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https://theedgemalaysia.com/node/615884 | UMW Toyota Motor sales grew 32% m-o-m to 8,487 units in March 2022 | English | KUALA LUMPUR (April 11): UMW Toyota Motor Sdn Bhd, a subsidiary of UMW Holdings Bhd, recorded a total of 8,487 combined sales for Toyota and Lexus in March this year, up 31.95% from 6,432 in the previous month. In a statement, the automotive company said Toyota's sales in March rose 31.73% on a month-on-month (m-o-m) basis to 8,386 units from 6,366 units sold in February. Lexus sales rose 53% to 101 units in March from 66 units in the previous month, UMW Toyota Motor said. "Sales for the year to date are expected to continue in this upward trend, with the total sales for the quarter being at 22,447 units," it said. UMW Toyota Motor attributed its positive sales results to its ongoing March promotions for which customers will receive RM4,000 worth of added value on Toyota bestsellers such as Vios and Yaris. The company also expects sales to increase further with upcoming product launches later this year. It said Toyota is continuously innovating to bring mobility to Toyota fans by offering customers the best value for their money, along with top-of-the-line security features and enhanced performances. UMW Toyota Motor president Ravindran K said the group is working closely with its suppliers and monitoring developments closely to minimise the impact on the group's production and customers. "As Malaysia transitions towards the endemic phase, UMW Toyota Motor is appreciative of the support we have received from our customers throughout these unprecedented times. We remain committed towards achieving continuous growth for the Toyota brand as well as for the local automotive industry through our cutting-edge innovative product and solution offerings. "As we transform towards sustainable mobility, Toyota aims to leave no one behind as we continue to be at the forefront in offering value-for-money innovations equipped with technological advancements and state-of-the-art safety features across all our products," he added. At 3.15pm, UMW Holdings dipped five sen or 1.47% to RM3.35, giving it a market capitalisation of RM3.91 billion. |
https://theedgemalaysia.com/node/669635 | Jendela Phase 1 implementation successful, exceeds targets — MCMC | English | KUALA LUMPUR (June 1): The implementation of the National Digital Network Plan (Jendela) Phase 1 (2020-2023) has surpassed its set network coverage area, mobile network speed and fibre connectivity targets. Malaysian Communications and Multimedia Commission (MCMC) chief operating officer Datuk Mohd Ali Hanafiah Mohd Yunus said Jendela Phase 1 which concluded on Thursday, saw 7.74 million premises installed with fibre internet connections, exceeding its initial target of 7.5 million. He said with the conclusion, 96.92% of populated areas now have 4G network coverage and mobile networks speed achieving an average of 116.03 megabits per second (Mbps). The initial target set for 4G network coverage was 96.9% and the target for mobile network speed was set at 35 Mbps. “The most important step now is to achieve a certain level and maintain it at that level or go even higher,” he said at a virtual media and analyst briefing on Jendela Phase 1 concluding report. Mohd Ali Hanafiah said Phase 2 implementation would commence soonest during the third quarter of this year, or latest by the fourth quarter. However, he said there are hurdles to be overcome before Phase 2 is implemented which includes the transition from a single wholesale network model to dual wholesale network, as announced recently. "The government has conducted a review where the single wholesale network policy will continue only until we reach 80% (5G coverage) at the end of this year. "After that we will migrate to dual network. What the government has done is to set up a taskforce that meets every two weeks. The task force will go through all issues and hurdles," he said. The existing Reference Access Offer (RAO) may also need to be updated or replaced as it was only meant for a single wholesale network model by design, he added. “Once it becomes dual entity, it will be different from the RAO that we have today which is based on a single wholesale network model. This is in fact one of the items being discussed by the taskforce at the moment,” he said. Prime Minister Datuk Seri Anwar Ibrahim had earlier announced that the nation’s 5G rollout will switch to a dual wholesale network model once the network under Digital Nasional Bhd reaches 80% coverage of populated areas to ensure quality 5G network. In Thursday’s briefing, Mohd Ali Hanafiah also announced that 5G network coverage in populated areas now stands at 57.9%. He said MCMC was confident that the 80% target by year end could be achieved, though 5G network adoption was still low with only 1.2 million users or 3.1% as of last March. |
https://theedgemalaysia.com/node/657996 | Creditors strongly object to Serba Dinamik's bid for permanent stay of winding-up order | English | KUALA LUMPUR (March 6): The application by Serba Dinamik Holdings Bhd and its three subsidiaries for a permanent stay of the winding-up order against them was strongly objected to by their creditors at a hearing on Monday (March 6). The four companies are seeking the permanent stay pending the hearing of their appeal at the Court of Appeal against the High Court's decision in January to grant the winding-up order. The creditors — made up of syndicated lenders and bilateral lenders, comprising six financial institutions and other banks — are opposing the permanent stay. At the hearing, lawyer Benjamin Dawson, representing bilateral lenders HSBC Amanah Malaysia Bhd and HSBC Bank Bhd, argued that a stay order would be “tragedical” for all parties involved, including Serba Dinamik itself. “The company is financially opaque, they have also ignored many court orders for costs to be paid. Many still don’t know about their finances “No company or credible businessman would deal with this company,” Dawson told High Court judge Ahmad Murad Abdul Aziz in the online hearing.
Dawson also argued that the stay would be prejudicial to the creditors who have been waiting, and cited the alleged loss of creditworthiness, goodwill and standing of the companies owing to their acts and omission. These include the companies' inability to pay what they described as a colossal debt to their creditors and come up with a viable scheme of arrangement, and defaulting in the scheme of arrangement to pay 15% of the debt to local creditors. Besides Serba Dinamik, the three other companies the High Court ordered to be wound up are Serba Dinamik Sdn Bhd, Serba Dinamik International Ltd and Serba Dinamik Group Bhd. Datin Jeyanthini Kannaperan, the lawyer representing the syndicated lenders, said that there was no statement of affairs from the directors of Serba Dinamik and there is “abject non-compliance” which continues. Lawyers Claudia Cheah and Karen Tan appeared for Hong Leong Islamic Bank, while Datuk Malik Imtiaz Sarwar represented Serba Dinamik. PricewaterhouseCoopers, represented by Lee Shih and Pang Huey Lin, is the liquidator in the Serba Dinamik matter. Ahmad Murad fixed March 16 for decision. The applications by Standard Chartered Saadiq Bhd, HSBC Amanah, AmBank Islamic Bhd, MIDF Amanah Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd and Bank Islam Malaysia Bhd are over the non-payment of loans amounting to RM1.7 billion out of a total sum of some RM5 billion owed. The RM5 billion sum included the US$500 million (RM2.13 billion) sukuk on which Serba Dinamik had defaulted. Read also:
High Court allows winding-up of Serba Dinamik, three subsidiaries |
https://theedgemalaysia.com/node/662250 | 汽油与柴油价格维持不变 | Mandarin | （吉隆坡5日讯）从4月6日至12日，RON97与RON95汽油以及柴油价格将维持不变。 财政部周三发布文告表示，RON97汽油价格维持在每公升3.35令吉，RON95汽油价格为每公升2.05令吉，而柴油价格是每公升2.15令吉。 “尽管汽油及柴油的市价超过上限，但为了保护消费者免受全球市场油价上涨的影响，政府维持RON95汽油与柴油的顶价。” 财政部说，政府将继续监督国际原油价格变化的影响，并采取适当措施保障人民福祉。 （编译：魏素雯） English version：Petrol, diesel prices unchanged over April 6-12 |
https://theedgemalaysia.com/node/632856 | MAA: July's new car sales slow 23% m-o-m, but up over six times y-o-y | English | KUALA LUMPUR (Aug 18): Malaysia's new car sales volume or total industry volume (TIV) in July came in at 48,922 units, down 23% month-on-month (m-o-m) from the 63,563 units sold in June, according to the Malaysian Automotive Association (MAA). Compared with the same month last year when only 7,499 units were recorded as movement restrictions were still in place, the TIV was up over six times year-on-year (y-o-y). In a statement on Thursday (Aug 18), MAA said July's TIV was against an exceptionally high June TIV when car companies were fulfilling many bookings received prior to June 30 — the last day of the sales tax exemption incentive period. Aside from that, MAA said the industry was also affected by the continued shortage of chips and components during the month under review. The latest monthly figures raised the TIV for the first seven months of this year to 380,595 units, up 123,918 units or 48.28% from the 256,677 units recorded in the same period last year. MAA said it expects vehicle sales in August to be maintained at July's level. In July, MAA revised its 2022 TIV forecast to 630,00 from a previous estimate of 600,000, citing the strong performance it saw in the first half of the year. |
https://theedgemalaysia.com/node/647939 | Founder's demise would trigger a major change in shareholding structure of Public Bank, says CGS-CIMB | English | KUALA LUMPUR (Dec 13): CGS-CIMB Securities has maintained its “add” rating on Public Bank Bhd at RM4.41 with a target price of RM5.20 and said while the demise of the bank’s founder and chairman emeritus Tan Sri Dr Teh Hong Piow is a loss to the bank, it does not expect this to materially affect the outlook of the bank as it is backed by a strong management team. In a note on Monday (Dec 12), the research house said Teh’s demise would trigger a major change in the shareholding structure of Public Bank. CGS-CIMB said the late Teh was the largest shareholder of Public Bank with a 23.41% stake (or 4.54 billion shares) as at March 14, 2022. “Based on the closing price of RM4.40 for PBB on Dec 12, Teh’s stake carries a total value of RM20 billion. “His demise would lead to a material change in the shareholding structure of Public Bank with the potential emergence of new major shareholders. “However, we do not have any knowledge on the arrangement by the late Teh for these shares. The possibility of M&As for PBB in the future depends on the plans by the person(s) who will inherit these stakes, in our view,” it said. The research house said highlighted that according to Section 92 of Financial Services Act, individuals are prohibited from owning more than 10% stake in a financial institution unless they already held the stake before June 30, 2013. “As such, for the individual(s) who will inherit Teh’s stake in Public Bank, he/she (they) cannot hold more than 10% stake per person,” it said. CGS-CIMB said the above news could have near-term knee-jerk effect on the share price of Public Bank but there will be limited impact from this on the near-term earnings outlook of the bank. “As such, we reiterate our 'add' call on the stock premised on the potential rerating catalyst from it having one of the lowest credit costs among its peers should the economic environment deteriorate in 2023 and from potential write-back in management overlay. “We maintain our FY22-24F EPS forecasts and DDM-based target price of RM5.20 for Public Bank,” it said. At 9.10am, Public Bank dipped 0.23% or one sen to RM4.39 with 378,400 shares done. Read also:
Public Bank founder Teh Hong Piow passes away, aged 92
Bank ownership grandfathering rule under Bafia only applies to specific shareholders, says BNM |
https://theedgemalaysia.com/node/668107 | 美元需求上升 令吉开盘微跌 | Mandarin | （吉隆坡23日讯）分析员表示，令吉兑美元开盘微跌，因为市场预期美国债券收益率上涨，提振了对美元的需求。 截至早上9时04分，令吉兑美元报4.5475/5520，周一收于4.5470/5515。 Bank Muamalat Malaysia Bhd首席经济学家兼社会金融主管Dr Mohd Afzanizam Abdul Rashid表示，美国财政部长Janet Yellen的最新消息继续表明，债务上限僵局可能对经济造成灾难，因为政府将无法履行财政承诺，包括债务义务。 “这可能导致债券收益率上升，因为美国政府面临的信贷风险将升级。” 他告诉马新社：“因此，这将继续削弱外汇市场的情绪，导致对美元的需求增加，因为投资者正在寻求躲避极端波动。” Mohd Afzanizam进一步表示，美元指数仍处于高位，美元兑令吉周一突破了4.5491即时阻力位。 “下一个阻力位将是4.6257。” 他补充说：“然而，令吉已经处于超卖位置，因此美元兑令吉将维持在4.5500左右的窄幅区间内，因为我们相信美国债务上限僵局可能会有所妥协。” 同时，令吉兑一篮子主要货币走强。 令吉兑英镑上涨至5.6548/6604，周一收报5.6578/6634，令吉兑欧元从4.9189/9238，攀升至4.9154/9203，以及令吉兑日元从3.2973/3008，上扬至3.2810/2845。 令吉兑其他东盟货币表现不一。 令吉兑印尼盾企于305.3/305.8，令吉兑新元从3.3799/3835，增至3.3773/3811，以及令吉兑泰铢从13.1950/2138，升至13.1835/2019。 然而，令吉兑菲律宾比索微跌至8.16/8.17，周一挂8.14/8.16。 （编译：魏素雯） English version：Ringgit opens marginally lower on better US dollar demand |
https://theedgemalaysia.com/node/642739 | Top party leaders defend old turf as competition intensifies | English | KUALA LUMPUR (Nov 5): Most of Malaysia’s prominent political leaders have chosen to defend their old turf, which is seen to be relatively safe, as competition in the 15th general election (GE15) heats up with every coalition seeking to make inroads into each other’s territory. Merdeka Centre programmes director and co-founder Ibrahim Sufian said the increase in the number of candidates in the GE15 is an indication of Malaysia's transition from a one-party dominant political landscape to a multi-party system. “If it goes in that direction, it is not a bad thing, as the power is spread across different personalities, and usually this kind of political climate penalises radical narratives, maintains lower temperatures in politics, and hopefully they can also walk away from being too ethnic-centric,” said Ibrahim when contacted. There will be three prime ministers, former and incumbent, contesting in the GE15, and all of them have taken a defensive mode by staying put in their current parliamentary constituencies, with the Gerakan Tanah Air coalition's pro tem chairman Tun Dr Mahathir Mohamad in Langkawi, Perikatan National (PN) chairman Tan Sri Muhyiddin Yassin in Pagoh, and caretaker Prime Minister Datuk Seri Ismail Sabri Yaakob of Barisan Nasional (BN) in Bera. At 97, two-term PM Mahathir will be rewriting his own record as the oldest Member of Parliament if he wins. As for Ismail Sabri, although Bera was marginally won in the GE14, he still seems comfortable to contest there as the Opposition parties are fragmented, said Ibrahim. He added that Muhyiddin too will probably be able to pull through in Pagoh. “He has enough stature, being a long-standing leader there, and potentially has the top leader effect to pull some votes to him,” said Ibrahim. Other party leaders who will be defending their seats are Umno president Datuk Seri Dr Ahmad Zahid Hamidi in Bagan Datuk, PAS president Tan Sri Abdul Hadi Awang in Marang, DAP secretary general Anthony Loke Siew Fook in Seremban, Parti Amanah Negara president Mohamad Sabu in Kota Raja, MCA president Datuk Seri Dr Wee Ka Siong in Ayer Hitam, Parti Warisan president Datuk Seri Mohd Shafie Apdal in Semporna, and Malaysian United Democratic Alliance (Muda) president Syed Saddiq Syed Abdul Rahman in Muar. It will be interesting to see how many of these senior politicians will be able to pull through in the GE15, as many of their opponents are coveting these parliamentary seats, which are seeing at least a three-cornered fight. A handful of senior politicians, such as Pakatan Harapan (PH) chairman Datuk Seri Anwar Ibrahim, caretaker Health Minister Khairy Jamaluddin of BN, and MIC president Tan Sri SA Vigneswaran, are however contesting in new constituencies this time. Anwar is aiming to expand his coalition’s presence in the northern region of Peninsular Malaysia, and take back control of the Perak government. Khairy has been tasked with wresting the Sungai Buloh seat from PH, while Vigneswaran, who won the Kota Raja seat in 2004 but failed to defend it 2018, is seeking to return to the Dewan Rakyat by contesting in Sungai Siput. There will also be several returnees who are contesting against each other, such as PKR deputy president Mohd Rafizi Ramli and former MCA president Tan Sri Ong Tee Kiat, who is now with Parti Warisan. Both of them are standing in Pandan. Rafizi secured the Pandan seat in the GE13, but did not seek re-election in the GE14, as he was appealing against a 30-month jail term. Ong won the Pandan seat in the GE12, but sat out in the GE13, after he lost the MCA president’s post in the party election. Another former president of MCA, Tan Sri Liow Tiong Lai, is also seeking to make a comeback in Bentong. Liow lost the seat to Wong Tack in the GE14, when the environmental activist-turned-DAP member challenged him for the second time. Wong was spearheading a campaign to stop rare earth company Lynas from operating in Malaysia. Wong has now opted to contest as an independent candidate in Bentong in the GE15, after DAP replaced him with Ketari state assemblyperson Young Syefura Othman, better known as Rara. Merdeka Centre’s Ibrahim said Bentong may be an uphill battle for Rara, considering the fragmented Opposition vying for the seat. “She probably can do slightly better than an average DAP candidate, but the situation is more favourable to BN. The question is how far PN can take votes away from BN,” the analyst said. Elsewhere, Umno supreme council member Datuk Seri Johari Abdul Ghani, who failed to defend the Titiwangsa seat in the GE14, is seeking a comeback there this time. Meanwhile, prominent young leaders fielded in the GE15 include Umno Youth chief Datuk Dr Asyraf Wajdi Dusuki in Gerik, and deputy chief Shahril Hamdan in Alor Gajah. MCA Youth chief Datuk Nicole Wong Siaw Ting has been fielded in Tebrau, and MCA secretary general Datuk Chong Sin Woon in Raub. Bersatu Youth chief Wan Ahmad Fayhsal Wan Ahmad Kamal, meanwhile, is trying his luck in Machang. There are also several offsprings of renowned politicians contesting in the GE15, such as former MCA president Tan Sri Dr Chua Soi Lek’s son Datuk Chua Tee Yong in Labis, former PAS spiritual leader Datuk Nik Abdul Aziz Nik Mat’s son Nik Omar Nik Abdul Aziz in Pasir Salak, and veteran PKR lawmaker Datuk Johari Abdul’s son Dr Mohammed Taufiq Johari in Sungai Petani. Ibrahim said the significant number of fresh faces in the GE15 is partly due to efforts to promote younger leaders, as well as seat vacancies arising from defections to other parties. “This is especially in the case of Umno, which won about 70 seats in 2018. Nearly half of them have left the party, and the seats have become vacant. In addition to that, they lost some of the seats and the original leaders would have stepped down, so naturally the lower levels rise up and fill the vacancies,” he said. Ibrahim added: “PH seems to have made a conscious effort to not field stalwarts of parties, to move away from the Reformasi generation, opening room for new faces to come in. Umno, on the other hand, seems to be consolidating power ahead of the party election post GE15 by replacing some of the old guards with loyalists. This may turn into problems for the party.” Some of the senior Umno leaders dropped from party’s candidate line-up include six-term Tanjung Karang MP Tan Sri Noh Omar, three-term Pasir Salak MP Datuk Seri Tajuddin Abdul Rahman, and two-term Ketereh MP Tan Sri Annuar Musa. For more GE15 stories, click here. |
https://theedgemalaysia.com/node/655689 | MAA: Vehicle sales down 36% m-o-m in January on chip shortage, shorter working month | English | KUALA LUMPUR (Feb 17): Vehicles sold in Malaysia fell 36% to 49,461 units in January 2023, from 76,657 units in December 2022, as the month had fewer working days due to the Chinese New Year festivities, while a shortage of chips and components continued to dog certain makes. According to the Malaysian Automotive Association (MAA) in a statement on Friday (Feb 17), car sales, however, increased 19% from 41,533 units in January last year. The MAA added that sales in February are expected to be better month-on-month (m-o-m), driven by a full working month and the fulfillment of bookings made during the sales tax exemption period. According to the MAA, sales of passenger vehicles increased to 43,927 units in January 2023 from 34,570 units a year ago, while sales of commercial vehicles fell to 5,534 units from 6,963 units. Meanwhile, total vehicle production was up 36.2% year-on-year at 58,527 units in January 2023, from 42,961 units previously. Read also:
RHB Research upgrades auto and auto parts sectors on strong earnings visibility for 2023 |
https://theedgemalaysia.com/node/644777 | 官方成绩：国大党主席威尼斯瓦兰败阵 | Mandarin | （吉隆坡20日讯）希盟（PH）候选人S Kesavan在和丰（Sungai Siput）击败国大党主席威尼斯瓦兰。 （编译：魏素雯） English version：Official: MIC president Vigneswaran loses in Sungai Siput |
https://theedgemalaysia.com/node/600121 | Building a centrepiece | English | This article first appeared in City & Country, The Edge Malaysia Weekly on December 20, 2021 - December 26, 2021 From afar, the striking Suasana PJH along the main boulevard in Precinct 2, Putrajaya, stands out due to its fritted glass façade, which looks like a diamond. “The building has a double-skin façade — a clear glass as the building’s internal façade and an outer layer of 50% opaque fritted glass, adopting the traditional Malay songket pattern to provide solar-shading to its interior spaces. The cladding is aesthetic yet functional and helps reduce the overall thermal transmission value between 40% and 50%, ultimately saving energy,” says Putrajaya Holdings Sdn Bhd director and CEO Datuk Hashimah Hashim. Sitting on a 3.86-acre site, Suasana PJH is located along two axes — one heading towards the prime minister’s residence in Precinct 1 facing the Ministry of Finance and the second, from Wawasan Square down to the Millennium Monument by the waterfront. Both blocks comprise offices from the first to the 13th floors and are supported by retail shops on the ground floor and a few on the first floor. Tower A has 14 shops on the ground floor and three on the first floor, while Tower B has 21 shops on the ground floor and four on the first floor. Completed in 2017, Suasana PJH received a GreenRE (Green Real Estate) silver rating. It was designed by local ecological architecture firm T R Hamzah & Yeang Sdn Bhd. Its principal and executive director Datuk Ken Yeang explains that the design concept of the building is to bring communal life and buzz to the boulevard to invigorate the encompassing urban fabric and public realm. Suasana PJH receives an honorary mention at The Edge Malaysia-PAM Green Excellence Award 2021. The office building has a total gross floor area of 813,316 sq ft and a net floor area of 594,275 sq ft. At 11% occupancy, the tenants include a government department and a government entity, as well as retail businesses such as food and beverage outlets, a jewellery shop, an optical shop, a bank and a telecoms infrastructure service provider. The maximum building capacity is about 5,500 people. “Waste management and sustainable timber were used during the building’s construction and more than 40% of the site was allocated for landscaping, which exceeds the norm of 30% regularly practised in Putrajaya. This is where well-managed landscapes are beneficial to people and the environment, and subsequently helps conserve the existing natural area and restore the damage caused by development,” says Hashimah, adding that low volatile organic compound (VOC) paints were used to improve indoor air quality. LED and T5 light fittings were incorporated throughout the entire office, common areas and façade lighting. There is also a seven-storey atrium in the lobby that features a back wall design with a glass skylight canopy and is integrated with a building maintenance unit (BMU) system to maximise daylight penetration. Hashimah says water-efficient fittings were included in the public toilets and pantries, which contributed to the effectiveness of the use of treated water by 40%. “There is also rainwater harvesting to irrigate the landscape, and condensate recovery, which is a process to reuse the water and sensible heat contained in the discharged condensate. This can lead to significant savings of energy, chemical treatment and make-up water.” Considering that the building is located along the boulevard, the car park cannot be elevated and has to be underground. “For conventional underground car parks, ventilation fans are included but what we did for Suasana PJH was incorporate a spiralling device called ‘eco-cell’ along the car park ramp that allows for continuous vegetation, natural light and ventilation to extend into the car park levels below,” says Hashimah. “The continuous vegetation connects the green area from Level one’s retail garden down to Level two of the basement, and channels surface rainwater into bioswales at selected sections and locations that seep the water back to the ground to replenish the groundwater.” In between the two symmetrical tower blocks is a 34,584 sq ft landscaped central promenade which, according to Hashimah and Yeang, is an active public realm consisting of wide green open spaces, seating pavilions, semi-covered seating areas and linear planting areas as temporal event spaces that face the retail shops. The verandah-ways (semi-covered walkways) on the ground floor are designed to provide protection from the weather. “We intend to facilitate placemaking by bringing the crowd [to the promenade] for them to enjoy, relax and interact with each other. These spaces for social interaction are located not only on the ground floor but also the first floor and at various protruding planted balconies. The tower blocks also provide shade over the promenade for most parts of the day,” says Hashimah. Meanwhile, Yeang notes that the building has several zones for vegetation that were created as habitats to attract native fauna to the locality — whether it is for feeding, breeding, refuge or water. For instance, a number of habitats are created in the skycourts (balconies) and they are matched with selected native flora to attract the fauna. “We want to bring biodiversity back to the locality, guided by a biodiversity matrix prepared as the basis for the design of the building’s landscaped areas. This will create a balance between the built environment and preservation/creation of habitats of flora and fauna,” says Yeang. He adds that instead of using conventional louvres, the cavity space between the external and internal façades is naturally ventilated and opens up to the sky, creating a chimney stack effect to further reduce the heat transfer into the building. Hashimah highlights that one of the main challenges during the building’s planning process was complying with the local authority’s stringent requirements in the building’s design and quality. The site had been earmarked as a landmark due to its location across the road from the Ministry of Finance. Thus, full basement car parks and high specifications for façade lighting and green building requirements were implemented, which increased the project’s construction and compliance costs. “To solve this issue, we engaged Putrajaya Corp (PJC) in the building’s design process and tried to find alternative ways of compliance to achieve a more meaningful outcome. A lot of value engineering was required to eliminate unnecessary costs while maintaining or improving performance and quality requirements of the building,” she says. Since the building would be located in an urban area, it required careful logistics planning and integration with the surrounding infrastructure and amenities. “To ensure a smooth building process, we used the Building Information Modelling (BIM) system, a process supported by various tools and technologies to increase construction project efficiency and effectiveness, subsequently avoiding problems on site,” says Hashimah. The maintenance of green and sustainability features was planned as an integral part of the building design. “We understand that there is capital cost to the features but the life-cycle cost is the one that matters and a long-term study was conducted during the design and construction of the building — to balance the building cost with operational savings and efficiency that can lower heat gain, reduce about 55% of potable water consumption, as well as reduce electricity use and utilities cost.” The investment in green features and operational cost savings/efficiency are crucial to safeguard the overall value of the asset in the long term, she adds. Save by subscribing to us for your print and/or digital copy. P/S: The Edge is also available on Apple's AppStore and Androids' Google Play. |
https://theedgemalaysia.com/node/666598 | Pentamaster posts mildly stronger 1Q profit as factory automation business lifts | English | KUALA LUMPUR (May 11): Pentamaster Corp Bhd's net profit rose 4.3% to RM21.27 million for the first quarter ended March 31, 2023 (1QFY2023), from RM20.4 million a year ago, underpinned by a stronger factory automation solutions (FAS) segment. Earnings per share grew to 2.99 sen from 2.86 sen, it showed in a filing with Bursa Malaysia on Thursday (May 11). Quarterly revenue climbed 13.2% to RM165.31 million from RM146.02 million, driven by an increased top line from FAS, which contributed 32.7% of total revenue. The remaining 67.3% came from the automated test equipment (ATE) segment. The group did not declare any dividends for the quarter under review. Pentamaster said the FAS segment enjoyed better profit in 1QFY2023 due to an increase in revenue, favorable changes in the product mix with better profit margins, and economies of scale achieved for the projects undertaken. The ATE segment, however, had to make "major salary adjustments" that impacted its direct labour and indirect labour costs, and there was also some revenue contraction from delays in project delivery. Based on a revenue breakdown by customer segment, Pentamaster said it sees strength in automotive and medical devices, which are benefiting mainly from intensified automotive electrification and the prevalent application of automation in medical manufacturing activities. Automotive customers are the biggest revenue contributor to the group's ATE business, which it expects to continue to be the larger contributor to its total revenue, albeit at a lower degree — which the group said is in line with its ongoing effort in driving segmental diversification. Demand from customers in the electro-optical segment, meanwhile, continued to be modest due to ongoing subdued volumes for smartphones, given the lack of new smart sensor development and the impact on consumer spending on such hardware upgrades. “Both the semiconductor and consumer and industrial products segments see a trend of modest growth, and the group expects the proportions of revenue from these segments to remain consistent as the previous year,” Pentamaster added. Its share price rose three sen to RM4.83 on Thursday, giving the group a market capitalisation of RM3.44 billion. |
https://theedgemalaysia.com/node/632362 | KNM founder Lee Swee Eng ceases to be substantial shareholder | English | KUALA LUMPUR (Aug 15): KNM Group Bhd founder Lee Swee Eng has ceased to be a substantial shareholder of the industrial process equipment maker. This comes after he disposed of 40 million KNM shares via direct business transactions on Aug 12, according to the group's Bursa filing on Monday (Aug 15). "[The] 40 million shares represent 1.088% of the issued and paid-up share capital of 3.68 billion ordinary shares, which exclude a total of 1.84 million ordinary shares held as treasury shares as at Aug 15," the filing read. Lee founded KNM Group in 1990 as a private company specialising in manufacturing of process equipment and developed it into a global process equipment manufacturer and total solutions provider for the oil and gas, petrochemical and energy industries. He was appointed as group managing director of KNM in June 2003. He was redesignated as executive chairman and group chief executive officer in September 2010. He then relinquished his position as executive chairman in April 2013. In July 2020, KNM announced that Lee was retiring and would relinquish his posts as group CEO and executive director, with both positions being taken over by Tan Koon Ping. Shares in KNM closed unchanged on Monday at 12 sen, giving the group a market capitalisation of RM441.4 million. Read also:
KNM Group founder Lee Swee Eng retires after 30 years |
https://theedgemalaysia.com/node/651239 | Serba Dinamik seeking legal advice over winding-up order | English | KUALA LUMPUR (Jan 10): Serba Dinamik Holdings Bhd said it is seeking legal advice to appeal or set aside the winding-up order granted against the group and three wholly-owned units over debts of about RM5 billion. The troubled oil and gas services provider said that following the winding-up order, its directors have been rendered functus officio (without further authority) save for residuary powers to appeal against the order. Any further queries in regard to the affairs of Serba Dinamik are to be directed to its liquidator, the group said in a bourse filing on Tuesday (Jan 10). Earlier in the day, the High Court allowed a petition by six financial institutions to wind up Serba Dinamik, its wholly-owned subsidiary Serba Dinamik Group Bhd and indirect wholly-owned units Serba Dinamik International Ltd and Serba Dinamik Sdn Bhd, over debts totalling about RM5 billion. The financial institutions are Standard Chartered Saadiq Bhd, HSBC Amanah Malaysia Bhd, Ambank Islamic Bhd, MIDF Amanah Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd and Bank Islam Malaysia Bhd. The court also granted an order for licensed liquidator Victor Saw Seng Kee of PricewaterhouseCoopers Advisory Services Sdn Bhd to be appointed as Serba Dinamik’s liquidator. Shares in Serba Dinamik were suspended on Dec 23 last year, following the group’s failure to submit its annual report for the financial year ended June 30, 2022. The counter last traded at one sen, giving the group a market capitalisation of RM37.1 million. |
https://theedgemalaysia.com/node/600752 | Frankly Speaking: The cost of a failed MGO | English | This article first appeared in The Edge Malaysia Weekly on December 20, 2021 - December 26, 2021 Damansara Holdings Bhd joins the list of companies that would have a tight free float due to a mandatory general offer (MGO) that did not achieve the intended outcome. At the close of a general offer at 50 sen per share, Johor Corp Bhd, which is the ultimate offerer, ended up with 82.05% of the property development company. Damansara now does not meet the free float requirement for listing on Bursa Malaysia, which states that at least 25% of the shares must be held by the public. Neither is JCorp close to getting the 90% acceptance level that would allow the company to be suspended from trading. Once a counter is suspended, the tendency is for those holding out to sell on the open market and exit.For JCorp to get 90%, it would need to mop up shares from the market, which can be a time-consuming exercise and leads to uncertainties. However, that is the route some major shareholders are taking to increase their stake following a less than successful MGO. In the case of the Federal Land Development Authority’s MGO for FGV Holdings Bhd, the former is now mopping up shares from the market at higher than the RM1.30 offer price. The MGO ended in March with the government agency holding about 74%. Now, it is inching closer to the 80% mark. Cycle & Carriage Bintang Bhd’s major shareholder, Jardine Cycle & Carriage Ltd (JCCL), is holding just above 89% of the company. But how it is going to breach the 90% mark is still uncertain. JCCL has been buying the shares at RM2.40 on the open market. It is the price that JCCL offered in an MGO in March this year. But the sellers have dried up. Learning from the lessons of FGV, CCB and now Damansara, major shareholders planning to take over companies should make an offer so good that it would be difficult for shareholders to refuse. That way, the privatisation would achieve its objective faster and reduce uncertainties. 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/641490 | Tech-related stocks on Bursa pull back in line with Nasdaq dip | English | KUALA LUMPUR (Oct 27): Technology-related stocks on Bursa Malaysia pulled back in early trade on Thursday (Oct 27), tracking the overnight fall on Wall Street. At 9.20am, the technology index had shed 0.19% or 0.11 point to 57.46. Among the decliners, Hong Seng Consolidated Bhd fell 2.13% or half a sen to 23 sen, Dagang NeXchange Bhd dipped 1.33% or one sen to 74 sen, Censof Holdings Bhd shed 1.69% or half a sen to 29 sen, AwanBiru Technology Bhd fell 1% or half a sen to 49.56 sen, Inari Amertron Bhd dipped 0.42% or one sen to RM2.39, and Mi Technovation Bhd was down 0.89% or one sen to RM1.11. Reuters said Nasdaq futures fell more than 1% on Wednesday, after disappointing results from technology giants Microsoft Corp and Google parent Alphabet Inc sparked losses in other megacap companies, and raised fears of slowing economic growth. It said Microsoft posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet posted downbeat ad sales and cautioned of a slowdown in advertising spending. Read also:
Alphabet, Microsoft spark US$380 bil megacap rout |
https://theedgemalaysia.com/node/663618 | Person at the centre of Crackhouse Comedy Club uproar pleads guilty, fined RM8,000 | English | KUALA LUMPUR (April 17): The person at the centre of the controversy over her questionable caper at Crackhouse Comedy Club last year, Siti Nuramira Abdullah, was today given an RM8,000 fine by the Sessions Court here on Monday (April 17). This follows the 27-year-old pleading guilty to an alternative charge under Section 298 of the Penal Code. She admitted to deliberately hurting the religious feelings of Muslims during the stand-up comedy act at the club, in Taman Tun Dr Ismail on the evening of June 4, last year. Siti Nuramira was initially charged last July 13, under Section 298A(1)(a) of the Penal Code with allegedly causing disharmony or feelings of enmity on grounds of religion between persons professing the same religion for her performance at the club. If found guilty on the main or initial charge, she could have faced imprisonment of not less than two years and not more than five years. However, in the alternative charge under Section 298, a person who was found guilty may be punished with jail of up to a year or a fine or both. Deputy public prosecutor Abdul Malik Ayob informed Sessions Court judge N Priscilla Hemamalini that the alternative charge was offered following a decision by the Attorney General’s Chambers to accept her lawyer’s representation letter dated March 16. Abdul Malik however, stressed the offer of the alternative charge does not mean that the offence was not serious as her questionable actions received widespread attention in the country. "Malaysia is a multiracial country with different races and religions. To maintain harmony, nobody should act in a way that can hurt the feelings of other people of any religion or disturb any religion. "The accused could have performed a stand-up (routine) without referring to any religion because religion should not be made a material for comedy," he said. Abdul Malik said the prosecution sought a sentence that fits the seriousness of the offence and a deterrent to others. Siti Nuramira’s counsel R Sivaraj in mitigation asked for a lenient sentence as his client did not have prior conviction and her plea of guilt had saved the court’s time and costs. Sivaraj said his client was not involved in any other comedy act related to the offence and had deleted her social media account to avoid controversy. He said the incident had caused Siti Nuramira to face lifestyle, mental health changes and put a strain on her social relationship and that her 10-day remand also served a lesson. “My client is remorseful of her actions and apologises,” the counsel said. Following that, Priscilia fined her RM8,000 or in default four months jail. Siti Nuramira paid the fine. Read also:
Woman in viral 'stand-up comedy' clip charged |
