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https://theedgemalaysia.com/node/641389

EG Industries secures letter of intent with US-based Cambridge Industries Group to produce 5G optical modules

English

KUALA LUMPUR (Oct 26): EG Industries (EG) secured a letter of intent (LOI) with US-based Cambridge Industries Group (CIG) to produce advanced high speed optical signal transmitter and receiver for 5G wireless network (optical modules), it said in a press statement on Wednesday (Oct 26). According to the group, the intention of the LOI is for CIG to transfer its 5G photonics modular technology to EG Industries’ wholly-owned subsidiary SMT Technologies Sdn Bhd, which will mark its first-ever pioneer technology transfer to Southeast Asia. “EG Industries is excited to be growing from strength to strength, together with a formidable and visionary global partner like CIG, and support its aggressive pursuit of vast opportunities in next-generation technologies,” said EG’s group CEO and executive director Datuk Alex Kang. “We look forward to leveraging CIG’s expertise to increasingly enhance our capabilities, as we gradually adopt smart manufacturing practices to attain greater heights.” The LOI allows EG to add 5G photonics modular products of transceivers in its portfolio. According to EG Industries, CIG’s next-generation technologies will position the group favourably in the optical module design and manufacturing of products for data centre applications. CIG’s executive vice president Cliff Lin Chin Hung added that the right manufacturing partner is crucial for CIG’s growth plans. “Selecting EG Industries as our only manufacturing partner outside China thus far is testament to its forward-looking management, production expertise, growth plans and reliable delivery.” Through the LOI, EG was able to complement CIG’s manufacturing facilities in China through EG’s own smart factory and smart systems in Sg Petani, Kedah, and its upcoming factory in Batu Kawan, Penang. “We also have confidence in the skillsets of Malaysia’s workforce and overall competitive advantage in the long-term,” said Lin. EG’s involvement with CIG began in 2018 by producing box-build or full-assembly wireless and wired access routers and gateway products for CIG and residential markets. At the time of writing, EG Industries Bhd’s share price had declined to 1.5 sen or 3% at 48 sen, bringing its market capitalisation to RM204.96 million.

https://theedgemalaysia.com/node/650752

Twitter hacked, 200 million user email addresses leaked, researcher says

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LONDON (Jan 6): Hackers stole the email addresses of more than 200 million Twitter users and posted them on an online hacking forum, a security researcher said Wednesday (Jan 4). The breach “will unfortunately lead to a lot of hacking, targeted phishing and doxxing”, Alon Gal, co-founder of Israeli cybersecurity-monitoring firm Hudson Rock, wrote on LinkedIn. He called it “one of the most significant leaks I've seen”. Twitter has not commented on the report, which Gal first posted about on social media on Dec 24, nor responded to inquiries about the breach since that date. It was not clear what action, if any, Twitter has taken to investigate or remediate the issue. Reuters could not independently verify the data on the forum was authentic and came from Twitter. Screenshots of the hacker forum, where the data appeared on Wednesday, have circulated online. Troy Hunt, creator of breach-notification site Have I Been Pwned, viewed the leaked data and said on Twitter that it seemed “pretty much what it’s been described as”. There were no clues to the identity or location of the hacker or hackers behind the breach. It may have taken place as early as 2021, which was before Elon Musk took over ownership of the company last year. Claims about the size and scope of the breach initially varied with early accounts in December saying 400 million email addresses and phone numbers were stolen. A major breach at Twitter may interest regulators on both sides of the Atlantic. The Data Protection Commission in Ireland, where Twitter has its European headquarters, and the US Federal Trade Commission have been monitoring the Elon Musk-owned company for compliance with European data protection rules and a US consent order respectively. Messages left with the two regulators were not immediately returned on Thursday.

https://theedgemalaysia.com/node/664221

New law to drive energy efficiency

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KUALA LUMPUR (April 22): Discussions on Malaysia’s energy transition often revolve around its high portion of coal-fired power generation, and the need to shift towards renewable energy (RE) to reduce emissions. However, unlike many of its peers across Asean, Malaysia is missing a piece of the puzzle — a way to push consumers to be more efficient in using energy, that is, using less to produce more. For years, Malaysians have enjoyed affordable energy compared with other countries. While the country launched a national efficiency plan eight years ago, the amount of energy utilised by Malaysian industries to produce a quantity of product or service (energy intensity) has increased substantially. In the latest issue of The Edge, we spoke to Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad, who concedes that the country is falling deeper into an unpleasant situation. Four months into his current role, the 41-year-old minister has targeted to table the Energy Efficiency and Conservation Act (EECA) bill this year — one that was first mooted in 2018 — for Malaysia to join its regional peers like Singapore which already have similar regulations.   “If we can manage demand, there are big things that we can do.... Once [the EECA is] in [place], energy efficiency and conservation will be regulated,” he says in the interview. Meanwhile, rising demand for RE from neighbouring countries and international companies requires Nik Nazmi to also seriously look into Malaysia’s RE adoption, which stood at 25% of total generation capacity currently against the 2025 target of 31%. The minister sees RE as crucial for Malaysia. It is not just for the environment, but also a viable alternative for when coal is phased out, and the local power sector relies increasingly on natural gas, he says. Nik Nazmi touches on the debate over the current RE exports ban, and how the nation could accelerate its energy transition while balancing its generation mix and abnormally high reserve margin. Read more about how the energy minister looks at Malaysia’s power sector in our cover story in The Edge Weekly’s April 24 edition. 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/669292

Bursa subdued, Wall Street offers mixed leads

English

KUALA LUMPUR (May 31): Trading on Bursa Malaysia was subdued in the early morning session on Wednesday (May 31) as investors continued to focus on the US debt ceiling vote, while Wall Street provided little leads following its mixed closing. At 9.09am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 1.25 points to 1,395.66 from 1,396.91 at Tuesday’s close. The barometer index opened 0.23 points lower at 1,396.68. The broader market was negative with decliners beating advancers 183 to 137, while 201 counters were unchanged, 1,727 untraded and 33 others suspended. Turnover stood at RM292.03 million worth RM125.18 million. Malacca Securities Sdn Bhd noted that Wall Street ended mixed overnight with Dow Jones easing 0.2% after the consumer confidence data in May 2023 slipped to a six-month low, while S&P 500 closed flat. In a note on Wednesday, it said investors may favour the technology sector, given that Nasdaq rose above the 13,000 level, while the renewable energy counters may shine following the government's move to roll out its Energy Transition Roadmap. At the same time, it believes that selling pressure may be seen in the energy sector after crude oil prices fell to US$73 per barrel. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said domestic sentiments also remained edgy ahead of the state elections, noting the rise in selling activities involving selected banking and plantation heavyweights late in the session on Tuesday. “But we reckon bargain-hunting activities would emerge if the index touches the 1,390-mark and would advise an accumulation of banking stocks," he said. In the meantime, heavyweights Malayan Banking Bhd gained four sen to RM8.63, while Public Bank Bhd improved two sen to RM3.86, CIMB Group Holdings Bhd rose two sen to RM4.91, Maxis Bhd increased two sen to RM4.29, and Petronas Chemicals Group Bhd was one sen higher at RM6.76. Tenaga Nasional Bhd eased 10 sen to RM9.52, and CelcomDigi Bhd dropped eight sen to RM4.49. Among the actives, Main Market debutant Radium Development Bhd slipped 11.5 sen to 38.5 sen and Aimflex Bhd erased 1.5 sen 15.5 sen, while Revenue Group Bhd inched up half-a-sen to 27 sen and MyEG Services Bhd was three sen better at 82 sen. On the index board, the FBM Emas Index went down 5.42 points to 10,273.69, the FBMT 100 Index was 6.65 points weaker at 9,976.25, the FBM Emas Shariah Index declined 23.52 points to 10,630.89 and the FBM ACE Index was 42.40 points lower at 4,924.69, while the FBM 70 Index recovered 0.50 points to 13,551.39. Sector-wise, the Financial Services Index grew 50.77 points to 15,320.07, while the Industrial Products and Services Index eased 0.33 of-a-point to 162.19, the Plantation Index slid 47.23 points to 6,700.27, and the Energy Index went down 9.29 points to 817.75.

https://theedgemalaysia.com/node/664844

Prosecution files preliminary objection to Bung Moktar, Zizie Izette's appeal

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KUALA LUMPUR (April 27): The prosecution in Kinabatangan MP Datuk Seri Bung Moktar Radin and his wife Datin Seri Zizie Izette Abdul Samad's criminal trial have raised a preliminary objection (PO) to the duo's appeal in relation to their graft charges. The duo are appealing the High Court's decision in early December dismissing their applications challenging Sessions Court judge Rozina Ayob's order for them to enter their defence in their graft trial last year. According to the application seen by The Edge, the prosecution is raising the PO because they say that the High Court ruling did not fall under the interpretation of "decision" as per Section 3 of the Courts of Judication Act 1964, and is therefore non-appealable. The application was filed in early March and the matter will come up for case management on May 22. Deputy public prosecutor Law Chin How confirmed the matter when contacted. Both Bung Moktar and Zizie Izette's appeals have been pending at the Court of Appeal (COA) as the High Court has yet to finalise the appeal records. As a result, the couple's criminal trial has also been postponed several times due to the pending appeal. In January, the High Court granted the duo a stay from entering their defence pending the disposals of their appeals. During mention of the case in February, trial judge Rozina commented that the trial had been ongoing for a long time and parties had set several days beginning June 15 for the duo to enter their defence.   Rozina ordered the duo to enter their defence in early September after finding that the prosecution had established a prima facie case involving RM2.8 million related to a Felcra Bhd investment. Subsequently, the couple filed applications for a revision, on the grounds of the "correctness of the decision". High Court judge Datuk Azhar Abdul Hamid agreed with the prosecution's preliminary objection that the couple's mode of application — by way of a motion instead of a letter — was defective and dismissed their applications in December last year. According to the first charge, Bung Moktar, who was then the non-executive chairman of Felcra, accepted bribes of RM2.2 million in cash from Public Mutual investment agent Madhi Abdul Hamid through Zizie. For the second charge, he is accused of accepting bribes of RM262,500 in cash from Madhi for a similar purpose. He is also accused of accepting a bribe of RM337,500 in cash from Public Mutual investment agent Norhaili Ahmad Mokhtar. All the offences were said to take place in June 2015. Meanwhile, Zizie faces three abetment charges. Also read : No hearing date for Bung Moktar, wife's appeal so far as court records pending Bung Moktar, wife fail in bid to challenge Sessions Court decision for duo to enter defence in graft trial  

https://theedgemalaysia.com/node/616786

'It was never Malaysia Airlines' intention of driving high fares,’ chief says as airline plans extra KL-Sabah/Sarawak flights

English

KUALA LUMPUR (April 18): Malaysia Airlines Bhd group chief executive officer Captain Izham Ismail said on Monday (April 18) that “it was never Malaysia Airlines' intention of driving high fares" to cause inconvenience to its customers, especially during festive seasons, as airlines globally set the price of flight tickets dynamically, subject to demand and supply and based on the date, time, and availability of seats within a specific timeframe.  "Fares will also be adjusted with passengers’ willingness to pay due to peak and seasonal trends as well as competitiveness against other airlines,” Izham said in a statement in conjunction with its plan to mount 20 additional flights between Kuala Lumpur and Kuching in Sarawak besides 20 additional flights between Kuala Lumpur and Sabah destinations Sandakan, Tawau and Kota Kinabalu during the Hari Raya peak travel period beginning April 28 until May 8 to accommodate the expected domestic travel demand surge. Malaysia Airlines said with the additional flights involving over 7,000 airline seats, fares will be dynamically adjusted downwards for customers to enjoy low fares.  To celebrate the Hari Raya festive season in early May 2022, Malaysia Airlines said it will offer up to 20% discount on airfares to all domestic destinations for bookings starting from Tuesday (April 19) to April 27 for immediate travel up to July 31.  "Flights from Kuala Lumpur will begin [from] as low as RM139 for all-in fare to Peninsular Malaysia destinations, from RM209 to Miri, Bintulu, Kuching, Sibu, Sandakan, and from RM262 to Kota Kinabalu, Sandakan, Tawau and Labuan,” the company said. According to Malaysia Airlines, dynamic pricing is a globally-adopted technique under which airfares are set based on demand and market conditions. The higher ticket prices are contributed by various factors such as higher demand during peak seasons, limited number of flights, type of service offering, operational costs, surge in jet fuel prices, and limited resources available due to the after-effects of the Covid-19 outbreak, which began in early 2020, according to the company.  Izham said Malaysia Airlines has been working closely with the relevant authorities to ensure safe and secure travel following recent claims of airlines charging high airfares during the festive period.  "The additional frequencies to high demand sectors, including Sabah and Sarawak, demonstrate our commitment to providing more seats so everyone can reunite with their loved ones during the festive season. "Our load factor has surpassed 90% of our customers purchasing economy class tickets ranging from RM139 to RM1,047 during the peak travel period offered in earlier promotions. We encourage our customers to plan their travel and purchase tickets during the promotion period Malaysia Airlines offers from time to time to ensure they optimise their selection to enjoy our Malaysian hospitality,” he said. Read also: Airline prices have come down by 30% — report

https://theedgemalaysia.com/node/668999

Xiaomi sources more production in India amid regulatory scrutiny

English

(May 29): Xiaomi Corp is deepening local sourcing in India, where the Chinese smartphone company seeks to regain market share it lost amid heightened regulatory scrutiny and stiff competition. Xiaomi contracted home-grown Optiemus Electronics Ltd to make its bluetooth neckband earphones — the first time an Indian supplier will make an audio product for the Beijing-based tech giant, Muralikrishnan B, the president of Xiaomi India, said in an interview. “This marks our entry into a whole new set of categories,” Muralikrishnan said late last week at an Optiemus factory in the Noida suburb of Indian capital New Delhi. “We see this as a milestone, as further proof of our commitment to making in India.”  Xiaomi led India’s smartphone market for years, but allegations of money laundering and increased state scrutiny contributed to a decline of more than 20% in its shipments in the country last year, according to research firm Counterpoint. It ranked third in the last quarter of 2022, also hurt by tough competition, component shortages and an excessively wide product portfolio that confused customers and retailers. South Korean rival Samsung Electronics Co beat Xiaomi to the top spot in the period, and has since reinforced its manufacturing push in India by locally building its fold and flip smartphones as well as its latest Galaxy S23 flagship. Xiaomi is now betting on growing demand for smart TVs, bluetooth earphones and other accessories to boost revenue in the country. Previously, Xiaomi and some of its Chinese rivals were hesitant to make earphones and smartwatches in India, as it was easier to import these products from China to a market where demand was still budding. But as Indian state agencies’ crackdown on Chinese firms intensified, they’ve rushed to explore manufacturing alliances with local companies, possibly to win New Delhi’s favour. Helping local companies such as Optiemus, Lava International Ltd and Dixon Technologies India Ltd to become global players is a key goal in Prime Minister Narendra Modi’s drive to make India an export hub. “The Xiaomi partnership reflects the steady rise of home-grown companies, which are capable of feeding not just India’s demand, but can also export to the global market,” said Nitesh Gupta, a director at Optiemus, which also counts Apple Inc’s Taiwanese supplier Wistron Corp as a strategic partner. Indian smartphone maker Lava is in advanced talks with China’s Huaqin Technology Co to create an electronics manufacturing venture that would aim to win contracts from US and Chinese customers, Bloomberg News reported in October.

https://theedgemalaysia.com/node/635719

兴业零售研究：Hextar将恢复近期上行逆转

English

（吉隆坡9日讯）兴业零售研究表示，Hextar Global将恢复近期的上行趋势逆转，因昨日攀升至1.72令吉的即时阻力上方，形成“更高高点”看涨形态。 该研究机构今日在报告中指出，高于该水平的看涨倾向，可能推动该股至1.80令吉，然后1.86令吉（5月5日高位）。 “然而，若跌破1.64令吉的支撑位，走势或逆转，因可能在平均线下形成‘更低低点’看跌形态。”   （编译：陈慧珊）   English version：Hextar set to resume recent uptrend reversal, says RHB Retail Research

https://theedgemalaysia.com/node/672165

Investors keep bets on US rates soon topping out, despite Powell's hawkishness

English

NEW YORK (June 22): A hawkish tilt from Federal Reserve Chair Jerome Powell hasn't been enough to convince some investors that the central bank is unlikely to hold US interest rates at elevated levels for much longer. Testifying to US lawmakers, Powell on Wednesday (June 21) said the Fed had a “long way to go” in bringing down inflation to its 2% target and suggested the central bank may need to raise rates twice more this year — a message he also delivered at last week’s monetary policy meeting. Powell's comments did little to sway investors in futures markets tied to the Fed’s policy rate, which on Wednesday reflected bets for only one additional rate increase this year, followed by cuts in January. The Fed’s projections, by contrast, imply 100 basis points of rate cuts from a peak of 5.6% by the end of 2024. "The market generally holds the view that the economy is set to slow, that the recessionary conditions that the consensus expects towards the end of this year and into the next will lead the Fed to ease monetary policy," said Roger Hallam, global head of rates at Vanguard, who has been looking to add to positions in longer-term bonds. Skeptical investors have cited a range of factors for that rationale, from the lag with which monetary policy tends to take effect to the warning emanating from some parts of the US yield curve, which has been inverted over the last year and became even more so in recent days — a signal that has preceded recessions in the past. The yield curve comparing two-year and 10-year notes was at negative 100 basis points on Wednesday — the most inverted it has been since the collapse of Silicon Valley Bank in March. An inverted yield curve occurs when yields on shorter-dated Treasuries rise above those for longer-term ones. It suggests that while investors expect interest rates to rise in the near term, they believe higher borrowing costs will eventually hurt the economy, forcing the Fed to later ease monetary policy. The 2/10 spread has inverted 28 times since 1900. In 22 of these instances, a recession followed, analysts at Commonwealth Financial Network said last year. The curve most recently inverted in March 2022. Not all bond bulls necessarily believe a recession is coming. Yields on everything from Treasuries to corporate bonds are the highest they have been in over a decade, raising their allure to income-seeking investors despite the threat of more rate hikes from the Fed. "With a steeply inverted curve we see a lot of yield and a lot of attractive opportunities in the front end," said Steve Hooker, portfolio manager of Newfleet Asset Management. "But at the same time, we believe that the Fed are going to pivot to cutting rates at some point, even if that's a 2024 event.” Hooker has been adding to positions in longer-dated Treasuries and corporate bonds. Of course, the Fed has been proven right on its projections so far this year. Expectations that the Fed would cut rates in the second half of 2023 were rapidly priced out of markets several weeks ago amid evidence that the U.S. economy remains comparatively robust in the face of the monetary policy tightening the Fed has already delivered. Greg Peters, co-chief investment officer of PGIM Fixed Income, said inflation remained way too high to anticipate rate cuts any time soon. "We're not going out and adding duration here. We think it's way too premature," he said.

https://theedgemalaysia.com/node/650395

Managing cybersecurity challenges in pursuit of digital transformation

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KUALA LUMPUR (Jan 4): In today’s online world, cybersecurity has become a pressing issue for businesses and organisations of all sizes.   It is especially pertinent for Malaysian companies, which are undergoing a digital transformation in various sectors. This is especially true due to recent cyberattacks on Bursa Malaysia-listed companies.   For instance, the AirAsia group fell victim to a ransomware attack on Nov 11 and 12 last year by the Daixin Team. The severity of the cyberthreat to Malaysia cannot be overstated.   According to the Malaysia Cyber Security Strategy 2020-2024 report, the country may face economic losses of up to RM51 billion due to cyberthreats. This has raised the need for curated detection and response tools, strategic plans and cybersecurity awareness initiatives to be implemented to protect businesses from data breaches and malicious activities.   It is thus important for Malaysian companies to stay informed, and to be aware of the cyberthreats they face. This is especially important, given their increasingly digitalised operations.   In such a vulnerable environment, the safety of businesses, organisations and individuals is paramount. Thus, a comprehensive understanding of the cyberthreat landscape, as well as the implementation of appropriate cybersecurity measures, is needed in order to mitigate potential risks.   In an interview with theedgemarkets.com, GDEX Bhd managing director and group chief executive officer Teong Teck Lean and DOC2US CEO and co-founder Dr Raymond Choy shared how educating and investing in cybersecurity initiatives can help in minimising cyber risk to their businesses. Lean said that apart from threats from hackers, cyberattacks, and ransomware, there are an array of challenges, as there are many requirements to get the most up-to-date technology for such systems to work.  Teong, who is also the president of the Association of Malaysian Express Carriers (AMEC), said this requires a lot of investment, as most of these technologies are licensed per user or device.  Specifically, he said that for the delivery platform infrastructure, there will be thousands of computers and gadgets that need to be connected.  “Users will expect the most up-to-date technologies to have the best customer experience, system performance, user-friendliness, as well as speed.  “The vast amount of data keeps building up as businesses expand, and the amount of digital exposure simultaneously adds up too,” he said.  Teong said cybersecurity makes up about 40% of GDEX’s annual budget for information technology (IT), and that the company will continuously improve when it comes to keeping data on customers and partners safe.  He said GDEX, which encountered a cybersecurity incident last year, saw no loss of data during the incident. A small portion of its systems was slightly affected, according to him. “We have since taken all necessary steps, as guided by regulators and guidelines, besides engaging with third-party specialists.  “This was one of the main reasons why we decided to switch to machine learning and artificial intelligence-based cybersecurity solutions,” he said.  Separately, DOC2US’s Choy said while the penetration of electronic prescription in the pharmacy industry is less than 50% in total, it’s clear that more education and awareness of cybersecurity are required in this regard.  “Having a foundational technical understanding of the importance of cybersecurity is also imperative.  “To overcome this, we need to ensure all stakeholders are fully aware of the risks and mitigation measures should there be any cyberattacks,” he said.  He, however, said the digital health platform and e-prescriptions issuer had not suffered any cyberattacks so far.  Choy said DOC2US has an internal team to manage its IT systems.  “We also work with Agmo Holdings, one of the top mobile application development companies in Malaysia, which is also our strategic partner since day one of DOC2US.  “Leveraging their resources, talent and expertise in the space of cybersecurity, we constantly ensure that we are working in an effective ecosystem, from the front end to the back end, upholding up-to-date practices in the cybersecurity as per industry standard,” he said.  Choy said while cyberthreats are not at an alarming rate to the electronic prescription sector, due to the nature of personal health data, which is highly sensitive and private, the growing risks may potentially and inevitably lead to severe threats in terms of cybersecurity.  “Therefore, proactive, preventive and timely robust mitigating measures in cybersecurity are quintessential in order to reduce the risks.  “Constant maintenance, upgrading and improvements are also a must,” he said.  Meanwhile, British-based security software and hardware company Sophos Group plc’s managing director for Greater China, Southeast Asia and Korea Sandra Lee said as technology becomes a key component of services, cybersecurity is becoming a top priority for businesses.  She said given the current environment, it has become critical for organisations to protect sensitive intellectual property data, financial papers, and customer information.  “However, we continue to witness more data breaches and cyberattacks rising at an alarming rate, as cybercriminals become more sophisticated and complex in Malaysia,” she said.  Lee said many businesses hire dedicated IT employees, but some opt to hire external IT service providers.  “The complexity of modern operating environments and the velocity of cyberthreats make it increasingly difficult for most organisations to successfully manage detection and response on their own, and the need for always-on security operations has become imperative.  “Organisations are struggling to keep pace with cyberattackers, who are continuously innovating and industrialising their ability to evade defensive technologies alone,” she said.  Lee said that in Malaysia, cyberattacks have been on the rise in the past several years, making it a growing concern for organisations.  She said that according to CyberSecurity Malaysia, on average, Malaysia gets hit with 31 cybersecurity incidents a day, such as fraud, data breaches, and hacking. “As of September this year, an estimated 6,002 cybersecurity incidents were reported. The number of cases in a year has been consistently surpassing 10,000 since 2018.  “These cyber incidents continued to be costly. It was reported that the nation lost US560 million to cybercrime last year,” she said.  Separately, Japanese multinational cybersecurity software company Trend Micro Inc has warned that cyberthreat actors will ramp up attacks targeting security blind spots in the home office, software supply chain, and cloud in the coming year.  In conjunction with a report titled “Future/Tense: Trend Micro Security Predictions for 2023” released recently, Trend Micro managing director for Malaysia and nascent countries Goh Chee Hoh said since the end of last year, organisations in Malaysia have either returned to the office, permanently switching to remote arrangements, or opting for a combination of both.  "However, these arrangements take employees away from the safety of a more secure and monitored IT environment in the office.  “Renewed threat actors focus on unpatched virtual private networks (VPNs), connected home-office devices, and back-end cloud infrastructure in 2023.  “In response, organisations will need to focus on helping overworked security teams by consolidating attack surface management and detection and response to a single, more cost-effective platform,” said Goh.  He said VPNs represent a particularly attractive target, as a single solution could be exploited to target multiple corporate networks.  Home routers will also be singled out, as they’re often left unpatched and unmanaged by central IT, he said.  Read also: AirAsia hit by ransomware attack, five million passenger and employee data compromised Fahmi: Early investigations into AirAsia passenger data leak indicate cyberattack Data leak: MCMC to block website pending feedback from Maybank, Astro — Fahmi TM confirms data breach involving over 250,000 users

https://theedgemalaysia.com/node/624731

成功食品：巴生谷首家Paris Baguette门店将于年杪开业

English

（吉隆坡20日讯）成功食品（Berjaya Food Bhd）与Paris Baguette Singapore持股50:50的联营公司计划于今年杪在巴生谷开设首家Paris Baguette门店。 成功食品总执行长Datuk Sydney Lawrance Quays表示，联营公司放眼每年开设5家门店。 他指出，根据联营协议，成功食品将是本地Paris Baguette门店的主要营运商。 Quays说：“（首家门店）将会在吉隆坡。我们还不能说出地点，因为仍在洽谈中。但一般来说，我们会考虑更大、更成熟的购物中心。” Quays在成功时代广场酒店出席联营签约仪式时，向记者如是表示。 根据另一份文告，Paris Baguette是一个法国面包品牌，由韩国SPC集团运营，是韩国排名第一的面包连锁店。 这个品牌在全球拥有超过4000家门店，包括韩国拥有3400家门店，以及美国、中国、法国、越南、印尼、柬埔寨和新加坡拥有超过440家门店。大马是其第八个国际市场。 SPC Group已开始在柔佛打造区域制造与分销中心“SPC中心”，其目标是获得清真认证，以迎合其东南亚和中东市场的业务。 “当我们考虑在东南亚设厂时，我们很清楚我们的市场是穆斯林市场……当然，我们希望获得最好的清真认证。我们承认，大马的JAKIM清真认证是区域内最著名和最好的认证之一。” Paris Baguette东南亚区总执行长Hana Lee说：“我们希望确保这个认证在中东和东南亚得到认可。我们还想确保工厂离新加坡很近，这样对我们很方便。” 询及产品的价格策略时，Quays表示，将会管理零售价，确保每名客户都可负担。 休市时，成功食品扬5仙或1.21%，报4.18令吉，市值达16亿3000万令吉。   （编译：魏素雯）   English version：BFood: Klang Valley's first Paris Baguette outlet to be opened by end-2022

https://theedgemalaysia.com/node/623332

马股连续第六天收低

Mandarin

（吉隆坡9日讯）区域市场情绪负面，马股跟随大市走低，连续第六个交易日收跌。 闭市时，富时隆综指跌14.15点，收于1509.71点。 综指今早开市报1523.31点，较昨日收盘的1523.86点，下滑0.55点。日内于1508和1526.83点之间波动。 下跌股达601只、上升股315只，另有394只无起落、964只无交易，以及10只暂停交易。 成交量28亿8000万股，值20亿6000万令吉，相比昨日的32亿6000万股和19亿6000万令吉。 乐天交易股票研究副总裁Thong Pak Leng指出，由于投资者仍担心美国、欧洲和其他区域国家可能因加息而陷入衰退，主要亚洲股市普遍收低。 他向马新社说，经济合作与发展组织（OECD）警告，全球经济将为乌克兰战争付出沉重的代价，包括增长放缓、通胀加剧和供应链持续受损，这进一步打压情绪。 “综指在短短几个交易日就接连跌破1550和1520点的支撑水平，并正下探1500点的关键支撑位。” 他补充：“由于区域市场波动加剧，在缺乏买盘支持，本地股市将面临一些阻力。因此，我们预计，综指周末前将在1500至1515点区间徘徊。” 亚股方面，新加坡海峡时报指数跌0.66%、日本日经指数微升0.04%、香港恒生指数降0.66%、韩国首尔综合指数下滑0.03%，以及中国沪综指收低0.76%。 重量级股中，马银行（Malayan Banking Bhd）跌4仙，收于8.80令吉、国油化学（Petronas Chemicals Group Bhd）降21仙，至9.64令吉、IHH医疗保健（IHH Healthcare Bhd）跌13仙，挂6.40令吉，而大众银行（Public Bank Bhd）和联昌国际集团（CIMB Group Holdings Bhd）分别平盘收于4.57令吉和5.07令吉。 至于热门股，有利工业（Yew Lee Pacific Group Bhd）扬1.5仙，报30.5仙、EA控股（EA Holdings Bhd）和绿驰通讯（Green Packet Bhd）皆跌0.5仙，分别挂1仙和7仙、LGMS Bhd挫13仙，至71.5仙，而Dynaciate Bhd收平于14.5仙。   （编译：陈慧珊）   English version：Bursa Malaysia ended lower across the board

https://theedgemalaysia.com/node/668080

Lagenda Properties' 1Q profit down on construction segment losses

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KUALA LUMPUR (May 22): Lagenda Properties Bhd’s net profit fell 16.32% to RM39.34 million for the first quarter ended March 31, 2023 (1QFY2023), from RM47.01 million a year earlier, mainly due to the near completion of existing projects and a lower recognition from new projects. Quarterly earnings per share declined to 4.7 sen from 5.63 sen previously, the group's bourse filing showed.  Revenue dropped 6.12% to RM180.95 million from RM192.75 million. “Revenue and PATAMI [profit after tax and minority interest] were 6% and 16% lower compared to the previous year's corresponding quarter (1QFY2022) due to the different timing and stages of construction activities directly impacting revenue recognition,” the group said. The construction segment incurred a loss before tax of RM1.09 million, compared to a profit before tax of RM1.81 million in 1QFY2022, as revenue for the segment shrank to RM115,000 from RM8.45 million. The lower quarterly net profit was also attributed to higher administrative expenses, which rose 21.65% to RM12.16 million from RM9.99 million a year ago.  It was also due to a 42.81% increase in finance costs to RM4.78 million from RM3.35 million. The group said its unbilled sales of RM781.8 million, and bookings of RM433 million as of March 31, 2023 provide a solid pipeline for future sales conversion. Lagenda Properties managing director Jimmy Doh said the group anticipates a surge in momentum as it plans to launch over 7,000 homes across Perak, Kedah and Johor this year, compared with 4,800 homes in 2022. "With our proven track record and take-up rates so far, we are confident that the new launches will be well-received by the market. From a sales perspective, we have seen momentum increase steadily from January to March, and we anticipate this trend to continue as the year progresses with the roll-out of new launches," said Doh in a statement. Shares in Lagenda Properties closed down one sen or 0.8% at RM1.24 on Monday (May 22), giving the group a market capitalisation of RM1.04 billion.

