The EDGE - 16 November 2023

CEOMorningBrief THURSDAY, NOVEMBER 16, 2023 ISSUE 670/2023 theedgemalaysia.com BIDEN, XI EYE ECONOMIC AND MILITARY THAW IN HIGH-STAKES MEETING p16 HOME: We’re not tilting to China, we happen to be geographically closer — PM p2 October car sales rises 10% m-o-m to 74,896 units, second-highest monthly TIV in 2023 p5 MAA Group sells 85% stake in Philippines general insurance unit for US$49.3 mil p6 Malaysia Airlines fully reinstates in-flight meal service offerings p9 WORLD: Tencent’s profit beat allays fears of China downturn fallout p19 LOW YEN YEING/THE EDGE Report on Page 3. Consumer sentiment, biz confidence continue to slide amid inflation, slowing external demand — MIER Report on Page 4. MOH seeks AGC’s advice as Pharmaniaga ignores letter of demand

THURSDAY NOVEMBER 16, 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] We’re not tilting to China, we happen to be geographically closer — PM Anwar: M’sia, US to formulate plan to further strengthen vital bilateral ties SAN FRANCISCO (Nov 14): Malaysia is not tilting towards China but geographically, the country is closer, a reliable friend and ally, said Prime Minister Datuk Seri Anwar Ibrahim. The US, he said, is equally important and a traditional ally, as well as a major investor that had helped propel Malaysia’s economy. “Cumulatively, the US stands as number one in terms of our total investments, but increasingly, China has become one of the major investors — they may invest in Malaysia,” he said during a question-and-answer session at the University of California, Berkeley here on Tuesday. “China is our neighbour, an important country, and has matured in terms of its economic vibrancy, and we would benefit immensely as we continue to engage with it,” said the prime minister. “So, I think my point is this — that while we have to listen to big powers, they also have to engage and listen to the views and expression of our country. We as a developing and emerging economy need to engage and decide what is best for our country.” BY M SARASWATHI Bernama BY M SARASWATHI Bernama HOME SAN FRANCISCO (Nov 14): As the US-Malaysia Comprehensive Partnership will conclude its 10th year in 2024, both countries are set to formulate a practical plan by year end to further strengthen it, Prime Minister Datuk Seri Anwar Ibrahim said on Tuesday. “The next year will be 10 years since Malaysia and the US elevated their bilateral relationship to a comprehensive partnership in April 2014. “We will formulate a practical plan by the end of this year on how we could further strengthen this partnership for the benefit of Malaysians, Americans, and the wider region,” he said during a special lecture titled ”Super Power Rivalry and Rising Tensions in the Asia-Pacific” at the University of California, Berkeley near here. He said although Malaysia’s relations with the US do not capture the same kind of attention as those involving China, Japan, or the Philippines, it is regardless a crucial one. “It is neither an alliance nor particularly contentious, it often seems as if the relationship is destined to hide in plain sight. But thinking so would be a disservice to the long years of collaboration and mutual respect that our two nations have built,” he told the audience of over 250 students. Anwar, who is also the finance minister, said Malaysia regards its strategic relations with the US as crucial to its economic vibrancy and national security interests. This position stems from an objective, rational and perhaps utilitarian assessment of how best to serve Malaysia’s needs on the world stage. CONTINUES ON PAGE 3 On Malaysia and more broadly Asean’s role in the South China Sea, Anwar, who is here for the 30th Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting, said: “Asean did discuss its position. Ideally, we should take a multilateral regional position in our engagement with China. ”On the map, as announced recently by China, it does infringe upon our territory or claim, but this falls with China. We have been rather successful in terms of negotiating with the Chinese.” Anwar believes that the problem is more troublesome and contentious with the Philippines and Vietnam. “We are engaging with them too, but our position is to make sure it remains as a regional problem. Do not allow for the ferrous of other countries, because that would further aggravate or exacerbate the crisis. “The solution, of course, is aggressive diplomatic engagement, which we are continuing, even within Asean, as I said, with the Philippines and Vietnam, but together, Asean and China.” Asked about the possible outcome of the bilateral meeting with US President Joe Biden and China’s Xi Jinping on the sidelines of the meeting, Anwar said it cannot be dismissed as a normal sort of discourse. “The meeting is being looked upon not only by the APEC member economies, but also the world. “The engagement [could result in some] resolutions, not necessarily contentious problems of Gaza, Palestine or Ukraine, Russia.” “But at least trade investments and understanding of these related issues would help instil more confidence in the economy, which is required by not only the US and China, but most of the countries.” He said better ties between China and the US would mean immense benefit to Asean countries, including Malaysia. Read also: High-level visits heighten new level of Malaysia-China strategic partnership Middle powers like Malaysia can help reduce tensions via creative diplomacy — PM BLOOMBERG

thursday november 16, 2023 3 The E dge C E O m o rning brief home KUALA LUMPUR (Nov 15): Malaysian consumers and businesses have grown more pessimistic in the third quarter of the year as inflationary pressures eat into spending power while slowing external demand weighs on sales amid rising operating costs, according to studies done by the Malaysian Institute of Economic Research (MIER). The Business Conditions Index continued to decline in 3Q2023, falling by 2.7 points to 79.7 points — the lowest level since 2Q2020 during the initial outbreak of Covid-19 in the country — compared with 82.4 points in 2Q2023 and 99.8 points in 3Q2022, MIER said in a statement on Wednesday. “While domestic orders have increased slightly, export orders have reduced, and meanwhile businesses are concerned about increasing costs: 56% reported that their wage costs had increased this quarter, while only 23% reported increasing their sales prices,” said the research institute. The institute’s Consumer Sentiments Index also continues its negative trend, dropping 11.9 points quarter-on-quarter to 78.9 points in 3Q2023 — the lowest since 2Q2021, when Malaysia was in a new lockdown phase. MIER’s survey found that 45% of respondents’ finances have worsened in 3Q2023, compared to just 10% who say theirs have improved. In addition, 40% of respondents expect their finances to worsen in future compared to just 15% who expect an improvement, the survey found. “These results match with predictions from respondents around cost of living, with 91% expecting inflation to rise compared to only 20% expecting incomes to rise,” said MIER. The survey found that consumers are not only negative on the outlook of their future finances, but also pessimistic about their incomes growth, job opportunities and inflation level. “Malaysians seem to be preparing for the Consumer sentiment, biz confidence continue to slide amid inflation, slowing external demand — MIER worst in terms of prolonged stagnant wages and inflation growth,” it said. “Given slow but steady growth of the economy and encouraging reductions in inflation, it may seem difficult to understand why both businesses and consumers are so pessimistic. “Nonetheless, combating this and encouraging spending and investment must be a top priority to prevent further reductions in growth going forward,” it added. Overall, MIER said the findings of its survey in 3Q2023 showed a mixed picture for Malaysia. “On the one hand, the picture for domestic growth is positive relative to other countries in the region. Positive progress has also clearly been made towards reducing the inflationary pressures and, except for food and drink, inflation has now reached a manageable level,” it said, adding that political instability, which had plagued Malaysia since 2019 has largely dissipated with the formation of the Unity Government while the recent state polls did not cause upheavals. “On the other hand, there are some concerning results in terms of imports and exports... These results should pose a significant concern for the government as they could very easily turn into reduced growth if people are unwilling to spend their savings for fear of reduced spending power in the future,” it cautioned. by Chester Tay theedgemalaysia.com “The facts speak for themselves — the US ranks among our largest foreign investors, with over US$100 billion (RM466.10 billion) pledged just this year across manufacturing, services, and digital sectors. And that is likely an undercount, as many US firms channel investments through subsidiaries across Asia and Europe. “The US stands as Malaysia’s third largest trading partner, while we are America’s 17th largest export market,” he said. Defence and security cooperation represents a vital anchor for the broader relationship, Anwar said. “Malaysia conducts more bilateral and multilateral military exercises with the US than with any of our other partners: 11 bilateral and five multilateral exercises annually. “These help to build critical capacity and readiness of our forces. Between 2018 and 2022, US security assistance exceeded US$220 million, providing equipment, training, and other vital support,” he said. In addition, the two nations engage in cooperative efforts to enhance maritime security and combat transnational menaces, such as cybercrime, terrorism, violent extremism, and drug trafficking. He said these concerns surpass national boundaries, and their resolution necessitates collaborative efforts that capitalise on collective capacities, the prime minister said. Beyond security ties, he noted that Malaysia had become a robust partner to the US across spheres like education, climate change, public health, and empowering marginalised communities. Thousands of Malaysian students enrol in American universities each year, seeking world-class education before returning home to contribute to national development. ‘Malaysia keen on leveraging IPEF’ Anwar said Malaysia also participates actively in the US-led Indo-Pacific Economic Framework for Prosperity (IPEF), showcasing its commitment to regional economic integration and collaboration. “As a nation strategically positioned in Southeast Asia, Malaysia views the IPEF as a vital platform to enhance trade, strengthen supply chains, promote sustainable practices, and support anti-corruption measures alongside other participating countries,” he said. He added that the Malaysian government is keen on leveraging the IPEF to not only advance its own economic interests, but also to contribute significantly to the development of the framework’s key pillars. Malaysia, on the other hand, offers an unmatched capacity to be a reliable partner on critical technologies, he said. For over 50 years, Malaysia has been home to leading technology multinationals, particularly in electronics and semiconductors. “Malaysia plays a pivotal role in the global tech industry, supplying 25% of the semiconductor components that power the US’ technology demands,” he said. During the Covid-19 pandemic, Ford’s production of its iconic F-150 pickup truck hinged crucially on Malaysia’s decision to reopen its industrial operations. Half of all composite wing parts for Boeing and Airbus planes are made in Malaysia. “We are also a vital link in medical technology supply chains, with nearly 300 companies employing 70,000 skilled workers,” Anwar said. Further, giants like Intel, Infineon, and Amazon Web Services are investing billions more to expand cutting-edge production capacity in Malaysia. Approved foreign investments in the first quarter of this year rose 67% year-on-year, reaching over RM17 billion. “Malaysia is seizing opportunities and delivering results, and in doing so, we have become an important link in the global supply chain for critical technologies,” he said. from Page 2

thursday november 16, 2023 4 The E dge C E O m o rning brief home Any new development in KL depends on traffic impact assessment, says Ramkarpal KUALA LUMPUR (Nov 15): The Ministry of Health is seeking advice from the Attorney-General’s Chambers (AGC) on the appropriate course of action as Pharmaniaga Logistics Sdn Bhd (PLSB) has refused to comply with a letter of demand issued by the ministry regarding shortcomings in the procurement of faulty ventilators. Deputy Health Minister Lukanisman Awang Sauni said that the ministry issued a letter of demand for the reimbursement of RM15.34 million on Sept 13, and provided PLSB a 14-day deadline for response. However, Lukanisman said that PLSB responded by requesting the withdrawal of the letter and expressed readiness to negotiate the outstanding payment of RM1.07 million for the ventilation upgrade project. “Thus, the Ministry of Health is now awaiting advice from the Attorney-General’s Chambers (AGC) on the appropriate further action to be taken following PLSB’s response,” Lukanisman said during the Special Chambers session at the Dewan Rakyat on Wednesday. He was responding to Lim Lip Eng (PH-Kepong), who urged the ministry not to accept the handoff and irresponsible attitude of PLSB and the supplier from China over the faulty ventilators. Lim also recommended that the government take stern action by blacklisting Pharmaniaga, or the ventilator provider in China. Lukanisman said the ministry will consider Lim’s proposed measures to prevent similar incidents in the future. MOH seeks AGC’s advice as Pharmaniaga ignores letter of demand He also pointed out that the ministry is currently preparing its response to the recommendations by the Public Accounts Committee (PAC) and is committed to improving the procurement process even in emergencies, as well as ensuring communication through the gazetted medium. The PAC’s report in October revealed that the Ministry of Health had approved an allocation of RM30 million as a down payment to be paid to PLSB for the procurement of 500 ventilators, out of which 136 units were provided from April 1 to May 19, 2020, at a cost of RM20.125 million. However, the Ministry of Health informed the company that the ventilators were not compatible on June 4, 2020, as only 28 units were working. Further repairs and replacements resulted in just an additional four units being usable. Added to the RM2.9 million for repairs, the government spent a total of RM23.03 million for the 136 ventilators, with only 32 working at the end. On the health ministry’s instructions, the remaining RM6.97 million from the advance payment was returned on June 15. Payment for the remaining balance of RM1.075 million for audits, commissioning, and maintenance of the ventilators is still under discussion between the Ministry of Health, PLSB, and IDS Medical Systems (M) Sdn Bhd — the company appointed by PLSB to repair and upgrade the ventilators. by Choy Nyen Yiau theedgemalaysia.com Bernama KUALA LUMPUR (Nov 15): Any future development to be implemented in the federal capital will depend on the outcome of a traffic impact assessment (TIA) being carried out, in an effort to address traffic congestion due to population growth. Deputy Minister in the Prime Minister’s Department (Legal and Institutional Reforms) Ramkarpal Singh said the TIA being carried out covers various aspects, including current operating conditions of roads or the current level of service and future traffic projections. Datuk Muhammad Bakhtiar Wan Chik (Pakatan Harapan-Balik Pulau) regarding the ministry’s efforts to face the challenges of continuous development in Kuala Lumpur with an increasing population growth rate. According to Ramkarpal Singh, various efforts have also been carried out, such as introducing the GoKL bus services, special bus routes, bicycle routes, pedestrian routes, and access to route information and current bus services through digital applications. To a supplementary question from Zakri Hassan (Perikatan Nasional-Kangar) on efforts by the government to overcome the problem of flash floods in Kuala Lumpur, Ramkarpal said the matter was taken into account in the Kuala Lumpur Structure Plan 2040 (PSKL2040), which was launched by Prime Minister Datuk Seri Anwar Ibrahim recently. “PSKL2040 takes into account current and future changes, such as climate change, the economy, demographics, lifestyle and Kuala Lumpur’s infrastructure, in the face of international competition in the 21st century. The flood issue is also taken into account under PSKL2040,” he added. “Based on future traffic projections, infrastructure improvements will be recommended. In addition, the Kuala Lumpur City Hall (DBKL) has a more comprehensive and integrated traffic planning as a long-term solution to deal with the congestion problem. “DBKL is also focusing on the development of user-friendly, efficient and easily accessible public transportation to achieve the target of 70% public transport use by 2040,” he said during an oral answer session in the Dewan Rakyat here on Wednesday. He was responding to a question from bernama

