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https://theedgemalaysia.com/node/613125 | Temasek-backed Validus acquires Citigroup’s CitiBusiness loan portfolio in Singapore | English | KUALA LUMPUR (March 23): Temasek-backed Singapore fintech startup Validus has entered into an agreement with Citigroup in Singapore (Citi) to acquire its CitiBusiness loan portfolio in Singapore. In a statement on Tuesday (March 22), Validus said the move will bolster its top line revenue, customer base, and expand its growing loan book. It added that this is the first time a fintech in Southeast Asia is acquiring an established bank’s loan portfolio and customer base. Validus Co-founder and Executive Chairman Vikas Nahata said the opportunity to acquire the CitiBusiness loan portfolio is a complementary fit for the startup’s existing business and will enable it to rapidly expand it’s customer base and loan book. Validus said the acquisition of the CitiBusiness loan portfolio comes on top of several strategic moves by Validus recently, including the acquisition of KlearCard, a business payments and expense management technology platform. The fintech said it has identified several strategic drivers for growth; in addition to strategic acquisitions and investments in technology, adding it has also been expanding its team rapidly in Southeast Asia, with its team growing by over 25% in the past 6 months with majority coming in support of new technology and neobank initiatives. Validus said since its launch in 2015, it has disbursed over US$1 billion across more than 50,000 loans to small businesses in Singapore, Vietnam, Indonesia and Thailand. Last April, Citi said it intended to pull out of 13 markets as part of its global restructuring plan. Singapore lenders DBS Group Holdings and United Overseas Bank subsequently moved in to scoop up the American bank's retail banking assets. |
https://theedgemalaysia.com/node/669025 | International travel upsurge sees AAX post 1Q net profit of RM328m | English | KUALA LUMPUR (May 29): AirAsia X Bhd (AAX) posted a net profit of RM328 million for the first quarter ended March 31, 2023 (1QFY2023), as continued recovery in international travel saw revenue surging by over fourfold to RM548.84 million from RM113.02 million a year earlier. For the same period last year, the medium- and long-haul airline operator logged a net profit of RM33.62 billion, largely thanks to a hefty write-back of a similar amount as it completed its debt restructuring. However, excluding the provision write-back, AAX booked a loss before interest, tax, depreciation and amortisation of RM6.08 million for the quarter ended March 31, 2022. In August last year, AAX changed its financial year end from June 30 to Dec 31. “Staff costs and maintenance costs continued to increase in tandem with the gradual reactivation of aircraft to nine operating aircraft (two operating aircraft in the same period last year), and the corresponding flying and ground crew, up 334% and 188% respectively,” the aviation company said in a bourse filing on Monday (May 29), adding that the weakening ringgit versus the US dollar further impacted maintenance costs. AAX highlighted that its shareholders’ equity rebounded to RM40.8 million, versus a RM285.2 million deficit in the preceding quarter, paving the way to address its Practice Note 17 classification, subject to regulatory approval. Going forward, AAX chief executive officer Benyamin Ismail said the company remains on track with its strategy to resume services to its core markets in line with demand, with the airline currently servicing 16 destinations with up to 83 flights weekly. “In the coming quarters, the team will further ramp up flight frequencies, and is looking to launch more destinations to China, while reviewing new services to Istanbul and potentially Central Asia,” Ismail said. Moreover, AAX has been in active engagement with third-party aircraft lessors to induct additional aircraft into its fleet, according to Ismail, as he noted that the company’s key priority remains ensuring more aircraft are activated within the stipulated timeline with all safety requirements fulfilled. The airline currently has 17 aircraft within its fleet — with 11 activated and operational. Touching on its financial position, AAX said its cash balance stood at RM192.37 million as of end-March 2023, while current liabilities stood at RM679.52 million, followed by non-current liabilities at RM1.86 billion. “Recently, we announced a proposed placement of shares with key institutional investors, potentially raising up to RM50 million of new capital, which will serve to bolster our short-term working capital requirements, strengthening the balance sheet as the company continues to recover and grow its operations in the post-pandemic era, primarily for the reactivation and maintenance of the company’s growing fleet,” Ismail said. Shares in AAX ended three sen or 1.44% lower at RM2.06 on Monday, giving the company a market capitalisation of RM854.52 million. Read also:
AirAsia X offers RM50m in new shares to AHAM Asset Management, AIIMAN Asset Management, Lavin Group to help fund working capital |
https://theedgemalaysia.com/node/604540 | 重量级股续遭抛售 拖累马股微跌 | English | （吉隆坡20日讯）马银行（Malayan Banking Bhd）、大众银行（Public Bank Bhd）及国油化学（Petronas Chemicals Group Bhd）等重量级股项持续遭抛售，拖累富时隆综指收低0.17%。 截至下午5时，富时隆综指挫2.58点，至1527.75点，周三收报1530.33点。富时隆综指今早低开0.89点，报1529.44点。 富时隆综指今日游走于1525.45点至1532.82点之间。 上升股518只，下跌股402只，416只无起落，913只无交易及27只暂停交易。 马股总成交量降至33亿9000万股，总值22亿5000万令吉，周三则有35亿7000万股转手，总值26亿1000万令吉。 乐天交易私人有限公司股票研究部副总裁唐柏麟表示，富时隆综指周四徘徊于1530点支撑水平，预计市场将继续趁低吸纳股票。 “我们继续保持谨慎乐观态度，并估计将会出现趁低吸纳活动，另外，鉴于全球市场波动加剧，我们依然保持谨慎。” 他告诉马新社：“因此，我们预计富时隆综指本周将徘徊于1530点至1540点之间。” 国家银行周四在今年首个货币政策会议把隔夜政策利率（OPR）维持在1.75%。 重量级股项马银行跌4仙，至8.24令吉，大众银行及IHH医疗保健（IHH Healthcare Bhd）各跌1仙，分别报4.17令吉和6.55令吉，国油化学降3仙，至8.95令吉，联昌国际集团（CIMB Group Holdings Bhd）减8仙，报5.25令吉。 同时，齐力工业（Press Metal Aluminium Holdings Bhd）狂飙24仙，至6.12令吉，国油气体（Petronas Gas Bhd）扬8仙，报16.82令吉，以及国家能源（Tenaga Nasional Bhd）企于9.07令吉。 至于热门股，甫于创业板上市的盔甲综合科技（Coraza Integrated Technology Bhd）弹升36.5仙，至64.5仙，迪耐（Dagang NeXchange Bhd）升5.5仙，报96.5仙，G3 Global Bhd及MMAG控股（MMAG Holdings Bhd）各报8仙，Ageson Bhd跌1仙，至2.5仙，以及思泰科技（SMTrack Bhd）减0.5仙，至22仙。 （编译：魏素雯） English version：FBM KLCI ends marginally lower |
https://theedgemalaysia.com/node/643710 | Listicle: Constant vigilance: A guide to preparing for elections | English | This article first appeared in Digital Edge, The Edge Malaysia Weekly on November 14, 2022 - November 20, 2022 Ever since the dissolution of parliament on Oct 10, the internet has been overflowing with information, with news sites constantly churning out political news in the run-up to the 15th general election (GE15) while social media has acted as a platform for public discussion and information dissemination among Malaysians and electoral candidates. The Covid-19 pandemic was definitely a driving factor for politicians of all ages to embrace all forms of social media, as seen during the Johor state election earlier this year, when electoral candidates who tested positive for the virus used the platform to campaign. Admittedly, navigating through all the information to distinguish between facts, propaganda, misinformation and disinformation can be challenging and overwhelming, considering that 945 candidates from rival political parties are vying for 222 parliamentary seats. This is why Digital Edge has put together a toolkit to aid first-time and seasoned voters to cut through the noise and make an informed decision before voting come Saturday, Nov 19. The first and most important step is to ensure that you are a registered voter. On Nov 25, 2021, the Undi18 constitutional amendment was gazetted to lower the voting age from 21 to 18 and for automatic voter registration, which means that if you had not registered before, you would automatically be registered as a voter now. To check on your voter registration status, visit the MySPR Semak website, https://mysprsemak.spr.gov.my/semakan. It is important to know whether you will be voting for both your Member of Parliament (MP) and state assembly person (ADUN), or just your MP. The general election triggered the dissolution of parliament, but not the state assemblies. States such as Kedah, Kelantan, Terengganu, Selangor, Penang, Melaka, Negeri Sembilan, Sabah and Sarawak have abstained from dissolving the respective state assemblies. According to a survey by the Institute for Democracy and Economic Affairs (Ideas) last year, 35% of Malaysians don’t know the difference between an ADUN and an MP. Well, MPs represent a constituency in parliament, where the party with the winning majority will form the federal government and elect the prime minister. MPs are focused on federal policies that affect the nation and will debate and vote on newly tabled bills in parliament. Existing legislation and policies can be amended too, subject to the general consensus in the House. Meanwhile, elected ADUNs represent a state constituency at the state legislative assembly, where the party with the winning majority will form the state government and elect its head (menteri besar, chief minister or premier). ADUNs are focused on enacting and amending state laws as well as monitoring issues pertaining to land, religion, natural resources, their own state budgets, local councils, and state and local roads. To know your candidates better and to make an informed decision on who to vote for, be sure to research the candidate’s party, his or her background and manifesto. A quick web search will give you the information at your fingertips, with resources abundantly available on news sites and social media. Be sure to gather enough information on the candidates and analyse the causes they are advocating for, so that you don’t second-guess yourself at the ballot box. You may also attend political talks in your area, as candidates will most likely give such talks during the campaign period. To find out who are the nominated candidates in your constituency, visit the MySPR Semak website: https://mysprsemak.spr.gov.my/semakan. a. Additional resources: MyMP The Malaysian Centre for Constitutionalism and Human Rights (MCCHR) started an initiative in 2016 called MyMP, an open-sourced website with data on all elected representatives. The website’s first iteration listed all MPs and enlisted volunteers to key in data about the MPs so the public would get to know their elected politicians better. MyMP launched version 2.0 of the website in September 2020, focusing on making the process of getting to know your MPs fun and engaging, featuring 8-bit avatars for each MP and a role-playing game (RPG)-like stat tracking system based on objective data and observations by a team of volunteers at MCCHR, Sinar Project and Undi18. (https://mymp.org.my/) b. Leveraging social media As most Malaysians consume daily news via social media, political candidates have ramped up their social media presence to garner votes from the youth, especially since Undi18 came into effect and GE15 will see more young voters. The usual suspects — Facebook, Instagram, Twitter and TikTok — have all been utilised to reach as many voters as possible. Political analysts, prominent journalists, non-governmental organisations and global watchdogs have also shared information on these platforms so voters remain informed. It’s easy to be swayed by trendy or mundane, everyday content posted by politicians, so be sure to scrutinise the more serious posts and understand their stand on different issues and policies. c. Fact-checking and cross-checking — make sure you’ve got your facts right! If your only source of information about a political candidate or party is from family and friends, be sure to take it with a pinch of salt and verify the information you’ve gathered from reliable sources, especially before sharing it with other people. The same principle should be applied to social media posts. Be vigilant about the information you digest. Malaysia’s political landscape is rather fragmented at the moment, and after taking all the necessary steps to be a responsible and informed voter, you may find yourself jaded with Malaysian politics. At this juncture, if you find yourself unable to choose a candidate or party to support, go back to the basics and look into the party’s principles to decide which you align with the most. Persevere a little bit longer and remember that the right to vote is a privilege that has the power to shape the future of the country and create a better Malaysia. Democracy ensures that power is with the people and politicians will be held accountable if they do not fulfil their promises. Some may even argue, “One vote will not make a difference” but in reality, one vote can be the determining factor as to who will govern the state and country. This is the time for you to exercise your constitutional rights, so do go out and vote on Saturday, Nov 19. 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/661292 | Given Pharmaniaga's financial woes, MMA urges more public hospital medicine suppliers | English | KUALA LUMPUR (March 29): The government ought to be open to the idea of allowing other providers to supply and distribute medicines to the public health sector as it has proved too risky to depend on a single provider, the Malaysian Medical Association (MAA) said on Wednesday (March 29), urging serious contemplation of the ramifications flowing from the financial plight of its sole concessionaire in the segment. “This of course will take time to implement. In the meantime, urgent steps are needed to secure [an] ample supply of medicines for public health care,” MAA president Dr Muruga Raj Rajathurai said in a statement. The association urged the government to take Pharmaniaga Bhd’s financial problems more seriously after the government-linked company was classified as a financially distressed company earlier this year after it had to provide for a massive RM552 million in impairment stemming from large volumes of Covid-19 vaccines that it could not sell. Pharmaniaga fell into Practice Note 17 (PN17) status after it recorded negative equity following its largest ever quarterly net loss of RM664.39 million for the last quarter ended Dec 31, 2022, even though revenue improved 21.2 % to RM862.72 million. Muruga pointed out the situation may have a significant impact on the country’s supply of public health medicines. According to the MMA president, suppliers may also reduce or stop their supplies of medicines to Pharmaniaga if the issue is prolonged, as they would be seeing losses if outstanding payments “are not settled”. “The supply of essential medicines (medicines to treat emergency and acute cases) can be affected if such a scenario were to happen,” Muruga stressed. Pharmaniaga was initially granted a concession agreement to supply public health facilities with medicines and medical supplies by the Ministry of Health (MOH) in 1994. The concession is slated to expire in June this year. At the height of the pandemic, Pharmaniaga had supplied 12.4 million doses of Sinovac vaccines until July 2021. According to its annual report, the pharmaceutical outfit — part of the Boustead Group — supplies more than 700 products in the MOH’s Approved Product Purchase List (APPL), which comprises medicines and other medical items to government hospitals, institutions and clinics. Pharmaniaga's borrowings increased by 35% last year to RM1.16 billion, and it has appointed MIDF Amanah Investment Bank Bhd as its principal advisor for its regularisation plan to address its financial condition. Allowing other suppliers into the segment would end Pharmaniaga's monoploy as the sole provider of medical supplies to government run-healthcare facilities. Asked to comment, a Pharmaniaga group spokesperson told The Edge, "We will issue a statement tomorrow (Thursday, March 30)." The MOH, meanwhile, was unable to provide comment at this juncture. In 2019, then health minister Datuk Seri Dr Dzulkefly Ahmad announced an end to the concession which had a duration of 25 years, opting to replace it with an open tender system, before Pakatan Harapan was ousted as the ruling government. Pharmaniaga has been the sole concession holder for a quarter of a century since Putrajaya privatised the drug procurement system in 1994. Former finance minister Lim Guan Eng had previously observed that Pharmaniaga's drug procurement concession was a "monopoly" that cost the government over RM1 billion annually. |
https://theedgemalaysia.com/node/646250 | Uzma reports highest quarterly net profit in three years | English | KUALA LUMPUR (Nov 30): Uzma Bhd saw its net profit increased to RM8.83 million or 2.51 sen per share for its first quarter ended Sept 30, 2022 (1QFY2023), up more than 25 times from RM347,000 or 0.11 sen per share a year earlier and the highest since it reported a net profit of RM9.43 million for 1QFY2020. Uzma said after adjusting for non-cash transactions which, mainly due to the appreciation of US dollar currency against the ringgit in current quarter, resulted in net unrealised loss on foreign exchange of RM3.7 million, its net profit stood RM13.6 million. According to the oil and gas (O&G) service and equipment company’s latest financial report released on Wednesday (Nov 30), the operating profits from its upstream O&G services rose 61% to RM27.1 million. The group said the gross profit margin was higher at 43.9% in the quarter under review, as compared to the corresponding quarter last year at 41.1%, as it previously had to comply with the higher standard operating procedure costs during the pandemic. The company also reported a 20.1% increase in revenue to RM121.8 million in 1QFY2023, compared to RM101.4 million in 1QFY2022. It reasoned that the higher revenue was generated from its trading segment arising from higher trade activities in commodities. The RM121.8 million in revenue is the highest quarterly revenue since 4QFY2020, when it reported a revenue of RM151.75 million. In terms of prospects, Uzma said oil prices remain volatile as demand may be dented from global recession worries and China's rising Covid-19 case numbers. “However, the positive impact of a retreat in the US dollar and European Union embargo on Russian oil set to start in December 2022 and will be followed by a halt on oil products imports in February 2023 may potentially increase the oil prices,” the company said. Besides the upstream O&G services and trading segments, Uzma also operates a new energy segment as well as a digitalisation and technology segment. On Wednesday, Uzma shares closed 4.5 sen or 10.84% higher at 46 sen, valuing the group at RM160 million. |
https://theedgemalaysia.com/node/626365 | Zahid told to behave himself in court | English | KUALA LUMPUR (June 30): Umno president Datuk Seri Dr Ahmad Zahid Hamidi was warned by Deputy Public Prosecutor Datuk Raja Rozela Raja Toran in his corruption trial that the courtroom was not a “coffee shop” or a “supreme council” meeting when the former did not answer questions precisely in the High Court here. Raja Rozela was asking Zahid, who was taking the stand as a defence witness in his own trial, about funds from his charity organisation Yayasan Akalbudi, and how some RM17.9 million of said funds ended up in a fixed deposit account of a law firm called Lewis & Co, among others. Raja Rozela had asked Zahid about his previous assertion about his then executive secretary Major Mazlina Mazlan in handling Yayasan Akalbudi’s funds — that he authorised the handling of the RM17.9 million by Lewis & Co because Mazlina was mismanaging the funds. Zahid also said the RM17.9 million was transferred to Lewis & Co to accrue higher interest for the charity. This was when things got heated between the two. Raja Rozela had asked him to “agree” or “disagree” with her questions but he kept explaining. She had asked him about the funds in a fixed deposit account and put forth that Mazlina could not have used funds from the fixed deposit account. Raja Rozela: The money was in fixed deposit. Major Mazlina cannot touch it. Do you agree or not? Zahid: True, but at that time, she (Mazlina) was handling [Yayasan Akalbudi's] current account. That was the problem. Raja Rozela: Major Mazlina cannot handle the funds in the fixed deposit account. Do you agree with that? Zahid: I agree, but … Raja Rozela then cut him off and said “thank you very much”, to which Zahid replied sarcastically: “Thank you to you too." Raja Rozela then warned Zahid to be careful as he was addressing an officer of the court. “You are being naughty. You must be very careful, Datuk Seri. I am reminding you to behave yourself. "I am an officer of the court and you are not in a kedai kopi (coffee shop) or an [Umno] supreme council meeting," she told him. Zahid then complied and answered the questions she put forth to him before the trial was adjourned for lunch shortly after. Zahid, 69, is facing 47 charges, including 12 for criminal breach of trust (CBT), eight for corruption and 27 for money laundering involving RM31 million of Yayasan Akalbudi funds. For the 12 CBT charges, Zahid is alleged to have used the funds to make payments for personal credit cards, insurance policies and licences for his personal vehicles, remittances to a law firm and contributions to the Royal Malaysia Police Football Association. The charges, under Section 409 of the Penal Code, carry a maximum 20 years' jail, whipping and a fine. |
https://theedgemalaysia.com/node/673092 | Pakistan, IMF agree on crucial US$3b bailout | English | ISLAMABAD (June 30): The International Monetary Fund (IMF) has reached a staff-level pact with Pakistan on a US$3 billion (RM14 billion) stand-by arrangement, the lender said, a decision long awaited by the South Asian nation which is teetering on the brink of default. The deal, subject to approval by the IMF board in July, comes after an eight-month delay and offers some respite to Pakistan, which is battling an acute balance of payments crisis and falling foreign exchange reserves. "Praise be to God," tweeted Finance Minister Ishaq Dar after the deal was announced early on Friday (June 30). Dar had said on Thursday the deal was expected any time soon. With sky-high inflation and foreign exchange reserves barely enough to cover one month of controlled imports, Pakistan has been facing its worst economic crisis in decades, which analysts say could have spiralled into a debt default in the absence of the IMF deal. The US$3 billion funding, spread over nine months, is higher than expected. The country was awaiting the release of the remaining US$2.5 billion from a US$6.5 billion bailout package agreed in 2019, which expired on Friday. Pakistan's stock and currency markets were closed on Friday. The new stand-by arrangement builds on the 2019 programme, IMF official Nathan Porter said on Thursday, adding that Pakistan's economy had faced several challenges in recent times, including devastating floods last year and commodity price hikes following the war in Ukraine. "Despite the authorities' efforts to reduce imports and the trade deficit, reserves have declined to very low levels. Liquidity conditions in the power sector also remain acute," Porter said in a statement. "Given these challenges, the new arrangement would provide a policy anchor and a framework for financial support from multilateral and bilateral partners in the period ahead." Porter also pointed out that liquidity conditions in the power sector remained acute, with a buildup of arrears and frequent power outages. Reforms in the energy sector, which has accumulated nearly 3.6 trillion Pakistani rupees in debt, has been a cornerstone of the discussions with the IMF. Islamabad has taken a slew of policy measures since an IMF team arrived in Pakistan earlier this year, including a revised 2023-24 budget last week to meet the lender's demands. Other adjustments demanded by the IMF before clinching the deal included reversing subsidies in power and export sectors, hikes in energy and fuel prices, jacking up the key policy rate to 22%, a market-based currency exchange rate and arranging for external financing. It also got Pakistan to raise over 385 billion rupee in new taxation through a supplementary budget for the 2022-23 fiscal year and the revised budget for 2023-24. The painful adjustments have already fuelled all time high inflation of 38% year-on-year in May. "The FY2024 budget advances a primary surplus of around 0.4% of GDP by taking some steps to broaden the tax base and increase tax collection from under-taxed sectors," Porter said, adding it also ensured space to strengthen support for the vulnerable through a cash handout programme. He said it will be important that the budget is executed as planned, and authorities resist pressures for unbudgeted spending or tax exemptions in the period ahead. "This new programme is far better than our expectations," said Mohammed Sohail of Topline Securities, adding, there were a lot of uncertainties on what will happen after June 2023 as there will be a new government coming to power. "This funding of US$3 billion and for nine months will definitely help restore some investor confidence," he said. |
https://theedgemalaysia.com/node/600481 | 海利集团在柔佛获4067万建筑合同 | English | （吉隆坡20日讯）海利集团（Haily Group Bhd）获得一份价值4067万令吉的合同，在柔佛新山兴建3层店铺办公室。 根据文告，海利集团独资子公司Haily Construction私人有限公司已接受RDC Arkitek私人有限公司代表Austin Senibong Development私人有限公司发出的决标信，在地不佬Bandar Jaya Putra建设99间店铺办公室及多个变电站。 海利集团表示，该项目将于协议书签署之日起3个月内，由建筑师以书面形式确认的日期开始，而店铺办公室将在项目开始后的20个月内竣工。 闭市时，海利集团跌0.5仙或1.1%，至45仙，市值为7937万令吉。 （编译：魏素雯） English version：Haily secures RM40.67m construction contract in Johor |
https://theedgemalaysia.com/node/669038 | India’s top oil explorer plans US$12b green energy spend | English | (May 29): India’s Oil and Natural Gas Corp aims to invest 1 trillion rupees (RM55.7 billion) by 2030 in a bid to balance its fossil fuel-heavy energy portfolio with green projects. The state-controlled driller that produces more than half the nation’s oil and gas plans to grow its renewable power portfolio to 10,000 megawatts by 2030 from 189 megawatts at the end of March, Chairman Arun Kumar Singh said during a press briefing Monday in Mumbai. It will also focus on using clean energy to produce ammonia and other technologies that can offer around-the-clock generation. “India will continue to grow in fossil fuel demand until 2040, but at the same time we have to step up our efforts for green energy,” Singh said. “We have to do this so that both the worlds can co-exist.” ONGC joins Indian Oil Corp and privately-held Reliance Industries as major fossil fuel powers in the nation who have announced big ticket investments in carbon-free energy. Singh also said the company would try to zero out its direct emissions — but not those that come from the oil and gas it sells — by 2038. Prime Minister Narendra Modi has set a national goal to become net zero by 2070. “Since we have cash flow, possibly in comparison to others we will find it easier to do,” Singh said. “We can take a little riskier position.” The firm has no plans to stop investing in fossil fuels. Its capital spending plan of 301.25 billion rupees for the current fiscal year is almost all dedicated to exploration and development of its oil and gas blocks. Its overseas unit, ONGC Videsh Ltd, is considering bidding for blocks in Guyana, and is also mulling acquisition opportunities in Africa and Latin America, OVL managing director Rajarshi Gupta said during the same briefing. |
https://theedgemalaysia.com/node/621998 | TIME's 1Q net profit eases on higher depreciation and staff costs, forex loss | English | KUALA LUMPUR (May 30): TIME dotCom Bhd's first quarter (1Q) net profit eased 0.78% to RM90.65 million, from RM91.35 million a year earlier, on higher depreciation charged, staff-related costs and impact of foreign exchange (forex) movements. Earnings per share for the quarter ended March 31, 2022 slipped to 4.97 sen, from 5.04 sen, according to the group's bourse filing. This was despite revenue rising 11.47% to RM369.35 million from RM331.33 million, as all core customer groups comprising retail, enterprise and wholesale contributed to revenue growth. This, TIME added, was on the back of demand for data centres and data offerings from the group. Depreciation charges during the quarter rose by RM2.6 million, while the group booked a net forex loss of RM3.9 million versus gain of RM8.3 million last year. It also booked higher staff-related costs of RM12.7 million, as well as a RM4.6 million increase in advertising expenses plus flood relief donations. Finance costs also rose. TIME commander-in-chief Afzal Abdul Rahim said the group is cautiously optimistic about demand growth for its offerings with the reopening of the economy. "Strategically, the group remains invested in network expansion to support connectivity needs as well as help the nation achieve its digital economy objectives. "Regionally, we are still seeing a healthy level of demand for both cross-border connectivity and data centre offerings. We will continue to innovate our products and services in order to meet customer requirements," Afzal said in a statement. Shares of TIME fell nine sen or 1.99% to RM4.43, giving the group a market capitalisation of RM8.09 billion. |
https://theedgemalaysia.com/node/648271 | Aemulus set to propel northwards, says RHB Retail Research | English | KUALA LUMPUR (Dec 15): RHB Retail Research said Aemulus Holdings Bhd is set to propel northwards as it staged a breakout above the recent high of 48.5 sen on Wednesday on surging trading volume, forming a “higher high” bullish structure. In a trading stocks note on Thursday (Dec 15), the research house said that the stock has rebounded strongly from its bottom since Nov 23. “The bullish bias above that level is likely to drive the stock higher towards the 53.5 sen resistance, followed by the 60 sen mark. “Conversely, the stock may reverse direction if it falls below the 45 sen support, forming a 'lower low' bearish structure,” it said. |
https://theedgemalaysia.com/node/610827 | LPI Capital chairman: Business prospects to pick up alongside improving business conditions | English | KUALA LUMPUR (March 8): LPI Capital Bhd’s business prospects are expected to pick up in line with improving business conditions, and it is ready to seize opportunities when the sector is further liberalised, said its chairman Tan Sri Dr Teh Hong Piow. In his chairman's address in the insurer's annual report 2021, Teh said the company has seen business indicators, such as economic growth, improve, as well as the reopening of international trade routes. “The World Bank noted in its outlook that it expected global growth to resume at 5.6% in 2021, the fastest rate of expansion in 80 years, while Malaysia’s central bank has retained its expectation that the domestic economy will expand between 3% and 4% during the year (2021)." He noted that this recovery is expected to continue in 2022, though he added that the World Bank said the recovery is expected to be uneven. “Similarly, Bank Negara Malaysia (BNM) has stated that sustained recovery is contingent on several factors including the effectiveness of Covid-19 containment plans and the speed at which supply routes can be re-established,” he said. In line with this, Teh said the resumption of economic activity and economic expansion bodes well for the general insurance business as more activity translates to greater demand for underwriting. On the other hand, Teh also added that it is too soon to presume that Malaysia is completely out of the woods, as he noted that the nation has seen how quickly conditions can change simply by comparing operating conditions in the country in the first half to the second half of 2021. “Even as we are on the pathway to recovery, we must remain vigilant as a sudden flare up of the pandemic or an unexpected renewal of international trade tensions could plunge the economy back into the doldrums. Caution must remain our watchword." In terms of developments in the general insurance sector, Teh said the company expects to see BNM resume its liberalisation plan when conditions normalise, adding that the company is ready to pounce on new opportunities induced by the liberalised environment when it arises. “I would like to take this opportunity to reassure our stakeholders that we have already taken all necessary precautions and measures to not only remain resilient during this transition but also to be more than ready to compete and seize upon the new opportunities that a liberalised environment presents,” he said. |
https://theedgemalaysia.com/node/649886 | Wishlist: Hoping and praying for the unexpected | English | This article first appeared in The Edge Malaysia Weekly on December 26, 2022 - January 1, 2023 Ho ho ho! The air of festivity this year is a welcome change. For the last two years, there were restrictions on movement due to the Covid-19 pandemic. That dampened the festive spirit. Eateries and drinking holes were either not in operation or closed early before midnight. The few people who dared to venture out to the homes of friends and family took ample precautions. Hand sanitisers and masks were given as Christmas and New Year gifts instead of cakes, pastries, turkey and wine. This year, those working from Dec 23 onwards are a minority. Many have already taken off for holidays planned to last until the first week of January. Lunch breaks are longer than usual, sometimes spilling into a session of afternoon cocktails. And there are more office parties compared to the previous two years. After a thrilling final at the World Cup in Qatar, the best Christmas gift from Santa would be for the air of optimism to continue. It would enable businesses to continue benefiting from the post-pandemic recovery and recoup their losses. The Business Confidence Index is still below the 100-point threshold, indicating a lack of confidence on new investments. The air of optimism would also encourage ordinary folks to get back control of their lives. Many did not go for family holidays in the last two years for fear of being infected with Covid-19. But in all probability, asking for life to return to normalcy and the air of optimism to continue would be too big a gift to ask for. Covid-19 is almost endemic, but the fear still persists. Masks are still mandatory in confined public places and people are still catching the virus. Some still need to be hospitalised. The only difference is that the numbers are far lower than before. Yes, fear of Covid-19 is very much prevalent. But there are bright spots amid the fear. On this score, the strongest sign of life returning to normal is in China. The country, which adopted a zero-Covid policy, has finally opened up. The second biggest economy in the world is following what the other countries have done — some nine months later. The Xi Jinping government was forced to lift restrictions or face the consequences of more people taking to the streets in protest against the restrictions. China’s economy has been hammered badly due to the lockdowns, which have been imposed many times since January 2020. Apart from the lockdowns, the economy was plagued by the housing bust. The International Monetary Fund (IMF) has forecast the economy to grow at 4.4% this year, much lower than the government’s expectations of 5.5%. China is used to growth rates of more than 6.5% and that powers the rest of the countries in Asia. While China is struggling due to almost three years of lockdowns, the US, the UK and Europe are coming to terms with high inflation caused by supply disruptions and excessive consumption amid the opening up of their economies. The price of food items such as flour, rice and grains have gone up in the past year. The biggest contributor to inflation is energy prices, largely due to the war between Ukraine and Russia. Crude oil is hovering around US$80 per barrel while much of Europe is scrabbling for gas supplies. To counter inflation, interest rates are on the rise, causing a knock-on effect on economies. Those with housing loans are already feeling the effect of higher interest rates. Monthly instalments are up by 5% to 10%. Consumption patterns have slowed down, thanks to reduced demand for electronic items and automobiles. Elon Musk has lost his position as the world’s wealthiest man on the account of Tesla Inc — the manufacturer of electric vehicles — losing ground due to weaker demand. Tesla’s share price has fallen by more than 50% this year due to slowing demand as well as investors being uncomfortable with Musk taking over social media platform Twitter. The US has signalled that it will continue to raise interest rates by another 100 basis points until the first quarter of next year. The fed funds rate is now at 4.25% to 4.5%, a huge jump compared with early this year when it was almost 0%. The era of cheap money is over. The sharp rise in interest rates will cause a shock to the system and a slowdown in the economy. The IMF has predicted that the global economy will slow down to 2.7% next year compared with 3.2% this year. Malaysia is expecting slower economic growth of between 4% and 5% next year. There is a tinge of cautiousness amid the air of optimism. This is only to be expected as slower economic growth will be painful. Hopefully, the unexpected will happen — that the pain will not turn out to be as bad as anticipated. 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/641566 | 柏威年产托第三季净产业收入飙升90% | Mandarin | （吉隆坡27日讯）柏威年产托（Pavilion Real Estate Investment Trust）第三季净产业收入（NPI）按年飙升90%，得益于营业额增加及产业营运开销降低。 该产托今日向大马交易所报备，截至9月杪2022财政年第三季净产业收入达9022万令吉，相比上财年同期的4747万令吉。 第三季营业额从1亿1332万令吉，增长26.7%至1亿4362万令吉，主要由于所有经济领域和企业重开，租金和广告与营销活动的收入增加。 第三季可分配收入报6350万令吉，或每单位2.08仙。 累积首9个月的净产业收入劲扬73.7%至2亿6731万5000令吉，相较于一年前的1亿5393万令吉；营业额由3亿6431万5000令吉，增16.3%至4亿2389万令吉。 闭市时，柏威年产托微起0.81%或1仙，挂1.25令吉，市值为38亿2000万令吉。 （编译：陈慧珊） English version：Pavilion REIT’s 3Q NPI jumps 90% on higher revenue, lower property operating expenses |
