CEOMorningBrief THURSDAY, MARCH 14, 2024 ISSUE 733/2024 theedgemalaysia.com US STOCKS MAY NOT BE IN A BUBBLE, BUT A PULLBACK COULD BE NEAR p13 HOME: No personal data breach following Maxis hacking scare — Gobind p2 Rakuten Trade bullish on banking, construction, telco, semiconductor sectors p4 Bermaz Auto’s 3Q net profit falls 19% on lower car sales, pays 4.25 sen dividend p5 Eversendai surges to four-year high after bagging RM5.4 bil projects p6 WORLD: Toyota agrees to biggest wage hike in 25 years in sign of Japan Inc’s hefty pay bump p16 Tourism minister urges MOF to reveal high-value goods tax details soon Report on Page 3.
thursday march 14, 2024 2 The E dge C E O m o rning 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] No personal data breach following Maxis hacking scare — Gobind Tighten chartered flight monitoring, Kapar plane crash preliminary report suggests home by Choy Nyen Yiau theedgemalaysia.com by Jason Ng & Izzul Ikram theedgemalaysia.com KUALA LUMPUR (March 13): No personal data was leaked despite telecommunications service provider Maxis Bhd experiencing a hacking scare earlier last month, Minister of Digital Gobind Singh Deo said on Wednesday. Only the company’s so-called Maxis Interactive Retail Assistant queue management system portal at one of its branches was compromised by hacking group R00TK1T ISC Cyber Team, Gobind said in response to Chong Zhe Min (PH-Kampar) during the oral question and answer session in Dewan Rakyat. “This system operates independently and is not connected to any critical Maxis system,” Gobind said. “The Personal Data Protection Department (JPDP) KUALA LUMPUR (March 13): Malaysia’s aviation authorities should tighten monitoring of chartered flights following the crash of a light aircraft in Kapar, Selangor which killed its pilot and a sole passenger last month, an initial report released by an independent investigative body under Ministry of Transport (MOT) on Wednesday showed. The Blackshape BK 160TR had continued to be flown during the time when the plane was supposed to be grounded, according to the Air Accident Investigation Bureau’s (AAIB) report. The Civil Aviation Authority of Malaysia (CAAM), the agency in charge of safety and technical matters, however, was not aware of any grounding instruction, it noted. “CAAM is recommended to implement appropriate measures that provide closer scrutiny on non-scheduled flight operations in Malaysia by foreign-registered aircraft and foreign-licensed aircrew to ensure safe operations,” the report said. Under the guidelines of the International Civil Aviation Organization, the United Nations’ aviation safety arm also known as ICAO, investigators are expected to issue a preliminary report within 30 days of a crash. The reports do not assign blame or liability but contain facts and findings surrounding an accident. ICAO rules also call for countries to produce a final report available publicly, preferably within a year of an incident. On Oct 25, 2023, the manufacturer Blackshape SpA. told the European Union Aviation Safety Agency about an “occurrence” to the fuel selector indication system of the aircraft registered as I-POOC. Blackshape decided to ground the aircraft while waiting to resolve the issue. Whether the instructions to ground the aircraft “were properly communicated to and clearly understood by all the relevant parties” will be determined with further evidence. “The circumstances on why the aircraft had continued to be operated despite the grounding orders, and the consequent impact on the aircraft airworthiness status, will be determined as further evidence are made available,” it said. Further, there is evidence indicating that “irregular” maintenance activities had been performed on the ill-fated aircraft, AIIB said in the report. These include installation of uncertified parts, as well as installation and servicing by unauthorised organisation or persons who were not properly qualified to carry out the maintenance activities. Investigators also found evidence that the I-POOC had exceeded the maximum take-off weight of the aircraft, which is 850kg, during the accident on Feb 13, 2024. “Other safety recommendations shall be included in the final report,” it added. has conducted a follow-up investigation based on the notification from Maxis and determined that no personal data was compromised based on the data samples provided.” Nevertheless, the ministry recognises the importance of cyber security and will continuously monitor data security and the safety of the national digital infrastructure through several agencies including CyberSecurity Malaysia and JPDP, Gobind stressed. He also reiterated that the ministry will continue to work with the National Cyber Security Agency and other related agencies abroad to track and take action against threat actors. “We are always committed to continuing to implement the necessary actions, together with all stakeholders, in strengthening cybersecurity controls to ensure that the level of national cybersecurity threats is under control,” Gobind added.
thursday march 14, 2024 3 The E dge C E O m o rning brief home KUALA LUMPUR (March 13): The government has paid a cumulative sum of RM7.02 billion for the beleaguered littoral combat ships (LCS) project to date, Defence Minister Datuk Seri Mohamed Khaled Nordin revealed in Parliament on Wednesday. The figure constitutes 62.49% of the total project cost of RM11.22 billion, paid in accordance with the stipulated contract, Khaled said in a written parliamentary response to Datuk Seri Ikmal Hisham Abdul Aziz (PN-Tanah Merah). Ikmal inquired about the latest costs incurred by the government for the LCS project and whether they included the debts of Boustead Naval Shipyard Sdn Bhd (BNS), now known as Lumut Naval Shipyard (Lunas). In response, Khaled clarified that the debt of BNS falls outside the jurisdiction of the Defence Ministry and is subject to the management of the new company that will take over BNS. Khaled also said the construction of the LCS resumed after the signing of the sixth additional contract on May 26, 2023. As of January 2024, progress on the project — including design, construction, equipment, and testing — stood at 67.57%. The LCS project came under the spotlight in recent years because of delays and cost overruns, with the initial budget of RM6 billion escalating to RM9.18 billion and eventually reaching a whopping RM11.22 billion. The targeted delivery of six vessels was also reduced to five, with the revised delivery schedules set for August 2026, April 2027, December 2027, August 2028, and April 2029. The prolonged delays led the government to intervene and acquire BNS for RM1 via the Ministry of Finance’s special-purpose vehicle, Ocean Sunshine Bhd. In a separate written parliamentary response to Ikmal, Khaled announced that the Defence Ministry is procuring Littoral Mission Ship Batch 2 (LMSB2) for the Royal Malaysian Navy through direct negotiations with a Turkish government-related company, Savunma Teknolojieri Muhendislik (STM), using a government-to-government approach. “Approval from the Finance Ministry was obtained on Jan 18, 2024. Subsequently, the Defence Ministry issued a letter of intent to STM on Feb 5. STM responded on Feb 8, expressing readiness to negotiate with the Defence Ministry,” Khaled said. He added that the ministry is currently in the stage of detailed negotiations regarding the specifications offered and will further carry out price negotiations before finalising the procurement. Govt has paid RM7.02 bil for LCS project to date, says defence minister KUALA LUMPUR (March 13): Tourism, Arts, and Culture Minister Datuk Seri Tiong King Sing has urged the Ministry of Finance (MOF) to reveal the details on the implementation of high-value goods tax (HVGT) soon. Speaking at the Parliament, Tiong pointed out that he hopes for clarity on the new tax scheme, particularly regarding the Tourist Refund Scheme, noting it should be implemented in a transparent and efficient manner. The HVGT, formerly known as luxury goods tax, is slated to be implemented on May 1 this year — less than two months from now. The tax rate is in the range of 5% to 10%. The new tax was first announced in the revised National Budget 2023 that was tabled in February last year. It is understood that the government already has numerous dialogues with retail industry players; however, no final decisions have been reached. Currently, there is scant detail on the tax scheme. The government has yet to come out with the definition of “high value goods” and the price range of the items that are subjected to the tax. This has left retailers in the dark for a year. On Feb 29, the MOF had in a written parliamentary reply on the HVGT said the bill relating to the proposed tax is scheduled to be tabled in the current Parliament sitting. And the MOF reaffirmed that if the bill is approved, the legislation is proposed to Tourism minister urges MOF to reveal high-value goods tax details soon come into force on May 1. The government expects to earn an additional RM700 million a year from the proposed HVGT. Roughly two weeks ago, the government sent a shock wave to the business community as it widened the scope of the 8% service tax and brought forward the effective date. The announcements were made within 72 hours prior to the effective date. Tax consultants were also caught offguard by the announcement. This has drawn criticism from the business community, as the short notice of a wider tax scope has caused confusion and disruption to business operations. by Choy Nyen Yiau theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com Tourism, Arts, and Culture Minister Datuk Seri Tiong King Sing pointed out that he hopes for clarity on the high-value goods tax. bernama
thursday march 14, 2024 4 The E dge C E O m o rning brief home KUALA LUMPUR (March 13): As the second quarter approaches, Rakuten Trade is bullish on the banking, construction, telecommunications (telco) and semiconductor industries for the rest of 2024, as it sees the benchmark index FBM KLCI recovering to 1,660 points by the end of the year. Its vice president of research Thong Pak Leng said the banking sector continues to offer opportunities for investors, supported by robust earnings resilience. “Loans growth remained decent circa 5-6% while net interest margin (NIM) will remain stable for the year amid a more stable interest rate regime,” he told reporters during a virtual media briefing on Rakuten Trade’s 2Q2024 market outlook. Within the banking sector, Rakuten Trade picked RHB Bank Bhd, Malayan Banking Bhd and CIMB Group Holdings Bhd for their solid dividend yields while Hong Leong Bank Bhd and Public Bank are attractive for their potential upside. Meanwhile, Thong added that the construction sector’s outlook remains positive, fuelled by the imminent initiation of major infrastructure ventures like MRT3, Penang MRT and flood mitigation projects. “Furthermore, private-sector building activities are sustained by substantial investments in new semiconductor foundries and data centers. Construction companies guided for higher new job wins this year on the back of impending roll-out of mega infrastructure projects,” he said. Rakuten Trade’s top picks for the sector are Gamuda Bhd, IJM Corp Bhd, Kerjaya Prospek Group Bhd, Sunway Construction Group Bhd and Muhibbah Engineering (M) Bhd. As for the semiconductor sector, Thong pointed to the ongoing artificial intelliRakuten Trade bullish on banking, construction, telco, semiconductor sectors gence (AI) “frenzy” coupled with stabilising demand for smartphones and resilient growth in automobile, which are expected to reflect in higher demand for semiconductor parts, thus higher production by the semiconductor players. This, he said, should result in higher earnings across the semiconductor industry. “We like PIE Industrial Bhd and Nationgate Holdings Bhd due to their involvement in AI and telco segments which are poised to grow in 2024. We also like ITMAX System Bhd for its solid earnings visibility underpinned by robust order books,” he added. Lastly, Thong said that Rakuten Trade is overweight on the telco industry for its subscriber base expansion. He said demand for local mobile and broadband will be supported by wider coverage towards the completion of phase one of the National Digital Network Plan Initiative (Jendela). Jendela is a government-funded programme to accelerate 4G network connectivity in the country. Furthermore, Thong opined that the ongoing implementation of 5G will push average revenue per user (ARPU) due to quicker downloading and larger size of content. Top picks within this sector for Rakuten Trade are CelcomDigi Bhd, Telekom Malaysia Bhd and OCK Group Bhd for its supporting role in the 5G and regional expansion. by Emir Zainul theedgemalaysia.com KUALA LUMPUR (March 13): The ringgit is expected to strengthen to 4.50- 4.55 range by year-end on the back of interest rate cuts in the US and Europe as well as improving domestic investment climate. While the US Federal Reserve (the Fed) has yet to begin its interest rate cuts so far this year, Rakuten Trade head of research Kenny Yee is convinced that the Fed will have to cut its benchmark rates sometime this year. “I don’t think the US can hold another nine months with this high interest rate environment,” Yee told reporters at a virtual briefing on market outlook for the second quarter. “The regional banks are already suffocating.” The Fed has kept its benchmark interest rate at 5.5% since July 26, 2023. The next Fed decision on the rate is expected to be announced on March 20. ‘Ringgit to recover to 4.50-4.55 vs US dollar by end-2024’ by Emir Zainul theedgemarkets.com Yee is predicting four rate cuts by the Fed this year of around 50 to 100 basis points each, with the benchmark interest rate targeted to reach around 2%. Apart from easing global interest rates, Yee highlighted that the incoming foreign direct investments into Malaysia, especially from neighbouring countries such as Singapore, will also boost both the ringgit and regional currencies. Overseas investors are also accumulating Malaysian stocks, Yee said, noting marked improvement with foreign shareholding level at 19.34% by February versus 11.35% at the end of 2021 during Covid-19 pandemic while Malaysia underwent a political transition. “Therefore, we are confident that foreign shareholdings will surpass the 20% threshold and test the 25% level since Malaysia has been shunned and under-invested by foreign investors for so long,” he added. Rakuten Trade head of research Kenny Yee says the ringgit is expected to strengthen to 4.50-4.55 range by year-end on anticipated interest rate cuts in the US and Europe. The Edge file photo Bloomberg