thursday november 16, 2023 5 The E dge C E O m o rning brief home KUALA LUMPUR (Nov 15): Steel stocks continued their upward momentum from Wednesday morning, closing higher after the initiation of a two-year moratorium by the Ministry of Investment, Trade and Industry (Miti) effective from Aug 15, intended to address issues within the domestic iron and steel sector. Mycron Steel Bhd was the top gainer among the steel counters, closing up 33.3% or 11 sen at 44 sen, with 45.28 million shares changing hands, valuing it at RM147.2 million. During morning trade, it was one of the top 10 most traded and highest gaining stocks. Meanwhile, Melewar Industrial Group Bhd closed up 2.5 sen or 9.43% at 29 sen, Hiap Tech Venture Bhd gained 1.5 sen or 3.33% to 46.5 sen, Lion Industries Corp Bhd was up two sen or 6.06% at 35 sen, Malaysia Steel Works (KL) Bhd went up 1.5 sen or 4.62% to 34 sen, and Prestar Resources Bhd was up 2.5 sen or 6.17% at 43 sen. All made it to the top 35 actives in early trade. A Kenanga industry analyst said the moratorium will allow the government to assess the overcapacity situation in the region, as well as to support the industry to achieve carbon neutrality objectives. “Nevertheless, it appears that not all local steel players have been furnished with detailed information regarding the government’s initiatives. In my view, all steel players will benefit from this move,” the analyst told The Edge. The analyst’s top picks are United U-LI Corp Bhd, which gained three sen or 1.7% to RM1.81 before paring gains to close unchanged at RM1.78, and OM Holdings Ltd, which closed up five sen or 3.42% to RM1.51. He noted that United U-LI Corp had seen a strong pickup in orders for its key product, namely cable support systems, and is bracing for even busier times ahead, driven by potential orders for MRT3, RTS, Singapore MRT expansion and new data centres. “It is investing in two new plants that will boost its capacity by 40%,” said the analyst. Meanwhile, OMH was preferred due to its structural cost advantage over international peers, and access to low-cost hydropower under a 20-year contract ending 2033, the analyst added. “Its strong growth prospects are underpinned by plans to expand its capacity by 30%-36% to 610,000-640,000 metric tons per annum over the medium term, and its appeal to investor given its clean energy source,” said the analyst. Deputy Investment, Trade and Industry Minister Liew Chin Tong on Tuesday said the temporary suspension covers all inquiries, assessments of current applications, new applications, licence transfers, expansion, regularisation and diversification of the manufacturing licence, as well as the issuance of certificates for exemption from the manufacturing licence (ICA 10) under the Industrial Co-ordination Act 1975 (Act 156) for manufacturing activities in the iron and steel industry, including non-ferrous recycling activities. However, he said, if there are manufacturing licence applications that support the New Industrial Master Plan (NIMP) 2030 agenda, applications can be considered for exemption from the moratorium. Liew said this includes projects for the production of complex iron and steel products with high added value and equipped with low-carbon/carbon reduction technologies such as carbon capture, utilisation and storage that support the missions and aspirations of the NIMP 2030. Liew was winding up the committee-level debate on the Supply Bill 2024 for his ministry in the Dewan Rakyat on Tuesday. Steel counters rise after Miti announces industry moratorium KUALA LUMPUR (Nov 15): Car sales in October 2023 rose 10% to 74,896 units from September’s 68,156 units, showcasing robust growth in total industry volume (TIV), said the Malaysian Automotive Association (MAA). In a statement on Wednesday, MAA said October’s sales represent the second-highest monthly TIV in 2023, after 78,849 units sold in March. It was also the third time this year that the monthly TIV exceeded the 70,000-mark, noted the association. In August, car sales rose 13% monthon-month (m-o-m) to 71,745, thanks to October car sales rises 10% m-o-m to 74,896 units, second-highest monthly TIV in 2023 an improvement in supply chain issues coupled with National Day promotions by some car companies. Year-on-year, October’s sales rose 22.78% from 61,002 units. On a year-to-date (YTD) basis, the sales volume up until October 2023 of 646,840 units was 12% higher than 578,917 logged in the corresponding period a year ago, thanks to very strong performance by national marques, said MAA. Meanwhile, the total industry production (TIP) reached 74,191 units in October 2023, encompassing both passenger and commercial vehicles. This figure reflects a notable 7.32% increase compared to the preceding month. by Lee Ming Hui theedgemalaysia.com by Isabelle Francis theedgemalaysia.com Unit TIV in January to October 2023 vs 2022 TIV 2023 TIV 2022 Jan Feb Mar Apr May June July Aug Sept Oct 78,894 47,765 63,103 62,569 63,676 72,809 67,599 74,896 61,920 68,156 67,698 63,544 50,162 73,244 57,585 50,650 63,597 49,930 45,064 41,533 Source: MAA 0 20000 40000 60000 80000 100000 The Malaysian Automotive Association said on Wednesday car sales in October 2023 rose 10% to 74,896 units from September’s 68,156 units. Looking ahead to November 2023, MAA expected sales to maintain momentum, mirroring the robust performance seen in October 2023.

thursday november 16, 2023 6 The E dge C E O m o rning brief home KUALA LUMPUR (Nov 15): Property developer Crescendo Corp Bhd (CCB) is stepping up its land sales in Pulai, Johor. It plans to sell nine parcels of freehold vacant land in Pulai, measuring 82,496.4 sq m for RM111 million cash, following an announcement a week ago that it would divest seven parcels of adjoining lands, also in Pulai, for RM117.02 million cash. CCB said it is expected to record a consolidated gain after taxation of approximately RM68.33 million from the latest disposal. In a Bursa Malaysia filing on Wednesday, CCB said its wholly-owned unit Panoramic Industrial Development Sdn Bhd (PID) had inked a conditional sale and purchase agreement with Yu Ao Sdn Bhd (YASB), to dispose of the nine parcels of land (in two parcels classified as Parcel A and Parcel B). “The lands were acquired during the period from March 24, 2005 to Feb 28, 2008 and the cost of the investment as of Jan 31, 2023 (inclusive of original land acquisition cost and other development and finance cost capitalised up to Jan 31, 2023) is approximately RM12.91 million,” CCB told Bursa Malaysia. According to the group, the sale consideration of RM111 million, is calculated at the rate of RM125 per sq ft (psf). However, if the Tenaga Nasional Bhd (TNB) power main switching station (SSU) waiver is obtained for the lands, the Parcel A purchase price will increase to RM59,713,200.36 at RM127 psf. Similarly, for Parcel B, TNB SSU waiver would push the purchase price to RM53,060,749.86 based on the rate of RM127 psf. “The sale consideration is intended to be utilised for development of the balance landbank owned by the CCB Group and PID, to provide working capital for CCB Group and PID and/or settlement of the existing liabilities of CCB Group and PID,” it said, adding that the disposal is not expected to result in CCB falling under the Practice Note 17 status. The disposal is expected to be completed in the third quarter of 2024. As at end-July, Crescendo had RM77.39 million in short-term borrowings and RM204.2 million long-term borrowings. Its cash and bank balances stood at RM64.9 million. At the time of writing CCB’s share price was four sen or 2.94% higher at RM1.40, valuing the group at RM392.65 million. Crescendo to sell nine parcels of land in Johor for RM111 mil cash KUALA LUMPUR (Nov 15): MAA Group Bhd is divesting an 85% stake in its Philippine general insurance business — MAA General Assurance Philippines Inc — to Triple P Philippines Pte Ltd for US$49.3 million (about RM234.86 million) cash, with an option to sell the remaining 15% stake for US$8.7 million within a 14-month period. The total selling price of US$58 million was arrived at after taking into consideration an implied price-to-book ratio of about 1.64 times based on MAA General Assurance’s audited net assets of RM168.44 million as at end-2022, MAA Group said in a stock exchange filing on Wednesday. Of the total proceeds to be raised from the disposal, MAA Group is allocating RM187.7 million for future investment opportunities, RM32.18 million for working capital, RM41.8 million for repayment of shareholder’s loan, RM13.54 million for repayment of intercompany loans and the remaining RM1.1 million for estimated expenses for the divestment process. MAA Group sells 85% stake in Philippines general insurance unit for US$49.3 mil by Chester Tay theedgemalaysia.com by Syafiqah Salim theedgemalaysia.com MAA Group said as its original cost of investment since 2001 amounted to RM78.16 million, it expects to realise a gain on disposal of about RM110.75 million. General insurance is MAA Group’s largest revenue contributor, representing 66% of its total revenue for the financial year ended June 30, 2023 (FY2023), followed by its hospitality business’ 16% and education services’ 10%. Nonetheless, the group said its board of directors “took cognisance of the potential growth of the general insurance business going forward which includes but is not limited to additional capital investment”. Coupled with the continued challenging operating environment of the Philippines business moving forward, MAA Group said the offer by Triple P represents an opportune time for it to divest MAA General Assurance and to refocus its resources to expand existing business segments. The divestment requires shareholders’ approval via a general meeting, and UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the principal adviser for the proposed disposal. Shares of MAA Group closed half sen or 1.4% lower at 34.5 sen on Wednesday, giving it a market capitalisation of RM90.99 million.

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thursday november 16, 2023 8 The E dge C E O m o rning brief home Kossan returns to black in 3Q with better cost controls, lower material costs Amway’s 3Q net profit doubles to record high amid lower incentives payout by Chester Tay theedgemalaysia.com theedgemalaysia.com KUALA LUMPUR (Nov 15): Amway (Malaysia) Holdings Bhd posted record earnings in the quarter ended Sept 30, 2023 (3QFY2023) despite lower revenue, with net profit more than doubling yearon-year, as the group paid significantly lower incentives to its “Amway Business Owners”, in line with lower sales recorded. The improved profitability came after Amway issued a profit warning in August, taking into consideration that inflation would squeeze consumers’ purchasing power and appetites to spend. Net profit for 3QFY2023 jumped 146% to RM46.21 million or 28.11 sen per share, from RM18.75 million or 11.41 sen per share a year ago (3QFY2022), despite revenue falling 10.3% to RM333.47 million from RM371.79 million, according to the group’s stock exchange filing on Wednesday. Amway attributed the lower revenue to softer demand in health and wellness products and home appliances. The group proposed an interim dividend of five sen, with ex-date on Nov 30. For the cumulative nine-month period (9MFY2023), Amway recorded a net profit of RM83.52 million, which already surpassed the RM76.9 million recorded for the full FY2022, and which was 54.9% higher than the RM53.90 million for 9MFY2022. Revenue for 9MFY2023 declined 6.1% to RM1.05 billion, from RM1.12 billion in the previous corresponding period. Amway said this reduction was primarily due to persistent inflationary pressure, which had a significant impact on consumer sentiment and spending capacity, as well as shifts in consumer spending patterns post-pandemic. “Given the ongoing challenges, the group anticipates a reduction in its revenue for the full year of 2023 (FY2023),” it said. “The group foresees an increase in profit for the full year of 2023, but this increase is expected to be of a smaller magnitude when compared to the first nine months,” it added. Shares of Amway closed four sen or 0.8% higher at RM5.25 on Wednesday, giving it a market capitalisation of RM863.02 million. KUALA LUMPUR (Nov 15): Kossan Rubber Industries Bhd reported a net profit of RM40.97 million for its third quarter ended Sept 30, 2023, up 76.14% from RM23.26 million in the corresponding quarter a year ago, thanks to better cost controls and lower raw material costs in its glove business, as well as the sale of higher margin infrastructure products at its technical rubber products (TRP) division. The stronger earnings came despite revenue being 28% lower at RM403.48 million, versus RM560.52 million previously, as contribution dropped from all divisions, its bourse filing showed. Its glove division’s revenue dropped 30.8% amid lower average selling price and lower sales volume, but profit before tax (PBT) improved on cost control management, with lower raw material costs. TRP revenue also saw a decline, due to lower deliveries of TRP products, but PBT for the segment about doubled due to higher margin infrastructure products. The glove division contributed about 80% of the group’s revenue for the quarter, with TRP contributing 14%; the clean room business made up the rest. With the stronger quarterly profit, earnings per share grew to 1.61 sen in 3QFY2023, from 0.91 sen per share in 3QFY2022. No dividend was declared for the latest reporting quarter. The 3QFY2023 earnings was also a return to the black for Kossan after two On prospects, Kossan said the ongoing supply-demand imbalance continues to affect the glove sector, despite emerging signs of stability. It anticipates this challenging operating environment to persist throughout the rest of FY2023. “As the market undergoes readjustments due to industry consolidation and capacity rationalisation, the pressure on average selling prices from international competitors is expected to persist. Despite these immediate market challenges, the long-term outlook for glove demand remains positive, driven by increasingly stringent standards and heightened hygiene awareness in both the medical and industrial sectors,” the group said. It also expects its TRP business to achieve satisfactory performance in FY2023, driven by an anticipated gradual increase in global economic activity and infrastructure spending that particularly benefits the infrastructure and automotive segments. In the meantime, it plans to continue with more effective cost management, while accelerating the digitalisation and automation of its operations to overcome manpower challenges, enhance overall productivity and efficiency, and reduce production costs. Kossan shares closed four sen or 2.78% higher at RM1.48 on Wednesday, giving the group a market capitalisation of RM3.79 billion. Year to date, the stock has gained 38 sen or 34.55%. consecutive loss-making quarters, when it made a total net loss of RM27.55 million. This led to the group lodging a net profit of RM13.42 million for the first nine months of FY2023 (9MFY2023). This, however, was just 8.42% of the RM159.36 million the group made in the same period last year, as 9MFY2023 revenue dropped 34.97% to RM1.19 billion from RM1.83 billion in 9MFY2022, again on lower revenue from all divisions. Hence, cumulative earnings per share shrank to 0.53 sen from 6.25 sen previously. Amway (Malaysia) Holdings Bhd