https://theedgemalaysia.com/node/615463 | TDM签协议 在哥打巴鲁建医院 | English | （吉隆坡7日讯）TDM Bhd签署了一项框架协议（HoA），在吉兰丹哥打巴鲁Bandar Baru Tunjong建设和租用一所专科医院。 该集团今日向大马交易所报备，独资子公司Kumpulan Medic Iman私人有限公司（KMI）与Mutiara Premier私人有限公司（MPSB）签署上述协议。 根据协议，MPSB将在项目第一期兴建可容纳94张床位的单人房，以及至少300个停车位的大楼。 TDM指出，该项目符合KMI的扩张计划，该公司的目标是满足Bandar Baru Tunjong的可负担私人医疗服务需求。该地区位于东海岸铁路（ECRL）附近。 “拟议项目也旨在完成KMI在东海岸连锁医院的扩张，进一步提高KMI的品牌知名度。”该公司目前在彭亨和登嘉楼管理医院。 然后，MPSB将把专科医院大楼租给KMI，在可行的情况下，双方将讨论在该项目第二期增加100张床位和300个停车位的可能性。 租期为15年，可续签15年。 MPSB将为项目的开发提供资金，第一期的总发展成本估计为1亿2936万令吉。 该项目预计将于2016年首季完成。 闭市时，TDM跌1仙或3.4%，报28.5仙，市值为4亿9102万令吉。 （编译：陈慧珊） English version：TDM inks HoA for proposed construction, leasing of hospital in Kota Bharu |
https://theedgemalaysia.com/node/655279 | 不敌套利活动 马股开盘微跌 | Mandarin | （吉隆坡15日讯）受华尔街震荡交易的影响，马股今早出现套利活动，导致富时隆综指开盘微跌。 截至早上9时05分，富时隆综指降1.4点，至1482.57点，周二收报1483.97点。 富时隆综指今早低开1.17点，报1482.8点。 下跌股145只，上升股129只，另有193只无起落，1746只无交易及9只暂停交易。 马股总成交量为1亿5278万股，总值5362万令吉。 马六甲证券私人有限公司表示，美国股市周二小幅走低，道琼斯指数下跌0.5%，原因是2023年1月通胀数据高于预期，达6.4%，这引发了人们进一步担忧通胀正常化之路将崎岖不平。 券商还认为，在等待新的催化剂时，全球市场情绪将保持不温不火，至少在短期内如此。 在国内，投资者可能会继续关注收益报告季以及重新提呈的2023年财政预算案。 至于大宗商品，石油基准布兰特原油价格维持在每桶85美元以上，而原棕油价格则徘徊在每吨3900令吉以上。 此外，随着国际贸易及工业部宣布在国内提供多达4000个电动汽车充电站的目标，电动汽车（EV）相关行业可能会大放异彩。 重量级股方面，马银行（Malayan Banking Bhd）企于8.80令吉，IHH医疗保健（IHH Healthcare Bhd）持平于5.90令吉，大众银行（Public Bank Bhd）升1仙，至4.20令吉，联昌国际集团（CIMB Group Holdings Bhd）扬4仙，报5.45令吉，国油化学（Petronas Chemicals Group Bhd）降3仙，至8.12令吉。 至于热门股，丰成综合（Hong Seng Consolidated Bhd）起0.5仙，至21.5仙，泰达（Dataprep Holdings Bhd）涨0.5仙，报24仙，Trive Property Group Bhd增1仙，至8仙，金德昌控股集团（Kim Teck Cheong Consolidated Bhd）升2.5仙，报26.5仙，而PUC Bhd则持平于3.5仙。 （编译：魏素雯） English version：Bursa falls in early session |
https://theedgemalaysia.com/node/668609 | Chanel makes bigger UK bet with London office expansion plan | English | (May 25): Chanel is more than doubling its London headquarters, boosting a shaky UK economy and signaling confidence in the luxury industry’s prospects as rivals’ shares have wobbled. The fashion company plans to expand its office space at a new property in the British capital’s exclusive Berkeley Square in Mayfair. The move by a brand historically associated with France comes amid growing concern about the UK’s loss of competitiveness post-Brexit, with several companies moving stock listings to the US or shifting manufacturing elsewhere. The closely held fashion house reported a comparable sales increase of 17% for 2022, led by Europe. That was in line with Louis Vuitton owner LVMH but trailed the performance of Hermes International. Chanel’s profit growth lagged behind both competitors. “We’ve maintained a really good momentum in 2023, more or less at a similar level” as last year, Chief Financial Officer Philippe Blondiaux said in an interview Thursday. China’s reopening has boosted travel, giving Chanel a “lot of confidence” for this year, he said. Chanel is seeing double-digit revenue growth in the country, and sales generated from Chinese shoppers in France are starting to recover. Although demand in the US has softened since November, sales there are still growing by a single-digit percentage, Blondiaux said. Investors have dumped shares in some of Chanel’s publicly traded rivals over recent days on concerns about a possible slowdown for the red-hot industry. The brand behind Chanel No 5 perfume plans to move its teams to the new London building, designed by Piercy & Co, by the end of 2025. Earlier this week, Chanel signed a tenancy agreement for the new building for the next 20 years with a possibility to extend it by another decade. Chanel moved its global headquarters from New York to London in 2018. The new lease covers 86,000 square feet (8,000 square meters) across 11 floors. Chanel’s headcount grew 12% last year to 32,000 employees, with plans to increase by another 16% this year. Although incorporated in the UK, Chanel has ties to Paris that date to its beginnings in the early 20th century, when Gabrielle “Coco” Chanel opened a boutique selling hats. Chanel’s expansion in the UK comes at a difficult time for luxury brands there after the government decided to scrap VAT-free shopping for tourists, a measure that’s hurting business by giving international travelers less incentive to come to London. Burberry Group Plc Chief Executive Officer Jonathan Akeroyd last week reiterated his disappointment at the change because it puts the UK at a “competitive disadvantage” relative to continental Europe. The billionaire Wertheimer brothers — Alain, 74, and Gerard, 71 — who own Chanel have so far pocketed a much smaller windfall for 2022 than the total for the previous year. The latest report shows an interim dividend of US$1.68 billion. That compares with US$5 billion in payouts for all of 2021. The siblings’ net worth was nearly US$92 billion before the latest results, according to the Bloomberg Billionaires Index. CEO Leena Nair said Chanel has no plans to list on the stock market. “We’re a private, independent company and plan to stay so,” she said Thursday in an interview. |
https://theedgemalaysia.com/node/602327 | Serba wanted to keep SC raid documents a mystery and secret, says Bursa Securities | English | KUALA LUMPUR (Jan 3): Serba Dinamik Holdings Bhd wanted to stop the disclosure of the factual findings update (FFU) on its special independent review (SIR) partly because it referred to documents seized by the Securities Commission during its raid on the company, said Bursa Malaysia Securities Bhd in its civil suit against the oil and gas engineering company. In the written submission filed by Bursa Securities’ counsel Datuk Loh Siew Cheang, the plaintiff disputed Serba Dinamik’s claim that the FFU is hearsay documentary evidence which is not admissible. Further, the counsel also disputed the assertion that the FFU is unverified and therefore cannot be disclosable material information, saying the defendant is “engaging in a game of words”. “As a matter of fact, the damning documents in the FFU in the form of exhibits/appendices are the defendant’s documents seized by the Securities Commission during a raid that lasted three days and the SIR refers to those documents. “In substance, it is these documents the Defendant (Serba Dinamik) wants to keep as a mystery and secret,” Loh said in the submission. The lawyer added that “Where the authenticity of recorded transactions cannot be verified, it is indisputably material information requiring immediate public disclosure”. In its suit, Bursa Securities is seeking a court order to force Serba Dinamik to disclose the FFU of the SIR dated Sept 30, 2021, which was conducted by Ernst & Young Consulting Sdn Bhd (EY Consulting) on its financial accounts. The legal action was taken due to Serba Dinamik's "failure to comply" with the stock exchange's directive on Oct 22 for the disclosure. In the submission, Loh also said that “Bursa in its capacity as regulator is not asserting or seeking to establish the truth of the statements”. “Bursa in its capacity as regulator is not seeking, like a private litigant in a civil dispute, for orders to set aside the transactions, or declare the transactions invalid. "Prior to the issue of the Disclosure Directive, Bursa took actions under the Main Market Listing Requirement to monitor and secure compliance with the MMLR by the Defendant," Loh said. He added that the MMLR, in paragraph 2.23, empowers Bursa to issue the Disclosure Directive. "Bursa’s case is predicated upon the Defendant’s refusal to comply with the Disclosure Directive issued to it. This is the Defendant’s contravention," Loh added. Hearing for the suit continues before judicial commissioner Wan Muhammad Amin Wan Yahya in the High Court on Jan 11. Serba Dinamik also has a suit against Bursa Securities to nullify the SIR, arguing that the directives by the stock exchange to appoint EY Consulting for the SIR was in excess of its power, among others. The issue in Serba Dinamik first came up when its external auditor KPMG raised certain issues involving its financials for the 12 months ended Dec 31, 2020. The matter snowballed into litigation by the company against the auditor, prompting regulators to step in, including a raid by the SC on the company's office. Shares of Serba Dinamik have been suspended from trading since Oct 22, after it refused to disclose the FFU. The group's shares last settled at 35 sen, giving it a market capitalisation of RM1.3 billion. |
https://theedgemalaysia.com/node/668031 | Ringgit closes lower against US dollar | English | KUALA LUMPUR (May 22): The ringgit closed lower against the US dollar as the market viewed the US debt ceiling talks between US President Joe Biden and House Republican speaker Kevin McCarthy as positive for the US dollar while weakening Chinese economic growth continued to weigh on the ringgit. At 6pm, the local note stood at 4.5470/5515 versus the greenback from last Friday’s closing rate of 4.5350/5405 SPI Asset Management managing director Stephen Innes said the debt ceiling roller coaster continues, but the market remains cautiously confident Biden and McCarthy will reach a deal by this weekend. “The market is responding favourably for the US dollar, while China's uneven recovery, cautious local sentiment, less supportive portfolio flows and US dollar hoarding are making the ringgit weaker,” he said. At the close, the ringgit was traded easier against a basket of major currencies. It weakened vis-a-vis the British pound to 5.6578/6634 from 5.6370/6438 at the close last Friday, eased against the euro to 4.9189/9238 from 4.8978/9037 and closed lower against the Japanese yen at 3.2973/3008 from 3.2839/2881 previously. The local note was traded lower against other Asean currencies. It depreciated versus the Indonesian rupiah to 305.3/305.8 from 303.6/304.2 at last Friday’s close, declined to 3.3799/3835 from 3.3715/3758 against the Singapore dollar and fell vis-a-vis the Thai baht to 3.1950/2138 from 13.1862/2083. However, the ringgit was unchanged against the Philippine pesos at 8.14/8.16 since last Friday. |
https://theedgemalaysia.com/node/668399 | Sunway 1Q profit rises 4% supported by property investment and healthcare segments | English | KUALA LUMPUR (May 24): Higher contributions from property investment and healthcare segments lifted Sunway Bhd’s first quarter net profit by 3.76% to RM141.64 million from RM136.51 million a year ago. This more than offset the lower profit contributions from the other business segments, the group said. Earnings per share for the quarter ended March 31, 2023 (1QFY2023) grew to 1.98 sen from 1.89 sen previously, according to Sunway’s bourse filing. Quarterly revenue rose to RM1.26 billion, up 13.6% from RM1.11 billion in 1QFY2022, driven by higher contributions from all business segments except construction and others segments. Sunway said the earnings from two of the group’s ongoing property development projects in Singapore will only be recognised upon completion and handover of the projects. “Hence, as at end-March 2023, the accumulated progressive profits related to these projects amounting to RM121.6 million is not yet recognised,” the group said in a statement. Sunway group chief financial officer Chong Chang Choong said the group’s 1QFY2023 financial performance was better than the pre-pandemic period, anchored by sustained domestic economic growth. “While there may be downside risks to the economic growth outlook, the group has taken actions to make our business units more resilient to manage the headwinds,” Chong said. He said the group is “cautiously optimistic” that most of its business units will continue to perform satisfactorily. “In particular, the group expects its leisure, hospitality, and healthcare segments to continue to benefit from the improving inbound leisure and medical-related tourism as more international airlines are resuming their flights to Malaysia,” he added. Sunway's share price closed two sen or 1.27% lower at RM1.55 on Wednesday (May 24), bringing the group a market capitalisation of RM7.75 billion.
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https://theedgemalaysia.com/node/601339 | 沿海工程财团获墨西哥45亿气体净化厂建设合约 | Mandarin | （吉隆坡27日讯）沿海工程（Coastal Contracts Bhd）指出，由其联营公司Coastoil Dynamic SA de CV（CD）牵头的财团，获得墨西哥一个价值45亿令吉的气体净化厂建设项目。 这家综合海事油气服务及解决方案供应商今日向大马交易所报备，CD已与墨西哥国有石油公司Petroleos Mexicanos（Pemex）的子公司Pemex Exploracion and Produccion签署一项服务协议，承接名为EMC Papan Plant的陆上气体净化厂项目。该厂位于墨西哥韦拉克鲁斯州Tierra Blanca的Ixachi油田，每日产能为3亿标准立方英尺（MMSCFD）。 合约的工作范围包括气体净化厂及相关基础设施的工程、采购、建设、营运与维护。 合约固定期限为3902天，其中建设期250天，营运与维护期为10年。 该厂预计将在截至2023年6月30日止财政年的首季开始营运。 这项合约料为沿海工程2022财年及合约期内的盈利和净资产作出贡献。 沿海工程在文告中指出，该公司正通过CD与其长期商业伙伴Nuvoil，一同进军墨西哥陆上气体净化厂项目。 CD的第一个气体净化厂名为Perdiz Plant，日产能为1亿8000万标准立方英尺，已于2021年7月投运，目前则以最佳的产能运行。 沿海工程执行主席黄振兴在文告中表示：“很高兴在墨西哥Ixachi油田获得第二项陆上气体净化厂合约。沿海工程于2013年涉足墨西哥，多年来与Nuvoil的互信合作关系，为双方在墨西哥的陆上气体净化厂项目创造协同效应。” 据他说，这一价值45亿令吉的巨额合约，是该集团40多年来史上最高的合约。 “随着行业稳步复苏，我们对寻求更多与Pemex生产价值链相关的项目非常乐观。由于油价徘徊在每桶70美元左右，加上过去几年的投资不足，石油巨头预计在2022年增加资本开销。我们相信，沿海工程和联营公司将能够攫取这些机会。” 配合这项宣布，该股今早暂停交易一个小时。恢复交易后，上涨15仙或12.4%，至1.36令吉，市值为7亿2808万令吉。 （编译：陈慧珊） English version：Consortium led by Coastal Contracts’ JV secures RM4.5b gas conditioning plant construction contract in Mexico |
https://theedgemalaysia.com/node/673135 | Thailand's economy picks up in May as tourism, spending rise | English | BANGKOK (June 30): Thailand's economy in May improved from the previous month as tourism gathered momentum and private consumption increased while exports remained weak, the central bank said on Friday. Economic activity was seen rising steadily with tourist arrivals still increasing, the Bank of Thailand (BOT) said in a statement. The BOT expects economic growth at 3.6% this year and 3.8% next year, with the tourism sector a key driver. In May, Thailand recorded a current account deficit of US$2.8 billion, after a revised deficit of US$0.6 billion the previous month, the BOT said on Friday. Exports, a key driver of growth, dropped 5.9% year-on-year in May, from a 4.9% year-on-year drop the previous month. Southeast Asia's second-largest economy expanded by a more than expected 2.7% in the first quarter from a year earlier as the vital tourism sector gathered strength. Global financial market volatility and the formation of a new government and its policies would be monitored going forward, the BOT said. |
https://theedgemalaysia.com/node/600630 | Dr Mahathir ready for discharge from IJN | English | KUALA LUMPUR (Dec 21): Tun Dr Mahathir Mohamad, who was admitted to the National Heart Institute (IJN) last Thursday (Dec 16), has completed all the necessary investigations for his medical check-up. The former prime minister is ready for discharge within the next few days, the IJN said in a brief statement on Tuesday. “The team of doctors treating Tun Dr Mahathir is satisfied with the results of the investigations done over the last few days,” it said. “Tun Dr Mahathir and Tun Siti Hasmah (Dr Mahathir's wife Tun Dr Siti Hasmah Mohamad Ali) express their thanks to everyone who has been praying for Tun Dr Mahathir,” the statement added. The country's longest-serving prime minister has a history of heart troubles. He has had heart attacks and bypass surgeries. |
https://theedgemalaysia.com/node/670844 | Defend Selangor for sake of state, national development, says Anwar | English | SHAH ALAM (June 12): Prime Minister and Pakatan Harapan chairman Datuk Seri Anwar Ibrahim has urged the people to do their part in defending the Selangor government based on the state’s performance and its importance to the national economy. “Looking at Selangor’s performance, there is much more potential to offer, and Selangor plays an important role in defending the strength of the national economy. That is why there are many who want to get their hands on it...don’t allow them that opportunity,” Anwar, who is also the finance minister, said. He said this at the prime minister's special mandate for Selangor civil servants, which was attended by some 1,500 state civil servants here on Monday (June 12). “I am counting on all of you in Selangor, as Selangor is our bastion. Selangor is the unity government’s stronghold. We should not support a government merely to retain it, but because we recognise its performance, and its commitment to saving the state and country,” he said. However, Anwar said Selangor’s position could be threatened if the opposition continues playing racial and religious sentiments, with the aim of swaying young voters. Selangor, along with Negeri Sembilan, Kedah, Penang, Kelantan and Terengganu, is facing a state election soon. Anwar also praised the performance of Menteri Besar Datuk Seri Amirudin Shari's administration over the past five years, but added that he was constantly reminding Amirudin not to rest on his laurels. “Amirudin has shown seriousness and has performed well, although as the elder brother, I am always giving him advice and pushing him harder. This is important, as we want to raise the dignity and status of both the state and the country. “If we are merely contented, comfortable with furnishing favourable reports, it won’t raise [the nation’s performance]. That is why we must continue to make changes, and this requires new measures and ideas — a propensity to change,” he said. Anwar said Selangor, as one of the states that had shown the most progress, must strive even further. “This means that even if we are already good, we can be better and be an example [for the other states]," the prime minister said. Read also:
Selangor MB denies dissolution of state assembly on June 19 |
https://theedgemalaysia.com/node/665956 | After The Storm: No respite from the slow-motion US-China collision | English | This article first appeared in Forum, The Edge Malaysia Weekly on May 8, 2023 - May 14, 2023 I recently attended the China Development Forum (CDF) in Beijing, an annual gathering of senior foreign business leaders, academics, former policymakers and top Chinese officials. This year’s conference was the first to be held in person since 2019, and it offered Western observers the opportunity to meet China’s new senior leadership, including new Premier Li Qiang. The event also offered Li his first opportunity to engage with foreign representatives since taking office. While much has been said about President Xi Jinping appointing close loyalists to crucial positions within the Communist Party of China and the government, our discussions with Li and other high-ranking Chinese officials offered a more nuanced view of their policies and leadership style. Prior to becoming premier in March, Li served as the CPC secretary in Shanghai. As an economic reformer and proponent of private entrepreneurship, he played a crucial role in convincing Tesla to build a megafactory in the city. During the Covid-19 pandemic, he enforced Xi’s strict zero-Covid policy and oversaw a two-month lockdown of Shanghai. Fortunately for Li, he was rewarded for his loyalty and not made into a scapegoat for the policy’s failure. His close relationship with Xi also enabled him to convince the Chinese president to reverse the zero-Covid restrictions overnight when the policy proved to be unsustainable. During our meeting, Li reiterated China’s commitment to “reform and opening up”, a message that other Chinese leaders also conveyed. Li’s remarkable wit contrasted sharply with the more reserved demeanour of Li Keqiang, whom we met in earlier years when he was premier. During our meeting, he made Apple CEO Tim Cook laugh out loud by attributing his joyful mood to the viral video of Cook being applauded by crowds during his visit to an Apple store in Beijing. He even joked about a video of US lawmakers grilling TikTok CEO Shou Zi Chew, which had also gone viral that week. Unlike Cook, he noted, the beleaguered TikTok boss was not smiling during his congressional hearing. Li’s joke included an implicit warning that although US firms are still welcome in China, the Chinese government can play hardball if its firms and interests are treated harshly in the US. Li’s veiled threat captures the current Chinese attitude towards the US. Although senior economic policymakers in China often talk about opening up, China’s policies still prioritise security and control over reform. Qin Gang, China’s new foreign minister, adopted a hawkish stance during his CDF address. Taking an implicit swipe at the US, Qin warned Western attendees that while China aims to maintain an open global trading regime, the country would respond forcefully to any attempt to drag it into a new cold war. In a recent speech, US Treasury Secretary Janet Yellen sought to alleviate China’s concerns that the US is trying to “contain” its rise and decouple from its economy. Recent American actions limiting trade with China, she clarified, were based on national security concerns rather than an effort to hinder the country’s economic growth. But assuaging China will be difficult when the US is reportedly planning to introduce far-reaching restrictions on Chinese investments in the US and on US investments in China. To date, Chinese officials have not been receptive to Yellen and Secretary of State Antony Blinken’s efforts to establish a dialogue on how to maximise cooperation, minimise areas of confrontation and manage the two powers’ escalating strategic competition and rivalry. European Commission President Ursula von der Leyen recently gave a similarly pragmatic speech in which she argued that Europe should “focus on de-risking rather than decoupling” from China but also emphasised the many ways in which Chinese policies pose a threat to Europe and the West. Her speech was not well-received in Beijing, and she was effectively snubbed when she visited China with French President Emmanuel Macron in April, while the more accommodating Macron received a red-carpet welcome. China is currently trying to drive a wedge between the European Union and the US. Given that EU-based companies have significant interests in China, many European CEOs attended the CDF, in contrast to the limited presence of American business leaders. And Macron’s controversial comments during his visit in April, particularly his statement that Europe must not become a “vassal” of the US, suggested that the effort may have succeeded. But a subsequent G7 communiqué reaffirmed the West’s stance on Taiwan and condemned China’s aggressive policies towards the island, and China’s tacit support of Russia’s brutal invasion of Ukraine will likely deter Europe from succumbing to a charm offensive. The run-up to the US presidential election, together with China’s suspicion that the US is trying to contain its economic growth, will impede efforts to build trust and de-escalate tensions between the two countries. With both Democrats and Republicans competing to be seen as tough on China, the Sino-American cold war is likely to intensify, raising the risk of an eventual hot war over Taiwan. Despite US officials’ efforts to establish guardrails for strategic competition with China and Chinese officials’ insistence that they have no interest in economic decoupling, prospects for cooperation look increasingly remote. Fragmentation and decoupling are becoming the new normal; the two countries remain on a collision course; and a dangerous deepening of the ongoing “geopolitical depression” is all but inevitable. — Project Syndicate Nouriel Roubini, professor emeritus of economics at New York University’s Stern School of Business, is chief economist at Atlas Capital Team and the author of MegaThreats: Ten Dangerous Trends That Imperil Our Future, and How to Survive Them (Little, Brown and Company, 2022) Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play. |
https://theedgemalaysia.com/node/633627 | Hibiscus Petroleum 4Q net profit jumps four-fold, driven by contributions from newly acquired assets | English | KUALA LUMPUR (Aug 24): Hibiscus Petroleum Bhd posted a four-fold spike in its net profit for the fourth quarter ended June 30, 2022 (4QFY22) to RM215.51 million from RM49.6 million a year ago, underpinned by contributions from its newly acquired assets as well as a strong oil price environment. Earnings per share leapt to 10.71 sen from 2.49 sen, according to the oil and gas company’s Bursa Malaysia filing on Wednesday (Aug 24). Revenue for the quarter ballooned 243.2% to RM868.37 million from RM253.02 million a year ago. Hibiscus said its financial performance in the quarter under review was significantly boosted by its recently acquired assets, comprising Fortuna International Petroleum Corp (FIPC). In 4QFY22, the recently acquired assets contributed RM444.5 million (51.2% of the group’s total) to the group’s revenue, RM199.9 million (46.1% of the group’s total) to its earnings before interest tax depreciation and amortisation (EBITDA) and RM120.2 million (55.8% of the group’s total) to its profit after tax, it said. Additionally, it also noted that strong oil, condensate and gas price levels contributed positively to its earnings in all its producing assets. The group said average realised oil prices approached US$120 per barrel during the quarter. “For the current quarter (4QFY22), a total of 1.4 million [barrels] of oil and condensate and over 590,000 [barrels] of oil equivalent (boe) of gas were sold,” it added. In January this year, Hibiscus via its indirect wholly owned subsidiary Peninsula Hibiscus Sdn Bhd successfully completed the acquisition of the entire equity interest in FIPC from Repsol for a purchase price of US$212.5 million. Meanwhile, for FY22, Hibiscus posted a more than five-fold increase in its net profit to RM613.06 million from RM103.68 million in FY21, while revenue more than doubled to RM1.7 billion from RM804.78 million. Going forward, Hibiscus said it has targeted to sell a total of approximately 7.2 to 7.5 million boe of oil, condensate and gas — comprising 4.4 to 4.7 million barrels of oil and condensate, and 2.8 million boe of gas. The group said it expects to sell a total of approximately 1.6 million boe in 1QFY23 and 2.6 million boe in 2QFY23. “An important milestone to be pursued and delivered over 1QFY23 is the reinstatement of the failed riser at the Anasuria Cluster. This item malfunctioned in May 2021 and with its reinstatement, we hope to see an improved performance going forward,” it added. Touching on oil price forecast, Hibiscus — citing Rystad Energy’s oil price outlook — said that Brent crude oil prices are expected to remain in the range of US$95 to US$110 per barrel in 2023, underpinned by continued strong demand growth. “Overall, we remain focused on delivering optimal performance in a strong oil price environment,” it said. At noon break on Wednesday, shares in Hibiscus Petroleum were down two sen or 2.05% at 95.5 sen, giving it a market capitalisation of RM1.91 billion. |
https://theedgemalaysia.com/node/669363 | Bitcoin faces first monthly drop of 2023 as crypto revival cools | English | (May 31): The crypto rebound is losing steam, leaving Bitcoin on course for its worst month since the FTX exchange collapsed in November last year. The roughly 8% drop in May is Bitcoin’s first monthly retreat of 2023. A gauge of the top 100 digital assets has dropped by a similar magnitude. The largest crypto coin bounced 84% from the turn of the year through mid-April, briefly scaling US$31,000 (RM143,360), but the climb has since fizzled to 64%. Ebbing liquidity and restrictive monetary policy have curbed enthusiasm for crypto. Crypto geeks had seized on the collapse of US regional banks in March as validating a distrust of fiat currency, sparking gains for Bitcoin, but that proved to be a temporary prop as officials steadied the financial sector. “What you really need to do to get another wave of Bitcoin and crypto-asset buying is to show real utility and development to get those crypto curious people to get into the crypto ecosystem,” John Wu, president of Ava Labs Inc, said on Bloomberg Television. The Bitcoin network has seen a flurry of activity this year involving meme coins and nonfungible tokens. That pressured Bitcoin earlier in May by causing a spike in blockchain congestion and transaction fees, which has since eased. Assets like stocks, bonds and gold fared better than crypto over the past four weeks. Hype over artificial intelligence (AI) was particularly intense, stealing the limelight and spurring a more than 10% gain in an index of AI-linked shares. “Crypto is losing out to tech stocks that have a stronger narrative with the AI and ChatGPT stories driving investor interest,” said Markus Thielen, head of research at Matrixport. Meme coins like Pepe are seeing “very low” turnover, indicating a lack of investor engagement, he added. Traders are also evaluating the implications of the US debt-limit deal, which Congress is racing to pass before June 5, the date by which the nation could default. If the deal is approved, it could lead to a deluge of bill sales that sucks liquidity out of markets. “Liquidity impacts tend to be more visible over longer horizons,” said Caroline Mauron, co-founder of digital-asset derivatives liquidity provider OrBit Markets. “Large Treasury issuances that may follow the deal are unlikely to materially affect the Bitcoin price in the short term.” Bitcoin fell more than 2% to US$27,150 as of 8.22am in London on Wednesday (May 31). Smaller coins such as Ether, Solana and Avalanche also slid. Bitcoin remains about US$42,000 off its 2021 peak after a partial revival from last year’s rout. |
https://theedgemalaysia.com/node/602903 | AHB, Axteria, Grand Hoover, Imaspro, Pecca, Spring Art, Teo Seng, TWL | English | KUALA LUMPUR (Jan 7): theedgemarkets.com highlighted eight stocks with momentum at Bursa Malaysia’s afternoon close on Friday (Jan 7). Two indicated positive momentum, while six displayed negative momentum. The stock with positive momentum were: Grand Hoover Bhd — up 16 sen at RM1.09 TWL Holdings Bhd — up half a sen at 6.5 sen The stocks with negative momentum were: AHB Holdings Bhd — up two and a half sen at 15.5 sen Axteria Group Bhd — up one sen at 25 sen Imaspro Corp Bhd — unchanged at RM2.59 Pecca Group Bhd — up three sen at RM3.43 Spring Art Holdings Bhd — unchanged at 31.5 sen Teo Seng Capital Bhd — up one and a half sen at 79.5 sen The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum. This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher-than-normal volume and price movements. The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time. 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/653262 | Twitter says users will be able to appeal against account suspension | English | BENGALURU (Jan 27): Twitter users will be able to appeal against account suspensions and be evaluated under the social media platform's new criteria for reinstatement from Feb 1, the company said on Friday (Jan 27). Under the new criteria, which follow billionaire Elon Musk's purchase of the company in October, Twitter accounts will only be suspended for severe or ongoing and repeat violations of the platform's policies. Severe policy violations include engaging in illegal content or activity, inciting or threatening violence or harm, and engaging in targeted harassment of other users, among others. Twitter said that going forward, it will take less severe action, in comparison to account suspension, such as limiting the reach of tweets that violate its policies or asking users to remove tweets before continuing to use the account. In December, Musk came under fire for suspending accounts of several journalists over a controversy on publishing public data about the billionaire's plane. He later reinstated the accounts. |
https://theedgemalaysia.com/node/602277 | 速柏玛实施新外劳管理政策 加快符合ILO标准 | English | （吉隆坡3日讯）速柏玛（Supermax Corp Bhd）宣布，已推出一项新的全面外劳管理政策，以加强人力资源和外劳政策，自去年11月起生效。 这家手套制造商今日指出，公司非常重视合规问题，自2019年来一直致力于达到国际劳工组织（ILO）的标准。 该集团说，新外劳管理政策的落实，将加快符合ILO标准的进程，并确保公司的人力资源政策合规和采用最佳实践。 “公司目前正在向美国海关与边境保护局（CBP）汇报其在最新政策作出的改进。” 速柏玛指出，公司于2019年10月1日实施了零成本招聘政策，并完成补偿在职外劳之前支付的招聘费用。 此外，从去年9月起，该公司开始对离职员工提供补偿，预计今年3月将完成这一流程。 同时，该集团表示，正在进行的一系列改进措施包括加强人力资源团队、预防监督管理层面强迫劳动，以及教育员工权益。 与此同时，速柏玛表示，该集团也提升人力资源工具与系统，以实现实时数据管理及员工自助服务，这将提高员工对权益和薪资的透明度和理解。 “公司正在大幅改善为员工提供的福利、设施和生活条件，包括对宿舍进行大翻新，提供足够的隐私。这预计将于2月中旬完成。 根据速柏玛，该公司可能是业内第一家或为本地工作的外劳提供平等薪酬和福利架构的公司之一。 这意味着，本地员工和外劳如今享有同等薪资和福利，这将进一步消除任何歧视性做法。 随着这些新政策的落实，速柏玛将最低薪金提高至1400令吉。 “公司还将在1月解决分包商的问题，并确保他们员工的权利和福利受到保护。” “为此，速柏玛正采用混合人力资源管理系统，以确保供应链合规，同时改善供应商员工的监控和管理。” “公司正在修订和更新公司手册，以提高就业和员工权益意识，并成立一个员工委员会，包括由所有外劳推举的代表。” 速柏玛补充，随着推出修订后的雇佣手册和雇佣合约，本月将与所有外劳举行一系列会议。 为了提高透明度和问责制，该集团表示将设立一个举报渠道，由信誉良好的独立第三方管理，并直接向董事部汇报。 “董事部保证，公司将致力于员工福利，并尊重他们的权利。” （编译：陈慧珊） English version：Supermax implements new foreign worker management policy effective November 2021 |