thursday march 14, 2024 5 The E dge C E O m o rning brief home MAHB shares chart five-year high as analysts see upside following airport tax revision Bermaz Auto’s 3Q net profit falls 19% on lower car sales, pays 4.25 sen dividend by Justin Lim theedgemalaysia.com by Hee En Qi theedgemalaysia.com KUALA LUMPUR (March 13): Bermaz Auto Bhd, which mainly assembles Mazda-branded vehicles, said on Wednesday its net profit fell 19.23% in the third quarter from a year earlier dragged by lower sales. Net profit for the three months ended Jan 31, 2024 (3QFY2024) fell to RM70.5 million or 6.04 sen per share compared with RM87.29 million or 7.5 sen per share in the corresponding quarter a year ago, Bermaz Auto said in an exchange filing. Revenue for the quarter dropped 8.14% year-on-year to RM896.51 million, from RM975.97 million. The company blamed lower sales volume and a change in sales mix from domestic operations of its Mazda marque. Nevertheless, Bermaz expects its performance to remain “positive” for the financial year ending April 30, 2024 (FY2024). For its first nine month (9MFY2024), net profit rose 28.41% to RM260.82 million from RM203.12 million while revenue climbed 20.88% to RM3 billion from RM2.48 billion, thanks to higher sales volume from the domestic operations. Broadly, Bermaz said the automotive sector is expected to continue to register slower growth, flagging inflationary pressures, uncertainties in geopolitical conflicts and weaker global growth which may hurt Malaysia’s economy. New models or facelift launches are “still very much dependent on the market sentiments and economic conditions then,” Bermaz added. Bermaz shares settled unchanged at RM2.48, giving the group a market capitalisation of RM2.9 billion. Year to date, the counter has appreciated by 16%. KUALA LUMPUR (March 13): Malaysia Airports Holdings Bhd (MAHB) climbed to its highest in five years on Wednesday as the majority of analysts urged investors to continue buying the stock following the revision in airport tax. MAHB rose to as high as RM8.69, last breached on Sept 19, 2018. The counter closed at RM8.65 after 4.66 million shares changed hands on Bursa Malaysia. In contrast, the country’s benchmark index FBM KLCI was down 16.43 points or 1.1% to close at 1,538.13 points. Analysts said the unexpected introduction of the transfer passenger service charge (PSC) by Malaysian Aviation Commission, or Mavcom, could boost the earnings of the company given the dire need for upgrades and expansion of its terminals. MAHB will likely collect an overall higher revenue through the new transfer PSC and higher departure PSC, as well as incremental aircraft landing and parking charges, said Hong Leong Investment Bank which retained its ‘buy’ call for the stock. A majority of 12 out of 18 analysts covering MAHB have a ‘buy’ rating while the other six have a ‘hold’ call. The median 12-month target price is RM9.15, according to Bloomberg. On Tuesday, Mavcom expanded the PSC to cover transfer flights while revising the rates for departures which will be effective from June 1. The revised charges will be in effect till Dec 31, 2026, and are to support the sector’s recovery and adaptability post-Covid-19, Mavcom said. Analyst: Revised PSC may not be enough for MAHB’s cashflow “We are positive on this latest development which is expected to be earnings positive,” said Kenanga Investment Bank. The research house raised its net profit forecast for MAHB by 12% each for 2024 and 2025 to account for the latest tariffs. While Kenanga raised its target price by 13% to RM9, the house maintained the stock on ‘market perform’ which is equivalent to ‘hold’, cautioning that the latest tariff rate may not be sufficient for MAHB to raise sufficient cash given the urgency for expansion and maintenance. MAHB runs the country’s main gateway Kuala Lumpur International Airport. In addition, the company also operates the adjacent klia2, base of the budget airline AirAsia, and over three dozen smaller airports in the country. The company’s airports however, are increasingly crowded amid a post-pandemic surge in air travel. This year, Malaysia is targeting to welcome some 27.3 million tourists, an ambitious 35% increase from 2022’s 20.1 million arrivals. RHB Investment Bank meanwhile flagged that the introduction of transfer PSC and higher parking and landing charges were broadly offset by the reduction in PSC of other categories — particularly International PSC in other airports. The house lowered its earnings forecast by 1% to 8% for 2024, 2025 and 2026 but nevertheless told investors to buy the stock with a higher target price of RM9.67, citing loss capitalizing mechanism that would allow MAHB to recover 90% of any regulatory losses. That would allow MAHB to pursue necessary investments, service enhancements and airport development efforts, RHB added. All international departures from Terminal 1 of the Kuala Lumpur International Airport (KLIA) will incur a PSC of RM73, and RM50 for klia2 or other Malaysian airports for all destinations. Domestic passengers will also be charged RM7 for transferring through any Malaysian airport and RM10 for transferring through Senai International Airport. Meanwhile, international passengers will be charged RM42 for transferring through KLIA, and RM29 through klia2 or other Malaysian airports. Bermaz declared a single-tier third interim dividend of 4.25 sen per share, payable on May 3, 2024. This brings the yearto-date dividend to 14.25 sen per share, up from 11 sen per share paid a year before. Malaysia Airports Holdings Bhd 0 20 40 60 Feb 22, 2019 March 13, 2024 3 5 7 9 Vol (mil) RM *RM8.65 RM7.85 *As at market close on March 13, 2024. Source: Bloomberg
THURSDAY MARCH 14, 2024 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 13): CTOS Digital Bhd’s share price rebounded on Wednesday after analysts said the recent sell-off was overdone, following management’s reassurance that the continuity of its operations was not at risk. The uncertainty of operations came on the heels of the High Court’s recent ruling against CTOS’ wholly owned unit CTOS Data Systems Sdn Bhd (CDS) in a negligence and breach of fiduciary duty suit. The court ruled that CDS had overstepped its statutory functions under the Credit Reporting Agencies Act 2010 in formulating a credit score as the company was merely a database of credit information for its subscribers. CTOS rose as much as 5.6% to an intraday high of RM1.32 on Wednesday, after plunging over 13% the previous day. The counter then eased to close at RM1.28 — still up three sen or 2.4% — which translates into a market capitalisation of RM2.96 billion. Some 71.02 million shares changed hands. Following a recent briefing with CTOS’ management, RHB Research opined that the stock’s share price sell-down was overdone. The research house said it was an opportunity to invest in a top credit reporting agency with a recession-proof business and growth avenues in the digitalisation age. Maybank Investment Bank Bhd assessed that regulatory risks to CTOS’ business are currently contained, leading the research firm to upgrade its recommendation from “hold” to “buy”. “….It is our opinion that the answers provided by management in relation to its business continuity were satisfactory. We take comfort in management’s comments post-discussion with their legal counsel that despite the legality of CTOS’ business continuity being called into question as part of the judge’s comments, it may not be used as precedent in future litigation,” said Maybank. Seven analysts have assigned a “buy” recommendation on CTOS, three suggested “hold”, and one rated it a “sell”, with the 12-month median target price for the stock at RM1.69, Bloomberg data showed. The High Court last week decided in favour of a businesswoman, Suriati Mohd Yusuf, who sued CTOS’ wholly owned unit CTOS Data Systems Sdn Bhd (CDS) for negligence and breach of fiduciary duty. Judge Datuk Akhtar Tahir, in his judgement, said that based on evidence that CDS was alerted of the inaccurate information but chose to ignore it, the credit reporting agency was deemed to have breached its duty of care owed to Suriati. He ordered CDS to pay her RM200,000 together with RM50,000 in costs. Kenanga the only house with an ‘underperform’ call Kenanga Investment Bank noted that the court’s ruling still poses a challenge to CTOS’ business model until it is overturned by a “higher court”, which could take up to three to six months. “While there could be merit to the group’s legitimacy in offering key credit scoring solutions, we believe the elephant in the room still stands, ie the court’s interpretation that poses a challenge to CTOS’s business model,” said Kenanga, which maintained its “underperform” call. If CTOS were to discontinue its credit scoring business, Hong Leong Investment Bank and RHB estimate a significant negative impact on the group’s earnings for the financial year ending Dec 31, 2024 (FY2024) by 30% and 26%, respectively. For FY2023, CTOS’ net profit surged 65.05% to RM118.37 million from RM71.72 million as revenue climbed 34.22% to RM261.44 million from RM194.78 million in FY2022. Read also: KWAP emerges as CTOS substantial shareholder amid share price volatility following recent legal dispute CTOS’ recent sell-off overdone, but court ruling still poses challenge to group’s business model — analysts KUALA LUMPUR (March 13): Shares of construction group Eversendai Corp Bhd jumped to a four-year high after it secured four new projects worth RM5.4 billion in Saudi Arabia, the United Arab Emirates (UAE) and India. The stock surged as much as 92.7% to 39.5 sen on Wednesday, before paring some gain to close at 39 sen, up 18.5 sen or 90.2%. The counter has more than doubled since the start of 2024. The value of the new wins represents nearly 18 times higher than Eversendai’s market value of RM304.6 million. With these new projects, the company’s current outstanding order book rises to a record high of RM6.6 billion, according to its filing to Bursa Malaysia on Wednesday. The project in Saudi Arabia, in collaboration with Albawani Company Ltd, is for the structural steel signature building at the Trojena Ski Village, a year-round mountain resort destination, Eversendai said. “The scope of work consists of engineering, connection design, material supply, fabrication and installation of structural steel, precast and concreting, metal decking and fireproofing for the iconic mountain resort in Trojena’s Ski Village,” it said. The project in the UAE involves structural steel works for the Wynn Al Marjan Island Integrated Resort Development in Ras Al Khaimah — which will feature a 1,500-room hotel with shopping, meeting and convention facilities, restaurants and lounges, entertainment and other amenities. Meanwhile, its subsidiary in India has secured two structural steel projects for the Rupa Eversendai surges to four-year high after bagging RM5.4 bil projects IT building and the Rupa Crystal IT building. Eversendai executive chairman and group managing director Tan Sri AK Nathan said that these newly-won contracts underscore the company’s strength and capability in securing and successfully delivering projects. “Despite going through a very challenging period in the last few years, exasperated by Covid-19 and its related impacts, Eversendai is optimistic that the group will be able to strongly rebound as a result of the record high order book, which will translate in optimum utilisation of all the group’s fabrication facilities,” he said. “These structural steel projects are highly complex befitting Eversendai’s technical capabilities and colourful landmark track record in executing projects in 18 countries while adhering to safety, quality and timely completion,” said AK Nathan in a statement. Eversendai has been involved in the construction of some of the world’s most prestigious and iconic landmarks, including the Burj Khalifa in the Emirates, Petronas Twin Tower 2 and Merdeka 118 Tower in Malaysia, as well as Neom Sindalah Island in Saudi Arabia. BY ANIS HAZIM theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com
Thursday march 14, 2024 7 The E dge C E O m o rning brief trust who do you trust to tell the truth ? P r o v i d i n g y o u w i t h i n s i g h t s t o make better decisions P E N I NS U L AR MAL AYSIA RM7.00 SABAH & SAR AWAK RM8.00 ISSN 1675-1205 PP 8409/03/2013(031809) MCI (P) 051/11/2023 M A L AYS I A BUSINESS & INVESTMENT WEEKLY www.theedgemalaysia.com 1506 THE WEEK OF JANUARY 15 — JANUARY 21, 2024 THE STATE OF THE NATION 12 Challenges remain for China’s economy after disappointments in 2023 CORPORATE 20 JB needs LRT system to disperse traffi c coming in from Singapore via the RTS, says project proponent TONG’S PORTFOLIO 18 Malaysia’s 5G is now one of the world’s best, thanks to the unconventional SWN 1 Contrary to what many had anticipated, the new tax has a wider scope and broad defi nitions. Many are still grappling with its implications while much clarifi cation is needed on its application. COVER STORY I 61 to 63 COVER STORY 2 64 to 69 afi zi: Padu long overdue, not an verzealous data collection exercise 16 Edaran in the cross hairs B Y JOSE BARROCK 21 Investor Yu suffers hefty paper loss after y rapid fall of p p counters p B Y I NTAN FAR H A N A Z AINUL 16 Perplexing twists to p takeover offer for KUB B Y LEE WENG KHUEN CORPORATE CORPORATE CORPORATE Capital gains tax: at many had anticipated More than expected P E N I NS U L AR MAL AYSIA RM7.00 SABAH & SAR AWAK RM8.00 ISSN 1675-1205 PP 8409/03/2013(031809) MCI (P) 051/11/2023 M A L AYS I A BUSINESS & INVESTMENT WEEKLY www.theedgemalaysia.com 1512 THE WEEK OF FEBRUARY 26 — MARCH 3, 2024 ZAHID IZZANI/THE EDGE YNH Property Bhd’s RM1.1 billion investment in numerous property development joint ventures over the years has drawn much public scrutiny. Of particular interest is one involving a fi ve-acre parcel in Sri Hartamas. YNH justifi es the JVs and clarifi es why some of the land is under a Registrar’s caveat. COVER STORY 58 to 60 CORPORATE 10 Consolidation of TPG, Hong Leong Group and TE Asia Healthcare’s hospitals in the works, say sources BY JENNY NG AND VASA N T H A G A N E SA N NEWSBREAK CORPORATE 12 Five shortlisted for possible sale of Cement Industries BY I N TA N FAR H A N A Z AI N U L AND JOSE BARROCK NEWSBREAK CORPORATE 10 Khazanah, EPF and GIP forming consortium to run MAHB BY JOSE BARROCK NEWSBREAK CORPORATE 12 DNeX, HeiTech Padu, Theta Edge shortlisted for NIISe project BY JOSE BARROCK NEWSBREAK Th e curious case of YNH and its JVs THE STATE OF THE NATION 14 Watching the ringgit factor in stronger-thanexpected exports rebound TECH 28 Semiconductor veteran turned VC raising US$200 mil to back IPO-able chip fi rms TONG’S PORTFOLIO 18 Is residential property in Malaysia a good investment? Disclaimer: A copy of the Master Prospectus (MP) dated 19 December 2022 has been registered with the Securities Commission Malaysia (SC), who takes no responsibility for its contents. The registration of the MP and lodgement of the Product Highlight Sheet (PHS) does not amount to nor indicate that the SC has recommended or endorsed the Fund. The MP is a replacement MP that supersedes and replaces the MP dated 3 June 2021. This advertisement has not been reviewed by the SC. Investors are advised to read and understand the contents of the MP and PHS before making any investment decision. Amongst others, investors should also consider the fees and charges involved. The prices of units and distributions payable, if any, may fall and rise. Past performances of the Fund are not indicative of future performance. Prices can go down as well as up and you may not get back the amount you originally invested. Investors are advised to consider the different types of risks that may affect the unit trust fund. For more information concerning certain risk factors, please refer to the MP and PHS. These are available at offices of Areca Capital Sdn Bhd and its authorized distributors. Investors have the right to request for a copy of the MP and PHS and they can download the softcopy at www.arecacapital.com. Any issue of units to which the MP relates will only be made on receipt of a form of application referred to and accompanying a copy of the MP. This Fund may not be suitable for all investors and if in doubt, investors should consult a professional adviser and completed a suitability assessment before making any investment. