CEOMorningBrief THURSDAY, DECEMBER 21, 2023 ISSUE 690/2023 theedgemalaysia.com OVER 100 CONTAINER SHIPS REROUTE AS US WEIGHS RED SEA RESPONSE p15 HOME: Putrajaya revokes Israeli shipping company’s docking rights p2 Petronas plans 300 facilities improvement projects yearly from 2024 to 2026 p3 HR Ministry scraps Skills Passport programme, plans inaugural National HR Policy p4 Top Glove eyes turnaround by May 2024 as excess glove stocks start depleting globally p6 Perodua initiates internal assessment amid safety scandal at Daihatsu p7 Report on Page 5. Abdul Rashid takes over from Azman Mokhtar as Tabung Haji chairman Report on Page 2. Malaysia ranks third in 5G speed globally ahead of govt’s move to end SWM’s ‘effective deployment’
THURSDAY DECEMBER 21, 2023 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] Malaysia ranks third in 5G speed globally ahead of govt’s move to end SWM’s ‘effective deployment’ Putrajaya revokes Israeli shipping company’s docking rights KUALA LUMPUR (Dec 20): Malaysia’s unconventional 5G deployment strategy has proven effective, according to internet connectivity intelligence provider Ookla Research, which rated the nation third globally for 5G download speed, which clocked in at 485.24 Mbps in the third quarter this year (3Q2023). This came ahead of the government’s move to abolish the 5G Single Wholesale Network Model (SWM) next year, by giving up substantial control to the next generation network infrastructure to the private sector and build a second 5G network under the Dual Network Model, which according to now Communications Minister Fahmi Fadzil, will prevent single point failure with such redundancy. “Malaysia’s remarkable achievement in reaching the third spot globally for 5G download speed, with a reported speed of 485.24 Mbps in Q3 2023, is particularly noteworthy. Despite launching its nationwide 5G network less than two years ago, Malaysia’s unconventional deployment strategy has proven effective,” said Ookla in a statement dated Tuesday. During 3Q2023, Ookla said the United Arab Emirates and South Korea stood out as leaders in 5G performance, boasting the fastKUALA LUMPUR (Dec 20): The government has decided to restrict and prohibit the Israel-based shipping company ZIM from docking at any Malaysian port with immediate effect. Prime Minister Datuk Seri Anwar Ibrahim in a statement on Wednesday said that the Ministry of Transport will take immediate action to impose a permanent ban on ZIM’s vessels, which are en route to Malaysia’s Westport. “This sanction is a response to Israel’s actions that disregard the basic humanitarian principles and violate international law through the ongoing massacre and continuous cruelty against the Palestinian people” Anwar said. “In addition, Malaysia has also deHOME BY CHESTER TAY theedgemalaysia.com BY LUQMAN AMIN theedgemalaysia.com cided to no longer accept ships flying the Israeli flag to dock in the country. Furthermore, Malaysia has imposed a ban on any ship that are heading to Israel from loading cargo at Malaysian ports,” Anwar added. Immediate effect Both of these restrictions are effective immediately. Notably, the Cabinet had previously allowed ZIM’s ships to dock in Malaysia in 2002 and 2005, but the current government has decided to revoke those decisions. Anwar remarked that these decisions will not affect Malaysia’s trade activities. Malaysia has been a staunch supporter of the Palestinian cause and has repeatedly condemned Israel’s atrocities and occupation of Palestinian territories. Malaysia does not have diplomatic relations with Israel and does not recognise its statehood. Read the full story est median 5G download speeds globally at 592.01 Mbps and 507.59 Mbps, respectively. “Our top 10 list also includes Malaysia, Qatar, Brazil, the Dominican Republic, Kuwait, Macau, Singapore and India. The shift in the top 10 rankings reveals dynamic changes, with Malaysia, the Dominican Republic, and India making significant strides, while Bulgaria, Saudi Arabia, New Zealand and Bahrain dropped out of the rankings,” it said. Malaysia rolled out its 5G network through a special purpose vehicle Digital Nasional Bhd (DNB), which was given the mandate to own and manage all 5G spectrum and infrastructure to ensure efficiency in providing cheap and quality connection, even for rural areas whose return on investment (ROI) might be low. However, the government recently decided to sell its 100% stake in the RM16 billion 5G project to five mobile network operators (MNOs) at RM500.5 million plus a RM1.17 billion zero-interest shareholders’ advance, while taking over RM450 million advances the Ministry of Finance provided to DNB. The policy decision marks a reversal of the SWM deployment strategy, allowing subsequent 5G deployment to be spearheaded by private MNOs, which had poor track record in rolling out 4G network without government intervention. Nonetheless, Fahmi, who is amongst the many critics against the nation’s 5G SWM model before being appointed into the Cabinet, recently said the government will retain its special shares after divesting its 100% stake in DNB.
THURSDAY DECEMBER 21, 2023 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 20): Petroliam Nasional Bhd (Petronas) expects to carry out an average of 300 facilities improvement plans (FIPs) yearly for the next three years to maximise production efficiency and sustainability of oil and gas supply, according to the state-owned oil company’s activity outlook report for 2024-2026. These FIPs include rejuvenation projects, gas turbine and gas generator change-out activities, as well as other major maintenance works that are crucial in eliminating bottlenecks, maximising hub capacity and curbing flaring activities at new onshore facilities. Petronas will also carry out decommissioning activities for some 150 matured assets to restore the area to a safe and environmentally stable condition, while disused assets will be assessed for potential reuse or repurposing. The report projects that in 2024, 99 wells will be drilled under its development, appraisal and exploration drilling programme. “Significant increase is expected for plug and abandon activities in 2024 to honour the commitment made by the regulator [Malaysia Petroleum Management],” said Petronas in the report. “For the next three years, more than 25 wells are forecasted to be drilled each year with a focus on shallow water wells in Peninsular Malaysia and Sarawak, and deepwater wells in Sabah to sustain and spur exploration growth in the country,” it added. BY CHESTER TAY theedgemalaysia.com Petronas plans 300 facilities improvement projects yearly from 2024 to 2026 CONTINUES ON PAGE 4 Petronas said its future is anchored on a long-term target to sustain and grow Malaysia’s oil and gas production of two million barrels of oil equivalent per day by 2025 and beyond. “This will be supported by various oil and gas projects in the pipeline such as Kasawari, Jerun, Rosmari-Marjoram and Lang Lebah in Sarawak, Gumusut-Kakap Redev and Belud Clusters in Sabah, and Bekok Oil Redev, Tabu Redev and Seligi Redev in Peninsular Malaysia, amongst others,” it said. According to the group, Malaysia’s production currently stands at about 500,000 barrels per day of liquids and 7,000 million standard cubic feet per day of gas. Petronas is expecting 45 upstream projects to be executed over the next three years, with four central processing platforms to be fabricated, three onshore facilities to be built, and 1,130km of pipelines to be fabricated and installed. “In this area, Petronas and the petroleum arrangement contractors (PACs) expect OGSE (oil and gas service and equipment) and industry players to provide the essential products and services required to drive the success of these development projects to be on time, on budget, on scope and on value,” it said. In a statement on Wednesday, Petronas said the report’s outlined forecasted activities call for greater collaboration with the OGSE providers to ensure energy demand is met, while ramping up its clean energy initiatives. “Within the next three years, Petronas is committed to its long-term target of sustaining and growing Malaysia’s oil and gas production. This is anticipated to open opportunities for the OGSE providers across exploration, development, production and decommissioning activities,” it said. Petronas expects 45 upstream projects to be executed over the next three years, four central processing platforms to be fabricated, three onshore facilities to be constructed, and 1,130km of pipelines to be fabricated and installed. PETRONAS
THURSDAY DECEMBER 21, 2023 4 THEEDGE CEO MORNING BRIEF HOME “In meeting the energy demand to sustain an economic growth, Petronas is cognisant of the fact that the energy needs to be delivered in an affordable and sustainable manner. “The challenge lies in producing more barrels of oils at the lowest cost and emission possible. By outlining the forecasted activities for the years ahead and with it, the challenges and opportunities can foster a stronger OGSE ecosystem to ride this energy trilemma together,” it added. Petronas said the downstream business is increasingly expanding into cleaner energy initiatives, venturing into biofuels with the ongoing development of a greenfield biorefinery and co-processing plant set to begin in 2026, alongside the expansion of liquefied natural gas bunkering and the Petronas Iona range — a dedicated range of automotive fluid solutions for electric vehicles and other thermal management application across diverse sectors. The group’s petrochemical arm is also making inroads into the specialty chemicals market and is actively driving the circular economy through the construction of Asia’s largest advanced chemical recycling plant that converts end-of-life plastics into pyrolysis oil to be used as chemical feedstock for sustainable plastic production. “The industry should be gearing toward adapting to the energy transition, such as shifting toward lower-carbon endeavours, pursuing net zero emissions, and exploring renewable energy sources,” said Petronas vice president of group procurement Freida Amat. “Through cross-industry experiences, insights and knowledge, we believe co-creation can upskill our capabilities and skills, which will chart new frontiers for the OGSE industry,” she added. KUALA LUMPUR (Dec 20): The Ministry of Human Resources has discontinued the Human Resource Development Corp’s (HRD Corp) controversial Skills Passport programme, following allegations that the contract was being pushed through without the necessary board approvals, and its non-compliance with required procurement procedures. Newly appointed Human Resources Minister Steven Sim said he had instructed HRD Corp to discontinue the programme, which has been described in news reports as a skills database cum search engine, after careful consideration. “This project has been delayed for over a year and is no longer suitable for implementation,” Sim said in a statement on Wednesday. The programme came under scrutiny after a Ministry of Finance (MOF) representative who sat on the board of HRD Corp reportedly raised concerns about the project’s non-compliance with procurement procedures, and called for its termination. Datuk Rosli Yaakub, who is a deputy secretary of governance and monitoring under MOF’s corporate government investment companies division, raised the concerns in a letter dated April 12 to HRD Corp’s chairman Datuk R Rajasekharan and chief executive Datuk Shahul Hameed Dawood. Among the concerns Rosli raised were the potential financial implications of between RM53 million and RM159.47 million on HRD Corp to roll out the programme, and that HRD Corp had already signed a contract with Neomindz, according to a news portal that cited the letter. HRD Corp was said to have agreed to pay HR Ministry scraps Skills Passport programme, plans inaugural National HR Policy Neomindz RM12 for each use of the Skills Passport programme. HRD Corp, however, slammed the allegations as “false and defamatory” in a statement issued on May 7. It also said it was “doing everything possible” to resolve the matter quickly. A national HR policy to enhance worker welfare Sim also announced that the ministry will be drafting the country’s first National Human Resources Policy that will serve as the guide to enhance worker welfare, and to improve skills and productivity. The policy also aims to prepare the labour market for challenges like the advancement of digital technology, the green economy, job mismatches, an ageing population, and the pursuit of decent work, in line with the Economy Madani framework. At the same time, Sim said he had instructed the ministry to implement the Progressive Wage Policy’s pilot project as soon as possible, after the Dewan Rakyat passed the Progressive Wage White Paper in November. “The ministry will work closely with the Ministry of Economy to implement this pilot project and other efforts to reform the national labour market,” he said. Sim also announced that he had appointed trade union activist Chee Yeeh Ceeu as a special officer, in the hope that the appointment will allow closer involvement of workers in policymaking. BY CHOY NYEN YIAU theedgemalaysia.com ZAHID IZZANI/ THE EDGE FROM PAGE 3