https://theedgemalaysia.com/node/632429

马交所：上市公司市值升至1.693兆

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（吉隆坡16日讯）大马交易所指出，截至今年7月，上市公司市值升至1.693兆令吉，上个月为1.648兆令吉。 马交所研究臂膀Bursa Digital Research的分析员在报告中表示：“7月下半月的大盘反弹，提振整体市值按月增加2.8%至1.693兆令吉。” 按月比较，月均交易值（ADV）从6月的19亿令吉，下跌29.3%至7月的13亿4000万令吉，而年初至今，日均交易值最低的10个交易日，有9天是在7月。 “平均而言，这9天的日均交易值为11亿6000万令吉。由于大盘在技术上超卖，交投活动收缩。然而，随着下半个月市场反弹，日均交易值显出初步企稳迹象。” Bursa Digital指出，本地散户今年内首次转为净卖家，7月净卖1603万令吉。 外资则是唯一净买家，净流入1亿7498万令吉。 “本地机构投资者于7月恢复卖盘，净卖4087万令吉。在过去7个月里，有6个月是净卖家。” 今年迄今，外资依然是马股最大净买家，累积流入62亿6000万令吉，其次是本地散户的17亿令吉。 本地机构投资者则净卖79亿5000万令吉。   （编译：魏素雯 & 陈慧珊）   English version：Bursa: Listed firms' market cap up at RM1.693 tril in July 2022 from RM1.648 tril a month earlier

https://theedgemalaysia.com/node/651424

Cooperation in Unity Government adds value to political landscape

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KUALA LUMPUR (Jan 11): The cooperation between Barisan Nasional (BN) and Pakatan Harapan (PH) in the Unity Government is able to add value to the Malaysian political landscape. UMNO Supreme Council member Datuk Seri Abdul Rahman Dahlan said according to the president, the combination of their strength will result in a new formula for this country and Malaysians. "In my opinion, the conservative values of UMNO for 70 years of its existence in this country combined with the pragmatic and progressive reform values of PH will enable the Unity Government to offer new values to politics and the people of Malaysia," he said. Abdul Rahman said the matter was outlined by UMNO president Datuk Seri Ahmad Zahid Hamidi at the closed-door two-hour special briefing which was held in conjunction with the 2022 UMNO general assembly from Wednesday until Saturday at the World Trade Centre here. Meanwhile, Federal Territories UMNO Liaison Committee chairman Datuk Seri Johari Abdul Ghani said Ahmad Zahid stressed that there should be no more betrayal in the largest Malay party. "All the representatives have also unanimously accepted this Unity Government," said the Titiwangsa MP. Another Supreme Council member Datuk Seri Ahmad Shabery Cheek said in the briefing, Ahmad Zahid stated the party's direction in the Unity Government and it would still involve the principle of fighting for the religion, the constitution, defending the fate of the Malays and the people as a whole. "There is no compromise in this struggle. The president also outlined several chronologies as to why UMNO made the decision to cooperate in the Unity Government," he said. Terengganu UMNO Liaison Committee chairman Datuk Seri Dr Ahmad Said said the briefing also touched on unity within the party to determine the direction and future of UMNO, especially in facing elections in six states soon. "With the unification and new direction that the president will introduce after this, we can strengthen the party again to compete in the next general election," he said. BN secretary-general Datuk Seri Dr Zambry Abdul Kadir said the special briefing had answered questions regarding the current issues related to the party, especially in the context of the Unity Government. A total of 2,822 delegates and observers will be attending the general assembly. The general assemblies of the three UMNO wings will be opened simultaneously by deputy president Datuk Seri Mohamad Hasan on Wednesday night. The Wanita UMNO general assembly will see the attendance of 1,117 delegates, UMNO Youth with 1,146 delegates, and Puteri UMNO with 1,113 delegates.

https://theedgemalaysia.com/node/623545

74 listed firms have joined Transformation Programme, says Bursa

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KUALA LUMPUR (June 10): A total of 74 out of 972 public listed companies (PLCs) have signed up to be part of the Public Listed Companies Transformation (PLCT) Programme spearheaded by Bursa Malaysia Bhd as of Friday (June 10).  Bursa said 61 of the PLCs are from the Main Market, 15 of which are components of the FBM KLCI.  Another six are ACE Market companies and seven more are LEAP Market firms.  The exchange said the highest registration came from companies in the industrial products and services sector, as well as the consumer products and services sector, with 16 PLCs each.  The financial services, property and technology sectors each have six participants, followed by energy with five participants, plantation and construction (four each), telecommunications and media, and healthcare (three each). Another five participants are from the "others" sector. The frontline regulator of the Malaysian capital market has a total of 972 listed companies, with 781 of them in the Main Market, 148 in the ACE Market and the remaining 43 in the LEAP Market.  The PLCT Programme aims to steer corporate Malaysia to higher performance levels and create a more attractive marketplace for both domestic and foreign investors.  After launching the programme on March 2, with the first guide book titled “Creating Purpose and Performance Driven PLCs”, Bursa released the second guide book entitled “Sustainable, Socially Responsible and Ethical PLCs” on Friday. The second guide book presents an environmental, social and governance (ESG) framework for PLCs to develop a well-defined ESG approach.  Another three guide books are expected to be released in 2022, while the programme, which is open for all PLCs to join, will run until 2025.  “ESG is something that is front of mind, topical, and we are looking to use that to also encourage adoption [among companies] because it is meaningful. The [ESG] guidebook itself is easy to use; it has guidance and more importantly, we have a first of it today,” Bursa chief executive officer Datuk Muhammad Umar Swift told reporters after launching the second guidebook. In his speech earlier, Umar said PLCs need to address critical ESG concerns that materially impact their business operations, as well as longer-term prosperity.  “Critical areas of focus include addressing material climate-related risks, and managing key environmental or social impacts such as human rights and labour practices. There is a pressing need to also reinforce accountability among senior management and directors.  “The exchange is only as good as the products or companies that are listed on it. These days, investors view the companies beyond its market and intrinsic financial value. Failure to meet ESG compliance results in reputational damage that can be detrimental to a company’s credibility,” he said. 

https://theedgemalaysia.com/node/638380

辉煌集团获砂工程局5693万合约

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（吉隆坡30日讯）辉煌集团（Mudajaya Group Bhd）获得砂拉越公共工程局（JKR Sarawak）的合约，在Senari Port设计和建造停车库及相关设施，总值5693万令吉。 辉煌集团表示，该合约是授予Kendiri Emas Mudajaya私人有限公司，建设期为24个月，预计将于2024年10月完成。 这是辉煌集团今年来赢得的第二份合约，该公司最近宣布进军中国洋灰和熟料制造领域。 今年7月，该集团宣布获得价值1亿400万令吉的合约，承接吉打州莪仑一座1200兆瓦发电厂的土方工程和相关工程。 该股今日攀升0.5仙或3.23%，报16仙，市值为2亿153万令吉。   （编译：陈慧珊）   English version：Mudajaya bags RM57 mil job to construct vehicle yard in Sarawak

https://theedgemalaysia.com/node/641712

水灾导致亏损 Gardenia索赔4200万

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（吉隆坡28日讯）国家稻米（Padiberas Nasional Bhd，简称Bernas）与新加坡上市公司QAF Ltd共同持有的Gardenia Bakeries（KL）私人有限公司（GBKL）打算申索约1300万新元（约4200万令吉）保险赔偿，因为在2021年12月西马半岛发生严重水灾，影响了本地一家厂房的运作。 QAF昨日向新加坡交易所报备：“我们正与顾问一起评估与分析损失。”   （编译：魏素雯）   English version：Bread maker Gardenia to submit insurance claims on Malaysian flood damages

https://theedgemalaysia.com/node/618264

首季净利降至2.36亿 数码网络派息2.9仙

Mandarin

（吉隆坡29日讯）数码网络（Digi.Com Bhd）首季净利降至2亿3615万令吉，一年前为2亿6483万令吉，主要是预付业务收入减少，导致营业额下跌，以及大马今年实施繁荣税，使税率从24%提高至33%所致。 政府实施繁荣税，旨在资助我国应对新冠肺炎健康危机。 截至今年3月杪首季（2022财年首季）营业额滑落至15亿2000万令吉，一年前报15亿5000万令吉。 数码网络还宣布，派发每股2.9仙首次中期免税股息。除权日及付款日期分别为5月30日和6月24日。 “在2022财年首季，预付业务营业额分别按年下滑3.9%及按季降低1.6%，至6亿1500万令吉。数字业务营业额则分别按年大跌25%及按季降低10.4%，至6000万令吉。” “后付业务营业额分别按年增长2.6%及按季上升0.6%，至6亿3300万令吉。”   （编译：魏素雯）   English version：Digi.Com 1Q net profit down at RM236m from RM265m a year ago, pays 2.9 sen dividend

https://theedgemalaysia.com/node/646173

Leform makes subdued ACE Market debut, closes below IPO price

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KUALA LUMPUR (Nov 30): Leform Bhd made a subdued debut on the ACE Market of Bursa Malaysia on Wednesday (Nov 30) with its opening share price of 19.5 sen against its initial public offering (IPO) price of 23 sen. The counter closed 5.1% lower than its IPO price, at 18.5 sen. At the opening bell, the Serendah-based steel product company saw a trading volume of 8.4 million shares, with an expected market capitalisation of RM340.6 million. Upon market close, Leform’s trading volume stood at 115.62 million shares and was ranked fifth on Bursa’s Top Active list on Wednesday. Meanwhile, the company’s dividend policies maintain a payout ratio of not less than 20% of its annual audited net earnings. Leform managing director Law Kok Thye said that the RM71.5 million proceeds raised will enable its business expansion plan. “Although we currently possess sufficient production capacity, we are constrained by our storage space. Thus, a substantial amount of the proceeds is catered towards solving that bottleneck,” said Law. “With the new warehouse facility, we can boost our storage area, improve operational efficiency via the consolidation of delivery operations and the adoption of a more systematic storage system, as well as unlock new revenue streams as we reconfigure some of our pipe mills for a greater product variety. “Meanwhile, the increased working capital and new workers’ accommodations are needed to support the output expansion anticipated.” In his opening speech at Bursa, Law added that post listing, the company will explore environmental, social and governance (ESG) initiatives. “We want to decarbonise our process further, including the possibility of using renewable energy at our plant.” Leform non-independent executive director Phang Yew Cheong @ Phang Yew Choong (Robert) during a press conference further added on ESG that the company had performed soft applications before the listing. “For example, our scraps are only sold to licensed scrap dealers to ensure no abuse of these materials, nor do we discharge into the drainage system,” said Phang. “Post listing, we will be looking into installation of solar panels in order to produce electricity, and reduce our carbon usage. “Our corporate finance team will look into the cost-benefit ratio to ensure our shareholders are taken care off, and ensure everything is above compliance.” The group’s business segment consists of manufacturing and trading, with 79% of Leform’s revenue last year derived from manufacturing. Proceeds from the listing will be allocated for the construction of new warehouses, the headquarters and workers’ accomodations at RM30 million, followed by working capital (RM21.9 million), repayment of bank borrowings (RM14.4 million), and estimated listing expenses (RM5.2 million). MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.

https://theedgemalaysia.com/node/631419

Govt steps to control basic goods and services prices stave off hyperinflation — MOF

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KUALA LUMPUR (Aug 8): The various measures implemented by the Government to control the increase in prices of basic goods and services kept the inflation rate in June at a moderate level while avoiding hyperinflation. Deputy Finance Minister I Datuk Mohd Shahar Abdullah said such measures include price control on selected goods and services, particularly through the provision of fuel and selected food price subsidies, as well as electricity rebates for domestic consumers.  “The move has helped ensure the inflation rate of Malaysia in June at a moderate level compared to other countries. This then prevented hyperinflation, which is when the inflation rate remains at a very high level from one month to the next, and that it can erode the value of a country's currency.  “In addition, the current fiscal policy and monetary policy also remain accommodative in ensuring that the country's inflation is at a reasonable level,” he said in the Dewan Negara on Monday (Aug 8).  Mohd Shahar was responding to a question by Senator Nuridah Mohd Salleh, who asked how long the country will be in an inflationary situation, as well as how true are projections that Malaysia's economy is headed towards hyperinflation. The inflation rate in June was recorded at 3.4%, driven by food and non-alcoholic beverages (up 6.1%), transportation (5.4%), and restaurants and hotels (5%).  According to Mohd Shahar, inflation rates in the same month in several developed economies, such as the US and the UK, exceeded 9%, while in Thailand, inflation increased by over 7%, whereas Singapore and the Philippines logged inflation of over 6%. The Paya Besar Member of Parliament noted that inflationary pressure in 2022 is a global phenomenon, in line with the price of Brent crude oil, which had remained above US$100 per barrel since the end of March. He noted that disruption to the world's supply chain, which had affected the supply of fertilisers and fodder, had also increased food prices sharply.  “As an open economy, Malaysia is not exempt from global inflationary pressure. Therefore, an increase in prices of goods, especially finished products and imported intermediary goods, is difficult to avoid completely until the pressure from these external factors stabilises.  "Nevertheless, the Government is always concerned about the increase in the rate of inflation, which causes anxiety among the people and businesses, and continues to monitor the current global economic development,” added Mohd Shahar. For more Parliament stories, click here. Read also: MOF monitoring effects of OPR hike on consumer loan repayments Food price rise pushed Malaysia's inflation to 3.4% in June — DOSM

https://theedgemalaysia.com/node/639248

Dr Rais Hussin exits PPBM

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KUALA LUMPUR (Oct 7): Datuk Dr Rais Hussin Mohamed Ariff has exited Parti Pribumi Bersatu Malaysia (PPBM) with effect from Friday (Oct 7) after having been a co-founding member since the inception of the party in 2016. In a statement on Friday, Rais Hussin said he had sent his official letter to the party on Thursday (Oct 6). He said he had been an inactive party member since 2020, after a heart procedure and focused much on developing and nurturing EMIR Research as an independent think tank focused on strategic policy recommendation based on rigorous research. “Although I am not a member of PPBM, I will still actively pursue my struggle for better Malaysia for the many based on five core principles i.e., reforms, justice, inclusiveness, progressive and wasatiyyah (justly-balanced approach). “This is what led me to co-found PPBM despite the monumental tasks ahead then,” he said. Rais Hussin said he would continue his pathways of speaking truth to the power without fear or favour based on data, science and economics. “That is indeed my DNA, sometime to my costs, but in the greater interest of greater objective of rebuilding this nation of ours for the many, not for few,” he said. Rais Hussin was formerly chairman of the Malaysian Digital Economy Corporation (MDEC). He is also founder and executive chairman of the Emir Group of Companies.

https://theedgemalaysia.com/node/671555

Fed policymakers deliver hawkish vibe after pause decision

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WASHINGTON (June 17): US Federal Reserve officials struck a hawkish tone in their first comments since the central bank held the policy interest rate steady at its meeting this week but signalled that rate hikes will likely resume. "Core inflation is not coming down like I thought it would," Federal Reserve Gov Christopher Waller said at an economics conference in Norway. "Inflation is just not moving and that's going to require, probably, some more tightening to try to get that going down." In earlier prepared remarks he said that changes in US credit conditions since the failure of Silicon Valley Bank in early March were "in line" with financial tightening that was already underway due to Federal Reserve interest rate increases — comments that downplayed the idea a worse-than-anticipated contraction in credit might make further Fed rate increases less necessary. "It is still not clear that recent strains in the banking sector materially intensified the tightening of lending conditions," beyond what the Fed was trying to do anyway through its interest rate policy, Waller said. The US economy was "still ripping along for the most part," he said, with the underlying pace of price increases "moving sideways". Recent declines in headline inflation have been driven largely by food and energy prices, volatile commodities whose price swings can mask underlying inflation trends. Excluding those goods, the personal consumption expenditures price index as of April was increasing at a 4.7% annual pace, more than twice the central bank's target. In separate comments at a financial officers forum in Maryland, Richmond Federal Reserve president Thomas Barkin said he was "comfortable" with further rate increases given that inflation was not yet on an obvious path back to 2%. Demand in the US was weakening somewhat, he said, but "I am still looking to be convinced of the plausible story that slowing demand returns inflation relatively quickly" to the 2% target, Barkin said. "If coming data doesn’t support that story, I’m comfortable doing more." The Fed this week ended its run of 10 consecutive rate hikes when policymakers decided to keep the benchmark overnight interest rate in a range of from 5% to 5.25%. But they also issued new projections showing 12 of 18 Fed officials see rates rising at least another half point by the end of the year. Though Fed chair Jerome Powell at a press conference Wednesday said no decision had been made about the upcoming July Fed meeting, investors and other analysts broadly expect the Fed to resume rate increases. Chicago Fed President Austan Goolsbee, one of the more dovish US central bankers, said that he thinks of pausing the Fed's rate hike campaign as a "reconnaissance mission... before charging up the hill another time". "There are conflicting pieces of evidence coming in on the economy: are we too hot and need more, have we done enough by raising the interest rate five full percentage points over the last year?" Goolsbee told National Public Radio's "All Things Considered". The pandemic changed the dynamics of consumer spending, work, and lifestyle, Goolsbee said, and what's clear is that the Fed cannot be too confident in any one month of data. "We just going to have play it by ear, I guess," Goolsbee. "For me, the forecast is pretty benign, and the question is, are we on that golden path, or not", of cooling inflation without starting a big recession. None of the three policymakers spoke directly to their policy preferences for the July meeting.

https://theedgemalaysia.com/node/603335

Pathways to GHG emissions reduction for Malaysia

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This article first appeared in The Edge Malaysia Weekly on December 13, 2021 - December 19, 2021 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/605625

Affin Hwang Asset Management deal bumps up CVC Capital’s Malaysian investment to above US$1 billion  

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KUALA LUMPUR (Jan 28): CVC Capital Partners' purchase of a 68.35% stake in Affin Hwang Asset Management Bhd (Affin Hwang AM) for RM1.54 billion is the private equity fund’s sixth investment in Malaysia since 2007, bringing its total capital invested to over US$1 billion. Senior managing director at CVC Alvin Lim said the firm remains confident in Malaysia’s economic fundamentals. Lim believes the investment is an opportunity for CVC Capital Partners to participate in the development of the domestic asset management industry and capital markets, as well as to grow Malaysia into the region’s leading asset management hub. “We are particularly excited to partner with Affin Hwang AM’s talented management team, who has shown a track record of outperformance, and Nikko Asset Management (Nikko AM), who will remain as a strategic shareholder. “We look forward to supporting the management team in expanding the investment and product capabilities and entering other ASEAN markets, by leveraging on our experiences and network across the region,” he said in a statement. CVC’s unit Starlight Asset Sdn Bhd has signed a conditional share purchase agreement with Affin Bank Bhd to take over the controlling stake of Affin Hwang AM. The sale values Affin Hwang AM, whose assets under management amount to RM81 billion, at RM2.25 billion. The transaction is expected to be completed in the third quarter of 2022, subject to customary closing conditions, including regulatory approvals. “We are excited to work with CVC, together with our longstanding partner, Nikko AM, to chart the course for Affin Hwang AM’s next phase of growth and to advance the development of the Malaysian capital markets. “The entry of CVC, a leading global private equity and investment advisory firm, comes at the right time as we continue to broaden our suite of product offerings to cater to the growing needs of our clients and partners. “We remain deeply committed to helping our clients build their wealth, and we look forward to partnering with CVC and Nikko AM to drive our commitment to our valued clients,” said Affin Hwang AM managing director Datuk Teng Chee Wai. Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah said the bank is pleased to see the entry of CVC, a global private equity player, into a home-grown asset management house, which is a testament to the confidence in the growth prospects of the financial services sector and the Malaysian economy as a whole. “With the continuation of the management of Affin Hwang AM helmed by Teng and the institutional shareholding presence of Nikko AM, we believe that the business of Affin Hwang AM will continue to perform well moving forward. “[We also] are confident that CVC, Affin Hwang AM's management and together with Nikko AM are committed to support Affin Hwang AM’s growth, its superior long-term commitment to deliver value to clients and further develop its talented employees,” he said. Meanwhile, Nikko Asset Management Asia Ltd president and Nikko AM Asia-ex Japan head Eleanor Seet said the firm's commitment to the region and its clients in Malaysia remains steadfast. "We are delighted to continue our long-term partnership with the [Affin Hwang AM] management team and welcome CVC. We believe the synergy of the new partnership will continue to strengthen the growth trajectory of Affin Hwang AM and enhance our ability to deliver progressive solutions to valued clients,” she said. Read also: Affin Bank, selected shareholders sign deal to dispose of Affin Hwang AM stake to CVC’s Starlight Asset, confirms The Edge report Affin Bank sells asset management arm to CVC Capital Partners for over RM2b, say sources

https://theedgemalaysia.com/node/665634

Nato warns Russia could target undersea pipelines and cables — Politico

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KUALA LUMPUR (May 5): There is a “significant risk” Russian could target critical infrastructure in Europe or North America, including gas pipelines and internet cables, as part of its confrontation with the West over Ukraine, a senior Nato intelligence official warned. German-owned political newspaper Politico, based in Arlington County, Virginia, on May 3 reported Nato's assistant secretary general for intelligence and security David Cattler as saying that Russia was “actively mapping” the infrastructure of Ukraine’s allies both on land and on the seabed. Cattler said Moscow's military and civilian intelligence services had “considerable resources” that Vladimir Putin could deploy for surveillance of infrastructure, “including the use of civilian ships and so-called spy ships.” Cattler said that undersea cables that carry 95% of internet traffic were also potentially at risk. “We see a significant risk that critical infrastructure in Europe and potentially North America could be targeted by Russia as part of its war on Ukraine,” Cattler said. “The Russians are more active than we’ve seen them in years in this domain. “Their patrols in the Atlantic and throughout the Atlantic are most of the time at a higher level than we’ve seen in recent years,” he said. Cattler said Russian vessels were also “taking more risk” in the Baltic and North Seas. In the wake of the Nord Stream blasts, which are the subject of investigations in three different countries, Nato established a new “cell” at its Brussels headquarters to coordinate efforts to protect undersea infrastructure. None of the investigations have yet concluded who was responsible for the attack, but initial suspicion in Western governments fell on Russia. Danish authorities last week confirmed a sighting of a submarine-carrying Russian Navy vessel near the pipelines four days before the blasts last September.    

https://theedgemalaysia.com/node/651579

Bitcoin extends its longest winning streak since pandemic days

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(Jan 12): A prolonged rally in Bitcoin is giving crypto enthusiasts a smidgen of something to be happy about during a dark period for the industry. The world’s largest token has advanced for nine straight days, the longest such streak since 2020, according to data compiled by Bloomberg. Bitcoin has added almost 10% this month and second-largest token Ether about 17%. They both fell more than 60% last year. Bitcoin was up 3.6% to about US$18,194 as of 6.53am in New York. Ether and Avalanche both gained about 4%. Bets that inflation is cooling and that the Federal Reserve will slow the pace of interest-rate hikes have helped all manner of assets at the start of 2023. For Bitcoin, the recent gains are a stark contrast to last year’s slump of 64% amid a series of crypto blowups, including the fall of the FTX exchange. “Risk assets have been rallying, I think, for the reason that the terminal rate is coming slowly but surely into the foreground and positioning has been bearish and transitioning, which means bullish near-term price action,” said Michael Purves, founder of Tallbacken Capital Advisors. Institutions may make a comeback once the issues overhanging the digital-asset market clear up, according to Noelle Acheson, author of the “Crypto Is Macro Now” newsletter. “There is little doubt that large players will come back into the market when the outlook is less murky, pushing up transactions and also price,” she wrote in a note this week.

https://theedgemalaysia.com/node/670464

GSK employees to escalate strike action in June, says union

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BENGALURU (June 8): Hundreds of GSK workers will this month escalate an ongoing strike over a pay dispute, UK labour union Unite said on Thursday (June 8). Employees of the British drugmaker went on strike in May, having turned down the company's "significantly below inflation rate pay offer" of a 6% increase and a one-off lump sum of £1,300 (RM7,490). The first strike this month will be held on June 9, Unite said, at all six GSK sites — Barnard Castle, Irvine, Montrose, Ware, Worthing and Ulverston. Inflation has outstripped wage growth for most British workers this year, with labour unions representing nurses, teachers, transport staff and civil servants calling strikes to demand increases. "We recognise that for many of our people, this past year has seen their cost of living rise rapidly and believe the offer we have made to our UK manufacturing colleagues covered by collective bargaining agreements is fair and reasonable," a spokesperson for GSK said in an emailed statement. "We are therefore disappointed that the Unite union has chosen to undertake this industrial action, despite receiving a final offer," the spokesperson said, adding the company will continue to work to mitigate risk of significant supply disruption.  

https://theedgemalaysia.com/node/609456

SRC: Najib's counsel seeks to vacate hearing dates in March to adduce further evidence