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. For more information, see lipperfundawards.com. Our Consistency Can Be Your Advantage Stay invested over the long term. A consistent strategy has allowed us to consistently outperform the benchmark over the past decade. *Fund performance is calculated based on NAV to NAV and assumes reinvestment of distributions. The Fund was launched on 23 April 2007. #Average Returns of the funds in Peer Group under Lipper Classification “Equity Malaysia” Non-Islamic. There are total of 67 funds under this category. Source: Lipper as at 31 December 2023 Areca equityTRUST Fund *Fund Performance #Average Returns of Peer Group Areca equityTRUST Fund Best Fund Over 5 Years Best Fund Over 10 Years Equity Malaysia Refinitiv Lipper Fund Awards Malaysia 2023 Winner 80%26% 171%35% 477% 127% Explore how to diversify your portfolio with our Private Wealth Manager today. ARECA CAPITAL SDN BHD 200601021087 (740840-D) www.arecacapital.com 2 Th e yet-to-be-developed land in Sri Hartamas that is subject to a disposal to the Sunway Group P E N I NS U L AR MAL AYSIA RM7.00 SABAH & SAR AWAK RM8.00 ISSN 1675-1205 PP 8409/03/2013(031809) MCI (P) 051/11/2023 MA LAYSIA BUSINESS & INVESTMENT WEEKLY www.theedgemalaysia.com 1501 THE WEEK OF DECEMBER 4 — DECEMBER 10, 2023 CORPORATE 18 Good chance of EPF’s 2023 dividend beating last year’s 5.35% CORPORATE 20 Mavcom was shocked to see closure of MYAirline TONG’S PORTFOLIO 16 Finally, we are investing again — added six stocks with high, resilient dividend yields 123RF.COM CORPORATE 12 Highway concessionaires want to take charge of MLFF system implementation BY M SHAN M UG AM AND I N TA N FAR H A N A Z AINUL CORPORATE 12 Suria Cap to lease out Sapangar Bay Container Port to DP World BY JOSE BARROCK NEWSBREAK NEWSBREAK For distant goals and close friends. THE NEW CAYENNE. FURTHER TOGETHER. The sports car with room for family, friends and countless shared adventures. With space for up to five people, experience Porsche performance every day – both on- and off-road. Find out more. 12 TIME TO ACT, REAL ESTATE MATTERS 148-PAGE SPECIAL PULLOUT INSIDE FREE! with this issue of Th e Edge PUTRAJAYA Th e unity government spent its fi rst year fending off attempts to topple it, but its grip on Putrajaya appears secure now. As it enters its second year in power, will it walk the talk on the major reforms to restructure the economy so that Malaysia is not stuck in the middle-income trap, or will it be business as usual? COVER STORY 76 to 80 the edge | the best selling w e e k ly newsP a Pe r.
THURSDAY MARCH 14, 2024 8 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF Tropicana calls off collaboration agreement with Pantai Kok Resort to develop land at Langkawi KUALA LUMPUR (March 13): Tropicana Corp Bhd and Pantai Kok Resort Development Bhd have mutually agreed to terminate a 44.61-acre land development at Padang Mat Sirat, Langkawi. Tropicana was the developer to undertake the joint development agreement (JDA) on the Pantai Kok land, according to its filing to Bursa Malaysia on Wednesday. “In consideration of the current market conditions and given the development on the Pantai Kok land has yet to commence, the parties have mutually agreed to terminate the Pantai Kok JDA,” it said. Tropicana said the termination enables the group to save on such development costs associated with the Pantai Kok land, which will allow the group to allocate financial resources more efficiently towards the other existing businesses.To recap, Tropicana inked the JDA with Pantai Kok Resort in April 2019 to develop 44.61 acres of land at Padang Mat Sirat, Langkawi across 15 years, with an estimated gross development value (GDV) of RM3.02 billion. — by Anis Hazim Lee Swee Kiat announces one-for-two bonus issue KUALA LUMPUR (March 13): Mattress manufacturer Lee Swee Kiat Group Bhd (LSK) said on Wednesday it is proposing a bonus issue of up to 83.91 million new shares. Shareholders will get one bonus share for two existing shares held, LSK said in an exchange filing. LSK has an issued share capital of RM16.78 million comprising 161.82 million shares, including 6.46 million treasury shares as of March 8. The entitlement date for the corporate exercise will be determined at a later date upon receipt of relevant approvals, LSK said. The planned bonus issue comes at a time of record profits at the company that makes natural latex bedding and spring mattresses. The company reported that its net profit rose 26% to RM13.65 million for the 12 months ended Dec 31, 2023. — by Luqman Amin Reservoir Link Energy secures five-year well-leak repair contract from Petronas Carigali KUALA LUMPUR (March 13): Reservoir Link Energy Bhd has secured a contract from Petronas Carigali Sdn Bhd for the provision of well leak repair equipment and services, with the value based on the number of works executed. In a filing with Bursa Malaysia on Wednesday, the group said its wholly owned subsidiary Reservoir Link Sdn Bhd has accepted the letter of award from Petronas Carigali for the contract, which is for a period of five years. It said the scope of work includes providing engineering consultancy, diagnostic and rectification services of well leak issues, and testing on sealant performance, among others. — by Luqman Amin Prolintas Infra Business Trust’s final IPO price fixed at 95 sen apiece KUALA LUMPUR (March 13): Prolintas Infra Business Trust on Wednesday fixed the final price of its initial public offering (IPO) at 95 sen per unit, unchanged from the initial price set, valuing the owner of highway concession at RM1.05 billion. At that price, the IPO will raise RM445.3 million for the trust’s sole shareholder Projek Lintasan Kota Holdings Sdn Bhd (PLKH) from selling a 49% stake. PLKH is wholly owned by state-controlled asset management company Permodalan Nasional Bhd. This follows the close of the retail offering and the completion of the bookbuilding process under the institutional offering on March 12, Prolintas Infra said in an exchange filing. The trust is set for listing on March 25. — by Emir Zainul Kumpulan Jetson’s unit receives arbitration notice related to RM88 mil job awarded five years ago KUALA LUMPUR (March 13): Kumpulan Jetson Bhd’s wholly owned unit received a notice of arbitration from its former client O&C Makok Isola Sdn Bhd (OCMI) in relation to an RM88.03 million job to build four blocks of serviced apartments in Jalan Yap Kwan Seng here. In commencing the arbitration, OCMI is seeking to claim RM30.88 million, or a sum to be assessed by the Tribunal for the additional costs relating to the appointment of a replacement contractor to complete the works, said Kumpulan Jetson. Other OCMI claims include liquidated damages, reimbursement of all and any over payment of works, advance payment under the contract, interest and cost and expenses of the arbitration. Kumpulan Jetson’s wholly owned unit Jetson Construction Sdn Bhd (JCSB) was awarded the job in July 2018 to build the main building and external works of four blocks of apartment, with the contract sum of RM88.03 million. However, OCMI issued a notice of termination of the contract four years later in September 2022. — by Chester Tay JAG proposes one-for-five bonus issue of shares with three-for-five free warrants KUALA LUMPUR (March 13): JAG Bhd, whose share price has risen 15% year to date, has proposed a bonus issue of 125.36 million new shares on the basis of one bonus share for every five existing shares held. The waste management solutions provider is also planning a bonus issue of up to 376.07 million free warrants on the basis of three warrants for every five existing shares held. The bonus shares will be issued as fully paid, at no consideration and without capitalisation of the company’s reserves. JAG said the illustrative exercise price is 26 sen per warrant. Based on this exercise price and in the event that the warrants are fully exercised, JAG is expected to raise gross proceeds of RM97.78 million. — by Emir Zainul WWW.JAGB.COM.MY RESERVOIRLINK.COM
THURSDAY MARCH 14, 2024 9 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 13): There is no guarantee that Toh Puan Na’imah Abdul Khalid is not a flight risk, Deputy Public Prosecutor Wan Shaharuddin Wan Ladin told the High Court on her application to have her passport unconditionally returned by the court. Wan Shaharuddin, in arguing against Na’imah’s application — after her passport was impounded by the Sessions Court when she was charged in January — made a comparison between her and her husband, former finance minister Tun Daim Zainuddin, who was also charged earlier this year, saying she was more of a flight risk compared to her husband. “If we look at the conditions (Na’imah’s bail conditions) it isn’t restrictive. I’m also not brave to say that she is not flight risk. Her lawyers also cannot guarantee it,” he told presiding judge Datuk Ahmad Bache. “There’s no guarantee that she will run, and there is no guarantee that she won’t run,” he added. Wan Shaharuddin then made a comparison with her husband who was charged with the same offence as her, saying that the Sessions Court, in its discretion, did not impound his passport because Daim was not a flight risk due to his ailing health condition. “With Daim, his health condition shows he’s not a flight risk, the judge (at the Sessions Court) made a ruling not to take his passport. We have to be flexible,” he said. Na’imah is seeking to set aside the requirement for her to surrender her passport and wants it to be in her possession, as she claims that she is not a flight risk. Na’imah’s lawyer M Puravalen had asked the judge to assess her behaviour and determine if she was a flight risk as Shaharuddin did not inform the judge at the Sessions Court on why she could be a flight risk. No guarantee Daim’s wife won’t take flight if passport returned, DPP warns KUALA LUMPUR (March 13): The High Court on Wednesday fixed April 3 to hear 1Malaysia Development Bhd and its four subsidiaries’ bid to strike out the defence filed by Jho Low’s mother Puan Sri Goh Gaik Ewe pertaining to the government-owned company’s claim over jewellery worth US$1.695 million (RM7.9 million) allegedly bought with 1MDB funds. Judge Hayatul Akmal Abdul Aziz will hear the 1MDB application on that day, its counsel Siva Kumar Kanagasabai confirmed when contacted by The Edge. The date was fixed by senior assistant registrar Haslinda A Raof following case management. The Edge is given to understand that Goh had not replied to the notice of interrogatories filed by 1MDB. 1MDB and its subsidiaries 1MDB Energy Ltd and 1MDB Energy (Langat) Ltd are claiming back the jewellery from Goh whose whereabouts are unknown. She is unrepresented as her previous lawyers from the firm Messrs Valen & Oh had discharged themselves. Without her abiding by the notice via a written reply by affidavit, she would be barred from defending herself in the proceedings and the court could enter a judgment against her. Goh filed her defence to the May 2021 suit in January 2022 whereCourt fixes April 3 to hear 1MDB’s bid to bin defence by Jho Low’s mother over US$1.7 mil jewellery BY HAFIZ YATIM theedgemalaysia.com BY TIMOTHY ACHARIAM theedgemalaysia.com in she claimed that she had entered into a settlement with the US Department of Justice (DOJ). However, 1MDB said the claims over the jewellery by Goh were not addressed in the documents linked to the settlement and hence the need for her to reply to the notice of interrogatories. Since she had not replied to the notice after being given two weeks from January this year, 1MDB has applied to strike out her defence so that judgment can be entered against her. The suit against Goh is part of 1MDB’s US$3 billion claim against Jho Low, his father Tan Sri Larry Low Hock Peng, his brother Low Taek Szen, his sister Low May Lin and close associate Eric Tan Kim Loong. The claim against the six, whose whereabouts are unknown, are for fraudulent concealment, fraudulent misappropriation of funds and unjust enrichment among others. The court had entered judgment against Jho Low, Hock Peng and Taek Szen. Puravalen said that her passport was surrendered to the court on limited information. He also said in his written submissions to court that Na’imah is not a flight risk as she has made it clear that she intends to stay and fight the charge against her. Wan Shaharuddin countered by saying Na’imah can always apply to obtain her passport from the court when she requires it. He then said former prime minister Tan Sri Muhyiddin Yassin had also made a similar application to have his passport permanently returned by the courts in his criminal trial. However, they arrived at a “win-win” situation where he is allowed to apply for the return of his passport when he needs to travel. Bache then asked Wan Shaharuddin how quickly Na’imah could get her passport returned if she were to lodge such an application with the court. “She can get it fast, it’s not like those days. “With the right procedure, you can get the passport on the same day. These conditions are to facilitate the ends of justice,” Shaharuddin said. The deputy public prosecutor added that should the unconditional return of her passport be allowed, that could be seen by the public as unfair. After hearing arguments from both parties, Bache then set March 22 for his decision on the matter. Read the full story THE EDGE