thursday november 16, 2023 9 The E dge C E O m o rning brief home SEPANG (Nov 15): National carrier Malaysian Airlines Bhd has fully restored its in-flight meal service offerings, complete with beverage offerings, full hot meals, special meals and complete dining ware, effective Wednesday. In addition, the airline is also introducing enhanced meal offerings and refreshed menus across sectors, as it seeks to elevate the onboard dining experience. The full resumption of the in-flight meal services is achieved through partnerships between its parent company Malaysia Aviation Group (MAG) and nine separate third-party meal suppliers, and the establishment of a temporary distribution centre — the MAG Catering Operations (MCAT) — to manage the assembly of food and beverages (F&B) items and the uplifting of meals onboard via hi-lift trucks. The nine third-party meal suppliers are MAS Awana Sdn Bhd (60%-owned by MAG), Sajian Ambang Sdn Bhd, Syed Food Industry Sdn Bhd, QL Kitchen Sdn Bhd, Fantastic Food Factory Sdn Bhd, AlQina Cuisine, Cosmic Culinary Food Solution, Kopetro (Koperasi Petronas), and Wanmalinja Food Industries Sdn Bhd, which provides the iconic in-flight satay. MAG group managing director Datuk Captain Izham Ismail said Malaysia Airlines’ catering transition, which took effect on Sept 1 after the decades-old in-flight catering partnership with Brahim’s Holdings Bhd ended on Aug 31, was a “a painful and tough journey” but the group remains steadfast to innovation, safety, and the highest standards of customer satisfaction. “We acknowledge that there have been shortcomings and loud criticisms during our catering transition journey. Nevertheless, our sights from the onset have been clear and firm in ensuring that customer experience remains at the heart of everything we do, and that they experience as minimal interrupMalaysia Airlines fully reinstates in-flight meal service offerings tions as possible, while the management team works on a new catering path that ensures a sustainable future for MAG,” Izham said during the launch of the full reinstatement of the in-flight meals service on Wednesday. He revealed that the new arrangement has resulted in an increase in its catering cost from 2% of its total operational cost during its partnership with Brahim’s, to 2.5% currently, but maintained that it is “worth the investment”. MAG’s investments into its in-flight catering services include the MCAT, which currently has a fleet of 24 hi-lifts, six freezers, two chillers and two ware wash machines, enabling the airline to self-handle an average of 18,000 meals daily. However, Izham did not disclose the total amount of the investment. On the group’s 30%-stake in Brahim’s, Izham said MAG “must move on”, adding that the group is looking into partnering with foreign in-flight catering companies to potentially set up its own catering unit. On Aug 30, Malaysia Airlines announced that it was ending its long-standing in-flight catering partnership with Brahim’s, after a “thorough and prolonged” negotiation period. Following that, Malaysia Airlines initiated its contingency plan, which included establishing the MCAT operations at Kuala Lumpur International Airport (KLIA), since an immediate transition to another large-scale supplier was not feasible. news In brie f VSTECS 3Q net profit falls 23%, maintains 2.5 sen dividend KUALA LUMPUR (Nov 15): VSTECS Bhd’s net profit in the third quarter ended September 30, 2023 (3QFY2023) dropped 23.02% to RM12.73 million, from RM16.54 million last year, on higher distribution expenses, as it recorded lower sales revenue in the period. Also contributing to the weaker performance was higher impairments of financial instruments and lower forex gains, the ICT products, software and IT services provider said. Quarterly earnings per share declined slightly to 3.60 sen from 4.60 sen in 3QFY2022. Revenue in the quarter fell by 12.12% to RM646.41 million from RM735.53 million, due to lower sales from both ICT distribution and enterprise system segments. The group declared a first interim dividend of 2.50 sen per share — unchanged from last year — to be paid on Jan 12, 2024. — by Sulhi Khalid MPI 1Q net profit tumbles to RM16.52 mil on lower revenue, weakening ringgit, declares 10 sen dividend KUALA LUMPUR (Nov 15): Malaysian Pacific Industries Bhd’s (MPI) net profit in the first quarter ended September 30, 2023 (1QFY2024) declined by 68.65% to RM16.52 million from RM52.70 million in the same period last year, partly due to lower revenue and appreciation of the US dollar against the ringgit. Earnings per share fell to 8.31 sen from 26.50 sen. MPI cautioned the current Middle East conflict could further dampen the recovery of the semiconductor industry in the near future. The group said its quarterly revenue dropped by 9.01% to RM513.21 million compared to RM564.02 million on the back of softer global semiconductor demand. The group declared an interim dividend of 10 sen per share, to be paid on Dec 19. — by Sulhi Khalid Berjaya Food’s 1Q profit about halves as inflationary cost pressure squeezes margins KUALA LUMPUR (Nov 15): Berjaya Food Bhd’s (BJFood) net profit for the first quarter ended Sept 30, 2023 (1QFY2024) fell by 45.16% to RM19.03 million from RM34.7 million reported in the same quarter last year as inflationary cost pressures squeezes its margins. As a result, earnings per share dropped to 1.08 sen from 1.96 sen, its bourse filing showed. Revenue dipped 1.6% to RM278.53 million from RM283.05 million, mainly due to lower sales from its Kenny Rogers Roasters’ restaurants in Malaysia. The group declared a first interim share dividend of one treasury share for every 100 ordinary shares held, which is equivalent to a 0.44 sen per share distribution or a total of RM7.72 million, in respect of FY2024 to be paid on Dec 29 — with Dec 14 being the entitlement date. It distributed a first interim share dividend of 0.5 sen for FY2023. — by Sulhi Khalid by Emir Zainul theedgemalaysia.com Suhaimi Yusuf/The Edge

thursday november 16, 2023 10 The E dge C E O m o rning brief home Plytec closes at intraday low of 32.5 sen; down 7.14% from IPO price by Syafiqah Salim theedgemalaysia.com KUALA LUMPUR (Nov 15): Newly-listed ACE Market counter Plytec Holding Bhd ended its maiden trading day at an intraday low of 32.5 sen on Wednesday, down 7.14% against its initial public offering (IPO) price of 35 sen, despite opening one sen up on its debut in the morning. The counter’s intraday high was 36 sen while its intraday low was 32.5 sen. Plytec was the fourth worst-performing IPO so far this year, after Radium Development Bhd, which fell 23% from its IPO price of 50 sen, Synergy House Bhd (down 18.6% from its IPO price of 43 sen) and SkyWorld Development Bhd (down 7.5% from its IPO price of 80 sen). Trading momentum was not with the fourth most active stock on Bursa, which saw 13.04 million shares changing hands at the start of trade, and increasing to 70.8 million shares at the closing bell. Two research houses, Apex Securities Bhd and Public Invest Research, which have initiated coverage of Plytec, assigned the stock’s fair value (FV) at 39 sen, 11.4% higher than the IPO price. Apex Securities’ valuation is based on a price-earnings (PE) ratio of 12.5 times to projected earnings per share (EPS) of 3.1 sen for the financial year ending Dec 31, 2024 (FY2024). Public Invest, on the other hand, assumes a PE ratio of 15 times for the forecasted EPS of 2.6 sen for FY2024. Formerly known as Sudut Swasta Group, Plytec is principally involved in the provision of construction engineering solutions and services, and the trading and distribution of core and general building materials for construction projects. Its construction engineering solutions and services include construction method engineering (CME), digital design and engineering (DDE) solutions and prefabricated construction (PC) solutions that are aimed at increasing the efficiency and safety in construction activities via the adoption of industrialisation practices, supported by digitalisation of the construction processes. Group aims to expand CME solutions segment At a press conference after the group’s listing on Wednesday, Plytec group managing director cum chief executive officer Yang Kian Lock said the group hopes to grow the CME segment, which accounted for about 43% of the group’s total revenue of RM158.1 million in FY2022. (From left) Plytec Holding Bhd independent non-executive directors Goik Kenzu and Anita Chew Cheng Im, non-independent executive director and chief operating officer Louis Tay Chee Siong, independent non-executive chairman Tan Sri Dr Ahmad Tajuddin Ali, non-independent executive director, group managing director and CEO Yang Kian Lock, non-independent executive director and head of engineering Edward Han Liang Kwang, and independent non-executive director Kow Hoay Lee Suhaimi Yusuf/The Edge Plytec Holding Bhd 0 10 20 30 35 40 Vol (mil) Sen 36 sen Source: Bloomberg 32.5 sen 9am 5pm Nov 15, 2023 IPO price: 35 sen “We will invest more on our equipment for [our] renting business, especially for the CME segment. The market trend is expected to change from sales to rental proposition. In 2022, the revenue from sales was around 65%, [while] rental, 35%. For this year, rental will go maybe to 75%, while sales will be only 25%.” He said the company expects to invest another RM30 million, so that capital expenditure would probably rise to some RM70 million. “We foresee that rental revenue will keep growing, as we are very focused on investing in the equipment. We expect the [rental] revenue to achieve around RM40 million this year,” Yang told reporters. Meanwhile, the group’s chief operating officer Louis Tay Chee Siong addressed common challenges facing the construction industry, such as project delays and cost overruns, as well as a lack of labour productivity. “The industry is lacking standardised industrial processes and the use of digital technology. We have to lead by providing centralised resources because the construction industry is facing low labour productivity,” he said. According to the Malaysia Productivity Corporation, the construction industry’s labour productivity (which is assessed as value added of employment) increased by 5.2% to RM38,575 per person in 2022. This marks an improvement from the previous year, where labour productivity had declined by 4.3% to RM36,669 per person in 2021. Despite this increase, the construction sector continues to trail behind other sectors. No direct impact from fluctuations in building material prices Tay said that the group remains unaffected directly by material shortages and price fluctuations, as they are often driven by market forces. The building materials segment contributed about 52% of Plytec’s total revenue in FY2022. “The challenge is more with the contractors and we are the service provider. There is no direct impact on us. The sudden fluctuations would not normally affect us,” he said. Plytec raised RM37.1 million from its IPO, of which RM9 million will be allocated to repay bank borrowings, and RM8 million for capital expenditure. Another RM7.8 million will be utilised for construction of factories and centralised labour quarters on Plytec’s Olak Lempit land, RM6.3 million for working capital, RM4 million for estimated listing expenses and the remaining RM2 million for purchase of software systems and hardware. The group’s profit after tax (PAT) jumped 50% to RM10.8 million in FY2021, although revenue slipped slightly to RM112.7 million from RM113.18 million a year earlier. In FY2022, its PAT improved by 27% to RM13.7 million, on the back of higher revenue of RM158.1 million. Post-IPO listing, Plytech’s major shareholders Resilient Capital Holdings Sdn Bhd will own 41.37% of the company from 50.15% previously, while Prestij Usaha Sdn Bhd will hold 32.63% (from 39.55%).