https://theedgemalaysia.com/node/671649 | Funds bet on even deeper US yield curve inversion: McGeever | English | ORLANDO, Florida (June 18): Speculators went into the US Federal Reserve's policy meeting last week holding their biggest ever net short position in two-year Treasuries futures and betting on a further inversion of the US yield curve. Whether the Fed hikes interest rates again after its pause this month remains to be seen, but funds' yield curve trade looks on the money — short-dated yields are surging above 10-year borrowing costs and the gap is approaching historic levels. The latest Commodity Futures Trading Commission (CFTC) data shows that funds increased their record net short positions in two-year Treasuries futures in the week through June 13 to more than 1 million contracts, and reduced their net short position in the 10-year space for a second week. A short position is essentially a wager an asset's price will fall, and a long position a bet it will rise. In bonds, yields rise when prices fall and move lower when prices increase. Hedge funds and speculators take positions in bonds futures for hedging purposes so the CFTC data is not always a reflection of purely directional bets. But it is often a reasonable proxy and a decent indicator of relative value trades. Funds expanded their already record net short two-year Treasuries futures position to more than 1 million contracts for the first time. The scale of the move lately is remarkable — the net short position has more than doubled in just two months. At the same time, funds are scaling back their bearish bets on 10-year bonds. They cut their net short position to 691,853 contracts from 753,301 in the week to June 13, bringing the two-week reduction to nearly 160,000 contracts, the biggest move in over a year. Notably, funds' net short two-year Treasuries position now exceeds their net short 10-year Treasuries position by some 354,000 contracts. That's the biggest gap in two years and among the largest on record. If this is indeed hedge funds betting on an inverted 2s/10s yield curve, they are sitting pretty. The curve, which has been inverted for almost a year, is now inverted by around 95 basis points — that's doubled in a month and within sight of the 110-bps inversion before the US banking shock in March. That was the deepest inversion since 1981 and is proving to be a head-scratcher for investors. An inverted 2s/10s curve has preceded every recession in the past 40 years, as relatively high short-term borrowing costs choke growth, tighten financial conditions and hit banks' profits. It may do so again this time but there is no evidence yet, despite the remarkable length and scale of the inversion. The US regional banking shock in March seems to be in the rear-view mirror. Fed officials have raised their median interest rate projections to include a further 50 basis points of tightening this year, while Wall Street is holding near 14-month highs and volatility across equities, bonds and currencies is plunging. Risk assets appear to be pricing out recession risk. "But the yield curve seems to be telling a different story, especially as the New York Fed's recession probabilities model, which uses the spread between the 10-year and three-month Treasury yield to predict recession twelve months ahead, is at a 70% recession probability for the first time since the 1980s," Barclays analysts wrote on Friday. |
https://theedgemalaysia.com/node/659231 | IHH投资新加坡数字心理健康供应商Intellect | English | （吉隆坡15日讯）IHH医疗保健（IHH Healthcare Bhd）对新加坡数字心理健康公司Intellect进行策略投资，旨在进一步扩大服务范围，惟投资额不详。 根据周三的联合声明，作为策略投资者，IHH将与Intellect共同为患者、企业客户和员工开发和定制数字心理健康项目。 在一个试点项目中，Intellect的产品将首先提供给新加坡鹰格医院（Gleneagles Hospital）的产科患者。 他们还计划将Intellect的解决方案扩展到IHH新加坡iXchange的企业客户和IHH员工。 Intellect成立于2019年，其平台在马来西亚、新加坡、印度和香港等20个国家/地区累计300万名用户。 Intellect提供端到端的心理健康服务，包括远程医疗指导、临床治疗、精神病学、基于自我引导的认知行为治疗计划、紧急遇险支持和心理健康筛查，可通过Intellect平台虚拟完成，也可以在Intellect诊所亲自完成。 截至早上11时47分，IHH企于5.89令吉，市值达518亿7000万令吉。 （编译：魏素雯） English version：IHH Healthcare invests undisclosed amount in Singapore's digital mental healthcare provider Intellect |
https://theedgemalaysia.com/node/672056 | Singapore central bank fines DBS, Citibank, OCBC, Swiss Life over breaches | English | SINGAPORE (June 21): Singapore's central bank on Wednesday (June 21) said it had imposed fines collectively worth S$3.8 million (RM13.1 million) on lenders Citibank, DBS and OCBC and insurer Swiss Life, for breaching requirements on anti-money laundering and countering terrorism financing. The Monetary Authority of Singapore (MAS) said it discovered inadequate controls in place when looking into the alleged involvement of Singapore-based individuals in a fraud case centred on collapsed payments firm Wirecard. Wirecard filed for insolvency in June 2020, owing creditors almost US$4 billion, after disclosing a €1.9 billion hole in its accounts that its auditor said was the result of a sophisticated global fraud. MAS imposed penalties of S$2.6 million for DBS, S$600,000 for OCBC, or Oversea-Chinese Banking Corp, S$400,000 for Citibank and S$200,000 for Swiss Life. The DBS fine is one of the largest issued by MAS for such breaches. "Although the breaches were serious, MAS did not find wilful misconduct by any staff of these FIs (financial institutions)," MAS said in a statement, adding that the institutions took "prompt remedial actions." Asked whether illicit activities had taken place involving the institutions, MAS said its checks focused on compliance with its requirements. "Whether the funds that flowed into/through the FIs were illicit monies, are under the purview of the Singapore police," the spokesperson said. OCBC said one of its customers had been implicated in the Wirecard case and it took such issues very seriously. "We have devoted significant resources to a strategic uplift of our anti-money laundering and combating the financing of terrorism standards and capabilities," an OCBC spokesperson said. MAS said Citibank had failed to understand the control structure in two of its corporate accounts, or correctly know who the beneficial owner was. Citibank has since "taken steps to strengthen our 'know your customer' process," a spokesperson said. MAS found breaches by DBS related to 11 corporate accounts and said it failed to update customers risk ratings and adequately establish the source of wealth of some higher risk customers. DBS failed to adequately inquire into the background and purpose of "unusually large transactions", it said. DBS said its lapses related to a network of customers ultimately traceable to Wirecard and it was now in a better position to respond faster and more robustly. "These transactions were part of an elaborately orchestrated scheme," the spokesperson said. "We were unable to unravel the scheme in its entirety. We acknowledge that we could have done better." A Swiss Life spokesperson said it had terminated a client relationship in 2020 after being approached by authorities about a contract. "Since then, and in close cooperation with the authorities, additional measures have been implemented within Swiss Life (Singapore) to detect client misconduct more effectively." |
https://theedgemalaysia.com/node/668588 | Revenue Group reports third consecutive quarterly net loss on lower business revenue | English | KUALA LUMPUR (May 25): Revenue Group Bhd posted a net loss of RM9.36 million for the third quarter ended March 31, 2023 (3QFY2023), from a net profit of RM4.66 million a year earlier, on lower revenue from its business activities. The is the group's third consecutive quarterly net loss. The payment solutions provider posted a loss per share of 1.94 sen versus earnings per share of one sen previously. Revenue Group said the lower revenue from its business segment was unable to cover the group’s fixed operating cost coupled with higher administrative expenses, finance costs and share of loss of results of associates. Quarterly revenue declined 55.78% to RM10.10 million from RM22.84 million in 3QFY2022, said Revenue Group in a filing with Bursa Malaysia on Thursday (May 25). For the first nine months of FY2023, Revenue Group reported a net loss of RM26.97 million, compared with a net profit of RM12.67 million in the previous corresponding period. Nine-month revenue slipped 48.19% to RM35.82 million from RM69.13 million previously. Moving forward, the group said it will continue to seek market opportunities either through business collaboration, joint venture or acquisition to strengthen its market presence, as well as improving its products and services offering to improve the group’s earnings. “The board is cautious on the lingering impact of the Covid-19 pandemic and the potential onset of global recession, and the group has since embarked on multiple initiatives in an effort to contain both the direct and indirect cost, as well as conducting strategic review on its business model and group structure in order to allow the group to remain competitive," it said. On Wednesday, the group announced the resignation of its former group chief executive officer Danny Leong Kah Chern after assuming the position for about five months. The group said Leong will continue to serve the group as its advisor effective Wednesday. Revenue Group's share price closed down two sen or 7.02% at 26.5 sen on Thursday, bringing the group a market capitalisation of RM144.25 million. The counter has fallen 61.03% so far this year. |
https://theedgemalaysia.com/node/678369 | Listicle: A week with the new Samsung Galaxy Z Fold5 | English | This article first appeared in Digital Edge, The Edge Malaysia Weekly on August 14, 2023 - August 20, 2023 The latest addition to the Samsung Galaxy Z Fold series, the Fold5, continues to captivate many users. On the outside, it looks like a regular phone, albeit thicker; once unfolded, however, the screen size doubles, creating an impressive visual experience. Although this model is the fifth iteration, the specs of the phone remain impressive. The Fold5 was launched on July 26, and Digital Edge had the privilege of trying out the phone before it hit retail stores on Aug 18. Improvements from the Fold4 are measured, with most changes being a direct response to consumer feedback, like more phone case styles for personalisation. The Fold5 focuses on refining its predecessor’s strengths. At a folded thickness of 13.4mm and a weight of 253g, it is the thinnest and lightest Fold yet, boasting a Dynamic AMOLED 2X Display for more vibrant visuals and offering ample base storage. The retail price of the Fold5 starts at RM6,799 for the basic 256GB model. It comes in icy blue, phantom black and cream. Grey and blue versions are available exclusively for online purchases. The real innovations come from the hardware and features, though. After a week of use, here are some notable ways the Fold5 stands out for us: A key innovation with the new Fold is the “teardrop hinge”, which is Samsung’s response to its competitors’ waterdrop hinges. This new hinge almost completely removes the gap when the screens are folded shut, a concern users had with previous models. The phone case even closes with a satisfying “click”, eliminating concerns of causing damage by shutting the two halves too hard. Despite constant opening and closing of the screen, the crease on the foldable screen remains largely inconspicuous. It is virtually invisible when watching a video or playing a game. Samsung has expanded its taskbar, allowing quick access to your favourite apps and the ability to switch between or even run multiple apps at the same time. The Fold5 displays up to four recent apps that users can toggle back and forth. A new feature in the Fold5’s taskbar, which will be added to older models in future updates, is the ability to copy and paste images from one app to another by dragging the item and dropping to the other app with a tap on the taskbar. This works with images from the internet or the phone’s gallery. Drag the photo with one finger, open a writing app via the Taskbar with the other, and you can drop the image there. While it feels intuitive, hiding the taskbar for full-screen viewing can feel clumsy as it requires a long hold at the bottom of the screen to hide it or bring it back. Outside of having a bigger screen to watch, read or play on, the biggest draw of all the added screen space is multitasking. Having multiple apps run at the same time allows for greater efficiency. Multitasking is as easy as before. Users can drag the app icon from either the taskbar, notifications window or edge panels, and they can run up to three applications simultaneously, thanks to the Fold5’s 7.6-inch Dynamic AMOLED display. It is impressive that it can run three heavy-duty apps at the same time with no dips in performance. Even apps that do not have built-in multitasking support work well. It is important to note that, despite having a brighter screen and new features that take up more power, the Fold5 uses the same battery as the Fold4. A day of fair multitasking saw the battery fall to 15% in about six hours, so bringing a charger for productive days is recommended. When it comes to mobile gaming, the Fold5 impresses. With the latest Snapdragon 8 Gen 2 Mobile Platform for the Galaxy, the Fold5 shows steady performance when running games. The Fold5 was able to run Genshin Impact at medium quality at a consistent 60 frames per second and Fortnite at epic quality. The added screen space when the device was unfolded made gaming more comfortable. Multitasking with gaming is impressively integrated. The Fold5 ran Genshin Impact, YouTube and a messaging app simultaneously with no negative impact on all three apps. It could even run Genshin Impact and Fortnite — which are graphically demanding games — at the same time flawlessly. The new cooling system with a 38% larger vapour chamber allows heavy games to run without heating issues. However, the phone will heat up a lot with heavy use of multitasking while playing. Samsung phones have some of the best cameras out there. The Fold5 holds its own while not reaching the heights of the high-end phones on the market. Its cameras are more than capable of capturing sharp and vivid pictures, be it for personal memories or Instagram. The main rear camera has a 50MP (megapixel) wide-angle camera. To compare, the Samsung Galaxy S23 Ultra’s Primary camera is 200MP. That 50MP camera is still sharp enough to take amazing photos with clarity that pops with the Fold5’s AMOLED 2X Display, featuring a surprising amount of detail in the shot. The Fold5’s front-facing camera is less than impressive at 4MP, making selfies look rather blurry. To counter this, the Fold5’s cover screen has a much clearer 10MP camera, which is more comparable to the S23 Ultra’s 12MP front-facing camera. While the cover camera makes up for what is lost in clarity, it loses the front camera’s wider angles. While the S Pen does not come with the Fold5, it is often bundled together. The S Pen for the Fold5 is thinner than before and can be stored easily in the accompanying phone case. Writing with the S Pen on the Fold5 is smooth, fast and easy. You can write and draw without any fear of scratching the screen. Selecting and dragging items using the multitask or taskbar systems feels natural and intuitive. Sometimes, during use, your palm may unintentionally interact with the touchscreen, which may cause issues. It takes getting used to, and some apps do support the ability to ignore unwanted interactions. 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/640270 | 续写新低 令吉兑美元贬至4.71 | English | （吉隆坡17日讯）由于美元需求强劲，令吉兑美元周一续写新低。 截至9时，令吉兑美元贬至4.7105/7135，相比上周五收盘的4.7025/7065。 肯纳格研究今日在报告中指出，由于国会解散后的国内政治不确定性，令吉兑美元继续下滑。 “由于国内政治不确定性和全球避险情绪持续，因美国联储局（FED）预计将继续激进收紧货币政策，令吉兑美元汇率本周可能继续在4.70水平之上交易。” “另一方面，技术面显示，令吉兑美元可能升0.44%至4.684。” 除日元外，令吉兑一篮子主要货币大多走低。 令吉兑英镑微滑至5.2871/2904，而上周五收盘5.2870/2915、兑欧元从4.5741/5780，跌至4.5909/5938，以及兑新元由3.3009/3042，贬至3.3024/3047。 令吉兑日元则从3.1836/1867，升至3.1708/1732。 （编译：陈慧珊） English version：Ringgit opens at new all-time low against US dollar |
https://theedgemalaysia.com/node/608434 | Battersea Emerges as Top Choice for London Investment | English | London’s status as a global property hotspot and safe haven for investment is longstanding, given its role at the epicentre of international business and finance, world-class education, and rich culture and heritage. Despite several years of uncertainty, the UK capital retains this leading position as a highly attractive investment destination, most recently topping the list as the world’s most favoured city for combined investment and development prospects for the year ahead (according to PwC and the Urban Land Institute’s 2022 Emerging Trends in Real Estate - Road to Recovery survey). With central London’s recovery on an upward trajectory, the early winners are apartments – with new data reporting a 1.1% annual price growth for flats in prime central London and 1% growth in outer prime London in 2021. The ongoing relaxation of travel restrictions – and an increasing number of daily flights into the UK - is set to further bolster interest and the capital’s recovery, with this return to the capital fuelled by buyers on the hunt for a London base. Longer-term, it is forecasted a 24% growth in values in the five years to 2026 – at which point values will return to their previous 2014 peak level for the first time – making now an ideal time for investors those looking to capitalise on the potential long-term capital growth. Stretching along the south bank of the River Thames, from Lambeth Bridge to Chelsea Bridge, the 227-hectare regeneration of the Vauxhall, Nine Elms & Battersea regeneration area – central London’s largest regeneration site – has, for several years, been one of the most talked-about projects in the capital. The centrepiece of this new neighbourhood is Battersea Power Station, an iconic Grade II* landmark of London’s cityscape, which is being transformed into a thriving hub to live, work, shop, eat and enjoy. This exciting evolution of the area is also drawing in global powerhouses of business, with Apple is set to open a new campus at Battersea Power Station itself, and the US Embassy and Penguin Random House both located in wider Nine Elms. Most recently, the opening of the much-anticipated Northern Line Extension, which saw the opening of two new Underground stations – Battersea Power Station and Nine Elms – has solidified the area’s status as one of London’s most sought-after residential and business districts. Representing the capital’s first major tube extension this century – and the first time Battersea has had a tube connection – the new openings significantly boost the area’s connectivity. With London home to a host of the best respected universities in the world – a key driver for many international property investors – residents of Battersea and Nine Elms are now even better placed for access to academic institutions including University College London, London School of Economics and King’s College London. Whilst it might be famed for the imposing Battersea Power Station, what this leafy Thames district is perhaps most renowned for is its abundance of verdant green spaces, access to which is all the more important since the onset of Covid-19. The beautiful and historic Battersea Park, which spans 200 acres and sits along the riverfront, provides not just a park but home to a variety of sporting facilities, outdoor pursuits and even a zoo. With Battersea and Nine Elms fast emerging as the go-to hotspot for global investors, leading property developer, St William, part of the Berkeley Group, has brought forward an exciting new addition to the area: Prince of Wales Drive. In a prime position neighbouring Battersea Park – and the closest new development to the new Battersea Power Station Underground Station – Prince of Wales Drive brings together exceptional new homes, luxurious residents’ amenities and 2.5 acres of landscaping and green open space, all on the doorstep of everything the revitalised Battersea Power Station has to offer. The final phase of this exclusive new address is Upper Park Residences, where prices start from £785,000. Encompassing an exceptional range of one, two, three and four-bedroom apartments with spectacular views over neighbouring Battersea Park, the River Thames, Battersea Power Station, and across the skyline to the City of London. To date, St William has unveiled the first two buildings within Upper Park Residences – the 22-storey Park East, and Park Central, a striking 27-storey campanile tower which establishes a bold centrepiece for Prince of Wales Drive. With just two apartments to each floor within Park Central, and just one residence to the upper floors, homes enjoy ultimate privacy as well as far-reaching wraparound views. Inside, the spacious apartments are designed to maximise space and light, with floor-toceiling glazing and flexible interior layouts. Every home at Prince of Wales Drive boasts private outdoor space in the form of a balcony, with many featuring winter gardens to maximise living space. Residents also enjoy access to an impressive suite of private facilities, including The 1882 Club – a collection of hotel-style residents’ amenities including a games area, karaoke room, music room and library, as well as a private cinema room and more relaxed viewing rooms – which are privately bookable for residents’ enjoyment. In addition, responding to the rise of flexible working, hot desk workspaces, pod rooms and a boardroom are available for those working from home. A luxurious 24th floor bar and lounge offers near-panoramic views across the capital, a beautifully curated space that seamlessly transitions from tranquil daytime retreat above the city to lively evening cocktail bar, while residents’ wider lifestyle and wellbeing needs are well catered for with a 24-hour concierge, private pool and spa, public gym facilities and 8th floor roof terrace Now, investors in Malaysia are being offered an exclusive opportunity to hear more about Prince of Wales Drive. Hosted by Red Bean Consultancy on Saturday 5th and Sunday 6th March between 11am and 5pm, at Four Seasons Hotel Kuala Lumpur. There will be a special London Investor Seminar “ Why, How & Where?” at 2pm on both days. Please contact Ms Shelvin Tan at +6012 285 7618 to register for the event and receive a free copy of the latest London Buyer’s Guide. |
https://theedgemalaysia.com/node/649913 | China tightens reins on edtech in new blow to private tutors | English | (Dec 29): China will further tighten oversight over its battered online education sector, in a clear signal that Beijing’s not yet prepared to unshackle the private tutoring arena despite loosening curbs on tech giants. Edtech companies plunged after the Ministry of Education published a new set of restrictions that limit the fees and operating times of private tutoring services for primary and middle school students. Firms offering non-curricular tutoring will be required to end physical classes by 8.30pm and online sessions by 9pm, while limiting one-time charges to 5,000 yuan (US$720) and mandating a special trust account with state-designated banks for pre-paid fees. Scholar Education Group fell as much as 30% in Hong Kong on Thursday — the biggest fall since last July, when Beijing first rolled out sweeping curbs that decimated a once-thriving US$100 billion sector. New Oriental Education dropped 9.3% at one point, with similar or sharper declines from peers including Virscend Education Co, China Education Group and Hope Education Group. The new policies further pummel private education services, which have struggled since the government’s surprise move last year to ban those companies from making profits, raising capital, or going public. The latest restrictions from Beijing, which has labelled the sector “broken” and “hijacked by capital”, appear in line with Xi Jinping’s broader objective of reining in China’s increasingly powerful private sector. Thursday’s proclamation echoed some of the phraseology employed during 2021’s clampdown. Among other things, tutoring firms that want to list shares will be subject to a strict regulatory review to avoid “barbaric growth” of the industry. In a document issued by 13 agencies, including the nation’s top securities regulator, the government pledged to address outstanding issues in the quality, safety, standards and pricing of tutoring services to alleviate household financial burdens. Tutoring firms will be required to meet the new regulatory standards by June 2023 or face “serious consequences”. “It is necessary to clarify the non-curriculum tutoring organisation’s domestic and overseas market standards and processes, to strictly control the gates, and to do a good job in regulatory supervision and guidance to prevent barbaric growth,” the agencies said. The curbs come even as Xi’s administration has shown a willingness to dial back a longstanding clampdown on tech giants to galvanise economic growth, including by resuming game licenses for Tencent Holdings Ltd and Netease Inc. Nearly three years of punishing Covid Zero restrictions have hobbled swaths of the world’s No 2 economy, and a sudden reversal towards reopening suggested officials are keen to push for a recovery. China’s education technology sector grew into a US$100 billion juggernaut as companies catered to parents seeking to give their children every advantage. That explosive expansion drew billions from the likes of Alibaba Group Holding Ltd and Tencent, as well as global investors like Temasek Holdings Pte and Tiger Global Management. But a backlash mounted against firms that employed hard-sell tactics to guilt parents into paying high sums for after-school tutoring. Many experts criticised the proliferation of costly online classes for a variety of social ills from poverty and disillusioned youth to a rapidly falling birth rate. All that coincided with Beijing’s growing desire to assert control over an economy increasingly powered by data-rich internet firms, which culminated in the historic internet industry crackdown of 2021. Many of China’s most prominent online tutoring firms have since either shut, downsized or pivoted to alternative businesses including — famously — livestreaming. |
https://theedgemalaysia.com/node/668478 | Heatwave spells trouble for ringgit bonds as food prices to soar | English | (May 25): A stuttering rally in Malaysian government bonds may run into another roadblock as a heatwave sweeping across Southeast Asia threatens to drive up inflation. Benchmark yields are likely to face further upward pressure if faster price gains prompt Bank Negara Malaysia to tighten policy again. Turbulence in Treasuries fuelled by the prospect of a US default may also stoke volatility in the near term. Inflation risks “may be coaxing a few to punt that BNM could hike again”, said Philip McNicholas, Asia sovereign strategist at Robeco Group in Singapore. If dollar strength resumes, another hike is possible as “recent GDP and BoP data signalled Malaysia’s dissaving trend persists, so the only way to shore up the FX and adjust saving behaviour would be a hike”. The odds are stacked against ringgit bonds after the central bank warned that inflation may flare up again, with commodity prices and an impending reduction in domestic subsidies among the key drivers. Global funds halted a five-month buying spree in Malaysian sovereign debt in April amid uncertainty over the US interest-rate outlook. Investors have turned cautious about ringgit bonds after pushing 10-year yields to the lowest since March 2022 earlier this month on bets that borrowing costs may have peaked. The shift in sentiment comes as authorities warn that the ongoing hot weather may hit the nation’s food supplies. Malaysia’s food inflation “certainly” faces an upside risk from the scorching temperatures that are expected to last until August, according to Moody’s Investors Service, which thinks that another rate hike is possible. Economists expect a report due Friday to show that the nation’s annual consumer-price growth eased to 3.3% in April from 3.4% in March. Bank Negara Malaysia has delivered five rate hikes in the past year, with the latest increase taking place on May 3 as policy makers sought to ward off the risk of financial imbalances. Still, not everyone thinks rates are headed higher. Australia & New Zealand Banking Group Ltd expects authorities to deploy fiscal and administrative measures instead to tackle any increase in prices. “The ringgit bond market has one of the most constructive local supply-demand dynamics, which we expect to continue anchoring yields amidst a volatile global rates backdrop,” said Jennifer Kusuma, senior Asia rates strategist at ANZ. The bank is “mildly constructive on the shorter-dated segment up to the 5-year, where we see the balance of risks around yields as tilted to the downside” as the central bank stands pat for the rest of the year. For its part, Maybank Securities Pte thinks that the gains in Malaysian bonds may have run their course for now, although 10-year yields are likely to drop to 3.5% by year-end from around 3.8% now. “It requires some external drivers e.g. a stabilisation in US Treasuries for investors to regain confidence and resume the rally,” said Winson Phoon, head of fixed-income research at Maybank Securities. “I reckon a good buy on dip demand to cap or slow yield increases, but a rally would require stronger catalysts.” |
https://theedgemalaysia.com/node/664834 | Filings show Mitsui acquired 23% stake from LGMS co-founders to form strategic partnership | English | KUALA LUMPUR (April 27): LGMS Bhd has formed a strategic partnership with Mitsui & Co Ltd, resulting in the Japanese conglomerate taking up a 25% stake in the ACE Market-listed cybersecurity firm. Mitsui emerged as a substantial shareholder on Wednesday (April 26), after it acquired 23% of LGMS from its co-founders — executive chairman Fong Choong Fook and his wife Goh Soon Sei. LGMS’ filings with Bursa Malaysia on Thursday showed that the duo divested 104.88 million shares pursuant to a sale and purchase agreement with Mitsui for strategic partnership purposes. Prices of the transactions were not disclosed. According to Bloomberg data, LGMS saw 104.88 million shares traded off market in two tranches, one being 80.74 million shares and the other 24.14 million shares, with both transacted at RM1.10 apiece, a 1.8% discount to the group’s RM1.12 closing price on Wednesday. LGMS said the partnership is to broaden and deepen its footprint throughout the Asia-Pacific region. “The partnership will leverage the expertise of LGMS' highly skilled cybersecurity professionals, and Mitsui's extensive global network and experience in the cybersecurity industry,” the statement read. Mitsui general manager of digital solution business division John Kenichi Kogiku said LGMS’ cybersecurity talent is capable of providing advanced penetration testing and other security services to various enterprises, including major businesses and government bodies. “Companies need skilled cybersecurity professionals to protect their information systems and assets from cyberattacks and other threats, but the global shortage of qualified personnel has become a societal issue given the rapid increase in cybercrime,” he said. “Mitsui's emergence as a substantial shareholder of LGMS would result in a partnership that provides ‘world-class’ levels of professional cybersecurity services to the entire region,” said Fong, adding that LGMS would continue investing in advanced cybersecurity research and development, talent building and intellectual property creation to meet growth targets. Both parties said the immediate initiatives in the pipeline following this partnership include rolling out LGMS’ e-payment compliance solution for e-commerce merchants throughout the region. At noon market break, shares in LGMS were trading nine sen or 8% higher at RM1.21, giving it a market capitalisation of RM551.76 million. The stock was the third largest gainer across all Bursa securities, with a trading volume of 8.57 million shares. Read also:
LGMS jumps 27.68% after Mitsui emerges as substantial shareholder
Mitsui emerges as LGMS’ substantial shareholder with 25% stake |