https://theedgemalaysia.com/node/628195 | Q & A: Taking bold actions to be plastic free | English | This article first appeared in The Edge Malaysia Weekly on July 18, 2022 - July 24, 2022 In conjunction with “Plastic Free July”, ESG interviewed Geoff King, CEO of The Food Purveyor Sdn Bhd (TFP), on his journey to reduce single-use plastics in Malaysia. The private equity (PE)-backed company operates five supermarket brands in Malaysia: Ben’s Independent Grocer (BIG), Village Grocer, BSC Fine Foods, Leisure Grocer and Pasaraya OTK. TFP has been quite bold in its move to reduce plastic use in its operations, with the aim of becoming single-use plastic free by the end of 2023. In October 2020, BIG became the first multi-site grocer in Malaysia to stop providing single-use plastic to customers. Village Grocer followed suit in February 2021. ESG interviewed King in the Village Grocer located in Subang Parade, one of four locations where TFP has installed a refill station for dried food. Customers can bring their own containers to purchase the food items. The three areas where TFP uses the most plastic in products are the fresh food, protein and bakery sections. The other sections are filled with pre-packaged products by suppliers, so TFP has less influence to eliminate excess plastic packaging. In those three areas, however, it has been reducing plastic packaging and introducing new materials. The fresh food section, for instance, now has “naked” fruits and vegetables. “Prior to this, we shrink-wrapped every single piece of vegetable in cling film to protect the product. (Now) we use special boxes made of metal. We fill it with water underneath to keep the products fresh. Instead of wrapping (the vegetables) with plastic, our staff come around (routinely) to spray it with water. It’s a whole new science of care,” says King. TFP shies away from using biodegradable plastic solutions. But that has made it more challenging. “The beans will fall out of boxes unless we put a bit of plastic to keep it in place. The leafy vegetables will scatter without a thin plastic ribbon to tie it in place,” says King. In the protein section, the meat products used to be displayed on plastic trays. TFP replaced the trays with a cardboard solution. “However, it doesn’t perform well when you freeze it. We haven’t completely gotten rid of the plastic too, since there’s a shrink-wrap cover,” says King. “The challenge is (also) when you order meat. The guys will put it in a plastic bag and wrap it around another plastic bag. So, we are trialling the use of (reusable) Ziploc bags for customers to take away meat. But the price point could be up to RM40, so customers didn’t really like that.” In the bakery, the cashier no longer puts purchased buns into individual bags, and plastic cutlery and cups are in the process of being replaced. There is still a long way to go. In the fresh food area, many vegetables and fruits are still sold in plastic packaging; rolls of plastic are available for customers. King says these are problems that they want to solve by trying new solutions and working with suppliers. “It’s more of a challenge with organic supplies because their products are more fragile. It’s still a work in progress. But if we hadn’t done it, we would have made no progress,” he says. It’s also a matter of slowly encouraging customers to change their behaviour. King says they tried to eliminate the plastic bag rolls and replace them with reusable mesh bags. “Nobody bought them, so we ended up gifting them. But even I struggle to remember to bring it in my bag. This is a block that stops us from achieving our goals, so we’ve had to roll back a bit and realise that it’s a learning process. We can’t push customers beyond where they’re prepared to go,” says King. In the other aisles, TFP has made conscious sourcing decisions, such as phasing out single-use plastic containers and selling disposable cutlery or plates made of natural materials. Following are excerpts from the interview. ESG: What stood out to you in your journey to make TFP single-use plastic free? King: Freshness (of the food) is always a challenge when you take away plastic. We are famous for the quality of our produce, so (by introducing these changes) we could be putting our brand at risk in the customer’s eyes. We saw companies making (net-zero) commitments for 2030 or 2050 and our view is that it’s too far away. We need to do something today. Any longer than that, the world would have heated up and it would be too late. We want to be a change activator. Any plans to reach out to non-food suppliers to reduce single-use plastic packaging? We are about to start a trial in Mont Kiara where we work with detergent manufacturers and suppliers, so we’ll have dispensing systems. We’ll have a whole wall of suppliers doing different things to showcase what can be done if you bring your own containers. At the same store, we are working with Klean (a reverse vending machine provider) to collect bottles and tins through a vending machine. Customers can drop their old bottles and tins and collect points, which can be redeemed for our loyalty points. Is it possible to imagine large chain grocery stores that are completely plastic free? I don’t think we will ever completely eliminate plastic. But the plastic we use can either be reused or recycled. A packet of crisps sold in the future could be put in a recyclable plastic bag. There must be waste segregation at home to ensure that the plastic bag can be channelled to a recycling centre. That comes beyond our realm of influence, so we have to work with partners and industry players. What about all the plastic that comes with online orders? This is a challenge. We do offer recycled bags instead of plastic bags, but you have to tick a box and pay for it, so the take-up rate is very low. We’ve been working with Foodpanda, which introduced the use of a recycling bag. HappyFresh did the same. We have our own delivery system where you can choose a reusable bag. There is no way for you (customers) to return the reusable bag to us yet. So, it’s not really fulfilling the reuse ecosystem. If you’re an online shopper, you will accumulate tonnes of bags. We’re still scratching our heads on this one. Which department is in charge of thinking about all these solutions? Every department is accountable for finding its own solutions. We have a cross-functional plastics meeting once a month to monitor the progress. (For instance) the bakery team will talk to suppliers to find solutions. Do you measure your greenhouse gas emissions? We didn’t, but we’ve started to because our PE owner has insisted that we adopt more formal approaches and issue an ESG report annually. We’re monitoring energy usage. Our refrigeration system, when it gets replaced, will be more efficient. Over time, we’ll be using low-energy lighting. But the biggest issue we have is plastic and food waste. What do you do with food waste? About 85% of the (food) products are sold at full price and around 5% are reduced to clear, where the products are nearing the sell-by date and we sell these at half price. The rest is where (non-profit organisation) The Lost Food Project comes in. It has communities to serve who don’t mind food products that are slightly past the sell-by date, which is different from expiry or spoilage dates. We are also looking at people who can take waste organic produce and turn it into plant or animal feed. What do you hope to see from stakeholders? We are a change agent on our own, but it would be great if (our actions) can trigger more action (by others). Many have followed our no-bag policy but it’s not on the agenda of many retailers. I would love for the government to point out existing examples where it works and make it a national initiative. 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/632471 | 联昌国际7月外资持股权增至25.6% | English | （吉隆坡16日讯）联昌国际集团（CIMB Group Holdings Bhd）今年7月外资持股权增至25.6%，1个月前为25.1%。 去年7月，外资持股权为22.1%。 追溯2020年5月，外资持股权达25.6%，低于同年4月的26.3%。 根据联昌国际集团的数据，外资持股权的最高纪录是42.9%（2011年6月），最低纪录则是20.3%（2021年5月）。 截至6月30日，国库控股（Khazanah Nasional Bhd）持有该集团的24.8%股权，雇员公积金局（EPF）则持股16.4%。 同时，国民投资机构（Permodalan Nasional Bhd）持股11.3%，公务员退休基金局（KWAP）则持股6.3%。 截稿时，联昌国际集团企于5.43令吉，市值约568亿5000万令吉。 根据4月25日的文告，流通股数量为104亿7000万股。 （编译：魏素雯） English version：Foreign shareholding in CIMB rose to 25.6% in July |
https://theedgemalaysia.com/node/674725 | Bursa closes mixed on late selling, KLCI ends at intraday low | English | KUALA LUMPUR (July 13): Late selling of selected heavyweights, led by healthcare and consumer products and services counters, resulted in Bursa Malaysia closing mixed on Thursday (July 13). The local benchmark index ended at an intraday low despite the positive sentiment on regional bourses. At 5pm, the FBM KLCI had slipped 1.83 points or 0.13% to 1,396.23, from 1,398.06 at Wednesday’s close. The barometer index opened 3.04 points better at 1,401.10 on Thursday morning, and moved to the highest point of 1,401.76 in the morning session. The broader market was positive, as gainers beat losers 518 to 378, while 400 counters were unchanged, 960 untraded, and 14 others suspended. Turnover rose to 2.93 billion units worth RM1.78 billion, versus 2.82 billion units worth RM1.73 billion on Wednesday. IHH Healthcare Bhd and Petronas Dagangan Bhd (PetDag) were the top contributors to the loss in the key index. IHH declined 18 sen to RM5.77, while PetDag lost 64 sen to RM21.76, contributing a combined loss of 3.67 points. However, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng expects to see further upside in the near future, as the KLCI remains in an oversold position. “If the benchmark index is sustained above the 1400 level for a longer period, for about four to five days, the outlook of the benchmark index will be positive in the longer term. “The long-awaited 1,395 resistance has been broken, therefore the outlook has turned more positive. However, there are also profit-taking possibilities, because the index has gained quite a lot lately,” he told Bernama. Additionally, Thong said the improving relationship between the US and China would provide an additional boost to investors’ confidence moving forward. Among other heavyweights, Malayan Banking Bhd (Maybank) at RM8.73 and CIMB Group Holdings Bhd at RM5.20 had decreased two sen each. Petronas Chemicals Group Bhd slipped three sen to RM6.13, while Public Bank Bhd improved five sen to RM3.92, and Tenaga Nasional Bhd went up seven sen to RM9.10. Of the actives, Sarawak Consolidated Industries Bhd shed three sen to 46.5 sen, while Classita Holdings Bhd advanced 1.5 sen to 14 sen, Hong Seng Consolidated Bhd perked one sen to 9.5 sen, and Ta Win Holdings Bhd earned half a sen to 4.5 sen. On the index board, the FBM Emas Index was 1.88 points firmer at 10,302.23, the FBMT 100 Index eased 0.93 of a point to 9,989.26, the FBM Emas Shariah Index was 18.58 points lower at 10,583.93, the FBM 70 Index improved 50.11 points to 13,604.97, and the FBM ACE Index fell 8.75 points to 5,212.52. Sector-wise, the Financial Services Index increased 47.88 points to 15,545.16, the Industrial Products and Services Index inched down 0.19 of a point to 161.07, the Energy Index reduced 2.70 points to 811.18, while the Plantation Index shed 0.36 of a point to 6,895.67. The Main Market volume narrowed to 1.99 billion units valued at RM1.53 billion, from 2.09 billion units valued at RM1.50 billion on Wednesday. Warrant turnover expanded to 399.67 million units worth RM62.76 million, against 299.16 million units worth RM47.77 million. The ACE Market volume strengthened to 536.55 million shares valued at RM182.49 million, from 422.16 million shares valued at RM179.29 million previously. Consumer products and services counters accounted for 441.09 million shares traded on the Main Market, followed by industrial products and services (612.31 million), construction (98.93 million), technology (209.90 million), special purpose acquisition companies (nil), financial services (80.43 million), property (212.72 million), plantation (26.92 million), real estate investment trusts (8.67 million), closed/funds (6,900), energy (132.17 million), healthcare (69.93 million), telecommunications and media (32.10 million), transportation and logistics (25.77 million), and utilities (43.67 million). |
https://theedgemalaysia.com/node/606900 | High Court strikes out Serba Dinamik’s bid to stop Bursa Malaysia from compelling company to release fact-finding update | English | KUALA LUMPUR (Feb 10): The High Court had on Thursday (Feb 10) dismissed Serba Dinamik Holdings Bhd's application for an injunction on Bursa Malaysia Securities Bhd to prohibit the regulatory authority from forcing the company to release the fact-finding update (FFU) by Ernst & Young Consulting Sdn Bhd (EY Consulting). In his decision delivered via proceedings held on Zoom, Justice Datuk Ahmad Fairuz Zainol Abidin ruled that Serba Dinamik's application to seek an injunction is not defensible and factually not supported, given the undertaking the company has with regards to contractual obligations with Bursa Malaysia. “Furthermore, the court should not second-guess the functions of a regulator in imposing such conditions [for the company to make the announcement]. If so, there would be chaos if the court were to choose and accept to undertake Serba Dinamik's own interpretation rather than that of Bursa Malaysia, which is the regulator,” he said. Justice Ahmad Fairuz cited the Federal Court's recent decision on Datuk Mohd Afrizan Husain versus Bursa Malaysia last month in arriving at the decision on Thursday. “With this, the court dismissed the application in Enclosure 1 [for the injunction],” the court added. Justice Ahmad Fairuz also ordered Serba Dinamik to pay RM30,000 costs to Bursa Malaysia, as the case was brought requiring immediate attention. Counsel Mak Lin Kum appeared for Serba Dinamik while senior counsel Datuk Loh Siew Cheang appeared for Bursa Malaysia. Lawyer Christopher Leong held a watching brief for the Securities Commission. Serba Dinamik had filed the legal action against Bursa Malaysia last November seeking to impose an injunction on the regulator from forcing it to reveal the findings. It has also filed a similar application against EY Consulting which is fixed for hearing on Feb 16, also before Justice Ahmad Fairuz. Besides the injunction, Serba Dinamik also sought to nullify the appointment of EY Consulting under Bursa Malaysia’s directive to conduct the special independent review (SIR). Serba Dinamik has been under regulatory and public scrutiny amid several issues raised by its then external auditor KPMG involving its accounts for the 12-month period ended Dec 31, 2020. On Monday (Feb 7) at another High Court here, Judicial Commissioner Wan Muhammad Amin Wan Yahya had ordered Serba Dinamik to reveal the FFU within two market days. However, it is understood that Serba Dinamik has formally written in to apply for a stay of Wan Muhammad Amin's decision, and that application will be heard on Monday (Feb 14). In the Afrizan case, the apex court had last month ruled that there was no mandatory requirement on Bursa Malaysia's part as a stock exchange to immediately delist a company when a winding-up order is made against the listed entity, when it dismissed the interpretation of the liquidator. The High Court on Thursday also said Bursa Malaysia was not acting in excess of its power when it suspended trading of shares in the oil and gas engineering company. Justice Ahmad Fairuz said Bursa Malaysia was carrying out its duties under Section 11 of the Capital Markets and Services Act 2007 (CMSA) as a regulator due to unusual activity on the last trading day before the regulator ordered Serba Dinamik's shares to be suspended. “It would be a failure on the part of Bursa Malaysia if it did not go through with the suspension,” he said. The court further said that there was no procedural unfairness as claimed by Serba Dinamik that led to its suspension, when the company claimed that only the listing committee can issue such a suspension. “This court should not second-guess the regulator and the claim that only the listing committee can decide its suspension is devoid of merits,” the judge said. Justice Ahmad Fairuz added that it was Serba Dinamik's own decision to choose EY Consulting to do the SIR and prepare the FFU as such conditions of the special auditor's appointment were generally made and not imposed by Bursa Malaysia. “The claim made by the plaintiff [Serba Dinamik] that it was directed to appoint EY Consulting is not supported by the facts. Bursa Malaysia did not direct Serba Dinamik to appoint but it was on the company's own choosing. It is for the plaintiff to appoint and choose an auditor to do the SIR. “Hence, the claim of non-compliance of Regulation 2.24 of the Main Market Listing Requirement (MMLR) does not arise as Bursa Malaysia did not direct as to the E&Y Consulting's appointment,” the court said, adding Bursa Malaysia has made a commercial judgment and merely was carrying out its duties under Section 11 of CMSA for the SIR to be conducted. The counter, which was suspended on Oct 22 last year, last traded at 35 sen, giving it a market capitalisation of RM1.3 billion. Read also:
Serba Dinamik ordered to reveal fact-finding update by EY Consulting
Court: Wound up companies still need to comply with listing rules if not delisted yet |
https://theedgemalaysia.com/node/603376 | Brokers Write: Intangibles the new building blocks for Malaysia | English | This article first appeared in Capital, The Edge Malaysia Weekly on January 10, 2022 - January 16, 2022 MALAYSIA’s recent political uncertainty, which has seen three prime ministers in three years, has been greeted with dismay by foreign investors. If the country’s overall investment environment does not improve in the next few years, it could result in a severe loss of confidence. Earlier in 2021, the International Monetary Fund had forecast that Malaysia’s GDP would grow by 6.5%. Latest revisions now predict that the economy will grow by only 3.5% in 2021. In 2020, the country’s GDP decreased by more than 5% — the worst performance since the 1997/98 Asian financial crisis. In the short term, uncertainty will remain until the new government’s direction for the country becomes clearer. The new government needs to recover the goodwill of foreign investors. The Malaysian market, which is trading at 16 times earnings, is not cheap. The lack of liquidity and persistent weakness of the ringgit are also concerns for investors. Malaysia needs to deepen its capital markets to attract savings and investments. From the late 1990s to early 2000s, Malaysia’s stock market carried a 9% weighting on the MSCI AC Asia ex Japan Index. Latest numbers as recent as October 2021 show that Malaysia’s weighting only makes up 1.5% of the MSCI AC Asia ex Japan Index. This is a concerning sign as both active and passive funds are essentially decreasing their ownership of Malaysian stocks and bonds. Therefore, do not expect foreign investors to rush in to buy Malaysian stocks. Generally, there will be a wait-and-see approach. However, the longer-term worry is that Malaysia is caught in a middle-income trap and faces difficult structural issues. Countries such as Malaysia, a largely export-driven economy, which have strived in an era of globalisation are now coming under challenge. With free trade in retreat, the country must adapt and change its course. It is unsustainable for the nation to rely on its traditional economic drivers. Despite achieving per capita income of US$10,400 (RM44,000), which places Malaysia as an upper-middle-income country, the big risk for the economy is that it will remain stuck in a middle-income trap — especially if solutions are not found to the longstanding problems of brain drain and capital flight. The peak of globalisation and supply chains of the late 1980s through to the early 2000s is now in decline. Less trade and far more localisation and regionalisation are on the rise. Emerging markets have too much supply of cheap labour, but too little of intangibles and key technologies. With the importance of cheap labour diminishing even in highly labour-intensive industries, the role of robotics and automation will continue to grow. Covid-19 has only served to accelerate these trends towards higher levels of automation. Malaysia needs to continue climbing up the productivity ladder through gains in efficiency and knowledge. The country’s educational system needs to be improved and the system of vocational training upgraded. The UN estimates that emerging markets (EMs) excluding China will have a labour force of 500 million over the next decade and one billion by 2040. During this period, EMs ex-China are projected to have a population of more than 1.6 billion young people (those under the age of 15). Therefore, over the next few decades, emerging markets will have to create more than 45 million jobs per year. Countries such as Malaysia may struggle to compete in this new “Information Age”. The way forward for countries like Malaysia is to no longer rely on leveraging global demand. Instead, it should rely on embracing digital technology and additive/high-end manufacturing — that is, IT, technology, software and social capital. Positioning the country for structural change will be a long-term project that requires careful nurturing over a period of time. Malaysia has the necessary building blocks. The country has over 80% of its workforce classified in the semi- to highly-skilled category. For example, Penang has built up its advantage with a long-established ecosystem of suppliers and customers in the semiconductor, electronics and medical devices industry. Its resilient supply chain has been able to keep up with the changing technological demands over the past 30 years. Penang’s industrial strength in advanced manufacturing, especially in back-end semiconductor manufacturing, is a testament to the country’s technological innovation. The island state is also an important medical device manufacturing hub in the region, housing six out of the global top 30 medical device companies, including Abbott, B Braun and Boston Scientific. As these trends get stronger, it will be countries that have a strong base of intellectual and intangible assets that will do best. Economies that continue to rely on cheap labour and basic commodities will fall further behind. Therefore, intangibles are now the building blocks that will go on to deliver growth and wealth. Additionally, the rule of law has to be strengthened further. Key institutions for good governance — including the legislative system, the judiciary and the civil service — urgently need to raise their standards to strengthen the Malaysian brand in world markets. Malaysia’s leadership needs time, unity and a little bit of luck to overcome these challenges. The country only needs to get a few important things right. Malaysia needs to stop the brain drain and capital flight. Efforts to lure back overseas Malaysians could include incentives to relocate. Lowering the requirements for applicants under the Malaysia My Second Home programme could be a good starting point. The country has the right tools in place to position itself for a long-term and sustainable future. It can then go on to build a more inclusive and sustainable society — one that will be able to weather challenges, both internal and external. Datuk Seri Cheah Cheng Hye is co-chairman and co-chief investment officer of Value Partners Group Ltd. Bryan Lim is portfolio manager in the Cheah Family Office. 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/642863 | Cover Story / Run-up to GE15: Five tasks for the new government post-GE15 | English | This article first appeared in The Edge Malaysia Weekly on November 7, 2022 - November 13, 2022 CURRENTLY, my business has a moderate growth rate. The main issues restricting our growth at the moment are the lack of affordable manpower, skyrocketing costs and an unstable supply chain,” says Fatin Rasyiqa Mustaza, founder and CEO of Chunky Foods Sdn Bhd, a manufacturer and supplier of health food based in Sri Rampai, Kuala Lumpur. “These issues restrict our potential and widen our business risk factors,” she tells The Edge. Fatin is a voter in the Segambut parliamentary constituency. The campaign period for the 15th general election (GE15) started officially with the nomination of the candidates on Saturday, but it cannot overshadow the everyday issues that the people face. “The top priority would be socioeconomic well-being, which is rapidly deteriorating,” says Imran Nurginias, chief economist at BIMB Securities. “Therefore, expect the government to implement policies that include helping people ride through the high cost of living due to rising inflation.” The new government is expected to calibrate macroeconomic policies to ensure strong growth, says Imran, with continued targeted policy support in the near term, while preserving policy space to respond to downside risks and to accelerate structural reforms. The expectation that the new government will focus on macroeconomic policies will include a relook at Budget 2023, which was tabled just prior to the dissolution of parliament. This is because the budget was not passed by the House and does not bind the next government. “Macroeconomic policies should be calibrated to address the sizeable economic slack, high uncertainty and medium-term scarring, while preserving policy space, given pandemic-related risks and development spending needs,” says Imran. In the real economy, this translates into tough times as consumers cut back on spending. “My dental clinic’s performance is going down because of the tough economic condition that has been affecting most businesses. It creates a chain reaction, as when people’s budgets are tight and spending priorities have shifted,” says Dr Farhan Razak, director and principal dentist at Zen Dental Clinic in Lembah Pantai. Farhan is a voter in Marang, Terengganu. “I hope the new government can provide some kind of subsidy for the people to seek health treatment from private clinics, so that middle-income people can opt to go to private clinics while having to spend less. “Not every single treatment can be done at government clinics and hospitals, as there are limited treatment options for dental health and, of course, there is the long waiting time,” says Farhan. The rising cost of living has eaten into the people’s spending power, leading them to reprioritise their spending. For private dentists such as Farhan, this has meant falling income as people tighten their belts and put off optional dental care. Those in the low-income group feel the pain more. They are finding it difficult to make ends meet, as things are becoming increasingly pricier. Therefore, the new government ought to make it a priority to address the issue of high inflation and high cost of living, says Lee Heng Guie, executive director at the Socio-Economic Research Centre of the Association of Chinese Chambers of Commerce and Industry. “[The new government should prioritise] measures to mitigate the impact of rising prices and high cost of living on vulnerable households. These include reviewing the effectiveness of current price controls to balance as well as protect the interests of consumers and businesses,” he says. Malaysia’s consumer price index (CPI) remained at the elevated level of 4.5% year on year in September, although this was slightly lower than the 4.7% seen in August. While this is quite benign compared with the global level, most people still feel the pinch. BIMB Securities’ Imran says temporary additional fiscal support, combined with a further easing of the monetary policy stance, could be considered if downside risks materialise for the economy. Last Thursday, Bank Negara Malaysia raised its overnight policy rate for the fourth time this year by another 25 basis points, to 2.75%. Cumulatively, the central bank has raised its policy rate by a total of 100bps this year, to mitigate the impact of high inflation brought about by the supply chain disruption as well as a strong US dollar. Malaysia is indeed hooked on subsidies, which have kept the prices of essentials low, compared with the global level. The impact of rising crude oil prices in the first half of the year was mitigated by the large subsidies that the government had maintained to limit the cost of fuel. However, as the need for spending builds up in areas such as upgrading both urban and rural infrastructure as well as investments in talent development, healthcare, new technologies, grants for small and medium enterprises (SMEs) and other priority areas, a relook at the subsidy system is becoming more pressing. In Budget 2023, the previous government had allocated a budget of RM42 billion for subsidy and social assistance, compared with the allocation of RM58.9 billion in Budget 2022. When the budget was tabled in early October, however, the government stated that it had already spent RM77 billion for subsidies and social assistance for the year. Imran adds that the government should also look at improving the targeted fiscal support focused on the vulnerable and hard-hit sectors as the output gap continues to close, followed by gradual fiscal consolidation. “Commitment to fiscal sustainability backed by a medium-term revenue strategy and the Fiscal Responsibility Act is much welcomed. Fiscal policy support should continue to be nimble, with a focus on buttressing the recovery, preventing further scarring and protecting the most vulnerable. “Over the medium term, fiscal consolidation should be growth-friendly and backed by robust governance and anti-corruption measures to support sound public financial management,” he says in a written response to questions from The Edge. For Lee of SERC, subsidies come with a large “opportunity cost” to society, since they reduce the fiscal capacity, as the huge financial resources spent on subsidies divert the budget allocation from other sectors such as education, healthcare, infrastructure and housing. He says, however, that shifting from a universal-access subsidy programme to a targeted one requires a comprehensive and transparent mechanism with clear objectives to identify poor households and deliver benefits. For example, the subsidy could be channelled by social category through targeted cash or near-cash transfers, such as limiting benefits to the poor, children or pensioners, or to households in certain geographical regions. “Coupons can be allocated to allow targeted households to consume a certain ‘lifeline’ amount of subsidised food or fuel products. Social safety nets are more cost-effective and have a much more profound impact than generalised price subsidies,” Lee adds. At the same time, the new government must also engage in a transparent and extensive communication exercise to explain why the country has to shift from product subsidies to targeted households, and how the resources saved from a universal subsidy programme will be redeployed for other priority spending such as investment in infrastructure, funding pensions, providing a better healthcare and education system, or helping combat climate change, says Lee. “A well-handled removal of subsidies replaced by better targeted social spending for poor and vulnerable households, plugging leakages and wastage, and making productive investments can promote sustainable fiscal management and equitable outcomes.” Malaysia is not short of plans for targetted subsidies. The critical factor is a strong political will to execute the plan, as taking away subsidies is bound to be an unpopular measure. This is likely to be a suicidal career move for politicians. Responsible fiscal management also means reforms on the taxation system. Malaysia’s tax revenues have been on a decline, and the pandemic highlighted the need for revenue mobilisation, says Imran. “Policy reforms that increase the efficiency and equity of the tax system without imposing a higher average tax burden should be front-loaded to support the expansionary fiscal stance. Once the recovery is entrenched, tax policy options that can be taken up include reinstatement of the Goods and Services Tax (GST),” he says. According to the Organisation for Economic Cooperation and Development (OECD), the ratio of Malaysia’s tax revenue to its gross domestic product, at 11.4% in 2020, is below the Asia-Pacific average of 19.1%, and OECD average of 33.5%. Malaysia’s ratio is lower than its peers’ such as Thailand’s 16.5%, the Philippines’ 17.8%, China’s 20.1% and Vietnam’s 22.7%. It has also decreased over time, from 14.8% in 2007, with the highest being 16.1% in 2012. Malaysia’s tax revenue is also very much concentrated on corporate income tax, from which the government derived 39% of its tax revenue, followed by 28% from consumption taxes and 24% from personal income tax. These three largest components of tax revenue contributed 91% of the government’s tax revenue in 2020. No one likes taxes, be it the haves or the have-nots. Ironically, the GST was a topic of public contention at the time of GE14. The delay in refunds aggravated the problem and removal of the GST then was the opposition’s promise to voters. Undoubtedly, the new government needs the right tactic to raise taxes to boost the nation’s coffers while retaining its popularity. The new government should also ensure the implementation of the 12th Malaysia Plan (12MP) and focus on boosting labour productivity, enhancing the digital and green economies, and strengthening fiscal governance while promoting inclusive growth and job creation, says Imran. At the same time, the new government should also enhance the business environment, says Lee. Reviving and sustaining both domestic and foreign investment is crucial to driving high levels of private investment to boost economic growth and create better paying jobs, he says. “Domestic SMEs have to be facilitated and given sufficient financial assistance to transform into competitive business enterprises in domestic and international markets,” he adds. To attract investments, the government has to enhance public delivery services and efficiency, reduce regulatory and compliance costs, as well as enhance the competitive tax regime and cost of doing business, says Lee. He adds: “With the geopolitical fragmentation and the strained US-China relations in trade and technology, Malaysia has to enhance its investment climate backed by favourable incentives and policies to attract the reshoring of production bases. “The government has to provide clear strategies for all key economic segments and industries, both vertically and horizontally.” The new government must also address a major issue that has been plaguing many industries in the country, from small eateries to giant plantation groups — the shortage of workers. This is because the shortage of workers, especially foreigners, has stifled the growth of the economy. “The recruitment process and arrivals of foreign workers must be expedited,” says Lee. At the same time, the quality of reskilling and upskilling of local workers as well as training programmes should be prioritised to narrow the skills mismatch in the labour market, he adds. The development programmes must also focus on job creation and skills for youth and promoting an entrepreneurial culture, he says. Lee adds that the new government must also look at productivity-linked wages for employees, enhance technical and vocational education and training (TVET) for future jobs, as well as support investment in skills, lifelong learning and reforming the apprenticeship programme. He advocates for more flexible training, greater investment and innovation in key areas of lifelong learning. Dangling carrots to incentivise locals to take up jobs that have been performed by foreign workers over the past two decades could be a way to address the labour shortage while keeping the jobless rate low. Furthermore, an overhaul of the foreign worker recruitment system is a crucial step towards enabling effective measures that will reduce the nation’s dependency on foreign labour. Realistically, it is impossible to do away with foreign labour. So, it is time for the new government to map out a sustainable plan for the allocation of foreign labour. See also ‘Must-win seats for the main coalitions’ on next page 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/624312 | Palm Oil: Can RSPO remain relevant in the ESG era? | English | This article first appeared in The Edge Malaysia Weekly on June 20, 2022 - June 26, 2022 Joseph D’Cruz, who took up the CEO position at the Roundtable on Sustainable Palm Oil (RSPO) in March, has a handful of challenges ahead of him as he attempts to change the negative perceptions around the commodity. D’Cruz has more two decades of experience in sustainability. Most recently, he was the special adviser for strategic planning and innovation at the United Nations Development Programme in New York. Born and bred in Kuantan, he witnessed how the palm oil sector contributed to the nation’s economy in the 1970s and 1980s. “I understand on a first-hand basis the positive and negative impact [of oil palm cultivation]. We used to see peat fires [in plantations] along the East Coast, south of Pekan, in the late 1980s and early 1990s,” says D’Cruz. “I started to recognise that it’s not a question of sacrificing benefits in order to save the planet. It’s about establishing a way forward that balances these trade-offs in a way that maximises the good for all of us.” It is definitely a big task for D’Cruz. In the past two years, several Malaysian palm oil companies that are RSPO-certified have got into trouble for alleged mistreatment of foreign labour. Palm oil also faced a boycott campaign by non-governmental organisations (NGOs) that accused those companies of deforestation, destroying biodiversity and causing the annual haze due to open burning. In 2019, non-profit organisation Greenpeace published a report titled “Certifying destruction”, criticising RSPO and other certification standards for letting businesses get away with destructive activities due to weak implementation, among other failures. These events lead one to question if certification schemes such as RSPO are still relevant and trustworthy. When asked, D’Cruz says he still believes the RSPO standards to be one of the best globally. One thing that they could improve on is to educate the public on the merits of sustainable palm oil, he suggests. “Unfortunately, the consumer perception is on what they hear about the unregulated palm oil. We need to make a clearer distinction within those two [sustainable and unregulated palm oil] and do a better job at demonstrating that.” The public can submit reports to the RSPO if they believe a member has violated its standards. An independent complaints panel will review the reports and can instruct the companies to respond if further actions are needed, D’Cruz says. For instance, in 2020, the RSPO suspended the certificate of FGV Holdings Bhd for violations in one of its mills, and ceased processing the certification of its other units until the directives set out in its Complaints Panel’s decision from 2018 were fully implemented. The company was banned by the US Customs and Border Protection (CBP) agency in 2020. The RSPO also launched an investigation into Sime Darby Plantation Bhd after the CBP made similar accusations on the company in 2020. However, it noted that the initial review of audit findings on SDP earlier that year did not generate any red flags. The RSPO conducts audits for compliance annually. These audits are facilitated by third-party auditing firms such as Assurance Services International (ASI) and Bureau Veritas. “If any violations are picked up during the course of those audits, those [violations] are immediately reported, and an investigation is launched,” says D’Cruz. Any other appropriate action will also be taken. All ordinary and affiliate members of the RSPO must submit the Annual Communication of Progress (ACOP) to gauge their headway in 100% RSPO-certified sustainable palm oil. “We announce publicly the criteria [for sustainable palm oil] that we’ve agreed on. The principles and criteria were last updated in 2018 and will be reviewed again next year,” says D’Cruz. The 2018 update included a prohibition on any type of deforestation for oil palm plantations. Prior to this, only virgin forest was prohibited. Now, deforestation of secondary and peat forests to make way for plantations is not allowed as well. RSPO members comprise various players in the supply chain, including farmers, manufacturers and NGOs. There are 23 certified growers and at least 50 palm oil processers and traders (all member types) in Malaysia under the RSPO. D’Cruz shares that the RSPO is working on a much clearer and more proactive communication strategy to make the case for sustainable palm oil. “Our independent analysis shows palm oil grown by smallholders in Malaysia and Indonesia who follow the RSPO standards and criteria have demonstrably lower greenhouse gas emissions.” The emphasis, he says, is also on environmental, social and governance (ESG) factors, such as protecting labour rights and prioritising the health and safety of workers and their families. He believes that being part of the RSPO can benefit its members during tough times. Russia’s invasion of Ukraine, for instance, has caused commodity prices to shoot up. The RSPO works with its circle of growers and buyers to ensure that they are able to meet the demand for palm oil. “Being a part of the RSPO actually allows them to communicate and understand where the shortages are and help alleviate them,” says D’Cruz. Conversely, smallholders make up a significant portion of palm oil supply in the Southeast Asian market. The production from smallholders makes up 40% of Malaysia’s palm oil production, according to a 2020 research article by the Yusof Ishak Institute. While smallholders still have varying opinions on sustainability, D’Cruz has personally met a few who are eager to demonstrate that they are able to meet RSPO standards. “Initially, they thought this (complying with RSPO standards) was a burden, but as they accumulated the data, they started to realise that it gave them a much stronger basis to manage their lands. They’ve been telling me how their productivity has gone up,” says D’Cruz. To assist smallholders in onboarding the sustainability journey, the RSPO has introduced the more simplified Independent Smallholders Standard. Additionally, the RSPO dedicates a specific portion of revenues to empower smallholders by conducting training and sponsoring their auditing and certification fees. At a recent forum, Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir expressed his concerns over the ever-changing sustainability international benchmarks that may be difficult to comply with, especially for smallholders. But D’Cruz says it is necessary for sustainability standards to change with the times. “I believe that the process of continuous learning and development is necessary for any standard that believes in sustainability. I believe that is the case for any international standards as well.” He stresses that the RSPO standards are created and approved by the people within the palm oil industry itself. Malaysia has its own palm oil certification scheme called the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme. As at March 31 this year, 97.33% of Malaysia’s oil palm plantations are MSPO-certified, according to the MPOB director-general in April 2022.Could all MSPO members, which include many small- and mid-sized growers, also achieve the RSPO’s standards? D’Cruz is confident it can happen. “Both of these processes are highly complementary, and in fact, I would certainly like to see us working much more closely with the MPOB and the MSPO standard to be able to align with what we do,” adds D’Cruz. 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/672014 | UK's stubborn inflation fails to fall, turning up heat on BOE | English | LONDON (June 21): British inflation defied expectations that it would slow and held at 8.7% in May, data showed on Wednesday (June 21), putting yet more pressure on the Bank of England (BOE) a day before it is forecast to raise interest rates for the 13th time in a row. The latest figures make British inflation the highest of any major advanced economy once again, and a key measure of underlying price growth rose to its highest since 1992, prompting markets to increase their bets on rate rises. Economists polled by Reuters had forecast that the annual consumer price inflation rate would drop to 8.4% in May, moving further away from October's 41-year high of 11.1%. "May's CPI figures ratchet up the pressure on the monetary policy committee to increase Bank Rate substantially further over the coming months," Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said. Sterling briefly jumped against the US dollar and the euro after the figures were released before losing most of its gains. The Office for National Statistics (ONS) said core inflation — a measure which excludes volatile food, energy, alcohol and tobacco prices, and which the BOE views as a good guide to underlying price pressures — unexpectedly rose to 7.1% from 6.8%, its highest since 1992. "The cost of airfares rose by more than a year ago and is at a higher level than usual for May," ONS chief economist Grant Fitzner said. "Rising prices for second-hand cars, live music events and computer games also contributed to inflation remaining high." Food and drink price inflation dropped slightly to 18.3% from April's 19%. The BOE is widely expected to raise interest rates on Thursday (June 22) to 4.75% from 4.5%. After Wednesday's data, markets fully priced in interest rates reaching 6% by December — up from around a 50% chance of such a move on Tuesday (June 20). Paul Dales, chief UK economist at Capital Economics, said the higher-than-expected inflation reading increased the chances of the BOE raising rates by half a percentage point on Thursday. "The problem is that the recent surge in core inflation and the re-acceleration in wage growth shows that domestic inflationary pressures are still strengthening. This suggests the bank may have more work to do than the Fed [Reserve] or ECB [European Central Bank]," Dales said. Britain's high inflation rate is also a problem for Prime Minister Rishi Sunak who has promised to halve the pace of price growth by the end of 2023 before an expected national election in 2024. "We will not hesitate in our resolve to support the Bank of England as it seeks to squeeze inflation out of our economy, while also providing targeted support with the cost of living," finance minister Jeremy Hunt said.