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PUTRAJAYA (Feb 28): Datuk Seri Najib Razak's counsel is seeking to vacate March 15 and 16 for the hearing of his appeal at the Federal Court to adduce more evidence for the SRC International Sdn Bhd case in which he has been convicted. Najib, represented by lead counsel Tan Sri Muhammad Shafee Abdullah along with Harvinderjit Singh and Nur Syahirah Hanapiah, made the application on Monday (Feb 28) following case management before the apex court's deputy registrar Siti Hajar Mustaffa. However, according to deputy public prosecutor Ashrof Adrin Kamarul, who appeared with ad hoc prosecutor Datuk V Sithambaram, the Federal Court has yet to give a reply to the request by Najib and his lawyers. Ashrof added that the case management for Najib's main appeal was fixed by Siti Hajar for April 8 to confirm the date of the application of the ad hoc admission of the Queen's counsel. He added that the defence is also seeking further notes of evidence, documents in relation to the trial at the High Court. Previously it was reported that the apex court had fixed the dates in March to hear Najib's appeal to adduce further evidence with regard to former Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz's husband Datuk Dr Tawfiq Ayman returning money purportedly linked to 1Malaysia Development Bhd, the parent company of SRC, from his bank account in Singapore. This followed an announcement by the Malaysian Anti-Corruption Commission last November about the return of US$15.4 million from Cutting Edge Industries Ltd, owned by Tawfik and another person, to the commission. Najib said the evidence was not available during his SRC trial, in which a total of 18 other witnesses besides himself testified in his defence. The appeal to adduce further evidence was to be heard first, before Najib's application to employ a Queen's counsel and his main appeal to set aside the conviction, 12 years' jail sentence and RM210 million fine imposed by the High Court were heard. The Queen's counsel would have to gain leave from the Federal Court to argue the case first, as they are not licensed to address the courts here because they do not practise in Malaysia. A Queen's counsel is usually a senior barrister or advocate who may appear in important cases that are normally heard in the UK and the Commonwealth. The Court of Appeal had dismissed Najib's application to adduce further evidence on the eve of delivering its verdict over the former premier's appeal. The three-member bench led by Justice Datuk Abdul Karim Abdul Jalil also upheld the conviction and sentence last Dec 8. Najib was found guilty by the High Court of abuse of power in approving the Retirement Fund Inc loan of RM4 billion to SRC, and three counts each of criminal breach of trust and money laundering of RM42 million belonging to the company, of which he is also the advisor emeritus. Najib’s conviction and sentence were upheld by the Court of Appeal. Read also: Najib considering appointing Queen's counsel from UK to argue SRC appeal What transpired as national interests became a national embarrassment, says Court of Appeal

https://theedgemalaysia.com/node/635617

Bank Negara raises OPR by 25bps to 2.5%, as expected

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KUALA LUMPUR (Sept 8): Bank Negara Malaysia (BNM)’s Monetary Policy Committee (MPC) has raised its overnight policy rate (OPR) by 25 basis points (bps) to 2.5% on Thursday (Sept 8), in line with expectations for further normalisation of monetary policy as the country’s economic growth and inflation gain momentum. This is MPC’s third consecutive 25bps OPR hike this year, in line with 17 economists’ forecast polled by Bloomberg, bringing year-to-date increase to 75bps. The ceiling and floor rates of the OPR's corridor are correspondingly increased to 2.75% and 2.25% respectively, according to a statement by the central bank. “With the positive growth prospects for the Malaysian economy remaining intact, the MPC decided to further adjust the degree of monetary accommodation. At the current OPR level, the stance of monetary policy continues to remain accommodative and supportive of economic growth,” it said. The OPR increase came as Malaysia’s 2022 gross domestic product (GDP) growth outlook also continued to improve, with Bloomberg consensus forecast raised to 6.8%, from 6.2% in August. In its statement, BNM said the MPC is not on any pre-set course and will continue to assess evolving conditions and their implications on the overall outlook to domestic inflation and growth. “Any adjustments to the monetary policy settings going forward would be done in a measured and gradual manner, ensuring that monetary policy remains accommodative to support a sustainable economic growth in an environment of price stability,” it said. MPC’s latest OPR rate of 2.5% inched closer to its pre-pandemic level of 3.0%, and closed its gap to the 2.25%-2.5% US Fed Fund rate, which is widely expected to be raised by another 75bps later this month. BNM said going forward, indicators point to continued growth, underpinned by support from private-sector spending. “Labour market conditions and income prospects remain positive, with unemployment and underemployment declining further. The reopening of international borders will lift tourism-related sectors. Investment activity and prospects would be supported by the realisation of multi-year projects,” it said. Nevertheless, the central bank said external demand is expected to moderate following softening global growth. Further, the increased volatility expected in the global financial and foreign exchange markets is not expected to derail Malaysia's growth, it said. “Domestic liquidity remains sufficient, with continued orderly functioning of the financial and foreign exchange markets. Financial institutions also continue to operate with strong capital and liquidity buffers. These will ensure financial intermediation remains supportive of the economy,” it said. Going forward, BNM said downside risks to the domestic economy continue to stem from weaker-than-expected global growth, further escalation of geopolitical conflicts, and worsening supply chain disruptions. “Global growth is expected to face challenges from the impact of monetary policy tightening in most economies, and pandemic management measures in China. “The growth outlook is subject to downside risks, including elevated cost pressures, the potential energy crisis in Europe, and sharp tightening in financial market conditions,” it said. On inflation, BNM said the headline consumer price index (CPI) is projected to peak in the third quarter of 2022 (3Q2022) before moderating thereafter, due to dissipating base effects and in line with the expected easing of global commodity prices. “Underlying inflation, as measured by core inflation, is expected to average closer to the upper end of the 2.0%-3.0% forecast range in 2022, with some signs of demand-driven pressures amid the high-cost environment. “The extent of upward pressures to inflation will remain partly contained by existing price controls, fuel subsidies, and the prevailing spare capacity in the economy,” it said. The inflation outlook, however, continues to be subject to domestic policy measures, as well as global commodity price developments arising mainly from the ongoing military conflict in Ukraine and prolonged supply-related disruptions, said the central bank. Malaysia’s headline inflation rose 2.8% year-on-year in the second quarter, from 2.2% in 1Q2022. The MPC raised OPR in May for the first time in two years after maintaining the benchmark interest rate at a historical low of 1.75% since July 2020 to cushion the economic impact of the pandemic.

https://theedgemalaysia.com/node/634044

Maybulk's 2Q profit jumps despite lower revenue, thanks to vessel disposal gain

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KUALA LUMPUR (Aug 26): Malaysian Bulk Carriers Bhd (Maybulk) reported a 90.5% jump in net profit to RM61.6 million for the second quarter ended June 30, 2022 (2QFY22), from RM32.1 million in the corresponding quarter a year earlier, after it recognised a gain of RM50.1 million from the disposal of MV Alam Kukuh for RM160.55 million. Quarterly revenue fell 26.2% to RM39.6 million from RM53.6 million, its Bursa Malaysia filing showed. Earnings per share leapt to 6.11 sen from 3.21 sen. Excluding exceptional items, the group reported a profit before tax (PBT) of RM11.25 million for 2QFY22, compared with a PBT of RM7.86 million for 2QFY21. For the cumulative first half of FY22 (1HFY22), the bulk carrier's net profit rose to RM69.5 million from RM47.1 million, although revenue dropped to RM78.6 million from RM100.2 million, again thanks to the disposal gain. Maybulk said it recorded lower net revenue of RM66.76 million in 1HFY22, compared with 1HFY21's RM89.29 million, with operating profit dropping to RM25.8 million from RM42.41 million. "The decrease in results was mainly due to reduced hire days from a smaller fleet size, despite a 26% increase in charter rates compared to the corresponding [period] last year," it said. Excluding exceptional items, Maybulk said its 1HFY22 PBT dropped to RM19.11 million from RM33.68 million in 1HFY21. On prospects, Maybulk said there was a substantial revival in demand for coal imports to Europe due to the reduction in gas supply from Russia in 1HFY22. "Going forward, replacement supply after the Russian coal ban by the EU in August 2022 could be coming from the US, Colombia, South Africa and Australia, which could increase tonne miles. "However, increasing volatility in the dry bulk shipping market is expected, with negative impacts from high global inflation and the underwhelming Chinese economy, cushioned by some positive developments including a temporary deal of 120 days between Russia and Ukraine allowing the resumption of grain exports," Maybulk said. It added dry bulk vessel prices, sales and purchase activities have been on a slightly downward trend since May 2022. At 5pm on Friday (Aug 26), Maybulk's share price closed unchanged at 42.5 sen, valuing the company at RM420 million.

https://theedgemalaysia.com/node/672644

Robinhood cutting 7% of its full-time employees

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(June 27): Robinhood Markets said on Monday (June 26) it was cutting about 7% of its full-time employees, as it struggles with reduced customer engagement. "We’re ensuring operational excellence in how we work together on an ongoing basis. In some cases, this may mean teams make changes based on volume, workload," Robinhood said in a statement. The Wall Street Journal first reported the news earlier in the day. The trading platform played a crucial role in the retail-trading frenzy during the pandemic but has struggled with a contracting customer base spooked by higher cost of commodities. The news comes a week after the company announced that it was buying financial technology firm X1 Inc for about US$95 million (RM443.9 million) in cash as it looks for new revenue streams to counter weakness in its mainstay trading unit. In its most recent quarter, the company surpassed Wall Street revenue estimates, as the US Federal Reserve's rapid rate hikes boosted its interest income.

https://theedgemalaysia.com/node/665100

Tropicana to issue new shares to founder-cum-vice-chairman to settle RM180m debt

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KUALA LUMPUR (April 28): Tropicana Corp Bhd is issuing 137.68 million new shares to pay off RM180 million that the company owes its founder and group executive vice-chairman Tan Sri Tan Chee Sing. The shares will be issued to a company wholly-owned by Tan at RM1.30 per share. In a Bursa Malaysia filing on Friday (April 28), the property developer said it had entered into a settlement and subscription agreement with Tan through his wholly-owned T Shares 1 Sdn Bhd (TSSB), to settle the amount owed. “Since March 2022, Tan has provided various advances to the group amounting to approximately RM251.19 million advances for interest-free, unsecured and repayable on mutual agreement by Tan and the company. There is no written or fixed repayment schedule for the advances,” said Tropicana, who expects the proposed capitalisation to be completed by the third quarter of this year. The issue price represents the five-day volume weighted average market price of Tropicana shares, up to and including April 27, of RM1.30. The issuance represents 6.1% of Tropicana's enlarged number of shares totalling 2.26 billion after the proposed capitalisation. Tan has a direct 20.56% stake comprising 435.96 million shares in Tropicana, and an indirect 32.44% comprising 687.90 million shares. He also indirectly holds 207.3 million irredeemable convertible preference shares (ICPS) in Tropicana via Dasen Resources Sdn Bhd. On completion of the issuance — and depending on whether none or all of Tropicana's outstanding ICPS were converted — Tan will control a direct 19.3% and an indirect 36.56% in Tropicana, or a direct 17.02% and an indirect 40.33%, respectively. Tropicana shares closed unchanged at RM1.36 a share on Friday (April 28), valuing the company at RM2.93 billion.

https://theedgemalaysia.com/node/653965

Apple again dominates smartphone profit, taking record 85% share

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(Feb 3): Apple Inc’s iPhone set a new high for its share of profits from global smartphone sales in 2022, after navigating a dire year for the industry better than competitors. The Cupertino, California-based tech giant collected 85% of operating profit and 48% of revenue from smartphone sales over the course of the year, new Counterpoint Research estimates showed. Both were new peaks for the company, 15 years into the iPhone’s time on the market, and the firm’s flagship device also scored its biggest proportion of global smartphone shipments. The smartphone industry churns on notoriously thin margins for handset manufacturers — eliminating storied but uncompetitive brands like Nokia, BlackBerry, Palm and HTC over the years. Apple and, to a lesser extent, Samsung Electronics Co, are the notable exceptions. In 2022, worldwide smartphone shipments fell by double digits, most severely in China, and those profits dwindled for the majority of companies. Apple and Samsung were the only big brands to register revenue growth, of just 1% each, according to Counterpoint, after both sold a higher proportion of premium devices like Apple’s iPhone 14 Pro series. The company’s profit lead on peers would have been even greater if it had been able to ship more of its top-tier devices in the final quarter of the year, the research firm said. Apple’s 2022 performance comes despite its worst holiday performance in four years, after supply snags and a softening economy hurt iPhone revenue. The iPhone and Mac were particular weak spots for Apple last quarter, dragged down by a broader slump afflicting mobile devices and computers. The Covid restrictions in China added to Apple’s woes, making it harder to ship enough of the most popular versions of the iPhone. While the end to Covid Zero is spurring optimism for a rebound led by Chinese demand, the outlook is far from certain, cautioned analysts. “It is currently uncertain whether China’s reopening would help recovery of the global smartphone market,” said MengMeng Zhang, an analyst at Counterpoint. A more than 20% smartphone sales rise during the first two weeks of January could be due to pent-up demand from the prior two months, when the pandemic limited mobility in China, she said. “The economic situation does not point to an immediate recovery of the smartphone market in the first half, although we expect to see some level of rebound happening in the second half.” Read also: Apple sales miss estimates on sluggish economy, supply snags

https://theedgemalaysia.com/node/646467

Rivertree debuts maiden industrial project in Klang

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This article first appeared in City & Country, The Edge Malaysia Weekly on December 5, 2022 - December 11, 2022 Boutique property developer Rivertree Group is debuting its first industrial project Esteem Business Park in Meru, Klang. Formerly a contractor, the company ventured into property development in 2015. Some of its earliest projects include shopoffice development 20 Rivertree in Serdang and condominium Sutera Pines in Sungai Long. Since then, it has completed several other projects such as Garisan — a 2½-storey terraced homes development — in Puchong, and Rivertree Signatures, a retail development in Bukit Raja, Klang. Rivertree Signatures has two commercial phases, namely DUO and UNO, as well as a retro-inspired KFC drive-thru. As we make ourselves comfortable in the developer’s latest Bukit Raja sales gallery, which occupies one of the contemporary-looking corner units at UNO, Rivertree group managing director Datuk Simon David Leong remarks that the shops are doing better than he expected. “We didn’t expect the take-up rate to be so good. Launched at end-2019, the units at UNO were sold out during construction, handed over in April this year and have been 100% tenanted since then. Many units are currently undergoing renovations,” he says during the exclusive interview with City & Country. In addition to the standalone KFC drive-thru, other confirmed tenants at UNO include A&W, emart24, Pizza Hut, Komugi, Coffee Bean & Tea Leaf, Da Long Yi Hot Pot, Tealive and 7-Eleven’s 7 Café. The commercial development has around 80% of F&B tenants, Leong adds. With a gross development value (GDV) of RM79.17 million, UNO, the second phase of Rivertree Signatures, comprises 24 units of 1-storey shops with mezzanine floors and seven units of 2-storey, dual-frontage shops with mezzanine floors. The 1- and 2-storey shops at UNO, measuring 22ft by 77ft and 37ft by 83ft respectively, were priced from RM1.71 million to RM3.68 million. The shops are currently fetching monthly rents ranging from RM7,500 (intermediate) to RM13,000 (corner) for the 1-storey units and from RM10,000 (intermediate) to RM18,000 (corner) for the 2-storey units, Leong notes. Rivertree sales director Nancy C P Ng says: “As a small developer, we don’t have so many projects at one time, so we are able to spend time and energy in ensuring that for each and every one of our projects, we assist purchasers [with leasing out their units]. For example, at UNO, we provided [complimentary] pre-leasing service nine months before it was completed. And we are glad that all the buyers have agreed to let us [manage] the tenant mix.” Leong chimes in: “We try to control the tenant mix as much as possible so that the property values go up by virtue of their yields. And the owners realise that letting us handle [the leasing] is good for them.” Located at the heart of the Taman Perindustrian Meru Selatan industrial hub and near established townships such as Bandar Setia Alam, Bandar Bukit Raja, Meru and Kapar, Esteem Business Park spans 10.03 acres. “Industrial development has been booming over the last two years, especially after supply chain disruptions. We saw the trend [of industrial developments] coming and bought this piece of land two years ago. We were supposed to start work last year, but [completing the land deals] took us awhile due to the [nationwide lockdowns],” says Leong. With a GDV of RM180 million, the freehold, medium industrial development comprises 39 industrial units, which will be developed over two phases. Phase 1, comprising 19 units, had its soft launch in June. According to Ng, all units except one have been sold. “We have one unit left as the [prospective buyer’s] loan did not go through. For the other units sold, we have a balanced mix of investors and end users mainly in businesses such as furniture, e-commerce, logistics and warehousing.” Esteem Business Park is accessible via Jalan Meru and Jalan Haji Salleh, and close to seaports and major expressways, including the NKVE Setia Alam Link, Guthrie Corridor Expressway, Elite Highway, NKVE and Shapadu Highway. Intermediate units in Phase 1 with a built-up of 8,142 sq ft measure 35ft by 138.7ft. End lots with a built-up of 9,322 sq ft measure 40ft by 138.7ft while the corner units with a built-up of 10,517 sq ft measure 45ft by 138.7ft. Unit prices in the first phase range from RM3.998 million to RM4.718 million. In addition to its innovative and modern design featuring full-height glazed windows and large screens that allow for natural lighting and good ventilation, Esteem Business Park’s unique feature is its spacious built-ups. “Although technically a terraced factory development, the units are very big. Hence, we call it a ‘super-sized jumbo factory’. There is even a 40ft-wide parking bay for cars and even a trailer. These are typically what you get with semidee or detached factories,” Ng points out. Also, the units are 2-storey, in addition to having a mezzanine floor in front, adds Leong. “Most factories are 1-storey at the back. In our case, we have three floors in front, including the mezzanine for the office, and an entire first floor. “Why did we do this? This is a post-Covid design. Due to the boom in logistics and last-mile delivery, [such features] are very much in demand now as businesses are stocking up several months in advance in case of another lockdown, rather than the 11th-hour or just-in-time stocking,” he explains. Moreover, Esteem Business Park’s flexible floor layouts can cater to various industries. For example, the units can be used as a service centre, showroom, factory outlet, central kitchen, cold storage, warehouse, logistics and courier service centre. The units offer double ceiling heights of 30ft and 10ft to add to their flexibility and maximum space utilisation. Says Ng: “The standard height for terraced factories is about 25ft, except for the built-to-suit ones. At Esteem Business Park, we follow a semidee specification, with a first floor that has a 10ft ceiling height.” The units will also come ready with a hoist for goods, which can be upgraded to a service lift for passengers and cargo at an additional RM80,000 (for Phase 1). Its heavy-duty ground and first floors can take a maximum load of 10kPa, whereas the built-in mezzanine, up to 5kPa. Units come with a power supply of 200Amps. The units’ motorised roller shutter, which is 16ft in height, will be convenient for forklift access while their unobstructed wide frontage and driveway will allow a direct and sheltered drive-in for loading and unloading. The development’s main access roads of 66ft and 40ft-wide dedicated back roads provide convenient access for trucks and lorries, as well as their ease of circulation. For security, there is 5ft of external fencing as well as CCTVs and alarm points for each unit. Leong also highlights that Esteem Business Park is a proper medium industrial development. “It is very common for the industrial players here to operate their medium industries in light industrial factories. There are also plenty of illegal factories around. We foresee [the legalisation of illegal factories programme] in Klang to get more aggressive as it is already happening, and the fines are heavy.  People may not realise it now but in the next one to two years, we believe more companies, especially if they are listed, will want a proper medium industrial development.” As with its earlier projects, the developer will also offer complimentary pre-leasing services for Esteem Business Park’s investor buyers, he adds.  Ng adds that the developer will also build a guardhouse at Esteem Business Park. “We believe this development will do well because companies want to conduct business with peace of mind.” The remaining 20 units in Phase 2 will be launched in 2Q2023. These will offer similar factory sizes with built-ups ranging from 8,006 sq ft for the intermediate units, 9,161 sq ft for the end lots and 10,330 sq ft for the corner units. Prices have yet to be firmed up by the developer. Ng foresees Esteem Business Park will attract more trading companies. “Such companies operating in typical shoplots will eventually look at our product when it is ready. This is because typical shoplots are around 1,500 sq ft per unit. If they rent two 3-storey shoplots en bloc, which add up to around 9,000 sq ft in total, the rent is more expensive than leasing a factory unit here.” She adds that the hoist is also an added convenience for transporting goods up and down the property, compared to climbing  up the stairs in a typical shoplot format. According to Ng, industrial units in the area are fetching rents of around RM2 psf. “At RM2 psf, buyers are still getting a return on investment that is above 5.6%. Referring to the tagline “We Dare to be Different” emblazoned on a wall in the sales gallery, Ng adds: “We always like to recreate and reinvent. We like to find the niche that the market does not have.” On the drawing board is a co-living development in KL city centre. Details are still under wraps, but Leong lets on that the project will be “the first-of-its-kind in Malaysia”. “This is because there are only three to four of such products in the world,” he claims. The KLCC project, which is slated to be launched in 4Q2023, will be designed by architecture firm RSP Architect along with project consultants such as RWDI and Thornton Tomasetti, according to Leong. “They are the ones involved in the KLCC and Merdeka 118 projects. Basically, everyone here is well known except for Rivertree,” he quips. Also in the planning stage is a mixed-use development with an F&B component. “We find F&B very interesting and an industry we can invest in because Malaysians like to eat,” Leong observes. “We always believe that developments shouldn’t be done for the sake of just doing [them]. It becomes very dull. We want to keep developments lively and interesting, like UNO [and the retro-inspired KFC] … who would have thought that we could do something like this in Klang, but it worked.” Meanwhile, the business will continue to run lean, Leong stresses. “The Malaysian market is very small, and we believe we have to remain very niche and selective. We see the market bouncing back only in 2024. In the meantime, we will continue to keep an ear on the ground.” 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/656906

RHB Bank's 4Q earnings climb 22% to RM772m, declares dividend 25 sen

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KUALA LUMPUR (Feb 27): RHB Bank Bhd recorded a 22% year-on-year increase in net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022), due to the absence of modification loss, as well as significantly lower allowances for credit losses on financial assets. Net profit grew to RM772.11 million or 18.24 sen per share for 4QFY2022, from RM631.16 million or 15.34 sen per share a year earlier, the group told Bursa Malaysia on Monday (Feb 27). This was despite net interest income growing by a meagre 2% rate to RM1.05 billion for 4QFY2022, from RM1.03 billion previously. The group declared a second interim dividend of 25 sen, of which 20 sen will be cash and the remaining five sen can be opted for dividend reinvestment plans. For the full FY2022, RHB posted a net profit of RM2.71 billion, up 3.4% from RM2.62 billion a year earlier, while net interest income grew 17% to RM7.38 billion from RM6.33 billion. RHB said FY2022 loan growth stood at 6.9%, with net interest margin inching up to 2.24%, from 2.20% recorded in FY2021. The cost-to-income ratio, meanwhile, improved to 44.7% in FY2022, compared with 45.2% a year earlier. “The group demonstrated resilience and delivered a commendable performance for FY2022. Our growth momentum and fundamentals remain strong as reflected by our strong capital and liquidity positions,” said group managing director and chief executive officer Mohd Rashid Mohamad in a statement on Monday. “Our key focus in FY2023 will be to kick start our programme in nurturing and supporting our SME (small and medium enterprise) customers towards integrating sustainable practices into their business and operations, by playing an advisory role as well as through the sustainable products and solutions that we offer,” he added. As at end-2022, Mohd Rashid said, RHB had achieved more than RM14 billion in sustainable financial services, which exceeded the bank’s 2022 target by more than 60%. Shares in RHB were trading eight sen or 1.5% higher at RM5.56 at the time of writing on Monday, valuing it at RM23.61 billion. Read also: RHB Bank confident of delivering ROE of 11.5% in 2024 RHB Bank: Deposit shopping spree could kick off as businesses and consumers look to earn cash

https://theedgemalaysia.com/node/640519

Affin Bank declares dividend of 22.62 sen, including special dividend of 18.09 sen

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KUALA LUMPUR (Oct 18): Affin Bank Bhd has announced a single-tier special dividend of 18.09 sen per share following the divestment of a 63%-stake it owns in Affin Hwang Asset Management Bhd (AHAM) that was completed on July 29, 2022. Apart from the proposed special dividend, Affin Bank has also proposed an interim dividend of 4.53 sen, amounting to RM100.2 million, for the financial year ending Dec 31, 2022 (FY22).  The total special dividend amounted to RM400.2 million, about 28.23% of the total proceeds of RM1.42 billion from the divestment.  The bulk of the proceeds amounting to RM1 billion will be allocated to fund Affin Bank group’s banking activities and/or working capital requirements, while the remaining RM16.6 million will be utilised to defray fees related to the divestment. Of the 18.09 sen special dividend, Affin Bank said 10.85 sen will be paid in cash and the remaining 7.24 sen can be elected to be reinvested into a new Affin Bank share pursuant to the dividend reinvestment plan. The proposed special dividend, which is subject to the approval Affin Bank’s shareholders, is expected to be paid by end-December 2022. “The proceeds from the divestment were originally intended to be utilised mainly to fund Affin Bank group’s banking activities and/or working capital requirements. “[While] the proposed special dividend is intended to reward the shareholders of Affin Bank for their continuous support toward the Affin Bank group, after taking into consideration sufficient capital buffer for the Affin Bank group and reassessment of Affin Bank group’s working capital requirements to catalyse substantial growth in its lending operations,” said Affin Bank in a bourse filing. To recap, AHAM was disposed to Starlight Asset Sdn Bhd, an investment holding company incorporated by funds managed by CVC Capital Partners. “The proposed divestment provides an avenue for Affin Bank to unlock and realise the value of its investment in Affin Hwang Asset Management at an attractive premium,” Affin Bank said. Affin Bank said its original date of investment in Affin Hwang Asset Management was on April 7, 2014, when the seven million shares in Affin Hwang Asset Management were acquired for RM282.13 million from Hwang-DBS (M) Bhd and Tunku Datuk Seri Nadzaruddin Ibni Almarhum Tuanku Ja’afar. Affin Bank’s share price closed unchanged at RM2.02 on Tuesday (Oct 18), which gives the bank a market capitalisation of about RM4.47 billion. Year-to-date, the stock has surged 16.76% or 29 sen from RM1.73 since Jan 3 this year. 

https://theedgemalaysia.com/node/651056

AWC与印尼投资公司签MoU 探索大马绿色能源机会

English

（吉隆坡9日讯）AWC Bhd与一家印尼公司签署一项谅解备忘录（MoU），共同探索大马可再生能源和绿色能源的投资机会。 这家印尼公司PT Bintang Timur Investama，在该国从事咨询、融资和投资，发行及缴足资本为500万美元（2188万令吉）。 AWC向大马交易所报备，该MoU的有效期为12个月，是首相拿督斯里安华周日（8日）在印尼见证签署的MoU之一。 “MoU预计不会对AWC截至6月杪财政年的每股盈利、每股净资产和负债有任何实质直接影响。” 闭市时，该股扬1.5仙或3.16%，收于49仙，市值为1亿5637万令吉。   （编译：陈慧珊）   English version：AWC enters MOU with Indonesian investment firm for green energy opportunities in Malaysia

https://theedgemalaysia.com/node/651093

Morgan Stanley warns US stocks risk 22% slump

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(Jan 9): US equities face much sharper declines than many pessimists expect with the spectre of recession likely to compound their biggest annual slump since the global financial crisis, according to Morgan Stanley strategists. Michael Wilson — long one of the most vocal bears on US stocks — said in a research note that while investors are generally pessimistic about the outlook for economic growth, corporate profit estimates are still too high and the equity risk premium is at its lowest since the run-up to 2008. That suggests the S&P 500 could fall much lower than the 3,500 to 3,600 points the market is currently estimating in the event of a mild recession, he said. “The consensus could be right directionally, but wrong in terms of magnitude,” Wilson said, warning that the benchmark could bottom around 3,000 points — about 22% below current levels. The strategist — ranked No 1 in last year’s Institutional Investor survey — isn’t alone in his view that earnings expectations are too optimistic. His counterparts at Goldman Sachs Group Inc expect pressure on profit margins, changes to US corporate tax policies and the likelihood of recession to overshadow the positive impact from China’s economic reopening. One of the factors driving Wilson’s bearish view is the impact of peaking inflation. US stocks rallied last week amid signs that a modest ebbing in price pressures could give the Federal Reserve room to potentially slow its interest-rate hikes. Wilson, however, warned while a peak in inflation would support bond markets, “it’s also very negative for profitability”. He still expects margins to continue to disappoint through 2023. Deutsche Bank Group AG strategists led by Binky Chadha also expect US earnings to decline in 2023. Still, they said stocks could rally through the fourth-quarter reporting season, supported by a year-end selloff and low investor positioning. That view is at odds with findings of the latest MLIV Pulse survey, which showed market participants are bracing for a gloomy season to push the S&P 500 lower over the next few weeks. Earnings start in earnest on Friday with reports from the big banks including JPMorgan Chase & Co and Citigroup Inc.