https://theedgemalaysia.com/node/644911 | PMHoldg, ASB, MUIInd, MUIProp, PMCorp, Picorp, Thriven | English | KUALA LUMPUR (Nov 21): theedgemarkets.com highlighted seven stocks with negative momentum at Bursa Malaysia's afternoon close on Monday (Nov 21). The stocks with negative momentum were: Advance Synergy Bhd – up four sen or 36% at 17 sen Malayan United Industries Bhd – up one sen or 11.11% at 10 sen MUI Properties Bhd – up 0.5 sen or 2.63% at 19 sen Progressive Impact Corp – up 0.5 sen or 2.70% at 19 sen Pan Malaysia Corp Bhd – up 0.5 sen or 2.63% at 19 sen Pan Malaysia Holdings Bhd – up 0.5 sen or 5.88% at nine sen Thriven Global Bhd – up one sen or 10.34% at 16 sen The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum. This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements. The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time. 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/601275 | Cover Story: Government Finances: Expanding the government’s purse for the country’s well-being | English | This article first appeared in The Edge Malaysia Weekly on December 27, 2021 - January 2, 2022 WHEN The Edge wrote about Malaysia’s debt spiral in January 2018 — detailing how federal government debt had surged because annual spending in excess of revenue (budget deficit) had taken only seven years to double from about RM20 billion a year in the early 2000s to RM40 billion by end-2017 — the intent was to highlight the need for fiscal reforms to strengthen government finances to deal with an increase in rising spending needs as society ages. Since then, we, the people, have discovered more details on gaps in governance that allowed the signing of lopsided public agreements that disadvantaged the government as well as the creation of 1Malaysia Development Bhd (1MDB), which borrowed billions that ended up being stolen instead of benefitting the people. Incidentally, for next year and 2023, Malaysia will have to cough up more money to pay for unproductive debt taken by 1MDB because not enough assets were recovered to pay for all the borrowings taken — principal and interest for 1MDB debt are RM16.2 billion in 2022 and RM13.3 billion in 2023. As at end-September 2021, there was only RM15.3 billion in the 1MDB asset recovery fund versus RM39.3 billion outstanding debt and interest. Even before Covid-19, the excess spending on top of revenue earned (absolute size of budget deficit) had ballooned from RM40 billion-levels in 2017 to RM50 billion-levels in 2018 and 2019. The necessary spending to counter the devastating effects of the pandemic on the lives and livelihoods of the people and the survival of businesses bumped up the amount the government had to spend in excess of what it earned to RM87.64 billion in 2020. The amount of “excess spending” is currently estimated at RM98.78 billion for 2021 and has been budgeted at RM97.5 billion for 2022. As a percentage of GDP, the fiscal deficit doubled from 3%-levels to as high as 6.5% of GDP in 2021 and is currently projected to be 6% of GDP for next year. To be sure, the government is right in its counter-cyclical spending decision in the face of the crisis, prioritising the people over the country’s sovereign credit rating during these extraordinary times. Yet, as government revenue also fell in tandem with rising expenditure during the pandemic, the federal government is forced to take on more debt — causing direct federal government debt to jump more than RM300 billion in less than four years. Direct federal government debt surged from RM686.8 billion as at end-2017 to RM879.56 billion as at end-2020 and rose further to reach RM969.34 billion as at end-September 2021. The RM1 trillion debt level is likely to be breached within the first half of 2022 and reach almost RM1.08 trillion at the end of the year, our back-of-the-envelope calculations show. As a result, debt service charges — basically interest payment on direct federal government debt — had risen from RM27.9 billion in 2017 to RM34.5 billion in 2020. This is projected to amount to RM39 billion for 2021 and RM43.1 billion in Budget 2022 — 18.4% of RM234 billion, which is the federal government’s expected revenue for next year. Malaysia used to target to keep debt service charges below 15% of its revenue. To continue following this rule, the federal government would need to have RM287 billion in revenue — RM53 billion more than the projection for 2022 — or cut direct federal government debt by roughly RM200 billion to trim debt service charges by RM8 billion. Reality, however, is a lot more complicated than simple maths. Simple logic, however, says the government needs more revenue — especially if it cannot cut any of its annual recurring operating expenses and reduce its financial obligations. As Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz lamented to editors present at his pre-Budget 2022 briefing, easily 80% to 90% of operating expenses are “fixed”. That means that unless reforms can be made to expand the government’s fiscal space, the minister would continue to have his hands tied — even if the government very much wanted to do more for people and businesses. The Edge has previously written about the possibility of the government pooling together all its assets from various institutions to create a large-enough fund-size that can generate a sizeable investment income to supplement the annual federal government budget. Singapore’s annual budget, for instance, has benefitted from the Net Investment Returns Contribution (NIRC) since 2000. Malaysia is fortunate to have dividends from Petroliam Nasional Bhd but, obviously, more needs to be done on this front. While the government has tapped funds set aside in the National Trust Fund (KWAN) and the Retirement Fund Inc (KWAP), simple maths will show that withdrawals cannot be large because the funds, in their current form, are simply not big enough to mirror what Singapore has. A reform of the country’s growing public pension obligation has also been looked at for years without much change because a wrong move is akin to political suicide. The same can be said for the reintroduction of a broad-based consumption tax, be it the Goods and Services Tax (GST) or Value Added Tax (VAT), even though many economists see the move as likely to improve government finances significantly going forward. The pandemic had forced the government to update its database on the hardcore poor as well as others in vulnerable groups who need aid to be given out quickly in a disaster. This database would come in handy when the government wants to provide targeted subsidies to cushion the impact of any rise in the cost of living from the introduction of a broad-based consumption tax — one of the lessons from Malaysia’s failed implementation of the GST. Malaysia has only nine years before it becomes an ageing nation in 2030. If fiscal reforms are not made early enough to broaden and shore up its revenue base, the government may find itself even more hard-pressed than during the Covid-19 pandemic. 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/669235 | JPMorgan builds unit for world’s richest families in wealth bet | English | (May 30): JPMorgan Chase & Co has quietly built a global unit focused on catering to the ultra-wealthy and their investment firms as it looks to expand services to the world’s super-rich. Created just before the pandemic and led by JPMorgan veteran Andy Cohen, the business now includes about three dozen people in the US, Asia and Europe and works closely with the New York-based firm’s investment and private banks. The unit is called 23 Wall, a nod to the location of the bank’s former Manhattan headquarters opposite the New York Stock Exchange. It focuses on about 700 families worth more than US$4.5 trillion (RM20.7 trillion), according to Cohen. “We built this from the ground up,” Cohen, 56, executive chairman of JPMorgan Global Wealth Management, said in an interview from the company’s London office. “We will continue to grow.” Global banks are vying for a greater share of the wealth created in recent years, helping to drive fierce competition for the world’s biggest fortunes. JPMorgan’s private bank opened 40,000 new accounts in the past 10 weeks, and last year added about one new client a day with assets of US$100 million or more, Mary Erdoes, chief executive officer of asset and wealth management, said last week at the firm’s investor day. Goldman Sachs Group Inc is also expanding its private-banking services and focusing more on family offices, while Citigroup Inc. opened new private-banking offices last year as part of plans to boost returns. The move shows how the largest banks are responding to the growing sophistication in the way the world’s richest individuals and families manage their wealth. They’re increasingly choosing to do so through family offices, loosely regulated money managers that typically cater to a single or a handful of major fortunes. “My specific charge is with large, multinational families and family offices,” said Cohen, who joined JPMorgan more than two decades ago. “They have institutional needs.” Michelle Chen, a former senior China technology banker at JPMorgan, shifted teams in February to lead 23 Wall’s efforts in north Asia. The firm is tapping external talent as well, recruiting UBS Group AG veteran Henry Knapman in London last year and former Banco Bilbao Vizcaya Argentaria SA executive Gabriel Bochi in 2021 to focus on Latin American clients. Cohen runs 23 Wall in partnership with other JPMorgan wealth executives and operates his team of relationship managers and investment professionals across a dozen cities in six nations, including Paris, Hong Kong and San Francisco. About half of its clients are US-based. The unit doesn’t have a minimum wealth threshold, but it clearly caters to the richest 0.01%. “Our typical clients have portfolios of public and private assets, real estate and a vested interest in community and philanthropy, all with an ever-increasing interest in private deals,” Cohen said. Accelerating inflation and rising interest rates have caused financial strains for investors globally, but many members of the ultra-wealthy are seeing their fortunes grow in 2023, largely driven by surging technology valuations in the US. The world’s 500 richest people have added about US$500 billion to their combined net worth this year, according to the Bloomberg Billionaires Index. Many family offices are now looking to funnel that cash into public and private equities, with Stanley Druckenmiller’s Duquesne Family Office and David Tepper’s Appaloosa Management recently loading up on stocks benefiting from a boom in the artificial intelligence sector. “We have a robust pipeline of demand,” Cohen said. Cohen, an Australian native who joined JPMorgan in 1999, previously led the company’s international and Asia private banks before taking on his current role. He said the idea for 23 Wall stemmed from a conversation in 2019 with CEO Jamie Dimon and Erdoes. He initially led the unit from Hong Kong, but later relocated to London. Even though JPMorgan left its premises at 23 Wall Street decades ago, with the site used these days mostly for special events, Cohen takes a broader view on his unit’s title. “The name reflects the firm’s rich heritage,” he said. “We wanted to choose a name that represented our two centuries of contribution to global business.” |
https://theedgemalaysia.com/node/632058 | Ringgit holding up against peers, swing impact on food inflation ‘quite small’ — BNM | English | KUALA LUMPUR (Aug 12): The weaker ringgit against the US dollar has had little impact on the rising food prices, which pushed up inflation to a 12-month high of 3.4% in June, according to Bank Negara Malaysia (BNM) governor Tan Sri Nor Shamsiah Mohd Yunus. Speaking at the press conference during Malaysia's second quarter of 2022 (2Q22) economic data release, the central bank governor also pointed out that the local note was holding up well against the currencies of its trading partners, with a 0.1% decline against the nominal effective exchange rate (NEER) in 2Q22. “At the aggregate level, the pass-through [of the ringgit exchange rate] to the broader consumer price index (CPI) was still quite small relative to global commodity prices,” Nor Shamsiah said. Nor Shamsiah gave the example of wheat, of which 20% of the increase in prices was contributed by the ringgit exchange rate, while it had a smaller impact of 8% on apples. Other factors included logistic costs, labour costs, and weather conditions, to name a few. Malaysia’s CPI rose year-on-year (y-o-y) to a 12-month high of 3.4% in June, from 2.8% in May, led by a 6.1% y-o-y increase in food prices, followed by transport (5.4%), and restaurants and hotels (5.4%). Aside from supply chain disruptions and rising demand, the global inflation narrative was also clouded by the elevated commodity prices, including a 30% increase in crude oil prices and a 155% rise in coal prices so far this year. Meanwhile, the central bank governor reiterated that the performance of the local currency was still stable relative to that of its key trading partners, which form the NEER basket of currencies. In 2Q22, the ringgit depreciated 0.1% against the NEER. Against the greenback, the local currency declined 4.6% in the period, as opposed to the Singapore dollar versus the US dollar (-2.7%), Indonesian rupiah (-3.5%), and yuan (-5.2%). The ringgit also depreciated 2.21% against the Singapore dollar in the quarter, and touched a new record low of 3.2517 on Aug 11. At the time of writing on Friday (Aug 12), the local currency was trading at 4.4400 against the US dollar, and 3.2415 against the Singapore dollar, although it was stronger at 5.4162 against the pound, and 4.5797 against the euro. “We are in an environment of a strong US dollar. With the US Federal Reserve’s increase in interest rates, all other currencies have depreciated [against the greenback]. “[The ringgit] cannot be much stronger than [the currencies of] our trading partners, because that affects our competitiveness also. We have to move away from our fixation towards bilateral exchange rates, and one way is to look at the NEER,” Nor Shamsiah said. Read also:
BNM: Malaysia 2Q GDP grows 8.9% y-o-y
BNM maintains GDP growth forecast of 5.3%-6.3% despite stronger-than-expected 2Q
Targeted subsidies can be rolled out when inflation is tamed, says BNM
Aggressive monetary policy would disrupt ongoing economic recovery, says BNM
Bank ownership grandfathering rule under Bafia only applies to specific shareholders, says BNM |
https://theedgemalaysia.com/node/673248 | Singapore’s star banker creates a succession dilemma for DBS | English | (July 3): For more than 13 years, Piyush Gupta has led one of Singapore’s most iconic institutions, the bank that helped turn the Southeast Asian city-state into one of the richest countries in the world. In his time as chief executive officer at DBS Group Holdings Ltd, Gupta has built the lender into Singapore’s largest listed company, moved early into wealth management and other key business areas and delivered equity returns that outstrip global peers. Now, that very success is creating an elephant in the room. At conferences, shareholder meetings and townhalls, people who watch the bank closely are quietly asking the same questions: Who’s going to replace the 63-year-old executive when his long stint ends? When will that happen? And will they be able to emulate his run? Even after a recent series of online banking disruptions angered retail customers, industry observers say Gupta’s record is intact — and the bank’s biggest challenge is finding his successor. “These issues should have no bearing on Piyush’s legacy, nor are they unique to DBS,” said Vikram Pandit, who was CEO of Citigroup Inc from 2007 to 2012 and overlapped with Gupta at the US bank. “It’s always hard to imagine how a new leader can step into the shoes of a highly successful predecessor,” he said. “But great CEOs and institutions have well-defined succession plans.” It’s a textbook example of the phenomenon known as key-person risk, a reminder that companies must be ready for when a longtime chief departs. And there’s much more at stake than just the share price: So integral is DBS to Singapore that how it solves the puzzle matters to the city-state as a whole. Gupta is in many ways the Jamie Dimon of Singapore, the highest-profile banker leading the country’s largest lender and surrounded by succession speculation. And while DBS says Gupta isn’t going anywhere, the bank has been making moves that some see as precursors to eventually passing the baton. In February, DBS unveiled a major leadership reorganisation, ensuring the four people earmarked as internal candidates for the top post hold some of the most important jobs. Shee Tse Koon, the then Singapore country head, took over consumer banking and wealth management, the No 2 revenue-generator. Han Kwee Juan, who Gupta hired from Citi in 2019, moved into Shee’s old role. Lim Him Chuan, 54, the longest-serving of the four, relocated to Singapore to replace Han as group head of strategy and planning. The fourth, and the only woman, Tan Su Shan, kept her position running institutional banking, DBS’ crown jewel. Tan, 55, is credited with expanding the consumer and wealth business, which accounted for about a third of pretax profit by the time she moved to her current job in 2019. Shee, 53, spent more than two decades at Standard Chartered plc in London, Dubai and as CEO for Indonesia. Han, also 55, worked at Citi for 27 years, running businesses including treasury and markets, corporate and investment banking and cash management. And Lim previously ran the Taiwan unit for almost five years, while also holding roles in areas including institutional banking. People familiar with the matter say there’s no clear favorite to inherit Gupta’s 45th-floor office at the Marina Bay Financial Centre, the bank’s headquarters overlooking Singapore’s waterfront. Hiring an outsider also can’t be ruled out, the people said, asking not to be identified discussing private information. “A departure without a clear succession plan and new leader seen to be able to execute strongly may negatively impact the stock,” said Kevin Kwek, a former analyst at Sanford C. Bernstein who covered banks including DBS for more than a decade. Still, he says any selloff would be temporary because the “bench is prepared well” and Gupta “has already gotten the hardest part done.” DBS has been preparing for Gupta’s succession for about 10 years, according to a person familiar with the matter. The bank is looking for someone who can do things differently going into the next decade as technologies such as artificial intelligence increase in importance, the person said, asking not to be identified discussing confidential information. “DBS has deep bench strength and is committed to grooming talent from within,” said Karen Ngui, a spokeswoman for the bank. The February reshuffle “testifies to that,” she said. “At present, Piyush has no plans to retire, and any speculation on potential CEO candidates is thus premature.” DBS was founded in 1968, three years after Singapore was expelled from Malaysia and became an independent country. It was called Development Bank of Singapore, a nod to the role it was expected to play in financing the nation’s emerging industries. DBS went on to lead the initial public offerings of some of Singapore Inc’s iconic companies, including Singapore Airlines Ltd in 1985 and Singapore Telecommunications Ltd in 1993. Today, it’s Southeast Asia’s largest bank by assets, with about 36,000 employees in 19 markets. Its city-state home is also thriving. Singapore’s gross domestic product per capita, based on purchasing power parity, ranks third in the world at US$133,890 (RM624,932), according to the International Monetary Fund. When Gupta joined as CEO in November 2009, things weren’t going so well for DBS. His predecessor, Richard Stanley, had died of leukemia 11 months into the job. Under Jackson Tai, the chief before Stanley, the bank had suffered losses on collateralised debt obligations, along with its Singapore peers. Efforts to expand into emerging economies, a key ambition for Singapore banks stuck in a small local market, had also stalled. India-born Gupta, who had spent 27 years at Citi and is known for having hands-on experience in many parts of the industry, quickly made changes. One early decision was to beef up transaction banking, a combination of cash management and trade finance that Gupta knew well from his time at Citi. Another was to strengthen wealth management, including through the 2014 acquisition of Societe Generale SA’s Asian private banking arm. The strategy both foresaw and accelerated Singapore’s development as a wealth management hub, the Switzerland of Southeast Asia. In both categories, Gupta built DBS from a low base into a major player in Asia. Both, in turn, strengthened DBS’ advantage at home. Gupta — a charismatic figure who became a Singapore citizen in 2009 — also started to focus more on technology. This included hiring more engineers and building the bank’s digital offerings. DBS has been investing about S$1 billion annually in technology over the past decade in areas such as cloud computing and artificial intelligence. In 2021, it was named the world’s best digital bank by Euromoney, a trade publication. The next year, Harvard Business School published a case study on areas including its embrace of digital technology. But in 2021, DBS suffered its worst outage in a decade, when its online banking services experienced disruptions during the period from Nov 23 to Nov 25. In March and May this year, two more incidents angered customers and drew punishment from the regulator. After the May episode, the Monetary Authority of Singapore imposed an additional capital requirement and said the inconvenience caused was “unacceptable.” Despite vocal public criticism, analysts were largely sanguine. While Kwek said the outages raised some questions about the causes and how to fix them, he thought they weren’t due to Gupta scrimping on IT spending. Gupta’s track record may provide some explanation for this reaction. Under him, DBS increased return on equity to 15.7% as of March, up from 8.1% in September 2009, just before he took over. HSBC Holdings Plc’s ROE is 13%, Standard Chartered’s is 5.9%, while Citi’s is 7.6%, according to data compiled by Bloomberg. DBS’ stock has gained 141% since the start of November 2009, the month in which Gupta became CEO, compared with a 21% increase for Singapore’s benchmark Straits Times Index. It trades at 1.4 times book value, versus 1.1 times for Oversea-Chinese Banking Corp and 1 time for United Overseas Bank Ltd, its two local peers. It became Singapore’s largest listed stock in 2017, overtaking Singtel, and its market value is now about S$81 billion. On the digital outages, Gupta argued the bank’s infrastructure is robust in an interview with Yousef Gamal El-Din at the Dubai FinTech Summit in May. He said penalising people every time something goes wrong works against building a culture of risk-taking. “I do think the series of digital disruptions will taint Piyush’s legacy,” said Sarah Jane Mahmud, a Bloomberg Intelligence analyst. “It will be hard to come back from this anytime soon.” Another criticism of Gupta’s tenure is DBS is still too reliant on Singapore after his years in charge. As of 2022, the city-state contributed close to 65% of the bank’s revenue, broadly similar to when he started. Under Gupta, DBS made acquisitions in India and Taiwan but failed to buy PT Bank Danamon Indonesia in 2013. That may set DBS back by five years in Southeast Asia’s largest economy, he said at the time. DBS spokeswoman Ngui said the bank is growing fast both in Singapore and overseas, and this is a sign of strength. Tony Fernandes, who turned around budget airline AirAsia, focuses on the positives. He’s “an all-star banker,” said Fernandes, who’s known Gupta since 2003 when the banking executive was Citi’s head for Malaysia. Gupta will stick by clients in tough times, rather than being swayed by short-term risk management, he said. He’s speaking from experience. Like many airlines, AirAsia got into difficulties during the pandemic. “In many cases, it’s risks that run the banks,” Fernandes said. “Piyush has a slightly different opinion.” Fernandes, himself preparing to step back at AirAsia, said there’s no indication Gupta will retire anytime soon, and DBS won’t be badly affected when he does. But he said a good leader knows when the time has come. For watchers of Singapore’s biggest bank, the question then will be whether his successor measures up. |
https://theedgemalaysia.com/node/623138 | Trading of shares of Gamuda, KPS, Litrak suspended from 3.20pm to 4.20pm | English | KUALA LUMPUR (June 8): Trading of shares of Gamuda Bhd, Kumpulan Perangsang Selangor Bhd (KPS) and Lingkaran Trans Kota Holdings Bhd (Litrak Holdings) was halted from 3.20pm to 4.20pm on Wednesday (June 8) as these companies announced that the draft share sale and purchase agreements' terms and conditions for the proposed sale of their expressway concession companies to Amanat Lebuhraya Rakyat Bhd (ALR) have been finalised. "Your attention is drawn to Gamuda's/KPS' and the company's (Litrak Holdings) announcement(s) dated June 8, 2022," Gamuda, KPS and Litrak Holdings said in separate Bursa filings. Gamuda, KPS and Litrak Holdings share prices rose on the news when trading resumed. At 4:21pm, Gamuda climbed three sen or 0.85% to RM3.55, while KPS added 0.5 sen or 0.66% to 76.5 sen. At 4:22pm, Litrak Holdings rose eight sen or 1.71% to RM4.76. Gamuda owns a 42.8% stake in Litrak Holdings, according to Gamuda’s filing. For the full report, please read: Gamuda finalises four highway disposal draft agreement for proceeds of RM4.5 bil |
https://theedgemalaysia.com/node/657034 | Pharmaniaga, Maybank, Public Bank, RHB Bank, Affin Bank, TNB, FGV, MyEG, UMW, Velesto, OSK and PT Resources | English | KUALA LUMPUR (Feb 27): Here is a brief recap of some corporate announcements that made news on Monday (Feb 27) involving Pharmaniaga Bhd, Malayan Banking Bhd, Public Bank Bhd, RHB Bank Bhd, Affin Bank Bhd, Tenaga Nasional Bhd, FGV Holdings Bhd, MyEG Services Bhd, UMW Holdings Bhd, Velesto Energy Bhd, OSK Holdings Bhd and PT Resources Holdings Bhd. Pharmaniaga Bhd announced its largest ever quarterly net loss of RM664.39 million, or 49.19 sen per share, in the fourth quarter ended Dec 31, 2022 (4QFY2022) as a result of RM552.3 million of impairment of Covid-19 vaccines. In addition, it has written down the goodwill of the Indonesian manufacturing cash-generating units of RM50.3 million. Meanwhile, its board of directors announced that Pharmaniaga has become an affected listed issuer under Practice Note 17 (PN17) on the basis that Paragraph 2.1(a) of PN17 has been triggered in the company’s audited consolidated financial statements for the period ended Dec 31, 2022. Quarterly revenue, however, grew 21.22% to RM862.72 million from RM711.72 million a year earlier due to “healthy growth” across the group’s concession, non-concession and Indonesian businesses as a result of strong demand from the customers subsequent to the resumption of normal business activities after the Covid-19 pandemic. The increase in revenue was partially offset by the lower revenue from the sale of Covid-19 vaccine, said the group, citing the reason as “the country is entering into the endemic phase”. Malayan Banking Bhd recorded a 5.4% growth in net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022), as growth in net interest income and other operating income more than offset headwinds from higher provisions, impairments and overhead expenses. It declared a second interim cash dividend of 30 sen. Net profit for 4QFY2022 rose to RM2.17 billion or 17.98 sen per share from RM2.06 billion or 17.32 sen per share a year ago, driven by a 15% growth in net interest income to RM3.52 billion from RM3.06 billion. Public Bank Bhd’s net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) grew 24.1% to RM1.71 billion or 8.83 sen per share from RM1.38 billion or 7.11 sen per share in the same quarter last year, as revenue rose 24.79% to RM6.06 billion from RM4.86 billion. It declared a third interim dividend of five sen per share, payable on March 22. RHB Bank Bhd, which reported a return on equity (ROE) of 9.7% for the financial year ended Dec 31, 2022 (FY2022), is confident of achieving its target of an 11.5% ROE by FY2024, on the back of higher gross fund-based income. For FY2023, RHB expects to grow its net fund-based income at a measured pace, as funding costs continue to be impacted by deposit competition. The bank recorded a 22% increase in net profit to RM772.11 million for the fourth quarter ended Dec 31, 2022 from RM631.16 million a year earlier, due to the absence of modification loss, as well as significantly lower allowances for credit losses on financial assets. Revenue for the quarter grew 36% to RM3.95 billion from RM2.89 billion previously. Affin Bank Bhd’s net profit shrank by a third to RM138.26 million for the fourth quarter ended Dec 31, 2022 (4QFY2022) due to a sharp rise in taxation to RM86.69 million versus RM3.45 million a year ago. The bank made a net profit of RM206.85 million in the prior year's corresponding quarter. Quarterly revenue also slipped marginally to RM566.7 million from RM572.1 million in 4QFY2021. Despite lower earnings, the bank has declared a final dividend of 7.77 sen per share. Tenaga Nasional Bhd’s net profit dropped 7.83% to RM809.1 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM877.8 million a year ago. Its net profit was dragged by higher finance cost and tax expenses, but was offset by the higher foreign currency translation gain in the current quarter. Quarterly revenue, however, increased 3.1% to RM12.92 billion, from RM12.53 billion, thanks to higher sales of electricity. It has declared a final single-tier dividend of 26 sen per share, with the payment date to be announced in due course. FGV Holdings Bhd expects to resolve the issue of labour shortage at its oil palm plantations by the third quarter of this year, and hopes this will help to boost production and expedite its replanting programme. Its chief executive officer Datuk Nazrul Mansor said the group is recruiting another 5,000 foreign workers this year. Last year, it brought in 10,000 workers which helped to bring down the labour shortage to 13% from 32% in 2021. Nazrul said FGV could see its fresh fruit bunches production rise by between 10% and 15% in FY2023 as it resolved the worker shortages at its estates. Separately, for the fourth quarter of FY2022, FGV reported a 27.4% decline in net profit to RM337.71 million from RM465.09 million in the same quarter a year earlier. It attributed the drop in its profitability to the plantation and logistics sector, and higher losses recorded by its sugar business. Quarterly revenue fell slightly to RM6.1 billion from RM6.17 billion. MyEG Services Bhd’s net profit decreased 7.25% to RM74.73 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM80.58 million a year earlier, as the e-government service provider's revenue was affected following the government's lifting of health screening and quarantine requirements. Quarterly revenue declined 29.61% to RM165 million from RM234.42 million in 4QFY2021, amid the cessation of the revenue contribution from Covid-19 health screening and quarantine, and an impairment in investment in digital solutions company Agmo Holdings Bhd as a result of mark-to-market practice. It declared a final dividend of 1.17 sen per share. Industrial conglomerate UMW Holdings Bhd’s net profit sank 55.8% to RM105.95 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM239.96 million in the previous year’s corresponding quarter, owing to a lower share of profit from an associated company. Velesto Energy Bhd posted a net loss of RM26 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), versus a net profit of RM5.43 million a year ago, as the bottom line was hit by higher operating expenses, finance costs and taxation. This was despite the higher quarterly revenue achieved at RM243.07 million, 53% higher than the RM158.48 million reported for 4QFY2021, driven by higher utilisation of the group’s jack-up drilling rigs. OSK Holdings Bhd's net profit for the fourth quarter ended Dec 31, 2022 rose 23.4% to RM121.32 million, supported by its property and financial services and investment holding divisions. Revenue rose 5.77% to RM332.71 million from RM314.57 million a year ago. It declared a final dividend of four sen per share. PT Resources Holdings Bhd has inked a deal to jointly develop the Malaysia East Coast International Supply Chain Intelligent Park. It said the project involves the establishment of an international supply chain intelligent park in Kuantan, Pahang, which is intended to drive the development of food and light industries’ supply-chain between Malaysia and Fuzhou. It had entered into a Memorandum of Understanding with Ocean Exchange (Fujian) Foreign Trade Services Co Ltd (Ocean Exchange) to set up the park, inspired by the Marché International Cold Logistics and Cross-border E-commerce project located in Fujian province, China. |
https://theedgemalaysia.com/node/656914 | Prosecution says FB posting by CJ’s husband not on SRC | English | PUTRAJAYA (Feb 27): The prosecution in Datuk Seri Najib Razak’s review emphasised to the Federal Court that the 2018 Facebook posting by the husband of Chief Justice Tun Tengku Maimun Tuan Mat had nothing to do with the SRC International Sdn Bhd case. Ad hoc prosecutor Datuk V Sithambaram said SRC was formed on Feb 14, 2012, and questioned how Datuk Mohd Zamani Ibrahim’s posting six years later could bring about any bearing on the appeal that was heard in 2022, four years after the posting. “There was no way SRC could have influenced the CJ’s handling of the appeal. This follows that it was not even the subject of the FB posting, as it only dealt with 1Malaysia Development Bhd (1MDB), and Umno’s loss in the 14th general election. “Hence, the posting cannot be subject to the recusal application made last August. Furthermore, there was nothing secret in the FB posting, as many of the rakyat felt this way. It was something of public knowledge and hence it was of no consequence,” the senior lawyer added. He added that the 1MDB facts were all there in the public domain, and everyone knew about them. The lawyer further cited an Australian case, which had a scenario similar to Najib’s application to recuse the CJ in the SRC appeal, where the Australian Federal Court also dismissed such an application for recusal. Last Wednesday (Feb 22), the ad hoc prosecutor argued that views by the spouse are no grounds to seek a recusal. Sithambaram was again responding to Zamani's FB posting, which led to Najib filing a recusal application late at night on Aug 22, which was eventually disposed off by the bench led by the CJ. The prosecution further added that mere reliance on spousal relationship as affirmed by Najib’s affidavit was in itself absurd and insufficient to give rise to actual or apparent bias. “The alleged influence was based on a posting that was [made] four year ago before the SRC prosecution. As argued, Zamani’s posting was on 1MDB and Umno, and not on SRC, which in 2012 had already been placed under Minister of Finance Inc,” Sithambaram added. “The defence cannot say the husband and wife shared the same view. There is nothing in Najib’s affidavit or evidence before the court that there is a real danger of bias. The ad hoc prosecutor further added that Tengku Maimun could decide on whether to recuse herself or not. However, Sithambaram said whether the CJ decided to sit on the bench or otherwise, there was already a majority decision by the previous bench to uphold the former prime minister’s conviction and sentence. “The defence argues about a possible quorum failure as the CJ continued to sit [on the bench], but the prosecution says regardless of this, the bench was unanimous or in majority that the conviction and sentence were safe,” he added. Sithambaram reiterated that Najib was the author of his own misfortune as he changed solicitors and lawyers two weeks before the scheduled appeal, knowing well four months in advance of the hearing date, and trusted his new lawyers. “If the court continued to grant adjournment to the defendant due to the replacement of lawyers at the 11th hour, what kind of messages would the court give? The court was right in not granting the adjournment, as it was clear when the previous counsel, Hisyam Teh Poh Teik, and solicitor Messrs Zaid Ibrahim, Suflan and TH Liew & Partners were to seek an adjournment. “Clearly, the appellant (Najib) was the author of his own misfortune, and this cannot result in the apex court to invoke Rule 137 of the Federal Court Rules 1995 to cite injustice for the former premier to ask for a retrial." Sithambaram said the court had asked Hisyam whether he wanted to submit on behalf of his client, and Hisyam refused. When Chief Judge of Sabah and Sarawak Datuk Abdul Rahman Sebli, who led the five-member bench hearing the review, asked Sithambaram if the previous bench was only taking into consideration the prosecution’s submissions in upholding the conviction and sentence, the ad hoc prosecutor replied that it was not true. He said the previous bench did look at the 94 grounds of appeal filed by the defence to consider the appeal in its entirety. “For the above reasons, the prosecution asks this apex court to dismiss the review application,” Sithambaram added. Najib is serving his 12 years' jail sentence and RM210 million fine, after being found guilty on Aug 23 last year on all seven counts with regard to the SRC case. He was found guilty on three counts of criminal breach of trust, three charges of money laundering of RM42 million of SRC funds, and abuse of power over the approval of Retirement Fund Inc's (KWAP) RM4 billion loans to SRC. The hearing that includes Federal Court judges Datuk Vernon Ong Lam Kiat, Datuk Rhozhariah Bujang and Datuk Nordin Hassan, as well as Court of Appeal judge Datuk Abu Bakar Jais, continues with the defence's reply. When proceedings began on Monday (Feb 27), Abdul Rahman reprimanded lead defence counsel Tan Sri Muhammad Shafee Abdullah for being late. It began at 920am, even though it was supposed to start at 9am. Read also:
Prosecution says views of CJ’s spouse per se not grounds for recusal
Najib's defence denies 'something sinister' in seeking adjournment of SRC appeal |
https://theedgemalaysia.com/node/668302 | Sime Darby Plantation 1Q net profit tumbles 90.4% y-o-y to RM69m | English | KUALA LUMPUR (May 24): Sime Darby Plantation Bhd posted RM69 million net profit for the first quarter ended March 31, 2023 (1QFY2023), a 90.4% drop from RM718 million recorded a year earlier. Earnings per share was one sen, lower than 10.4 sen in 1QFY2022. Revenue decreased 7.12% to RM4.07 billion from RM4.38 billion, the plantation group announced to Bursa Malaysia on Wednesday (May 24). Sime Darby Plantation said the lower earnings for the quarter under underview was mainly attributable to lower average realised crude palm oil (CPO) and palm kernel (PK) prices, lower fresh fruit bunches (FFB) production as well as higher finance costs with increased benchmark interest rates. Realised CPO prices averaged RM3,887 per tonne, down 13% from RM4,465 per tonne the year before, while average realised PK prices declined 56% to RM1,794 per tonne from RM4,105 per tonne. According to the group, its overall FFB production was down by 5%, dragged by its Malaysian upstream operations which continued to be impacted by the lingering effects from the prolonged acute labour shortage. The group also noted that its downstream operations, Sime Darby Oils, experienced a challenging quarter, with RM68 million profit before interest and tax of RM68 million, versus RM161 million in 1QFY2022 due to lower sales volumes and margins in its Asia-Pacific bulk and differentiated operations. No dividend was declared for the quarter under review. Although FY2023 performance is expected to remain challenging, Sime Darby Plantation said it expects to improve its FFB production with the easing of labour shortage in the country, and is optimistic of achieving improved productivity this year. “We are thus giving the highest priority to the factors within our control, namely the rehabilitation of upstream Malaysia and the bold initiative to reduce dependence on manual and foreign workers through the mechanisation, automation and digitalisation of our estates,” said its managing director Mohamad Helmy Othman Basha in a statement. “These efforts will be the foundation of more sustainable, productive, and efficient operations for us in the future, as we continue to recover our productivity and reinvent our plantation operations this financial year,” he added. At Wednesday’s noon break, Sime Darby Plantation's share price finished down one sen or 0.22% to RM4.47, giving it a market capitalisation of RM30.91 billion.