THURSDAY DECEMBER 21, 2023 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 20): Lembaga Tabung Haji has announced the appointment of Tan Sri Abdul Rashid Hussain as the new chairman of the pilgrim fund, taking over from Tan Sri Azman Mokhtar, who has served the position for two years from Dec 20, 2021. Abdul Rashid’s appointment is effective Wednesday. Abdul Rashid, who is known as co-founder of Rashid Hussain Securities and the RHB Group, was also one of six members of the Tabung Haji Royal Commission of Inquiry (TH RCI) set up in 2022 to review the fund’s operations in the 2014-2020 period. “TH welcomes the appointment and is grateful to receive a respected and experienced corporate figure who was also the founder of RHB Group, one of the biggest banking groups in the country,” said TH Group MD and CEO Syed Hamadah Syed Othman in a statement. “We are confident that our collective effort to strengthen TH will continue with his experience and leadership,” he added. Abdul Rashid established Rashid Hussain Securities in 1983, and built it to become RHB Group. He also served on the board of Khazanah Nasional Bhd from 1994 to 1998, and was chairman of its executive committee in the period. In 1995 to 2000, Abdul Rashid served as chairman of Putrajaya Holdings Bhd. In expressing gratitude to Azman, TH said that the former chairman has contributed towards strengthening the fund’s financial position, where total deposits grew almost 7% from Jan 1, 2022 to Nov 30, 2023. Other recent changes at the helm in GLCs Abdul Rashid’s appointment follows other recent changes at the helm in several government-linked companies (GLCs) and agencies. This includes the Inland Revenue Board, Khazanah Nasional Bhd-linked Tenaga Nasional Bhd, as well as UMW Holdings Bhd, which was recently acquired by Sime Darby Bhd from Permodalan Nasional Bhd. One appointment that is pending is the CEO position of the Employees Provident Fund, following Prime Minister Datuk Seri Anwar Ibrahim’s decision to appoint Datuk Seri Amir Hamzah Azizan as Minister of Finance II as part of the Cabinet reshuffling. Another is the CEO of government-linked 5G infrastructure outfit Digital Nasional Bhd, following the end of Augustus Ralph Marshall’s contract in March. The unity government, since its formation in November last year, also saw several GLC heads retaining their positions. This includes Petronas president and CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz and Khazanah-linked CIMB Group Holdings Bhd CEO Datuk Abdul Rahman Ahmad, whose contracts were extended in June; as well as MRT Corp Bhd CEO Datuk Mohd Zarif Hashim in November. Tabung Haji in the spotlight following mismanagement TH, a fund that was formed to help generate savings and subsidise haj costs for pilgrims, has been in the spotlight since 2018 following mismanagement that led to its liabilities exceeding its assets, rendering it unable to provide profit distribution to its depositors. This prompted a restructuring that saw a special purpose vehicle (SPV) formed by the Pakatan Harapan government to take BY ADAM AZIZ theedgemalaysia.com Abdul Rashid takes over from Azman Mokhtar as Tabung Haji chairman over RM9.63 billion worth of underperforming assets from the fund, in exchange for a RM19.6 billion sukuk from the SPV Urusharta Jamaah Sdn Bhd and RM300 million cash to shore up its financial position. In September, Prime Minister Datuk Seri Anwar Ibrahim said the government will initiate discussions to return the assets held by Urusharta Jamaah back to TH “once TH is managed well and secure”. Urusharta Jamaah’s audited financial statement showed that it held RM9.06 billion in assets, against RM22.42 billion in liabilities as at end-2022. According to the Auditor General’s Report on the federal government financial statement 2022, Urusharta Jamaah has redeemed RM200 million worth of sukuk in January this year. In February, Minister in the Prime Minister’s Department (Religion) Datuk Mohd Na’im Mokhtar was reported as saying that the Cabinet will make a decision on the TH RCI report. The TH RCI, which was initiated in January 2022 by the Perikatan Nasional government, has been completed and its report has been presented to both the Yang di-Pertuan Agong and the government. This year, TH has kept its annual profit distribution for the year 2022 at 3.1%, unchanged for the third straight year, although total full-year distribution rose to RM2.65 billion for 2022, from RM2.46 billion a year ago. The pilgrim fund recorded gross income of RM3.85 billion in 2022, compared with RM3.72 billion a year ago. Read also: About Abdul Rashid, Tabung Haji’s new chairman Top changes in government-linked entities since Dec 12 Cabinet reshuffle Government-linked companies Position Incumbent Successor Note Tenaga Nasional Bhd President Datuk Seri Baharin Din Datuk Megat Jalaludin Effective March 1, 2024 & CEO Megat Hassan UMW Holdings Bhd President Datuk Seri Ahmad Fuaad Mustamir Mohamad Effective Dec 13, 2023 & group CEO Mohd Kenali Petronas Chemical Group Bhd MD & CEO Mohd Yusri Md Yusof Mazuin Ismail Effective Jan 1, 2024 Institut Jantung Negara Sdn Bhd Chairman Datuk Dr Aizai Azan Abdul Rahman Dr Noor Hisham Effective Dec 1, 2023 Government-linked investment companies Position Incumbent Successor Note Employee Provident Fund CEO Datuk Seri Amir Hamzah Azizan - Amir Hamzah appointed as FM II Lembaga Tabung Haji Chairman Tan Sri Azman Mokhtar Tan Sri Abdul Rashid Hussain Effective Dec 20, 2023 Government agencies Position Incumbent Successor Note Inland Revenue Board CEO Datuk Seri Dr Mohd Nizom Sairi Datuk Abu Tariq Jamaluddin Agency under Ministry of Finance Lembaga Pembangunan CEO - Datuk Haslina Abdul Hamid Agency under Ministry of Langkawi (LADA) Plantation and Commodities
THURSDAY DECEMBER 21, 2023 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 20): Top Glove Corp Bhd net loss for the first quarter ended Nov 30, 2023 (1QFY2024) narrowed to RM57.71 million from a net loss RM168.24 million a year earlier (1QFY2023), on the back of improved operational, quality and cost optimisation efforts. In a bourse filing on Wednesday, the world’s largest glove maker said revenue for the quarter dipped to RM493.46 million, from RM632.53 million. On a quarter-on-quarter basis, the company said it also saw an improvement in its 1QFY2024 net loss of RM47 million, representing a 90% reduction from its 4QFY2023 net loss, which included a one-off impairment of RM392 million. Loss per share was 0.72 sen compared to loss per share of 2.10 sen previously. Top Glove did not declare any dividend. Reviewing its performance, Top Glove said the uptick in sales volume, which led to increased utilisation and efficiencies, also had a positive effect on the bottom line. Top Glove managing director Lim Cheong Guan said the first quarter result was testament to the effectiveness of Top Glove’s ongoing quality and cost optimisation, and operations enhancement measures in its turnaround plan. “With glove orders resuming, we believe this is also indicative of the market rebounding, and we are hopeful of making a sustained recovery in the coming quarters,” he said. Top Glove said it is also working closely with stakeholders to ensure it meets new obligations under the European Union Deforestation Regulation (EUDR), which will apply starting Dec 30, 2024. It said that under this regulation, companies trading in commodities such as natural rubber and products derived from natural rubber, are required to conduct due diligence on their supply chain to ensure the goods do not result from recent deforestation, forest degradation, or breaches of local environmental and social laws. On its outlook, Lim said that going forward, Top Glove’s focus will remain on bolstering its core glove business, through quality and cost enhancement initiatives, to be well positioned to maintain the upswing in performance and expedite recovery. At midday break on Wednesday, Top Glove added 0.53% or 0.5 sen to 94.5 sen, with 55.29 million shares done. KUALA LUMPUR (Dec 20): Top Glove Corp Bhd is anticipating a return to the black as early as May next year, lifted by stronger demand for rubber gloves and rising prices, following the depletion of excess supplies built up globally since the pandemic. This is evident in a pick-up in sales orders over recent months, according to Top Glove managing director Lim Cheong Guan. The group has already seen a monthon-month jump in orders of about 30%- 40% for the month of December, a period that usually sees slower orders. “We have brighter days ahead due to the increase in the demand for gloves — the uptrend in glove orders indicates demand is picking up to fill the vacuum from the depleting excess stocks,” Cheong Guan told reporters during the group’s briefing on its first quarter results on Wednesday (Dec 20). “Hopefully in the next two quarters, or by end-FY2024, we can breakeven or be in a profitable position,” he said. The world’s largest glove maker extended its loss-making streak with its sixth consecutive quarter in the red, as it reported a net loss of RM57.17 million for its first quarter ended Nov 30, 2023. But it’s a much smaller loss than the RM168.24 million it reported a year ago, which the group attributed to improved operational, quality and cost optimisation efforts. Besides depleting supply, Cheong Guan said glove demand has risen due to an overall increase in hygiene and health awareness. “This surge in demand, I would not link it to the recent Covid situation because the surge has been happening over the past one or two months. Our current orders are already on a rising trend,” he said, adding the group has yet to feel any impact from the current Covid-19 situation. Glove players’ share prices have been climbing amid active trades in recent days as a surge in Covid-19 cases spurred investors’ interest in rubber glove counters. Top Glove’s share price jumped over 12% on Monday to touch RM1, from 89 sen last Friday. On Wednesday, the stock has pared most of the gains it made this week to close at 90.5 sen — valuing the glove maker at RM7.43 billion. Malaysian players poised to meet any demand surge According to Top Glove executive chairman Tan Sri Lim Wee Chai, Chinese glove makers, which have been giving glove makers here a run for their money as they sell their products at cheaper prices, are illTop Glove eyes turnaround by May 2024 as excess glove stocks start depleting globally equipped to absorb any surge in demand in the near term, as they are about maxed out, with their factories operating at a 90% utilisation rate. Hence, Wee Chai does not expect the Chinese competitors to ramp up their production capacity to meet any jump in demand, as they are already running at break-even point or even at a loss just to pull the average selling prices of their gloves down by only about US$2 (RM9.32) per 1,000 pieces. Malaysian players, on the other hand, can easily raise their utilisation rate, which averages about 50% now. Top Glove, with its massive annual production capacity of 60 billion pieces, is running at 30% utilisation rate. So, Wee Chai expects customers will begin to bring more orders to Malaysia. “We need sales volume to increase our utilisation, which will also make our production costs more efficient,” Cheong Guan added. At the same time, Wee Chai noted that global customers, especially those from the US, are seeking to diversify their sourcing of gloves due to the ongoing geopolitical issues between the US and China. Incidents of Chinese glove shipments failing US authorities’ inspections is another factor as to why customers are expected to return to source their gloves from Malaysia, according to Wee Chai. So, the stage is set for local players to compete for the expected increase in glove demand, Wee Chai said. Top Glove, however, expects its domestic counterparts to be more “rational” in pricing, Chong Guan added. BY IZZUL IKRAM & CHERYL TAN theedgemalaysia.com BY SURIN MURUGIAH theedgemalaysia.com Top Glove’s 1Q net loss narrows to RM57.71 mil
thursday december 21, 2023 7 The E dge C E O m o rning brief home KUALA LUMPUR (Dec 20): RAM Ratings expects Malaysia’s economic momentum to steadily improve heading into 2024, on the back of the fiscal consolidation by the government, as well as the potential turnaround in external demand and resilient domestic demand. In a statement on Wednesday, RAM Ratings stated that it expects the growth to reach 4.5%–5.5% in 2024, from an estimated 4.0% in 2023. Meanwhile, it projected the fiscal deficit to clock in at 4.2% of the gross domestic product (GDP) in 2024, compared to the 5% estimated for 2023, reflecting the fiscal consolidation path of the government. RAM Ratings stated that the narrower deficit will mainly be driven by a lower subsidy bill, better management of other operating expenditures, and higher tax revenue collections from an upside in economic conditions next year. However, with a need to fund critical development projects, government debt will remain relatively sticky at RM1.3 trillion in 2024 (62.7% of GDP), while debt servicing will not be insignificant at 16.1% of total projected revenue in 2024, it added. It also noted that the risks on the horizon for Malaysia’s growth will hinge largely on the global economy successfully achieving a soft landing and avoiding further escalation of geopolitical conflicts. “A spike in global food and commodity prices could pressure domestic demand, as will unintended price ripple effects of a poorly executed retargeting of RON95 subsidies in 2H2024,” it said. Besides, it stated that the leading indicators point to signs that global trade and semiconductor demand have reached their nadir in 2023. Hence, coupled with resilient domestic demand which is supported by the benign inflation and interest rates, the growth momentum can be sustained, it said in its Economic Outlook 2024 report. KUALA LUMPUR (Dec 20): Perusahaan Otomobil Kedua Sdn Bhd (Perodua) said it is working on a detailed internal assessment of its cars and operations after its Japanese partner Daihatsu Motor Co Ltd suspended all shipments of its models both in Japan and overseas following an investigation which found “procedural irregularities” in its models and engines. Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad said the matter has even been brought up to Malaysian authorities. “We are doing a detailed assessment on the matter and are currently in discussion with Malaysian authorities as to the impact of this development on our vehicles,” he said in a statement on Wednesday. “We sincerely apologise to our valued customers and the general public for any alarm this announcement may bring. Our intent is to reach out and assure our valued customers. “We will share the outcome of this discussion with the public in due course,” Zainal Abidin added. Daihatsu in April 2023 announced that there were “procedural irregularities” when conducting safety tests on its vehicles in Japan. Following the announcement, Daihatsu commissioned a third-party investigative committee consisting of lawyers and technical personnel to further investigate the matter. On Wednesday, Daihatsu said it received the results of the investigation, confirming that there were in fact 174 new cases in 25 test items, in addition to the door trim irregularity in April and the pole side collision test irregularity in May. The investigation found irregularities in 64 models and three engines, including those that had already been discontinued. The models included both Daihatsu brand vehicles and models supplied as original equipment manufacturer (OEM) models to Toyota Motor Corp, Mazda Motor Corp, and Subaru Corp. For instance, at the final stage of the investigation, Daihatsu said that tests on the airbags of Daihatsu Move/Subaru Stella, Daihatsu Cast/Toyota Pixis Joy, and Daihatsu Gran Max/Toyota Town Ace/Mazda Bongo revealed the irregularity that the airbags deployment computer was not the same as that of mass-produced products. Besides that, it was determined that there is a possibility that the “safety performance related to occupant safety performance (door unlocking)” of the Cast/ Pixis Joy in side collision tests does not satisfy the regulations. “At this time, we are not aware of any information on accidents related to this Perodua initiates internal assessment amid safety scandal at Daihatsu incident, but we are conducting thorough technical verification and investigating the cause, and will promptly take necessary actions,” Daihatsu said. Furthermore, Daihatsu acknowledged that its management was responsible for treating the safety certification process lightly and for creating an environment where room for such acts existed. “We recognise the extreme gravity of this situation, which shakes the very foundation of our company as an automobile manufacturer,” it said. Going forward, Daihatsu said it will implement thorough measures to prevent occurrences of similar events in the future, based on the recommendations of the independent third-party investigative committee. “We will not only review and revise certification operations, but we will also make sweeping reforms to our corporate culture to make compliance the highest priority,” it stressed. Since its establishment, Perodua has partnered with Daihatsu, which holds a 25% stake in the company, whereby the Japanese carmaker provides the designs and main components for Perodua’s cars from the engines to transmissions. Essentially, all Perodua cars have Daihatsu technology. While all of its cars are derived from models in Daihatsu’s lineup, Perodua has injected more of its design into its cars in recent years. See also story on Page 19: Toyota vows reform after affiliate Daihatsu caught in safety scandal by Emir Zainul theedgemalaysia.com RAM Ratings sees stronger economic momentum for Malaysia in 2024 by Lee Ming Hui theedgemalaysia.com sam fong/The Edge
thursday december 21, 2023 8 The E dge C E O m o rning brief home Police opened 62 probe papers on cheating involving three investment firms LTAT extends offer closing date to take Boustead Plantation private KUALA LUMPUR (Dec 20): Maxis Bhd has signed an amendment agreement with Telekom Malaysia Bhd (TM) to extend the high-speed broadband (HSBB) premium service agreement until June 30, 2029. Maxis via its broadband arm, Maxis Broadband Sdn Bhd, inked the agreement with TM’s wholly-owned unit TM Technology Services Sdn Bhd (TMT), allowing Maxis Broadband to procure the premium service from TMT, enabling the telco to reach out to more premise passes for HSBB across the country. In a filing on Wednesday, TM said the agreement is a modification of the existing agreement dated Feb 8, 2019, which will see an improvement in similar services currently provided to Maxis Broadband. The amendment agreement will see Maxis Broadband becoming TMT’s premium customer for the HSBB premium service with enhanced features and functionalities from basic HSBB access services. TMT will provide the HSBB premium service to Maxis Broadband, which the telco will pay for based on agreed parameters as stipulated in the agreement. The agreement will commence from the signing of the amendment agreement until June 30, 2029, with an option to extend by both parties. Maxis Broadband and TMT initially signed the agreement back in 2010 for up to ten years. Under the 10-year agreement, Maxis Broadband has been provided access to TM’s HSBB infrastructure, covering last-mile access to homes. Meanwhile, TM said that the amendment agreement demonstrates its shared commitment to ensuring seamless, stable and always-on connectivity for Malaysians and remains essential in line with the government’s Malaysia digital economy blueprint. At noon close on Wednesday, shares in Maxis were up four sen or 1.04% to RM3.90, valuing the group at RM30.55 billion, while TM’s shares were six sen or 1.10% higher at RM5.50, with a market capitalisation of RM21.10 billion. Maxis inks deal with TM to extend highspeed broadband services until 2029 by Anis Hazim theedgemalaysia.com Bernama by Chester Tay theedgemalaysia.com KUALA LUMPUR (Dec 20): The Armed Forces Fund Board (LTAT) is extending the closing date for its RM1.55 per share offer to take Boustead Plantations Bhd private to Jan 5, 2024, two weeks later than the original deadline of Dec 22, which falls on Friday. The move came after LTAT accumulated 88.62% of Boustead Plantations’ total issued shares as at Wednesday, according to the plantation outfit’s stock exchange filing. With a public shareholding spread of just 11.38% now, Boustead Plantations also said it is no longer in compliance with the 25% minimum spread requirement. However, LTAT will not be taking any steps to rectify this shortfall as the fund does not intend to maintain the group’s listing status, it said. Once LTAT accumulates 90% or more of Boustead Plantations’ shares, Bursa Securities will suspend the trading of Boustead Plantations’ shares five days after the closing date of the offer. Independent adviser Malacca Securities had said earlier this month that LTAT’s offer is “not fair” but “reasonable”, and recommended shareholders of Boustead Plantations to accept the offer. LTAT’s takeover offer came after Kuala Lumpur Kepong Bhd’s RM1.15 billion takeover bid for Boustead Plantations fell through in October. Shares of Boustead Plantations closed unchanged at RM1.55, valuing it at RM3.47 billion. KUALA LUMPUR (Dec 20): Police have received 547 reports on cheating involving three investment companies and opened 62 investigation papers on these cases under Section 420 of the Penal Code. Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf said of this figure, 42 investigation papers were still under investigative action, 14 cases had been charged, four were classified as no further action and two were still under consideration by the Attorney General’s Chambers. “All police reports found to have elements of cheating or criminal breach of trust will lead to investigation papers being opened and investigated under sections related to the particular crime under the Penal Code,” he said in a statement on Wednesday. Ramli said most cases involving investment crime concerned other legal provisions, including the Capital Markets and Services Act 2007 (Act 671), Financial Services Act 2013 (Act 758) and Interest Schemes Act 2016 (Act 778). “When a police report is received, CCID will advise the complainant to refer their report to the relevant agency,” he said. He was commenting on the case of some 500 scam victims lodging reports with the National Anti-Financial Crime Centre (NFCC) on Tuesday after alleging that the authorities had not taken action against the three investment companies. Ramli said non-governmental organisations fighting for these victims should realise that the authorities including the police did not take cheating cases lightly. He advised the public to be wary of investment schemes offering unusually high returns, especially those run by unregistered companies. Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf bernama
THURSDAY DECEMBER 21, 2023 9 THEEDGE CEO MORNING BRIEF
THURSDAY DECEMBER 21, 2023 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 20): VS Industry Bhd’s net profit fell 19.31% to RM48.98 million for the first quarter ended Oct 31, 2023 (1QFY2024), from RM60.71 million in the previous year’s corresponding quarter, due to lower orders from key customers in Malaysia, China and Indonesia, which affected the group’s overall utilisation rate of production capacity. Earnings per share decreased to 1.27 sen from 1.58 sen in 1QFY2023. Revenue for the quarter declined by 10.91% to RM1.15 billion from RM1.29 billion, a filing by the electronics manufacturing services (EMS) provider showed on Wednesday. Despite the lower quarterly earnings, VS Industry declared a first interim dividend of 0.3 sen per share, payable on March 8, 2024. As at end-October, the group has a low net gearing of 0.09 times, backed by net assets of 58 sen per share and gross cash holdings of RM699.6 million. VS Industry managing director Datuk SY Gan commented that the group’s business environment is expected to remain challenging, as the economic landscape continues to exert pressure on its operational costs following increases in labour, utilities and financing expenses. “In this regard, management continues to adopt prudence in ensuring a lean and efficient operating structure to mitigate the impact of heightened costs on profitability. Furthermore, our operations are supported by our lean balance sheet with low net gearing and healthy cash flow, which would strengthen our agility to navigate any unforeseen issues,” he said in a statement. Regarding external demand, consumer spending has shown signs of “cooling” due to the sustained environment of high interest rates. This could potentially affect demand for the group’s key customers’ products, according to Gan. “On a positive note, the planned launches of several new models by certain customers of ours should serve to sustain market interest in the current financial year. All in all, the board opines that the financial performance of the group for the remaining quarters [will] be satisfactory,” he added. At Wednesday’s closing bell, shares of VS Industry were half a sen or 0.60% lower at 82.5 sen, giving it a market value of RM3.2 billion, with some 5.57 million shares exchange hands. Read also: Teck Guan’s 3Q net profit drops 84% amid lower operating margin Lower orders from key customers weigh on VS Industry’s 1Q earnings KUALA LUMPUR (Dec 20): Infrastructure utilities engineering services provider Jati Tinggi Group Bhd opened at 30.5 sen on Bursa Malaysia’s ACE market on Wednesday, a 12.96% or 3.5 sen premium to its initial public offering price of 27 sen. The stock climbed as much as seven sen or 25.93% to 34 sen, before paring some gains to close at 31 sen, still up four sen or 14.8% from its IPO price — with a market capitalisation of RM121.46 million. It saw 141.81 million shares traded, making it the third most actively traded stock on Bursa Malaysia. Prior to listing, the group noted that its initial public offering (IPO) had been oversubscribed by the Malaysian public by 16.11 times. Jati Tinggi is involved in the provision of underground and overhead utility engineering services and solutions, engineering, procurement, construction and commissioning of electricity substations (EPCC), as well as the trading of substation equipment and street lighting. The group’s major customers are mainly the main contractors appointed by Tenaga Nasional Bhd, who are involved in electricity supply projects. Jati Tinggi recorded a profit after tax of RM9.13 million for the financial year ended Nov 30, 2022 (FY2022), up 26.15% from RM7.24 million in the previous year, as revenue jumped 143% to RM234.61 million from RM96.41 million in FY2021. For the third quarter ended Aug 31, 2023 (3QFY2023), the group registered a net profit of RM1.41 million, on revenue of RM33.05 million. The group raised RM18.04 million from its IPO, of which RM7.34 million has been allocated for general working capital, followed by RM7 million for repayment of Jati Tinggi gains nearly 15% in ACE Market debut bank borrowings, RM3.5 million for estimated listing expenses and RM200,000 for capital expenditure. Rakuten Trade has a “buy” rating on Jati Tinggi with a target price of 38 sen, based on 14 times its forecast earnings per share (EPS) of 2.7 sen for FY2024. Based on its existing sizable orderbook, potential to be a key solutions provider in the National Energy Transition Roadmap (NETR), and gradual evolution into a main contractor that allows it to tender for larger projects and improve on its profitability, Rakuten expects Jati Tinggi to register core net earnings of RM5.6 million and RM10.8 million for FY2023 and FY2024, respectively. Meanwhile, Public Investment Bank Bhd derived a fair value of 35 sen for the stock, which also pegged it at 14 times its forecast EPS of 2.5 sen for the group for FY2024. This represents a 20% discount to its peer MN Holdings Bhd, which has a PE multiple of 17.6 times. The research house said Jati Tinggi’s earnings growth trajectory will hinge on securing more large-scale projects, which helps to position the group favourably in the course of tendering for new projects as the main contractor. TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise. Read also: Rakuten Trade values ACE Market-bound Jati Tinggi at 38 sen BY SYAFIQAH SALIM theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com Jati Tinggi Group Bhd 0 50 10 15 20 25 25 30 35 Vol (mil) RM Source: Bloomberg 9am 5pm Dec 20, 2023 31 sen 30.5 sen IPO price: 27 sen