thursday november 16, 2023 11 The E dge C E O m o rning brief home PUTRAJAYA (Nov 15): The country’s first chief statistician Datuk Ramesh Chander passed away at about 2.50am (Malaysia time) on Tuesday in the US at the age of 88. According to Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin, the late Ramesh held the position for 11 years from Jan 1, 1966, until Dec 31, 1977. “While leading the Department of Statistics Malaysia (DOSM), he managed to develop a statistical system that is still in use today,” he said in a statement Wednesday. Mohd Uzir said Ramesh also contributed to pioneering the use of integrated household surveys for data collection to analyse poverty and socio-economic indicators, among other things. He was also the first census commissioner who carried out the post-independence Population and Housing Census in 1970 and was involved in developing the framework for monitoring the targets and goals of the New Economic Policy, according to the statement. Mohd Uzir said the Kuantan native played an active role in highlighting DOSM’s role in the Asian region and at Malaysia’s first chief statistician dies in the US aged 88 KUALA LUMPUR (Nov 15): A total of 26,286 completed houses, valued at RM18.3 billion, were reportedly unsold in the second quarter of 2023 (2Q2023). Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir stated that, according to the National Property Information Centre (Napic), this indicates a 5.3% decrease in total units and a 0.6% decrease in value compared to the same period last year. To control the issue of unsold houses, Akmal said that the government had implemented the mapping of the Affordable Housing Index based on median income by state and district obtained from the 2022 Household Income and Basic Facilities Survey Report. “This method considers the median income of people by locality using the median multiple method, and the mapping serves as a guide for developers and housing agenRM18.3 bil worth of unsold houses in 2Q, says deputy minister cies to determine the sale price of houses in a given locality,” said Akmal in response to Datuk Suhaimi Nasir (Barisan Nasional-Libaran) during the oral question-and-answer session in the Dewan Rakyat on Wednesday. Akmal added that the government also encourages developers to conduct feasibility studies before initiating any development to ensure that the houses built align with by Choy Nyen Yiau theedgemalaysia.com Bernama people’s affordability, and to prevent unsold inventory. Additionally, the ministry is currently developing the Housing Big Data Analytics System as a centralised reference source for housing data, according to Akmal. Meanwhile, Akmal reported that throughout the implementation of the Housing Credit Guarantee Scheme (SKJP) from 2008 until September 30, 2023, a total of 30,841 loan applications, worth RM5.85 billion, had been approved. “The Madani government, through Budget 2024, has proposed adding another RM10 billion in guarantees to benefit 40,000 borrowers. The scheme, with a financing limit of up to RM500,000 for first homes, includes the amount of principal financing, Mortgage Reducing Term Assurance (MRTA) or Mortgage Reducing Term Takaful (MRTT), as well as legal fees and appraisal fees,” Akmal added. the international level, serving as the chairman of the Asian Statistical Conference, representing Malaysia at the Conference of Commonwealth Statisticians, being one of the founding members of the Statistical Institute for Asia and the Pacific (SIAP) and a member of the technical committee for the World Fertility Survey, among other things. Mohd Uzir said the late Ramesh remained active in advocating for statistics in his golden years by attending various forums such as the Webinar: Counting Everyone for a Better Tomorrow on July 7, 2020, Corruption in Malaysia: Who Will Bell the Cat on April 28, 2021, and the Population Statistics Seminar on Feb 14, 2022. On behalf of DOSM, Mohd Uzir also expressed condolences to the deceased family and hoped that they would remain strong and patient in the face of this loss. “DOSM will always remember and appreciate the late Ramesh’s contributions, especially in enhancing the statistical system to assist the country in formulating socio-economic policies and planning,” he added.

THURSDAY NOVEMBER 16, 2023 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Nov 15): The payment of wages in cash is prohibited unless approved by both the employee and the Department of Labour Peninsular Malaysia’s (JTKSM) director general, to avoid manipulation. Human Resources Minister V Sivakumar said employers who do not pay wages through a bank account are committing an offence punishable by a fine of up to RM50,000 under Section 25 and 25(A) of the Labour Act 1955 (Act 265). At a joint operation held at Pasar Borong Kuala Lumpur on Wednesday, Sivakumar said 34 employers were inspected and 19 of them paid wages in cash. Other offences included violations of working hours and non-compliance with the Minimum Wages Ordinance. “The operation aims to address complaints regarding unpaid wages, lack of contributions to the Social Security Organisation (Socso) and the Employees Provident Fund (EPF), and employers not paying salaries via bank accounts,” he told reporters after participating in the operation in the wholesale market. Meanwhile, Sivakumar said that from January to October, a total of 1,654 investigations were opened for offences relating to payment of salaries, accommodation of workers and minimum wage orders, resulting in total fines of more than RM4.3 million. He said that of the investigation papers opened, 357 cases were fined a total of RM391,236 while 775 cases were compounded RM3,958,500. The investigation papers were opened under Act 265, Workers’ Minimum Standards of Housing and Amenities Act 1990, and Minimum Wages Order 2022. He said the ministry and relevant departments are determined to ensure that there is no element of forced labour in the country and that integrated operations will continue throughout the country. Employers not allowed to pay salaries in cash without approval, says HR minister KUALA LUMPUR (Nov 15): The value of real estate market transactions jumped 22.6% to RM57.15 billion in the third quarter of 2023 (3Q2023) compared to the same quarter last year, due to an increase in the transfer of ownership of “major sales” in the country, according to the Valuation and Property Services Department (JPPH). Transaction volume increased marginally by 3.7% year-on-year (y-o-y) to 108,955 in 3Q2023. JPPH director general Abdul Razak Yusak said the residential sub-sector continued to support the overall property market, accounting for 62.9% of total transactions, or 68,561 in volume, valued at RM28.36 billion. “This was followed by the agricultural sub-sector, which accounted for 18.5% of total transactions, and the combination of the trade sub-sector and other sub-sectors, which accounted for 18.6%,” he said at the online launch of JPPH open transaction data and release of the 3Q real estate market report on Wednesday. He said terraced housing accounted for 29,755 transactions, or 43.4% of total residential transactions. Abdul Razak said housing priced at RM300,000 and below per unit continued to dominate market activities, with 52.4% share (35,948 transactions), followed by those priced from RM300,001 to RM500,000, with 24.7% share (16,947 transactions), while the rest were units Property transaction value up 22.6% y-o-y to RM57.15 bil in 3Q — report Bernama Bernama priced from RM500,001 and above, with 22.9% share (15,666 transactions). He said new residential launches in 3Q2023 saw a rise of almost 6,900 units, versus 4,797 units in 2Q2023, while sales of new launches increased to 37.6%, versus 24.7% in the previous quarter. New launches of RM300,000 and below dominated, with over 70% share (5,075 units), with a better sales performance of 44.1%, followed by RM300,001 to RM500,000, with 11.8% share (813 units), and RM500,001 and above, with 14.4% share (993 units). Among the states, Selangor recorded the highest number of new launches at 2,491 units, or 36.2% of nationwide launches, with an improved sales performance of 69.1%. On the overhang or unsold completed houses, Abdul Razak said the situation had improved, with a 3.7% drop in terms of volume (25,311 units), or a 4.9% reduction in value (RM17.40 billion), as compared to the previous quarter. “Almost 62.2% of the residential overhang comprised condominium or apartment units, and nearly 55% of the residential overhang [comprised units] priced at RM500,000 and below,” he said. He said there were more than 22,000 completed but unsold serviced apartment units valued at RM18.24 billion in 3Q2023, a drop in volume and value of 1.5% and 4.7% respectively, as compared to the previous quarter. Of the total overhang, 61.2% cost RM500,000 and above, with most of them in Johor. Meanwhile, Abdul Razak said housing prices in Malaysia had stabilised with minimal increases. He said the Malaysian House Price Index stood at 212.6 points (RM458,751 per unit), with a small annual growth rate of 0.1% in 3Q2023. “All states experienced moderate growth of between 0.1% and 4.0%, except for Selangor, Pahang, Kelantan and Sarawak, which showed a decrease of between 0.7% and 1.6%,” he said. He said terraced houses continued to see stable growth, with a small 0.8% rise, while other residential types saw a minimal fall in prices. Abdul Razak said private custom-built offices saw a rise in occupancy to 72.7%, up by less than 1% as compared to 2Q2023, while unoccupied office space remained high at 5.02 million square metres. SUHAIMI YUSUF/THE EDGE

THURSDAY NOVEMBER 16, 2023 13 THEEDGE CEO MORNING BRIEF

THURSDAY NOVEMBER 16, 2023 14 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (Nov 15): PAS president Tan Sri Abdul Hadi Awang remains as the Marang Member of Parliament, as a three-member Federal Court bench led by Court of Appeal President Tan Sri Abang Iskandar Abang Hashim on Wednesday ruled that Barisan Nasional election candidate Jasmira Othman had failed to prove his petition beyond reasonable doubt. “This follows the principle established in election law — that [the Terengganu executive councillors] were agents of the respondent (Abdul Hadi) had not been established,” Abang Iskandar said. “The bench is also not with the appellant on the other issues raised (alleged graft during the general election). Hence, we rule that the appellant had failed to prove the petition beyond reasonable doubt, and hence we unanimously dismiss the appeal.” The other Federal Court judges on the bench were Datuk Zabariah Mohd Yusof and Datuk Rhodzhariah Bujang. The Marang petition is the last petition of appeal that relates to the 15th general election (GE15) held on Nov 19, 2022. Jasmira’s counsel Datuk Mohd Hafarizam Harun had argued that the giving out of financial aid through the i-Belia and I-Siswa programmes from Nov 14 to 17, 2022 by the Terengganu exco at the time constituted graft to the Marang constituents, and that the exco members, who are also Marang PAS senior members, could be considered as agents of Hadi. Hafarizam cited the Kemaman and Kuala Terengganu election court decisions, which nullified both PAS parliamentary seats won, due to the i-Siswa and i-Belia aid given, plus the fact that the Islamist party did not appeal against the decisions to the Federal Court, as grounds that the alleged graft during the campaign period did take place. As a result, he said, the Kuala Terengganu by-election was held in August, while the Kemaman by-election nomination day is scheduled for this Saturday. Hafarizam said the i-Belia and i-Siswa aid, which was given to more than 6,000 people in the Marang parliamentary constituency, could have been given at some other time outside of the campaign period, and hence Hadi’s win should be nullified. He pointed out that financial contributions were also given at one surau in the constituency, which were further evidence of monetary contributions used in the campaign. However, in all those occasions cited, Hadi was not around at those functions, but pictures of him on the backdrop or PAS flags were present. In the other two election petitions, the candidates for both seats were present when the i-Belia and i-Siswa aid was given out. ‘Aid decided a year before GE15’ Abdul Hadi’s counsel Yusfarizal Yussoff, who appeared with PAS secretary general Datuk Seri Takiyuddin Hassan, in reply said that the aid was planned well before the GE15, as it was formulated on Nov 15, 2021, and passed by the legislative assembly in June 2022. Yusfarizal reminded the bench that the GE15 did not cause the state to have its own election, and hence the Terengganu government at that time remained intact. “This was the first time that state elections were held separately from the Parliament elections,” he said, adding that the decisions in the Kuala Terengganu and Kemaman election courts do not bind the apex court. He said that the Terengganu exco had decided, back in September 2022, that the i-Belia and i-Siswa aid were to be disbursed between Oct 30 and Nov 30 last year, and this was decided way before Parliament was dissolved on Oct 10. BY HAFIZ YATIM theedgemalaysia.com PAS president Hadi Awang remains Marang MP “Furthermore, there is no issue of the aid given to be considered as a bribe, as applicants were told to apply for the funds before the national election campaign period. i-Belia and i-Siswa were an extension of assistance and policy by the Terengganu government to be disbursed during that period,” he added. Yusfarizal asserted that the Terengganu exco who had given the aid in Marang should not be considered as Abdul Hadi’s agents, as the Federal Court defines agents in elections as those who are officially appointed. Hence, he said, there was no element of appointment of the exco being Abdul Hadi’s agents, and there was no proof they were agents, as they were fulfilling their task or wearing their hats as state exco members. “Furthermore, Abdul Hadi was not present when the aid was given, and there was no coercion done, as the recipients had been decided beforehand,” Yusfarizal said. “As the Terengganu exco members are not deemed as agents, and that the aid was decided way before the campaign period, this should not be construed as election offences. Hence, the appeal by Jasmira should be dismissed.” Besides Takiyuddin, Wan Rohimi Wan Daud, who is the Melor assemblyman in Kelantan, and Mohd Faizi Che Abu appeared for Abdul Hadi. PAS secretary general Datuk Seri Takiyuddin Hassan (centre) with party president Tan Sri Abdul Hadi Awang’s lawyers after the court decision. HAFIZ YATIM/THE EDGE