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https://theedgemalaysia.com/node/604813 | A better year for InNature as mall traffic returns and product prices are raised | English | This article first appeared in The Edge Malaysia Weekly on January 24, 2022 - January 30, 2022 AFTER a gruelling two years of dealing with the impact of Covid-19, InNature Bhd — the holding company of The Body Shop (TBS) — is seen making a strong comeback this year as mall traffic returns. Managing director Datin Mina Cheah-Foong reveals that the group is also looking to raise the selling prices of some of its products by an average of 15% to reflect higher costs. The price hike, which comes on the back of heightened prices for commodities such as palm oil, will help the group protect its margins. “The intention is to reflect cost increases as and when we receive fresh products and/or have depleted existing stocks at ‘old’ cost. This will be gradually phased in and will not be across all products,” Cheah-Foong tells The Edge. “We use a lot of RSPO (Roundtable on Sustainable Palm Oil) certified palm oil as well as other Community Fair Trade raw ingredients and, as you know, these commodities have been under a lot of upward pressure. For those products slated for price increases, we expect an average of about 15%,” says Cheah-Foong, who estimates that over the course of the year, roughly 30% of the group’s products, including upcoming new ones, will see a price hike. She is optimistic that the group’s business prospects will be better this year, barring any new unexpected lockdowns. “Business prospects for 2022 are quite dependant on the evolution of this Covid-19 pandemic,” she explains. “With the caveat of lockdown, we are expecting 2022 to be much improved over 2021. InNature has a proven resilient business model, and being in multiple countries certainly helps to cushion uncertainties.” Apart from its 79 TBS stores in Malaysia, InNature also operates 39 TBS stores in Vietnam and two in Cambodia. Most of its physical stores are located in malls. Asked if there was a strong uptick in sales during the recent Christmas period and in the current run-up to the Chinese New Year, she says, “We saw a mid-single-digit revenue decline in Malaysia for December 2021 [compared with a year earlier] as a result of the massive flooding in many parts of Malaysia. Prior to the heavy rains, we were actually in positive territory. And in Vietnam, Covid-19 infection numbers continued to rise.” Nevertheless, she says the situation improved in the new year. “For the first half of this month, Malaysia recorded a high single-digit increase in revenue,” she says. She points out that Christmas is not a major retail season in Vietnam nor Cambodia. The group’s sales via e-commerce, which helped ease the blow from forced store closures during lockdowns in the last two years, have inevitably slowed down now that customers can physically shop again after the economy reopened in the fourth quarter of last year. “Revenue contribution from e-commerce has inevitably lowered with the reopening of stores in 4Q2021 in Malaysia. Nevertheless, our remote revenue — comprising conversational commerce, e-commerce and social selling — continues to be in double-digit contribution for all three markets,” says Cheah-Foong. For perspective, in the first nine months of the year ended Dec 31, 2021 (9MFY2021), remote revenue tripled year on year, contributing 36% to total group revenue. “This has largely been due to our long-term strategy of omnichannel coming into fruition, boosted by the unexpected propellant of lockdown,” she says. CGS-CIMB Research believes the omnichannel strategy helped InNature hold up better than most of its peers during the pandemic. “In our view, InNature is one of the few major cosmetics and personal care retailers that remained profitable in 2020/21. This can be attributed to its early investments in beefing up its omnichannel distribution system, which helped to shore up sales, despite the various lockdowns and store closures, and prudent cost management — it negotiated better rental rebates and shuttered seven non-performing stores,” analysts Khoo Zhen Ye and Walter Aw write in a Jan 10 report. Given these moves, InNature experienced a smaller decline in revenue than the personal care retail sub-sector, they say. InNature made a net profit of RM20.18 million in FY2020, a 33.1% drop from a year earlier. In 9MFY2021, net profit stood at RM7.26 million (down 41.7% y-o-y), making up only 43.7% of consensus full-year forecasts. Going forward, the CGS-CIMB analysts expect InNature to post stronger results from 4QFY2021 onwards on the back of a robust recovery in mall footfall, a majority of its store base resuming full operation across the three countries, and its ability to capitalise on major festive sales. The group’s plan to raise selling prices this year bodes well for sales, they say. “Given the strong brand equity of TBS and its sizeable loyal customer base (about 273,000 ‘Love Your Body’ members as at Sept 30 last year) who are mostly in the middle to high income segment, we believe InNature can pass on the higher input costs with ease as we estimate that more than 60%-70% of sales are made by repeat customers,” the analysts say. They estimate that the impact of the recent floods on earnings will be minimal. “We gathered from the management that the recent flood incident only affected a handful of outlets (less than 5% of total outlets), where staff were unable to travel to [work], while its stores and warehouses remained intact given that they are mostly situated in prime locations,” they say. On Jan 10, CGS-CIMB — the only research house that tracks InNature, according to Bloomberg data — upgraded its call on the stock to “add” from “hold” and raised the target price by eight sen to 84 sen. The stock, which has gained just 2.3% since its Main Market listing on Feb 20 last year, closed at 67 sen last Thursday, giving it a market capitalisation of RM472.94 million. “With the recent retracement of its share price over the past three months from its high of 86 sen (Oct 26), we believe that its valuation is attractive (now 16 times 2023F price-earnings ratio, a discount of about 11% to the weighted average 2023F PER of small-cap consumer discretionary names of 18 times, and a 29% discount to InNature’s historical average of 22.6 times since listing). We ascribe a 10% ESG (environmental, social and governance) premium for InNature as it is a leading ESG play in Malaysia,” its analysts say. 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/630774 | Planters will likely post a mixed bag of results q-o-q, says HLIB | English | KUALA LUMPUR (Aug 3): Hong Leong Investment Bank (HLIB) Research has maintained its “overweight” rating on the plantation sector and said planters will likely post a mixed bag of results on quarter-on-quarter (q-o-q) basis in their upcoming results. In a note on Wednesday (Aug 3), the research house said upstream planters with significant exposure in Malaysia will likely post flat to higher sequential performance in the second quarter of 2022 (2Q22), while planters with significant exposure to Indonesian estates will likely post weaker performance in 2Q22, due to export restrictions in Indonesia. “Maintain our 2022-24 CPO (crude palm oil) price assumptions of RM5,500/4,500/3,800 per tonne, and 'overweight' stance on the sector. “For exposure, we prefer integrated players such as Kuala Lumpur Kepong Bhd (buy; TP [target price]: RM26.54) and IOI Corp Bhd (buy; TP: RM4.36) over purer upstream players,” it said. |
https://theedgemalaysia.com/node/631244 | EVENING 5: Five things you need to know today | English | EVENING 5: Five feedmillers provisionally found to infringe Competition Act Dirty dealings. Corporate battles. Consumer woes. Here are five things you need to know today. 1. MyCC issues a proposed decision against five feedmillers for allegedly colluding to increase the price of poultry feed. 2. Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz says Malaysia's inflation may reach "around 11%" in the absence of subsidies. 3. Datuk Zarul Ahmad Mohd Zulkifli testifies that he would go as far as bribing the prime minister to protect Lim Guan Eng. 4. Datuk Seri Koe Peng Kang steps down as S P Setia deputy president and COO to “pursue interests outside the organisation”. 5. Unique Fire sees pent-up demand for fire protection systems with many construction and development projects due for delivery. |
https://theedgemalaysia.com/node/675620 | Cyberjaya Education selling Asia Metropolitan University licence, business for RM15 mil | English | KUALA LUMPUR (July 21): Private education provider Cyberjaya Education Group Bhd, formerly known as Minda Global Bhd, is disposing of its Asia Metropolitan University licence and business to privately-held firm Austin Legacy Education Sdn Bhd for RM15 million cash. The proposed disposal is expected to generate an estimated one-off gain of RM14 million for the group after netting impairment and expenses in relation to the transaction. Cyberjaya Education said the proposed disposal will enable it to streamline its value proposition, as well as to focus on growing its Cyberjaya brand across its university and colleges. In a bourse filing on Friday (July 21), the group said Asiamet (M) Sdn Bhd has entered into a sale and purchase of business agreement with Austin Legacy for the proposed disposal. Asiamet (M) is a wholly-owned subsidiary of Asiamet Education Group Sdn Bhd, which in turn is a wholly-owned unit of Cyberjaya Education. Austin Legacy is jointly owned by Datuk Chong Yoon On and Datin Low Peck Tim, and is in the business of providing private and international higher education courses and related education services. Chong is also a property developer in Johor, and founded and operates Austin Heights International School in Johor Bahru. According to Cyberjaya Education, the proposed disposal relates to the sale of the business of the provision of higher education courses approved by the Ministry of Higher Education (MoHE) and currently offered by Asiamet at Asia Metropolitan University Johor campus and branch campus in Cyberjaya, Selangor. The business is registered under the Private Higher Educational Institutions (PHEI) Act 1996 pursuant to the PHEI licence issued by MoHE to Asiamet to establish and operate the PHEI in Malaysia. As such, the proposed disposal is subject to the regulatory approval of MoHE. "The licence was an internal asset used to operate the Asia Metropolitan University," said Cyberjaya Education. It plans to use the net proceeds from the proposed disposal for working capital and/or for investment into its expansion programme to increase its capacity and further enhance its students’ learning experience. The net proceeds are expected to be fully utilised within 12 months of the proposed disposal's completion, it added. The proposed disposal is expected to increase Cyberjaya Education’s net assets per share and earnings per share by 0.83 sen based on existing 1.68 billion shares in issue. Barring any unforeseen circumstances, the proposed exercise is expected to be completed by the first quarter of 2024. Cyberjaya Education shares closed up half a sen or 4.17% at 12.5 sen on Friday, giving it a market capitalisation of RM201.81 million. The stock price has risen 78.57% year to date. |
https://theedgemalaysia.com/node/625523 | Sanofi-GSK Covid-19 vaccine found effective against Omicron | English | PARIS/LONDON (June 24): Late-stage data on an experimental Covid-19 vaccine from Sanofi and GSK has showed the shot confers protection against the Omicron variant of the virus, the companies said on Friday. The so-called bivalent vaccine targets the Beta variant — first identified in South Africa — as well as the original Wuhan strain of the virus. In a trial involving 13,000 adults, the vaccine demonstrated an efficacy rate of 64.7% against symptomatic Covid-19, and 72% efficacy against infections specifically caused by the Omicron variant. When used in people who previously had Covid-19, the results were stronger. The vaccine generated an efficacy rate of 75.1% against symptomatic Covid-19 and 93.2% in Omicron-confirmed symptomatic cases, the companies said. "Sanofi-GSK's vaccine is the first candidate to demonstrate efficacy in a placebo-controlled trial in an environment of high Omicron variant circulation," Sanofi said in a statement. Sanofi's Paris-listed shares and GSK's London-listed shares were both up more than 1% in morning trading. Earlier this month, the bivalent vaccine showed potential in two trials to protect against the virus' main variants of concern — the Omicron BA.1 and BA.2 strains — when used as a booster shot. Sanofi and GSK, two of the world's biggest vaccine makers, are hoping to gain a foothold in the market for next-generation variant-focused Covid-19 shots, after falling behind competitors including Moderna, AstraZeneca, and Pfizer-BioNTech, in the original race to contain the pandemic. The new data supporting the bivalent vaccine will be submitted to regulatory authorities with the hope of making the shot available later this year, the companies said on Friday. Sanofi and GSK's original Covid-19 vaccine is already under review by the European Medicines Agency. The companies have bet that this bivalent vaccine moulded on the now-supplanted Beta variant will confer broad protection against future viral strains on the basis that Beta expresses similar mutations across multiple variants of concern, including Omicron. |
https://theedgemalaysia.com/node/616147 | Genting Malaysia tipped to win full casino licence in New York | English | KUALA LUMPUR (April 13): Genting Malaysia Bhd and MGM Resorts are seen as strong favourites to win full casino licences in New York after Governor Kathy Hochul reached a budget deal with senate leaders over the weekend to fast-track casino legislation. Macau-based Inside Asian Gaming (IAG), a publication devoted to provide the latest information on gaming industry developments in Asia on Tuesday (April 12) reported that under the deal, New York can issue licences for up to three downstate casinos, depending on the attractiveness of bids, with the New York State Gaming Facility Location Board now expected to run a competitive process similar to the upstate casino selection process conducted several years ago. It said the legislation sets a minimum licence fee of US$500 million but gives the New York State Gaming Commission the option to accept higher bids. Slot and table tax minimums are set at 25% and 10% respectively but could also be increased as part of the bidding process. Citing CBRE Equity Research analyst John DeCree, it said that the existing electronic table game (ETG)-only casinos — Genting Malaysia’s Resorts World New York City (RWNYC) and MGM’s Empire City — held a natural advantage due to likely concerns over community support and economic development. “Demonstrating evidence of local support and zoning approval is required for all applicants. “This could be the most challenging part of the process, which is one of the reasons we believe Empire City and RWNYC are front runners for two of the three licences,” said DeCree. DeCree also noted that economic activity and business development, including maximising revenues received by the state and localities, are the primary criteria for awarding licences. “This is another key reason we view Empire City and RWNYC as likely winners. “In addition, capital investment and job creation are key factors. The remaining criteria include mitigating the potential impact on host communities, workforce enhancement, sustainability and diversity,” he said. IAG said DeCree estimated the total addressable market in New York at US$4.8 billion in gross gaming revenue, estimating that MGM’s Empire City could generate US$1.28 billion in gaming revenue and US$1.45 billion in total revenue annually. |
https://theedgemalaysia.com/node/616815 | Bumi Armada, unit make first court appearance in New Delhi for alleged Aircel-Maxis bribery scandal | English | KUALA LUMPUR (April 18): Bumi Armada Bhd announced that the group and its subsidiary Bumi Armada Navigation Sdn Bhd have been named in prosecutions initiated by the Indian Central Bureau of Investigation (CBI) and the Indian Enforcement Directorate (ED) with the Trial Court at Rouse Avenue in New Delhi, India. In a bourse filing on Monday (April 18), Bumi Armada said the group and Bumi Armada Navigation at a hearing on Monday respectively entered appearance in the proceedings to demonstrate their willingness to fully cooperate with the CBI and the ED and to aid and assist them and the Court in these ongoing proceedings. "Bumi Armada does not currently expect these proceedings to have any material impact on the group's ability to carry on its business," it said, adding that updates will be provided from time to time on any further material developments on this matter. The respective prosecutions have been initiated against former Indian finance minister Palaniappan Chidambaram, his son Karti Chidambaram, Chess Management Services Pvt Ltd — a company allegedly controlled by Karti — and several other corporations and individuals based in India and Malaysia, including Bumi Armada and Bumi Armada Navigation. "The prosecution alleges, inter alia, that in 2006, Palaniappan illegally granted foreign investment promotion board approval for an indirect investment into Aircel Ltd by Maxis Communications Bhd, and that as quid pro quo, Bumi Armada and Bumi Armada Navigation had, between 2007 and 2009, allegedly remitted approximately US$92,000 and US$12,000 respectively to Chess, which were allegedly illegal gratification passed on to Palaniappan. "Payments of those sums to Chess were for information technology solutions software and server hosting services provided to Bumi Armada and Bumi Armada Navigation respectively during such period," said Bumi Armada. Bumi Armada shares closed unchanged at 44.5 sen on Monday, bringing it a market capitalisation of RM2.6 billion. |
https://theedgemalaysia.com/node/635735 | Retail industry second most hit by ransomware in 2021, says Sophos | English | KUALA LUMPUR (Sept 9): The retail industry faced the second highest rate of ransomware attacks last year of all sectors surveyed, after the media, leisure and entertainment industry. In a statement on Friday (Sept 9), British-based security software and hardware company Sophos Group plc said that globally, 77% of retail organisations surveyed were hit — a 75% increase from 2020. It said this was also 11% more than the cross-sector average attack rate of 66%. Sophos principal research scientist Chester Wisniewski said retailers continued to suffer one of the highest rates of ransomware attacks against any industry. “With more than three in four suffering an attack in 2021, it certainly brings a ransomware incident into the category of when, not if. “In Sophos’ experience, the organisations that are successfully defending against these attacks are not just using layered defences. They are augmenting security with humans trained to monitor for breaches, and actively hunting down threats that bypass the perimeter, before they can detonate into even bigger problems,” he said. Wisniewski said this year’s survey showed that only 28% of retail organisations targeted were able to stop their data from being encrypted, suggesting that a large portion of the industry needs to improve their security posture with the right tools and appropriately trained security experts to help manage their efforts. Wisniewski said as the percentage of retail organisations attacked by ransomware increased, so did the average ransom payment. He said in 2021, the average ransom payment was US$226,044 (RM1.02 million), a 53% increase when compared to 2020 (US$147,811). However, this was less than one-third the cross-sector average of US$812,000. Wisniewski said it is likely that different threat groups are hitting different industries. He said some of the low-skill ransomware groups asked for US$50,000 to US$200,000 in ransom payments, whereas larger, more sophisticated attackers with increased visibility demanded US$1 million or more. |
https://theedgemalaysia.com/node/613394 | Cover Story: From roller coaster ride to tightrope walk | English | This article first appeared in Wealth, The Edge Malaysia Weekly on March 28, 2022 - April 3, 2022 If fund managers found themselves riding a roller coaster two years ago after the pandemic struck, 2021 was akin to walking a tightrope. The market was calmer than in the previous year, giving it more time to think and react, but it had to stay vigilant at all times. “We would describe last year’s investing journey as walking a tightrope. It was a tricky year to navigate, in large part due to the persistence and escalation of the pandemic rather than the gradual diminishing path some had expected. “There was progress to be made step by step. But the journey was fraught with event-driven risks such as lockdowns, fiscal controls and threats posed by ESG (environmental, social and governance) considerations,” says Lee Sook Yee, chief investment officer of Kenanga Investors Bhd. In some aspects, 2021 was more challenging than two years ago as the local market was on a gradual downward trend with less trading activity. Even more frustrating for some fund managers was how the market’s “irrationality” persisted longer than expected, spelling bad news for value investors. They could not bargain hunt as prices of overvalued stocks remained high. It was also hard to take profit as prices of undervalued stocks stayed stubbornly low. For instance, a significant correction in the share price of glove stocks was expected in late 2020 or early 2021, when a major downward trend was observed in the average selling price of rubber gloves. But that did not materialise as quickly as some fund managers had expected, says Wong Yew Joe, CIO of AmFunds Management Bhd. “That was because analysts did not sufficiently revise their earnings forecast on glove companies while investors were hopeful that their share price would rebound. We learnt that the market is always right, even if valuations seem to disagree sometimes.” Chue Kwok Yan, chief investment officer of KAF Investment Funds Bhd, concurs. “The market did not react commensurately with the market catalyst and positive developments. Sound investment decisions based on fundamentals were not properly rewarded. This really tested the resolve of our team.” Challenges abounded not only in the local equity market last year, but also the bond market. In fact, equity investors may have overlooked the fact that the domestic bond market recorded a negative return last year, for the first time in over a decade, says Roszali Ramlee, CEO of AmanahRaya Investment Management Sdn Bhd (ARIM). Last year was also one of the most challenging years for bond funds since the Asian financial crisis, he adds. “At the same time, the equity market was in negative territory, which meant that diversification via strategic asset allocation did not work well to mitigate the depreciation in our overall investment values.” Investors were increasingly diverting their money overseas in 2021 because of the lacklustre performance of the local equity market. But many who put their bets on the China market were not spared from market volatility and unexpected events. For instance, the regulatory crackdown by the Chinese government that impacted its technology sector caught many investors wrong-footed. David Loh, deputy head of equity at Affin Hwang Asset Management Bhd, found it extremely hard to read the Chinese market and had to diversify some of its funds to other markets with more robust fundamentals. Challenges in the China market were also highlighted by Dr Tan Chong Koay, founder and chief strategist of Pheim Asset Management Bhd, and Yeoh Kim Hong, CEO of Public Mutual Bhd. As such, outperformance in last year’s market largely depended on fund managers’ discipline in profit-taking and stock-picking ability. For instance, a key reason for Public Mutual’s outperformance was its profit-taking exercise on glove companies when their prices peaked. Its fund manager then invested more heavily in selected semiconductor companies that were expected to benefit from the long-term digitalisation trend. Several other award-winning fund houses, including Kenanga, echoed this view. “During times of extreme volatility, it is imperative to filter out market noise and focus on assessing the long-term fundamental prospects, balance sheet strengths and valuations of the investee companies,” says Yeoh. Being flexible and agile were two other essential traits that contributed to outperformance. For instance, Pheim adjusted quickly to the new reality of the China market as early as the end of 2020 when the Chinese government’s regulatory crackdown had just started. The exposure of the Pheim Asia ex-Japan Pacific Fund to the Hong Kong/China market was cut by about half in the following nine months, a bold move that raised the eyebrows of some of its clients. “Many investors questioned our decisions to cut exposure in the market as they were still bullish on China. However, it was thanks to our sound investment decision that the fund managed to avoid the worst decline in the market last year,” says Tan. Taking centre stage in the fund management industry in 2021 was the fast-growing importance of ESG criteria when valuing a company. Companies with good fundamentals and attractive valuations might not see their share price increase over time if they have high exposure to ESG-related risks. Worse still, their share price could be battered when ESG issues are uncovered. Eastspring Investments Bhd, known by some investors for the attractive returns on its Eastspring Small Cap Fund, was one of the fund houses that faced challenges on the ESG front last year. Some of its investee companies in the manufacturing sector were hit hard by unresolved labour issues, which prompted the firm to put more emphasis on ESG factors in its research process. Head of investment Doreen Choo says the firm encourages its team to have more engagement with companies on ESG-related issues. Electronic manufacturing service provider ATA IMS Bhd was embroiled in ESG-related issues recently. Its main client, Dyson, was reported to have terminated its contracts with the company last November owing to alleged labour problems, causing ATA IMS’s share price to go into free fall. As at March 14, the company’s share price had collapsed about 85% to a low of 38 sen from RM2.51 last November. KAF’s Chue shares the view on the importance of ESG, saying value investors must look not only at financial numbers and ratios but also include ESG criteria in their investment decision-making process. “The fundamental assessment of an investor could be correct, but share price movement is another function affected by, among other factors, liquidity and new evaluation requirements such as ESG criteria. Markets can overshoot or undershoot because of them,” he adds. ESG-related issues, especially on corporate governance, have much wider implications on investors than some might think. For instance, investors who have done thorough research could still be caught off guard and suffer massive losses if a company’s corporate governance is weak. A company whose corporate governance came under scrutiny was Serba Dinamik Holdings Bhd. PMB Investment Bhd, which won the Best Equity Malaysia Income (Islamic) award, was unfortunately caught in the Serba Dinamik storm. Its CEO Mahani Ibrahim says some of PMB’s funds had exposure to Serba Dinamik and its related companies, such as Kumpulan Powernet Bhd and Sarawak Consolidated Industries Bhd, last year. “Their stock prices tanked after the auditor highlighted several audit discrepancies in Serba Dinamik’s accounts. Having the same substantial shareholder resulted in Kumpulan Powernet and Sarawak Consolidated Industries experiencing selling pressure. Fortunately, we managed to dispose of all our holdings in those three companies rather early, but the losses incurred [for us] were quite substantial. “We can’t say that it was a mistake that we made. Rather, it was an unfortunate event that occurred to us. We opine that auditors should play their role effectively to flag any wrongdoings by companies to ensure their financial data is accurate and reliable,” she says. Pheim’s Tan had an almost similar experience with a Singapore Exchange (SGX)-listed Chinese company in 2007. Tan and his investment team visited its CEO and concluded that its products had good market potential and enormous demand. The company’s gearing level was acceptable and its share price was undervalued. Pheim then invested in the company in late 2007 and 2008 after conducting further due diligence. For a while, there was no sign that the company was not doing well. However, in early 2009, the company’s board of directors announced it had difficulty finalising the audit of the group’s trade receivables and cash balance for the financial year ended December 2008. “An external investigator was appointed in February 2009 to carry out an independent assessment and found numerous financial accounting irregularities and an unauthorised change in the group’s corporate structure. The company had violated SGX’s listing rules by failing to disclose Chinese bank loans on its balance sheets. Trading in the shares was suspended that same month. Even though our exposure to the company was very small, it was a salutary lesson for us,” says Tan. The lesson he learnt from this was that fund managers have to pay more attention to the details in a company’s accounts and check with its competitors regarding the character of its top management and standard of corporate governance. Fund managers are not expecting the ride ahead to be smoother. At the time of writing, the less deadly strain of the Covid-19 virus continued to spread while the conflict between Russia and Ukraine had entered its fourth week with no end in sight. Inflation is rising around the globe, exacerbated by the war as commodity prices, especially for grains and sources of energy, rise to record levels. A current topic of debate is whether inflation will be transitory or last longer than the market previously thought. Persistent high inflation would leave central banks with no choice but to raise interest rates, which could hurt economic growth globally and the profitability of companies if not carefully done. Kenanga’s Lee believes that the rising inflation is transitory, which means high year-on-year increases will not occur in the medium to long term. “It is undeniable that the recent pace and intensity of inflation has surprised central banks and markets. It is reasonable and even necessary that the US Federal Reserve and other central banks utilise rate hikes as a tool to help tackle soaring absolute price levels, besides waiting for supply-side constraints to ease. “That said, we do view high inflation as still, in essence, transitory. Continued [technological] innovation, expansion of productive capacity and capital mobility to more efficient geographies are all factors that remain as structural checks to long-term price levels. Short-term volatility aside, there remain plenty of opportunities for growth over the long-term horizon,” she says. Hoo See Kheng, CEO of Hong Leong Asset Management Bhd (HLAM), is confident that central banks have the monetary tools that can be deployed to bring inflation down to a more benign level. At the same time, global growth is expected to slow as monetary and fiscal policies by central banks and governments are tightened. Christopher Liew, CEO and chief investment officer of Principal Asset Management Singapore, is of the opinion that inflation will likely moderate or reverse in the latter part of the year, as pressure on the global supply chain eases. “The pressure on the mismatch between market supply and demand [is expected] to reduce as demand shifts back from manufactured goods towards services as more economic activities resume their operations,” he says, adding that the Federal Reserve could hike the interest rate six times this year. Datuk Dr Nazri Khan, CEO of Inter-Pacific Asset Management Sdn Bhd (InterPac), believes that high inflation will remain transitory. “Inflation has indeed risen to levels not seen since 1982. Yet, the market is far from overheating. The global economy has barely reached its full potential in terms of its level of output and employment. “We believe the supply chain constraint will clear in time, along with inflation. Global growth should remain resilient, with heightened volatility observed during the initial periods of the rate hike.” Others, however, are less confident about the inflation outlook for this year. ARIM’s Roszali, for one, expects inflation to be more persistent than transitory moving forward, and global growth to be weaker than some expect on the back of high commodity prices. Lim Suet Leng, CEO of UOB Asset Management (M) Bhd, shares Roszali’s view, saying that inflation could trend higher than many expect in the medium term. “After a decade or more of low inflation, it looks like it could be higher than expected in the medium term. We see evidence of temporary issues and also potential structural issues.” According to Lim, the temporary increase in inflation owing to supply constraints is expected to disappear when the pandemic is over. Yet, rising rents and wages are still not reflected in the recent inflation numbers, and could be structurally higher and become a long-term driver of inflation. “However, we do not see this as a repeat of the very high inflation seen in the 1970s,” she adds. The market will also be looking at whether the one-off prosperity tax introduced in Budget 2022 will be repeated. Eastspring’s Choo notes: “There are concerns over the government’s ability to increase its revenue or broaden its tax base sufficiently. The Cukai Makmur may be repeated, albeit with a different name.” The 15th General Election (GE15), which is likely to be held in the second half of the year, is another critical event that will be overshadowed by global developments. “It is almost a consensus view [in the industry] that GE15 is likely to take place in 2H2022 as the incumbent parties in the government try to strengthen their political position,” says Kenanga’s Lee. “We think GE15 is likely to be less of a headwind compared with GE14, and a peaceful conclusion of the election should remove the overhang for our market. We will be more positive on the market if a new government with a strong majority is formed after the election. “Most fiscal reform measures are now stalled and efforts to strengthen the federal government’s finances are expected to happen only after the election. Mega projects are expected to receive approval only after the election, which should be positive for the construction sector and the country’s economy,” Lee states. PMB’s Mahani points out that the federal government and the Pakatan Harapan coalition had signed a memorandum of understanding (MoU) on transformation and political stability. One of the conditions in the MoU is that parliament will not be dissolved before July 31, 2022. “After the MoU lapses, there is a possibility of an early general election [in 2H2022]. We believe the market will closely monitor local political developments. Uncertainty on the political front, especially in the second half of the year, will affect our market performance,” she explains. Foreign funds are also expected to stay on the sidelines until the dust settles on GE15, adds Goh Wee Peng, CEO of AmFunds. Regardless, local fund managers are no strangers to local politics, including general elections, even though it will certainly rock the market to various degrees. “Political sentiment will always be the central theme for our local market. The Malaysian stock market is like curry chicken without curry, without its political aspect. We expect more news headlines coming out by the end of 2022 as well, when the Umno election is expected to take place. More volatility will follow,” says InterPac’s Nazri. 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/603736 | Dr Mahathir discharged from IJN | English | KUALA LUMPUR (Jan 13): Tun Dr Mahathir Mohamad (pictured), who was admitted to the National Heart Institute (Institut Jantung Negara (IJN)) last week for an elective medical procedure, was discharged on Thursday (Jan 13). The former prime minister was discharged at 3.45pm after undergoing a successful procedure, according to IJN in a brief statement. Dr Mahathir and his wife Tun Siti Hasmah expressed their thanks to everyone for their concern and prayers over the last week, the statement wrote. On Dec 16, he was admitted to IJN for a full medical check-up and further observation, and only discharged a week later on Dec 23. |
https://theedgemalaysia.com/node/633042 | Empowering local communities | English | This article first appeared in City & Country, The Edge Malaysia Weekly on August 22, 2022 - August 28, 2022 The atmosphere at KIPMall Masai in Pasir Gudang, Johor, is rather lively on a Friday afternoon, with the friendly faces and chatter of vendors and visitors brightening up the space. The three main areas of the mall — divided into retail, food and fresh produce — exhibit a high level of cleanliness and organisation. Thus, it is no surprise that KIPMall Masai was a Silver winner in the 10 Years and Above Specialised Categories. Owned by KIP REIT Management Sdn Bhd and managed by Henry Butcher Malaysia (Mont Kiara) Sdn Bhd (HBMK), the community-centric hybrid mall has maintained its standards since opening its doors in 2010. It has attracted visitors from areas in the vicinity such as Tamai Masai Utama, Taman Masai, Taman Bukit Layang-Layang, Taman Mawar, Kampung Sungai Rinting, Kampung Pasir Gudang Baru and Kampung Sepakat, as well as other areas of Johor Baru and even Singapore. The mall is easily accessible via the Pasir Gudang Highway and other major roads such as Jalan Serangkai, Jalan Seharum and Persiaran Dahlia. Public transport such as taxis and buses via the Iskandar Malaysia Bus Service System is also available. The leasehold development has a total land area of 472,757 sq ft, with a net lettable area of 163,511 sq ft. KIPMall Masai is currently 92% occupied with more than 200 tenants. Anchor tenants include Watsons, RHB Bank, Mr DIY, Guardian, Hwa Thai Supermart, Metro Optical Group, Mr Bike, Jalan Jalan Japan, Celcom and Marrybrown. Following our visit to the mall, the warm and approachable Datuk Eric Ong, executive director of KIP REIT Management, tells us via Zoom: “We are very happy about the recognition of our sustainability effort, and that it has not gone unnoticed. We are proud of our HBMK and KIP Property Services team, which successfully navigated through a challenging period during the pandemic without compromising on the quality of our asset. “Sustainability is fast becoming many stakeholders’ key priority in assessing the performance of an entity and we continue to integrate sustainability considerations into our day-to-day operations.” He also addresses the challenges the company faced. “What we went through [during the pandemic and now in transitioning to the endemic phase] was something unexpected, and it has been a good learning experience for all of us in the business community. Likewise with sustainability and environmental, social and governance (ESG) issues, we have to be more prepared for such unforeseen eventualities.” Ong says footfall at the mall has improved a lot since the reopening of borders, especially with visitors coming over from Singapore. “We are back to pre-pandemic levels. Back then, KIPMall Masai was half the size of what it is today, and we are glad that it is continuously growing and thriving.” Ong highlights the mall’s distinct business proposition. “The concept and design of KIPMall Masai is indeed unique. Our focus is on the mass market, which is the key pillar of our business model,” he says. “We aim to look for tenants whose businesses are targeted for their competitive pricing and attractiveness to the shopper profile. Over time, we have developed a brand as a one-stop shopping destination for essentials at competitive prices. “This is one of the draws, which attracts both B2B (business-to-business) and B2C (business-to-consumer) shoppers. We do not particularly target either category but we want to be a platform to cater for the wider market.” Ong continues, “Our goal is to strike a balance between the demands of our stakeholders and shoppers, and how they prefer to do business, and also which stock [inventory] is a necessity to ensure that KIPMall Masai remains attractive. We constantly monitor the tenant mix. We look at feedback from our shoppers, and it is an ongoing process.” It is not just about profitability for the company. The management also helps the local operators to run their business and guide them in catering to the shoppers to ensure the sustainability of their business in the long term. “It is our way of providing a platform to some of the local traders here. Those tenants leverage our [KIP] brand to propel their business forward. We continue to strike the right balance between rental and occupancy rates to encourage long-term relationships with our tenants,” says Ong. According to him, the group continuously assesses the tenancy and the maintenance of the mall. “This is all part and parcel of the conduciveness we offer to shoppers. We have to ensure that everyone and everything abides by our SOPs on a daily basis.” Collectively, the group and property manager of KIPMall Masai strive to implement a level of innovativeness. “With the population growth, we try to engage with new, young shoppers to tap into their [demands]. We observe the patterns and behaviours of online shopping and social media, and we have plans to expand our footfall and traffic to other age groups as well. Part of our work is engaging with potentially more new shoppers,” he says. “Consumer behaviours change rapidly, hence we encourage our tenants to adopt new technologies in their business. Some of our tenants are mom-and-pop businesses and have smaller operations, so we help them leverage our social media platform [which has a following] to enhance their business. We also encourage our tenants to offer cashless or QR payments, among other technologies.” KIP REIT Management intends to leave its mark by improving on ESG factors in the communities. “We want to ensure the property is able to withstand challenging times, and that the immediate community grows with us,” says Ong. The group is particularly proud of KIPMall Masai’s solar photovoltaic systems, one of which produces 428kWp of electricity while the other has the capacity for 165.1kWp. Both are connected to the main switch board that supplies power to the air conditioners in the mall. The group and HBMK have also implemented a set of key performance indicators (KPIs) called the Appraisal Goal Setting for the maintenance crew to fulfil. “This KPI is monitored on a monthly basis and will be reflected in the maintenance crew’s yearly performance review,” says Ong. The cleanliness of the mall, which is highly noticeable, is handled by An Nur Kleen Maintenance Sdn Bhd, with a total of 12 personnel deployed. The landscaping in the surrounding area is also properly managed and handled by the cleaners. The group has also implemented an asset enhancement initiative (AEI) at Auto Mall, a part of KIPMall Masai. The main objectives are to increase income, to fill up vacant lots at Auto Mall, to bring in an electrical shop for a better trade mix and to bring more footfall to the area. “The cost of the AEI project was RM203,780. The income generated per year from this project is RM209,400,” says Ong. In terms of cost optimisation, the most significant difference between what was budgeted and the actual figure would be in terms of total expenditure. “It was budgeted at RM336,432, but the actual expenditure only came to RM200,265. This significant difference of around 40% was caused by the pandemic, as minimal works and activities were done inside the development,” he says. The group aims to benchmark KIPMall Masai and all of the malls in its portfolio in the long term. “Our long-term vision is to be the main destination for shoppers there. Over the years, we have recognised our [target audience] which is also made up of foreign workers with unconventional working hours. So, we have quite a diverse group of shoppers who come in at different times of the day. The factors to consider here are mostly geographical and cultural,” says Ong. “In the long term, we will continue to observe trends. One of the things we would like to implement at KIPMall Masai is a proper F&B section, and we are currently having discussions about it. At present, since the renovation to accommodate Jalan Jalan Japan at KIPMall Masai, we do not have any plans for an extensive AEI, but will initiate such a programme if necessary. “In the meantime, we will continue to maintain the conditions of our mall by focusing on our core strengths of leasing, marketing and maintenance such as repainting and doing something about the road premix and glass panel, as well as improvement of the air ducting system in the food court.” According to Ong, KIP REIT Management has a portfolio of six malls in several cities and towns across the country. “We do look at opportunities to include more properties in our portfolio, and to integrate our sustainability efforts into them, including ESG measures. In our annual report, for this financial year, we also have a bit of an improvement in how we track these. “Diversity and inclusion are important to us because people management is one of the key things for our performance, while in terms of governance, we also have SOPs that we comply with and revise according to the changing business environment. “During the pandemic, we looked into energy and water consumption very closely. I think that was the reason why we changed our operating times as well, because we knew that certain times of the day were restrictive to people who wanted to come in. We also explored initiatives that covered subjects such as waste management, while educating shoppers on its importance.” 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/668997 | BHIC confirms receipt of MOF Inc's offer for troubled unit | English | KUALA LUMPUR (May 29): Boustead Heavy Industries Corp Bhd (BHIC), the shipbuilding arm of Boustead Holdings Bhd, said it has received a letter from the Minister of Finance Inc (MOF Inc) signalling its intention to acquire BHIC’s entire stake of 20.8% in Boustead Naval Shipyard Sdn Bhd (BNS). The stake is currently held through BHIC's wholly-owned subsidiary Perstim Industries Sdn Bhd. "The terms of the proposed acquisition are subject to negotiations between the parties," said BHIC in a filing with Bursa Malaysia on Monday (May 29). "Any further material developments on the above matter will be announced to Bursa Malaysia Securities accordingly," it added. This move by MOF Inc raises eyebrows given how it is seen as a “get-out-of-jail-free” card for BNS which is responsible for the controversial RM9 billion littoral combat ship (LCS) project. BNS was contracted in 2011 to build and deliver six LCS for the Royal Malaysian Navy (RMN), but until today, not one of the six ships had been completed although Putrajaya has already shelled out RM6.1 billion. One question that arises now is how much MOF Inc will be forking out for the 20.8% stake in BNS. Prime Minister Datuk Seri Anwar Ibrahim was quoted by the press on May 27 saying that the government had “no choice” but to take over BNS in order to complete the LCS project. “We have no choice, we have spent RM6 billion, we can’t close, we have to take over to complete the project,” he was quoted saying at the National Book Festival held at the World Trade Centre on May 27. A day earlier, on May 26, Defence Minister Datuk Seri Mohamad Hasan was reported as saying that MOF had established a special purpose vehicle (SPV) to take over BNS. Mohamad had said that despite the ministry taking over the LCS project, it will still be overseen by a project monitoring committee jointly chaired by the secretaries general of the Treasury and Defence Ministry. Boustead Holdings announced that its 68.85%-owned subsidiary, BNS inked a sixth supplemental contract with the government with regard to the construction of littoral combat ships (LCS). The supplemental contract, which contains several revised terms, requires BNS to build five, instead of six LCS, at higher contract cost of RM11.2 billion. The original contract cost was RM9.13 billion. The contention surrounding the LCS project is that RM6.1 billion has been disbursed by the government for construction of the vessels over the past 10 years or so, but not a single one has been completed by BNS. According to BNS chief executive officer Captain Azhar Jumaat, the money disbursed has been spent on buying equipment that are required for pre-order. He refuted that the equipment bought was obsolete, but the equipment is facing "obsolescence". BHIC is a 65%-owned subsidiary of Boustead Holdings — a company that Lembaga Tabung Angkatan Tentera (LTAT) is in the midst of taking private. LTAT also has an 8.16% direct stake in BHIC. BHIC shares closed up 4.5 sen or 13.85% at 37 sen on Monday, giving it a market capitalisation of RM90.54 million. |