https://theedgemalaysia.com/node/671665

Scientex Packaging's 3Q earnings slip on lower revenue, higher energy cost; declares 2.5 sen dividend

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KUALA LUMPUR (June 19): Plastic packaging producer Scientex Packaging (Ayer Keroh) Bhd, formerly known as Daibochi Bhd, saw its net profit fell by 1.64% to RM10.1 million in its third financial quarter ended April 30, 2023 (3QFY2023), against RM10.3 million posted a year ago. Net profit fell due to a decline in revenue and rising energy costs, its filing to Bursa Malaysia showed on Monday (June 19). Quarterly revenue fell 14.4% to RM177.4 million, from RM207.4 million a year ago, due to lower product demand from both the domestic and export markets. The domestic market contributed RM96.41 million or 54.3% of the group’s 3QFY2023 revenue while exports contributed the balance RM81.08 million or 45.7%. The group declared a single-tier interim dividend of 2.5 sen per share, payable on July 17. For the nine-month period (9MFY2023), the group's net profit rose 12.6% to RM35.8 million from RM31.8 million a year prior, while revenue increased marginally by 1.2% to RM589.5 million, compared to RM582.2 million recorded in the preceding year's corresponding period. Domestic sales contributed RM308.2 million or 52.3% of the group’s 9MFY2023 revenue while exports contributed the balance RM281.3 million or 47.7%. On prospects for the current financial year, Scientex Packaging said that amid a challenging external operating environment, the group continues to invest for longer term growth and innovations to develop customer-centric products. “Our capacity expansion plan which is intended to enhance production capacity and capabilities remains on track, placing us in a good position to capitalise on growth opportunities,” the group said. It added the socioeconomic conditions in Myanmar continue to pose operational challenges in the foreseeable short and medium term. “The group will nonetheless continue to manage its operations to minimise adverse effects whilst exploring options pertaining to its Myanmar operations,” it said. Scientex Packaging shares last traded at RM2.24, valuing the group at RM786.6 million.

https://theedgemalaysia.com/node/624376

Sapura Energy clinches six contracts worth RM2.7 bil

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KUALA LUMPUR (June 16): Practice Note 17 company Sapura Energy Bhd has secured six contract wins in Asia-Pacific and Atlantic regions, with a combined value of RM2.7 billion, of which RM176 million is contributed by its joint venture company. The oil and gas group said these wins are a testament to its reset plan, which includes a shift in the group's bid strategy to focus on areas where it is highly competitive. "Our drilling business segment continues to secure new contracts under the current market conditions," Sapura Energy said in a statement. The segment is expected to increase its asset utilisation rate, from the current eight rigs in operations, to 11 rigs by the end of the financial year ending Jan 31, 2023, the group added. Sapura Energy said its engineering & construction (E&C) segment has strengthened its presence in the Atlantic region with an engineering, procurement, construction and installation subsea umbilicals, risers and flowlines contract award by Enauta Energia SA to Sapura Energy Do Brasil and its consortium partner, Sapura Navegação Marítima S.A. "The contract commenced in the first quarter of calendar year 2022 for a duration of 33 months and is expected to achieve its first oil in 2024," it said. The group added that through its subsidiary Sapura Offshore Sdn Bhd, its E&C segment has been awarded a transportation and installation contract by Hess Exploration And Production Malaysia B.V. "The contract scope of work includes transportation and installation of a 51km pipeline, three wellhead platforms, two flexible pipelines, and subsea facilities in the North Malay Basin development," it said. Shares in Sapura Energy closed unchanged at five sen on Thursday, giving the group a market capitalisation of RM719.06 million.

https://theedgemalaysia.com/node/641588

BAT 3Q22 net profit dips 4.34% on one-off prosperity tax, declares 25 sen dividend

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KUALA LUMPUR (Oct 27): British American Tobacco (M) Bhd's (BAT) net profit for the third quarter ended Sept 30, 2022 (3QFY22) dropped by 4.34% to RM75.25 million from RM78.67 million a year ago, due to non-deductible expenses and one-off prosperity tax introduced this year which is chargeable for income above RM100 million. The group’s average effective tax rate in the nine-month financial period ended Sept 30, was higher than the 24% corporate tax rate as a result of the non-deductible expenses and prosperity tax. Quarterly revenue grew by 8.78% to RM666.9 million, against RM613.02 million, driven by a 4.9% increase in volume as the market continued to return to normalcy following the reopening of the economy. Earnings per share (EPS) came in lower to 26.4 sen per share, from 27.6 sen per share a year before. The group declared a third interim dividend of 25 sen per share — payable Nov 18 — bringing the total declared to 67 sen so far this year. The third interim dividend amounting to RM71.38 million represents 95% payout ratio. For the first nine months of FY2022 (9MFY22), net profit fell 5.9% to RM200.79 million against RM213.4 million a year earlier while revenue for the same period increased 2.9% to RM1.83 billion, from the RM1.78 billion registered a year ago.   In a separate statement, BAT Malaysia managing director Nedal Salem said the company will continue to emphasise tobacco harm reduction. “BAT Malaysia is particularly optimistic and is working with the relevant government stakeholders in its drive towards reducing the tobacco black market in Malaysia, in tandem with the government’s announcement to introduce new measures to address the high level of cigarette smuggling in Malaysia. “However, we believe these enforcement initiatives must be accompanied by measures to address affordability pressures for consumers. The company will continue its particular emphasis on tobacco harm reduction,” he added. On Thursday, BAT Malaysia’s share price gained 16 sen to RM10.52, valuing the group at RM2.99 billion.

https://theedgemalaysia.com/node/647602

Unemployment down to lowest since pandemic in October 2022

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KUALA LUMPUR( Dec 9): Unemployment fell to the lowest level since the Covid-19 pandemic in October 2022, reaching 602,000 persons, the Department of Statistics Malaysia (DOSM) reported on Friday (Dec 9). In the release of labour force statistics for October 2022, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said: “The optimistic labour force performance in October 2022 reflected the nation’s steady economic fundamentals, resulting from continuously growing economic and social activities." This, he said, was coupled with ongoing policy support to buffer the impact of the rising cost of living, and reduce negative risks associated with lingering geopolitical unrest and tightening external financial conditions. The statistics described the labour supply situation based on the Labour Force Survey conducted by the DOSM.  Mohd Uzir said during the period under review, domestic and international tourism helped boost demand for more labour. As a result, the number in the labour force continued to expand in October, with a month-on-month increase of 0.2% to record 16.68 million persons (September 2022: 16.66 million persons), whereas the labour force participation rate stood at 69.7%.  The improvement in the number of employed persons continued in October, with a month-on-month rise of 0.2% to register 16.08 million persons (September 2022: 16.05 million persons).   Meanwhile, the number of unemployed persons posted a decline of 0.5%, recording a lower number of unemployed at 602 thousand persons (September 2022: 605,000 persons).  The unemployment rate in October remained at 3.6%, 0.3 percentage point higher than the pre-pandemic level (February 2020: 3.3%).  Elaborating further on the employment situation, the chief statistician said: “The employees’ category, which was the largest composition of total employed persons with 75.9%, went up by 0.1% to 12.20 million persons in October 2022.  "A similar trend was observed in own-account workers, with an increase of 0.4% to record 2.83 million persons (September 2022: 2.82 million persons).”   By economic sector, the services sector continued to record an increase in the number of employed persons, mainly in food and beverage service, wholesale and retail trade, and finance and insurance/takaful activities. Similarly, the number of employed people in the manufacturing, construction and agricultural sectors also recorded increases. Meanwhile, employment in the mining and quarrying sector continued to fall.  The actively unemployed, or those who were available for work and were actively seeking jobs, encompassed 81.6% of total unemployed persons in October. This group posted a decrease of 1.1 % to 491,300 persons (September 2022: 496,600 persons).   By the duration of unemployment for the actively unemployed, 60.5% of the actively unemployed were unemployed for less than three months, while 6.3% were unemployed for more than a year.  Meanwhile, those who believed that no jobs were available, or the inactively unemployed, rose by 2.1% to 110,700 persons (September 2022: 108,400 persons). In October, the unemployment rate of youths aged 15 to 24 years remained at 12.1%, with 337,200 unemployed youths (September 2022: 339,100 persons).  Meanwhile, the unemployment rate among youths aged 15 to 30 years rose to 7.4%, registering the number of unemployed youths at 476,900 persons (September 2022: 7.1%; 460,400 persons). As for inactive groups, the number of persons outside the labour force continued to show a downward trend since August 2021, decreasing by 0.03% to record 7.24 million persons (September 2022: 7.24 million persons). The majority were outside the labour force due to housework/family responsibilities with a share of 43.3%, followed by schooling/training with 40.9%.  Read also: Strong growth in wholesale and retail trade to RM133.9b in October — DOSM

https://theedgemalaysia.com/node/671037

马电讯为MyGov*Net续签10年特许经营权

Mandarin

（吉隆坡13日讯）马电讯（Telekom Malaysia Bhd）独资子公司GITN私人有限公司今日与政府签署了MyGov*Net的10年特许经营权延长协议。 马电讯在今年1月宣布接受政府的履约函，将MyGov*Net的特许经营权延长10年，从今年1月1日至2032年12月31日。 最新的MyGov*Net特许权，即MyGov*Net 2.0，价值上限为49亿令吉，包括6%销售和服务税。 工作范围是为政府提供安全的综合电讯网络，连接马来西亚1万多个政府办公场所和马来西亚驻海外大使馆。 马电讯说：“MyGov*Net 2.0将为马电讯集团截至今年12月杪财年的收益及净资产作出积极贡献。” 马电讯今日以5令吉平盘挂收，市值达191亿1000万令吉。   （编译：魏素雯）   English version：TM inks 10-year concession extension for MyGov*Net

https://theedgemalaysia.com/node/650713

S&P Global: Asian palm oil prices expected to be rangebound in 2023

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KUALA LUMPUR (Jan 6): Asian palm oil prices are expected to be rangebound in 2023 after a volatile 2022 despite Malaysia entering the year with low stocks and China's used cooking oil exports set to increase to Europe and even extend to the US. In a report on Thursday (Jan 5), S&P Global Commodity Insights said the biodiesel market was marked by a rapid change in fortune in 2022 as palm oil prices plunged from May after being pressured to historic highs in the wake of Russia's invasion of Ukraine in February. It said Indonesia's move to ban palm oil exports in May in a bid to rein in domestic cooking oil prices caught the market by surprise and was followed by an equally abrupt reversal weeks later and a push by the government to hike exports as overflowing storage tanks sent palm oil prices plunging. The firm said Platts assessed crude palm oil at an historic high US$1,930/mt (RM8,483/mt) FOB Indonesia March 10 before prices plunged to a year-to-date low of US$783/mt on Sept 29, S&P Global Commodity Insights data showed. The outlook for Malaysian prices in 2023 is also more moderate after volatility in 2022.

https://theedgemalaysia.com/node/605929

2022 is off to a brisk start for crypto and blockchain funding, says report

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KUALA LUMPUR (Feb 1): 2022 is off to a brisk start for crypto and blockchain funding, with funding for the first 26 days of January totalling over US$2.7 billion. In the past week, Crunchbase — which tracks trends, investments and news of global companies from start-ups to the Fortune 1000 — said the biggest rounds came this week, as digital asset security provider Fireblocks raised US$550 million and cryptocurrency exchange FTX raised US$400 million at an US$8 billion valuation. It said other big 2022 rounds include OpenSea, an NFT marketplace that pulled in US$300 million, and iTrustCapital, a service for investing in crypto through IRA accounts, which raised US$125 million at a valuation over US$1.3 billion. Reviewing 2021, Crunchbase said for crypto startups and unicorns, 2021 was an exceptionally good year. However, it said for public companies tied to the crypto space, 2022 has been off to a bad start. It said last Friday (Jan 28), the price of Bitcoin was hovering around US$37,000, down around 45% from its November high. It said the S&P Cryptocurrency Broad Digital Market Index was down a similar amount. And the bulk of shares from a sample of public companies in the crypto space, most previously venture-backed, all were down over 50% from peaks hit in the past year. Crunchbase said some of the standouts include: -     Coinbase, the popular platform for cryptocurrency transactions, is down over 50% from its peak. -     Robinhood, the zero-fee stock and crypto trading provider, has fallen more than 80% from its peak. -     Bakkt, a digital asset platform, is down over 90% from its highs earlier this year. -     Safello Group, a Swedish crypto wallet provider, is down over 80% from its peak. Venture funding in the crypto space hit more than US$21 billion in 2021, far surpassing the US$3.7 billion invested in 2020, according to Crunchbase numbers. Crunchbase said that level of funding also helped mint more than 30 new unicorns last year in the industry.

https://theedgemalaysia.com/node/640542

External headwinds to dominate sentiment as the stock market heads towards election cycle

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KUALA LUMPUR (Oct 19): No matter how the upcoming 15th general election (GE) plays out, markets are not likely to sit still. The FBM KLCI index, the FBM Emas (that comprises all large, mid and small-cap companies) and the FBM Small Cap index will continue to be volatile leading up to the GE, said equity market analysts and fund managers, adding that the swing in share prices as the GE nears is an indication that the market is nervous about the next occupant of Putrajaya. Nonetheless, while market volatility is somewhat expected running up to the snap polls, experts opined external headwinds will be the dominant factor in determining the direction of the market. “Regardless of the election outcome, the KLCI will remain volatile until we see clear improvements on the macro-front. However, in the longer term, the market should do well if we have a solid and credible government with the political will to carry out [the] much-needed institutional and fiscal reforms,” said David Loh, deputy head of equities at Affin Hwang Asset Management. In the last five GEs from 1999 to 2018, the FBM KLCI added the most in GE11, with an increase of 5.48% one month before the election. Similarly, the FBM Emas gained the most in GE11 at 4.97%, and FBM Small cap increased the most in GE14 with 4.25%.   In the month post election, the FBM KLCI ended with the most gains in GE10, at 9.54% post election. FBM Emas gained the most in post GE10 at 8.73%, while FBM Small Cap was the highest in GE13, which added 18.06%. While history is a good guide, the future is not set in stone, says Fortress Capital Asset Management Sdn Bhd CEO Thomas Yong. “Historical data from past polls will not be as useful in gauging investors’ sentiment and predicting the market trend, as other external factors continue to weigh on investment decisions. “Investor concerns ahead of the upcoming GE are largely on issues surrounding policy stability. Until the previous GE in 2018, Malaysia has never experienced a regime change,” said Yong. Yong added that the market is more concerned about the hawkish tone set by major central banks to counter inflationary pressures. This year, the US Fed has raised the interest rate five times with chair Jerome Powell indicating more increases to come. As at Sept 21, the current federal funds rate stands at 3%-3.25%. Simultaneously, the Monetary Policy Committee (MPC) of Bank Negara Malaysia has increased the Overnight Policy Rate (OPR) by 25 basis points (bps) to 2.5% as of Sept 8. Interestingly, since the OPR hikes in May, the FBM KLCI has tumbled to a low of 1,373.36 points on Oct 13. While it has rebounded to close at 1,400.36 on Oct 18 (Tuesday), it is still 167.17 points down, or 10.66% year-to-date (YTD), compared with 1,567.53 points on Dec 31, 2021. “A moderation of US inflation could temper the US Fed’s hawkish rhetoric. That could signal a peak in US dollar strength, which bodes well for emerging markets broadly,” said Affin Bank’s Loh. The heightened volatility in the currency market is also spooking investors. The ringgit has been weakening against the US dollar this year; it sunk to a record low of 4.7168 on Oct 17.   YTD, the ringgit has shed 13.2% against the greenback to 4.7155  on Oct 18, from 4.1665 seen in end-December last year. The waning foreign demand for Malaysian Government Securities (MGS) and Government Investment Issues (GII) further proved to be a mixture of bad cocktail for the currency, that will further dent investors’ confidence. “The 10-year US Treasury Yield (UST yield) jumped 68.0 bps (basis points) m-o-m (month-on-month) to 3.83% as at end-September, outpacing the 10-year MGS yield, which rose 45.7 bps to 4.44% as at the same date. “Consequently, this has narrowed the differential between MGS and UST yields, reducing the appeal of ringgit bonds for foreign buyers. The rate differential persisted in October, where the UST yields continued to outpace the increase in the MGS yields,” said analyst Woon Khai Jhek of Ram Ratings Sdn Bhd. Malacca Securities head of research Loui Low Ley Yee reckoned that investors can look at GE14 for clues to predict market movement for the upcoming GE15 that will likely be held in November 2022. He stated that party alliances are almost similar to what was witnessed in GE14 in 2018. GE14 was led by two major coalitions consisting of Barisan Nasional (BN) and Pakatan Harapan (PH), while GE15 is set to witness a battle between three coalition parties — BN, PH and Perikatan Nasional (PN). He added that should any party secure a two-thirds majority in Parliament in GE15, KLCI could rebound strongly to above the 1,600 level. In the scenario of a simple majority, KLCI is expected to be dragged down to the 1,400 to 1,500 range, according to Loui. He shared that the data compiled for the past 10 elections (from GE5 to GE14) showed that KLCI has a total average negative return of 0.1% for the first two weeks after the elections. “However, the trend turned positive with an average return of 2.7% one month after elections, 4.1% three months after elections, 3.8% six months later, and 11.9% 12 months post-elections,” he observed. Nonetheless, he said the biggest risk for the market will be if the coalition party fails to secure the majority after GE15, which will result in a hung Parliament. This could lead to an inability to pass Budget 2023, that could possibly cause a sell-down in KLCI. Investors are advised to slowly deploy cash over the next few months for a longer-term perspective, says Areca Capital Sdn Bhd CEO and executive director Danny Wong. “We like strong fundamental and liquid stocks for better risk management. Cash position of investing companies is one of the key considerations,” said Wong. Echoing the same sentiment, Fortress Capital’s Yong said valuation of Asian equities have reached attractive levels, which could prove to be a call for investors to explore sectors that are not too sensitive to policy certainties, and select companies with good fundamentals. “Having said this, different investors will have varying investment objectives, and risk and return profiles. Generally, market sentiment rewards a strong political mandate that allows political stability and policy continuity. Budget 2023 was tabled just before the election, and it provides a gauge of sectors that would benefit from the budget if the incumbent coalition wins the GE,” said Yong. He added that the consumer and construction sectors in particular are expected to benefit from tax cuts, handouts and planned infrastructure projects, while sectors that are less affected are the banking, plantation, automotive, healthcare, oil & gas, and technology sectors.

https://theedgemalaysia.com/node/667616

State polls: Perikatan Nasional’s seat allocation 95% done, says Takiyuddin

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KOTA BHARU (May 18): The process of allocating seats among Perikatan Nasional (PN) component parties for the six state elections this year is now 95% complete, said PAS secretary-general Datuk Seri Takiyuddin Hassan. He said PN would be applying the same formula that it adopted for the 15th general election last November, including contesting under PAS’s moon symbol in Kelantan and Terengganu, and the PN logo in Penang, Kedah, Selangor and Negeri Sembilan. “In the PN context, you can say seat distribution among component parties is 95% settled and it’s up to these parties to determine their candidates. “For sure, the guideline is to pick winnable candidates to be fielded in seats allotted to the respective parties,” he told reporters at an Aidilfitri open house here on Thursday (May 18). Takiyuddin, who is Kota Bharu Member of Parliament, said another round of seat negotiations would be held on May 24 for two West Coast states, while the other states are almost done with theirs. PN comprises of PAS, Bersatu and Gerakan.

https://theedgemalaysia.com/node/606812

HSBC Asset Management appoints John Dewey as head of alternative solutions

English

SINGAPORE (Feb 9): HSBC Asset Management (HSBC AM) has appointed John Dewey as head of alternative solutions, HSBC Alternatives. He will initially be based in London and will report to Joanna Munro, CEO of HSBC Alternatives. In this newly created role, Dewey will be responsible for...(click on link for full story on theedgesingapore.com)

https://theedgemalaysia.com/node/675030

DC Healthcare weighs medical tourism as future growth driver

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KUALA LUMPUR (July 17): Newly-listed DC Healthcare Holdings Bhd said the group is considering medical tourism as an opportunity for future growth. During a press conference on Monday (July 17), the aesthetic medical services provider said given the current medical clinics under its belt, it would be able to attract a certain number of foreigners and tourists, citing its Johor Bahru branch as an example of opportunities arising from the foreign market. “Our Johor Bahru branch has given us the opportunity to tap into the Singaporean market as it is a very close distance away from the border,” it commented. DC Healthcare added that its clinics located in central regions are also seeing growth in servicing foreigners and tourists. Following its successful listing on Monday with an opening price of 40 sen, compared to its initial price offering (IPO) of 25 sen, DC Healthcare said that the group will focus and commit to delivering its promise of expanding its footprint by opening eight new aesthetic clinics, alongside the expansion of machinery, medical consumables and products. The launch of its eight new clinics will take place in Johor, Melaka, Negeri Sembilan, Pulau Pinang, Perak, and Kedah, with RM9.44 million of the raised funds allocated for establishing these eight clinics, according to its prospectus. “We will get all these eight new aesthetic clinics ready and operating within 18 months from today. We believe with all the machines and better expansion to the total number of outlets that we have, we can deliver good results,” said Dr Chong Tze Sheng, managing director of DC Healthcare. “As we have planned, these geographical expansions will help the group to provide better access to our customers who are currently travelling from these places to our clinics and to cater to any potential customers that are located in these areas,” he added. All eight branches also plan to operate under the brand of Dr Chong Clinic. DC Healthcare chief financial officer Wilson Yong said that each branch will require an estimated RM1.5-2 million to build and expects that it would “roughly take around six to nine months for the group to breakeven.” “We are very optimistic about the prospect of our gross-profit margin, as our aesthetic services are our main revenue contributor, we expect our profit margin to be maintained for a short-term period despite the opening of new branches,” Yong added. Speaking on the prospects of the group given the opening of borders and increasing international competition, Chong said that this is a challenge the group always considers and that in terms of aesthetic medical practices, Malaysia is among the top in the world as its medical standards are among the best. The group did not share further information in regard to other future prospects and said that it “will focus on these eight new medical clinics for the next 18 months.” At 11.06am, the counter was priced at 44 sen and was the most active stock with 160.38 million shares trading hands. Read also: DC Healthcare debuts on ACE Market with 60% premium at 40 sen  

https://theedgemalaysia.com/node/654400

Cypark among top gainers after Perkeso emerged as substantial shareholder

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KUALA LUMPUR (Feb 8): Cypark Resources Bhd was among the top gainers on Bursa Malaysia in the morning trading session on Wednesday (Feb 8), rising by as much as 15 sen or 14.6% to RM1.18 a share, after the Social Security Organisation (Perkeso) emerged as a substantial shareholder. Perkeso is also known as Socso. Just before the noon break, the counter pared some of its gains to settle at RM1.16, still up 13 sen or 12.6% higher. About 34.62 million shares changed hands. On Tuesday, Cypark announced that Perkeso had acquired two million shares or a 5.026% stake via a direct deal on Feb 2 at an undisclosed price. Just a little more than a month ago, the renewable energy company announced that Jakel Capital — the investment arm of textile trading and property developer Jakel Group — had emerged as its single largest shareholder with a 27.33% stake after subscribing to a private placement exercise. Read also: Perkeso emerges as Cypark’s substantial shareholder 

https://theedgemalaysia.com/node/652490

US hits debt ceiling amid standoff between Republicans and Democrats

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WASHINGTON (Jan 19): The US government hit its US$31.4 trillion borrowing limit on Thursday, amid a standoff between the Republican-controlled House of Representatives and President Joe Biden's Democrats that could lead to a fiscal crisis in a few months. Treasury Secretary Janet Yellen informed congressional leaders including House Speaker Kevin McCarthy that her department had begun using extraordinary cash management measures that could stave off default until June 5. Republicans, with a newly won House majority, aim to use the time until the Treasury's emergency maneuvers are exhausted to exact spending cuts from Biden and the Democratic-led Senate. Yellen warned that the June date was subject to "considerable uncertainty" due to the challenge of forecasting payments and government revenues months into the future. "I respectfully urge Congress to act promptly to protect the full faith and credit of the United States," Yellen told congressional leaders in a Thursday letter. But there was no sign that either Republicans or Biden's Democrats were willing to budge. Republicans are pursuing a "debt prioritization" plan that would seek to avert default by urging the Treasury to prioritize debt payments, and possibly other priorities such as Social Security and Medicare, should the limit be breached during negotiations. Republicans hope to complete the legislation by the end of March. Brian Deese, director of the White House National Economic Council, on Thursday emphasized the risks of the uncertainty over whether the United States will honor its debts to the country's own economy, as well as its global standing. "This is not that complicated. This is not about new initiatives or new opportunities. This is about meeting the obligations that this country has already made," Deese said in an interview with CNN. The prospect for brinkmanship has raised concerns in Washington and on Wall Street about a bruising fight over the debt ceiling this year that could be at least as disruptive as the protracted battle of 2011, which prompted a downgrade of the US credit rating and years of forced domestic and military spending cuts. "We're not going to default on the debt. We have the ability to manage servicing and paying our interest. But we similarly should not blindly increase the debt ceiling," Representative Chip Roy, a leading conservative, told Reuters. Roy dismissed concerns about unsettling markets and risking a recession. "That's what they say every time. It's like clockwork," Roy said in an interview. "We're already barreling toward a recession. The question is what it's going to look like — unless the combination of monetary policy and fiscal policy saves us from our stupidity of having spent so much money." Congress adopted a comprehensive debt ceiling, the statutory maximum of debt the government can issue, in 1939, intending to limit its growth. The measure has not had that effect, as, in practice, Congress has treated the annual budget process — deciding how much money to spend — separately from the debt ceiling — in essence, agreeing to cover the costs of previously approved spending. Negotiations on debt prioritization and spending are not expected to get into full swing until lawmakers return to Washington next week. The Republican plan calls for balancing the federal budget in 10 years by capping discretionary spending at 2022 levels, and using House oversight to identify federal programs that can be eliminated or scaled back in spending bills that are expected to emerge from the House Appropriations Committee later this year. In the meantime, House Republicans are vowing to reject sweeping government funding bills from Senate Majority Leader Chuck Schumer, akin to the US$1.66 trillion bipartisan omnibus package that Congress passed late last year. White House officials also note that Republicans in Congress backed multiple increases to the debt ceiling when Republican Donald Trump was president. "We are optimistic that Democrats will come to the table and negotiate in good faith," said Republican Representative Ben Cline, who leads a conservative task force on the budget and spending. "There's a lot of room to negotiate when it comes to steps that can be taken to address the fiscal crisis that we find ourselves in."