THURSDAY DECEMBER 21, 2023 11 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 20): The Malaysian healthcare sector is poised for sustained growth in 2024, bolstered by the Ministry of Health’s (MOH) enlarged budget allocation and the robust surge in medical tourism, supported by a strategic focus on brownfield expansion by private hospitals, according to Hong Leong Investment Bank (HLIB) Research. In a sector outlook report on Wednesday, HLIB Research maintained its “overweight” call on the healthcare sector for 2024, as it favours resilient growth drivers. The research house named KPJ Healthcare Bhd as its top pick with a “buy” call and a target price (TP) of RM1.57 due to its robust presence in Malaysia, positioning it to capitalise on the nation’s growing healthcare demand and expanding medical tourism industry. HLIB Research noted that the healthcare industry stands to benefit from the MOH’s increased budget allocation. For 2024, the allocation has been raised to RM41.2 billion, marking a 13.5% increase from the RM36.3 billion allocated in 2023. HLIB sees domestic healthcare sector thriving in 2024, names KPJ as top pick TA Securities upgrades Chin Well on more positive outlook KUALA LUMPUR (Dec 20): Hong Leong Investment Bank (HLIB) Bhd has upgraded the construction sector to “overweight” (from “neutral”) as the research house expects public project contract flows to boost contract awards beyond the current level of about RM20 billion. In a note on Wednesday, the research house highlighted that infrastructure project rollouts fell below expectations in 2023, as anticipated ones failed to materialise in part due to re-tabling of Budget 2023 and mid-year state elections. Despite this, HLIB believes that the recent appointment of Datuk Seri Amir Hamzah as finance minister II is poised to alleviate project pipeline bottlenecks. Additionally, the ongoing subsidy rationalisation is expected to incrementally enhance fiscal space as potential savings are redirected towards long-term infrastructure projects. “...We are expecting a debottlenecking of [the] public project pipeline while private jobs should sustain. Amidst this prospect of an extended contract recovery upcycle, sector valuations are still undemanding trading at P/E & P/B multiples of 12.7x and 0.7x respectively,” said HLIB. Based on the Budget 2024 announcement, the government intends to roll out several big ticket projects such as Pan Borneo Sabah Phase 1B with a value of RM15.7 billion, flood mitigation packages worth RM11.8 billion, Penang LRT (RM10 billion), Sabah-Sarawak Link Road (RM7.4 billion) and reinstatement of LRT3 (RM4.7 billion). “We also expect further developments on civil packages for the MRT3 (tender validity extended to March-24) while there is potenHLIB upgrades construction to ‘overweight’, Gamuda and SunCon the top picks BY SYAFIQAH SALIM theedgemalaysia.com BY LUQMAN AMIN theedgemalaysia.com BY SURIN MURUGIAH theedgemalaysia.com tial for more news flow from other prospective projects like KL-SG HSR and Johor LRT (RM20 billion). Tangible developments for [the] Special Economic Zone and Special Financial Zone in Johor could also generate more construction opportunities, in particular the former given its greenfield status,” said HLIB. “…. We see 2024 as an opportune time to start building — factoring in implementation time lags, the full scale of economic multiplier effects will be felt before the next GE [general election],” it added. The research house said Gamuda Bhd and Sunway Construction Group Bhd (SunCon) remain its top picks as both have contract levers besides the MRT3 project that could lead to a more sustainable growth phase in the order book. It assigned “buy” calls for Gamuda and SunCon with target prices of RM5.15 (Gamuda) and RM2.16 (SunCon). Gamuda, which has risen over 21% yearto-date, was traded unchanged at RM4.61 on Wednesday. At this price, the group is valued at RM12.53 billion. SunCon’s share price has increased over 23% since the start of the year. It closed at RM1.96 on Tuesday, with a market capitalisation of RM2.53 billion. The enlarged budget carries positive implications for healthcare counters within the research house’s coverage, including DKSH Holdings (Malaysia) Bhd (“buy”; TP: RM5.50), UMediC Group Bhd (“buy”; TP:RM1.00), and IHH Healthcare Bhd (“buy”; TP: RM7.62), as they are involved in the distribution, manufacturing, and provision of healthcare products and services to the public sector. The research house added that another catalyst for the healthcare sector is the ongoing growth in medical tourism, which is expected to benefit from the reopening of international borders and notably the visa-free travel for Chinese nationals. “Malaysia is on track to potentially achieve RM2 billion in medical tourism revenue in 2023, surpassing its initial targeted timeline of 2024 by a year,” HLIB Research added. According to the research house, KPJ Healthcare and IHH Healthcare are anticipated to benefit the most from this trend, given their strategic locations and capabilities. In addition, the research house offered an optimistic outlook for hospital operators who are shifting their focus towards prioritising brownfield projects and expanding their existing hospital capacity. HLIB Research said KPJ Healthcare aims to add 368 beds (a 9.9% increase) in 2024, bringing its total to 4,101 beds, while IHH Healthcare plans to add 3,800 new beds by 2028, representing a significant 33% increase in capacity across its key operating markets. As for UMediC, its upcoming expansion is set to double its manufacturing capacity to 600,000 bottles per month. KUALA LUMPUR (Dec 20): TA Securities has upgraded Chin Well Holdings Berhad to “buy” at RM1.27 with an unchanged target price (TP) of RM1.41 following the recent weakness in share price. In a note on Wednesday, the research house said it is more upbeat about Chin Well’s outlook, underpinned by the gradual demand recovery in the European market as well as increasing sales from the US market thanks to trade diversion. “On top of that, sales orders from the US market remain healthy due to local infrastructure spending as well as trade diversion. “On the other hand, the transitional period for Carbon Border Adjustment Mechanism (CBAM) has finally kickedoff on 1 Oct 2023,” it said. TA Securities said Chin Well’s management believes that it could be a game changer for the industry given that smaller steel players might get phased out due to stringent requirements and high compliance costs.
THURSDAY DECEMBER 21, 2023 12 THEEDGE CEO MORNING BRIEF HOME Proton receives over 4,000 bookings for new S70 sedan KUCHING (Dec 20): National carmaker Proton Holdings Bhd has received over 4,000 bookings for its newly launched S70 compact sedan so far. Proton deputy chief executive officer Roslan Abdullah said the overwhelming support reflects the trust and excitement customers have for this latest addition. “After establishing leadership in the sports utility vehicle segment with models like the Proton X50, X70 and X90, we now bring our technological prowess to a new family sedan. “Last week, the Proton S70 made its debut in Sabah, and now, we are thrilled to extend the excitement to the beautiful region of Sarawak. “Today marks a special occasion as we introduce a new era of driving innovation to this dynamic locale,” he said in his speech during the Proton S70 Sarawak launch event here on Wednesday. On Nov 28, Proton launched the S70 compact sedan and was targeting to sell over 3,000 units a month for the first year. Chief executive officer Li Chunrong said the 1.5-litre turbo S70 comes in four variants, namely the Executive, Premium, Flagship and Flagship X. The S70 will be delivered early next year, with the Premium and Flagship variants being the most popular. — Bernama Sunzen to acquire remaining 30% stakes in two subsidiaries for RM24 mil KUALA LUMPUR (Dec 20): Sunzen Biotech Bhd has entered into two conditional share sale agreements to acquire the remaining 30% stakes each in its subsidiaries Ecolite Biotech Manufacturing Sdn Bhd for RM18 million and Yanming Resources Sdn Bhd for RM6 million. The company told the stock exchange it has entered into a conditional share sale agreement with Koh Lee Fong, Lim Wee Chun, Fam Jian Yap and G Five Holdings Ltd for the acquisition of 2.25 million ordinary shares in Ecolite Biotech Manufacturing Sdn Bhd. The acquisition would be satisfied via a combination of cash amounting to RM1.8 million and an issuance of 54.9 million new ordinary shares in Sunzen at an issue price of 29.5 sen. Sunzen said it has also entered into a conditional share sale agreement with Lim Poh Chuw, Fam Jian Yap, Cai HeGui and Chua Huai Gen for the acquisition of 150,000 ordinary shares in Yanming Resources Sdn Bhd, which is to be satisfied via cash amounting to RM600,000 and an issuance of 18.3 million new ordinary shares in Sunzen, also at an issue price of 29.5 sen. — Bernama Ecobuilt unit wins RM23.16 mil in adjudication over construction project payment dispute KUALA LUMPUR (Dec 20): Ecobuilt Holdings Bhd’s wholly owned subsidiary Eko Bina Sdn Bhd has been awarded RM23.16 million after it obtained an adjudication decision in its favour in its case against Golden Wave Sdn Bhd. Eko Bina initiated the legal action on Aug 10 over a payment dispute relating to a serviced apartment and retail units project in Kota Kinabalu, Sabah. To recap, in January 2021, Golden Wave awarded a RM166.37 million contract to Eko Bina, previously known as E&J Builders Sdn Bhd, as the main contractor for the project, which is located along Jalan Wawasan in Sabah’s capital city. In a filing on Wednesday (Dec 20), Ecobuilt said that Golden Wave is required to pay an adjudicated sum of RM23.16 million as payments due and owing to Eko Bina. Golden Wave also has to bear the costs of adjudication of RM61,289 and the legal costs of RM30,000 for Eko Bina. All the costs must be paid within 30 days from the date of the adjudication decision (Dec 12). However, if Golden Wave fails to pay all the costs within the stipulated duration, it has to pay all the costs with a 5% interest per annum from the expiry date of the payment until the date of full and final settlement. — by Anis Hazim Harvest Miracle appoints largest shareholder Liu Han Ming as executive chairman KUALA LUMPUR (Dec 20): Harvest Miracle Capital Bhd (formerly Vortex Consolidated Bhd) has redesignated its non-independent non-executive director Datuk Liu Han Ming as executive chairman with immediate effect. Liu is succeeding Tan Ooi Jin who is resigning from the executive chairman post on the same date “to pursue other businesses”, according to bourse filings on Wednesday. It is worth noting that Ooi Jin also sits on the board of Ingenieur Gudang Bhd as an executive director. Touching on Liu, he is the IT and ICT-related product trader’s largest shareholder with a 25.02% stake via his investment vehicle Fortress Parade Sdn Bhd. He emerged as a major shareholder in March last year after he subscribed to the entire 306.52 million shares (25.02% stake) issued under a private placement exercise. A month later, he joined the company’s board as a director. — by Izzul Ikram NEWS IN BRIEF AmBank Group denies chairman’s link to ARJ Group KUALA LUMPUR (Dec 20): AmBank Group has denied any affiliation or association between its chairman emeritus and honorary adviser Tan Sri Azman Hashim and ARJ Group Management & Services Asia. The banking group said that it had come to the group’s attention that Azman has been linked with ARJ Group, which listed him as one of its directors. “We wish to clarify and confirm that Tan Sri Azman Hashim has no affiliation or association whatsoever with ARJ Group Management & Services Asia. “We kindly request the public and our stakeholders to exercise caution and verify information regarding any association purportedly involving Tan Sri Azman Hashim with due diligence,” AmBank Group said in a statement. According to its website, Azman was appointed as chairman emeritus and honorary adviser of AmBank Group April 30, 2022 after stepping down as chairman on April 29, 2022. His contribution, experience and insights led to AMMB Holdings Bhd acknowledging and appointing him to that position. Shares in AmBank Holdings ended the day four sen or 1% lower at RM4.03, giving it a market capitalisation of RM13.4 billion. — by Luqman Amin EON.COM.MY SUNZEN.COM.MY