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https://theedgemalaysia.com/node/671267 | Analysts maintain their stance on UMW on better aerospace facility utilisation, new Rolls Royce contracts | English | KUALA LUMPUR (June 15): Analysts have maintained their stance on UMW Holdings Bhd despite a possible turnaround at its unit UMW Aerospace (UMWA) in the current financial year ending Dec 31, 2023 (FY2023) following better utilisation rate and newer contracts, including those awarded by Rolls Royce. MIDF Research has maintained its ‘buy’ call and a target price (TP) of RM5.28 on UMW, based on its FY2023 forecast price-to-earnings ratio of 9.7 times, a 24% discount to historical mean. Hong Leong Investment Bank (HLIB) Research maintained its ‘hold’ call on UMW, with an unchanged TP of RM3.85 based on 10% discount to sum-of-parts valuation of RM4.29. In August 2015, UMW set up UMWA, with an initial investment of RM750 million, for its high value aerospace manufacturing after signing with Rolls Royce to assemble fan cases for Trent 1000 (Boeing 787) and Trent 7000 (Airbus A330) aircraft engines. The facility has an assembling capacity of 250 units per annum. UMWA, a wholly owned subsidiary of UMW, is also investing RM65 million to set up chemical milling and related processes, which will be completed in 2024 and start trial runs for a year, targeting first unit delivery in 2025. HLIB Research analyst Daniel Wong noted that UMWA has secured another 15-year contract worth RM1 billion from Rolls Royce to manufacture rear cases for the Trent 1000 and Trent 7000 aircraft engines, currently imported from North America. Wong said UMWA continues to seek additional contracts to expand its capabilities in line with the government’s commitment in supporting the industry’s growth. “There are still underutilised spaces in the facility to install additional machinery and equipment for new contracts. “Moreover, UMWA is able to secure more land next to the existing facility in UMW Serendah High Value Manufacturing Park when the need arises,” he said. Nevertheless, Wong maintained the research house’s call and TP on UMW as he anticipated a slower FY2024 for the automotive sector but expected stronger machinery and equipment (M&E) and industrial segments to negate the slower automotive sector. MIDF analyst Hafriz Hezry said UMWA’s utilisation rate has improved in line with recovering aircraft globally but did not elaborate. He noted that UMWA’s pre-tax losses had narrowed to RM9 million in FY2022 from RM34 million in FY2021 and is on track to register profits in 2023. “We gather that UMWA has started breaking even in the fourth quarter of 2022 (4Q2022) with further improvement in profitability in the first quarter of 2023 (1Q2023). “Based on Rolls Royce’s rolling three-year plan, UMWA expects to fully utilise its capacity by 2026-2027,” said Hafriz. He said MIDF maintained its call and TP on UMW due to the group being a prime beneficiary of a strong recovery in auto demand, with a market share of approximately 52% via UMW Toyota and Perodua. He also noted that while UMW’s aerospace division makes up a small portion of the group, it is a strategic exposure with room for horizontal and vertical growth from expansion of its manufacturing capabilities and a strong platform as a Tier-1 supplier to Rolls Royce. “Meanwhile, UMW’s net cash position stands at RM796 million with 68 sen per share and 18% of market capitalisation, which underpins higher dividend payout and M&A (merger and acquisition) potential.” At the time of writing, UMW’s share price was up one sen or 0.27% at RM3.72. Its market capitalisation stood at RM4.35 billion. |
https://theedgemalaysia.com/node/632382 | Kenanga upgrades BP Plastics, raises target price to RM1.63 | English | KUALA LUMPUR (August 16): Kenanga Research has upgraded BP Plastics Holding Berhad to Outperform at RM1.28 with a higher target price (TP) of RM1.63 (from RM1.31) and said BP Plastics’ 1HFY22 results met house expectations but beat consensus estimates. In a note on Tuesday (Aug 16), the research house said it rolled forward its valuation base year to FY23F to better reflect its growth potential. “Over the immediate term, its growth will be driven by the commissioning of its tenth cast stretch film line in 4QCY22. “It has also earmarked two coex blown film lines to strengthen the production of food packaging and shipping and logistics packaging film. “Our TP is raised by 24% to RM1.63 (from RM1.31) based on 9x FY23F PER,” it said. |
https://theedgemalaysia.com/node/651644 | Bursa higher at midday as regional bourses advance | English | KUALA LUMPUR (Jan 13): Bursa Malaysia ended the morning session higher on bargain-hunting activities, in tandem with the uptrend in regional stock markets, as investors bought shares mainly in the logistics, energy and technology sectors, according to a dealer. At Friday's (Jan 13) lunch break, the benchmark FBM KLCI had climbed by 3.04 points to 1,491.70, from Thursday's close at 1,488.66. The market bellwether, which opened 0.61 of a point weaker at 1,488.05, moved between 1,488.05 and 1,494.53 throughout the morning session. Meanwhile, market breadth was also positive, with gainers outpacing losers 397 versus 365, while 403 counters were unchanged, 1,037 untraded, and 20 others suspended. Turnover amounted to 2.07 billion units worth RM955.81 million. According to Malacca Securities Sdn Bhd, the optimism on Wall Street overnight, coupled with the higher Brent crude oil price of around US$84 per barrel, could lift the sentiment on the local bourse. "Investors may seek bargain-hunting opportunities within the technology sector, amid the persistent uptrend on Wall Street," it said in a note on Friday. Meanwhile, the brokerage also anticipated interest to continue in tourism and consumer stocks amid a strong rebound in travel demand. “Energy stocks may gain momentum amid firmer crude oil prices,” it said. Among the heavyweights, MISC Bhd added four sen to RM7.29 a share, Dialog Group Bhd increased one sen to RM2.60, Malayan Banking Bhd (Maybank) gained two sen to RM8.82, Public Bank Bhd was flat at RM4.31, while Inari Amertron Bhd shed four sen to RM2.64. As for the actives, Serba Dinamik Holdings Bhd at 2.5 sen and Velesto Energy Bhd at 17.5 sen had climbed 1.5 sen each, NationGate Holdings Bhd gained six sen to RM1.06, Zen Tech International Bhd picked up one sen to 3.5 sen, while AT Systematization Bhd was unchanged at one sen. On the index board, the FBM Emas Index earned 24.75 points to 10,767.51, the FBMT 100 Index advanced 22.57 points to 10,463.65, the FBM Emas Shariah Index inched up 18.26 points to 10,963.11, the FBM 70 Index climbed 34.09 points to 13,375.56, and the FBM ACE Index stronger 7.10 points to 5,435.73. Sector-wise, the Transportation and Logistics Index ticked up 14.52 points to 925.19, the Energy Index perked 6.83 points to 823.10, the Technology Index was up 0.31 of a point to 66.60, the Industrial Products and Services Index expanded 0.75 of a point to 184.56, and the Financial Services Index was 42.93 points higher at 16,580.62. The Plantation Index slid 7.70 points to 6,914.92. |
https://theedgemalaysia.com/node/645865 | S&P downgrades Axiata Group to ‘BBB’ on weaker earnings quality | English | KUALA LUMPUR (Nov 28): Axiata Group Bhd’s earnings quality is set to erode as the merger between its Malaysian operations (Celcom Axiata Bhd.) and that of Telenor ASA (A-/Stable/A-2) nears completion, said S&P Global Ratings. In a statement on Nov 25, the rating agency said that at the same time, Axiata’ss recent spate of acquisitions will push its debt to Ebitda to 2.7x-2.8x in 2023, from 2.2x in 2021. It said that together, these factors result in a weakened credit profile for the Malaysia-based telecommunications operator. S&P Global lowered its long-term issuer credit rating on Axiata to ‘BBB’ from ‘BBB+’. “We also lowered the long-term issue ratings on the company‘s senior unsecured notes and sukuk to ‘BBB‘. “We removed the ratings from CreditWatch, where we had placed them with negative implications on April 22, 2022,” it said. S&P Global said the stable outlook reflects the expectation that Axiata will maintain a broadly stable operating performance and manage its leverage such that its debt-to-Editda ratio will remain between 2x-3x over the next 24 months. The agency said Axiata could maintain a higher leverage tolerance to seize further inorganic growth opportunities, which it has generally leaned more on debt to fund. It said Axiata is seeking to grow its enterprise segment capabilities to capture the growth brought about by digitalisation. Tower subsidiary edotco is also looking to grow its portfolio to 70,000 towers, from over 54,000 currently, it said. “In our view, Axiata’s plans to list edotco eventually or to introduce an equity partner to co-fund the PLDT towers acquisition could ease the leverage pressure. “However, the timing of such plans remains uncertain. The listing plan remains challenging because of edotco’s presence in Myanmar, where significant political uncertainties remain,” it said. |
https://theedgemalaysia.com/node/652714 | Former Meru assemblyman Abd Rani Osman dies | English | SHAH ALAM (Jan 23): Former Meru assemblyman Dr Abd Rani Osman died on Monday (Jan 23), after losing consciousness while on holiday with his family in Carey Island. Selangor PAS secretary Roslan Shahir Mohd Shahir said Abd Rani, 64, died on his way to Banting Hospital at about 5am. "The funeral rite was conducted at Banting Hospital and the remains will be taken to the As-Syarif Mosque in Meru, where another funeral prayer will be held. The remains will be buried at the Meru Muslim Cemetery today," he said when contacted by Bernama. Abd Rani leaves behind a wife, four children and 11 grandchildren. Abd Rani, who studied medicine in Egypt, was Meru assemblyman for two terms from 2008 to 2018. He was Selangor PAS commissioner from 2011 to 2013. Selangor Menteri Besar Datuk Seri Amirudin Shari, through a post on his Twitter, expressed his condolences to Abd Rani's family. |
https://theedgemalaysia.com/node/647190 | 国行：截至11月杪国际储备增2%至1097亿美元 | Mandarin | （吉隆坡7日讯）截至今年11月30日，国家银行的国际储备达1097亿美元（4838亿9000万令吉）。 国行周三发布文告表示：“国际储备足以应付5.3个月进口及1倍短期外债。” 最新的国际储备比截至11月15日的1075亿美元，增加了2.04%，并且自10月14日（1045亿美元）以来一直攀升。 这得益于外汇储备从11月15日的958亿美元，提高至982亿美元。 同时，国行的国际货币基金组织（IMF）储备维持在13亿美元，特别提款权及黄金分别企于55亿美元和21亿美元。 然而，其他储备资产从28亿美元降低至26亿美元。 截至11月30日，国行的总资产高达6061亿7000万令吉，高于11月15日的5982亿6000万令吉。 流通货币企稳于1585亿6000万令吉，之前为1585亿8000万令吉。金融机构存款从1957亿5000万令吉攀升至1967亿令吉，而联邦政府存款从53亿3000万令吉上升至125亿令吉。 （编译：魏素雯） English version：BNM's international reserves up 2% to US$109.7 bil as at Nov 30 |
https://theedgemalaysia.com/node/671501 | China takes next step in currency globalisation, with some Hong Kong stocks priced in yuan | English | SHANGHAI/HONG KONG (June 16): China's gradual internationalisation of its currency will shift to its next leg on Monday (May 19), when about two dozen Chinese companies start trading in their home currency in Hong Kong's stock market. Hong Kong stocks such as Alibaba and Tencent are among the 24 stocks which will be priced and traded in both yuan and the Hong Kong dollar under the dual counter model on the Hong Kong Stock Exchange from Monday. The scheme is targeting overseas investors with yuan holdings initially, but will later include mainland investors via the Hong Kong-China Stock Connect link-up later. Offshore yuan deposits in Hong Kong alone are estimated at some 833 billion yuan (US$117 billion or RM539.89 billion). Fund managers say the step reflects Beijing's desire to expand the use of yuan outside China, and provide another avenue for yuan-denominated investment, thus reducing the risk of capital outflows chasing higher-yielding currencies such as the US dollar. "China is pushing yuan internationalisation to avert geopolitical risks and reduce reliance on the dollar, and for that purpose, you need wider use of the Chinese currency," said Ding Wenjie, a strategist of Global Capital Investment at China Asset Management Co (ChinaAMC). Ding said the scheme is a major milestone, and expects the model to be expanded in future beyond stocks to bonds and even alternative assets, boosting overseas asset pools denominated in yuan. The initiative comes amid a steady stream of bilateral yuan-denominated deals China has struck with trading partners, from Chinese oil purchases in the Middle East to commodities trade with partners from Brazil to Russia. Beijing has retained close ties with Moscow despite the invasion of Ukraine. The US dollar remains the dominant global currency, accounting for 42% of global payments. The yuan's share is just 2.29%, but is up from 1.95% two years ago. A significant breakthrough in China's efforts to promote use of the yuan came this month, when Pakistan paid for its first government-to-government import of discounted Russian crude oil in yuan. "When a currency is internationalised, it's not only used in trade, physical goods, or services. It also has to be parked in investment vehicles," said Dong Chen, the head of Asian macroeconomic research at Pictet Wealth Management. For foreign investors with yuan holdings, "buying shares in Hong Kong without really going into mainland China will be a much, much easier way to park your holdings of this currency", he said. Under the dual counter arrangement, investors can choose to trade a stock either using Hong Kong dollars via the HKD counter, or yuan via the RMB counter, with market makers providing liquidity and minimising price discrepancies. Most of the first batch of stocks eligible for yuan trading — which include AIA Group, Sun Hung Kai Properties and Hang Seng Bank Ltd — are not listed in China. Fund managers expect a lukewarm interest in the yuan counters initially, given near-term risks including a weakening yuan and wobbly stocks as China's economy struggles. But they expect demand to pick up over time. "Mainland investors, including mutual fund companies like us, have genuine incentives to trade Hong Kong stocks in yuan," said Ding of ChinaAMC. "Our fund returns and dividends are priced in yuan, so using the RMB counter can remove foreign exchange costs, and shield us from currency volatility." There are many other reasons to trade in yuan, said David Friedland, the Asia-Pacific managing director of Interactive Brokers, which offers yuan-trading services. "There's lot of political uncertainty these days, so you may want to hold yuan rather than US dollars, or the Hong Kong dollar, which is pegged to the US dollar." |
https://theedgemalaysia.com/node/632789 | High-impact well activity set to rebound this year, says Rystad | English | KUALA LUMPUR (Aug 18): Drilling of high-impact oil and gas prospects is set to rebound this year, after a disappointing 2021, when success rates plunged towards record lows. In a statement on Wednesday (Aug 17), Oslo-based Rystad Energy said these critical wells found hydrocarbons 47% of the time so far this year, up from a measly 28% for 2021. It said with more than four months still to go in 2022, discovered volumes from high-impact wells had nearly quadrupled to over 1.7 billion barrels of oil equivalent (boe), a positive sign for global hydrocarbon supply. A total of 33 high-impact wells are set to be drilled this year, the largest annual number since Rystad started tracking the sector in 2015. The firm said this is only slightly more than last year’s 29 high-impact probes, which only yielded 450 million boe because of the low success rate. Rystad classifies high-impact wells through a combination of factors, including the size of the prospect, whether they would unlock new hydrocarbon resources in frontier areas or emerging basins, and their significance to the operator. The firm said that bucking recent trends, discovered liquids accounted for 1.2 billion boe or almost 70% of the volumes this year, while gas discoveries totalled about 550 million boe. It said that in previous years, gas discoveries vastly outnumbered liquid volumes. This year’s reversal was mainly due to two significant oil offshore discoveries in Namibia — TotalEnergies’ Venus and Shell’s Graff — it said. Rystad senior analyst Taiyab Zain Shariff said last year was disappointing for discovering gas and liquid volumes from high-impact wells, but 2022 is on track to make up for that slump. “If the success rate seen in the first half of 2022 holds for the full year, we could be in for one of the most productive annual volumes on record,” said Shariff. Rystad said of the 33 expected high-impact wells this year, 19 are completed, four are in progress, and 10 are scheduled to be completed before next year. It said more than half of the wells drilled so far in 2022 are considered a “focus for the company”, indicating that more operators are narrowing their geographical range of exploration, and focusing on core regions, instead of frontier areas. It said global oil majors and other exploration and production companies account for more than 60% of the high-impact wells completed this year. Rystad said majors had drilled eight high-impact wells, of which four resulted in commercial discoveries, namely TotalEnergies’ Venus and Shell’s Graff oil discoveries in Namibia, ExxonMobil’s Fangtooth oil find in Guyana, and Eni’s XG-002 gas discovery in the United Arab Emirates. It said more than 45% of wells completed so far in 2022 are in South America and Africa, followed by Australia and Europe, with 16% each of completed wells. By individual country, Australia accounted for the most completed high-impact wells with three, followed by Guyana and Namibia with two wells each. |
https://theedgemalaysia.com/node/603837 | 银河-联昌：疫苗设顶价对发马的盈利没有重大影响 | English | （吉隆坡14日讯）银河-联昌证券指出，发马（Pharmaniaga Bhd）预计，疫苗设顶价的举措不会对其收入产生任何重大影响，因目前向私人界出售的科兴（Sinovac）新冠疫苗平均售价，接近每剂62令吉的新批发顶价。 然而，由于每剂收入减少，银河-联昌将截至12月杪2021和2022财政年的营业额分别下调3和6%，每股核心盈利预测亦分别调低7和12%。 “我们之前曾假设，截至12月杪2021财政年下半年和2022财年向私人界出售的疫苗平均售价较高，约为140令吉，而如今我们调降至每剂62令吉。” “我们维持2021和2022财年分别供应约1400万剂和300万剂疫苗的预测。相比之前的18亿8000万令吉和4亿2100令吉，我们目前预测的疫苗收入贡献分别是17亿3000万令吉和1亿8600万令吉，占总营业额的35%和5%。” 银河-联昌称：“但我们注意到，我们对每剂疫苗的收入和剂量的预测仍不确定，并且可能会在未来进行修订，等待发马的更新。” 政府周四宣布，从1月15日起，向私人界出售的科兴疫苗设顶价，批发顶价为每剂62令吉，零售顶价则为每剂77令吉。 由于盈利调降主要影响2021和2022财年，银河-联昌重申发马的“加码”评级，目标价1令吉不变。 “发马是我们首选的制药股。” 截稿时，该股跌1仙或1.27%，报77.5仙，市值为10亿3000万令吉。 （编译：陈慧珊） English version：CGS-CIMB: No major earnings impact for Pharmaniaga from vaccine ceiling price |
https://theedgemalaysia.com/node/604809 | Government settles KVDT2 dispute out of court, sources say | English | This article first appeared in The Edge Malaysia Weekly on January 24, 2022 - January 30, 2022 AFTER 1½ years, the federal government and Dhaya Maju LTAT Sdn Bhd have settled their dispute over the termination of the contract for the Klang Valley Double Tracking Phase 2 (KVDT2) project out of court, sources say, with the cabinet agreeing in principle for Dhaya Maju LTAT to continue subject to the cost being firmed up. Towards this end, The Edge understands that Prokhas Sdn Bhd, a wholly-owned subsidiary of Minister of Finance Inc, has been given the mandate to determine the cost. The contract value for KVDT2 has already been amended once. “Prokhas has called for bids from several consultants and has selected one consultant after the bidding process. The consultant has one month to come back with the value of the job,” one source says. According to reports, the dispute between the government and Dhaya Maju LTAT arose after Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz released a list of 101 projects worth RM6.61 billion awarded through direct negotiations during the Pakatan Harapan (PH) administration, and these included the KVDT2 project valued at RM4.475 billion that was awarded to Dhaya Maju LTAT. In August 2020, Transport Minister Datuk Seri Wee Ka Siong said the cabinet had decided to reopen the tender for the KVDT2 project after the results of an extensive study and investigation found that the cost was overpriced, sparking a long-running legal fight with Dhaya Maju LTAT since then. Wee quoted a study done by Ministry of Transport-assigned consultant Opus Consultants (M) Sdn Bhd, a subsidiary of Khazanah Nasional Bhd, which concluded that the project’s actual cost was RM3.4 billion based on Dhaya Maju LTAT’s original scope of work. However, Dhaya Maju LTAT claimed that the government had no reason to terminate the contract as it was unaware of the study. In October 2020, Dhaya Maju LTAT filed a suit against the Perikatan Nasional (PN) government, Wee, Keretapi Tanah Melayu Bhd (KTMB) and Opus to stop them from terminating the company’s contract in the KVDT2 project. The company had also filed a judicial review against the government to stop the retendering process, pending the disposal of the lawsuit. It was previously reported that the company had completed 24% of the project and that the government had made progressive payments in excess of RM93 million. In December last year, The Edge, citing sources, reported that the government and Dhaya Maju LTAT were exploring the possibility of a settlement over the court battle regarding the termination of the latter’s contract for the KVDT2 project. In fact, as early as November 2020, Datuk Takiyuddin Hassan, who is minister in the Prime Minister’s Department in charge of law, said in parliament that the government was willing to negotiate an out-of-court settlement with Dhaya Maju LTAT. Dhaya Maju LTAT is an 80:20 joint venture (JV) between privately held construction company Dhaya Maju Infrastructure (Asia) Sdn Bhd and Lembaga Tabung Angkatan Tentera (LTAT). The KVDT2 rehabilitation job scope includes the replacement of the existing 25-year-old tracks, apart from the electrification system and upgrade and maintenance. The project involves two KTMB railway tracks — one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang — measuring a total of 211km. To recap, Dhaya Maju LTAT was first appointed the contractor for the KVDT2 project by the Barisan Nasional government in April 2018, shortly before the 14th General Election. The original contract value was RM5.265 billion. When PH formed the government in 2018, the contract was terminated on the grounds that it was overpriced and was awarded via direct negotiation. Then transport minister Anthony Loke was also reported to have said that the seven-year completion period given to the company was too long. However, the contract was awarded back to the JV but at a lower value 10 months later in July 2019. The value of the new contract was reduced to RM4.475 billion, 15% lower than its original RM5.265 billion contract value. A year later, the PN government terminated the contract. 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/628324 | ESG Glossary: Unpacking climate targets | English | This article first appeared in The Edge Malaysia Weekly on July 18, 2022 - July 24, 2022 Recently, the organisers of the FIFA World Cup 2022 in Qatar were slammed for making carbon-neutral claims about the tournament. Carbon Market Watch, a Belgium-based non-profit organisation, issued a report stating that the calculations for the event’s carbon footprint ignored some major sources of emissions. In addition, the credits being purchased to offset those emissions had a low level of environmental integrity and were unlikely to benefit the climate. This is only one of the many occurrences where organisations are accused of greenwashing. Most of the time, the public believes in these greenwashing claims because of a lack of comprehension of the terms used by these organisations. Here are the definitions for some of the popular ESG terms used by companies: 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/608223 | 郭令灿跻身彭博社全球亿万富豪榜 | Mandarin | （吉隆坡21日讯）丰隆集团（Hong Leong Group）联合创办人丹斯里郭令灿，成为第三位跻身彭博社全球亿万富豪指数的马来西亚人。 截至2月21日，郭令灿以55亿2000万美元（约231亿1000万令吉）的财富排名第496位。 郭令灿是首次上榜，榜上另两名大马富豪是郭鹤年及丹斯里郑鸿标。 郭鹤年的财富一夜之间增加9亿1600万美元，达192亿美元，重新跻身全球富豪榜前100名。 他排名第98位。年初至今，身家增加了1220万美元。 同时，大众银行（Public Bank Bhd）创办人郑鸿标以74亿7000万美元的财富排在第338位，一夜增加2亿3500万美元。年初至今，财富则缩水1630万美元。 尽管特斯拉（Tesla）联合创办人Elon Musk身家缩水501亿美元，至2200亿美元，但仍稳坐榜首。 排名第二的是拥有1770亿美元资产的前世界首富，亚马逊（Amazon）的Jeff Bezos，财富蒸发150亿美元。 彭博社亿万富豪指数每天对世界500位最富有的人进行排名。 这些数字在纽约的每个交易日结束时更新。 （编译：陈慧珊） English version：Quek Leng Chan makes it to Bloomberg Billionaires Index top 500 list |
https://theedgemalaysia.com/node/657723 | Fajarbaru secures RM311 mil construction contract from WCT | English | KUALA LUMPUR (March 3): Fajarbaru Builder Group Bhd has won a RM310.54 million contract via a tender exercise from WCT Holdings Bhd to undertake the main building works for the residential condominium towers located in Mont Kiara, Kuala Lumpur. In a Bursa Malaysia filing, Fajarbaru said its wholly owned unit Fajarbaru Builder Sdn Bhd has accepted a letter of award from Kekal Kirana Sdn Bhd, an indirect subsidiary of WCT. The main building works consist of three blocks of residential condominium towers comprising 341 units, together with four levels of basement car park and three levels of podium facilities. The tenure for the contract is 35 months, commencing from March 15, 2023 and slated for completion on Feb 14, 2026. In a statement on Friday (March 3), Fajarbaru said the contract is expected to contribute positively to the future earnings and net assets per share of the company from the financial year ending June 30, 2023 (FY2023) onwards. After a lull in the construction market, said Fajarbaru group executive chairman Tan Sri Chan Kong Choy, the latest contract win is a good start for the company, while it is also a testament of its ability to secure and execute high value construction projects. “We aim to execute this project as efficiently and well as possible,” he stressed. Chan further said Fajarbaru is on solid financial footing, and thus, it has the ability to continue bidding for more projects. “We look forward to becoming the most valued construction and property company in the markets we serve. We also aim to continue creating shareholder value for our stakeholders,” he added. Fajarbaru shares closed up 0.5 sen or 1.75% to 29 sen, giving it a market capitalisation of RM216 million. |
https://theedgemalaysia.com/node/671027 | PM: Govt to raise living allowance of PSD-sponsored students | English | BANGI (June 13): The government has agreed to raise the living allowance (ESH) of Public Service Department-sponsored students — from preparatory level up to advanced degrees — both locally and abroad. Prime Minister Datuk Seri Anwar Ibrahim said the increase in allowance would be enjoyed by students from July 1. “The government has agreed that students will be receiving an additional RM100 (for PSD-sponsored students in the country). “But spend prudently, do not waste, do not smoke vape. Think of ‘halal’ needs as I help because students are having problems with buying food, and books, so it will be a waste if not used wisely,” he said. He was speaking at a Madani engagement session with PSD-sponsored students at Universiti Kebangsaan Malaysia (UKM), near here. Meanwhile in a statement on Tuesday (June 13), Anwar said the allowance increase involved 15% of ESH for PSD-sponsored overseas students except for first-degree students in the UK whose ESH was raised on Nov 7, 2022. In addition, it involves a RM100 increase in ESH per month for domestic PSD-sponsored students according to their levels of study. "This increase in the ESH rate involves an increase in financial implications amounting to about RM52.03 million for six months starting this July which will benefit 43,595 PSD-sponsored students. "The increase in the ESH rate is one of the government's efforts to deal with the high cost of living, especially for B40 students who live in big cities overseas," he said. The prime minister said this initiative to revise the ESH rate will enable government-sponsored students to focus on achieving academic excellence without dwelling on their financial burden, while also ensuring that government-sponsored offers remain relevant. |
https://theedgemalaysia.com/node/652907 | Bank Negara reappoints four Shariah Advisory Council members, appoints two new members including former Federal Court judge | English | KUALA LUMPUR (Jan 25): Bank Negara Malaysia announced nine members to the Shariah Advisory Council (SAC) with four reappointments and two new members in accordance with Section 53(1) of the Central Bank of Malaysia Act 2009, effective from Jan 1, 2023. In a statement on Wednesday (Jan 25), the four reappointed members include new SAC chairman Professor Dr Asharf Md Hashin from INCEIF University, while Professor Dr Engku Rabiah Adawiah Engku Ali from the International Islamic University Malaysia is appointed as deputy chairman. Other reappointments include ISRA Research Management Centre executive director Datuk Professor Dr Mohamad Akram Laldin and Burhanuddin Lukman, haji advisory committee member from Lembaga Tabung Haji. The two newly appointed members included former Federal Court judge Datuk Seri Mohd Zawawi Salleh and Permodalan Nasional Bhd head of Shariah management Dr Ahmad Basri Ibrahim. BNM added that the reappointments were for a three-year term while the two new appointments were for a two-year term. Three other existing members in the council are Selangor mufti Datuk Dr Anhar Opir, ISRA Research Management Centre director of research quality assurance and publications Dr Marjan Muhamad, and Zainal Abidin & Co (Advocates and Solicitors) founder and senior partner Zainal Abidin Jamal . “The SAC is the highest authority for the ascertainment of Islamic law for purposes of Islamic financial business in Malaysia. It is central in promoting Shariah certainty and sustaining public confidence in the Islamic finance industry,” read the statement. “The SAC also advises the bank on Shariah issues relating to Islamic financial businesses, activities or transactions of the bank. “The rulings of the SAC serve as a reference for Islamic financial institutions in ensuring their business operations comply with Shariah principles. The rulings may also serve as a reference for the courts and arbitrators,” it said. The central bank also expresses its appreciation to former SAC chairman Tan Sri Dr Mohd Daud Bakar — who assumed the position on Dec 27, 2006 — and Datuk A Aziz A Rahim, who was first appointed to the SAC on Nov 1, 2016. “The SAC plays a pivotal role in advancing Malaysia’s Islamic finance aspirations. Over the years, Tan Sri Dr Mohd Daud Bakar and Datuk A Aziz A Rahim made significant contributions in that journey, and I would like to express my deepest thanks for their unwavering commitment and dedication,” said BNM governor Tan Sri Nor Shamsiah Mohd Yunus. |
https://theedgemalaysia.com/node/645266 | HLIB keeps 'buy' on Hibiscus with target price of RM1.56 | English | KUALA LUMPUR (Nov 23): Hong Leong Investment Bank (HLIB) on Wednesday (Nov 23) said it has maintained a "buy" call on Hibiscus Petroleum Bhd at a target price of RM1.56 after the oil and gas (O&G) company’s quarterly results came in within house expectations. Hibiscus’ net profit more than tripled to RM135.26 million for the first financial quarter ended Sept 30, 2022 (1QFY2023), from RM41.52 million a year ago, on the back of elevated O&G prices. In a research note, HLIB said Hibiscus’ core net profit dipped 47% quarter-on-quarter due to significantly lower offtake volume throughout the quarter of 1.5 million barrels of oil equivalent (boe) in 1QFY2023 (versus two million boe in 4QFY2022) and lower average realised crude oil price across all of its major assets throughout the quarter. “We deem the results to be within expectations at 25% of both ours and consensus full-year estimates respectively,” said HLIB analyst Jeremy Yap. The research firm estimates Hibiscus to rake in some RM541 million in earnings for FY2023. Net profit grew three times year-on-year (y-o-y) due to recognition of Fortuna International Petroleum Corp assets’ sales volume in 1QFY2023 including Kinabalu Oil and PM3CAA, in addition to significantly higher realised crude oil prices y-o-y across major assets. Yap said the target price is based on NPV of all its producing assets’ future free cash flows, after accounting for each asset’s targeted lifespan. “At about only four times FY2024 forecasted P/E, we believe that Hibiscus is a compelling case and is conspicuously undervalued given its strong foothold in the upstream energy space,” he added. Additionally, Yap also mentioned several key takeaways on Hibiscus, namely the successful replacement of the Anasuria asset at end-September 2022 and Hibiscus’s target of total offtake volume of 7.2 million to 7.5 million boe for FY2023. “Realised gas prices in the PM3CAA asset dipped 28% to US$5.78/mscf,” said Yap. “The group has guided for slightly lower gas prices over the next few months because of a huge influx of supply post-embargo of Russian refined products (high sulphur fuel oil) in the Asian market.” Furthermore, Yap said that the group’s offtake volume schedule for the next two quarters was 2.1 million boe and 1.8 million boe for 2QFY2023-3QFY2023, while maintaining on track to sell approximately 7.2 million to 7.5 million boe in FY2023, as compared to RM4.6 million in FY2022. “We highlight that the group is currently in discussion with Petronas and PetroVietnam to extend the recently acquired PM3CAA’s producing licence by another 10 years, until 2037,” added Yap. “If approved, Hibiscus aims to drill more wells for the asset in 2024-2025. We gather that the minimum project IRR for Hibiscus to take on this extension and additional capex stands at 15%.” Yap said Hibiscus expected oil for the Teal West asset to be at mid calendar year 2024 (CY2024) and Waterflood Phase 2 to be at 2HCY2024. In the morning market, Hibiscus' share price increased two sen or 2.51% to RM1.02, with a market capitalisation at RM2.05 billion. |
https://theedgemalaysia.com/node/676104 | Ex-PM Thaksin plans return to Thailand as post-poll deadlock drags on | English | BANGKOK (July 24): Former Thai prime minister Thaksin Shinawatra plans to return on Aug 10, his daughter said on Wednesday (July 26), coming home from self-exile to a country struggling to overcome a political deadlock after a May general election won by opponents of military rule. Former telecoms tycoon Thaksin spent years trying to resist military interference in governments led by his populist party and was eventually ousted in a 2006 coup. He left the country two years later to avoid corruption convictions that he said were politically motivated. "Dad is returning on 10 August," Thaksin's youngest daughter, Paetongtarn Shinawatra, said in a social media post. Paetongtarn is a senior member of the Pheu Thai party, the latest incarnation of a party founded by and loyal to Thaksin, which came second in the May election to the progressive Move Forward Party. The two election-winning parties have together been trying to form a government with six like-minded partners but have been stymied by opposition from the military-appointed upper house Senate and conservative opponents. Thaksin, prime minister from 2001 until his ousting in 2006, has lived in self-imposed exile since 2008. He faces up to 10 years in jail for his convictions. The 74-year-old would be subject to the judicial process upon his return, deputy national police chief Surachate Hakparn said. "The police will conduct their duties normally when the plane lands. He will have to go to court and listen to what they decide," Surachate told Reuters. A Pheu Thai official declined to comment on Thaksin's return, saying the party was not involved. Thaksin has vowed to come back before only to change his mind. In a message to supporters, Thaksin made no mention of any personal political ambitions but said he wanted to thank them for backing Pheu Thai. "The economy will vastly improve under a Pheu Thai government," he said. A prime minister has to be voted in by a joint sitting of the two houses of parliament, according to a constitution drafted under military rule, a system that critics say gives the military-appointed Senate the power to block parties that win the most seats from forming a government. Pita Limjaroenrat, the leader of the liberal Move Forward party, which won the most seats in May with the backing of young voters, has been blocked from becoming prime minister largely because of his party's aim to amend a law that punishes insulting the monarchy with up to 15 years in jail. Critics say the law has been used by conservative forces to stifle dissent. With Move Forward stalled, the second-placed Pheu Thai is attempting to gather support in parliament to get one of its candidates elected prime minister. Some analysts suspect that it will have to strike a deal with its old pro-military rivals to achieve that. Thitinan Pongsudhirak, a professor of political science at Chulalongkorn University, said Thaksin's return was a likely sign that Pheu Thai had found a way to form the next government but it may have to severe ties with Move Forward to do that. "Pheu Thai is going for broke," Thitinan said. "They will join the government and isolate Move Forward and part of the deal is to bring Thaksin back." A Move Forward official said Thaksin's return was a "private matter" and unrelated to the formation of a government. A vote in parliament to select a prime minister was postponed this week to give a court time to review a petition over a decision to block Pita's candidature for the top job. The house speaker, Wan Muhamad Noor Matha, told reporters he was hopeful that the Constitutional Court would act with urgency to deal with the appeal and clear the way for a vote for prime minister. |