https://theedgemalaysia.com/node/629690

持续套利及缺乏催化剂 拖累马股收低

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（吉隆坡26日讯）交易员表示，马股周二收低，主要是持续套利活动及缺乏市场催化剂所致。 截至下午5时，富时隆综指挫5.53点或0.38%，收报1463.69点，周一挂1469.22点。 富时隆综指今早低开2.73点，报1466.49点，盘中在1459.12点至1466.49点之间窄幅波动。 下跌股409只，上升股390只，410只无起落，1100只无交易及27只暂停交易。 马股总成交量增至24亿1000万股，总值12亿2000万令吉，周一则有20亿1000万股转手，总值11亿2000万令吉。 乐天交易私人有限公司股票研究部副总裁唐柏麟预计，由于本地股市的估值低于区域股市，加上令吉贬值，外国基金将会趁机继续累积本地股票。 他告诉马新社：“因此，我们估计富时隆综指将会小幅走高，本周徘徊于1460点至1485点之间，即时阻力位为1500点，支撑位则在1460点，接着是1410点。” 同时，区域股市普遍收高，因为有消息称，中国的新冠肺炎新增确诊病例降至一周多以来的最低水平，这有助于市场情绪。 新加坡海峡时报指数升0.37%，至3192.12点，香港恒生指数涨1.67%，挂20,905.88点，上证指数扬0.83%，报3277.44点，韩国首尔综合指数起0.39%，收报2412.96点，日本日经指数跌0.16%，至27,655.21点。 本地重量级股方面，马银行（Malayan Banking Bhd）降1仙，至8.79令吉，大众银行（Public Bank Bhd）、国油化学（Petronas Chemicals Group Bhd）、IHH医疗保健（IHH Healthcare Bhd）及联昌国际集团（CIMB Group Holdings Bhd）各挫2仙，分别报4.60令吉、8.62令吉、6.43令吉和5.20令吉。 至于热门股，今日在创业板粉墨登场的UMediC Group Bhd劲扬12仙，挂44仙，Serba Dinamik Holdings Bhd起2.5仙，至11仙，MyEG服务（MY EG Services Bhd）扬1.5仙，收于75.5仙，民泰近电（Bintai Kinden Corporation Bhd）增1仙，至12仙，而Zen Tech International Bhd则降0.5仙，至5仙。   （编译：魏素雯）   English version：Bursa ends lower on profit-taking

https://theedgemalaysia.com/node/625777

Old and new dividend plays

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This article first appeared in Capital, The Edge Malaysia Weekly on June 27, 2022 - July 3, 2022 IN times of uncertainty, investors take shelter in dividend-yielding stocks. A check on Bloomberg yielded some unconventional names that are not usually considered dividend stocks. For example, Boustead Plantations Bhd came out on top of the list, with a forecast dividend yield of 16.9%, based on the counter’s last traded price of 83 sen and Maybank Investment Bank Research’s estimated dividend per share of 14.1 sen for the financial year ended Dec 31, 2022 (FY2022). Quite a number of plantation companies made it to the top 30 list, namely Kim Loong Resources Bhd, Sarawak Plantation Bhd, Hap Seng Plantations Holdings Bhd and Ta Ann Holdings Bhd. This is not surprising considering the still high crude palm oil (CPO) prices. While CPO futures have come off their all-time high of more than RM7,000 per tonne, which it reached in April, the commodity remains at elevated levels of more than RM4,000 per tonne at the time of writing. Many analysts are still expecting CPO prices to average RM5,000 per tonne this year, leaving headroom for planters to absorb higher fertiliser and labour costs. It is worth noting that dividend yields have gone up because the share prices of plantation counters have fallen, likely due to the combination of market uncertainty and lower CPO prices. Of course, as the information is based on analyst forecasts, the actual dividend may vary. As Maybank IB Research pointed out in its June 7 report on Boustead Plantations, FY2022’s dividend payout ratio may fall short of expectation considering the company’s plan “to conserve cash for acquisition[s] and replanting”. The usual suspects on the list include consumer play British American Tobacco (Malaysia) Bhd and Astro Malaysia Holdings Bhd, as well as banks Malayan Banking Bhd and Affin Bank Bhd. However, the prospects for BAT may be less rosy than for Astro given the highly regulated sector it is in. Apart from these, utility players and concessionaires retain their places on the list as stable dividend-yielding stocks. These include Malakoff Corp Bhd, Taliworks Corp Bhd and Cypark Resources Bhd. “Dividend plays work well for investors who prefer to construct a more passive portfolio, as good dividend gems can help outperform inflation in the long run, hence maintaining one’s purchasing power in the long term. Defensive plays such as food and beverage, retail and utilities can be a good complement to an investor’s overall portfolio, depending on the investor’s risk appetite,” says Fortress Capital Asset Management (M) Sdn Bhd investment director Chua Zhu Lian. Real estate investment trusts (REITs), with their long-term lease agreements, are considered defensive investments, although an environment of rising interest rates could reduce their appeal. “REITs could be a better hedge against inflation in a volatile market. Having said that, I would encourage investors to look for fundamental growth stocks, because in these next three to five years, the megatrend technology and semiconductor industries will be big. Don’t ignore those markets,” says Areca Capital Sdn Bhd CEO Danny Wong Teck Meng. He explains that some industries and manufacturers may benefit from the weak ringgit because Malaysia is not as aggressive as developed markets in normalising interest rates. In that sense, the ringgit will be seen as relatively weaker than developed-market currencies. Therefore, the local currency may seem slow or depreciate against major currencies, which should encourage exporters. However, Ng Zhu Hann, CEO of boutique asset management company Tradeview Capital Sdn Bhd, is pessimistic. “If you look at our market, you will realise that regardless of the ‘defensive qualities’ of a company or sector, when the global market starts selling, no sector or company will be spared, be it utilities, telecommunications, consumer goods or essentials. A broad-based systemic sell-off means there is really no safe haven apart from fixed deposits,” he says. Ng advises investors to consider reputable companies with an established track record of consistently providing dividends to ensure there are returns from investments in the midst of a potential recession or prolonged down cycle. “At least by doing so, you have an income stream from the stocks you are holding,” he points out. “When the market rebounds, these stocks will follow suit. I strongly believe that if you protect your downside, the upside will take care of itself.”   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/633023

Not just imposing, but functional

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This article first appeared in City & Country, The Edge Malaysia Weekly on August 22, 2022 - August 28, 2022 Menara Bangkok Bank is an imposing structure that is hard to miss. Located at the intersection of Jalan Sultan Ismail and Jalan Ampang, and adjacent to the Bukit Nanas monorail station, the tower is situated opposite the Renaissance Kuala Lumpur Hotel and only 1km from the KL city centre. A fountain with a water curtain greets visitors to the building, creating a soothing atmosphere. Sitting on a 2.7-acre freehold parcel, Menara Bangkok Bank is part of the Berjaya Central Park development, which comprises two 48-storey towers — the other of which is a branded residential tower known as The Ritz Carlton Residences. Menara Bangkok Bank is a Grade A stratified office building with 192 corporate suites in flexible layouts. With built-ups of 775 sq ft to an entire floor of 12,000 sq ft, the units can cater for the needs and requirements of different businesses. Completed in June 2015, Menara Bangkok Bank was developed by Wangsa Tegap Sdn Bhd, a wholly-owned subsidiary of Berjaya Corp Bhd, and is managed and maintained by Henry Butcher Malaysia (Mont Kiara) Sdn Bhd (HBMK). The tower, with a total net lettable area of 497,878 sq ft and an occupancy rate of 74%, boasts an excellent location and accessibility to public transport, factors that have attracted several business owners to set up shop there. Menara Bangkok Bank has once again bagged the Gold award in the Below 10 Years Multiple-owned Strata Office category. It received the same accolade at the inaugural awards ceremony in 2017 (Gold winners are only eligible to re-enter the same category after three years). Since its last win, HBMK managing director Low Hon Keong says the building has installed electromagnetic (EM) locks on every floor to prevent people from using the staircase to access other floors.  “The system, however, is connected to the fire system, so the EM locks would automatically be released when the alarm is triggered. For some of the major tenants/owners who occupy multiple floors, they can request access [to more than one floor], so that they can use the staircase instead of the lifts. “As for the building’s connectivity, telecommunication signal boosters are used to enhance cellular signals. The carbon dioxide (CO) sensors, CCTV system, fire system equipment and the speed/efficiency of the lifts have been enhanced. The lighting in the building has been switched to energy-efficient ones, which has reduced the cost. It is also a better and safer light source overall,” says Low. To ensure the office tower remains secure at all times, a five-tier security system has been incorporated, says Low. “[They are] the visitor management system, which requires all visitors to register themselves at the lobby; car park barricade system; security turnstile gate before entering the lift lobby; lift access control system; and office suites’ entrance access system, for which access cards will only be programmed for the registered floors.” He adds that the loading bay entrance is also strictly controlled by a security team to ensure all contractors have registered before they enter the building’s premises. There is a dedicated lift for them to access the respective floors. Another aspect that has helped in strengthening the building’s security is loyalty, says Kamarul Zaki Kamarull Azman, who is a member of the joint management committee (JMC). “The security team and concierge have been with us since day one, thus they are very familiar with the [security] system and building occupants.” According to Low, Menara Bangkok Bank is one of the first office buildings to use a variable refrigerant volume (VRV) chilled water system. “Unlike conventional chiller-based systems, the VRV system is an inverter product and allows for varying degrees of cooling in specific areas. It changes the refrigerant volume in a system to match a building’s precise requirements. This is where only a minimum amount of energy is required for a system to maintain set temperatures and ensure that it automatically shuts off when no occupants are detected in a room.” Low explains that the VRV system is equipped with a trouble sensor that helps to save time for maintenance and troubleshooting works. The cost to maintain the said system is a bit high but for five-star equipment like this, it is important to ensure that it is well maintained and always up to the standard, he adds. “Preventive maintenance is done consistently to avoid major breakdowns, thus regular servicing work for the cooling tower is required. The service works are conducted twice a month by our appointed contractor and the filter is replaced every two years. With proper maintenance, the chance of a major breakdown is expected to be reduced and will save up to 40% of [the system’s] maintenance [cost] in the long run,” Kamarul reckons. Meanwhile, HBMK has managed to maintain a strong average service charge collection of 99.91%. “Setting up a good culture for the entire building is important and in fact, the service charge has remained at RM9.61 per share unit from day one. We have a strong financial position that enables us to provide quality maintenance for the building, and we were also able to provide rebates to occupants during the lockdowns,” says Low. One of the major measures taken to maintain the collection rate was to have a rebate programme, which was implemented once in 2020 and twice in 2021. This was when occupants were given a two-month waiver on service charges. The collection rate was close to 100% pre-Covid-19, but decreased marginally to 95% during the lockdowns. Although the rate was affected during that period, Low believes that it was still at a manageable level. The accounts personnel follows up accordingly by making calls and sending reminders, so that the collection rate will remain healthy. “Occasionally, we do have certain owners and tenants who were slightly late in paying their service charges and were charged late payment interest. For those who fail to make payments, legal action will be taken against them. Nevertheless, most of the occupants do pay their service charges on time,” says Low. When it comes to indoor air quality (IAQ) features, HBMK associate director Lee Siang Ling notes that CO sensors have been incorporated in all office units. They are located above the ceiling of every floor and made to leverage the heat energy and enhance IAQ. “The sensor will be able to detect unwanted heat and provide a signal to the exhaust fan to remove the heat energy and replace it with fresh air. If the CO level in the building appears to be higher than usual, the sensor would be able to detect it and pull in fresh air. If the sensor is faulty, we will receive a signal and be able to detect it,” she explains, adding that indoor potted plants have been placed in the common areas to enhance IAQ. Menara Bangkok Bank is a smoke-free building, says Lee. “We ensure signage is placed at the prohibited areas and smokers are required to go to the dedicated smoking area, which is located near the loading bay. Those who are caught smoking [elsewhere] will be penalised.” The Joint Management Body and management team of Menara Bangkok Bank have also requested the Department of Occupational Safety and Health (DOSH) to conduct an IAQ assessment of the building. “The DOSH has monitored and assessed the effectiveness of the building’s IAQ and the results have shown that the IAQ is good — it is about providing healthy air, not chilled air, to the occupants,” she continues. The building has received the BCA Green Mark Gold Certification by the Singapore Building and Construction Authority. Thus, it is able to attract good quality tenants and investors to set up office and buy units there, says Lee. These are the people who prioritise having a sustainable environment and healthy workplace, and are willing to pay higher rents. Prices of office suites at Menara Bangkok Bank have escalated since their completion in 2015. Low states that the office suites were sold at RM1,000 psf during the launch in 2013; their current value is hovering in the region of RM1,400 to RM1,500 psf, an appreciation of 40%. “Rental, however, was affected in 2020 and 2021 by Covid-19 which prompted many businesses to adopt work-from-home policies. Prior to the pandemic, the rental rate was about RM6 to RM7 psf. The rate had decreased to RM4 to RM5 psf during the pandemic, which is a yield of 5.7% to 6.6% based on the current market price.” In addition, the renovation guidelines of the building were done in accordance with BCA Green Mark standards. Lee says occupants are encouraged to use certified low volatile organic compound paint in all units and low-emitting formaldehyde adhesive for all composite wood products for better IAQ. “Certified sustainable materials of the Singapore Green Labelling Scheme should also be used for all carpets and ceiling boards that are installed within the premises, as well as energy-efficient electrical appliances to save on utility bills and to install curtains, blinds or solar window films over the windows to maximise natural light and reduce energy consumption.” The façade of Menara Bangkok Bank utilises aluminium panels and wall glass panels, with the use of low-E double glazing for heat and sound insulation, thereby reducing electricity costs, says Lee.  “The building’s façade bears the brunt of environmental stress as well as weather conditions. Thus, we appoint façade cleaners [three times a year for all outer surfaces of the building], as regular care and upkeep are extremely important for the maintenance of the overall condition of the structure and the property value,” she adds. “As a property manager, our job is not only to manage and maintain the common areas but also to ensure that the entire building is functioning well. Hence, we need to take ownership of our role to get to know who the tenants and owners are in the building and the nature of their business,” says Low.  Mahdi Aliabadi, who owns office suites at Menara Bangkok Bank, is currently on the subcommittee of the JMC. During the development stage of the tower, Mahdi says the developer had taken into consideration that the area is prone to floods and designed the building to be slightly elevated above the road level. “The crisis management team also established an emergency response plan (ERP) and disaster recovery planning (DRP) to increase occupant safety and reduce business interruption.” Kamarul notes that the security team and technicians are required to conduct patrols every hour during rainy days to monitor the office building, especially the basement, so that problems can be identified at an early stage.  “We will conduct routine checks by inspecting the sump pump’s condition and ensuring that the sump pit is cleared from time to time. During patrolling, the security team will constantly check the drainage and immediately notify the management should any issue arise, such as an increased water level.” HBMK’s main target is to ensure the building is fully functional and things remain in good condition and look as good as new. “We will enhance the security and safety features and ensure that the firefighting system is always in tip-top condition and operational. In respect of the CCTV system, we will continuously upgrade the system. We are also developing a facial recognition system for the occupants to strengthen security measures,” says Low. The management is looking to have a centralised building maintenance and monitoring system. “This is an enhancement of our current building monitoring system, which will allow us to monitor critical areas remotely, such as the water pump room, lift motor room and genset room. This will also help the management to monitor and control security issues in real time, off-site,” he notes. “We intend to incorporate solar panels to reduce energy costs. However, the building has limited space for solar-panel installation, so we are thinking of how to allocate the space for the panels. “It is also crucial to ensure that the building’s signage is always up to date, subsequently providing clear communication to visitors and occupants. Having said that, we believe our funds will be sufficient as most of the work has been budgeted,” says Low.  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/624232

Kenanga Research cuts FY23 net profit forecast for Pestech by 25%

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KUALA LUMPUR (June 16): Kenanga Research has maintained its “outperform” rating on Pestech International Bhd at 47 sen with a lower target price (TP) of 66 sen (from 87 sen) based on unchanged FY23E PER of 12.4x, which is at a 20% discount to the average prospective PER of 15.5x for international peers Siemen and ABB. In a note on Thursday (June 16), the research house cut its FY23 net profit forecast for Pestech by 25%, and said cost pressure and weak billings may persist into the next few quarters but the start of KLIA Aerotrain in 4QFY22 should help to gradually improve earnings. “Its order book as of March 2022 at RM1.93 billion will keep them busy for the next 2-3 years. “While keeping FY22E revenue and FY22E-FY23E project operating margins, we lowered our FY23E revenue assumption to RM750 million from RM1.05 billion which led us to cut our FY23 net profit forecast by 25% to RM52.5 million with our FY22E net profit estimate unchanged at RM50.6 million,” it said. “The soft patch aside, we continue to like this niche utility infrastructure play which could potentially benefit from the revival of megaprojects domestically and the fast-growing energy infrastructure development market in Indo-China,” it said.

https://theedgemalaysia.com/node/613837

SC warns of inadequate shareholder activism as issuance of new securities faces 'very low' dissent

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KUALA LUMPUR (March 28): The Securities Commission Malaysia (SC) said the level of shareholder dissent in 2020 was "very low" against the increase in the general mandate for the issue of new securities from 10% to not more than 20% of the total number of issued shares by public listed companies (PLCs) in Malaysia. According to the SC's 2021 annual report which was published on Monday (March 28), while this could indicate overwhelming support for such corporate proposals, it could also imply low levels of investor activism among minority and institutional shareholders. "Generally, the SC observed that the level of dissent was very low; the proportion of dissenting votes was only 0.4% on average and 17 out of 48 resolutions received no dissent at all. "The shareholder bases of these PLCs were also relatively small, with only an average of 33 shareholders needed to pass the resolution," the SC said. A further review of the implied low levels of investor activism among minority and institutional shareholders may be carried out to understand the underlying shareholder dynamics and heighten investor activism in corporate proposals by PLCs in Malaysia, according to the SC. "In light of significant disruptions to the business environment due to the Covid-19 pandemic, the SC and Bursa Malaysia introduced various relief measures to assist PLCs in navigating through the pandemic. One of the relief measures allowed PLCs to increase the general mandate limit for a new issue of securities from the existing 10% to not more than 20% of the total number of issued shares, subject to certain conditions, initially for a period up to Dec 31, 2021. "In December 2021, the deadline for the relief was extended to Dec 31, 2022 for PLCs that have yet to raise any funds using the 20% mandate in 2020 or 2021. "In 2021, the SC conducted a policy evaluation of this fundraising relief by examining General Mandate Private Placements (GMPPs) announced in 2020 in line with the SC’s adoption of an evidence-based regulatory policy framework. Comprehensive data on the GMPPs announced in 2020 was collected and analysed, and the findings were used to provide a greater understanding of the GMPP market as well as to inform deliberations on similar policies," the SC said. According to the SC, PLCs and investors have specific roles to collectively deliver robust protection for investors. To promote market transparency, the industry and PLCs should take their cue from international best practices to provide adequate and meaningful GMPP disclosures to investors, and ensure proper utilisation of the proceeds raised, according to the SC. "Investors should also exercise vigilance when reading the GMPP proposal documents and raise concerns, if any, during general meetings. PAs (principal advisers) advising on GMPPs and the intermediaries involved must put in place robust processes, controls and resources to ensure the highest quality of due diligence and compliance," the SC said. The SC cited practices among listed companies in the UK where the pre-emption group, an industry body comprising listed companies, investors and intermediaries, exists to promote best practices in the observation of investors’ pre-emption rights. "In the UK, listed companies are also given the flexibility to raise funds up to 20% of their share capital on a temporary basis instead of the usual 5% for general corporate purposes, with an additional 5% for specified acquisitions or investments. "The pre-emption group, an industry body comprising listed companies, investors and intermediaries which exists to promote best practices in the observation of investors’ pre-emption rights, recommends that listed companies intending to access this flexibility must fully explain the particular circumstances of the companies, including how the companies are supporting their stakeholders. "Alongside the issuance information, these companies are also expected to disclose the shareholder consultations undertaken prior to the issuance and efforts made to respect pre-emptive rights," the SC said. The SC said its 2021 policy evaluation also revealed that the Malaysian advisory market for GMPPs was concentrated among four PAs in 2020. "These four PAs accounted for 71% of all GMPPs announced in 2020 and 52% (RM2.6 billion) of the total value announced," the SC said. In 2020, 126 PLCs in Malaysia announced 133 GMPPs involving a new securities placement value of RM5 billion, according to the SC. The SC, however, did not specify the names of the four PAs besides the 2021 GMPP-related figures in Malaysia. Read more stories from the SC Annual Report 2021 here.

https://theedgemalaysia.com/node/667802

Anwar: Govt committed to spurring foreign, domestic investments

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KUALA LUMPUR (May 19): The government is committed to improving and strengthening Malaysia’s economic and investment landscape in order to retain and expand both foreign direct investment (FDI) and domestic direct investment (DDI), said Prime Minister Datuk Seri Anwar Ibrahim. The prime minister said the National Investment Council (MPN) has agreed to improve the ecosystem of the country’s Investment Promotion Agency (IPA) by implementing an initiative, which, among others, will streamline the functions and roles of the economic regions with regard to investments. “This step is very important to ensure a comprehensive approach that is more orderly and efficient. This will also ensure that Malaysia can optimise its available resources and overcome the overlapping functions within the IPA, ensuring efficient services by the IPA. “The governance of IPA is an important factor for investors to make their investment decision in Malaysia,” he said in a statement issued by the Prime Minister’s Department after the prime minister chaired the MPN’s first meeting following its announcement in Budget 2023 on Feb 24. Permanent members of the council comprise the finance minister, minister of investment, trade and industry, minister of economy, governor of Bank Negara Malaysia, and the chief secretary of the Ministry of Finance. MPN is functioning as the highest executive body in the country’s investment agenda and activity, and is responsible for overcoming obstacles in the implementation of projects. “In an effort to coordinate investment promotion activities more effectively and increase IPA's capabilities in terms of strategic priorities, functions, human resources, organisational characteristics and governance policies, the reorganisation of the national IPA ecosystem will begin with a phased coordination plan for IPA's functions and roles,” Anwar said. Accordingly, MPN also agreed to empower the Malaysian Investment Development Authority (Mida) as the country's main investment promotion agency, he added. According to Anwar, the strengthening of account maintenance and monitoring functions by IPA, as well as the centralisation of the latest investment information reporting under a single platform or dashboard, will also deal with investor issues in an agile manner as well as support the formulation of policies for industry development, investment incentives, and effective investment facilitation. “This aim is in line with the strategic core under the New Investment Policy (NIP) based on the National Investment Aspiration (NIA) which underlines the need to re-evaluate the country's IPA landscape to be more planned while facilitating the investor's journey," he added. This first MPN meeting also discussed the monitoring of investment projects, particularly the potential investment results through the Trade and Investment Promotion Mission programme led by Anwar and the Minister of Investment, Trade and Industry. The total investment approved in various economic sectors for the first quarter (1Q) of 2023 is RM71.4 billion, which is a 59.7% increase compared to 1Q2022 (RM44.7 billion), encompassing 1,265 projects that have the potential to generate nearly 24,000 jobs for Malaysians. The MPN is scheduled to meet at least four times a year so that each investment initiative and programme can be monitored and its effectiveness evaluated. "The government is committed to ensuring that every approved investment will be implemented, and will subsequently have a positive impact on the country's economic growth. “The government is confident that the policies and strategies that have been enacted will strengthen the investment ecosystem and boost investment activities to continue driving the country's economic growth and return the country's position as a major investment destination in the region,” Anwar added.

https://theedgemalaysia.com/node/622194

MRCB 1Q profit jumps 170%, lifted by LRT3 and property projects

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KUALA LUMPUR (May 31): Malaysian Resources Corp Bhd (MRCB) said its first quarter (1Q) net profit soared 170% to RM14.03 million from RM5.2 million a year ago, helped by the full consolidation of the Light Rail Transit 3 (LRT3) project. The better showing was also due to higher contributions from two of the group's largest property development projects, Sentral Suites and TRIA 9 Seputeh, the group said in a filing. Earnings per share for the quarter ended March 31, 2022 grew to 0.31 sen from 0.12 sen in the same quarter last year. Quarterly revenue surged 258% to RM810.71 million from RM226.71 million previously. MRCB said its operating profit increased to RM52.33 million from RM14.87 million, mainly derived from the LRT3 project which reached physical construction progress of 71% and financial progress of 63% at the end of March. "Additional contributions also came from the sale of completed unsold inventory and ongoing property development projects, namely Sentral Suites in KL Sentral, the 9 Seputeh mixed residential developments in Jalan Klang Lama and Alstonia in Bukit Rahman Putra, Sungai Buloh. "The group's 27.94% equity owned Sentral REIT and associated company Sentral REIT Management Sdn Bhd contributed a combined profit after tax of RM3.9 million to the group compared with RM4.3 million in the financial quarter ended March 31, 2021," the group said. Looking ahead, MRCB said its immediate priorities in 2022 remain on enhancing cash flow by monetising its inventory of unsold completed stock, which stood at RM349.7 million on March 31. The group is also targeting improved sales from foreign buyers with the opening of borders, particularly for the VIVO 9 Seputeh development and St Regis units. MRCB said it is also looking forward to continuing to tender for large infrastructure projects such as the upcoming Mass Rapid Transit 3 project. MRCB shares ended up one sen or 2.86% higher at 36 sen on Tuesday (May 31), valuing the group at RM1.59 billion.

https://theedgemalaysia.com/node/614232

兴业：达洋放眼恢复上涨趋势

Mandarin

（吉隆坡30日讯）兴业零售研究表示，达洋企业（Dayang Enterprise Holdings Bhd）放眼恢复上升趋势，因为该股昨天进行了盘中反弹——暂停了最近的回调。 该研究机构称，如果该股成功突破92.5仙即时阻力位，多头可能会将该股推向1.03令吉阻力位，然后是1.12令吉。 “然而，如果跌破85.5仙（低于21天平均线），势头可能会失去动力。”   （编译：魏素雯）   English version：Dayang eyeing to resume its uptrend, says RHB Retail Research

https://theedgemalaysia.com/node/668576

Russia summons Germany, Sweden, Denmark envoys over 'stalled' Nord Stream investigation

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MOSCOW (May 25): Russia's Foreign Ministry said on Thursday that it had summoned the ambassadors of Germany, Sweden and Denmark to protest over what it said was the "complete lack of results" in an investigation to identify who blew up the Nord Stream gas pipelines last year. Several unexplained underwater explosions ruptured the Nord Stream 1 and newly-built Nord Stream 2 pipelines that link Russia and Germany across the Baltic Sea, in September 2022. The blasts occurred in the economic zones of Sweden and Denmark and both countries say the explosions were deliberate, but have yet to determine who was responsible. The two countries and Germany are investigating the incident. Russia's Foreign Ministry in a statement accused all three of deliberately dragging their feet and of trying to conceal who was behind the blasts. The ministry said it was unhappy about what it called the opaque nature of the investigation and its refusal to engage with Russia. "It has been noted that these countries are not interested in establishing the true circumstances of this sabotage. On the contrary, they are delaying their efforts and trying to conceal the tracks and the true perpetrators of the crime behind which we believe are well-known countries," it said. "It is no coincidence that 'leaked' improbable versions (of what happened) are dumped in the media to try to muddy the waters," it added. The United States and the North Atlantic Treaty Organization (Nato) have called the incident "an act of sabotage". Moscow has blamed the West. Neither side has provided evidence. Russia's Foreign Ministry said that Moscow would keep trying to ensure that Germany, Sweden and Denmark conduct what the ministry calls an objective investigation, with Russia participating too.

https://theedgemalaysia.com/node/676961

Court: Despite ‘damning evidence’, Apandi stamped ‘NFA’ on Bank Negara’s investigation papers