THURSDAY DECEMBER 21, 2023 13 THEEDGE CEO MORNING BRIEF HOME SHAH ALAM (Dec 20): A 37-year-old who became the first man to be charged with stalking in Malaysia under an updated provision of the Penal Code, which criminalises stalking or repeated harassment, will go to trial despite pleading guilty. Magistrate Sasha Diana Sabtu on Wednesday ruled that Mohamad Safiq Rosli’s guilty plea recorded last week was one that was conditional, which the court could not accept. She then ordered for the matter to go on trial, which has been fixed for Jan 17 next year. Lawyer Fithril Hakim Ab Jalil, who represented Mohamad Safiq, informed the court that his client is standing by his plea of insanity and is planning to invoke Sections 347 and 348 of the Criminal Procedure Code, which deal with acquitting an accused on grounds of mental disorder and detaining the accused in a mental institution for as long as the state ruler permits. Fithril also asked the court to set one trial day and for a decision to be made within the same day. Deputy public prosecutor (DPP) Zilfinaz Abbas agreed that this is achievable if there are no extensive cross-examination or re-examination. In August, Mohamad Safiq, a freelance designer, was charged with repeatedly harassing photographer Acacia Mardiana Daud on social media platform X (formely Twitter). He was accused of sending three communications which expressed his feelings for the 31-year-old to her account in July, despite knowing that the act was likely to cause distress, fear or alarm to her. He was charged under Section 507A of the Penal Code, which carries a maximum sentence of three years in jail, a fine, or both upon conviction. The law came into force in May this year criminalising stalking, or repeated harassment. Mohamad Safiq has been in custody since August when he was charged, although bail was offered. The court also ordered a psychiatric evaluation on him. On Dec 15, the accused pleaded guilty to the charge, changing his initial plea recorded months prior. Convoluted proceedings and plea However, there was a twist to the mitigation on Wednesday when the DPP objected to the accused’s guilty plea if he was to invoke the defence of insanity under Section 347 of the Criminal Procedure Code, as it was a “conditional plea”. She said the psychiatric evaluation report only fulfilled the medical test of insanity. In order to satisfy the legal threshold, she said that it was on the defence to prove that Mohamad Safiq was not of sound mind during the incident. She argued that the legal test can only be fulfilled after a full trial. Zilfinaz also noted that the psychiatric evaluation report had contradicting findings where the doctor found that the accused is fit to enter a plea and for trial but also found that Mohamad Safiq was not of sound mind during the incident. Fithril contended that the guilty plea was not to release his client of culpability. He said that it has been stated since the beginning of the case that the mental state of his client was ambiguous. The counsel added that the prosecution themselves asked for the psychiatric evaluation and used that report selectively. “Justice will not be served if Mohamad Safiq is imprisoned. But if he is sent to a mental institution, then there is some chance of reform (for him),” Fithril argued. First man charged under new anti-stalking law to go to trial KUALA LUMPUR (Dec 20): The George Town High Court ordered Kepala Batas MP Siti Mastura Muhammad to file her statement of defence in the lawsuits brought against her by DAP leaders Lim Kit Siang, Lim Guan Eng and Teresa Kok by Jan 11, 2024. The court’s senior assistant registrar Tunku Intan Nadiah via e-review on Tuesday ordered her lawyer Mohamad Hakim Faharmi Hassan to file her statement of defence. Court orders PAS MP to file defence in DAP leaders’ suits over claims about Chin Peng family ties BY TIMOTHY ACHARIAM theedgemalaysia.com BY TARANI PALANI theedgemalaysia.com She also said that a reply to the statement of defence is to be filed on or before Jan, 26, 2024 by the trio’s lawyers led by Datuk Sankara Nair. The lawsuits, which were filed separately by the three, are in relation to Siti Mastura’s speech made while campaigning for the Kemaman by-election. The plaintiffs were also represented by lawyers Jaden Phoon Wai Ken and Wong Guo Jin. The politicians claimed that Siti Mastura made defamatory statements about them being related to the Communist Party and its leader Chin Peng, along with first Singaporean prime minister Lee Kuan Yew during a political talk on Nov 4, alleging that they were linked to the Communist Party, supported, practised and spread communist ideology and philosophy in the country. The plaintiffs said the defendant’s claims were baseless, false and with ill-intent as they deliberately associated them with the Communist Party and Chin Peng. “The defendant’s actions were motivated by deceit to garner publicity to boost her political party’s image,” the plaintiffs said in their statement of claim, in which they seek general damages, aggravated damages and exemplary damages as well as an injunction to prevent the defendant from further publishing the same statement. Court orders PAS MP to file defence in DAP leaders’ suits over Chin Peng family ties claim BERNAMA
THURSDAY DECEMBER 21, 2023 14 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF Govt discussing proposal to establish International Commercial Court in Malaysia — Azalina KUALA LUMPUR (Dec 20): The government is currently exploring the proposal to establish an International Commercial Court in Malaysia, said Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said. In a Facebook post, Azalina said that the proposal was discussed during her meeting with the Chief Justice of Malaysia, Tun Tengku Maimun Tuan Mat, and representatives of the judiciary at the Palace of Justice on Wednesday. She stated that this initiative aims to make Malaysia one of the preferred destinations in the region for the resolution of commercial law disputes. “And also enhance the confidence of foreign investors to invest in our country, in line with the Unity Government’s agenda to attract foreign investment to Malaysia through a suitable model,” she said. — Bernama Company director gets more than RM500,000 penalty for failing to submit tax returns KUALA TERENGGANU (Dec 20): A construction company director was fined RM9,000 and incurred a special penalty of RM536,549.13 by the Magistrates Court here on Wednesday after she pleaded guilty to failing to submit tax returns to the Inland Revenue Board (IRB) for two years. Magistrate Yuhanis Mohd Roslan meted out the sentence on Nur Faraziela Mohamad, 42, and ordered her to pay the overdue tax for the assessment years 2019 and 2020 amounting to RM178,849.71 The woman paid the fine. Based on the charge, Nur Faraziela, who is also a major shareholder of Cherang Sepadu Sdn Bhd, had failed to submit the Income Tax Statements (Form C) for the assessment years 2019 and 2020. The taxable revenue for 2019 was RM28,083, for which a tax of RM4,774.11 was due, whereas the taxable revenue for 2020 was RM900,315 with a tax of RM174,075.60. The charge was framed under Section 112(1A) of the Income Tax Act 1967, which is punishable by a fine of between RM1,000 and RM20,000 or a prison term of not more than six months, or both, and a special penalty of three times the taxes owed. IRB prosecuting officer Noor Mazida Buliami appeared for the prosecution, while the company director was unrepresented. — Bernama Covid-19: Current Omicron variant non-virulent, says public health specialist KUALA LUMPUR (Dec 20): The Omicron variant currently dominating Covid-19 infections is not virulent, according to Ministry of Health (MOH) Public Health Medicine Specialist Dr Tan Seok Hong. She said most active cases involving the Omicron variant exhibit mild symptoms. In addition, Dr Tan said Covid-19 cases are expected to decrease within a month, based on MOH’s observations of the trend in virus infections. “Although cases may rise again soon, in four to six weeks, it will decrease. Before this, there has been an increase in cases as well, but based on observations, the cases will decrease after one month,” she said when appearing as a guest on Bernama Radio’s Jendela Fikir programme on Wednesday, while discussing on protecting high-risk groups. Nevertheless, Dr Tan advised the public to take precautionary measures during the school holiday season. She said individuals testing positive for Covid-19 and in selfquarantine need not prolong isolation beyond the fifth day, even if subsequent test results remain positive. “MOH will soon release guidelines regarding the third booster dose,” she said, adding that until then, the public is urged to adhere to existing procedures. — Bernama Fahmi: Socso protection soon for film industry workers, including freelancers PUTRAJAYA (Dec 20): Workers in the film sector, including freelancers, will receive Social Security Organisation (Socso) protection that will also include pension benefits, Communications Minister Fahmi Fadzil said. He said the scheme will enable film industry practitioners, many of whom face difficulties in terms of social security, including pension issues, to have sufficient protection. Therefore, Fahmi said the National Film Development Corporation Malaysia (Finas) has been asked to engage in in-depth discussions with Socso, to enable the implementation of the scheme as soon as possible. “For cast and crew, their hands, legs and bodies are their tools for work. Should anything happen, the impact is lifelong,” he said. He was speaking to newsmen after attending the “Program Spotlight: Apresiasi Sinema Malaysia Tahun 2023” event here on Wednesday, which gives recognition to production companies and industry players who have made significant contributions to the national and international film industry. — Bernama MASwings acquisition to be completed by 2Q or 3Q next year — Abang Jo KUCHING (Dec 20): The acquisition of MASwings Sdn Bhd by the Sarawak government is expected to be finalised by either the second or third quarter of next year, said Premier Tan Sri Abang Johari Tun Openg. He said two state ministries — the Ministry of Tourism, Creative Industry and Performing Arts and the Ministry of Transport— are currently conducting due diligence on the matter. “The tourism ministry is tasked with looking at the market potential. For me, the takeover project is like a bridge for us. Sarawak has no other option,” he told reporters after attending the launch of the book, ‘The Life of Datuk Polycarp Sim Cheng Mong’, here on Wednesday. On Nov 23, state Deputy Transport Minister Datuk Dr Jerip Susil said the Sarawak government was currently conducting due diligence on MASwings in preparation for its acquisition. Negotiations are also ongoing with the Malaysia Aviation Group (MAG) and Khazanah Nasional Bhd to acquire the shares in MASwings. — Bernama REUTERS ZAHID IZZANI/THE EDGE
thursday december 21, 2023 15 The E dge C E O m o rning brief world (Dec 20): More than a hundred container ships are taking the long route around Africa to avoid violence in the Red Sea, creating extra costs and delays, as the US weighs up how to respond to the latest threat to the global economy. According to logistics giant Kuehne+Nagel, 103 container vessels are rerouting from the Red Sea around Africa. Companies are also starting to look at using rail and air routes instead as the waterway that carries 12% of global trade is deemed too perilous to pass. The attacks on commercial vessels by the Yemen-based Houthi militants amount to an escalation of the Israel-Hamas war, but not the one most analysts had been expecting. The Houthis are acting in support of Hamas — initially targeting ships linked to Israel — and the US and its allies are figuring out how best to respond without making the violence worse. As Washington tries to forge a common position — one option is strikes on Yemen — shippers are digging in for weeks of disruption. Insurance premiums are surging for those who do cross the Red Sea, freight rates are up and so are oil prices — all potential factors for more inflation just as central banks appeared to be gaining the upper hand. “Both options of increased premiums and rerouting around Africa will see a knock-on effect on the price of goods,” said Toby Vallance, Executive Committee Member of the London Forum of Insurance Lawyers. The US and its allies are bringing together a new task force to tackle Iran-backed Houthis, though it’s not clear when it will come into effect. They’re also weighing up possible military strikes, but diplomacy remains the preferred approach for now, according to people familiar with the matter. Some countries, including Saudi Arabia, which borders Yemen, are wary that strikes will provoke the Houthis, who have a formidable arsenal of ballistic missiles, to become even more aggressive. Shippers are worried that even some of the solutions bring their own problems. Convoys, for example, imply delays. “It will slow down the trade because we will have to wait for a convoy to pass through” the region, Euronav NV Chief Executive Officer Alexander Saverys said in an interview with Bloomberg TV. The oil tanker giant has halted shipments via the Red Sea and won’t go back until such military escorts are in place. by Stefan Nicola Bloomberg Over 100 container ships reroute as US weighs Red Sea response The attacks have created potentially a worse — and more enduring — shipping emergency than the Suez Canal shutdown in 2021, when a ship stuck for a week snarled global trade for months. The disruption also comes just as the other main artery, the Panama Canal, is slowing down because of drought. Still, the global shipping system has more slack in it than it did when the Ever Given got stuck. And there are reasons to believe the disruptions will have only a moderate economic impact, Bloomberg Economics said on Tuesday. “Most likely, the rerouting will mean higher prices — especially for countries most reliant on maritime trade through the Suez Canal — but with a far lower impact than the Covid-era spike in transportation and energy prices,” the analysts said in a report. Read also: Shipping industry in the dark over US-led Red Sea navy force Shipping companies remain in the dark over a new international navy coalition being assembled by the United States to combat attacks in the Red Sea, with many vessels continuing to avoid the area or cancelling contracts, sources said on Wednesday. Brent lurks above US$80 as Red Sea tensions spur jitters Brent crude futures were up US$1.07, or 1.4%, at US$80.30 a barrel by 1449 GMT, while US West Texas Intermediate crude climbed US$1.14, or 1.5%, to US$75.08 a barrel. The attacks have created potentially a worse — and more enduring — shipping emergency than the Suez Canal shutdown in 2021, when a ship stuck for a week snarled global trade for months. The disruption also comes just as the other main artery, the Panama Canal, is slowing down because of drought.