THURSDAY MARCH 14, 2024 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 13): Former prime minister Datuk Seri Najib Razak’s lawyer said the US$120 million which flowed into Najib’s personal accounts originating from SRC International Sdn Bhd funds had been part of the US$620 million Najib returned to Tanore Finance Corp’s account in 2013. Angela Barkhouse, a Briton, who is the second witness in the SRC International civil suit seeking to recover from Najib the US$1.18 billion that formed the bulk of the Retirement Fund Inc (KWAP) loans of RM4 billion, was asked by the former PM’s lawyer Harvinderjit Singh about the money that landed in Najib’s personal AmBank account. Harvinderjit had asked her whether she was aware that the US$120 million was part of the US$620 million that Najib had returned from his Malaysian account to Tanore’s account in Singapore in 2013, to which she replied that she “did not see evidence of this”. Testifying before judge Datuk Ahmad Fairuz Zainol Abidin via Zoom from the Cayman Islands, Barkhouse denied the suggestion. Harvinderjit: I am going to suggest to you that the US$120 million from Blackstone to Najib’s account, this money was returned to Tanore via a redemption. Barkhouse: I haven’t seen anything come back. I have not seen anything (to show that the money returned). Harvinderjit: You see the US$620 million? I’m suggesting that the US$120 million in Najib’s account was part of the funds of US$620 million that went out and back to Tanore in 2013. Barkhouse: I haven’t seen that evidence. Apart from this civil suit, Najib is also involved in the 1Malaysia Development Bhd-Tanore (1MDB-Tanore) criminal trial, where he is facing 21 money laundering charges, as well as four counts of abuse of power for using his position as then prime minister, finance minister and chairman of 1MDB’s board of advisers to receive gratifications worth US$681 million. It is Najib’s contention in that criminal case that he had returned US$620 million of the US$681 million to the Saudi Royal family via Tanore Finance Corp in 2013, as he thought that they had given him a donation and he had intended to return it. However, Najib claimed that the money he returned to Tanore Finance Corp was siphoned off by fugitive Low Taek Jho, or Jho Low, who was in control of the Tanore Finance Corp account. Previously, Barkhouse had confirmed through her witness testimony that a portion of the RM4 billion loans from KWAP made its way to a Swiss BSI account, followed by elaborate transactions with Enterprise Emerging Market Fund in Curacao, Blackstone Asia Real Estate Partners Ltd in the British Virgin Islands, and then to Singapore, where a sum of US$120 million landed in Najib’s bank account. She said the US$120 million was transferred to Najib’s accounts in three tranches via Blackstone, with the first tranche of US$70 million transferred on Dec 29, 2011. The other two tranches were US$25 million each and were transferred on March 12, 2012 and May 22, 2012. Jho Low’s name not linked to offshore entities During her questioning by Harvinderjit, Barkhouse testified that during her investigations into multiple offshore accounts which were used to misappropriate the RM4 billion KWAP loans, Jho Low’s name did not pop up on official documentation. She said many of these offshore entities were under the ownership of Eric Tan Kim Loong, a close associate of Jho Low. BY TIMOTHY ACHARIAM theedgemalaysia.com Lawyer claims US$120 mil of SRC funds in Najib’s account ‘returned’ as part of US$620 mil given back to Tanore Finance Corp Harvinderjit: The Department of Justice said that there’s a connection to Jho Low, you’re not making that connection? Barkhouse: I can’t make that connection. Harvinderjit: Bear with me here, have you been made aware of the bank officers in Singapore who were charged with abetting Jho low by forging documents to facilitate fund transfers to him. Barkhouse: I’m aware of the charges, I’m not aware of aiding and abetting…. The DOJ (Department of Justice) had made that connection (to Jho Low), I can’t make that connection. Harvinderjit pressed her for an answer over Jho Low’s involvement, contending that he had control over these funds. However, Barkhouse did not agree. “I think it’s quite presumptuous to say [it was] Jho Low... there were funds that flowed in a circuit. But I didn’t say it was Jho Low. It was based on DOJ that Jho Low was mentioned,” she said. She was referring to the US DOJ report on embezzlement of funds from SRC International and 1MDB. The report states that Jho Low and several associates, such as Tan, were involved in the misappropriation of monies out of SRC International and 1MDB, via the utilising of multiple offshore entities such as Blackstone Asia Real Estate Partners and Blackrock Commodities (Global) Ltd. In this case, SRC International is seeking a declaration from the court that Najib is liable to account for the company’s losses of US$1.18 billion due to breach of duties and trust. Former SRC International managing director Nik Faisal Ariff Kamil is also named as a defendant in the suit. Nik Faisal remains at large and he was last known to be in Indonesia. SRC International is also asking for an order for Najib to compensate US$120 million and Nik Faisal to pay US$2 million to SRC International, and for the company to be entitled to trace the amount in general, exemplary and aggravated damages. This civil suit is different from Najib’s SRC International criminal trial, where the former PM was convicted. Najib is currently serving a six-year jail sentence and RM50 million fine, which was recently reduced from a 12-year jail sentence and RM210 million fine following a partial pardon by the former King. Former prime minister Datuk Seri Najib Razak is currently serving a six-year jail sentence and RM50 million fine, which was recently reduced from a 12-year jail sentence and RM210 million fine following a partial pardon by the former King, for the former PM’s conviction in the SRC International Sdn Bhd criminal trial. ZAHID IZZANI/THE EDGE
THURSDAY MARCH 14, 2024 11 THEEDGE CEO MORNING BRIEF HOME KUCHING (March 13): Sarawak will do a proper evaluation and study before deciding to buy an aircraft when the state takes over Maswings, Minister of Transport Datuk Seri Lee Kim Shin said. He said the ARJ22 aircraft may be suitable to be used in the region, with a maximum range of 2000 nautical miles can be utilized for the short to medium haul. “The aircraft is very comfortable, can easily be reconfigured to cater for different types of business models and can seat between 78 to 97 passengers. “Within Sabah, Sarawak and Indonesia such as in Nusantara, Pontianak or even to Kuala Lumpur is just nice. It is suitable for us here in Sarawak because of the flying time,” he said after welcoming the Commercial Aircraft Corporation of China (COMAC) at Kuching International Airport here on Wednesday. Lee said with that capacity, the frequency of the flight per day can be increased depending on the demand. “More convenient for people to fly especially for business and local travelers even for tourists, that makes it more economical and flexible. “My personal opinion, the way I look at it and I see a big potential, maybe we also can have a chartered flight,” he said. Lee added that currently, Trans Nusa Airline in Indonesia is using two units of ARJ21 aircraft in their flight operations and will get another 60 more aircraft this year. The ARJ21 aircraft by COMAC was on a demo flight from Subang airport to Kuching International Airport on Wednesday. Sarawak will do proper study before buying any aircraft for Maswings — Lee KUALA LUMPUR (March 13): The proposed Parliamentary Services Act is in its final stages of preparation, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said. Despite not providing a specific timeline, Azalina said she was hopeful the bill could be tabled in this Dewan Rakyat sitting, which concludes on March 27. “I have already discussed with the Dewan Rakyat speaker, Dewan Negara president and the prime minister recently. If possible, we will synchronise it with the proposed amendments to citizenship laws that will be brought by the Home Ministry, as both amendments will require 148 votes to be approved,” says Azalina in response to Chow Yu Hui (PH-Raub) during the oral question and answer session in Dewan Rakyat on Wednesday. The government is expected to table the proposed amendment to the Federal Constitution pertaining to citizenship rights before Dewan Rakyat in the current sitting. The Parliamentary Services Act was first enacted in 1963, just a few months before the formation of Malaysia. It allowed Parliament to act as a truly independent body, running its own affairs, selecting its staff and controlling its expenditure. However, it was repealed in 1992. Azalina reaffirmed the government’s commitment to table the Parliamentary Services Act, as several engagement sessions had been conducted throughout 2023 and 2024, involving the Dewan Rakyat speaker, Dewan Negara president, the secretaries of both the lower and upper house, the Public Services Commission of Malaysia (SPA), Public Service Department Malaysia, Ministry of Finance, Attorney General’s Chambers and the Legal Affairs Division (BHEUU) of the Prime Minister’s Department. “These sessions aim to finalise the relevant policy resolutions on this matter. The bill is almost 90% completed, and draft laws are already prepared; we just wait for the time to table it before Dewan Rakyat,” she said. KUALA LUMPUR (March 13): The governance guidelines and code of ethics for artificial intelligence (AI) are set to be presented to the Cabinet this month for approval, with a scheduled launch in April 2024, according to Minister of Science, Technology and Innovation (Mosti) Chang Lih Kang. Chang said that these guidelines encompass the implementation of AI and are aimed at three main user categories, namely the public, policymakers and technology developers or providers. “Adhering to these guidelines can assist practitioners and developers in preventing and mitigating the risks associated with AI misuse. Additionally, it will serve as a fundamental document for the development of future AI-related legislation,” Chang said in response to Lee Chean Chung (PH-Petaling Jaya) during the oral question and answer session in Dewan Rakyat on Wednesday. Chang further noted that a recent public consultation session, facilitated by the Malaysia Productivity Corporation (MPC) through the Unified Public Consultation (UPC) portal, has concluded. The guideline document has been made available for public consultation until March 8, 2024. “The purpose of this session was to gather feedback from the public on the draft document to enhance the guidelines before finalisation,” he said. Chang also added that oversight of digital technologies like AI currently falls under existing acts and legislation such as the Communications and Multimedia Act, the Personal Data Protection Act and the Electronic Transactions Act. Azalina: Parliamentary Services Act nearly finalised, could be tabled in current Dewan Rakyat session Mosti to present AI code of ethics and governance guidelines to Cabinet this month BY CHOY NYEN YIAU theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com Bernama
THURSDAY MARCH 14, 2024 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 13): The decision on whether Malaysia will host the 2026 Commonwealth Games is expected to be discussed in the Cabinet meeting next week, Youth and Sports Minister Hannah Yeoh said. Hannah said she does not want to preempt Cabinet discussions, but expressed confidence that the Unity Government will consider the matter reasonably. “There is a lot of feedback out there, everyone has their views, but I assure you that this government is very responsible with every ringgit of the people’s money. “We (Unity Government) will ensure 2026 Commonwealth Games: Cabinet discussions next week on whether Malaysia ready to host KUANTAN (March 13): The Pahang government strongly denies claims that there was illegal production of rare earth oxides in the forest reserve in Lipis district, despite attempts to mine the material. Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said that the statement issued by Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad when answering a question from Ipoh Timur member of Parliament, Lee Chuan How, in Parliament yesterday, was inaccurate, as there was no rare earth production activity in the Lipis district. He said as a result of information and intelligence carried out by the Pahang Enforcement Unit elite team on March 20 last year, they had detected and found a location and there was an attempt to turn it into a rare earth mine area, based on the equipment found. “Following this discovery, the state Minerals and Geoscience Department conducted a site inspection at the location on March 23 last year, and the investigation found that the tools and laboratory items used showed that the area was for rare earth mining. “However, no production activity has been detected, and all the equipment was Pahang denies claims of producing illegal rare earth oxides — Wan Rosdy seized by the authorities,” he said in a statement on Wednesday. From then on, the enforcement unit together with the Royal Malaysia Police (PDRM) and West Pahang Zone Forestry Enforcement, conducted regular monitoring in the western part of Pahang, from May 3 last year to Feb 15 this year, and found that there was no rare earth mining activity taking place. “I hope this fact can be corrected because the statement made yesterday has affected the good name of the state of Pahang, especially since the Pahang government, for the past five years, has been so strict in implementing enforcement to curb illegal land encroachment activities, including rampant mining activities,” he said. According to Wan Rosdy, a total of 137 cases of state government land encroachment have been successfully resolved, with 129 cases being compounded, while eight cases have been prosecuted in court and sentenced, since the establishment of UPNP on Oct 9, 2019. He said that the state government will also continue enforcement activities from time to time, to ensure that no more illegal land exploration activities occur in the state in the future. Bernama Bernama money spent yield results for the country,” she said when winding up the debate on the Motion of Thanks for the Royal Address for the Youth and Sports ministry on Wednesday. The fate of the 2026 Commonwealth Games remains uncertain after Victoria in Australia, originally slated to host the 23rd edition, withdrew in July last year due to a significant increase in hosting costs from the initial estimate of A$2.6 billion (approximately RM8.09 billion) to A$7 billion. The state of Victoria is also reported to have agreed to pay A$380 million for breaching the contract to host the event, scheduled from March 17 to 29, 2026. Of the 74 countries and territories that are members of the Commonwealth Games Federation (CGF), only England, Canada, Australia, Wales, New Zealand, Jamaica, Scotland, India and Malaysia (1998) have ever hosted the event. Meanwhile, commenting on the Badminton Association of Malaysia’s (BAM) rejection of the official offer to host the 2026 Thomas and Uber Cups, Hannah clarified that it was not a rejection, but rather BAM was not interested in making a bid. “Confusion arose on March 12 when the Sports Commissioner claimed that BAM rejected the offer, and that is not true at all. BAM, they do not intend to bid for it, so the question of rejection does not arise,” she said. BERNAMA