https://theedgemalaysia.com/node/647498 | How to capitalize on trending sectors in 2023 | English | With a looming recession, many are more conservative when it comes to investing their money in the financial market. However, the nature of the financial market is that - there is always a sector that is performing better than the rest, even in a bear market. In this article, we are going to look at ETFs that represent the sector performance. Exchange Traded Funds (ETFs) are funds that invest according to the index of the industries. Technology ETF (XLK) for example invests according to the composition of the Technology sector in the S&P 500. When you invest in a sector ETF, you are (1) naturally diversified - as you will be less affected by the performance of a single entity within the ETF. You are exposed to a basket of entities in the same sector instead. (2) It also takes away the research work from you. You spend less time researching each individual stock or entity.. This is why Investing in ETFs is the No Frills way for working professionals to get involved in the stock market, as compared to managing a portfolio of stocks yourself. In 2022, for example (chart below) safe haven assets and defensive stock sectors like Utilities (represented by the symbol: XLU), Healthcare (XLV), Consumer staples (XLP) and Gold (GLD) have been performing relatively better compared to the overall US market (SPY). And, the Energy sector (XLE) has rallied over 50% YTD because of the war. So, which sector can we focus on in the coming year given a looming recession? To answer that question, let’s visit the Sam Stovall’s Sector Rotation model This model suggests the expected outperformance of certain sectors as we flow through the various phases of economic cycles. The idea is that the stock market follows this pattern as well - not forgetting that the stock market reacts 6 - 9 months earlier than the economy, hence seeing a bear market (orange chart) in an Early Recession - which is where we are currently at. Of course, it doesn't always follow the pattern, as there are way too many variables in play. The last few years are great examples of that - where we had a pandemic and a war. Hence some of the sectors like Energy, Healthcare and Consumer Staples are still outperforming the overall market at the moment, despite being in Early Recession Due to the risk of recession next year, the more resilient ETFs would still be Healthcare (XLV), Consumer staples (XLP) and Utilities (XLU). However, if the central bank slows down interest rate hike after reaching about 5.0% to 5.5%, then Technology and high growth stocks are likely to recover. At that time, Nasdaq (QQQ), Technology (XLK) or Semiconductor (SMH) are some of the ETFs that may outperform based on the sector rotation model. The central bank action is highly dependent on the inflation trend, so it is important to monitor the inflation changes as a precursor to sector rotation. While an experienced trader or investor will still be able to find opportunities within a specific sector, a casual investor or trader who does not want to spend too much time in monitoring the individual performance of a stock, commodity or currency - can still capitalize on the better performing sector with ETFs. Certainly, one will need to spend some time to learn and decide on which ones to invest in, as there are thousands of combinations of ETFs out there in the US market to choose from apart from the major ones mentioned above. Learn how you can get started in investing in ETFs with Beyond Insights’ Investing with ETF Made Simple course >> https://beyondinsights.info/etfs |
https://theedgemalaysia.com/node/635740 | RHB: Possible overhang for construction sector as GE15 looms | English | KUALA LUMPUR (Sept 9): There is a possible overhang for the construction sector amid the looming 15th general election (GE15), said RHB Research. “De-risking activity could intensify as we approach closer to the upcoming general election with market talk suggesting that GE15 could happen as early as 4Q22 (fourth quarter of 2022) after the tabling of the 2023 budget was brought forward to Oct 7 (from Oct 28). “Nevertheless, re-rating catalysts for the sector could arise after GE15. Assuming no substantial changes in policies take place post GE15, such [a] situation could bode well for ongoing and future project implementation,” the research house said in a note on Friday (Sept 9). It noted that a negative outcome would be a hung Parliament, which could fuel uncertainty for the sector’s prospects. “We like names from the small and mid-cap construction space such as Kerjaya Prospek Group Bhd and Sunway Construction Group Bhd. Overall, we believe they have supportive catalysts, backed by stable orderbook replenishment rates, and robust balance sheets,” it added. On the other hand, RHB said a pre-election pump priming theme could materialise but may be skewed more towards smaller scale contractors. It said the government’s limited fiscal headroom is evident from the ratio of government debt to gross domestic product of 63.8% at the end of June 2022, compared with 63.4% at the end of December 2021. Large-scale projects could still be announced but would need private funding arrangements, said RHB. “However, the risk of low private sector construction participation could increase if contractors, with previously strong balance sheets, could no longer accommodate such funding requirements if they take up more projects further down the road,” it said. |
https://theedgemalaysia.com/node/668076 | MAHB sees departure of three board members | English | KUALA LUMPUR (May 22): Three of Malaysia Airports Holdings Bhd's (MAHB) directors have stepped down from the airport operator's board effective immediately. In a filing with Bursa Malaysia on Monday (May 22), MAHB said Tan Sri Mohamad Salim Fateh Din, 65, has resigned as independent non-executive director of the group. He will also cease to be the chairman of board finance and investment committee and member of board procurement committee. Mohamad Salim had joined the board on July 25, 2022. He is the executive vice-chairman of Malaysian Resources Corp Bhd and the group managing director of Gapurna Sdn Bhd. At the same time, Datuk Azailiza Mohd Ahad, 62, is resigning as senior independent non-executive director of the group. She will also cease to be the chairman of board nomination and remuneration committee, and member of both the board audit committee and the board finance and investment committee. Azailiza was appointed to the board on Nov 8, 2016. She is also a partner with Messrs Gani Patail Chambers, a board member of KLIA Aeropolis Sdn Bhd and chairman of an independent whistleblowing committee of MAHB. Datuk Johan Mahmood Merican, 50, is also stepping down as non-independent non-executive director of MAHB as he has assumed a new position in the Malaysian civil service, said MAHB. He will cease to be a member of the board procurement committee. Johan had joined the board on June 29, 2022, as a nominee of Minister of Finance (Incorporated). Johan is currently the secretary general of the Treasury, Ministry of Finance, a position he had held since February. Their departure leaves MAHB with seven directors on the board, comprising its non-executive chairman Tan Sri Datuk Zainun Ali, managing director Datuk Iskandar Mizal Mahmood, two non-independent non-executive directors — Wong Shu Hsien and Rohaya Mohammad Yusof — and three independent non-executive directors namely Datuk Mohamad Husin, Ramanathan Sathiamutty and Cheryl Khor Hui Peng. MAHB shares closed up one sen or 0.13% at RM7.44 on Monday, giving it a market capitalisation of RM12.34 billion. |
https://theedgemalaysia.com/node/638006 | Four former police officers are on Caely’s board, including executive chairman | English | KUALA LUMPUR (Sept 27): After seven directors were removed last month, Caely Holdings Bhd — a lingerie maker that has been embroiled in shareholder fights and probes by Malaysian Anti-Corruption Commission (MACC) for past five months — appointed two more former police officers to the board. Caely announced the appointment of Chong Seng Ming, 61, and Datuk Mior Faridalathrash Wahid, 60, as the company’s independent and non-executive directors. Both have more than 40 years of experience as police officers with backgrounds in law, according to the company’s filing with Bursa Malaysia. Meanwhile, Ng Keok Chai, who served 36 years in the Royal Malaysian Police, is the company’s executive chairman. The company clarified that the appointment was made on Aug 29, instead of Sept 29 as stated in the earlier filing dated Sept 2. “He (Ng) specialises in criminal investigations across various fields which include commercial crime, general crime and forensic accounting, with ample management and special operations experience,” Caely said in the bourse filing. Together with Datuk Kang Chez Chiang, there are now four former police officers sitting on Caely’s board. Kang had served the police force for 39 years and six months. The Teluk Intan-based lingerie maker has also appointed a former auditor, Kenny Khow Chuan Wah. In a separate bourse filing, Caely said 47-year old Khow has more than 13 years of experience as an auditor with PricewaterhouseCoopers (PwC) Malaysia, including two years of secondment at PwC London. The other directors who joined recently are Leong Seng Wui and Krishnan Dorairaju. Interestingly, three board members of Caely, namely Ng, Khow and Leong, are also the directors of Green Packet. Meanwhile, its two directors, Ng and Kang, are on the board of glovemaker Hong Seng Consolidated Bhd, which coincidentally Khow had stepped down from the post of executive director in March this year. Ng and Khow are the directors of CSH Alliance Bhd (formerly known as KTG Bhd). Khow holds directorship in MMAG Holdings Bhd as well. Ng, 63, is currently sitting on the board of Ingenieur Gudang Bhd (former Dynaciate Group Bhd). Leong, an executive director, is indeed among the 12 defendants in the lawsuit that Caely filed last month to recover alleged misappropriated funds amounting to RM30.55 million. Other defendants include Kok Kwang Lim, Valhalla Capital Sdn Bhd, Datuk Seri Goh Choon Kim — who is the single largest shareholder, holding a 21.05% stake; plus the group’s former managing director Datuk Chuah Chin Lai and his wife Datin Fong Nyok Yoon, and six others. Fong, the founder of Caely, quit as non-executive director last month. She holds a 7.38% stake. Caely’s statement of claim indicated that these 12 defendants collectively own 50.01% shareholding. Caely, together with its wholly-owned subsidiary Caely (M) Sdn Bhd (CMSB), also sought exemplary damages from Chuah and Fong for alleged breach of fiduciary duty during their tenure as directors in both companies. It sued the 10 other defendants for their conspiracy with Chuah and Fong to cover up the misappropriation and breach of fiduciary duty. However, the seven directors who initiated the lawsuits have been removed. It is not known whether the new board members will pursue the case, moving forward. To recap, the seven directors were ousted as the High Court last month ruled that the resolutions to remove the board members were passed at the EGM. Koo Chen Yeng, the daughter of the second largest shareholder Datuk Seri Tee Yam @ Koo Tee Yam, is among the directors that have been ousted. Tee Yam holds a 19.12% stake in Caely. |
https://theedgemalaysia.com/node/603395 | Tony Fernandes: International travel will soon bounce back despite Omicron threat | English | KUALA LUMPUR (Jan 11): AirAsia Group Bhd, which has been battered by the Covid-19 pandemic, is expecting international travel to recover soon despite the emergence and spread of the Omicron variant, its chief executive officer Tan Sri Tony Fernandes said, attributing his optimism to an increase in flight activities and robust travel demand. “I do believe that we’re at the beginning of the end ... the good thing is, this time last year, we had no planes flying. Now, we’ve got a large chunk of our fleet flying domestic Malaysia, Thailand and Indonesia. The demand has been very, very robust,” he told US news outlet CNBC’s Squawk Box Asia on Monday (Jan 10). While some countries including Thailand and India have reimposed restrictions on some arrivals because the Omicron variant has fuelled caseloads of infections, Fernandes expects international travel to revert to pre-Covid-19 levels about six months after borders reopen, hopefully in March, he said. On China’s Covid-zero policy, Fernandes said the country continues to be a “big question” in terms of reopening. As for AirAsia’s ride-hailing business, Fernandes commended the performance of the new business venture, which was launched in August last year, for doing “incredibly well” and having “far exceeded” expectations. He attributed this to deploying the same strategy when the company entered the low-cost airline market many years ago, now for its ride-hailing service business — high efficiency that results in lower prices for consumers. Being a late entrant, airasia ride could observe what models were successful, and did not have to spend a lot of money on research, development or technology, said Fernandes, who is upbeat about its prospects. “There’s a huge, huge upside. The market is still very, very underpenetrated,” he observed. AirAsia closed one sen or 1.28% lower at 77 sen on Tuesday, translating into a market capitalisation of RM3 billion. |
https://theedgemalaysia.com/node/654602 | Agritech: Farming durians the smart way | English | This article first appeared in Digital Edge, The Edge Malaysia Weekly on February 13, 2023 - February 19, 2023 With the advent of the Fourth Industrial Revolution (IR4.0), technologies such as automation, artificial intelligence, data analytics, the Internet of Things (IoT) and cloud computing have been deployed in the agriculture sector in a bid to boost yields, optimise the use of resources and reduce dependence on labour. These same technologies are also being deployed to boost the output of the king of fruit and help mitigate the effects of climate change on its yields. Mark Chin, founder and CEO of ORESCO Plantation Sdn Bhd, which manages 350 acres of durian plantations in the country, says durian farming has traditionally relied on the farmers’ experience and knowledge, which can make the process slow and challenging. The use of smart farming applications, Chin says, can help farmers and plantation companies like ORESCO better understand farming factors such as wind, water, soil and topography types. “Smart farming solutions can help forecast yield, reduce costs, lessen wastage of resources and assess risks in durian cultivation,” he says, adding that forecasting and planning are essential in the farming of durians. “Information such as weather conditions lets us plan and prepare in advance. We can also forecast or predict if there is over fruiting, which could affect the durian market price and cause a price fall, so we can plan and channel the supply to other areas to avoid a market glut.” The global durian market is worth about US$20 billion (RM85.31 billion) a year, and most of the supply is from Thailand, according to Chin. A late starter to global durian production, Malaysia only supplies about 4% of global demand, exporting RM145 million in 2020. In November last year, ORESCO, which is a black thorn durian plantation expert, entered into a collaboration agreement with the University of Malaya, iRADAR Sdn Bhd and Koperasi Durian Malaysia Bhd to bolster the growth and cultivation of black thorn durians in the country. Ir Dr Koo VoonChet, CEO of iRADAR, says durian farmers are giving the thumbs up to smart farming solutions like iRadar’s GoTani as these offer precise and real-time data that allow farmers to act quickly to improve their yields or to save costs. “Deploying the technology makes farming more cost-effective and sustainable. The technology gathers more accurate data and information, which allows decisions to be made with less guesswork.” Koo concedes that it was initially difficult to convince farmers to use its smart farming platform. “We started by offering drone mapping services to farms, and progressively we introduced the IoT monitoring system and later the entire GoTani solution. Now more farmers are aware of the technology and the benefits of implementing smart farming solutions,” he adds. For ORESCO, which uses the smart farming solution in the durian plantations it manages, the impact has been significant. “It helps in monitoring the crops from various aspects, such as soil conditions, weather and environment. It optimises inputs and reduces costs. For example, the smart irrigation system significantly improves water efficiency and reduces waste and overwatering. During the year-end monsoon season with constant heavy rainfall, for example, the system captures the contours of the terrain to help us find the best routes to divert the heavy flow of water to the nearby rivers,” says Chin. “It also enables early detection of issues related to tree health and enables faster response to threats. Using drones, for example, we can monitor and analyse the tree’s health and growth rather than depend on manual inspection, which is tedious and time-consuming. “The system can trace any deformity or pest attack on each tree and, with early detection, the injuries or flaws can be rescued and healed. This technology is also able to do yield prediction and yield calculation for each tree based on the number of flowers the tree produces, the prediction accuracy is at least 80% and above. “Each tree’s health history is collected and recorded then archived throughout the years. With this, the history of each tree is traceable with ease without depending on labour to manually collect and record data. Furthermore, all these data will be referred to and analysed to further enhance tree growth for better quality and higher fruit yields. “Smart farming also has IoT stations that have multiple sensors, which include soil sensors to detect soil moisture, pH and NPK (nitrogen, phosphorus, and potassium), as well as wind, temperature and rainfall volume sensors, which are all crucial in durian cultivation.” Apart from high-tech methods to monitor and facilitate the farming process, research is also underway to profile the nutrient requirements of durian trees, says Dr Purabi Mazumdar, senior lecturer at the Centre for Research in Biotechnology for Agriculture, University of Malaya. “Proper nutrient supply can make fruit yield much more consistent, with better shape and aroma,” says Mazumdar. To spur the cultivation of black thorn durians, which are said to cost 40% more than the musang king variety, ORESCO also recently launched the D’Harvest Growers joint venture scheme. Through the programme, prospective investors can own a slice of the 100-acre black thorn durian plantation in Titi Jelebu, Negeri Sembilan, which will be managed by ORESCO. According to Chin, although there are currently about 600,000 musang king trees in Malaysia, there are fewer than 6,000 black thorn trees, and 99% of what is produced is consumed locally. “So, there isn’t enough for the export market,” he says, adding that this makes the black thorn a timely and profitable variety to grow. By joining the D’Harvest Growers project, durian aficionados can get their hands on a consistent supply of this exclusive variety of durian. “We have gained interest from people in Singapore, Japan, China and even Vietnam. Currently 30% of our investors are from Singapore alone, and another 10% are likely to ink the deal by December,” says Chin, adding that the project is “gaining popularity, especially among foreigners who absolutely love durian and would want to own durian orchards for an endless supply”. 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/659418 | 顶级手套次季蒙亏 为第三次季度亏损 | English | （吉隆坡16日讯）顶级手套（Top Glove Corp Bhd）在截至今年2月28日第二季（2023财年第二季）蒙受第三次季度亏损，主要是现有库存过剩和平均售价持续放缓，再加上生产成本上升，影响了业绩。 这家全球最大手套制造商向大马交易所报备，次季净亏1亿6467万令吉，或每股2.06仙，上财年同期则净赚8755万令吉，或每股1.09仙。 次季营业额从14亿8000万令吉，减逾半至6亿1800万令吉。 与2023财年首季的1亿6824万令吉相比，亏损略收窄。 惨淡的季度业绩，拖累该集团2023财年首半年由盈转亏，净亏3亿3290万令吉，一年前则录得2亿7327万令吉的净利；半年营业额由30亿9000万令吉，大跌58.2%至12亿5000万令吉。 顶级手套在文告中指出，集团财务表现依然备受手套领域不利因素的影响而承受重压。 “基于库存过剩，客户为继续耗尽库存而导致订单放缓。手套持续供过于求的现象亦对目前情势雪上加霜，制造商较低的使用率导致产品供货时间缩短，使客户欠缺下达订单的紧迫性。” “同时，在处于平均销售价放缓的情况下，集团无法将不断提升的成本转嫁于客户，亦使财务业绩表现略微减缓。” 但该集团称客户现有库存趋向正常水平。 “惟当销量再次回升，由于销售价格较低，并非所有收到的订单都可行。手套业面临成本上升所造成的亏损，因此其于2023年2月起已逐步上调销售价格，而此举乃迈向领域复苏和永续发展的必要步骤。” 顶级手套董事经理林将源表示，2023年的商业环境将持续充满挑战及竞争。但该集团着眼于领域的长远前景，并依然看好。 “手套业经历了极具挑战的一年。随着手套供需逐渐取得平衡，加上平均售价及成本的上涨，此季所呈现的财务业绩并不符集团或领域该有的表现。然而，这属于集团在经历为期两年因疫情致使的手套需求高峰期后，无可避免的一个短暂阶段。” “为缓解种种不利因素所造成的影响，我们持续采取效率提升及现金节约的举措，旨在推动复苏、强化基础，并调涨平均售价以抵消不断上升的成本。” 他指出：“我们不抱不切实际的观点，并深知市场将于近期内达至平衡。尽管如此，我们坚信手套业将于适当的时期复苏，因其基础仍然强劲且保持稳定。” “随着时间的推移，我们坚信集团的业绩能更好地反映手套业该有的表现。” 休市时，顶级手套上升2仙或2.86%，挂72仙，市值达59亿1000万令吉。今年来，该股从1月3日的87仙，下跌了21%。 （编译：魏素雯 & 陈慧珊） English version：Top Glove posts third quarterly loss as headwinds persist |
https://theedgemalaysia.com/node/618267 | 国行将数字银行牌照颁给5大财团 | Mandarin | （吉隆坡29日讯）国家银行宣布，财政部批准了5个财团的数字银行牌照申请。 以下申请人将根据2013年金融服务法令（FSA）获得牌照： 以下申请人将根据2013年伊斯兰金融服务法令（IFSA）获得牌照： 国行周五发布文告表示，在这5个财团当中，其中3个主要由大马人持有，包括Boost Holdings与兴业银行、Sea与YTL Digital Capital以及KAF投资银行。 （编译：魏素雯） English version：BNM awards digital banking licences to RHB-Boost, GXS Bank-Kuok Brothers, YTL-SEA, AEON Credit, KAF Consortium |
https://theedgemalaysia.com/node/620063 | Cover Story: RM26 bil lost from top telco stocks reflects profit pain, 5G uncertainties | English | This article first appeared in The Edge Malaysia Weekly on May 16, 2022 - May 22, 2022 GENEROUS dividend-paying, blue-chip telecoms stocks are underperforming the bellwether FBM KLCI by a wide margin and have collectively lost some RM26 billion in market value year to date (YTD). During this period, the entire market collectively lost about RM22 billion from RM1.75 trillion at the start of the year (Malayan Banking Bhd, Public Bank Bhd, Petronas Chemicals Group Bhd and Hong Leong Bank Bhd collectively gained RM29.5 billion). And the two worst-performing stocks among the four largest listed telcos are Maxis Bhd and Digi.Com Bhd, which paid their shareholders nearly all the profits earned for FY2021 and are among the handful of counters that pay dividends every quarter. In fact, not only did Maxis maintain its dividend payout at RM1.33 billion or 17 sen per share for FY2021 — the same as FY2020, despite net profit coming in 5% lower year on year largely due to higher depreciation — it actually paid slightly more than 100% of earnings last year and continued to do so in the first quarter of 2022 (1Q2022). The dividend of five sen per share that Maxis declared for 1Q2022, which came up to about RM391 million, was a 131% payout — trumping its net profit of RM298 million (3.8 sen per share) for the quarter that reflects a higher tax rate due to the one-time 33% Cukai Makmur prosperity tax on chargeable income above RM100 million for the assessment year 2022 (instead of 24% corporate tax) announced in Budget 2022. Maxis also paid more than 100% of net profit in declaring a dividend of five sen per share for 4Q2021, when earnings per share was 3.7 sen. While Maxis’ five sen dividend per share for 4Q2020 was also more than what it earned that quarter, the RM1.33 billion (17 sen per share) it paid for FY2020 was less than 100% of its RM1.38 billion profit (17.7 sen per share) for that year. Closing at RM3.81 — which gave it a market capitalisation of RM28.9 billion — on May 10, Maxis had lost over RM9 billion in value as its shares have fallen over 21% YTD — underperforming the FBM KLCI’s -0.83% and FBM EMAS’ -1.75%. Total return was -20.5% YTD, compared with the FBM KLCI’s 0.82% and FBM Emas’ -0.33%, Bloomberg data shows at the time of writing. Digi.Com — which paid out RM1.16 billion (14.9 sen per share) or more than 99.5% of its RM1.17 billion earnings (14.95 per share) as dividends in FY2021 — saw its shares fall some 18% or close to RM7 billion in value year to date. Closing at RM3.57 to reflect a market capitalisation of RM26.9 billion on May 10, total return YTD was -17.3%, according to Bloomberg data. That’s slightly ahead of the 17% YTD share price decline seen for Axiata Group Bhd, whose Malaysian mobile unit, Celcom, is awaiting regulatory approvals to merge with Norwegian Telenor ASA’s 49%-owned Digi.Com. Closing at RM3.45 on May 10, Axiata too had lost about RM7.3 billion in value YTD, giving it a market cap of RM30.8 billion at the time of writing, with total return at -15.9% YTD. Even Telekom Malaysia Bhd (TM), the best performing among the four largest Bursa Malaysia-listed telcos, has lost RM2.6 billion in value as its shares slipped 9.45% YTD to close at RM4.98 on May 10, giving it a market capitalisation of RM18.1 billion. Total return for TM, which pays dividends twice a year, was -8.3% YTD, Bloomberg data show. Analysts’ target prices range from JP Morgan’s RM3.60 to Macquarie’s RM7.70, averaging at RM4.98 at the time of writing. There are 20 “buy” recommendations, versus two “hold” and three “sell” calls. Time dotCom Bhd — which does not have mobile phone operations but has fibre broadband customers and serves the enterprise market — saw its shares ease only 2% YTD to close at RM4.48 on May 10, giving it a market capitalisation of RM8.2 billion. Persistent uncertainties over 5G and how it would change industry dynamics do not help. Investors who subscribe to the “sell first, ask questions later” mantra probably contributed to the massive decline in stock price that began last year. While the government had on March 16 this year decided to go ahead with a single wholesale network (SWN) model to accelerate the rollout of 5G in Malaysia, its decision to cede up to a 70% stake in Digital Nasional Bhd (DNB) also raised new questions over what was previously a clear-cut change in industry structure and decision-making process when DNB was set up in March last year. Even though the government said negotiations on ownership, equity value and other aspects of the proposed 70% equity participation in DNB by telcos are targeted to be concluded by end-June, it remains to be seen if meaningful progress can be made and publicly disclosed in the next seven weeks. Indications are that little progress had been made since April 8, when the four mobile network operators (MNOs) that had previously lobbied to jointly own a second 5G wholesale network — Celcom Axiata Bhd, Digi Telecommunications Bhd, Maxis Bhd and U Mobile Sdn Bhd — issued a joint statement to say that they “remain in discussions” with DNB and the Malaysian Communications and Multimedia Commission but have yet to agree on key terms of the recently published reference pricing offer or RAO. The latter, they say, is a key step before discussions on commercial access agreements can commence. It was because of the lobby that the government — which had initially planned to keep 100% equity in DNB until 5G network infrastructure rollout reached 80% in 2024 — decided to cede 70% stake to the MNOs earlier, in the name of public-private partnership in the 5G rollout. It is also not immediately certain if the government — which affirmed that DNB will continue to be run on a “cost-recovery” and “supply-led” model — will continue to have the final say in the speed and quality of rollout with its minority 30% stake in DNB plus a golden share. It is also not immediately certain whether the 70% stake will be split equally among all mobile network operators (MNOs) who sign up for access and commit to taking up 5G wholesale capacity from DNB, and if DNB will continue to be managed independently from the telcos without being swayed by the profit-leaning collective 70%. What is clear is that telcos will naturally continue to fight to pay less money to DNB upfront as well as for 5G wholesale access to protect their earnings, which, in turn, affects their ability to pay dividends to shareholders and their share price performance. The larger impact on earnings from 5G wholesale payments to DNB is expected to start next year, given that DNB is giving free access to its network at least until end-June and network rollout is only targeted to reach about 40% by year end, before expanding to 70% by end-2023, 80% by end-2024 and 90% by 2027. While there will be savings from network sharing, the fact that DNB was created to fulfil the government’s desire to accelerate 5G rollout and expand coverage on a “supply-led” basis, to reach even areas that telcos would likely not roll out 5G on their own until there is more certainty of take-up, means there will be additional cost that will shave off some of the savings from network sharing. DNB previously said there would be a minimum that all MNOs will have to commit to paying as the network coverage is built, including for areas that telcos may not be able to immediately monetise. Beyond this basic commitment, MNOs that use more will be charged for additional capacity. The size of this minimum commitment from each of the MNOs is likely to be among the largest hurdles to getting buy-in from the four larger mobile operators — Celcom, Digi.Com, Maxis and U Mobile — which have yet to join Telekom Malaysia Bhd and YTL Communications Sdn Bhd (YES) in signing service agreements with DNB. DNB had previously said its 5G network would cost RM16.5 billion to build and run over 10 years, including RM4 billion “corporate costs”, which analysts reckon can be reduced. Simple back-of-the-envelope calculations show that the RM16.5 billion works out to RM2.75 billion per MNO, if split six ways. Even if each of the telcos only has to pay RM275 million a year to DNB for 10 years, this amount would likely be bigger than the impact of Cukai Makmur on their respective bottom lines this year. Indeed, earnings-related issues are not limited to these taxes and 5G wholesale payments alone. Investors have already seen the impact of Cukai Makmur on Maxis’ and Digi.Com’s first-quarter results, while TM and Axiata will announce their respective 1Q2022 earnings on May 25. Maxis’ net profit came in at RM298 million for 1Q2022, down 10.8% from RM334 million in 1Q2021, even as tax expense rose to RM134 million (31% of pre-tax profit) in the quarter just ended, compared with RM119 million (26% of pre-tax profit) in the same quarter last year. That’s not to say Maxis cannot maintain a 17 sen dividend this year or continue to pay a dividend of five sen per quarter for the rest of this year. It needs RM78.3 million to pay every one sen of dividend. Since Maxis continues to be profitable and has more than RM4 billion retained earnings in reserves, even without touching its share capital that can also be returned to shareholders, it can continue to pay more than 100% of its earnings, subject to its investment needs. Maxis — which needs about RM1.3 billion to maintain the dividend of 17 sen per share it paid in FY2020 and FY2021 — has at least RM1.8 billion (23 sen per share) debt headroom before its net debt to Ebitda (earnings before interest, taxes, depreciation and amortisation) rate breaches the palatable threshold of three times, with the ratio rising from 2.2 times at end-2021 to about 2.5 times as at 1Q2022, our back-of-the-envelope calculation shows. Even if Maxis’ earnings were to slip to RM1.6 billion for FY2022 before taxes, it would still make more than RM1 billion profit, or around 13 sen per share, available for distribution after paying Cukai Makmur. The earnings available for dividend rises close to 16 sen if Maxis can maintain pre-tax profit at around RM1.8 billion. At the RM3.81 that Maxis closed at on May 10, a dividend of 15 sen would shore yield above 4%, while a dividend of 17 sen to 20 sen would reflect yields of 4.5% to 5.2%. Over at Digi.Com, much depends on its impending merger with Celcom. As it is, Digi.Com’s net debt to Ebitda levels is much lower, at only 1.6 times, but its shareholders’ equity is also a lot lower at only RM565.7 million as at end-March, after deducting about RM200 million accumulated losses given that it had returned capital to shareholders in 2005 and continued to be generous on dividends. For 1Q2022, Digi.Com’s net profit was down 11% year on year to RM236.15 million, even as tax expenses rose to RM138.2 million (37% of pre-tax profits) from RM93.7 million (26% of pre-tax profits) in 1Q2021. Digi.Com needs RM77.8 million to pay every one sen of dividend and RM1.17 billion to keep its dividend at 15 sen this year. It declared a dividend of 2.9 sen in 1Q2021, reflecting a payout of over 95%. It paid between 3.4 sen and 4 sen per share per quarter last year, totalling 14.95 sen for FY2021. A dividend of 12 sen to 15 sen per share would reflect a yield of 3.4% to 4.2% at its RM3.57 close on May 10. In any case, with mobile penetration at over 144% and competition heating up for the home broadband as well as the enterprise market, all players would be hard-pressed to up their game to retain subscribers and win new customers. TM managing director and CEO Imri Mokhtar tells The Edge that is it conserving some cash for investments in its future, including acquisitions to bolster its enterprise portfolio (see “On the prowl for M&A, JV to grow new digital services unit Credence” on Page 53). The fact that Maxis has begun to report enterprise revenue on a standalone basis “suggests that management is now more confident about the segment’s prospects”, Maybank Investment Bank Research analyst Tan Chi Wei wrote in an April 29 note, retaining a “hold” recommendation and RM4.20 target price. As at end-March, Maxis had 87,700 enterprises with billable services, up 4.2% year on year from 84,200 at end-March 2021, with enterprise revenue growing 5.4% year on year to RM388 million (of which RM185 million was from traditional postpaid mobile service). Tan expects Maxis to declare an 18 sen dividend for FY2022, up from 17 sen in FY2021, but pencilled in a dividend of only 13.5 sen for Digi.Com (RM4 target price, hold). Analysts’ dividend forecasts are between 16 sen and 21 sen for Maxis, and 13 sen and 17 sen for Digi.Com, according to Bloomberg data at the time of writing. Forecasts range between 14 sen and 21 sen for TM (13 sen in FY2021), and between 9.5 sen and 15 sen for Axiata (9.5 sen in FY2021). Whether or not analysts are right about mobile operators’ ability to continue paying good dividends this year despite Cukai Makmur, their stock prices would continue to be weighed down if uncertainties surrounding 5G persist longer than end-June. Delays would ultimately hit the people and the country’s economy, which desperately needs to move up the value chain. 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/600156 | 次季净利大跌76% 启顺造纸业派息0.8仙 | English | （吉隆坡17日讯）由于原料和货运成本大幅增加、销售和分销费用提高，以及蒙受外汇损失，启顺造纸业（NTPM Holdings Bhd）第二季净利按年大跌75.61%。 该集团今日向大马交易所报备，截至10月杪2022财政年次季净利报335万令吉，或每股0.3仙，相比上财年同期的1374万令吉，或每股1.2仙。 次季营业额从1亿8867万令吉，下滑4.17%至1亿8081万令吉，归咎于纸巾与个人护理产品销售下降。 尽管季度业绩下跌，该集团宣布派发每股0.8仙的第二个中期股息，将于明年1月21日支付。本财年迄今共派发1.6仙的股息，与同期相同。 与2022财年首季比较，净利从1579万令吉挫跌78.78%，营业额则较1亿7376万令吉微扬4.05%。 启顺造纸业在2022财年首半年净赚1914万令吉，较一年前的2838万令吉，下跌32.56%；营业额由3亿6796万令吉，下滑3.64%至3亿5457万令吉。 该集团预计，未来几个季度的商业环境仍将充满挑战，但波动性将降低。 “集团将继续采取措施控制成本、优化营运资本、保存现金及精简营运，以降低新冠肺炎对财务表现的影响。” 闭市时，该股扬升1仙或2.08%，收于49仙，市值为5亿4475万令吉。 （编译：陈慧珊） English version：NTPM 2Q net profit down 76% on higher raw material prices and forex loss; declares 0.8 sen dividend |