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This article first appeared in The Edge Malaysia Weekly on July 31, 2023 - August 6, 2023 AS early as 2015, Bank Negara Malaysia had collected overwhelming evidence of criminal activity by 1Malaysia Development Bhd and its senior officers. Yet, former attorney-general (AG) Tan Sri Apandi Ali’s refusal to charge any of them was puzzling, given the wealth of evidence stacked up against the offenders. Former central bank governor Tan Sri Zeti Akhtar Aziz expressed the frustration when she testified last week at the 1MDB-Tanore trial of former prime minister Datuk Seri Najib Razak. “Despite all the damning evidence gathered and recorded by Bank Negara in the IP (investigation paper on 1MDB), which was submitted, the then AG, for reasons unknown, had on Sept 11, 2015 decided that the IP submitted by Bank Negara was to be classified as ‘No Further Action’ (NFA),” she revealed. Charges were only preferred in 2018. On the stand, Zeti recounted the central bank’s efforts “to preserve the integrity of the functioning of the country’s financial system” following confidential tip-offs, the work by an inter-agency task force and its efforts to reach out to the Attorney-General’s Chambers (AGC) to press criminal charges against the state-owned strategic development company’s personnel. Zeti said Bank Negara had even appealed to the AGC under Apandi to act, but it fell on deaf ears. Bank Negara’s investigations concerning 1MDB first centred around the US$700 million of 1MDB funds that had ended up with notorious fugitive financier Low Taek Jho’s (Jho Low) Good Star Ltd (GSL), instead of the joint-venture company set up between 1MDB and PetroSaudi International Ltd (PSI). From that first confidential tip-off, the investigations then grew to encompass 1MDB’s overseas remittances from September 2009 to May 2011. After the tip-off regarding GSL, Zeti met with then inspector-general of police Tan Sri Khalid Abu Bakar on March 19 to convey what Bank Negara had learnt. Within days of the tip-off, the central bank had also conducted on-site examinations on AmBank and Deutsche Bank Malaysia Bhd regarding the US$700 million of 1MDB funds. Following the on-site findings that the money was indeed transferred to GSL instead of the joint-venture company as intended, Zeti met with then auditor-general Tan Sri Ambrin Buang on March 23, and subsequently on April 21 with Tan Sri Abu Kassim Mohamed, who was then Malaysian Anti-Corruption Commission (MACC) chief, to inform the top government officials of Bank Negara’s on-site findings. The central bank had also conveyed the same information in letter form to Ambrin and Kassim. Between these meetings, Bank Negara received another tip-off from a foreign authority confirming the remittance to GSL and the beneficiary’s identity. Zeti added that Kassim requested that the information be shared with then AG Tan Sri Abdul Gani Patail. Abdul Gani subsequently called for meetings of a task force in June 2015 to coordinate investigations on 1MDB by the police, MACC and Bank Negara. However, this inter-agency task force was scrapped on July 27, 2015, when Abdul Gani was terminated by Najib as the AG. “There were no longer any task force meetings ... convened by the new AG, Tan Sri Apandi Ali. On Aug 5, 2015, [Abu Kassim] issued a statement which stated that he had been advised by the AG that the task force was now no longer needed. Each investigating [agency] could conduct its investigations based on its own respective laws,” Zeti testified. Amid this, in May 2015, Bank Negara also started its own investigations — under the Financial Services Act 2013 — against 1MDB for its applications for permission from Bank Negara to make payments outside the country in September 2009, September 2010 and May 2011. Following its investigations, the central bank submitted an IP to the AGC, recommending that senior 1MDB officers be charged. “The entity and its officers were found to have contravened the provision under the Exchange Control Act 1953 (ECA) for furnishing false information to Bank Negara in the 1MDB application for permission to make payments outside Malaysia,” she said. Instead, the AGC classified the IP submitted by Bank Negara as “No Further Action”. But the central bank did not give up and wrote to the AGC a few weeks later, in October 2015, to reconsider the decision. The statutory body had stressed to the AGC that 1MDB had omitted material information in its application for the foreign exchange administration (FEA) permission. “1MDB had not only failed to provide full and complete information in its applications for the FEA permission but had provided false information,” Zeti testified. The AGC did not reply to Bank Negara’s appeal and, subsequently, in August 2015, the central bank revoked the three permissions granted to 1MDB and instructed 1MDB to repatriate all funds that were “illegally and falsely remitted abroad”. The company failed to do so and a compound of RM15 million was issued, which 1MDB paid in May 2016.    Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's App Store and Android's Google Play.

https://theedgemalaysia.com/node/673155

Citaglobal appoints former MDEC CEO Yasmin Mahmood as non-exec director

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KUALA LUMPUR (June 30): Citaglobal Bhd has appointed former Malaysia Digital Economy Corp Sdn Bhd (MDEC) chief executive officer Datuk Yasmin Mahmood as the group’s independent non-executive director, effective Saturday (July 1). Yasmin, 60, is currently a board member of MIDF Bhd, UMW Holdings Bhd and Bintulu Ports Holdings Bhd, according to Citaglobal’s filing with Bursa Malaysia on Friday. Citaglobal, a civil engineering and construction group, is 39% controlled by its executive chairman and president Tan Sri Mohamad Norza Zakaria. The group is also known for having the incumbent Yang di-Pertuan Agong Al-Sultan Abdullah as one of its shareholders with an 8% stake as at June 8. Shares of Citaglobal closed unchanged at RM1.40 on Friday, giving it a market capitalisation of RM584.56 million.

https://theedgemalaysia.com/node/675391

马银行投行：令吉回升将推高云顶股价

Mandarin

（吉隆坡20日讯）马银行投资银行维持云顶（Genting Bhd）的“买入”评级，但每股盈利下调4至24%，目标价也从5.61令吉，调低至5.36令吉，因云顶马来西亚（Genting Malaysia Bhd）和云顶新加坡（Genting Singapore Plc）的复苏慢于预期。 分析员Samuel Yin Shao Yang周三在报告中指出，令吉贬至4.68的近期低位后，已回升至4.54，因美国通胀降温，缓和美国联储局（FED）进一步加息的压力。 他表示，由于云顶的外资持股比例很高，因此令吉兑美元汇率与云顶估值的溢价（或折价）之间存在高度相关性。 “我们注意到，当令吉升值或贬值时，外资往往会买入或脱售云顶。” 他估计，云顶目前的交易价格比估值低65%。 “我们的内部观点是，令吉将在2024财年末回升至4.15，因美联储称2023财年结束后不再进一步提高利率，而2023财年将再升息50个基点。” “因此，综合各种可能性，我们认为云顶的股价相对于估值的折价可能会收窄。” 截稿时，云顶微升0.48%或2仙，挂4.22令吉，交投量有97万800股。   （编译：陈慧珊）   English version：Recovery of ringgit to prop Genting Bhd’s shares higher, Maybank IB says

https://theedgemalaysia.com/node/617549

TDM, Teck Guan, Techna-X, Bonia, CAM, Golden Land, HeveaBoard, Keck Seng, Matang, Plenitude, Sarawak Plantation

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KUALA LUMPUR (April 25): theedgemarkets.com highlighted 11 stocks with momentum at Bursa Malaysia’s afternoon close on Monday (April 25). Three stocks displayed positive momentum, while eight showed negative momentum. The stocks with positive momentum were: TDM Bhd — up two sen at 32 sen Teck Guan Perdana Bhd — up 10 sen at RM2.12 Techna-X Bhd — up half a sen at 11 sen The stocks with negative momentum were: Bonia Corp Bhd — up 12 sen at RM2.35 CAM Resources Bhd — up half a sen at 37 sen Golden Land Bhd — up four sen at 52 sen HeveaBoard Bhd — down one sen at 56.5 sen Keck Seng (Malaysia) Bhd — up five sen at RM3.91 Matang Bhd — up one sen at 12.5 sen Plenitude Bhd — down six sen at RM1.03 Sarawak Plantation Bhd — up 16 sen at RM3.10 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/607482

油价继续飙升 提振马股高开

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（吉隆坡15日讯）交易商表示，尽管华尔街及区域股市疲软，但油价继续飙升，提振马股今早高开。 富时隆综指今早以1585.96点报开，小涨2.12点。截至早上9时10分，富时隆综指上升4.84点，至1588.68点，昨日收报1583.84点。 上升股241只，下跌股133只，269只无起落，1569只无交易及10只暂停交易。 总成交量为2亿2330万股，总值1亿1613万令吉。 乐天交易私人有限公司股票研究部副总裁唐柏麟表示，尽管区域股市疲软，但马股连续第五天上涨。 “目前，马股处于超买状态，因此，我们可能很快就会看到一些套利活动。” 他告诉马新社：“我们估计，富时隆综指今日将游走于1575点至1590点之间。” 重量级股项齐力工业（Press Metal）和森那美种植（Sime Darby Plantation）各涨9仙，分别报6.79令吉和4.33令吉，IHH医疗保健（IHH Healthcare）升7仙，至6.57令吉，以及PPB集团（PPB Group）扬30仙，报16.90令吉。 热门股方面，沙布拉能源（Sapura Energy）持平于4.5仙，迪耐（Dagang NeXchange）涨2仙，至1.17令吉，艺丽控股（AHB）增1.5仙，报23仙，以及科恩马（KNM）起0.5仙，至18.5仙。   （编译：魏素雯）   English version：Bursa Malaysia higher in early trade

https://theedgemalaysia.com/node/651441

Goldman job cuts begin with investment banking, global markets hit hard — source

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LONDON/HONG KONG/NEW YORK (Jan 11): Goldman Sachs began laying off staff on Wednesday in a sweeping cost-cutting drive, with around a third of those affected coming from the investment banking and global markets division, a source familiar with the matter said. The long-expected jobs cull at the Wall Street titan, expected to represent the biggest contraction in headcount since the financial crisis, is likely to affect most of the bank's major divisions, with its investment banking arm facing the deepest cuts, a source told Reuters this month. Just over 3,000 employees will be let go, the source, who could not be named, said on Jan 9. A separate source confirmed on Wednesday that cuts had started. The layoffs began in Asia on Wednesday, where Goldman completed cutting back its private wealth management business and let go of 16 private banking staff across its Hong Kong, Singapore and China offices, a source with knowledge of the matter said. About eight staff were also laid off in Goldman's research department in Hong Kong, the source added, with layoffs ongoing in the investment banking and other divisions. At Goldman's central London hub, rainfall lessened the prospect of staff huddles. Several security personnel actively patrolled the building’s entrance, but few people were entering or leaving the property. A glimpse into the bank’s recreational area just beyond its lobby showed a handful of staffers in deep conversation but few signs of drama. Wine bars and eateries local to the office were also short of post-lunch trade, in stark contrast to large-scale layoffs of the past when unlucky staffers would typically gather to console one another and plan their next career moves. In New York, employees were seen streaming into headquarters during the morning rush. Goldman's redundancy plans will be followed by a broader spending review of corporate travel and expenses, the Financial Times reported on Wednesday, as the US bank counts the costs of a massive slowdown in corporate dealmaking and a slump in capital markets activity since the war in Ukraine. Goldman Sachs declined to comment. Goldman had 49,100 employees at the end of the third quarter, after adding significant numbers of staff during the coronavirus pandemic. The company is also cutting its annual bonus payments this year to reflect depressed market conditions, with payouts expected to fall about 40%. Global investment banking fees nearly halved in 2022, to US$77 billion earned by the banks, down from US$132.3 billion a year earlier, Dealogic data showed. Banks struck US$517 billion worth of equity capital markets (ECM) transactions by late December 2022, the lowest level since the early 2000s and a 66% drop from 2021's bonanza, based on Dealogic data.

https://theedgemalaysia.com/node/643034

Global population expected to hit eight billion by Nov 15, and 9.7 billion by 2050

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KUALA LUMPUR (Nov 8): As the earth’s population inches towards hitting the eight billion mark next week, overconsumption of the planet's resources by the wealthiest is a major concern. The eight billion milestone is expected to be reached on Nov 15. The Associated Foreign Press (AFP) on Monday (Nov 7) quoted Joel Cohen of Rockefeller University's Laboratory of Populations as saying that the question of how many people Earth can support has two sides — natural limits and human choices. "We are stupid. We lack foresight. We are greedy. We don't use the information we have. That's where the choices and the problems lie," said Cohen. However, he rejected the idea that humans are a curse on the planet, saying people should be given better choices. Meanwhile, AFP said that according to the Global Footprint Network (GFW) and World Wildlife Fund (WWF), if everyone on the planet lives like a citizen of India, the world would only need the capacity of 0.8 Earth a year. The GFW and WWF estimated that a biocapacity of 1.75 Earths is required to sustainably meet the needs of the current population. If everyone consumes like a resident of the US, people would need five Earths a year instead. The United Nations, meanwhile, estimated that the planet will be home to 9.7 billion people by 2050.

https://theedgemalaysia.com/node/640706

EC fixes Nov 19 for GE15

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PUTRAJAYA (Oct 20): The Election Commission (EC) has announced that polling for the 15th general election (GE15) will be held on Nov 19, which is a Saturday, while the nomination date falls on Nov 5, which allows for two weeks of campaigning. During a press conference at Menara SPR on Thursday (Oct 20), EC chairman Tan Sri Abdul Ghani Salleh also announced that the writ issuance falls on Thursday (Oct 20), while early voting will be held on Nov 15 (Tuesday). Meanwhile, he said the state by-election for Bugaya in Sabah, which was left vacant following the death of its incumbent Datin Manis Muka Mohd Darah on Nov 17, 2020, will be conducted simultaneously with the GE15.  Abdul Ghani added that the closing dates for early voting applications are Oct 23 for Malaysians residing overseas, Oct 26 for agencies and organisations, and Nov 2 for media, army, police force and election officials. A total of 21.17 million people are eligible to vote in the GE15, with 363,515 officers appointed to handle the general election and the Bugaya by-election, he stated.  “A total of 8,958 ordinary polling stations containing 38,348 voting stations/channels, and 578 early voting stations containing 970 voting stations/channels, will be used. The total number of polling stations is 9,536, with 39,318 polling stations/channels,” he said. He added that the GE15 and the Bugaya by-election are estimated to cost RM1.01 billion. The GE15 was set in motion after the EC received the notice of dissolution of the Dewan Rakyat from the Speaker on Oct 11.  The commission also received notices of dissolution of the state assemblies of Pahang and Perlis on Oct 14, and subsequently Perak on Oct 15. The GE15 will see the highest number of state assemblies not dissolved concurrently — 10 in total.  They include three Perikatan Nasional coalition-led states, namely Kelantan, Terengganu, and Kedah, as well as three Pakatan Harapan-led states, namely Penang, Negeri Sembilan, and Selangor. Four other states have held their state elections after the GE14, namely Melaka, Johor, Sarawak and Sabah. A total of 222 parliamentary seats will be contested in the GE15, as well as 42 state seats in Pahang, 15 state seats in Perlis, and 59 state seats in Perak.  Political parties DAP and PKR under the Pakatan Harapan coalition, and the Gerakan Tanah Air coalition will announce their lists of candidates next week.  For more GE15 stories, click here.

https://theedgemalaysia.com/node/670048

Ukraine blames Russia for dam blast that risks flooding war zone

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(June 6): Ukraine said Russian forces have blown up a giant dam in the country’s south, unleashing a torrent of floodwater that threatens residents and complicates the battlefield separating their two armies along the Dnipro river. The blast at the Kakhovska hydroelectric power plant is causing a rise in water levels that puts ten villages on the western bank of the Dnipro and a part of the city of Kherson at risk of flooding, the Ukrainian Interior Ministry said on Telegram, urging people to prepare for evacuation.  More than 80 settlements and Kherson city lie within the flood zone “which could lead to hundreds of thousands of victims”, Ukrainian Deputy Infrastructure Minister Mustafa Nayyem said on Twitter. The hydro power station built in 1956 provides electricity to more than three million people and is a “crucial part of the country’s energy infrastructure,” he said. As of 7.30am in Ukraine, eight villages and a district of Kherson were flooded or partially flooded and some 16,000 people in the region are in a “critical zone”, governor Oleksandr Prokudin said in a video on his Telegram channel. The first train evacuating people from the area will leave at noon, he said.  The Zaporizhzhia nuclear power plant in the south of Ukraine, which has been occupied by Russian forces for more than a year, uses water from the Kakhovska reservoir for cooling its reactors. The situation at the plant is under control now and the cooling reservoir is full, Ukraine’s nuclear power operator Energoatom said on Telegram. President Volodymyr Zelenskiy summoned an urgent meeting of Ukraine’s national security and defence council. He blamed the attack on Russia, saying on Telegram that the destruction of the dam “only confirms for the whole world that they must be expelled from every corner of Ukrainian land”. Wheat futures soared as much as 3% in Chicago as traders assessed the implications. The dam’s destruction “looks like a big escalation with dire consequences and huge headline risk,” Andrey Sizov, managing director at agricultural consultant SovEcon, said in a tweet. Russia hasn’t commented on the incident officially so far. After being forced to withdraw from the city of Kherson in November, its forces are dug in on the opposite side of the Dnipro river as Moscow braces for an Ukrainian counteroffensive aiming to reclaim territory that was occupied early in president Vladimir Putin’s February 2022 invasion.  Ukraine has warned repeatedly in the past year that Russia may attempt to blow up the dam to try to stall its advance. Russia blew up the dam to try “to create insurmountable obstacles” for the Ukrainian military, Mykhailo Podolyak, an advisor to Ukrainian presidential office said on Twitter. “Colossal damage will be done to the environment.” The scale of the damage, changes in water levels and areas in danger of flooding were being evaluated early Tuesday (June 6), the southern military command of the Ukrainian Armed Forces said on Facebook.

https://theedgemalaysia.com/node/678161

Sentral REIT's 2Q net property income up 4.55%

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KUALA LUMPUR (Aug 10): Sentral REIT's net property income for the second quarter ended June 30, 2023 (2QFY2023) grew 4.55% to RM29.21 million from RM27.94 million a year earlier.  In a filing to Bursa Malaysia on Thursday (Aug 10), the group reported that property operating expenses for the second quarter of 2023 (2Q2023) were RM9 million, marking a 4.8% increase from 2Q2022, due to higher utilities expenses for certain properties within the portfolio  The group also noted that despite a higher net property income contribution, the quarter experienced lower realised income primarily due to elevated finance costs and utilities expenses.  Quarterly revenue was up by 4.59% to RM38.19 million from RM36.51 million a year earlier, driven by higher revenue generated from Menara Shell and Platinum Sentral, partially offset by the decrease in revenue from Wisma Technip and QB2.  The real estate investment trust (REIT) declared an interim income distribution of 3.19 sen per unit, which will be paid on Sept 18, translating into a yield of 7.83% based on the group’s closing price of 81.5 sen on June 30, 2023.  For the first half of 2023, the company recorded net property income of RM58.49 million against RM58.45 million a year prior, while revenue for the same period stood at RM75.67 million from RM75.27 million.  Approximately 74,000 sq ft or 98% of the group's committed net lettable area (NLA) due in 1H2023 were successfully renewed.  Correspondingly, Sentral REIT also recorded a portfolio occupancy rate of 77% in 2Q2023, similar to the portfolio occupancy recorded in the previous quarter.  On prospects, Sentral REIT said the Klang Valley office and retail markets are expected to remain challenging.  “Sentral will continue to focus on asset management and leasing strategies that are centred on cost optimisation and tenant retention in the current operating environment,” it said.  Sentral REIT said efforts will be intensified to market the available office spaces under the portfolio with a focus on bringing in new tenants from the IT, e-commerce, serviced office and shared services sectors.  Sentral REIT units traded unchanged at 84.5 sen, valuing it at some RM905 million. 

https://theedgemalaysia.com/node/625916

新冠肺炎：新增确诊1894宗

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新冠肺炎：新增确诊1894宗

https://theedgemalaysia.com/node/644155

Tropicana Corp launches Hana Residences @ Tropicana Aman

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KUALA LUMPUR (Nov 15): Tropicana Corp Bhd has unveiled the final villa series of its 863-acre township development Tropicana Aman, Kota Kemuning. Dubbed Hana Residences, the series offers 130 two- to three-storey bungalows and two-storey semi-detached houses. They have lot sizes ranging from 45ft by 80ft to 80ft by 100ft and unit built-ups from 4,004 to 9,052 sq ft. They are priced from RM2.34 million. Hana Residences is slated for completion in the third quarter of 2025 and has a total gross development value of RM403 million. "We named it Hana Residences for the range of meanings of the word 'Hana', from 'flower' in Japanese to 'happiness' and 'bliss' in Arabic. It was developed along three design principles, namely Hearth, Habitat and Haven, addressing the pillars of home, surroundings and amenities," said Tropicana Corp deputy chief executive officer Joanne Lee in a press statement on Tuesday (Nov 15). She explained that Hearth, Habitat and Haven express Tropicana's unique development DNA within Hana Residences, whereby the first pillar, Hearth, addresses design features such as north/south orientations for passive cooling, as well as double volume ceilings in dining and living spaces. In addition, smart home features deliver convenience for owners and residents. Meanwhile, the pillar of Habitat governs Hana Residences' surroundings, complete with conducive amenities such as a Linear Park, Central Garden, pocket parks and more, enhanced by multi-tiered security for peace of mind. Finally, Haven incorporates the myriad pull factors of the surrounding Tropicana Aman township, which is designed as a serene, self-sustaining walking and biking community, fostering active and sustainable lifestyles while reducing carbon footprints across the board. In addition, a recreational hub and two educational institutions nearby, namely Tenby International School and SJKC Bukit Fraser, cater for the growing needs of the community. "As Tropicana Aman's final landed residential offering, we sought to differentiate Hana Residences by sitting it on elevated ground as a private enclave overlooking the surrounding township, in line with our core mantra of Redefining the Art of Living," said Lee.  Bespoke home personalisation services for the development are also available through Tropicana Corp's T.Living programme. T.Living allows Hana Residences owners to customise their property with "Bella", a darker theme for stylish, sophisticated aesthetics and a modern palette, or "Charisma", a lighter theme for soothing colours and a sense of tranquillity and harmony. Purchasers can further tailor their homes with T.Living's other packages such as "Protection", which caters for resident security; "Smart" for smart home; "Comfort" for cooling; and "Eco" for sustainability needs.

https://theedgemalaysia.com/node/615446

获国行放行洽购MIDF 马建屋涨达6.25%

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（吉隆坡7日讯）马建屋（Malaysia Building Society Bhd）今日一度上涨4仙或6.25%，至68仙，此前获得国家银行批准展开洽谈，向国民投资机构（PNB）收购马来西亚工业发展金融有限公司（MIDF）。 闭市时，马建屋报65.5仙，仍起1.5仙或2.34%。市值达45亿9000万令吉。 该股交投冠全场，达1亿1749万股易手。 今年来，该股扬升了21.3%。 马建屋昨日向大马交易所报备，国行在志期4月6日的信函中指出，不反对马建屋与国投洽谈，探讨收购MIDF 100%股权的可能性。 MIDF是一家多元化的集团金融服务公司，三大核心业务为投资银行、资产管理和发展金融。 由雇员公积金局（EPF）持有65.39%的马建屋，截至2月28日在全国有47家分行。 马建屋于2017年11月以6亿4495万令吉收购亚洲金融银行（Asian Finance Bank Bhd），并通过品牌重塑活动将后者更名为马建屋银行（MBSB Bank）。   （编译：陈慧珊）   English version：MBSB climbs as much as 6.25% amid active trades after getting BNM green light to start MIDF buyout talks

https://theedgemalaysia.com/node/652576

Circular Economy: Offering an alternative to fossil fuels

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This article first appeared in The Edge Malaysia Weekly on January 23, 2023 - January 29, 2023 A unique characteristic of oil is that it never loses its properties. Used engine oil, for instance, can be transformed into fuel oil to power boilers in factories. The flip side of this quality is that when used oil is dumped, it becomes a dangerous pollutant that does not go away. The 2019 Kim Kim River pollution incident, which affected over 6,000 people, was due to the illegal dumping of marine oil. Waste oil is considered a scheduled waste and requires proper disposal. “There was an incident once where someone dumped collected waste oil into the sewage system. Sewage has gas, so this one now has oil on top of it. There’s the potential for the whole thing to blow up. Can you imagine that gory scenario? We were called to provide a solution to this,” says Oon Kin Seng, group executive director of Pentas Flora Sdn Bhd, a company that specialises in hazardous waste management. Pentas Flora, which is a member of the Exsim group of companies, was founded in 2007. One of its main services is collecting used engine oil and other related substances from waste generators such as motor vehicle service centres. It then treats the waste oil and turns it into fuel and base oil for the premix, food, laundry and lubricant blending industries. Many of these industries consume huge amounts of energy for heating. Instead of using virgin oil or fossil fuels like natural gas, they use the re-refined oil produced by Pentas Flora. “The road builders, for instance, need to heat bitumen to liquefy it. They put it in boilers, which need to be heated up. That’s where my oil comes in. The same thing [goes] for laundry facilities that need energy to heat big vats of hot water,” says Oon. “This could have a lower carbon footprint. Why? Because it is recycled fuel. Diesel (which many industries use) is virgin oil that is mined and extracted. Oil never loses its properties. You must know how to segregate the dirty oil and eliminate the metal shavings, moisture and dirty stuff to get oil, which is then mixed through our formulas to become fuel oil.” Oon has not yet calculated how much emissions can be reduced by companies using re-refined oil. However, he emphasises that the appeal for their clients is more than just lowering emissions. It is to save money. “If you use fresh oil from the ground, it’s more expensive than what we have. I am taking away the oil that, in the old days, would be dumped into the longkang [drain]. But today, there’s money in this longkang oil,” says Oon. Many industries now use diesel or natural gas to generate energy for heating processes. But the prices of these resources are high, especially after the Russian invasion of Ukraine last year. The most competitive re-refined oil products by Pentas Flora could be almost 40 times cheaper, according to Oon. The demand for recycled oil has increased over the years due to the focus on sustainability, he acknowledges. “I would say in the last 10 years, the awareness and desire to do more [on sustainability] have gained traction. It helps when we go to companies and tell them about this. But at the end of the day, it’s still about ringgit and sen for a lot of them.” Pentas Flora also handles scheduled waste from other industries, including glove and shipping companies. It can deal with maritime waste, whether it is de-slopping or desludging. All the waste oil that is collected goes to its plant in Banting, Selangor, for treatment. There is a fully accredited lab on site to test the waste and fuel oil that enter and exit the plant. “Eight years ago, we put in around RM5 million to invest in the lab. In the waste management business, we are the only ones who have invested in a lab. Why? Because we want to make sure that the waste oil that we buy has more dirty oil than water or chemicals,” says Oon. The end product is also tested before it is sold to customers for quality assurance. “We have a certificate of analysis that tells [clients] what is in the product.” The focus on quality, however, also means its cost may be higher than its competitors who do not have the same standards. According to Oon, the company invested over RM100 million in the machines to treat the waste oil, blend it according to the customers’ needs and certify that the end product is authentic through lab tests. “It’s all a question of money. Some people just put a piece of cloth over a drum and pour the dirty oil over the cloth. Then they remove the stuff above and process the oil,” says Oon. The quality of this “recycled” oil is untested, he adds, and in the long run, using this kind of oil could damage factory equipment. Pentas Flora is determined to do things the right way, Oon emphasises. This includes using its own tanker trucks to collect dirty oil from waste generators, which is required by law. Irresponsible waste management operators that do not adhere to these rules or standards can offer more competitive rates to buy waste oil. This is a challenge for Pentas Flora. “We put our money where our mouth is. If [our product] doesn’t work, we will send you a replacement. If we don’t have enough oil, we even send them diesel. The brand promise that we have is very important,” says Oon. Another challenge that the company is juggling with is the cost of running the plant. Treating the waste oil requires huge amounts of energy. At first, the company used its own re-refined oil to do so. “But five years ago, we found out that it made more financial sense for me to sell off the recovered fuel oil than to burn it myself,” says Oon. The company then began using natural gas to power its processes. But the high gas prices are a problem. “We are now looking at the efficiency of the machines. While I like to be ESG compliant [and use my own recovered fuel oil], I need to balance my costs. Do I want to spend so much on gas? No, but I’ve got long-term clients and not enough oil to supply them,” he says. To prevent further instances of illegal waste oil dumping, Oon regularly engages with the Department of Environment. One way of identifying players that are not properly treating the waste oil is by looking at their electricity bills, because the process requires huge amounts of energy, he says. It is one of his suggestions to help the authorities catch bad players. He is also eager to expand the company’s capabilities to manage other types of hazardous waste, namely electronic waste, batteries and clinical waste. “People are talking about clean energy. That requires batteries. But where does it go [after it is used]? It needs to be stripped down. There is mercury, silver and acidic water inside,” he says. As the amount of waste continues to increase alongside rising awareness about the value of recycling waste, waste management operators have a lot of work to do. “Essentially, if you are concerned about this planet, somebody has got to do this. Waste management is not a cheap business,” 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/643064