thursday december 21, 2023 16 The E dge C E O m o rning brief world (Dec 20): The downturn in the UK housing market steepened in October, with the average cost of a home sliding 1.2% from a year earlier as higher interest rates stymied activity. The average house costs £288,000 (RM1.7 million), the Office for National Statistics (ONS) said Wednesday. The fall followed a 0.6% annual decline in September. London house prices in October dropped 3.6%, the most since 2009 when the financial crisis was raging. The figures add to the impression of a property market under pressure after the Bank of England aggressively raised interest rates in a bid to tame inflation. The ONS recorded 82,910 transactions in October, down 21% on the year and 3% on a month earlier. Falling house prices could prove problematic for Prime Minister Rishi Sunak, who is gearing up for a general election next year. Traditional Conservative voters tend to be more likely to own property, and will be keen to avoid a fall in valuations. Yet with the Tories lagging the opposition Labour Party in opinion polls, Sunak also needs to appeal to a wider demographic — and younger voters have consistently rated the affordability and availability of housing among their top issues. ONS Head of Housing Market Indices Aimee North said the falls in October were “widespread across almost all nations and regions with only Scotland and the North East of England reporting annual price growth”. “London saw the steepest fall in average house prices and its annual inflation rate now stands at its lowest level since 2009,” she said. Read the full story London house prices see biggest fall since 2009 in ONS data LONDON (Dec 20): British inflation plunged in November to its lowest rate in over two years, prompting investors to pile further into bets that the Bank of England (BOE) will cut interest rates in the first half of next year. The annual rate of increase in consumer prices dropped to 3.9% from 4.6% in October, pushed down in part by cheaper petrol, for its lowest reading since September 2021, the Office for National Statistics (ONS) said on Wednesday. The headline consumer prices index (CPI) inflation reading was below all forecasts in a Reuters poll of economists which had pointed to a figure of 4.4%. Core and services measures of inflation — closely watched by the BOE — also dropped. Investors moved to fully price in a BOE rate cut by May 2024 and now see a nearly 50% chance of a cut by March. The pound shed almost half a cent against the US dollar, falling from US$1.271 to US$1.266. British government bond yields also tumbled. With its headline rate of inflation now matching that of France, Britain no longer looks like such an outlier in international terms. But the almost 21% rise in consumer prices since 2020 is still more than any other Group of Seven advanced economy and the joint-highest increase in western Europe. CPI inflation peaked at a 41-year high of 11.1% in October 2022, driven higher by a surge in energy prices after Russia’s full-scale invasion of Ukraine, which aggravated existing bottlenecks that were pushing up prices after the Covid-19 pandemic. BOE officials have been cautious about whether recent signs of cooling inflation truly represent a sign that persistent, longer-run price pressures are receding, but economists said the latest figures may prompt a rethink. “This provides strong evidence that disinflationary pressures are building in the UK,” PwC economist Jake Finney said. “Headline, core and services inflation are all now materially below the Bank of England’s expectations in their last November Monetary Policy Report.” The ONS said transport — and particularly motor fuels — was the biggest downward contributor to inflation in November. Fuel prices were 10.6% lower than the year before. A much smaller monthly rise in food and drink prices than in November last year also helped, although they remain 27% higher than two years ago and have risen more than 9% in the past 12 months. Finance Minister Jeremy Hunt said the data showed inflation pressures were being removed from the economy. Opposition Labour Party spokeswoman Rachel Reeves said people were worse off after 13 years of Conservative government. Prime Minister Rishi Sunak, who is set to meet his promise to halve inflation this year, must hold a national election by January 2025. Core inflation, which strips out energy and food prices, showed an unexpectedly sharp drop, falling to 5.1% from 5.7%. The rate of services inflation — which BOE officials pay particular attention to as a gauge of domestically generated inflation — fell to 6.3% from 6.6%. Samuel Tombs, economist at Pantheon Macroeconomics, said the BOE’s new measure of underlying services inflation also fell sharply — something the BOE could not dismiss as “noise”. The central bank has been concerned that historically high rates of wage growth will be slow to fall given workers’ recent experience of inflation and a fairly tight labour market, making it hard for CPI to fall all the way back to the BOE’s 2% target. Separate data showed manufacturers’ raw materials costs were 2.6% lower than a year earlier, the same pace of decline as in October and the joint-biggest since July. Producer output prices fell 0.2%, slightly less than the 0.5% decrease forecast by economists in a Reuters poll. Read also: World shares hit near two-year high, focus on UK inflation, Red Sea UK households could see energy bills fall 14% by spring Big UK inflation drop bolsters bets on Bank of England cuts early next year by Andy Bruce & David Milliken Reuters by Lucy White Bloomberg reuters
thursday december 21, 2023 17 The E dge C E O m o rning brief world (Dec 20): The slowdown in China’s equity offerings may not be over just yet as the country’s economy remains in the doldrums and regulations for new listings become stricter. New and additional share sales in mainland China and Hong Kong fell 43% from last year to US$96.3 billion (RM451.1 billion) in 2023. The annual proceeds raised are set to be the worst in a decade, Bloomberg data showed. That compares with a 51% increase in volume raised in the US and a 14% rise in Europe. Chinese companies and their holders have refrained from tapping investors through stock sales as a weak economic outlook and fizzling expectations for a bazooka stimulus programme weigh on sentiment. The onshore CSI 300 Index has fallen 14% this year, while the Hong Kong benchmark has slump over 15%. “We hope to see more of a top-down approach in terms of policy support, and more focus on the economy, which will help us actually rebuild a little bit of investor confidence, with international capital hopefully flowing back into the China business,” said Selina Cheung, co-head of Asia equity capital markets at UBS Group AG in Hong Kong. Measures introduced by Beijing to slow the pace of initial public offerings may also put the brakes on companies’ plans to come to market. Stock performances have also been less than impressive. Local investors used to enjoy hefty gains from IPO stocks, but the average first-month gain for new shares on the mainland has fallen to 22% this year from 27% in 2022 and 81% in 2021, Bloomberg data showed. Read the full story China share sale malaise seen persisting amid economic slump (Dec 20): ByteDance Ltd’s sales surged in 2023 to more than US$110 billion (RM512.38 billion), according to people familiar with the matter, potentially overtaking arch-foe Tencent Holdings Ltd in a sign TikTok’s fledgling e-commerce business is driving growth at a time of economic malaise. The world’s most valuable startup’s growth broadly matched the 30% pace it managed in 2022, when it reported sales in excess of US$80 billion, the people said, asking not to be identified as the information isn’t public. That’s despite economic turbulence in China and elevated scrutiny and restrictions in key markets from the US to India. The owner of TikTok and Chinese-twin Douyin this year cemented its position as one of China’s internet leaders, alongside Tencent and Alibaba Group Holding Ltd, leveraging the popularity of its social video services to expand into e-commerce and other spheres. At roughly 30%, ByteDance would outpace the projected growth of far more established social media rivals Meta Platforms Inc and Tencent, which is estimated to generate US$86 billion in revenue this year. It’s not clear how ByteDance — which as a private firm has far fewer disclosure and audit requirements versus its listed rivals — performed in profitability this year. While its internal numbers haven’t been independently audited, the sheer scale suggests the social media juggernaut in 2023 became one of China’s largest corporations by revenue. Its earnings before interest, tax, depreciation and amortization surged 79% to about US$25 billion in 2022, the Financial Times reported in April, citing investors briefed on the number. A ByteDance spokesperson declined to comment. ByteDance is banking on its Chinese home base to bankroll a global and business expansion in 2024. In China, Douyin is morphing to become an all-in-one platform with built-in features for food orders, flight tickets and hotel reservations, encroaching on the main territory of Alibaba and delivery leader Meituan. Abroad, TikTok is following that strategy to blend videos and shopping in markets like the US and Indonesia, where it has taken control of GoTo’s e-commerce unit Tokopedia. The US$1.5 billion deal, which marks one of ByteDance’s biggest takeovers in recent years, allows TikTok to restart its online retail service after months of scrutiny by the Indonesian government. ByteDance’s sales break US$110 bil to pass Tencent this year In the US, TikTok is still working to address concerns around national security due to its Chinese ownership by setting up a standalone team to manage local user data. The hostility reached its peak in March, when American lawmakers grilled TikTok chief executive officer Shou Chew in a five-hour hearing. But Washington quickly shifted to issues like semiconductors and venture funding. Longer term, it remains to be seen if ByteDance can continue to challenge the major incumbents on their turf or make its mark in artificial intelligence. ByteDance has tried to expand beyond the social media apps that pushed its valuation to above US$200 billion, the highest of any startup in the world, with limited success. The company this year pulled the plug on its game development business, slashing hundreds of jobs while weighing sales of existing projects. Its ChatGPT-like service, Doubao, competes with a sea of Chinese AI bots funded by well-known venture firms and fellow technology companies. The company founded more than a decade ago by coding wizards Zhang Yiming and Liang Rubo is one of the few remaining Chinese internet IPO candidates, but there’s still no clear path to its eventual stock market debut. In the latest round of investor buybacks, it’s offering to purchase up to US$5 billion from shareholders at a valuation of US$268 billion, roughly 11% lower than the price in a similar programme in 2022. by Zheping Huang & Manuel Baigorri Bloomberg by Filipe Pacheco & Pei Li Bloomberg
thursday december 21, 2023 18 The E dge C E O m o rning brief world (Dec 20): A little-known Japanese firm has sued Alibaba Group Holding Ltd in three countries for allegedly violating its patents on cross-border e-commerce, seeking court injunctions or damages against the Chinese online pioneer. Tokyo-based patent rights company BWB Inc filed for an injunction against Alibaba’s overseas transactions at the Seoul central district Ccurt on Friday. BWB, which owns customs-clearance and logistics patents, had filed for injunctions and damages at the Tokyo district court in April and at the US district court for the northern district of California in November. BWB’s system helps merchants pre-register goods at customs at a pre-determined tax rate and helps customers pay the duties at the time of the purchase, ensuring delivery. In the Japanese lawsuit, BWB asked for an injunction against Alibaba and its logistics unit Cainiao, as well as Tmall operator Taobao China Holding Ltd, according to a copy of the lawsuit seen by Bloomberg News. An Alibaba spokesperson said the company doesn’t comment on ongoing litigation. The company has previously denied it infringed on BWB’s patents and asked the Tokyo court to dismiss the claims. Kota Morimoto, a spokesperson for BWB, confirmed they filed lawsuits in three countries but declined to comment further. (Dec 20): Alibaba Group Holding Ltd replaced one of its most experienced executives at the helm of e-commerce and plans to create a firm to oversee its investment assets around the world, the latest in a series of sweeping changes to roil the once-dominant Chinese online juggernaut. Chief executive officer Eddie Wu will replace Trudy Dai, one of an inner circle of partners present when Jack Ma founded the company in 1999, as head of the division that runs Alibaba’s main Chinese e-commerce platforms Tmall and Taobao. Dai will instead help set up an entity to manage some of its vast portfolio of assets around the world. Alibaba, whose investments include stakes in startups as well as businesses from entertainment to physical retail, described that entity as overseeing the company’s non-core assets without elaborating. Alibaba’s shares rose 2% in Hong Kong on Wednesday. The surprise decision comes as Alibaba strives to rejuvenate a company after a series of missteps and regulatory scrutiny has eroded its market dominance in past years. Dai’s departure marks the latest shakeup at the Chinese corporate icon, which has endured post-Covid consumption volatility, a bruising years-long government crackdown and — most recently — the surprise ascent of rivals including PDD Holdings Inc and ByteDance Ltd. Wu, who himself took over Alibaba just months ago, intends to cultivate new managers to steer his firm for the longer term. The decisions for now may reflect a desire to take direct control of under-performing divisions, while exploring sales of businesses considered less essential to the main cloud, retail and logistics divisions. “Alibaba wants to go into battle with a light pack, and this is a way to handle a lot of its more burdensome and non-core businesses,” said Li Chengdong, head of the Beijing-based Internet think-tank Haitun. “These hinder the overall competitiveness and flexibility of the company.” Once the most valuable company in China, Alibaba has fallen behind games and social media leader Tencent Holdings Ltd. It lost its position as China’s most valuable e-commerce