THURSDAY MARCH 14, 2024 13 THEEDGE CEO MORNING BRIEF WORLD US stocks may not be in a bubble, but a pullback could be near BY LEWIS KRAUSKOPF Reuters It is not immediately clear what could cause a market sell-off. While stronger-than-expected inflation has dented expectations for how deeply the Fed will cut rates this year, many believe borrowing costs are still heading lower. NEW YORK (March 13): Some market participants believe the relentless US stock rally is poised for a breather, even if it remains unclear whether equities are in a bubble or a strong bull run. The benchmark S&P 500 index is up over 25% in the last five months, a phenomenon that has occurred just 10 times since the 1930s, according to BofA Global Research. In an advance led by stunning gains in chipmaker Nvidia, the S&P has already made 16 record highs this year, the most in any first quarter since 1945, CFRA Research data showed. Bullish investors argue those gains stem from solid fundamentals, rather than the type of rampant speculation that has accompanied past bubbles. Oft-cited reasons include a strong US economy, expectations the Federal Reserve will cut interest rates this year, and excitement over the business potential of artificial intelligence. Yet some investors believe the market’s nearly uninterrupted ascent means a pullback is due. The last time the S&P 500 slid more than 5% was in October, though BofA data shows such sell-offs historically occur three times per year on average. The index is up 8.5% this year. “A lot of good news is priced into the market,” said Michael Arone, chief investment strategist at State Street Global Advisors. “From my perspective that just suggests that the risks are skewed to the downside.” It is not immediately clear what could cause a market sell-off. While stronger-than-expected inflation has dented expectations for how deeply the Fed will cut rates this year, many believe borrowing costs are still heading lower. Elevated consumer prices have also been seen as evidence of economic strength. Investors have largely dismissed other concerns, from pockets of instability in US regional banks to China’s lackluster economy. Nevertheless, some indicators are flashing a warning. The S&P 500’s weekly relative strength index (RSI) — which gauges whether stocks are overbought or oversold — has climbed to just over 76, a level it has rarely topped since 2000, Miller Tabak data showed. Significant sell-offs followed the last two times the index exceeded those levels: a 10% drop in the S&P 500 in January 2018 and a 30% plunge as Covid-19 emerged after the index topped that level in January 2020. “None of this means we’re looking at a major long-term top,” said Matt Maley, chief market strategist at Miller Tabak. “However, it does tell me that we’re getting ripe for a material pullback.” Growing investor optimism has also raised concern. The percentage of investors expressing a bullish view about the six-month outlook for stocks rose to 51.7% in the latest weekly survey from the American Association of Individual Investors, only the fourth time the bullish level has topped 50% in nearly the past three years. High optimism is often viewed as a contrarian indicator because it means the bar for positive surprises is elevated. “The sentiment backdrop right now ... makes the market vulnerable to a turn lower,” said Kevin Gordon, senior investment strategist at Charles Schwab. History shows the current advance may be primed for a pause. The S&P 500 erased losses from the prior bear market when it hit a record high on Jan. 19, and has advanced about 7% since then. That is in line with past rallies, when stocks kept climbing after breaching new highs. Those moves, however, were followed by declines of at least 5% in the 12 times such a situation occurred, said Sam Stovall, CFRA’s chief investment strategist. But is it a bubble? For some, the market’s optimism — coupled with parabolic moves in shares of Nvidia and other AI-focused companies — has evoked comparisons with past periods when asset prices soared to unsustainable heights only to come crashing down, such as the meme stock rallies of 2021 and the dot-com surge of 1999. Nvidia’s shares are up over 80% this year after tripling in 2023, making it the third most valuable US company. Other AI-linked stocks have posted tremendous year-to-date gains, including Super Micro Computer, which has soared 300% and is set to join the S&P 500. Nvidia has shown a strong relationship with S&P 500 performance, JPMorgan strategists wrote. “We caution investors that this relationship is likely to work in reverse when the AI euphoria peaks,” the strategists said. Others, however, note differences with bubbles of the past. Keith Lerner, co-chief investment officer at Truist, wrote that the S&P 500 technology sector’s three-year outperformance against the broader S&P 500 stands at about 30%. That is roughly in line with the 30-year average and far from the peak of just above 250% in March 2000, Lerner said.
THURSDAY MARCH 14, 2024 14 THEEDGE CEO MORNING BRIEF WORLD (March 13): The oil-rich Middle East is close to becoming the only region with three trillion-dollar wealth funds. Saudi Arabia recently transfered a US$164 billion (RM767.72 billion) stake in Aramco to the Public Investment Fund, while the Kuwait Investment Authority is on track for one of its best fiscal years on record amid a broad market rally, Bloomberg News has reported. That’s helped both entities narrow the gap with the US$993 billion Abu Dhabi Investment Authority (ADIA) — the region’s largest state-backed investor — according to data from the Sovereign Wealth Fund Institute (SWFI). Many wealth funds operate in secrecy, making it hard to ascertain the exact size of their portfolios. Globally, Norway’s sovereign wealth fund is the world’s largest, followed by China Investment Corp, data from SWFI shows. In the Middle East, Abu Dhabi is home to three wealth funds — ADIA, Mubadala Investment Co and ADQ. The city is among few globally that manage about US$1.5 trillion in sovereign wealth capital, and recently set up a technology investment firm that could surpass US$100 billion in assets under management. Three Mideast wealth funds close in on the US$1 tril mark (March 13): The UK economy rebounded in January, registering modest growth after falling into a technical recession in the second half of last year. Gross domestic product rose 0.2% following a 0.1% decline in December, the Office for National Statistics (ONS) said on Wednesday. Services and construction delivered the gains, offsetting a drop in industrial production. The figures leave Britain on track to grow over the first quarter as a whole, bringing the recession to an end. That’s a boost for Prime Minister Rishi Sunak, who is seeking to defy opinion polls that suggest his Conservative Party is facing a heavy defeat at a general election expected later this year. However, the recovery is likely to modest as past interest-rate increases continue to feed through to households and companies. Analysts expect the UK to trail every other Group of Seven country except Germany for another year. With the labour market cooling and data next week expected to show a sharp slowdown in inflation, investors are betting the Bank of England will begin cutting rates in August from their highest level in 16 years. Markets are now pricing in four quarter-point reductions over the next year. Growth in January was boosted by strong retail sales as a two percentage point cut in national insurance, a payroll tax, took effect and lifted disposable incomes. Households, which already are enjoying the return of real wage growth, can expect a further lift in April after Chancellor of the Exchequer Jeremy Hunt announced a further two-point cut in National Insurance Contributions in his budget last week. Workers on the minimum wage will also get an uplift of almost 10%. Weighing on growth in January was strike action by junior doctors, which contributed to the highest number of days lost to industrial action since September. (March 13): DreamSmart Group, the smartphone maker that last year pivoted toward developing artificial intelligence for mobile devices, has selected banks to prepare for its Hong Kong initial public offering that may value it at more than 15 billion yuan (RM9.8 billion). The startup behind popular smartphone brand Meizu is working with China International Capital Corp and Huatai Securities Co on the potential share sale this year, the people said. The company, owned by Chinese automaker Zhejiang Geely Holdings UK economy grows by 0.2% in January after shallow recession Geely-backed phonemaker taps banks for IPO at US$2 bil value BY ANDREW ATKINSON & PHILIP ALDRICK Reuters BY PEI LI & DONG CAO Bloomberg BY ADVEITH NAIR Bloomberg Group Co, may seek a valuation of as much as 20 billion yuan in the offering, depending on market conditions, one of the people said. Deliberations are ongoing and details of the IPO including bank lineup and size may change, the people said. A representative for DreamSmart declined to comment, while representatives for CICC and Huatai didn’t respond to requests for comment. Founded two decades ago as a purveyor of MP3 music players, Meizu was one of the pioneers of China’s then-nascent smartphone industry alongside bigger names such as Xiaomi Corp. Once backed by Alibaba Group Holding Ltd, it cranked out trendy devices and an operating system that initially won acclaim, but later ceded ground to more aggressive rivals such as Oppo and Huawei Technologies Co. Billionaire Li Shufu’s auto company acquired the brand in 2022, which began developing AI around the time ChatGPT took the concept mainstream. Read the full story
THURSDAY MARCH 14, 2024 15 THEEDGE CEO MORNING BRIEF WORLD (March 13): Passenger traffic at Singapore’s Changi Airport, one of Asia’s busiest, topped pre-Covid levels in February as Lunar New Year holidays sparked a surge in travel demand. The facility, frequently voted one of the world’s best for its futuristic feel and efficiency, recorded 5.35 million passenger movements in February, a 34% increase year-on-year, and 4.3% higher than the same period in 2019, according to data released Wednesday. The airport is one of the first in Asia to exceed pre-pandemic traffic levels and signals a broader travel rebound is underway across the region. Singapore proved a popular destination for last month’s extended Lunar New Year holiday, while March may prove to be another bumper month due to a series of six Taylor Swift concerts. The singer performed in the city in an exclusive deal, angering Singapore’s Southeast Asian neighbors that missed out on the spending bump of such a visit. Swift’s popularity and the lack of shows elsewhere sparked an influx of foreign visitors to the city-state that prompted economists to upgrade their forecasts for the economy. Singapore is pushing to extend its lead over regional rivals as a popular holiday destination and transit hub, including technology upgrades at Changi that will allow residents and visitors leaving the island to progressively be able to clear checkpoints without using their passports. Singapore’s Changi passenger numbers hit pre-Covid levels for the first time (March 13): Singapore Telecommunications Ltd (Singtel) climbed its most in almost two years after the Australian Financial Review (AFR) reported it was in advanced discussions to sell carrier Optus to private equity firm Brookfield for about A$16 billion (US$10.6 billion or RM49.6 billion). Singapore’s largest carrier gained as much as 4.2%, its biggest intraday gain since May 2022, before the exchange halted trading. According to AFR, Brookfield may bring a consortium partner such as the Canada Pension Plan Investment Board into a deal that could value Optus at as much as A$18 billion. In response, Singtel said there was “no impending deal to offload Optus for the said sum, as reported”, adding the Australian operation was integral to the broader group. A deal would mark a windfall for Singtel, which invested in the Australian operator more than two decades ago but has lately been grappling with the fallout from a pair of major security incidents. The capital raised could help finance major initiatives such as an expansion into the data centre arena, a market fuelled by a global boom in artificial intelligence development. Optus, which competes with Telstra Group Ltd, came under fire last year for a widespread outage that followed an earlier cyberattack exposing the personal information of millions of customers. The incidents helped precipitate the departure of its former chief executive officer. The Australian carrier’s revenue slid 5.4% in the December quarter while earnings before interest, taxes, depreciation and amortization fell 1.8%, according to Singtel filings. Optus, which contributes a major chunk of Singtel’s revenue, was one of the Singaporean firm’s more significant overseas investments. News of a potential deal emerged days after Singtel trimmed its stake in Indian phone carrier Bharti Airtel Ltd, selling more than US$700 million worth of stock to raise capital for expansion into new arenas such as data centres. HONG KONG (March 13): Hong Kong’s Cathay Pacific Airways reported on Wednesday a HK$9.79 billion (US$1.25 billion) profit for 2023, its first annual profit since 2019, and said it plans to expand its workforce by around 20%, or 5,000 people, this year. Cathay is embarking on a massive recruitment drive as it recovers from the impact of Covid-19 which resulted in heavy losses for Hong Kong’s flagship airline. It posted a loss of HK$6.6 billion in 2022. Its shares were up 1.6% ahead of the earnings announcement, their highest level since Aug 15. Cathay said it aims to reach 80% of its pre-pandemic passenger flights within the second quarter of this year. The carrier has restored capacity more Singtel surges after report of US$11 bil Optus sale talks Cathay Pacific posts first annual profit since 2019 BY OLIVIA POH Bloomberg Reuters BY YIHUI XIE & DANNY LEE Bloomberg slowly than its closest rival, Singapore Airlines, because it faced tighter quarantine rules for longer, and needed to hire more staff to bring back services. Cathay Pacific is a full service passenger and cargo airline, with two subsidiaries: low cost carrier HK Express and cargo carrier Air Hong Kong. BLOOMBERG BLOOMBERG