THURSDAY NOVEMBER 16, 2023 15 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (Nov 15): Mohd Hatta Sanuri has failed in his bid to reinstate his suit in connection with the withdrawal of a review application over the International Court of Justice’s (ICJ) decision on the Pulau Batu Puteh claim. A three-man bench of the Court of Appeal led by Datuk Hadhariah Syed Ismail, unanimously dismissed an appeal by Mohd Hatta after finding that the appellant had no locus standi to bring the legal action against the Prime Minister and the government as the respondents. “The claim is clearly an abuse of the court process and the respondents have met the threshold of Order 18, Rule 19 of the Rules of Court 2012 (striking out application), that the subject matter of Mohd Hatta’s claim is non-justiciable. Therefore, we dismiss the appellant’s appeal with costs of RM10,000,” she said. Justice Hadhariah, who sat with Justices Datuk See Mee Chun and Mohamed Zaini Mazlan, also dismissed Mohd Hatta’s appeal against a High Court decision on Jan 30 last year to allow the application by the Prime Minister and Government of Malaysia for a protection order for the documents. “We find no merit in the appeal. We agree with the respondents that the documents are sensitive in nature, which involve the diplomatic and bilateral relationship between the Government of Malaysia and Government of Singapore. We dismiss the appeal with costs of RM5,000,” she said when delivering today’s decision via online proceeding. On July 1 last year, the High Court in Kuala Lumpur struck out Mohd Hatta’s suit after allowing an application by the Prime Minister and the government. High Court judge Hayatul Akmal Abdul Aziz held that the subject matter was non-justiciable and Mohd Hatta also did not have locus standi (legal standing) to bring the legal action against the Prime Minister and the government. In 2018, the Pakatan Harapan (PH) government under the leadership of then Prime Minister Tun Dr Mahathir Mohamad withdrew an application to overturn ICJ’s ruling on 23 May 2008 awarding legal jurisdiction of Pulau Batu Puteh (known as Pedra Branca by Singapore) to Singapore even before the hearing of the case, which was scheduled on June 11, 2018. On May 28, 2021, Mohd Hatta filed the suit on his behalf and on behalf of the Bernama Mohd Hatta fails in bid to reinstate suit on Pulau Batu Puteh claim more than 32 million Malaysians allegedly affected by the withdrawal of the review application, which was made without discussing and tabling it first in Parliament. In his statement of claim, Mohd Hatta sought an order for the government to provide a written explanation on why they had withdrawn from the review of the ICJ’s decision on June 1, 2018, when a review application with strong evidence had been initiated and filed since Feb 3, 2017. He also sought a declaration for the Prime Minister and the government to pay compensation to each Malaysian based on the land value of Pulau Batu Puteh and based on the economic losses suffered by all Malaysians including him (Mohd Hatta) equally, amounting to at least RM10 million each. An order was also sought for both the Prime Minister and the government to disclose in detail the total cost incurred by the second defendant (government) for the preparation of the ICJ decision review application on Feb 3, 2017, until they abruptly withdrew the application on June 1, 2018. Earlier, lawyer Mohaji Selamat, representing Hatta, had submitted that the appellant had locus standi to file legal action regarding the Pulau Batu Puteh issue because it involved national sovereignty. According to him, the action of withdrawing the review application resulted in loss not only to the appellant but to 32 million Malaysians. “A lot of money was spent to start this review (application) at the ICJ, but the sudden withdrawal of the review two weeks before the hearing caused losses to the people of this country,” he said. He further submitted that the legal action filed by his client was not based on speculation following the Attorney-General’s Chambers in a previous statement stating that the government thought the withdrawal of the review application was irregular and improper. “Therefore, this case should have been heard through a full trial instead of being overturned by the court. I request that the appellant’s appeal be allowed,” said the lawyer. Meanwhile, Senior Federal Counsel (SFC) Liew Horng Bin, representing the respondents, submitted that the appellant does not have the locus standi to commence a legal action. “What right does the appellant have as a citizen to commence this case? If he fails to identify his right, we submit that the appellant does not have locus standi,” he said, adding that the appellant’s claim is an abuse of the court process. Liew, who was assisted by SFC Shamsul Bolhassan, further submitted that the respondents’ decision to withdraw the ICJ review was made after considering legal advice rendered by foreign legal experts appointed by the government.

THURSDAY NOVEMBER 16, 2023 16 THEEDGE CEO MORNING BRIEF WORLD (Nov 15): US President Joe Biden and Chinese counterpart Xi Jinping’s carefully choreographed, much-anticipated sitdown on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit kicks off on Wednesday at the Filoli estate south of San Francisco. The gathering, among 16 acres of lush autumnal gardens, belies a heady agenda, as they attempt to repair a relationship badly strained by economic competition, and military and diplomatic missteps. The leaders are expected to discuss a US request for resuming military-to-military communication, in hopes of avoiding confrontations in Pacific skies and seas, as well as a comprehensive Chinese law enforcement effort to crack down on fentanyl manufacturing and distribution networks. The leaders also plan to confer about artificial intelligence, the status of Taiwan, and conflicts involving Ukraine and Israel. Chinese officials are likely to seek the rollback of export controls, tariffs, and restrictions on investment in the US. The meeting is expected to follow roughly the same format as their previous gathering in Bali, Indonesia, in November 2022. After a handshake greeting, Biden and Xi will sit for a meeting with close advisers. Following a break, a larger group will gather for additional talks, with the total meeting time expected to stretch for hours. Once they conclude, Biden is expected to hold a press conference, while Xi returns to San Francisco for a dinner with top US executives. US and Chinese officials spent weeks discussing the agenda and the structure of the event, White House spokesman John Kirby said on Tuesday. “The table has been set again over the course of many weeks for what we hope will be a very productive, candid, constructive conversation here,” Kirby said. Choreographed summit One US official, briefing reporters ahead of the meeting on condition of anonymity, said that because of the power Xi had consolidated within China, the meeting offered a rare opportunity to make changes in the relationship — and that the stakes couldn’t be higher. Aides acknowledged that every detail of the visit would be scrutinised. Treasury secretary Janet Yellen, who visited Xi in China earlier this year, greeted him at the airport upon his arrival, a nod to their preexisting relationship and her reputation in Beijing as a serious power broker. And the selection of Filoli, nestled against the Santa Cruz mountains, evokes the informal meetings held between Xi and former president Barack Obama at Sunnylands outside Palm Springs, where the pair literally and metaphorically rolled up their shirtsleeves for days of talks. The biggest goal for both leaders is repairing a relationship that has been repeatedly strained. Citadel founder Ken Griffin said a key objective should be taking “the mutual temperature down”. “There is no room for an accident to take place,” Griffin said on Tuesday in an interview with Bloomberg News at his firm’s inaugural global macro conference in Miami. “Our economies are incredibly coupled together, and an abrupt decoupling would come at just catastrophic costs to the people.” China’s economy Ahead of the meeting, Biden said his goals included helping China’s struggling economy, provided that growth didn’t come at the expense of US intellectual property. “If the average citizen in China was able to have a decent-paying job, that benefits them and benefits all of us,” he said. “But I’m not going to continue to sustain the support for positions where if we want to invest in China, we have to turn over all our trade secrets.” The US did not plan to announce changBY JUSTIN SINK & MICHELLE JAMRISKO Bloomberg Biden, Xi eye economic and military thaw in high-stakes meeting es to its tariff regime or sanctions against Chinese entities, despite expecting Xi to push the issue, the US official said. Economic insecurity may partly explain Xi’s willingness to engage, despite high-profile clashes over an errant Chinese spy balloon and then-House speaker Nancy Pelosi’s visit to Taiwan. A crisis in China’s property sector has weighed down the country’s post-pandemic recovery with its economy no longer on course to surpass the US. Foreign holdings of the nation’s equities and debt have fallen by about 1.37 trillion yuan (US$188 billion), or 17%, from a December 2021 peak through the end of June this year, according to Bloomberg calculations based on central bank data. Still, bilateral trade between the US and China amounted to almost US$760 billion in 2022, while the value of investments in physical and financial assets stood at US$1.8 trillion. Domestic audience US-China experts say there are no simple answers to the challenges the nations face, but the hope is Biden and Xi can rebuild a level of mutual understanding. “The big thing missing is trust,” said Dennis Wilder, a senior fellow for the Initiative for US-China Dialogue on Global Issues at Georgetown University. “I have not seen the US-China trust deficit as big as it is today.” A show of cooperation could help Xi signal at home that the cycle of actions hurting Chinese businesses is ending, according to Mary Lovely, senior fellow at the Peterson Institute for International Economics, bolstering an economy suffering weak consumer and investor confidence. Still, both leaders must tread carefully for their domestic audiences, in particular Biden, who faces a tough re-election. A Bloomberg News/Morning Consult poll this month found that 46% of swing-state voters said they trust former president Donald Trump, the GOP frontrunner, on China, compared to 34% for Biden. Read also: Top emitters vow new climate action in US-China breakthrough The US and China, the world’s biggest polluters, vowed to step up joint action to tackle climate change in a revival of collaboration that’s likely to offer crucial momentum for UN talks in Dubai opening later this month. Economic insecurity may partly explain Xi’s willingness to engage, despite high-profile clashes over an errant Chinese spy balloon and then-House speaker Nancy Pelosi’s visit to Taiwan. BLOOMBERG

thursday november 16, 2023 17 The E dge C E O m o rning brief world (Nov 15): Pickups in China’s consumer spending and industrial output last month provided a needed boost to the world’s second-largest economy, as policymakers continue to weigh support for a recovery beset by an ongoing property crisis. Retail sales climbed 7.6% in October from a year earlier, the National Bureau of Statistics (NBS) said on Wednesday, a better-than-forecast result aided in part by favourable comparisons to a weak month in 2022. October also captured the week-long Golden Week holiday period, during which many Chinese travelled around the country and shopped. Industrial production rose 4.6%, slightly higher than projections. Those figures helped offset obvious signs of weakness in the housing market: A contraction in property development investment worsened through the first 10 months of the year, dragging on fixed-asset investment growth. The data suggested China’s economy is still retaining some of its momentum going into the final stretch of 2023, even if the headline figures partly look better because they compare to pandemic-hit 2022. That may provide some temporary relief to investors, given how recent indicators have flashed warning signs on everything from factory activity and exports to consumer deflation pressures and muted borrowing. “China’s economy seems to have averted fears about a broader sequential slowdown in October,” said Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong. “With that being said, the devil is in the details,” he said, noting the drag in real estate investment and adding that official strategies to restructure debt in the property sector will take several years to achieve. “Policy support is still needed in order to address concerns around domestic sentiment and housing demand.” The offshore yuan pared earlier losses and rose 0.1% after the data was released, while the onshore yuan gained 0.2%. The yield on China’s 10-year government bonds climbed one basis point to 2.67%. The onshore CSI 300 Index trimmed an earlier gain of as much as 1.1% to trade 0.6% higher in the afternoon session, while the Hang Seng China Enterprises Index maintained its morning advance, up 2.9% as of 1.20pm local time. Policymakers are taking steps to add stimulus to help the economy, including via an Bloomberg China consumers offer boost to economy looking for support unconventional mid-year budget revision and the approval of one trillion yuan (RM647.64 billion) worth of sovereign bonds for infrastructure investment last month. Just before the data was released, the People’s Bank of China injected the most cash since 2016 through its medium-term lending facility on Wednesday to support funding for growth. Bloomberg Economics estimates that the additional policy loans will have an impact on markets equivalent to a reserve requirement ratio cut of more than 25 basis points. That’s lowering expectations the central bank would cut that in the coming weeks. Beijing is also planning to provide at least one trillion yuan of low-cost financing to the nation’s urban village renovation and affordable housing programs to help the property market, Bloomberg News reported. The data on Wednesday showed the contractions for China’s home sales and property development investment both deepening in October. The NBS highlighted the improvement in major indicators in its statement accompanying the data, adding that the economy “operated stably overall.” But it noted ongoing challenges from external uncertainties and insufficient domestic demand, adding that “foundation of the economic rebound still needs to be solidified.” “China’s headline activity data for October look rosier than the reality. Production and retail sales beat expectations on a yearon-year basis, but this was largely due to comparison with depressed figures from 2022, when the economy was struggling through the end of Covid Zero. The month-on-month numbers show weak underlying momentum is carrying over from 3Q. Overall, the data suggest more policy support is needed and is probably coming,” said Chang Shu and David Qu, economists at Bloomberg Economics. Some economists cautioned that consumer sentiment is still not on a completely sure footing. October retail sales grew at a similar pace as compared to September on a month-on-month basis, according to Zhang Zhiwei, chief economist at Pinpoint Asset Management Ltd, who added that “domestic demand is still weak” . “Consumer activities remain a little bit downbeat in China because of the poor consumer sentiment, as well as the negative wealth effect coming from the property market,” said Jacqueline Rong, chief China economist at BNP Paribas SA, in an interview with Bloomberg TV. Read also: China pumps cash into banking system to support stimulus funding China land sales revenue falls at faster pace, squeezing local governments China’s economy seems to have averted fears about a broader sequential slowdown in October.” — Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong. Read the full story

THURSDAY NOVEMBER 16, 2023 18 THEEDGE CEO MORNING BRIEF presents real estate matters Official Solar Partner Supported By

thursday november 16, 2023 19 The E dge C E O m o rning brief world (Nov 15): Tencent Holdings Ltd’s earnings beat estimates after video advertising on WeChat propelled growth, a sign that Chinese consumers are turning to social media and games despite a nationwide downturn. The WeChat operator reported growth across divisions from gaming and advertising to fintech, driving a 10% gain in revenue to 154.6 billion yuan (RM99.85 billion) for the September quarter. Net income slid a less-than-expected 9%, reflecting both ramped-up spending on content and a big one-off gain in the year-ago quarter when Tencent disclosed it would pare its stake in Sea Ltd. Shares in Prosus NV, a proxy for Tencent as its largest shareholder, climbed more than 6% in Europe. The results may help assuage concerns that the world’s largest internet market has lost steam after years of regulatory and economic turmoil. They suggest lower-cost and leisure spending remain resilient despite pullbacks in segments from luxury to overseas travel. Investors worry the Chinese economy may enter a deflationary spiral, a fear reinforced by lacklustre spending on e-commerce platforms during this year’s Singles’ Day shopping festival. Online advertising, typically associated with the economic climate, was Tencent’s fastest-growing division with a 20% gain in revenue. That was driven in part by growing user engagement in WeChat’s video accounts, where total views climbed 50% during the quarter. That’s good news for Tencent, which has tried for years to fend off a charge by TikTok-owner ByteDance Ltd into online media. Notably, the company’s gross margins neared 50%, or levels not seen since 2018. Its adjusted net income, which strips out exceptionals, gained 34%. Executives will continue to look for ways to return cash to shareholders, despite already doling out some US$24 billion to investors so far this year. The company for now favors buybacks over dividends or sales of assets given valuations are historically low, president Martin Lau told analysts on a conference call. The “current level of gross margin is sustainable and we believe there is room for it to grow further,” chief strategy officer James Mitchell said. More broadly however, Chinese consumption remains muted due to a plethora of headwinds from a crumbling property market to rising youth unemployment. Deflationary pressure worsened in October, fuelling expectations the world’s No 2 economy needs more stimulus. And Tencent’s own pace of expansion remains well off a pre-Covid peak. Some of the quarter’s growth came from abroad, after international gaming revenue surged 16%. Alibaba Group Holding Ltd and NetEase Inc will report earnings Thursday in another set of signals on how e-commerce and gaming fared during the post-pandemic reopening. Online retailer JD.com Inc on Wednesday reported results that surpassed expectations. “The substantial year-over-year improvement in gross margin points to structural profit gains driven by a shift in revenue mix,” Union Bancaire Privee analyst Vey-Sern Ling said. But “the positive stock response also underscores how low expectations have sunk, a factor to bear in mind across the remainder of China tech reports the next few days.” Tencent hopes its mainstay businesses from gaming to payments are less vulnerable to the downturn as consumers keep spending on low-ticket items. Monetisation by summer hits including Valorant and Lost Ark is expected to fully kick in during the remainder of this year, while the world’s biggest games publisher expands Honor of Kings — its most lucrative intellectual property — into more genres. There’re signs that Tencent is beating back a foray by its main social media rival into gaming. ByteDance is considering the sale of Moonton, a high-profile studio it bought for US$4 billion just years ago, in what would be the TikTok Tencent’s profit beat allays fears of China downturn fallout by Zheping Huang Bloomberg Read the full story Read also: Tencent, Alibaba earnings hold key to US$44 bil China tech run Baidu CEO warns China’s rush to develop AI models risks wasting resources operator’s biggest retreat from the space. Longer-term, Tencent joins much of the Chinese tech sector in exploring the potential of generative AI. Its in-house large language model, Hunyuan, is now integrated with more than 180 services including search and online marketing. Together with arch-foe Alibaba, the Shenzhen-based company also made multiple bets on domestic AI upstarts in the so-called “war of a hundred models,” helping mint new unicorns like Baichuan. On Wednesday, the company pledged to continue investment. Lau said Tencent won’t run out of the high-end chips essential to training AI, which Washington just banned from selling into China. The company had built up one of the country’s largest stockpiles of Nvidia Corp H800 chips, enough to train at least a couple generations of Hunyuan, he said. For now, WeChat remains a more dependable growth driver than any AI foray. China’s go-to super app is credited with engineering a turnaround in ad sales, after its short video feed lured users and marketers back from ByteDance’s Douyin, Mitchell said.