operator to eight-yearold upstart PDD, which has far outstripped Alibaba’s growth with the help of hit shopping app Temu. Ma, arguably China’s most famous entrepreneur, in November broke years of silence to issue a call to arms for employees, following years of brutal government punishment and a series of volatile decisions in 2023. Earlier this year, the company unveiled a plan to split itself into six parts — then walked back that plan while ejecting former CEO Daniel Zhang. It scrapped a spinoff of its US$11 billion (RM51.5 billion) cloud division that some investors wanted, declaring that the company needed a “reset.” “We must confront our past and change ourselves for the future,” Alibaba chairman Joseph Tsai said in an internal memo announcing the latest changes to employees on Wednesday. “Soon, we will empower a new cohort of management leaders who have developed fundamental skillsets and experience from the bottom up.” Alibaba is now bent on clawing back lost ground and investing anew in cloud and e-commerce — its two biggest businesses. Wu and other executives have also talked about the need to review their investment portfolio to identify and create value from Alibaba’s assets. Dai is one of its most influential leaders, an engineer by training who around 2022 took over the management of Taobao and Tmall. The Chinese e-commerce division accounted for more than 40% of overall revenue this year. Alibaba in November reported better-than-expected revenue, driven by its overseas business as well as the logistics arm Cainiao. It’s unclear however what the company intends to do with more peripheral operations and which ones will be folded into the holding company, which is supervised by a committee under Tsai. Those include video service Youku Tudou or its InTime department store chain, Li said. “This is another big step to reverse Alibaba’s previous plan to split up under Daniel Zhang. Now Wu will take control of the group, cloud and Taobao-Tmall, with more consolidation of power to the group level,” said Willer Chen, research analyst at Forsyth Barr Asia. “There could be more sales of non-core assets looking ahead.” by Sarah Zheng Bloomberg by Masatsugu Horie Bloomberg Japanese firm hits Alibaba with patent lawsuits from US to Korea Alibaba ousts commerce chief, splits assets in new shakeup reuters
thursday december 21, 2023 19 The E dge C E O m o rning brief world TOKYO (Dec 20): Toshiba was delisted on Wednesday after 74 years on the Tokyo exchange, following a decade of upheaval and scandal that brought down one of Japan’s biggest brands and ushered in a buyout and an uncertain future. The conglomerate is being taken private by a group of investors led by private equity firm Japan Industrial Partners (JIP) that also includes financial services firm Orix, utility Chubu Electric Power and chipmaker Rohm. The US$14 billion (RM65.6 billion) takeover puts Toshiba in domestic hands after protracted battles with overseas activist investors that paralysed the maker of batteries, chips, and nuclear and defence equipment. Toshiba “will now take a major step toward a new future with a new shareholder,” the company said in a statement, adding that it would appreciate continuous understanding and support from its stakeholders. Toshiba shares ended Tuesday, their last trading day, at ¥4,590, down 0.1% from the previous day. Although it is not clear what shape Toshiba will ultimately take under its new owners, chief executive Taro Shimada, who is staying in his role following the buyout, is expected to focus on high-margin digital services. JIP’s support for Shimada had derailed its earlier plan to team up with a statebacked fund. Some industry insiders say Toshiba delisted after 74 years, faces uncertain future with new owners (Dec 20): Toyota Motor Corp pledged “fundamental reform” after subsidiary Daihatsu Motor Co was forced to suspend all shipments — and now faces a government raid of its offices — following an investigation that found most of its vehicles weren’t properly tested for collision safety. The situation presents a crisis of trust not only for the world’s largest carmaker, which suffered a another scandal last year with its other major unit Hino Motors Ltd, but also for the country’s automotive industry. “It is honestly surprising,” Bloomberg Intelligence senior auto analyst Tatsuo Yoshida said, adding that it might be necessary for Daihatsu to suspend production as well, due to the time it can take to reacquire certifications that were fraudulently obtained. “Toyota won’t be exempt from management oversight responsibility.” Toyota said in a statement on Wednedsay that around 174 irregularities have been identified across 64 models, including in some cars sold under the Toyota brand. The move to suspend Daihatsu’s shipments will affect vehicles produced in Toyota vows reform after affiliate Daihatsu caught in safety scandal by Nicholas Takahashi Bloomberg by Anton Bridge Reuters splitting up Toshiba may be a better option. “Toshiba’s difficulties ultimately were caused by a combination of bad strategic decisions and bad luck,” said Damian Thong, head of Japan research at Macquarie Capital Securities. “I hope that through divestitures, Toshiba’s assets and human talent can find new homes where their full potential can be unleashed.” Japan’s government will be keeping a close watch. The company employees around 106,000 people and some of its operations are seen as critical to national security. Four JIP executives will join the board, as well as one each from investors Orix and Chubu Electric. The new management team will be joined by a senior adviser from Toshiba’s main lender, Sumitomo Mitsui Financial Group. Toshiba has begun moving already, teaming up with Rohm to invest US$2.7 billion in manufacturing facilities to jointly produce power chips. The company needs to get out of lower-margin businesses and develop stronger commercial strategies for some of its advanced technologies, said Ulrike Schaede, a professor of Japanese business at the University of California, San Diego. “If management can figure out a way to let those engineers truly engage in breakthrough innovation activities, they can emerge as an important player,” Schaede said. “They’re a deep tech company.” Read the full story Japan and overseas, and not only at Toyota factories but possibly also at companies like Mazda Motor Corp and Subaru Corp, considering Daihatsu provides manufacturing services to a range of other automakers. Previously, only about half a dozen models were thought to be affected by the manipulated test results, but Toyota now says almost every car in Daihatsu’s line-up could be impacted. Japan’s transport ministry said it will conduct an onsite inspection of the company’s offices on Thursday at 9 a.m. local time. The investigation centres around cars’ airbag control unit and found that the ones used during crash tests were different from the ones used in cars actually sold to the public. While those other test units were later found to meet industry standards, side-collision test results of the Daihatsu Cast and Toyota Pixis models “may not comply with the law,” Toyota said. Toyota said it’s not aware of any accidents or incidents related to the issue. Bloomberg reuters
thursday december 21, 2023 20 The E dge C E O m o rning brief world (Dec 20): Artificial intelligence (AI) programmes can’t be named as an inventor for patents, the UK’s top court said in a crucial ruling refusing to put machines on a near-equal footing with humans. Britain’s Supreme Court rejected the request by Imagination Engines Inc founder Stephen Thaler, who sought patents naming his AI machine DABUS as the inventor. Laws on patents require an inventor to be a natural person and “DABUS is not a person at all”, the judges said, dismissing Thaler’s appeal unanimously. While the ruling follows the same stance as decisions in the US and the European Union, it’s the first by any country’s highest tribunal. It assumes significance as it comes when the UK is aiming for a pioneering role in AI technologies and stakeholders debate safeguards and regulation around it. The judges said “it may be thought that the rapid advances in AI technology in recent times render these questions even more important”. Thaler had tried registering the patent in multiple countries for a beverage container and a flashing light saying DABUS was the inventor. Thaler didn’t immediately respond to an email for comment. “DABUS is a sentient being,” he had previously said. The judgement puts the UK at a substantial disadvantage in supporting AI-dependent industries and could disincentivise the disclosure of inventions by AI systems, said Robert Jehan, a partner at law firm Williams Powell, which represented Thaler in the case. It “shows how poorly current UK patent law supports the aim of making the UK a global centre for AI and data-driven innovation”, Jehan added. Given the striking speed of advancing AI capabilities, the issue “may need to be addressed again in the future”, said Yohan Liyanage, a partner at law firm Linklaters. “If the UK government is serious in its aspiration to establish itself as an AI suAI can’t be named as inventor for patents, UK top court says SINGAPORE (Dec 20): Singapore Exchange (SGX)-listed SPAC (special purpose acquisition companies) firms Pegasus Asia and Novo Tellus Alpha Acquisition (NTAA) are not looking to merge with any target companies and are instead seeking to dissolve the blank-cheque companies, according to sources familiar with the matter. This is on the back of lower-than-expected numbers owing to unfavourable market conditions, The Edge Singapore understands. Pegasus’ announcement is expected to be made by Dec 22 while NTAA’s is set to be released next week. The deadline for SGX-listed despac mergers is January 2024. Should the spacs be dissolved, investors’ funds will be returned. The Edge Singapore has reached out to both Pegasus and NTAA to seek clarification. In September, The Edge Singapore reported that Pegasus was targeting Singapore-based Kacific Satellites. Founded by Christian Patourax in 2013, Kacific operates wholesale broadband satellite services, serving telecom operators, ISPs and governments. It boasts experienced global telecom and infrastructure investors. Kacific launched its first Ka-band high throughput satellite, Kacific-1, in 2019 to stream high-speed, low-cost and ultra-reliable broadband to rural and suburban areas of the Pacific and Southeast Asia. One of the company’s longtime partners is ST Engineering iDirect, the satellite innovation arm of SGX-listed ST EngineerTwo remaining SGX-listed SPAC firms to dissolve, ending further de-SPAC hopes by Khairani Afifi Noordin theedgesingapore.com by Upmanyu Trivedi Bloomberg perpower, legislative intervention may be required to allow patentability of inventions which are independently created by AI systems,” Liyanage said. The ruling was not concerned with the broader question of whether technical advances made by an autonomous AI-powered machine are patentable, according to the judges. “The judgement does not preclude a person using an AI to devise an invention — in such a scenario, it would be possible to apply for a patent provided that person is identified as the inventor,” said Rajvinder Jagdev, a partner law firm Powell Gilbert. The judges agreed with the government’s lawyers who had argued that allowing Thaler’s request would leave the UK as an outlier. If Thaler’s request is allowed, inventors in future could include “my cat Felix” or “cosmic forces”, the lawyer had argued. Any change in patent laws to help the UK become a global centre for AI can only come following international level deliberations, the UK’s Intellectual Property Office said in an emailed statement after the judgement. “The government will nevertheless keep this area of law under review to ensure that the UK patent system supports AI innovation and the use of AI in the UK.” ing, which provides Kacific with ground infrastructure. Meanwhile, in a response to The Edge Singapore’s report via a filing dated Dec 20, NTAA executive chairman and CEO Loke Wai San says the company has not identified a conclusive target and will make the relevant disclosures at the appropriate time. Under SGX’s rules, the despacs are to take place within two years, although an extension of a year can be given, subject to approvals. As NTAA commenced trading on Jan 27 2022, it is likely that the spac would need to apply for the aforementioned extension. The only SGX-listed spac that has successfully completed a business combination is Vertex Technology Acquisition Corp (VTAC), having merged with live-streaming platform 17LIVE following an EGM on Dec 1. Notably, institutional investors such as Fullerton Fund Management and NTUC Income have fully redeemed their shares. On the day of the EGM, VTAC announced that 62.53% of the company’s issued share capital have been redeemed as at Nov 29. Shares in 17LIVE closed at $1.56 on Dec 19, almost 70% lower than VTAC’s IPO price of $5. the edge singapore