THURSDAY MARCH 14, 2024 16 THEEDGE CEO MORNING BRIEF WORLD (March 13): UBS Group AG started cutting jobs at its Asia private banking division this week as a slump in profits weighs on the region’s largest wealth manager, according to people familiar with the matter. The firm is cutting about 70 people, including relationship managers, mainly in Hong Kong and Singapore through the end of March, one of the people said, asking not to be identified discussing a private matter. A spokeswoman for the bank declined to comment. Wealth generation in China has stalled as the nation’s economy struggles to regain momentum amid a property crisis and a selloff in equities. Rivals such as Citigroup Inc have also been cutting wealth jobs and in their investment banks in the region. The reductions, which confirm an earlier Bloomberg News report, included bankers who joined from Credit Suisse as part of the integration after the takeover by UBS. UBS’s pretax profit for Asia Pacific slumped 46% to US$97 million (RM454.08 million), during the fourth quarter from a year ago, the lowest of all the regions globally. Meanwhile, the cost-to-income ratio in the region rose to 87.7%. UBS has the biggest wealth management workforce in Asia, with a total of 1,101 advisers as of Dec 31. Chief executive officer Sergio Ermotti warned last month that 2024 will be more difficult, as the costs from the takeover of its former rival weigh on results before UBS can realise the benefits. The lender’s workforce jumped to about 120,000 when the Credit Suisse deal closed in June. During the three months to December, UBS’ key wealth management unit reported global pre-tax profit of US$381 million, well below analyst estimates of US$1.07 billion. Still, net new money at the unit came to US$21.8 billion, better than forecast. UBS starts slashing jobs at Asia wealth unit after profit slump TOKYO (March 13): Toyota Motor agreed to give factory workers their biggest pay increase in 25 years on Wednesday, heightening expectations that bumper pay raises will give the central bank leeway to make a key policy shift next week. Toyota, Panasonic, Nippon Steel and Nissan were among some of Japan Inc’s biggest names that agreed to fully meet union demands for pay increases at annual wage negotiations that wrap on Wednesday. The talks, long a defining feature of the usually collaborative relationship between Japanese management and labour, are being closely watched this year as the pay increases are expected to help clear the way for the central bank to end its years-long policy of negative interest rates as early as next week. Toyota, the world’s biggest carmaker and traditionally a bellwether of the annual talks, said it agreed to the demands of monthly pay increases of as much as ¥28,440 (RM903) and record bonus payments. Keeping with past practice, the company did not provide a percentage figure for the salary rise. “We’re seeing strong momentum for wage hikes,” Japan’s top government spokesperson and chief cabinet secretary, Yoshimasa Hayashi, told reporters. “It’s important that the strong wage hike Toyota agrees to biggest wage hike in 25 years in sign of Japan Inc’s hefty pay bump BY TETSUSHI KAJIMOTO & ANTON BRIDGE Reuters BY DENISE WEE, JOYCE KOH & CATHY CHAN Bloomberg momentum will spread to small and midsized firms.” Economists see substantial wage increases as a prerequisite for the Bank of Japan (BOJ) to declare that its long-held goals of sustainable wage growth and stable prices are in sight and usher in an end to negative rates in place since 2016. The bank, which has stuck with massive stimulus and ultra-low rates for years longer than other developed countries in an attempt to jumpstart a moribund economy, is set to hold its next policy setting meeting on March 18-19. Workers at major firms have asked for annual increases of 5.85%, according to Japan’s biggest trade union grouping, Rengo, which if agreed upon would breach the 5% level for the first time in 31 years. Hisashi Yamada, a senior economist at Japan Research Institute and an expert on labour issues, estimated overall increases of 4.2% to 4.3% based on the “quite strong” responses so far, and possibly more than 5% for top firms. He attributed the rises to the trend of higher wages globally, domestic labour shortages and inflation. “Still, the sustainability of such strong pay raise and whether the trend of wage hikes will spread to small and medium-sized companies going forward is uncertain,” Yamada said. UBS Group AG is cutting about 70 people, including relationship managers, mainly in Hong Kong and Singapore through the end of March, according to people with knowledge of the cuts. BLOOMBERG BLOOMBERG
THURSDAY MARCH 14, 2024 17 THEEDGE CEO MORNING BRIEF WORLD (March 13): Australian vintners and lawmakers said China proposed lifting punitive tariffs on the nation’s wine, signaling the end is near to a three-year trade dispute as both countries seek to strengthen ties. Treasury Wine Estates Ltd referenced China’s plan in an exchange filing on Tuesday, adding that the final decision will be made in the “coming weeks.” The Ministry of Commerce in Beijing did not respond to a question about when they would release the report. “The interim recommendation to remove tariffs on Australian wine is a welcome development,” Australia’s Trade Minister Don Farrell said in a statement on Tuesday. “It vindicates the government’s preferred approach of resolving trade issues through dialog rather than disputation,” he added. In a separate statement, Foreign Minister Penny Wong pledged to continue to push “for all remaining trade impediments to be removed.” Removing the import taxes would help revive a billion-dollar Australian market and put an end to Beijing’s yearslong campaign of punitive trade actions to try to influence policy in Canberra. Before tariffs of up to 218% were imposed on Australian wine in March 2021, China was Australia’s largest market for vintners, accounting for A$1.1 billion (US$728 million) in 2019. “This is a positive step towards resuming trade with what was formerly our largest export market,” said Lee McLean, chief executive of Australian Grape & Wine Inc, who said the industry remains hopeful about Beijing’s proposed removal of the tariffs. “We are optimistic yet cautious with this news as there is a very large job for Australian winemakers to re-invigorate this market after three years of being out of it,” said Mitchell Taylor, third-generation winemaker at Taylors Wines. Despite the challenge, Taylor said this is a “big win” for the industry which has been under enormous pressure as it sought to adjust to changing economic circumstances. With the lifting of the wine tariffs now highly likely, China is on the brink of ending its trade campaign against Australia, as the interim plan unveiled on Tuesday becomes the latest in a slew of positive developments. China’s Ambassador to Australia Xiao Qian this week said “things are moving on right tracks with the right direction” on the wine tariff review. Last month, Farrell made similar remarks. Read also: Chinese Foreign Minister to visit Australia as ties warm China proposes end to punitive wine tariffs, Australia says (March 13): Country Garden Holdings Co missed a coupon payment on a yuan bond for the first time, adding to the woes of the Chinese developer that is facing a lawsuit seeking its liquidation offshore. The builder’s main onshore unit hasn’t fully prepared a 96 million yuan (RM62.54 million) coupon that came due on Tuesday for a 4.8% yuan bond maturing in 2026, the company said in a response to Bloomberg. There is a 30 trading-day grace period for the payment, it added. “Sales recovery has fallen short of expectations, so fund allocation remains under pressure,” Country Garden said in the statement. “The company will make all efforts possible to raise cash during the grace period, including through sales, asset disposal and expenditure cuts.” Country Garden roiled markets when it defaulted on its dollar debt in October, but has so far managed to avoid doing so on its local-currency obligations. In September, the developer extended more than 10 billion yuan of yuan bonds by three years. After that, it paid several coupons and in December paid off an 800 million yuan note. The developer’s shares snapped a three-day advance on Tuesday, falling 4.9% to 58 Hong Kong cents (35 sen). Its dollar bonds still trade at deeply distressed levels of around eight cents on the dollar. Country Garden’s crisis entered a new chapter after a Hong Kong court last month received a creditor’s petition to wind up the Guangdong-based company. The lawsuit may add to pressure on the developer to advance a debt restructuring plan. A sales drought for the builder has worsened. Contract sales for February plunged 85% from a year earlier, widening from a 75% slide in January, corporate filings show. Homebuyers in China are avoiding defaulted developers on concerns about their ability to complete housing projects. Now the focus is turning to China Vanke Co, a state-backed builder that is in talks with creditors to stave off a default. Country Garden misses yuan bond payment for first time Bloomberg Bloomberg
THURSDAY MARCH 14, 2024 18 THEEDGE CEO MORNING BRIEF WORLD (March 13): Tesla’s expansion into Southeast Asia is a priority, a senior executive said on Tuesday, highlighting the fast-growing market where the US electric-vehicle maker faces competition from China’s BYD. The region has emerged as one of the hottest EV markets in recent years and could offer Tesla a large customer base at a time when demand is slowing in the US. “Southeast Asia will undoubtedly be a major place of growth over the coming years in battery storage and electric vehicle adoption,” Rohan Patel, senior public policy and business development executive at Tesla, said in a post on X. Patel was responding to a user post that marked the first deliveries of the Model Y cars in Malaysia. The company also sells its Model 3 compact sedan in the country. The Malaysian government had last year given Tesla the license to sell its cars in the country and said the firm would also establish a network of charging stations there. Tesla is also in talks for expanding its operations in other countries, including in Thailand, which is Southeast Asia’s largest car producer and exporter. A Thai government official said earlier this month that the company had discussed a potential production facility after surveying a site late in 2023. Still, Tesla’s ambitions for Southeast Asia will have to contend with competition from BYD, which has shot past rivals to account for more than a quarter of the EVs sold in the region. In contrast with Tesla’s direct-to-consumer approach, BYD has partnered with large, local conglomerates that have allowed the carmaker to expand reach, test consumer preferences and navigate complex government regulations in the region. The Chinese EV maker sold more than 26% of all cars in Southeast Asia’s small but fast-growing EV market in the second quarter of 2023, while Tesla accounted for about 8%, according to Counterpoint. EVs constituted 6.4% of all passenger vehicle sales in the region in the quarter, up from 3.8% in the preceding quarter. Read also: Tesla, rivals get low marks for automated-driving technology Tesla official talks up Southeast Asia expansion as China’s BYD pulls ahead (March 13): Wall Street’s stance on Tesla Inc worsened further on Wednesday as yet another analyst warned about risks to sales, and said its strategy of cutting prices to boost demand was losing its effectiveness. The electric vehicle (EV) maker’s growth in its core markets has moderated, Wells Fargo analyst Colin Langan wrote in a note to clients Wednesday, as he downgraded the stock to the equivalent of a sell rating. Langan expects Tesla’s sales volumes to be flat this year and to fall in 2025. Elon Musk’s company is a “growth company with no growth”, Langan wrote. He highlighted that sales volumes rose only 3% in the second half of 2023 from the first half, while prices fell 5%. Tesla analysts are getting increasingly wary, and the share of bullish ratings on the stock has dropped to the lowest since April 2021. Sentiment deteriorated after the company in January said its growth will be “notably lower” this year, while other automakers, Tesla a ‘growth company with no growth’, Wells Fargo says EV suppliers and even rental-car companies have sounded similarly cautious comments about the near-term demand for EVs. As a pure-play EV company with an eye-wateringly high valuation, Tesla shares have taken a serious hit. The stock has already fallen 29% this year through Tuesday’s close, placing it among the worst performers on the S&P 500 Index. The Austin-based company is down as much as 2.8% in premarket trading in New York. This year’s selloff has wiped more than US$224 billion (RM1.05 trillion) from the company’s market value and pushed it off the list of the ten biggest companies on the S&P 500. Even after the decline, the stock still trades at 55 times its forward earnings, compared to the average of about 31 for the Bloomberg Magnificent 7 Price Return Index. “While an EV and battery technology leader, Tesla screens poorly relative to Mag 7 peers,” Wells Fargo’s Langan said, noting the valuation discrepancy. The analyst lowered his 2024 profit estimate for the company to US$2 a share from US$2.40. That compares to analysts’ average expectation of US$3.03 a share for the year, according to data compiled by Bloomberg. Still, some analysts see a bright future for the company, and the drop in shares reflect an overly bearish outlook. “The demand story for EVs globally has clearly moderated, however we believe Tesla is on the broader trajectory to see growth and margin improvement return to the story over the coming quarters,” Wedbush analyst Dan Ives wrote in a note Wednesday. “Now is not the time to throw in the towel on Tesla.” BY ESHA DEY Bloomberg BY ADITYA SONI Reuters BLOOMBERG