https://theedgemalaysia.com/node/656105 | Breakingviews: Even a weak Russia is a problem for Europe | English | LONDON, Feb 20 (Reuters Breakingviews): Almost a year after Russia invaded Ukraine it is hard to see Vladimir Putin winning his war. But a lasting peace is not on the cards either. Europe seems destined for an arms race and further economic decoupling from its neighbour, which could drag on even if the Russian president goes. Still, the costs of extra defence spending, lost business and rebuilding Ukraine are much better than a Russian victory. There are many possible scenarios for how the military conflict will evolve. The most probable is that neither Russia nor Ukraine prevails on the battlefield and there won’t be a formal peace deal for a long time. After all, that would involve either Ukraine surrendering land, which it cannot accept, or Russia giving up all the territory it has occupied including Crimea, which Putin won’t do. This means that the two sides will either keep fighting or there will be a frozen conflict like the one between North and South Korea. Either of these outcomes will not just impose big costs on Ukraine and its adversary, but on the rest of Europe too. Russia’s war economy is increasingly churning out tanks, missiles, ammunition and planes. The Kremlin, whose budget deficit soared to $25 billion last month, will soon find it impossible to shield ordinary Russians from these costs. The population will pay with higher taxes, lower welfare spending or inflation. Meanwhile, Putin will throw more young soldiers at Ukraine’s battle lines. As a result, the brain drain that started a year ago will continue. Russia’s economy is set for stagnation or decline, says Tim Ash, a strategist at BlueBay Asset Management. Ukraine will bear the brunt of the conflict in terms of lost lives, destroyed buildings and economic hardship, as it has for the past year. The European Union and United Kingdom will also share some pain. They are already having to find alternatives to Russian gas. Although gas price futures for next winter have fallen from last year’s peak, they are still four times higher than two years ago. This has boosted inflation and undermined industrial competitiveness. Meanwhile, by shunning Russian oil, Europe is paying more for crude imports while China and India buy the black stuff at a discount. Further economic decoupling is likely. The EU is discussing tightening sanctions on Russia. European companies see less benefit in doing business in the country and are under pressure from customers, employees and shareholders to disengage. The other big question is what happens if Putin dies or is pushed out. Again, there are multiple scenarios. Bruno Tertrais, deputy director of the Fondation pour la Recherche Stratégique, a French think-tank, outlines four: Russia makes a democratic transition just as West Germany did after World War Two; it seals itself from the rest of the world like North Korea; it nurses its grievances with the aim of reconquering territory when it is stronger; or it breaks up. Tertrais thinks the most optimistic outcome — a democratic transition — is also the least likely. This is partly because America and its allies won’t be occupying Russia and pouring in aid, as they did in West Germany after 1945. Others are more optimistic. Radoslaw Sikorski, a former Polish foreign minister who is now a member of the European Parliament, says Russia only reforms itself after military defeats like the Crimean War, the Russo-Japanese War, World War One and the Cold War. Some hope Russia can become democratic under its own steam, just as so-called “coloured revolutions” brought change to former Soviet states like Ukraine and Georgia. However, that doesn’t seem likely given the Kremlin’s capacity to terrorise its own people. Another possibility is that a different dictator who is less aggressive to Europe replaces Putin. The new autocrat might conclude it was easier to control the Russian population if the country was not economically isolated and did not wish to become China’s pawn. “A Putin 2.0 may be more realistic about the economy and China,” says Michel Duclos, special adviser for geopolitics at the Institut Montaigne think-tank. In this last scenario, Europe and America would be interested in rapprochement, especially if they saw a way to pull Russia out of China’s orbit. Any significant thawing of relations would have to wait for a formal peace deal with Ukraine, though. Even then, Russia has no way back to becoming a significant supplier of gas to Europe, as the EU and UK will have soon secured alternative sources and ramped up their renewable energy. The country won’t be an interesting place for investors, tech firms or makers of consumer products to do business either. What’s more, a less aggressive Russia would still be a threat unless it made a full transition to democracy. Even if the Ukraine conflict has severely weakened its army, it will still have nuclear weapons. Europe, which was late to appreciate the danger posed by Putin, won’t quickly forget the lesson even if he goes. Germany and France are already planning much bigger defence budgets, while the UK is also debating higher spending. With the United States keen to turn its attention back to the challenge from China, Europe will be paying more for its protection for years to come. Then there is the cost of rebuilding Ukraine, which the World Bank now estimates at €500 billion and rising. There’s no way the private sector will pay for all of this given Ukraine’s annual economic output before the war was only US$200 billion.The EU, which has promised Kyiv membership of the bloc, seems likely to be landed with the lion’s share of the bill. These costs pale by comparison with a scenario where Putin had triumphed in Ukraine. In that case Europe would now be worrying how to protect the Baltic States and Poland from his aggression. Yet even a Russia weakened by a year of war and sanctions remains a problem for Europe. |
https://theedgemalaysia.com/node/612464 | Chin Hin Group emerges as single largest shareholder in Ajiya with 24.68% stake | English | KUALA LUMPUR (March 18): Chin Hin Group Bhd has emerged as the single largest shareholder of building materials manufacturer Ajiya Bhd with a 24.68% equity interest. In a statement on Friday (March 18), the company said it is acquiring the stake for RM104.4 million, adding that this synergistic acquisition would help the group expand its product range from building materials into high value-added safety glass products, metal roofing, metal door and window frames. This is also Chin Hin’s biggest acquisition since its listing on the Main Market in 2016. Chin Hin said it had entered into a conditional share sale agreement on Friday (March 18) with Ajiya’s major shareholder and Avia Kapital Sdn Bhd to acquire 72 million shares in Ajiya. It said upon completion of the share sale, Datuk Chan Wah Kiang will be re-designated as the founder and group chief executive officer of Ajiya. Commenting on the exercise, Chin Hin Group managing director Chiau Haw Choon said the group will be able to tap Ajiya’s order book and network of supply chain and clientele, which was built over its three decades of existence. “The acquisition is in line with the group’s objective of acquiring strategic stakes in companies with potential for future growth. Synergistic benefits are expected to arise from the acquisition as both the group and Ajiya Group are operating in and servicing the same industry, namely the construction and property development industry. “In addition, Ajiya Group also has an overseas presence in countries such as Thailand. Chin Hin may be able to leverage on the overseas network for future expansion abroad,” said Chiau. Meanwhile Chan, who is also a managing director at Ajiya, said the company would benefit significantly from Chin Hin’s exposure in the property development business. In addition, given Chin Hin’s involvement in the building materials segment, both parties would be able to jointly work on streamlining costs and optimising order delivery flow. At the midday break Friday, Chin Hin added one sen to RM2.66 while Ajiya shed 0.5 sen to RM1.20. |
https://theedgemalaysia.com/node/675281 | AGC has strong case against Sanusi, says Zahid | English | KUALA LUMPUR (July 18): Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the Attorney General's Chambers (AGC) has a strong case to charge caretaker Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor in court. He said that the charges against Sanusi also had nothing to do with the Aug 12 state elections as well as the decree issued by the Sultan of Selangor Sultan Sharafuddin Idris Shah, who said that the issue regarding the statement by Muhammad Sanusi, which is considered insulting to the Selangor royal institution, is not over yet. "In my opinion, the prosecution was made because the AGC has a strong case, so if he is innocent, the court is the best platform [for Sanusi] to answer all the accusations and defend himself," he told reporters after launching the 2023 MARA Educator Awards Day here on Tuesday (July 18). The minister of rural and regional development was commenting on Pendang Member of Parliament Datuk Awang Hashim's statement that Sanusi’s prosecution was to 'cripple' the progress of PAS and Perikatan Nasional (PN) ahead of the state polls. Asked why Sanusi was arrested at 3am, Zahid, who is also Umno president, said it was the enforcement agency's right to do so. "That's the right of the enforcement agency, they can make an arrest at any time, 24/7," he said. Sanusi was charged in the Selayang Sessions Court here earlier on Tuesday with uttering seditious words regarding the appointment of the Selangor menteri besar during a political talk last week. The PN election director pleaded not guilty to both charges, which were read out separately before judges Nor Rajiah Mat Zin and Osman Affendi Mohd Shalleh. Meanwhile, Zahid said that no discussion had been made regarding the candidate for the Kuala Terengganu parliamentary by-election. The Election Commission has set the polling for the Kuala Terengganu parliamentary by-election to be held simultaneously with the six state polls on Aug 12. On June 27, the Terengganu Election Court nullified the victory of Datuk Ahmad Amzad Hashim of PAS in Kuala Terengganu during the 15th general election on Nov 19 last year, after finding that the petitioner, Datuk Mohd Zubir Embong of Barisan Nasional, had succeeded in proving that corruption had taken place with the aim of influencing voters in the election for the seat. Read also:
Sanusi expected to be charged on Tuesday over remarks allegedly insulting Selangor sultan
PAS urges supporters to remain calm after police arrest Sanusi ahead of court appearance
Caretaker Kedah MB Sanusi charged with sedition
Dewan Diraja Selangor lodges police report against Sanusi over alleged insult on Selangor royal institution
Sanusi: Charges meant to hurt my chances in state polls |
https://theedgemalaysia.com/node/639980 | From waste to wealth: opportunities abound in a circular economy | English | In 1492, when Christopher Columbus set sail for India, most people at that time believed that the world was flat. While Columbus never did find India as he sailed west, he famously exclaimed: "The world is round!" Today, more than 500 years later, the world - in terms of economics - is very much flat or linear. In fact, more than 90% of the world economy is linear1. The truth is that net zero emission cannot be achieved without net zero waste. Reducing waste by adopting a circular economy approach will create economic
opportunities and build a sustainable world. Clearly, today's linear world is unsustainable. Global waste generation is set to increase 70% by 2050, according to the World Bank2, highlighting the urgent need to transit to a circular economy. A linear economy follows the "take-make-dispose" approach - raw materials are collected, then transformed into products that are used until they are finally discarded as waste. If left unchecked, the linear economy will produce as many products as possible, damaging the environment in the process due to unrestrained resource extraction, excessive carbon emission, unwanted pollution and waste. Unlike the linear economy, the circular economy requires a paradigm shift, to one where resources are reused for as long as possible, by optimising the re-utilisation of consumer goods and active recycling of unwanted materials. The transition to a circular economy is pivotal in the fight to mitigate climate change, as excess emissions are released from inefficient use of resources and waste, contributing to an estimated 1.6 billion tonnes of carbon emissions generated from solid waste management alone3, which is the equivalent of having 350 million cars on the road. The issue will only get worse if it is not addressed. Waste generation is expected to increase by more than 300% by 20504. This will amplify waste's influence on the environment and society, as landfills are the third largest man-made source of methane gas and a significant contributor to climate change bearing severe negative health effects. According to MIDA, the population in Malaysia is increasing rapidly, reaching 32.8 million people in 2021. This upsurge generates a tremendous amount of solid waste, which was estimated to be 38,427 metric tonnes per day in 2021 (1.17 kg/capita/day). Of which, 82.5 per cent is disposed in landfills. By 2022, the amount of municipal solid waste collected would be 14 million metric tonnes per annum, enough to fill the Petronas Twin Towers every seven days5. The cost of inaction is enormous. But the benefit of action is even greater. The Circular Economy can contribute $4.5 trillion in additional economic output by 2030, and $25 trillion by 20506 - driving new revenue sources and reduced costs. The World Economic Forum estimates that by 2025, recycling, reusing, and remanufacturing could help unlock $1 trillion a year in wasted resources and reduce 100 million tonnes of waste globally7. If companies are to thrive in the transition to a circular economy, they must do more than just attempt to retrofit circularity to their existing process. Instead, they must reimagine how they do business to win. Investment opportunities in the circular economy run the gamut from technology companies developing new materials, products or processes to a closed-loop model, to companies committed to transitioning to the sustainable circular approach. There are three dimensions to achieving a circular economy: 1) Redesigning and Remanufacturing; 2) Repurposing; and 3) Recycling and Reducing, and opportunities are abound for both businesses and investors. One of the main reasons for biodiversity loss is the "take-make-waste" approach of the agriculture sector, as it contributes to climate change. Redesigning food products that are unsustainably produced, and using low-impact crops, can help address these problems. Remanufacturing by rebuilding an old product using a combination of reused, repaired and new components to meet brand-new specifications, can help companies reduce waste and conserve resources while improving their margins, revenues and supply security. For example, a leading construction equipment manufacturer can reduce their costs by having their old equipment remanufactured to as-new condition for a fraction of the price of a new replacement. Currently, most waste from plastic packaging flows through a linear system that threatens biodiversity by polluting natural habitats, endangering wildlife, and contributing to climate change. Just 14% of the plastic packaging used globally is recycled, while 40% ends up in landfill and 32% in ecosystems, with the remaining 14% used for incineration. By innovating to ensure the plastics are reusable, recyclable or compostable, and circulating all the plastic to keep it in the economy and out of the environment, the impacts on biodiversity can be reduced. For example, a leading apparel company selling a line of shoes and clothing made from recycled ocean plastics. It is imperative to focus on innovations to improve recycling capacity and efficiency. Malaysia itself is finding ways to optimise the country's available water resources while facilitating sustainable growth. For instance, Air Selangor and Indah Water Konsortium (IWK) collaborated on a water reclamation venture last year which will be carried out by Central Water Reclamation (Central Water); a special-purpose vehicle company that will be 60% owned by Air Selangor and 40% owned by IWK. The bio-effluent treated at IWK's treatment plants will be supplied to Central Water for further treatment at Central Water's treatment plant, which is equipped with advanced technology to produce non-potable treated water that can be safely used for industrial purposes8. The key to having a circular economy is ensuring that the waste from one is a resource for another. A net-zero and sustainable world is only possible through a circular economy. Circular economy principles can be applied across all industry sectors, leading to biodiversity that benefits the economy and society. Just like how Columbus realised that the world is round, we too have to shift from a linear to a circular economy. Clearly, the momentum of transition to a circular economy is accelerating. As such, to invest with a circular economy framework is to invest in the winners of tomorrow. Click HERE to find out more on HSBC's sustainable unit trust investing Issued by HSBC Bank Malaysia Berhad 198401015221 (127776-V). For persons in Malaysia only. 1 3 reasons we must make the economy truly circular | World Economic Forum (weforum.org). 2 Global Waste to Grow by 70 Percent by 2050 Unless Urgent Action is Taken: World Bank Report. 3 Trends in Solid Waste Management (worldbank.org). 4 https://www.goldmansachs.com/insights/pages/gs-research/gs-sustain-circular-economy/report.pdf. 5 https://www.mida.gov.my/waste-to-energy-for-a-sustainable-future/#:~:text=In%20Malaysia%2C%20the%
20population%20is,cent%20is%20disposed%20in%20landfills. 6 The Circular Economy Could Unlock $4.5 trillion of Economic Growth, Finds New Book by Accenture | Accenture. 7 Closing the loop - the circular economy, what it means and what it can do for you (pwc.com). 8 https://www.airselangor.com/air-selangor-and-iwk-announce-reclaimed-water-venture/ |
https://theedgemalaysia.com/node/659598 | Top Glove sees interest spike on higher glove prices, but analysts say adjustments not enough to return it to profitability | English | KUALA LUMPUR (March 17): While investors appear to be warming up to better prospects ahead for Top Glove Corp Bhd, with the stock topping the actively traded list for the second day in a row as buying interest pushed its share price up over 31% in the last two days, analysts do not expect the world's largest glove maker to return to profitability soon. This is despite Top Glove's recent announcement that it has started to raise the average selling prices (ASPs) of its gloves and that the industry's ASP is returning to pre-pandemic level, after logging another loss-making quarter, disappointing expectations of a better performance. Analysts think the price adjustment is not yet enough to fully offset cost increases. Top Glove shares jumped 13.5 sen or 19.29% to close at 83.5 sen on Thursday. On Friday, it climbed another 8.5 sen or 9.58% to close at 92 sen. Trading volume spiked further to 290.07 million shares from Thursday's 184.96 million shares. Compared to a year ago, the group's share price is down 49.5%. On Thursday, Top Glove announced it incurred a net loss of RM164.67 million for the second quarter ended Feb 28, 2023 (2QFY2023) — its third straight quarter in the red — compared to a net profit of RM87.55 million a year earlier, as revenue slumped to RM618 million from RM1.48 billion. In light of the disappointing quarterly results, Hong Leong Investment Bank (HLIB) Research lowered its profit forecast for Top Glove for FY2023 to FY2025. HLIB projects that the group will post a wider net loss of RM409.2 million for FY2023, from an estimated RM274.2 million. For FY2024, the group is expected to post a net loss of RM66.3 million against an estimated net profit of RM74.4 million previously, and a smaller net profit of RM174.3 million for FY2025 against an estimated net profit of RM182 million previously. “Although raising ASPs may relieve some margin pressures, we do not expect this to bring Top Glove back to profitability soon, as the pricing adjustment is still not sufficient to fully account for the cost increases,” said HLIB in a note on Friday (March 17). Meanwhile, MIDF Research said it remains cautious about Top Glove’s outlook, mainly due to limited room to pass on the increased costs via price adjustments, as customers can easily switch to other glove makers that offer competitive prices. “Besides, we think that the group may remain in the red for the next one to two quarters, before attaining break-even, due to margin compression on the back of the ongoing oversupply of gloves and rising input costs,” it said. MIDF lowered its FY2023 profit forecast for Top Glove to a net loss of RM503.6 million, from its previous estimate of a net profit of RM55.7 million. “We also lowered our earnings forecasts for FY2024 by 46% and FY2025 by 3%. This is after accounting for higher production cost per unit due to poor utilisation and rising electricity tariffs, which more than offset the ASP adjustment,” said MIDF. Bloomberg data showed 16 "sell" calls, five "hold" calls and one "buy" call on Top Glove, with a 12-month target price (TP) of 66 sen. The highest TP of RM1.05 came from HSBC, while the lowest TP of 45 sen came from JPMorgan and TA Securities Research. HLIB and MIDF, on the other hand, maintained their "sell" recommendations on the stock. HLIB maintained its TP for Top Glove at 53 sen, while MIDF raised its TP slightly to 55 sen from 42 sen. “Our revised TP of 55 sen is based on FY2024’s book value per share of 86 sen pegged to its five-year historical -1.5 standard deviation price-to-book value of 0.64 times,” said MIDF. Read also:
Selling pressure re-emerges on glove stocks after Top Glove saw third loss-making quarter
Top Glove expects utilisation rate to stabilise in the next quarter
Average selling price of gloves returning to pre-pandemic level, says Top Glove
Top Glove posts third quarterly loss as headwinds persist |
https://theedgemalaysia.com/node/673222 | UBS baulks at potential IPO for Credit Suisse domestic unit, Swiss paper says | English | (July 1): UBS Group AG isn’t planning to take Credit Suisse’s domestic unit public, according to a report Saturday (July 1) in Schweiz am Wochenende. UBS chief executive officer Sergio Ermotti opposes the option because he believes it may inadvertently strengthen the bank’s international competitors, the Swiss newspaper said, citing people familiar with the matter who it didn’t identify. After UBS agreed in March to buy Credit Suisse in an emergency government-brokered rescue, Swiss politicians urged UBS to split off Credit Suisse’s domestic branch and list it on the Swiss stock exchange as a means to preserve jobs, increase competition and limit the risk of broader contagion if UBS were to fail. The domestic unit’s fate has been widely watched as Swiss-based companies and politicians voice concerns over the market power that the combined bank may exercise. A UBS spokesman didn’t immediately respond to a request for comment from Bloomberg News. It’s possible Ermotti may still consider spinning off a combination of the UBS and Credit Suisse domestic banks, under the name UBS Switzerland, as long as UBS retains a majority stake, according to the newspaper. Such a scenario would allow a double shareholding structure and may appease concerns about the bank being too big to fail. Ermotti previously said that all options were on the table and that the “base case scenario” is for UBS to retain Credit Suisse’s domestic unit. |
https://theedgemalaysia.com/node/632053 | Targeted subsidies can be rolled out when inflation is tamed, says BNM | English | KUALA LUMPUR (Aug 12): The best time for Malaysia to transition from blanket to targeted subsidies is when the country is no longer facing high inflationary pressures, Bank Negara Malaysia (BNM) Governor Tan Sri Nor Shamsiah Mohd Yunus said. Implementation of targeted subsidies must account for two things, namely the current inflationary environment, and that it should be done in phases, the central bank governor said during the press conference on Malaysia’s 2Q22 GDP data release. “Assistance needs to be given to the vulnerable sectors,” she said, pointing to the 20% of the economy which is still operating below pre-pandemic levels as of the second quarter. While the change from a blanket subsidy regime to a targeted one will push up inflation, savings from the transition can be used to support mechanisms like social protection programmes, Nor Shamsiah said. A phased and targeted roll-out will help manage the impact of the blanket subsidy removal on the economy, she said. “The outcome that we want to achieve is to have sustainable and inclusive growth,” she added. Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government’s subsidy and cash aid spending for 2022 is expected to more than double to RM77.7 billion from the initial estimate of RM31 billion. Some RM37.3 billion is spent on a blanket fuel subsidy, of which the bulk goes to the M40 and T20 income groups who spend more on fuel. On Aug 9, Tengku Zafrul reportedly said it is too early to introduce targeted subsidies in Budget 2023, considering the high global inflation. Malaysia’s consumer price index rose to a 12-month high of 3.4% in June 2022, led by a rise in food prices. The figure is much lower than the global average of 6.7%, and 5.6% in emerging economies, due to the blanket fuel subsidy and the government halting an increase in electricity tariffs for households while slowing the rate of increase for commercial end-users. BNM has forecast the headline inflation to average between 2.2% and 3.2% this year, compared with Malaysia’s long-term average of 1.6%. The central bank has also increased the overnight policy rate by 50 basis points this year to 2.25%, with a trajectory to normalise to pre-pandemic levels of 3%-3.25% partly to pre-emptively address the heating domestic demand. 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
Aggressive monetary policy would disrupt ongoing economic recovery, says BNM
Ringgit holding up against peers, swing impact on food inflation ‘quite small’ — BNM
Bank ownership grandfathering rule under Bafia only applies to specific shareholders, says BNM |
https://theedgemalaysia.com/node/650134 | 2022 - Newsmakers: Major movements at the top | English | This article first appeared in The Edge Malaysia Weekly on December 26, 2022 - January 1, 2023 Former chairman and major shareholder of AMMB Holdings Bhd After 40 years with AMMB Holdings Bhd, Tan Sri Azman Hashim retired from the country’s sixth-largest banking group by assets this year. The 83-year-old, who had progressively let go of his leadership roles in the group in the last few years, stepped down from his final two roles — non-independent chairman and board member of AMMB — at the end of March. He, however, continues to be involved with the group in his new role as chairman emeritus and honorary adviser. He also remains its second-largest shareholder, with an 11.82% stake, after the Australia and New Zealand Banking Group (ANZ), with 21.66%. His retirement took some by surprise as he had shown no signs of wanting to slow down, but Azman told The Edge that, in view of his age, it was “a matter of [finding] an appropriate time” to do so. He said he had informed colleagues of his wish to retire for “some time”. Analysts said Azman’s exit as AMMB chairman made sense, given Bank Negara Malaysia’s preference for banking groups to be helmed by independent chairpersons. Few bankers have had Azman’s staying power. A banker for more than six decades now, he has gone through some of the industry’s most challenging times, from the 1997/98 Asian financial crisis and the consequent consolidation of 54 banks into 10 (and subsequently to just eight) to the Covid-19 pandemic. He has worked under every single Bank Negara governor. Given his significant shareholding and the fact that ANZ is widely known to be eyeing exit options, Azman holds the key to potential mergers and acquisitions at AMMB. Whether there will be developments on this front next year remains to be seen. He also has a 53.77% stake in consumer finance company RCE Capital Bhd, through his investment firm Cempaka Empayar Sdn Bhd. — By Adeline Paul Raj Former executive chairman of the Securities Commission Malaysia The Malaysian stock market was all abuzz when reports trickled out that Datuk Syed Zaid Albar was stepping down as executive chairman of the Securities Commission Malaysia (SC) at the end of May this year. After all, he was only seven months into his second three-year contract, which started in November 2021 and was supposed to run until October 2024. He had helmed the commission since November 2018. Until today, Syed Zaid and the capital market regulator have not revealed the reason behind his resignation, but his exit coincided with a controversial decision by the Attorney-General’s Chambers to drop charges against troubled oil and gas services company Serba Dinamik Holdings Bhd and four senior executives, who were alleged to have filed false financial statements with the stock exchange in relation to the company’s record high revenue of RM6.01 billion for the 12 months ended Dec 31, 2020. The SC had earlier compounded Serba Dinamik and the four individuals RM3 million each — the maximum amount permissible under Section 369(a)(B) of the Capital Markets and Services Act — for submitting false financial statements of the company to Bursa Malaysia. Interestingly, in a statement issued to announce his resignation in April, Syed Zaid, a corporate lawyer, said the regulator’s “integrity, professionalism and dedication” were put to test during his tenure. The departure of three SC senior officials — namely managing director Foo Lee Mei, executive director and general counsel Chee Fei Meng and executive director of digital strategy and innovation Chin Wei Min — at around the same time that Syed Zaid announced his resignation also set tongues wagging. In January, the SC also examined the allegation that Malaysian Anti-Corruption Commissioner (MACC) chief commissioner Tan Sri Azam Baki owned a substantial number of shares in several public-listed companies. That drew criticism against the SC as the regulator said it could not conclusively establish if there was a breach under Section 25(4) of the Securities Industry (Central Depositories) Act 1991 (SICDA), which stipulates that a trading account must be opened in the name of the beneficial owner or authorised nominee. A day later, the SC clarified that evidence gathered in its inquiry into Azam Baki’s share trading account shows that he was the named account holder and had control of the account. It concluded that the chief commissioner “operated the account that he had opened, in that he had given instructions to buy, sell and transfer securities from the said account”. During his tenure, Syed Zaid helped steer the commission and the capital market through the challenges of the Covid-19 pandemic. The SC, together with Bursa, also oversaw some crucial developments, including the introduction of temporary relief measures for listed issuers, such as giving them more time to prepare their financial statements and for financially distressed companies, extending the deadline for their regularisation plans. — By Kang Siew Li Former president and CEO of Axiata Group Bhd The Axiata Group Bhd president and CEO seat vacated by Datuk Izzaddin Idris at end-May 2022 remains unfilled more than six months after he stepped down on the “mutual cessation” of his contract after 17 months at the helm. Izzaddin’s sudden departure was in stark contrast to the way he had succeeded Tan Sri Jamaludin Ibrahim on Jan 1, 2021, after serving as deputy group CEO since January 2020. It was a challenge he accepted after being a non-executive member of Axiata’s board from November 2016, during which time he was UEM Group Bhd’s managing director until October 2018. Just a day ahead of the May 27 resignation announcement, Izzaddin was still fielding questions — including those surrounding the government’s June 30 deadline with regard to Digital Nasional Bhd — at Axiata’s annual general meeting on May 26. The company had just received shareholders’ approval to pay RM2.57 billion for Indonesia-based high-speed broadband and cable TV provider PT Link Net Tbk, despite dissenting votes from board-represented shareholders, the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB). Both institutions did not say whether they voted “nay” because they wanted Axiata to increase dividends faster. Investing to accelerate mobile and fixed convergence between Link Net and XL Axiata may well prove right in the longer term but, in the short term, there is no denying that more of the RM2.8 billion cash, or 27.7 sen per share, from Celcom’s merger with Digi could have gone towards a special dividend without the Link Net purchase. When announcing a special dividend of four sen per share on Dec 6, Axiata said payment stems from “remaining cash” with most of the RM2.8 billion going towards “strengthening its balance sheet by paring down debt”. Together with the five sen declared following the release of its third quarter results on Nov 25, payment of nine sen per share or about RM909 million declared year to date will only happen on Jan 20, although the stock trades ex-dividend on Dec 29, a Dec 14 announcement shows. Axiata paid 9.5 sen dividend per share in FY2021, up from seven sen in FY2020. To his credit — even though the mega merger that created the country’s largest converged telecommunications operator, Celcom Digi Bhd, was completed only on Nov 30 — it was during Izzaddin’s tenure that Axiata and Norwegian Telenor ASA announced advanced talks in April 2021 and inked a multibillion merger agreement in June 2021 for each to be an equal 33.1% partner in their combined Malaysian operations. The deal proved more manageable than the botched and audacious multi-country merger with Telenor’s Asian operations led by his predecessor when he was still a board member. When thanking Izzaddin for his contributions, Axiata chairman Tan Sri Shahril Ridza Ridzuan said Izzaddin was steadfast in executing the Axiata 5.0 Vision and has been instrumental in shaping the group’s strategic response in the face of unprecedented challenges during the pandemic. Axiata’s CEO for telecommunications business and group executive vice-president Hans Wijayasuria and group chief financial officer Vivek Sood have been joint acting group CEO since June 1. Izzaddin’s successor will need to address expectations of dividend returning to 20 sen per share, which the market has been told may only come by 2027 instead of the previously targeted 2024. — By Cindy Yeap 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/678455 | New Kelantan Menteri Besar to be sworn in on Aug 15 | English | KOTA BHARU (Aug 12): The new Kelantan Menteri Besar is expected to be sworn in on Tuesday (Aug 15), said Datuk Ahmad Yakob. Ahmad, who previously held the position, said this followed the success of PAS in forming the state government after winning 43 of the 45 state assembly seats with its coalition partner, Bersatu in the state election. "We will discuss tonight (Aug 12) after obtaining all the results from the Election Commission (EC). "We expect the swearing-in of the Kelantan Menteri Besar on Aug 15, nonetheless it depends on the situation,” he told reporters after announcing the results of the state election at the state PAS information office here on Saturday. On Friday, PAS secretary-general Datuk Seri Takiyuddin Hassan said the Kelantan government administered by PAS will have a new Menteri Besar and Deputy Menteri Besar after the state polls. The state election results saw PAS winning 38 seats while its coalition partner Bersatu won five seats. The remaining two seats — Galas was won by Barisan Nasional (BN) and Kota Lama was won by Pakatan Harapan (PH). Visit this link for everything about the State Polls 2023 |
