tabled, debated, and passed by Dewan Rakyat under the previous administration. However, they underwent the legislative process again in view of the Pakatan Harapan special select committee's decision to review the implementation of the Malaysia Agreement 1963 (MA63).

https://theedgemalaysia.com/node/676458

Teo: Govt to ensure tabling of media council bill in March

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KUALA LUMPUR (July 28): The Ministry of Communications and Digital will ensure that the bill for the establishment of the Malaysian Media Council (MMC) can be tabled in Parliament no later than the March session next year. Deputy Minister Teo Nie Ching in a Facebook post on Friday (July 28) said the matter was decided in a meeting on Thursday, chaired by Communications and Digital Minister Fahmi Fadzil, to further discuss the bill. "This is our (the ministry) commitment, among other efforts, to ensure the welfare of media practitioners is maintained, and that information received by every level of society is better authenticated, so that it will indirectly not disrupt the harmony in the country. "We in the ministry welcome Prime Minister Datuk Seri Anwar Ibrahim's mandate to ensure press freedom is uplifted and strengthened, as one of the efforts to deal with all the malicious lies and fake news that can cause division in society," she said. Anwar, when announcing the Madani Economy: Empowering the People initiative here on Thursday, said the government will continue to uphold and empower the freedom of the press to provide the people with fair and accurate information and news.

https://theedgemalaysia.com/node/662413

Fadillah: Average net income at RM1,351 a month for pepper smallholders

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KUALA LUMPUR (April 6): The average monthly net income of pepper smallholders was around RM1,351 based on the latest statistics, said Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also the plantation and commodities minister, said uncertain pepper prices in the market had slightly affected the standard of living of pepper smallholders. He said the smallholders were also dealing with an increase in the price of agricultural inputs such as fertilisers, following the outbreak of the Russia-Ukraine conflict from the beginning of 2022. The minister was responding to Senator Susan Chemerai Anding in a written parliamentary reply dated April 5 (Wednesday).  Susan queried on the current income and living standards of pepper smallholders in Malaysia, as well as strategies implemented by the ministry to improve their economic situation. Fadillah said the ministry, together with the Malaysian Pepper Board, is encouraging growers to produce premium pepper, such as creamy white pepper and poison-free pepper.  “Premium pepper like these can give farmers a higher return price than regular-grade pepper,” he said. “The MPB is also providing assistance under the Premium Pepper Production Development Project, where growers are eligible to receive assistance with processing tools such as pepper separators, spiral separators, pepper sifters and others.” Besides that, Fadillah said the MPB is encouraging smallholders to plant at least one hectare or more to achieve economies of scale. “In order to make this initiative a success, the MPB has implemented the New Pepper Planting Scheme, which allows pepper growers to expand their crop area, and the Mature Pepper Planting Scheme, which can help them maintain the pepper crop area, while also helping to reduce the burden faced with high agricultural input costs,” he said.  He said a total of RM46,000 per hectare was distributed under the New Pepper Planting Scheme for a period of two years, and a total of RM25,000 per hectare was distributed for a period of one year under the Mature Pepper Planting Scheme. “The MPB also exposed pepper farmers to the production of alternative fertiliser products, such as compost or organic fertilisers, to help reduce costs, and introduced integration planting suitable for pepper. “Among the crops that have been identified as being suitable as intercrops with pepper are pineapple and corn to help increase the income of farmers in a consistent manner,” Fadillah said.  For more Parliament stories, click here.