THURSDAY MARCH 14, 2024 19 THEEDGE CEO MORNING BRIEF WORLD Indonesia’s Anies plans to contest presidential poll result in top court Thai PM poised to step aside as finance chief — report BY ANUCHIT NGUYEN & SUTTINEE YUVEJWATTANA Bloomberg Reuters (March 13): Thailand’s Prime Minister Srettha Thavisin will relinquish his role as finance minister, according to a local media report, a change that may ease tension with the central bank over monetary policy. The former property tycoon may appoint Pichai Chunhavajira as the new finance minister, Thai language newspaper Krungthep Turakij reported Wednesday, without saying where it got the information. Pichai, who was appointed chairman of the Stock Exchange of Thailand last month, is Srettha’s close confidant and is seen capable of urgently implementing the government’s economic policies, the newspaper reported. Srettha’s busy schedule has hindered the finance ministry’s ability to carry out new economic policies, and the appointment of a new minister will help ease the premier’s workload, according to the report. The prime minister has repeatedly denied that a cabinet revamp was in the offing, saying members of his seven-month old administration were doing well and need more time to prove their mettle. Picking Pichai, a capital markets veteran, as finance minister may help ease tension between Srettha’s administration and the central bank with which Srettha has frequently clashed on approaches to reviving Southeast Asia’s second-biggest economy. The Bank of Thailand governor Sethaput Suthiwartnareuput has snubbed Srettha’s call to cut interest rate as a quickfix to accelerate economic growth amid a spell of negative inflation. Pheu Thai Party that heads the coalition, has been criticized by economists and the central bank as inflationary and one that poses a risk to fiscal consolidation. “It’s a good move to have a new finance minister as managing two key jobs at the same time is very challenging,” said Burin Adulwattana, chief economist at Bangkok-based Kasikorn Research Center. “The finance minister should be the one who understands the overall economic picture and can balance between short-term and long-term measures. Having a new minister may also help ease the tension with the central bank.” Thailand’s economy grew 1.9% last year, lagging the growth rate of its peers in the region. Srettha wants to lift the pace of expansion to 5% annually and has unveiled a raft of measures including visa waivers to boost tourism and courted investors worldwide to attract foreign direct investment. The sluggish growth outlook and government-central bank clashes have rattled foreign investors, prompting them to dump a net US$1.5 billion of Thai bonds and stocks so far this year. The baht has gone from being the best performer in Asia in the final quarter of 2023 to the worst this year after its 4.4% decline against the dollar. Read also: US firms keen to diversify supply chains, ‘supercharge’ Thai investments, says US commerce secretary JAKARTA (March 13): Indonesian presidential candidate Anies Baswedan said on Wednesday he plans to file a complaint at the country’s Constitutional Court over the results of last month’s election. Unofficial results show Defence Minister Prabowo Subianto, who had incumbent President Joko Widodo’s tacit backing, won the Feb 14 poll with nearly 60% of votes. The national election commission is expected to announce the official winner by March 20. Anies, former governor of Jakarta, said he plans to file a complaint after official results are announced, but did not provide other details. “We plan to file to (Constitutional Court) for sure but the content is not something that we can disclose,” he told reporters. The move comes as parties supporting Anies and another presidential candidate, Ganjar Pranowo, gear up to launch a parliamentary investigation into the government’s conduct in the lead-up to voting day and alleged election violations. Though the Constitutional Court typically handles election disputes, Indonesia’s parliament has the power to investigate government policy or implementation of certain regulations and can examine the conduct of public officials, including the president. Prabowo looks to have swept the presidential election on his third try, boosted by the unofficial support of the president, who has faced mounting allegations of ethical breaches and meddling, which his allies deny. Indonesian presidential candidate Anies Baswedan Challenges awaiting the new finance minister include a plan to hand out 10,000 baht (RM1,310) in cash to 50 million individuals as part of a goal to boost consumption. The move, a key election pledge of REUTERS
THURSDAY MARCH 14, 2024 20 THEEDGE CEO MORNING BRIEF WORLD (March 13): President Joe Biden and former President Donald Trump both clinched their parties’ nomination on Tuesday, kicking off the first US presidential election rematch in nearly 70 years. Biden needed 1,968 delegates to win the nomination, and he passed that number on Tuesday night as results began to come in from the primary contest in Georgia, Edison Research said. Results were also coming in from Mississippi, Washington state, the Northern Mariana Islands and Democrats living abroad. Hours later, Trump clinched the 1,215 delegates required to secure the Republican presidential nomination as four states held contests, including Georgia, the battleground where Trump faces criminal charges for his efforts to overturn the state’s 2020 results. There were 161 delegates at stake on Tuesday in Georgia, Hawaii, Mississippi and Washington state. Biden, 81, issued a statement after he sealed the Democratic nomination, taking aim at what he called Trump’s “campaign of resentment, revenge, and retribution that threatens the very idea of America.” “Voters now have a choice to make about the future of this country. Are we going to stand up and defend our democracy or let others tear it down? Will we restore the right to choose and protect our freedoms or let extremists take them away?” he said. The outcome of Tuesday’s voting was essentially predetermined, after Trump’s last remaining rival for the Republican nomination, former UN Ambassador Nikki Haley, ended her presidential campaign following Trump’s dominant performance last week on Super Tuesday, when he won 14 of 15 state contests. In a video posted on social media, Trump said there was no time to celebrate, and instead put the focus on beating Biden, whom he called the “worst” president in US history. “We’re going to drill, baby, drill. We’re going to close our borders. We’re going to do things like nobody has ever seen before. And we’re going to make our nation’s Biden, Trump clinch nominations, kicking off bruising presidential rematch MOSCOW (March 13): President Vladimir Putin told the West on Wednesday that Russia was technically ready for nuclear war and that if the US sent troops to Ukraine, it would be considered a significant escalation of the conflict. Putin, speaking ahead of a March 15- 17 election which is certain to give him another six years in power, added that the nuclear war scenario was not “rushing” up and he saw no need for the use of nuclear weapons in Ukraine. “From a military-technical point of view, we are, of course, ready,” Putin, 71, told Rossiya-1 television and news agency RIA when asked whether Russia was really ready for a nuclear war. Putin said the US understood that if it deployed American troops on Russian territory — or to Ukraine — Russia would treat the move as an intervention. Moscow claims to have annexed four regions of Ukraine and says they are now fully part of Russia. “(In the US) there are enough specialists in the field of Russian-American relations and in Putin warns the West: Russia is ready for nuclear war BY GUY FAULCONBRIDGE & LIDIA KELLY Reuters BY JOSEPH AX & ALEXANDRA ULMER Reuters economy be the best ever in the world,” said Trump. Biden, meanwhile, faced only token opposition in the Democratic primary campaign, though liberal activists frustrated by his support for Israel’s war in Gaza have convinced a sizable minority of Democrats to vote “uncommitted” in protest. Both men have already turned their attention to the Nov 5 general election, holding dueling rallies in Georgia on Saturday. In Rome, Georgia, Trump, 77, again repeated his false claim that the 2020 election was fraudulent and accused the Fulton County attorney, Fani Willis, of prosecuting him for political reasons. He also attacked Biden for failing to stem the flow of migrants at the US southern border, an issue he intends to keep front and center throughout the campaign, as he did in 2020. The Biden campaign launched a more aggressive phase on Friday, announcing Biden would tour several battleground states amid a US$30 million ad buy. The campaign said it raised US$10 million in the 24 hours after Biden’s State of the Union speech, adding to Democrats’ financial edge over Republicans. Read the full story Read the full story the field of strategic restraint,” said Putin. “Therefore, I don’t think that here everything is rushing to it (nuclear confrontation), but we are ready for this.” The Biden administration has said it has no plans to send troops to Ukraine but has stressed the Russian President Vladimir Putin said the nuclear war scenario was not 'rushing' up and he saw no need for the use of nuclear weapons in Ukraine. need to approve a stalled security aid bill that would ensure Ukrainian troops got the weapons they need to continue the war, now in its third year. It did not immediately respond on Wednesday to a request for comment on Putin’s remarks, but the White House has said in the past it has seen no sign that Russia is preparing to use nuclear weapons despite what it calls Putin’s “nuclear sabre-rattling”. Mykhailo Podolyak, a senior Ukrainian presidential official, told Reuters in a statement he viewed Putin’s nuclear warning as propaganda designed to intimidate the West. “Realising that things are going the wrong way, Putin continues to use classic nuclear rhetoric. With the old Soviet hope — ‘be scared and retreat!’,” said Podolyak, who said he believed such talk showed Putin was afraid of losing the war. The Ukraine war has triggered the deepest crisis in Moscow’s relations with the West since the 1962 Cuban Missile Crisis. Putin has often warned of the risks of nuclear war but says he has never felt the need to use nuclear weapons in Ukraine.
THURSDAY MARCH 14, 2024 21 THEEDGE CEO MORNING BRIEF WORLD CANNES, France (March 13): LaSalle Investment Management is reducing its exposure to offices in Europe and believes between 20% and 30% of office space in the region could be “obsolete”, the firm’s head of Europe said on Tuesday. “Is there redundant space in areas where it shouldn’t have been in the first place? I think maybe 20 to 30% of office stock is probably obsolete,” Philip La Pierre, head of Europe at LaSalle, told Reuters at the MIPIM real estate conference in Cannes. La Pierre said the commercial real estate market remained “fickle”, although there were signs that investors were slowing redemption requests and becoming used to lower prices. “Everyone has to accept the fact that pricing is down 30 to 40% and they might want to liquidate their position ... Now they’re willing to do it. But it takes a year or two psychologically to adapt to the fact that you’re making a loss,” he said. Despite the tough conditions, LaSalle is targeting growing its overall property acquisitions in Europe to US$2 billion (RM9.38 billion) in 2024, up from US$1.8 billion last year, and sees growth opportunities in real estate debt, La Pierre said. LaSalle is an independent part of global property services firm Jones Lang LaSalle. Property investor LaSalle says 30% of European office space may be ‘obsolete’ CANNES, France (March 13): The troubled US office market is the world’s most oversupplied and property investors have taken on too much debt, a Brookfield Asset Management executive said on Wednesday. “Per capita, it’s the most oversupplied office market in the world,” Bradley Weismiller, Brookfield’s managing partner for real estate capital markets, told the MIPIM property conference. “That’s really the story. Unfortunately we [the US] build too much of it in certain places ... and it doesn’t need to be used as office anymore,” Weismiller said at the event in Cannes. “The sector as a whole borrowed too much money,” he added. A punishing rise in borrowing costs since 2022 and a jump in people working from home has emptied many offices in the US, pummelling the value of many property assets. Office vacancy rates — at around 20% in cities — are much higher in the US than in Europe. Concerns about lenders has hammered some regional bank shares this year. Blackstone’s global head of real estate debt capital markets, Michael Lascher, said that there was a polarisation in values between high-quality sustainable offices and the rest. “The difference is really stark. It’s very much a story of haves and have nots,” Lascher said during a discussion on US real estate at MIPIM. Clients are more interested in investing in logistics and data centres than offices today, panelists said. Blackstone is the world’s largest commercial real estate (CRE) owner, and Lascher said non-bank lenders were increasingly important for financing property as banks retreat due to higher regulatory constraints. Regulators were putting a “clear focus” on CRE exposures at banks, said David Bouton, co-head of North America commercial mortgage-backed securities and real estate finance at Citi. But he said that lenders were more accommodating to investors than during the 2007-09 global financial crisis because they had higher capital buffers. Molly Goldfarb, principal at investor TPG, said the company was looking to convert more offices into housing but that it could be “incredibly challenging” to find suitable assets. US office market is world’s most oversupplied, Brookfield tells MIPIM Deutsche Bank CEO sees continued commercial property turmoil through 2024 BY IAIN WITHERS Reuters BY TOM SIMS Reuters BY IAIN WITHERS Reuters FRANKFURT (March 13): Deutsche Bank’s chief executive officer said on Tuesday that he expects the current crisis in commercial real estate to continue in 2024 and that provisions for loan losses will be at the upper end of its projected range. There won’t be “overall big relief” to the challenges facing commercial real estate in 2024, CEO Christian Sewing said at a financial conference. Deutsche Bank is Germany’s largest lender and also has the most in outstanding loans to the commercial real-state sector among its domestic competitors, data show. In the US, where Deutsche Bank is also active, commercial property has been under particular pressure due to high interest rates and office vacancies. “There is no deterioration but there is also not ... signs of improvements,” Sewing said of the sector. He said that the bank was working on early extensions and restructurings with borrowers. Deutsche Bank has forecast that provisions for credit losses in 2024 would be 25 to 30 basis points of loans. Sewing on Tuesday narrowed the forecast, saying provisions would likely land at the “higher side” of the range “given where the world is”. BLOOMBERG REUTERS In the US, where Deutsche Bank is also active, commercial property has been under particular pressure due to high interest rates and office vacancies.