https://theedgemalaysia.com/node/669884 | HR ministry drafting policy to ensure social security for gig workers | English | BUTTERWORTH (June 4): The Ministry of Human Resources (MOHR) is drafting a policy to provide social security for gig economy workers involved in e-hailing services so that they are not discriminated against by their employers. Its minister, V Sivakumar said MOHR is formulating the policy at the ministerial level and expects to receive guidelines on the matter from his officials in the next two weeks. “The ministry is drafting a policy to see how the government can help so that this group will not be discriminated against by their employers, as well as provide social protection to them,” he told reporters after officiating the closing ceremony of the MYFutureJobs Career and Penang Housewife Social Security Scheme Carnival 2023, here on Sunday (June 4). He said the ministry did not reject a proposal to enact an act involving e-hailing workers, however, this will take a long time. He added that the government, for now, will create a policy first and then study in detail the need for drafting the special act. Asked for his opinion on employers' complaints regarding the difficulty of achieving a ratio of 80:20 for local and foreign labour, Sivakumar said employers need to offer attractive facilities in addition to increasing wages. He said the current statistics show that more than 1.18 million Malaysians are working in Singapore while overall 1.8 million Malaysians are working in the surrounding region and, as such, employers need to look into this matter. “We have workers but due to certain issues in terms of wages and other facilities, they prefer to work in neighbouring countries. We need to increase our salary scale even though we know it will increase our costs. “We need to look into this matter seriously in the long term. Employers should not be pegged to a minimum salary of RM1,500 but they also need to look at other facilities and obligations so that our children do not migrate," he said. Meanwhile, he added the Career Carnival in Penang saw the participation of 56 employers who interviewed candidates to fill 7,500 job vacancies offering a monthly salary of up to RM9,500. Some of the employers who participated were Flextronic Technology (Penang) Sdn Bhd, Osram Opto Semiconductors (M) Sdn Bhd, Maybank Berhad, SAM Engineering & Equipment (M) Berhad, Micron Technology, Robert Bosch (Malaysia) Sdn Bhd, Inari Amerton Berhad, AT&S Austria Technologie & Systemtecnik (M) Sdn Bhd as well as others from various sectors. “As of 11.30am today, a total of 552 people found jobs here (carnival),” he added. |
https://theedgemalaysia.com/node/630777 | 兴业：大众银行将迈向历史高位 | English | （吉隆坡3日讯）兴业零售研究表示，大众银行（Public Bank Bhd）正在寻求迈向历史高位，因为该股最近回调之后，昨天小幅上涨至4.69令吉即时阻力位。 券商指出，若该股成功突破上述水平，预计多头将推动其升至4.79令吉历史高位——4月4日高点，然后再创下5令吉新高。 “若跌破4.59令吉支撑位，近期的上升趋势可能会逆转，因为形成了‘更低低点’看跌格局。” （编译：魏素雯） English version：Public Bank to propel towards historical high, says RHB Retail Research |
https://theedgemalaysia.com/node/674493 | Inflation, once a stock-market curse, is now seen as the rally's friend | English | (July 11): A year after inflation galvanised bets against the US stock market, it’s becoming Exhibit A for those wagering that this year’s rally will continue. Since the consumer price index (CPI) surged by a four-decade high of 9.1% in June 2022, it has pulled back steadily in the face of the US Federal Reserve’s (Fed) monetary policy onslaught. That’s expected to continue on Wednesday (July 12), when economists forecast that the Labor Department will report the index rose just 3.1% last month — the smallest annual increase since March 2021. That slowdown has given support to the stock-market’s surge this year by justifying speculation that the Fed is nearly done, even if there are still a few more hikes to come. The bulls have strong precedent for their enthusiasm: Since the 1950s, inflation peaks have almost always been followed by double-digit equity gains, according to data compiled by the Leuthold Group. “It appears the Fed is winning its fight against inflation,” said Adam Sarhan, the founder of 50 Park Investments. “I’m operating like we’re in the beginning of a new bull market until any significant weakness says otherwise,” he said. “There needs to be a reason to sell. As long as inflation isn’t a major threat and the Fed doesn’t change its stance on rates, this is a golden opportunity to buy stocks.” The S&P 500 Index has gained more than 20% since it bottomed out in October, placing it up about 15% since the peak CPI data was released in July 2022. The tech-heavy Nasdaq 100 Index is up 40% from last year’s lows, fuelled in part by enthusiasm for advances in artificial intelligence (AI). The key driver, though, has been the hope that easing inflation pressures will allow the Fed this year to wind up the monetary policy campaign that’s pushed its benchmark rate from near zero in early 2022 to its current range of 5%-5.25%. With Fed policymakers heading into a silent period next week, traders are focused on this week’s CPI release for insight into the central bank’s likely path. After last week’s jobs report signalled a slowdown in a still-strong labour market, the figures will set the stage for stocks leading up to the central bank’s rate decision on July 26 and chair Jerome Powell’s subsequent press conference. Of course, there remain plenty of risks for the stock market, and traders this year have repeatedly pushed out the timing of when the Fed’s rate will peak as the economy held up better than expected. Many Wall Street strategists have also maintained a bearish outlook, expecting that equities will fall during the second half of the year as growth slows. What’s more, stronger-than-expected wage growth for June will likely keep the Fed on track to raise interest rates this month, with traders pricing in strong odds that it will be followed by one more such increase this year. So any sign that inflation is still stubbornly elevated may put pressure on pricey corners of the stock market, particularly technology companies that have left the Nasdaq 100 trading around 29 times projected earnings. “AI will be a very big thing for investors over the next decade, but you have to be careful in the short run,” cautioned Cheryl Smith, a portfolio manager and economist at Trillium Asset Management, citing the risk of a recession. But strategists at Wells Fargo Securities said the Fed’s monetary policy tightening is expected to keep showing gains on the inflation front at least, if history is any guide. The strategists cited the strong correlation between changes in consumer prices and those in a commonly used measure of the money supply known as M2. That measure has been contracting, which they said will likely continue to slow inflation as it pulls demand out of the economy. “More liquidity is associated with inflation growth and vice versa,” Chris Harvey, the head of equity strategy at Wells Fargo, said by email. “M2 has been contracting for over a year and is still contracting, though at a decelerating rate. If the economy muddles along and inflation comes down, it’s supportive of higher equity prices.” |
https://theedgemalaysia.com/node/617169 | PNB intends to elevate ESG practices among portfolio companies | English | KUALA LUMPUR (April 21): Permodalan Nasional Bhd (PNB) will be better positioned to seize new opportunities and manage its risks by integrating the Environment, Social and Governance (ESG) framework systematically into its investment operations, according to its Chief Investment Officer Rizal Rickman Ramli. Speaking in the media briefing on Thursday (April 21), Rizal said PNB intends to elevate ESG practices within its portfolio companies and highlighted that new investments will need to go through a fairly rigorous ESG screening process to understand the risks and opportunities that it brings. “At the same time, as part of our ongoing monitoring of existing investments, we do need to have more detailed assessments of how the investments will perform in light of the various ESG metrics. “We also do need to focus on internal talent building, in order for us to really understand the ESG risks and opportunities that we have in front of us, so that is essentially the integration process,” he revealed during the launch of PNB’s Sustainability Framework. As 60% of its investments are into domestic public equities, Rizal highlighted that some of its investment companies may face challenges in adopting ESG framework, especially in sectors where a lot of emissions are happening. He added that PNB will support its portfolio companies to tackle the issue by conducting engagements with various stakeholders in order to support improvements in the particular sector. Notably, PNB holds stake in various publicly listed companies such as Sapura Energy Bhd, Velesto Energy Bhd, S P Setia Bhd, Sime Darby Bhd, Sime Darby Plantation Bhd, Sime Darby Property Bhd and UMW Holdings Bhd. It also has substantial stakes in utility firm Tenaga Nasional Bhd and IJM Corp Bhd, which is involved in quarrying and infrastructure concessions. Earlier, PNB announced that it will invest a total of RM10 billion in Green and Transition assets by 2030, as part of its commitment to achieve a Net Zero Enterprise and Net Zero Portfolio by 2025 and 2050 respectively. The PNB’s Sustainability Framework, which was unveiled on Thursday, outlines 10 commitments for PNB’s own operations, as well as for its investments under the three pillars of ESG. Read also:
PNB plans to invest RM10b in green and transition assets by 2030 |
https://theedgemalaysia.com/node/606898 | Start-Up: A serious swipe on love | English | This article first appeared in Digital Edge, The Edge Malaysia Weekly on February 14, 2022 - February 20, 2022 Having arranged marriages and initiated romantic relationships for 18 years as a matchmaker, Anisa Hassan found it odd that the plethora of dating apps available today had not made finding love any easier. It was even harder when prerequisites — such as faith — came into the equation, she says. That got her thinking: maybe the problem was that the data and software powering the dating platforms were lacking the touch of a seasoned matchmaker. So, Anisa decided to create Joompa to bring her offline expertise — she runs luxury matchmaking service Date High Flyers (DHF), headquartered in Singapore — to the online space. The Muslim-friendly dating app offers a safe space for users to find like-minded individuals seeking long-term relationships. “Since I became a matchmaker in 2004, I have dealt with more than 12,000 clients and successfully paired up over 1,000 couples. But my clients who are Muslims often tell me how difficult it is to find partners sharing the same religion. “This got me thinking about what the reason could be [considering that] we are in the new centre of the biggest Muslim population in the world — Indonesia, Malaysia and Singapore combined,” says Anisa. “There are so many dating apps out there but there isn’t any app that is backed by a real matchmaker. So, I wanted to codify what I have learnt from my interactions and my knowledge of what makes a relationship work. “I decided to focus on an app for the Muslim community first because that space got me thinking about codifying my experience,” she continues. Islam is the most widely practised religion in Southeast Asia, numbering about 240 million adherents and making up about 42% of the 655 million total population. “[This is] quite a sizeable market, which is why I decided on creating a matchmaking app catered for Muslim singles.” Anisa chose to launch Joompa in Malaysia in 2020, given the country’s 19.5 million Muslim-majority population and high internet penetration rate. Since the launch, the app has garnered close to 10,000 active users in Asia. According to market and consumer data provider Statista, the revenue from online dating is projected to reach US$3.677 billion (about RM15 billion) this year with an annual growth rate of 6.25%, resulting in a projected market value of US$4.686 billion by 2026. The firm adds that the number of users is expected to total 501.7 million by 2026. Currently, most of the revenue is generated in the US and is projected to be US$829 million by the end of the year. Unlike the more mainstream dating apps where the algorithms make match suggestions based on location, age and other preferences, Joompa spotlights a person’s interests and values instead of their looks, says Anisa. While the insights and intuition she has garnered from working with her DHF clients over the years cannot be easily codified, Anisa says she works closely with her team of technologists to automate as much of what she has gleaned as possible in Joompa. Matches are made using a compatibility meter developed in-house, which is configured based on a series of questions — ranging from hobbies to the level of religiosity — that users must answer upon signing up. The compatibility meter then curates users best suited for each other, after which it is up to the users to engage their match in conversation on the app. Anisa decided against presenting endless choices as well as against including an option — such as that on Tinder — that allows users to swipe left or right for matches. “Dating apps are being created by data scientists and coders … people who have no understanding of what would make a match work. “From the work I do in my offline space, I know the struggles, the emotional roller coasters that our clients are being subjected to when they go out on dates — their fears, anxieties, doubts and beliefs about themselves and the person who they are going to meet,” says Anisa. “Sometimes the match doesn’t work out and sometimes these things just pan out because dating is all about the experience gathered along the way. “Being a matchmaker, I guide my clients, allay their fears, explain or sometimes reframe their thinking and mindset to ensure that they don’t easily jump to conclusions or second guess their decisions or read too much into a situation,” she continues. “So, I know what makes a date work or what makes a pairing successful. There are more variables than things like a person’s age and looks. Would it be good to pair someone who has never married before to someone who is divorced? Or with someone who is widowed with children, would that pairing be successful? Would pairings between two divorcees work?” This is why users on Joompa are encouraged to engage in conversation and get to know the person they are communicating with instead of just relying on their looks before declining the match. “The compatibility meter shows users who they are compatible with, and that they should consider starting a conversation with that person, rather than giving him or her a pass because of their profile pictures. Other platforms are very profile-picture driven,” she says. For starters, factors such as age, marital status and level of religiosity come in handy when it comes to the ongoing challenge of deciding on a possible match. As Joompa prioritises matches for Muslims, users are given questions such as which sect — Sunni or Shia — one belongs to and if they practise fasting during Ramadan and perform daily prayers. “Let’s say somebody is very orthodox Muslim. Pairing him or her with a liberal Muslim or a moderate Muslim might not work as well. So, I believe we have to have the difficult conversations early on in the dating game. It’s not something that you should discuss much later when you are fully invested in the relationship,” says Anisa. “What we want is for people to stay away from the superficial and go deeper into the conversation because that’s how relationships are formed. “It is to save you from the heartbreak and the hassle of such deal-breakers. We took into account the non-negotiables when we worked on refining our app, something that I doubt is being explored by the other regular dating apps.” While the app is targeted at Muslims, it is open to all ethnicities and people of different faiths, stresses Anisa. “From the work I have done at DHF for 18 years, I know that interethnic relationships also work well. It is about the vision they share on what makes a good marriage. People of other faiths can skip the questions that are relevant to those of the Islamic faith. But for the Muslims, we encourage them to answer all of that because it gives us a glimpse into their level of religiosity.” To prevent catfishing and other fraudulent acts, users have to submit proof of identification upon signing up. “You are asked for several things for verification purposes. We make sure that your photos or your selfies are somewhat similar to your proof of identification. And, of course, there’s phone verification or email verification as well,” she says. The Covid-19 pandemic has contributed to the uptick in the use of dating apps given physical distancing rules, which is why Anisa is steadfast in her conviction that deeper conversations are essential to building sustainable relationships. “Building a trusting relationship is all about being able to engage your five senses. But in a lockdown, this [online dating] is the closest that we can get to finding a partner without having that face-to-face interaction. “The human heart and mind are fickle things. Even if I put five gentlemen before you to consider, if you aren’t feeling a connection, there isn’t much that can be done. We have our desires, parameters and preferences. So, as a matchmaker on an app, all I can do is to recommend options based on your preference. It is up to you to take it to the next level to see if you have the chemistry. “Do not dismiss somebody just because he or she may not fit into the kind of mould that you’re used to. It is essential to be open-minded. The intention of this app is not to hook up. It’s not [targeted at those who want] casual meetups,” Anisa stresses. “It is to develop long-term and sustainable relationships that lead to marriage because we aim to match at least one million Muslim marriages worldwide.” 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/627845 | Microlink seeks to transfer listing to Main Market | English | KUALA LUMPUR (July 12): ACE Market-listed Microlink Solutions Bhd is seeking to transfer its listing status to the Main Market of Bursa Malaysia. In a Bursa Malaysia filing on Tuesday (July 12), the group said it plans to amend its constitution to ensure compliance with the Listing Requirements pursuant to the proposed transfer. The details of the proposed amendments will be set out in the circular to the shareholders of the company which will be circulated in due course, it said. “The proposed transfer signifies the financial performance and strength of the group as it has met the profit requirements for a transfer to the Main Market of Bursa Securities. “The board believes that the proposed transfer will further enhance the company’s credibility, prestige and reputation, and will accord the company with greater recognition and acceptance amongst investors, in particular, institutional investors. “In addition, the proposed transfer will also promote the company’s corporate image, leading to greater recognition and confidence amongst clients, sub-contractors, business partners, bankers, employees and shareholders,” it added. The proposed listing transfer is expected to be completed in the second half of the year. AmInvestment Bank Bhd has been appointed as the adviser for the proposed transfer. As at March 31 this year, Microlink had a net asset value of RM201.26 million and cash equivalents of RM63.12 million. In the fourth quarter ended March 31 (4QFY22), the group’s net profit fell to RM5 million from RM19.03 million a year earlier (4QFY21) although revenue jumped to RM51.91 million from RM36.94 million in 4QFY21. Shares in Microlink ended five sen or 0.87% lower to 57 sen, valuing the technology solutions provider at RM614.27 million. |
https://theedgemalaysia.com/node/602755 | 反贪会主席涉超额持股 证监会将展开调查 | English | （吉隆坡6日讯）大马证券监督委员会（SC）指出，将针对大马反贪污委员会（MACC）主席丹斯里阿占巴基被指拥有一家上市公司约200万股，存在利益冲突的指控，与他及有关各方联系，以对这项指控作出解释。 证监会今日发布文告说：“证监会将与包括丹斯里阿占巴基在内的涉及人士联系，以寻求解释并核实所作出的声明，并收集任何相关证据。” 惟证监会并没有具体说明除了阿占巴基之外的其他人士。 反贪污顾问局昨日指出，阿占巴基在2015年的股票交易并没有犯罪或利益冲突。 据马新社报道，反贪污顾问局主席丹斯里阿布查哈表示，在去年11月24日的特别会议上，阿占巴基解释说，他的胞弟Nasir Baki在2015年用他的股票户口来买股票。 阿布查哈在新闻发布会上说，当年是在公开市场进行购股，没有利益冲突，且这些股票也在同年转移给Nasir。 “经过长时间讨论之后，顾问局成员认为，阿占巴基在这些股票并没有金钱或实益权益。” 证监会今日指出，根据1991年证券业（中央存票系统）法第25条文，在中央存票系统开设的所有证券账户，必须是账户受益人本身或获授权的代理人名称。 “此外，第29A条文规定，只有证券受益人或授权代理人可以进行证券交易。” 截稿时，反贪会没有就证监会声明作出回应。 （编译：陈慧珊） English version：SC to probe MACC chief commissioner's share purchase allegations |
https://theedgemalaysia.com/node/601598 | SC secures arrest warrant against Serba Dinamik CEO | English | KUALA LUMPUR (Dec 28): The Securities Commission Malaysia (SC) on Tuesday secured a warrant of arrest for Serba Dinamik Holdings Bhd chief executive officer (CEO) and group managing director Datuk Mohd Abdul Karim Abdullah, who is currently at large. Earlier the same day, the regulator charged the group, its director as well as officers for submitting a false statement to Bursa Malaysia Securities Bhd — which is an offence under Section 369(a)(B) of the Capital Markets and Services Act 2007 (CMSA) — in relation to a revenue figure of RM6.014 billion contained in Serba Dinamik’s financial report for the quarter and year ended Dec 31, 2020. The SC had also relayed its intent to charge Mohd Abdul Karim, but could not locate him, which led to its application for the arrest warrant. The individuals charged were executive director Datuk Syed Nazim Syed Faisal, group chief financial officer Azhan Azmi, and vice president of accounts and finance Muhammad Hafiz Othman. All three claimed trial to the charges. Sessions Court judge Sabariah Othman fixed bail at RM300,000 with two sureties each, and ordered the passports of all the accused to be surrendered to court. All three are also required to report to the SC’s investigating officer on a monthly basis. Independent non-executive director Abu Bakar Uzir, who appeared for Serba Dinamik to answer the charge against the group, also claimed trial, said the SC in a statement. Under Section 369(a)(B) of the CMSA, a person found to have made a false or misleading statement to the SC, the exchange or approved clearing house, if convicted, faces a jail term of not more than 10 years and a fine of not less than RM3 million, or both. The SC’s investigation into Serba Dinamik started in May 2021 following a Section 320 CMSA report by KPMG to the regulator. KPMG's action was in line with auditors' statutory obligation to immediately report to the regulator if they reasonably believe that there are matters that may constitute a breach or non-performance of any requirement of securities laws, rules of the stock exchange or any matter that may adversely affect, to a material extent, the financial position of a listed company, said the SC. The case has been fixed for hearing on Jan 27. Read also:
SC charges Serba Dinamik and officers for submitting false statement to Bursa |
https://theedgemalaysia.com/node/608753 | 次季净利攀升39%至4.9亿 IOI集团派息6仙 | English | （吉隆坡23日讯）IOI集团（IOI Corporation Bhd）截至2021年12月31日第二季（2022财年第二季）净利攀升39.08%至4亿9470万令吉，上财年同季为3亿5570万令吉，得益于种植和资源型制造业务提高贡献。 因此，每股盈利从5.68仙，增至7.95仙。 季度营业额从24亿5000万令吉，剧增67.53%至41亿1000万令吉，得益于原棕油价格上涨，推高了种植业务的营业额。 同时，该集团宣布，派发每股6仙首次中期股息，将于3月25日支付。 截至12月杪首6个月（2022财年首半年），该集团的净利上扬21.89%至7亿7230万令吉，上财年同期报6亿3360万令吉，营业额则从一年前同期的49亿3000万令吉，弹升57.03%至77亿5000万令吉。 闭市时，IOI集团起2仙或0.45%，至4.42令吉，市值达277亿8000万令吉。 （编译：魏素雯） English version：IOI Corp 2Q net profit jumps 39% to RM494.7m, declares six sen dividend |
https://theedgemalaysia.com/node/626223 | SCGM’s 4Q net profit rises 11%, declares 1.32 sen dividend | English | KUALA LUMPUR (June 29): SCGM Bhd’s net profit for the fourth quarter ended April 30, 2022 (4QFY22) grew 11.11% to RM8.47 million from RM7.62 million a year earlier on the back of higher revenue, coupled with more favourable sales mix and lower interest expenses. Earnings per share (EPS) increased to 4.4 sen from 3.96 sen, the company said in a filing with Bursa Malaysia on Wednesday (June 29). Quarterly revenue advanced 8.82% to RM71.54 million from RM65.74 million amid higher local and export sales, which increased by 7.8% and 11.2% respectively. Local sales increased to RM49.698 million from RM46.106 million, while export sales rose to RM21.84 million from RM19.638 million. “The better sales performance was on the back of higher deliveries of food and beverage (F&B) packaging due to the rise of online delivery services and consumers’ takeaway culture after the onset of the Covid-19 pandemic,” said SCGM. The plastic packaging solutions company declared a fourth interim single tier dividend of 1.32 sen per share, to be paid on July 29. Compared to the immediate preceding quarter, SCGM’s net profit grew 34.75% from RM6.28 million in 3QFY22, while revenue increased slightly from RM71.31 million. However for the cumulative 12 months ended April 30, net profit stood at RM30.87 million, 8.14% lower than RM33.6 million in the previous year, largely due to higher deferred tax expenses. In contrast, 12-month revenue rose 15.49% to RM284.7 million from RM246.5 million due to improved local and internal sales of F&B packaging. Cumulative EPS slipped to 16.03 sen, from 17.45 sen. Going forward, SCGM said it remains cognizant of external challenges, particularly fluctuating raw material prices arising from ongoing supply chain disruption, and the impact of the government’s easing of Covid-19 restrictions. “Nonetheless, the company believes that demand for F&B packaging and other products are resilient in the long-term, given consumers’ prevalent preference for takeaways for hygiene and food safety purposes. “The company will sustain efforts in product development and design, especially of sustainable packaging, as well as new market development and entry in line with our market expansion initiatives,” it added. SCGM closed unchanged at RM2.29 on Wednesday, which translates to a market capitalisation of RM443.34 million. |
https://theedgemalaysia.com/node/618433 | Insider Moves: Central Global Bhd, Jerasia Capital Bhd, FCW Holdings Bhd, Bina Darulaman Bhd, KYM Holdings Bhd | English | This article first appeared in Capital, The Edge Malaysia Weekly on May 2, 2022 - May 8, 2022 For the week of April 18 to 22, notable changes in shareholding at companies listed on Bursa Malaysia included those at Central Global Bhd, which saw RYRT Holdings Sdn Bhd emerge as a substantial shareholder of the industrial tape and label stock maker. According to bourse filings, RYRT Holdings subscribed to 14.47 million shares, or a 12.44% stake, in Central Global at RM1.04 apiece, totalling RM15.05 million on April 18. This follows the completion of the first tranche of the acquisition by Central Global’s wholly-owned subsidiary CIC Construction Sdn Bhd of 70% equity interest in RYRT International Sdn Bhd from RYRT Holdings for RM30.1 million. The deal was to be satisfied by the issuance of 28.94 million new shares in Central Global at RM1.04 apiece. RYRT Holdings is equally owned by its directors Soo Yu Chai and Lee Chee Vui. On Jan 26, Central Global announced that the acquisition of RYRT International represented an opportunity for the group to further enhance its presence in the construction industry in Sabah, as the latter is principally involved in the construction of building and other engineering projects in the state. Over at Jerasia Capital Bhd, the Practice Note 17 apparel manufacturer and fashion retailer, Yee Jia Cheng briefly ceased as a substantial shareholder after disposing of 740,000 shares on April 14. Prior to that, he held 4.23 million shares, or a 5.156% stake, in the company. Four days later, Yee re-emerged as a substantial shareholder, on April 18, after acquiring 1.26 million shares, increasing his holding to 4.75 million shares, or a 5.786% stake, as at April 22. The transacted price was not disclosed, but the counter closed at five sen on the open market on April 18. Meanwhile, Gan Lock Yong @ Gan Choon Hur ceased to be a substantial shareholder of FCW Holdings Bhd, after disposing of two million shares, or a 0.8% stake, in the property development and contract manufacturing outfit in an off-market deal on April 20. Prior to the disposal, Gan held a 5.64% stake in the company. Gan emerged as a substantial shareholder of FCW in November 2013 after acquiring 3.32 million shares in the company and increasing his holding to 14.11 million shares, or a 7.24% stake. FCW is controlled by businessman Tan Sri Robert Tan Hua Choon, who has 30.61% equity interest in the company. FCW shares last closed at RM1.05, giving the company a market valuation of RM262.49 million. Shares in Bina Darulaman Bhd continued to fall during the week in review. They reached a multi-year high of 87 sen on March 11 and, since then, the stock has been falling to close at 41 sen last Tuesday, giving the Kedah-based property and construction outfit a market capitalisation of RM114.09 million. The stock is down 37.7% year to date (YTD). Jingshi Holdings (M) Sdn Bhd, a little-known Penang firm incorporated in March last year, ceased to be a substantial shareholder of Bina Darulaman after it disposed of 10.3 million shares, or a 3.39% stake, on the open market. Jingshi surfaced as a substantial shareholder after acquiring 15.88 million shares in the company in January, increasing its holding to 15.88 million shares, or a 5.225% stake. The share price of industrial paper bag and paper egg tray maker KYM Holdings Bhd climbed 8.5% to 51 sen on April 22, from 47 sen on April 18. The stock has gained 39.47% YTD to close at 53 sen last Tuesday, for a market capitalisation of RM78.66 million. West River Capital Sdn Bhd, which emerged as a substantial shareholder of KYM last August, has been mopping up more shares in the company since then. It held 10.8 million shares, or a 7.205% stake, as at April 22. West River Capital is the private vehicle of KYM executive director Datuk Lim Kheng Yew and his son Lim Tze Thean, who is executive director and CEO of the company. 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/675747 | Climate And Environmental Governance: Building a modern climate partnership between the UK and Malaysia | English | This article first appeared in Forum, The Edge Malaysia Weekly on July 24, 2023 - July 30, 2023 I have been extremely privileged to have seen some of the wildlife of this megadiverse country up close, and I have many memories to take with me back to the UK: a nesting hornbill in Terengganu; a fleeting glimpse of a clouded leopard in the Danum Valley; and the wonder of the bats of the Mulu caves. As I conclude my four years as British High Commissioner to Malaysia, I want to reflect on how climate action has been a central theme of my service here. Nature and the environment are not new parts of the relationship between the UK and Malaysia. The coronation of His Majesty King Charles III in May will have recalled memories in Malaysia of his visits to Sarawak and Royal Belum State Park in Perak, experiencing some of Malaysia’s unique flora and fauna, and meeting the people working hard to protect them. Climate action is also a central feature of the UK’s modern partnership with Malaysia. It will continue to be so in the years and decades to come, as we urgently work together on our shared goal to keep global warming to 1.5°C and to halt and reverse nature loss. I am delighted that Malaysia has contributed to these global goals. At the 2021 COP26 conference in Glasgow, we saw over 90% of the world economy — including Malaysia — make commitments to net zero goals. Over 140 countries, including Malaysia, endorsed the Glasgow Leaders’ Declaration on Forests and Land Use, committing to halt and reverse deforestation by 2030. Last month’s Global Forest Watch report highlights Malaysia among the countries that have seen the most progress in reducing tree cover loss over the past three years. To support implementation of these goals, British and Malaysian ministers signed a Climate Partnership in June 2022. This set out a shared commitment to work together on climate, and we have certainly been busy in the year since: the UK has supported technical work by the Natural Resources, Environment and Climate Change ministry (NRECC) to inform its decision-making on carbon markets, developing land-use data and climate legislation — all meant to contribute to a stronger Malaysian climate policy framework. The UK has been one of the largest contributors to the Green Climate Fund, and I’m pleased that Malaysia is tapping into the GCF to develop its national adaptation plan. The energy transition has been at the centre of our conversation. In May this year, we welcomed NRECC Minister Nik Nazmi Nik Ahmad to the UK, working together in areas such as how to increase grid capacity to distribute renewables and reshaping incentives for investment in the transition. Every country faces these challenges and we will continue to cooperate with others in addressing them. The energy transition is not a luxury; it is now an integral part of the economic relationship between our two countries. When British companies look to invest internationally, how they will meet their environmental, social and governance (ESG) and net zero requirements is a core concern, especially access to clean energy to power their products and services. British companies such as Shell and Storegga are developing partnerships on carbon capture and storage (CCS) in Malaysia, while Malaysian companies such as Tenaga Nasional Bhd are investing in UK solar and both onshore and offshore wind. Minister Nik Nazmi visited one such floating offshore wind array off the Northumberland coast. These themes were further vividly illustrated in the UK-Malaysia Clean Growth Handbook, newly launched in May by Economy Minister Rafizi Ramli and me; to present further prospects for collaboration in clean growth sectors between our two countries. Last month’s EnergyAsia conference organised by Petroliam Nasional Bhd demonstrated that the oil and gas sector’s transition will create opportunities for new technologies such as CCS and hydrogen to decarbonise both our economies. Our climate relationship extends to Malaysia’s territories, states and cities. On my visits across Sabah and Sarawak and Peninsular Malaysia, I have had the opportunity to see projects that UK technical assistance has catalysed, contributing to a just transition and addressing gender inclusion — from micro-hydro that can bring energy access to rural Sabah to integrating sustainable mobility options into urban areas such as Melaka’s historic core and the Iskandar Malaysia region in Johor. Our international climate finance has supported both Sarawak and Johor to develop their own green growth strategies. Acting on climate and the environment has also been a recurring subject in my conversations with young Malaysians. I have seen this trend among the dozens of talented Malaysians who travel to the UK each year for postgraduate study as Chevening Scholars. Many have shared how their desire to pursue subjects as varied as public policy, engineering, finance and management are motivated by a passion for responding to climate change. Indeed, the inaugural Malaysia Climate Finance Summit this month was co-hosted by the Perdana Fellows Alumni Association and Chevening. In my final weeks in Malaysia, this activity has continued apace. Experts from the independent UK Climate Change Committee (CCC) have visited NRECC officials to share their experience with the UK Climate Change Act. A strong legal commitment has been the driving force behind the UK’s own decarbonisation progress, seeing us cut emissions while growing our economy. Equally important has been establishing institutions that provide independent scrutiny and monitoring of climate progress, in the form of the CCC, as its recent report robustly demonstrates. This will inform the ministry’s development of Malaysia’s own climate legislation, which successive governments have identified as a critical component of Malaysia’s climate governance. I will keenly observe its progress from afar. I leave Malaysia encouraged by this growing momentum for climate action. While I sadly will not be able to directly witness the ambitions to be unveiled in the forthcoming National Energy Transition Road Map and New Industrial Master Plan or what Malaysia will bring to COP28, I know my successor will be equally keen to maintain and build upon this partnership between the UK and Malaysia for a clean, climate-resilient world. Charles Hay is the British High Commissioner to Malaysia. This column is part of a series coordinated by Climate Governance Malaysia, the national chapter of the World Economic Forum’s Climate Governance Initiative (CGI). The CGI is an effort to support boards of directors in discharging their duty of care as long-term stewards of the companies they oversee, specifically to ensure that climate risks and opportunities are adequately addressed. 