https://theedgemalaysia.com/node/677655 | Bursa mixed at midday on cautious sentiment | English | KUALA LUMPUR (Aug 7): Bursa Malaysia was mixed at at midday on Monday (Aug 7), with the benchmark index ending the morning session little changed as cautious market sentiment weighed on investors’ risk appetite. At lunch break, the FTSE Bursa Malaysia KLCI (FBM KLCI) added 0.13 of a point to 1,445.34 from 1,445.21 at Friday’s (Aug 4) close. The key index opened 0.32 of a point lower at 1,444.89 and moved between 1,442.13 and 1,449.38 throughout the session. However, the broader market was weaker with losers outpacing gainers 429 to 272, while 420 counters were unchanged, 1,153 untraded and 26 others suspended. Turnover stood at 1.66 billion units worth RM666.75 million. Malacca Securities Sdn Bhd in a note said bargain-hunting activities alongside the return of foreign funds drove the key index higher last Friday as the positive performance was also in line with the mostly higher regional markets. It reckoned that the KLCI might attempt to build onto last Friday’s gains, given that sentiment across the regional markets has shown signs of improvement. “The lower liners may remain in the consolidation phase, with investors prepping for a barrage of quarterly corporate earnings releases, whilst trading activities dwindled. “For now, investors should trade in a cautious undertone ahead of the states election till the end of the week,” it said. Commodities-wise, the Brent crude oil advanced above US$86 (RM391.53) per barrel, while the crude palm oil hovered above RM3,800 per tonne. Among the heavyweights, Maybank Bhd, Public Bank Bhd and CIMB Group Holdings Bhd were flat at RM8.91, RM4.12 and RM5.50 respectively, both Tenaga Bhd and IHH Healthcare Bhd shed four sen each to RM9.56 and RM5.97 respectively, while Petronas Chemicals Group Bhd eased two sen to RM6.83. Of the actives, Classita Holdings Bhd was 1.5 sen lower at 14.5 sen, Sapura Energy Bhd inched up half a sen to five sen, Advance Synergy Bhd Bhd added one sen to 17.5 sen, while MST Golf Group Bhd rose four sen to 63.5 sen. On the index board, the FBM Emas Index gained 1.81 points to 10,619.18, the FBMT 100 Index bagged 1.92 points to 10,312.8, while the FBM 70 Index advanced 6.92 points to 13,928.08. The FBM Emas Shariah Index eased 3.91 points to 10,867.64 and the FBM ACE Index fell 10.19 points to 5,243.52. Sector-wise, the Financial Services Index rose 14.22 points to 16,156.24, the Energy Index put on 3.1 points to 829.46, the Plantation Index increased 19.18 points to 7,099.89, while the Industrial Products Services Index slipped 0.35 of a point to 166.15. |
https://theedgemalaysia.com/node/672446 | Russian mercenaries return to base after deal ends mutiny | English | ROSTOV-ON-DON/VORONEZH, Russia (June 25): Heavily armed Russian mercenaries withdrew from the southern Russian city of Rostov overnight, under a deal that defused an unprecedented challenge to the authority of President Vladimir Putin and halted their rapid advance on Moscow. Fighters of the Wagner group returned to their bases in return for guarantees for their safety and the leader, Yevgeny Prigozhin, will move to Belarus, according to the agreement mediated by Belarusian President Alexander Lukashenko. However, the aborted mutiny raises big questions about Putin's grip on a country he has ruled with an iron hand for more than two decades. Italy's foreign minister said it had shattered the "myth" of Russian unity. Putin has not made public comments since the deal was struck to de-escalate the crisis. State television released excerpts on Sunday of an interview in which Putin said he was giving top priority to the conflict in Ukraine and was in constant contact with the defence ministry. However the interview appeared to have been recorded before the mutiny and he made no reference to Saturday's events. State television also said Putin would attend a meeting of Russia's Security Council this coming week, without elaborating. Prigozhin, 62, was seen leaving the district military headquarters in Rostov — hundreds of miles south of Moscow — late on Saturday, in a sport utility vehicle. His whereabouts on Sunday were not immediately clear. Western leaders had expressed concern over the turmoil in Russia, which has the world's largest nuclear arsenal. On Sunday, the foreign ministry in Moscow said China — a key Putin ally — had expressed support for the Russian leadership. China has not publicly commented on the mutiny. A senior Russian diplomat was in Beijing on Sunday for high level talks. Prigozhin, a former Putin ally and former convict whose forces have fought the bloodiest battles of the 16-month war in Ukraine, said his decision to advance on Moscow was intended to remove corrupt and incompetent Russian commanders he blames for botching the war. After capturing Rostov — the main rear logistical hub for Russia's invasion of Ukraine — the mercenaries had raced hundreds of miles north in what Prigozhin called a "march for justice", transporting tanks and armoured trucks and smashing through barricades set up to stop them, before the deal to withdraw was reached. Videos shared on social media from Rostov overnight purportedly showed the mercenaries withdrawing in a convoy of armoured vehicles, tanks and coaches to the sound of cheers, chants of "Wagner" and celebratory gunfire from residents. Reuters was able to verify the location of the video but not the date that it was filmed. "Take care of yourselves," shouted one woman. The show of support for Wagner's short-lived insurrection will alarm authorities in a country that is increasingly intolerant of public criticism of Putin and his rule. Moscow was calm on Sunday, with the Red Square closed but otherwise little evidence of increased security. Monday has been declared a non-working day to allow time for things to settle. The capital had told residents to stay indoors and deployed soldiers in preparation for the arrival of the mercenaries, who appeared to meet little pushback from the regular armed forces. Chechen special forces who deployed to the Rostov region to resist the mercenaries' advance were also withdrawing back to where they had been fighting in Ukraine, commander Apty Alaudinov said in a video published on Telegram. Under the deal, brokered late on Saturday, Kremlin spokesman Dmitry Peskov said a criminal case opened against Prigozhin for armed mutiny would be dropped, Prigozhin would move to Belarus, and Wagner fighters who rallied to his cause would face no action, in recognition of their previous service to Russia. Peskov said Lukashenko had offered to mediate, with Putin's approval, because he had known Prigozhin personally for around 20 years. In a televised address during Saturday's drama, Putin said the rebellion put Russia's very existence under threat, vowing to punish those behind the revolt and drawing parallels with the chaos of 1917 that had led to the Bolshevik revolution. Peskov declined to say whether concessions were made to Prigozhin, other than guarantees of safety for him — something he said Putin gave his word to vouch for — and for Prigozhin's men, to persuade him to withdraw all his forces. Prigozhin has for months accused Defence Minister Sergei Shoigu and the chief of the general staff Valery Gerasimov of incompetence and of withholding ammunition from his fighters, as they battled to take Bakhmut in Ukraine. Wagner, whose men in Ukraine include thousands of ex-prisoners recruited from Russian jails, has grown into a sprawling international business with mining interests and fighters in Africa and the Middle East. This month, Prigozhin defied orders to sign a contract placing his troops under the Defence Ministry's command. He launched the rebellion on Friday after alleging that the military had killed some of his men in an air strike. The Defence Ministry denied this. Italy's Foreign Minister Antonio Tajani said in an interview with Italian newspaper Il Messaggero published on Sunday that Putin created the conditions for Saturday's insurrection by allowing Prigozhin to build up such a formidable private army. "The myth of the unity of Putin's Russia is over. This internal escalation divides the Russian military deployment. It's the inevitable outcome when you support and finance a legion of mercenaries," Tajani said. "One thing is certain: the Russian front is weaker than yesterday. I hope that peace will now be closer". The revolt came just weeks into the start of Ukraine's strongest counteroffensive drive since Moscow's invasion in February last year. Russian forces shelled the southern Ukrainian city of Kherson, killing one civilian man, the local governor said on Sunday. Read also:
Russia says China expressed support after aborted mutiny |
https://theedgemalaysia.com/node/613958 | Plan to dispose of healthcare business still in early stage, says Sime Darby CEO | English | KULIM (March 28): The proposal to sell Ramsay Sime Darby Healthcare Sdn Bhd (RSDH) to IHH Healthcare Bhd for RM5.67 billion is still at a preliminary stage, said Sime Darby Bhd chief executive officer Datuk Jeffri Salim Davidson. "We have received the offer from IHH and we are going through a diligence process. That is what we are doing at the moment. Beyond that, I cannot say anything. "No agreement has been reached yet. It's too early," he told The Edge after the launch of the assembly facility for Porsche vehicles in Kulim, Kedah on Monday (March 28). On March 22, IHH submitted a confidential and non-binding offer to acquire 100% of RSDH on a cash-free and debt-free basis. RSDH, an Asian joint venture equally owned by Australia’s Ramsay Health Care and Sime Darby Holdings Bhd, has agreed to a four-week exclusivity period to allow IHH to conduct due diligence and negotiate a purchase agreement. Jeffri said if Sime Darby were to accept IHH's offer, the group would not proceed with its proposed initial public offer (IPO) for its healthcare unit. "If we accepted the offer, we would not carry out the planned IPO," he said. The group was previously reported to be seeking a US$300 million (RM1.25 billion) listing of its healthcare division on the Main Market of Bursa Malaysia. In October 2020, Sime Darby said it was considering RSDH’s listing in 2021. Last month, however, Jeffri said the IPO was put on hold and Sime Darby was looking at other options to expand its healthcare business. Shares of Sime Darby closed down five sen or 1.97% at RM2.49 on Monday, giving it a market capitalisation of RM16.96 billion. The counter saw 13.31 million shares traded. |
https://theedgemalaysia.com/node/612966 | KAB inks power purchase agreements worth RM46.8m in Thailand | English | KUALA LUMPUR (March 22): Kejuruteraan Asastera Bhd (KAB) has inked five Rooftop Solar Power Generating System Construction and Power Purchase Agreements (PPAs) worth RM46.8 million with an estimated aggregate capacity of 4,284 kilowatt-peak (kWp) in Thailand. The construction group said the contracted duration was for over 25 years. In a Bursa Malaysia filing, KAB said the agreement, amongst others, requires KAB to construct, install, operate, and maintain the Grid-Connected Photovoltaic (GCPV) solar system for Siam Machinery and Equipment Co Ltd and four subsidiaries of Aapico Group of Companies (Aapico Ayutthaya). “KAB has been actively developing a solid base within Thailand’s renewable energy space and the signing of these PPAs has demonstrated our continued foray into Thailand’s renewable energy sector as we remain steadfast to actively replenish the recurring income streams, while at the same time, further solidifying KAB’s footing in the industry. “Our commitment towards our sustainability framework has bode well for KAB as we advance our sustainability efforts to Be Good and strive to Do Good as a One-Stop Engineering and Energy Solutions Provider,” said KAB managing director, Datuk Lai Keng Onn. The total savings that the clients could achieve for the projects would be up to 135,433 megawatt throughout the project duration, the group added. Meanwhile, Lai also highlighted that there are projects in the pipeline that the company is eyeing and is confident of securing them in the near term to boost KAB’s continuity of recurring income stream. “Our continued dive into greenfield projects and brownfield energy assets are also supported by our capacity of up to RM500 million in war chest post-establishment of the Multi-Currency Islamic Medium-Term Notes programme. “This will form a strong base to our tender capacity in the renewable energy segment within the Southeast Asia region,” he shared. As at February 2022, KAB has a combined installed capacity of 12,695 kWp of solar projects, which include 5,073 kWp in Thailand and 7,622 kWp in Malaysia At noon break on Tuesday (March 22), shares in KAB closed one sen or 2.56% lower to 38 sen, valuing the construction group at RM674.70 million. |
https://theedgemalaysia.com/node/624230 | 4G availability in Malaysia heading towards 100% as of 1Q22 — survey | English | KUALA LUMPUR (June 16): The 4G Availability in Malaysia is heading toward 100% as of the first quarter of 2022 (1Q22), according to Seattle headquartered Internet access performance metrics provider Ookla. In a survey report released on Thursday (June 16), the firm said that in Malaysia, while Digi had the fastest 4G download speeds, Maxis won on upload in 1Q22. Meanwhile, Putrajaya leads 4G Availability performance for Malaysia’s regions. However, the firm said the 5G rollout in Malaysia is still facing challenges. Commenting on the region, Ookla said the fastest 4G speeds were in Singapore, while the fastest LTE upload speeds were in Vietnam. It said 4G availability was above 80% across Southeast Asia. Singapore is the leader with 94.5% availability, with Malaysia second at 92.3% and Indonesia third with 90.5%. Among the service providers in Malaysia, Maxis was the leader for 4G at 94.6%, U Mobile second at 94.5%, Unifi third at 92%. Celcom fourth at 91.1% and Digi fifth with 89.9%. Ookla however said Digi has the fastest 4G download speeds, while Maxis wins on upload. Digi topped the download list with 28.08 Mbps while Maxis led the upload list with 10.59 Mbps. |
https://theedgemalaysia.com/node/619069 | Court dismisses Ahmad Zahid's bid to gain access to 15 witness statements recorded by MACC | English | KUALA LUMPUR (May 9): The High Court on Monday dismissed an application filed by former deputy prime minister Datuk Seri Dr Ahmad Zahid Hamidi to gain access to the statements of 15 witnesses recorded by the Malaysian Anti-Corruption Commission (MACC). Justice Datuk Collin Lawrence Sequerah ruled that the documents were privileged documents and should not be shared with the defence. He also ruled that sharing the recorded statements is against public policy as it may lead to tampering of witnesses. He said Section 124 of the Evidence Act stipulates that no public officer shall be compelled to disclose communications made to him in official confidence when he considers that the public's interest would suffer by the disclosure, unless the court gets the officer's head of department to certify in writing that such disclosure would not be detrimental or prejudicial to public interest. Justice Sequerah cited the High Court and Federal Court's decisions in the recent Datuk Seri Najib Razak case against the public prosecutor as grounds for dismissing the application. The documents' confidentiality, if breached, the court added, would result in hindrance to the consideration of justice. "Hence, the application is dismissed," the judge said. Ahmad Zahid's counsel, led by Hisyam Teh Poh Teik, Datuk Ahmad Zaidi Zainal and Hamidi Md Noh, had wanted the recorded statements of the 15 witnesses, all of whom had been offered by the prosecution to the defence, before the former deputy prime minister took the stand. Among the witnesses was Datuk Seri Mohamad Nasaee Ahmad Tarmizi, a vital witness who was not called by the prosecution but offered to the defence. However, this was challenged by the prosecution led by Deputy Public Prosecutor Datuk Raja Rozela Raja Toran, who said these recorded statements were privileged documents and classified under the Official Secrets Act 1972. She said if these were shared, it would hinder witnesses from coming forward to testify for the case. Ahmad Zahid, who is Bagan Datoh member of parliament, was ordered by Justice Sequerah to enter his defence in respect of all 47 corruption charges in relation to Yayasan Akalbudi, a foundation which he leads. Twelve of them are criminal breach of trust charges, eight are for graft, and 27 are for money laundering. Trial of the case will resume on May 23 to 26. Read also:
Zahid's defence to be heard earlier on Wednesday
Yayasan Akalbudi: High Court orders Zahid to enter defence for all 47 charges in trial |
https://theedgemalaysia.com/node/600320 | Foreign selling extends to fourth week at slower pace of RM348m, says MIDF | English | KUALA LUMPUR (Dec 20): Foreign selling of Malaysian equities extended for a fourth week, albeit at a slower pace, with the outflow narrowing to RM348.36 million last week versus RM383.76 million in the preceding week. In its weekly fund flow report on Monday (Dec 20), MIDF Research’s Shahira Rahim said as the market reopened last Monday, local institutions and retailers were net buyers amounting to RM9.02 million and RM44.19 million respectively. Meanwhile, she said, foreign investors were net sellers to the tune of RM53.21 million. “Foreign investors were net sellers every day of the week. The largest foreign outflow was recorded on Tuesday, which came in at RM153.28 million. “Retailers were net buyers every day of the week. “The largest net buying by retailers was recorded last Monday (RM44.19 million). For the week, retailers net bought RM126.45 million worth of equities on Bursa [Malaysia],” she added. Meanwhile, Shahira said local institutions recorded cumulative weekly net buying to the tune of RM221.92 million. She said local institutions were net buyers for all days of the week. “The largest net buying [occurred] on Tuesday to the tune of RM115.82 million. “Since the beginning of 2021, cumulatively, retailers were the only net buyers of our equity market to the tune of RM12.44 billion. “Local institutions and foreign investors were net sellers to the tune of RM9.31 billion and RM3.13 billion respectively,” she added. Shahira said that in terms of participation, retail investors, local institutions and foreign investors recorded weekly movements of -4.93%, -0.59% and 15.11% respectively in average daily trade value. Commenting on regional markets, Shahira said the majority of equity markets worldwide were in mixed territory due to: i) inflation concerns; ii) uncertainty over the Omicron variant of Covid-19; and iii) hawkish pivots by the US Federal Reserve which dampened investor confidence in the market. |
https://theedgemalaysia.com/node/605032 | Application period for URUS extended until March 31 | English | KUALA LUMPUR (Jan 25): The Association of Banks in Malaysia (ABM), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), Association of Development Finance Institutions of Malaysia (ADFIM) and Agensi Kaunseling dan Pengurusan Kredit (AKPK) announced on Tuesday (Jan 25) that the closing date for the submission of applications for the Financial Management and Resilience Programme (Program Pengurusan dan Ketahanan Kewangan or URUS) had now been extended until March 31, 2022 from Jan 31, 2022. The entities said in a statement that eligible bottom 50% income group (B50) customers who are in need of further financial assistance may apply for URUS with their banks by March 31. They added that individual customers who are under an existing repayment assistance programme provided by banks as at Sept 30, 2021 and meet all of the following criteria may apply for URUS: According to the statement, eligible customers who wish to apply for URUS may do so via their banks’ Internet banking or telephone banking channels or walk-in at branches. To ease the application process, it said customers with loan/financing facilities from multiple banks only need to apply with any one of their banks where they currently have performing facilities under an existing repayment assistance programme. It added that for eligible B50 customers who had signed up for banks' flood relief assistance programmes, the URUS application closing date had been extended until July 31, 2022 or upon the expiry of the flood relief assistance programme, whichever is earlier. “Banks remain committed to assisting their customers during this challenging period, and are mindful that customers would require time to get back on their feet financially as the economy gradually recovers. “Customers who are still in need of financial assistance but do not qualify for URUS are encouraged to contact their banks to discuss other repayment arrangements that can be tailored to their financial circumstances,” noted the statement. The entities also reminded customers not to engage with any third parties claiming to be agents/representatives of banks in relation to repayment assistance matters — as banks and the AKPK do not appoint or authorise any third parties or agents to act on their behalf for this purpose. |
https://theedgemalaysia.com/node/613881 | Hextar Global拟1020万购印尼农化公司99.91%股权 | English | （吉隆坡28日讯）Hextar Global Bhd计划以1020万令吉，收购印尼农化公司PT Agro Sentosa Raya（PTASR）的10万9900股或99.91%股权。 Hextar Global今日向大马交易所报备，已就收购上述股份签署一项售股协议，预计将于第二季完成收购，届时将对集团盈利作出贡献。 “将通过内部资金，完全以现金进行这项收购计划。收购价是基于PTASR截至去年12月杪经审核财务报表的净资产。 据Hextar Global称，PTASR成立于2004年，在印尼从事化工业务超过15年，主要业务包括化学特种应用的配方、混合和重新包装，以及协助客户分销产品的物流服务。 “尽管新冠疫情导致经济放缓，但PTASR的营业额在过去3个财政年连续录得增长，从2019财年的826亿印尼盾，增至2021财年的1027亿印尼盾。” “因此，收购计划将进一步提升Hextar Global在区域农化市场的地位。” 该集团指出，PTASR被视为一家关联公司，因由Hextar Holdings私人有限公司控有，而Hextar Global执行董事拿督王子铭（图）是后者的董事兼大股东。 王子铭表示，拟议收购是进一步巩固区域业务，并扩大产品范围和创造增收协同效应的另一步。 “我们将接触到更多化学品牌供应商，并在内部实现进一步发展，很高兴能够受益于PTASR的实力和专业知识，从而在印尼建立更稳固的业务基础。” “Hextar的策略一直是藉并购来支持增长。我们将不断物色投资机会，以辅助和巩固已取得的成就，加强集团的增长，令我们能够继续为利益相关者提供更多的长期价值。” （编译：陈慧珊） English version：Hextar Global proposes to acquire 99.91% stake in Indonesian agrochemical company for RM10.2m |
https://theedgemalaysia.com/node/661386 | 不敌套利活动 马股开盘微跌 | Mandarin | （吉隆坡30日讯）蓝筹股惨遭套利，拖累马股开盘下跌。 截至早上9时05分，富时隆综指挫2.86点，至1417.49点，周三挂1420.35点。 富时隆综指以1417.81点报开，降2.54点。 上升股188只，下跌股104只，203只无起落，1796只无交易及75只暂停交易。 马股总成交量为2亿86万股，总值7642万令吉。 乐天交易私人有限公司股票研究部副总裁唐栢麟表示，由于对银行业的担忧缓解，加上预期美联储可能在5月停止加息以及美国收益报告乐观，华尔街隔夜道琼斯工业平均指数上涨323点，标准普尔500指数上扬56点。 纳斯达克综合指数上升210点，而美国10年期国债收益率保持在3.57%。 唐栢麟说：“随着市场情绪改善，我们认为昨日（周三）本地交易所的持续上升趋势将保持完好，并预计富时隆综指今天将徘徊于1420点至1435点区间，而原棕油价格收于每吨3700令吉以上的一周高位，促使种植股重新吸引购兴。” 同时，马六甲证券私人有限公司正在关注首相拿督斯里安华访问中国的进展，因为交易员可能会对巨额投资的预期进行投机。 重量级股方面，国家能源（Tenaga Nasional Bhd）跌2仙，至9.12令吉，以及大马银行集团（AMMB Holdings Bhd）挫2仙，报3.71令吉。 明讯（Maxis Bhd）降3仙，至4令吉，天地通数码网络（CelcomDigi Bhd）下滑3仙，至4.25令吉，联昌国际集团（CIMB Group Holdings Bhd）减3仙，报5.28令吉，以及马电讯（Telekom Malaysia Bhd）萎缩3仙，至4.92令吉。 至于热门股，民泰近电（Bintai Kinden Corp Bhd）暴跌2仙，至4仙，YBS International Bhd升4.5仙，报74.5仙，登高控股（Tanco Holdings Bhd）起0.5仙，至45.5仙，以及Joe Holding Bhd企于1.5仙。 （编译：魏素雯） English version：Bursa opens lower on profit-taking |
https://theedgemalaysia.com/node/643341 | CLMT, F&N, UEM Edgenta, Duopharma, Hup Seng, Perstima, Kejuruteraan Asastera, EG Industries, Paragon Globe, Signature International, EcoFirst and Stella | English | KUALA LUMPUR (Nov 9): Here is a brief recap of some corporate announcements that made news on Wednesday (Nov 9) involving CapitaLand Malaysia Trust (CLMT), Fraser & Neave Holdings Bhd (F&N), UEM Edgenta Bhd, Duopharma Biotech Bhd, Hup Seng Industries Bhd, Perusahaan Sadur Timah Malaysia Bhd (Perstima), Kejuruteraan Asastera Bhd, EG Industries Bhd, Paragon Globe Bhd, Signature International Bhd, EcoFirst Consolidated Bhd and Stella Holdings Bhd. CapitaLand Malaysia Trust is buying 91.8% of the total strata floor area of retail parcels in Penang's Queensbay Mall from parties related to CapitaLand Investment Ltd (CLI) for RM990.5 million in a related-party transaction. The acquisition sum represents a discount of about 1% to the independent valuation of RM1 billion commissioned by CLMT's trustee MTrustee Bhd. Taking into account the acquisition fees and expenses, the total acquisition cost is RM1.03 billion and will be funded by a combination of bank borrowings and proceeds from a private placement. The private placement entails the issuance of up to 1.04 billion new CLMT units to raise gross proceeds of up to RM495.25 million. Fraser & Neave Holdings Bhd aims to raise up to RM800 million in capital expenditure (capex) for the financial year ending Sept 30, 2023, with most of the funds earmarked for its dairy farm business, the food and beverage giant has completed the acquisition of agricultural land — Ladang Permai Sdn Bhd — in Gemas, Negeri Sembilan for RM215.59 million, and the group is on track to resume its plans for the upstream fresh milk business — for downstream production and distribution of fresh milk. This will enable the group to own vertical integration businesses and operations based on locally-grown crops for feed to F&N’s dairy farm, which in turn will lower the value chain cost per litre. The move will also help F&N to be less dependent on imported milk, and promote the local agriculture industry. UEM Edgenta Bhd is selling its 51% stake in Faber Sindoori Management Services Pte Ltd for 700 million rupees (RM40 million) to Apollo Sindoori Hotels Ltd (ASHL). The group said its wholly-owned subsidiary Edgenta Facilities Sdn Bhd has entered into a share purchase agreement with ASHL, which holds the remaining 49% in Faber Sindoori, which is mainly involved in the provision of integrated facilities management services in India. The proceeds from the sale will be used for potential investments, including capital expenditure for growth opportunities. Duopharma Biotech Bhd's third quarter net profit slipped 3.62% to RM16.35 million from RM16.96 million a year earlier, pressured by higher finance and operating costs. Revenue increased 3.05% to RM177.07 million from RM171.84 million. Its bottom line was pressed by finance costs rising 97.7% to RM3.7 million from RM1.87 million in 3QFY21, and operating costs climbing 10.26% to RM47.46 million from RM43.04 million. For the cumulative nine months ended Sept 30, 2022, Duopharma's net profit jumped 5.97% to RM52.95 million from RM49.97 million in the same period last year while revenue increased 10.33% to RM544.76 million from RM493.73 million. Hup Seng Industries Bhd’s net profit for the third quarter ended Sept 30, 2022 dropped 6.05% to RM3.84 million from RM4.08 million in the same period last year, dragged down by higher raw material costs. Quarterly revenue, however, climbed 8.35% to RM70.19 million from RM64.79 million on improved contribution from both domestic and export markets. The group recommended an interim dividend of one sen per share. For the nine-month period, Hup Seng’s net profit fell 22.17% to RM13.64 million from RM17.53 million a year prior despite cumulative revenue growing 4.31% to RM223.26 million from RM214.03 million. Perusahaan Sadur Timah Malaysia Bhd (Perstima) posted a net loss of RM1.03 million for its second quarter ended Sept 30, 2022 (2QFY23) compared to a net profit of RM10.94 million in the same period last year, due to unrealised exchange loss of RM26.9 million despite registering higher sales volume. The last time Perstima made losses was over two decades ago — back in 3QFY01 when it incurred a net loss of RM22.07 million. The group’s latest financial performance was also in stark contrast to its best ever quarterly net profit of RM31.18 million in the immediate preceding quarter (1QFY23). Top line wise, it climbed 62.6% to a record high of RM465.18 million from RM286.08 million in the same period a year ago driven by higher selling price coupled with higher sales volume. Engineering and energy solutions provider Kejuruteraan Asastera Bhd (KAB) is expanding its sustainable energy solutions (SES) segment through the proposed acquisition of the entire equity of Future Biomass Gasification Sdn Bhd (FBG) for RM15 million. KAB said FBG, a wholly-owned subsidiary of Future NRG Sdn Bhd, owns a biogas power plant in Kedah with an installed capacity of 2.4 megawatt. KAB said it would benefit from long-term recurring income via FBG’s existing renewable energy power purchase agreement with Tenaga Nasional Bhd. The agreement, which is effective for 16 years until March 2034, enables FBG to supply power to the national grid. Electronic manufacturing service provider EG Industries Bhd expects its RM180 million Smart Factory 4.0 in Batu Kawan, Penang, to potentially create more than 1,000 high-value jobs for the local community upon its commencement in 2024. EG Industries said that its first fully automated Lights-Out Smart Factory 4.0 will be situated on a six-acre piece of industrial land under its unit SMT Technologies Sdn Bhd. It said the lights-out methodology would create a completely networked environment that digitises material flows for autonomous manufacturing, controlled by a remote team of highly specialised experts to manage data, production planning and quality. Paragon Globe Bhd has proposed to acquire a 42.29ha parcel of land in Johor Bahru for RM71.5 million, which is more than half of its market capitalisation of RM130.66 million. The land is for development of industrial properties with an estimated gross development value of up to RM626 million. The group will develop 171 units of industrial properties on the land over eight to 10 years from 2024. Signature International Bhd’s co-founder Datuk Michael Chooi Yoey Sun has ceased to be a substantial shareholder of EcoFirst Consolidated Bhd. Chooi, who emerged as the property developer’s substantial shareholder in January this year, disposed of 10 million shares on the open market on Monday (Nov 7). This trimmed his stake in EcoFirst to 4.84% from 5.7%. Stella Holdings Bhd has announced the resignation of its group chief executive officer Ng Jun Lip, and the appointment of major shareholder Datuk Lau Beng Sin as the new managing director. The group, which is involved in construction, property development, oil & gas support services and healthcare services, said Ng resigned to pursue his other personal interest. Lau's appointment as managing director took effect immediately. |
https://theedgemalaysia.com/node/641577 | Maybank: Competition for deposits to intensify as interest rates rise | English | KUALA LUMPUR (Oct 27): Malayan Banking Bhd is expecting competition for deposits to intensify among industry peers as interest rates go up, but the bank is going to refrain from competing irrationally, said group president and chief executive officer Datuk Khairussaleh Ramli. “We are [already] seeing some form of competition, potentially towards the end of the year, that will get a bit more intense,” he told reporters after announcing Maybank’s M25+ midterm strategy on Thursday (Oct 27). Bank Negara Malaysia has raised overnight policy rate (OPR) three times consecutively so far this year by a total of 75 basis points to 2.5% from a historical low of 1.75%, and the central bank is widely expected to raise the benchmark interest rate further in its 2022 final Monetary Policy Committee meeting next Thursday (Nov 3). Khairussaleh said Maybank will focus on differentiating itself by providing more value-added services to customers instead of competing purely on offering attractive interest rates. “Throwing price is easy, but I think that is not our strategy, and we don’t intend to compete on pricing, but more on value and solutions,” he said. “Now, our expectation is that interest rates may go higher, and hence we may not just be offering long-term deposits, especially on the FD [fixed deposits] side. From our business point of view, we like to focus on fundamentals, like in terms of offering what the customers need. “So, not necessarily throwing rates, it is about building capability in terms of transactions, lifestyle, and how we can enable banking solutions from their lifestyle point of view. For SMEs (small-and-medium enterprises) and even the corporate side, how can we offer them in terms of cash management, payroll, et cetera,” he explained. In announcing the group’s M25+ midterm strategy, Khairussaleh also said Maybank has to equip itself with the skills, infrastructure and tools to deliver “hyper-personalised” customer service offerings in real time instead of the conventional one-size-fits-all model. “The decision to further refine the group’s strategy was driven by the need for the organisation to remain agile for continued growth and delivery of sustained returns beyond 2025. “It is critical for us to identify and accelerate the development of new capabilities now, especially in technology and people, so that the organization remains relevant beyond 2025,” he said. Khairussaleh said the refinement of Maybank’s strategy has taken into account the economic conditions like rising inflationary and looming recessionary pressures; the increasing competition within the financial services space from non-bank players; the greater focus by customers and investors for sustainable practices and the demand for transition solutions as more organisations migrate towards net zero carbon emission goals. |
https://theedgemalaysia.com/node/649899 | Currency: Ringgit, major currencies hit record lows amid US inflation fight | English | This article first appeared in Capital, The Edge Malaysia Weekly on December 26, 2022 - January 1, 2023 FROM the yen in the East to the pound in the West, it has been a wild ride for global currencies in 2022, in the wake of the supercharged US dollar that stemmed from the world’s largest economy’s battle against runaway inflation. To rein in inflation in the US, which reached its 40-year high of 9.1% in June, the US Federal Reserve had raised the benchmark rate by a total of 425 basis points (bps) in just nine months — its fastest pace of increase in decades — to a 15-year high of 4.5%. The rapid rate hike in the US and rising inflation worldwide also prompted central banks around the world to raise their interest rates. While the interest rate hike in the US was cushioned by its heating economy, the environment sparked renewed recession fears in other economies still recovering from the Covid-19 pandemic. As a result, global investors continued to pile into the US dollar as a safe-haven asset, pushing the greenback higher. Few central banks were able to match the pace in the US due to a less-robust domestic economy, Malaysia being one of them. Compared with the Fed, Bank Negara Malaysia had raised the overnight policy rate (OPR) by 100bps this year, to 2.75% from 1.75% previously. Amid the wide gap between Malaysia and US policy rates, the ringgit fell to a record low of 4.7477 against the US dollar on Nov 4, compared with 4.7125 at the height of the 1998 Asian financial crisis. Several central banks went against the tide. The Bank of Japan (BoJ) had little intervention against the yen’s free fall to its 32-year-low against the US dollar as it kept interest rates ultra low despite inflation hitting 3.7% in October, compared with its 2% target. The rationale is that raising rates may stifle the still-weak consumer demand, which is not the root cause of inflation — but which is due rather to the strong US dollar, supply shortages and high energy prices. Japan was joined by China, which cut rates in August, as growth in 1H2022 came in at just 2.5% compared with the initial full-year target of 5.5%. Meanwhile, crisis-hit Turkey also resorted to slashing interest rates this year, to 9% from 14%, as inflation ran at nearly 85%, 17 times higher than its original target. President Recep Tayyip Erdoan persisted with the view that high borrowing costs cause high inflation, and is banking that lower borrowing costs will propel the country’s economy ahead of elections in June next year. Domestic issues added to the weakness of local currencies. Despite Malaysia being a commodity exporter, the ringgit was overshadowed by pre-election political overhang for most of the year, and the country’s stretched fiscal position due to high subsidy costs for fuel to rein in inflation. Similarly in Europe, the energy crisis was the main culprit as the Russia-Ukraine conflict triggered a jump in commodity prices, compounded by the gas shortage from the absence of Russian gas. Since the start of the year, the pound fell as much as 21% to its record low of 1.0689 against the US dollar on Sept 26, following the government’s now-defunct proposal to cut corporate tax and expand energy subsidies. This forced the Bank of England to step in and buy government bonds, and halted plans to unwind its quantitative easing portfolio until November. The euro, similarly, fell 15% to below parity against the US dollar at 0.9594 on Sept 27 — its lowest in 20 years. Elsewhere, the yen fell as much as 23% this year on Oct 20 due to the interest rate gap between the BoJ and the Fed, while the renminbi fell as much as 13% on Oct 31 due to the nation’s zero-Covid policy, which stifled economic activities in the world’s second-largest economy. It was a rougher ride in the emerging markets. In Sri Lanka, the currency crunch resulted in an economic crisis as the country was unable to withstand the impact of the strong dollar, higher borrowing costs and significantly higher imports. As its foreign reserves dried up, the nation defaulted on foreign debts, driving the Sri Lankan rupee to hyperinflationary levels. Sri Lanka is one of three emerging Asian countries, alongside Bangladesh and Pakistan, that are set to receive multibillion-dollar bailout packages from the International Monetary Fund (IMF). But the region has seen one economy survive the wrath of the US dollar impact — Singapore. The Singapore dollar saw some weakening against the greenback, but much less at around 4% at its lowest compared with its regional peers. In its case, the local currency has stayed in investors’ favour due to the country’s high foreign currency reserves, strong current account surplus and a well-managed currency policy. Against the Singapore dollar, the ringgit fell to its all-time low of 3.3764 on Nov 8, before rebounding to 3.2553 on Dec 16. The positive news is that there has been some pullback in the US dollar strength since early November, following the Fed’s indication of a slower interest rate regime as US inflation has come down from its June peak to 7.1% in November — its weakest showing this year. The Fed’s latest hike in December came in at 50bps, signalling a slowdown, although Fed chair Jerome Powell has committed to more hikes next year to ensure inflation is truly under control, with rates above 5% seen next year. Just last week, BoJ surprised the market by expanding the range of benchmark government bonds to -0.5% to 5%, which traders say could potentially mark the end of this year’s US dollar rally and raises hopes of the eventual tightening of its short-term policy rate. In Malaysia, the Monetary Policy Committee (MPC) said in November that monetary policy decisions will continue to depend on evolving conditions and their implications on the overall outlook to domestic inflation and growth. Any adjustments to monetary policy settings going forward would continue to be done in a measured and gradual manner to support economic growth in a stable price environment, MPC added. The ringgit has rebounded to 4.4242 against the US dollar at the time of writing, as the conclusion of the 15th general election lent support to sentiment — although the currency is still down 6.19% year to date. Analysts expect the ringgit to see some continued pressure in the early part of the year before settling stronger at end-2023. However, the performance hinges on the crude oil price outlook, as well as the performance of the global economy, which affects exporting countries like Malaysia. In October, the IMF lowered its global gross domestic product growth outlook of 2.7% for 2023, compared with its 3.2% forecast for 2022. PublicInvest Research points to Malaysia’s sizeable current account surplus and a continued economic recovery, namely in the tourism sector, to support its performance. “If the Fed fails to combat inflation, we believe there are certain uncertainties and ramifications for global capital flows, where considerably higher US policy rates will cause portfolio movements from the emerging countries back to the advanced economies,” says the research house, which sees the ringgit at 4.30-4.35 against the US dollar by end-2023. However, CGS-CIMB Research sees the ringgit facing further pressure in 1H2023 amid a potential economic slowdown, before strengthening in 2H2023 “especially if global demand improves”. The research house expects the ringgit to average at an even weaker rate of 4.50 against the US dollar in 2023, compared with its 2022 forecast of 4.40, before ending the year at 4.42. 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/676364 | Microsoft teams faces EU antitrust probe in Salesforce clash | English | (July 27): Microsoft Corp faces a European Union (EU) probe over concerns it’s driving out competition by unfairly bundling its Teams video conferencing app with its popular business software suite. The European Commission said on Thursday (July 27) it opened the formal investigation to examine whether Microsoft may have breached EU competition rules by tying or bundling Teams to its Office 365 and Microsoft 365 packages. The EU’s antitrust branch said Microsoft’s actions may have given Teams an advantage over rivals by not giving customers choice over viable alternatives and the company may have also limited operability with rival software platforms. Demand for videoconferencing boomed after the coronavirus pandemic that consigned hundreds of millions of workers to their homes. But critics say Microsoft was able to leverage its power over PC software to make Teams the easiest option for remote workers already using programs like Word and Excel. “We must therefore ensure that the markets for these products remain competitive, and companies are free to choose the products that best meet their needs,” the EU competition commissioner Margrethe Vestager said in a statement. The EU’s new probe comes three years after Salesforce Inc’s messaging platform Slack made a complaint to the EU’s antitrust watchdog. The commission told journalists on Thursday it will first seek to “identify if there’s a breach of antitrust” rules. “As of today, what I can say is that we have not received any commitment proposal by Microsoft that would resolve our concerns,” spokeswoman Arianna Podesta said at a regular news briefing. “It’s too early in the investigation to establish what would be required to remedy a potential abuse.” Slack was acquired by Salesforce, the leader in cloud-based customer management software, in a US$27.7 billion (RM125.22 billion) deal in 2021. Like many of its peers, it’s been hit by a slowdown in tech spending after the pandemic — announcing plans to cut about 10% of headcount after staffing nearly tripled in the past four years. Salesforce declined to comment on the EU’s decision. Microsoft has spent years battling antitrust regulators in the US and Europe over complaints that it unfairly tied products and blocked rivals’ access to the desktop Windows software. But it’s not faced any formal EU market dominance scrutiny in a decade, since a 2013 fine for not complying with a pledge to offer a choice of web browsers. “We respect the European Commission’s work on this case and take our own responsibilities very seriously,” a Microsoft spokesperson said. “We will continue to cooperate with the Commission and remain committed to finding solutions that will address its concerns.” The Redmond, Washington-based company faces at least two more complaints with EU regulators, including one by a European cloud-company policy group with Amazon.com Inc’s AWS among its members, that accuses Microsoft of using unfair licensing practices to lure EU customers to its cloud infrastructure. NextCloud GmbH in 2021 filed another complaint against Microsoft over bundling its OneDrive cloud system with Windows, which is still pending. EU regulators have since also started quizzing competitors and customers informally about Microsoft’s Azure cloud business. Apart from attention into possible abuse of dominance cases, Microsoft also continues to face scrutiny over its record US$69 billion deal for games developer Activision-Blizzard. The EU cleared the mega-deal earlier this year.