投资者保持谨慎 马股休盘下跌

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（吉隆坡8日讯）在美国本周稍后公布通胀数据前，投资者保持谨慎，马股休盘下跌。 休市时，富时隆综指跌5.48点，至1436.64点。 综指开盘报1447.12点，较昨日闭市的1442.12点，上升5点。盘中游走于1435.48点和1447.85点之间。 下跌股391只、上升股273只，另有386只无起落、1265只无交易，以及9只暂停交易。 成交量14亿9000万股，值7亿1910万令吉。 马六甲证券今日在报告中指出，美国通胀数据可能会给摇摇欲坠的股市增添风险，而本地股市可能会因中国重开憧憬而欢呼。 “尽管如此，随着第15届全国大选临近，大选概念股可能在短期内成为焦点。” “此外，投资者可能会在财报季之前青睐前景乐观的股票，如消费和油气股。” 该证券行表示，由于大宗商品价格走强，能源和种植股可能保持上行趋势。 重量级股中，国家能源（Tenaga Nasional Bhd）跌21仙，报8.29令吉、PPB集团（PPB Group Bhd）降66仙，至16令吉、明讯（Maxis Bhd）挫11仙，挂3.78令吉，而马银行（Malayan Banking Bhd）扬3仙，报8.51令吉，以及大众银行（Public Bank Bhd）持平于4.35令吉。 至于热门股，Advance Synergy Bhd涨0.5仙，至9.5仙、顶级手套（Top Glove Corp Bhd）增1.5仙，挂80.5仙、登高集团（Tanco Holdings Bhd）减8仙，报36仙、婆罗洲石油（Borneo Oil Bhd）和Zen Tech International Bhd分别平盘挂于2仙和3仙。   （编译：陈慧珊）   English version：Bursa ends morning session lower

https://theedgemalaysia.com/node/666377

Solar stocks tepid following govt's plan to lift RE export ban

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KUALA LUMPUR (May 10): Stocks of solar energy-related companies had a lukewarm response following news of the government’s plan to lift the 18-month ban on renewable energy (RE) exports, possibly waiting on Putrajaya to settle the details. An observation of Bursa Malaysia's Wednesday (May 10) morning trade showed Solarvest Holdings Bhd rose half a sen or 0.58% to 87 sen, Cypark Resources Bhd gained two sen or 2.72% to 75.5 sen, Samaiden Group Bhd grew one sen or 1.08% to 93.5 sen, and Uzma Bhd increased half a sen or 0.83% to 61 sen.   Citaglobal Bhd was trading unchanged at RM1.44, and YTL Power International Bhd was also unchanged at RM1.10.   Meanwhile, VSolar Group Bhd slid half a sen or 50% to 0.5 sen, Pekat Group Bhd was down one sen or 2.47% to 40.5 sen, Mudajaya Group Bhd weakened half a sen or 2.56% to 19 sen, and Kejuruteraan Asastera Bhd dipped half a sen or 1.61% to 30.5 sen.   In a note on Wednesday, MIDF Research commented that the government’s plan to review the current RE export ban — in place since October 2021 — is positive, seeing that Singapore aims to import up to 4GW of clean electricity by 2035 to make up around 30% of the country’s electricity supply.   The firm said the Singapore’s Energy Market Authority (EMA) has issued another request for proposal (RFP) for 1.2GW of imports to begin in 2027, with a Dec 29 submission deadline. MIDF Research said the RFP has attracted 20 proposals from four countries, namely Malaysia, Indonesia, Laos and Thailand. The firm added that there are attractive market prices for RE. It said Singapore’s average wholesale electricity prices stood at S$0.22/kwh (RM0.74/kwh) in January, while regulated retail tariff by EMA is set at S$0.29/kwh (RM0.96/kwh).   “Again, these are predominantly represented by gas power plant capacity. Retail ‘green electricity’ plans, typically comprising solar and carbon neutral electricity, range from S$0.32-0.45/kwh (RM1.07-1.50/kwh). These compare well against Malaysia’s base tariff of RM0.39/kwh (essentially retail tariff) and LSS4 (Malaysia’s fourth round of large scale solar awards) tariff of ~RM0.20/kwh (essentially wholesale tariff),” MIDF Research said.   On its coverage of YTL Power, the research house recommended a “buy” with an unchanged target price at RM1.12 as it believes the RE export ban review paves way for the group to participate in upcoming power import tenders by the Singaporean authority.   “YTL Power has a strong advantage versus Malaysian peers, given that it is the only Malaysian company operating electricity generation and retailing in Singapore,” MIDF Research said.   It highlighted that YTL Power acquired a 664ha land in Kulai, Johor, in September 2021 to develop the land into a large-scale solar power plant with 500MW capacity powering its planned green data centre. “The provision of green data centre services to Singaporean multinational corporations provides higher value-added than outright electricity sales, in our opinion, but we believe YTL Power could consider alternatives for its planned power export to Singapore. “This includes sourcing power from third parties with Seraya (electricity producer YTL PowerSeraya Pte Ltd in Singapore) focusing mainly on retailing to reduce capital expenditure requirement, or outright acquisition of new land banks for new solar farm setups,” MIDF Research said. Read also: Govt lifts RE export ban, details yet to be ironed out

https://theedgemalaysia.com/node/650930

‘Not a given’ UK inflation will slow this year, Rishi Sunak says

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(Jan 8): UK Prime Minister Rishi Sunak said it’s “not a given” that inflation will slow this year and stressed the need for continued wage restraint in ongoing negotiations with striking sectors including the National Health Service and railways. Sunak has come under pressure over a pledge to halve inflation this year when economic forecasts from the Office for Budget Responsibility already show that the pace of price increases will slow that much without any extra help from government policy. Easing inflation “is a function of having a responsible economic policy when it comes to things like pay,” Sunak said in an interview with the BBC’s Laura Kuenssberg on Sunday. “It’s not a given that it just happens. You have to continue to be disciplined and make the right, responsible decisions.” Surging energy costs due to Russia’s war in Ukraine propelled inflation above 11% last year, setting off a cost-of-living crisis. Sunak says curbing price gains is his top priority and the reason he’s been resisting calls to accept large pay demands in the public sector as they could further stoke inflation. That position has come under increasing strain amid widespread disruption in the UK, most acutely in the NHS where a resurgence of Covid-19, the winter flu and industrial action — including the first major nurses’ strike in history — have forced hospitals across the country to declare critical incidents. Nurses have been pushing for a 19% pay rise and recently urged the government to meet them “halfway” on their demands. Sunak declined to answer a question about whether he has private health care, saying it wasn’t really relevant. The growing wait lists for NHS treatment has led to a surge in people taking out private insurance, fueling fears of a two-tier system of care that could widen inequality in the UK. Almost half a million people signed up for private services in 2022, with the biggest insurers seeing increases of as much as 20%, the Sunday Telegraph reported. Scenes of disarray in the UK’s health service are becoming an increasing political problem for Sunak, who is under pressure from members of his own Conservative Party and the wider public to fix the mess. His Tory party is more than 20 points behind the main opposition Labour party in the polls, with a general election expected next year.  Sunak hosted a “recovery forum” of health professionals and officials at Downing Street on Saturday to address issues including improving emergency treatment and speeding up social-care discharge. He left the meeting “with a renewed sense of confidence and optimism that we can get to grips with this problem,” Sunak said on Sunday. “The NHS is undeniably under enormous pressure.” Trade-union leaders from various sectors have been invited to talks on Monday in a bid to avert further strikes by NHS, rail and other workers. They want immediate pay improvement, but the government is more willing to talk about public-sector wage settlements for 2023-24. Sunak’s government has signaled it won’t sweeten the package for 2022, which is what has triggered the strikes. “We want to have a reasonable, honest, two-way conversation about pay,” Sunak said on Sunday. “We’re about to start a new pay settlement round for this year.” On inflation and his other targets for 2023 — which include growing the economy and cutting debt — Sunak has been criticised for a lack of ambition and for setting goals that will be easy to reach. The OBR, an independent fiscal watchdog, forecasts inflation will fall to 3.8% by the end of this year. “It’s a deeply conservative thing to have an economy built on low inflation and sound public finances,” Sunak said on Sunday. “Those are my priorities.”

https://theedgemalaysia.com/node/658492

Proposed Kulim International Airport not to compete with Penang, to focus on dwindling air cargo services, says Mukhriz

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KUALA LUMPUR (March 9): The proposed Kulim International Airport (KXP) “is not meant to compete with the Penang International Airport” (LTAPP), as the former is intended to cater to the air cargo for industries in the northern corridor, said Pejuang president and Kedah’s former menteri besar Datuk Seri Mukhriz Mahathir. This is opposed to the LTAPP, which focuses on passenger services, Mukhriz said in a statement. “In line with the LTAPP’s focus on passenger services, technology development such as in the fields of research, design and development must continue in Penang, with the manufacturing industries that require bigger land plots developed in states like Kedah,” Mukhriz said. In the statement, Mukhriz expressed disappointment towards the announcement by Transport Minister Anthony Loke Siew Look on the KXP and the Kedah Aerotropolis. Loke recently said the government had never received any formal application for the development of the KXP and the Kedah Aerotropolis by the interested parties. He further shared his view that the project is not viable, considering that Kedah already has an airport in Alor Setar, and another in Langkawi. In response, Mukhriz said the master plan for the Kedah Aerotropolis has been completed for years, with a proposal raised to the federal government in the last few years. “The claim that the government did not receive any proposal for this project is not true,” he said. Pointing to the industrial sectors in Kedah and Penang, Mukhriz said many factories are located in industrial zones like Bayan Lepas with intention to utilise the air cargo services in the LTAPP — but the volume has dropped, while passenger capacity was raised to 12 million per year, from 6.5 million previously. “Total cargo volume using the LTAPP in 2006 was 226,000 tonnes. In 2020, the figure dropped to 138,000 tonnes. The LTAPP has a cargo capacity of 360,000 tonnes a year,” Mukhriz said. Industries that previously used the LTAPP as a logistics hub now have to transport containers using the highway down to the Kuala Lumpur International Airport (KLIA), and some further south to Singapore’s Changi Airport, Mukhriz claimed.  “As such, the Penang state, the Kulim Hi-Tech Park, and industrial parks in the northern corridor will no longer have a point of attraction due to reduced air cargo services,” he said, adding that the added transportation cost had increased for those planning to invest in the northern corridor. The LTAPP’s upgrade, which begins this year, will not involve land acquisition but rather see the upgrade of existing terminals, the contact pier and an aerobridge. “However, past studies showed that the main problem [with the LTAPP] is that the existing passenger terminal has exceeded its designed capacity,” he added. He said the Kedah Aerotropolis project has been in planning since 2014, comprising an airport city, a business park, and the Sidam Logistics, Aerospace and Manufacturing Hub that includes aircraft maintenance, repair and overhaul services. On the KXP, Mukhriz said its four-phased development comprises two runways, as opposed to one in the LTAPP. It is envisioned to have enforcement services like customs located on-site to smoothen import-export dealings. The proposed Kedah Aerotropolis is “the solution to “the overcrowded capacity in Penang”, and the goal of advancing the northern states, especially Kedah, he added. “It is often heard, the comments by the minister of finance (Datuk Seri Anwar Ibrahim) and the minister of transport, that the government has no budget to develop the Kedah Aerotropolis. “If that is the case, funding for the project can be taken on by the private sector,” he said, adding that what is needed is the political will to move the project forward. Read also: Sanusi refutes Loke’s statement on Kedah Aerotropolis project

https://theedgemalaysia.com/node/627735

CGS-CIMB lowers target price for Westports to RM3.50

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KUALA LUMPUR (July 12): CGS-CIMB Research has maintained “hold” on Westports Holdings Bhd at RM3.61 with a lower target price (TP) of RM3.50 (from RM3.78) and said the port operator on July 8 guided that 2Q22F container volumes are likely to be 6-7% lower y-o-y, continuing the 10% y-o-y decline seen in 1Q22. In a note on July 8, the research house said it has pencilled in a 5.2% yoy fall in FY22F volumes (versus 1% growth earlier) due to reduced transhipment calls at Westports and consumer spending slowdown. The research house said on the opex side, diesel costs will likely pressure Westports too. It said diesel prices averaged US$76/bbl in FY21 but averaged US$130/bbl in 1H22F. It said spot diesel prices are circa US$150/bbl, hence the 2H22F diesel cost may average higher h-o-h and y-o-y. CGS-CIMB raised its FY22F fuel price assumption by 21%, and by 15% for FY23-24F. “We now expect FY22F diesel costs at 10% of revenue, versus 6% of revenue in FY21. “Retain 'hold'. We lower our DCF-based TP to RM3.50 due to the 10-14% EPS cuts in FY22-24F (lower volume assumptions and higher diesel costs),” it said.  

https://theedgemalaysia.com/node/625303

Govt will not interfere in chicken demand-supply dynamics, says minister

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SUBANG JAYA (June 23): The government will not interfere too much in the open market of chicken supply and demand dynamics, amid neighbouring countries looking into forging supply contracts with Singapore that could result in long-term market loss for Malaysian poultry business. Domestic Trade and Consumers Affairs Minister Datuk Seri Alexander Nanta Linggi said Malaysia’s strategic proximity to Singapore extends a more advantageous position for the country compared to other regional countries. On Monday (June 20), Reuters reported that Indonesian authorities hope to reach an agreement with Singapore to start exporting chickens within weeks as the city state scrambles to find alternative supply sources after Malaysia restricted sales. “I don’t say this is not a concern, but still this is an open market. The government will try as much as possible to leave it to the open market and not overly interfere in that.  “All along, Singapore has been importing from us and if they import from other countries, of course it will affect our export business.  "I believe we are in a better strategic position geographically, that we have by land connectivity to Singapore and the other countries are much further away,” he said in a presser after launching the 3rd Malaysia Competition Law Conference 2022 — Digital Economy, Merger and Bid Rigging in Bandar Sunway earlier on Thursday. Malaysia’s export ban on chicken is in its fourth week and Singapore is Malaysia's largest chicken importer, accounting for almost 98% of chicken supply. On June 1, the government instituted a ban on chicken exports to ensure supply for domestic consumption remains stable. However, the Agriculture and Food Industries Ministry on June 15 allowed the export of live “kampung" chicken, black chicken, all chicken-based products and day-old chicks parent stocks. “The government, together with the industry, for the sake of consumers will take whatever necessary steps to ensure there’s a balance. It's very difficult to balance the interest of the farmers, wholesalers and retail sellers because they want higher prices for better profit, which is understandable.  “But if we were to allow that to happen without certain control, we would have to deal with two different interests." He added that the public can expect investigations launched by the Malaysia Competition Commission (MyCC) into allegations of a chicken cartel to conclude as soon as the end of June. “Rest assured that whoever is involved, MyCC have their plans forward to do what needs to be done,” he told reporters. His ministry had also announced the removal of ceiling prices for chicken, chicken eggs and cooking oil in bottles of 2kg, 3kg and 5Kg from July 1 to ensure adequate food supply in the market and stabilise prices in the long term. Read also: Hundreds of companies involved in bid rigging for public procurement — minister

https://theedgemalaysia.com/node/623384

TH Heavy Engineering signs collaboration deal to undertake shipbuilding projects

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KUALA LUMPUR (June 9): Loss-making TH Heavy Engineering Bhd (THHE) has entered into a collaboration with two firms to jointly undertake shipbuilding and ship repair projects, as well as in-support services for the maritime sector. THHE, a subsidiary of Urusharta Jamaah Sdn Bhd (UJSB), said the collaboration is part of the oil and gas outfit’s ongoing efforts to strengthen business prospects by unlocking new opportunities for future contracts. “THHE, Tellus Asia Sdn Bhd and Enigma Technical Solution Sdn Bhd will explore areas of collaboration, with a clear mapping of roles and obligations, including either entering into a definitive agreement to implement the collaboration or by setting up a joint venture company to undertake the potential projects,” the group said in a statement. THHE chief executive officer Ahmad Yusof Mohamad said the collaboration is set to open up prospects for the group over the long term. “With all parties bringing complementary sets of expertise, we look forward to tapping into each other’s potential to leverage on new opportunities,” he said. THHE’s share price was last traded at the adjusted price of 1 sen, bringing it a market capitalization of RM22 million.

https://theedgemalaysia.com/node/675468

Ornapaper unit to acquire land for RM30.75m

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KUALA LUMPUR (July 20): Ornapaper Bhd’s (Orna) wholly-owned subsidiary Ornapaper Industry (M) Sdn Bhd has entered into sales and purchase agreements with Faithview Group Development Sdn Bhd for the proposed acquisition of two leasehold vacant lots worth RM30.75 million. Both land parcels in Mukim Krubong, Melaka are for a purchase consideration of RM18.52 million and RM12.23 million, respectively. In a filing with Bursa Malaysia, the company said the proposed acquisition represents an opportunity for Orna group to build up its landbank at a reasonable price for long-term investment purposes. It enables the group to make strategic plans and decisions to improve its future prospects, it said. Barring any unforeseen circumstances, it expects the proposed acquisition to be completed by the second quarter of 2024.

https://theedgemalaysia.com/node/663300

NEWS: Mercedes-Benz and Hap Seng Star unveil latest Autohaus

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Mercedes-Benz Malaysia and Hap Seng Star have unveiled its largest Autohaus to date in Bukit Tinggi, Klang, offering an exclusive luxury lifestyle experience to its customers in the region.

https://theedgemalaysia.com/node/656152

Shafee maintains CJ ought to have discharged herself from hearing Najib’s SRC appeal

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PUTRAJAYA (Feb 21): Chief Justice Tun Tengku Maimun Tuan Mat ought to have discharged herself from hearing or leading the bench in Datuk Seri Najib Razak’s appeal in the SRC International Sdn Bhd case last August, following a past posting on Facebook by her husband which was critical of Najib, the former prime minister's lawyer argued in court on Tuesday (Feb 21). Najib’s defence counsel Tan Sri Muhammad Shafee Abdullah contended that the Facebook posting by Tengku Maimun’s husband (Datuk Mohd Zamani Ibrahim) in 2018 after the 14th general election, which was critical of Najib and 1Malaysia Development Bhd (1MDB) and its former subsidiary SRC, was reason enough for her to discharge herself from presiding on the bench. Her presence, Shafee added, raised questions which Najib had raised himself in his affidavit of support for the disqualification. “This created a conflict of interest by virtue of her husband’s posting,” Shafee argued in a review application hearing by a Federal Court bench of the apex court's decision last year to dismiss Najib's appeal against his conviction by the High Court. The apex cout also upheld the High Court's 12-year jail sentence and RM210 fine against the former PM. “What is important to note is that after the matter was raised last August, the posting was subsequently deleted.” Shafee said this was akin to the second case of extradition to Spain of former Chilean dictator Augusto Pinochet, where the House of Lords struck out an earlier decision as Lord Leonard Hubert Hoffman, who was part of the five-member bench, had not declared his interests or links to Amnesty International, which was one of the intervenors in the case. Here, the senior lawyer said, the House of Lords did not recognise the earlier decision just because Hoffman did not declare his links. In Najib’s appeal, the CJ’s husband had made the posting, Shafee said, adding that like any “average marital relationship”, there is a possibility that Zamani had discussed such matters with his wife. “This amounts to a disqualification, and there is a quorum failure, as the CJ would be disqualified as her husband had blamed Najib for 1MDB and SRC’s downfall. Surely, you will be sharing a lot of information [in such a relationship],” Shafee argued. This created a possible perception of bias, Shafee said, adding that if Tengku Maimun had discharged herself, it would have resulted in a quorum failure, and a new bench would have had to be constituted. “Interestingly, the bench or judge who had been vocal against this motion brought about by Najib’s then counsel Hisyam Teh Poh Teik over the posting was Tengku Maimun herself, and she stood to remain on the bench,” the senior lawyer said. When in such an "instance of conflict" and "highly charged case", he said, the CJ should have discharged herself and empanelled another bench to hear the appeal. “She was obviously disqualified to be on the bench, and this comes to Pinochet's second case,” Shafee said. He observed that the earlier apex bench had not dealt with the appeal against Najib's sentence, adding that the RM210 million fine was "astounding". Federal Court judge Datuk Vernon Ong Lam Kiat then intervened to ask for cases where a High Court judge was required to recuse himself or herself, and where he or she had to decide for himself or herself. Shafee replied that this was different, as the decision to recuse oneself could be taken up on appeal, as there were two other avenues of appeal in the Court of Appeal and the Federal Court. In this instance, he said that was why Najib had pursued the review application owing to Tengku Maimun’s presence, and her decision to remain on the bench to hear the appeal. In his submissions, Shafee said that courts function as "possibly God on earth" in disposing justice, as they should uphold the Federal Constitution, and ensure the rule of law, natural justice, and to make sure there is no breach of justice. He said that the integrity of the Federal Court is at stake. “It requires the apex court, which is the highest in the country, to ensure and have the obligation and duty to ensure justice in the administration of justice is done. It has nothing to do with the personality involved, but the courts must be seen to dispense justice and the rule of law,” he added. Najib is serving 12 years' jail, after his conviction and sentence were upheld by the Federal Court. He had been found guilty by the High Court of three counts each of criminal breach of trust, and money laundering of RM42 million of SRC funds, and abuse of power pertaining to RM4 billion in loans by state-controlled Retirement Fund Inc (KWAP) to SRC. Najib wants a review of the conviction and sentence affirmed by the apex court, and a retrial. Chief Judge of Sabah and Sarawak Datuk Abdul Rahman Sebli leads the five-member bench hearing the review application. The bench also comprises Ong, Federal Court judges Datuk Rhodzhariah Bujang and Datuk Nordin Hassan, and Court of Appeal judge Datuk Abu Bakar Jais. The review application will continue on Wednesday with the prosecution’s reply. Read also: Shafee complains Fed Court did not deal with 94 grounds of appeal in SRC case

https://theedgemalaysia.com/node/674936

Views: Focusing on BHR-ESG includes advancing corporate accountability

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This article first appeared in The Edge Malaysia Weekly on July 17, 2023 - July 23, 2023 We know that the private sector and businesses today hold great power. Unfortunately, global progress towards achieving the United Nations Sustainable Development Goals (SDGs) has been slow, with only seven years left to meet the targets. We are on the way to missing them. Growing income inequality, conflicts and climate change pose significant challenges. One report says the SDGs can only be achieved in 2092. In this context, corporate accountability becomes crucial. At the many BHR-ESG (business and human rights-environmental, social and governance) roundtables and conferences, we need to speak more about corporate accountability. The BHR-ESG agenda to push for better governance and transparency is really about accountability. How do we hold companies to account when they commit wrongs against people and the environment? There is still a great deal of pushback by corporations and states on this. When I read sustainability reports, I always seek out the number of human rights issues and cases raised through the company’s grievance mechanism and how they are remediated. Usually, none are reported. It is very strange that these well-written reports do not contain the information, indicating a transparency gap. At the same time, detractors opposing sustainability measures claim it is a Western concept. But nothing is Western about children getting sick from river pollution, migrant workers in debt bondage or directors stealing company money entrusted to them. The Malaysian government has been trying to stay in the game. Our regulators — Bank Negara, Bursa Malaysia and Securities Commission Malaysia — have led the way in promoting sustainability, including sustainable financing and reporting rules. The trickle-down effects of these measures have been experienced by various stakeholders. But despite these efforts, gaps persist in empowering the public and affected communities to hold companies accountable. What if the business does not want to pay for the pollution it has caused? What if the failure to conduct due diligence has caused migrant workers to be left stranded in Malaysia without employment? We have a functioning judicial system, but the judges cannot do much without the necessary laws. Effective non-judicial mechanisms are hardly the norm practised by all companies. It now needs to be made mandatory by law. While some companies have procedures in writing, the outcomes of grievance resolution are uncertain, potentially leading to reprisals or retaliation against those seeking justice. The absence of legal provisions and mandatory non-judicial mechanisms hinders effective redress for victims. I call on everyone to prioritise the third pillar of the United Nations Guiding Principles on Business and Human Rights (UNGPs) on access to remedies to ensure justice. It must be at the front and centre of our work. Pillar 3 stipulates that when a right is violated, victims must have access to effective remedies that are legitimate, accessible, predictable, equitable, transparent and rights-compatible. The pillar is most ignored because it forces businesses to talk about their worst fears: complaints, cases and grievances against them. Apart from entrenching the UNGPs in Malaysian law, here are some things we need to look out for moving forward: Mismatch between reporting and due diligence: While reporting standards have improved, it must be noted that reporting represents only one aspect of sustainability. Businesses must do what they report: Are they actually implementing what they say they are doing, such as due diligence? Regulators of listed companies have made reporting mandatory, but human rights and environmental due diligence are not mandatory unless industry standards require it. This voluntary approach undermines the effectiveness of reporting efforts. What due diligence or remediation is there to report if the law does not require these matters? It is necessary to make due diligence a legal obligation to ensure companies’ accountability and alignment with sustainability goals. Need for reporting on Pillar 3 issues: Businesses need to take a deep dive into grievances filed against them and explain how they have been remediated. Transparency is lacking in this data, as we see only “safe” information being reported, which does not allow for deeper scrutiny. To enhance accountability, companies must address and report on grievances, cases and complaints they have received. When a company says there are no cases, then there must be something wrong. Expanding corporate grievance mechanism routes: Litigation alone in our courts should not be the primary recourse to resolve human rights grievances. It took six years for the Taman Rimba Kiara case to finally be decided by the Federal Court. The judgment is progressive. The judges found a conflict of interest in approving the development and upheld the planning regulations. They prevented an attempt to compromise our forests. Although the residents won, the case illustrates the time taken and the resources spent. Had these issues been adequately addressed by Kuala Lumpur City Hall and the companies involved through non-state, non-judicial means, protracted litigation could have been avoided. Restructuring and influencing finance: An increasingly popular strategy is to influence investors at the “pre-distribution” financing stage. The idea is to shape funding to reduce economic inequality at the root rather than relying on redistributive measures after income is generated. There should not be an immense income gap across the value chain among the beneficiaries, especially the workers and other vulnerable groups involved in the project. Minimum compensation that is fair must be guaranteed to them. Further, establishing robust and transparent criteria for project financing is also essential. Lenders and banks show and tell why some controversial projects were approved for funding and some were not. Finance needs to be restructured to prioritise equitable investments towards a better future for all and the environment. Edmund Bon is a practising lawyer at AmerBON, Advocates. He has been in the business of human rights for 25 years. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.