thursday december 21, 2023 21 The E dge C E O m o rning brief world news In brie f Singapore raises rental occupancy cap to meet high demand (Dec 20): Singapore will allow more tenants to occupy a single property under a temporary two-year measure to meet higher rental demand in the financial hub. Starting next year, larger public and private residential properties will be allowed to house up to eight unrelated persons from the current cap of six, Minister for National Development Desmond Lee said in a Facebook post on Wednesday. Rents in the city-state have surged since the pandemic, largely due to strong demand amid Covid-19 construction delays, Lee said. The government has committed to ramp up housing supply, with close to 100,000 homes expected to be completed by 2025. The momentum in rental price rises has moderated and demand is expected to be restrained by high interest rates and moderation in wage growth, the country’s central bank said last month. Still, Lee anticipates the need to maintain a healthy rental supply for buyers waiting to move into their new homes and foreigners who work and study in the city-state. The new measures will only apply to four-bedroom apartments or larger, Lee said. Singapore will review the need to extend the temporary rules in end-2026. — Bloomberg Moomoo Singapore receives in-principle approval for digital payment token services from MAS SINGAPORE (Dec 20): Moomoo Financial Singapore has received an in-principle approval for a major payment institution (MPI) licence — digital payment token service from the Monetary Authority of Singapore (MAS). Moomoo, which is the first digital brokerage to receive the licence, is now able to offer digital payment token services to retail and institutional investors in Singapore once it gets the full licence. So far, only 15 firms have been granted the MPI licence to become digital payment token service providers. Another two firms hold the standard payments institution licence. All 17 firms are able to provide digital payment token services, such as the buying and selling of digital payment tokens on their platforms. — theedgesingapore.com Abu Dhabi’s PureHealth soars 69% on market debut after almost US$1 bil IPO DUBAI (Dec 20): Shares in Abu Dhabi healthcare platform PureHealth Holding climbed as much as 69% above their listing price on Wednesday on their market debut, after raising almost US$1 billion in an initial public offering (IPO) for 10% of the business. PureHealth played a pivotal role in screening for Covid-19 infections in the United Arab Emirates, and its IPO has been in the works for years. It is the UAE’s largest healthcare provider, but has plans to grow internationally. Shares traded at 5.5 dirhams (US$1.50), as the Abu Dhabi market opened against an IPO offer price of 3.26 dirhams per share. PureHealth is owned by Abu Dhabi sovereign wealth fund ADQ and one of the capital’s biggest conglomerates, IHC, both of which are reuters reuters Chinese earthquake victims pulled to safety in sub-zero cold HAIDONG, China (Dec 20): Braving sub-zero cold, rescuers on Wednesday pulled to safety victims of an earthquake that rocked a remote area in China’s northwestern Gansu province, while survivors faced months of uncertainty ahead without permanent shelter. The magnitude 6.2 earthquake jolted Jishishan county near the border straddling Gansu and Qinghai provinces a minute before midnight on Monday, sending frightened residents out of homes into the cold in the dead of the night. Roads, power and water lines and agricultural production facilities suffered damage, and the quake triggered land and mudslides. In Gansu, 113 people had been found dead as of 9am on Wednesday (0100 GMT) and 782 were injured, authorities said. The death toll in neighbouring Qinghai rose to 21 with 186 injured and 13 missing as of 4pm on Wednesday. Seventy-eight people have been found alive in Gansu, where rescue operations ended on Tuesday afternoon, Chinese media said, as the focus shifted to treating the wounded and resettling residents as a months-long winter loomed. It was not immediately clear whether the search in Qinghai had ended or not. In Gansu, more than 207,000 homes were wrecked and nearly 15,000 collapsed, affecting more than 145,000 people. More than 128,000 emergency supply items including tents, quilts, tent lights and folding beds were delivered while food such as steamed buns and instant noodles were provided to the victims. — Reuters chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed. IHC subsidiaries have previously listed on the ADX exchange to boost the market as part of a broader strategy to diversify the citystate’s economy away from hydrocarbons, deepen capital markets and spur investment. — Reuters Bloomberg Rescue workers retrieve belongings from a damaged house at Shiyuan village following the earthquake in Jishishan county, Gansu province, China Dec 20, 2023
thursday december 21, 2023 22 The E dge C E O m o rning brief world WASHINGTON (Dec 20): Former president Donald Trump is disqualified from serving as US president and cannot appear on the primary ballot in Colorado because of his role in the Jan 6, 2021, attack on the US Capitol by his supporters, the state’s top court ruled Tuesday. The historic 4-3 ruling by the Colorado Supreme Court, likely to be taken up by the US Supreme Court, makes Trump the first presidential candidate deemed ineligible for the White House under a rarely used constitutional provision that bars officials who have engaged in “insurrection or rebellion” from holding office. The ruling applies only to Colorado’s March 5 Republican primary but it could affect Trump’s status in the state for the Nov 5 general election. Nonpartisan US election forecasters view Colorado as safely Democratic, meaning that President Joe Biden will likely carry the state regardless of Trump’s fate there. Trump vowed to appeal the ruling to the US Supreme Court, and the Colorado court said it would delay the effect of its decision until at least Jan 4, 2024, to allow for an appeal. The ruling sets the stage for the Supreme Court, whose 6-3 conservative majority includes three Trump appointees, to consider whether Trump is eligible to serve another term as president. The lawsuit is viewed as a test case for a wider effort to disqualify Trump from state ballots under Section 3 of the 14th Amendment, which was enacted after the US Civil War to keep supporters of the confederacy from serving in the government. The Colorado court concluded that the US Constitution bars Trump, the frontrunner for the Republican nomination in 2024, by Andrew Goudsward & Jack Queen Reuters Trump barred from Colorado primary ballot for role in US Capitol attack from appearing on the ballot because of his role instigating violence at the Capitol as lawmakers met to certify the results of the 2020 election. The court’s majority acknowledged the decision was “uncharted territory.” “We do not reach these conclusions lightly,” the majority justices wrote. “We are mindful of the magnitude and weight of the questions now before us. We are likewise mindful of our solemn duty to apply the law, without fear or favor, and without being swayed by public reaction to the decisions that the law mandates we reach.” Trump’s campaign called the court decision “undemocratic.” “The Colorado Supreme Court issued a completely flawed decision tonight and we will swiftly file an appeal to the US Supreme Court,” a spokesperson from the Trump campaign said. The decision reverses a ruling by a lower court judge who found Trump engaged in insurrection by inciting his supporters to violence, but concluded that, as president, Trump was not an “officer of the United States” who could be disqualified under the amendment. The Biden campaign declined to comment. Colorado voters The case was brought by a group of Colorado voters, aided by the advocacy group Citizens for Responsibility and Ethics in Washington (Crew), who argued that Trump should be disqualified for inciting his supporters to attack the Capitol in a failed attempt to obstruct the transfer of presidential power to Biden after the 2020 election. Crew president Noah Bookbinder said in a statement that the court’s decision is “not only historic and justified, but is necessary to protect the future of democracy in our country.” Courts have rejected several lawsuits seeking to keep Trump off the primary ballot in other states. Minnesota’s top court rebuffed an effort to disqualify Trump from the Republican primary in that state, but did not rule on his overall eligibility to serve as president. Some advocates had hoped the Colorado case would boost the overall disqualification effort and potentially put the issue before the US Supreme Court. Trump’s campaign has condemned 14th Amendment challenges as an attempt to deny millions of voters their preferred choice for president. Trump’s lawyers argued that his speech to supporters on the day of the riot was protected by his right to free speech, adding that the constitutional amendment does not apply to US presidents and that Congress would need to vote to disqualify a candidate. Three Colorado Supreme Court justices dissented from Tuesday’s ruling. One of the dissenting justices, Carlos Samour, said in a lengthy opinion that a lawsuit is not a fair mechanism for determining Trump’s eligibility for the ballot because it deprives him of his right to due process, noting that a jury has not convicted him of insurrection. “Even if we are convinced that a candidate committed horrible acts in the past — dare I say, engaged in insurrection — there must be procedural due process before we can declare that individual disqualified from holding public office,” Samour said. The ruling sets the stage for the Supreme Court, whose 6-3 conservative majority includes three Trump appointees, to consider whether Trump is eligible to serve another term as president. reuters
thursday december 21, 2023 23 The E dge C E O m o rning brief MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) Top Glove Corp Bhd 185.9 -0.035 0.905 0.00 7,247.4 TWL Holdings Bhd 161.6 0.005 0.035 0.00 172.5 Jati Tinggi Group Bhd 141.8 0.040 0.310 0.00 121.5 Careplus Group Bhd 95.4 -0.025 0.440 -7.37 257.2 Leform Bhd 75.8 0.020 0.410 98.64 607.2 Widad Group Bhd 71.4 -0.005 0.465 8.14 1,439.9 Velesto Energy Bhd 67.5 -0.010 0.225 50.00 1,848.5 Dagang NeXchange Bhd 65.8 0.020 0.415 -18.63 1,309.9 Sarawak Consolidated 61.5 0.015 0.870 500.00 557.0 Public Bank Bhd 41.1 -0.020 4.320 0.00 83,854.2 My EG Services Bhd 40.2 0.000 0.830 -3.53 6,191.4 LKL International Bhd 39.1 -0.005 0.190 -34.21 73.7 Sime Darby Property Bhd 38.3 0.020 0.620 37.78 4,216.5 Reneuco BHD 36.9 0.010 0.235 -35.62 251.8 CIMB Group Holdings Bhd 34.6 -0.060 5.900 1.72 62,924.1 Tanco Holdings Bhd 33.3 0.000 0.585 74.63 1,175.7 Nexgram Holdings Bhd 33.0 0.000 0.040 -42.86 26.0 MQ Technology Bhd 32.4 0.000 0.025 -50.00 36.8 Kinergy Advancement Bhd 28.9 0.000 0.385 -2.53 748.8 AT Systematization Bhd 27.5 0.005 0.010 -33.33 67.9 Data as compiled on Dec 20, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) AT Systematization Bhd 0.010 100.00 27,451.8 -33.33 67.9 Compugates Holdings BHd 0.015 50.00 130.0 50.00 82.5 ZEN Tech International Bhd 0.025 25.00 6,324.8 25.00 65.7 Ageson Bhd 0.080 23.08 13,275.3 -60.98 24.9 PDZ Holdings Bhd 0.055 22.22 7,718.9 37.50 32.4 Alam Maritim Resources Bhd 0.030 20.00 11.0 20.00 46.0 TWL Holdings Bhd 0.035 16.67 161,565.0 0.00 172.5 Jati Tinggi Group Bhd 0.310 14.81 141,812.0 0.00 121.5 Eduspec Holdings Bhd 0.085 13.33 26,097.2 -15.00 90.6 Pinehill Pacific Bhd 0.390 11.43 3.0 0.00 58.4 Khee San BHD 0.150 11.11 28.5 7.14 20.6 Ideal Capital Bhd 2.600 10.17 30.0 52.94 1,300.0 Teo Guan Lee Corp BHD 1.200 9.09 4.5 11.53 100.2 Rex Industry Bhd 0.125 8.70 7,330.0 -10.71 82.2 Salutica Bhd 0.835 8.44 19,833.6 215.09 353.6 OCR Group Bhd 0.065 8.33 982.4 -35.00 90.1 S&F Capital Bhd 0.135 8.00 377.6 58.82 74.3 Seremban Engineering Bhd 0.690 7.81 5.6 -38.39 55.0 MCE Holdings Bhd 2.500 7.76 1,872.5 85.19 154.4 PNE PCB BHD 0.070 7.69 45.1 27.27 39.2 Data as compiled on Dec 20, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) XOX BHD 0.010 -33.33 2,850.2 -33.33 50.5 Focus Dynamics Group Bhd 0.010 -33.33 412.9 -50.00 63.7 AE Multi Holdings Bhd 0.010 -33.33 174.9 -60.00 21.6 TECHNA-X Bhd 0.010 -33.33 5,618.8 -60.00 22.1 CME Group BHD 0.025 -16.67 149.0 -16.67 25.8 Barakah Offshore Petroleum 0.035 -12.50 3,049.9 40.00 35.1 BSL Corp Bhd 0.035 -12.50 600.6 -48.22 67.6 Ivory Properties Group Bhd 0.070 -12.50 85.1 -12.50 34.3 Minetech Resources Bhd 0.110 -12.00 27,424.9 100.00 168.2 SMTrack Bhd 0.040 -11.11 1,735.5 -20.00 48.9 Imaspro Corp Bhd 4.350 -11.04 1,334.0 -25.64 348.0 Classita Holdings Bhd 0.045 -10.00 520.1 -87.67 55.5 Permaju Industries Bhd 0.045 -10.00 498.3 0.00 87.6 GIIB HOLDINGS Bhd 0.095 -9.52 990.0 5.56 56.2 Thriven Global Bhd 0.100 -9.09 395.1 5.26 54.7 Vizione Holdings Bhd 0.050 -9.09 6,966.2 -9.09 102.3 Citra Nusa Holdings Bhd 0.050 -9.09 10.0 -23.08 36.0 Eversendai Corp Bhd 0.150 -9.09 1,511.5 -3.23 117.1 Destini Bhd 0.105 -8.70 3,260.7 31.25 174.7 TFP Solutions Bhd 0.055 -8.33 1,791.2 -15.38 32.2 Data as compiled on Dec 20, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Rapid Synergy Bhd 27.760 -1.020 423.4 73.93 2,967.4 Malaysian Pacific Industries 27.400 -0.600 107.5 -4.73 5,449.8 Imaspro Corp Bhd 4.350 -0.540 1,334.0 -25.64 348.0 Nestle Malaysia Bhd 119.500 -0.400 158.6 -14.64 28,022.8 Ayer Holdings Bhd 6.900 -0.190 3.0 4.55 516.5 Petronas Gas Bhd 17.480 -0.140 1,824.7 2.10 34,588.2 Scientex Packaging Ayer Keroh 2.140 -0.110 0.1 -10.83 750.3 Malayan Cement Bhd 4.200 -0.090 1,465.6 98.11 5,502.8 YNH Property Bhd 4.460 -0.090 2,321.1 5.44 2,357.1 Sam Engineering & Equipment 3.990 -0.090 162.1 -19.07 2,160.9 Sungei Bagan Rubber Co Malaya 3.190 -0.090 7.4 -3.90 211.1 Aurelius Technologies Bhd 2.630 -0.090 1,688.9 43.72 1,036.4 Bintulu Port Holdings Bhd 4.970 -0.080 6.4 3.54 2,286.2 APB Resources Bhd 2.560 -0.080 182.1 70.67 283.9 MSM Malaysia Holdings Bhd 1.560 -0.080 5,578.7 83.53 1,096.6 Genting Plantations Bhd 5.590 -0.070 71.9 -10.45 5,015.1 CIMB Group Holdings Bhd 5.900 -0.060 34,644.7 1.72 62,924.1 Hong Leong Industries Bhd 9.200 -0.050 10.4 0.00 2,939.1 FAR East Holdings BHD 3.450 -0.050 1.2 -6.76 2,048.7 Pecca Group Bhd 1.300 -0.050 5,326.7 56.63 977.3 Data as compiled on Dec 20, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Heineken Malaysia Bhd 23.500 0.460 225.5 -6.75 7,099.3 Carlsberg Brewery Malaysia 19.460 0.380 1,181.7 -14.95 5,949.9 Ideal Capital Bhd 2.600 0.240 30.0 52.94 1,300.0 United Plantations BHD 17.800 0.200 468.3 21.56 7,383.2 Fraser & Neave Holdings Bhd 28.200 0.200 230.9 30.68 10,343.2 Kuala Lumpur Kepong Bhd 21.680 0.180 579.9 -3.04 23,380.5 MCE Holdings Bhd 2.500 0.180 1,872.5 85.19 154.4 HextarTechnologies Solutions 21.980 0.180 3.2 28.84 2,827.7 Perusahaan Sadur Timah 3.120 0.120 2.0 -28.93 402.8 Teo Guan Lee Corp BHD 1.200 0.100 4.5 11.53 100.2 Panasonic Manufacturing 18.000 0.100 7.6 -21.40 1,093.4 Greatech Technology Bhd 4.800 0.100 430.5 -0.83 6,020.2 D&O Green Technologies Bhd 3.630 0.100 2,801.4 -15.19 4,495.0 Petronas Chemicals Group 7.180 0.090 1,857.2 -16.51 57,440.0 RCE Capital Bhd 2.960 0.080 854.9 75.15 2,169.2 Allianz Malaysia Bhd 18.900 0.080 38.6 33.47 3,363.6 Scientex BHD 3.860 0.070 606.1 19.88 5,987.9 Salutica Bhd 0.835 0.065 19,833.6 215.09 353.6 Hong Leong Financial Group 16.500 0.060 564.4 -11.29 18,896.5 Can-One Bhd 2.510 0.060 13.3 -25.52 482.3 Data as compiled on Dec 20, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 37,557.92 251.90 0.68 S&P 500 * 4,768.37 27.81 0.59 NASDAQ 100 * 16,811.86 82.06 0.49 FTSE 100 * 7,638.03 51.79 0.68 AUSTRALIA 7,537.88 48.81 0.65 CHINA 2,902.11 -30.28 -1.03 HONG KONG 16,613.81 108.81 0.66 INDIA 70,506.31 -930.88 -1.30 INDONESIA 7,219.67 31.82 0.44 JAPAN 33,675.94 456.55 1.37 KOREA 2,614.30 45.75 1.78 PHILIPPINES 6,520.75 -0.52 -0.01 SINGAPORE 3,108.03 -8.59 -0.28 TAIWAN 17,635.20 58.65 0.33 THAILAND 1,400.37 5.47 0.39 VIETNAM 1,100.76 4.46 0.41 Data as compiled on Dec 20, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,733.0041.00 OIL US$ 76.24-0.31 RM/USD 4.6943 RM/SGD 3.5273 RM/AUD 3.1594 RM/GBP 5.9471 RM/EUR 5.1262