THURSDAY MARCH 14, 2024 22 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 298.80 0.000 0.015 -40.00 76.6 PAN MALAYSIA HOLDINGS BHD 217.30 -0.025 0.200 110.53 185.8 EVERSENDAI CORP BHD 130.40 0.185 0.390 136.36 304.6 BORNEO OIL BHD 91.80 0.000 0.010 -33.33 119.9 MICROLINK SOLUTIONS BHD 84.20 0.085 0.455 -48.30 487.9 MALAYAN UNITED INDUSTRIES BHD 73.60 0.005 0.065 8.33 209.7 CTOS DIGITAL BHD 71.00 0.030 1.280 -9.22 2,956.8 TWL HOLDINGS BHD 66.00 0.000 0.035 16.67 192.4 CLASSITA HOLDINGS BHD 60.40 0.000 0.045 0.00 55.5 SP SETIA BHD GROUP 52.10 0.040 1.020 27.50 4,540.3 ADVANCE SYNERGY BHD 47.60 0.015 0.115 -17.86 290.9 ECONPILE HOLDINGS BHD 45.60 0.045 0.425 39.34 602.4 RENEUCO BHD 44.20 0.015 0.080 -63.64 89.8 MINETECH RESOURCES BHD 42.10 0.010 0.145 0.00 258.8 POWERWELL HOLDINGS BHD 33.00 -0.005 0.375 59.57 217.7 SIME DARBY PROPERTY BHD 27.50 0.035 0.805 28.80 5,474.7 VELESTO ENERGY BHD 27.20 0.000 0.280 21.74 2,300.4 PUBLIC BANK BHD 27.00 0.010 4.220 -1.63 81,913.1 YTL CORP BHD 26.90 0.000 2.510 32.80 27,525.6 YTL POWER INTERNATIONAL BHD 26.50 0.010 3.670 44.49 29,738.6 Data as compiled on Mar 13, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EVERSENDAI CORP BHD 0.390 90.24 130,424.3 136.36 304.6 APPASIA BHD 0.100 33.33 5,855.3 5.26 109.2 RENEUCO BHD 0.080 23.08 44,151.4 -63.64 89.8 MICROLINK SOLUTIONS BHD 0.455 22.97 84,165.2 -48.30 487.9 GDB HOLDINGS BHD 0.230 17.95 6,492.7 24.32 215.6 WONG ENGINEERING CORP BHD 0.300 15.38 880.9 -1.64 75.0 ADVANCE SYNERGY BHD 0.115 15.00 47,582.0 -17.86 290.9 BARAKAH OFFSHORE PETROLEUM 0.040 14.29 1.2 14.29 40.1 THRIVEN GLOBAL BHD 0.125 13.64 8,957.2 19.05 68.4 ASIA BRANDS BHD 0.490 12.64 0.1 -11.71 114.0 MERIDIAN BHD 0.090 12.50 20.8 -5.26 20.3 TFP SOLUTIONS BHD 0.045 12.50 1,411.9 -18.18 26.3 ECONPILE HOLDINGS BHD 0.425 11.84 45,612.2 39.34 602.4 GREENYIELD BHD 0.190 11.76 30.8 -5.00 103.0 SMTRACK BHD 0.050 11.11 15,963.8 0.00 61.1 PERMAJU INDUSTRIES BHD 0.050 11.11 260.1 0.00 97.4 JF TECHNOLOGY BHD 0.940 10.59 4,375.6 2.17 871.4 ANCOM LOGISTICS BHD 0.160 10.34 14,459.1 28.00 75.7 EURO HOLDINGS BHD 0.055 10.00 1,734.2 -35.29 70.6 JATI TINGGI GROUP BHD 0.345 9.52 15,262.4 27.78 135.2 Data as compiled on Mar 13, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) FINTEC GLOBAL BHD 0.005 -50.00 5,750.7 -50.00 29.6 SC ESTATE BUILDER BHD 0.010 -33.33 2,814.3 -35.71 32.2 XOX NETWORKS BHD 0.025 -28.57 30.0 -28.57 28.4 METRONIC GLOBAL BHD 0.015 -25.00 672.7 0.00 23.0 G3 GLOBAL BHD 0.020 -20.00 91.0 -20.00 75.5 XIDELANG HOLDINGS LTD 0.025 -16.67 1,050.0 0.00 52.9 BSL CORP BHD 0.025 -16.67 751.6 -44.44 48.3 REACH ENERGY BHD 0.025 -16.67 130.3 -37.50 53.2 TA WIN HOLDINGS BHD 0.030 -14.29 1,514.2 -25.00 103.1 DESTINI BHD 0.035 -12.50 5,260.6 -41.67 74.9 INFRAHARTA HOLDINGS BHD 0.185 -11.90 3,321.0 76.19 75.1 CHEETAH HOLDINGS BHD 0.115 -11.54 11.5 -17.86 55.9 PAN MALAYSIA HOLDINGS BHD 0.200 -11.11 217,322.8 110.53 185.8 PDZ HOLDINGS BHD 0.040 -11.11 9,326.7 -20.00 23.5 VIZIONE HOLDINGS BHD 0.040 -11.11 220.5 -33.33 81.8 PROGRESSIVE IMPACT CORP BHD 0.080 -11.11 35.1 -15.79 52.4 REKATECH CAPITAL BHD 0.050 -9.09 70.5 -23.08 29.6 ARK RESOURCES HOLDINGS BHD 0.480 -8.57 215.4 37.14 33.4 INDUSTRONICS BHD 0.055 -8.33 692.0 10.00 38.9 JADI IMAGING HOLDINGS BHD 0.055 -8.33 224.6 -21.43 77.0 Data as compiled on Mar 13, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 120.000 -1.000 36.4 2.04 28,140.0 PETRONAS DAGANGAN BHD 21.260 -0.460 932.0 -2.66 21,120.8 AJINOMOTO MALAYSIA BHD 18.500 -0.460 55.6 16.35 1,124.8 PPB GROUP BHD 15.120 -0.380 840.0 4.42 21,509.7 KUALA LUMPUR KEPONG BHD 21.820 -0.320 1,280.7 0.00 23,923.6 HONG LEONG BANK BHD 19.340 -0.240 903.0 2.33 41,923.7 PETRONAS CHEMICALS GROUP BHD 6.810 -0.110 6,333.6 -4.89 54,480.0 CELCOMDIGI BHD 4.280 -0.090 1,134.2 4.90 50,210.9 IOI CORP BHD 3.930 -0.090 2,632.4 0.00 24,380.5 HEITECH PADU BHD 2.860 -0.090 1,917.8 225.00 289.5 MAXIS BHD 3.540 -0.090 1,345.6 -8.05 27,725.6 SAM ENGINEERING & EQUIPMENT 4.790 -0.090 172.6 20.00 3,242.8 VITROX CORP BHD 7.200 -0.080 129.4 -1.23 6,807.0 PARAGON UNION BHD 3.530 -0.080 43.5 26.52 295.9 CARLSBERG BREWERY MALAYSIA 18.880 -0.080 78.2 -2.07 5,772.5 SIME DARBY PLANTATION BHD 4.330 -0.080 2,553.1 -2.91 29,945.0 TEO GUAN LEE CORP BHD 1.150 -0.080 6.0 -3.36 97.6 HONG LEONG FINANCIAL GROUP 16.400 -0.080 536.3 -0.24 18,782.0 APB RESOURCES BHD 1.870 -0.070 449.4 -27.80 207.4 OPPSTAR BHD 1.150 -0.060 2,152.6 -12.21 735.9 Data as compiled on Mar 13, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) ALLIANZ MALAYSIA BHD 19.380 0.380 35.3 5.10 3,449.0 SUNGEI BAGAN RUBBER CO MALAYA 4.730 0.290 74.0 45.54 313.0 BATU KAWAN BHD 19.800 0.240 2.8 -3.88 7,786.2 MALAYSIAN PACIFIC INDUSTRIES 29.700 0.220 140.7 5.32 5,908.2 KLUANG RUBBER CO MALAYA BHD 4.700 0.200 51.0 29.83 292.2 EVERSENDAI CORP BHD 0.390 0.185 130,424.3 136.36 304.6 MALAYAN CEMENT BHD 5.130 0.130 857.0 21.28 6,727.5 PANASONIC MANUFACTURING 18.000 0.120 19.2 0.00 1,093.4 DAYANG ENTERPRISE HOLDINGS 2.290 0.120 7,676.0 43.13 2,651.3 BRITISH AMERICAN TOBACCO 8.160 0.120 227.2 -12.16 2,329.9 MALAYSIA AIRPORTS HOLDINGS 8.650 0.110 4,659.3 17.53 14,433.0 HAP SENG CONSOLIDATED BHD 4.550 0.110 231.5 0.00 11,328.0 KUCHAI DEVELOPMENT BHD 1.710 0.100 155.9 36.80 211.6 MALAYAN BANKING BHD 9.620 0.100 14,599.9 8.21 116,084.1 JF TECHNOLOGY BHD 0.940 0.090 4,375.6 2.17 871.4 TT VISION HOLDINGS BHD 0.985 0.085 3,275.7 20.12 461.0 MICROLINK SOLUTIONS BHD 0.455 0.085 84,165.2 -48.30 487.9 CHIN TECK PLANTATIONS BHD 7.550 0.080 10.2 -0.13 689.8 HONG LEONG INDUSTRIES BHD 10.400 0.080 24.7 12.92 3,322.5 MEGA FIRST CORP BHD 3.990 0.080 653.8 8.13 3,761.6 Data as compiled on Mar 13, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 39,005.49 235.83 0.61 S&P 500 * 5,175.27 57.33 1.12 NASDAQ 100 * 18,219.12 267.43 1.49 FTSE 100 * 7,747.81 -3.42 -0.04 AUSTRALIA 7,729.44 16.92 0.22 CHINA 3,043.84 -12.10 -0.40 HONG KONG 17,082.11 -11.39 -0.07 INDIA 72,761.89 -906.07 -1.23 INDONESIA 7,421.21 39.30 0.53 JAPAN 38,695.97 -101.54 -0.26 KOREA 2,693.57 11.76 0.44 PHILIPPINES 6,965.51 85.92 1.25 SINGAPORE 3,160.72 19.25 0.61 TAIWAN 19,928.51 13.96 0.07 THAILAND 1,384.51 4.88 0.35 VIETNAM 1,270.51 25.51 2.05 Data as compiled on Mar 13, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 4,195.0066.00 OIL US$ 83.221.30 RM/USD 4.6860 RM/SGD 3.5146 RM/AUD 3.0971 RM/GBP 5.9885 RM/EUR 5.1201