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/670821 | Silvio Berlusconi, former Italian prime minister and media mogul, dies at 86 | English | MILAN (June 12): Silvio Berlusconi, the billionaire media mogul and former Italian prime minister who transformed the nation's politics with polarising policies and often alarmed his allies with his brazen remarks, died on Monday (June 12) aged 86. Berlusconi, Italy's longest-serving premier who counted Russian President Vladimir Putin as a friend and gained notoriety for his "bunga bunga" sex parties, had suffered from leukaemia and recently developed a lung infection. He died at Milan's San Raffaele hospital, where he was admitted on Friday. Four of his five children and his brother Paolo were at his bedside, ANSA reported shortly before his death was announced. A state funeral will be held in Milan on Wednesday. Backed by huge wealth and a media, real estate and football empire, Berlusconi launched into politics in 1994, upending traditional parties and becoming premier. Another businessman, Donald Trump, would mirror that approach in the United States two decades later. Berlusconi's Forza Italia party is now a junior partner in Prime Minister Giorgia Meloni's right-wing coalition, and although he himself did not have a role in government, his death may bring fresh realignments in Italian politics. His business empire also faces an uncertain future. He never publicly indicated who would take full charge of his MFE company following his death, even though his eldest daughter Marina is expected to play a prominent role. Berlusconi's passing was mourned by political allies and rivals at home and leaders abroad, including Putin who said he was "a true friend. I have always sincerely admired his wisdom, his ability to make balanced, far-sighted decisions even in the most difficult situations." That relationship was one of many from Berlusconi's colourful public and private life that caused a headache for allies and fodder for his foes. Berlusconi refused to blame Putin for the 2022 invasion of Ukraine, saying Moscow only wanted to put "decent people" in charge. When Meloni was visiting Kyiv this year, she insisted Rome backs Ukraine regardless of remarks by any individuals. On Monday, she said: "We fought, won, lost many battles with him, and also for him we will bring home the goals that we had jointly set ourselves. Farewell Silvio." Enrico Letta, a former centre-left premier, wrote on Twitter: "Berlusconi made the history of our country. His death marks one of those moments in which everyone, whether or not they backed his choices, feel affected." Another former premier Mario Draghi, a non-partisan figure and one-time head of the European Central Bank, said Berlusconi "transformed politics and was loved by millions of Italians for his humanity and charisma." Shares in MFE's A- and B-shares jumped by as much as 10% after Berlusconi's death was reported, with traders on the Milan bourse saying it could pave the way for the company to be sold or merged with a rival. After building a real estate, football and television empire in the 1970s and 1980s, Berlusconi threw himself into politics, becoming prime minister four times — in 1994-5, 2001-5, 2005-6 and 2008-11 — despite multiple legal scandals. When he last stepped down in 2011, Italy was close to a Greek-style debt crisis and his own reputation sullied by allegations that he had hosted "bunga bunga" sex parties with underage women, something he denied. He was acquitted on appeal on all charges related to the parties, but he was convicted for tax fraud in 2013, leading to a five-year ban on holding public office. Despite his health woes and the relentless court battles, Berlusconi refused to relinquish control of Forza Italia and returned to frontline politics, winning a seat in the European Parliament in 2019 and in the Italian Senate last year. Perennially suntanned and vigorously promoted by his own media companies, Berlusconi brought his great skills as a salesman and communicator to the staid world of politics, offering a bright, optimistic outlook that voters lapped up. His sense of humour often landed him in trouble, most recently in December when he told players of his Monza soccer team he would bring them "a bus of whores" if they beat a top Serie A rival. They went on to win. Berlusconi is survived by his 33-year-old partner Marta Fascina, whom he called his wife despite not marrying her, two ex-spouses, five children, more than a dozen grandchildren and one great grandson. |
https://theedgemalaysia.com/node/606691 | Hartalega’s target prices, ratings suffer on lower ASPs, one-off prosperity tax | English | KUALA LUMPUR (Feb 9): Some equity analysts have lowered their target prices (TPs) for Hartalega Holdings Bhd while others downgraded their ratings as average selling prices (ASPs) for gloves are expected to continue declining, coupled with the one-off prosperity tax from Budget 2022. This came after the glove maker reported a 74.6% drop in net profit to RM259.06 million in the third quarter ended Dec 31, 2021 (3QFY22), from RM1 billion a year ago, due to lower ASPs and glove sales volume. Quarterly revenue fell 52.8% to RM1.01 billion from RM2.13 billion. Hartalega's net profit rose 94.3% to RM3.46 billion in the nine months ended Dec 31, 2021 (9MFY22) from RM1.77 billion, while revenue climbed 57.4% to RM6.92 billion from RM4.4 billion a year ago. Kenanga Research said the group's 9MFY22 profit after tax and minority interest (PATAMI) was below the research house's expectation. With ASPs no longer lofty, the research house said expectations for disappointment in subsequent quarters are expected to be capped. “9MFY22 PATAMI of RM3,433 million (+94% y-o-y) came in below expectations, at 91%/96% of our/consensus full-year forecasts. The variance is due to the anticipated one-off prosperity tax in FY22 from Budget 2022. “We lowered our FY22E net profit by 6% after imputing [a] higher effective tax rate of 30%, compared to 26% previously, taking into account the one-off prosperity tax in Budget 2022. “We [also] downgrade our FY23E net profit by 8% taking into account: ASP reduced from US$27 (RM112.99) to US$26 per 1,000 pieces and EBITDA [earnings before interest, taxes, depreciation and amortisation] margin from 23% to 22%,” said its analyst Raymond Choo Ping Khoon in a note on Wednesday (Feb 9). Kenanga reiterated its "outperform" call for Hartalega, but trimmed its TP to RM7 from RM7.50 based on unchanged 17 times calendar year 2022 (CY2022) revised earnings per share (at discount to five-year pre-Covid forward historical mean of 26-28 times). Hong Leong Investment Bank (HLIB) Research left its FY22 forecasts unchanged at RM3.24 billion, but cut its FY23-FY24 forecasts by 10-36%. Following the earnings restatement, HLIB has lowered its TP to RM5.05 from RM6.10 but still rated "hold" for the stock. “ASPs are expected to continue trending lower and management expects the ASP for 4QFY22 to be at circa US$28 level. Margins should also continue to narrow, given the inflationary pressures (i.e. higher energy and labour costs), and could potentially dip below that of pre-Covid levels,” according to HLIB analyst Sophie Chua Siu Li. JF Apex Securities Research also concurred with the view, adding that the glove sector is experiencing a paradigm shift given oversupply conditions stemming from Chinese glove makers. “We understand that Chinese manufacturers’ ASP is about 7% lower than Harta’s ASP on average. Chinese manufacturers have received rising orders from overseas markets, benefiting from cheaper glove prices offerings. Additionally, the group is also experiencing shortage of foreign workers due to closure of international borders. Furthermore, raw material costs are still sticky thus hampering the group’s operating margin moving forward,” said its analyst Nursuhaiza Hashim. The research house tweaked down its FY22 and FY23 net profit estimates by 7.5% and 52.6% to RM3.7 billion and RM900 million respectively, by lowering its margin assumption coupled with lower sales volume due to delay in commencement of NGC1.5 (Plant 8-11) to fourth quarter of 2022. “We maintain ‘hold’ [call] with a lower target price of RM5.05 (from RM5.66 previously) following our earnings downgrade. Our valuation is now pegged at 19.4x FY23 EPS of 0.26 sen (0.56 sen previously), which is below its mean PE of 33x but higher than -1 standard deviation of mean PE of 14.2x,” said Nursuhaiza. CGS-CIMB Research has downgraded Hartalega to "hold" from "add" previously. It also cut its TP to RM5.80 from RM6.40. “While we like Hartalega for its leading manufacturing technology in the nitrile space among peers, strong balance sheet (net cash of RM2.8 billion), and higher margins versus peers (past five-year average), its earnings prospects are likely to remain weak in the near term with limited upside potential,” said CGS-CIMB analyst Walter Aw. MIDF Research downgraded Hartalega to "neutral" from "buy" with a revised TP of RM5.88 (from RM8.03). “This is based on a PER of 21.0x which is its two-year historical average pegged to a revised FY23F EPS of 28 sen. “The group has guided that prosperity tax adjustment would have an impact on earnings in the next quarter. However, the loss in earnings is forecasted to be mitigated by the stabilisation of nitrile rubber glove ASP in coming months. We revised our earnings estimates for FY23F at RM956 million to reflect the higher social compliance costs and conversion cost of raw materials as highlighted by the management,” said MIDF. Hartalega led the top losers on Bursa Malaysia as at the time of writing on Wednesday. Its share price fell 6.64% to RM5.20, with a market capitalisation of RM17.82 billion. The stock has depreciated 74.36% from its peak of RM20.28 on July 30, 2020. Read also:
Hartalega declares 14.8 sen dividend for 3Q despite net profit decline of 74.6% |
https://theedgemalaysia.com/node/656756 | Heineken Malaysia declares 98 sen dividend in 4Q as FY2022 revenue, profit hit fresh record | English | KUALA LUMPUR (Feb 24): Heineken Malaysia Bhd's shareholders can look forward to dividends of 98 sen per share, after the brewer posted a 9.17% increase in net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022). In a Bursa Malaysia filing, Heineken posted a net profit of RM104.6 million, from RM95.85 million in 4QFY2021, as it booked a fresh record in quarterly revenue and efficiency gains through cost and value initiatives. Earnings per share increased to 34.64 sen in 4QFY2022, from 31.73 sen a year ago. The board proposed a single tier final dividend of 98 sen per share — higher than the 81 sen per share paid for the whole of last year — bringing total dividend for FY2022 to RM1.38 per share. Revenue for the quarter grew 14.35% to a record RM791.69 million, from RM692.34 million a year ago, mainly driven by a boost in sales volume from increased on-trade consumption and earlier festive sell-in for Chinese New Year 2023. Its previous record quarterly revenue was booked just a quarter ago, in 3QFY2022, at RM720.47 million when it made RM108.74 million in net profit. With three strong quarters with net profit above RM100 million in FY2022, its full-year results came in at a record RM412.82 million, 68.03% higher than RM245.68 million posted in FY2021. Annual revenue jumped 44.24% to a fresh high of RM2.86 billion, from RM1.98 billion. It noted the spike in annual revenue growth in FY2022 was mainly due to lower comparison against FY2021 as the brewery was closed for 11 weeks due to the Movement Control Order. It also indicated that the group's performance recovered above pre-pandemic levels with reopening of on-trade and entertainment channels and Malaysia’s international borders. On prospects, Heineken expects the business environment in 2023 to remain challenging despite encouraging business recovery in 4Q2022 following the full re-opening of on-trade business. It cited continued pressure from global supply chain disruptions, recessionary pressures from leading economies, rising input costs, currency fluctuation and rising inflation that could impact consumer purchasing power. Meanwhile, managing director Roland Bala lauded the government for not increasing excise duty on beer during the tabling of the revised Budget 2023 on Friday evening (Feb 24). “We welcome the stance taken by the government not to increase the excise duties on beer in the latest Budget 2023 review announced today as any hike in excise rates will further fuel illicit alcohol demand. “As it is, Malaysia’s excise rate for beer and stout ranks second highest in the world. Illegal trade and smuggling have caused the government to incur tax revenue losses and pose health hazards to consumers with unregulated illicit alcohol,” Roland said. Heineken Malaysia's share price settled 48 sen or 1.78% higher at RM27.48, giving the group a market capitalisation of RM8.3 billion. |
https://theedgemalaysia.com/node/657376 | 市场情绪持续谨慎 马股逆市收低 | English | （吉隆坡1日讯）尽管区域市场情绪改善，但本地市场购兴依然温和且情绪持续谨慎，马股再次收低。 闭市时，富时隆综指跌3.99点，收于1450.20点。 综指今日开市报1454.38点，较昨日收盘的1454.19点，微升0.19点。 市场广度负面，下跌股达528只、上升股436只，另有358只无起落、881只无交易，以及20只暂停交易。 成交量32亿1000万股，值20亿4000万令吉，低于昨日的46亿3000万股和39亿5000万令吉。 乐天交易股票研究副总裁唐栢麟指出，中国工厂活动数据乐观，但未能提振整体市场表现，因国内情绪依然谨慎。 与此同时，在中国2月制造业采购经理人指数（PMI）弹升至52.6，自2012年4月以来最高后，亚洲股市大多收高，尤其是中国和香港。 他向马新社说：“今日跌势似乎不合理，因此我们认为逢低买盘将很快出现。” “此外，综指接近超卖水平，鉴于估值较低，因而为投资者提供在具吸引力的价位积累股票的机会。” 重量级股中，国家能源（Tenaga Nasional Bhd）跌9仙，收于9.28令吉、IHH医疗集团（IHH Healthcare Bhd）降8仙，至5.71令吉、亚通（Axiata Group Bhd）减4仙，挂3.13令吉、马银行（Malayan Banking Bhd）下滑2仙，报8.78令吉，以及MISC Bhd挫13仙，以7.43令吉挂收。 明讯（Maxis Bhd）则扬5仙，报3.96令吉，以及大众银行（Public Bank bhd）微升1仙，挂4.14令吉。 至于热门股，Icon Offshore Bhd挫3仙，至9仙、Velesto Energy Bhd则升0.5仙，报19.5仙，而MyEG服务（MY E.G. Services Bhd）和登高集团（Tanco Holdings Bhd）皆扬1.5仙，分别收于73.5仙和46.5仙。 （编译：陈慧珊） English version：Bursa goes down at the close, bucking regional trend |
https://theedgemalaysia.com/node/669476 | Tape recording shows Trump acknowledging he kept classified document on Iran — CNN | English | WASHINGTON (June 1): Federal prosecutors have a 2021 audio recording of former president Donald Trump acknowledging he kept a classified Pentagon document about a possible attack on Iran after leaving the White House, CNN reported on Wednesday (May 31). CNN did not listen to the recording but cited unidentified multiple sources describing it. Reuters was not able to confirm the report. The recording shows Trump, who is seeking the 2024 Republican presidential nomination, understood he retained classified material after he left the White House in 2021, according to the cable television network. Trump’s remarks indicated he would like to share the information but was aware of the limitations on his ability to declassify documents after leaving office, two sources told CNN. Trump has denied wrongdoing. A Trump representative would not comment on the report of the recording or on the specific remarks attributed to Trump and called the investigation politically motivated. "Leaks from radical partisans behind this political persecution are designed to inflame tensions and continue the media’s harassment of President Trump and his supporters," Trump spokesperson Steven Cheung said on Wednesday. Peter Carr, the spokesperson for Special Counsel Jack Smith's office at the Justice Department, declined to comment. The Justice Department is investigating whether Trump broke the law by retaining US government records, some marked as top secret, after leaving office in January 2021. In August, the department disclosed that it was investigating Trump for removing White House records because it believed he illegally held documents including some involving intelligence-gathering and clandestine human sources — among America's most closely held secrets. Smith's probe includes whether Trump or his associates obstructed the Justice Department's probe into his retention of thousands of government records, about 300 of which were marked classified. The special counsel is also investigating efforts to overturn Trump's 2020 election loss that culminated in the deadly Jan 6, 2021 attack on the US Capitol. |
https://theedgemalaysia.com/node/651698 | 前进控股拟私配 为大型太阳能项目筹资 | English | （吉隆坡13日讯）前进控股（Advancecon Holdings Bhd）建议私下配售发行股本的至多20%，以筹集高达2185万令吉，为第四大型太阳能项目（LSS4）@MEnTARI（LSS4 @ MEnTARI）提供资金。 这家土木工程与土方工程服务商今日向大马交易所报备，将向待定的第三方投资者发行高达9667万股，配售价稍后确定。 根据每股22.6仙的参阅配售价，较截至1月9日的5天成交量加权平均价（25.11仙）折价约10%，该公司预计筹集2185万令吉。 所筹资金中，2174万令吉将用于LSS4项目的太阳能光伏发电设施，而余下的11万令吉则支付这项企业活动的费用。 前进控股表示，间接独资子公司LSS TPG私人有限公司于2021年8月18日，与国家能源（Tenaga Nasional Bhd）签署一项购电协议，设计、建设、拥有、营运与维护位于雪兰莪瓜拉冷岳的26兆瓦太阳能光伏电站。 “截至1月9日，太阳能电站项目还没开工。建筑工程定于3月开始，预计需时10个月完成，并在今年第四季投入运营。 该公司预计，私配计划将在首季完成。 该股今日跌0.5仙或1.96%，报25仙，市值为1亿2319万令吉。 （编译：陈慧珊） English version：Advancecon plans private placement to fund large-scale solar project |
https://theedgemalaysia.com/node/620311 | Asia’s two richest men reap windfall from surging oil, coal | English | (May 18): Gautam Adani and Mukesh Ambani are profiting from a surge in global commodity prices triggered by Russia’s invasion of Ukraine, burnishing their fossil-fuel credentials even as Asia’s richest men publicly push their pivots toward greener energy. With coal prices skyrocketing to a record, Adani’s conglomerate is expanding a controversial mine in Australia to meet demand. Ambani’s Reliance Industries Ltd is snapping up distressed crude-oil cargoes at discounts to feed its refining complex, the biggest in the world. Reliance even deferred a scheduled maintenance of the facility to help churn out more diesel and gasoline, whose margins have shot up to touch a three-year high. The two Indian tycoons are stepping in at a time when many developed countries are scrambling for alternative sources of fuels as they try to back away from Russian supplies. This month, the Group of Seven most-industrialized nations pledged to ban imports of Russian oil. The disruption has also brought the focus back on the need for more coal, the dirtiest fossil the world has vowed to phase out to cut emissions. Though Adani, 59, and Ambani, 65, have unveiled a combined US$142 billion in green investments over the next few decades in a pivot away from coal and oil — the bedrock of their empires — they are also finding it hard to kick the fossil-fuel habit as the conflict stokes demand. Global coal demand is expected to rise to a record level in 2022 and stay there through 2024, according to the International Energy Agency. The war has created a tailwind for fossil fuel-based firms in India, said Chakri Lokapriya, managing director and chief investment officer at TCG Advisory Services Pvt in Mumbai. “The collateral damage is that fossil fuels will continue to play a vital role the next 20 years or more,” he said, adding that it was sufficient time to reap benefits from carbon-based investments. Representatives for Adani Group and Reliance Industries didn’t respond to an email requesting comments. Bullishness in coal prices helped flagship firm Adani Enterprises Ltd clock a 30% jump in profit for the three months ended March — the highest in six quarters — while surging prices of petroleum products aided Reliance, which posted one of its biggest quarterly profits ever. Shares of both Reliance and Adani Enterprises had soared 19% and 42% respectively between Feb 24, when the invasion began, and end of April, before a global stock rout wiped out some of those gains. Adani has added about US$25 billion to his wealth since the war started, taking his net worth to almost US$106 billion, according to the Bloomberg Billionaires Index. Ambani’s fortune swelled by almost US$8 billion to US$92.4 billion. It isn’t just these two Indian billionaires benefiting from the commodities surge. Others include US oil and gas tycoons Harold Hamm, Richard Kinder and Michael S Smith, and Indonesia’s Low Tuck Kwong, the boss of coal mining company PT Bayan Resources, who have all seen their wealth increase this year. Almost 60% of Reliance’s revenue comes from oil-refining and petrochemicals, the mainstay business founded by Ambani’s late father. Since inheriting it in 2002, Ambani has been reducing the conglomerate’s dependence on oil-refining by diversifying into retail, telecommunications and technology. India has bought millions of barrels of Urals crude in the spot market since the end of February, according to data compiled by Bloomberg. While flows of Russian oil into India aren’t sanctioned, the South Asian country has repeatedly said that those shipments are minuscule compared to Europe’s purchases and represent a tiny fraction of the country’s total consumption. They also provide some relief at a time when inflationary pressures are increasing. India’s consumer prices rose the most in eight years in April. “We have minimized feedstock cost by sourcing arbitrage barrels,” Reliance’s Joint Chief Financial Officer V. Srikanth told reporters on May 6, without providing details. “Overall demand drivers are very promising,” he said referring to the strong comeback in demand for fossil fuels. Refiners in India exported 3.37 million tons of diesel in March, the highest since April 2020, when overseas sales were a record 3.4 million tons as local demand plummeted during the Covid-19 lockdown, according to data on Petroleum Planning and Analysis Cell’s website. Gasoline exports reached a five-year high of 1.6 million tons. For first-generation entrepreneur Adani, coal is central to his empire. He has invested more than US$3 billion in coal mines in India, Australia and Indonesia. His Carmichael mine in Queensland, which has been a target of environmental activists including Greta Thunberg for years, started shipping the fuel only this year. In a May 4 earnings call, Adani Enterprises said it plans to raise the annual capacity of the Carmichael mine to 15 million tons in the year through March 2023, about 50% more than what its board approved for the first phase of the project. It plans to export as many as seven capesize cargoes a month, director Vinay Prakash said on the call. The “geopolitical situation” is expected to keep coal prices strong for now, but how long this lasts is “anyone’s guess,” Prakash told investors. |
https://theedgemalaysia.com/node/627116 | Oil markets in for bumpy ride in short term, says Rystad | English | KUALA LUMPUR (July 6): Rystad Energy said if a recession materialises and inflation continues to push prices for almost everything higher, oil demand is almost certain to fall, bringing prices with it. In an extraordinary market note on Tuesday (July 5), Rystad senior analyst Louise Dickson said West Texas Intermediate (WTI) and Brent fell more than 10%, with WTI dropping below US$100 (about RM442.40) per barrel for the first time since April 2022, a psychological sell-off level for many traders who are penciling in an economic downturn of some degree and a consequent imminent drop in oil demand. She said Tuesday’s market moves reflect what oil traders believe the market conditions will be in September, which could be weighed down by not only a seasonal demand slump but weaker consumer demand overall. “Inflationary forces and central bank intervention are stoking the fears of a recession and economic slowdown in major fuel-consuming economies. “Market players are slowly coming to terms with the prospect that this bull cycle, which has lasted more than two years, may be coming to an abrupt end,” she said. Dickson said that after two years of a global pandemic, this summer promised that pent-up savings would manifest in a spending boom, but recession fears are dashing those hopes. She said the risk of a downturn had investors — both financial and retail — preferring to hold onto cash as the recession, whether full-blown or technical, plays out. “Our real-time road and aviation demand tracking show a timid, but stable upward trend globally, but both industries are at risk. “Gasoline and diesel are at record-high prices, and the markets could soon see demand destruction as consumer elasticity turns negative,” she said. Dickson said the aviation industry had been in a negative spotlight lately as the industry faces significant logistical challenges, such as labour shortages, worker strikes, delayed maintenance and logistical issues sourcing parts. She said that to add salt to the industry’s wounds, jet fuel is in the same precarious position, and prices are soaring. “Flattish refinery runs trends out of Asia, China in particular, also signal that the expected uptick is still very much in formation and not a certainty. “The projected increase is dependent on the on-time capacity start-ups, governmental policy on Covid-19 lockdowns, and any ad hoc export quota limitations. “The demand signals are challenging to read as growth in demand after Covid-19 is mixed in with the impact and market reaction of an expected economic downturn,” she said. Dickson said the Russia-Ukraine war still impacts oil markets and is a crucial factor supporting high prices. She said if the war continues, it will only exacerbate the energy crisis and price inflation in Europe, which could slash oil demand in the year’s second half by 800,000 bpd. She said the supply-side pressure, in particular from outages in Libya, Ecuador and Nigeria, is not balancing out an ever-resilient Russia, which had shaken off the taboo in selling oil, with heavy discounts opening up new markets and bringing crude oil production closer and closer to pre-invasion volumes of 10 million bpd. “On the bearish side of the coin, a more accelerated trajectory towards an economic downturn and associated oil demand destruction of 1.3 million bpd in the remainder of 2022, paired with resilient Russian supply and OPEC+ raising production after September, could yield a reality that sees a not so soft landing towards US$55 per barrel by December 2022 versus our current base case of Brent finishing out the year at US$105 per barrel,” she said. |
https://theedgemalaysia.com/node/650007 | Oil set to end turbulent 2022 modestly higher | English | SINGAPORE (Dec 30): Oil prices edged up on Friday, on track for their second straight annual gains, although modest, in a stormy year marked by tight supplies because of the Ukraine war, a strong US dollar and weakening demand from the world's top crude importer, China. Brent crude futures rose 59 cents, or 0.7%, to US$84.05 a barrel by 0730 GMT, after settling down 1.2% in the previous session. Brent looked set to end the year with a gain of 8%, after jumping 50.2% in 2021. Prices had surged in March to a peak of US$139.13 a barrel, a level unseen since 2008, after Russia invaded Ukraine, sparking supply and energy security concerns. US West Texas Intermediate crude was at US$78.90, up 50 cents, or 0.6%, after closing 0.7% lower on Thursday. It is on track to rise 4.8% in 2022, following last year's gain of 55%. While an increase in year-end holiday travel and Russia's ban on crude and oil product sales are supportive of oil prices, supply tightness will be offset by declining consumption due to a deteriorating economic environment next year, said CMC Markets analyst Leon Li. "The global unemployment rate is expected to rise rapidly in 2023, restraining energy demand. So I think oil prices may fall to US$60 next year," he said. Oil prices cooled quickly in the second half of this year as central banks hiked interest rates to fight inflation, boosting the US dollar. That made dollar-denominated commodities a more costly investment for holders of other currencies. Also, China's zero-Covid restrictions, which were only eased this month, squashed oil demand recovery hopes for the world's No 2 consumer. While China is expected to slowly recover in 2023, its surge in Covid infections and global recession concerns are clouding the commodities demand outlook. "The recent easing of travel restrictions was expected to boost oil demand; however, the sharp increase in Covid cases in China has raised serious concerns over a potential global outbreak," said John Driscoll, director at consultancy JTD Energy Services. Countries such as Japan, South Korea and the US responded to China's surge by ordering mandatory Covid-19 tests for travellers from the country. A health data firm estimated that about 9,000 people are dying daily from Covid in China, as infections spread in the world's most populous nation. Looking ahead on supplies, Western sanctions will push Russia to divert more crude and refined products exports from Europe to Asia. In the US, output growth in top oil-producing states has slowed despite higher prices. Inflation, supply chain snags and economic uncertainty have led executives to lower their expectations, the latest survey by the Federal Reserve Bank of Dallas found. "This has been an extraordinary year for commodity markets, with supply risks leading to increased volatility and elevated prices," said ING analyst Ewa Manthey. "Next year is set to be another year of uncertainty, with plenty of volatility." |
https://theedgemalaysia.com/node/672480 | Oil markets shrug off Russian political turmoil | English | LONDON (June 26): Oil prices firmed slightly on Monday (June 26), with political instability from an aborted revolt by Russian mercenaries over the weekend viewed by the market as not posing an immediate threat to oil supply from one of the world's largest producers. Brent crude futures were up 47 cents, or 0.6%, at US$74.32 a barrel by 1217 GMT. US West Texas Intermediate crude (WTI) gained 36 cents, or 0.5%, to US$69.52. Both benchmarks gained as much as 1.3% in early Asian trade. A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern Russian city of Rostov under a deal that halted their rapid advance on the capital. However, the challenge has raised questions about President Vladimir Putin's grip on power and some concern about possible disruption of Russian oil supply. "There's not much geopolitical impact on the market now. It is dominated by economics, not geopolitics," Daniel Yergin, vice chairman of S&P Global, said on the sidelines of an industry event on Monday. Both Brent and WTI prices fell by about 3.6% last week on worries that further interest rate hikes by the US Federal Reserve could sap oil demand at a time when China's economic recovery has also disappointed investors. "China's economic growth has been a nightmare for commodity markets, particularly in oil and industrial metals," CMC Markets analyst Tina Teng said in a note. Goldman Sachs analysts said markets could price in a moderately higher probability of domestic volatility in Russia leading to supply disruptions, adding that the impact could be limited because spot fundamentals have not changed. In an early indicator of future US supply, the number of oil and natural gas rigs operated by US energy companies fell for an eighth week in a row for the first time since July 2020, a closely followed report showed on Friday. |
https://theedgemalaysia.com/node/630677 | Dewan Rakyat refers tobacco control Bill to Parliament's Special Select Committee | English | KUALA LUMPUR (Aug 2): The Dewan Rakyat on Tuesday (Aug 2) approved the proposal for the Control of Tobacco Products and Smoking Bill 2022 to be referred to the Parliament's Special Select Committee (PSSC). Lawmakers unanimously approved to refer the Bill, which is currently at the second reading stage, after it was debated by 12 Members of Parliament (MPs) over two days from Monday (Aug 1). Health Minister Khairy Jamaluddin, who wrapped the session, resubmitted the motion of the Bill and announced that 13 MPs from the government and the opposition bloc will be members of the PSSC, which will make recommendations towards fine-tuning the Bill. Besides Khairy acting as the PSSC chairman, other members from the government bloc include Baling MP Datuk Seri Abdul Azeez Abdul Rahim, Parit MP Datuk Mohd Nizar Zakaria, Pengerang MP Datuk Seri Azalina Othman, Masjid Tanah MP Datuk Mas Ermieyati Samsudin, Pasir Mas MP Ahmad Fadhli Shaari and Sibuti MP Lukanisman Awang Sauni. Bandar Kuching MP Dr Kelvin Yii, Sungai Buloh MP Sivarasa Rasiah, Kuala Selangor MP Datuk Seri Dr Dzulkefly Ahmad, Tuaran MP Datuk Seri Wilfred Madius Tangau, Penampang MP Datuk Ignatius Darell Leiking and Jerlun MP Datuk Seri Mukhriz Mahathir from the opposition bloc make up the rest of the PSSC members. Khairy explained that the PSSC may invite any party such as MPs, legal and constitutional experts, non-governmental organisations and civil society as well as other individuals to attend PSSC meetings from time to time. "This is to examine Section 9 (enforcement) in the Bill and suggest any improvements if necessary, subject to the law in force, besides examining the clauses relating to penalties for offences in the Bill and suggest any improvements if necessary. "Also to examine the suggestions for improvements raised by members of the Dewan Rakyat in the debate at the policy level of the Bill, as well as the recommendations that have been submitted by PSSC on Health, Science and Innovation, as well as women and children affairs and social development, in relation to this Bill," he said. Khairy also said that the PSSC will have to prepare a statement containing proposed improvements to the Bill for the purpose of regulating tobacco products, cigarette ingredients, tobacco substitute products or smoking devices within one month. He added that the PSSC can extend the review period, if necessary, but must not exceed the date of the first day of the upcoming third session of the fifth term of the 14th Parliament session ahead. The Rembau MP earlier tabled the Bill for its first reading in Parliament on Wednesday (July 27) and for a second reading on Monday (Aug 1). Despite Khairy's concessions to make four amendments to the Control of Tobacco Products and Smoking Bill 2022, the PSSC on Health, Science and Innovation has called for the Bill to be extensively reviewed by a Special Select Committee to ensure safeguards are implemented to prevent enforcement abuse. In a statement on Tuesday (Aug 2), PSSC on Health, Science and Innovation President Yii said that while Khairy has been open and progressive in accepting the committee's recommendations, he noted that it is still crucial for all clauses in the Bill to be reviewed in order to ensure that they reflect the amendments agreed to by the Health Minister. "A person addicted to nicotine, whether a smoker or vaper, whether in the GEG (generational endgame) generation or not, has the right to be treated equally under the law, with compassion, and dignity," he said. Yii said that in the context of Malaysia, there are real concerns over gaps in implementations, and therefore possible loopholes and overreaching enforcement powers. "These include concerns over provisions in the Bill that grant enforcement officers the powers to enter any premises, seize baggage, stop, search and seize conveyance as well [as] powers to search and seize without warrant, including a body search by officers of [the] same gender just [because of] suspicion of possession. "This is disproportionate and open to abuse especially when there is inconsistent enforcement from different agencies," he explained. Yii stressed that the request for a review is not a bid to further delay the Bill, as he pointed out that implementation of the GEG has already been agreed to be delayed for two years, and therefore should not be affected. "What is more important is to make sure we come out with a 'good law' and address all the concerns to get proper buy-in to increase compliance and ensure it achieves its intended target. "I strongly believe the committee can make a commitment to work on the Bill extensively, and target for it [to] be one of [the] first agenda through agreement of the government in the upcoming Parliament session scheduled in October," he said. For more Parliament stories, click here. |