thursday november 16, 2023 20 The E dge C E O m o rning brief world US House passes spending bill to avert govt shutdown (Nov 15): BofA Global Research no longer expects the US Federal Reserve to raise interest rates, joining other Wall Street banks, following softer-than-expected October inflation data in the world’s largest economy. Data on Tuesday showed US consumer prices were unchanged in October monthon-month, representing a significant cooling from September’s rise. This bolstered views among investors that the Fed was probably done raising interest rates, and prompted bets that the central bank could start cutting rates in May. BofA had previously forecast a final 25 basis points (bps) hike in December. The drop in owners’ equivalent rent inflation — a gauge of the real estate market — and the cooldown in core services excluding housing, should encourage the Fed to stay on hold, BofA said in a note dated Tuesday. (Nov 15): Barclays Plc has attracted strong investor orders for an additional tier 1 sale, in another sign of a revival for the market rocked earlier this year by the historic writedown of Credit Suisse securities. The London-based bank is selling a benchmark-size — at least US$500 million (RM2.3 billion) — dollar perpetual AT1 note that’s callable in June 2030, with a revised yield of around 10%, according to a person familiar with the matter, who asked not to be identified discussing a private matter. The lender has seen more than US$13 billion of investor demand so far for the deal, which is expected to price later on Wednesday. Last week UBS Group AG sold additional tier 1 notes, its first such issuance since roughly US$17 billion of Credit Suisse’s AT1s were wiped out as part of a UBS takeover brokered by the Swiss government. The Swiss lender pulled in roughly 10 times the bids for the debt on offer. The new issuance will bolster Barclays’ AT1 capital structure — an important cushion that helps lenders comply with core capital requirements without relying solely on more expensive equity. Barclays’ securities will convert into equity if a capital adequacy trigger has been breached, setting them apart from the Credit Suisse AT1 notes that had a complete loss imposed by the Swiss authorities. Global contingent convertible bonds from banks have rebounded from their slump in March. Bloomberg’s Global CoCo Banking Statistics Index has rallied 15% since March 20 and the average yield premium has shrunk 240 basis points since then. WASHINGTON (Nov 14): The US House of Representatives on Tuesday passed a temporary spending bill that would avert a government shutdown, as wide swaths of lawmakers from both parties showed support for the legislation. The legislation, which would extend government funding through mid-January, now heads to the Senate, where Democratic and Republican leaders have voiced support. To prevent a shutdown, the Senate and Republican-controlled House must enact legislation that President Joe Biden can sign into law before current funding for federal agencies expires at midnight on Friday. The 336-95 vote was a victory for House Speaker Mike Johnson, who faced down opposition from some of his fellow Republicans, in the first consequential vote of his tenure. Johnson was elected to the post less than three weeks ago, following weeks of tumult that left the chamber without a leader. With a slim 221-213 majority, he can afford to lose no more than three Republican votes on legislation that Democrats oppose. The stopgap spending bill would extend government funding at current levels “We now think that the hiking cycle is over... The Fed will probably try to leave the door open for more hikes next year at its December meeting, but there are diminishing returns to hawkish rhetoric when its policy choices lean dovish,” BofA economists led by Stephen Juneau said. The brokerage expects the Fed to start cutting rates in June 2024, and deliver a cut every quarter. Case for a hike While most other Wall Street majors view the Fed as likely done with raising rates, Barclays still expects another 25 bps hike in January. “A closer look... reveals that the easing in core inflation pressures appears somewhat exaggerated,” said Barclays economists led by Pooja Sriram. “With data on economic activity and labor markets still carrying a fair bit of momentum, we think there remains a case for an additional rate hike early next year.” BofA joins ‘Fed done hiking rates’ view; Barclays sees one more Barclays gets more than US$13 bil demand for by Priyadarshini Basu & Susan Mathew dollar AT1 Reuters by Harry Suhartono Bloomberg by David Morgan & Moira Warburton Reuters Read also: Dollar tumbles most in a year as traders bet on end of US interest rate hikes US producer prices decline by most since April 2020 on gasoline Read the full story into 2024, giving lawmakers more time to craft the detailed spending bills that cover everything from the military to scientific research. Some Republicans on the party’s right flank said they were frustrated that it did not include the steep spending cuts and border-security measures they sought. The bill passed with 209 Democratic and 127 Republican votes, while 93 Republicans and two Democrats voted against it.

THURSDAY NOVEMBER 16, 2023 21 THEEDGE CEO MORNING BRIEF WORLD (Nov 15): The euro area and its biggest economies will avoid a recession as growth returns at the end of the year, helped by slowing inflation and a robust jobs market, according to new European Union forecasts. Output in the 20-nation bloc will increase by 0.2% in the fourth quarter after shrinking 0.1% in the three months through September, the European Commission said in a report on Wednesday. Even Germany, which has fared worse than peers amid a prolonged manufacturing slump, is predicted to avoid a recession. For the full year, the EU’s executive arm now sees 0.6% growth, down from a September forecast of 0.8%. That’s seen picking up to 1.2% in 2024 and 1.6% in 2025 — a slightly more optimistic view than that of the European Central Bank. “Strong price pressures and the monetary tightening needed to contain them, as well as weak global demand, have taken their toll on households and businesses,” EU economy commissioner Paolo Gentiloni said in a statement. “Looking ahead to 2024, we expect a modest uptick in growth as inflation eases further and the labour market remains resilient.” Price growth will average 5.6% this year and ease to 3.2% in 2024 and 2.2% in 2025. That’s similar to the ECB’s prediction and an upward revision for next year compared to the EU’s September forecast, prompted by higher energy and food commodity costs. “Still, price pressures related to non-energy consumption categories are expected to unwind, broadly in line with the previous forecast and in a context of slightly tighter financing conditions, moderating wage growth and normalising profit shares,” the commission said. Inflation eased to 2.9% last month, down from a peak of more than 10%, but ECB policymakers have warned against complacency as price growth may pick up again in coming months. They kept interest rates on hold in October, saying the current level will help return inflation to the 2% goal — if held for long enough. Read the full story Euro area to avoid recession as inflation retreats, EU says LONDON (Nov 15): Oil prices dipped on Wednesday amid signs the United States, the world’s biggest oil producer, is at peak production, offsetting positive crude demand signals from top consumer China. Brent futures were down 29 cents to US$82.18 a barrel at 1207 GMT, while US West Texas Intermediate (WTI) crude was down 32 cents to US$77.94. China’s economic activity perked up in October, as industrial output increased at a faster pace and retail sales growth beat expectations, an encouraging sign for the world’s second-largest economy. The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries. “With China being a scapegoat for much of the world’s lack of industrial demand, this glimmer of light ought to aid oil’s progress but the reluctance is so far winning out,” said John Evans of oil broker PVM in a note. Downward pressure on oil prices may come from the supply side, with the United States “likely at peak production for crude,” while the delayed release of oil data from the world’s biggest producer makes the investment situation more opaque, Evans said. The US Energy Information Administration (EIA) will release its first oil inventory report in two weeks on Wednesday, Oil dips on prospect of peak US production, despite strong demand signals after a delay last week due to a systems upgrade. The Financial Times reported on Wednesday that Denmark will be tasked with inspecting and potentially blocking tankers with Russian oil sailing through its waters under new European Union plans, as the West explores more ways of enforcing a price cap on Moscow’s crude. However, it is still to be seen how Denmark will enforce this. A softer US inflation reading that bolstered expectations for an interest rate cut by the Federal Reserve next spring sent the US dollar down to a two-and-a-half-month low against a basket of other currencies. A weaker dollar can boost oil demand by making crude cheaper for buyers using other currencies. British inflation also cooled in October, and more than expected, reinforcing expectations that the Bank of England’s hiking cycle has ended, with the Federal Reserve and European Central Bank also seemingly having reached the peak for interest rates. Elsewhere, the European Union reached a deal on Wednesday on a law to place methane emissions limits on Europe’s oil and gas imports from 2030, pressuring international suppliers to clamp down on leaks of the potent greenhouse gas. Read also: European gas swings as brimming stockpiles counter winter risks BY PAUL CARSTEN, SUDARSHAN VARADHAN & LAURA SANICOLA Reuters BY ALEXANDER WEBER & SONJA WIND Bloomberg BLOOMBERG BLOOMBERG

THURSDAY NOVEMBER 16, 2023 22 THEEDGE CEO MORNING BRIEF WORLD PARIS (Nov 15): French car maker Renault said its electric vehicles (EVs) unit Ampere would see revenue more than treble to 10 billion euros (US$10.8 billion) in 2025, as it sought to fire up doubtful investors ahead of a planned market listing of the business next year. The group set out financial targets for the unit, including revenue of 25 billion euros in 2031, break-even in 2025 and an operating margin of at least 10% from 2030, ahead of an investor day in Paris. The planned initial public offering (IPO), slated for next spring, has been complicated by slower demand for EVs, choppy markets and increased Chinese competition, with sources close to the deal telling Reuters last month that chief executive officer Luca de Meo’s hopedfor valuation of eight billion to 10 billion euros looked over-ambitious. De Meo said on Wednesday that Renault had enough cash to finance Ampere’s growth without an IPO, but that the listing remained its preferred option, as the cash raised would allow it to accelerate its development and pay dividends sooner. But he said he would scrap the IPO plan if the valuation was too low. “We are not crazy,” he told reporters. Sources close to the matter told Reuters last month that the company was unlikely to go ahead with the IPO, if the overall valuation for Ampere fell below seven billion euros. De Meo declined to give a red line for the IPO. Renault sets out targets for EV unit, won’t sell it cheap (Nov 15): Chinese smartphone giant Xiaomi Corp has given the first glimpse of its debut electric vehicle, a five-seat sedan with a panoramic glass roof. A filing released by China’s Ministry of Industry and Information Technology on Wednesday shows the long-anticipated EV will be branded Beijing Xiaomi SU7 and manufactured by state-owned Beijing Automotive Group Co. The car has a sleek exterior and the option to install sensing technology known as lidar on the top of its windscreen for advanced assisted driving. It has a top speed of 265 kilometres (165 miles) per hour and weighs 2.66 tonnes. The EV is powered by batteries from Contemporary Amperex Technology Co Ltd and BYD Co, depending on whether it has a single or dual motor configuration. All Chinese carmakers are required to submit new models to the MIIT, and products that have received preliminary approval are published each month in a catalog that’s open to the public for one week to submit feedback. The release of the information doesn’t necessarily correspond to the production timeline. Xiaomi has previously said its EV will officially be launched in the first half of next year. One of China’s largest consumer electronics brands, Xiaomi joins other technology firms like Chinese conglomerate Huawei Technologies Co in pushing into electric vehicles. Offerings are becoming increasingly tech-laden, with features like voice control and assisted driving software popular with drivers. The Xiaomi-branded EV is a critical link in the company’s plan to create “an allaround ecosystem” for its customers. It’s already revamped the operating system for smartphones and other home appliances to include EVs in the future so users will able to control all types of Xiaomi products on a unified platform. But it’s entering a crowded and increasingly competitive auto sector in China. Market leader BYD is releasing a slew of new models, as are smaller EV makers such as Li Auto Inc, Geely Automobile Holdings Ltd, and its luxury Zeekr brand. Volkswagen AG and Xpeng Inc are planning at least two new VW-badged models for China, with the first due to arrive in 2026, while Stellantis NV has struck a deal with Zhejiang Leapmotor Technology Ltd. The world’s biggest car market has also been embroiled in a fierce price war this year, after Tesla Inc slashed the prices across its range, forcing rivals to follow suit. (Nov 15): ByteDance Ltd is considering selling gaming studio Shanghai Moonton Technology Co, people familiar with the matter said, as the TikTok owner looks to streamline its operation and focus on core businesses. The startup is working with an adviser to gauge interest from potential buyers for the studio behind popular game Mobile Legends: Bang Bang, the people said. ByteDance acquired Moonton in 2021 at a valuation of about US$4 billion (RM18.85 billion), the people said. Discussions are at an early stage and the deal size target couldn’t be immediately learned, according to the people, who asked not to be identified as the information is private. ByteDance may also decide against a sale, they added. Representatives for ByteDance and Moonton didn’t immediately respond to requests for comment. ByteDance, founded more than a decade ago by Zhang Yiming and Liang Rubo, grew into an internet leader worth more than US$200 billion thanks to the virality of short-video platforms TikTok and Douyin. The company has bought game studios and exclusive distribution rights, hoping to jumpstart the games business much as it disrupted social media and rivaled players such as Tencent Holdings Ltd and NetEase Inc. ByteDance has cut some of its game creation and publishing teams, as it shifts focus towards the new growth driver of e-commerce. A sale of Moonton, if struck, would mark the its biggest retreat in the attempt to conquer video gaming. Read the full story China smartphone maker Xiaomi gives first glimpse of its debut EV ByteDance weighs sale of gaming studio behind mobile legends BY LINDA LEW Bloomberg BY DONG CAO Bloomberg BY GILLES GUILLAUME & SILVIA ALOISI Reuters