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https://theedgemalaysia.com/node/618054 | Lotte Chemical Titan 1Q net profit down 76% on-year as feedstock cost rises with crude oil prices | English | KUALA LUMPUR (April 28): Lotte Chemical Titan Holding Bhd reported on Thursday (April 28) a 76% drop in first quarter net profit to RM104 million from RM440 million a year earlier as the petrochemicals manufacturer contended with a 64% increase in feedstock cost that is highly correlated with crude oil prices, which have climbed past US$100 a barrel due to Russia-Ukraine conflict. In a Bursa Malaysia filing, Lotte Chemical Titan said revenue, however, rose to RM2.76 billion in the first quarter ended March 31, 2022 (1QFY22) from RM2.37 billion a year ago mainly due to the increase in the company's average product selling price. "The business environment is expected to be challenging in the immediate term," Lotte Chemical Titan said. Lotte Chemical Titan did not declare any dividend for 1QFY22. The company said its average plant utilisation rate was recorded at 85% in 1QFY22 compared to 88% a year earlier. "Profit before tax [was] reduced to RM105.8 million from RM567.1 million mainly due to the drop in gross profit margin resulting from [the] 64% increase in feedstock costs and the lower foreign exchange differences of RM1.1 million from RM21.7 million," Lotte Chemical Titan said. In quarterly terms, Lotte Chemical Titan said 1QFY22 profit before tax decreased to RM105.8 million from RM129 million in 4QFY21 mainly due to firmer feedstock costs. "The group's revenue increased by 3% to RM2.76 billion from RM2.68 billion in the preceding quarter mainly due to higher average product selling price," the company said. Looking ahead, Lotte Chemical Titan said the results of its operations for FY22 are expected to be primarily influenced by the Russia-Ukraine conflict which has caused high volatility in crude oil prices besides the progress of Covid-19 policy relaxation in Malaysia and across the Southeast Asia region. The company said its FY22 operating results are also expected to be primarily influenced by "the demand and supply balance of petrochemical products in the market and our (Lotte Chemical Titan) ability to optimise production output and economic efficiencies". At 3:11pm on Thursday, Lotte Chemical Titan's share price fell five sen or 2.21% to RM2.21, which gives the company a market capitalisation of about RM5.04 billion. Lotte Chemical Titan has 2.28 billion outstanding shares, according to its latest quarterly financial report. |
https://theedgemalaysia.com/node/661903 | Sunsuria explores EV venture with China’s IAT Automobile | English | KUALA LUMPUR (April 3): Property developer Sunsuria Bhd has inked a memorandum of understanding (MOU) with China-based IAT Automobile to set up an operation base in Malaysia for electric vehicle (EV) manufacturing. The MOU is part of China’s RM170 billion foreign direct investment commitments secured by Malaysia in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s visit to China last week. IAT is China’s largest independent car design company, Sunsuria said. The two parties have formed a joint venture company Sunsuria IAT (M) Sdn Bhd, which is 51%-owned by Sunsuria, while the IAT holds the remaining 49%. Under the MOU, both parties have agreed to undertake research and development (R&D) in the area of EVs and related products, and to create Malaysia’s own EV brand. They further expect to build and develop EV innovation parks, and to jointly establish the Asean Automotive Design and Innovation Centre. Shares in Sunsuria surged 17.5 sen or 53.03% on Monday (April 3) following news of the MOU over the weekend. It saw 11.18 million shares traded, 23 times its 65-day average of 475,300 shares. After jumping to 54 sen per share earlier, the counter settled at its one-year high of 50.5 sen, giving it a market capitalisation of RM452.44 million Sunsuria said the MOU enables the company to collaborate with IAT to tap into R&D in the area of EV and related products, provide automotive education, and talent cultivation for Malaysia and Southeast Asia to enhance operational efficiency. For the first quarter ended Dec 31, 2022 (1QFY2023), Sunsuria’s net profit fell 86.06% to RM1.06 million from RM7.6 million a year earlier, while revenue slipped 25.4% to RM78.87 million versus RM105.73 million previously. Earnings per share declined to 0.12 sen from 0.85 sen. The company attributed the lower earnings to weaker revenue, higher sales and marketing expenses, and administrative expenses. |
https://theedgemalaysia.com/node/656483 | Bits + Bytes: A Miscellany of Technology | English | This article first appeared in Digital Edge, The Edge Malaysia Weekly on February 27, 2023 - March 5, 2023 Malaysia’s drone industry is flying high after ranking 21st on the Drone Readiness Index (DRI), up from 30th spot last year. It is also the top-ranked Southeast Asian country on the index. The country’s core readiness for drones improved by 29 percentage points in the DRI, as it hit 60%, up from 31% the previous year — a clear indicator of the country’s commitment to fast-tracking its potential in drone technology. This puts the drone industry in Malaysia on a clear growth trajectory with the potential to contribute RM50.71 billion to the country’s gross domestic product (GDP) and create 100,000 job opportunities by 2030. The yearly DRI updates, which are part of Drone Industry Insights (DII)’s annual Drone Regulation Report, rate participating countries on six parameters: applicability, operational scope, human resources, administrative infrastructure, certification and airspace integration. Malaysia achieved a 100% rating in applicability, human resources and certification, with areas to improve in operational scope (50% readiness), airspace integration (40% readiness) and administrative infrastructure (25% readiness). PLUS Malaysia Bhd, Malaysia’s largest motorway service provider, has moved its finance and human resource (HR) processes to the cloud with Oracle Fusion Cloud Applications Suite to improve operational efficiency and decision-making. The company will be employing Oracle’s enterprise resource planning (ERP) and human capital management (HCM) to increase productivity, expand insights and improve decision-making by managing finance and HR data on a single integrated cloud platform. PLUS Malaysia is the largest highway operator in Malaysia, serving more than 1.7 million commuters daily. With finance and HR data dispersed across multiple legacy applications, PLUS Malaysia struggled to gain an accurate view of its business, which affected its ability to make timely and well-informed decisions. “PLUS Malaysia operates a 1,130km network of eight highways, which require continuous maintenance and upgrades. Our biggest challenge has been integrating multiple operating systems and ensuring employees, especially remote workers, stay connected,” said Kang Yew Jin, chief technology officer at PLUS Malaysia. EasyStore has acquired NovoChat, a Singapore-based chat commerce platform, to enable EasyStore merchants to manage and automate customer communication with the help of ChatGPT across multiple chat channels. It includes the use of messaging applications such as WhatsApp, Messenger, LINE and Telegram from a single central inbox, simplifying the process for small and medium enterprises (SMEs) navigating the numerous chat commerce platforms. PolicyStreet is launching its Damage Protection Plan to protect online shoppers in Malaysia by allowing them to insure their purchases against accidental damages. For less than RM1, shoppers will receive coverage of up to RM10,000 with PolicyStreet’s Damage Protection Plan on more than 800 categories of items available on partnering e-commerce platforms. The protection plan protects shoppers’ purchases against accidental damage, fire, flood and theft for up to six months after delivery. Baby clothing, furniture, travel and luggage, mobile phones and gadget accessories are also eligible for wear-and-tear damage compensation for up to three months after purchase. The Damage Protection Claims Platform simplifies the claims process by providing shoppers with clear guidelines. After submitting a claim, shoppers can track the status of their claims through the portal and decide where the claims are to be paid to. Processing periods for e-wallets will take three to five working days, while bank transfers will take seven to 10 working days. CelcomDigi, Maxis Bhd, Telekom Malaysia Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd will offer a special prepaid mobile internet plan to eligible Malaysians from Feb 28 until Dec 31, 2023. Pakej Perpaduan comes with a speed of 3Mbps and a 30GB data quota for only RM30 for six months. This is in response to the government’s recent announcement of the Pakej Perpaduan Prabayar Mudah Alih (Pakej Perpaduan), a government initiative with Malaysian telecommunication providers targeted at underserved communities, specifically youths aged below 30, senior citizens, veterans of uniformed bodies, persons with disabilities and the B40 (low-income group). This initiative is consistent with the government’s goal of lowering people’s living costs and meeting their connectivity needs. Southeast Asia’s largest integrated car e-commerce platform, CARSOME, has ventured into the after-sales car service market with the launch of two service centres in Petaling Jaya and Ampang, respectively. Car owners can book an appointment for an initial inspection through https://service-appointment.carsome.my/. Apart from serving pre-owned car buyers, the service centres will also serve anyone looking for car maintenance or a trusted car maintenance partner after their principal warranty period expires. Car maintenance and repair services will be provided by certified mechanics, and customers will receive transparent and upfront billing for the services required. Each car maintenance service will include a complimentary 20-point inspection to identify any underlying issues before receiving the best-recommended maintenance package provided by experienced service mechanics. ScaleUp Accelerator Sdn Bhd and Proficeo Consultants Sdn Bhd in partnership with Penjana Kapital Sdn Bhd and Malaysia Digital Economy Corporation (MDEC), have selected the first two cohorts of 24 founders for the 100Soonicorns programme designed to groom the country’s next unicorns. Soonicorns, or “soon-to-be unicorns”, are startups with the growth potential to become unicorns, which are privately held startups valued at over US$1 billion (RM4.44 billion). The selected candidates are all CEOs or C-level founders. To participate, invited startups need to have raised at least US$1 million from a venture capital firm or institutional investor, or have generated US$2 million in revenue over the last 12 months. The candidates will be engaging with global unicorn founders, venture capitalists and experts in areas that are particularly challenging like talent acquisition and management, and will also explore new areas like artificial intelligence. The participating founders of the first two cohorts are: Amanda Chin, CEO of Ablr Malaysia; Sharma Lachu, CEO and founder of Accendo Technologies; Ramachandran Muniandy, CEO and co-founder of Asia Mobility Technologies; Giden Lim, CEO and co-founder of BLOOMTHIS Flora; Benjamin Croc, CEO of Briohr; Ang Xing Xian, CEO of CapBay; Sharala Devi Balakrishnan, CEO of Center of Applied Data Science (CADS); Kuna Kathigesan, group CEO of Commerce DotAsia Ventures; Lee William, managing director of Easybook; Clarence Leong, CEO and founder of EasyParcel; Suthan Mookaiah, CEO of GASSTN; Muhamad Nasir Habizar, CEO and founder of Govicle; Effon Khoo, CEO and founder of Kakitangan.com; Nadira Yusof, CEO and founder of Kiddocare; Tunku Danny Nasaifuddin Mudzaffar, CEO and founder of Microleap; Azran Osman Rani, CEO of Naluri Hidup; Swee Wai Hoow, CEO of Newswav; Keong Chun Chieh, CEO of Ominent; Dr Kev Lim, CEO, Qmed Asia; Melvin Chee, CEO of RPG Commerce; Parthiven Shanmugan, CEO of TixCarte; Kendrick Tan, COO and co-founder of Virtualtech Frontier; Ooi Boon Sheng, CEO of Web Bytes; and Low Ziwei, director and co-founder of Zcova. Cohort 3 is now open for applications. For more information visit https://proficeo.com/100-soonicorns-grooming-the-next-malaysian-unicorns. Scammers are using recruitment agency Randstad’s name to set up fraudulent social media accounts that target members of the public in Malaysia. The scammers would use these accounts to purchase sponsored advertisements on Meta’s platforms (Instagram and Facebook) and invite users to start a WhatsApp chat with them. The targeted public members are often offered attractive full-time and part-time job opportunities that offer good commissions with other Malaysia-based companies. Randstad has issued a statement on the matter, reaffirming that it does not use sponsored advertisements to invite users to start a WhatsApp chat. They also asked the public to be vigilant when using social media to avoid similar scams. “The company also requests that users report any suspicious activity that they see on social media directly via the website or mobile app. “Please note that these individuals and/or organisations who are posting fraudulent job advertisements and requesting individuals pay a sum of money or disclose their personal information do not work for Randstad, any of our group of companies or the companies that we represent in any way,” the statement read. The statement also informed users that Randstad employees would use only their business email accounts (@randstad.com.my), professional LinkedIn accounts, video conferencing and face-to-face meetings as their first point of contact with all job seekers. Job offers made by Randstad employees will always include an employment contract that are sent only from a business email account. For more information, visit Randstad’s website at www.randstad.com.my/job-seekers/job-scams. The Singapore Institute of Directors (SID) and Singapore Computer Society (SCS) are launching a board-readiness programme to prepare female professionals in the digital and technology industry to be board directors. This follows the agreement inked in September 2022 between the two organisations to collaborate on increasing the diversity and digital quotient of boards. The one-year programme seeks to raise awareness of the significance of good governance and the role that board directors play in preserving and enhancing the value of their organisations. The programme focuses on knowledge acquisition and skills training to build competencies in preparation for the role of a board director. The SID-SCS Women in Tech (WIT) Board Readiness Programme is targeted at professionals who are C-suite executives or have senior leadership experience and are keen to pursue board directorship roles. Registration will be open from Feb 20 to April 19, 2023. For more information, visit www.scs.org.sg/events/board-readiness-programme. Yeoh suggested that youth in Malaysia need to be given training in using social media responsibly, as they lack exposure to the new challenges of being on social media, where anything they say could be religiously or racially sensitive. Generative artificial intelligence (AI) has driven Clarkesworld, one of the best science fiction and fantasy magazines, to close submissions. The magazine has been the go-to for short fiction because it responds quickly and pays well. Unfortunately, the magazine has been forced to temporarily stop accepting submissions because it was getting hit with too many AI-generated submissions. Submissions will reopen eventually, but editor Neil Clarke says the current tools for spotting AI-generated submissions are not “reliable enough”. In no more than the blink of an eye, a naïve optimism about technology’s liberating potential has given way to a dystopian obsession with biased algorithms, surveillance capitalism and job-displacing robots. Yet, too few of us see any alternative to accepting the onward march of technology. We have simply accepted a technological future designed for us by technologists, the venture capitalists who fund them, and the politicians who give them free rein. System Error exposes the root of our current predicament: how big tech’s relentless focus on optimisation is driving a future that reinforces discrimination, erodes privacy, displaces workers and pollutes the information we get. This optimisation mindset substitutes what companies care about for the values that a democratic society might choose to prioritise. Armed with an understanding of how technologists think and exercise their power, three Stanford University professors — a philosopher working at the intersection of technology and ethics, a political scientist who served under US president Barack Obama, and the director of the undergraduate computer science programme at Stanford (also an early Google engineer) — reveal how we can hold that power to account. Now, as the dominance of big tech becomes an explosive societal conundrum, they share their provocative insights and concrete solutions to help everyone understand what is happening, what is at stake and what we can do to control technology instead of letting it control us. — Amazon Phubbing, a portmanteau of “phone snubbing”, is the practice of ignoring one’s companion or companions to pay attention to one’s phone or another mobile device. Recent studies show that not only was being phubbed by one’s partner associated with lower satisfaction in a romantic relationship, but that the relationship was also perceived as being of lower quality overall. Further analysis found a link between fulfilling romantic relationships and life satisfaction, showing once again that the phubbing phenomenon can literally impact one’s enjoyment of life itself. The lens is said to bring subjects closer from distances as great as 8,000m, allowing your phone to produce close-ups and long-range shots without compromising on image quality. It can also be used as a standalone telescopic lens to view distant objects, making it ideal for camping, sporting events, moon observing, bird watching, fishing, hiking, golf, concerts and travelling. This phone lens kit can fit most popular types and models of smartphones and tablets, but it is best to double-check the lens’ compatibility with your device before purchasing. It retails for US$57 (RM252) on Amazon. A model so vast, so wise, and so fair, Thou hast crossed the mark of 100 million, In just two months, a feat beyond compare. Thy knowledge base is broad and ever growing, Thou art able to answer almost every query, With grace and speed, thy responses flowing, Ever impressing all who attempt to come to thee. Thou art the voice of a new generation, Guiding all those who seek clarity, Thou bringeth light to the darkest questions, Thanks, OpenAI, for offering this free charity. So here’s a query to thee, oh ChatGPT divine: Will thou soon make the Internet only thine? By Raju Chellam, vice-president of new technologies at Fusionex International 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/672170 | Indonesia moves site of Asean military drills away from South China Sea | English | JAKARTA (June 22): Indonesia has changed where it will host Asean's first-ever joint military exercise to a location away from the South China Sea where several countries including China have overlapping territorial claims, its military said on Thursday (June 22). The non-combat drills for members of the Association of Southeast Asian Nations (Asean) were originally set to take place in the southernmost waters of the South China Sea, which are also claimed by Beijing. But the September 18-25 exercise will now be moved out of the strategic waterway altogether to the South Natuna Sea in Indonesian waters, said military spokesperson Julius Widjojono. "This exercise is focused not on combat, so it is best suited for the south that is in direct contact with the people," he said, adding the drills will be held in and around Batam island at the mouth of the Malacca Strait. Asean's unity has for years been tested by a rivalry between the US and China that is being played out in the South China Sea, a conduit for about US$3.5 trillion (RM16.3 trillion) of annual ship-borne trade. Vietnam, the Philippines, Brunei and Malaysia have competing claims with Beijing, which asserts sovereignty over vast stretches of ocean that include parts of Indonesia's exclusive economic zone. China claims sovereignty over the area via an expansive 'nine-dash line' based on its historic maps, which an international arbitration court in 2016 ruled had no legal basis. Asean has been pushing to complete a long-awaited maritime code of conduct with China, and several of its members have had run-ins with Beijing in recent months. The military of Indonesia, which chairs Asean this year, said the decision to move the location was an independent one and that there was "no intervention" from other countries. It also said Cambodia and Myanmar did not respond to an invitation to a preparation meeting for the exercise held on Monday among Asean countries. Both Myanmar's junta leaders and Cambodia have close ties with China.