https://theedgemalaysia.com/node/676608

Crisis-hit Sri Lanka invites Japan to resume investment

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COLOMBO (July 29): Sri Lanka on Saturday invited Japan to resume investment in projects including power, roads and ports, as the Japanese foreign minister wrapped up the first high-level visit to the crisis-hit country in nearly four years. Sri Lanka Foreign Minister Ali Sabry said his country was seeking Japanese investment in sectors such as power, infrastructure and dedicated investment zones, as well as in the green and digital economies. The South Asian island nation is working to restructure its massive debt to continue a US$2.9 billion bailout from the International Monetary Fund, after its worst financial crisis in more than seven decades last year triggered default and the resignation of its president. "We are confident that Sri Lanka's economic recovery, which has made a promising start, and future growth prospects will provide us with greater opportunities to enhance the Japan-Sri Lanka relationship," Sabry told a news conference. He was joined by Japanese Foreign Minister Yoshimasa Hayashi, who is in Colombo as part of a multi-country diplomatic tour including India, South Africa, Uganda, Ethiopia and the Maldives. "I conveyed my expectations for further progress in the debt restructuring process and stressed the importance of a transparent and comparable debt restructuring that involves all creditor countries," Hayashi said. He did not respond publicly to Sabry's investment invitation. Japan's historically vibrant relations with Sri Lanka cooled after the island unilaterally suspended a US$2 billion light railway project in 2020. Ties improved in recent months, after President Ranil Wickremesinghe appealed to Japan to help Sri Lanka weather the crisis caused by the economic mismanagement of successive governments, deep tax cuts and then the Covid-19 pandemic. Wickremesinghe received Cabinet approval this month to reactivate the light rail project. Lying along key shipping routes in the Indian Ocean, Sri Lanka has become a hot spot for influence between India and Japan on the one side, and China on the other. Japan is Sri Lanka's biggest bilateral lender after China, with about US$2.7 billion in outstanding loans, according to finance ministry data. India is the third key creditor.

https://theedgemalaysia.com/node/674106

Fahmi: Poster claiming govt agreed to monthly EPF withdrawal is fake

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KUALA LUMPUR (July 9): A poster that went viral on social media claiming that the government has agreed that Employees Provident Fund (EPF) contributors who have reached the age of 55, can only withdraw their savings on a monthly basis, is not true. Communications and Digital Minister Fahmi Fadzil said he had verified the information with EPF chief executive officer Datuk Seri Amir Hamzah and asked the EPF to provide a full explanation.  "As the minister in charge of communications, I sent the poster to Datuk Seri Amir Hamzah to check its authenticity. "... (later,) he replied to me saying that the matter was still in the study stage and EPF had no intention of applying the policy to existing contributors at present," Fahmi said at the state-level Kita Madani programme in Banting on Sunday (July 9). He said that in this regard, the community must approach the Madani community, which has an important role to play in ensuring that matters are referred to the relevant authorities, so that a full and clear statement can be made. “The Madani community is the right platform to continuously provide people with up-to-date and authentic information on government policies and initiatives. “Apart from this, the Madani community is also a platform to explain and fight issues, slander and the spread of fake news," he said. A total of 1,878 Madani communities, a multiracial volunteer body managed by the Information Department, has been established throughout the country.

https://theedgemalaysia.com/node/675223

发附加股送凭单 Destini交投活络

Mandarin

（吉隆坡18日讯）Destini Bhd宣布将发行高达16亿6000万附加股和送凭单，筹集至少2093万令吉后，今早交投活络。 休市时，该股下跌1仙或10.53%，至8.5仙，市值为1亿3433万令吉。盘中于8仙至9.5仙之间交易。 半天成交量有2642万8600股，为主要热门股之一，高于200天平均的649万股，而周一仅32万6000股易手。 今年来，该股则上升了6.25%，但一年内的跌幅近20%。 Destini昨日向大马交易所报备，将以1配1比例发行附加股，另每认购1附加股则附送1张凭单。 根据每股4仙的发行价，该公司预计可筹集至少2093万令吉，其中84.81%将充作营运资本、11.84%用于偿还银行贷款，以及3.35%支付这项活动的费用。   （编译：陈慧珊）   English version：Destini shares actively traded after one-for-one rights with warrants offer

https://theedgemalaysia.com/node/650336

Credit Suisse reshuffles investment bank after senior departure — memos

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LONDON (Jan 3): Credit Suisse announced a series of staff changes on Tuesday following the departure of the co-head of its European investment banking operation, according to internal memos seen by Reuters and confirmed by a company spokesperson. The Swiss bank, in the midst of an overhaul that includes spinning-off its investment bank into a newly re-branded entity, has chosen veterans Giuseppe Monarchi and Steven Geller to take over from Cathal Deasy, who has left the bank just months after being promoted to regional co-head of its Investment Banking & Capital Markets (IBCM) unit. Monarchi is now sole IBCM head for Europe, the Middle East and Africa (EMEA), whereas Geller has been named sole global head of M&A. Additionally, William Mansfield, head of EMEA Consumer & Retail M&A, has taken up Deasy's responsibilities as head of EMEA M&A. Deasy's exit, which was first reported by Financial News, is the latest in a string of departures as Credit Suisse embarks on a plan to cut thousands of jobs and shift its focus from investment banking towards more stable wealth management. Alongside the promotions, the Swiss lender also said it had hired Credit Agricole banker Gen Oba as co-head of IBCM in France, Belgium and Luxembourg.