THURSDAY NOVEMBER 16, 2023 23 THEEDGE CEO MORNING BRIEF WORLD NEWS IN BRIEF China’s Dalian exchange limits transactions in iron ore BEIJING (Nov 15): China’s state-backed Dalian Commodity Exchange on Wednesday set a limit on daily trading volumes for iron ore futures at no more than 500 lots on contracts for January to May 2024 delivery. The adjustment, which will apply to nonfutures company members or clients, will begin from the night session on Nov 16, the exchange said in a statement. The bourse will also raise margin requirements for speculative trading in iron ore futures contracts to 15% from 13%, starting from settlement on Nov 20. The move came after a continuous rally in iron ore prices. China’s most-active January iron ore contract on the Dalian Commodity Exchange has surged 9% so far in November on stronger-than-expected industrial output in China and ongoing support for the country’s ailing property sector. It ended daytime trading at 971 yuan (US$134.07) per metric ton on Wednesday, hitting its highest levels since May 2021. — Reuters Singapore’s October home sales fall as supply weakness weighs (Nov 15): Singapore’s home sales fell for a third month to the lowest since 2022, as a lack of major property projects being launched continued to drag on the market. New private apartments sold by developers dropped to 203 units in October, according to figures released on Wednesday by the Urban Redevelopment Authority. The limited supply and significant domestic demand has boosted sales for new projects. One private residential and retail complex known as the J’den sold 323, or 88% of the homes it made available, for its inaugural sale last weekend. Analysts have warned that a downturn is due for Singapore’s seven-year rally in private home prices — which rose 0.8% in the third quarter from the last three months. Morgan Stanley is predicting a 3% decline next year, while Bloomberg Intelligence expects prices to “move sideways in 2024, with some downside risk”. “There might be a bit of positive spillover effect” because of the high prices recent projects fetched, said Nicholas Mak, the chief research officer of Mogul.sg, a property portal. However, he expects sales to become more muted in the first few months of 2024. — Bloomberg UK house prices post first annual drop since 2012 — ONS LONDON (Nov 15): British house prices fell in annual terms in September for the first time since 2012 and rents rose sharply last month, official data showed on Wednesday, underlining the weak state of the housing market. House prices decreased by 0.1% in the year to September, the Office for National Statistics (ONS), the first annual fall since April 2012, after a 0.8% increase in August. Prices in London declined 1.1%. Britain’s housing market, which boomed during the Covid-19 pandemic, has been hit by higher borrowing costs as the Bank of England battles the highest rate of inflation among large advanced economies. Mortgage lenders Halifax and Nationwide both reported house prices continued to decline in annual terms in October, although prices rose slightly on a monthly basis. The ONS’ gauge of private rents rose by 6.1% in the 12 months to Philippines’ sovereign wealth fund to invest in airports, power projects MANILA (Nov 15): The newly-appointed president and CEO of the Philippines’ first sovereign wealth fund on Wednesday unveiled plans to invest in provincial airports and power projects to generate returns over the long term. The fund, upon starting operations later this year, is planning to generate more capital through overseas roadshows targeting foreign pension funds and other sovereign wealth funds, Maharlika Investment Corp president and CEO Rafael Consing Jr told reporters. The fund has 107 billion pesos (RM8.9 billion) in seed money from two state-owned lenders and the central bank. Under the law, the fund would issue up to 500 billion pesos worth of preferred and common shares. Maharlika has identified tourism infrastructure, agro- urbanism, energy security, and digital infrastructure as key sectors that will receive its support, Consing said. Philippines President Ferdinand Marcos Jr pushed for the fund’s creation, touting it as a key driver of long-term economic growth and infrastructure development. The Philippines is relatively late in setting up a sovereign wealth fund in the region, with neighbouring Indonesia launching its fund in 2021, and Singapore long having established one. But critics warmed it could be misused, like Malaysia’s 1Malaysia Development Bhd that was embroiled in a multi-billion dollar graft scandal. — Reuters EU agrees law to hit fossil fuel imports with methane emissions limit (Nov 15): The European Union (EU) reached a deal early on Wednesday on a law to place methane emissions limits on Europe’s oil and gas (O&G) imports from 2030, pressuring international suppliers to clamp down on leaks of the potent greenhouse gas. After all-night talks, negotiators from EU member states and the European Parliament agreed to a law which from 2030 will require importers of crude oil, gas and coal into Europe to prove those fuels meet a methane intensity limit. The law will now be put to the European Parliament and EU countries for final approval. That step is usually a formality that waves through preagreed deals. The regulation also introduces new requirements for the oil, gas and coal sectors to measure, report and verify methane emissions, the EU council said in a statement. The deal obliges O&G producers in Europe to find and fix leaks of the potent greenhouse gas in their operations and also limits most cases of flaring and venting, when companies intentionally burn off or release unwanted methane into the atmosphere. The import rules are likely to hit major gas suppliers which include the US, Algeria and Russia. Moscow slashed deliveries to Europe last year and has since been replaced as Europe’s biggest pipeline gas supplier by Norway — whose supply has among the world’s lowest methane intensity. — Reuters October, the biggest annual increase since data collection started in 2016 and up from 5.7% in September. Separate figures from the Ministry of Justice last week showed the number of no-fault eviction claims in England surged to the highest in more than seven years. No-fault eviction claims, which allow landlords to end tenancies without giving specific reason and go to court when tenants refuse to leave voluntarily, jumped 38% in the three months to September from the same period last year. — Reuters BLOOMBERG

THURSDAY NOVEMBER 16, 2023 24 THEEDGE CEO MORNING BRIEF WORLD SINGAPORE (Nov 15): Boustead Singapore has proposed an unconditional cash exit offer of S$1.18 (RM4.08) per share for shares in Boustead Projects. This time, the exit offer price is 23.6% higher than Boustead Projects’ last-traded price of 95.5 Singapore cents per share before its trading suspension. The exit offer price is also 24.2% higher than the previous offer of 95 Singapore cents per share, which closed on March 27. It also represents around 20x and 0.9x of Boustead Projects’ consolidated earnings per share (EPS) and net asset value (NAV) per share respectively for the last financial year. Wong Fong Fui, the chairman and group CEO of Boustead Singapore F9D 0.58% , as well as his children, have provided irrevocable undertakings to adhere to the decision of the group’s independent shareholders at an extraordinary general meeting (EGM) to be held before the end of 2023. Boustead Singapore’s independent shareholders will then decide on whether to extend the exit offer to Wong and his children. Read the full story Boustead Singapore makes exit offer of S$1.18 for Boustead Projects shares (Nov 15): Taiwan’s opposition parties have agreed to run a joint campaign in January’s election, paving the way for a radical shakeup of the race. Representatives of the Kuomintang (KMT) and Taiwan People’s Party (TPP) met on Wednesday, with the talks centring around how to decide which of their two nominees should head a single ticket as the presidential candidate. The parties, represented by KMT candidate Hou Yu-ih, the TPP’s Ko Wen-je, KMT chairman Eric Chu and former president Ma Ying-jeou, agreed to collate the results of public and internal party polls conducted from Nov 7 to 17 to determine which candidate has the highest chance of winning, according to a joint statement. If the gap between the candidates’ aggregated polling results falls within the margin of error, Hou will be deemed the winner. A result will be announced on Saturday. The two parties also agreed to form a joint government if they win the election. A combined opposition campaign would reshape an election that could affect global geopolitics for years to come. Taiwan has been thrust to the forefront of increasingly fraught ties between China and the US. Beijing sees the democratically ruled island as its territory, and hasn’t ruled out using force to bring it under control. Washington’s policymakers have pledged to help Taiwan defend itself from any attack. While Vice President Lai Ching-te, the ruling Democratic Progressive Party’s candidate, has consistently led opinion polls, a combined opposition campaign less than two months before polling day would pose a legitimate threat to his hopes of victory. Wednesday’s talks were the culmination of months of on-and-off negotiations between the opposition hopefuls, who had previously stumbled over which one of the parties’ candidates should take top billing. Candidates have until Nov 24 to formally register for the January election. Terry Gou uncertainty Lai has benefited so far from a divided opposition to lead most opinion polls. He had a 33% support rating, according to the latest TVBS survey, with Ko in the second place at 24%, and Hou with 22%. Foxconn Technology Group founder Terry Gou had the backing of 8% of respondents. An alliance between the KMT and the TPP could potentially leave Gou out in the cold, after the independent presidential contender had also floated the idea of teaming up with Ko. A spokesperson for Gou’s campaign said on Monday he will wait to have discussions with Ko’s camp before deciding what to do next, the Taipei-based Liberty Times reported. Read also: Xi urges more economic links with Taiwan before Biden talks Taiwan’s opposition agrees to join forces, reshaping key election that could affect global geopolitics for years BY JENNIFER CREERY & BETTY HOU Bloomberg BY FELICIA TAN theedgesingapore.com NEWS IN BRIEF Thailand to receive US$8.5 bil worth of investment from AWS, Google, Microsoft BANGKOK (Nov 15): Thailand will receive 300 billion baht (RM39.5 billion) worth of investment from Amazon Web Services (AWS), Google and Microsoft, a government spokesperson said on Wednesday. The companies will invest 100 billion baht each, Chai Wacharonke said. AWS plans to build a data centre with a budget of US$5 billion over 15 years, the government said in a separate statement. “The prime minister is confident that AWS’ investment will enhance the country’s competitiveness,” said Chai, adding Microsoft and Google were also studying investment plans for large data centres in Thailand. Amazon Web Services, Google and Microsoft did not immediately respond to a Reuters request for comment on investments in Thailand. — Reuters Elon Musk denies report of potential Starlink IPO in 2024 (Nov 16): Elon Musk on Wednesday denied a report that his rocket company SpaceX was discussing an initial public offering (IPO) for its satellite internet business, Starlink, as soon as 2024. He called it “false” in a reply to a post on social media platform X that shared a Bloomberg News report saying SpaceX had been moving the unit’s assets to a wholly owned unit that would ultimately be spun off. The billionaire entrepreneur has previously said he intended to list Starlink when revenue growth and cash flow became smooth and predictable. Earlier this month, he said Starlink had achieved cash-flow breakeven. SpaceX has an estimated value of US$150 billion (RM699.9 billion) and was the first private company to send humans into orbit. Its breakthroughs have left rivals, including Jeff Bezos’ Blue Origin scrambling to keep pace as reusable rockets significantly reduce launch costs. The Starlink unit is the world’s largest satellite operator. On Wednesday, it obtained a contract to offer free internet in Mexico until the end of 2026. — Reuters BLOOMBERG