https://theedgemalaysia.com/node/674867 | Elevate Your Journey with Malaysia Airlines' Exclusive Business Class Offer | English | For the discerning business traveler, there are few things more valuable than comfort, flexibility, and exclusivity. These qualities form the foundation of Malaysia Airlines' Business Class experience. This July, the airline is set to raise the bar on high-end travel once again with an unmissable travel deal that pushes the boundaries of luxury and convenience. From July 7th to July 24th, 2023, Malaysia Airlines will be offering up to 45% off on Business Class fares, for both International and Domestic flights. The travel period extends from July 7th until December 15th, 2023, allowing passengers ample opportunity to plan their trips to desired destinations. Whether it's for a crucial business meeting in Perth or Adelaide, a much-needed break in Bintulu or Sibu, or a shopping spree in bustling Hong Kong, Malaysia Airlines' Business Class guarantees an exceptional journey from start to finish. The Business Class experience of Malaysia Airlines is crafted meticulously to meet and surpass the expectations of its passengers. In addition to the spacious cabins and lie-flat seats, passengers are pampered with gourmet dining, access to Golden Lounges, priority boarding, extra baggage allowance, and a host of other benefits. And with the enhanced safety protocols, passengers can fly with peace of mind knowing that their wellbeing is the topmost priority. In a bid to offer even more value to its passengers, Malaysia Airlines is providing double Enrich Points and Elite Points for those who choose to fly Business Class during the promotional period. This means members can fast track their tier status while accruing points that can be redeemed for flights, upgrades, and other exclusive benefits. To enrich this travel deal, the airline is focusing on a selection of key destinations including domestic hotspots like Bintulu, Sibu, Kuantan, Alor Setar, Kuala Terengganu, and Johor Bahru. Internationally, Perth, Adelaide, Hong Kong, and Medan take center stage. Whether it's for business or pleasure, these destinations offer a wide range of attractions and experiences, all awaiting exploration. To ensure passengers remain updated on this deal and other exciting offers, Malaysia Airlines maintains an active presence across multiple digital platforms. You can visit the official Malaysia Airlines website for comprehensive information about the airline's services and offers. This Business Class deal is designed with the needs and aspirations of the modern business traveler in mind. If you're a professional looking for a leisure trip with all the comforts of Business Class or a business partner seeking an exclusive travel experience, this deal by Malaysia Airlines provides the perfect opportunity to elevate your journey. Book your ticket today and experience the true essence of luxurious travel. |
https://theedgemalaysia.com/node/677287 | France's AFP sues Musk's X social media, cites refusal to discuss payment for news | English | (Aug 3): Agence France-Presse (AFP) said on Wednesday (Aug 2) it filed a lawsuit in Paris against Elon Musk's X social media platform, formerly known as Twitter, accusing it of failing to discuss potential payment for the distribution of the news agency's content. France in 2019 enacted a copyright rule dubbed "neighbouring rights" that compels large online platforms to open talks with publishers seeking remuneration for news. "Agence France-Presse has expressed its concerns over the clear refusal from Twitter (recently rebranded as ‘X’) to enter into discussions regarding the implementation of neighbouring rights for the press," the news agency said in a statement. Musk criticised AFP's move in an X social media post. "This is bizarre. They want us to pay *them* for traffic to their site where they make advertising revenue and we don't!?" he said. X did not respond to a request for comment. In 2021, France's antitrust watchdog fined Alphabet's Google €500 million (RM2.4 billion) for failing to comply with orders on how to conduct talks with the country's news publishers. Since then, Google has committed to resolving the dispute and has announced deals with AFP and several other leading French news organisations. Meta Platforms' Facebook too has signed agreements with some French publishers. |
https://theedgemalaysia.com/node/677632 | Frankly Speaking: Keep the best for last | English | This article first appeared in The Edge Malaysia Weekly on August 7, 2023 - August 13, 2023 The growing divergence in the value of industrial land between Penang Island and Seberang Perai is hard to miss. There is no end to developers prepared to undertake reclamation work for industrial, commercial and residential development on the island even though land prices are significantly higher there than on the mainland. In the latest development, Penang Development Corporation (PDC) awarded Titijaya Land Bhd the mandate to undertake the reclamation of 20.8 acres of seafront area in Bayan Lepas. Titijaya will incur an estimated reclamation cost of RM72.5 million, which is about RM81 per sq ft. In return, it will get 45% of the net developable land, or about seven acres, with PDC getting the rest as its portion of the reclamation agreement. Based on the current valuation of an adjoining land in Bayan Lepas, the value of Titijaya’s reclaimed land is easily about RM10 million per acre. Just across the sea in Batu Kawan, developed industrial land with infrastructure comes up to less than RM3.5 million per acre. There is ample land for the development of industrial parks in Batu Kawan, which has a direct connection to the Bayan Lepas Airport via the Second Penang Bridge. The development stretches from Batu Kawan right down along the coast to Nibong Tebal and Parit Buntar, which borders Perak. Connectivity to the island is relatively good, even more so with the underutilised Second Penang Bridge where traffic is low. Based on the current trend, the value of land on the island will grow significantly higher over time. That being the case, shouldn’t any reclamation works be shelved for the longer term where a significantly higher value can be derived? The best parcels of land on Penang Island, whether reclaimed or otherwise, should be monetised carefully over the longer term for better returns. 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/675680 | Sersol’s Justin Lim denies receiving any notice from MACC | English | KUALA LUMPUR (July 23): Sersol Bhd CEO Datuk Justin Lim Hwa Tat has denied receiving any notice from the Malaysian Anti-Corruption Commission (MACC), requiring his attendance for any statement recording. In a statement on Saturday (July 22), Lim said there had been no attempts by the MACC to serve the notice at his place of work or residence. “Furthermore, I have not been approached by any officers from MACC, seeking my assistance in relation to the investigations mentioned in the publication,” he said after the MACC sought the public's help to locate Lim to assist in an investigation. In a statement on July 12, the MACC said that the 47-year-old Lim’s last known address was 54, Jalan SS 22/27 Damansara Jaya, 47400 Petaling Jaya, Selangor. Lim sits on the board of several public listed companies. He stressed that the statement by the MACC, which portrayed him as a wanted individual for criminal investigations, was wholly inaccurate and lacked any foundation. “Such a publication could give the false impression that I am evading or avoiding cooperation with the authorities, which is certainly not the case. “To set the record straight, I want to clarify that I have been away on business since early February 2023. “Despite my absence, I have every intention of fully cooperating with the authorities in any matter where my assistance is required,” he said. Lim added that he has appointed Messrs Gobind Singh Deo & Co to represent him as his legal representative during the course of these investigations. Meanwhile, Sersol issued a misconduct notice to Lim and demanded that he return to the office within one week. In a filing with Bursa Malaysia last Friday (July 21), Sersol also instructed Lim, who has been "overseas since February 2023 for purpose and reason only known to him", to immediately give a written response to the board. “[The board] instructed the CEO to update the entire board in writing on what he had been doing in detail for and on behalf of the company on a weekly basis. After the above, the company issued a misconduct notice dated July 20 to the CEO and [is] awaiting his response,” the chemical manufacturer said. Read also:
Sersol issues misconduct notice on Justin Lim, demands his return to office within a week
MACC seeks public's help to track down Datuk Justin Lim
Sersol says MACC probe on CEO Justin Lim involves certain payments he authorised |
https://theedgemalaysia.com/node/631424 | 金务大及Litrak股东准售高速大道资产 | English | （吉隆坡8日讯）金务大（Gamuda Bhd）及Lingkaran Trans Kota Holdings Bhd（Litrak）获得股东放行，将高速大道资产脱售予Amanat Lebuhraya Rakyat（ALR）。 金务大表示，上述议程在股东特别大会上获得99%赞成票。 “已与ALR签署股份买卖协议，符合有条件要约函中的所有条件。” 金务大、Litrak及Kumpulan Perangsang Selangor Bhd（KPS）正以44亿7700万令吉，将4家巴生谷高速公路特许权控股公司出售给ALR。 这4家公司为Kesas Holdings Bhd、Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd（SPRINT）、Lingkaran Trans Kota Sdn Bhd及Projek Smart Holdings Sdn Bhd（SMART）。 金务大持有Kesas的70%股权，其余30%股权由Perbadanan Kemajuan Negeri Selangor（PKNS）持有。SMART是MMC Corp Bhd与金务大各持50%股权的联营公司。 至于SPRINT，Litrak持股50%，金务大和KPS分别持股30%和20%。同时，Litrak独资持有白蒲大道（LDP），而金务大持有Litrak的42.8%股权。因此，金务大在SPRINT的实际权益为51.4%。 截至周一休市，金务大起1仙或0.3%，至3.75令吉，市值达95亿8000万令吉，而Litrak则跌3仙或0.6%，报4.84令吉，市值为26亿1000万令吉。 KPS持平于71仙，市值为3亿8154万令吉。 （编译：魏素雯） English version：Gamuda, Litrak shareholders green-light sale of highway assets |
https://theedgemalaysia.com/node/622417 | Comintel’s white knight to take up a smaller stake following regularisation plan revision | English | KUALA LUMPUR (June 1): Comintel Corp Bhd said its white knight will subscribe to a smaller stake of 56.49% in the company from 72.47% envisioned previously, following a proposed revision to the regularisation plan announced by the company. Comintel, which was planning to place 242.5 million new shares and 70 million redeemable convertible preference shares (RCPS) at 8 sen apiece to raise RM25 million, will see a smaller subscription by JT Conglomerate Sdn Bhd (JTC), controlled by businessman Datuk Tan Kak Seng. Under a supplemental subscription agreement, JTC will now subscribe to 145 million new shares for RM11.6 million, from 206.13 million shares previously announced, Comintel said in a filing on Wednesday (June 1). Combined with another 71.06 million Comintel shares that JTC plans to acquire from a group of vendors, JTC’s stake in Comintel will be at 56.49% of its enlarged share capital upon completion of the exercise, from 72.47% previously proposed. “The proposed revision does not affect the subscription by JTC of 70 million RCPS as per the Subscription Agreement as well as the subscription price of eight sen each for the subscription share and RCPS respectively,” Comintel said. The remaining 97.5 million new Comintel shares will be taken up by other investors, it said. Based on its prior announcements, this includes Datuk Seri Godwin Tan Pei Poh and Tan Wee Dher, who will each subscribe to 18.19 million shares. Other investors that will take up the remaining placement shares include Yankong Stainless Sdn Bhd (18.74 million), Tan Chyi Boon (15.3 million), Chow Hing Yaung (13.54 million) and Fong Yik Hon (13.54 million). Where JTC’s shareholding will trigger a mandatory general offer (MGO) of the remaining Comintel shares, Comintel said it has obtained undertaking from other subscribing investors not to accept the MGO, which will be at 15 sen per share. Aside from the fundraising of RM25 million, Comintel’s regularisation plan also entails a share capital reduction of RM90.96 million to eliminate its accumulated loss, as well as the acceptance of a construction contract worth RM188.77 million from Mightyprop Sdn Bhd. Comintel fell into PN17 status in March 2019 after its shareholders’ equity fell to under 25% of its issued share capital. An initial regularisation plan involving Datuk Seri Subramaniam Pillai Sankaran Pillai in 2020 was aborted in April last year, after Comintel said the plan's conditions precedent could not be met. Shares of Comintel have been suspended from trading since May 31, 2021. The group's shares last settled at nine sen, giving it a market capitalisation of RM13 million. |
https://theedgemalaysia.com/node/606000 | Offshore wind installations could suffer bottlenecks from 2024 | English | KUALA LUMPUR (Feb 3): Offshore wind turbines are growing in size as technology advances and demand for renewable energy soars but installing them could be a headache for operators as demand will outpace supply of capable vessels by 2024. According to Norway-based independent energy research and business intelligence company Rystad Energy, operators will have to invest in new vessels or upgrade existing ones to instal the super-sized turbines that are expected to become the norm by the end of the decade — or the pace of offshore wind installations could slow down. In a statement on Wednesday (Feb 2), the firm said wind turbines globally, excluding China, experienced a growth spurt in recent years, rising from an average of three megawatts (MW) in 2010 to 6.5MW today, with the largest in operation clocking in at 10MW. It said turbines larger than 8MW accounted for just 3% of global installations between 2010 and 2021, but that percentage is forecast to surge to 53% by 2030. Rystad said as the energy transition accelerates, demand for offshore wind turbine installation vessels worldwide, excluding China, will rocket from 11 vessel years in 2021 to almost 79 vessel years by 2030. It said the need for installation vessels for turbines larger than 9MW, which was non-existent in 2019, will grow significantly by the end of the decade and reach 62 vessel years in 2030. Rystad rigs and vessels analyst Martin Lysne said when turbines were smaller, installation could be handled by the first-generation fleet of offshore wind vessels or converted jack-ups from the oil and gas industry. “However, as operators continue to favour larger turbines, a new generation of purpose-built vessels is required to meet demand,” he said. Rystad said larger turbine installations require stronger cranes on installation vessels to lift heavier materials higher, and only a handful of purpose-built vessels available worldwide can instal 10MW+ turbines. As a result, it said many vessels had moved from Europe to China, where lower crane capacity vessels are still in high demand. |
https://theedgemalaysia.com/node/674261 | 日新与Boustead签署协议 分销电动摩托车 | Mandarin | （吉隆坡10日讯）日新集团（Ni Hsin Group Bhd）与最近刚下市的Boustead Holdings Bhd合作，推广和营销该集团的电动摩托车Ebixon EV。 文告显示，日新集团独资子公司Ni Hsin EV Tech私人有限公司（NH EV Tech）签署了为期3年的企业代理协议，委任Boustead独资子公司Boustead Technology私人有限公司为企业代理，在Boustead的内部员工中推广、营销、销售和分销Ebixon EV。 “此举是为了利用Boustead来推广和营销产品（Ebixon EV及相关产品）。” 日新集团表示，作为营销电动摩托车的回报，Boustead Technology将按月获得销售奖励。 闭市时，日新集团跌1仙或8.7%，挂10.5仙，市值为5766万令吉。 （编译：魏素雯） English version：Ni Hsin inks deal to enable Boustead to distribute electric motorcycle within group |
https://theedgemalaysia.com/node/672166 | US to ease visas for skilled Indian workers as Modi visits | English | WASHINGTON (June 21): The Biden administration will make it easier for Indians to live and work in the US, using this week's state visit by Prime Minister Narendra Modi to help some skilled workers enter or remain in the country, according to three people familiar with the matter. The State Department could announce as soon as Thursday that a small number of Indians and other foreign workers on H-1B visas will be able to renew those visas in the US, without having to travel abroad, one of the sources said, part of a pilot program that could be expanded in coming years. Indian citizens are by far the most active users of the US H-1B program and made up 73% of the nearly 442,000 H-1B workers in fiscal year 2022. "We all recognise that mobility of our people is a huge asset to us," said another US official. "And so our goal is to approach that in a sort of multifaceted way. The State Department already has been working very hard to find creative ways to make changes to things." A State Department spokesperson declined to comment on questions about which visa types would qualify or the timing of the pilot launch. Plans for a pilot program were first reported by Bloomberg Law in February. "The pilot would begin with a small number of cases with the intention to scale the initiative over the following one to two years," the spokesperson said, while declining to define small. The steps could change and are not finalised until they are announced. The White House declined to comment. Each year, the US government makes 65,000 H-1B visas available to companies seeking skilled foreign workers, along with an additional 20,000 visas for workers with advanced degrees. The visas last for three years and can be renewed for another three years. The companies using the most H-1B workers in recent years include the Indian-based Infosys and Tata Consultancy Services as well as Amazon, Alphabet and Meta in the US, according to US government data. The ability for some of the temporary foreign workers to renew visas in the US would free up resources for visa interviews in consulates abroad, the spokesperson said. The pilot program would also include someg workers with L-1 visas, which are available to people transferring within a company to a position in the US, one of the sources said. A separate initiative to clear a backlog of visa applications at US embassies in India is finally showing signs of progress, according to another one of those sources, and is expected to be figure into the discussions between the two countries' delegations in Washington this week. India has long had concerns with the difficulty its citizens face in receiving visas to live in the US, including technology industry workers. More than 10 million jobs stood open in the US at the end of April, according to the Labor Department. Some H-1B visa holders in the US have been among the thousands of tech workers laid off this year, sending them scrambling to find new employers within a 60-day "grace period" or return to their home country. The Biden administration has spent months working to improve visa access for Indians, trying to get around the lack of political will in Congress to comprehensively reform US immigration policy. President Joe Biden wants to knit together the world's two largest democracies, partly in a bid to better compete with China. US visa services are still attempting to clear a backlog after Washington halted almost all visa processing worldwide in March 2020 due to the Covid-19 pandemic. The visa backlog has led to some families being separated for extended periods of time, with some taking to social media to lament their situation. |
https://theedgemalaysia.com/node/677456 | World stocks set for worst week since March; US payrolls in focus | English | LONDON (Aug 4): European stocks indexes fell on Friday (Aug 4), while the dollar headed for a third weekly gain as investors assessed US economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report. The MSCI All-World index was flat on the day at 1123 GMT and headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of US Treasury supply. Investor attention will be squarely on the July US non-farm payrolls report, with a Reuters survey of 80 economists expecting payrolls to have increased by 200,000 last month, after rising 209,000 in June. Economists who have long been forecasting a downturn by the fourth quarter of this year are increasingly becoming convinced that the "soft-landing" scenario for the economy envisaged by the US Federal Reserve is now possible. "Today’s US payrolls data is likely to continue to showcase the resilience of the US economy," Michael Hewson, chief market analyst at CMC Markets, said in a note. Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight. The STOXX 600 was down 0.3% on the day, while London's FTSE 100 and Germany's DAX were both down 0.4% . Futures on the S&P 500 and on the Nasdaq 100 both gained 0.2%, suggesting earnings from technology bellwethers could give the index a boost later on. Amazon reported sales growth and profit that beat analyst estimates, while Apple forecast a sales slump to continue into the current quarter. The benchmark indices closed little changed the previous day after a choppy trading session, as investors weighed up the implications of rising Treasury yields along with the latest batch of economic data and earnings. "It’s a very fragile market," said Francesco Sandrini, head of multi-asset strategy at Amundi. "The market is quite nervous at the moment, the very low volatility that has been prevailing so far now is facing a reality check." The dollar meanwhile rose 0.1% against a basket of major currencies, heading for its third weekly gain in a row. It has made the most headway against some of this year's better-performing currencies, such as the Australian dollar, which lost 1.5% this week, or the pound, which is heading for a drop of 1.2% after the Bank of England delivered a smaller rate rise than many had hoped for. China's yuan, which is set for a 0.6% loss this week against the dollar, gained some respite after an official said on Friday the central bank would use policy tools flexibly to ensure reasonably ample liquidity in the banking system. Investors have been hoping policymakers will deliver more broad-based stimulus to boost the post-pandemic recovery as the world's second-largest economy struggles with weak demand at home and abroad. Further support for the US dollar came from the Treasury market, where 10-year yields held steady around nine-month highs, at 4.19%, while 30-year bond yields hovered at 4.28%, set for their biggest weekly rise this year. Rating agency Fitch this week surprised markets by stripping the US of its prized triple-A credit rating and cited the country's deteriorating fiscal position as one of the key drivers, thrusting the government's finances into the spotlight. Earlier in the week, the US Treasury said it expects to borrow just over US$1 trillion in the third quarter of this year alone, US$273 billion more than its May estimate. Oil prices headed for a sixth straight weekly gain, driven up by the prospect of reduced supply from Saudi Arabia and Russia. US crude rose 0.3% to US$81.81 a barrel, while Brent rose 0.4% to US$85.44. |
https://theedgemalaysia.com/node/669088 | Australia’s building approvals slump to lowest level in 11 years | English | (May 30): Australian approvals to build new homes tumbled to the lowest level in 11 years, driven by fewer permits for apartment buildings, suggesting weak residential property investment will continue to drag on the economy. Total dwelling approvals slid 8.1% in April from a month earlier as permits for apartments plunged 16.5%, Australian Bureau of Statistics data showed Tuesday. While the monthly series can be volatile, the trend has been weak for an extended period, with total approvals falling 24.1% from a year ago. “Total dwellings approved fell to the lowest level since April 2012,” Daniel Rossi, ABS head of construction statistics, said in a statement. “Private sector house approvals also continued to decline.” Australia’s residential construction industry is reeling from a combination of shortages of materials and labour, falling property prices and an unwinding of government subsidies that drove demand during the pandemic. High interest rates are also crimping demand and driving up financing costs. The Reserve Bank is in the midst of its most aggressive tightening cycle in a generation, having hiked by 3.75 percentage points since May 2022 to take the cash rate to 3.85%. RBA Governor Philip Lowe has reiterated the board’s determination to do what is required to bring inflation back to the 2%-3% target. A key risk to that goal is that a housing shortfall risks further fuelling rental inflation at a time when the economy is seeing a strong rebound in population growth from immigration. “There is no ignoring the fact that the mismatch between supply and demand continues to be the driving force pushing capital city rents higher,” said Kaytlin Ezzy, an economist at property consultancy CoreLogic Inc. “In April, national unit listings continue to be around 20% below the levels typically expected this time of year, a shortfall of around 10,000 listings.” Money market bets imply the RBA’s tightening cycle is all but done though economists at Goldman Sachs Group Inc, Credit Suisse AG and National Australia Bank Ltd see more to come. Data next week is likely to show dwelling investment detracted from overall gross domestic product growth in the first three months of the year, and economists expect the weakness to persist in response to higher borrowing costs. |
https://theedgemalaysia.com/node/636011 | KSL to buy 54 acres of land in Johor from Tropicana for RM103 mil | English | KUALA LUMPUR (Sept 12): KSL Holdings Bhd is buying 53.89 acres of freehold land in Pontian, Johor from Tropicana Corp Bhd for RM102.94 million. In a bourse filing on Monday (Sept 12), the property developer said its wholly-owned subsidiary KSL Medini Development Sdn Bhd is acquiring the land from Tropicana GP Views Sdn Bhd, a unit of Tropicana, for the acquisition. KSL said the plot enlarges the current land bank of the group to enhance future revenue and earnings, and will be used for a residential development project to further enhance its presence in the property market in Johor. The group said the purchase consideration was arrived at on “as is, where is” and “willing seller-willing buyer” bases, after considering the market value of RM105 million for the land, as appraised by a registered valuer. It added that the acquisition is expected to be completed by end-2023. Touching on the residential development project, KSL said it will entail 628 units of residential properties and is expected to commence in 2024 and spread over a period of eight to 10 years. “Based on the board’s estimation, barring any unforeseen circumstances, the total gross development value of the project will range from RM345 million to RM395 million; while its gross development cost is expected to be around RM188 million. “Accordingly, an estimated gross development profit of between RM157 (million) to RM207 million is expected to be derived for the group over the duration of the said development,” it added. The proposed acquisition for the land in Pontian comes a month after KSL’s unit, KSL Development Sdn Bhd, entered into an agreement with Tropicana's wholly-owned subsidiary Tropicana Desa Mentari Sdn Bhd to acquire 84.09 acres of land in Johor Bahru for RM109.88 million. The Johor Bahru land is to be used for landed property development and is to enhance the group’s presence in the property market in Johor. Shares in KSL ended down seven sen or 8.33% at 77 sen on Monday, giving the group a market capitalisation of RM798.88 million. |
https://theedgemalaysia.com/node/645055 | Hartalega and Top Glove are likely to be replaced by AMMB and QL, says CGS-CIMB | English | KUALA LUMPUR (Nov 22): Hartalega Holdings Bhd and Top Glove Corp Bhd are likely to be replaced by AMMB Holdings Bhd and QL Resources Bhd in the upcoming KLCI constituents review in December, said CGS-CIMB Securities. In a note on Monday (Nov 21), the research firm said that based on Refinitiv market data at the close of trading on Nov 21 (review date), Hartalega and Top Glove have fallen to 36th and 40th in market capitalisation, respectively, among the eligible main market securities. It said that based on the ground rules of Bursa Malaysia, a security will be deleted if it falls to the 36th position or below among eligible securities. “We think AMMB and QL Resources, which are ranked 27th and 28th in market capitalisation among eligible securities, could gain entry into the KLCI index by being the two highest-ranking eligible companies that are not presently included in the KLCI. “Their inclusion will be to match the number of companies to be deleted from the KLCI index,” it said. CGS-CIMB said Hap Seng Consolidated Bhd, which ranked a higher 24th in market capitalisation, may not qualify for inclusion as house calculations suggest that it has not met the liquidity test. The research house said that apart from market capitalisation criteria, companies need to have a free float (share capital of the company that is freely available for trading) of 15% or more, and pass a liquidity screening test to qualify for KLCI inclusion. “We estimate that AMMB and QL Resources could have a potential KLCI weightage of 1.8% and 1.3%, respectively, against Top Glove’s 1.1% and Hartalega’s 0.7%. “AMMB and QL Resources could gain investor interest due to their potential inclusions. We have Add calls on both. “There could be short-term selling pressure on Top Glove and Hartalega, if they are excluded from the KLCI; we currently have a Hold rating for Hartalega and a Reduce rating for Top Glove. “This would also mean glove players will not be represented in the KLCI, while the bank and consumer sectors will see higher weightage in the KLCI,” it said. |
https://theedgemalaysia.com/node/675628 | MDEC expects high-tech Malaysian companies to generate RM250m in digital exports | English | JAKARTA (July 21): Malaysia Digital Economy Corp (MDEC) projects that 42 high-tech Malaysian companies involved in its recent programmes in Indonesia could generate RM250 million in digital export opportunities. The programmes, called DEX Connex and FOX Xposure, in partnership with Kumpul, an Indonesian entrepreneur ecosystem builder, were aimed to enhance collaborative relationships between high-tech companies in Malaysia and Indonesia. In a statement on Friday (July 21), MDEC said the programmes served as a platform for participants to engage, expand their reach, showcase technology companies from Malaysia, and facilitate business growth opportunities towards driving the digital economy in Asean. MDEC chief executive officer Mahadhir Aziz said the programmes foster collaboration and knowledge-sharing as key drivers for innovation and growth in the digital economy. He said several Malaysian and Indonesian companies have exchanged memoranda of understanding (MOU) which would further solidify the collaboration between the two nations. The Malaysian companies include Faszz Technology (M) Sdn Bhd, TRB Ventures Sdn Bhd (MHub), PT The Lorry Online Indonesia and Verofax Asia Sdn Bhd. Meanwhile, the Indonesian partners include PT Envy Tbk, PT Aksi Visitama (Tada), PT Marega Kernel Teknologi and PT Mitrausaha Indonesia Grup (Modalku). MDEC also recently launched the MDEC Horizon publication, a comprehensive and strategic publication which offers invaluable insights and information on Malaysia’s digital landscape. The publication serves as the go-to reference for global and local stakeholders seeking reliable data and informed perspectives. MDEC will also be launching the MDX 2023 in September, an event that celebrates and amplifies all tech events with the participation of international and local speakers, and panelists from reputable organisations which will take place across Malaysia.
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https://theedgemalaysia.com/node/671794 | UBS faces big penalty over Credit Suisse's Archegos failings — FT | English | BENGALURU (June 20): UBS Group AG faces hundreds of millions of dollars in penalties over Credit Suisse's mishandling of Archegos Capital, after UK, Swiss and US regulators completed their investigations, Financial Times (FT) reported on Monday (June 19). UBS has asked the US Federal Reserve, the Swiss Financial Market Supervisory Authority and UK's Prudential Regulation Authority to publish their findings and announce any penalties jointly at the end of July, FT reported. Britain's Prudential Regulation Authority could impose a fine of up to £100 million (RM592 million), while the US Federal Reserve could impose a penalty of up to US$300 million (RM1.39 billion), the newspaper reported, adding that Credit Suisse had set aside just US$35 million for potential fines. The Swiss Financial Market Supervisory Authority does not have the power to fine financial institutions, president Marlene Amstad said in May. Archegos' collapse stemmed from its founder Bill Hwang's aggressive use of total return swaps, a type of financial contract, to boost the effective size of his market positions. The New York-based firm's demise caused billions of dollars in losses for Credit Suisse. UBS completed its emergency takeover of embattled rival Credit Suisse last week, forging a Swiss banking and wealth management giant with a US$1.6 trillion balance sheet. It set aside US$4 billion for potential lawsuits on the Credit Suisse deal in May, according to a presentation. The US Fed Reserve, UBS and the Prudential Regulatory Authority declined to comment. The Swiss Financial Market Supervisory Authority did not immediately respond to requests for comment. |
https://theedgemalaysia.com/node/608335 | 销量及铜价上涨 大稳控股次季转亏为盈 | English | （吉隆坡21日讯）铜制造商大稳控股（Ta Win Holdings Bhd）在截至2021年12月31日第二季（2022财年第二季）净赚466万令吉，一年前则净亏150万令吉。 季度营业额从1亿2406万令吉弹升39.03%，至1亿7248万令吉。 该集团指出，业绩改善得益于产量与销量增加，以及铜价上涨。 制造业务的销量增加改善了赚幅，促使集团录得636万令吉税前盈利，一年前则蒙受149万令吉税前亏损。 按季比较，大稳控股转亏为盈，2022财年首季净亏328万令吉，次季营业额则暴涨158%，上一季为6682万令吉。 截至去年12月杪首6个月，大稳控股净赚139万令吉，上财年同期则净亏426万令吉。现财年首半年营业额上扬14.46%至2亿3930万令吉，上财年同期报2亿907万令吉。 闭市时，大稳控股降2.7%或0.5仙，至18仙，市值为5亿9836万令吉。成交量达2亿1209万股，为马股第二大热门股。 （编译：魏素雯） English version：Ta Win returns to black in 2Q on higher sales volume, increase in copper price |