https://theedgemalaysia.com/node/662015

Malaysia’s economy to grow 4.7% this year, 4.9% in 2024, says ADB

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KUALA LUMPUR (April 4): The Asian Development Bank (ADB) has forecast Malaysia’s economy to grow 4.7% this year, and 4.9% in 2024. In its Asian Development Outlook April 2023 released on Tuesday (April 4), the ADB said Malaysia’s growth exceeded expectations in 2022, buoyed by strong domestic consumption and a rebound in services, as borders reopened and economic activity normalised. It said inflation remained broadly muted, dampened by government subsidies and price controls. A less accommodative monetary stance was adopted in response to higher global interest rates. “Growth is expected to moderate, and inflation to decelerate, in 2023 and 2024, mainly tracking changes in the global environment. “Malaysia should promote gender-inclusive policies to boost women’s participation in the labour market,” it said. The ADB said Malaysia maintained a performance that was better than expected, growing by 7% year-on-year in the fourth quarter to round off 2022 with a growth of 8.7%, significantly higher than 3.1% in 2021. It said the robust growth was driven mainly by strong domestic consumption, as markets normalised and labour market conditions improved. The bank said Malaysia’s economic performance in 2023 will depend on the external environment. It said such factors include spillovers from the reopening of China, government policy support, and developments in the electronics industry. The global economic slowdown, persistent inflation, and continuing rate hikes by the US Federal Reserve, meanwhile, diminish prospects for the year. On the upside, the impact of such downside risks can be countered by stronger growth in China, a recovery in tourism, and continued government support to boost domestic consumption and tame inflation. “In 2023, gross domestic product is expected to grow at a moderate pace of 4.7%, before accelerating to 4.9% in 2024,” said the ADB. The ADB said the global slowdown may bring slightly lower inflation, but prices could surprise on the upside if commodity prices soar again. It said the inflation rate will likely decelerate with the weakening of domestic and global demand, amid continuing efforts by the government to contain the rising cost of living and strengthen the ringgit, and with a recovery in the global supply chain. The ADB said any increase in inflation would depend on changes to domestic policies on subsidies and price controls, and developments in global commodity prices. Inflation is projected to be lower at 3.1% in 2023, and 2.8% in 2024. Read also: Asia set for faster growth, easing inflation in 2023, ADB says

https://theedgemalaysia.com/node/621506

买盘带动 马股续升

English

（吉隆坡26日讯）区域市场情绪谨慎，受工业产品与服务及电讯与媒体股的买盘提振，马股延续昨日升势收高。 闭市时，富时隆综指上扬5.59点或0.36%，收于1541.15点。 综指今早以1539.72点报开，较昨日收盘的1535.56点，攀升4.16点。日内于1535.89点和1541.75点之间波动。 齐力工业（Press Metal Aluminium Holdings Bhd）和马电讯（Telekom Malaysia Bhd）为主要上升股，分别上涨14仙和26仙，以5.44令吉和4.97令吉挂收，为综指贡献3.68点。 市场广度负面，下跌股达557只、上升股406只，另有364只无起落、986只无交易，以及31只暂停交易。 成交量28亿9000万股，值19亿2000万令吉，高于昨日的23亿4000万股和18亿令吉。 乐天交易股票研究副总裁Thong Pak Leng指出，投资者继续逢低买进，带动马股收高。 他向马新社说：“主要亚洲股市涨跌不一，投资者仍对中国的封控带来的经济影响持谨慎态度。同时，韩国央行宣布将基准利率上调25个基点至1.75%，这将给股市估值带来一些压力。” “至于本地股市，我们认为市场（早些时候）超卖。但我们建议投资者对市场波动和外围不确定加剧保持警惕。我们预计综指将在周末前保持在1535至1545点区间横摆，即时支撑位是1520点，而阻力位是1560点。” 纵观亚股，新加坡海峡时报指数扬0.93%、日本日经指数和香港恒生指数皆下跌0.27%、韩国首尔综合指数下滑0.18%，以及中国沪综指收高0.5%。 重量级股中，马银行（Malayan Banking Bhd）和国家能源（Tenaga Nasional Bhd）各起2仙，分别收于8.96令吉和9.21令吉、大众银行（Public Bank Bhd）升5仙，至4.60令吉、IHH医疗保健（IHH Healthcare Bhd）扬6仙，报6.49令吉，国油化学（Petronas Chemicals Group Bhd）则跌6仙，挂9.87令吉。 热门股方面，Serba Dinamik Holdings Bhd和Cypark资源（Cypark Resources Bhd）皆扬1.5仙，分别挂11.5仙和39.5仙、Cnergenz Bhd涨10.5仙，至67.5仙，而沙布拉能源（Sapura Energy Bhd）跌1仙，报7.5仙。   （编译：陈慧珊）   English version：Bursa extends gains to close higher

https://theedgemalaysia.com/node/674299

Fed plans to boost US banks' reserve requirements; industry gripes

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WASHINGTON (July 10): The Federal Reserve's top regulatory official laid out a sweeping plan to increase capital requirements for the nation's largest banks in the wake of recent bank failures, a move that was immediately met with criticism from the industry. In a widely-anticipated speech, Fed vice chair for supervision Michael Barr said he planned to pursue multiple regulatory initiatives that would direct larger banks with more than US$100 billion in assets to hold more in reserve, saying the recent bank failures underlined the need for regulators to bolster resilience in the system. "Events over the past few months have only reinforced the need for humility and skepticism, and for an approach that makes banks resilient to both familiar and unanticipated risks," Barr said in a speech at the Bipartisan Policy Center in Washington. Barr had been expected to prescribe tighter rules on the sector since being tapped by President Joe Biden to serve as the Fed's bank watchdog. But Monday's remarks marked the most detailed view yet of his agenda, and confirmed industry fears that he would pursue a broad set of tighter requirements and also ignore their pleas for relief in some areas. The banking industry called the effort misguided and could hinder lending. "The changes he outlined today fail to adequately consider the negative repercussions from forcing banks of all sizes to hold more capital than is needed to maintain safety and soundness. Higher capital requirements come at a cost to the economy, and regulators have other existing regulatory tools to manage risks," said Rob Nichols, president and CEO of the American Bankers Association. The nation's largest bank lobby said it would oppose any proposals it deemed unnecessary and economically harmful. Barr said he did not plan to overhaul the US bank capital framework, but instead build on it in several ways, including by fully implementing the globally agreed Basel bank capital agreement and expanding annual "stress tests" of banks' health. He did not offer a specific timeline for any changes, but the effort is expected to kick off in the coming weeks. Barr's speech served as a comprehensive update on a "holistic" review of bank capital rules that he launched shortly after joining the US central bank in 2022. He had already indicated at the time that he was considering where rules might be strengthened, but now argues the banking crisis in March and April, which saw the failure of Silicon Valley Bank (SVB) and two other lenders, underlined the need to do more. "The holistic review began well before then, of course, and the steps proposed here address shortcomings in capital standards that did not begin in March of 2023," he said. "But in an obvious way, the failures of SVB and other banks this spring were a warning that banks need to be more resilient." Specifically, Barr said the crisis proved the systemic role smaller banks can play, which means they also should face stricter oversight. He said he will seek to apply stricter capital rules to banks with more than US$100 billion in assets, expanding the pool of firms that must comply. The banks which would qualify, according to Fed data, include Citizens Financial Group, Fifth Third, Huntington and Regions. The banks did not immediately respond to requests for comment. The stock prices of the first three firms were down at least 0.3% in midday trading on Monday, while Regions was up 0.3%. Dashing industry hopes for any rules relief, Barr also said he did not plan to weaken an existing surcharge on large global banks or leverage rules which the industry argued hampered Treasury market functions. Barr said evidence of that is "inconclusive" and any impact should be reduced when a fuller set of rules is in place. However, Barr did emphasise that any new requirements would go through a formal rule-writing and public comment process, and include lengthy transition periods to allow banks to raise necessary capital. He said that most banks already have enough capital to meet the new standards he has envisioned, but firms that must raise capital would be able to do so in less than two years of retained earnings, while maintaining their investor dividends. The Fed has itself come under criticism for its oversight of banks involved in this year's banking crisis. The Republican-led US House of Representatives Oversight Committee on Monday asked Fed chair Jerome Powell to hand over confidential documents related to the US central bank's supervision of failed Silicon Valley Bank. Barr also said on Monday that the Fed is close to reaching the appropriate level of interest rates to bring inflation back to its 2% target, but "we still have a bit of work to do".

https://theedgemalaysia.com/node/615363

大众投行：Mobilia可能会出现突破

Mandarin

（吉隆坡7日讯）大众投资研究表示，Mobilia Holdings Bhd可能会从横摆中突破，预计近期势头和趋势将持续改善。 该研究机构指出，如果新的购兴突破即时阻力位21.5仙，该股可能会继续走高至随后的阻力位23仙。 “然而，未能守住19.5仙支撑位，可能表明股价疲软，因此是止损信号。”   （编译：魏素雯）   English version：Mobilia potentially staging a breakout, says PublicInvest    

https://theedgemalaysia.com/node/632803

Trade war with China would cost Germany six times as much as Brexit

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KUALA LUMPUR (Aug 18): A decoupling of the European Union (EU) and Germany from China, which would result in retaliatory measures from the latter, would cost Germany almost six times as much as Brexit. In a report released on Aug 8, the ifo Institute’s Lisandra Flach said: “Deglobalisation makes us poorer. “Rather than turning away from important trading partners without good reason, companies should additionally source inputs from other countries in order to reduce one-sided and critical dependencies on certain markets and authoritarian regimes,” said the co-author of the study. The report said those in Germany who stand to lose the most in a trade war with China would be the automotive industry (-8.47% loss in value added or US$8.31 billion or RM37.16 billion), companies producing transportation equipment (-5.14% or US$1.53 billion), and manufacturers of machinery and equipment (-4.34% or US$5.2 billion). Florian Dorn, another co-author of the study, said if Germany, as an export nation, wants to realign its business model, then onshoring supply chains isn’t a solution that will help the economy. “A more promising option would be to establish strategic partnerships and free trade agreements with like-minded nations, such as the US. “That should be the objective of German and European economic policy,” said Dorn. The ifo Institute applied its trade model to the simulation of five scenarios, including the decoupling of Western countries from China, combined with a trade agreement between the EU and the US. The EU-US trade agreement could cushion the negative effects of the decoupling of the German and US economies, but not offset them completely. Given the expected gains in the trade relationship with the US, the net costs would be similar to the projected costs of Brexit.

https://theedgemalaysia.com/node/611966

MoT: VTL travellers from Singapore, Thailand, Cambodia don't have to wait for Covid-19 test results on arrival

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KUALA LUMPUR (March 15): The Ministry of Transport (MoT) has said the standard operating procedures for the Vaccinated Travel Lane (VTL) between Malaysia and Singapore, Thailand, and Cambodia will now follow the "test and release" method, which means travellers no longer need to wait for their Covid-19 test results before being allowed to continue on their journey. Instead, a traveller only has to take a Covid-19 swab test upon arrival and can then proceed to their respective accommodation via private transport, taxi or other hired vehicle, as declared in the MySejahtera Home Surveillance Order. "They must then self-isolate whilst awaiting their Covid-19 test results, which will be given within 24 hours. They will be cleared from isolation upon a negative test result. In the event of a positive result, travellers are to comply with existing health protocols prescribed by the Ministry of Health," said Transport Minister Datuk Seri Dr Wee Ka Siong in a statement. The MoT said the streamlining of the VTL entry process is to reduce ambiguity in the VTL By Air initiative for travellers entering Malaysia, and to facilitate enforcement at air terminals, adding that it applies to all VTL arrivals at the Kuala Lumpur International Airport and the Penang International Airport from Wednesday (March 16) onwards. At the start of this month, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that Malaysia would transition into the endemic phase from April 1, and would reopen its borders on the same date.

https://theedgemalaysia.com/node/675113

Capital market financing could help address SME fundraising needs, says SC chairman

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KUALA LUMPUR (July 17): Capital market financing could bridge the supply-demand gap for small-medium enterprises (SMEs), according to the Securities Commission of Malaysia's (SC) chairman Datuk Seri Awang Adek Hussin. According to him, this is because SMEs, including startups, face difficulties in accessing sustainable funds for their businesses while facing higher risks and lower survival rates than larger firms, causing financial institutions to view them as riskier loan prospects. “Capital market financing provides a viable solution by allowing SMEs to raise funds in a flexible and creative way,” he said in his speech at the launch of Dana Penjana Selangor, in conjunction with the Corporate Venture Capital (CVC) programme here on Monday (July 17). “This will facilitate them to grow and contribute more to the real economy, as well as potentially going for listing on the stock exchange.” Awang noted that while the government has allocated RM40 billion for micro, small and medium enterprises (MSMEs) for financing and guarantees by government agencies in the revised Budget 2023, funding gaps in fundraising still exist. “This is where matching fund programmes have proven to be effective in attracting private investors into Malaysia. “This approach strikes the right balance between optimising public spending and crowding in private capital into the ecosystem.” “Additionally, these programmes serve as community builders as well as a bridge between Malaysian startups and the global investor community.” He said that Dana Penjana Nasional — administered by Penjana Kapital Sdn Bhd — leverages the expertise and networks from both local and global venture capitalist managers to identify and support promising startups. “By connecting startups with experienced VC fund managers, the program helps startups access the necessary funding, mentorship, and resources to scale their businesses.” He noted that the Dana Penjana Nasional model is now being replicated at the state level with the launch of the Dana Penjana Selangor. “This should complement existing programs in supporting and nurturing tech startups, paving the way for both the Selangor and Malaysian economies to become centres of innovation and entrepreneurship.” “We are encouraged by Selangor, Penang and Sarawak’s growing interest in helping startups and SMEs in their respective states to gain better access to capital market financing, and to progress to eventual listing.” Awang also said that the SC has facilitated a “funding escalator” which will give startups more funding options throughout their growth cycle. This includes equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms as well as frameworks for venture capital and private equity managers. He noted that several enhancements have been made to the venture capital (VC) and private equity (PE) framework in 2022, which included simplifying VC and PE requirements, and expanding the pool of eligible investors to deepen the capital base for early-stage investments. “At the same time, the SC is considering widening the definition of sophisticated investors to include those with relevant knowledge and experience, and not necessarily on the basis of income earned.” Other measures include opening up registration for new ECF and P2P market operators, including for those offering shariah-compliant solutions which will provide SMEs with a wider pool of potential funding sources. “Furthermore, the SC has allowed P2P operators to focus on debt-based financing instruments.” “This includes making debt-based financing available to even larger companies. By emphasising debt-based financing options, we are providing businesses with an additional avenue to raise capital and meet their financial requirements.” He added that SC has introduced the Digital Innovation (DIGID) fund to co-fund projects that use technology in advancing the digital agenda for the Malaysian capital market. “DIGID encourages smaller capital market players to adopt innovative digital solutions, fostering their growth and enhancing their ability to engage in capital raising and investment activities.”

https://theedgemalaysia.com/node/669532

Fahmi: Termination of Md Nasir Ibrahim as Finas CEO was board of directors’ decision

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KUALA LUMPUR (June 1): The termination of Prof Dr Md Nasir Ibrahim’s service as the chief executive officer of the Malaysian National Film Development Corporation (Finas) effective Thursday (June 1) is a decision by its board of directors (BOD), said Minister of Communications and Digital Fahmi Fadzil. He said the decision was part of the restructuring of policies by Finas to determine the future direction of the agency. “They (Finas) have informed me that it (the decision) is based on several matters that the agency wants to implement, including restructuring and recalibration of some policies. “It (the decision) also takes into account the view of the board of directors on the direction of Finas,” he told reporters after witnessing the signing of a Memorandum of Understanding (MOU) between Telekom Malaysia Bhd (TM) and ZTE Malaysia Corporation Sdn Bhd in various research and development (R&D) under a strategic partnership programme. Finas, in a statement on Thursday (June 1), expressed its appreciation to Md Nasir for his contributions throughout his service as the agency’s chief executive officer from  Nov 1, 2021, until May 31, 2023. Effective Thursday, Finas deputy director-general (Management) Rozita Waty Ridzuan is discharging the duty of the agency’s chief executive officer (CEO), pending the appointment of a candidate for the post. Meanwhile, on the implementation of the 5G network, Fahmi said the 5G task force, which is co-chaired by Treasury secretary-general Datuk Johan Mahmood Merican and Communications and Digital Ministry secretary-general Mohamad Fauzi Md Isa, will continue to discuss with mobile network operators (MNOs) on the equity.  “They are meeting on a regular basis, including today, to discuss with the MNOs on the roll-out of the 5G and the question on equity,” he said. Fahmi was previously reported to have said that the transition from the single wholesale network (SWN) to a dual network for 5G deployment would begin once the current roll-out under Digital Nasional Bhd (DNB) reaches 80% of populated areas. He also said that the switch to the dual network model would be implemented based on terms that were consistent with global practices of offering multiple networks. Read also: Rozita Waty discharges duty as Finas CEO  TM, ZTE ink MOU to collaborate on R&D innovation

https://theedgemalaysia.com/node/651151

House votes to strip IRS funds intended to catch tax cheats

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(Jan 10): The House voted to repeal billions of dollars of Internal Revenue Service funding that Democrats approved last year, an issue that is likely to crop up repeatedly this year.  In the first vote on legislation with Speaker Kevin McCarthy at the helm, the chamber passed a bill on Monday night that would rescind most of the US$80 billion President Joe Biden’s Inflation Reduction Act approved to bolster the agency’s faltering audit program. The legislation passed 221-210 on a party-line vote. The IRS provisions in the crosshairs call for US$80 billion to be spent over a decade to bolster auditing, customer service and computer systems. The clamor for repeal glosses over one big problem — it would actually cost the federal government, rather than saving it money. The Congressional Budget Office on Monday estimated that eliminating the money to finance audits — US$71.5 billion of the total US$80 billion — would add more than $114 billion to the deficit over a decade because of the additional revenue that wouldn’t be generated from more audits. The tussle over the IRS’s funding is a messaging bill for now — doomed to die once it’s sent over to the Democratic-controlled Senate, and Biden has already vowed to veto it if ever reaches his desk. Yet the issue is likely to become a bargaining chip at the center of upcoming debates over raising the debt ceiling and funding the federal government. Republicans oppose the funding, saying the IRS is planning to use it to hire an “army” of 87,000 new tax agents. That figure has been widely debunked, but it keeps getting repeated because Republicans found some political success during last November’s midterm elections by promising voters they would try to stop an expansion of IRS audits by culling the agency’s funding. Democrats say the funding is critical to revive the IRS’s enforcement capabilities that have slowly been eroded through a series of budget cuts. “It’s clear that all the Republican talk about the deficits and debt is little more than an excuse to demand cuts to Medicare, Medicaid, Social Security and the other federal programs that lift up working Americans and sustain the middle class,” Senate Finance Committee Chairman Ron Wyden, said in a statement, calling the bill a “handout to wealthy tax cheats.”  House Republicans are already gearing up for a confrontation over the debt limit, which will likely be reached sometime this summer, requiring both chambers to act so the nation doesn’t default, spurring widespread economic consequences. Former President Donald Trump on Monday urged Republicans to play “tough” to extract concessions from Democrats. IRS funding, which has mostly been an under-the-radar political debate in Washington over the past decade, could soon become a high-profile issue in showdowns over the debt and budget.  In 2013, after a scandal involving an IRS official singled out conservative groups applying for nonprofit status, Republicans saw a chance to rein in the agency and attempted to impeach then-IRS Commissioner John Koskinen. The GOP failed at that but was successful in enforcing waves of budget cuts when they controlled both the House and Senate. The cuts forced the IRS to slowly pare back on audits of the wealthy, but the effects ultimately spread across the agency: Some tax refunds took years to process, and in time only 11% of calls to the IRS would reach a human customer service representative. 

https://theedgemalaysia.com/node/628784

Singapore Monetary Authority posts net loss of S$7.4 bil for FY2021/22, warns of 'considerable downside risks'

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SINGAPORE (July 19): Singapore, for now, expects neither a recession nor a stagflation next year, as the global economic outlook dims considerably with central banks worldwide forced to fight inflation at the risk of over-cooling economies. "The extent of the growth moderation will depend in part on how the scenarios for the global economy will pan out," says Monetary Authority of Singapore (MAS) managing director Ravi Menon. "But there are considerable downside risks in the global economy which bear close watching," adds Menon at a July 19 briefing to release MAS' FY2021/22 annual report ... (click on link for full story on theedgesingapore.com). Read also: Global inflation hasn’t peaked yet, Singapore central bank says Singapore central bank sees stable residential property market Singapore plans further strengthening of crypto regulations

https://theedgemalaysia.com/node/663210

Appeal documents not ready in Najib, Arul Kanda's 1MDB audit tampering case; further case management fixed

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PUTRAJAYA (April 13): The record of appeal against the High Court’s acquittal of Datuk Seri Najib Razak and former 1Malaysia Development Bhd (1MDB) president and chief executive officer Arul Kanda Kandasamy for purported abuse of power in the 1MDB audit report tampering case is not ready, the Court of Appeal (COA) was informed on Thursday (April 13). As a result, COA deputy registrar Mohd Khairi Haron fixed May 26 as another case management date. Thursday was the first case management for the prosecution’s appeal with regard to the acquittal of the former prime minister and Arul Kanda on March 3. Deputy public prosecutor Parvin Hameedah was present, while Alaistar Norman from Messrs Shafee & Co appeared for Najib, and Jasmine Cheong from Cheong & Maman came for Arul Kanda. After the record of appeal is ready, the prosecution can then file its petition of appeal containing the grounds which they are appealing against. COA judge Mohamed Zaini Mazlan, sitting in the High Court in acquitting the duo without their defence being called, ruled that there was no prima facie case against them. The judge agreed with Najib’s defence team that the prosecution had failed to prove a causal link between the amendments made in the audit report to the first audit report and the purported alleged gratification. “There is no evidence to explicitly prove that the second accused (Najib) had directed the amendments made to exonerate him from civil and criminal liability. He was merely concerned that the report would be spun politically. “The prosecution has failed to prove how the items removed or amended could give rise to civil or criminal liability to Najib. In my opinion, the items taken out or amended from the earlier audit report would not give rise to criminal or civil liability to the accused. The amendments as stated by the auditor general are justified. “I also observed that the items amended or taken out were known to the Public Accounts Committee (PAC) and openly discussed. Therefore, I find the presumption under Section 23 (2) of the Malaysian Anti-Corruption Commission (MACC) Act 2009 could not apply, as the prosecution had failed to prove gratification,” the judge said. “He (Najib) is therefore acquitted and discharged,” Zaini added. In granting a discharge, acquittal and a certificate of indemnity under Section 63(3) of the MACC Act to Arul Kanda, the judge said he was satisfied that the former 1MDB president had made a "true and full discovery" of all things for which he was examined. This was the first case where a co-accused was offered a certificate of indemnity under this Section of the Act. "This certificate shall be a bar to all legal proceedings against him in respect of the matters arising from the charges in this case," said the judge. Najib, 69, was charged with abuse of power as a public officer in his capacity as the then prime minister and finance minister in altering the 1MDB audit report prepared by the National Audit Department, which was to be tabled before the PAC in March 2016. This was allegedly so that no action could be taken against him by Parliament. Among the items removed included fugitive financier Low Taek Jho's (Jho Low) presence in 1MDB board meetings, and portions of 1MDB's 2014 financial statements. The charge was framed under Section 23(1) of the MACC Act 2009, while Arul Kanda was charged with abetting the former PM. Najib is presently serving his 12 years' jail sentence, and RM210 million fine, at Kajang Prison since Aug 23 last year. His review bid in the Federal Court, over his conviction and sentence with regard to the SRC International Sdn Bhd case, failed on March 31.

https://theedgemalaysia.com/node/624502

Bar: Police blockade of peaceful walk by lawyers unconstitutional

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KUALA LUMPUR (June 17): The Malaysian Bar said the police action in blocking the planned peaceful walk by lawyers to pass a memorandum for judiciary independence to Parliament on Friday (June 17) morning was unconstitutional. At a press conference, Malaysian Bar president Karen Cheah Yee Lynn said the lawyers are considering taking legal action against the police for possible breach of statutory duty. “Every provision under the Peaceful Assembly Act 2012 (PAA) has been followed and complied by the Bar. We gave them (the police) a notice on June 7. When they told us that we are not able to walk, they issued a letter to us on June 15, which was delivered to us on June 16," she said. “If we follow the Act, the police were supposed to come back to us three days after we sent them a notice, but they have completely failed to do that. "If the police do not come back to us or do not impose conditions on us within three days, under Section 14 of the PAA we are entitled to go ahead with the assembly and the process of the walk as if no conditions have been imposed,” she added. The police blocked two exits of the Padang Merbok car park area in Kuala Lumpur when more than 300 lawyers, including some who are said to have come from as far as Kedah, Penang and Johor, attempted to walk to the Parliament building located about 2.5km away. Deputy de facto Law Minister Datuk Wira Mas Ermieyati Shamsudin later came to accept the memorandum from the lawyers at Padang Merbok. “I think that the government is definitely with us in upholding the independence of the judiciary, but as far as the police are concerned, they have completely failed in their duties," said Cheah. “There were negotiations between some of our council members with the police officers. They (the police) had tried to offer us 20 people to go through but we told them that members who had come near and far wanted to walk. “And as the president of the Malaysian Bar, I wanted to follow the sentiments of our members,” she said. Pointing to the long human chain formed by police personnel, along with the presence of the Light Strike Force, Cheah said the police were high-handed in their handling of the peaceful protest. In comparison, she said the Malaysian Bar’s counterparts in Sabah were allowed to walk without hindrance. “Where does the Malaysian Bar go from here when the police have blatantly transgressed to do this to the Malaysian Bar? Of course, lawyers being lawyers, when our rights are being violated, we do what is best — we use the legal recourse,” she said. The Bar is currently gathering facts and evidence, and also seeking legal counsel and advice. “We will not sit down quietly for what the police did today (Friday),” Cheah said. Read also: Deputy law minister accepts Malaysian Bar’s memorandum for judiciary independence 

https://theedgemalaysia.com/node/674487

Global PC shipments fell 16.6% in 2Q, says Gartner

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KUALA LUMPUR (July 12): Worldwide PC shipments fell 16.6% year-on-year in the second quarter (2Q) of 2023 to 59.7 million units, according to preliminary results by Gartner, Inc. In a statement on Tuesday (July 11), the consulting firm said that after seven consecutive quarters of year-over-year decline, the PC market is showing initial signs of stabilisation, including sequential growth from the previous quarter. Gartner director analyst Mikako Kitagawa said the rate of decline in the PC market has slowed, indicating that shipment volumes may have reached their lowest point. “There has been progress in reducing PC inventory after more than a year of issues, supported by a gradual increase in business PC demand. “Gartner expects that PC inventory will normalide by the end of 2023, and PC demand will return to growth starting in 2024,” she said. Gartner said the top vendors in the worldwide PC market remained unchanged in 2Q of 2023, with Lenovo maintaining the No 1 spot in shipments with 24% market share. The firm said Lenovo's year-over-year shipments declined again this quarter but grew sequentially. It said Europe, the Middle East and Africa and the Asia-Pacific were challenging regions for Lenovo, but the company had only moderate declines in Latin America and North America. HP shipments fell only slightly in 2Q, ending a string of consecutive double-digit declines. Laptop shipments grew modestly but were offset by a decline in desktop shipments. The US laptop market was robust for HP, with double-digit year-over-year growth. Dell exhibited its fifth consecutive quarter of decline, with shipments down across most key regions. The Asia-Pacific was the most challenging market for Dell, where shipments decreased faster than the regional average. Dell did relatively well in the US desktop market, maintaining the top vendor position. Kitagawa said PC component prices and availability have improved drastically, helping stabilise vendor profitability despite the pricing pressure to clear inventory. “However, as the PC market begins to recover and component demand increases, the favorable price conditions for memory and SSD storage that PC vendors have enjoyed are coming to an end,” she said.

https://theedgemalaysia.com/node/603345

WSJ: Microsoft losing talent to metaverse rivals

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KUALA LUMPUR (Jan 11): Microsoft Corp's augmented-reality team has lost around 100 people in the past year, many of them to Meta Platforms Inc as competition heats up to build the metaverse. In a report Monday, the Wall Street Journal (WSJ) said competitors have been snapping up people with experience developing Microsoft’s HoloLens augmented-reality headsets, sometimes offering to double their salaries, citing former Microsoft employees. The Microsoft augmented-reality group employs around 1,500 people, they said. WSJ said the LinkedIn profiles of more than 70 former employees on the HoloLens team show they have left Microsoft in the past year. It said more than 40 joined Meta, formerly known as Facebook, which is making a big push into alternate-reality tech. The report said the departed staffers include some long-time leaders of the team. Charlie Han, who was responsible for taking customer feedback for HoloLens, left over the summer to join Meta. Josh Miller, who worked in the display team, became the display director at Meta in recent months. It added that Han and Miller did not respond to requests for comment about the moves. WSJ reported that a Microsoft spokesman said the company has been at the forefront of innovation in metaverse technology for years and “will keep advancing state-of-the-art hardware that is more immersive, affordable and in various form factors”. The company declined to share details about the HoloLens team but said employee attrition is a regular challenge many teams face and that Microsoft does what it can to retain employees and hire new ones when needed. Meta declined to comment about its recruiting practices, it said.