thursday november 16, 2023 25 The E dge C E O m o rning brief world MILAN (Nov 15): Giorgio Armani has always kept a tight grip on the firm he founded, and the Italian fashion king’s attention to detail extends to clear rules on how it should be run after his death. Armani, 89, remains CEO and effectively sole shareholder of the business he set up with his late partner in the 1970s, which had a €2.35 billion (RM11.93 billion) turnover last year. With no children to pass it on to, there has been speculation about the long-term future of Armani’s empire and whether, in an industry dominated by luxury conglomerates, it will be able to maintain the independence he treasures. But a hitherto obscure document from 2016, held by a notary in Milan and reviewed by Reuters, sets out the future governing principles for those who inherit the group, while another details issues including protecting jobs at the firm. The first document explains how his heirs should approach a potential stock market listing — though not until five years after his passing — and any potential M&A activity. For the Armani look itself, the document commits them to the “search for an essential, modern, elegant and unostentatious style with attention to detail and wearability”. The document is the product of an extraordinary meeting that Armani called in 2016 to adopt new bylaws for the group which would come into force upon his death. Succession plan Armani’s heirs are expected to include his sister, three other family members working in the business, long-term collaborator Pantaleo Dell’Orco and a charitable foundation. The bylaws divide the company’s share capital into six categories with different voting rights and powers, and were amended in September to create some without voting rights. The Armani group, which as well as the CEO also represents the family members mentioned in the document, declined to comment on the document or its contents. It is not clear from the document how the different blocs of shares will be distributed, but corporate governance experts say the guidelines should ensure a relatively smooth transition by giving the board a central role. “It is an organisation that reduces the margins for disagreement between the heirs,” Guido Corbetta, professor of Corporate Strategy at Milan’s Bocconi University, told Reuters. Armani has a younger sister, Rosanna, two nieces, Silvana and Roberta, as well as a nephew, Andrea Camerana. Dell’Orco is also considered part of the family. All are currently board members and, apart from Rosanna, all work for the Armani group. Silvana and Dell’Orco are heads of design, working closely for decades with Armani, who dubbed them his “lieutenants of style”. The 2016 bylaws set the process for how the board will appoint future women’s and men’s style directors in a company known for its classic tailoring. Roberta is head of entertainment & VIP relations, while Camerana is sustainability managing director. Other fashion groups including LVMH, Europe’s most valuable luxury company, also have succession issues, with the five children of LVMH CEO and chairman Bernard Arnault all having key management roles at brands in the empire. Lasting legacy Armani also created a foundation in 2016 which currently has a tiny symbolic stake but is earmarked to play a pivotal role in protecting the business he set up with Sergio Galeotti before going it alone when his partner died in 1985. Its purpose is to reinvest capital for charitable causes and to maintain Armani’s lasting influence over the group. The foundation’s bylaws, which were also seen by Reuters, call for it to manage the shareholding with the aim of creating value, maintaining employment levels and the pursuit of company values. The Armani group has almost 9,000 employees. The arrangement has echoes of one adopted by Rolex founder Hans Wilsdorf who left the brand to a foundation in 1960 that still owns the luxury watchmaker. Armani has always defended his firm’s independence and ruled out a merger, especially with the French groups that swallowed up Italian brands such as Gucci, now owned by Kering. The group bylaws include a “cautious approach to acquisitions aimed solely at developing skills that do not exist internally from a market, product or channel point of view”. They also provides for the distribution of 50% of net profits to shareholders. Any eventual stock market listing requires the favourable vote of the majority of directors “after the fifth year following the entry into force of this statute”. The Armani group declined to comment on a potential listing in the mid-term. “The founding principles show Armani’s desire to transmit and prolong his idea of a company, of business, there is a desire for eternity,” Bocconi professor Corbetta said. Despite his meticulous planning, whether Armani’s aims outlast him will ultimately be beyond his control. “They [the rules] could restrict the company a little and become incompatible with drastic changes in the market,” Corbetta said. by Elisa Anzolin Reuters Giorgio Armani fashions his own legacy with succession plan Designer Giorgio Armani attending the 80th Venice Film Festival — Armani fashion show 'One Night Only' on Sept 2, 2023. Armani’s heirs are expected to include his sister, three other family members working in the business, long-term collaborator Pantaleo Dell’Orco and a charitable foundation. reuters

THURSDAY NOVEMBER 16, 2023 26 THEEDGE CEO MORNING 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) HONG SENG CONSOLIDATED BHD 736.3 -0.010 0.040 -81.82 204.3 LEFORM BHD 90.1 0.020 0.275 33.24 407.3 PLYTEC HOLDING BHD 70.8 -0.025 0.325 0.00 NULL WIDAD GROUP BHD 70.2 0.000 0.460 6.98 1,424.4 KANGER INTERNATIONAL BHD 61.8 -0.015 0.065 62.50 42.2 SARAWAK CONSOLIDATED INDUSTRIES 53.4 0.005 0.600 313.79 384.1 MYCRON STEEL BHD 45.3 0.110 0.440 7.32 143.9 TOP GLOVE CORP BHD 41.2 0.005 0.750 -17.13 6,006.1 SC ESTATE BUILDER BHD 39.5 0.000 0.040 -11.11 43.0 FITTERS DIVERSIFIED BHD 39.3 0.000 0.050 -28.57 117.1 PDZ HOLDINGS BHD 36.2 -0.010 0.050 25.00 29.1 COMPUTER FORMS MALAYSIA BHD 34.7 0.030 0.180 -92.86 48.2 SALCON BHD 31.9 0.015 0.355 58.21 359.4 VELESTO ENERGY BHD 28.0 -0.005 0.235 56.67 1,930.7 YTL CORP BHD 23.4 0.030 1.560 168.97 17,104.0 SIME DARBY BHD 23.0 0.030 2.400 4.35 16,357.4 TANCO HOLDINGS BHD 22.9 0.005 0.580 73.13 1,162.5 SMTRACK BHD 22.7 0.000 0.045 -10.00 55.0 MR DIY GROUP M BHD 22.2 0.100 1.620 -19.00 15,294.5 DAGANG NEXCHANGE BHD 21.2 -0.005 0.430 -15.69 1,357.2 Data as compiled on Nov 15, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) PEGASUS HEIGHTS BHD 0.010 100.00 639.9 0.00 108.2 EA HOLDINGS BHD 0.010 100.00 42.3 -33.33 64.5 FOCUS DYNAMICS GROUP BHD 0.020 33.33 484.2 0.00 127.4 MYCRON STEEL BHD 0.440 33.33 45278.7 7.32 143.9 IBRACO BHD 1.110 20.65 19081.2 86.55 606.1 SAUDEE GROUP BHD 0.030 20.00 974.8 -33.33 44.6 COMPUTER FORMS MALAYSIA BHD 0.180 20.00 34725.3 -92.86 48.2 LEADER STEEL HOLDINGS BHD 0.520 15.56 59.9 -4.59 80.4 BSL CORP BHD 0.040 14.29 173.0 -40.83 77.3 BARAKAH OFFSHORE PETROLEUM 0.040 14.29 1770.4 60.00 40.1 XOX NETWORKS BHD 0.040 14.29 306.9 33.33 45.4 REACH ENERGY BHD 0.045 12.50 80.7 0.00 95.8 MOBILIA HOLDINGS BHD 0.195 11.43 12205.9 -9.30 136.5 WHITE HORSE BHD 0.625 9.65 3.0 2.46 137.8 MELEWAR INDUSTRIAL GROUP BHD 0.290 9.43 14416.8 7.41 104.2 LYSAGHT GALVANIZED STEEL BHD 2.270 9.13 32.1 19.47 94.4 GRAND CENTRAL ENTERPRISES BHD 0.360 9.09 7.4 2.86 70.9 KIM HIN INDUSTRY BHD 0.545 9.00 23.0 -6.84 76.4 ORNAPAPER BHD 0.995 8.74 708.0 -18.44 73.8 LKL INTERNATIONAL BHD 0.200 8.11 19077.2 -30.75 77.6 Data as compiled on Nov 15, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) METRONIC GLOBAL BHD 0.015 -25.00 1,954.0 -25.00 23.0 HONG SENG CONSOLIDATED BHD 0.040 -20.00 736,336.9 -81.82 204.3 KANGER INTERNATIONAL BHD 0.065 -18.75 61,842.0 62.50 42.2 PDZ HOLDINGS BHD 0.050 -16.67 36,156.3 25.00 29.1 ALAM MARITIM RESOURCES BHD 0.030 -14.29 200.0 20.00 46.0 MERIDIAN BHD 0.105 -12.50 583.6 -12.50 23.7 MCLEAN TECHNOLOGIES BHD 0.170 -10.53 2,545.1 0.00 33.5 MINETECH RESOURCES BHD 0.045 -10.00 2,215.4 -18.18 68.8 KHEE SAN BHD 0.135 -10.00 10.6 -3.57 18.5 SAPURA ENERGY BHD 0.045 -10.00 6,632.5 28.57 719.1 CSH ALLIANCE BHD 0.045 -10.00 1,040.8 12.50 62.2 APPASIA BHD 0.090 -10.00 1,494.6 -14.29 97.9 WAJA KONSORTIUM BHD 0.050 -9.09 854.8 -44.44 55.8 MALAYAN UNITED INDUSTRIES BHD 0.055 -8.33 2,869.3 -26.67 177.4 HWA TAI INDUSTRIES BHD 0.575 -8.00 1,968.9 1.77 43.0 BINA PURI HOLDINGS BHD 0.060 -7.69 6,441.5 50.00 202.2 VINVEST CAPITAL HOLDINGS BHD 0.065 -7.14 2,103.7 -65.79 63.0 PLYTEC HOLDING BHD 0.325 -7.14 70,795.6 0.00 NULL MENTIGA CORP BHD 0.680 -6.85 12.4 20.35 47.6 SENTORIA GROUP BHD 0.070 -6.67 2,556.0 -22.22 42.9 Data as compiled on Nov 15, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) RAPID SYNERGY BHD 24.780 -0.300 516.3 55.26 2,648.9 HEINEKEN MALAYSIA BHD 23.420 -0.200 267.1 -7.06 7,075.1 FRASER & NEAVE HOLDINGS BHD 27.100 -0.120 55.0 25.58 9,939.7 HEXTARTECHNOLOGIES SOLUTIONS 23.260 -0.120 12.5 36.34 2,992.4 KOTRA INDUSTRIES BHD 5.080 -0.110 7.7 -23.03 753.4 HONG LEONG FINANCIAL GROUP 17.080 -0.100 1,056.8 -8.17 19,560.8 YNH PROPERTY BHD 5.020 -0.080 752.2 18.68 2,653.0 SAM ENGINEERING & EQUIPMENT 4.320 -0.070 14.2 -12.37 2,339.7 PANASONIC MANUFACTURING MSIA 17.700 -0.060 8.2 -22.71 1,075.2 PIE INDUSTRIAL BHD 3.130 -0.050 559.0 21.12 1,202.1 BONIA CORP BHD 1.760 -0.050 500.0 -20.71 352.7 MENTIGA CORP BHD 0.680 -0.050 12.4 20.35 47.6 KLCCP STAPLED GROUP 6.910 -0.050 5.4 2.98 12,474.9 PENTAMASTER CORP BHD 4.770 -0.050 1,193.0 7.67 3,393.0 HWA TAI INDUSTRIES BHD 0.575 -0.050 1,968.9 1.77 43.0 RALCO CORP BHD 0.865 -0.045 5.1 0.58 43.9 IQ GROUP HOLDINGS BHD 0.855 -0.045 23.9 -12.76 75.2 HUME CEMENT INDUSTRIES BHD 1.830 -0.040 423.8 94.68 935.6 UCHI TECHNOLOGIES BHD 3.500 -0.030 182.3 8.68 1,598.1 RIVERVIEW RUBBER ESTATES BHD 3.120 -0.030 12.0 -9.45 202.3 Data as compiled on Nov 15, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 123.700 1.100 263.8 -11.64 29,007.7 BLD PLANTATION BHD 10.320 0.430 35.0 0.58 964.9 AEON CREDIT SERVICE M BHD 12.100 0.300 586.5 -3.82 3,089.2 MALAYSIAN PACIFIC INDUSTRIES BHD 27.180 0.280 42.8 -5.49 5,406.0 PPB GROUP BHD 14.840 0.260 1,644.1 -14.91 21,111.4 UNITED PLANTATIONS BHD 16.820 0.240 404.5 12.05 6,976.7 PETRONAS GAS BHD 17.200 0.220 771.0 0.47 34,034.2 KUALA LUMPUR KEPONG BHD 22.020 0.220 1,094.0 -1.52 23,747.2 MALAYSIA AIRPORTS HOLDINGS BHD 7.550 0.190 3,728.4 15.09 12,597.6 IBRACO BHD 1.110 0.190 19,081.2 86.55 606.1 LYSAGHT GALVANIZED STEEL BHD 2.270 0.190 32.1 19.47 94.4 GENTING PLANTATIONS BHD 5.730 0.150 994.7 -8.21 5,140.7 PETRONAS DAGANGAN BHD 22.900 0.140 488.9 0.23 22,750.1 GREATECH TECHNOLOGY BHD 4.800 0.130 1,339.2 -0.83 6,020.2 MYCRON STEEL BHD 0.440 0.110 45,278.7 7.32 143.9 MISC BHD 7.320 0.100 2343 -2.4 32674.6 AMMB HOLDINGS BHD 3.930 0.100 4,963.0 -5.07 13,008.6 MR DIY GROUP M BHD 1.620 0.100 22,231.6 -19 15294.5 GENTING BHD 4.380 0.100 10,643.4 -2.23 16,865.5 QL RESOURCES BHD 5.700 0.100 1023.7 3.45 13871.8 Data as compiled on Nov 15, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 34,827.70 489.83 1.43 S&P 500 * 4,495.70 84.15 1.91 NASDAQ 100 * 15,812.47 329.68 2.13 FTSE 100 * 7,440.47 56.54 0.76 AUSTRALIA 7,105.90 99.19 1.42 CHINA 3,072.84 16.77 0.55 HONG KONG 18,079.00 682.14 3.92 INDIA 65,675.93 742.06 1.14 INDONESIA 6,958.21 96.15 1.40 JAPAN 33,519.70 823.77 2.52 KOREA 2,486.67 53.42 2.20 PHILIPPINES 6,171.13 60.25 0.99 SINGAPORE 3,132.12 27.46 0.88 TAIWAN 17,128.78 213.07 1.26 THAILAND 1,415.17 29.13 2.10 VIETNAM 1,122.50 12.77 1.15 Data as compiled on Nov 15, 2023 Source: Bloomberg CPO RM 3,979.00 75.00 OIL US$ 82.08 -0.39 RM/USD 4.6725 RM/SGD 3.4639 RM/AUD 3.0402 RM/GBP 5.8231 RM/EUR 5.0706 * Based on previous day’s closing