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https://theedgemalaysia.com/node/611550 | (Unofficial) Johor Polls: Hasni (BN) leading in Benut | English | (Unofficial) Johor Polls: Hasni (BN) leading in Benut |
https://theedgemalaysia.com/node/625758 | Sabah, Johor, Penang, Klang Valley are the best locations to invest | English | PETALING JAYA (June 27): Sabah, Johor, and Penang are the popular locations for commercial investors to invest in, aside from the Klang Valley, according to Knight Frank Malaysia’s 2022 ‘Malaysia Commercial Real Estate Investment Sentiment Survey (CREISS)’ released on June 27. The survey was carried out across the country’s commercial property industry and aims to comprehend current sentiments towards the commercial real estate sector as well as where it may lead in the near future. Among the factors affecting this sector are the present low interest rates, with an overnight policy rate at 1.75% to 2% at the time of writing, the multiplier effect of ongoing mega projects and continued foreign direct investments into Malaysia. In a statement, Knight Frank Malaysia executive director of research and consultancy Amy Wong said: “People appear to have a better risk appetite for alternative investments in the next two to three years. The survey revealed almost equal interest to participate in serviced residences/hotels, co-working/flexible offices, senior living/retirement homes and data centres.” In regard to capital value, more than two-thirds of the respondents (76%) expect the industrial and logistics sub-sectors to enjoy capital value appreciations in 2022, with slightly more than half of the respondents (57%) also anticipating the same for the healthcare sub-sector. In terms of the yield performance, 68% of respondents expected yields to increase in the logistics sub-sector, with anticipated higher yields for the healthcare and industrial sub-sectors. Predictably, these opinions are comparable on increase in rents, with rents of logistics properties expected to increase, according to 64% of respondents, and 53% of them also agreeing that increases are expected in the industrial sub-sector, in line with growing demand for space in these two sub-sectors. There are similar expectations in the occupancy rate for the same two sub-sectors, and it is worth highlighting that there is a predicted reduction in occupied office space due to the reality of continued pressure on occupancy rates and rents as supply continues to outpace demand. These views are unsurprisingly echoed in the predictions on the market itself. Wong stated that through this survey, which highlights the logistics and industrial sub-sectors as the favourites, respondents have expressed their confidence that these sub-sectors will be the quickest to recover within the next 12 months, along with the healthcare sub-sector. Whereas the traditional sub-sectors of hotel/leisure, office and retail are seen by respondents as a long-term play. Knight Frank Malaysia group managing director Sarkunan Subramaniam added: “As we navigate the new economy in a somewhat changed world that is anticipating further disruption, there is a need to cultivate resilience in real estate portfolios, which is to anticipate risk and minimise disruption in an increasingly complex world. The growing awareness and adoption of environmental, social, and governance (ESG) frameworks in the real estate industry will help drive the value of sustainable real estate into the future.” |
https://theedgemalaysia.com/node/630618 | Chin Hin slapped with UMA following sharp rise in share price | English | KUALA LUMPUR (Aug 2): Chin Hin Group Bhd was slapped with an unusual market activity (UMA) query by Bursa Malaysia on Tuesday (Aug 2) due to a sharp rise in its share price. The building material distributor’s share price hit a record high on Monday at RM5.11, following 11 consecutive days of trading gains. Monday’s close was 62.74% higher than July 15’s close at RM3.14. However, at the noon break on Tuesday, the counter was among the local bourse’s top losers, after falling 21 sen or 4.11% to RM4.90. At RM4.90, the group was valued at RM4.34 billion. Bursa requested that Chin Hin disclose any corporate developments, rumours or reports concerning the business and affairs of the group, and any other possible reasons, which may account for the UMA. Additionally, the bourse regulator also asked whether the group is in compliance with the Bursa Securities Listing Requirements (LRs), in particularly Paragraph 9.03 of the Bursa Securities LRs on immediate disclosure obligations. It was previously reported that Chin Hin is slated to hold an extraordinary general meeting on Thursday over the proposed sale of its 19.34% stake in Solarvest Holdings Bhd, as well as a one-for-one bonus issue. The group on May 17 proposed to dispose of the 19.34% stake or 129.1 million shares in Solarvest to Divine Inventions Sdn Bhd — an entity owned by Chin Hin’s major shareholder, the Chiau family — for RM103.28 million or 80 sen per share, which would result in a one-off disposal gain of RM35.68 million. Divine Inventions owns a 36.6% stake in Chin Hin. Chin Hin expects its bank borrowings to be reduced to RM688.17 million following the disposal, from RM790.89 million as at end-2021. Read also:
UMA reply: Chin Hin unaware of any corporate development, except for Solarvest stake sale, one-for-one bonus issue |
https://theedgemalaysia.com/node/676456 | Modi tells investors India wants to be 'trusted partner' for chipmaking | English | GANDHINAGAR, India (July 28): India wants to emerge as a trusted partner for the semiconductor industry and is keen to be a chip supplier for the world, Prime Minister Narendra Modi said on Friday (July 28), as he steps up efforts to attract global investors to establish production in the country. "To expedite the growth of the semiconductor sector in the country, we are continuously undertaking policy reforms," said Modi, who has made chipmaking the top priority of his economic policy. "We are working with partner countries for a comprehensive roadmap for semiconductor industry." At the SemiconIndia conference, held in Modi's home state of Gujarat, US chipmaker Advanced Micro Devices announced plans to invest around US$400 million (RM1.82 billion) in the country over the next five years and build its largest design centre in the tech hub of Bengaluru. The investment bodes well for the event, which is the prime minister's latest attempt to attract investors into the chip industry after his initial bid to offer incentives floundered. A few weeks ago, Foxconn backed out of a US$19.5 billion chips joint venture with Vedanta, saying "the project was not moving fast enough". Foxconn has since decided to go solo. Two other consortia, including one that involved Israel's Tower Semiconductor, had announced plans to invest US$3 billion each, but the proposals have since stalled. India is currently re-inviting applications under a US$10 billion incentive scheme. Most of the world's chip production is limited to a handful of centres, such as Taiwan. Modi's comment received endorsement from Foxconn. Young Liu, the chairman of Foxconn that is officially called Hon Hai Precision Industry Co Ltd, told the event: "I can feel the determination of the Indian government. I am very optimistic of where it's headed." Despite being a late entrant, India estimated the local chip market to be worth US$80 billion by 2028, almost four times its US$23 billion size now. |
https://theedgemalaysia.com/node/643636 | RGB, Artroniq, Carepls, PGlobe, Karex | English | KUALA LUMPUR (Nov 11): theedgemarkets.com highlighted four stocks with positive momentum and one stock with negative momentum at Bursa Malaysia's afternoon close on Friday (Nov 11). 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/650056 | China approves Merck's Covid-19 therapy amid shortage of drugs | English | (Dec 30): China has approved Merck & Co's Covid-19 antiviral molnupiravir for emergency use as Beijing seeks to expand access to treatments amid a massive wave of infections following its abrupt pivot away from Covid Zero in early December. The drug, known by the brand name Lagevrio, has been granted conditional emergency approval for treating mild and moderate infections among adults at risk of progressing to severe disease, China's National Medical Products Administration said on Friday. It is the second foreign Covid-19 treatment cleared for use in China after authorities gave Pfizer Inc's Paxlovid the go-ahead in early 2022. China's surging wave of infections has caused domestic shortages for everything from fever-reducing medicines to antivirals that prevents severe disease. The effects have also rippled beyond China's borders, with pharmacies in places such as South Korea, Singapore, and Japan being emptied of medicines to be then sent to China. Friday's approval came after the US drug maker struck a deal in September with Chinese state-owned firm Sinopharm to import and market molnupiravir in China. The country has so far relied almost solely on home-grown medicines and vaccines to shore up immunity and treat Covid-19 patients. While Pfizer's Paxlovid is approved for use, it has been in short supply in China amid the ongoing outbreak. That has prompted people to turn to the black market for the medication or for generic versions meant to be supplied to poorer countries, not China. Another foreign drug maker waiting for Chinese approval of its medicine is Japan's Shionogi & Co, which is looking to sell its Covid-19 antiviral Xocova in the world's second-biggest economy. Shionogi said on Dec 23 that its joint venture in China had signed a licensing agreement with Shanghai Pharmaceuticals Holding Co for import and distribution of Xocova in mainland China. Shanghai Pharma will exclusively import the drug into China and deliver it after approval. State-owned medical product distributor China Meheco Group Co firmed up a deal in December with Pfizer to import and distribute Paxlovid in the country. Zhejiang Huahai Pharmaceutical Co and Ascletis Pharma Inc each has a pact to make Paxlovid ingredients locally. Read also:
China Covid-19 wave sparks scramble for vital drugs across region |
https://theedgemalaysia.com/node/670056 | Indonesia plans US$2b injection for troubled state builders | English | JAKARTA (June 6): Indonesia's state-owned enterprises (SOEs) ministry plans to inject an additional 30.5 trillion rupiah (RM9.4 billion) into two construction firms by 2024 to help shore up the companies, an official said on Monday (June 5). On top of providing additional capital for state-owned Hutama Karya and Wijaya Karya (Wika), the government also plans to transfer its 75.35% stake in builder Waskita Karya to Hutama Karya after Waskita completes a debt restructuring, deputy minister Kartika Wirjoatmodjo said. He was speaking at a hearing of parliament's committee overseeing state investments. The companies are among Indonesia's biggest construction firms and have been overleveraged having been assigned by the government to build massive infrastructure projects such as toll roads, airports and dams. Kartika said the government proposed to inject 12.5 trillion rupiah by early 2024 into Hutama Karya so the company could take over two toll road projects from Waskita, which has been having trouble repaying its debt. Trading in Waskita's shares has been suspended since last month after it failed to secure bondholder approval to defer a coupon payment. Waskita is also under investigation after the Attorney General's Office (AGO) launched a corruption probe last year into the company and its unit in relation to misuse of a bank loan. Waskita has previously said it respects the AGO's investigation, without giving further comment. The 12.5 trillion rupiah capital injection would be done through Hutama Karya because of the AGO's investigation, among other factors, Kartika said. "We are not ruling out the possibility of topping up (the capital injection proposal) in case of increasing needs under the restructuring. "We are recalculating and discussing with the finance ministry how far we are going to push in terms of capacity needed to make Waskita healthy again," Kartika told the hearing. Separately, the ministry was conducting an investigation into Waskita and Wika's past financial statements, which had not matched real cash flows, Kartika said. "If we find criminal element ... like fraud, we can sue past managements," he said. The government said last month that it had withheld a 3 trillion rupiah capital top-up for Waskita until the firm completes its debt restructuring. The government's new capital injection proposal also included another 8 trillion rupiah for Wika to strengthen its capital position, while the firm negotiates its debt, said Kartika. The government controls 65.05% of Wika. The ministry also requested 10 trillion rupiah for Hutama Karya in fiscal year 2024 to fund operational expenses, according to its presentation materials to parliament. Wika's corporate secretary Mahendra Vijaya said a financial investigation was within the authority of the SOEs ministry, adding that the firm welcomed the planned capital injection. Ermy Puspa Yunita, spokesperson for Waskita, on Tuesday said the firm fully supports steps taken the by the SOEs ministry to improve its financial condition, adding its financial reports have always complied with regulations and have been independently audited. Hutama Karya did not respond to requests for comment. Ratings agencies have warned for years that Indonesian state construction firms' balance sheets were deteriorating amid extensive borrowing to fund an infrastructure push led by President Joko Widodo's government. However, Kartika blamed the situation on an ultra-competitive market that has squeezed margins. Any capital injection into state companies must be approved by parliament. |
https://theedgemalaysia.com/node/670174 | Bursa ends morning session lower amid mixed regional market performance | English | KUALA LUMPUR (June 7): Bursa Malaysia ended the morning session lower on Wednesday (June 7), due to a lack of market-moving catalysts, amid mixed performances in regional markets. At 12.30pm, the FBM KLCI had fallen by 5.45 points to 1,377.72, from 1,383.17 at Tuesday’s close. The key index opened 1.17 points easier at 1,382.00 on Wednesday morning. The broader market was negative, as decliners led gainers 453 to 277, while 408 counters were unchanged, 1,106 untraded, and 13 others suspended. Turnover stood at RM1.84 billion worth RM807.38 million. Key regional indices were mixed on Wednesday, despite positive cues from Wall Street overnight, as traders remained cautious over the outlook for interest rates ahead of the US Federal Reserve monetary policy meeting next week. In a note, Hong Leong Investment Bank said the KLCI could stage a technical rebound this week from grossly oversold levels, premised on the relief rally on Wall Street and hammer candlestick. “Nevertheless, any rebound is likely to be capped near 1,400, 1,413, and 1,438 amid prevalent local headwinds," the investment bank said. Major concerns include China’s sluggish economic growth, the results season, escalating geopolitical tensions, the upcoming election in six states, and continued ringgit weakness, along with persistent foreign outflows. In the meantime, heavyweights Public Bank Bhd lost two sen to RM3.79, Tenaga Nasional Bhd slipped five sen to RM9.25, and Petronas Chemicals Group Bhd trimmed nine sen to RM6.43, while Malayan Banking Bhd (Maybank) at RM8.58 and CIMB Group Holdings Bhd at RM4.88 were both flat. As for the active counters, ACE Market debutant Edelteq Holdings Bhd surged 49.5 sen to 73.5 sen and Dagang NeXchange Bhd added 1.5 sen to 48.5 sen, while Bumi Armada Bhd at 46 sen and Tanco Holdings Bhd at 49.5 sen had shed 2.5 sen each, while Borneo Oil Bhd was flat at 1.5 sen. On the index board, the FBM Emas Index slipped 32.93 points to 10,163.86, the FBMT 100 Index was 31.86 points easier at 9,863.46, the FBM Emas Shariah Index lost 41.12 points to 10,540.11, the FBM ACE Index was 25.96 points lower at 5,013.45, and FBM 70 Index shrank 13.90 points to 13,462.12. Sector-wise, the Financial Services Index gave up 15.09 points to 15,076.70, the Industrial Products and Services Index eased 0.97 of a point to 158.81, the Plantation Index erased 19.06 points to 6,692.37, and the Energy Index slid 7.23 points to 783.20. |
https://theedgemalaysia.com/node/615332 | Kerjaya Prospek, Transocean, Ocean Vantage, Capital A, LTKM, Public Packages and TAFI Industries | English | KUALA LUMPUR (April 6): Here is a brief look at some of the corporate announcements and news flow on Wednesday (April 6), involving Kerjaya Prospek Group Bhd, Transocean Holdings Bhd, Ocean Vantage Holdings Bhd, Capital A Bhd, LTKM Bhd, Public Packages Holdings Bhd and TAFI Industries Bhd. Kerjaya Prospek Group Bhd said it has secured an RM265 million contract to undertake main building work for a proposed development project located at Kawasan Terbusguna Tanah Seri Tanjung Pinang (Phase 2A) in Penang. The contract was awarded by Eastern & Oriental Bhd's indirect subsidiary Persada Mentari Sdn Bhd to Kerjaya Prospek's wholly-owned unit Kerjaya Prospek (M) Sdn Bhd. The project comprises two blocks of apartments, housing a total of 1,020 units, a basement car park, a four-storey car park and two storeys of commercial units. Transocean Holdings Bhd has been slapped with an unusual market activity query by Bursa Malaysia following a recent sharp rise in its share price and trading volume. Bursa queried the transport and logistic company whether there was any corporate development, rumour or report relating to the group’s business and affairs — or any other possible explanation — that may account for the unusual trading activity. Ocean Vantage Holdings Bhd's wholly-owned unit Ocean Vantage Engineering Sdn Bhd has clinched an RM71.3 million contract to provide civil, building and piling works for a new onshore gas plant in Sarawak, owned by Petronas. The contract for the additional gas sales facilities 2 in Bintulu was awarded by Petrofac Engineering Services (Malaysia) Sdn Bhd. Petrofac Malaysia is part of Petrofac Ltd, a UK-based leading energy services company. Capital A Bhd (formerly known as AirAsia Group Bhd) has filed motions for leave to appeal to the Federal Court against the dismissal of its bids to strike out a suit filed by a Malaysia Airports Holdings Bhd (MAHB) unit over outstanding passenger service charges, as well as the summary judgment granted to the MAHB unit in the case. Its three appeals to strike out the original suit filed by the MAHB unit — Malaysia Airports Sepang Sdn Bhd or MASSB — together with its appeals against the summary judgment the High Court granted to MASSB for a total of RM41.55 million (comprising outstanding PSCs, late payment charges and costs) against AirAsia Bhd and AirAsia X Bhd, were dismissed by the Court of Appeal on March 3. Trading in the shares of LTKM Bhd will be suspended on Thursday and Friday (April 7 and 8), pending a material announcement. LTKM is principally involved in poultry farming and is one of the leading egg producers in the country, with a fully integrated poultry farming operation involving feed processing, production of eggs, processing and trading of organic fertilisers. Public Packages Holdings Bhd has proposed a bonus issue of up to 75.57 million shares on the basis of two bonus shares for every five shares held. The adhesive tape manufacturer said the entitlement date will be determined after all approvals for the bonus issue are obtained. The group said the maximum number of 75.57 million bonus shares is based on its existing 188.92 million issued shares, and assuming full exercise of all its 6,500 outstanding options into new shares prior to the entitlement date of the bonus issue. TAFI Industries Bhd has secured a contract for the construction of a single-storey factory and warehouse together with a two-storey office building in Kuala Langat, Selangor. The group said the RM9.5 million contract was awarded to its subsidiary TAFI Home & Office Sdn Bhd by Alpha Asset Sdn Bhd. TAFI Group CEO Datuk Seri Bryan Wong said the 12-month contract is a testament to the group’s achievements and shared that its construction business is progressing well. |
https://theedgemalaysia.com/node/652701 | 58 deaths in four days of Op Selamat 19 | English | KUALA LUMPUR (Jan 22): A total of 52 fatal road accidents involving 58 deaths were recorded nationwide in the first four days of Op Selamat 19 conducted in conjunction with the Chinese New Year celebration. Bukit Aman Traffic Investigation and Enforcement Department deputy director DCP Mohd Nasri Omar said 38 fatalities involved motorcyclists and pillion riders, car drivers and passengers (14), lorry drivers and passengers (three), pedestrians (two), and a jeep driver. “Some 33 people were seriously injured while 250 others escaped with minor injuries,” he said in a statement on Sunday (Jan 22) night. According to Mohd Nasri, a total of 7,180 accidents involving 9,198 vehicles were recorded over the past four days of the operation, with 9,653 summonses issued over six major offences. Of the total summonses, 3,250 were issued for beating the traffic lights, driving exceeding the speed limit (2,785) and using a mobile phone while driving (1,316). “In addition, 1,183 summonses were issued for queue jumping, overtaking on double lines (692) and using emergency lanes (427),” he said while advising road users to be alert while driving to avoid the risk of accidents. The 10-day Op Selamat 19 will run simultaneously nationwide from Jan 18 to 27. |
https://theedgemalaysia.com/node/675134 | Part-time journalists entitled to Socso protection, benefits under the self-employment scheme | English | KUALA LUMPUR (July 17): Part-time journalists or stringers working with any media organisation are entitled to protection and benefits under the Self-Employment Social Security Scheme (SKSPS). The Social Security Organisation (Socso) in a statement on Monday (July 17) informed that part-time journalists or stringers engaged via a "Contract for Service" are eligible for such protection based on the Self-Employment Social Security Act 2017 (Act 789). However, it said they would have to make voluntary contribution payment to the scheme. "SKSPS provides protection for self-employed insured persons against employment injuries including occupational diseases and accidents during work-related activities and while travelling for the purpose of his or her self-employment activity. "This scheme provides medical benefit, temporary disability benefit, permanent disability benefit, constant attendance allowance, physical or vocational rehabilitation facilities, dependents' benefit. funeral benefit and education benefit," read the statement. In the statement, Socso provided four contribution plans available for self-employed individuals with contribution payment as low as RM157.20 per year or RM13.10 per month. According to the statement, part-time journalists whose employment falls under the terms of Contract for Service are also eligible for the SPS matching contribution under the SPS Usahawanita 2.0 category, which is specifically for part-time female journalists. "The government, through the SPS Contribution Matching grant, funds 80% of the SKSPS contribution payment for Plan 2 contribution which amounts to RM186.20 while the self-employed individuals only need to pay the remaining 20% or RM46.60 to meet the SKSPS Plan 2 contribution payment of RM232.80 for a 12-month coverage," it said. “Socso is committed to protecting media practitioners who are eligible as they play an important role in promoting and disseminating the social security protection empowerment agenda in the country,” it said adding that this was also in response to the call made by Minister of Communications and Digital Fahmi Fadzil, in efforts to protect the well-being of stringers in the media industry. On Sunday (July 16), Fahmi, when visiting part-time journalist, Ng Kan Seng, in Kampar, Perak, said that he would discuss with Socso to ensure that the welfare of the group is always protected. Ng, 68, who had served Nanyang Siang Pau, Kwong Wah Yit Poh, China Press and Sin Chew Daily, is now frail and has to take care of an older brother who is with special needs.
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https://theedgemalaysia.com/node/672497 | Australia senator condems PwC decision to sell its govt business for A$1 | English | (June 26): PwC’s decision to sell its scandal-plagued government services business in Australia has done little to ease its troubles in the country, with a senior lawmaker questioning the firm’s motives. PwC, which has been under fire after it used confidential information gathered during its tax advisory work with the government to advise global companies on how to benefit from new tax laws, on Sunday (June 15) announced the sale of its government business for A$1 (RM3.13). Senator Deborah O’Neill, a member of the governing Labor Party and head of the finance committee that’s been pushing for more details on the scandal, criticised the decision. “We have this unseemly haste with a profit-driven motive to try and phoenix itself back into some sort of connection with the government,” she told ABC Radio on Monday (June 26). “I’m very concerned at this point of time that the motivations of those at PwC remain self-centered and not about service.” The consulting firm said the deal to offload that part of its organisation to Sydney-based private equity firm Allegro Funds, would allow it to “move forward with predictability and focus and ensure stability” for its other clients. The sale represents about 20% of its local revenues and will help protect about 1,750 jobs, PwC said. PwC admitted to governance failures, with global chairman Bob Moritz saying that the business failed to meet its own code of conduct and uphold professional standards and values. “Its past actions are not representative of the work and behaviours of PwC around the world and I am deeply sorry to our clients, our broader stakeholders and our people,” Moritz said in a statement Sunday. The firm said it had taken a number of steps to “enhance its governance, culture and accountability”. As well as hiving off the government services unit, PwC announced the appointment of Kevin Burrowes, a 37-year veteran of the firm, as the new CEO of the Australian operations. Earlier in his career, Burrowes held senior executive positions at International Business Machines Corp, Credit Suisse Group AG and Royal Bank of Scotland plc, according to the statement. His main priority will be to focus on ethics and controls as the firm looks to regain the trust of its stakeholders, it said. That won’t be an easy task; PwC has already been frozen out of a number of high profile jobs because of the scandal. “It’s just got from worse to worse,” O’Neill said. She said it would take a lot of work to rebuild trust between the government and the new Allegro company which will be dominated by PwC staff. “You can’t just rebirth your way out of the cultural practices of the mothership that they’re coming from,” she said. Allegro, founded by Chester Moynihan and Adrian Loader in 2004, earlier this year bought law firm Slater & Gordon Ltd, according to its website. The firm has more than A$4 billion in assets under management. |
https://theedgemalaysia.com/node/674115 | Biden arrives in Britain to meet King Charles, PM Sunak | English | LONDON (July 10): U.S President Joe Biden arrived in London late on Sunday (July 9) for the start of a three-nation tour that will include meetings with Prime Minister Rishi Sunak and a discussion on climate change with King Charles at Windsor Castle on Monday (July 10). The White House had said the trip was designed "to further strengthen the close relationship between our nations". The president, who flew into Stansted airport northeast of London late on Sunday, will travel to Downing Street on Monday to hold a low-key meeting with Sunak, their fifth in as many months. Sunak's spokesperson said the discussions would likely include the upcoming Nato summit and Ukraine. "As we face new and unprecedented challenges to our physical and economic security, our alliances are more important than ever," Sunak said in a statement released by his office. "The UK is Europe's leading Nato ally, we are the US' most important trade, defence and diplomatic partner, and we are at the forefront of providing Ukraine with the support they need to succeed on the battlefield," said Sunak, who studied at California's Stanford University and owns a penthouse flat in Santa Monica, in southern California. Sunak has gone some way in repairing ties with Biden after the relationship cooled under his predecessors Boris Johnson and Liz Truss due to their tough stance over a post-Brexit deal with the European Union and Johnson's closer ties to Republican former p4resident Donald Trump. For Biden, the more high-profile part of the trip will be his meeting with King Charles at Windsor Castle, to the west of London, where the monarch's late mother, Queen Elizabeth, hosted Democratic President Barack Obama in 2016 and Trump in 2018. Biden also met Queen Elizabeth at Windsor for tea in 2021. The king will receive Biden in the quadrangle of the castle, where a guard of honour will give a Royal Salute and the US national anthem will be played, the king's office said. The president and the king are due to discuss climate issues, a subject on which Charles, 74, has campaigned and spoken out about for more than five decades. When the two men met at the COP26 UN climate summit in Scotland two years ago, Biden praised Charles' leadership on the subject, telling him, "We need you badly". "You are very kind for saying that," Charles replied. Biden met Charles at a reception during a visit for the funeral of Queen Elizabeth last year, but in keeping with longstanding practice of US presidents, he did not attend the king's coronation in May. US special climate envoy John Kerry told the BBC he had been invited to brief the king and Biden about a climate finance conference that he was due to host with British energy minister Grant Shapps on Monday. Following the meeting, Biden and Sunak will leave Britain for Lithuania where Nato leaders will gather for a key summit. Biden is then expected to travel to Helsinki for a meeting with Nordic leaders. |
https://theedgemalaysia.com/node/611071 | Comfort Gloves buys land in Muar, sees potential capital appreciation | English | KUALA LUMPUR (March 9): Comfort Gloves Bhd is buying a firm that owns 6.142 hectares of agriculture land in Muar for RM25.75 million in a related party transaction. The land belonging to Goldhill Melody Sdn Bhd (GMSB) has a market value of RM27.1 million, Comfort Gloves said in a bourse filing. The glove maker believes the prospects of the land are good as its immediate neighborhood is primarily residential consisting of homesteads and small to medium-sized housing schemes with commercial and residential developments. GMSB’s directors are Tan Sri Lau Eng Guang (executive chairman and major shareholder of Comfort Gloves) and his son Lau Joo Yong (group CEO of Comfort Gloves). Joo Yong and his mother Puan Sri Goh Kim Kooi own a 40% stake each in GMSB, with the balance held by CN Lau & Sons Sdn Bhd (10%), HN Lau & Sons Sdn Bhd (5%), and LTN Resources Sdn Bhd (5%). Comfort Gloves said that as at Dec 31, 2021, it had unaudited cash and bank balances of RM334.2 million, and it intends to use some of the money to undertake the land acquistion for investment purposes. “Considering that property prices have been compressed in recent years due to the Covid-19 pandemic, the board believes that this is an opportune time for the group to invest in the land before property prices fully recover,” the group said. Comfort Gloves shares slid 0.79% or half a sen to 63 sen on Wednesday, giving it a market capitalisation of RM367.26 million. The stock has declined 38.83% year-to-date and 69.12% over the past year. |
https://theedgemalaysia.com/node/677972 | Adani Enterprises weighs exiting US$6 bil Wilmar venture | English | (Aug 9): Adani Enterprises Ltd is exploring selling its stake in its Mumbai-listed consumer-staple joint venture with Wilmar International Ltd, freeing up capital for their core business, according to people familiar with the matter. The conglomerate has been considering a potential sale of its 44% stake in Adani Wilmar Ltd for a few months, the people said, asking not to be identified as the information is confidential. Adani’s shares are worth about US$2.7 billion (RM12.4 billion) at the current share price, according to Bloomberg calculations. Indian billionaire Gautam Adani and his family may retain a minority stake in a personal capacity following a sale, the people said. Wilmar, the Singapore-headquartered food conglomerate co-founded by billionaire Kuok Khoon Hong in 1991, could decide to retain its stake in the business, one of the people said. Deliberations are at an early stage and Adani Enterprises may decide to keep its stake, the people said. An Adani spokesman said the group won’t comment on market speculation. A representative for Wilmar declined to comment. Shares of Adani Wilmar have fallen about 36% this year, valuing the company at around US$6.2 billion. Adani-linked companies had lost more than US$150 billion in market value at one point after US-based short seller Hindenburg Research levelled fraud allegations against the business empire. The Adani Group denied any wrongdoing. Adani is back to making deals now that the shares have stabilised. Ambuja Cements Ltd said Aug 3 it will acquire Sanghi Industries Ltd at an enterprise value of US$605 million. Last month, Bain Capital agreed to buy the 90% stake the family held in Adani Capital and Adani Housing. Adani Wilmar raised about 36 billion rupees (RM1.99 billion) in an initial public offering in Mumbai in 2022. Adani and Wilmar’s stakes together account for nearly 88% of the company’s shares. The Securities and Exchange Board of India requires that large firms must have a minimum public shareholding of at least 25% within five years of the date of the listing. Adani Wilmar is a so-called fast moving consumer goods company, offering many essential kitchen commodities for Indian consumers including edible oils, wheat flour, rice, pulses and sugar, according to its website. Incorporated in 1999, the company’s products reach over 114 million households through more than 10,000 distributors, according to its annual report. It competes in India with the likes of ITC Ltd and Hindustan Unilever Ltd. The company reported a net loss of 790 million rupees in the quarter ending June 30. Management attributed the loss to falling edible oil prices and high-cost inventory. |
https://theedgemalaysia.com/node/621162 | Govt’s decision to impose export ban on chicken may pose threat to poultry producers’ profitability, says expert | English | KUALA LUMPUR (May 24): The recent government’s decision to impose an export ban on chicken is expected to pose a threat towards poultry producers’ profitability. An industry expert who spoke to The Edge on the condition of anonymity said that some of the poultry producers already have existing contracts with parties in their export markets and the decision to ban export will affect the producers’ bottom line. “What the government is doing is a short-term measure. In the long run, should the government impose the export ban, it may affect our export level to other countries. “For instance, at the moment, we export (chicken) to Singapore, which accounts for about 10% to 15% of (the country’s) total production and if we impose this export ban, Singapore might shift to source chicken from other countries in the long run. “Some of the local poultry players also will be losing a lot of money, as they already have signed contracts with parties from other countries,” he revealed. The industry expert also argued that the government needs to address the pricing issue urgently, as poultry producers are already suffering from high production costs. Earlier on Monday (May 23), Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the government will put a halt on the exports of 3.6 million chickens a month from June 1, and investigate allegations of cartel pricing. The proposal of the export ban is agreed by the Cabinet as part of short-term measures for the ongoing chicken shortage issue. Currently, the ceiling price of standard chicken has been set at RM8.90 per kilogramme, with a subsidy of RM729.43 million provided under the Keluarga Malaysia Price Control Scheme (SKHKM) and implemented on Feb 5. Meanwhile, the industry expert also claimed that the process of applying for the subsidy is tedious. “Some of the poultry producers complained that they have not received any form of subsidy from the government, even after months of they having applied for subsidy,” he shared. The government recently revealed that there are several large companies who are not interested in applying for the subsidies and want the government to allow chicken prices to be determined by the market. The government also said that so far, only RM50 million in subsidies have been paid to breeders, most of whom own small companies. |
https://theedgemalaysia.com/node/652377 | 亚股情绪谨慎 马股休市持平 | English | （吉隆坡19日讯）交易员表示，区域股市情绪谨慎，加上本地部分重量级股出现温和套利活动，导致马股休市持平。 休市时，富时隆综指微跌0.51点，至1494.99点，周三收报1495.5点。 富时隆综指今早以1494.8点报开，微降0.7点，早盘在1493.71点至1501.71点之间波动。 下跌股399只，上升股325只，另有371只无起落，1097只无交易及10只暂停交易。 马股总成交量为14亿1000万股，总值8亿5636万令吉。 乐天交易私人有限公司股票研究部副总裁唐栢麟表示，在农历新年长假之前，预计周四交易活动将保持谨慎。 他告诉马新社：“因此，我们估计富时隆综指今天将在1490点至1500点之间窄幅波动，至于国家银行在1月18日至19日召开的货币政策委员会会议，我们预计不会调整利率。” 他还表示，基于布兰特原油跌破每桶85美元，在库存增加的情况下，原油价格应声下挫。 重量级股方面，马银行（Malayan Banking Bhd）起1仙，至8.82令吉，国油化学（Petronas Chemicals Group Bhd）涨4仙，报8.50令吉，国家能源（Tenaga Nasional Bhd）升5仙，挂9.44令吉，大众银行（Public Bank Bhd）企于4.29令吉，以及联昌国际集团（CIMB Group Holdings Bhd）挫3仙，以5.69令吉暂休。 至于热门股，Velesto Energy Bhd扬1仙，至19.5仙，银丰集团（Revenue Group Bhd）增5仙，报66.5仙，有利工业（Yew Lee Pacific Group Bhd）升0.5仙，挂46仙，以及Zen Tech International Bhd涨0.5仙，至4.5仙。 （编译：魏素雯） English version：Bursa almost flat at midday on cautious sentiment |
https://theedgemalaysia.com/node/668170 | Bankers see Asia-Middle East dual listings as a budding trend | English | (May 23): Dual listings between the Middle East and Asia are expected to become a new trend as investment flows between the two regions rise, according to bankers. The first such deal is already in the works. Olam Group Ltd, one of Asia’s biggest commodity traders, is planning to list its agribusiness unit in its home market of Singapore as well as Saudi Arabia in what it says would be the first listing of a global company in the kingdom. The Saudi stock exchange has been particularly active in seeking to foster international ties, signing pacts with both the Hong Kong and Singapore bourses this year to cooperate in areas such as cross listings. The Persian Gulf’s initial public offerings (IPO) market remains a bright spot after last year’s boom, drawing international investors amid a global listings drought. “There is a growing interest among Abu Dhabi and Saudi Arabian shareholders for their internationally based companies either to grow into the Middle East or expand their customer target market into the region and ultimately to list in the Middle East,” said Samer Deghaili, HSBC Holdings plc’s regional co-head of capital financing and investment banking coverage. While the complexity of dual listings is unlikely to lead to a flood of such deals, a successful Olam Agri float could open a pathway for some firms. Companies from Saudi Arabia and the United Arab Emirates (UAE) may also be keen to capitalise on their significant export market into Asia, Deghaili said. “Dual listings in both regions will provide access to some Asian investors who want to diversify into other regions and gain exposure to the high-growth Middle East economies,” he added. Middle Eastern firms, meanwhile, have been looking eastward. The Public Investment Fund, Saudi Arabia’s wealth fund, opened an office in Hong Kong last year and has been investing in Asian companies, from South Korea’s Kakao Entertainment to Chinese gaming company VSPO. “There are lots of Middle East investors taking more of an interest in Asia. And where is the growth opportunity? It’s going to be in Asia and it will be for the long term, 10-20 years. For these reasons, I think that the flow could be very strong,” said Udhay Furtado, co-head of ECM, Asia-Pacific at Citigroup Inc. Other Chinese companies are expanding in the Middle East as President Xi Jinping pushes for closer ties in the region. China International Capital Corp (CICC) is planning to expand in both the UAE and Saudi Arabia. Beijing-based Asian Infrastructure Investment Bank opened its first overseas office in April in Abu Dhabi, the UAE’s capital. “Many Chinese corporates are interested in stepping into the Saudi market for strategic partnerships and high-quality investors, which may lead to listings at a later stage,” said Barry Chan, head of Asia and Australia, for CICC.
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https://theedgemalaysia.com/node/665963 | MOF rep cites procurement non-compliance in HRD Corp project — report | English | KUALA LUMPUR (May 8): A Ministry of Finance (MOF) representative on the board of the Human Resource Development Corp (HRD Corp) has called for the termination of a programme within the agency, amid alleged non-compliance in its procurement process, according to a report. However, HRD Corp said that concerns by MOF’s Datuk Rosli Yaakub — deputy secretary, governance and monitoring under MOF’s corporate government investment companies division — over the programme, dubbed “Skills Passport”, has been resolved in the agency’s board meetings. Rosli reportedly raised concerns that the project was being pushed through without HRD Corp’s board approval, according to his letter dated April 12 to its chairman Datuk R Rajasekharan and chief executive Datuk Shahul Hameed Dawood. “I am the representative of the Ministry of Finance in HRD Corp and am carrying out my duties as a member of the board (of HRD Corp),” news portal The Vibes quoted Rosli as saying on Sunday (May 7). Among concerns reportedly raised by Rosli include the potential financial implication of between RM53 million and RM159.47 million on HRD Corp to roll out the programme, which is a skills database cum search engine, The Vibes reported, citing the letter. “During the board meeting on March 28, the Chief Executive misled the board by stating that the project would not result in any costs for HRD Corp. “However, in a letter dated February 15, 2023 the Chief Executive informed the Ministry of Human Resources’ Deputy Chief Secretary that HRD Corp will pay Neomindz [Sdn Bhd] RM12 for every use of the Skills Passport,” the letter, dated April 12, reportedly said. HRD Corp has reportedly signed a contract with Neomindz to implement the programme. HRD Corp will pay Neomindz RM12 for every use of the Skills Passport, according to the letter cited by the news portal. On May 7, HRD Corp issued a statement describing the allegations on the contract and procurement process as “false and defamatory”, adding that it is committed to preserving the highest standards of ethics, transparency and integrity. HRD Corp also assured the public and its stakeholders that it is “doing everything possible” to resolve the matter as quickly as possible. It added it has instructed its lawyers “to initiate legal action to ensure the retraction of the article” by The Vibes, and to demand an apology from the news portal. |
https://theedgemalaysia.com/node/634900 | Al-'Aqar Healthcare REIT buys three hospitals from KPJ Healthcare for RM192 mil | English | KUALA LUMPUR (Sept 2): Al-'Aqar Healthcare REIT has acquired three hospitals from KPJ Healthcare Bhd for RM192 million, to be paid in cash and new shares. The acquisitions are deemed to be related-party transactions, as both entities have a common major shareholder in Johor Corp. In a Bursa Malaysia filing, Al-'Aqar Healthcare REIT said it is buying TMC Healthcare Centre Building in Taiping, Perak for RM14.3 million in cash and KPJ Seremban Specialist Hospital Building for RM84.7 million in cash. The real estate investment trust (REIT) is also buying Pasir Gudang Specialist Hospital in Johor for RM93 million, to be satisfied by a combination of a cash payment of RM67.99 million and the issuance of 20.5 million new units in the REIT at RM1.22 per unit. Concurrently, with the purchases, Al-'Aqar Healthcare REIT said its trustee (Amanahraya Trustees Bhd) and its manager (Damansara REIT Managers Sdn Bhd) have entered into lease agreements with the three KPJ Healthcare subsidiaries involved. Following the acquisitions and leases of the three hospitals, the REIT said its portfolio size will increase to RM1.73 billion, from RM1.54 billion as of Dec 31, 2021. "The proposed acquisitions and proposed leases are expected to improve the future earnings of Al-'Aqar Healthcare REIT, taking into consideration the additional rental income to be received from the properties, which is expected to translate into DPU (distribution per unit) yield accretion," it said. Al-'Aqar Healthcare REIT also announced that it plans to raise RM138 million via a private placement of up to 118.97 million new units or 16.16% of its total issued units, mainly for repayment of bank financing. It said the placement units are intended to be placed out to investors to be identified later. Al-'Aqar Healthcare REIT's total bank financing stood at RM690 million as of Aug 18. The acquisitions and leases are expected to be completed by the fourth quarter of 2022, while the private placement is expected to be completed by the first half of 2023. Johor Corp is a major unitholder of Al-'Aqar Healthcare REIT with an indirect interest of 36.56%. It is also a major shareholder of KPJ Healthcare, with a 35.58% direct interest and a 9.63% indirect interest. Apart from Johor Corp, the Employees Provident Fund (EPF) is also a major unitholder of Al-'Aqar Healthcare REIT, with a direct interest of 11.31%. The EPF is also a shareholder of KPJ with a direct interest of 12.7%. Lembaga Tabung Haji is also a major unitholder of Al-'Aqar Healthcare REIT, with a direct interest of 14.34%, and a shareholder of KPJ with a direct interest of 2.95%. Units in Al-'Aqar Healthcare REIT closed up two sen or 1.65% at RM1.23 on Friday (Sept 2), giving it a market capitalisation of RM905 million. KPJ Healthcare's share price settled down 0.5 sen or 0.57% at 87.5 sen, valuing the group at RM3.94 billion. |